快扣 (FAST) 2016 Q2 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the Fastenal Company second-quarter 2016 earnings results conference call. Please be advised this conference is being recorded. I would now like to hand this meeting over to Ellen Trester, Investor Relations. Please go ahead.

女士們、先生們，大家好。歡迎參加Fastenal公司2016年第二季財報電話會議。請注意，本次會議正在錄音。現在我將會議交給投資者關係部的Ellen Trester女士。請她開始。

Welcome to the Fastenal Company 2016 second-quarter earnings conference call. This call will be hosted by Dan Florness, President and Chief Executive Officer, and Sheryl Lisowski, our interim Chief Financial Officer, Controller and Chief Accounting Officer.

歡迎參加 Fastenal 公司 2016 年第二季財報電話會議。本次會議將由總裁兼執行長 Dan Florness 和臨時財務長、財務總監兼首席會計長 Sheryl Lisowski 主持。

The call will last for up to 45 minutes, and 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 September 1, 2016, at midnight Central Time.

本次電話會議時長最多為45分鐘，首先將概述公司季度業績和營運情況，剩餘時間將用於問答環節。本次電話會議為Fastenal公司專有演示文稿，並由Fastenal公司進行錄音。未經Fastenal公司許可，禁止本次電話會議進行任何錄音、複製、傳輸或散佈。本次電話會議將透過Fastenal公司投資者關係網站investor.fastenal.com進行網路直播。網路直播回放將於美國中部時間2016年9月1日午夜前在該網站上提供。

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.

再次提醒各位，今天的電話會議可能包含有關公司未來計劃和前景的聲明。這些聲明是基於我們目前的預期，我們不承擔更新這些聲明的義務。需要注意的是，公司的實際業績可能與預期業績有重大差異。可能導致實際業績與預期業績有差異的因素已列於本公司最新的獲利報告和定期向美國證券交易委員會提交的文件中，我們建議您仔細閱讀這些因素。現在，我將把電話會議交給丹‧弗洛內斯先生。

Good morning everybody, and thank you for joining our earnings call for the second quarter of 2016. I've been in my role here at Fastenal as CEO and President for -- I'm in my seventh month, started in January, unofficially stepped into the role last October. I am a firm believer, and I have a CEO that came before me at Fastenal that did an excellent job of doing two things: providing vision to the -- to our shareholders and to the employees at Fastenal, and providing perspective periodically on what we are doing for course correction as we go through a period of time.

各位早安，感謝各位參加我們2016年第二季財報電話會議。我擔任Fastenal執行長兼總裁一職已有七個月了，我於今年一月正式上任，但實際上去年十月就已開始履行這項職責。我堅信，我的前任執行長在Fastenal的兩方面都做得非常出色：一是為我們的股東和員工描繪願景，二是定期就我們為應對發展趨勢而採取的調整措施提供指導。

In the case of vision, I'd like to believe the vision that we laid out last November in our Investor Day and the vision that we believe, I believe is the correct one for Fastenal, is being presented in a meaningful fashion. I think we're seeing traction on that.

就願景而言，我希望我們去年11月在投資者日上提出的願景，以及我們認為對Fastenal而言正確的願景，能夠以有意義的方式呈現出來。我認為我們已經看到了成效。

From the vantage point of the second item, perspective. Perspective is looking at the business, in my mind, as you go through the quarter. Again pointing things out, as you go through the quarter, you go through the year, you go through the month, pointing things out and seeing cause and effect from a standpoint of a reaction and the improvement on certain things, or you accelerate on certain things that aren't moving fast enough. In that regard, I would have to say I let the Fastenal organization and our shareholders down in the second quarter because there was some missteps we made, but let's look at vision first.

從第二點——視角——來看，在我看來，視角是指在整個季度中審視業務。同樣，在整個季度、全年、每月中，都要指出問題所在，並從反應和改進的角度看待因果關係，或者加快推進那些進展不夠快的項目。就此而言，我必須承認，我在第二季度辜負了Fastenal公司和股東的期望，因為我們犯了一些錯誤，但我們先來看看願景。

We talked last November about the vision of Fastenal. And one thing that I think is critical to our success as we go forth in this year and into the years to follow is the momentum we're building as an organization. One of the hallmarks of the organization that I've known for just over 20 years, in June I hit 20 years with Fastenal, a milestone I'm particularly proud of, is the fact that we are an organization that builds momentum, whether that momentum is coming from the opening of stores, the adding of people, the signing of and installing of vending machines, we are an organization that creates momentum for ourselves. And that allows us to separate in the marketplace our ability to grow long term. We operate in a large market. We have a large opportunity. And it's upon us to build the momentum to go out and take that opportunity.

去年十一月，我們探討了Fastenal的願景。我認為，對我們今年乃至未來幾年的成功至關重要的一點，是我們作為一個組織正在累積的發展勢頭。我加入Fastenal已有二十餘年，今年六月我剛好在Fastenal工作滿二十年，這是一個我特別引以為傲的里程碑。 Fastenal的一大特色就是我們能夠持續累積發展動能。無論這種勢頭來自於新店開業、人員擴充，還是自動販賣機的簽約和安裝，我們都能主動創造發展動力。正是這種動力讓我們在市場中脫穎而出，擁有長期成長的能力。我們身處在一個龐大的市場，擁有巨大的發展機會。現在，我們必須積蓄力量，抓住這些機會。

We didn't have great momentum coming into the year, and you see that shining through in some of our numbers this quarter. And I'll get into a few more specifics in a second. But on the building of momentum front, in the first six months of this year we signed 92 Onsites, 48 in the first quarter, 44 in the second quarter. Our stated goal is to sign 200 for the year. Personally I want to have no quarter that doesn't start with at least a 4, and it would be great to have a quarter or two that starts with a 5. So far, I believe in the first two quarters of the year we've made a tremendous transition in our ability to sign Onsites.

年初我們的發展勢頭並不強勁，這一點在本季的部分數據中也有所體現。稍後我會詳細說明。但就發展動能而言，今年上半年我們共簽下了92份現場考察合同，其中第一季48份，第二季44份。我們設定的目標是全年簽下200份。我個人希望每季的合約數量都能至少達到4份，如果能有一兩個季度以5份開頭就更好了。到目前為止，我認為今年前兩季我們在簽下現場考察合約方面取得了巨大的進步。

Onsites, for those of you not familiar with it, is really about us setting up a store inside the customer's facility and having an even more intimate relationship than we've had in the past. We have currently 333, I believe that's the number, Onsites that are operating. Of the 92 we've turned on, I believe close to 50 Onsites. But we're making very good progress on changing the organization to start building that momentum that we'll need as we go into 2017, 2018 and beyond.

對於不太了解的朋友，現場服務（Onsites）是指我們在客戶的辦公室內設立實體店，與客戶建立比以往更緊密的聯繫。目前我們有333家（我記得是這個數位）現場服務店正在運作。在我們啟動的92家門市中，大約有50家已經投入使用。我們正積極推動組織架構的調整，以期在2017年、2018年及以後的發展中保持所需的動能。

In regards to vending, in the first two quarters of this year, we signed 9,516 devices and we signed more in the second quarter than we did in the first quarter. Earlier in the year we added roughly 230 people into our business to support vending and to drive our signings with vendings, and I'll touch on a few stats in a second of why that's important, but I'm proud to say that we're gaining some momentum there.

關於自動販賣機業務，今年前兩季我們共簽了9,516台設備，第二季的簽約量超過了第一季。今年早些時候，我們新增了約230名員工，專門負責支援自動販賣機業務並推動相關簽約。我稍後會列舉一些數據說明這為何如此重要，但我很自豪地說，我們在這方面正取得一些進展。

Part of the process with this new group of people was to go out and optimize our existing devices. In many cases that optimization involved adding products into the machines to improve the throughput of the machine. In some cases it was changing the configuration of the machines to improve the efficiency of replenishing the machine. And so an optimization isn't all revenue-based. It might be a service-based aspect. But we've optimized approximately 75% of our machines in the first six months of the year. That's the good news.

與這群新同事合作的部分工作是優化我們現有的設備。在許多情況下，最佳化工作包括增加機器的商品種類以提高機器的吞吐量。在某些情況下，則是改變機器的配置以提高補貨效率。因此，優化工作並非完全基於收入，也可能涉及服務方面。但好消息是，我們在今年前六個月已經優化了約75%的機器。

The second set of good news is that we continue to see good statistics out of the group of stores. The bad news is that it also required the removal of a certain number of machines. We removed 7,200 machines in the first six months of this year as we went through our optimization process.

第二個好消息是，我們旗下各門市的各項統計數據依然良好。壞消息是，這也意味著我們需要移除一定數量的機器。今年上半年，我們在優化過程中移除了7,200台機器。

Many of those machines are great -- that we removed are great decisions because we went from 10 machines to 9. We went from four machines to three, because we really rationalized the equipment we needed to support that customer. And that's a great decision because it allows us to get a better return on that asset that's deployed.

很多機器都很好——我們移除的那些機器都是非常明智的決定，因為我們從10台機器減少到了9台，從4台減少到了3台，這說明我們真正精簡了支援客戶所需的設備。這是一個非常明智的決定，因為它使我們能夠從已部署的資產中獲得更高的回報。

Unfortunately some of the machines we removed were examples where we had a machine in an environment where either the business had changed or the business never truly justified a vending machine. And we went from one to zero or two to zero. But I believe we have a much better business, vending business today than we had six months ago. And we continue to see great traction in our signings. And every day we're doing a better job vetting new signings than we did the day before. We're becoming a much better vending company.

遺憾的是，我們移除的一些機器是因為它們的擺放位置要么是業務環境發生了變化，要么是業務本身就不具備使用自動售貨機的必要性。結果就是，我們的機器數量從一台驟降至零台，或是從兩台驟降至零台。但我相信，我們現在的自動販賣機業務比六個月前好得多。我們的簽約業務持續成長，而且每天我們在審核新簽約客戶方面都做得比前一天更好。我們正在成為一家更優秀的自動販賣機公司。

If I look at the second quarter we grew our business just under 2%. Our vending customers grew just under 3%. Those customers, like many of our customers, especially in particular industries heavily hit by either weaker energy prices or weaker activity in the industrial marketplace. Our fastener business with vending customers was down 5% in the second quarter. So that group of customers that grew 3%, their fastener business with us was down 5%. I think that's an indicator of what's going on in their economic circumstance.

如果我看一下第二季度，我們的業務成長略低於2%。我們的自動販賣機客戶成長略低於3%。這些客戶，就像我們的許多其他客戶一樣，尤其是在那些受能源價格走低或工業市場活動疲軟嚴重衝擊的特定產業。我們針對自動販賣機客戶的緊固件業務在第二季下降了5%。因此，這部分成長了3%的客戶，在我們這裡的緊固件業務卻下降了5%。我認為這反映了他們當前的經濟狀況。

The non-fastener business with that same group of customers grew about 6%. If I take it one step further, the dollars going through the vending machine grew about 11%. So what we're seeing is a group of customers, about 45% of our revenue is with customers that have vending.

在同一批客戶中，非緊固件業務成長了約 6%。進一步來說，透過自動販賣機實現的銷售額成長了約 11%。因此，我們看到，大約 45% 的收入來自擁有自動販賣機的客戶。

Our revenue with that group of customers is growing at about twice the rate of our overall business as a Company. That group of customers is as hurt by the economy as is any other group, and you're seeing that shine through in the fastener business. And yet our non-fastener business continues to grow very well. And our business with the vending machine is growing double digit.

我們來自這部分客戶的營收成長速度大約是公司整體業務成長速度的兩倍。這部分客戶和其他客戶群一樣，都受到了經濟狀況的衝擊，這在緊固件業務中體現得尤為明顯。然而，我們的非緊固件業務依然保持著良好的成長動能。此外，我們的自動販賣機業務也實現了兩位數的成長。

We believe vending is an example of engagement with our customer, just like Onsite as an example of engagement with our customer. We believe we're building momentum that will serve us well in the years to follow.

我們認為自動販賣機和現場服務一樣，都是我們與客戶互動的方式。我們相信，我們正在累積的勢頭將在未來幾年為我們帶來益處。

The third piece of momentum I believe we're building is our CSP16. I believe we're at about 1,900 stores converted. Our CSP16 is largely in place with the revenue drivers of our business. What I mean by that is there's some stores that have yet to convert. They might be smaller stores or stores that are in the process of moving. But our revenue base is largely complete as it relates to CSP16. And that positions us to be a better same-day supplier to our customers, be a more efficient supplier to our customers and broaden our appeal on the range of customers that can buy from us. And I believe that will serve us well in the months and years to follow.

我認為我們正在建立的第三個發展勢頭是我們的CSP16計劃。目前已有約1900家門市完成轉換。我們的CSP16計劃已基本落實到位，並與我們業務的收入驅動因素緊密結合。我的意思是，還有一些門市尚未完成轉換，它們可能是規模較小的門市，或是正在搬遷的門市。但就CSP16計劃而言，我們的收入基礎已基本建置完成。這使我們能夠更好地為客戶提供當日送達服務，提高服務效率，並擴大客戶群。我相信這將在未來數月乃至數年內對我們大有裨益。

Finally we have very good momentum on our national account signings. We highlighted that in the points raised, I believe it was on the second page of the press release. That's being helped by Onsite signings, Onsite signings are being helped by that. They serve each other well, because 75% of our Onsites are with national account customers. So that's the vision, and I believe the momentum we're building as we go through 2016.

最後，我們在全國性客戶簽約方面取得了非常好的進展。我們在新聞稿第二頁重點強調了這一點。這得益於現場簽約的推進，反之亦然。兩者相輔相成，因為我們75%的現場洽談都是針對全國性客戶。這就是我們的願景，我相信我們將在2016年持續保持這一發展勢頭。

Now the perspective part. And the part where, as I mentioned earlier, I think frankly I could have done better from the standpoint of providing perspective to the team at Fastenal. Our Top 10 customers in the first quarter, and our Top 10 customers represent 8% to 10% of revenue, depending on the month or quarter you're looking at. That group was growing at about 14% in the first quarter, largely [buoyed] by a few customers that were new to that group. The key to that group every year is, what is the new blood you're bringing into it and what are you doing with your existing group of customers that were in the past.

現在來說說我的視角吧。正如我之前提到的，坦白說，我覺得我本可以做得更好，為Fastenal團隊提供更全面的視角。我們第一季的前十大客戶，其營收佔8%到10%之間，具體比例取決於月份或季度。這部分客戶在第一季的成長率約為14%，主要得益於一些新客戶的加入。每年對這部分客戶的關鍵在於：如何吸引新客戶，以及如何維護和維繫過去的老客戶群。

At the district level we referred to that as Top 25, at the regional level we referred to that as our Top 300 customers. It's really what's happening with your big customers and what new customers are you bringing into that group. The growth with that group, which was double digit in the first quarter and was double digit in April, went to zero in the month of May and went to negative 6% in the month of June. So in the second quarter that group of customers grew at about 8%.

在區域層面，我們稱之為前25大客戶；在區域層面，我們稱之為前300大客戶。這主要關乎您的大客戶群的發展狀況，以及您為該群體帶來的新客戶。該群體在第一季和四月均實現了兩位數的成長，但在五月降至零，六月更是下降了6%。因此，第二季度該群體客戶的成長率約為8%。

If I look at the Top 100 customers in our business, and again they represent about 25% of our revenue, the top 10 I just talked about would be a subset clearly, in the first quarter that group of customers grew about 4.5%. In the month of April that group of customers grew 6.5%. In the month of May that group of customers contracted about 2%. In the month of June that group of customers contracted about 2.5%. For the quarter that group of customers, which grew almost 5%, 4.5% in the first quarter, grew 0.7% in the second quarter.

如果我看一下我們公司前 100 名的客戶，他們約占我們收入的 25%，那麼我剛才提到的前 10 名客戶顯然只是其中的一部分。第一季度，這部分客戶成長了約 4.5%。 4 月份，這部分客戶成長了 6.5%。 5 月份，這部分客戶下降了約 2%。 6 月份，這部分客戶下降了約 2.5%。整個季度，這部分客戶在第一季成長了近 5%（4.5%），而第二季度僅成長了 0.7%。

When I look at that group of customers I see that sudden falloff as an example not of the momentum we're building, but of slowdowns with momentum we've built in the past with customers we've added in past where we have a large market presence, and that business fell off later in the quarter. The perspective part that we failed on is we didn't react fast enough locally and Company-wide to that falling revenue in the months of May and June.

當我審視這部分客戶時，我發現這種突然下滑並非是我們正在建立的成長勢頭的體現，而是過去我們透過拓展客戶群（這些客戶是我們過去在市場上佔據重要地位的群體）所建立的成長勢頭放緩的體現，這些客戶的業務在季度後期出現了下滑。我們失職的地方在於，在5月和6月，無論在本地或公司層面，我們對營收下滑的反應都不夠迅速。

As it relates to gross margin, you'll notice a couple things omitted from our press release this quarter. One is a stated range. And stated range was not removed because I felt it was accurate, it was removed because it was becoming too much noise to our conversation.

關於毛利率，您會注意到本季新聞稿中省略了幾個資訊。其中之一是毛利率的預期範圍。我刪除毛利率預期範圍並非因為我認為它準確，而是因為它對我們的討論造成了過多的干擾。

I believe you own Fastenal because Fastenal is an organization that builds momentum and carries that momentum forward. And it's good enough that executing the business that we're able to capture that momentum in very attractive profit growth over time and very attractive returns.

我相信您持有 Fastenal 的股份，是因為 Fastenal 是一家能夠積蓄力量並保持發展勢頭的公司。而且，憑藉出色的業務執行力，我們能夠將這種發展勢頭轉化為極具吸引力的利潤成長和長期回報。

Therefore our focus internally is 90% on building the momentum. But in the case of gross margin, our gross margin dropped about 30 basis points during the quarter from the first quarter. About 25 basis points of that drop remained -- was tied to some of the activities around a very rapid CSP16 rollout, and really more than that. A number of efficiencies we introduced into our store network, inventoried by location.

因此，我們內部90%的精力都放在鞏固成長動能上。但就毛利率而言，本季毛利率較第一季下降了約30個基點。其中約25個基點的下降與快速推廣CSP16相關的一些活動有關，但實際上影響遠不止於此。我們也針對門市網路引入了多項效率提升措施，並按門市進行庫存盤點。

They come under a bunch of names, but we're introducing, and we wanted to do it very rapidly, maybe a little too rapidly, but we want to do it very rapidly to move forward. During that process there were some components of our inventory we decided to sell off at a lower price. There were some components of our inventory that we decided to remove from our business.

它們有很多不同的名稱，但我們正在推出，而且我們希望盡快完成，也許有點太快了，但我們希望盡快推進。在此過程中，我們決定以較低的價格出售部分庫存。我們也決定從業務中移除部分庫存。

There's about 10 basis points of that drop that I believe are behind us. There's about 15 to 20 basis points of that drop that I believe will remain for several quarters. I was willing to move quickly on that as we entered the second quarter because I felt there were enough other things we are doing that we could fund that, if you will, by other gross profit initiatives. Those didn't materialize, unfortunately, and the gross margin that you see as a result.

我認為，大約10個基點的跌幅已經過去。而大約15到20個基點的跌幅，我認為會持續幾個季度。進入第二季時，我原本打算迅速採取行動，因為我覺得我們正在做的其他事情足以彌補這部分損失，例如透過其他提高毛利率的舉措。但遺憾的是，這些舉措最終未能實現，導致了您看到的毛利率下降。

And related to operating expenses, there's really probably two things that are noteworthy in our operating expenses, and Sheryl's going to touch on those in more depth and a few more, but the two things that jump up for me, our fuel costs were up about $2.5 million from Q1 to Q2. That's a fact of the price of gasoline at the pump and diesel fuel at the pump. Where we didn't execute real well is we didn't react quickly to adjusting some of our store routes, our local routes, but more importantly we didn't react very quickly to our propensity to charge freight, and therefore we largely bore that expense without sharing any of that expense.

關於營運費用，我們營運費用中確實有兩點值得特別關注，Sheryl 稍後會更詳細地討論這兩點以及其他一些方面。但對我來說，最突出的兩點是：我們的燃油成本從第一季到第二季增加了約 250 萬美元。這是汽油和柴油價格上漲的必然結果。我們執行得不夠好的地方在於，我們未能及時調整部分門市路線和本地路線，但更重要的是，我們未能及時調整收取運費的做法，因此我們基本上承擔了這部分費用，而沒有與任何公司分攤。

The second one, and this is mechanical thing and it's something that I talked about with many of you over the last year on earnings calls, and that is historically we have a very good flex in our operating expenses as it relates to incentive comp. And what it means in the short term for our ability to absorb some worsening environments, and in a little bit of the incremental margin we give back in strong periods. And that is, as we had gone through 2015 our incentive comp was compressing dramatically. And if you take a look through our proxy, you can see that from the standpoint of the impact on the executive compensation.

第二點，這牽涉到一些機制上的問題，也是我過去一年在財報電話會議上和大家多次討論過的。那就是，從歷史數據來看，我們在營運支出方面，尤其是在激勵性薪酬方面，具有非常大的靈活性。這意味著，短期內，我們能夠更好地應對一些不利的市場環境，並且在業績強勁時期，我們也會稍微減少一些利潤。然而，在2015年，我們的激勵性薪酬大幅縮減。如果您查看我們的委託書，就能從高階主管薪酬的角度看出這一點。

But it contracted dramatically. And so the district and regional and store leadership component of that is at a compressed level. And so the ability to flex there is limited in the current environment, and you saw that shine through unfortunately in the current quarter.

但規模大幅縮減。因此，區域、地區和門市的領導階層都處於高度緊張狀態。所以，在當前環境下，他們的靈活應變能力有限，但不幸的是，這一點在本季已經顯露無疑。

Finally two things I'll touch on, and it really relates to the momentum items I was discussing earlier. And that is, and we highlighted it. We installed during the quarter approximately 3,000 locker lease devices under our locker lease program that we initiated earlier in the year with Wal-Mart. The total rollout of that will be approximately 15,000 devices and we'll roll out as we go through the balance of this year, and I believe a little bit into early next year. We think it's an excellent program for us long term, and we entered it.

最後我想談兩件事，這兩件事與我之前提到的發展勢頭密切相關。我們重點強調了這一點：本季度，我們根據年初與沃爾瑪合作啟動的儲物櫃租賃項目，安裝了約3000台儲物櫃租賃設備。該專案的總部署量約為15,000台，我們將在今年剩餘時間內逐步完成部署，預計將持續到明年年初。我們認為這是一個對我們長期發展非常有利的項目，所以我們積極參與其中。

The second one is at our Investor Day last year we unveiled our outdoor locker. As of today we have approximately 30 outdoor store lockers in place. We expect to have about 50 by September. And while it's not very meaningful from a revenue perspective, and it won't be very meaningful from a revenue perspective when I look at 2016 or 2017, it's a step we're taking and one more means to be a much better supplier to our customers. With that, I'll turn it over to Sheryl.

第二點是，在去年的投資者日上，我們推出了戶外儲物櫃。截至目前，我們已經安裝了大約30個戶外儲物櫃。我們預計到9月將達到50個左右。雖然從營收角度來看，這意義不大，而且展望2016年或2017年，其營收影響也不會很大，但這卻是我們正在邁出的一步，也是我們成為更優質供應商的又一途徑。接下來，我將把發言權交給謝麗爾。

I'll start by providing an overview of our operating and administrative expenses. Regarding employee-related expenses, we added approximately 800 people to the Fastenal organization in the last 12 months. Approximately 37% of these people were added to a store or some other type of selling location.

首先，我將概述我們的營運和管理費用。關於員工相關費用，過去12個月裡，Fastenal公司新增了約800名員工。其中約37%的員工被分配到門市或其他銷售地點。

During the first half of 2016 our payroll-related expenses increased due to the addition of personnel related to the acquisition of Fasteners, Inc which occurred in November of 2015 and the addition of vending specialists, information technology development resources, and distribution personnel. And we also experienced an increase in our healthcare costs.

2016年上半年，由於收購Fasteners, Inc.（收購於2015年11月完成）後新增人員，以及新增自動販賣機專家、資訊技術開發人員和配送人員，我們的薪資相關支出有所增加。此外，我們的醫療保健成本也有所上升。

These increases were partially offset by a contraction in our performance bonuses and commissions, and in our profit-sharing contribution primarily due to lower sales growth and due to lower operating income, both on a dollar basis and a relative basis. The increase in the second quarter of 2016 when compared to the second quarter of 2015 was driven by the same factors as the six-month period.

這些成長部分被績效獎金和佣金的縮減以及利潤分成貢獻的減少所抵消，利潤分成減少的主要原因是銷售成長放緩以及營業收入（無論以美元計算還是按相對值計算）下降。 2016年第二季與2015年第二季相比的成長，其驅動因素與上半年相同。

Regarding occupancy expenses, the increase in the first half of 2016 when compared to the first half of 2015 was driven by an increase in industrial vending equipment and also an increase in investment in our distribution infrastructure over the last several years, primarily related to automation, the largest impact related to the industrial vending equipment. The increase in the second quarter of 2016 when compared to the second quarter of 2015 was driven by the same factors as the six-month period.

關於倉儲費用，2016年上半年與2015年上半年相比有所增長，主要原因是工業自動販賣機設備投入增加，以及過去幾年對配送基礎設施投資的增加（主要與自動化相關），其中工業自動販賣設備的影響最大。 2016年第二季與2015年第二季相比的成長，原因與上半年相同。

Selling, transportation costs including operating and administrative expenses increased in the first half of 2016 when compared to the first half of 2015. This was driven by an increase in the number of vehicles for sales personnel and the timing of leased vehicle sales, which was partially offset by a decrease in fuel costs. The increase in the second quarter of 2016 when compared to the second quarter of 2015 was driven by the same factors as the six-month period.

2016年上半年，銷售和運輸成本（包括營運和管理費用）較2015年上半年增加。這主要是由於銷售人員車輛數量增加以及租賃車輛銷售時間表的調整，但部分被燃油成本的下降所抵消。 2016年第二季與2015年第二季相比的成長，其主要原因與上半年相同。

During the second quarter of 2016 we did not repurchase any stock. However in the first quarter of 2016 we purchased 1.6 million shares of our common stock at an average price of $37.15 per share. We spent approximately $396 million buying back stock since June 30, 2014 and repurchased approximately 3.3% of our shares outstanding from the start of this timeframe.

2016年第二季我們沒有回購任何股票。然而，在2016年第一季，我們以每股37.15美元的平均價格回購了160萬股普通股。自2014年6月30日以來，我們已花費約3.96億美元用於股票回購，回購股份約佔該時段內已發行股份總數的3.3%。

Regarding net capital expenditures. In the first half of 2016 our net capital expenditures expressed in dollars and as a percentage of net earnings were $86 million, or 33.3% of net earnings. We expect our net capital expenditures to be approximately $200 million in 2016. And we plan to fund a portion of our planned capital expenditures with proceeds of a private placement of debt. We expect to close on this funding in late July 2016.

關於淨資本支出。 2016年上半年，我們的淨資本支出（以美元計）佔淨利的33.3%，即8,600萬美元。我們預計2016年全年淨資本支出約為2億美元。我們計劃透過私募債務融資來為部分計劃資本支出提供資金。我們預計將於2016年7月底完成此融資。

Regarding operational working capital. On a year-over-year basis our inventory grew by $108 million, and this growth was driven by the following factors. CSP16 was approximately 50% of the increase. Our international inventory growth was approximately 9% of the increase. The acquisition of Fasteners, Inc related to 8% of the increase. Onsite and large customer impacts were approximately 14% of the increase.

關於營運資金。與上年同期相比，我們的庫存增加了1.08億美元，這一增長主要受以下因素驅動：CSP16項目約佔增長的50%；國際庫存增長約佔增長的9%；收購Fasteners, Inc.相關業務約佔增長的8%；現場運營和大型客戶業務的影響約佔增長的14%。

From a cash flow perspective, our operating cash flow as a percentage of net earnings contracted slightly in the first half of 2016 when compared to the first half of 2015 due to our current initiative to add additional products into store inventory under our CSP16 format. This was partially offset by a reduction in net cash used to fund accounts receivable.

從現金流角度來看，由於我們目前正根據CSP16模式增加門市庫存產品，2016年上半年我們的經營現金流量佔淨利的比例較2015年上半年略有下降。但用於支付應收帳款的淨現金減少部分抵銷了這一影響。

Our first quarter typically has stronger cash flow characteristics due to the timing of tax payments, and this benefit reverses itself in the second, third and fourth quarters as income tax payments go out in April, June, September and December. Our free cash flow year to date for 2016 is 63% of earnings which compares to year to date 2015 at 66% of earnings.

由於稅款繳納時間的關係，我們第一季的現金流通常較為強勁。但隨著所得稅分別在4月、6月、9月和12月繳納，這項優勢在第二、三、四季會逐漸消失。 2016年迄今，我們的自由現金流佔收益的63%，而2015年同期這一比例為66%。

Last night we announced a Q3 dividend of $0.30 per share. As a takeaway I'd like to share with the group that we have a strong cash flow and we're optimistic about our cash flow potential throughout the year. And with that, I'll turn it over for questions from the group.

昨晚我們宣布了第三季每股0.30美元的股息。我想和大家分享的是，我們現金流強勁，對全年的現金流潛力充滿信心。接下來，我會把發言權交給大家，請大家提問。

(Operator Instructions)

（操作說明）

Our first question comes from Robert Barry with Susquehanna. Your line is open.

我們的第一個問題來自薩斯奎哈納大學的羅伯特·巴里。您的電話已接通。

Hey, guys. Good morning.

嘿，各位。早安.

Hi, Rob.

嗨，羅布。

Dan, I wondered if you could just provide a little bit more color on June sales? What verticals flowed, especially in light of the ISM which seems to be showing improving conditions. And I wonder if you'd attribute any of the pressure to things that might be considered temporary, like these extended shutdowns you mentioned?

丹，我想請你詳細介紹六月的銷售狀況？哪些垂直產業銷售強勁？尤其是在ISM指數顯示市場狀況似乎正在改善的情況下。另外，你認為造成銷售壓力的因素中，是否也包括一些暫時性的因素，例如你提到的那些長時間的停工停產？

In the construction front we saw slowdown in our energy customers, and in both May and June. And a piece of that is we're seeing projects that were still going on from a year ago that just are not being replaced. So I would not look at that as a temporary one. On the temporary front we saw quite a few customers that were shut down. I think our largest impact was actually an Onsite we have where the customer was shut down for three weeks of the month doing maintenance. But the week of Memorial Day in early June we saw shutdowns. We saw some shutdowns here over the week of July 4. And I believe those are -- while they're temporary will impact third quarter as well because of the July 4. And I would suspect there will be some over Labor Day as well.

在建築方面，我們發現能源客戶的業務有所放緩，尤其是在五月和六月。部分原因是，一些一年前就開始施工的工程至今仍未完工，因此我認為這種情況並非暫時性的。至於暫時性的停工，我們看到不少客戶的業務被暫停。我認為影響最大的實際上是一家現場服務商，該客戶的業務因維護而關閉了三週。此外，在六月初的陣亡將士紀念日那週，我們也看到了停工。七月四日那週，我們也看到了一些停工。我認為這些雖然是暫時的，但由於七月四日假期的影響，也會對第三季產生影響。我估計勞動節期間也會有一些停工。

I mean, I know it's probably hard to quantify, but any rough estimate of the extent to which these temporary items weighed on June or the quarter?

我知道這可能很難量化，但能否粗略估計這些臨時項目對六月或整個季度的影響程度？

In the case of June, (multiple speakers) yes. In the case of June, I could comfortably say 1 point, 1 percentage point of revenue. Going beyond that, I wouldn't be as comfortable.

就六月而言，（多位發言者）是的。就六月而言，我可以比較肯定地說收入增加了1個百分點。但如果超過這個數字，我就不太有把握了。

You also mentioned pricing as an impact from deflation. Can you dimension that? And given steel prices have started to rise, how should we think about that potentially becoming a benefit?

您也提到通貨緊縮對價格的影響。能具體分析一下嗎？鑑於鋼鐵價格已經開始上漲，我們該如何看待這可能帶來的益處？

We were seeing probably more propensity for fastener prices to rise two and three months ago. While there still is -- there are still examples of that, some of the propensity has lessened. But I'm less certain. I think that's probably more of a, we need some traction in the economy to make some of that become a little stickier.

兩三個月前，我們可能看到緊固件價格上漲的趨勢更為明顯。雖然現在仍然存在上漲的跡象——仍然有一些例子——但這種趨勢有所減弱。不過，我對此不太確定。我認為這可能更多是因為我們需要經濟走強，才能讓這些上漲趨勢更加穩定。

So the steel price rises aren't a potential tailwind, just not enough for long enough?

所以，鋼材價格上漲並非潛在的利多因素，只是持續時間不夠長？

They're not as pronounced. Like I say, we were seeing more of that two and three months ago. While there's still are a lot of discussions, both on the fasteners and non-fasteners, I would say it's probably less noise from it now than there was two or three months ago.

它們不像以前那麼明顯了。就像我說的，兩三個月前我們看到的更多。雖然關於緊固件和非緊固件的討論仍然很多，但我認為現在這方面的噪音比兩三個月前要少得多。

Got you. Thank you.

明白了，謝謝。

Our next question comes from Chris Dankert with Longbow Research. Your line is open.

下一個問題來自 Longbow Research 的 Chris Dankert。您的提問已接通。

Good morning, guys.

各位早安。

Good morning.

早安.

Last call you had been talking about being able to hold gross margin flat, or roughly flat, kind of through the rest of the year. Just kind of given what we've seen pricing-wise and demand-wise, I guess could you give us some sort of size of what you do expect for the full year now as far as, 49.5% a better benchmark now?

上次通話中您提到，今年剩餘時間裡，毛利率可望保持穩定或大致穩定。鑑於我們目前看到的定價和需求情況，您能否給出全年毛利率的預期範圍？ 49.5% 是否是一個更合適的基準？

I don't know that my credibility is real good on that right now, given some of the statements made in the past. What I touched on is, we saw about a 25 basis point, 25 to 30 basis point drop, largely because of a few what I'd consider internal shorter-term things that we decided that we were moving quickly on and decided to do, to be honest with you. I felt we had enough momentum of other things in place to match that in the short term. And my comments here are short-term centered, and short term being 2016, because longer term our Onsite business, which runs in mid-30%s will become a, as we gain traction in there, will become a more meaningful piece. So if you look at a longer term, 3 to 5 years, I would expect some progression in our gross margin solely because of mix of business.

鑑於我過去的一些言論，我不確定我現在在這方面的可信度是否很高。我剛才提到的是，我們看到了大約25到30個基點的下降，這主要是因為一些我認為是內部短期事項，我們決定迅速推進並採取行動。坦白說，我認為我們當時已經採取了其他一些措施，足以在短期內抵消這些影響。我在這裡的評論主要針對短期，這裡的短期指的是2016年，因為從長遠來看，我們的現場服務業務（佔比30%左右）會隨著我們在該領域的進展而變得更加重要。因此，如果著眼於更長遠的未來，例如3到5年，我預計我們的毛利率會有所成長，這完全是由於業務組合的變化。

Okay, that's helpful. Thank you. And then I guess, I don't believe I missed it, but is there any way to quantify the exact sales impact from CSP or some of the Onsiteing stuff? I know you've given un some decent progress numbers as far as how those have rolled out. But is there any kind of revenue impact you can give us?

好的，這很有幫助，謝謝。然後，我想我應該沒有錯過什麼，但是有沒有辦法量化CSP或一些現場服務對銷售的具體影響？我知道你們已經提供了一些關於這些服務推廣進展的好數據。但是，你們能否提供一些關於收入影響的具體數據呢？

I plan on doing a little bit more of that in the Q3 call, only because the last of our CSP conversions were occurring in that early June timeframe. So we really don't have enough time under our belt, because there's a lot of activity going on in the first and second quarter, and a lot of it in the second quarter. In the case of the Onsite, we wanted to get a little deeper into the year and then do some discussions on the 80 we signed last year, what we're seeing, what we're learning from it. The 92 we've signed in the first six months of this year, what are we seeing. So for the time being, I'll hold off on that.

