Summary
Fastenal Company's 2011 10-K report details a year of significant sales growth, with net sales increasing by 21.9% to $2.77 billion, primarily driven by higher unit sales and recovery in the manufacturing and construction sectors. The company's strategic 'pathway to profit' initiative, which balances new store openings with investments in sales personnel and efficiency improvements, showed positive results. Despite economic uncertainties, Fastenal demonstrated resilience, with consistent gross profit margins and an improvement in operating and administrative expenses as a percentage of net sales. The company's diversified product lines and extensive store network of 2,585 locations across North America and internationally provided a solid foundation. A key growth driver highlighted is the expansion of FAST Solutions, their industrial vending program, which is showing promising adoption and sales contribution. Fastenal also continued to manage its capital effectively, investing in property and equipment, including its distribution centers and the burgeoning vending technology, while returning capital to shareholders through dividends.
Financial Highlights
49 data points| Revenue | $2.77B |
| Cost of Revenue | $1.33B |
| Gross Profit | $1.43B |
| SG&A Expenses | $859.37M |
| Operating Income | $574.61M |
| Interest Expense | $0 |
| Net Income | $357.93M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 1.18B |
| Shares Outstanding (Diluted) | 1.18B |
Key Highlights
- 1Net sales increased by 21.9% to $2.77 billion in 2011, indicating a strong recovery and growth trajectory.
- 2The company operated 2,585 store locations globally by year-end, underscoring its extensive distribution network.
- 3FAST Solutions (industrial vending) is a significant growth initiative, with a substantial increase in installed machines and a growing percentage of net sales contribution.
- 4The 'pathway to profit' strategy continues to evolve, balancing store growth with investments in sales personnel and operational efficiencies.
- 5Gross profit margin remained stable at 51.8% in 2011 and 2010, reflecting effective cost management and pricing strategies.
- 6Operating and administrative expenses improved as a percentage of net sales, down to 31.1% in 2011 from 32.8% in 2010.
- 7Capital expenditures increased, driven by investments in FAST Solutions (industrial vending) equipment and enhancements to distribution infrastructure.