[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed financial statements for the six months ended February 28, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | February 28, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$458,262** | **$449,039** | | Total Current Assets | $272,437 | $255,441 | | **Total Liabilities** | **$216,120** | **$218,513** | | Total Current Liabilities | $113,479 | $103,500 | | **Total Stockholders' Equity** | **$242,142** | **$230,526** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Six Months Ended Feb 28, 2025 | Six Months Ended Feb 29, 2024 | | :--- | :--- | :--- | | Net Sales | $299,599 | $279,521 | | Gross Profit | $163,803 | $148,494 | | Income from Operations | $48,402 | $45,125 | | Net Income | $48,776 | $33,018 | | Diluted EPS | $3.58 | $2.42 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended Feb 28, 2025 | Six Months Ended Feb 29, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,908 | $44,892 | | Net cash used in investing activities | ($1,800) | ($1,743) | | Net cash used in financing activities | ($12,633) | ($35,589) | | Net increase in cash and cash equivalents | $6,296 | $7,300 | - In Q1 FY2025, the company reclassified certain assets of its homecare and cleaning product businesses in the Americas and EIMEA segments as **held for sale, totaling $9.5 million**[45](index=45&type=chunk)[46](index=46&type=chunk) - The functional currency for the company's U.K. subsidiary was **changed from Pound Sterling to the Euro**, effective September 1, 2024, to reflect shifts in operating income currency mix[38](index=38&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial performance for H1 FY2025, highlighting sales growth and a tax-driven net income increase - For the six months ended Feb 28, 2025, **consolidated net sales increased by 7% to $299.6 million**, and **net income rose 48% to $48.8 million**, significantly impacted by a one-time favorable tax adjustment[103](index=103&type=chunk) - The company's business model targets a **55% gross margin** and **25% Adjusted EBITDA**; for H1 FY2025, it achieved a 55% gross margin but Adjusted EBITDA was 18%[144](index=144&type=chunk)[145](index=145&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Net sales grew 7% to $299.6 million and gross margin improved to 54.7% in H1 FY2025 Net Sales by Product Category (Six Months Ended, in thousands) | Product Category | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total maintenance products | $284,824 | $263,384 | 8% | | Homecare & cleaning products (HCCP) | $14,775 | $16,137 | (8)% | | **Total net sales** | **$299,599** | **$279,521** | **7%** | - **Gross margin increased by 160 basis points to 54.7%**, driven by lower costs of aerosol cans and specialty chemicals[118](index=118&type=chunk) - **SG&A expenses increased by 12% ($10.4 million)**, mainly due to higher employee-related costs ($5.7 million) and increased professional services fees ($1.3 million)[121](index=121&type=chunk) - Total advertising and promotional (A&P) spending for the six months was **$32.3 million**, up from $29.1 million, reflecting increased marketing support[128](index=128&type=chunk) [Net Sales by Segment](index=26&type=section&id=Net%20Sales%20by%20Segment) EIMEA segment sales grew 14%, Americas 6%, while Asia-Pacific declined 3% in H1 FY2025 Net Sales by Segment (Six Months Ended, in thousands) | Segment | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Americas | $134,965 | $127,582 | 6% | | EIMEA | $117,058 | $103,067 | 14% | | Asia-Pacific | $47,576 | $48,872 | (3)% | | **Total** | **$299,599** | **$279,521** | **7%** | - Americas sales growth was primarily driven by a **$7.0 million increase in Latin America**, benefiting from a new direct marketing model in Brazil[108](index=108&type=chunk) - EIMEA sales growth was due to **higher sales volume across nearly all regions** as demand recovered following prior price increases[112](index=112&type=chunk) - Asia-Pacific sales decreased mainly in distributor markets ($3.3 million) as distributors **reduced orders to normalize high inventory levels**[116](index=116&type=chunk) [Non-Operating Items and Net Income](index=37&type=section&id=Non-Operating%20Items%20and%20Net%20Income) A one-time $11.9 million tax benefit significantly increased net income and diluted EPS for H1 FY2025 - The **effective tax rate for Q2 FY2025 was (33.0)%**, a sharp decrease driven by the release of an **$11.9 million uncertain tax position** after the statute of limitations expired[86](index=86&type=chunk)[138](index=138&type=chunk) GAAP vs. Non-GAAP Adjusted EPS (Six Months Ended) | Metric | Feb 28, 2025 | Feb 29, 2024 | | :--- | :--- | :--- | | Diluted EPS - GAAP | $3.58 | $2.42 | | Release of Uncertain Tax Position | ($0.87) | — | | **Adjusted diluted EPS - Non-GAAP** | **$2.71** | **$2.42** | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased to $22.9 million while the company returned $31.4 million to shareholders - **Net cash from operating activities decreased by $22.0 million YoY**, primarily due to a $15.8 million decrease from changes in inventory balances[157](index=157&type=chunk)[158](index=158&type=chunk) - **Net cash used in financing activities decreased by $23.0 million YoY**, mainly due to net proceeds of $22.1 million from the revolving credit facility[160](index=160&type=chunk) - As of February 28, 2025, the company had **$53.0 million in cash and cash equivalents** and was in compliance with all debt covenants[153](index=153&type=chunk) - Under the 2023 Repurchase Plan, **$35.2 million remains available for share repurchases** as of February 28, 2025[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are incorporated by reference from the FY2024 Annual Report on Form 10-K - The information required for this item is **incorporated by reference** from the company's Annual Report on Form 10-K for the fiscal year ended August 31, 2024[171](index=171&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of February 28, 2025 - The Company's CEO and CFO concluded that as of February 28, 2025, the company's **disclosure controls and procedures were effective**[172](index=172&type=chunk) - There were **no material changes in internal control over financial reporting** during the quarter ended February 28, 2025[172](index=172&type=chunk) [PART II — OTHER INFORMATION](index=44&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending claims expected to have a materially adverse financial impact - As of February 28, 2025, the Company believes that **no pending claims will result in a loss that would have a materially adverse impact** on its financial condition[82](index=82&type=chunk)[175](index=175&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the FY2024 Annual Report on Form 10-K - There have been **no material changes in risk factors** from those disclosed in the Annual Report on Form 10-K for the fiscal year ended August 31, 2024[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details share repurchase activity, with 26,250 shares repurchased for $6.7 million in H1 FY2025 - The company is authorized to acquire up to **$50.0 million of its shares** through August 31, 2025, under the 2023 Repurchase Plan[177](index=177&type=chunk) Share Repurchases (Three Months Ended February 28, 2025) | Period | Total of Shares Purchased | Average Price Paid Per Share | Max $ Value of Shares That May Yet Be Purchased | | :--- | :--- | :--- | :--- | | Dec 2024 | 3,750 | $271.00 | $37,263,141 | | Jan 2025 | 3,750 | $234.93 | $36,382,152 | | Feb 2025 | 5,000 | $234.88 | $35,207,747 | | **Total** | **12,500** | **$245.73** | | [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement - During the quarter ended February 28, 2025, **no directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement**[180](index=180&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) Lists filed exhibits, including CEO/CFO certifications and iXBRL data files - The exhibits filed with this report include **CEO/CFO certifications** pursuant to Sarbanes-Oxley Sections 302 and 906, and financial statements formatted in iXBRL[181](index=181&type=chunk)

Group 1 - The WD-40 Company (NASDAQ: WDFC) is highlighted as one of the oldest positions in the investment portfolio, indicating a long-term investment strategy [1] - The company has experienced a significant stock decline, but the investment strategy employed by the firm has allowed for thriving during market selloffs [1] - The firm emphasizes a blended trading and income approach to enhance savings and retirement timelines, suggesting a proactive investment strategy [1] Group 2 - The company offers a money-back guarantee for its services, indicating confidence in its investment strategies and customer satisfaction [3] - The firm promotes its proven track record and encourages potential clients to take the next step in their investment journey [3]

Q2 FY25 Financial Performance - Net sales increased by 5% to $146.1 million, compared to $139.1 million in Q2 FY24[12] - Gross margin improved by 220 basis points to 54.6%, compared to 52.4% in Q2 FY24[12] - Operating income increased by 11% to $23.3 million, compared to $20.9 million in Q2 FY24[12] - Net income increased significantly by 92% to $29.9 million, compared to $15.5 million in Q2 FY24[12] - Diluted EPS also increased by 92% to $2.19, compared to $1.14 in Q2 FY24, which includes a $0.87 positive impact from a one-time income tax adjustment[12] Segment Performance - Americas segment sales increased by 3%, representing 45% of global net sales[14] - EIMEA segment sales increased by 10%, representing 41% of global net sales[19] - Asia-Pacific segment sales increased by 1%, representing 14% of global net sales[22] Growth and Strategy - The company targets mid-to-high single-digit CAGR for total company maintenance products[30] - The company is focused on four must-win battles: lead geographic expansion, accelerate premiumization, drive WD-40 Specialist growth, and turbo-charge digital commerce[34] - E-commerce sales increased by 9% year-to-date[36] FY25 Guidance (Pro Forma) - The company expects net sales between $600 million and $630 million, representing a 6% to 11% growth over FY24 pro forma results[51] - Gross margin is expected to increase to between 55% and 56%[51] - Diluted EPS is projected to be between $5.25 and $5.55, based on 13.5 million shares outstanding[51]

