What was Fastenal's revenue performance in the first half of 2014?

For the six months ended June 30, 2014, Fastenal reported a 10.4% increase in net sales, reaching $1.83 billion, compared to $1.65 billion in the same period of 2013. This growth was primarily driven by higher unit sales across its store network.

How did the company's profitability change during this period?

Net earnings for the first six months of 2014 rose by 5.4% to $242.4 million, from $230.1 million in the prior year. Diluted earnings per share were $0.82 for the six-month period, up from $0.78 in the prior year.

What are the key growth drivers for Fastenal?

Key growth drivers include the expansion of its FAST Solutions® (industrial vending) program, growth in non-fastener product lines, and increased sales at established store locations ('same store' sales). The company also emphasizes its 'Growth through Customer Service®' motto, focusing on proximity to customers and efficient operations.

What is the company's financial health and cash flow situation?

Fastenal maintains a strong balance sheet with total assets of $2.28 billion as of June 30, 2014. The company generated robust operating cash flow of $222.9 million in the first six months of 2014, indicating healthy liquidity and the ability to fund operations and investments.

FAST 10-Q Quarterly Report Q2 FY2014 — Revenue, Net Income, EPS

Summary

Fastenal Company reported solid performance for the six months ended June 30, 2014, demonstrating continued revenue growth and profitability. Net sales increased by 10.4% to $1.83 billion, and net earnings rose by 5.4% to $242.4 million compared to the same period in the prior year. The company also saw a healthy increase in its quarterly sales, up 12.1% to $950 million for the three months ended June 30, 2014. Key drivers for this growth include an increase in unit sales across older store locations, reflecting the effectiveness of its growth strategies such as FAST Solutions® (industrial vending). The company's focus on customer service and expanding its product lines, particularly in non-fastener categories, continues to pay off. Despite some headwinds from currency fluctuations and a challenging economic environment in early 2014 due to severe weather, Fastenal maintained a strong operational performance, supported by efficient management of working capital and a solid balance sheet.

Financial Highlights

48 data points

Beta

Revenue

$949.94M

0.5% Gross Margin

Net Income

$130.51M

0.1% Net Margin

EPS (Diluted)

$0.11

Total Assets

$2.28B

Cash & Equivalents

$105.94M

Free Cash Flow

$14.63M

Financial Statements

Beta

Revenue	$949.94M
Cost of Revenue	$467.27M
Gross Profit	$482.67M
SG&A Expenses	$276.02M
Operating Income	$206.85M
Interest Expense	$194K
Net Income	$130.51M
EPS (Basic)	$0.11
EPS (Diluted)	$0.11
Shares Outstanding (Basic)	1.19B
Shares Outstanding (Diluted)	1.19B

Key Highlights

1Net sales for the six months ended June 30, 2014, increased by 10.4% to $1.83 billion, compared to $1.65 billion in the prior year.
2Net earnings for the six months increased by 5.4% to $242.4 million, resulting in a diluted EPS of $0.82.
3The company experienced robust quarterly sales growth, with net sales up 12.1% to $950 million for the three months ended June 30, 2014.
4Daily sales growth for stores opened greater than five years, a key indicator of economic impact, showed consistent improvement, reaching 10.0% in the second quarter of 2014.
5FAST Solutions® (industrial vending) continues to be a growth driver, with the percentage of total net sales to customers using vending solutions increasing significantly to 37.0% in Q2 2014.
6Operating cash flow for the six months was strong at $222.9 million, indicating healthy cash generation from operations.
7The company's balance sheet remains strong, with total assets growing to $2.28 billion as of June 30, 2014.

FASTENAL CO Quarterly Report for Q2 Ended Jun 30, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions