快扣 (FAST) 2018 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Fastenal Company 2018 Second Quarter Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded.

各位女士、先生，大家好，歡迎參加 Fastenal 公司 2018 年第二季財報電話會議。（操作說明）提醒各位，今天的會議正在錄音。

I would now like to turn the call over to Ms. Ellen Stolts of Investor Relations. Ma'am, you may begin.

現在我將把電話轉交給投資者關係部的艾倫·斯托爾茨女士。女士，您可以開始了。

Welcome to the Fastenal Company 2018 Second 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 will start with a general overview of our quarterly results and operations, with the remainder of the time being open for questions and answers.

歡迎參加 Fastenal 公司 2018 年第二季財報電話會議。本次電話會議將由我們的總裁兼執行長丹·弗洛內斯和我們的財務長霍爾頓·劉易斯主持。電話會議將持續最多 1 小時，首先將對我們的季度業績和營運情況進行總體概述，剩餘時間將用於提問和解答。

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, 2018 at midnight Central Time.

今天的電話會議是 Fastenal 的專有演示，並由 Fastenal 進行錄音。未經 Fastenal 同意，不得對今天的通話進行任何錄音、複製、傳輸或分發。本次電話會議將透過 Fastenal 投資者關係主頁 investor.fastenal.com 在網路上進行音訊同步直播。網路直播的回放將在網站上提供，直至2018年9月1日中部時間午夜。

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.

提醒各位，今天的電話會議可能涉及公司未來的計劃和前景。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。值得注意的是，公司的實際業績可能與預期業績有重大差異。

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.

可能導致實際結果與預期結果不同的因素已包含在公司最新的收益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。

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

現在我將把電話交給丹‧弗洛內斯先生。

Thank you, Ellen, and good morning, everybody, and thank you for participating in today's call. I realize at this stage of the economic cycle, our industry is a bit out of favor. But however, I believe we have a good story to tell and I believe our moat is expanding in the marketplace.

謝謝艾倫，大家早安，謝謝大家參加今天的電話會議。我意識到，在目前的經濟週期階段，我們這個行業有點不受歡迎。但是，我相信我們有一個精彩的故事可以講述，而且我相信我們在市場上的護城河正在不斷擴大。

Let's start off by going to Holden's flip book. If I look at some of the highlights he called out, I'll start with -- I'm on the right page. I'll start with our nonresidential construction business is accelerating. In June, we hit 17%. In all honesty, I don't understand the strength behind it. I know the things we've done to build momentum there. I was very pleased with the progress we saw in the second quarter.

我們先來看看霍爾頓的翻頁書。如果我看他提到的一些重點，我會從──我找對了方向開始。首先，我們的非住宅建築業務正在加速發展。6月份，我們達到了17%。說實話，我不明白它的力量來源。我知道我們為了在那裡累積勢頭都做了些什麼。我對我們在第二季的進展非常滿意。

Our manufacturing demand is stable at very healthy levels. Roll that together, we grew our sales 13.1% in the second quarter. That's our fifth straight quarter of double-digit growth.

我們的製造業需求穩定在非常健康的水平。綜合來看，我們第二季的銷售額成長了13.1%。這是我們連續第五個季度實現兩位數成長。

So when I think about it, I think there's 2 things that are noteworthy there. One is we are growing on some good growth numbers, and I think that's a pretty strong statement. The second thing is a year ago in late March 2017, we acquired a great organization in Michigan called Mansco. We anniversaried that acquisition on March 31. So our growth in the second quarter was 100% organic and we put up, I think, a great number.

所以仔細想想，我覺得有兩件事值得注意。一方面，我們的成長數據表現良好，我認為這是一個相當有力的證明。第二件事是，一年前，也就是 2017 年 3 月下旬，我們收購了密西根州一家名為 Mansco 的優秀企業。3月31日是我們完成收購的週年紀念。因此，我們第二季度的成長完全是內生成長，而且我認為我們取得了非常好的成績。

If I look at -- on the operating income side, our operating income grew 13.3% which is a beautiful thing. The -- our reported EPS was $0.74. However, there was a discrete tax item in there. So really pleased with the earnings growth we saw in the quarter and our ability to manage our expenses. Holden will touch on some of this a little bit deeper later.

如果我看一下營業收入方面，我們的營業收入成長了 13.3%，這是一件非常好的事情。我們公佈的每股收益為 0.74 美元。然而，其中有一項單獨的稅收項目。我對本季的獲利成長以及我們控制支出的能力感到非常滿意。霍爾頓稍後會更深入地探討其中的一些問題。

Onsite vending signings are on pace to achieve our 2018 targets. As mentioned, we had significant operating leverage in the first -- in the second quarter, including employee-related expenses. And our gross margin was stable on a sequential basis, which I think was an important thing to note.

現場自動販賣機簽約工作正按計劃進行，預計將實現我們 2018 年的目標。如前所述，我們在第一季和第二季都存在顯著的營運槓桿效應，其中包括與員工相關的費用。我們的毛利率環比保持穩定，我認為這一點值得注意。

And the real key to the stability from Q1 to Q2 from my perspective is we did a little bit better job using our own trucks. We have always talked about the fact that we have a great trucking network we built over the last 35 years. We have a structural advantage in the marketplace. And frankly, the marketplace is becoming increasingly more expensive. And so our ability to divert some of our shipments off of third-party carriers on to our own network serve us well in any economy. It served us really well in the second quarter.

從我的角度來看，第一季到第二季保持穩定的真正關鍵在於，我們更好地利用了自己的卡車。我們一直在談論我們在過去 35 年裡建立起的強大的貨運網絡。我們在市場上擁有結構性優勢。坦白說，市場價格正變得越來越高。因此，無論經濟情勢如何，我們都能將部分貨物從第三方承運商轉移到我們自己的網絡，這對我們大有裨益。它在第二季度幫了我們很大的忙。

In the context of normal seasonality, our operating cash flow improved in the second quarter. We repurchased some stock. And as we announced last night, we increased our third quarter dividend from the $0.37 we have been doing in the first 2 quarters to $0.40.

在正常的季節性因素影響下，我們的經營現金流在第二季有所改善。我們回購了一些股票。正如我們昨晚宣布的那樣，我們將第三季股息從前兩個季度的 0.37 美元提高到 0.40 美元。

Flipping to the Page 4 of Holden's book. We signed 81 Onsites in the second quarter. That's a 19% increase over the second quarter of 2017. And we finished the quarter with 761 active sites. That's a 57% increase over last year. Our 2018 goal for Onsite signings remains somewhere between 360 and 385.

翻到霍爾頓書的第4頁。第二季我們簽訂了 81 份現場服務合約。與 2017 年第二季相比，成長了 19%。本季末，我們共有 761 個活躍站點。比去年增長了57%。我們 2018 年現場簽約的目標仍然是 360 到 385 個。

Total in-market locations were 3,051 at the end of the quarter, up over 2,937 a year ago. What you're seeing before your eyes is a morphing of the Fastenal distribution model. We are consolidating some locations throughout the marketplace, probably a little bit more in the major metros where we have a wide smattering. And some of those locations are morphing into Onsites and so we continue to expand our in-market presence.

截至本季末，市場內門市總數為 3,051 家，比一年前的 2,937 家有所增加。你眼前所看到的，是 Fastenal 分銷模式的演變。我們正在整合市場上的部分門市，尤其是在我們門市分佈較廣的大都市，整合力道可能會更大一些。其中一些地點正在轉變為現場服務點，因此我們將繼續擴大我們在市場上的影響力。

We signed 5,537 vending devices in the second quarter, a 13.5% increase over the second quarter of '17. Our installed base grew 14.3%. And the sales through our vending devices grew in excess of 20%. Our 2018 goal is to sign 21,000 to 23,000 and we feel good about that goal at this point.

第二季我們簽約了 5,537 台自動販賣機，比 2017 年第二季成長了 13.5%。我們的用戶基數成長了 14.3%。透過我們的自動販賣機實現的銷售額成長超過 20%。我們2018年的目標是簽下21,000到23,000名球員，目前我們對這個目標充滿信心。

National Accounts daily sales grew 19% in the second quarter. In June, we broke 20%. I have to say that tasted pretty good and I was proud of the team and everything they're doing to grow their business. Outside the U.S., our sales continued to well outpace the company and we're seeing great results within the U.S. and throughout the rest of the world.

第二季全國客戶日銷售額成長了 19%。六月，我們突破了20%。我必須說，味道相當不錯，我為團隊以及他們為發展業務所做的一切感到自豪。在美國以外，我們的銷售額繼續遠遠超過公司整體水平，我們在美國和世界其他地區都取得了顯著的業績。

Before I turn over to Holden, I just wanted to share some commentary and [call list] in the category of trying to be ever more transparent in what we do and what we're seeing in the marketplace. And at 7:00 this morning, Holden had this typical call with our leadership group, our Regional Vice Presidents, our VPs that lead up support areas as well as our officers. He discussed through the earnings release to give them more insight into what's going -- what we saw in the business. And he gives me a few minutes at the end to throw in a few thoughts and I just thought to share with you some of the thoughts that were covered on that call.

在將發言權交給霍爾頓之前，我想分享一些評論和[電話清單]，旨在讓我們在工作內容和市場觀察方面更加透明。今天早上 7 點，霍爾頓與我們的領導團隊、區域副總裁、負責支援領域的副總裁以及我們的管理人員進行了例行電話會議。他透過財報發布會進行了講解，以便讓大家更深入地了解公司的發展情況——我們在業務中看到了什麼。最後他給了我幾分鐘時間發表一些想法，我想和你們分享那次通話中談到的一些想法。

The first one talked about with the group is we really decided that hitting goal matters. We have hit goal -- January, we missed goal. Weather messes up a little bit, so we came in just shy of goal. Since February, we've hit goal every month. And we have a big goal number in June I was pleased to say we hit it. And in total for the first and second quarters, we hit goal. Hitting goal consistently gives you confidence to invest in where you're going.

