Welcome!

.NET Authors: Elizabeth White, Jayaram Krishnaswamy, Sematext Blog, ITinvolve Blog, Aditya Banerjee

News Feed Item

WD-40 Company Reports First Quarter 2013 Sales And Earnings

SAN DIEGO, Jan. 8, 2013 /PRNewswire/ -- WD-40 Company (Nasdaq: WDFC) today reported net sales for the first quarter ended November 30, 2012 of $95.3 million, an increase of 12% from the first quarter last year. Net income for the first quarter was $10.9 million, an increase of 61% compared to the prior year fiscal quarter.

Summary

First quarter multi-purpose maintenance products sales, which include the WD-40®, 3-IN-ONE® and BLUE WORKS® brands were $81.8 million, up 15% from the prior year fiscal quarter. The multi-purpose maintenance products are considered a primary focus for the Company.  Homecare and cleaning products sales, which include all other brands, were $13.5 million for the first quarter, down 4% from the prior year first quarter. The U.S. homecare and cleaning products are considered harvest brands providing healthy profit returns to the Company and are becoming a smaller part of the business as the multi-purpose maintenance products sales grow. 

Americas segment sales in the first quarter were $45.4 million, up 12% compared to the first quarter of the prior fiscal year. Europe segment sales in the first quarter were $35.2 million, up 17% from the prior year fiscal quarter. Asia-Pacific segment sales were $14.7 million in the first quarter, up 3% from the prior year fiscal quarter.

Diluted earnings per share were $0.69 in the first quarter, compared to $0.42 per share for the same quarter of the prior fiscal year.

"We are pleased with our solid revenue growth during the first quarter, particularly in our multi-purpose maintenance products, and because we were able to hit our goal of a 50 percent gross margin, we achieved solid growth in our net income as well," said Garry Ridge, WD-40 Company president and chief executive officer. "We have remained disciplined in building our business for long-term, sustainable growth by implementing our core strategic drivers, and the results of the first quarter show a solid start to the year.  In fact, the first quarter of 2013 was the best sales quarter in company history."

Net sales by segment as a percent of total net sales were 48% from the Americas, 37% from Europe and 15% from Asia-Pacific.

"While we did have some sales we expected to hit in the fourth quarter of last fiscal year slide into the first quarter of this fiscal year, particularly in Europe, we are proud of the solid growth we had in all three of our trading blocs during the quarter," Ridge said. "Sales were a little softer in Asia/Pacific than we have seen recently due to the ebbs and flows of our long-term approach to building the market in China and other Asian countries."

Gross margin was 50.1% in the first quarter compared to 48.7% in the same quarter of the prior fiscal year.

"We were able to achieve our gross margin goal due to several factors, including the price increases we took throughout 2012, relative stability in our cost of goods and the benefits of the supply chain architecture project which we started more than a year ago," Ridge added.

Selling, general and administrative expenses were up 12% in the first quarter to $25.3 million compared to the same period last fiscal year.

Advertising and sales promotion expenses were down 22% in the first quarter to $6.1 million compared to the same period last fiscal year.

"The decrease in advertising and sales promotion expenses was a result of promotional phasing, and we expect such expenses to maintain their historic levels during the remainder of the year," Ridge said.

During fiscal year 2012, the company launched the WD-40 Specialist product line in the UK, France, Germany, Italy, Canada, the U.S., and throughout Asia and Latin America. During the first quarter of 2013 the company launched the WD-40 Specialist product line in Russia, the Middle East and several smaller markets, including Puerto Rico, Malaysia and Cyprus.

"The WD-40 Specialist product line is helping to solidify our leadership in the marketplace, and we are excited about the incremental sales this product line gives us," Ridge said. "We are also excited about the power this product line brings to the entire WD-40 brand. We can directly attribute some of our growth in WD-40 Multi-Use Product to the increased distribution and shelf presence we have generated with WD-40 Specialist."