Financial Data and Key Metrics Changes - The company reported net sales of $146.1 million for the second quarter, an increase of 5% from the same quarter last year [9] - Adjusting for foreign currency translation, net sales would have been $150.9 million, reflecting a 9% increase compared to the prior year [10] - Gross margin improved to 54.6%, up from 52.4% last year, representing an improvement of 220 basis points [48][49] - Adjusted EBITDA was $25.8 million, up 10% from the prior year [58] Business Line Data and Key Metrics Changes - Net sales for core maintenance products reached $139.3 million, a 6% increase despite currency headwinds [11] - Sales of WD-40 Multi-Use Product in Latin America increased by 47% compared to the prior year quarter [13] - Sales of WD-40 Specialist products were up 12% year-to-date, with strong growth in EIMEA and the Americas [32][33] Market Data and Key Metrics Changes - Total sales in the Americas increased 3% to $65.5 million, with a 4% increase in maintenance products [12] - EIMEA sales increased 10% to $59.6 million, with maintenance products up 11% [17] - Asia Pacific sales decreased 1% to $21 million, primarily due to lower sales of WD-40 Multi-Use product [20] Company Strategy and Development Direction - The company is focusing on geographic expansion and exploring alternative go-to-market strategies [27][28] - The Must-Win Battles include accelerating premiumization and driving WD-40 Specialist growth [30][32] - The company aims to achieve a gross margin of between 55% and 56% in fiscal year 2025, one year earlier than previously projected [51] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical fragmentation is increasing, which may lead to new market strategies [27] - The company expects cost savings from supply chain optimization to offset potential tariff impacts [41][43] - Future guidance for fiscal year 2025 includes net sales growth projected between 6% and 11% [69] Other Important Information - The anticipated divestiture of the home care and cleaning business is progressing, with discussions ongoing with potential buyers [46] - Employee engagement index score increased to 94%, indicating a motivated workforce [39] - The company plans to maintain a disciplined capital allocation strategy, prioritizing dividends and share repurchases [64] Q&A Session Summary Question: Impact of tariffs on operations - Management indicated that the centralized supply chain mitigates tariff risks, with most manufacturing occurring in the U.S. [80] Question: Retaliatory tariffs from China - Management stated there is currently no material risk to operations in China due to localized supply chains [84] Question: Supply chain optimization details - Management explained that supply chain optimization involves a combination of dual and sole sourcing to create a diversified geographic footprint [86] Question: Timing for qualifying suppliers - Management noted that qualifying a new supplier can take 18 months to 2 years [90] Question: Operating income guidance - Management clarified that the operating income guidance remains unchanged due to foreign currency impacts [92] Question: Potential upside from foreign exchange fluctuations - Management acknowledged that recent trends in the euro could provide a tailwind if they hold [95]

Financial Performance - Total net sales for the second quarter were $146.1 million, an increase of 5 percent compared to the prior year fiscal quarter[5]. - Maintenance product sales reached $139.3 million, reflecting a 6 percent increase year-over-year, driven by strong performance in EIMEA and Latin America[5]. - Net sales for the six months ended February 28, 2025, increased to $299.6 million, up from $279.5 million in the same period of 2024, representing a growth of approximately 7.2 percent[27]. - Net income surged to $29.9 million, a 92 percent increase from the prior year fiscal quarter, aided by a favorable tax adjustment of $11.9 million[5]. - Net income for the six months ended February 28, 2025, was $48.8 million, compared to $33.0 million for the same period in 2024, indicating a growth of approximately 47.6 percent[29]. Earnings and Margins - Gross margin improved to 54.6 percent, up from 52.4 percent in the prior year fiscal quarter, representing a 220 basis