Summary
Fastenal Company reported solid financial results for the second quarter and the first half of 2013, demonstrating continued sales growth and improved profitability. Net sales increased by 5.3% for the quarter and 5.1% for the first half compared to the prior year, driven by higher unit sales across its extensive store network. The company's gross profit margin showed improvement, reflecting effective pricing strategies and operational efficiencies, while operating and administrative expenses also managed well relative to sales growth. Key financial highlights include a robust increase in earnings per share and strong operating cash flow generation. Management emphasized growth drivers such as the expanding FAST SolutionsSM (industrial vending) program, which continues to show significant traction with customers and contributes to higher sales growth in accounts with vending solutions. The company also highlighted its ongoing commitment to its 'pathway to profit' strategy, which aims to enhance profitability through optimizing store performance and operational leverage. Despite some headwinds from economic uncertainty and specific end-market softness, Fastenal maintained a positive outlook and strong balance sheet.
Financial Highlights
48 data points| Revenue | $847.60M |
| Cost of Revenue | $404.88M |
| Gross Profit | $442.72M |
| SG&A Expenses | $250.75M |
| Operating Income | $192.21M |
| Interest Expense | $3K |
| Net Income | $121.01M |
| EPS (Basic) | $0.10 |
| EPS (Diluted) | $0.10 |
| Shares Outstanding (Basic) | 1.19B |
| Shares Outstanding (Diluted) | 1.19B |
Key Highlights
- 1Net sales increased by 5.3% to $847.6 million for the three months ended June 30, 2013, and by 5.1% to $1.65 billion for the six months ended June 30, 2013, compared to the prior year periods.
- 2Diluted earnings per share rose to $0.41 for the second quarter and $0.77 for the first half of 2013, up from $0.38 and $0.72, respectively, in the same periods of 2012.
- 3Gross profit margin improved to 52.2% for the second quarter and 52.3% for the first half of 2013, compared to 51.6% and 51.4% in the respective prior-year periods.
- 4Operating cash flow remained strong, with $213.9 million generated for the first six months of 2013, an increase from $190.4 million in the prior year.
- 5The FAST SolutionsSM (industrial vending) initiative continues to be a significant growth driver, with 29,549 cumulative machines installed by the end of the second quarter of 2013, and customers with vending machines showing significantly higher daily sales growth.
- 6Inventories and accounts receivable increased year-over-year, reflecting sales growth and strategic inventory management, with total operational working capital up 9.3%.
- 7The company declared a quarterly dividend of $0.25 per share, payable in August 2013, indicating a continued commitment to returning capital to shareholders.