Fastenal Company · NASDAQ:FAST
Fastenal — Q1 2021 Earnings Presentation
13 slides from Fastenal's earnings presentation, Apr 13, 2021
Slide 1: Investor Teleconference Presentation First Quarter 2021
Investor Teleconference Presentation First Quarter 2021 Fastenal Company April 13, 2021 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements made herein that are not historical facts (e.g., future operating results and business activity in light of the COVID-19 pandemic, as well as expectations regarding operations, including gross margin, future inventory levels, pricing, Onsite and weighted FMI devi
Slide 3: CEO Messages on 1Q21
CEO Messages on 1Q21 Daily Sales Rate (DSR) Growth 18% ◦ 1Q21 diluted EPS were $0.37, an increase of 3.7%. Net sales 16% were up 3.7%, or up 5.3% on a daily basis. The Blue Team 14% managed to leverage operating expenses, despite lost sales 12.2% 12% from February's storms and one less selling day.
Slide 4: 1Q21 Growth Driver Update
1Q21 Growth Driver Update Onsite Signings and Active Locations ◦ Onsites: we signed 68 in 1Q21, the highest number since the 150 1,285 1,500 pandemic began. We finished with 1,285 active sites, +9.0% 120 1,200 from 1Q20. Daily sales growth, excluding transferred branch sales, rose mid-to-high single
Slide 5: 1Q21 Business Cadence
1Q21 Business Cadence End Market Daily Sales Rate (DSR) Growth ◦ U.S. PMI averaged 61.4 in 1Q21. U.S. Industrial Production in 20% Jan/Feb. 2021 declined 1.7% versus 1Q20. While the latter remained negative through the first months of the quarter, it 10% 6.7% continues to recover nicely from steep d
Slide 6: 1Q21 Results Summary
1Q21 Results Summary Annual Rates of Change 1Q21 1Q20 % Chg. ◦ 1Q21 gross margin was 45.4%, down 120 bps from 1Q20. Dollar amounts in millions, except per share amounts The mask write-down accounts for 50 bps of this decline. Net Sales $1,417.0 $1,367.0 3.7% Daily Sales 22.5 21.4 5.3% The remaining
Slide 7: 1Q21 Cash Flow Profile
1Q21 Cash Flow Profile Operating Cash Flow ◦ 1Q21 operating cash flow was $274.8, or 130.5% of net (in millions) 350 earnings. The addition of operating working capital in 1Q21 300 130.5% was more modest than is seasonally typical, resulting in a 119.0% 250 favorable comparison to the prior year. 20
Slide 8: Appendix: Non-GAAP Financial Measures
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 Reconciliation of ROIC to Return on Assets (ROA) TTM TTM TTM TTM (Amounts in millions) 1Q21 1Q20 (Amounts in millions) 1Q21 1Q20 Operating Income $1,150.8 1,067.1 Net Earnings $ 867.1 799.4 (Income Tax Expense) (274.3) (256.0) Tot
Slide 10: Sequential Trends
Sequential Trends* Daily Sales Rate (DSR) Cum. Chg., Cum. Chg., Cum. Chg., Cum. Chg., BENCHMARKS Jan.* Feb. Mar. Jan. to Mar. Apr. May June Jan. to Jun. July Aug. Sep. Jan. to Sep. Oct. Jan. to Oct. Nov. Dec. BENCHMARK** (1.0%) 1.2% 3.1% 4.3% 0.1% 1.7% 1.8% 8.1% (3.4%) 3.3% 2.2% 10.3% (2.5%) 7.5% (4
Slide 11: Employee Statistics
Employee Statistics Absolute Count FTE Count 1 Change Change Change Change HEADCOUNT STATISTICS Since Since Since Since 1Q21 4Q20 4Q20 1Q20 1Q20 1Q21 4Q20 4Q20 1Q20 1Q20 In-market locations (branches & Onsites) 12,683 12,680 0.0% 14,001 (9.4%) 11,323 11,260 0.6% 12,334 (8.2%) Non-in-market selling 2
Slide 12: In-Market Location Statistics
In-Market Location Statistics BRANCH STATISTICS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 New Branch Openings 1Q 37 28 11 9 2 17 5 0 3 3 2 2Q 38 25 22 8 6 10 5 5 3 4 3Q 19 20 11 5 5 8 5 3 2 3 4Q 28 7 9 2 28 5 3 3 4 2 Cumulative 122 80 53 24 41 40 18 11 12 12 2 Closed/Converted Branches,
Slide 13: End Market Profile
End Market Profile End Market Mix -- 2020 Other, 3.3% Transportation, 6.9% Gov't/Education, 8.1% Manufacturing, 39.0% Reseller, 8.0% Construction, 11.3% Mfg - Heavy Equip., 23.4% MAJOR SEGMENT GROWTH Year-to- (Daily Sales rates) Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Date Manufac