Fastenal Company (NASDAQ:FAST) Q4 2019 Earnings Conference Call - Final Transcript
Jan 17, 2020 • 10:00 am ET
over the past three years and a couple of those facilities simply costing more to complete than we anticipated. In light of weaker macro conditions, we expect net capital spending of $180 million to $205 million in 2020. We paid nearly $500 million in dividends in 2019 and increased our dividend for the first quarter of 2020 by 13.6%. We finished the quarter with debt at 11.5% of total capital, below last year's 17.8%. Inventories were up 6.9% in the fourth quarter of 2019. Nearly three quarters of this growth related to inventory to support Onsites. Hub inventory growth slowed sharply, a function of both deliberate efforts to reduce inventory as well as weaker demand, while field inventories were slightly down. Setting aside the impact of demand, we believe there remains further opportunity to improve our inventory days in 2020. Accounts receivable grew 3% in the fourth quarter of 2019, the slowest rate of increase in more than three years, which largely reflects slowing demand. Mix and customer behavior will likely continue to influence AR days in 2020 with our expectations being flat to slightly higher days. We believe these factors will continue to produce good operating and free cash flow in 2020. That's all for our formal presentation. So with that operator, we'll take questions.