我們和團隊討論的第一件事就是，我們真正決定了達成目標的重要性。我們一月達到了目標，但一月我們沒能達到目標。天氣有點不給力，所以我們最後差一點就進球了。自二月以來，我們每個月都達到了目標。我們六月設定了一個很大的目標，我很高興地說，我們實現了這個目標。第一節和第二節的總比分，我們達到了目標。持續達成目標會讓你更有信心投資你正在前往的方向。

From a gross margin perspective, we maintained our gross margin. And the mantra of, hey, just use your -- use our trucks played out really well. We have a great, as I mentioned earlier, a great trucking network and we're tapping into it a little bit more.

從毛利率的角度來看，我們維持了毛利率水準。「嘿，用你們的——用我們的卡車」這種口號發揮得非常好。正如我之前提到的，我們擁有一個非常棒的貨運網絡，我們正在更多地利用這個網絡。

We've been having a lot of discussions about expenses. And this is one where, if I'm looking at myself in the mirror, I have to say either we're not communicating really well or you're not listening. I think it's probably more we need to step it up on how we communicate so I'm taking that piece on from the standpoint, after the first quarter when we grew our labor expense about 14%, I got a lot of phone calls from shareholders and the sell-side community really wondering what the heck is going on that you're growing your expenses so fast and you're not able to leverage.

我們一直在討論開支問題。如果我照鏡子審視自己，我必須說，要嘛是我們溝通不暢，要嘛是你根本沒在聽。我認為我們更需要加強溝通，所以我從這個角度來看這個問題。在第一季我們的勞動成本成長了約 14% 之後，我接到了很多股東和賣方人士的電話，他們真的很想知道到底發生了什麼，為什麼你們的支出成長如此之快，而且你們無法利用槓桿。

What we've been talking about the last 2 years is the investments we're making in growth drivers. We made dramatic investments in our ability to sign vending devices. We made tremendous investments in our ability to implement and improve our Onsite network. We made sizable investments over a year ago in our ability to grow our e-commerce locally.

過去兩年我們一直在討論的是成長驅動因素的投資。我們在自動販賣機簽名能力方面進行了大量投資。我們在實施和改進現場網路方面投入了巨資。一年多前，我們對提升本地電子商務能力進行了大量投資。

And the other piece is understanding the fundamentals of how we compensate. Historically, a sizable piece of conversation within Fastenal has been incentive-based. If you read our proxy, you can see that if we grow our -- if we don't grow our earnings, our leadership better enjoy living on base pay because that's the key driver of incentive comp.

另一方面，也要了解我們如何進行補償的基本原理。從歷史上看，Fastenal 內部相當一部分討論都是圍繞著激勵機制展開的。如果你閱讀我們的委託書，你會發現，如果我們不提高收入，我們的領導階層最好享受靠基本工資生活，因為這是激勵薪酬的關鍵驅動因素。

In the first quarter of 2018, we added $21 million in pretax to our business. That was double the $11 million we had added the year before when we compare '17 to '16. That causes our incentive comp to grow quite dramatically. And if I look at the 14% labor growth in the first quarter, 6 points of it comes just from expanding incentive comp. One point of it comes from our Mansco acquisition and the other 7 comes from adding people in the organization.

2018 年第一季度，我們的稅前業務收入增加了 2,100 萬美元。與 2016 年相比，2017 年的增幅是前一年的 1,100 萬美元的兩倍。這導致我們的激勵薪酬大幅增加。如果我看一下第一季 14% 的勞動成長率，其中 6 個百分點只是因為激勵性薪資的增加。其中 1 點來自我們對 Mansco 的收購，另外 7 點來自組織內人員的增加。

If I look at the transition from Q1 to Q2, you saw our operating -- our labor expense growth drop 400 basis points from 14% to 10%. What really changed there? We put a little bit of a pause on hiring. We had gotten ahead of ourselves, but that wasn't the real change. The real change was we anniversaried Mansco. And our incentive comp, while at a high level, is not disproportionately higher than second quarter of 2017 because in the second quarter of 2017, we added about $27 million in pretax. In the second quarter of '18, we added $31 million. The delta there isn't as great. So our team, through authorization, are enjoying enhanced incentives, but they were second quarter last year so the comp is different.

如果我看一下從第一季到第二季的過渡情況，你會發現我們的營運——我們的勞動成本成長從 14% 下降了 400 個基點至 10%。那裡究竟發生了什麼變化？我們暫時停止了招募。我們操之過急了，但這並不是真正的改變。真正的改變是我們慶祝了曼斯科成立週年。雖然我們的激勵薪酬水準很高，但與 2017 年第二季度相比並沒有不成比例地高，因為在 2017 年第二季度，我們的稅前收入增加了約 2,700 萬美元。2018 年第二季度，我們新增了 3,100 萬美元。那裡的差值沒有那麼大。因此，我們的團隊透過授權獲得了更高的激勵，但這是去年第二季的情況，所以薪酬有所不同。

I apologize we haven't -- that I haven't communicated that better, but we saw a nice change in our ability to leverage. Frankly, I didn't think it was going to happen until the third quarter and the team did a nice job of deciding to move it up 3 months.

很抱歉我們沒有——或者說我沒有更好地傳達這一點——但我們在利用資源方面看到了顯著的變化。坦白說，我原本以為要到第三季才會發生，球隊決定提前 3 個月進行，做得非常出色。

If I look at the MSAs -- and I've started to talk about that more. I've talked about that in the President's letter. I've talked about that in our -- at our annual meeting and in previous discussions. We're really learning a lot by really taking a good look at those 100 large MSAs, communities over 0.5 million. What is our plan in those markets? Something that's jumped out for me, and this isn't an exclusive thing to the MSAs, but it expands out when I look at it from things we're doing.

如果我看一下 MSA——我已經開始更多地談論這個話題了。我在總統的信中談到了這一點。我曾在我們的年會和之前的討論中談到過這一點。透過仔細研究這 100 個大型都會區（人口超過 50 萬的社區），我們學到了很多。我們在這些市場中的計劃是什麼？讓我印象深刻的一點是，這並非 MSA 獨有的問題，但當我從我們正在做的事情來看時，這個問題就更加突出了。

And so yesterday at our board meeting, our -- the individual that leads the e-commerce drive -- within Fastenal, that's a relatively small business because there's so many things we do that don't lend themselves to e-commerce. We do Onsites. We do our local branch network. In many cases, we're fulfilling things for our customers that they don't even have to order and so e-commerce really isn't part of the Fastenal model.

所以昨天在我們的董事會上，我們——負責 Fastenal 電子商務業務的負責人——這是一個相對較小的業務，因為我們做的很多事情都不適合電子商務。我們提供現場服務。我們經營本地分公司網路。在許多情況下，我們為客戶履行他們甚至不必訂購的義務，因此電子商務實際上並不屬於 Fastenal 的商業模式。

But one thing that's really -- was interesting to see is that as -- we've been quietly building momentum in our ability to go-to-market in a bunch of different ways. And if I look at true local e-commerce transactions where we're taking advantage of our last mile advantages, that's about a $100 million business that's growing 30% a year. I think that speaks well. And forget the fact that's e-commerce. It speaks well to the capabilities of the Fastenal organization to fulfill and to serve customers' needs. And the interesting thing is we're seeing really nice growth within our Onsites as well. It's about ease of doing business.

但有一件事確實很有趣，那就是我們一直在悄悄地增強以各種不同方式進入市場的能力。如果我觀察真正的本地電子商務交易，也就是我們利用最後一公里優勢的那部分交易，那是一個價值約 1 億美元的業務，並且每年增長 30%。我認為這說明了很多問題。別管那是電子商務。這充分體現了 Fastenal 公司滿足客戶需求的能力。有趣的是，我們的現場服務也取得了非常好的成長。關鍵在於讓企業更容易開展業務。

If I -- I'm also -- and bear with me a second. I like milestones. Sometimes, they're fun to point out. And this is probably a ridiculous one, but bear with me. If I go back to 1987, the year we went public, we had about 50 locations back then. We had 300-and-some employees. For the year, we did just under $20.3 million. I believe it was $20,294,000 or something like that. In the month of June, on a daily basis, we broke $20.3 million. So in June of 2018, we did more revenue every day than we did 31 years ago, that company that went public. That's a pretty neat milestone and I'm proud of what our team has done in that 30-some years to accomplish that. Said another way, we're 254x bigger than we were 31 years ago, that's kind of fun.

如果我──我也是──請稍等片刻。我喜歡里程碑。有時候，指出這些小事也挺有趣的。這可能聽起來很荒謬，但請聽我慢慢道來。如果我回到 1987 年，也就是我們上市的那一年，當時我們大約有 50 個營業地點。我們當時有300多名員工。這一年，我們的收入略低於 2,030 萬美元。我記得好像是2029.4萬美元左右。六月，我們每天的收入都突破了 2,030 萬美元。因此，在 2018 年 6 月，我們每天的收入都比 31 年前那家上市的公司還要多。這是一個非常棒的里程碑，我為我們團隊在過去三十多年的成就感到自豪。換句話說，我們現在的規模是 31 年前的 254 倍，這還挺有趣的。

I also thank our regionals and our VPs and RVPs for a great quarter. I think they really demonstrated the power of the Blue Team and what we can accomplish in the marketplace and some of our structural advantages.

我還要感謝我們的區域經理、副總裁和區域副總裁們，感謝他們為本季取得的優異成績。我認為他們真正展現了藍隊的實力，以及我們在市場上能夠取得的成就和我們的一些結構性優勢。

I'm blessed from the standpoint I have a wife that's not afraid to challenge me on most things in life, personal and business. And there were days she was asking me some questions about the quarter and I told her I can't tell you because it's not public yet. But all kidding aside, she was asking about what we're seeing from the tariffs. She said, "You think your strength you're seeing is coming from the tariffs in the marketplace?" And I answered really quickly and with confidence. I said, "Absolutely not." I said, "What our business is about is we're a supply chain partner and most of our customers are able to operate in a very lean environment because of what we do."

