WD-40 pany(WDFC) - 2019 Q4 - Annual Report

FORM 10-K General Information This section provides general filing information for WD-40 Company's Annual Report on Form 10-K, detailing its issuer status, common stock trading symbol, and outstanding shares Filing Information This section details WD-40 Company's Form 10-K filing, confirming its well-known seasoned issuer and large accelerated filer status, and listing common stock information - WD-40 Company (WDFC) is a well-known seasoned issuer and a large accelerated filer[3][5][6] Filing Information Table | Metric | Value | | :--- | :--- | | Common Stock Trading Symbol | WDFC | | Exchange | NASDAQ | | Voting Stock Market Value (as of Feb 28, 2019) | $2,409,711,298 | | Common Stock Outstanding (as of Oct 17, 2019) | 13,703,661 shares | Documents Incorporated by Reference This section indicates that the Proxy Statement for the annual meeting of stockholders on December 10, 2019, is incorporated by reference into Part III, Items 10 through 14 of this Annual Report on Form 10-K - The Proxy Statement for the December 10, 2019 annual meeting is incorporated by reference into Part III, Items 10-14 of this 10-K report[9] PART I Forward-Looking Statements This section outlines the company's forward-looking statements, which reflect current views on future events and financial performance, including growth expectations, spending levels, input costs, product innovation, tax rates, and foreign currency exchange rates - The report contains forward-looking statements regarding future financial and operating results, including growth expectations for maintenance products, promotional and advertising spending, input costs, product innovation, tax rates, and foreign currency exchange rates[13][14] - Actual events or results may differ materially from projections due to various factors, including those detailed in Item 1A (Risk Factors)[15] Item 1. Business WD-40 Company is a global marketing organization founded in 1953, headquartered in San Diego, California, focused on developing and selling maintenance and homecare products - WD-40 Company is a global marketing organization, founded in 1953, selling maintenance and homecare products in over 176 countries[16][18][19] - Key strategic initiatives include maximizing WD-40 Multi-Use Product sales through geographic expansion and new delivery systems, growing the WD-40 Specialist line, broadening product/revenue base, attracting talent, and operating with excellence[20] Overview The company's primary growth driver is expanding the reach of WD-40 Multi-Use Product to new global users, with innovation crucial for long-term brand growth - The Company's primary growth driver is expanding the reach of WD-40 Multi-Use Product to new global users[21] - Innovation and renovation of products, packaging, and delivery systems are crucial for long-term brand growth[21] - Homecare and cleaning products are considered 'harvest brands,' providing returns but becoming a smaller part of the business as maintenance product sales grow[23] Products Maintenance Products The company's maintenance product portfolio includes the signature WD-40 Multi-Use Product, WD-40 Specialist, WD-40 Bike, 3-IN-ONE, and GT85 brands - The WD-40 Multi-Use Product is the signature product and accounts for a significant majority of the Company's sales, sold worldwide through various retail and industrial channels[25] - The WD-40 Specialist product line offers professional-grade specialty maintenance products (penetrants, degreasers, lubricants, etc.) aimed at professionals and existing WD-40 users, primarily sold in the U.S., Europe, and parts of Canada, Latin America, Australia, and Asia[26] - The WD-40 Bike product line, launched in 2013-2016, provides comprehensive bicycle maintenance products for cyclists and mechanics, with expanding distribution[27] - Other maintenance brands include 3-IN-ONE (multi-purpose drip oil, professional line, RVcare, Garage Door Lubricant) and GT85 (multi-purpose bike maintenance, acquired in 2014, sold primarily in the U.K.)[28][29] Homecare and Cleaning Products The homecare and cleaning product portfolio includes well-known brands such as 2000 Flushes, Spot Shot, Carpet Fresh, 1001, Lava/Solvol, and X-14 - The homecare and cleaning product portfolio includes well-known brands such as 2000 Flushes (automatic toilet bowl cleaners, U.S. and Canada), Spot Shot (carpet stain remover, U.S., Canada, U.K. as 1001), Carpet Fresh (room and rug deodorizers, U.S., U.K. as 1001, Australia as No Vac)[31][32][33] - Other brands include 1001 (carpet and household cleaners, U.K.), Lava/Solvol (heavy-duty hand cleaners, Lava in U.S., Solvol in Australia), and X-14 (mildew stain remover, toilet bowl cleaner, U.S.)