point increase[5]. - Diluted earnings per share rose to $2.19, a 92 percent increase, with non-GAAP adjusted diluted EPS at $1.32, up 16 percent[5]. - Diluted earnings per share are now expected to be between $5.25 and $5.55, reflecting anticipated growth of 11 to 17 percent compared to 2024 pro forma results[19]. Segment Performance - The Americas segment accounted for 45 percent of total net sales, with a 3 percent increase in sales, primarily due to a 4 percent rise in WD-40 Multi-Use Product sales[9]. - EIMEA segment sales increased by 10 percent, driven by a 12 percent rise in WD-40 Multi-Use Product sales, particularly in Italy and the Benelux region[9]. - Asia-Pacific segment sales decreased by 1 percent, with a notable 2 percent decline in WD-40 Multi-Use Product sales, although sales in China increased by 5 percent[9]. Guidance and Future Plans - The company revised its fiscal year 2025 guidance, projecting net sales growth between 6 and 11 percent, with total net sales expected to be between $600 million and $630 million[12]. - The company plans to divest its homecare and cleaning product portfolios in the Americas and United Kingdom, as these products represented only 5 percent of total net sales[10]. Tax and Financial Position - The provision for income tax has been reduced and is expected to be around 22.5 percent[19]. - The company reported a tax benefit from the release of an uncertain tax position amounting to $11.9 million[29]. - Total current assets increased to $272.4 million as of February 28, 2025, compared to $255.4 million as of August 31, 2024[25]. - Total liabilities decreased to $216.1 million as of February 28, 2025, from $218.5 million as of August 31, 2024[25]. - Cash and cash equivalents at the end of the period were $53.0 million, compared to $55.4 million at the end of the same period in 2024[29]. - Operating expenses for the six months ended February 28, 2025, were $115.4 million, up from $103.4 million in the same period of 2024, reflecting an increase of approximately 11.5 percent[27]. Reporting - The company expects to file its Quarterly Report on Form 10-Q for the period ended February 28, 2025, on April 9, 2025[21].

Company Overview - Quad 7 Capital is a team of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and the sciences [1] - The company has been sharing investment opportunities for nearly 12 years, focusing on short- and medium-term investments, income generation, special situations, and momentum trades [1] - Quad 7 Capital is best known for its February 2020 call to sell everything and go short, and has maintained an average portfolio allocation of 95% long and 5% short since May 2020 [1] Investment Strategy - The company's BAD BEAT Investing group provides in-depth, high-quality research with clear entry and exit targets, aiming to save investors time [1] - Quad 7 Capital focuses on teaching investors to become proficient traders through their playbook, rather than just providing trades [1] - The company shares both long and short trades, and its analysts personally invest in the equities they discuss within the BAD BEAT Investing group [1] Benefits of BAD BEAT Investing - Investors can learn to understand the pinball nature of markets and execute well-researched written trade ideas each week [2] - The service includes access to 4 chat rooms, daily complimentary key analyst upgrade/downgrade summaries, and learning basic options trading [2] - Extensive trading tools are provided to enhance the investment experience [2]

Core Viewpoint - WD-40's stock declined 6.3% despite beating Q1 earnings forecasts, indicating investor concerns about future guidance rather than current performance [1][3]. Financial Performance - WD-40 reported Q1 earnings of $1.39 per share, exceeding analyst expectations of $1.26 per share [1]. - Sales for the quarter reached $153.5 million, representing a 9% increase compared to the same quarter last year [1]. - The gross profit margin improved by 1 percentage point to 54.8% [1]. Expense Analysis - Selling, general, and administrative expenses increased by 14%, outpacing sales growth [2]. - Advertising and sales promotions expenses rose by 20%, which balanced out the gross margin improvements [2]. - Consequently, earnings per share grew by 9%, aligning closely with sales growth [2]. Future Guidance - For fiscal 2025, WD-40 forecasts sales growth between 6% and 11%, suggesting slower growth compared to Q1 [4]. - The projected gross profit margin is expected to be between 54% and 55%, indicating a slight decline from Q1's 54.8% [4]. - Management anticipates earnings per share for the year to be between $5.20 and $5.45, which is below Wall Street's expectation of $5.36 [5]. Valuation Concerns - The anticipated 2% annual earnings growth raises questions about the justification of WD-40's current stock price, which is at 46 times trailing earnings [5].