從某種意義上說，我很幸運，因為我的妻子在生活、個人和事業上的大多數事情上都敢於挑戰我。有時候她會問我一些關於季度的問題，我會告訴她我不能告訴你，因為還沒公開。玩笑歸玩笑，她是在問我們從關稅方面看到了什麼。她說：「你認為你目前的優勢來自於市場上的關稅嗎？」我迅速且自信地回答。我說：“絕對不行。”我說：“我們的業務是作為供應鏈合作夥伴，我們的大多數客戶之所以能夠在非常精簡的環境下運營，正是因為我們所做的一切。”

And I don't believe there's any impact from the LIFT other than if there's any impact to any of our customers in their activity that would create -- but there is no inventory build in the cycle from what I'm seeing, which caused me to immediately go to Holden and say, "Hey, Holden, this is what I told my wife. Am I accurate?" And he canvassed our RVP group and he got a resounding no, we're not seeing that all. So I thought I'd address that in the context of the time.

我不認為 LIFT 會產生任何影響，除非它對我們任何客戶的活動產生任何影響——但就我所見，週期內沒有庫存積壓，這讓我立即去找 Holden 說：“嘿，Holden，這就是我告訴我妻子的。”我的判斷準確嗎？ 「他向我們的RVP小組進行了調查，得到的回答非常明確：不，我們根本沒有看到這種情況。所以我想結合當時的時代背景來談談這個問題。

Second question she had, which was actually just as good as the first, was how does Fastenal react in an environment like this? And I looked at her and I said, well, I gave her the proverbial I'm a farm kid and I learned at a young age you don't react to the weather. You plan for it because you can't change it. And this is just like the weather. It seems to change on a daily basis.

她提出的第二個問題，其實跟第一個問題一樣好，是 Fastenal 在這種環境下會有什麼反應？我看著她，說，嗯，我跟她說了句老話：我是個農家孩子，從小就明白你不能受天氣影響。你得提前做好計劃，因為你無法改變它。這就像天氣一樣。情況似乎每天都在變化。

What I can tell you is Fastenal's biggest strength is our field network, our branch and Onsite network. We, unlike any other regional, national or global distributor, we source a tremendous amount of product locally. And so we don't have a small centralized group that has to be really agile, although they are. We have 15,000 people working in our branch and Onsite network that are agile every day. So our ability, it's not easy to manage through it, but our ability to manage through it is stronger than anybody else in the marketplace. And I would -- going into a period like this, the confidence I have comes from the team we have on the ground and that makes it pretty exciting.

我可以告訴大家的是，Fastenal最大的優勢在於我們的現場網路、分公司和現場服務網路。與其他任何區域性、全國性或全球性分銷商不同，我們大量採購本地產品。因此，我們沒有一個必須非常靈活的小型集中式團隊，儘管他們實際上也很靈活。我們分公司和現場網路共有 15,000 名員工，他們每天都有彈性地工作。所以，雖然應對這種情況並不容易，但我們應對這種情況的能力比市場上任何其他公司都強。而且，進入這樣的時期，我的信心來自於我們一線的團隊，這讓我感到非常興奮。

When I was finishing up with the RVPs this morning, I didn't say this to them because I don't want to get weird on the call, but I thought back to a movie -- Gene Hackman is one of my favorite actors of all time. And I thought back to a movie he made back in the early '80s called Hoosiers. And at the end of the movie, he cites a line, as the scene is going dark, to his team that, I love you, guys.

今天早上我和區域副總裁們結束通話時，我沒有跟他們說這件事，因為我不想在通話中顯得尷尬，但我回想起一部電影——吉恩·哈克曼是我最喜歡的演員之一。我想起了他在 80 年代早期拍攝的一部電影，叫做《印第安納人》。在電影結尾，當畫面逐漸變暗時，他引用了一句台詞對他的團隊說：“我愛你們，夥計們。”

22 years ago, I joined the Fastenal organization. And I didn't join because of the growth of the organization. I didn't join because of the opportunities of the marketplace. And I didn't even join because of the great people. All 3 of those were true. I joined because I saw in Fastenal an organization that treats people differently than other organizations I'd seen in my prior experience. And I want to be part of that, in an organization where you're inclusive and you treat others well and you invite others to join. And the only requirement to join us, a willingness to learn and change, a willingness to help each other succeed and a willingness to be challenged by others and to be willing to challenge others to think big. When you have all that, you have a home at Fastenal. Come join us, we can do great things together. And I think you see it come through in a quarter like this and in what we're doing and the evolution over the last few years.

22年前，我加入了Fastenal公司。我加入並不是因為組織發展壯大。我加入並非因為市場機會。我加入公司甚至不是因為這群人很棒。這三點都屬實。我加入 Fastenal 是因為我發現這家公司對待員工的方式與我之前見過的其他公司截然不同。我想成為其中的一份子，加入一個包容他人、善待他人、並邀請他人加入的組織。加入我們唯一的要求是：願意學習和改變，願意互相幫助取得成功，願意接受他人的挑戰，也願意挑戰他人去思考更遠大的目標。當您擁有這一切時，您在 Fastenal 就擁有了一個家。加入我們吧，我們一起可以成就偉業。我認為，從本季的業績、我們正在做的事情以及過去幾年的發展演變中，都能看出這一點。

I'll close with 2 thoughts and I'll turn it over to Holden. My mom is having a double mastectomy at 11:00 this morning. I wish her well on that. I'm going to go visit her after the call, and Godspeed on her recovery. 60 days ago, my wife had the same surgery. And I'm proud to say that today, she looks and feels better than she ever has. So I'm thankful for organizations like (inaudible). Our medical in this nation could do great things.

最後我還有兩點想法，然後把話題交給霍爾頓。我媽媽今天上午11點要做雙側乳房切除手術。祝她一切順利。通話結束後我會去探望她，祝她早日康復。60天前，我妻子也做了同樣的手術。我很自豪地說，如今她看起來和感覺都比以往任何時候都好。所以我很感謝像（聽不清楚）這樣的組織。我們國家的醫療水準可以成就一番偉業。

With that, I'll shut up and turn it over to Holden. Thank you.

好了，我就不說話了，把事情交給霍爾頓吧。謝謝。

Thank you. Good morning. Why don't we go over to Slide 5?

謝謝。早安.我們不妨轉到第5張投影片？

As covered, the total and daily sales were up 13.1% in the second quarter. That's consistent with the growth that we logged in the first quarter of 2018. We estimate that pricing contributed between 50 and 100 basis points in the period, which is also in line with last quarter, although we should say that this quarter did have to grow over what were modest price increases from last year's Q2 and that did mask what was some incremental progress on price in the period.

如前文所述，第二季總銷售額和日銷售額均成長了 13.1%。這與我們2018年第一季取得的成長一致。我們估計，在此期間，價格因素貢獻了 50 到 100 個基點，這與上一季的情況一致。不過，我們應該指出，本季確實需要在去年第二季價格小幅上漲的基礎上實現成長，這掩蓋了本季價格方面取得的一些漸進式進展。

The quarter finished on a healthy note with June's daily sales growing up 13.5%. This represents a 13th straight month of organic daily sales growth ranging between 11.5% and 14.5% and that's despite the stiffening comparisons you've seen over the period.

本季以良好的勢頭收尾，6 月份的日銷售額增長了 13.5%。這標誌著有機日銷售額連續第 13 個月實現成長，增幅在 11.5% 到 14.5% 之間，即便在此期間的同比數據越來越高。

In addition to contribution from our growth drivers as Dan discussed, this growth is supported by what remains healthy macro conditions. The PMI averaged 58.7 in the second quarter and industrial production continued to expand at a low to mid-single-digit rate.

正如丹所討論的，除了成長動力帶來的貢獻之外，這種成長也得益於依然健康的宏觀經濟環境。第二季採購經理人指數 (PMI) 平均為 58.7，工業生產繼續以個位數低至中等的速度擴張。

Nonresidential construction continued to accelerate for us, leading our mix this quarter with growth of 15.5%. This includes growth of 17.4% in June. Manufacturing end markets remained stable at high levels growing 13.3% with sustained strength in most sub-verticals. And from a product standpoint, non-fasteners were up 14.8% and fasteners were up 11.1%. Both were in line with the first quarter levels, though it's worth noting that fasteners in June grew 13.5%, which is the fastest rate we've seen this cycle.

非住宅建築業持續加速發展，在本季以 15.5% 的成長領先我們的業務組合。其中包括6月份17.4%的成長。製造業終端市場維持穩定，高位成長 13.3%，大多數細分市場持續強勁成長。從產品角度來看，非緊固件產品成長了 14.8%，緊固件產品成長了 11.1%。兩者均與第一季水準持平，但值得注意的是，6 月份緊固件增長了 13.5%，這是我們在本輪週期中看到的最快增速。

From a customer standpoint, National Accounts were up 19.1% with 80 of our top 100 accounts growing. And in June, our National Accounts grew 20.4%. Growth in non-National Accounts continues to run in the mid to high single digits with roughly 66% of our branches growing in the second quarter.

從客戶角度來看，全國性客戶的銷售額成長了 19.1%，前 100 名客戶中有 80 名實現了成長。6 月份，我們的國民帳戶增加了 20.4%。非國民帳戶的成長繼續保持中高個位數，第二季度我們約有 66% 的分支機構實現了成長。

In terms of market tone, sentiment in the field remains constructive, especially as it relates to the nonemployment -- I'm sorry, nonresidential construction market. And the good demand of the past few quarters appears to be carrying into the second quarter of 2018.

就市場基調而言，業內情緒依然積極，尤其是在非就業——抱歉，非住宅建築市場方面。過去幾季的良好需求似乎延續到了2018年第二季。

Now over to Slide 6. Our gross margin was 48.7% in the first quarter of 2018, down 110 basis points versus the second quarter -- versus -- I'm sorry, our gross margin was 48.7% in the second quarter of 2018, down 110 basis points versus the second quarter of 2017. While mix is always a factor given where we're seeing our strongest growth, it was a relatively minor factor this quarter.

現在來看第 6 張投影片。 2018 年第一季度，我們的毛利率為 48.7%，比第二季度下降了 110 個基點——抱歉，2018 年第二季度的毛利率為 48.7%，比 2017 年第二季度下降了 110 個基點。雖然產品組合始終是我們成長最強勁的領域的重要因素，但本季它所扮演的角色相對較小。

There were 2 larger impacts. In the second quarter of 2017, we had a modest price increase ahead of anticipated higher product costs, so the large decline in the current period reflects the degree to which of those costs have caught up. Higher freight expenses were also a meaningful drag on the year-over-year basis.

