Fastenal Company · NASDAQ:FAST
Fastenal — Q3 2021 Earnings Presentation
14 slides from Fastenal's earnings presentation, Oct 12, 2021
Slide 1: Investor Teleconference Presentation Third Quarter 2021
Investor Teleconference Presentation Third Quarter 2021 Fastenal Company October 12, 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 3Q21
CEO Messages on 3Q21 Daily Sales Rate (DSR) Growth ◦ Net sales grew 10.0% in 3Q21, and 11.1% in September. 18% Core end markets and most product lines grew mid-teens 16% or better. Pre-tax and net income growth largely matched 14% net sales. 12.2% 12% 10.3% 10.0% ◦ The organization achieved good two
Slide 4: 3Q21 Growth Driver Update
3Q21 Growth Driver Update Onsite Signings and Active Locations ◦ Onsites: We had 75 signings in 3Q21 (230 YTD) and finished 150 1,367 1,500 with 1,367 active sites, +10.6% from 3Q20. Daily sales, 120 1,200 excluding transferred branch sales, grew more than 20% from 3Q20. We now anticipate signing 28
Slide 5: Two Year Results of Operations
Two Year Results of Operations (Comparison to 2019 Periods) Nine-month Period Three-month Period 2021 2019 Change 2021 2019 Change Net sales $ 4,479.0 $ 4,056.8 10.4% $ 1,554.2 $ 1,379.1 12.7% Gross profit $ 2,064.3 $ 1,917.0 7.7% $ 720.2 $ 651.1 10.6 % % of net sales 46.1% 47.3% 46.3% 47.2% Operati
Slide 6: 3Q21 Business Cadence
3Q21 Business Cadence End Market Daily Sales Rate (DSR) Growth ◦ U.S. PMI averaged 60.2 in 3Q21. U.S. Industrial Production in 40% Jul/Aug 2021 increased 6.2% versus 3Q20. The data reflects 30% 26.2% continued strong manufacturing conditions. 20% 20.8% ◦ In 3Q21, fastener daily sales rose 20.2% on f
Slide 7: 3Q21 Margin Summary
3Q21 Margin Summary Gross Profit Margin ◦ Higher gross margin reflected two items. First, strong 50% demand contributed to good overhead/organizational cost 47.2% 46.3% leverage, including favorable net rebates. Second, product 45.3% margin improved, particularly for safety products where 45% margin
Slide 8: 3Q21 Cash Flow Profile
3Q21 Cash Flow Profile Operating Cash Flow ◦ 3Q21 operating cash flow was $167.4, or 68.8% of net income. (in millions) 350 We are experiencing meaningful working capital increases to 300 130.5% support growth and account for inflation. We also paid 120.5% 250 approximately $30.0 in payroll taxes th
Slide 9: 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 10: 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) 3Q21 3Q20 (Amounts in millions) 3Q21 3Q20 Operating Income $ 1,180.9 1,116.3 Net Earnings $ 889.9 841.7 (Income Tax Expense) (281.5) (265.2) To
Slide 11: 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 12: Employee Statistics
Employee Statistics Absolute Count FTE Count 1 HEADCOUNT STATISTICS Change Change Change Change Change Change Since Since Since Since Since Since 3Q21 2Q21 2Q21 4Q20 4Q20 3Q20 3Q20 3Q21 2Q21 2Q21 4Q20 4Q20 3Q20 3Q20 In-market locations (branches & Onsites) 12,347 12,446 (0.8%) 12,680 (2.6%) 12,708 (
Slide 13: 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 5 3Q 19 20 11 5 5 8 5 3 2 3 1 4Q 28 7 9 2 28 5 3 3 4 2 Cumulative 122 80 53 24 41 40 18 11 12 12 8 Closed/Converted Branc
Slide 14: End Market Profile
End Market Profile End Market Mix — 2019 End Market Mix — 2020 Transportation/ Other, 4.0% Other, 3.3% Transportation/ Warehousing, 2.6% Warehousing, 6.9% Gov't/Education, 3.7% Gov't/Education, 8.1% Manufacturing, 39.0% Manufacturing, 41.6% Reseller, 9.2% Reseller, 8.0% Construction, 12.9% Construct