Fastenal Company · NASDAQ:FAST
Fastenal — Q4 2021 Earnings Presentation
15 slides from Fastenal's earnings presentation, Jan 19, 2022
Slide 1: Investor Teleconference Presentation Fourth Quarter 2021
Investor Teleconference Presentation Fourth Quarter 2021 Fastenal Company January 19, 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 in light of inflation, supply chain constraints, labor shortages, and the COVID-19 pandemic, as well as expectations regarding operations, including gross margin, futu
Slide 3: CEO Messages on 4Q21
CEO Messages on 4Q21 Daily Sales Rate (DSR) Growth • Net sales grew 12.8% in 4Q21 (up 14.6% on a daily 18% basis; up 16.5% in December on a daily basis). This 16% 14.6% reflects strong demand, good pricing, improved product 14% availability, and fewer holiday-related shutdowns than 12.2% 12% is typi
Slide 4: Performance Summary
Performance Summary (Comparison to 2019 Periods) Twelve-month Period Three-month Period 2021 2019 Change 2021 2019 Change Net sales $ 6,010.9 5,333.7 12.7% $ 1,531.8 1,276.9 20.0% Business days 253 254 62 63 Daily sales $ 23.8 21.0 13.1% $ 24.7 20.3 21.9% Gross profit $ 2,777.2 2,515.4 10.4% $ 712.9
Slide 5: 4Q21 Growth Driver Update
4Q21 Growth Driver Update Onsite Signings and Active Locations • Onsites: We had 44 signings in 4Q21 (274 YTD) and finished 150 1,500 with 1,416 active sites, +11.9% from 4Q20. Daily sales, 1,114 1,416 excluding transferred branch sales, grew more than 20% from 120 1,200 1,265 4Q20. Our goal is 375
Slide 6: Branch Consolidation
Branch Consolidation • Total in-market1 locations were 3,209 at the end of 4Q21, down 1.8% from 3,268 at 4Q20. We opened two traditional branches and 65 Onsites Branch Count in 4Q21. We closed/converted 68 traditional 3000 branches and 16 Onsites in 4Q21. 2500 • Traditional branch closings accelerat
Slide 7: 4Q21 Business Cadence
4Q21 Business Cadence End Market Daily Sales Rate (DSR) Growth • U.S. PMI averaged 60.2 in 4Q21. U.S. Industrial Production in 40% Oct/Nov 2021 increased 4.8% versus 4Q20. The data reflects 29.6% 30% continued favorable manufacturing sector conditions. 20% 23.8% • Supply chains remain tight, though
Slide 8: 4Q21 Margin Summary
4Q21 Margin Summary Gross Profit Margin • Higher gross margin reflected two items. First, safety product 50% margin was higher as mix and margin migrate toward pre- 46.9% 46.5% pandemic levels. Second, good demand contributed to good 45.6% overhead absorption/organizational cost leverage. 45% • Prod
Slide 9: 4Q21 Cash Flow Profile
4Q21 Cash Flow Profile Operating Cash Flow • 4Q21 operating cash flow was $156.4, or 67.7% of net (in millions) 350 163.7% earnings. We continue to experience meaningful increases in 300 working capital to support growth and account for inflation. 141.2% 250 • Inventory rose 13.9% due to inflation a
Slide 10: 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 11: 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) 4Q21 4Q20 (Amounts in millions) 4Q21 4Q20 Operating Income $ 1,217.4 1,141.8 Net Earnings $ 925.0 859.1 Income Tax Expense (282.8) (273.6) Tota
Slide 12: 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. 2022 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.
Slide 13: Employee Statistics
Employee Statistics Absolute Count FTE Count 1 HEADCOUNT STATISTICS Change Change Since Change Since Change 4Q21 3Q21 3Q21 4Q20 Since 4Q20 4Q21 3Q21 3Q21 4Q20 Since 4Q20 In-market locations (branches & Onsites) 12,464 12,347 0.9% 12,680 (1.7%) 11,337 11,104 2.1% 11,260 0.7% Non-in-market selling 2,1
Slide 14: 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 2 Cumulative 122 80 53 24 41 40 18 11 12 12 10 Closed/Converted Br
Slide 15: End Market Profile
End Market Profile End Market Mix — 2020 End Market Mix — 2021 Transportation/ Other, 3.3% Transportation/ Other, 3.0% Warehousing, 6.9% Warehousing, 4.9% Gov't/Education, 4.6% Gov't/Education, 8.1% Manufacturing, 39.0% Reseller, 7.5% Manufacturing, 41.9% Reseller, 8.0% Construction, 11.1% Construct