[34][35][36] Sales and Marketing Sales fluctuate due to new/lost distribution, product offerings, and promotional activities, which the Company manages as part of normal business operations - Sales do not show significant seasonality but fluctuate due to new/lost distribution, product offerings, and promotional activities[37] - The Company manages these fluctuations as part of normal business operations[37] Manufacturing Finished product manufacturing is outsourced globally, while the Company formulates and manufactures concentrate for WD-40 products at its own facilities and through third-party contract manufacturers - Finished product manufacturing is outsourced to third-party contract manufacturers globally (U.S., Canada, Mexico, Brazil, Argentina, Columbia, U.K., Italy, Australia, China, South Korea, India)[38] - The Company formulates and manufactures concentrate for WD-40 products at its own facilities and through third-party contract manufacturers[38] - Supply needs are communicated via orders and short-term projections (2-5 months), with minimum purchase obligations generally immaterial or well below historical volumes[38] Sources and Availability of Components and Raw Materials The Company relies on a limited number of suppliers for key raw materials and components, which are subject to volatile price changes due to commodity markets - The Company relies on a limited number of suppliers, including single or sole sources, for key raw materials and components[41] - Primary components like petroleum-based specialty chemicals and aerosol cans are subject to volatile price changes due to commodity markets[41] - Availability is expected to continue, but exposure to volatile prices remains[41] Research and Development The Company prioritizes innovation and renovation, particularly in its maintenance product group, through consumer research, product development, and improvement activities - The Company prioritizes innovation and renovation, particularly in its maintenance product group, through consumer research, product development, and improvement activities[42] - The R&D team partners with external resources and ensures compliance with regulatory requirements for product formulations[42] Order Backlog Order backlog is not a significant factor in the Company's business - Order backlog is not a significant factor in the Company's business[43] Competition Markets for the Company's products are highly competitive, facing products from companies with greater financial resources, requiring intense advertising and promotional support - Markets for the Company's products, especially homecare and cleaning, are highly competitive, facing products from companies with greater financial resources[44] - Competition strategies include brand awareness, perceived value, product innovation, and multiple distribution channels[44] - New products require intense advertising and promotional support to gain and maintain market position[44] Trademarks and Patents The Company primarily relies on established trademarks, brand names, and marketing efforts, rather than patents, to compete effectively - The Company primarily relies on established trademarks, brand names, and marketing efforts, rather than patents, to compete effectively[45] - Key trademarks like WD-40, 3-IN-ONE, Lava, Solvol, X-14, 2000 Flushes, Carpet Fresh, No Vac, Spot Shot, GT85, and 1001 are registered or pending globally[45] Employees The Company employs 495 people worldwide as of August 31, 2019, across its U.S. parent corporation and international subsidiaries Number of Employees (as of Aug 31, 2019) | Region | Number of Employees (as of Aug 31, 2019) | | :--- | :--- | | U.S. Parent Corporation | 183 | | U.K. Subsidiary | 214 | | China Subsidiary | 56 | | Australia Subsidiary | 20 | | Canada Subsidiary | 13 | | Malaysia Subsidiary | 7 | | WD-40 Manufacturing Company | 2 | | Total Worldwide | 495 | Financial Information about Foreign and Domestic Operations Detailed financial information on foreign and domestic operations, including net sales by segment and long-lived assets by geography, is available in Note 16 of the consolidated financial statements - Detailed financial information on foreign and domestic operations, including net sales by segment and long-lived assets by geography, is available in Note 16 of the consolidated financial statements[47] Item 1A. Risk Factors This section details various risks that could adversely affect the Company's business, financial condition, and results of operations, spanning global operations, strategic execution, brand reputation, and supply chain dependencies - The Company faces substantial risks from global operations, including foreign currency exchange rate volatility (42% of FY2019 revenues in non-USD currencies), economic/political instability, and compliance challenges in foreign jurisdictions[51][53][55] - Failure to successfully implement strategic initiatives, such as geographic expansion and product line growth, or to attract and retain talented people, could negatively impact financial results[58] - The success and reputation of leading brands, especially WD-40, are critical; damage due to marketing failures, quality issues, or negative publicity could significantly impact the business[59] Global Operations and Foreign Currency Risk Approximately 63% of consolidated net sales in fiscal year 2019 were from outside the U.S., exposing the Company to risks like economic/political instability, compliance challenges, tax complexity, and foreign currency fluctuations - Approximately 63% of consolidated net sales in fiscal year 2019 were from outside the U.S., exposing the Company to risks like economic/political instability, compliance challenges, tax complexity, and foreign currency fluctuations[51][55] - 42% of FY2019 revenues were generated in non-U.S. dollar currencies, making