Wd 40 Co (WDFC) SEC Filing 10-K Annual report for the fiscal year ending Friday, August 31, 2018

Earnings Press Release
10-K Annual Report
10-K YoY Changes
Wd 40 Co
Ticker: WDFC CIK: 105132

Exhibit 99.1

WD-40 Company Reports Fourth Quarter and Fiscal Year 2018 Financial Results

~ Global sales of maintenance products grow 9 percent for fiscal year 2018 compared to prior year period ~

~ Management issues fiscal year 2019 guidance ~

SAN DIEGO – October 18, 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 fourth quarter and fiscal year ended August 31, 2018.

Financial Highlights and Summary

Total net sales for the fourth quarter were $102.6 million, an increase of 6 percent compared to the prior year fiscal quarter. Net sales for the full fiscal year were $408.5 million, an increase of 7 percent compared to the prior fiscal year.

Translation of the Company’s foreign subsidiary results to U.S. dollars had a favorable impact on sales for the current quarter and full fiscal year. On a constant currency basis total net sales would have been $102.2 million for the fourth quarter and $398.0 million for the full fiscal year.

Net income for the fourth quarter was $21.6 million, an increase of 51 percent compared to the prior year fiscal quarter. For the full fiscal year net income was $65.2 million, an increase of 23 percent from the prior fiscal year.

Diluted earnings per share were $1.54 in the fourth quarter, compared to $1.01 per share for the prior year fiscal quarter. Year-to-date diluted earnings per share were $4.64 compared to $3.72 in the prior fiscal year.

Gross margin was 55.2 percent in the fourth quarter compared to 56.0 percent in the prior year fiscal quarter. Full fiscal year gross margin was 55.1 percent compared to 56.2 percent in the prior fiscal year.

Selling, general and administrative expenses were up 5 percent in the fourth quarter to $29.7 million when compared to the prior year fiscal quarter. Selling, general and administrative expenses for the full fiscal year were up 6 percent to $121.4 million compared to the prior fiscal year.

Advertising and sales promotion expenses were up 23 percent in the fourth quarter to $6.5 million when compared to the prior year fiscal quarter. Advertising and sales promotion expenses for the full fiscal year were up 9 percent to $22.3 million compared to the prior fiscal year.

“In the fourth fiscal quarter, net income and diluted earnings per share were positively impacted by a $7.1 million provisional tax adjustment we recorded during the quarter associated with the Tax Cuts and Jobs Act,” said Jay Rembolt, WD-40 Company’s Chief Financial Officer. “Because of this adjustment we substantially exceeded the guidance we issued in July of 2018 for both net income and diluted EPS. This has been a very unusual tax year due to the transition associated with the Tax Cuts and Jobs Act which caused our effective income tax rate for fiscal year 2018 to be approximately 13 percent. The exceptionally low tax rate we recorded this year is not expected to carry into fiscal year 2019. I suggest investors review our Annual Report on Form 10-K for more detailed information on the impacts of Tax Cuts and Jobs Act.”

WD-40 Company’s president and CEO, Garry Ridge added, “We are pleased that we achieved both sales and earnings results in fiscal year 2018 which reflect new record highs for the Company. Our maintenance products delivered solid sales increases in the full fiscal year including 8 percent growth of WD-40 Multi-Use Product and 22 percent growth of WD-40 Specialist. I’d like to thank the tribe for their contributions during fiscal year 2018. The tribe has never been more aligned and focused. We are clear about our purpose and we know what we need to do to achieve our long-term goals,” concluded Ridge.

The following information was filed by Wd 40 Co (WDFC) on Thursday, October 18, 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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