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Share Name | Share Symbol | Market | Type |
---|---|---|---|
WD 40 Company | NASDAQ:WDFC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.70 | -0.30% | 230.01 | 225.91 | 236.74 | 232.82 | 229.04 | 232.82 | 89,337 | 01:00:00 |
SAN DIEGO, April 6, 2017 /PRNewswire/ -- 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, 2017.
Financial Highlights and Summary
"Fluctuating foreign currency exchange rates continue to obscure the true strength of our business and they negatively impacted both our top-line and bottom line results in the second quarter," said Garry Ridge, WD-40 Company's president and chief executive officer. "Even with the impacts of foreign currency headwinds included, we had 4 percent growth in sales of our maintenance products, which continue to be our core strategic focus, and a 5 percent increase in operating income. Our net income was negatively impacted as a result of fluctuations in some non-operating currency related items period over period, as well as an adjustment that we recorded to our income tax expense in the second quarter of this year. As we look to the remainder of fiscal year 2017, we've updated our fiscal year guidance and we remain confident in our strategy and are staying the course."
Net Sales by Segment (in thousands):
Three Months Ended |
Six Months Ended | ||||||||||||||||
February 28, |
February 29, |
February 28, |
February 29, |
||||||||||||||
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||||||||||||
Americas |
$ |
45,078 |
$ |
45,542 |
(1)% |
$ |
87,918 |
$ |
89,954 |
(2)% | |||||||
EMEA |
36,205 |
35,626 |
2% |
66,462 |
67,712 |
(2)% | |||||||||||
Asia-Pacific |
15,236 |
13,382 |
14% |
31,387 |
29,406 |
7% | |||||||||||
Total |
$ |
96,519 |
$ |
94,550 |
2% |
$ |
185,767 |
$ |
187,072 |
(1)% | |||||||
Net Sales by Product Group (in thousands):
Three Months Ended |
Six Months Ended | ||||||||||||||||
February 28, |
February 29, |
February 28, |
February 29, |
||||||||||||||
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||||||||||||
Maintenance products |
$ |
87,771 |
$ |
84,641 |
4% |
$ |
166,930 |
$ |
166,882 |
- | |||||||
Homecare and cleaning products |
8,748 |
9,909 |
(12)% |
18,837 |
20,190 |
(7)% | |||||||||||
Total |
$ |
96,519 |
$ |
94,550 |
2% |
$ |
185,767 |
$ |
187,072 |
(1)% | |||||||
Dividend and Share Repurchase
As previously announced, WD-40 Company's board of directors declared on Tuesday, March 21, 2017 a quarterly dividend of $0.49 per share payable April 28, 2017 to stockholders of record at the close of business on April 14, 2017.
On June 21, 2016, the Company's Board of Directors approved a share buy-back plan. Under the plan, which became effective on September 1, 2016, the Company is authorized to acquire up to $75.0 million of its outstanding shares through August 31, 2018. The timing and amount of repurchases are based on terms and conditions as may be acceptable to the Company's Chief Executive Officer and Chief Financial Officer and in compliance with all laws and regulations applicable thereto. During the period from September 1, 2016 through February 28, 2017, the Company has repurchased 174,337 shares at a total cost of $18.7 million under this $75.0 million plan.
Updated Fiscal Year 2017 Guidance
The Company updated its guidance for fiscal year 2017 as follows:
This guidance does not include any future acquisitions or divestitures and assumes that foreign currency exchange rates and crude oil prices will remain close to current levels for the remainder of fiscal year 2017.
Webcast Information
As previously announced, WD-40 Company management will host a live webcast at approximately 5:00 p.m. ET / 2:00 p.m. PT today to discuss these results. Other forward-looking and material information may also be discussed during this call. Please visit http://investor.wd40company.com for more information and to view supporting materials.
About WD-40 Company
WD-40 Company is 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. The Company markets its maintenance products and homecare and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.
Headquartered in San Diego, WD-40 Company recorded net sales of $381 million in fiscal year 2016 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select market under the ticker symbol "WDFC." For additional information about WD-40 Company please visit http://www.wd40company.com.
Forward-Looking Statements
Except for the historical information contained herein, this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect the Company's current expectations with respect to currently available operating, financial and economic information. These forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements.
Our forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: growth expectations for maintenance products; expected levels of promotional and advertising spending; plans for and success of product innovation, the impact of new product introductions on the growth of sales; anticipated results from product line extension sales; and forecasted foreign currency exchange rates and commodity prices. Our forward-looking statements are generally identified with words such as "believe," "expect," "intend," "plan," "could," "may," "aim," "anticipate," "estimate" and similar expressions.