Q1 FY25 Financial Results - Net sales were $131 million[10], and if adjusted for the estimated translation impact of foreign currency, it was favorably impacted by $15 million[10] - Gross margin was 548%[10], an increase of 100 bps[48] - Operating income was $251 million[10] - Net income was $189 million[10] - EPS (Diluted) was $139[10] Segment Performance (Q1 FY24 vs Q1 FY25) - Americas segment sales increased by 8%[15], representing 45% of global net sales[15] - EIMEA segment sales increased by 18%[17], representing 38% of global net sales[18] - Asia-Pacific segment sales increased by 4%[20], representing 17% of global net sales[20] Growth and Strategy - The company has long-term growth targets for maintenance products[26] - The company is divesting certain homecare and cleaning brands[4], which will impact financial results temporarily[47] - FY24 pro forma net sales were $600 to $630 million[58]

Financial Data and Key Metrics - The company encourages investors to review the earnings presentation, earnings press release, and Form 10-Q for the period ending November 30, 2024, for detailed financial information [2] - The call includes discussions on certain non-GAAP measures, with descriptions and reconciliations available in SEC filings and earnings documents on the investor relations website [3] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific details on company strategy or industry competition were provided in the content Management Commentary on Operating Environment and Future Outlook - The call includes forward-looking statements about the company's expectations for future performance, with actual results potentially differing materially [3] Other Important Information - A replay and transcript of the call will be made available shortly after the call on the investor relations website [2] Q&A Session Summary - No Q&A session details were provided in the content

Sales Performance - Consolidated net sales increased by $13.1 million or 9% to $153.5 million compared to the prior year, driven by higher sales volume and price increases[97] - Americas segment sales grew 8% to $69.4 million, led by 9% growth in WD-40 Multi-Use Product sales[98][99] - EIMEA segment sales surged 18% to $57.5 million, with WD-40 Multi-Use Product sales up 21%[98][105] - Asia-Pacific segment sales declined 4% to $26.6 million, with WD-40 Multi-Use Product sales down 6%[98][108] - Net sales increased to $153.5 million in Q3 2024, up 9.3% from $140.4 million in Q3 2023[16] - Total net sales for the three months ended November 30, 2024, were $153.495 million, up from $140.416 million in the same period in 2023[68] - WD-40 Multi-Use Product sales increased to $118.547 million in Q3 2024 from $107.677 million in Q3 2023[68] - WD-40 Specialist sales rose to $19.172 million in Q3 2024 from $16.842 million in Q3 2023[68] - Foreign currency exchange rates favorably impacted consolidated net sales by $1.5 million[97] - Asia-Pacific segment net sales decreased, with WD-40 Multi-Use Product sales down $1.3 million (6%), driven by a $2.6 million decline in Asia distributor markets, partially offset by a $1.0 million increase in China[109] - WD-40 Specialist sales in the Asia-Pacific segment increased $1.2 million (17%), driven by higher sales volume in Iberia, U.K., and Italy, each up $0.5 million, $0.3 million, and $0.3 million respectively[109] Profitability and Margins - Gross profit margin improved to 54.8% from 53.8% in the prior year period[97] - Net income rose 8% to $18.9 million, with diluted EPS increasing 9% to $1.39[97] - Gross profit increased to $84.1 million, up $8.5 million, with gross margin improving to 54.8% from 53.8% (100 basis points increase)[111] - Net income rose to $18.9 million in Q3 2024, an 8.3% increase from $17.5 million in Q3 2023[16] - Gross profit margin improved to 54.8% in Q3 2024, up from 53.8% in Q3 2023[16] - Net income for the three months ended November 30, 2024, was $18.925 million, compared to $17.482 million for the same period in 2023[19] - Net income for the three months ended November 30, 2024, was $18.925 million, compared to $17.482 million for the same period in 2023[67] Expenses and Costs - SG&A expenses increased to $50.5 million, up $6.4 million (14%), representing 32.9% of net sales compared to 31.4% in the prior year[113] - Advertising and