還有兩起較大的影響事件。2017 年第二季度，由於預期產品成本上漲，我們進行了小幅漲價，因此本期價格大幅下降反映了這些成本上漲的程度。貨運費用上漲也對年比業績造成了顯著拖累。

Sequentially, on the other hand, our gross margin was flat. There were no big movers in either direction, but seasonality was offset by a little extra leverage due to the strong growth, a slightly lower mix drag and steps to counter increasing cost of freight and imports. Price-cost was slightly negative in the quarter and there is further work to do here. We do believe we'll make further progress in coming quarters.

另一方面，我們的毛利率則是環比持平。雖然沒有大幅波動，但強勁的成長、略微降低的產品組合阻力以及應對不斷上漲的貨運和進口成本的措施，抵消了季節性因素帶來的一些額外影響。本季價格成本略為負值，這方面還有進一步的工作要做。我們相信在接下來的幾個季度會取得進一步進展。

Our operating margin was 21.2% in the second quarter of 2018, flat on a year-over-year basis. Stronger seasonal volumes and the lapping of certain cost resets generated 110 basis points of cost leverage at an incremental margin of 21.5%.

2018 年第二季度，我們的營業利潤率為 21.2%，與去年同期持平。季節性銷售成長和某些成本重置的疊加效應，在21.5%的增量利潤率下，產生了110個基點的成本槓桿作用。

Looking at the pieces, we achieved 80 basis points of leverage over general corporate expenses and occupancy-related costs. The latter was up 3% with growth in vending being partly offset by flattish facility expenses.

從各項數據來看，我們在一般公司費用和與辦公室相關的成本方面實現了 80 個基點的槓桿效應。後者成長了 3%，自動販賣機的成長部分被設施支出基本持平所抵銷。

Employee-related costs were up 10% and that generated 50 basis points of leverage. We were restrained in our headcount additions this quarter with total and FTE headcount being up just 3.4% and 4.7%, respectively. This was aided further by inclusion of Mansco expenses in both periods and the moderation of the growth in incentive comp now that we have entered our second year of stronger growth.

員工相關成本上升了 10%，產生了 50 個基點的槓桿效應。本季我們在人員增加方面保持克制，總員工人數和全職員工人數分別僅增加了 3.4% 和 4.7%。此外，Mansco 的費用也計入了這兩個時期，隨著我們進入第二個增長強勁的年份，激勵薪酬的增長也趨於緩和，這進一步促進了上述結果。

Putting it all together, the second quarter of 2018 EPS were $0.74. Though excluding a onetime tax item, this would have been $0.70 or up 36% from the second quarter of 2017. In the absence of tax reform and the lower rate that it provides to us, EPS would have been $0.59 and growth would have been 13.8%. We continue to anticipate a tax rate of 24.5% to 25% absent refinements in the application of or discrete events arising from recent tax reform.

綜合來看，2018 年第二季每股收益為 0.74 美元。如果不計入一次性稅收項目，這將為 0.70 美元，比 2017 年第二季度增長 36%。如果沒有稅收改革及其帶來的較低稅率，每股收益將為 0.59 美元，成長率將為 13.8%。我們仍預期稅率為 24.5% 至 25%，除非最近的稅務改革在適用方面有所改善或出現特殊情況。

Turning to Slide 7. We generated $152 million in operating cash in the second quarter of 2018 or 72% of our net income. Second quarter is a usually lower cash-generating period due to our having 2 tax payments. Still, we were pleased that the conversion rate in the current quarter was above the 57% average conversion of the past 5 years, which reflects the lower tax rates. Based on our expectations for continued favorable cash flow, we have increased our quarterly dividend from $0.37, which we established in the first quarter of 2018, to $0.40 for the third quarter.

請看第 7 張投影片。 2018 年第二季度，我們產生了 1.52 億美元的經營現金，佔淨收入的 72%。第二季通常是現金流較低的時期，因為我們有兩筆稅需要支付。不過，我們很高興本季的轉換率高於過去 5 年 57% 的平均轉換率，這反映了較低的稅率。基於我們對持續良好現金流的預期，我們將季度股利從 2018 年第一季設立的 0.37 美元提高到第三季的 0.40 美元。

Net capital spending in the second quarter of '18 was $25 million, bringing our year-to-date outlays to $53.8 million, consistent with the first 2 quarters of 2017. However, this reflects mostly timing and we would expect higher capital spending in the second half of 2018 for expansions and upgrades of hubs and for property purchases. We've also identified a need to increase our spend for vending equipment given the strength that we're seeing in that growth driver and, as such, we are increasing our full year 2018 net capital spending projection to $158 million from our previous $149 million.

2018 年第二季淨資本支出為 2,500 萬美元，使我們年初至今的支出達到 5,380 萬美元，與 2017 年前兩季的情況一致。然而，這主要反映了時間因素，我們預計 2018 年下半年將有更高的資本支出用於樞紐的擴張和升級以及房地產購買。鑑於自動販賣機這一成長驅動因素的強勁勢頭，我們也意識到需要增加在該領域的支出，因此，我們將 2018 年全年淨資本支出預測從先前的 1.49 億美元提高到 1.58 億美元。

We increased funds paid out in dividends by 15% to $106 million and repurchased $40 million in stock in the period. We finished the quarter with debt at 16% of total capital below last year and at levels that provide ample liquidity to invest in our business and pay our dividend, which we've actually increased for the third quarter.

在此期間，我們將發放的股利增加了 15%，達到 1.06 億美元，並回購了價值 4,000 萬美元的股票。本季末，我們的債務佔總資本的 16%，低於去年同期水平，並且處於能夠提供充足流動性以投資於我們的業務和支付股息的水平，事實上，我們在第三季度提高了股息。

The picture for working capital was improved versus the first quarter. Inventories were up 11.4% in the second quarter of '18. Inventory on hand fell 5.5 days, which we view favorably in light of inflationary pressures and plans for additional inventory investments in the field throughout 2018. Receivables grew 19.6% in the second quarter of '18, expanding days by a little more than 3.5. This continue to be affected by growth in our National Accounts and international businesses as well as customers pushing payments past quarter-end. Fortunately, the intensity of this latter factor has moderated and we have not seen any meaningful change in [hard-to-reflect] balances.

與第一季相比，營運資金狀況有所改善。2018 年第二季庫存成長了 11.4%。庫存週轉天數減少了 5.5 天，考慮到通膨壓力以及 2018 年全年在該領域進行額外庫存投資的計劃，我們認為這是一個有利的局面。2018 年第二季應收帳款成長了 19.6%，帳期延長了 3.5 天多一點。這繼續受到國內客戶和國際業務成長以及客戶將付款期限推遲到季度末的影響。幸運的是，後一種因素的強度已經減弱，我們沒有看到（難以反映的）平衡發生任何實質變化。

That's all that we have for our formal presentation. And with that, operator, we'll take questions.

這就是我們正式報告的全部內容。好了，操作員，我們開始接受提問。

(Operator Instructions) And our first question will come from the line of Ryan Cieslak with Northcoast Research.

（操作說明）我們的第一個問題將來自 Northcoast Research 的 Ryan Cieslak。

The first question I had is looking at the June sales growth rate, particularly with fasteners, a big acceleration there from maybe what you guys were trending in May. Dan or Holden, maybe if you could peel back the onion a little bit and think about what's ultimately driving that, is it -- do you say it's a combination of both the market accelerating there, but also maybe some share gains? Just trying to get a better understanding on what's driving the acceleration in fastener growth there.

我的第一個問題是，關於 6 月的銷售成長率，特別是緊固件的銷售成長率，與你們 5 月的趨勢相比，出現了很大的加速成長。丹或霍爾頓，或許你們可以稍微深入分析一下，想想最終是什麼因素在推動這件事，是——你們認為這是市場加速發展以及市場份額增長共同作用的結果嗎？我只是想更了解是什麼因素推動了該地區緊固件市場的加速成長。

Yes. I'm not sure that I have a tremendous amount of granularity there for you. I would say that if I look at June, our fastener growth in most of our categories actually stepped up pretty nicely, right? And that's true of our OEM fasteners, which, no doubt, the Onsite growth is playing a role on that as is the general economic strength that we've seen, but construction fasteners were up quite a bit in June relative to even May as well or March or April. MRO was up as well. So I would say that it's fairly broad, but we've definitely seen the same sort of acceleration that we've seen in the construction business broadly. We've seen that in the construction fasteners, too. And so I would look at it and I would say that we're seeing stability relative to prior quarters in many categories. And in the construction piece, which is accelerating broadly, also we're seeing that from the fastener component of the construction, too. So that's probably what I would say about those pieces.

是的。我不太確定我能提供給你非常詳細的資訊。我想說，如果我看一下六月的數據，我們大多數類別的緊固件成長實際上都相當不錯，對吧？我們的 OEM 緊固件也是如此，毫無疑問，現場業務的成長以及我們所看到的整體經濟強勁勢頭都對此起到了一定作用，但與 5 月、3 月或 4 月相比，6 月份建築緊固件的銷量也大幅增長。MRO也上升了。所以我覺得影響範圍相當廣泛，但我們確實看到了與整個建築業類似的加速發展趨勢。我們在建築緊固件中也看到了這種情況。因此，我觀察後認為，與前幾季相比，許多類別都呈現穩定態勢。在建築領域，這一領域正在加速發展，我們也從建築的緊固件部分看到了這種趨勢。所以，這大概就是我對這些作品的評價。

Okay. Great. And then for my second question, really nice to see the operating leverage here in the quarter and the incremental margins within that range you've talked about. It feels like as you're getting the back half of the year, you continue to lap some of the headwinds you saw last year from an expense standpoint. And if I hear you right, you said price-cost dynamics, maybe there's some additional opportunity there. How do we think about incremental margins then into the back of the year? Is there anything that we should be keeping in mind from a negative standpoint or an offset that comes in that maybe keeps you at the low end of that range versus potentially getting into the higher end of that range?

