[Part I](index=4&type=section&id=PART%20I) [Business](index=4&type=section&id=Item%201.%20Business) The company operates globally, selling maintenance and homecare products across two main groups with a focus on strategic growth initiatives - The company's sales are derived from two main product groups: maintenance products sold globally, and homecare and cleaning products sold primarily in North America, the U.K., and Australia[20](index=20&type=chunk) - WD-40's strategic initiatives focus on: (i) building a business for the future (ESG focus), (ii) attracting and developing employees (tribe members), (iii) operational excellence, (iv) growing WD-40 Multi-Use Product, (v) growing the WD-40 Specialist product line, and (vi) expanding portfolio opportunities[21](index=21&type=chunk) - As of the report date, the company employed **583 people** ('tribe members') across 15 countries, with women comprising **46% of the global workforce** and a **93% employee engagement level** in 2022[24](index=24&type=chunk)[25](index=25&type=chunk) - The company outsources its finished goods manufacturing to third-party manufacturers in numerous countries, including the U.S., U.K., China, and Mexico, while producing its core concentrate in-house and with contractors[43](index=43&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from global economic conditions, supply chain disruptions, cost volatility, and cybersecurity threats - Adverse global economic conditions, including inflation and supply chain disruptions, have increased costs and may continue to unfavorably impact gross margin and operating results[53](index=53&type=chunk)[54](index=54&type=chunk) - The company relies on a limited number of third-party contract manufacturers and suppliers, exposing it to risks of production disruption, capacity constraints, and increased costs[64](index=64&type=chunk)[65](index=65&type=chunk) - Approximately **66% of net sales in FY2022** were outside the U.S., exposing the company to foreign currency risk, geopolitical instability, and complex international regulations[67](index=67&type=chunk)[68](index=68&type=chunk) - The ongoing implementation of a new information system presents risks of operational interruption and significant incremental costs if difficulties are encountered[74](index=74&type=chunk) - Dependence on a limited number of large chain store customers creates risk, as changes in their strategies could harm sales[96](index=96&type=chunk) [Unresolved Staff Comments](index=19&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[117](index=117&type=chunk) [Properties](index=19&type=section&id=Item%202.%20Properties) The company owns facilities in California and the UK and leases various office, R&D, and sales spaces across its global operating segments - The company owns an office in San Diego, CA, and an office and plant facility in Milton Keynes, UK[118](index=118&type=chunk)[119](index=119&type=chunk) - Leased properties include a research and development facility in New Jersey and various offices in Canada, Mexico, Germany, France, Italy, Spain, Portugal, the Netherlands, Australia, China, and Malaysia[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Legal Proceedings](index=19&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from the notes to the consolidated financial statements - The required information is incorporated by reference from Note 12 of the financial statements[121](index=121&type=chunk) [Mine Safety Disclosures](index=19&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[122](index=122&type=chunk) [Part II](index=20&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=20&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on NASDAQ, with a history of paying dividends and a share repurchase plan effective through August 2023 - The company's common stock is traded on the NASDAQ Global Select Market under the symbol **WDFC**[125](index=125&type=chunk) - In December 2021, the Board of Directors **increased the regular quarterly cash dividend by 8%** from $0.72 to $0.78 per share[126](index=126&type=chunk) - A new share buy-back plan was approved on October 12, 2021, authorizing the repurchase of up to **$75.0 million** of outstanding shares through August 31, 2023[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2022 net sales grew 6% to $518.8 million, but gross margin fell sharply due to cost inflation, and operating cash flow decreased significantly [Highlights and Significant Developments](index=21&type=section&id=Highlights%20and%20Significant%20Developments) FY2022 saw 6% net sales growth despite unfavorable currency impacts, with gross margin declining significantly due to supply chain and inflation pressures FY 2022 Financial Highlights vs. FY 2021 | Metric | FY 2022 | FY 2021 | Change | |:--- |:--- |:--- |:--- | | **Net Sales** | $518.8 million | $488.1 million | +6% | | **Gross Margin** | 49.1% | 54.0% | -4.9 p.p. | | **Net Income** | $67.3 million | $70.2 million | -4% | | **Diluted EPS** | $4.90 | $5.09 | -4% | - The company suspended sales to Russia and Belarus in March 2022, which represented approximately **3% of consolidated net sales** in fiscal year 2021[143](index=143&type=chunk) - Global supply chain issues and inflation led to increased costs and negatively impacted gross margin, prompting price increases across all markets[137](index=137&type=chunk)[139](index=139&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) FY2022 net sales grew 6% to $518.8 million, driven by the Americas and Asia-Pacific, while gross margin fell 490 basis points due to higher costs Net Sales by Segment (FY2022 vs. FY2021) | Segment | FY 2022 Sales | FY 2021 Sales | % Change | Constant Currency % Change | |:--- |:--- |:--- |:--- |:--- | | **Americas** | $240.2 million | $214.6 million | +12% | +12% | | **EMEA** | $204.7 million | $208.3 million | -2% | +2% | | **Asia-Pacific** | $73.9 million | $65.3 million | +13% | +14% | | **Total** | **$518.8 million** | **$488.1 million** | **+6%** | **+8%** | Gross Margin Change Drivers (bps) | Driver | Impact (bps) | |:--- |:--- | | Sales Price Increases | +390 | | Higher Specialty Chemical Costs | (430) | | Higher Aerosol Can Costs | (180) | | Higher Warehousing/Freight Costs | (110) | | Higher Filling Fees | (100) | | Foreign Currency Exchange Rates (EMEA) | (50) | | **Total Change** | **(490)** | - SG&A expenses decreased by 5% to $138.7 million, mainly due to an **$11.5 million reduction** in employee-related costs from lower incentive compensation accruals[159](index=159&type=chunk)[160](index=160&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased significantly to $2.6 million from $84.7 million, primarily due to a strategic increase in inventory levels Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2022 | FY 2021 | |:--- |:--- |:--- | | **Net cash provided by operating activities** | $2,604 | $84,714 | | **Net cash used in investing activities** | ($7,691) | ($14,460) | | **Net cash used in financing activities** | ($38,011) | ($40,749) | - The **$82.1 million decrease in operating cash flow** was primarily driven by a significant, deliberate increase in inventory to manage supply chain volatility[186](index=186&type=chunk) - As of August 31, 2022, the company had **$37.8 million in cash and cash equivalents** and was in compliance with all material debt covenants[183](index=183&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's most critical accounting policies involve significant management judgment for revenue recognition and income tax accounting - Revenue recognition requires significant estimates for variable consideration; a **10% change in sales incentive accruals** would impact net sales by approximately **$1.0 million**[201](index=201&type=chunk) - Accounting for income taxes is critical due to the judgment required in establishing deferred tax assets/liabilities and provisions for uncertain tax positions[202](index=202&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency, commodity prices tied to oil, and interest rates on its credit facility - The company is exposed to foreign currency translation risk and uses forward contracts to limit exposure on some non-functional currency balances[207](index=207&type=chunk)[208](index=208&type=chunk) - Commodity price risk is significant, as oil price volatility directly impacts specialty chemical and aerosol can costs, a risk the company does not currently hedge[209](index=209&type=chunk) - Interest rate risk exists on the **$150.0 million** revolving credit facility, of which **$77.9 million was outstanding** as of August 31, 2022[210](index=210&type=chunk) [Financial Statements and Supplementary Data](index=36&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements, which received an unqualified opinion with a critical audit matter noted - The consolidated financial statements and the Report of Independent Registered Public Accounting Firm are included in Item 15 of the report[211](index=211&type=chunk) - PricewaterhouseCoopers LLP issued **unqualified opinions** on the consolidated financial statements and the company's internal control over financial reporting as of August 31, 2022[243](index=243&type=chunk) - A critical audit matter was identified concerning **rebate accruals** due to the significant management judgment involved in their estimation[249](index=249&type=chunk)[250](index=250&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=37&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting principles, practices, or financial disclosure - None[214](index=214&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls and internal control over financial reporting were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of August 31, 2022[215](index=215&type=chunk) - Management concluded that its internal control over financial reporting was **effective** as of August 31, 2022, based on the COSO 2013 framework[216](index=216&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the fourth quarter of fiscal year 2022[219](index=219&type=chunk) [Part III](index=38&type=section&id=PART%20III) [Directors, Executive Officers, Compensation, Security Ownership, and Accountant Fees](index=38&type=section&id=Items%2010-14) This section incorporates information by reference from the Proxy Statement regarding governance, compensation, and security ownership - Information for Items 10, 11, 13, and 14 is incorporated by reference from the company's Proxy Statement[224](index=224&type=chunk)[226](index=226&type=chunk)[229](index=229&type=chunk) Equity Compensation Plan Information as of August 31, 2022 | Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (c) | |:--- |:--- |:--- |:--- | | **Equity compensation plans approved by security holders** | 136,937 | $ - | 384,859 | | **Equity compensation plans not approved by security holders** | n/a | n/a | n/a | | **Total** | **136,937** | **$ -** | **384,859** | [Part IV](index=40&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules](index=40&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all documents filed with the Form 10-K, including financial statements, notes, and various corporate exhibits - This item contains the list of financial statements, schedules, and exhibits filed with the report[231](index=231&type=chunk) - Key exhibits listed include corporate governance documents, compensation plans, and major debt agreements[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) [Form 10-K Summary](index=42&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company's filing - Not applicable[234](index=234&type=chunk)

Financial Performance - Q4 FY22 - Net sales increased by 13% to $130.4 million compared to $115.2 million in Q4 FY21[23, 24] - Foreign currency exchange rates unfavorably impacted net sales by approximately $6.2 million[24] - Net income increased by 76% to $14.8 million compared to $8.4 million in Q4 FY21[24] - EPS (Diluted) increased by 77% to $1.08 compared to $0.61 in Q4 FY21[24] - Gross margin decreased by 380 basis points to 47.4% compared to 51.2% in Q4 FY21, primarily due to higher specialty chemical costs and aerosol can costs, partially offset by price increases[24, 72, 73] Financial Performance - FY22 - Net sales increased by 6% to $518.8 million compared to $488.1 million in FY21[43, 44] - Foreign currency exchange rates unfavorably impacted net sales by approximately $11.6 million[44] - Net income decreased by 4% to $67.3 million compared to $70.2 million in FY21[43, 44] - EPS (Diluted) decreased by 4% to $4.90 compared to $5.09 in FY21[43, 44] - Gross margin decreased by 490 basis points to 49.1% compared to 54.0% in FY21[43, 44] Segment Performance - Q4 FY22 - Americas segment sales increased by 25%, making up 52% of global sales, with maintenance product sales up 30%[35, 36] - EMEA segment sales decreased by 3%, making up 34% of global sales, but increased by 10% in constant currency (GBP)[37, 38] - Asia-Pacific segment sales increased by 18%, making up 14% of global sales, with maintenance product sales up 24%[40, 41] Strategic Initiatives and Future Outlook - The company aims to grow WD-40 Multi-Use Product to approximately $525 million in net sales by 2025[12] - The company aims to grow WD-40 Specialist to approximately $125 million in net sales by 2025[13] - The company anticipates revenue target of $650 million – $700 million by 2025[14] - Fiscal Year 2023 Guidance: Net sales are expected to be between $545 million and $570 million, representing a growth of 5% to 10%[79]

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]