fast-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022, or


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number 0-16125

FASTENAL COMPANY

(Exact name of registrant as specified in its charter)


Minnesota						41-0948415
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


2001 Theurer Boulevard, Winona, Minnesota						55987-1500
(Address of principal executive offices)						(Zip Code)


			(507) 454-5374
			(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $.01 per share	FAST	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ý No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

As of July 12, 2022, there were approximately 574,678,797 shares of the registrant's common stock outstanding.

Table of Contents

FASTENAL COMPANY

INDEX


		Page
PART I	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS

	Condensed Consolidated Balance Sheets	1

	Condensed Consolidated Statements of Earnings	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	12

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	24

ITEM 4.	CONTROLS AND PROCEDURES	25

PART II	OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	26

ITEM 1A.	RISK FACTORS	26

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	26

ITEM 6.	EXHIBITS	26

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

FASTENAL COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Amounts in millions except share information)


	(Unaudited)
Assets	June 30, 2022		December 31, 2021
Current assets:
Cash and cash equivalents	$	247.9	236.2
Trade accounts receivable, net of allowance for credit losses of $11.1 and $12.0, respectively	1,103.9		900.2
Inventories	1,665.2		1,523.6
Prepaid income taxes	6.5		8.5
Other current assets	129.2		188.1
Total current assets	3,152.7		2,856.6

Property and equipment, net	1,008.7		1,019.2
Operating lease right-of-use assets	254.8		242.3
Other assets	176.1		180.9

Total assets	$	4,592.3	4,299.0

Liabilities and Stockholders' Equity
Current liabilities:
Current portion of debt	$	195.0	60.0
Accounts payable	291.8		233.1
Accrued expenses	268.7		298.3
Current portion of operating lease liabilities	93.5		90.8
Total current liabilities	849.0		682.2

Long-term debt	310.0		330.0
Operating lease liabilities	165.5		156.0
Deferred income taxes	89.1		88.6

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, 574,676,079 and 575,464,682 shares issued and outstanding, respectively	5.8		5.8
Additional paid-in capital	55.7		96.2
Retained earnings	3,171.6		2,970.9
Accumulated other comprehensive loss	(54.4)		(30.7)
Total stockholders' equity	3,178.7		3,042.2
Total liabilities and stockholders' equity	$	4,592.3	4,299.0

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

FASTENAL COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Amounts in millions except earnings per share)


	(Unaudited)			(Unaudited)
	Six Months Ended June 30,			Three Months Ended June 30,
	2022		2021	2022		2021
Net sales	$	3,482.6	2,924.7	$	1,778.6	1,507.7

Cost of sales	1,861.7		1,580.6	951.0		807.0
Gross profit	1,620.9		1,344.1	827.6		700.7

Operating and administrative expenses	879.5		746.0	444.2		382.9
Operating income	741.4		598.1	383.4		317.8

Interest income	0.1		0.0	0.1		0.0
Interest expense	(5.0)		(5.0)	(2.8)		(2.6)

Earnings before income taxes	736.5		593.1	380.7		315.2

Income tax expense	179.8		142.8	93.6		75.5

Net earnings	$	556.7	450.3	$	287.1	239.7

Basic net earnings per share	$	0.97	0.78	$	0.50	0.42

Diluted net earnings per share	$	0.96	0.78	$	0.50	0.42

Basic weighted average shares outstanding	575.5		574.5	575.5		574.6

Diluted weighted average shares outstanding	577.5		576.8	577.4		577.0

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

FASTENAL COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Amounts in millions)


	(Unaudited)			(Unaudited)
	Six Months Ended June 30,			Three Months Ended June 30,
	2022		2021	2022		2021
Net earnings	$	556.7	450.3	$	287.1	239.7
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments (net of tax of $

SEC Form 10-Q filed by Fastenal Company