Fastenal Company · NASDAQ:FAST
Fastenal — Q3 2024 Earnings Presentation
14 slides from Fastenal's earnings presentation, Oct 11, 2024
Slide 1: Third Quarter Investor Teleconference
2024 THIRD QUARTER INVESTOR TELECONFERENCE OCTOBER 11, 2024 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT All statements made herein that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, future inventory levels, pricing, Onsite and weight
Slide 3: CEO Messages on 3Q24
CEO MESSAGES ON 3Q24 • 3Q24 net sales were +3.5%, which produced EPS of Daily Sales Rate (DSR) Growth $0.52, +0.7%. Our DSR was +1.9%. The Blue Team is 20% 18.4% 18.0% never satisfied with this level of growth, although it 18% 16.0% reflects a continuation of challenging business 16% conditions. The
Slide 4: 3Q24 Growth Driver Update
3Q24 GROWTH DRIVER UPDATE • Onsites: We had 93 signings in 3Q24. Active sites Onsite Signings and Active Locations finished at 1,986, +11.7% from 3Q23. Daily sales, 180 1,986 2,200 2,000 excluding transferred branch sales, grew low single- 160 1,778 1,800 digits from 3Q23. Sales from sites opened in
Slide 5: 3Q24 Business Cadence
3Q24 BUSINESS CADENCE • U.S. PMI averaged 47.1 in 3Q24, marking 22 of 23 End Market Daily Sales Rate (DSR) Growth months sub-50. U.S. Industrial Production was -0.4% in 40% Jul./Aug. 2024 over 3Q23. Heavier manufacturing series, 30% such as fabricated metal (-1.2%) and machinery (-2.3%), were weaker
Slide 6: 3Q24 Margin Summary
3Q24 MARGIN SUMMARY • 3Q24 operating margin was 20.3%, down from 21.0% Gross Profit Margin 50% in 3Q23. We continue to balance tight cost management and investing to support growth. At this 45.9% 45.9% point, we believe margin pressure is a by-product of 45% 44.9% slow growth, not an indication of i
Slide 7: 3Q24 Cash Flow Profile
3Q24 CASH FLOW PROFILE Operating Cash Flow • 3Q24 operating cash flow was $296.9, or 99.6% of net (in millions) 131.3% income, below 3Q23 (131.3%). The process of rightsizing 400 inventory post-supply chain crisis has concluded, as has 350 99.6% the outsized cash generation that came with it, even a
Slide 8: Appendix
APPENDIX Non-GAAP Financial Measures The appendix includes information on our Return on Invested Capital ('ROIC'), which is a non-GAAP financial measure. We define ROIC as net operating profit less income tax expense divided by average invested capital over the trailing 12 months. We believe ROIC is
Slide 9: Return on Invested Capital
RETURN ON INVESTED CAPITAL* Calculation of Return on Invested Capital (ROIC) Reconciliation of ROIC to Return on Assets (ROA) TTM TTM TTM TTM (Amounts in millions) 3Q24 3Q23 (Amounts in millions) 3Q24 3Q23 Operating Income $ 1,519.1 1,507.8 Net Income $ 1,154.9 1,134.2 Income Tax Expense (363.2) (36
Slide 10: Sequential Trends
SEQUENTIAL TRENDS* Cum. Cum. Cum. Cum. Chg., Chg., Chg., Chg., Jan. Jan. Jan. Jan. Daily Sales Rate (DSR) to to to to BENCHMARKS Jan.* Feb. Mar. Mar. Apr. May Jun. Jun. Jul. Aug. Sep. Sep. Oct. Oct. Nov. Dec. BENCHMARK** 0.1% 1.6% 3.3% 4.9% (0.7%) 2.5% 1.4% 8.2% (3.2%) 2.7% 3.6% 11.5% (2.1%) 9.2% (3
Slide 11: Employee Statistics
EMPLOYEE STATISTICS Absolute Count FTE Count (1) Change Change Change Change Change Change HEADCOUNT Since Since Since Since Since Since STATISTICS 3Q24 2Q24 2Q24 4Q23 4Q23 3Q23 3Q23 3Q24 2Q24 2Q24 4Q23 4Q23 3Q23 3Q23 (2) Selling personnel 16,666 16,774 (0.6%) 16,512 0.9% 16,261 2.5% 15,080 15,386 (
Slide 12: In-Market Location Statistics
IN-MARKET LOCATION STATISTICS Year-to- Date 2014 (1) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Starting Branches 2,687 2,637 2,622 2,503 2,383 2,227 2,114 2,003 1,793 1,683 1,597 Opened Branches 24 41 40 18 11 12 12 10 12 10 7 Closed/Converted Branches (2) (74) (56) (159) (138) (167) (125) (
Slide 13: End Market Profile
END MARKET PROFILE End Market Mix - Full Year 2023 Transportation/ Other, 2.4% Warehousing, 4.6% Gov't/Education, 3.7% Heavy Manufacturing, 43.1% Reseller, 5.8% Non-Residential Construction, 9.1% All Other Manufacturing, 31.3% MAJOR SEGMENT GROWTH Year- Full (Daily Sales Rates) Jan. Feb. Mar. Apr. M
Slide 14: Thank You
THANK YOU 14