好的。偉大的。我的第二個問題是，很高興看到本季的營運槓桿以及您提到的該範圍內的增量利潤率。感覺就像到了下半年，你仍然會遇到去年在支出上遇到的一些不利因素。如果我理解沒錯，你提到了價格成本動態，那或許還有一些額外的機會。那麼，到了下半年，我們要如何考慮利潤率的提升呢？從負面角度來看，有沒有什麼因素或偏差會導致你停留在該範圍的低端，而不是有可能進入該範圍的高端？

Yes. So what I would say is the components that drove it in the second quarter, I think those are intact in the third quarter. And when we're talking about the occupancy leverage, the general corporate leverage, the OSHA continue to be leverageable pieces of our overall mix. From an employee expense piece, yes, you're right. The -- we've lapped those resets and that will certainly be true in Q3. So that -- those pieces that led to this leverage this quarter, those are still very much intact as we go forward. You combine that with double-digit revenue growth, assuming that, that's what we achieved in the third quarter. And I think that, that is a formula to continue to make progress on the incremental margins, particularly because I would not expect the gross margin comp to be anywhere near as difficult, right? So I mean, we did 21.5 against that gross margin. It's fairly satisfying. And I think that where you're going with this, is should we do better? We should be. I think that the math would tell you that we should do better in Q3 than we did in Q2 from an incremental margin standpoint. The one piece that I will contribute to that is the strong work that was done by everybody at Fastenal to deliver that leverage in the quarter, that does also afford us the opportunity to keep investing in growth. And so the -- there is the potential that we may choose to take some of that growth and reinvest it in the business to sustain the type of growth rates that we're having. But yes, I would concur, Ryan. I think the pieces that drove this incremental margin are still intact as you go to Q3. We shouldn't have the same difficulty with the gross margin comp. And if we continue to grow quickly, I think that the prospects for doing better on incremental margin in the back half are still pretty strong.

是的。所以我想說的是，第二季推動公司發展的那些因素，我認為在第三季依然存在。當我們談到佔用率槓桿、一般企業槓桿時，OSHA 仍然是我們整體組合中可以利用的槓桿部分。從員工費用支出的角度來看，是的，你說得對。我們已經克服了這些重置，第三季肯定也是如此。所以，本季促成這種優勢的那些因素，在我們繼續前進的過程中仍然完好無損。如果再加上兩位數的營收成長（假設這是我們在第三季的成就），那就更好了。我認為，這是在利潤率方面繼續取得進展的公式，尤其是我不認為毛利率的比較會像利潤率那麼困難，對吧？我的意思是，我們實現了 21.5% 的毛利率。相當令人滿意。我認為你接下來要說的應該是，我們是否應該做得更好？我們應該如此。我認為，從增量利潤的角度來看，數學計算會告訴我們，第三季我們的業績應該會比第二季更好。我要貢獻的一點是，Fastenal 的每一位員工都付出了巨大的努力，才在本季度實現了這一目標，這也使我們有機會繼續投資於成長。因此，我們有可能選擇將部分成長收益再投資於業務，以維持我們目前的成長率。是的，我同意你的看法，瑞恩。我認為推動利潤成長的因素在第三季依然存在。我們不應該在毛利率比較方面遇到同樣的困難。如果我們繼續保持快速成長，我認為下半年在利潤率方面取得更好成績的前景仍然相當樂觀。

Our next question will come from Scott Graham with BMO Capital Markets.

下一個問題將來自 BMO 資本市場的 Scott Graham。

Three questions for you all. Number one, Holden, I'd harken back to the comments you made about a year ago that you kind of have to deal with 20 to 30 basis points of gross margin headwind from mix. Is that still a number that you would go with? And maybe talk a little bit about how you will backfill in the second half on that a little bit more. Secondly...

我有三個問題想問大家。第一，霍爾頓，我想回顧一下你大約一年前發表的評論，即你必須應對產品組合帶來的 20 到 30 個基點的毛利率逆風。你現在仍然會選擇這個數字嗎？或許還可以稍微談談下半場你會如何彌補這方面的不足。第二...

Scott, let me take that in order. And also, we're going to take 2, so think about the second question carefully before you give it.

斯科特，讓我按順序來。另外，我們還要問第二個問題，所以請在回答之前仔細考慮一下。

Sure, no problem.

當然沒問題。

As it relates to your first question, yes, the mix elements are changing. Again, with National Accounts growing as quickly as they are within the mix and with the Onsites growing as quickly as they are within the mix, they continue to contribute more to our growth overall each quarter. I think this quarter, the Onsites were good for 4% of our -- contributed to 4% growth in our business. And a year ago, that was 3.2%. Those are mix issues that we're -- we're happy to take those on, but it does push the margin down. And I still believe the 20% to 30% mix drag per year is the right number to think about. I haven't changed off those terms.

關於你的第一個問題，是的，混合元素正在改變。再次強調，隨著全國性客戶和現場服務業務在業務組合中快速成長，它們每季都繼續為我們的整體成長做出更多貢獻。我認為本季度，現場服務對我們 4% 的業務成長做出了貢獻，為我們的業務成長貢獻了 4%。一年前，這個數字是 3.2%。這些都是我們樂於解決的混合問題，但這確實會拉低利潤率。我仍然認為每年 20% 到 30% 的混合消耗量是一個值得考慮的正確數字。我沒有改變這些條件。

Good. Secondly, you've got some really good operating leverage at the operating expense line. Could you talk about the sustainability of that and how you're looking at that in the second half toward some of the incremental margin comments you made?

好的。其次，你們在營運費用方面擁有非常好的營運槓桿。您能否談談這種做法的可持續性，以及您在下半年如何看待您之前提到的一些利潤成長問題？

Yes, I mean, not a lot to add versus what I just contributed. Again, the pieces that drove it this quarter, I think those pieces are intact as you go into Q3 and Q4 in terms of lapping some of these expenses. But what we won't have is we won't have the difficult gross margin comp. And so you blend all that together, and there certainly is a path to doing better incremental margins in the third quarter and fourth quarter than what we did this quarter. The only caution I threw out there was we're afforded the opportunity to invest in our business because of the leverage that we achieved this quarter, and we might reroute some of that into sustaining the type of growth that we've enjoyed. And so I don't have a lot to add to that.

是的，我的意思是，比起我剛才說的，也沒什麼好補充的了。再次強調，本季推動業績成長的因素，我認為在進入第三季和第四季時，這些因素仍然保持不變，因為部分支出將會得到緩解。但我們不會面臨毛利率比較的難題。因此，將所有這些因素綜合起來，我們完全有可能在第三季和第四季實現比本季更好的利潤成長。我唯一提出的警告是，由於我們本季獲得的槓桿效應，我們有機會投資於我們的業務，我們可能會將其中的一部分重新分配到維持我們已經享受的那種成長。所以，我沒什麼好補充的了。

I guess what I'm trying to get at, Holden, simply is you have this gross margin headwind. It's not going to go away. Does that kind of get the entire company, particularly at the regional level, much more focused on their operating expenses to generate the leverage to offset that gross margin issue?

霍頓，我想表達的意思很簡單，就是你們的毛利率面臨不利因素。它不會消失。這樣一來，整個公司，特別是區域層面的公司，是否會更加關注營運費用，從而產生足夠的槓桿作用來抵消毛利率問題？

This is Dan. I'll just chime in quick. If you go back in time, a decade ago, we realized that we were talking about the pathway to profit. And in that discussion, we talked about the inherent profitability of the Fastenal business and how that gets enhanced over time and how when you look -- when I look at our most mature regions that frankly have a higher percentage of Onsite, and in many cases, National Accounts business than the company average, they're also our lowest operating expense businesses and typically our highest operating margin businesses. And it comes from -- part of the expense management comes from doing -- it's hard work. If you do it every day, you don't let things slip through your fingertips. You understand what's best-in-class across the organization. But part of it comes from the fact the inherent leverage that comes in the Fastenal model. When the average branch is doing 120 versus 100, you pick up hundreds of points of operating margin. When it goes from 120 to 150, you pick up expense leverage and the -- and only partial offset to that can come from, in fact, your gross margin. Typically, a branch doing 100 will lose 100 basis points of gross margin on its journey to 150 a month. But it will also shed 450 basis points of operating expense, and your net win is a 350-point win. And so it's really not allowing being a little bit lazy or a little bit lax on expense management today to let any of that slip through your fingertips. That economic model is what affords us to do what we're doing with Onsite.

這是丹。我簡單說幾句。回溯十年前，我們意識到我們當時討論的是通往獲利的道路。在那次討論中，我們談到了 Fastenal 業務固有的獲利能力，以及這種獲利能力如何隨著時間的推移而增強。我們也談到，當我們審視我們最成熟的地區時，坦白說，這些地區的現場服務和在許多情況下全國客戶業務的比例都高於公司平均水平，而這些地區的營運費用也最低，通常也是我們營運利潤率最高的業務。而費用管理的一部分來自於──這是一項艱苦的工作。如果你每天都這樣做，就不會讓事情從指縫間溜走。你了解公司內部哪些做法是業界最佳。但部分原因在於 Fastenal 模式固有的槓桿作用。當平均分產業績從 100 提升到 120 時，營業利潤率就能提高數百個百分點。當它從 120 增加到 150 時，你會獲得費用槓桿效應，而實際上，你的毛利率只能部分抵消這種影響。通常情況下，一個分行每月業績從 100 提升到 150，毛利率就會下降 100 個基點。但這也能減少 450 個基點的營運費用，你的淨收益將是 350 個基點。所以，今天真的不允許你在費用管理上稍微懈怠一點，或者稍微鬆懈一點，讓任何損失從你手中溜走。正是這種經濟模式使我們能夠利用 Onsite 來進行我們現在所做的工作。

And at the Analyst Day, if you recall, right, we showed a couple of lines. One was the gross margin declining over the past 30 years as we've invested in these growth drivers, and the other one is the SG&A as a percentage of revenues declining over 30 years as we leverage. And I would just point you to the SG&A percentage in the first half of this year has never been lower in the history of our company, and that's how the model is supposed to work. As Dan said, this leverage came through perhaps a quarter sooner than what we might have expected, but the model is working as we would have expected it to.

