Fastenal Co. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Fastenal Co. filed its quarterly 10-Q report for the period ending March 31, 2024.</b>

AI Summary

FASTENAL CO (FAST) filed a Quarterly Report (10-Q) with the SEC on April 16, 2024. Fastenal Co. reported financial results for the period ending March 31, 2024. The filing is a 10-Q, indicating a quarterly report. The company's fiscal year ends on December 31st. Incorporated in Minnesota, Fastenal Co. operates in the Retail-Building Materials, Hardware, Garden Supply sector. The filing was submitted on April 16, 2024.

Why It Matters

For investors and stakeholders tracking FASTENAL CO, this filing contains several important signals. This 10-Q filing provides investors with updated financial performance and operational details for Fastenal Co. during the first quarter of 2024. Understanding the company's financial health and strategic direction is crucial for investors evaluating Fastenal Co.'s stock performance and future prospects.

Risk Assessment

Risk Level: — FASTENAL CO shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not indicate any immediate or significant negative developments.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess Fastenal Co.'s performance and outlook.

Key Players & Entities

• FASTENAL CO (company) — COMPANY CONFORMED NAME
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-04-16 (date) — FILED AS OF DATE
• MN (location) — STATE OF INCORPORATION
• 5200 (industry_code) — STANDARD INDUSTRIAL CLASSIFICATION
• 0000815556 (company_id) — CENTRAL INDEX KEY

FAQ

Industry Context

Fastenal Co. operates within the retail sector, specifically focusing on building materials, hardware, and garden supplies.

Regulatory Implications

The filing adheres to the requirements of the Securities Exchange Act of 1934, as indicated by the '1934 Act' designation.

What Investors Should Do

1. Analyze Fastenal Co.'s revenue and profitability trends from the Q1 2024 10-Q.
2. Examine any disclosed risks or uncertainties in the filing that could impact future performance.
3. Compare Fastenal Co.'s Q1 2024 results against previous periods and industry benchmarks.

Key Dates

• 2024-03-31: End of Reporting Period — Marks the end of the fiscal quarter for which the 10-Q report is filed.
• 2024-04-16: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Filing Documents

• fast-20240331.htm (10-Q) — 800KB
• fast03312024ex_31.htm (EX-31) — 21KB
• fast03312024ex_32.htm (EX-32) — 6KB
• 0000815556-24-000019.txt (&nbsp;) — 4084KB
• fast-20240331.xsd (EX-101.SCH) — 26KB
• fast-20240331_cal.xml (EX-101.CAL) — 43KB
• fast-20240331_def.xml (EX-101.DEF) — 102KB
• fast-20240331_lab.xml (EX-101.LAB) — 389KB
• fast-20240331_pre.xml (EX-101.PRE) — 258KB
• fast-20240331_htm.xml (XML) — 511KB

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income 2 Condensed Consolidated Statements of Comprehensive Income 3 Condensed Consolidated Statements of Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 12 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 22 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 22 PART II OTHER INFORMATION ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 23 ITEM 1A.

RISK FACTORS

RISK FACTORS 23 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 23 ITEM 5. OTHER INFORMATION 23 ITEM 6. EXHIBITS 23 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— FINANCIAL STATEMENTS

ITEM 1 — FINANCIAL STATEMENTS FASTENAL COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Amounts in millions except share information) (Unaudited) Assets March 31, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 237.1 221.3 Trade accounts receivable, net of allowance for credit losses of $ 4.8 and $ 6.4 , respectively 1,213.2 1,087.6 Inventories 1,496.3 1,522.7 Prepaid income taxes — 17.5 Other current assets 136.9 171.8 Total current assets 3,083.5 3,020.9 Property and equipment, net 1,013.0 1,011.1 Operating lease right-of-use assets 278.1 270.2 Other assets 158.1 160.7 Total assets $ 4,532.7 4,462.9 Liabilities and Stockholders' Equity Current liabilities: Current portion of debt $ — 60.0 Accounts payable 276.0 264.1 Accrued expenses 207.5 241.0 Current portion of operating lease liabilities 97.4 96.2 Income taxes payable 57.0 — Total current liabilities 637.9 661.3 Long-term debt 200.0 200.0 Operating lease liabilities 186.0 178.8 Deferred income taxes 73.8 73.0 Other long-term liabilities 5.8 1.0 Stockholders' equity: Preferred stock: $ 0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding — — Common stock: $ 0.01 par value, 800,000,000 shares authorized, 572,525,495 and 571,982,367 shares issued and outstanding, respectively 5.7 5.7 Additional paid-in capital 58.8 41.0 Retained earnings 3,431.4 3,356.9 Accumulated other comprehensive loss ( 66.7 ) ( 54.8 ) Total stockholders' equity 3,429.2 3,348.8 Total liabilities and stockholders' equity $ 4,532.7 4,462.9 See accompanying Notes to Condensed Consolidated Financial Statements. 1 Table of Contents FASTENAL COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Income (Amounts in millions except income per share) (Unaudited) Three Months Ended March 31, 2024 2023 Net sales $ 1,895.1 1,859.1 Cost of sales 1,033.5 1,009.1 Gross profit 861.6 850.0 Selling, general, and administrative expe

— MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is management's discussion and analysis of certain significant factors which have affected our financial position and operating results during the periods included in the accompanying condensed consolidated financial statements and should be read in conjunction with the condensed consolidated financial statements. Dollar amounts are stated in millions except for share and per share amounts and where otherwise noted. Throughout this document, percentage and dollar change calculations, which are based on non-rounded dollar values, may not be able to be recalculated using the dollar values in this document due to the rounding of those dollar values. References to daily sales rate (DSR) change may reflect either growth (positive) or contraction (negative) for the applicable period.

Business

Business Fastenal is a North American leader in the wholesale distribution of industrial and construction supplies. We distribute these supplies through a network of more than 3,400 in-market locations. Our largest end market is manufacturing. Sales to these customers includes products for both original equipment manufacturing (OEM), where our products are consumed in the final products of our customers, and manufacturing, repair, and operations (MRO), where our products are consumed to support the facilities and ongoing operations of our customers. We also service general and commercial contractors in non-residential end markets as well as farmers, truckers, railroads, oil exploration companies, oil production and refinement companies, mining companies, federal, state, and local governmental entities, schools, and certain retail trades. Geographically, our branches, Onsite locations, and customers are primarily located in North America, though we continue to grow our non-North American presence as well. Our motto is Growth Through Customer Service and our tagline is Where Industry Meets Innovation . We are a customer- and growth-centric organization focused on identifying unique technologies, capabilities, and supply chain solutions that get us closer to our customers and reduce the total cost of their global supply chain. We believe this close-to-the-customer, 'high-touch, high-tech' partnership approach is differentiated in the marketplace and allows us to gain market share in what remains a fragmented industrial distribution market. Executive Overview The following table presents a performance summary of our results of operations for the three-month periods ended March 31, 2024 and 2023 . Three-month Period 2024 2023 Change Net sales $ 1,895.1 1,859.1 1.9 % Business days 64 64 Daily sales $ 29.6 29.0 1.9 % Gross profit $ 861.6 850.0 1.4 % % of net sales 45.5 % 45.7 % Selling, general, and administrative expenses $ 471.4 456.8 3.2 % % of net sales 2