Fastenal(FAST) - 2024 Q4 - Annual Results

Sales Performance - Net sales increased by 2.7% to $7,546.0 million in 2024 compared to$ 7,346.7 million in 2023, with a 3.7% increase in the fourth quarter to $1,824.5 million[3] - Daily sales grew by 2.1% in Q4 2024 to$ 29.0 million, driven by growth at Onsite locations and larger customers[4][5] - Safety supplies sales grew by 4.8% in Q4 2024, contributing 23.0% of total sales, while fastener sales contracted by 1.4%[6] - National accounts sales grew by 4.2% in Q4 2024, representing 64.2% of total sales, compared to non-national accounts which declined by 1.0%[6] - FASTBin/FASTVend sales increased by 12.6% in Q4 2024 to $584.8 million, contributing 31.6% of total sales[8] - eBusiness sales grew by 27.6% in Q4 2024, representing 30.9% of total sales, with eProcurement growing 37.6% and eCommerce growing 2.0%[9] - The Digital Footprint represented 62.2% of sales in Q4 2024, up from 58.1% in Q4 2023, with expectations to reach 66% to 68% of sales volume in 2025[11] - Net sales for the year ended December 31, 2024, increased to$ 7,546.0 million from $7,346.7 million in 2023, representing a growth of 2.7%[42] Operational Metrics - The company signed 6,790 weighted FASTBin and FASTVend devices in Q4 2024, totaling 27,984 signings for the year, meeting the 2024 goal[10] - Onsite locations increased by 11.5% to 2,031 active sites by December 31, 2024, with 358 new signings in 2024[10] - Number of active Onsite locations increased by 11.5% to 2,031 in 2024, contributing to a 6.1% growth in total in-market locations[33] Financial Performance - Gross profit as a percentage of net sales decreased to 44.8% in Q4 2024 from 45.5% in Q4 2023, impacted by unfavorable customer and product mix, higher freight costs, and increased import duties[12] - SG&A expenses as a percentage of net sales increased to 25.9% in Q4 2024 from 25.3% in Q4 2023, driven by low sales volume and continued business investments[13] - Employee-related expenses, representing 70%-75% of total SG&A, increased by 3.1% in Q4 2024 due to higher average FTE and wages, partially offset by lower bonus payments[14] - Operating income as a percentage of net sales decreased to 18.9% in Q4 2024 from 20.1% in Q4 2023[17] - Net income in Q4 2024 was$ 262.1, a 1.6% decrease compared to Q4 2023, with diluted net income per share remaining flat at $0.46[20] - Gross profit for the year ended December 31, 2024, was$ 3,401.9 million, up from $3,354.5 million in 2023, reflecting a 1.4% increase[42] - Net income for the year ended December 31, 2024, was$ 1,150.6 million, slightly down from $1,155.0 million in 2023[42] - Basic net income per share for the year ended December 31, 2024, was$ 2.01, slightly down from $2.02 in 2023[42] Cash Flow and Investments - Net cash provided by operating activities in Q4 2024 was$ 282.8, a 20.1% decrease from Q4 2023, primarily due to increased inventory investment[21] - Inventories increased by 8.0% to $1,645.0 in 2024, driven by sales growth, stock additions for in-market locations, and supplier year-end opportunities[25] - Investment in property and equipment in 2024 was$ 214.1, below the anticipated range of $235.0-$ 255.0, due to lower demand for picking modules and FMI bins[27] - Cash and cash equivalents increased to $255.8 million at the end of 2024 from$ 221.3 million at the end of 2023, a 15.6% increase[40] - Net cash provided by operating activities for the year ended December 31, 2024, was $1,173.3 million, down from$ 1,432.7 million in 2023[45] - Purchases of property and equipment increased to $226.5 million in 2024 from$ 172.8 million in 2023, a 31.1% rise[45] - Cash dividends paid in 2024 were $893.3 million, down from$ 1,016.8 million in 2023, a 12.1% decrease[45] Debt and Capital Structure - Total debt decreased to $200.0 at the end of 2024, representing 5.2% of total capital, compared to$ 260.0 (7.2% of total capital) at the end of 2023[31] - Long-term debt decreased to $125.0 million in 2024 from$ 200.0 million in 2023, a 37.5% reduction[40] - Total assets grew to $4,698.0 million in 2024 from$ 4,462.9 million in 2023, a 5.3% increase[40] Foreign Exchange Impact - Foreign exchange rates negatively impacted Q4 2024 sales by approximately 20 basis points, compared to a positive impact of 10 basis points in Q4 2023[4]