Fastenal Company Reports 2013 Second Quarter Earnings

WINONA, Minn., July 10, 2013 (GLOBE NEWSWIRE) -- The Fastenal Company of Winona, MN (Nasdaq:FAST) reported the results of the quarter ended June 30, 2013. Except for per share information, or as otherwise noted below, dollar amounts are stated in thousands.

Net sales (and the related daily sales), pre-tax earnings, net earnings, and net earnings per share were as follows for the periods ended June 30:
  Six-month period Three-month period
  2013 2012 Change 2013 2012 Change
Net sales $1,653,922 1,573,765 5.1% $847,596 804,890 5.3%
Business days 127 128   64 64  
Daily sales $13,023 12,295 5.9% $13,244 12,576 5.3%
Pre-tax earnings $367,551 340,168 8.0% $192,379 179,039 7.5%
 % of sales 22.2% 21.6%   22.7% 22.2%  
Net earnings $230,057 212,500 8.3% $121,009 112,306 7.7%
Net earnings per share (basic) $0.78 0.72 8.3% $0.41 0.38 7.9%

On June 30, 2013, we had 2,677 stores. During the first six months of 2013, we opened 33 new stores, an increase of 1.2% since December 2012 (we increased our store count by 1.6% since June 30, 2012). On June 30, 2013, we operated 29,549 FAST Solutions SM (industrial vending) machines. During the first six months of 2013, we installed 8,454 new machines, an increase of 40.1% since December 2012 (we increased our machine count by 126.7% since June 30, 2012). On June 30, 2013, we had 15,760 employees, an increase of 4.1% since December 2012.

Similar to previous quarters, we have included comments regarding several aspects of our business:
  1. Monthly sales changes, sequential trends, and end market performance – a recap of our recent sales trends and some insight into the activities with different end markets.
  2. Growth drivers of our business – a recap of how we grow our business.
  3. Profit drivers of our business – a recap of how we increase our profits.
  4. Statement of earnings information – a recap of the components of our income statement.
  5. Operational working capital, balance sheet, and cash flow – a recap of the operational working capital utilized in our business, and the related cash flow.

While reading these items, it is helpful to appreciate several aspects of our marketplace: (1) it's big, the North American marketplace for industrial supplies is estimated to be in excess of $160 billion per year (and we have expanded beyond North America), (2) no company has a significant portion of this market, (3) many of the products we sell are individually inexpensive, (4) when our customer needs something quickly or unexpectedly our local store is a quick source, (5) the cost to manage and procure these products can be significant, and (6) the cost to move these products, many of which are bulky, can also be significant.

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