WD-40 pany(US:WDFC)2024-04-09 20:08Financial Performance - Global net sales for the second quarter increased by 7 percent to $139.1 million compared to the prior year fiscal quarter, with year-to-date total net sales reaching $279.5 million, a 10 percent increase[4]. - Net income for the second quarter was $15.5 million, a decrease of 6 percent from the prior year fiscal quarter, while year-to-date net income increased by 8 percent to $33.0 million[4]. - Net sales for the three months ended February 29, 2024, increased to $139.1 million, up 6.9% from $130.2 million in the same period of 2023[30]. - Gross profit for the six months ended February 29, 2024, was $148.5 million, representing a 13.9% increase compared to $130.3 million in the prior year[30]. - Net income for the six months ended February 29, 2024, was $33.0 million, a 4.9% increase from $30.5 million in the same period of 2023[30]. Sales by Segment - The Americas segment accounted for 46 percent of total net sales, with a 1 percent increase in net sales, primarily driven by WD-40 Multi-Use Product growth[9]. - The EIMEA segment represented 39 percent of total net sales, with a 16 percent increase, largely due to a 17 percent rise in WD-40 Multi-Use Product sales[9]. - The Asia-Pacific segment contributed 15 percent of total net sales, with a 4 percent increase, driven by a 3 percent rise in WD-40 Multi-Use Product sales[9]. - Maintenance products, the primary growth focus, represented 94 percent of total net sales, increasing by 7 percent in the second quarter[10]. Guidance and Future Outlook - The company is raising its fiscal year 2024 net income guidance to a range of $67.7 million to $71.8 million, up from the previous range of $65 million to $70 million[21]. - Diluted earnings per share guidance has been increased to a range of $5.00 to $5.30, compared to the prior guidance of $4.78 to $5.15[21]. Operating Expenses and Cash Flow - Operating expenses rose to $52.0 million for the three months ended February 29, 2024, compared to $43.9 million in the same period of 2023, reflecting a 18.5% increase[30]. - The company provided a net cash from operating activities of $44.9 million for the six months ended February 29, 2024, compared to $20.9 million in the same period of 2023[32]. Balance Sheet Highlights - Cash and cash equivalents at the end of the period increased to $55.4 million from $48.1 million at the beginning of the period[32]. - Total current assets as of February 29, 2024, were $250.5 million, slightly up from $248.5 million as of August 31, 2023[28]. - Total liabilities decreased to $225.7 million as of February 29, 2024, from $227.8 million as of August 31, 2023[28]. - The company’s total stockholders' equity increased to $216.3 million as of February 29, 2024, compared to $210.2 million as of August 31, 2023[28]. Strategic Decisions - The company announced the acquisition of its Brazilian marketing distributor and plans to sell its U.S. and U.K. Homecare and Cleaning Products portfolio to focus on higher-margin maintenance products[3]. - The company reported a basic earnings per share of $1.14 for the three months ended February 29, 2024, down from $1.21 in the same period of 2023[30].