Fastenal Company · NASDAQ:FAST
Fastenal — Q1 2020 Earnings Presentation
13 slides from Fastenal's earnings presentation, Apr 14, 2020
Slide 1: Investor Teleconference Presentation First Quarter 2020
Investor Teleconference Presentation First Quarter 2020 Fastenal Company April 14, 2020 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 coronavirus pandemic, as well as expectations regarding operations, including gross margin and capital expenditures) are “forward-looking statements” w
Slide 3: CEO Messages on 1Q20
CEO Messages on 1Q20 ◦ Fastenal is "critical infrastructure" due to our presence with Daily Sales Rate (DSR) Growth state/local governments, first responders, food processors, 18% etc., and our supply chain capabilities. We are operating, but 16% 13.2% 13.2% with policies conforming to health/safety
Slide 4: 1Q20 Growth Driver Update
1Q20 Growth Driver Update Onsite Signings and Active Locations ◦ With activity weakening, customers closing, and our energy 150 1,500 1,179 shifting to supplying key products, we lack visibility to our 2020 120 1,200 signing goals for Onsites (375-400) and vending (22K-24K). As 85 a result, we are n
Slide 5: 1Q20 Business Cadence
1Q20 Business Cadence End Market Daily Sales Rate (DSR) Growth ◦ U.S. PMI averaged 50.0 in 1Q20, below 1Q19 (55.4), but 20% improved from 4Q19 (47.9). U.S. Industrial Production (IP) 16% in Jan/Feb. 2020 was -0.4% vs. 1Q19 and -0.2% vs. 4Q19. 12% 8% ◦ Macro data does not capture sharp degradation in
Slide 6: 1Q20 Results Summary
1Q20 Results Summary Annual Rates of Change 1Q20 1Q19 % Chg. ◦ The 1Q20 gross margin was 46.6%, –110 bps from 1Q19 Dollar amounts in millions, except per share amounts mostly due to product/customer mix and deleveraging of Net Sales $1,367.0 $1,309.3 4.4% fixed costs. The 1Q20 operating margin was 1
Slide 7: 1Q20 Cash Flow Profile
1Q20 Cash Flow Profile Operating Cash Flow ◦ Our balance sheet is lightly leveraged and we had (in millions) 300 $344.0 in capital available on our revolver at quarter 119.0% end. We do not expect additional capital needs in 2020. 250 105.6% 200 ◦ 1Q20 operating cash flow was $241.1, or 119.0% of ne
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) 1Q20 1Q19 (Amounts in millions) 1Q20 1Q19 Operating Income $ 1,067.1 1,026.1 Net Earnings $ 799.4 771.7 (Income Tax Expense) (256.0) (240.9) To
Slide 10: Sequential Trends
Sequential Trends* Cum. Chg., Cum. Chg., Cum. Chg., Cum. Chg., DSR 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% (4.0%) (7.4%) 2020 DSR
Slide 11: Employee Statistics
Employee Statistics Absolute Count FTE Count 1 Change Change Change Change HEADCOUNT STATISTICS Since Since Since Since 1Q20 4Q19 4Q19 1Q19 1Q19 1Q20 4Q19 4Q19 1Q19 1Q19 Branches/Onsites 14,001 13,977 0.2% 14,336 (2.3)% 12,334 12,236 0.8% 12,482 (1.2)% Non-Branch Selling 1,901 1,854 2.5% 1,779 6.9 %
Slide 12: In-Market Location Statistics
In-Market Location Statistics BRANCH STATISTICS 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 New Branch Openings 1Q 29 37 28 11 9 2 17 5 0 3 3 2Q 16 38 25 22 8 6 10 5 5 3 3Q 45 19 20 11 5 5 8 5 3 2 4Q 37 28 7 9 2 28 5 3 3 4 Cumulative 127 122 80 53 24 41 40 18 11 12 3 Closed/Converted Bran
Slide 13: End Market Profile
End Market Profile End Market Mix -- 2019 Other, 4.0% Transportation, 2.6% Gov't/Education, 3.7% Reseller, 9.2% Manufacturing, 41.6% Construction, 12.9% Mfg - Heavy Equip., 26.0% MAJOR SEGMENT GROWTH Full (Daily Sales rates) Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Year Manufacturi