Fastenal Company (FAST)’s Q4 and FY2014 Earnings Results Conference Call Transcript

Operator

Our next question comes from Wanda Clark with UBS. Your line is open.

Wanda Clark – UBS

Good morning! So in terms of the store count you have close 52 stores in the second half ahead of that initial 45 target, are closing largely complete at this point and how should we think about next store count additions in 2015.

Leland J. Hein – President & CEO

Store count additions I would expect to be positive in fifteen, marginally positive. We’re always looking at our business even before, we announced the 45 in the second quarter , I think we closed around 20 stores in the first half of the year and you know we think that’s a healthy thing because in our business our locations are about, it’s about inventory and customers have the ability to stop in so we can do a great same day service in a high level of service for our customers but if one of our district or regional leaders looks at a market and says you know what I think this market is better served having us operate out 4 points than 5, our 3 points than 4, well we know we are going to retain an incredibly high percentage of that business. Looking at what’s the smartest way to grow but to answer your question I would expect it to be you know normally positive in 2015.

Wanda Clark – UBS

Okay great, and then just finally I was hoping you could give us a percent about your disclosure to oil and gas regents and how sales growth has been trending int those areas relative to the company average and then maybe how you think about the various puts and takes of your business of oil prices.

Leland J. Hein– President & CEO

Well, I think that when you look at our sales, about 12-13% of our sales are effected in some way they performed. From oil dropping, especially under 50 bucks barrel. And when you look at that there’s a percentage and I’m kinda framing that from Pennsylvania, to Texas to North Dakota, Western Canada and Alaska. We really looked at that and that’s 10-12%. We’re gonna fill it and now what happens is when you look back in time when oil dropped. By the time it drops to the net effect where it hits us, it can be six months out there. or something. There’s that lag, so we’re keeping an eye on it. And we’re definitely gonna fill it in those regions. The flip side is we don’t quite understand what it’s gonna do to our other customers because it actually puts a little wind in their sails so to speak. From the bottom line. So that’s kinda how we look at it. And how it affects company today.

Wanda Clark – UBS

Okay thanks for taking my question.

Leland J. Hein – President & CEO

You got it

Operator

Our next question comes from David Mandy with Robert W. Bear. The line is open