financial results vulnerable to foreign currency weakening against the U.S. Dollar, despite hedging efforts[53] - Brexit has caused and may continue to cause volatility in Pound Sterling and Euro, potentially negatively impacting reported results, and could alter European business operations[54][56] - Increased complexities and risks in emerging markets (e.g., China, Russia) include potential for fraud/corruption and evolving privacy laws (e.g., GDPR), with non-compliance leading to significant penalties[57] Strategic Initiatives Implementation Risk There is no assurance that the Company's five core strategic initiatives will be successfully implemented or achieve intended results, with talent management being crucial for future performance - There is no assurance that the Company's five core strategic initiatives (maximizing WD-40 Multi-Use Product sales, growing WD-40 Specialist, broadening product/revenue base, talent development, operational excellence) will be successfully implemented or achieve intended results[58] - Maintaining high employee engagement, retaining key personnel, and effective succession planning are crucial for future performance; loss of key employees could have a material adverse effect[58] Brand Reputation Erosion Risk The Company's financial success is directly dependent on the success and reputation of its brands, especially WD-40, which can be damaged by ineffective marketing, product failures, or negative publicity - The Company's financial success is directly dependent on the success and reputation of its brands, especially WD-40[59] - Brand reputation can suffer from ineffective marketing, product development failures, competitive pressures, or real/perceived quality/safety issues (e.g., product contamination, regulatory non-compliance, recalls)[59] - Negative claims or publicity, regardless of accuracy, could damage the Company's reputation and brand image[59] Sales Unit Volume Growth Challenges Achieving sales volume growth is difficult in developed markets and depends on executing strategic initiatives, driving innovation, and capturing market share, while price increases may slow volume - Achieving sales volume growth is difficult in developed markets and depends on executing strategic initiatives, driving growth in new/existing markets through innovation, and capturing market share[60][61] - Sales price increases (in response to rising costs) may slow or decrease volume in the short term[61] - Challenges in online retail channels (e.g., demand for non-flammable products) and changes in customer strategies (e.g., shelf simplification, product discontinuation) could negatively impact sales[61] Reliance on Third-Party Manufacturers and Suppliers The Company relies on a limited number of third-party contract manufacturers, logistics providers, and suppliers, including single or sole sources, for critical raw materials and components - The Company relies on a limited number of third-party contract manufacturers, logistics providers, and suppliers, including single or sole sources, for critical raw materials and components[62] - Disruptions could occur if terms of business change, relationships are not maintained, or these third parties experience financial difficulties, potentially affecting production and financial results[62] Cost Increases and Cost Volatility Increases or volatility in costs of finished goods, components, raw materials (especially petroleum-based chemicals and aerosol cans), and transportation could harm financial condition - Increases or volatility in costs of finished goods, components, raw materials (especially petroleum-based chemicals and aerosol cans), and transportation could harm financial condition[63] - If price increases cannot offset cost increases, gross margins and operating results will be negatively impacted[63] - Significant fluctuations in raw material costs, which are principal contributors to cost of goods sold, could materially impact gross margins[63] Global Economic Conditions A weakening global economy, reduced industrial output, or decreased consumer spending/confidence could delay or significantly decrease product purchases, impacting financial results - A weakening global economy, reduced industrial output, or decreased consumer spending/confidence could delay or significantly decrease product purchases[64] - During economic uncertainty, consumers may shift to lower-priced or non-branded products, and competitors may increase promotions, negatively impacting the Company's financial results[65] - Adverse conditions could also impair customers' ability to pay and suppliers' ability to provide goods, increasing doubtful accounts and disrupting supply[66] Government Laws and Regulations The Company must comply with extensive federal, state, and foreign laws regarding manufacturing, chemical composition, packaging, storage, distribution, and labeling of products, with non-compliance leading to penalties - The Company must comply with extensive federal, state, and foreign laws regarding manufacturing, chemical composition, packaging, storage, distribution, and labeling of products[67] - Non-compliance could lead to fines, product recalls, increased costs, or inability to obtain raw materials, potentially impacting financial condition[67] - Regulatory