-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, cnWU3L+Ua1ghAbbmUXIE7DSAoUHBvn6bUub/iNJFeVouTikBn+nfZ7hVoa0IWORy txS81E3EnPacurTiNROvSw== 0000950131-95-001129.txt : 19950505 0000950131-95-001129.hdr.sgml : 19950505 ACCESSION NUMBER: 0000950131-95-001129 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950504 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FASTENAL COMPANY CENTRAL INDEX KEY: 0000815556 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY [5200] IRS NUMBER: 410948415 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16125 FILM NUMBER: 95534462 BUSINESS ADDRESS: STREET 1: 2001 THEURER BLVD CITY: WINONA STATE: MN ZIP: 55987 BUSINESS PHONE: 5074545374 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 1995 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 (I.R.S. Employer incorporation or organization) Identification No.) 2001 Theurer Blvd., Winona MN 55987 - ---------------------------------------- ------------------------- (Address of principal executive offices) (Zip Code) (507) 454-5374 - ------------------------------------------------------------------------------ (Registrant's telephone number, including area code) - ------------------------------------------------------------------------------ (Former name, former address and former fiscal year, if changed since last report) 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 X No ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date. Class Outstanding at April 18, 1995 - -------------------- --------------------------------- Common stock, $.01 par value 37,938,688 FASTENAL COMPANY INDEX
Page No. -------- Part I Financial Information Consolidated Balance Sheets -- March 31, 1995 and December 31, 1994 1 Consolidated Statements of Earnings -- three months ended March 31, 1995 and 1994 2 Consolidated Statements of Cash Flows -- three months ended March 31, 1995 and 1994 3 Notes to financial statements 4 Management's discussion and analysis of financial condition and results of operations 5 Part II Other Information Item 6 Exhibits and reports on Form 8-K 6
PART I - FINANCIAL STATEMENTS ITEM 1. FINANCIAL STATEMENTS FASTENAL COMPANY AND SUBSIDIARY Consolidated Balance Sheets
(Unaudited) * March 31, December 31, Assets 1995 1994 - ------------------------------------------------------------------------------------------- Current assets: Cash and cash equivalents $ 1,101,000 3,133,000 Trade accounts receivable, net of allowance for doubtful accounts of $340,000 and $300,000 as of March 31, 1995 and December 31, 1994, respectively 27,595,000 23,606,000 Inventories 35,574,000 30,911,000 Deferred income tax benefit 729,000 729,000 Other current assets 1,014,000 1,108,000 - -------------------------------------------------------------- ----------- ---------- Total current assets 66,013,000 59,487,000 Marketable securities 2,837,000 5,026,000 Property and equipment, less accumulated depreciation 20,369,000 16,988,000 Other assets, net 308,000 294,000 - -------------------------------------------------------------- ----------- ---------- Total assets $89,527,000 81,795,000 - -------------------------------------------------------------- ----------- ---------- Liabilities and Stockholders' Equity - -------------------------------------------------------------- Current liabilities: Accounts payable $ 7,361,000 7,814,000 Accrued expenses 5,071,000 4,146,000 Income taxes payable 4,123,000 2,186,000 - -------------------------------------------------------------- ----------- ---------- Total current liabilities 16,555,000 14,146,000 - -------------------------------------------------------------- ----------- ---------- Stockholders' equity: Preferred stock of $.01 par value per share. Authorized 5,000,000 shares; none issued 0 0 Common stock of $.01 par value per share. Authorized 50,000,000 shares; issued and outstanding 37,938,688 shares 379,000 379,000 Additional paid-in capital 4,424,000 4,424,000 Retained earnings 68,239,000 62,914,000 Translation loss (13,000) (11,000) Unrealized holding losses on marketable securities (57,000) (57,000) - -------------------------------------------------------------- ----------- ---------- Total stockholders' equity 72,972,000 67,649,000 - -------------------------------------------------------------- ----------- ---------- Total liabilities and stockholders' equity $89,527,000 81,795,000 - -------------------------------------------------------------- ----------- ----------
The accompanying notes are an integral part of the financial statements. *From audited financial statements. - 1 -
FASTENAL COMPANY AND SUBSIDIARY Consolidated Statements of Earnings For the three months ended March 31, 1995 and 1994 (Unaudited) 1995 1994 - ------------------------------------------------------------------------------- Net sales $51,091,000 33,982,000 Cost of sales 24,036,000 16,003,000 - ------------------------------------------------------ ----------- ---------- Gross profit 27,055,000 17,979,000 Operating and administrative expenses 17,192,000 12,261,000 - ------------------------------------------------------ ----------- ---------- Operating income 9,863,000 5,718,000 Other income: Interest income 68,000 42,000 Gain on disposal of property and equipment 313,000 9,000 - ------------------------------------------------------ ----------- ---------- Total other income 381,000 51,000 - ------------------------------------------------------ ----------- ---------- Earnings before income taxes 10,244,000 5,769,000 Income tax expense 4,160,000 2,335,000 - ------------------------------------------------------ ----------- ---------- Net earnings $ 6,084,000 3,434,000 - ------------------------------------------------------ ----------- ---------- Earnings per share $ .16 .09 - ------------------------------------------------------ ----------- ---------- Weighted average shares outstanding 37,938,688 37,938,688 - ------------------------------------------------------ ----------- ----------
The accompanying notes are an integral part of the financial statements. - 2 - FASTENAL COMPANY AND SUBSIDIARY Consolidated Statements of Cash Flows For the three months ended March 31, 1995 and 1994 (Unaudited)
