In observance of the birth of Dr. Martin Luther King, Jr., stock markets in the U.S. are closed today. Neither are any economic reports scheduled to come out today. Nevertheless, we here at Zacks continue to keep you updated — if not for events happening in real time, then for what we can expect in this holiday-shortened week to come.First, let’s take a quick look back on the first two weeks of the new year. While we have already seen a couple sessions reminiscent of the robust positivity we saw in the fina ...

Fastenal Company (FAST) is scheduled to report fourth-quarter 2023 results on Jan 18, before the opening bell.In the last reported quarter, earnings beat the Zacks Consensus Estimate by 2%, but net sales missed the same by 0.2%. Earnings and net sales increased 4.1% and 2.4% from the year-ago figures, respectively. Fastenal’s earnings topped the consensus mark in three of the last four quarters and met on one occasion, with the average being 2.6%.Trend in Estimate RevisionFor the quarter to be reported, the ...

Wall Street analysts forecast that Fastenal (FAST) will report quarterly earnings of $0.45 per share in its upcoming release, pointing to a year-over-year increase of 4.7%. It is anticipated that revenues will amount to $1.75 billion, exhibiting an increase of 3.1% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timefram ...

WINONA, Minn.--(BUSINESS WIRE)--Fastenal Company (Nasdaq:FAST) announced the date and time for its conference call to review 2023 annual and fourth quarter results, as well as current operations. The conference call will be broadcast live over the Internet on Thursday, January 18, 2024 at 9:00 a.m. central time. To access the call, please visit the following Web address: https://investor.fastenal.com/events.cfm Our conference call presentation (which includes information, supplemental to that contained i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023, or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission file number 0-16125 FASTENAL COMPANY (Exact name of registrant as specified in its charter) Minneso ...

Financial Data and Key Metrics Changes - Total sales in Q3 2023 increased by 2.4%, with daily sales growth at 4% due to one fewer selling day in the quarter [55][41] - Earnings per share (EPS) for Q3 was $0.52, reflecting a 4.1% increase compared to the same period last year [42][76] - Gross margin remained flat at 45.9% year-over-year, benefiting from reduced freight costs and the absence of a prior year's glove write-down [57][58] - Operating cash flow grew by 51% year-over-year, with a conversion rate of 121% of net earnings into operating cash, the highest in a decade [48][78] Business Line Data and Key Metrics Changes - Fasteners, constituting about one-third of sales, saw a decline of 2% due to cyclical factors, while non-fastener products remained healthy [43][74] - The safety business grew nearly 10% in September, attributed to the success of the FMI program [52] - The Onsite and FMI installed bases expanded, with 93 new Onsite locations signed in the quarter, totaling 1,778 active sites, a 13.5% increase year-over-year [68][73] Market Data and Key Metrics Changes - Daily sales growth in September improved to 5%, although this was attributed to easier comparisons rather than a clear signal of increased demand [55][56] - Manufacturing sales grew by 6.4%, while non-manufacturing sales declined by 1.3%, indicating a shift towards larger manufacturing-oriented customers [73] Company Strategy and Development Direction - The company aims to enhance its digital footprint, with 57% of revenue touching some digital aspect, targeting 60% by year-end and 85% in the long term [34] - A restructuring of the sales team was implemented to capitalize on untapped opportunities in the Onsite business, with a goal of signing 400 Onsite locations annually [67][49] Management's Comments on Operating Environment and Future Outlook - Management noted that demand remains sluggish, with a cautious outlook for spending and production, but expressed confidence in the ability to accelerate sales growth when demand improves [55][79] - The company is focused on maintaining strong profitability and returns while managing discretionary expenses effectively [79][116] Other Important Information - The company announced a consistent quarterly dividend of $0.35, maintaining the same level as in previous quarters [53] - Leadership changes were noted, including the elevation of Tony Broersma to a more significant role within operations [54] Q&A Session All Questions and Answers Question: Can you discuss the feedback after reopening stores? - Management indicated limited feedback but emphasized the importance of consistency in operations and customer service [14][25] Question: What are the expectations for price-cost dynamics? - Management acknowledged that while price-cost was positive year-on-year, there remains some variability, and they expect it to trend towards neutrality in the coming quarters [11][16] Question: Can you provide insights on the fastener market? - Fasteners are experiencing a decline, particularly in MRO, while OEM fasteners continue to grow due to Onsite implementations [127][141] Question: What are the expectations for gross margin in Q4? - Management anticipates that gross margin will not increase from Q3 levels due to seasonal factors and potential moderation in price-cost dynamics [129][132]