The Company's expectations, beliefs and forecasts 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 forecasts will be achieved or accomplished.
Actual events or results may differ materially from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I―Item 1A, "Risk Factors," in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2016, and in the Company's Quarterly Report on Form 10-Q for the period ended February 28, 2017 which the Company expects to file with the SEC on April 6, 2017.
All forward-looking statements included in this press release should be considered in the context of these risks. All forward-looking statements speak only as of April 6, 2017, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors and prospective investors are cautioned not to place undue reliance on our forward-looking statements.
Table Notes and General Definitions | |
(1) |
The Company markets maintenance products under the WD-40®, GT85® and 3-IN-ONE® brand names. Currently included in the WD-40 brand are the WD-40 Multi-Use Product and the WD-40 Specialist® and WD-40 BIKE® product lines. |
(2) |
The Company markets the following 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. |
(3) |
The Americas segment consists of the U.S., Canada and Latin America. |
(4) |
The EMEA segment consists of countries in Europe, the Middle East, Africa and India. |
(5) |
The Asia-Pacific segment consists of Australia, China and other countries in the Asia region. |
(6) |
Constant currency represents the translation of the current quarter and year-to-date results from the functional currencies of the Company's subsidiaries to U.S. dollars using the exchange rate in effect for the corresponding periods of the prior fiscal year. |
WD-40 COMPANY |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited and in thousands, except share and per share amounts) |
||||||
February 28, |
August 31, |
|||||
2017 |
2016 |
|||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
33,572 |
$ |
50,891 |
||
Short-term investments |
67,720 |
57,633 |
||||
Trade accounts receivable, less allowance for doubtful accounts of $268 and $394 at February 28, 2017 and August 31, 2016, respectively |
66,086 |
64,680 |
||||
Inventories |
37,980 |
31,793 |
||||
Other current assets |
6,187 |
4,475 |
||||
Total current assets |
211,545 |
209,472 |
||||
Property and equipment, net |
22,293 |
11,545 |
||||
Goodwill |
95,439 |
95,649 |
||||
Other intangible assets, net |
17,550 |
19,191 |
||||
Deferred tax assets, net |
621 |
621 |
||||
Other assets |
2,806 |
3,190 |
||||
Total assets |
$ |
350,254 |
$ |
339,668 |
||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
21,832 |
$ |
18,690 |
||
Accrued liabilities |
16,848 |
15,757 |
||||
Accrued payroll and related expenses |
10,548 |
20,866 |
||||
Revolving credit facility, current |
14,233 |
- |
||||
Income taxes payable |
3,119 |
3,381 |
||||
Total current liabilities |
66,580 |
58,694 |
||||
Revolving credit facility |
134,000 |
122,000 |
||||
Deferred tax liabilities, net |
17,442 |
16,365 |
||||
Other long-term liabilities |
2,668 |
2,214 |
||||
Total liabilities |
220,690 |
199,273 |
||||
Commitments and Contingencies |
||||||
Shareholders' equity: |
||||||
Common stock ― authorized 36,000,000 shares, $0.001 par value; 19,676,623 and 19,621,820 shares issued at February 28, 2017 and August 31, 2016, respectively; and 14,088,804 and 14,208,338 shares outstanding at February 28, 2017 and August 31, 2016, respectively |
||||||
20 |
20 |
|||||
Additional paid-in capital |
148,498 |
145,936 |
||||
Retained earnings |
300,797 |
289,642 |
||||
Accumulated other comprehensive income (loss) |
(33,128) |
(27,298) |
||||
Common stock held in treasury, at cost ― 5,587,819 and 5,413,482 shares at February 28, 2017 and August 31, 2016, respectively |
||||||
(286,623) |
(267,905) |
|||||
Total shareholders' equity |
129,564 |
140,395 |
||||
Total liabilities and shareholders' equity |
$ |
350,254 |
$ |
339,668 |
||
WD-40 COMPANY |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(Unaudited and in thousands, except per share amounts) |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
