fast-20210630

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, 2021, 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, 2021, there were approximately 574,739,393 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 RISKS	22

ITEM 4.	CONTROLS AND PROCEDURES	22

PART II	OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	23

ITEM 1A.	RISK FACTORS	23

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	23

ITEM 6.	EXHIBITS	23

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, 2021		December 31, 2020
Current assets:
Cash and cash equivalents	$	321.8	245.7
Trade accounts receivable, net of allowance for credit losses of $11.1 and $12.3, respectively	908.9		769.4
Inventories	1,327.9		1,337.5
Prepaid income taxes	—		6.7
Other current assets	146.7		140.3
Total current assets	2,705.3		2,499.6

Property and equipment, net	1,015.8		1,030.7
Operating lease right-of-use assets	259.6		243.0
Other assets	185.9		191.4

Total assets	$	4,166.6	3,964.7

Liabilities and Stockholders' Equity
Current liabilities:
Current portion of debt	$	40.0	40.0
Accounts payable	236.1		207.0
Accrued expenses	277.9		272.1
Current portion of operating lease liabilities	94.8		93.6
Income taxes payable	1.4		—
Total current liabilities	650.2		612.7

Long-term debt	365.0		365.0
Operating lease liabilities	167.6		151.5
Deferred income taxes	103.0		102.3

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, 574,704,880 and 574,159,575 shares issued and outstanding, respectively	2.9		2.9
Additional paid-in capital	78.4		61.9
Retained earnings	2,818.3		2,689.6
Accumulated other comprehensive loss	(18.8)		(21.2)
Total stockholders' equity	2,880.8		2,733.2
Total liabilities and stockholders' equity	$	4,166.6	3,964.7

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,
	2021		2020	2021		2020
Net sales	$	2,924.7	2,876.0	$	1,507.7	1,509.0

Cost of sales	1,580.6		1,567.6	807.0		837.4
Gross profit	1,344.1		1,308.4	700.7		671.6

Operating and administrative expenses	746.0		721.1	382.9		355.6
Operating income	598.1		587.3	317.8		316.0

Interest income	0.0		0.2	0.0		0.1
Interest expense	(5.0)		(4.6)	(2.6)		(2.4)

Earnings before income taxes	593.1		582.9	315.2		313.7

Income tax expense	142.8		141.4	75.5		74.8

Net earnings	$	450.3	441.5	$	239.7	238.9

Basic net earnings per share	$	0.78	0.77	$	0.42	0.42

Diluted net earnings per share	$	0.78	0.77	$	0.42	0.42

Basic weighted average shares outstanding	574.5		573.6	574.6		573.2

Diluted weighted average shares outstanding	576.8		575.1	577.0		575.0

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,
	2021		2020	2021		2020
Net earnings	$	450.3	441.5	$	239.7	238.9
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments (net of tax of $0.0 in 2021 and 2020)	2.4		(14.5)	6.8		10.5
Comprehensive income	$	452.7	427.0	$	246.5	249.4

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

FASTENAL COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders' Equity

(Amounts in millions except per share information)


	(Unaudited)			(Unaudited)
	Six Months Ended June 30,			Three Months Ended June 30,
	2021		2020	2021		2020
Common stock
Balance at beginning of period	$	2.9	2.9	$	2.9	2.9
Balance at end of period	2.9		2.9	2.9		2.9
Additional paid-in capital
Balance at beginning of period	61.9		67.2	70.0		24.2
Stock options exercised	13.6		26.3	7.0		18.9
Purchases of common stock	—		(52.0)	—		—
Stock-based compensation	2.9		2.9	1.4		1.3
Balance at end of period	78.4		44.4	78.4		44.4
Retained earnings
Balance at beginning of period	2,689.6		2,633.9	2,739.4		2,692.9
Net earnings	450.3		441.5	239.7		238.9
Dividends paid in cash	(321.6)		(286.8)	(160.8)		(143.2)
Balance at end of period	2,818.3		2,788.6

SEC Form 10-Q filed by Fastenal Company