1 | --- | --- | |-----------------------------------------------------------------------------------------------------|-------| | | | | All statements made herein that are not historical facts (e.g., future operating results, long-term | | CEO MESSAGES ON 2Q23 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 $0.55 EPS (Fully Diluted) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 $0.42 • In 2Q23, we appointed Jeff Watts as Chief Sales Officer. Mr. Watts has been with Fastenal f ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Fastenal Company's unaudited condensed consolidated financial statements for Q2 and H1 2023, including balance sheets, earnings, and cash flows, are presented with accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets increased to $4,576.8 million, driven by receivables and offset by inventories, with stockholders' equity at $3,380.8 million | (In millions) | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $3,137.0 | $3,124.8 | | **Total assets** | $4,576.8 | $4,548.6 | | **Total current liabilities** | $736.6 | $789.8 | | **Total liabilities** | $1,196.0 | $1,385.4 | | **Total stockholders' equity** | $3,380.8 | $3,163.2 | [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Q2 2023 net sales increased to $1,883.1 million, with net earnings at $298.0 million and diluted EPS of $0.52; H1 sales grew to $3,742.2 million with EPS of $1.04 | (In millions, except per share data) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net sales | $1,883.1 | $1,778.6 | | Gross profit | $857.5 | $827.6 | | Operating income | $394.9 | $383.4 | | Net earnings | $298.0 | $287.1 | | Diluted net earnings per share | $0.52 | $0.50 | | (In millions, except per share data) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net sales | $3,742.2 | $3,482.6 | | Gross profit | $1,707.5 | $1,620.9 | | Operating income | $788.1 | $741.4 | | Net earnings | $593.1 | $556.7 | | Diluted net earnings per share | $1.04 | $0.96 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2023 was $301.6 million, and $601.0 million for H1, primarily due to higher net earnings and positive foreign currency translation adjustments | (In millions) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net earnings | $298.0 | $287.1 | | Other comprehensive income (loss) | $3.6 | $(26.0) | | **Comprehensive income** | **$301.6** | **$261.1** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to $3,380.8 million as of June 30, 2023, driven by **$593.1 million** in net earnings, partially offset by **$399.7 million** in cash dividends - For the six months ended June 30, 2023, net earnings of **$593.1 million** were partially offset by **$399.7 million** in cash dividends paid[17](index=17&type=chunk) - Cash dividends paid per share of common stock increased to **$0.35** for the second quarter of 2023, compared to **$0.31** for the same period in 2022[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $690.6 million for H1 2023, mainly due to inventory changes, with financing activities using $592.2 million for debt and dividends | (In millions) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $690.6 | $381.2 | | Net cash used in investing activities | $(85.2) | $(77.1) | | Net cash used in financing activities | $(592.2) | $(285.4) | | Net increase in cash and cash equivalents | $13.5 | $11.7 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation (U.S. 83.5% of Q2 revenue, Manufacturing 74.8%), stockholders' equity, and debt, with total debt decreasing to $350.0 million | Revenue by Geography (Q2 2023) | % of Revenues | | :--- | :--- | | United States | 83.5% | | Canada and Mexico | 13.5% | | All other foreign countries | 3.0% | | Revenue by End Market (Q2 2023) | % of Sales | | :--- | :--- | | Manufacturing | 74.8% | | Non-residential construction | 9.2% | | Other | 16.0% | - On July 12, 2023, the board of directors declared a quarterly dividend of **$0.35 per share**[27](index=27&type=chunk) - Total debt outstanding decreased from **$555.0 million** at the end of 2022 to **$350.0 million** as of June 30, 2023[36](index=36&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q2 and H1 2023 financial results, highlighting net sales growth, gross margin decline, improved operating cash flow, and strong Digital Footprint growth - The company is a North American leader in wholesale distribution of industrial and construction supplies, serving manufacturing and non-residential construction markets through a network of over **3,300 in-market locations**[43](index=43&type=chunk) - The number of active Onsite locations grew **15.1% YoY to 1,728**, and weighted FMI devices increased **10.6% YoY to 107,115**[49](index=49&type=chunk) [Second Quarter 2023 vs. Second Quarter 2022 Analysis](index=16&type=section&id=SECOND%20QUARTER%20OF%202023%20VERSUS%20SECOND%20QUARTER%20OF%202022) Q2 2023 net sales rose 5.9% to $1,883.1 million, with gross margin falling to 45.5% and operating income margin to 21.0%, while diluted EPS increased to $0.52 | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,883.1M | $1,778.6M | 5.9% | | Gross Profit % | 45.5% | 46.5% | -1.0 ppt | | Operating Income % | 21.0% | 21.6% | -0.6 ppt | | Diluted EPS | $0.52 | $0.50 | 4.6% | - Daily sales through Onsite locations grew at a high-teens rate, and eCommerce daily sales grew **44.7%**, representing **23.3% of total sales**[59](index=59&type=chunk)[61](index=61&type=chunk) - The company's Digital Footprint (FMI and eCommerce sales) represented **55.3% of sales in Q2 2023**, up from **47.9% in Q2 2022**[62](index=62&type=chunk) - Operating cash flow increased **99.8% to $302.1 million**, reflecting improved working capital management as global supply chains normalized[77](index=77&type=chunk)[78](index=78&type=chunk) [Six Months Ended June 30, 2023 vs. 2022 Analysis](index=22&type=section&id=SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202023%20VERSUS%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202022) H1 2023 net sales increased 7.5% to $3,742.2 million, with gross margin at 45.6% and operating income margin at 21.1%, resulting in net earnings of $593.1 million and diluted EPS of $1.04 | Metric | H1 2023 | H1 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,742.2M | $3,482.6M | 7.5% | | Gross Profit % | 45.6% | 46.5% | -0.9 ppt | | Operating Income % | 21.1% | 21.3% | -0.2 ppt | | Diluted EPS | $1.04 | $0.96 | 7.4% | - The Digital Footprint represented **54.7% of sales in H1 2023**, an increase from **47.5% in H1 2022**[98](index=98&type=chunk) - Net cash provided by operating activities increased **81.2% to $690.6 million**, as working capital was a reduced use of cash compared to the prior year[110](index=110&type=chunk)[111](index=111&type=chunk) - In H1 2023, the company returned **$399.7 million** to shareholders via dividends and did not repurchase any stock, compared to returning **$406.2 million** (dividends and buybacks) in H1 2022[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from foreign currency, commodity prices, and interest rates, with immaterial impact on H1 2023 net earnings, and no historical use of hedging instruments - The primary market risks are foreign currency exchange rates (mainly Canadian dollar), commodity steel and energy pricing, and interest rates on floating-rate debt[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) - In the first six months of 2023, the estimated effect on net earnings from foreign currency, commodity pricing, and energy prices was immaterial[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - A one percentage point increase to the company's floating rate debt in H1 2023 would have resulted in approximately **$0.5 million** of additional interest expense[122](index=122&type=chunk) [Controls and Procedures](index=27&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes in internal control over financial reporting during Q2 - Based on an evaluation as of the end of the reporting period, the principal executive and financial officers concluded that the company's disclosure controls and procedures are effective[123](index=123&type=chunk) - There were no changes in internal control over financial reporting during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[124](index=124&type=chunk) [PART II - OTHER INFORMATION](index=28&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) As of June 30, 2023, the company reported no litigation matters considered probable or reasonably possible to have a material adverse outcome - As of June 30, 2023, there were no litigation matters that the company considers to be probable or reasonably possible to have a material adverse outcome[40](index=40&type=chunk)[126](index=126&type=chunk) [Risk Factors](index=28&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company states no material changes to risk factors from its most recent Annual Report on Form 10-K, referring readers to that report for full details - The company's significant risk factors are described in its most recently filed annual report on Form 10-K and in Item 2 of this quarterly report[127](index=127&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase common stock in Q2 2023, retaining authority to repurchase an additional 6,200,000 shares under its current authorization - No shares of common stock were repurchased during the second quarter of 2023[128](index=128&type=chunk) - As of June 30, 2023, the company has authority to repurchase an additional **6,200,000 shares** under its July 12, 2022 authorization[128](index=128&type=chunk) [Exhibits](index=28&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including Sarbanes-Oxley Act certifications and financial statements in Inline XBRL format - The exhibits filed with the report include Sarbanes-Oxley Act certifications (Sections 302 and 906) and financial data in Inline XBRL format[130](index=130&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023, or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission file number 0-16125 Indicate by check mark whether the registrant: (1) has filed all reports required t ...

