Fastenal Company Reports 2010 Third Quarter Earnings
The remaining costs within our operating and administrative expenses, in the third quarter of 2010, decreased 5.1% from the third quarter of 2009 and decreased 3.3% from the second quarter of 2010. Occupancy expenses increased 7.9% from the third quarter of 2009 and increased 4.5% from the second quarter of 2010. The annual and sequential changes in occupancy expense were driven by increases in (1) utilities, (2) taxes, and (3) our new Holo-Krome facilities as our rent paid increased by 2.3% and 0.4%, respectively. Net transportation costs included in operating and administrative expenses decreased 7.0% from the third quarter of 2009 and 8.8% from the second quarter of 2010.
The last several years have seen meaningful swings in the cost of diesel fuel and gasoline – During the first, second, and third quarters of 2010, our total vehicle fuel costs were approximately $6.4 million, $6.8 million, and $6.6 million, respectively. During the first, second, third, and fourth quarters of 2009, our total vehicle fuel costs were approximately $5.2 million, $5.7 million, $6.2 million, and $6.1 million, respectively. The changes resulted from variations in fuel costs, variations in the service levels provided to our stores from our distribution centers, and changes in the number of vehicles at our store locations. These fuel costs include the fuel utilized in our distribution vehicles (semi-tractors, straight trucks, and sprinter trucks) which is recorded in cost of goods and the fuel utilized in our store delivery vehicles which is included in operating and administrative expenses (the split in the last several years has been approximately 50:50 between distribution and store use).
The average per gallon fuel costs and the percentage change (on a year-over-year basis) for the last three years was as follows:
|Per gallon average price||1st||2nd||3rd||4th|
|2010 - Quarter|
|2009 - Quarter|
|2008 - Quarter|
|Per gallon price change||1st||2nd||3rd||4th|
|2010 - Quarter|
|2009 - Quarter|
Income taxes, as a percentage of earnings before income taxes, were approximately 38.1% for the first nine months of 2010 and 2009.WORKING CAPITAL: The year-over-year comparison and the related dollar and percentage changes related to accounts receivable and inventories were as follows:
|Balance at September 30,||Twelve Month Dollar Change||Twelve Month Percentage Change|
|Accounts receivable, net||$||301,721||239,323||309,184||62,398||(69,861)||26.1%||-22.6%|
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