Table of Contents

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, 2019 , 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 CO MPANY

(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

Nasdaq

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 definition of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

ý

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 10, 2019, there were approximately 573,430,436 shares of the registrants common stock outstanding.

Table of Contents

FASTENAL COMPANY

INDEX

Page No.

Part I Financial Information:

Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018

1

Condensed Consolidated Statements of Earnings for the six months and three months ended June 30, 2019 and 2018

2

Condensed Consolidated Statements of Comprehensive Income for the six months and three months ended June 30, 2019 and 2018

3

Condensed Consolidated Statements of Stockholders' Equity for the six months and three months ended June 30, 2019 and 2018

4

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018

5

Notes to Condensed Consolidated Financial Statements

6

Management's Discussion and Analysis of Financial Condition and Results of Operations

13

Quantitative and Qualitative Disclosures About Market Risks

19

Controls and Procedures

20

Part II Other Information:

Legal Proceedings

21

Risk Factors

21

Unregistered Sales of Equity Securities and Use of Proceeds

21

Exhibits

21

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,

December 31,

2019

2018

Current assets:

Cash and cash equivalents

$

175.0

167.2

Trade accounts receivable, net of allowance for doubtful accounts of $11.4 and $12.8, respectively

819.8

714.3

Inventories

1,345.7

1,278.7

Prepaid income taxes

4.0

9.0

Other current assets

123.8

147.0

Total current assets

2,468.3

2,316.2

Property and equipment, net

975.1

924.8

Operating lease right-of-use assets

234.5

-

Other assets

78.5

80.5

Total assets

$

3,756.4

3,321.5

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of debt

$

3.0

3.0

Accounts payable

203.8

193.6

Accrued expenses

226.0

240.8

Current portion of operating lease liabilities

95.1

-

Total current liabilities

527.9

437.4

Long-term debt

497.0

497.0

Operating lease liabilities

141.1

-

Deferred income taxes

86.7

84.4

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, 573,396,959 and 571,803,838 shares issued and

2.9

2.9

outstanding, respectively

Additional paid-in capital

46.0

3.0

Retained earnings

2,494.2

2,341.6

Accumulated other comprehensive loss

(39.4)

(44.8)

Total stockholders' equity

2,503.7

2,302.7

Total liabilities and stockholders' equity

$

3,756.4

3,321.5

See accompanying Notes to Condensed Consolidated Financial Statements.

1

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,

2019

2018

2019

2018

Net sales

$

2,677.7

2,453.7

$

1,368.4

1,267.9

Cost of sales

1,411.8

1,258.4

727.2

650.2

Gross profit

1,265.9

1,195.3

641.2

617.7

Operating and administrative expenses

730.3

692.0

366.7

349.3

Gain on sale of property and equipment

(0.8)

(0.2)

(0.5)

(0.6)

Operating income

536.4

503.5

275.0

269.0

Interest income

0.2

0.2

0.1

0.1

Interest expense

(7.7)

(5.9)

(3.7)

(3.2)

Earnings before income taxes

528.9

497.8

271.4

265.9

Income tax expense

130.2

112.3

66.8

54.7

Net earnings

$

398.7

385.5

$

204.6

211.2

Basic net earnings per share

$

0.70

0.67

$

0.36

0.37

Diluted net earnings per share

$

0.69

0.67

$

0.36

0.37

Basic weighted average shares outstanding

572.7

574.8

573.2

574.3

Diluted weighted average shares outstanding

573.8

575.1

574.6

574.5

See accompanying Notes to Condensed Consolidated Financial Statements.

2

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,

2019

2018

2019

2018

Net earnings

$

398.7

385.5

$

204.6

211.2

Other comprehensive income (loss), net of tax:

Foreign currency translation adjustments (net of tax of $0.0 in 2019 and 2018)

5.4

(10.8)

1.7

(12.8)

Comprehensive income

$

404.1

374.7

$

206.3

198.4

See accompanying Notes to Condensed Consolidated Financial Statements.

3

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Fastenal Company published this content on 16 July 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2019 15:54:03 UTC