如果你還記得的話，在分析師日上，我們展示了幾條產品線。一方面，過去 30 年來，由於我們投資於這些成長驅動因素，毛利率一直在下降；另一方面，過去 30 年來，由於我們利用槓桿，銷售、一般及行政費用佔收入的百分比一直在下降。我還要指出，今年上半年銷售、一般及行政費用佔比是我們公司史上最低的，而這正是該模式應有的運作方式。正如丹所說，這種槓桿效應可能比我們預期的提前了一個季度顯現出來，但該模式的運作方式正如我們預期的那樣。

Our next question comes from David Manthey with Baird.

下一個問題來自 Baird 公司的 David Manthey。

First off, looking at that number of top 100 National Account customers experiencing growth, I guess, it was 80 this quarter. And Dan, in the earlier part of this decade, I think you were talking about 75 out of 100 was kind of normal. What is the historical low and high in that figure?

首先，從前 100 家全國性客戶中成長的客戶數量來看，我猜本季有 80 家。丹，在本世紀初，我想你當時說的是 100 分之 75 分算是正常水準。該數字的歷史最低值和最高值分別是多少？

I'm going off the hip here, Dave, so bear with me on that. I believe, when I go back to 2015, I think we had a quarter where we got down on the 40s. And as you know, that was not helpful to our business. The -- what I don't know here is obviously we have a solid economy. We also have some growth drivers at our fingertips that either weren't there or weren't contributing as high a level when I go back to 2015. The Onsite, as Holden mentioned, has changed the game. And 75% of our Onsites are with National Account customers, I believe that's the stat. It's in the 70s. And so we're seeing -- so it's what's the cause, what's the effect, or chicken and egg, or whatever analogy you want to use. The economy has given lift, but our growth drivers are getting a lift. The fact that our vending is operating at a really high level, that benefits all customers, including National Accounts. So -- but 80 is a really strong number. And when I go back to prior periods, we were able to grow our fasteners especially at this kind of rate. You needed to be in the 70s.

戴夫，我這說話有點隨性，你別介意。我記得，回顧 2015 年，我們好像有一個季度跌到了 40 多美元。正如您所知，這對我們的業務沒有任何幫助。我不知道的是，顯然我們擁有穩健的經濟。我們現在也掌握了一些成長動力，而這些動力在 2015 年時要不是不存在，就是貢獻度不夠高。正如霍爾頓所說，現場服務改變了遊戲規則。我相信，我們75%的現場服務都是給全國性客戶的。那是70年代。所以我們看到——這就是原因，結果，或者說是雞生蛋還是蛋生雞的問題，或者你想用什麼比喻都行。經濟情勢有所好轉，但我們的成長動力也得到了提升。我們的自動販賣機營運水準非常高，這有利於所有客戶，包括全國性客戶。所以——但是80是一個非常大的數字。回顧以往，我們能夠以這樣的速度發展緊固件業務。你需要生活在70年代。

Okay, maybe I'll follow-up on that. But the second question for Holden, in -- where you're saying it picked up, I guess, $5 million to $10 million year-over-year due to price and you're saying this -- the price-cost equation isn't quite there yet, so I assume you're not fully recapturing your COGS increases. But am I right to assume that you're capturing enough of it that you're picking up incremental gross profit dollars, Holden? You're not actually going -- you're not getting lower gross profit dollars because you're upside down on that price-cost equation, are you?

好的，或許我會跟進此事。但對霍爾頓來說，第二個問題是——你說由於價格上漲，其利潤同比增長了 500 萬至 1000 萬美元，而你又說——價格成本等式還沒有完全實現，所以我認為你還沒有完全彌補銷售成本的增長。但我可以這樣假設，你從中獲得的利潤足以增加毛利，霍爾頓？實際上，你並沒有因為價格成本比失衡而導致毛利下降，對嗎？

No, we're not, we're not. We're slightly underwater just with regards to our price-cost standpoint. But as we said in the first quarter, we got a little incremental pricing in the first quarter from efforts that we put into place in the fourth. We actually got incremental pricing in the second quarter over the first. That was masked a little bit because in the second quarter, we were growing over last year's modest price increases where we were in the first quarter. But we made some incremental progress on pricing. There were certainly some incremental moves on the inflation side as well. But yes, we're not backwards in that regard.

不，我們不是，我們不是。從價格成本的角度來看，我們略微處於劣勢。但正如我們在第一季所說，由於我們在第四季度採取的措施，我們在第一季獲得了一些額外的定價收益。實際上，我們第二季的價格比第一季有所上漲。由於第二季我們的價格漲幅超過了去年第一季的溫和漲幅，所以這個問題被掩蓋了一些。但我們在定價方面取得了一些漸進式進展。通膨方面也確實出現了一些漸進式的變化。但沒錯，我們在這方面並不落後。

Our next question comes from Hamzah Mazari with Macquarie Capital.

下一個問題來自麥格理資本的Hamzah Mazari。

The first question is just around tariffs. You mentioned sort of they're not leading to strength. Does that mean that you didn't see any prebuy related to tariffs? And then maybe if you could just update us what your sort of direct and indirect exposure is to China sourcing.

第一個問題是關於關稅的。你提到過，它們似乎並不能帶來力量。那是不是代表你沒有看到任何與關稅相關的預購資訊？然後，您能否向我們介紹一下您與中國採購相關的直接和間接接觸情況？

Sure. With regards to prebuying, I actually canvassed the RVPs this morning to get a sense of what they're seeing in the field. And it came back fairly uniformly that we really aren't seeing anything or at least nothing is being discussed with us about prebuying product ahead of time. Now to be fair, I'm not sure that gloves and goggles are necessarily the type of product that people load up on ahead of demand, right? So we may not be that kind of product to that kind of company. But we don't believe that, that is impacting our revenue growth rates in any meaningful way. As it relates to the 232s and 301, 232 at this point is just beating inflation, generally speaking, with regards to that one. As it relates to 301, and I think there's a couple of threads here, one is the first $50 billion that has been talked about. There is not a huge impact on us from that. Now that we've had a chance to kind of see how our products are being affected, I will probably stick with about $10 million of COGS perhaps being affected by that, although it's in places we haven't necessarily expected, sort of indirect shipments on things like ball bearings and welding consumables and things like that. But it's a pretty small number, I don't think particularly meaningful. And so if it stops there, I'm not overly concerned about the direct impact to tariffs. I think the question you're really getting at is what happens with the other $200 billion, should they go into effect? And honestly, at this point, we're not sure. I mean, it's hard to sort of speculate on that. I think you can make a case that somewhere in the neighborhood of 10% of our COGS may come from China directly and indirectly. But I'm only guessing at the indirect piece. Again, that's more art than science, figuring that one out. It also -- I don't assume that everything that we get from China will be tariffed. That would pull the number down, the impact down. And of course, we would expect to be able to shift product perhaps from China to Taiwan or Vietnam or other sources. I think one of the great values of having a significant local sourcing operation on the ground in that region is that we know where there's alternative source of product that we can [shift] as quickly as anybody else. And so its conjecture as to what the impact will be, if any. You would expect that it could have an impact. But we have mechanisms and such to manage that.

當然。關於預購事宜，我今天早上走訪了各個區域銷售代表，了解他們在現場看到的情況。得到的回饋基本上一致，那就是我們實際上並沒有看到任何關於提前預購產品的跡象，或者至少沒有人和我們討論過這個問題。公平地說，我不確定手套和護目鏡是否一定是人們會在需求出現前大量囤貨的產品，對吧？所以，我們的產品可能不適合這類公司。但我們認為，這並沒有對我們的收入成長率產生任何實質的影響。就 232 和 301 而言，就目前而言，232 的表現總體上優於通貨膨脹。關於 301，我認為這裡有兩個線索，其中之一是第一個被提及的 500 億美元。這件事對我們影響不大。現在我們有機會大致了解我們的產品受到了怎樣的影響，我可能會堅持認為，大約有 1000 萬美元的銷售成本會受到影響，儘管這發生在一些我們未必預料到的地方，比如滾珠軸承和焊接耗材等間接出貨量。但這個數字很小，我認為沒什麼特別的意義。因此，如果事情就此結束，我並不太擔心對關稅的直接影響。我認為你真正想問的問題是，如果另外 2000 億美元生效，那會發生什麼？說實話，目前我們還不確定。我的意思是，這很難推測。我認為可以論證，我們大約 10% 的銷售成本可能直接或間接來自中國。但我只是對間接部分進行猜測。再說一遍，弄清楚這個問題更多的是藝術而不是科學。另外——我並不認為我們從中國進口的所有商品都會被徵收關稅。那樣就能降低數字，減少影響。當然，我們也希望能夠將產品從中國轉移到台灣、越南或其他地區。我認為在該地區擁有重要的本地採購業務的一大價值在於，我們知道哪裡有替代產品來源，我們可以像其他人一樣迅速地進行轉換。因此，人們只能推測其影響（如果有的話）。你可能會認為這會產生影響。但我們有相應的機制來應對這種情況。

Great. And then just secondly, any color on just improvement in nonresi? For you, it was pretty dramatic. I know you have oil and gas in nonresi. Do you attribute it to that? And then is the margin mix on nonresi better than manufacturing? Any color there.

偉大的。其次，非住宅方面是否有改善？對你來說，這真是戲劇性的一幕。我知道你們的非住宅區有石油和天然氣。你認為這是由那件事引起的嗎？那麼，非住宅產業的利潤率結構是否優於製造業？那裡有什麼顏色？

The -- I think that the oil and gas and things around that are certainly helpful. The other thing I would point out is relevant to manufacturing, right, we talked about how our growth has been up between organically 11.5% and 14.5% for 14 months -- 13 months. That is not necessarily true of nonresidential, right? I mean, for most of that period, our manufacturing was really driving that. If you look at the quarter a year ago in non-res, we're up about 5.5%, 6%, right? And so to some extent, I think what you're seeing is an acceleration off of some easier comps. But I do think that also we're benefiting from having injected energy over the last 2 or 3 years into the effort. If you remember, we really started talking about the tone around non-res starting to get better in March of last year. And I think that, that tone transformed into actual facts on the ground in November, December of 2017. And it's just continued to run from that point, and right now, it's running against relatively easy comps. And so that's about the color that I have for that. And from a margin standpoint, we always think about -- from a gross margin standpoint, construction fasteners fall somewhere in between the OEM fastener on the low end and the MRO fastener at the high end.