Financial Performance - First quarter 2023 earnings per share (EPS) were $0.52, a 10.4% increase[39] - First quarter 2023 operating cash flow was $388.5 million, representing 131.7% of net earnings[24, 35] - The company returned $199.8 million of capital to shareholders through dividends in the first quarter of 2023[29] - First quarter 2023 gross margin was 45.7%, a decrease from 46.6% in the first quarter of 2022[47] - First quarter 2023 operating margin was 21.2%, an increase from 21.0% in the first quarter of 2022, with an incremental operating margin of 22.7%[48] - The company's balance sheet debt was 10.9% of total capital in the first quarter of 2023, compared to 10.4% in the first quarter of 2022[29] - The company repurchased $237.8 million of its common stock over the past twelve months[29] - The company's net capital spending was $30.9 million in the first quarter of 2023, with a projected range of $210.0 to $230.0 million for 2023[29] Sales and Market Trends - Daily sales through the company's digital footprint (FMI technology plus non-FMI-related eCommerce) accounted for 54.1% of sales in the first quarter of 2023, compared to 47.0% in the first quarter of 2022[41] - eCommerce daily sales increased by 48.7% in the first quarter of 2023, with large customer-oriented electronic data interchange (EDI) up 42.2% and web sales up 69.5%[42] - National Accounts' daily sales rose 13.6% in the first quarter of 2023, while non-National Account daily sales rose 3.4%[46] - The company signed 5,902 weighted devices (92/day) in the first quarter of 2023, compared to 5,329 (83/day) in the first quarter of 2022, with an installed base of 104,673 weighted devices, a 10.9% increase[37] - Active Onsite locations finished at 1,674, a 16.3% increase from the first quarter of 2022, with daily sales, excluding transferred branch sales, growing roughly 20%[37] Operational Statistics - The company's total employee headcount was 22,820 in the first quarter of 2023, a 1.9% increase since the fourth quarter of 2022 and a 7.8% increase since the first quarter of 2022[21] - The number of in-market locations (branches & Onsites) was 13,668 in the first quarter of 2023, a 1.9% increase since the fourth quarter of 2022 and a 6.3% increase since the first quarter of 2022[21]