WD-40 Company (NASDAQ:WDFC) Q4 2022 Earnings Conference Call October 19, 2022 5:00 PM ET Company Participants Wendy Kelley - Vice President, Stakeholder and Investor Engagement Garry Ridge - Chairman Steve Brass - President and CEO Jay Rembolt - Vice President and CFO Sara Hyzer - Vice President, Global Finance Strategy and Incoming CFO Conference Call Participants Linda Bolton Weiser - Davidson Daniel Rizzo - Jefferies Operator Ladies and gentlemen, thank you for standing by. Good day. And welcome to the W ...

WD-4U | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------|-------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 FY22 | | | | | | | | | | | July 7, 2022 | EARNINGS RESULTS | | | | | | | | | | | | | | | | | | | | | | Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of WD-40 Company, its subs ...

WD-40 Company (NASDAQ:WDFC) Q3 2022 Earnings Conference Call July 7, 2022 5:00 PM ET Company Participants Wendy Kelley - Vice President, Stakeholder and Investor Engagement Garry Ridge - Chairman and CEO Jay Rembolt - Vice President and CFO Steve Brass - President, Chief Operating Officer and Incoming CEO Sara Hyzer - Vice President, Global Finance Strategy and Incoming CFO Conference Call Participants Daniel Rizzo - Jefferies Linda Bolton Weiser - D.A. Davidson Operator Ladies and gentlemen, thank you for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2022 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 000-06936 Commission Company Name: WD 40 CO WD-40 COMPANY (Exact name of registrant as specified in its charter) Delaware ...

WD-40 Company (NASDAQ:WDFC) Q2 2022 Earnings Conference Call April 7, 2022 5:00 PM ET Company Participants Wendy Kelley - Investor Relations Garry Ridge - Chairman and Chief Executive Officer Jay Rembolt - Vice President and Chief Financial Officer Steve Brass - President, Chief Operating Officer and Incoming Chief Executive Officer Conference Call Participants Daniel Rizzo - Jefferies Linda Bolton Weiser - D.A. Davidson Operator Ladies and gentlemen, thank you for standing by. Good day and welcome to the W ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2022 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 000-06936 Commission Company Name: WD 40 CO WD-40 COMPANY (Exact name of registrant as specified in its charter) Dela ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------|---------|----------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 FY22 | | | | | | | | | January 6, 2022 | RESULTS | EARNINGS | | | | | | | | | | | | | | | | | Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of WD-40 Company, its subsidiaries and its legal entities. WD-40 Company markets main ...

Financial Data and Key Metrics Changes - The company reported net sales of $134.7 million for Q1 FY2022, an increase of 8% compared to the previous year [7] - Gross margin for Q1 was 51%, reflecting significant cost inflation, leading to a net income of $18.6 million, down 21% from $23.6 million in the same quarter last year [8][66] - Gross margin declined to 50.8% from 56.4% year-over-year, a decrease of 560 basis points [54] Business Line Data and Key Metrics Changes - Sales of WD-40 Multi-Use Product increased 14% globally to $107.1 million [18] - Sales of WD-40 Specialist decreased 5% globally to $12.5 million [20] - Sales of products under the homecare and cleaning initiative increased 12% globally to $15.1 million [22] Market Data and Key Metrics Changes - In the Americas, net sales increased 4% to $56.3 million, with a 42% increase in Latin America [27] - EMEA net sales rose 5% to $57.5 million, with a constant currency increase of 1% [31] - Asia Pacific net sales surged 54% to $20.9 million, with China seeing a 69% increase [37] Company Strategy and Development Direction - The company aims to drive net sales to between $650 million and $700 million by the end of FY2025, following a 55/30/25 business model [10][52] - Strategic initiatives include building a future-ready business, operational excellence, and expanding the WD-40 Multi-Use Product line [9][14][17] - The company plans to double the number of third-party manufacturers in the U.S. to enhance supply chain resilience [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a volatile and challenging environment, with expectations of continued cost headwinds [60] - The company anticipates net sales growth of 7% to 12% for FY2022, with gross margin expected between 52% and 54% [71] - Management expressed confidence in restoring gross margins to historic levels through planned price increases and operational improvements [61] Other Important Information - The company increased its quarterly cash dividend by over 8% to $0.78 per share [68] - A new $75 million share repurchase plan was approved, with 32,000 shares repurchased at a cost of approximately $7.4 million [69] Q&A Session Summary Question: Were sales losses due to supply chain constraints deferred or permanent? - Management indicated that losing a sale typically means it is lost, but emphasized that 80% of revenue came from core products, which were up 14% [79][80] Question: Was there a pull forward in sales in China due to the upcoming Chinese New Year? - Management stated that there was no material pull forward expected, and they anticipate a solid year in China [81] Question: What is the current percentage of Smart Straw sales? - Current sales are in the mid-40s percentage, with expectations to approach 50% for the year [82] Question: How does the company raise awareness in key markets? - The company utilizes sampling programs and expands distribution to increase product availability and awareness [84] Question: What is the outlook for gross margin recovery? - Management expects a potential slight uptick in gross margin in Q2, but full recovery may take longer [96] Question: Why are there supply chain issues specifically with WD-40 Specialist? - Management prioritized core products over Specialist due to supply constraints, but is working to recover and expand capacity [99] Question: What is the expected A&P spending for the year? - Management anticipates that A&P spending will align with the projected range for the year, despite some timing issues [102]

