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WD-40 pany(WDFC) - 2024 Q3 - Quarterly Results
WDFCWD-40 pany(WDFC)2024-07-10 20:07

Dividend and Share Repurchase - The Company declared a quarterly dividend of 0.88pershare,payableonJuly31,2024[1]−Asharerepurchaseplanwasapproved,allowingtheCompanytobuybackupto0.88 per share, payable on July 31, 2024[1] - A share repurchase plan was approved, allowing the Company to buy back up to 50.0 million of its shares, with 8.1millionspenttorepurchase34,250sharesbytheendofthethirdquarter[1]FinancialProjections−FiscalYear2024netsalesgrowthisprojectedbetween68.1 million spent to repurchase 34,250 shares by the end of the third quarter[1] Financial Projections - Fiscal Year 2024 net sales growth is projected between 6% and 12%, with expected net sales of 570 million to 600milliononanon−GAAPconstantcurrencybasis[2]−Grossmarginforthefullyearisanticipatedtobebetween51.5600 million on a non-GAAP constant currency basis[2] - Gross margin for the full year is anticipated to be between 51.5% and 53%[2] - Net income is projected to be between 67.7 million and 71.8million,withdilutedearningspershareexpectedbetween71.8 million, with diluted earnings per share expected between 5.00 and 5.30[2]SalesPerformance−Netsalesofmaintenanceproducts,theprimaryfocus,represented955.30[2] Sales Performance - Net sales of maintenance products, the primary focus, represented 95% of total net sales in the third quarter, increasing by 10% compared to the prior year[10] - Total net sales increased by 9% in the third quarter compared to the prior year fiscal quarter, reaching 155,045 million[27] - Total maintenance product sales reached 147.2million,reflectingagrowthof10percentyear−over−year[42]−TheAmericassegmentreportednetsalesof147.2 million, reflecting a growth of 10 percent year-over-year[42] - The Americas segment reported net sales of 75.1 million, a 6 percent increase year-over-year[39] - The EIMEA segment accounted for 38% of total net sales in the third quarter, with a 13% increase in net sales primarily driven by a 17% increase in WD-40 Multi-Use Product sales[33] - The Asia-Pacific segment represented 13% of total net sales, with a 14% increase in net sales, largely due to an 11% increase in WD-40 Multi-Use Product sales[34] - WD-40 Specialist sales in the Asia-Pacific segment increased by 30%, attributed to successful brand building and customer order timing[35] Profitability Metrics - Gross profit for the third quarter was 82,388million,upfrom82,388 million, up from 71,762 million in the same quarter last year, representing a 14.5% increase[27] - Gross margin improved to 53.1 percent, up from 50.6 percent in the prior year fiscal quarter[42] - Net income for the quarter was 19.8million,a5percentincreasefromtheprioryearfiscalquarter[42]−NetincomefortheninemonthsendedMay31,2024,was19.8 million, a 5 percent increase from the prior year fiscal quarter[42] - Net income for the nine months ended May 31, 2024, was 52,860 million, compared to 49,418millionforthesameperiodlastyear,reflectinga4.949,418 million for the same period last year, reflecting a 4.9% increase[31] - Diluted earnings per share were 1.46, compared to 1.38intheprioryearfiscalquarter[42]ExpensesandLiabilities−Selling,general,andadministrativeexpensesincreasedby19percentto1.38 in the prior year fiscal quarter[42] Expenses and Liabilities - Selling, general, and administrative expenses increased by 19 percent to 45.6 million compared to the prior year fiscal quarter[42] - Advertising and sales promotion expenses rose by 22 percent to 9.3million,accountingfor6.0percentoftotalnetsales[42]−Totalcurrentliabilitiesincreasedto9.3 million, accounting for 6.0 percent of total net sales[42] - Total current liabilities increased to 105,241 million from 88,842million,primarilyduetohighershort−termborrowings[27]−Thecompanyreportedatotalof88,842 million, primarily due to higher short-term borrowings[27] - The company reported a total of 221,368 million in liabilities, a decrease from $227,788 million in the previous period[27] Strategic Initiatives - The Company is actively pursuing the divestiture of its U.S. and U.K. homecare and cleaning product portfolios, engaging an investment bank for potential buyers[3] - The company reiterated its fiscal year 2024 guidance during the earnings call[37]