我認為石油、天然氣以及相關產業肯定是有幫助的。我還要指出一點，這跟製造業有關，對吧？我們討論過，在過去的 13 個月裡，我們的有機成長率一直保持在 11.5% 到 14.5% 之間。但對於非住宅用途來說，情況未必如此，對嗎？我的意思是，在那段時間的大部分時間裡，我們的製造業才是真正推動這一趨勢的因素。如果看看去年同期非住宅物業的成長率，大約是 5.5% 到 6%，對吧？所以在某種程度上，我認為你看到的是一些較簡單比賽的加速表現。但我認為，過去兩三年我們投入的精力也讓我們從中受益。如果你還記得的話，我們真正開始討論非住宅領域的氛圍開始好轉是從去年三月開始的。我認為，這種語氣在 2017 年 11 月和 12 月變成了實際情況。從那時起，它就一直運作下去，而現在，它面對的是相對容易的對手。這就是我能想到的顏色。從利潤率的角度來看，我們總是認為——從毛利率的角度來看，建築緊固件的利潤率介於低端的 OEM 緊固件和高端的 MRO 緊固件之間。

Our next question comes from Ryan Merkel with William Blair.

下一個問題來自瑞安·默克爾和威廉·布萊爾。

So just to follow up on price-cost, and it was slightly negative, so I don't want to make a big deal here. But can you just articulate for our us why is price-cost negative? What are the key issues there?

所以，關於價格成本，我再補充一點，結果略微為負，所以我不想在這裡大做文章。但您能否為我們解釋為什麼價格成本為負值？那裡的關鍵問題是什麼？

Well, I mean, the key issue is that inflation continues to run very quickly. We -- I just said we've got some incremental pricing, but the quick math is we had feedstock or product cost that were -- was going up somewhat faster. And so, yes, that's the environment. I don't know what more to add to it. I mean, it is inflationary for products and that inflation has not stopped.

嗯，我的意思是，關鍵問題是通貨膨脹持續快速上漲。我剛才說了，我們採取了一些增量定價策略，但簡單計算一下，我們的原料或產品成本上漲速度更快一些。所以，是的，這就是環境。我不知道還能補充什麼。我的意思是，通貨膨脹推高了商品價格，而且這種通膨還沒有停止。

I'll add just one thought to that, and I touched on this in April. I think we really started the hard press about 4 to 5 months later than we should have. We did some things last summer, Holden touched on that, where we were raising some prices. Actually in second quarter last year, we got some nice lift in our gross margins. We were actually ahead of it a little bit. But November, December time, we really should have been putting on the hard press. We have our meeting in December every year with our leadership we should add the hard press on, and I didn't really turn it on until April. And that's completely on me. And so we're a little bit behind.

我只想補充一點，我在四月的時候也提到過這一點。我認為我們真正開始全力施壓的時間比應該的晚了大約 4 到 5 個月。去年夏天我們做了一些事情，霍爾頓也提到過，我們提高了一些價格。事實上，去年第二季我們的毛利率有了不錯的提升。實際上，我們當時稍微領先了一點。但到了十一月、十二月，我們真的應該加大力度施壓了。我們每年 12 月都會與領導階層開會，我們應該加大力度施壓，但我直到 4 月才真正開始行動。這完全是我的責任。所以我們現在稍微落後了一點。

And to give you a sense, right, so in Q1, we're sort of reacting to things. I think in Q2, we actually put a lot of discipline in the field just in terms of the messaging. And that messaging flowed down to the RVPs and into the field, and that was a part of that. And then in Q3, we had some additional tools that are going into the field to hopefully make this pricing process easier. And so that's why we struggle like everyone else does with what is ramping inflation. But we believe that we continue to make incremental improvement each quarter, and I think that's going to continue into Q3.

為了讓你們有個概念，對吧，所以在第一季度，我們基本上是在對各種事情做出反應。我認為在第二季度，我們在訊息傳遞方面確實加強了該領域的紀律性。而這訊息向下傳遞到區域副總裁，並傳達到一線，這也是其中的一部分。然後在第三季度，我們推出了一些額外的工具，希望能簡化定價過程。所以，這就是為什麼我們和其他人一樣，都在努力應對不斷上漲的通貨膨脹。但我們相信每季都會持續進步，我認為這種進步動能延續到第三季。

Got it, yes. I'm just clarifying that it's transitory and it's not anything that's structurally different than the past. It was more just being late on passage of the pricing. It's good to hear.

明白了。我只是想澄清一下，這只是暫時的，它在結構上與過去並沒有什麼不同。更確切地說，只是定價機制通過得晚了些。聽到這個消息真好。

Yes.

是的。

And my second question -- okay. And then my second question, the non-National Accounts, I think you said it was up mid-single digits. And I don't think that has accelerated much, correct me if I'm wrong, over the past couple of quarters. But my real question is, is that a market growth rate? Are the smaller customers or non-National Account customers just not growing as well? Or is it just not a focus for you and that's why the growth rate just isn't anywhere near the National Account growth rate?

我的第二個問題——好的。我的第二個問題，關於非國民帳戶，我想您說過它增長了個位數中段。而且我認為，在過去的幾個季度裡，這種情況並沒有加速發展，如果我錯了請糾正我。但我真正的問題是，這是市場成長率嗎？規模較小的客戶或非全國性客戶的成長是否不如預期？或者，這只是你關注的重點，所以成長率遠低於國民帳成長率？

Yes, I think there's a couple of things going on. Our growth drivers, when it relates to Onsite, really benefits the National Accounts and a piece of the non-National. If I think of the strength we're seeing internationally, that's much more akin to our National Accounts. Heck, our National Accounts are doing a great job. If I think of our local business, one thing that is impacting that. And Holden, refresh me on the number. I believe our branch count is down about 6% Q2 to Q2. When we consolidate a branch in a market, historically, we've talked about 65% to 70% of our business is our top 10 customers in that branch. That's real -- frankly, you can retain that business without a great plan because that's a group of customers you're just -- you're naturally engaging with. And you do enough business that you -- everybody matters to each other from the standpoint of they know Fastenal is an important part of their team. And we're typically delivering the product to the backdoor. So the fact we're coming from a branch 2 miles away or 7 miles away doesn't really matter. If you think of the other 1/3 of our business, so the other 35%, 5% of that is retail business. And a piece of that retail business, you can tell, you have a high risk of losing. Now in a $50,000 branch that you consolidate, there's $3,000 that's there and you're going to lose a piece of it. The other 30% of the 35%, you need to have a really good plan in place to make sure you don't lose touch with that customer because that's a customer doing $300, $500, $700 a month with you, and your relative importance to them might be different. And so there, we have to have a really good plan. And so some of the delta you're seeing, I don't think it's because it's industry growth, which it happens to be. I think it's a case of 6% of our branches disappeared, and so there is some impact from that. Now does that account for why it's single-digit versus double-digit? I honestly don't know. But that comes into play.

是的，我覺得有兩件事同時發生。我們的成長動力，就現場服務而言，確實惠及了全國性客戶以及一部分非全國性客戶。如果我考慮一下我們在國際上看到的強勁勢頭，那與我們的國民經濟核算體系更為相似。說真的，我們的全國客戶經理們做得非常好。就我們當地的商業而言，有一件事正在影響著它。霍爾頓，幫我把號碼再說一次。我認為我們的分行數量比第二季度下降了約 6%。從歷史數據來看，當我們整合一個市場中的分公司時，我們大約 65% 到 70% 的業務都來自該分公司的前 10 位客戶。確實如此——坦白說，即使沒有周密的計劃，你也能留住這部分客戶，因為你自然而然地就會與他們建立聯繫。而且你們的業務量足夠大，以至於——從大家的角度來看，每個人都很重要，因為他們知道 Fastenal 是他們團隊的重要組成部分。我們通常是把產品送到後門。所以，我們來自 2 英里外的分部還是 7 英里外的分部，其實並不重要。如果你考慮我們業務的另外三分之一，也就是另外 35%，其中 5% 是零售業務。很明顯，零售業的某個領域，你很有可能會損失慘重。現在，在一個價值 5 萬美元的分支機構中，如果你進行合併，其中有 3000 美元，你會損失一部分。剩下的 30%（也就是 35% 中的 30%），你需要製定一個非常好的計劃，以確保你不會與該客戶失去聯繫，因為該客戶每月向你消費 300 美元、500 美元、700 美元，你對他們的重要性可能有所不同。所以，我們必須制定一個非常好的計劃。因此，你看到的某些差異，我認為並不是因為行業成長，儘管它恰好是行業成長。我認為我們6%的分店消失了，所以這造成了一定的影響。那麼，這是否可以解釋為什麼是個位數而不是兩位數呢？我真的不知道。但這一點會起作用。

And Ryan, I might contribute as well. So I mean, we are growing in those -- in the non-National Account business faster than industrial production, which I think is meaningful. In addition to what Dan talks about in terms of the branch closures, the Onsite growth, most of our Onsites are within National Accounts, but some portion of our Onsites are not within National Accounts. And remember, we do shift revenue from a branch into an Onsite. And so for those Onsites we sign up, maybe some of those had been serviced out of a store that wasn't a National Account business, and there might be a little bit of an impact there as well. So there are a few pieces that are sort of working against that number being better than what it is today. But it is outperforming industrial production, and we think the field is doing a nice job.

