The decline in operating cash flow for FY 2024 was driven by several factors. **Inventory investments** turned from a previous source of cash into a significant use of cash. **Changes in operating assets and liabilities** also played a role, as elements such as **accounts receivable** and **accounts payable** impacted the cash conversion rate—with accounts receivable increasing by **$21.0 million** and accounts payable by **$23.6 million**, though the latter increase couldn’t fully offset the cash used for inventory.  **[0000815556-25-000065_fast-20241231.htm:75]** **[0000815556-25-000048_ex_99112312024earningsrele.htm:6]**  Additionally, **sales growth and a shift in customer mix** led to longer payment terms and further delayed cash collections.  **[0000815556-24-000037_fast-20240930.htm:21]** **[0000815556-25-000065_fast-20241231.htm:86]** 

What drove the decline in operating cash flow for FY 2024?

In Q3 2024, **operating cash flow was lower** because working capital adjustments reduced the cash generated from operations. **Inventory shifted** from being a source of cash in Q3 2023 to a **use of cash** in Q3 2024, with about **$25 million** in new inventory added to improve service levels and efficiencies. Additionally, **accounts receivable increased by 2.5% (approximately $29.7 million)** due to sales growth and the shift toward larger customers with longer payment terms, while **accounts payable increased by 9.6% (around $26.5 million)**, reflecting higher product purchases to support inventory additions. These factors collectively resulted in a **23.5% decrease** in net cash provided by operating activities in Q3 2024.  **[0000815556-24-000037_fast-20240930.htm:21]** **[0000815556-24-000035_ex_99109302024earningsrele.htm:6]** **[0000815556-24-000037_fast-20240930.htm:3]** 

Why was operating cash flow lower in Q3 2024?

The higher capital expenditure in Q3 2024 was primarily driven by **increased spending on FMI hardware**, which was fueled by strong signings and installations of higher-end, higher-cost vending devices, and **enhanced investments in facility construction and upgrades** aimed at expanding the company’s infrastructure and operational capabilities.  **[0000815556-24-000035_ex_99109302024earningsrele.htm:7]** 

What factors contributed to the higher capital expenditure in Q3 2024?

82186fea0b82c3c0a2e64efdb4c248639c0ffef6e3e36fcd158bd0d2ed699e61

Net sales rose in Q2 2024 primarily due to **higher unit sales** driven by increased business from larger customers and new Onsite locations opened over the past two years. Additionally, there was a **decline in the impact of product pricing** compared to the previous year—stemming from lower fastener pricing influenced by reduced transportation costs and lower prices in specific product categories—which contributed to the net sales increase. Finally, while **foreign exchange rates** continued to have a negative impact, this impact was less severe in Q2 2024 compared to Q2 2023, further supporting the rise in net sales.  **[0000815556-24-000028_ex_99106302024earningsrele.htm:1]** **[0000815556-24-000031_fast-20240630.htm:13]** 

Why did net sales rise in Q2 2024?

The lower operating income in Q4 2024 was driven by **three main factors**. First, the **gross margin declined from 45.5% to 44.8%** due to an unfavorable mix of customers and products, with larger customers and non-fastener products diluting margins, along with pressures from higher freight and shipping costs and increased import duty fees, particularly in relation to Mexico.  **[0000815556-25-000048_ex_99112312024earningsrele.htm:5]**  Second, there was an **increase in SG&A expenses**, which rose from 25.3% of net sales in Q4 2023 to 25.9% in Q4 2024. This uptick was driven by seasonally low sales, soft business activity, production cuts due to holiday-related plant shutdowns, and increased investments in onsite staffing, technology, and sales travel.  **[0000815556-25-000048_ex_99112312024earningsrele.htm:5]**  Finally, the company experienced **lower sales growth**, where net sales growth was 3.7% and daily sales growth was only 2.1%, reflecting a softer manufacturing environment and sharp production cuts in December 2024.  **[0000815556-25-000048_ex_99112312024earningsrele.htm:5]** **[0000815556-25-000048_ex_99112312024earningsrele.htm:1]** 

What factors contributed to the lower operating income in Q4 2024?

f7e94961cf5a33485baac4f34b2bb92c781229e9eb399a9123c8ef4e4e218376

Cash and cash equivalents peaked in Q2 2022 because the company recorded a **net increase of $13.7 million** during the quarter, driven primarily by strong operating cash flows that contributed **$151.2 million** despite supply chain constraints, strong sales growth, and inflation-related working capital increases. This favorable operating performance, although partially offset by **$43.9 million** of investing outflows, **$85.9 million** in financing activities (net dividend and share buyback outflows, offset by debt proceeds), and a **$7.7 million negative exchange rate impact**, resulted in a consolidated balance of **$247.9 million** at the end of Q2 2022.  **[FAST_516798_5]** **[0000815556-22-000034_fast-20220630.htm:3]** 

Why did cash and cash equivalents peak in Q2 2022?

The documents only provide details explaining the increase in total assets during Q3 2022. **There is no information in the documents that explains the drop in total assets after Q3 2022**.  **[0000815556-22-000041_fast-20220930.htm:1]** 

What factors contributed to the drop in total assets after Q3 2022?

