April 12, 2012
Fastenal Company Reports 2012 First Quarter Earnings
WINONA, Minn., April 12, 2012 (GLOBE NEWSWIRE) -- The Fastenal Company of Winona, MN (Nasdaq:FAST) reported the results of the quarter ended March 31, 2012. Except for per share information, or as otherwise noted below, dollar amounts are stated in thousands. Share and per share information in this document has been adjusted to give effect to the two-for-one split of our common stock in May 2011.
Net sales, pre-tax earnings, net earnings, and net earnings per share were as follows for the three month periods ended March 31:
% of sales
Net earnings per share (basic)
On March 31, 2012, we had 2,611 stores. During the first three months of 2012, we opened 28 new stores, an increase of 1.1% since December 31, 2011 (we opened 37 new stores in the same period of 2011). On March 31, 2012, we had 15,483 employees, an increase of 2.1% since December 31, 2011.
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, and (5) the cost to manage and procure these products can be significant.
Our motto is Growth through Customer Service. This is important given the points noted above. We believe in efficient markets — to us, this means we can grow our market share if we provide the greatest value to the customer. We believe our ability to grow is amplified if we can service our customer at the closest economic point of contact.
The concept of growth is simple, find more customers every day and increase your activity with them. However, execution is hard work. First, we recruit service minded individuals to support our customers and their business. Second, we operate in a decentralized fashion to help identify the greatest value for our customers. Third, we build a great machine behind the store to operate efficiently and to help identify new business solutions. Fourth, we do these things every day. Finally, we strive to generate strong profits; these profits produce the cash flow necessary to fund the growth and to support the needs of our customers.
MONTHLY SALES CHANGES, SEQUENTIAL TRENDS, AND END MARKET PERFORMANCE
Note — Daily sales are defined as the sales for the period divided by the number of business days in the period.
This section focuses on three distinct views of our business — monthly sales changes, sequential trends, and end market performance. The first discussion regarding monthly sales changes provides a good mechanical view of our business based on the age of our stores. The second discussion provides a framework for understanding the sequential trends (that is, comparing a period to the immediately preceding period) in our business. Finally, we believe the third discussion regarding end market performance provides insight into activities with our various types of customers.
MONTHLY SALES CHANGES:
All company sales — During the months in 2012, 2011, and 2010, all of our selling locations, when combined, had daily sales growth rates of (compared to the comparable month in the preceding year):
Apr 12, 2012
2012 Q1 Supplemental Information