瑞安，我也許會貢獻一份力量。我的意思是，我們在非國民帳戶業務中的成長速度比工業生產更快，我認為這很有意義。除了丹提到的分公司關閉和現場服務成長之外，我們的現場服務大多屬於全國性客戶，但我們的現場服務有一部分並不屬於全國性客戶。請記住，我們會將部分收入從分行轉移到門市。因此，對於我們簽約的那些現場服務，其中一些可能由非全國性客戶業務的門市提供服務，這可能也會造成一些影響。所以有一些因素不利於這個數字比現在更好。但它的表現優於工業生產，我們認為該領域做得很好。

And it's helped perform in the organic growth of the industry.

它促進了行業的自然增長。

Our next question comes from Adam Uhlman with Cleveland Research.

下一個問題來自克里夫蘭研究公司的亞當·烏爾曼。

I was wondering if we could circle back -- I wanted to circle back on the investment drivers. I guess, as we think about the back half of the year, you're -- we touched on it maybe a little bit, but the headcount growth has been relatively low. And it would seem as if there might be some need to add additional heads into the back half of the year to support the growth that you're seeing. And I'm just trying to understand how you guys are conceptualizing that investment spend in the headcount. Could it be only a couple of points of extra growth? Or is there something where we should be expecting a bigger ramp?

我想問我們是否可以再討論一下——我想再討論一下投資驅動因素。我想，當我們展望下半年時，我們可能稍微談到了這一點，但員工人數的成長相對較低。而且，似乎有必要在下半年增加人手，以支持你們所看到的成長。我只是想了解你們是如何看待人力成本方面的投資支出的。會不會只是多長了幾個百分點？或者說，在某個地方我們應該期待更大的坡道嗎？

My message -- the message we've had to the team is where you're signing Onsites where you have business growth, add people. And -- but we've been investing at a pretty healthy clip. And as I mentioned by the first quarter, in all honesty, we've probably got a little bit ahead of ourself, and so we just put a pause on. We didn't stop hiring, we put a pause on. And -- but if you actually drift into the weeds a little bit, you'd see that from a pure headcount standpoint, there was more drop in the part-time than there was in the full time. So the loss of hours and energy wasn't as great. The other thing is as we migrate to a bigger -- an ever-bigger piece of our business being Onsite, we become more efficient. If I think about some time ago, and I forget the exact time, it was a little over a year ago, we took over the hosting of our vending network. What that afforded us to do is to interconnect the vending information much more directly into our point-of-sale system, so the lift, the workload for servicing vending, while it's still sizable, and we're doing things every day to make it a little bit more efficient. It's much more efficient today than it would have been 12 months ago because the interconnectedness within our point-of-sale system and our trajectory system that runs the vending platform is much more seamless today. But we will continue to add headcount to support our growth and -- but we're working against comps that are really different. And that really is what speaks to Holden's confidence in our ability to achieve leverage.

我傳達給團隊的訊息是－在業務成長的地方，增加現場工作人員。而且——但我們的投資步伐一直相當穩健。正如我在第一季提到的那樣，老實說，我們可能有點操之過急了，所以我們暫停了一段時間。我們沒有停止招聘，只是暫停了招聘。但是——但如果你稍微深入研究一下，你會發現，從純粹的人員數量來看，兼職人員的減少幅度比全職人員的減少幅度更大。因此，損失的時間和精力並沒有那麼大。另一方面，隨著我們業務中越來越多的部分轉向現場服務，我們的效率也越來越高。如果我回想一下之前的時間，我記不清確切的時間了，大概一年多以前，我們接手了自動販賣機網路的託管服務。這使我們能夠將自動販賣機資訊更直接地連接到我們的銷售點系統，因此，雖然自動販賣機的服務工作量仍然很大，但我們每天都在努力提高效率。如今，它的效率比 12 個月前高得多，因為我們的銷售點系統和運行自動販賣機平台的軌跡系統之間的互聯互通如今更加無縫。但我們會繼續增加員工人數以支持我們的成長，但是我們面臨的競爭對手與我們截然不同。而這確實體現了霍頓對我們實現槓桿效應能力的信心。

Okay, got you. And then secondarily, thanks for the disclosure on the e-commerce business. That's a lot of incremental revenue off of a small base. I was just wondering if you could touch on anything new or different that you're doing there relative to what you've talked about in the past and how big do you think it could get for you within your current business model.

好的，明白了。其次，感謝您揭露有關電子商務業務的資訊。在基數較小的情況下，這帶來了相當可觀的增量收入。我只是想問一下，相對於你過去談論的內容，你在那裡正在做的事情是否有任何新的或不同的方面，以及你認為在你目前的商業模式下，它能發展到多大的規模。

Yes. At this point, on the last part of your question, I'd be just posing a wild guess. And my wild guess would be, frankly, no better than anybody else's wild guess. If you -- but to the part of what we're doing different, for 3 years, our e-commerce was negative. Nominal, and it was a relatively small business because it wasn't an emphasis point. Our team, we started investing in resources into our team early part of 2017. And we added an RESS, and I hope I have the acronym right. Help me out, Holden, e-commerce sales specialists -- regional e-commerce sales specialists.

是的。關於你問題的最後一部分，我只能大膽猜測。坦白說，我的猜測並不比任何人的猜測更可靠。如果你——但就我們所做的不同之處而言，過去三年，我們的電子商務表現為負。名義上的，而且規模相對較小，因為它不是公司的重點。我們的團隊，我們從 2017 年初就開始對團隊進行資源投入。我們還添加了 RESS，我希望我沒記錯這個縮寫。霍爾頓，請幫幫我，電子商務銷售專家—區域電子商務銷售專家。

There you go.

好了。

Okay. And it's a small team. But really, what they're about is engaging with our branch network, our Onsite network, to go out and drive that. Our IT team is operating at a higher level today than I've ever seen in my 22 years. What the team has put in place -- we've always had great talent, but we weren't always able to muster up the resources to do great things. And right now, we're doing some great things in the system they've put in place that we rolled out, what we call FAST 360°, a year ago. And that's really a visibility tool for our customers to see what's on their plant floor, whether it's in a vending machine or in a bin stock location. So many times, historically, customers don't know always what's in their facility because a lot of what we sell is coined MRO. So when it's bought, it's expense. So there's no visibility where stuff is. Even on the OEM side, most ERP systems don't give you the level of visibility to know where stuff is. Our FAST 360° does that for our customers, and we've rolled that out a year ago, and that's growing nicely in our business. And it works out really well in our Onsites as well. The team is really leveraging that start and our same-day capabilities at our branch network that really tap into -- we can do today what many companies aspire to do, and we've connected some of the dots electronically to do it. But I don't want to get ahead of myself. It's still a relatively small number, but we're tapping into making it easier to buy it from us. Today, 90% of our sales go through an omnichannel, goes through -- we only -- we have 10% of our sales where the customer buys through one channel. And that's typically our retail business and our -- what we call Tier 1 customers. So relatively small customers that interact with us only at the branch level. But when you start layering in where you source at the branch through an Onsite, through vending, through a bin stock, internationally, e-commerce and put all those together, that's 90% of our revenue. So we're doing things today and we have been naturally for years what other companies aspire to do. And you're just seeing it shine through because we have a group that has a really good plan and are executing to it. But it's still a relatively small part of the business, and I haven't the foggiest idea where it will go to.

好的。而且這是一個小團隊。但實際上，他們的目的是與我們的分公司網路、我們的現場網路合作，走出去推動這件事。我們IT團隊目前的運作水準比我22年來見過的任何時候都要高。團隊所做的一切——我們一直擁有優秀的人才，但我們並不總是能夠調動足夠的資源去做偉大的事情。現在，我們正在他們建立的系統中做一些很棒的事情，這個系統是我們一年前推出的，我們稱之為 FAST 360°。這確實是一個視覺化工具，可以幫助我們的客戶了解他們工廠車間裡有什麼，無論是在自動販賣機或貨架庫存位置。從歷史上看，很多時候客戶並不清楚他們的設施裡有什麼，因為我們銷售的很多東西都被稱為 MRO（維護、維修和營運）。所以，買回來就是一筆開銷。所以根本看不見東西在哪裡。即使在 OEM 方面，大多數 ERP 系統也無法提供足夠的可見性來了解物品的位置。我們的 FAST 360° 為我們的客戶提供了這種服務，我們一年前推出了這項服務，它在我們的業務中發展良好。而且在我們的現場培訓中也效果非常好。團隊正在充分利用這一優勢以及我們分支機構網路的當日服務能力——我們今天就能做到許多公司夢寐以求的事情，而且我們已經透過電子方式將一些環節連接起來實現了這一點。但我不想操之過急。雖然數量仍然相對較少，但我們正在努力讓顧客更容易從我們這裡購買到產品。如今，我們 90% 的銷售額都是透過全通路實現的，只有 10% 的銷售額是客戶透過單一管道購買的。這通常指的是我們的零售業務和我們所說的—一級客戶。因此，這些客戶規模相對較小，只在分公司層級與我們互動。但是，當你開始把你在分店的採購管道（包括現場採購、自動販賣機、貨架庫存）、國際採購、電子商務等因素考慮進去，把所有這些加起來，就會發現這佔了我們收入的 90%。所以，我們今天所做的事情，也是多年來我們一直在做的事情，正是其他公司夢寐以求的。你現在看到的成果正是因為我們有一個已經制定了非常好的計劃並且正在執行的團隊。但這仍然只是公司業務中相對較小的一部分，我完全不知道它未來的發展方向。

With that, I see we're at just a few minutes before the hour. I hope I'm not cutting anybody off who had a question. But thanks again for your interest this morning. And I do sincerely believe we have a great story to tell. The Blue Team is blessed with great people. And I believe we do something special for our customers, and they recognize it and it affords us the ability to grow.

這樣看來，距離整點還有幾分鐘。我希望我沒有打斷任何有疑問的人。再次感謝您今天早上的關注。我真心相信我們有一個很棒的故事要說。藍隊擁有非常優秀的人才，真是太幸運了。我相信我們為客戶做了一些特別的事情，他們也認可這一點，這使我們能夠成長。

Have a great day, everybody.

祝大家今天過得愉快。

Thank you.

謝謝。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. You may all disconnect. Everyone, have a great day.

女士們、先生們，感謝各位參加今天的會議。節目到此結束。你們可以斷開連結了。祝大家今天過得愉快。