February 28, |
February 29, |
February 28, |
February 29, |
|||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||
Net sales |
$ |
96,519 |
$ |
94,550 |
$ |
185,767 |
$ |
187,072 |
||||
Cost of products sold |
42,057 |
42,188 |
80,265 |
83,302 |
||||||||
Gross profit |
54,462 |
52,362 |
105,502 |
103,770 |
||||||||
Operating expenses: |
||||||||||||
Selling, general and administrative |
29,842 |
28,692 |
58,833 |
56,540 |
||||||||
Advertising and sales promotion |
5,041 |
5,017 |
9,853 |
10,677 |
||||||||
Amortization of definite-lived intangible assets |
717 |
747 |
1,438 |
1,502 |
||||||||
Total operating expenses |
35,600 |
34,456 |
70,124 |
68,719 |
||||||||
Income from operations |
18,862 |
17,906 |
35,378 |
35,051 |
||||||||
Other income (expense): |
||||||||||||
Interest income |
133 |
183 |
280 |
331 |
||||||||
Interest expense |
(598) |
(417) |
(1,129) |
(789) |
||||||||
Other income |
9 |
1,320 |
273 |
1,269 |
||||||||
Income before income taxes |
18,406 |
18,992 |
34,802 |
35,862 |
||||||||
Provision for income taxes |
6,046 |
5,323 |
10,684 |
10,131 |
||||||||
Net income |
$ |
12,360 |
$ |
13,669 |
$ |
24,118 |
$ |
25,731 |
||||
Earnings per common share: |
||||||||||||
Basic |
$ |
0.87 |
$ |
0.95 |
$ |
1.69 |
$ |
1.78 |
||||
Diluted |
$ |
0.87 |
$ |
0.94 |
$ |
1.69 |
$ |
1.77 |
||||
Shares used in per share calculations: |
||||||||||||
Basic |
14,111 |
14,386 |
14,146 |
14,395 |
||||||||
Diluted |
14,143 |
14,429 |
14,182 |
14,445 |
||||||||
Dividends declared per common share |
$ |
0.49 |
$ |
0.42 |
$ |
0.91 |
$ |
0.80 |
||||
WD-40 COMPANY |
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(Unaudited and in thousands) |
||||||
Six Months Ended |
||||||
February 28, |
February 29, |
|||||
2017 |
2016 |
|||||
Operating activities: |
||||||
Net income |
$ |
24,118 |
$ |
25,731 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation and amortization |
3,298 |
3,311 |
||||
Net gains on sales and disposals of property and equipment |
(101) |
(15) |
||||
Deferred income taxes |
155 |
(407) |
||||
Excess tax benefits from settlements of stock-based equity awards |
(936) |
(1,544) |
||||
Stock-based compensation |
2,959 |
1,889 |
||||
Unrealized foreign currency exchange losses (gains), net |
1,153 |
(1,116) |
||||
Provision for bad debts |
(102) |
97 |
||||
Changes in assets and liabilities: |
||||||
Trade and other accounts receivable |
(4,088) |
(14,828) |
||||
Inventories |
(6,582) |
(4,858) |
||||
Other assets |
(1,459) |
(660) |
||||
Accounts payable and accrued liabilities |
4,793 |
3,199 |
||||
Accrued payroll and related expenses |
(11,727) |
(3,948) |
||||
Income taxes payable |
2,302 |
3,346 |
||||
Other long-term liabilities |
(36) |
84 |
||||
Net cash provided by operating activities |
13,747 |
10,281 |
||||
Investing activities: |
||||||
Purchases of property and equipment |
(12,896) |
(2,155) |
||||
Proceeds from sales of property and equipment |
271 |
92 |
||||
Purchases of short-term investments |
(17,212) |
(11,829) |
||||
Maturities of short-term investments |
4,517 |
4,278 |
||||
Net cash used in investing activities |
(25,320) |
(9,614) |
||||
Financing activities: |
||||||
Treasury stock purchases |
(18,718) |
(15,122) |
||||
Dividends paid |
(12,963) |
(11,591) |
||||
Proceeds from issuance of common stock |
359 |
708 |
||||
Excess tax benefits from settlements of stock-based equity awards |
936 |
1,544 |
||||
Net proceeds from revolving credit facility |
26,233 |
14,541 |
||||
Net cash used in financing activities |
(4,153) |
(9,920) |
||||
Effect of exchange rate changes on cash and cash equivalents |
(1,593) |
(2,333) |
||||
Net decrease in cash and cash equivalents |
(17,319) |
(11,586) |
||||
Cash and cash equivalents at beginning of period |
50,891 |
53,896 |
||||
Cash and cash equivalents at end of period |
$ |
33,572 |
$ |
42,310 |
||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wd-40-company-reports-second-quarter-2017-financial-results-300436141.html
SOURCE WD-40 Company
Copyright 2017 PR Newswire
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