我計劃在第三季財報電話會議上多談談這方面的內容，因為我們最後一批雲端服務供應商 (CSP) 的轉換工作是在六月初完成的。所以我們目前掌握的資訊還不夠多，因為第一季和第二季都有很多工作要做，尤其是第二季。關於現場服務 (Onsite)，我們希望更深入地了解今年的情況，然後討論一下去年簽署的 80 份合同，看看我們目前的情況，以及我們從中吸取了哪些經驗教訓。還有今年上半年簽署的 92 份合同，我們也想了解它們的狀況。所以目前，我暫時先不談這些。

All right. Thanks, Dan.

好的。謝謝你，丹。

Our next question comes from David Manthey had with Robert W. Baird. Your line is open.

下一個問題來自大衛·曼西向羅伯特·W·貝爾德提出的問題。您的電話已接通。

Thank you. Hey, Dan. Good morning.

謝謝。嘿，丹。早安.

Good morning.

早安.

When you think about the growth of the Company today and the build-up of sort of a secular growth rate, market growth, share gain, vending, Onsites, price, et cetera, how do you think about the growth of Fastenal as it stands today?

當你思考公司今天的成長以及某種長期成長率的建立，市場成長，份額增加，自動販賣機，現場服務，價格等等，你如何看待 Fastenal 目前的成長狀況？

Give me your time frame, Dave, so I can --

告訴我你的時間安排，戴夫，這樣我才能——

I'm talking --

我正在說——

You looking at a multi-year thing?

你考慮的是多年期的項目嗎？

Definitely, definitely. I'm talking 3 to 5 years. Kind of from here over the next several years.

當然，當然。我指的是三到五年。大致就是未來幾年的發展方向。

I believe we talked in the November Investor Day about the number of Onsite potential, the number of vending potential and our existing store potential outside of those two, because there's a lot of national -- only a third of our national account business today goes through an Onsite, two-thirds of it's outside the Onsite. So there's a whole bunch of pieces to growth. And I'm not even including in that the impact of international, which is now getting to be a meaningful piece of our business, and a piece of our business that grew nicely both from a revenue and a profit perspective in the current quarter.

我相信我們在11月的投資者日上討論過現場銷售潛力、自動販賣機銷售潛力以及現有門市在這兩方面之外的潛力，因為我們有很多全國性業務——目前我們只有三分之一的全國性客戶業務是透過現場銷售管道獲得的，三分之二的業務是在現場銷售管道之外獲得的。所以成長涉及方方面面。而且我還沒算上國際業務的影響，國際業務現在已經成為我們業務的重要組成部分，並且在本季度無論從收入還是利潤來看，這部分業務都實現了不錯的增長。

But if I look at it, let's say over a multi-year period, we can sign 200 to 300 Onsites a year. And if they truly turn into a $1 million to $1.5 million revenue growers as we move forward, a piece of our business would migrate there, but more importantly that would provide us, I believe, 5 points of growth when we looking at this 3 and 4 and 5 years out, right there on top of what vending would do. And part of the vending I'm double-counting because some of the vending would be to that group of customers. And then what our store base would do. I really believe from just doing the math and assuming we have the horsepower, because I know the market is there. The horsepower to pull it off, which I believe we have or can add, that it's a business that over a multi-year perspective could grow in low double digits.

但如果我仔細分析，假設在未來幾年內，我們每年可以簽下 200 到 300 個 Onsites 合作項目。如果這些項目真的能像我們預期的那樣，最終實現每年 100 萬到 150 萬美元的收入成長，那麼我們的部分業務就會轉移到這些項目上。但更重要的是，我相信，從未來 3 年、4 年甚至 5 年的角度來看，這能為我們帶來 5 個百分點的成長，這還不包括自動販賣機帶來的成長。我這裡重複計算了自動販賣機的部分收入，因為部分收入是針對這部分客戶群的。再加上我們現有門市的銷售額，我真的相信，僅僅通過計算，並假設我們擁有足夠的實力（因為我知道市場就在那裡），這項業務在未來幾年內就能實現兩位數的低增長率。

Now, we need our store piece to execute well in that environment. We need our vending piece to execute well in that environment. But I believe that's achievable. If I'm wrong on the store piece and how much we can add there, it would translate at from a lower double digits to an upper single digit. But I think in either scenario it's a very attractive and profitable growth.

現在，我們需要門市業務在這種環境下取得成功。我們也需要自動販賣機業務在這種環境下取得成功。但我相信這是可以實現的。如果我對門市業務以及我們可以增加的份額估計有誤，那麼增長率將從兩位數略低降至個位數略高。但我認為無論哪種情況，這都是一個極具吸引力且盈利豐厚的成長。

Right. And then earlier when you were talking about the growth in Onsites and the traction you're getting there and the fact that it's coming through at a slightly lower margin. I guess in terms of the contribution margin, I think you used to talk about 25% to 30% was the targeted range. And when I look over the past five years in periods where you've grown 5% or greater, it's been about 25%. Should we assume that maybe 20% to 25% is a better range, given the importance of Onsite to that growth algorithm?

沒錯。之前您提到過Onsite業務的成長以及你們在該領域取得的進展，但利潤率略低。我記得您之前說過，25%到30%是你們的目標利潤率區間。而我回顧過去五年，在你們成長5%或以上的時期，利潤率都達到了25%左右。考慮到Onsite業務對成長演算法的重要性，我們是否可以認為20%到25%的區間更合適呢？

It plays into it, yes. And that might not be a bad way to think about it. The one perspective that -- the pathway to profit that's underlying in our business with our store network is still there. And so that store network will continue to see that tick up over time. But if we go from Onsites being -- Onsites and customer sites, that group we talked about being midteens, (inaudible) 15% of our business, and that effectively doubles over a 6- to 8-year horizon, it would take a little bit out of our incremental margin, yes

是的，這確實有影響。而且這樣想或許也不錯。我們業務中與門市網路相關的獲利路徑依然存在。因此，門市網路的獲利能力會隨著時間的推移而持續成長。但是，如果我們把門市（包括我們之前提到的門市和客戶現場）的佔比從15%左右（聽不清楚）增加到6到8年內翻一番，那麼我們的增量利潤就會受到一定程度的影響。

Okay. All right. Thanks very much, Dan.

好的。好的。非常感謝你，丹。

Our next question comes from Scott Graham with BMO Capital Markets. Your line is open.

下一個問題來自BMO資本市場的史考特‧葛拉漢。您的提問已接通。

Hi. Good morning, Dan.

你好。早上好，丹。

Good morning.

早安.

Just wondering in -- really, the two questions are, in the current environment where sales are tough to come by and shareholder value tough as a result. Is there any thought behind accelerating share repurchases in the second half of the year? And my second question relates more to the vending program with respect to the fastener side. I was hoping you could give us a little bit more color on I think what you said was a minus 5% in that area for the Company.