changes may require altering product chemical compositions, potentially affecting efficacy or marketability, and evolving privacy laws (e.g., GDPR) impose strict regulations[68][72] - The Company is subject to Dodd-Frank Section 1502 regarding 'conflict minerals' and environmental laws, with potential for increased expenditures or liabilities[69][70] Intellectual Property Rights The Company relies on trademark, trade secret, patent, and copyright laws to protect its intellectual property, but cannot assure successful assertion or protection, facing risks from loss of trade secret protection or infringement - The Company relies on trademark, trade secret, patent, and copyright laws to protect its intellectual property, but cannot assure successful assertion or protection[74] - Loss of trade secret protection (especially for WD-40 Multi-Use Product formulation) or inability to protect IP in foreign countries could adversely affect financial condition[74] - Infringement by others, including counterfeiting, could dilute brand value and harm sales; conversely, infringing on others' IP could result in substantial payments or cessation of use[74][75] Operating Results and Stock Price Volatility The Company cannot guarantee its operating results and financial performance will meet expectations, and failure to do so could cause stock price decline, influenced by securities analysts' reports - The Company cannot guarantee its operating results and financial performance will meet expectations, and failure to do so could cause stock price decline[76] - Stock price is influenced by securities analysts' reports, over which the Company has no control[76] - Sales volume growth can strain management resources and financial controls, and if actual revenues fall short of expectations, operating margins may be adversely affected[78] Information Systems and Cybersecurity Risks Reliance on information technology systems, including third-party providers, exposes the Company to cybersecurity threats, with system failures or data loss potentially disrupting operations and financial reporting - Reliance on information technology systems, including third-party providers, exposes the Company to cybersecurity threats (e.g., cyberattacks, ransomware, data breaches)[79] - System failures or data loss could disrupt operations, transaction processing, and financial reporting, despite business continuity plans[80] - The U.S. office uses a market-specific application with potentially limited support, posing a risk if the provider ceases operations or support[81] Competition The Company faces competition from similar and alternative products, including those from major national/multinational companies, and counterfeit reproductions, requiring substantial advertising and promotional expenditures - The Company faces competition from similar and alternative products, including those from major national/multinational companies, and counterfeit reproductions, especially in emerging markets[82] - Competition is based on product performance, brand recognition, price, quality, and consumer benefits, requiring substantial advertising and promotional expenditures[83] - Competitors with greater financial resources may outspend the Company on marketing, introduce products faster, or respond more effectively to market changes, potentially leading to reduced profit margins or market share loss[84][85] Dependence on Key Customers The Company's sales are concentrated among a limited number of large chain stores in the retail industry, making it vulnerable to changes in customer strategies or loss of significant customers - The Company's sales are concentrated among a limited number of large chain stores in the retail industry, although no single customer accounted for over 10% of consolidated net sales in FY2019[87] - Changes in key customer strategies (e.g., shelf simplification, private labels, reduced brands) or loss of significant customers could materially harm sales and brand values[87][88] - Large customers may demand price reductions or promotional concessions, impacting profit margins[87] New Product Development and Line Extensions Future growth depends on successfully developing and introducing new products and line extensions, which requires substantial R&D and marketing investment, with inherent risks of delays or market acceptance failures - Future growth depends on successfully developing and introducing new products and line extensions, which requires substantial R&D and marketing investment[89] - Inherent risks include development/launch delays, performance issues, changing regulations, and raw material availability, potentially leading to market acceptance failures or increased costs[89] Marketing Distributor Relationships Changes or termination of marketing distributor relationships, particularly in countries without direct Company operations, could disrupt sales and potentially incur substantial termination payments - Changes or termination of marketing distributor relationships, particularly in countries without direct Company operations, could disrupt sales until a suitable replacement is found[90] - Local laws in some countries may require substantial payments to terminate distributor relationships, adversely affecting financial