[PART I — FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements, management's analysis, market risk, and internal controls for the quarter [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 FY2022 financials report 8% net sales growth, but net income decreased 21% to $18.6 million, with negative operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a decrease in total assets and cash, offset by an increase in inventories Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Nov 30, 2021 | Aug 31, 2021 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$421,439** | **$430,203** | **($8,764)** | | Cash and cash equivalents | $59,519 | $85,961 | ($26,442) | | Inventories | $67,875 | $55,752 | $12,123 | | **Total Liabilities** | **$223,041** | **$229,821** | **($6,780)** | | Long-term borrowings | $112,729 | $114,940 | ($2,211) | | **Total Shareholders' Equity** | **$198,398** | **$200,382** | **($1,984)** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations shows an 8% increase in net sales but a 21% decrease in net income and diluted EPS Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q1 FY2022 (ended Nov 30, 2021) | Q1 FY2021 (ended Nov 30, 2020) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $134,746 | $124,559 | 8.2% | | Gross Profit | $68,470 | $70,246 | -2.5% | | *Gross Margin* | *50.8%* | *56.4%* | *-5.6 pts* | | Income from Operations | $24,060 | $28,392 | -15.3% | | Net Income | $18,555 | $23,623 | -21.4% | | Diluted EPS | $1.34 | $1.72 | -22.1% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations turned negative, primarily due to inventory build-up and increased financing activities Cash Flow Summary (in thousands) | Activity | Three Months Ended Nov 30, 2021 | Three Months Ended Nov 30, 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($947) | $23,921 | | Net cash used in investing activities | ($2,362) | ($3,670) | | Net cash used in financing activities | ($21,937) | ($11,089) | | **Net (decrease) increase in cash** | **($26,442)** | **$9,382** | - The significant decrease in operating cash flow was primarily due to a **$13.1 million increase in inventories** and a **$7.3 million decrease in accrued payroll and related expenses**[22](index=22&type=chunk) - The increase in cash used for financing activities was driven by **$7.4 million in treasury stock purchases**, which did not occur in the prior-year period[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail revenue composition, share repurchase, income taxes, segment performance, and a subsequent dividend increase - **Revenue:** Total net sales grew **8% YoY**. Maintenance products sales increased **10% to $126.0 million**, while Homecare and cleaning products (HCCP) sales decreased **15% to $8.7 million**[56](index=56&type=chunk) - **Share Repurchase:** A new plan authorized **$75.0 million** in repurchases through August 31, 2023, with **32,000 shares repurchased for $7.4 million** in November 2021[54](index=54&type=chunk) - **Income Taxes:** The effective tax rate for the quarter was **19.8%**, up from **15.7%** in the prior-year period, due to increased nondeductible compensation expenses[71](index=71&type=chunk) - **Segments:** Sales grew across all geographic segments (Americas +4%, EMEA +5%, Asia-Pacific +34%), but operating income fell in Americas (-18%) and EMEA (-20%), while increasing significantly in Asia-Pacific (+44%)[75](index=75&type=chunk) - **Subsequent Event:** The Board approved an **8% increase in the quarterly cash dividend**, from **$0.72 to $0.78 per share**, on December 13, 2021[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 8% net sales growth, but profitability declined due to supply chain issues and inflation, leading to a 21% net income decrease [Overview](index=19&type=section&id=Overview) The overview highlights 8% net sales growth, significant gross margin decline, and a 21% net income drop, impacted by supply chain issues and inflation - Consolidated net sales increased by **8% to $134.7 million**; on a constant currency basis, sales would have increased by **5%**[90](index=90&type=chunk) - Gross margin decreased significantly to **50.8%** from **56.4%** in the prior year, primarily due to increased costs from global supply chain challenges and inflation[90](index=90&type=chunk) - Consolidated net income fell **21% to $18.6 million**, and diluted EPS was **$1.34**, down from **$1.72** in the prior year period[90](index=90&type=chunk) - The COVID-19 pandemic caused mixed effects, increasing demand but also leading to significant supply chain disruptions, material shortages, and increased costs[88](index=88&type=chunk)[91](index=91&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Results of operations show varied sales growth across segments, led by Asia-Pacific, and a significant gross margin decline due to rising costs Net Sales by Segment (in thousands) | Segment | Q1 FY2022 | Q1 FY2021 | % Change | | :--- | :--- | :--- | :--- | | Americas | $56,288 | $54,188 | 4% | | EMEA | $57,555 | $54,749 | 5% | | Asia-Pacific | $20,903 | $15,622 | 34% | | **Total** | **$134,746** | **$124,559** | **8%** | - **Americas:** Sales grew **4%**, driven by a **41% increase in Latin America** due to price increase pull-forward and momentum in Mexico, partially offset by a **1% sales decrease in the U.S.