我只是想問一下——實際上，我有兩個問題：在當前銷售困難、股東價值也因此受到影響的環境下，公司是否有考慮在下半年加快股票回購？我的第二個問題與自動販賣機專案有關，特別是關於緊固件方面的。我希望您能詳細解釋一下，您之前提到公司在該領域的表現下滑了5%。

Well, it was the minus 5% with the customers that have vending. And that's really a function of what their underlying activity is. And the reason I called that out is, really wanted to talk about the market share gains we're seeing in that group, in that there's a world of difference between what our fasteners and our non-fasteners are doing. And I look at those as two distinctly different businesses. But it's really demonstrating how the growth potential of the latter. And so I'm not sure if I addressed your fastener side question, because fasteners and vending really don't go hand in hand. The reason I was talking about it is, it's a subset of our business with that group of customers that has vending. And I think it's a pretty good proxy to their underlying activity.

嗯，是那些擁有自動販賣機的客戶那5%的下滑。這實際上取決於他們的基本業務活動。我之所以特別提到這一點，是想談談我們在這個群體中看到的市場份額增長，因為我們的緊固件業務和非緊固件業務之間存在著天壤之別。我認為這是兩個截然不同的業務。但這確實展現了後者（非緊固件業務）的成長潛力。所以我不確定我是否回答了你關於緊固件的問題，因為緊固件和自動販賣機業務實際上並不相關。我之所以提到這一點，是因為它是我們擁有自動販賣機的客戶群業務的一個子集。我認為這可以很好地反映他們的基本業務活動。

Right. No, I did understand how you were framing that for us. I was just kind of wondering why at a minus 5% you'd consider that market share gain?

好的。不，我明白你的意思。我只是有點疑惑，為什麼你會認為-5%的市佔率成長算是提升？

No, no. I'm talking about -- the minus 5% is what is I would consider the market with that group of customers that relates to fasteners. The market share gain would be the fact that group of customers is growing at close to 3% and their non-fastener business is growing at close to 6%, 5.9% to be exact. That's clearly a market share gain because that is not a rising tide in that customer.

不，不。我指的是－負5%指的是我所認為的與緊固件相關的那部分客戶群的市場份額。市佔率的成長在於，這部分客戶群的成長率接近3%，而他們的非緊固件業務成長率接近6%，準確來說是5.9%。這顯然是市場佔有率的成長，因為這並非是該客戶群業務的持續下滑。

I got you.

我接到你了。

But we're taking market from other people.

但我們正在從其他人手中搶佔市場份額。

All right, got you, okay. And on the share repurchases, is there now stock a little weak today and been below $45 more than it's been above recently. Is that an opportunity?

好的，明白了。關於股票回購，目前股價是否有些疲軟，最近一段時間跌破45美元的時間比高於45美元的時間還要多？這算是買入機會嗎？

Yes, it is. We have, I believe, $1.3 million under our current authorization. I have not had discussions with my Board about going deeper than that. However what I found in the past is, it's a Board willing to discuss it. And so I don't want to commit the Board to anything deeper than that, but it's a case of we had a debt-free balance sheet 2.5, 3 years ago. The debt we have on the balance sheet has solely been from buying back of shares and in an environment where we continue to pay dividend at a very similar rate that we have paid in the past. So we've demonstrated a willingness to do in the past. I believe the willingness would exist during the future.

是的。我相信，我們目前的授權額度是130萬美元。我還沒有和董事會討論過增加這筆資金。不過，根據以往的經驗，董事會是願意討論這個問題的。所以我不想讓董事會做出任何超出這個範圍的承諾，但情況是這樣的：兩三年前，我們的資產負債表上沒有任何債務。我們目前的債務完全來自股票回購，而且我們一直保持著與過去非常接近的股利支付水準。所以，我們過去已經展現了這種意願。我相信未來我們也會保持這種意願。

And I'll couch it with one caveat. We are boringly Midwestern conservative. And it took us some discussions to take on the first layer of debt that we did. But we also looked at it from a standpoint from a financial decision. I don't want to say it was a no-brainer, but it was an easy decision. And I think I would have a Board that would be open to the conversation, but I've not had that conversation beyond a $1.3 million authorization we have right now.

我還要補充一點。我們是典型的中西部保守派。當初決定承擔第一筆債務時，我們也經過了一番討論。但我們也從財務角度考慮過這個問題。我不想說這是個不假思索的決定，但確實很容易做出。我認為董事會成員會願意就此展開討論，但我目前還沒有就130萬美元的授權範圍之外的事項進行過深入探討。

Okay. And if you don't mind my squeezing one last question in here. Is there any update that you can provide us for with on the store openings and closing for the rest of the year?

好的。如果您不介意的話，我想再問最後一個問題。您能否提供今年剩餘時間門店的開業和關閉計劃的最新資訊？

I would say the pace that you've seen in 2015 and 2016 as it relates to store closings, that remains. One of the things that I believe is important to our business today is that every day you rationalize your business with a view towards 5 to 10 years from now. It's a healthy exercise every day. Are there markets where I believe we will have more stores today than -- five years from now than what we have today? Absolutely. But there are markets where I believe in an environment where you're adding Onsites, where you're adding vending that our business might morph in certain markets. I'm not ready to commit to what that means, but it means that from an absolute number standpoint, but from a philosophical perspective we are always looking at what is the best business model, what is the best structure to our channel to grow our business long term.

我認為，2015年和2016年門市關閉的速度仍然保持。我認為，對我們今天的業務而言，至關重要的一點是，每天都要著眼於未來5到10年，對業務進行合理調整。這是一種有益的日常習慣。是否存在一些市場，我認為五年後我們的門市數量會比現在更多？當然存在。但在某些市場，隨著現場服務（Onsites）和自動販賣機的增加，我們的業務模式可能會改變。我目前還無法確定具體變化，但從絕對數量的角度來看，以及從理念層面來看，我們始終在尋找最佳的商業模式和通路結構，以實現業務的長期成長。

Thanks very much.

非常感謝。

You bet.

當然。

Our next question comes from Ryan Merkel with William Blair. Your line is open.

下一個問題來自瑞安·默克爾和威廉·布萊爾。您的電話已接通。

Hey, Dan. Just want to go back to June. You mentioned construction was a bit slow, and that might continue. But the fastener number was pretty weak. And I'm just curious, can you flesh that out a little bit? What drove that weakness? Is that temporary? And then just comment, you had a pretty weak May and June. Is the industrial economy still stabilizing in your mind, or are things maybe potentially getting a bit worse here?

嗨，丹。我想回到六月的情況。你提到建築業有點低迷，而且這種情況可能會持續下去。但是緊固件的數量確實很疲軟。我很好奇，你能詳細說說嗎？是什麼原因導致了這種疲軟？這是暫時的嗎？另外，你五月和六月的表現都很差。你覺得工業經濟還在穩定嗎？還是情況可能正在惡化？

I think they potentially got a little bit worse. And sometimes that's a hard one to gauge, Ryan, because a lot of our internal information as it relates to some of the plant shutdowns is more anecdotal of talking to our regional VPs around the country and kind of getting from them a feel for what we're seeing, or what the impact is, but very much a weakening.

我認為情況可能略有惡化。瑞恩，有時很難判斷，因為我們許多關於工廠停產的內部資訊都來自與全國各地區域副總裁的交流，從他們那裡了解我們所看到的情況或影響，但總體而言，情況確實在惡化。

In the case of the construction question you raised, the point that I was making there is the fact that we saw it particularly weak with energy customers. And I don't know that there's enough -- I don't know that the oil price is such that there's going to be a rush back to any kind of new construction there, new activity there. I think it's going to be idle for a period of time.

