Wd 40 Co (WDFC) SEC Filing 10-Q Quarterly report for the period ending Wednesday, February 28, 2018

Earnings Press Release
10-Q Quarterly Report
10-Q QoQ Changes
Wd 40 Co
Ticker: WDFC CIK: 105132

Exhibit 99.1

WD-40 Company Reports Second Quarter 2018 Financial Results

~ Second quarter net sales grew 5 percent period-over-period ~

~ Management revises previously issued guidance ~

SAN DIEGO – April 5, 2018 ― WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its second fiscal quarter ended February 28, 2018

Financial Highlights and Summary

Total net sales for the second quarter were $101.3 million, an increase of 5 percent compared to the prior year fiscal quarter. Year-to-date total net sales were $198.9 million, an increase of 7 percent compared to the prior year fiscal period.

Translation of the Company’s foreign subsidiary results to U.S. dollars had a favorable impact on sales for the current quarter and year-to-date. On a constant currency basis total net sales would have been $97.0 million for the second quarter and $193.2 million year-to-date.

Net income for the second quarter was $14.8 million, an increase of 20 percent compared to the prior year fiscal quarter. Year-to-date net income was $27.4 million, an increase of 14 percent from the prior year fiscal period.

Diluted earnings per share were $1.05 in the second quarter, compared to $0.87 per share for the prior year fiscal quarter. Year-to-date diluted earnings per share were $1.95 compared to $1.69 in the prior year fiscal period.

Gross margin was 55.1 percent in the second quarter compared to 56.4 percent in the prior year fiscal quarter. Year-to-date gross margin was 55.3 percent compared to 56.8 percent in the prior year fiscal period.

Selling, general and administrative expenses were up 2 percent in the second quarter to $30.4 million when compared to the prior year fiscal quarter. Year-to-date selling, general and administrative expenses were up 5 percent to $61.6 million compared to the prior year fiscal period.

Advertising and sales promotion expenses were up 3 percent in the second quarter to $5.2 million when compared to the prior year fiscal quarter. Year-to-date advertising and sales promotion expenses were up 5 percent to $10.3 million compared to the prior year fiscal period.

“Overall we are off to a solid start in fiscal year 2018 with year-to-date net sales growth of 7 percent on a reported basis and 4 percent on a constant currency basis,” said Garry Ridge, WD-40 Company’s president and chief executive officer. “Unfortunately we are seeing the impact globally of higher commodity prices which have begun to deteriorate our gross margins. Therefore we have decided it is time to make some necessary pricing adjustments to ensure our gross margin will remain above our target of 55 percent over the long-term.

“Furthermore, I am excited to share with investors that as a result of the savings we expect to realize from the Tax Cuts and Jobs Act, we have decided to invest an additional $1.0 million in brand building this fiscal year. This investment will focus on two main areas around the core strategies of making our end-users aware and making our products easy to buy. This investment will enable us to fast track our global digital presence and increase our sampling programs for WD-40 Multi Use Product to targeted end-user groups in countries identified as key growth opportunities.

"As we look to the remainder of fiscal year 2018, we’ve updated our fiscal year guidance to reflect updated foreign currency exchange rates, higher input costs, our revised effective tax rate as well as the changes we are making to our advertising and promotion investment this fiscal year,” Ridge concluded.

The following information was filed by Wd 40 Co (WDFC) on Thursday, April 5, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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