Fastenal Company · NASDAQ:FAST
Fastenal — Q2 2022 Earnings Presentation
14 slides from Fastenal's earnings presentation, Jul 13, 2022
Slide 1: Second Quarter 2022 Investor Teleconference
SECOND QUARTER 2022 INVESTOR TELECONFERENCE JULY 13, 2022 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, as well as expectations regarding operations, including gross margin, future inventory levels, pricing, Onsite and weighted FMI device signings, the size of our U.S./
Slide 3: CEO Messages on 2Q22
CEO MESSAGES ON 2Q22 • Travel has expanded. The severe travel curtailments of Daily Sales Rate (DSR) Growth COVID-19's pandemic stage have lifted as COVID has, in 20% 18.4% 18.0% most societies, entered the endemic stage. 18% 16% 14.6% • Our culture of trusting people, building our own talent, and 1
Slide 4: 2Q22 Growth Driver Update
2Q22 GROWTH DRIVER UPDATE Onsite Signings and Active Locations • Onsites: We had 102 signings in 2Q22 and finished with 160 1,501 1,600 1,501 active sites, +13.5% from 2Q21. Daily sales, excluding 140 1,400 transferred branch sales, grew more than 20% from 2Q21. 1,212 120 1,323 1,200 Our 2022 goal r
Slide 5: 2Q22 Business Cadence
2Q22 BUSINESS CADENCE End Market Daily Sales Rate (DSR) Growth • U.S. PMI averaged 54.8 in 2Q22. U.S. Industrial 40% Production in Apr./May 2022 rose 5.5% over 2Q21. The 30% data reflects favorable manufacturing activity. The macro 28.8% 23.1% data suggests healthy, though decelerating, demand, 20%
Slide 6: 2Q22 Margin Summary
2Q22 MARGIN SUMMARY Gross Profit Margin • Our 2Q22 operating margin of 21.6% increased 50 basis 50% points from 21.1% in 2Q21. We experienced further shift toward a more familiar, pre-pandemic model. Year-over-year 46.5% 46.5% gross margin was flat, the first time it hasn't risen since 44.5% 1Q21, w
Slide 7: 2Q22 Cash Flow Profile
2Q22 CASH FLOW PROFILE Operating Cash Flow • 2Q22 operating cash flow was $151.2, or 52.7% of net (in millions) earnings. Conversion rates are typically lower in second 400 quarters due to the timing of tax payments, but the current 350 period was also affected by increases in working capital to 300
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 i
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) 2Q22 2Q21 (Amounts in millions) 2Q22 2Q21 Operating Income $ 1,360.7 1,152.6 Net Earnings $ 1,031.4 867.9 Income Tax Expense (319.7) (275.0) To
Slide 10: Sequential Trends
SEQUENTIAL TRENDS* Cum. Cum. Cum. Cum. Daily Sales Rate Chg., Chg., Chg., Chg., (DSR) Jan. to Jan. to Jan. to Jan. to BENCHMARKS Jan.* Feb. Mar. Mar. Apr. May June Jun. July Aug. Sep. Sep. Oct. Oct. Nov. Dec. BENCHMARK** (0.1%) 0.8% 3.4% 4.1% 0.1% 2.2% 1.9% 8.5% (3.3%) 3.1% 3.4% 11.9% (2.1%) 9.5% (3
Slide 11: Employee Statistics
EMPLOYEE STATISTICS Absolute Count FTE Count (1) HEADCOUNT Change Change Change Change Change Change STATISTICS Since Since Since Since Since Since 2Q22 1Q22 1Q22 4Q21 4Q21 2Q21 2Q21 2Q22 1Q22 1Q22 4Q21 4Q21 2Q21 2Q21 In-market locations (branches & Onsites) 13,134 12,855 2.2% 12,464 5.4% 12,446 5.5
Slide 12: In-Market Location Statistics
IN-MARKET LOCATION STATISTICS Annual Quarterly 2016 2017 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 Starting Branches 2,622 2,503 2,383 2,227 2,114 2,003 1,793 1,760 Opened Branches 40 18 11 12 12 10 6 2 Closed/ Converted Branches (1) (159) (138) (167) (125) (123) (220) (39) (25) Ending Branches (2) 2,
Slide 13: End Market Profile
END MARKET PROFILE End Market Mix — Full Year 2021 Transportation/ Other, 3.0% Warehousing, 4.9% Gov't/Education, 4.6% Reseller, 7.5% Manufacturing, 41.9% Construction, 11.1% Mfg - Heavy Equip., 27.0% MAJOR SEGMENT GROWTH Year- to- Full (Daily Sales rates) Jan. Feb. Mar. Apr. May June Date July Aug.
Slide 14: Thank You
THANK YOU 14