Skip to content
AnalystLens

FASTENAL CO Annual Report, Year Ended Dec 31, 2000

Filing Date
Filed March 5, 2001
Period End
December 31, 2000
Security
FAST
In the record · 2016–202610-K1210-Q348-K100

FAST filed 12 annual reports (10-K), 34 quarterly reports (10-Q) and 100 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’16Jul ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 5, 2001. Cited figures are marked; the original filing is the authoritative source.

Fastenal Company (FAST) reported a strong fiscal 2000, with net sales rising 22.4% to $745.7 milliona from $609.2 million in 1999, and net earnings growing 23.3% to $80.7 million, or $2.13 per diluted share.

Gross margin was 52.1% (versus 52.4% in 1999), and operating and administrative expenses fell to 34.7% of sales from 35.1%, which lifted operating income to $129.6 millionb. Growth came mainly from new store openings, same-store unit growth, and newer product lines, which now make up 35.5% of sales. Management tempered the picture by noting price deflation in the first half of 2000 and a slowdown in manufacturing activity among its U.S. and Canadian customers.

The balance sheet remains very conservative. The company ended 2000 with no long-term debt, $32.7 millionc in cash, and stockholders' equity of $359.3 million. Inventory rose 34.2% to $143.1 million, which drove operating cash flow down to $38.3 million from $56.0 million in 1999.

Capital expenditures are planned at roughly $40 milliond for 2001. The company operated 897 store sites at year-end, including 90 opened in 2000, and expects new store openings of about 10% to 15% per year. Its 10-K also flags several forward-looking risks, including economic cycles, the ability to attract personnel, supply chain exposure to Far East sourcing, and the rollout of new management information systems.

For investors, the key points are consistent top-line growth, steady profitability, a debt-free balance sheet, and a dividend that was raised to $0.09 per share for 2001. The main watch items are the rising inventory build, the decelerating new-store growth rate, and the company's exposure to industrial and construction cycles.

02—Key points

Key Highlights

  1. Net sales grew 22.4% to $745.7 million in 2000, up from $609.2 million in 1999.
  2. Net earnings rose 23.3% to $80.7 million, or $2.13 per share, versus $1.73 in 1999.
  3. Operating income increased to $129.6 million, supported by operating and administrative expenses falling to 34.7% of sales from 35.1%.
  4. Gross margin slipped modestly to 52.1% from 52.4%, reflecting product mix changes.
  5. The company ended 2000 with no long-term debt, $32.7 million in cash, and $359.3 million in stockholders' equity.
  6. Inventory increased 34.2% to $143.1 million, which reduced operating cash flow to $38.3 million from $56.0 million.
  7. The store network reached 897 sites after 90 openings in 2000, and the board raised the annual dividend to $0.09 per share for 2001.

03—Questions

Frequently Asked Questions

  1. What drove Fastenal's revenue growth in 2000?

    Sales growth of 22.4% came primarily from new store openings, unit sales growth at existing stores, and growth in newer product lines such as tools, cutting tools, and electrical supplies. Price deflation in the first half of 2000 partially offset these gains.

  2. Is Fastenal carrying significant debt?

    No. The company had no long-term debt at December 31, 2000, 1999, or 1998. Its only borrowing facility is a $15 million line of credit that was undrawn at year-end and expires June 30, 2001.

  3. Why did operating cash flow decline in 2000?

    Operating cash flow fell to $38.3 million from $56.0 million, mainly because inventory rose 34.2% and receivables grew, even though net earnings increased. The company's vehicle leasing shift also reduced proceeds from vehicle sales in investing activities.

  4. What are the main risks identified in the filing?

    Key risks include economic downturns affecting existing stores and new openings, difficulty attracting and retaining store staff, exposure to Far East sourcing and foreign currency movements, disruption from new management information systems, and changes in product-quality or traceability regulations.

  5. What is the company's expansion outlook for 2001?

    Fastenal expects to keep opening stores at about 10% to 15% per year, add stores in Canada and Puerto Rico, open its first Mexican store, and invest approximately $40 million in capital expenditures, including new distribution capacity in Kansas City.

04—Continue

← View all 10-K filings