condition[91] Goodwill and Intangible Assets Impairment Risk Goodwill and definite-lived intangible assets are subject to impairment risk, assessed annually or when circumstances indicate impairment, requiring significant management judgment and potentially leading to charges - Goodwill and definite-lived intangible assets are subject to impairment risk, assessed annually or when circumstances indicate impairment[92] - Impairment assessment requires significant management judgment on estimates like macroeconomic conditions, growth rates, and expense levels[93] - A significant impairment charge could negatively impact financial condition and results of operations[93] - Divestitures of assets or brands could also negatively impact profitability and cash flows, potentially requiring impairment charges[94] Product Liability Claims and Litigation Product use may expose the Company to liability claims, potentially leading to negative publicity, harm to sales, and losses exceeding insurance limits or arising from uninsured circumstances - Product use may expose the Company to liability claims (e.g., contaminants, inadequate instructions/warnings), potentially leading to negative publicity and harm to sales[95] - Losses could exceed insurance limits or arise from uninsured circumstances; product recalls due to defects could also result in adverse publicity and significant expenses[95] - Association with competitor products causing harm could lead to unwarranted legal actions and defense costs[96] Income Tax Matters Significant judgment is required for income tax rates and uncertain tax positions, with resolutions of tax audits impacting the effective tax rate and cash flow, and changes in U.S. tax laws creating uncertainty - Significant judgment is required for income tax rates and uncertain tax positions; resolutions of tax audits can impact the effective tax rate and cash flow[97][98] - The Tax Cuts and Jobs Act (2017) significantly changed U.S. tax law, including a one-time 'toll tax' on unremitted foreign earnings, and the Company reevaluated its indefinite reinvestment assertion[99] - Uncertainty regarding future regulations and potential changes in U.S. tax laws could materially affect financial results[100] Business Development Activities Growth through acquisitions, joint ventures, or strategic partnerships carries risks, including difficulties in integration, diversion of management attention, and potential for debt or dilutive equity issuances - Growth through acquisitions, joint ventures, or strategic partnerships carries risks, including difficulties in integration, diversion of management attention, and loss of key employees[101] - Such activities may not be profitable initially or justify investments, and could result in debt, dilutive equity issuances, contingent liabilities, or increased operating expenses[101][102] - Diminished economic benefits from business development could lead to goodwill or intangible asset impairments[102] Sufficiency of Cash for Indebtedness and Dividends The Company's ability to service debt and pay cash dividends depends on operating income and compliance with financial covenants, with future debt or insufficient financing potentially impacting dividend payments - The Company's ability to service debt (fixed rate senior notes, revolving credit facility) and pay cash dividends depends on operating income and compliance with financial covenants[103] - Future substantial debt for acquisitions or share repurchases, or insufficient financing, could require reducing, suspending, or eliminating dividend payments[104] Item 1B. Unresolved Staff Comments This section states that there are no unresolved staff comments from the SEC - There are no unresolved staff comments[106] Item 2. Properties The Company's properties include owned and leased office spaces and plant facilities across its Americas, EMEA, and Asia-Pacific segments, with a significant new office building under renovation in the U.K. for its EMEA operations Americas The Americas segment includes an owned office in San Diego, California, and leased regional sales, R&D, and office spaces in Miami, Pine Brook, and Toronto - The Company owns and occupies an office in San Diego, California, housing corporate and Americas segment employees[107] - Leased properties include a regional sales office in Miami, Florida, an R&D office in Pine Brook, New Jersey, and office space in Toronto, Ontario, Canada[107] EMEA The EMEA segment includes a newly purchased office building and land in Milton Keynes, U.K., under renovation, with the current location remaining a plant facility, and leased branch offices across Europe - A new office building and land were purchased in Milton Keynes, U.K., in February 2018, with renovations expected to complete in Q1 FY2020 for EMEA employees[108] - The current Milton Keynes location will continue as a plant facility[108] - Branch offices are leased in Germany, France, Italy, Spain, Portugal, and the Netherlands[108] Asia-Pacific The Asia-Pacific segment operates from leased office spaces in Epping, New South Wales, Australia; Shanghai, China; and Kuala Lumpur, Malaysia - Leased office spaces are located in Epping, New South Wales, Australia; Shanghai, China; and Kuala Lumpur, Malaysia[109] Item 3. Legal Proceedings This