Fastenal Company · NASDAQ:FAST
Fastenal — Q1 2023 Earnings Presentation
14 slides from Fastenal's earnings presentation, Apr 13, 2023
Slide 1: First Quarter, April 13, 2023
FIRST QUARTER APRIL 13, 2023 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 1Q23
CEO MESSAGES ON 1Q23 • We just completed our 2023 Customer Expo, which Daily Sales Rate (DSR) Growth highlighted our value to customers in four areas: (1) 20% 18.4% 18.0% accelerating their digital transformation, (2) securing 18% 16.0% their supply chain, (3) powering productivity, and (4) 16% 14.6
Slide 4: 1Q23 Growth Driver Update
1Q23 GROWTH DRIVER UPDATE • Onsites: We had 89 signings in 1Q23. Active sites Onsite Signings and Active Locations finished at 1,674, +16.3% from 1Q22. Daily sales, 160 1,674 1,800 excluding transferred branch sales, grew roughly 20% 140 1,600 1,285 1,440 from 1Q22. The pace of 1Q23 signings lagged
Slide 5: 1Q23 Business Cadence
1Q23 BUSINESS CADENCE • U.S. Industrial Production declined 0.2% in Jan./Feb. End Market Daily Sales Rate (DSR) Growth 2023 over 1Q22, with key industrial components lagging 40% the broader index. U.S. PMI was 46.3 in March and 30% averaged 47.1 in 1Q23. Such readings are generally 20% 19.5% consist
Slide 6: 1Q23 Margin Summary
1Q23 MARGIN SUMMARY • Our 1Q23 operating margin was 21.2%, up from 21.0% Gross Profit Margin in 1Q22. Our incremental operating margin was 22.7%. 50% • 1Q23 gross margin was 45.7%, down from 46.6% in 46.6% 45.4% 45.7% 1Q22. This was largely due to customer and product 45% mix, as our strongest sourc
Slide 7: 1Q23 Cash Flow Profile
1Q23 CASH FLOW PROFILE Operating Cash Flow • 1Q23 operating cash flow was $388.5, or 131.7% of net (in millions) earnings. The improvement in the current period reflects 400 131.7% the absence of last year's supply chain constraints, which 350 has reduced the working capital required to support our
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) 1Q23 1Q22 (Amounts in millions) 1Q23 1Q22 Operating Income $ 1,488.8 1,295.1 Net Earnings $ 1,112.4 984.0 Income Tax Expense (361.5) (301.6) To
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** 0.2% 1.5% 3.8% 5.4% (0.5%) 2.7% 2.0% 9.8% (3.1%) 2.9% 3.6% 13.4% (1.9%) 11.2% (
Slide 11: Employee Statistics
EMPLOYEE STATISTICS Absolute Count FTE Count (1) Change Change Change Change HEADCOUNT STATISTICS Since Since Since Since 1Q23 4Q22 4Q22 1Q22 1Q22 1Q23 4Q22 4Q22 1Q22 1Q22 In-market locations (branches & Onsites) 13,668 13,410 1.9% 12,855 6.3% 12,219 12,017 1.7% 11,644 4.9% Non-in-market selling 2,5
Slide 12: In-Market Location Statistics
IN-MARKET LOCATION STATISTICS Quarterly 2017 2018 2019 2020 2021 2022 1Q23 2Q23 3Q23 4Q23 Starting Branches 2,503 2,383 2,227 2,114 2,003 1,793 1,683 Opened Branches 18 11 12 12 10 12 2 Closed/ Converted Branches (1) (138) (167) (125) (123) (220) (122) (25) Ending Branches (2) 2,383 2,227 2,114 2,00
Slide 13: End Market Profile
END MARKET PROFILE End Market Mix - Full Year 2022 Transportation/ Other, 2.6% Warehousing, 4.4% Gov't/Education, 3.9% Reseller, 6.6% Manufacturing, 42.6% Construction, 10.3% Mfg - Heavy Equip., 29.6% MAJOR SEGMENT GROWTH Year-to- Full (Daily Sales rates) Jan. Feb. Mar. Date Apr. May June July Aug.
Slide 14: Where Industry Meets Innovation...
WHERE INDUSTRY MEETS INNOVATION... 14