sales promotion expenses increased to $8.4 million, up $1.4 million (20%), representing 5.5% of net sales compared to 5.0% in the prior year[116] - Operating expenses increased to $59.0 million in Q3 2024, up 14.8% from $51.4 million in Q3 2023[16] - Americas segment operating income decreased to $12.7 million, down $1.5 million (11%), with operating expenses increasing $4.1 million primarily due to higher employee-related costs[121] Shareholder Returns and Capital Allocation - The company repurchased 13,750 shares at an average price of $263.75 per share for a total cost of $3.6 million under its $50 million share repurchase plan[161][163] - Returned $15.6 million to stockholders through share repurchases and dividends in the quarter[97] - The company declared a 7% increase in the regular quarterly cash dividend, raising it from $0.88 per share to $0.94 per share, payable on January 31, 2025[88] - Treasury stock purchases totaled $3.6 million in Q3 2024, up 50.2% from $2.4 million in Q3 2023[22] - Dividends paid increased to $12.0 million in Q3 2024, up 5.9% from $11.3 million in Q3 2023[22] - Cash dividends paid in Q3 2024 were $0.88 per share, totaling $11.958 million, compared to $0.83 per share and $11.297 million in Q3 2023[19] - The company repurchased 13,750 shares at an average price of $263.75 per share, totaling $3.6 million, leaving $38.3 million authorized under the 2023 Repurchase Plan[66] Cash Flow and Liquidity - Cash and cash equivalents grew to $54.9 million as of November 30, 2024, up 17.6% from $46.7 million at August 31, 2024[14] - Total current assets increased to $262.8 million as of November 30, 2024, up 2.9% from $255.4 million at August 31, 2024[14] - Net cash provided by operating activities was $14.9 million in Q3 2024, down 44.5% from $26.9 million in Q3 2023[22] - The company extended its revolving credit facility maturity date to April 30, 2029, under the Second Amended and Restated Credit Agreement[58] - The company's revolving credit agreement includes a $125.0 million limit on other unsecured indebtedness[62] Tax and Financial Adjustments - The release of an unrecognized tax benefit is expected to generate a favorable income tax adjustment of $11.9 million in the fiscal second quarter ending February 28, 2025[89] - The effective tax rate decreased by 2.2% from 24.2% in 2023 to 22.0% in 2024, primarily due to increased excess tax benefits from stock-based equity awards[81] Inventory and Assets - Total inventories decreased from $79.088 million as of August 31, 2024, to $74.887 million as of November 30, 2024, with finished goods inventory increasing from $60.331 million to $63.874 million[45] - Total assets held for sale as of November 30, 2024, were $9.865 million, including intangibles, goodwill, and inventory[44] - Goodwill decreased by $1.069 million due to assets held for sale, with the balance as of November 30, 2024, at $96.584 million[47] - The carrying amount of definite-lived intangible assets decreased from $6.222 million as of August 31, 2024, to $2.287 million as of November 30, 2024, due to amortization and translation adjustments[52] - The gross carrying amount of definite-lived intangible assets increased slightly from $38.863 million as of August 31, 2024, to $39.091 million as of November 30, 2024[51] - The company's goodwill showed no indicators of impairment as of November 30, 2024, with no impairment losses recorded[48] Liabilities and Debt - Total liabilities decreased to $221.0 million as of November 30, 2024, down 1.1% from $218.5 million at August 31, 2024[14] - The fair value of the company's senior notes was estimated at $60.3 million as of November 30, 2024, compared to a carrying value of $66.4 million[39] Operational and Strategic Changes - The company changed the functional currency of its U.K. subsidiary from Pound Sterling to Euro effective September 1, 2024[36] - The company has no outstanding commitments for purchasing finished goods and components as of November 30, 2024[75] Homecare and Cleaning Products - Homecare and cleaning product sales decreased 3% to $7.99 million, with a 7% decline in the Americas segment[97][99] - Homecare and cleaning product sales in the Asia-Pacific segment decreased $0.4 million (19%) due to reduced demand in the U.K. from lower advertising and promotional activities[109]