section refers to Note 12 — Commitments and Contingencies for information regarding legal proceedings - Information on legal proceedings is incorporated by reference from Note 12 — Commitments and Contingencies in Item 15[110] Item 4. Mine Safety Disclosures This item is not applicable to the Company - Mine Safety Disclosures are not applicable to the Company[110] Executive Officers of the Registrant This section lists the executive officers of WD-40 Company as of August 31, 2019, including their ages, year elected to current position, and titles, along with brief professional backgrounds Executive Officers of the Registrant | Name | Age | Year Elected to Current Position | Title | | :--- | :--- | :--- | :--- | | Garry O. Ridge | 63 | 1997 | Chief Executive Officer | | Steven A. Brass | 53 | 2019 | President and Chief Operating Officer | | Jay W. Rembolt | 68 | 2008 | Vice President, Finance, Treasurer and Chief Financial Officer | | Patricia Q. Olsem | 53 | 2019 | Division President, The Americas | | William B. Noble | 61 | 1996 | Managing Director, EMEA | | Geoffrey J. Holdsworth | 57 | 1997 | Managing Director, Asia-Pacific | | Stanley A. Sewitch | 66 | 2012 | Vice President, Global Organization Development | | Richard T. Clampitt | 64 | 2014 | Vice President, General Counsel and Corporate Secretary | - Executive officers hold office at the discretion of the Board of Directors[117] PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities This section provides information on the Company's common stock market, dividend policy, and share repurchase activities, detailing the NASDAQ listing, outstanding shares, recent dividend increases, and the ongoing share buy-back plan Market Information The Company's common stock trades on the NASDAQ Global Select Market under the symbol WDFC, with a closing price of $182.67 per share and 13,703,661 shares outstanding as of October 17, 2019 - The Company's common stock trades on the NASDAQ Global Select Market under the symbol WDFC[119] Market Information Table | Metric | Value | | :--- | :--- | | Closing Price (Oct 17, 2019) | $182.67 per share | | Shares Outstanding (Oct 17, 2019) | 13,703,661 shares | | Holders of Record (Oct 17, 2019) | Approximately 622 | Dividends The Company has a history of paying regular quarterly cash dividends, with the Board increasing the quarterly dividend by 13% to $0.61 per share in December 2018 - The Company has a history of paying regular quarterly cash dividends[120] - In December 2018, the Board increased the quarterly dividend by 13% from $0.54 to $0.61 per share[120] - A cash dividend of $0.61 per share was declared on October 8, 2019, payable on October 31, 2019[120] - Future dividend payments are subject to business performance, liquidity, capital needs, investment opportunities, and debt covenants[121] Purchases of Equity Securities By the Issuer and Affiliated Purchasers A $75.0 million share buy-back plan was approved in June 2018, effective September 1, 2018, and authorized through August 31, 2020 - A $75.0 million share buy-back plan was approved in June 2018, effective September 1, 2018, and authorized through August 31, 2020[122] Share Repurchase Activity | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :--- | :--- | :--- | :--- | :--- | | Sep 1, 2018 - Aug 31, 2019 | 175,955 | $168.34 | 175,955 | $45,375,339 (as of Aug 31, 2019) | | June 1 - June 30, 2019 | 24,071 | $161.03 | 24,071 | $48,739,779 | | July 1 - July 31, 2019 | 14,700 | $166.97 | 14,700 | $46,285,053 | | August 1 - August 31, 2019 | 5,000 | $181.92 | 5,000 | $45,375,339 | | Total (Q4 FY2019) | 43,771 | $165.41 | 43,771 | | - Purchases between June 1 and July 12, 2019, were executed under Rule 10b5-1 trading plans[124] Item 6. Selected Financial Data This section presents a five-year summary of selected financial data, including net sales, gross profit, operating income, net income, earnings per common share, dividends per share, total assets, and long-term obligations Selected Financial Data (in thousands, except per share amounts) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $423,350 | $408,518 | $380,506 | $380,670 | $378,150 | | Cost of products sold | $191,010 | $183,255 | $166,621 | $166,301 | $177,972 | | Gross profit | $232,340 | $225,263 | $213,885 | $214,369 | $200,178 | | Operating expenses | $149,958 | $146,659 | $137,976 | $143,021 | $134,788 | | Income from operations | $82,382 | $78,604 | $75,909 | $71,348 | $65,390 | | Interest and other (expense) income, net | $(1,612) | $(3,426) | $(1,287) | $1,441 | $(2,280) | | Income before income taxes | $80,770 | $75,178 | $74,622 | $72,789 | $63,110 | | Provision for income taxes | $24,862 | $9,963 | $21,692 | $20,161 | $18,303 | | Net income | $55,908 | $65,215 | $52,930 | $52,628 | $44,807 | | Earnings per common share: | | | | | | | Basic | $4.03 | $4.65 | $3.73 | $3.65 | $3.05 | | Diluted | $4.02 | $4.64 | $3.72 | $3.64 | $3.04 | | Dividends per share | $2.37 | $2.11 | $1.89 | $1.64 | $1.48 | | Weighted-average shares outstanding - diluted | 13,830 | 13,962 | 14,123 | 14,379 | 14,649 | | Total assets | $302,662 | $317,059 | $369,717 | $339,668 | $339,257 | | Long-term obligations | $82,597 | $75,667 | $154,907 | $140,579 | $133,427 | [Item 7. 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%