Fastenal Company (FAST) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 13, 2022 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Fastenal 2022 Third Quarter Earnings Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded.

I would now like to turn the call over to Taylor Ranta of Fastenal Company. Thank you. You may begin.

Taylor Ranta - Financial Reporting and Regulatory Compliance Accountant

Welcome to the Fastenal Company 2022 third quarter earnings conference call. This call will be hosted by Dan Florness, our President and Chief Executive Officer; and Holden Lewis, our Chief Financial Officer.

The call will last for up to one hour and we will start with a general overview of our quarterly results and operations, with the remainder of the time being open for questions-and-answers. Today’s conference call is a proprietary Fastenal presentation and is being recorded by Fastenal. No recording, reproduction, transmission or distribution of today’s call is permitted without Fastenal’s consent.

This call is being audio simulcast on the Internet via the Fastenal Investor Relations homepage investor.fastenal.com. A replay of the webcast will be available on the website until December 1, 2022 at midnight Central Time.

As a reminder, today’s conference call may include statements regarding the company’s future plans and prospects. These statements are based on our current expectations and we undertake no duty to update them.

It is important to note that the company’s actual results may differ materially from those anticipated. Factors that could cause actual results to differ from anticipated results are contained in the company’s latest earnings release and periodic filings with the Securities and Exchange Commission and we encourage you to view -- review those factors carefully.

I would now like to turn the call over to Mr. Dan Florness.

Dan Florness - President and CEO

Good morning, everybody, and thank you for joining us for our third quarter earnings call. The -- we had a good quarter. We -- when I look at the performance of the team, I am proud to be a member of the Blue Team.

The 16% daily sales growth that we experienced in the quarter, we were able to translate that into 19% operating profit growth, and ultimately, we were also able to translate it into strong operating cash flow growth. We grew our cash flow 54% from the third quarter of 2021 to third quarter of 2022.