On January 7, 2013, the Company amended its unsecured credit agreement with Bank of America, N.A., to extend the maturity date for five years and to increase the amount available from $75.0 million to $125.0 million.   "The amended facility gives us additional access to capital to support the continued growth of our business, our share buyback activity and other general business needs," Ridge said.

Dividend and Share Buy-Back

As previously announced, WD-40 Company's board of directors declared on Tuesday, December 11, 2012, a 7% increase in the regular quarterly cash dividend, increasing it from $0.29 per share to $0.31 per share. The dividend is payable on January 31, 2013 to shareholders of record on January 7, 2013.

On December 13, 2011, the board of directors authorized a buyback up to $50.0 million of the Company's outstanding shares expiring on December 12, 2013. During the first quarter of 2013, WD-40 Company acquired an additional $8.1 million in shares, bringing the total purchased under this share buy-back plan to $29.3 million.

Fiscal Year 2013 Guidance

WD-40 Company expects fiscal year 2013 net sales of $356.0 million to $370.0 million. The Company expects net income of $36.5 million to $38.0 million and diluted earnings per share of $2.31 to $2.40 for fiscal year 2012 based on an estimated 15.8 million weighted average shares outstanding. Gross margin for the full year is expected to be close to 50.0%.  The Company expects advertising and promotion expenses of 7.0% to 8.0% of net sales.  This guidance is based on using average fiscal year 2012 foreign currency exchange rates.

More detailed information will be available in WD-40 Company's Form 10-Q which will be filed on January 9, 2013.

About WD-40 Company
WD-40 Company, with headquarters in San Diego, is a global consumer products company dedicated to delivering unique, high-value and easy-to-use solutions for a wide variety of maintenance needs of "doer" and "on-the-job" users by leveraging and building the brand fortress of the company. The company markets multi-purpose maintenance products – under the WD-40®, 3-IN-ONE® and BLUE WORKS® brand names. The company also markets homecare and cleaning brands: X-14® mildew stain remover and automatic toilet bowl cleaners, 2000 Flushes® automatic toilet bowl cleaners, Carpet Fresh® and No Vac® rug and room deodorizers, Spot Shot® aerosol and liquid carpet stain removers, 1001® household cleaners and rug and room deodorizers, and Lava® and Solvol® heavy-duty hand cleaners.

WD-40 Company markets its products in 187 countries worldwide and recorded sales of $343 million in fiscal year 2012. Additional information about WD-40 Company can be obtained online at http://www.wd40company.com.

Except for the historical information contained herein, this news release contains forward-looking statements concerning WD-40 Company's outlook for sales, earnings, dividends and other financial results. These statements are based on an assessment of a variety of factors, contingencies and uncertainties considered relevant by WD-40 Company. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements, including the impact of commodity prices, changes in foreign currency exchange rates, the introduction of new product lines and fluctuating global market conditions, both in the United States and internationally. The company's expectations, beliefs and projections are expressed in good faith and are believed by the company to have a reasonable basis, but there can be no assurance that the company's expectations, beliefs or projections will be achieved or accomplished.

The risks and uncertainties are detailed from time to time in reports filed by WD-40 Company with the SEC, including Forms 8-K, 10-Q, and 10-K, and readers are urged to carefully review these and other documents.

 

WD-40 COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share and per share amounts)

 



November 30,

  2012

   August 31, 2012

Assets



Current assets:



Cash and cash equivalents

$        52,435

$        69,719

Short-term investments

21,883

1,033

Trade accounts receivable, less allowance for doubtful accounts of $584 and $391 at November 30, 2012 and August 31, 2012, respectively

57,117

55,491

Inventories

30,767

29,797

Current deferred tax assets, net

5,556

5,551

Other current assets

5,096

4,526




    Total current assets

172,854

166,117




Property and equipment, net

8,846

9,063

Goodwill

95,368

95,318

Other intangible assets, net

27,257

27,685

Other assets

2,780

2,687




    Total assets

$      307,105

$      300,870




Liabilities and Shareholders' Equity



Current liabilities:



Accounts payable

$        23,315

$        21,242

Accrued liabilities

15,297

16,492

Revolving credit facility

45,000

45,000

Accrued payroll and related expenses

8,012

5,904

Income taxes payable

2,886

807




    Total current liabilities

94,510

89,445




Long-term deferred tax liabilities, net

24,963

24,007

Deferred and other long-term liabilities

2,016

1,956




    Total liabilities

121,489

115,408




Shareholders' equity:



Common stock — authorized 36,000,000 shares, $0.001 par value; 19,278,504 and 19,208,845 shares issued at November 30, 2012 and August 31, 2012, respectively; and 15,595,924 and 15,697,534 shares outstanding at November 30, 2012 and August 31, 2012, respectively

19

19

Additional paid-in capital

127,055

126,210

Retained earnings

199,630

193,265

Accumulated other comprehensive loss

(1,692)

(2,727)

Common stock held in treasury, at cost —  3,682,580 and 3,511,311 shares at November 30, 2012  and August 31, 2012, respectively

(139,396)

(131,305)




    Total shareholders' equity

185,616

185,462




  Total liabilities and shareholders' equity

$      307,105

$      300,870

 

WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except per share amounts)

 


Three Months Ended

          November 30,         


2012

2011




Net sales

$        95,264

$        84,945

Cost of products sold

47,537

43,607




Gross profit

47,727

41,338




Operating expenses:



Selling, general and administrative

25,329

22,637

Advertising and sales promotion

6,067

7,816

Amortization of definite-lived intangible assets

466

585




Total operating expenses

31,862

31,038




Income from operations

15,865

10,300




Other income (expense):



Interest income

62

52

Interest expense

(125)

(242)

Other income (expense), net

52

(180)




Income before income taxes

15,854

9,930

Provision for income taxes

4,910

3,138




Net income

$        10,944

$          6,792




Earnings per common share:



Basic

$            0.69

$            0.42




Diluted

$            0.69

$            0.42




Shares used in per share calculations:



Basic

15,693

16,074




Diluted

15,807

16,205




Dividends declared per common share

$            0.29

$            0.27

 

WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

 


Three Months Ended

November 30,


2012


2011

Operating activities:




Net income

$      10,944


$        6,792

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

1,203


1,218

Net (gains) losses on sales and disposals of property and equipment

(9)


58

Deferred income taxes

183


261

Excess tax benefits from settlements of stock-based equity awards

375


(298)

Stock-based compensation

619


745

Unrealized foreign currency exchange (gains) losses, net

(210)


336

Provision for bad debts

221


38

Changes in assets and liabilities:




  Trade accounts receivable

(1,111)


6,985

  Inventories

(890)


(5,698)

  Other assets

(613)


(940)

  Accounts payable and accrued liabilities

646


3,316

  Accrued payroll and related expenses

981


(2,103)

  Income taxes payable

3,199


2,075

  Deferred and other long-term liabilities

57


0





      Net cash provided by operating activities

15,595


12,785





Investing activities:




Purchases of property and equipment

(527)


(777)

Proceeds from sales of property and equipment

64


920

Purchases of short-term investments

(20,928)


0





    Net cash (used in) provided by investing activities

(21,391)


143





Financing activities:




Repayments of long-term debt

0


(10,715)

Proceeds from revolving credit facility

0


69,550

Repayments of revolving credit facility

0


(37,550)

Dividends paid

(4,579)


(4,330)

Proceeds from issuance of common stock

944


901

Treasury stock purchases

(8,091)


(18,601)

Excess tax benefits from settlements of stock-based equity awards

(375)


298





    Net cash used in financing activities

(12,101)


(447)





Effect of exchange rate changes on cash and cash equivalents

613


(2,230)





Net (decrease) increase in cash and cash equivalents

(17,284)


10,251





Cash and cash equivalents at beginning of period

69,719


56,393





Cash and cash equivalents at end of period

$      52,435


$      66,644

SOURCE WD-40 Company

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.