1995 1994 ------------ ----------- Cash flows from operating activities: Net earnings $ 6,084,000 3,434,000 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation of property and equipment 1,300,000 725,000 Gain on disposal of property and equipment (313,000) (9,000) Changes in operating assets and liabilities: Trade accounts receivable (3,989,000) (2,564,000) Inventories (4,663,000) (416,000) Other current assets 94,000 7,000 Accounts payable (453,000) (293,000) Accrued expenses 925,000 827,000 Income taxes payable 1,937,000 1,504,000 - -------------------------------------------------------- ----------- ---------- Net cash provided by operating activities 922,000 3,215,000 - -------------------------------------------------------- ----------- ---------- Cash flows from investing activities: Purchases of marketable securities - (92,000) Sale of marketable securities 2,189,000 218,000 Additions of property and equipment, net (4,864,000) (1,305,000) Proceeds from sale of property and equipment 496,000 36,000 Translation adjustment (2,000) - Decrease (increase) in other assets (14,000) 35,000 - -------------------------------------------------------- ----------- ---------- Net cash used in investing activities (2,195,000) (1,108,000) - -------------------------------------------------------- ----------- ---------- Cash flows from financing activities: Payment of dividends (759,000) (759,000) - -------------------------------------------------------- ----------- ---------- Net cash used in financing activities (759,000) (759,000) - -------------------------------------------------------- ----------- ---------- Net increase (decrease) in cash and cash equivalents (2,032,000) 1,348,000 Cash and cash equivalents at beginning of period 3,133,000 1,976,000 - -------------------------------------------------------- ----------- ---------- Cash and cash equivalents at end of period $ 1,101,000 3,324,000 - -------------------------------------------------------- ----------- ---------- Supplemental disclosure of cash flow information: Cash paid during each period for: Income taxes $ 2,223,000 831,000 - -------------------------------------------------------- ----------- ----------
The accompanying notes are an integral part of the financial statements. -3- FASTENAL COMPANY AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS March 31, 1995 and 1994 (Unaudited) (1) Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. They do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. However, there has been no material change in the information disclosed in the notes to financial statements included in the Company's financial statements as of and for the year ended December 31, 1994. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. (2) Seasonal Nature of Business The Company's product sales are generally greater in the second and third quarters of the year due to seasonal factors affecting the construction industry. - 4 - ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is management's discussion and analysis of certain significant factors which have affected the Company's financial position and operating results during the periods included in the accompanying financial statements. First quarter 1995 vs. 1994 --------------------------- Net sales for the three months ended March 31, 1995 increased 50.3% to $51,091,000 versus the $33,982,000 recorded during the comparable 1994 period. The increase came primarily from higher unit sales rather than from price increases. Price increases caused about a 4% increase in net sales, with the remaining increase coming from higher unit sales. Higher unit sales came from increases in same store sales, and from the addition of new stores. Stores opened in 1993 or earlier had average sales increases of 38.8%. The remainder of the 50.3% sales growth came from stores opened in 1994 and during the first three months of 1995. Seventy-two new stores were added from April, 1994 through March, 1995. Sixty of the added stores were Fastenal stores, ten of the added stores were FastTool stores and two of the added stores were combined stores in communities smaller than the size considered necessary for individual stores. The Company started its first FastTool store in April of 1993. FastTool stores are located adjacent to existing Fastenal stores, and sell power and hand tools and safety supplies to the same customer base. Net earnings for the first three months grew from $3,434,000 in 1994 to $6,084,000 in 1995, an increase of 77.2%. Net earnings increased at a faster rate than net sales because gross profits increased 50.5% (commensurate with the increase in net sales), while the operating and administrative expenses increased only 40.2%. The Company's fixed costs increase at a rate similar to the rate of increase in the number of stores. The 72 stores added since March 31, 1994 represent a 26% increase in the number of stores since the end of the first quarter of 1994. Except for productivity gains, the Company's variable costs such as distribution costs and commissions increase at a rate similar to either the rate of unit sales growth or the rate of dollar sales growth. Liquidity and Capital Resources ------------------------------- The higher level of sales during the period resulted in the growth of trade accounts receivable. Property and equipment increased because of the completion of the Company's new distribution building in Dallas, Texas, and expenditures for additional data processing equipment, machinery and trucks. Inventories increased to support the higher sales level. Cash requirements for these asset changes were satisfied primarily from net earnings and depreciation on plant and equipment. Cash and cash equivalents at the end of the period are believed sufficient to finance the Company's current expansion plans. - 5 - PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits: 4.1 Restated Articles of Incorporation of the Company, as amended (incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 1993). 4.2 Restated By-Laws of the Company (incorporated by reference to Exhibit 3.2 to Registration Statement No. 33 - 14293). (b) No reports on Form 8-K have been filed during the quarter ended March 31, 1995. - 6 - SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FASTENAL COMPANY ____________________________________ (Robert A. Kierlin, President) (Duly Authorized Officer) Date ____________________ ____________________________________ (Stephen M. Slaggie, Treasurer) (Principal Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----