** caused by supply chain constraints impacting product availability[100](index=100&type=chunk) - **EMEA:** Sales grew **5%** (**1% in constant currency**), led by distributor markets, which increased **9%**, particularly in Poland, Russia, and India[104](index=104&type=chunk)[105](index=105&type=chunk) - **Asia-Pacific:** Sales surged **34%** (**31% in constant currency**), driven by a **69% increase in China** due to promotions and price increase pull-forward and a **36% increase in Asia distributor markets** as COVID-19 lockdown measures eased[107](index=107&type=chunk) - Gross margin fell by **560 basis points**, primarily due to higher costs of specialty chemicals (-390 bps), increased warehousing and freight costs (-140 bps), and higher filling fees (-70 bps), partially offset by sales price increases (+120 bps)[109](index=109&type=chunk)[112](index=112&type=chunk) [Performance Measures and Non-GAAP Reconciliations](index=30&type=section&id=Performance%20Measures%20and%20Non-GAAP%20Reconciliations) This section presents the company's performance against its 55/30/25 business model targets, showing results below long-term goals 55/30/25 Business Model Performance | Performance Measure | Q1 FY2022 Result | Q1 FY2021 Result | Long-Term Target | | :--- | :--- | :--- | :--- | | Gross Margin (GAAP) | 51% | 56% | ≥ 55% | | Cost of Doing Business (Non-GAAP) | 32% | 32% | 30% | | EBITDA % of Net Sales (Non-GAAP) | 19% | 24% | > 25% | - The company's performance for the quarter was below its long-term targets for Gross Margin and EBITDA, reflecting significant cost pressures[131](index=131&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital resources, supported by cash and credit, despite negative operating cash flow and a new share buy-back plan - The company's financial condition and liquidity remain strong, with principal sources being cash on hand, cash from operations, and an available revolving credit facility[135](index=135&type=chunk)[136](index=136&type=chunk) - Net cash used in operations was **$0.9 million**, a significant decrease from **$23.9 million provided in the prior year**, primarily due to a deliberate increase in inventory to manage supply chain challenges[135](index=135&type=chunk)[141](index=141&type=chunk) - As of November 30, 2021, the company was in compliance with all debt covenants, including a consolidated leverage ratio and an interest coverage ratio[137](index=137&type=chunk)[52](index=52&type=chunk) - A new share buy-back plan was approved on October 12, 2021, authorizing the acquisition of up to **$75.0 million in shares** through August 31, 2023[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates market risk disclosures from the Annual Report on Form 10-K, confirming no material changes during the quarter - The company refers to its most recent Form 10-K for disclosures regarding market risk, indicating no material changes during the quarter[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period[159](index=159&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[160](index=160&type=chunk) [PART II — OTHER INFORMATION](index=35&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, and a list of exhibits [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference, noting the dismissal of the Jakarta Litigation claim with an appeal pending - The report incorporates information on legal proceedings by reference to Note 11 of the financial statements[162](index=162&type=chunk) - The Jakarta Litigation claim for over **$25.0 million** against the company was dismissed, though an appeal is pending, with an unfavorable outcome deemed remote[63](index=63&type=chunk)[65](index=65&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K were identified during the quarter - The company states that there have been no material changes in its risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended August 31, 2021[163](index=163&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A new share buy-back plan authorized $75.0 million in repurchases, with 32,000 shares bought for $7.4 million in November 2021 Share Repurchases in Q1 FY2022 | Period | Total Shares Purchased | Average Price Paid Per Share | Total Cost (approx.) | Max Value Remaining Under Plan | | :--- | :--- | :--- | :--- | :--- | | Nov 1 - Nov 30, 2021 | 32,000 | $230.79 | $7.4 million | $67,614,176 | [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, a Libor Transition Agreement, and financial statements in iXBRL format - The exhibits filed with the report include corporate governance documents, a Libor Transition Agreement, certifications required by the Sarbanes-Oxley Act, and the financial statements in iXBRL format[167](index=167&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2021 9715 Businesspark Avenue, San Diego, California 92131 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 000-06936 Commission Company Name: WD 40 CO WD-40 COMPANY (Exact name of registrant as ...