Fastenal(FAST)2024-10-16 13:35Financial Performance - Net sales for the nine-month period ended September 30, 2024, increased by 2.4% to 5,588.1 million in 2023[43] - Gross profit for the three-month period ended September 30, 2024, was 847.6 million in 2023[43] - Operating income for the nine-month period in 2024 decreased by 0.8% to 1,174.9 million in 2023[43] - Daily sales for the three-month period ended September 30, 2024, were 29.3 in 2023[48] - Net income for Q3 2024 was 0.52[63] - Net income for the first nine months of 2024 was approximately flat at 1.55[93] Sales and Growth - The number of active Onsite locations increased by 2.7% to 1,986 compared to 1,934 in Q2 2024[44] - The company opened 7 branches in the nine-month period of 2024, compared to 8 in the same period of 2023[45] - The company expects to see an increase in the rate of in-market location growth as it continues to open Onsites while stabilizing its traditional branch network[45] - National accounts represented 62.7% of sales in the first nine months of 2024, showing a 5.9% increase compared to the previous year[79] - Daily sales through eBusiness grew by 27.9%, representing 29.1% of total sales in the first nine months of 2024[82] Expenses and Margins - Gross profit margin decreased to 44.9% in Q3 2024 from 45.9% in Q3 2023, impacted by unfavorable customer mix and higher import duties[57] - SG&A expenses as a percentage of net sales decreased to 24.6% in Q3 2024 from 25.0% in Q3 2023, with total SG&A expenses increasing by 2.1%[58] - Operating income as a percentage of net sales decreased to 20.3% in Q3 2024 from 21.0% in Q3 2023[63] - SG&A expenses increased to 24.8% of net sales in the first nine months of 2024, up from 24.7% in the same period of 2023[84] Cash Flow and Investments - Net cash provided by operating activities decreased by 23.5% to 388.1 million in Q3 2023[64] - Net cash provided by operating activities decreased by 890.5 million in the first nine months of 2024 compared to 157.0 million in the first nine months of 2024, primarily due to higher capital expenditures[96] - Cash returned to shareholders in the form of dividends was 199.8 million in Q3 2023[71] Inventory and Receivables - Accounts receivable increased to 29.7 million increase or 2.5% from September 2023[67] - Inventories rose to 45.7 million increase or 3.0% year-over-year, driven by sales growth and stock additions[67] Market and Economic Factors - The estimated effect on net income related to import shipping costs was favorable between 18.0 million in the first nine months of 2024[101] - Commodity steel prices had an immaterial effect on net income during the first nine months of 2024, with prices at or slightly below the prior year period[101] - Energy prices were below the prior year period, and the estimated effect on net income related to commodity energy prices was immaterial in the first nine months of 2024[101] - Changes in foreign currency exchange rates were immaterial for the first nine months of 2024, with primary exposure to the Canadian dollar[101] Debt and Interest - Total debt decreased to 260.0 million or 7.0% a year earlier[71] - Net interest expense decreased to 7.1 million in the same period of 2023[91]