PR Newswire
SAN DIEGO, July 7, 2016
SAN DIEGO, July 7, 2016 /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 third fiscal quarter ended May 31, 2016.
Financial Highlights and Summary
"We had a good quarter and are pleased we have seen solid year-over-year sales growth in maintenance products throughout all three of our trading blocs during the third quarter, despite the foreign currency exchange rate fluctuations which continue to impact our reported results," said Garry Ridge, WD-40 Company's president and chief executive officer. "Our gross margin this quarter reflects the lowest oil costs we've seen in well over a decade. Our long-term target for gross margin is 55 percent however, as the cost of crude oil continues to increase from the extremely low levels that flowed through our cost of goods in the third quarter, we expect to see pressure on gross margin in the coming quarters. Overall, we believe the tribe has positioned us for a strong finish to fiscal year 2016 and we are pleased that we will be able to reward them for their hard work across the globe," continued Ridge.
Net Sales by Product Group (in thousands):
| Three Months Ended May 31, | | Nine Months Ended May 31, | ||||||||||||||
| 2016 | | 2015 | | Change | | 2016 | | 2015 | | Change | ||||||
Maintenance products | $ | 86,560 | | $ | 81,512 | | | 6% | | $ | 253,442 | | $ | 253,005 | | | - |
Homecare and cleaning products | | 9,886 | | | 10,973 | | | (10)% | | | 30,076 | | | 33,164 | | | (9)% |
Total | $ | 96,446 | | $ | 92,485 | | | 4% | | $ | 283,518 | | $ | 286,169 | | | (1)% |
| | | | | | | | | | | | | | | | | |
Net Sales by Segment (in thousands):
| Three Months Ended May 31, | | Nine Months Ended May 31, | ||||||||||||||
| 2016 | | 2015 | | Change | | 2016 | | 2015 | | Change | ||||||
Americas | $ | 49,878 | | $ | 49,744 | | | - | | $ | 139,832 | | $ | 139,219 | | | - |
EMEA | | 32,922 | | | 30,335 | | | 9% | | | 100,634 | | | 103,605 | | | (3)% |
Asia-Pacific | | 13,646 | | | 12,406 | | | 10% | | | 43,052 | | | 43,345 | | | (1)% |
Total | $ | 96,446 | | $ | 92,485 | | | 4% | | $ | 283,518 | | $ | 286,169 | | | (1)% |
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Dividend and Share Repurchase
As previously announced, WD-40 Company's board of directors declared on Tuesday, June 21, 2016 a quarterly dividend of $0.42 per share payable July 29, 2016 to stockholders of record at the close of business on July 15, 2016.
On October 14, 2014 the board of directors approved a share repurchase plan. The plan became effective at the beginning of the third quarter of fiscal year 2015. Under the plan, the Company is authorized to acquire up to $75.0 million of its outstanding shares through August 31, 2016.
On June 21, 2016 the board of directors approved a new share repurchase plan. This new plan will become effective as of September 1, 2016. Under the new plan, the Company is authorized to acquire up to $75.0 million of its outstanding shares through August 31, 2018. The timing and the amount of any repurchases of common stock under either plan will be determined by management based on its evaluation of market conditions and other factors.
During the period from March 1, 2015 through May 31, 2016, the Company repurchased 438,487 shares at a total cost of $40.4 million under the currently effective $75.0 million plan.
Updated Fiscal Year 2016 Guidance
The Company's updated guidance for fiscal year 2016 is as follows:
The assumptions used in this guidance have been adjusted as it relates to foreign currency exchange rates to accommodate for the current events in Great Britain. Furthermore, this guidance does not include any future acquisitions or divestitures and assumes crude oil prices will remain close to current levels for the remainder of the fiscal year.
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 $378 million in fiscal year 2015 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.
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