關於您提出的建築問題，我當時想表達的是，我們發現能源產業的市場尤其疲軟。我不認為目前的油價足以刺激任何新的建設項目或經濟活動。我認為這種停滯狀態會持續一段時間。

In the case of fasteners, again that was very much related -- that was amplified by the fact that we had some large customers that were shut down and it really hit the radar. And that's -- what you really see when that shutdown occurs, it hits the OEM fastener, because they're shutting down their production. They are still doing maintenance, so you might not see it in the non-fastener. But you see it in the fastener number.

就緊固件而言，情況也密切相關——一些大客戶停產更是加劇了這個問題，引起了廣泛關注。停產發生時，最直接的影響體現在OEM緊固件上，因為他們的生產也隨之停止。雖然他們仍在進行維護，所​​以你可能在非緊固件產品中看不出影響，但在緊固件產品的數量上卻能明顯感受到。

It's strange, I guess, to hear about shutdowns in June, and then there's going to be yet more shutdowns in July. Is this just a unique --

我覺得很奇怪，六月就聽說要停工，七月又要停工。這只是個特例嗎？

Well, it's different customers. In the June was a spillover of Memorial Day week.

嗯，顧客群不一樣了。六月的客流量是陣亡將士紀念日假期那週的溢出效應。

Got you.

抓到你了。

But it's different customers.

但顧客群體不同。

Right. Okay. And then I guess just on the July commentary, you already mentioned that you saw weakness and shutdowns around the Fourth. Can you help us, I guess, qualitatively. I know you don't like to talk about the current month, but is it going to show up in the July numbers? Do we need to consider it for modeling purposes? I guess, should we think about normal sequentials possibly missing that again in July?

好的。那麼，關於七月份的評論，您之前提到過，您觀察到7月份前後經濟疲軟，出現了停擺。能否從定性的角度幫我們分析一下？我知道您不太喜歡談論當月的情況，但這些因素會反映在七月的數據中嗎？我們在建模時是否需要考慮這些因素？我想，我們是否應該考慮到七月的正常週期資料可能再次忽略這些因素？

June had some big impacts. And so from a sequential perspective, I'm not willing to concede that normal sequential won't be there. I honestly don't know, Ryan. But I'm not necessarily willing to concede it because some of the shutdowns which were extended in June, they're back in full force now. And so that will give us some lift from June to July. And I don't even want to speculate on July 4 week.

六月的影響很大。所以從順序來看，我並不認為正常的順序會消失。說實話，瑞恩，我也不知道。但我並不一定願意承認這一點，因為六月延長的一些封鎖措施現在已經全面恢復了。所以這會為六月到七月帶來一些提振。至於七月四日那一週的情況，我甚至不想妄加猜測。

Okay, fair enough. Just lastly, with Onsite do you have enough examples now that you can be pretty confident the stores can replace the lost sales to Onsite?

好的，沒問題。最後，關於線上銷售，您現在是否有足夠的案例，讓您有信心實體店能夠彌補線上銷售造成的銷售損失？

We don't have enough time yet. We believe it to be true. History has said it's true, but that history is on a relatively small sampling. But it's enough that we think it's -- if you think about what's really happening is, we're taking an existing relationship and we're stepping deeper into their business. And we have proven history that says we can grow faster with that customer.

我們時間還不夠。我們相信這是真的。歷史也證明了這一點，但歷史樣本相對較小。不過，這足以讓我們相信——如果你仔細想想，我們實際上是在利用現有的合作關係，更深入地了解他們的業務。而且，我們已經用歷史經驗證明，與這樣的客戶合作，我們可以實現更快的成長。

Let's say the part about the remaining store, you have $100,000 store that we pull a $30,000 customer out of it and it becomes a $70,000 store. I believe based on history a $70,000 store can grow faster than $100,000 store. And I believe with the market presence they already have, they will have the ability to snap back quickly. But let's just say we're completely wrong and that $70,000 residual store can't grow any faster. I think what we're doing with that $30,000 customer is the right decision, regardless of the aftermath. But that other $70,000 of business won't be harmed by carving that customer out. It can only be helped.

假設我們把剩下的那家店的年營業額從10萬美元的店裡抽走一個價值3萬美元的客戶，讓它變成7萬美元的店。根據歷史經驗，我相信7萬美元的店家成長速度會比10萬美元的店快。而且我相信，憑藉他們現有的市場份額，他們有能力迅速恢復。但假設我們完全錯了，那家7萬美元的店家成長速度無法再提升了。我認為，無論結果如何，我們對那3萬美元客戶的處理方式都是正確的。而那7萬美元的業務不會因為抽走這個客戶而受到損害，反而會受益。

Right. Okay, great. Thank you.

好的，太好了，謝謝。

Our next question comes from Adam Uhlman with Cleveland Research. Your line is open.

下一個問題來自克里夫蘭研究公司的亞當·烏爾曼。您的提問已接通。

Hi, good morning.

您好，早安。

Hi Adam.

嗨，亞當。

I guess the first question is a clarification for Sheryl. You'd gone through some of the cost drivers for the quarter between new employee, occupancy and transport. I guess, could you tell us what the year-over-year expense increase was for each of those categories, just for the second quarter, please?

我想第一個問題是為了向謝麗爾澄清一下。您之前已經分析了本季的一些成本驅動因素，包括新員工入職、辦公室佔用和交通運輸。我想請您告訴我們，第二季這幾個類別的年比支出成長是多少？

Yes, I will. Year-over-year net employee costs were up about $7 million. Occupancy year over year was up about $6 million. Transportation expenses year over year were up about $1.2 million.

是的，我會的。員工淨成本年增約700萬美元。入住率較去年增加約600萬美元。交通運輸費用較去年增加約120萬美元。

Okay, thank you. And then back to the gross margin question from earlier. Historically the second half has been a bit weaker than what we've seen in the second quarter. And you guys have provided some good detail on the inventory write-down headwinds that you have in the second quarter. I guess, beyond that are there any other items that we should keep in mind as to being perhaps a tailwind or additional headwinds to gross margin, just for the back half of the year?

好的，謝謝。那麼回到之前提到的毛利率問題。從歷史數據來看，下半年的毛利率通常比第二季略低。你們已經詳細分析了第二季庫存減損帶來的不利影響。我想，除此之外，還有哪些因素可能會對下半年的毛利率產生正面或負面的影響呢？

Well, I guess the primary tailwind would be the piece of the activity we had in the second quarter that I believe is largely behind us, which is about 10 basis points. Short of that, it's about what we do from an execution standpoint and what happens to our fastener business.

嗯，我認為主要的利多因素是我們第二季度的一些業務活動，這些活動目前看來已經基本結束，大約能帶來10個基點的成長。除此之外，關鍵在於我們執行方面的表現以及緊固件業務的發展。

Okay, got you. Thanks very much.

好的，明白了。非常感謝。

You bet. With that, I see we're at actually 46 minutes past the hour. Again, want to thank everybody for taking time this morning to listen to the Fastenal earnings call. The vision and perspective portion I think is important. We will do better. Thank you.

當然。這樣看來，現在已經過了整點46分鐘了。再次感謝大家今天早上抽空收聽Fastenal的財報電話會議。我認為願景和展望部分非常重要。我們會做得更好。謝謝。

Thank you, ladies and gentlemen. That does conclude today's conference. You may all disconnect, and everyone have a great day.

謝謝各位。今天的會議到此結束。大家可以斷開連線了，祝大家今天過得愉快。