Fastenal Company (FAST) has reported a 6.34 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $134.20 million, or $0.46 a share in the quarter, compared with $126.20 million, or $0.44 a share for the same period last year.
Revenue during the quarter grew 6.18 percent to $1,047.70 million from $986.70 million in the previous year period. Gross margin for the quarter contracted 37 basis points over the previous year period to 49.44 percent. Total expenses were 79.72 percent of quarterly revenues, up from 79.61 percent for the same period last year. That has resulted in a contraction of 11 basis points in operating margin to 20.28 percent.
Operating income for the quarter was $212.50 million, compared with $201.20 million in the previous year period.
"We are pleased with the improving pace of business growth in the first quarter of 2017," said Dan Florness, president and chief executive officer. "This is a welcome sign of improving customer business activity and of the traction we are gaining in our growth drivers. Thank you to our customers for their belief in Fastenal. Go Blue Team!"
Operating cash flow improves significantly
Fastenal Company has generated cash of $210.40 million from operating activities during the quarter, up 26.37 percent or $43.90 million, when compared with the last year period.
The company has spent $75.10 million cash to meet investing activities during the quarter as against cash outgo of $28.90 million in the last year period. It has incurred net capital expenditure of $19.10 million on net basis during the quarter, down 33.68 percent or $9.70 million from year ago period.
The company has spent $114.70 million cash to carry out financing activities during the quarter as against cash outgo of $120.50 million in the last year period.
Cash and cash equivalents stood at $134.30 million as on Mar. 31, 2017, down 10.79 percent or $16.25 million from $150.55 million on Mar. 31, 2016.
Working capital increases
Fastenal Company has recorded an increase in the working capital over the last year. It stood at $1,441.10 million as at Mar. 31, 2017, up 5.54 percent or $75.59 million from $1,365.51 million on Mar. 31, 2016. Current ratio was at 4.90 as on Mar. 31, 2017, up from 4.40 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 109 days for the quarter from 193 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 86 days for the quarter compared with 173 days for the previous year period. At the same time, days payable outstanding went down to 22 days for the quarter from 26 for the same period last year.
Debt comes down marginally
Fastenal Company has recorded a decline in total debt over the last one year. It stood at $365 million as on Mar. 31, 2017, down 1.35 percent or $5 million from $370 million on Mar. 31, 2016. Total debt was 13.10 percent of total assets as on Mar. 31, 2017, compared with 14 percent on Mar. 31, 2016. Debt to equity ratio was at 0.18 as on Mar. 31, 2017, down from 0.20 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 125 for the quarter from 143.71 for the same period last year.
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