[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]

Financial Data and Key Metrics Changes - The company reported operating cash flow of $389 million, which is 132% of earnings and 70% higher than the previous year, generating approximately $160 million of additional operating cash in the quarter [4] - Earnings per share (EPS) for the first quarter of 2023 was $0.52, an increase of over 10% from $0.47 in the first quarter of 2022 [7][122] - Operating margin in Q1 2023 was 20.2%, up from 20% in the prior year, while gross margin was 45.7%, down 80 basis points from the previous year [125] Business Line Data and Key Metrics Changes - The Onsite business signed 89 new sites in the quarter, with active sites totaling 1,674, representing a 16% increase year-over-year [24] - The company experienced a downshift in broader market activity in March, with daily sales growth (DSR) slowing to 6.8%, including just 2.3% daily growth in fasteners [26] - The contribution to margin from freight was better than anticipated, with annual and sequential declines in both container costs and containers purchased on the import side [16] Market Data and Key Metrics Changes - The company noted weakness in several major retailer customers, international business, and construction and reseller businesses, which have been consistent since Q3 2022 [6] - Accounts receivable increased by 7.3% year-over-year due to higher customer demand and a shift towards larger key account customers [27] Company Strategy and Development Direction - The company aims to accelerate customers' digital transformation and secure their supply chains, focusing on productivity and understanding customer goals related to ESG [12][23] - The company is expanding its distribution facilities and investing in fleet and IT equipment, with net capital spending expected to be between $210 million and $230 million for 2023 [17][35] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding hiring due to a softening demand in March, indicating a need to adjust resources accordingly [30] - The company anticipates outgrowing the marketplace despite current market challenges, with expectations of improved performance in the coming months [26] Other Important Information - The company reported a significant improvement in labor productivity and reduced cost footprint, with inventory days declining from 175 to 154 days [15] - The company is focused on managing pricing and costs effectively, with expectations of price/cost neutrality moving forward [80] Q&A Session Summary Question: How do RVPs feel about adding FTEs? - Management indicated that RVPs are cautious about hiring and are prepared to adjust resources based on demand fluctuations [30] Question: What is the outlook for capital spending despite growth slowing? - Management confirmed that capital spending plans remain intact as they are expanding infrastructure and addressing previous supply chain constraints [35] Question: What are the trends in fastener sales? - Management noted a slowdown in fastener sales growth, particularly in March, and indicated that OEM fasteners represent a significant portion of the business [42][76] Question: How is the company managing pricing relative to costs? - Management emphasized their strategy to align pricing with costs and maintain price/cost neutrality, with expectations of stable pricing moving forward [86]

☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 WASHINGTON, D.C. 20549 ____________________________________________________________ FORM 10-K Table of Contents (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 spec ...

Fastenal Company (NASDAQ:FAST) Q4 2022 Results Conference Call January 19, 2023 10:00 AM ET Company Participants Taylor Ranta - Financial Reporting, Regulatory Compliance Manager Dan Florness - President and Chief Executive Officer Holden Lewis - Chief Financial Officer Conference Call Participants Chris Snyder - UBS David Manthey - Baird Jake Levinson - Melius Research Ryan Merkel - William Blair Tommy Moll - Stephens Operator Greetings, and welcome to the Fastenal 2022 Annual and Fourth Quarter Earnings R ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $.01 per share FAST The Nasdaq Stock Market LLC 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, 2022, or ☐ Transition report pursuant to Section 13 or ...

Fastenal Company (NASDAQ:FAST) Q3 2022 Earnings Conference Call October 13, 2022 10:00 AM ET Company Participants Taylor Ranta - Financial Reporting and Regulatory Compliance Accountant Dan Florness - President and CEO Holden Lewis - Chief Financial Officer Conference Call Participants David Manthey - Baird Jake Levinson - Melius Research Chris Dankert - Loop Capital Markets Tommy Moll - Stephens Chris Snyder - UBS Ken Newman - KeyBanc Capital Markets Nigel Coe - Wolfe Research Operator Greetings, and welco ...

THIRD QUARTER 2022 INVESTOR TELECONFERENCE OCTOBER 13, 2022 1 SAFE HARBOR STATEMENT | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $.01 per share FAST The Nasdaq Stock Market LLC 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 June 30, 2022, or ☐ Transition report pursuant to Section 13 or 15(d ...