The significant increase in long-term debt in Q3 2022 was primarily due to **increased borrowings under Fastenal's unsecured revolving credit facility**, where the outstanding balance grew from **$25.0 million** at the end of 2021 to **$225.0 million** by the end of Q3 2022, contributing to the rise in total long-term debt from **$330.0 million** to **$404.7 million**.  **[0000815556-22-000041_fast-20220930.htm:1]** **[0000815556-22-000041_fast-20220930.htm:8]** 

Why was long-term debt significantly higher in Q3 2022?

The spike in the current portion of debt in Q4 2022 was primarily driven by the **maturity schedule of the company’s debt obligations**. Specifically, the **Senior Unsecured Promissory Notes, Series F** with a balance of **$70.0 million**, which was due to mature in **June 2023**, was reclassified from long-term to current debt. Additionally, the balance of the **unsecured revolving credit facility** contributed to the increase in current debt.  **[0000815556-23-000002_ex_99112312022earningsrele.htm:11]** **[0000815556-23-000009_fast-20221231.htm:90]** **[0000815556-23-000009_fast-20221231.htm:104]** 

What drove the spike in the current portion of debt in Q4 2022?

d44c80285cd4c5d1d040764242be3906e1872fde5a7bab22c7c66293b65d102f

Cash and cash equivalents (USD, millions)

Trade accounts receivable, net of allowance for credit losses (USD, millions)

Inventories (USD, millions)

Prepaid income taxes (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Property and equipment, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Current portion of debt (USD, millions)

Accounts payable (USD, millions)

Accrued expenses (USD, millions)

Current portion of operating lease liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Operating lease liabilities (USD, millions)

Deferred income taxes (USD, millions)

Other long-term liabilities (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total stockholders' equity (USD, millions)

Total liabilities and stockholders' equity (USD, millions)

Income taxes payable (USD, millions)

ec2d0b25791dfcd3a98a3cbef5f69809ad36fb363a938a1c664f3ab956915e94

Net Income [USD, millions]

Depreciation of Property and Equipment [USD, millions]

(Gain) loss on Sale of Property and Equipment [USD, millions]

Bad Debt Expense (Recoveries) [USD, millions]

Deferred Income Taxes [USD, millions]

Stock-based Compensation [USD, millions]

Amortization of Intangible Assets [USD, millions]

Income Taxes [USD, millions]

Other, Operating Activities [USD, millions]

Net Cash Provided by Operating Activities [USD, millions]

Purchases of Property and Equipment [USD, millions]

Proceeds from Sale of Property and Equipment [USD, millions]

Other, Investing Activities [USD, millions]

Net Cash Used in Investing Activities [USD, millions]

Proceeds from Debt Obligations [USD, millions]

Payments Against Debt Obligations [USD, millions]

Proceeds from Exercise of Stock Options [USD, millions]

Cash Dividends Paid [USD, millions]

Net Cash Used in Financing Activities [USD, millions]

Effect of Exchange Rate Changes on Cash and Cash Equivalents [USD, millions]

Net Increase (Decrease) in Cash and Cash Equivalents [USD, millions]

Cash Paid for Interest [USD, millions]

Net Cash Paid for Income Taxes [USD, millions]

Trade Accounts Receivable [USD, millions]

Inventories [USD, millions]

Other Current Assets [USD, millions]

Accounts Payable [USD, millions]

Accrued Expenses [USD, millions]

Cash and Cash Equivalents at Beginning of Year/Period [USD, millions]

Cash and Cash Equivalents at End of Year/Period [USD, millions]

1ec95d91e512a7b356bac11fadb04b64fe640f36d5a05ccc90f8ed2a72aa22e8

Net sales (USD, millions)

Cost of sales (USD, millions)

Gross profit (USD, millions)

Selling, general, and administrative expenses (USD, millions)

Operating income (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Income before income taxes (USD, millions)

Income tax expense (USD, millions)

Net income (USD, millions)

Basic net income per share (USD)

Diluted net income per share (USD)

Basic weighted average shares outstanding

Diluted weighted average shares outstanding

1423188a29069bc4e5d688d8d145f769cff6404e9f06a4700c2903d68ed50906

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

1b4bb294f76f30e93d971b9cfefd11369eb17f3961727adb9bbbfc5ba0d43f0d

9b369d07d05a0e910c15146cbe49681c6f82eb5c8d6d47476101d4c088362986

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

3a64827c617237b23f3e41c6d75b645f887426fc54deddff1c7bccc76f8e3735

Selling personnel - absolute employee headcount (employees)

Selling personnel - FTE employee headcount (employees)

Total personnel - absolute employee headcount (employees)

Total personnel - FTE employee headcount (employees)

Number of branch locations (locations)

Number of active Onsite locations (locations)

Number of in-market locations (locations)

Weighted FMI devices (MEUs)

Branch openings (locations)

Branch closures, net of conversions (locations)

Onsite activations (locations)

Onsite closures, net of conversions (locations)

Weighted FASTBin/FASTVend signings (MEUs)

Signings per day (signings per day)

Weighted FASTBin/FASTVend installations (MEUs)

b94cbb67fc82a75197293aebf688ce492492a18c0e97f9f6196bc6c01c6edc54

United States

Canada and Mexico

Canada

Other foreign countries

North America Total

All other foreign countries

Total Revenue

0c6364b26cc7f163132702f5d6d6daf49902498dfa6a8d2320940c76c346304f

ffe7350a7a2806a74744fda53f9ced216e13748480def65d2e862c498946c66d

FASTENAL (FAST)

Financials