Fastenal Company (NASDAQ:FAST) Q4 2019 Earnings Conference Call - Final Transcript

Jan 17, 2020 • 10:00 am ET


Fastenal Company (NASDAQ:FAST) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings, welcome to the Fastenal 2019 Annual and Fourth Quarter Earnings Results Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. At this time, I'll turn the conference over to your host, Ellen Stolts, Assistant Controller. Ellen, you may now begin.

Ellen Stolts

Welcome to the Fastenal Company 2019 annual and fourth 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 1 hour and we'll start with a general overview of our annual and 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 A replay of the webcast will be available on the website until March 1, 2020 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 review those factors carefully. I would now like to turn the call over to Mr. Dan Florness.

Daniel L. Florness

Thank you, Ellen, and thank you everybody for joining us for our fourth quarter earnings call. Last, we'll be filing our Annual Report here in the early part of -- first half of February. And so, last weekend I was drafting the letter to shareholders and employees for inclusion in that Annual Report. And one of the observations contained in that letter is a comparison of 2019 and 2015, because when I was -- when I'm writing that letter, I typically will go back and re-read a few letters and one reason you do that is, you're not too repetitive. Another reason to do that is to see what observations jumped out at the time. Back in 2015, we started out the year with a PMI Index of 52.6%. That's the average of the first three months of the year as we disclosed back then. I'm not sure if there has been adjustments to the PMI since then. We ended the year just shy of 49%, I believe it was 48.6%. And in 2019, we started the year a little bit higher. It was at 55.4% in the first quarter. In Q4, we were at 47.9%. So -- and we've been sub-50% since August.

If I look at it