Summary
Fastenal Company reported a strong performance for the nine months and third quarter ended September 30, 2011, demonstrating robust sales growth across various customer segments. Net sales increased by 22.0% for the nine months and 20.4% for the third quarter compared to the prior year periods. This growth was primarily driven by higher unit sales, reflecting a recovery in manufacturing and construction markets, though modest inflation also contributed. The company highlighted successful investments in store locations, national accounts, government sales, international operations, and industrial vending solutions. Financially, Fastenal maintained a strong balance sheet and healthy cash flow generation. Net earnings for the nine months rose to $270.5 million from $200.2 million in the prior year, with diluted EPS at $0.91 compared to $0.68. Operating income also saw significant improvement. The company continues to focus on its 'Pathway to Profit' initiative, emphasizing operational efficiency and customer service as key drivers for sustained growth and profitability. Dividend payments increased, reflecting confidence in future performance.
Financial Highlights
46 data points| Revenue | $726.74M |
| Cost of Revenue | $349.36M |
| Gross Profit | $377.38M |
| SG&A Expenses | $222.26M |
| Operating Income | $155.22M |
| Net Income | $96.80M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 1.18B |
| Shares Outstanding (Diluted) | 1.18B |
Key Highlights
- 1Net sales grew by 22.0% for the nine months ended September 30, 2011, reaching $2.07 billion, and by 20.4% for the third quarter to $726.7 million.
- 2Diluted earnings per share (EPS) increased to $0.91 for the nine months and $0.33 for the third quarter, up from $0.68 and $0.25 respectively in the prior year.
- 3Gross profit margin improved to 52.1% for the nine months and 51.9% for the third quarter, benefiting from stable product pricing and improved vendor incentives.
- 4The company generated strong operating cash flow of $194.2 million for the nine months, up from $166.3 million in the prior year, supporting increased dividend payments.
- 5Investments in strategic growth areas like industrial vending machines showed significant traction, with the percentage of total net sales from customers with vending machines reaching 13.3% in Q3 2011.
- 6Same-store sales growth remained healthy, with stores open more than two years showing 18.0% growth for the nine months and 16.8% for the third quarter.
- 7Fastenal successfully navigated a complex economic environment, with sales to manufacturing customers showing strong recovery (15.5% Q1-Q3 2011 growth) and construction customer sales also improving.