WD-40 Earnings 2020-05-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

wdfc-20200531x10q

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, 2020


¨	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		95-1797918
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

9715 Businesspark Avenue, San Diego, California		92131
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (619) 275-1400

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common stock, par value $0.001 per share	WDFC	NASDAQ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No þ

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, as of July 2, 2020 was 13,664,786.

WD-40 COMPANY

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended May 31, 2020

TABLE OF CONTENTS



PART I — FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statement of Shareholders’ Equity	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4.	Controls and Procedures	48

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 6.	Exhibits	51



PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

WD-40 COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share amounts)

	May 31,		August 31,
	2020		2019
Assets
Current assets:
Cash and cash equivalents	$	88,555	$	27,233
Trade accounts receivable, less allowance for doubtful
accounts of $399 and $300 at May 31, 2020
and August 31, 2019, respectively		76,390		72,864
Inventories		42,970		40,682
Other current assets		5,350		7,216
Total current assets		213,265		147,995
Property and equipment, net		56,712		45,076
Goodwill		95,376		95,347
Other intangible assets, net		8,821		10,652
Operating lease right-of-use assets		7,769		-
Deferred tax assets, net		422		403
Other assets		3,586		3,189
Total assets	$	385,951	$	302,662

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	17,386	$	18,727
Accrued liabilities		18,017		18,513
Accrued payroll and related expenses		9,653		15,301
Short-term borrowings		70,800		21,205
Income taxes payable		1,893		844
Total current liabilities		117,749		74,590
Long-term borrowings		94,566		60,221
Deferred tax liabilities, net		11,457		11,688
Long-term operating lease liabilities		6,346		-
Other long-term liabilities		10,850		10,688
Total liabilities		240,968		157,187

Commitments and Contingencies (Note 12)

Shareholders' equity:
Common stock ― authorized 36,000,000 shares, $0.001 par value;
19,812,685 and 19,773,977 shares issued at May 31, 2020 and
August 31, 2019, respectively; and 13,664,786 and 13,718,661 shares
outstanding at May 31, 2020 and August 31, 2019, respectively		20		20
Additional paid-in capital		157,101		155,132
Retained earnings		388,265		374,060
Accumulated other comprehensive loss		(32,323)		(32,482)
Common stock held in treasury, at cost ― 6,147,899 and 6,055,316
shares at May 31, 2020 and August 31, 2019, respectively		(368,080)		(351,255)
Total shareholders' equity		144,983		145,475
Total liabilities and shareholders' equity	$	385,951	$	302,662

See accompanying notes to condensed consolidated financial statements.



WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except per share amounts)

	Three Months Ended May 31,				Nine Months Ended May 31,
		2020		2019		2020		2019

Net sales	$	98,247	$	113,989	$	296,852	$	316,606
Cost of products sold		45,197		51,906		136,657		142,534
Gross profit		53,050		62,083		160,195		174,072

Operating expenses:
Selling, general and administrative		27,922		31,956		90,427		95,278
Advertising and sales promotion		4,764		6,270		15,211		17,420
Amortization of definite-lived intangible assets		552		655		1,856		2,056
Total operating expenses		33,238		38,881		107,494		114,754

Income from operations		19,812		23,202		52,701		59,318

Other income (expense):
Interest income		20		27		73		123
Interest expense		(778)		(567)		(1,813)		(1,962)
Other income (expense), net		27		(45)		(197)		828
Income before income taxes		19,081		22,617		50,764		58,307
Provision for income taxes		4,557		4,478		9,719		10,983
Net income	$	14,524	$	18,139	$	41,045	$	47,324

Earnings per common share:
Basic	$	1.06	$	1.30	$	2.98	$	3.40
Diluted	$	1.06	$	1.30	$	2.98	$	3.39

Shares used in per share calculations:
Basic		13,674		13,790		13,700		13,821
Diluted		13,700		13,820		13,727		13,853


See accompanying notes to condensed consolidated financial statements.

‎



WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited and in thousands)

	Three Months Ended May 31,				Nine Months Ended May 31,
		2020		2019		2020		2019

Net income	$	14,524	$	18,139	$	41,045	$	47,324
Other comprehensive (loss) income:
Foreign currency translation adjustment		(1,855)		(2,406)		159		(3,724)
Total comprehensive income	$	12,669	$	15,733	$	41,204	$	43,600

See accompanying notes to condensed consolidated financial statements.

WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

(Unaudited and in thousands, except share and per share amounts)

Accumulated

Additional

Other

Total

Common Stock

Paid-in

Retained

Comprehensive

Treasury Stock

Shareholders'

Amount

Capital

Earnings

Income (Loss)

Amount

Equity

Balance at August 31, 2019

19,773,977

155,132

374,060

(32,482)

6,055,316

(351,255)

145,475

Issuance of common stock under share-based

Price	161.56	EPS	5
Shares	14	P/E	32
MCap	2,238	P/FCF	38
Net Debt	25	EBIT	81
TEV	2,264	TEV/EBIT	28
TTM 2019-05-31, in MM, except price, ratios

10-Q	2020-05-31	Filed 2020-07-09
10-Q	2020-02-29	Filed 2020-04-09
10-Q	2019-11-30	Filed 2020-01-09
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10-Q	2019-05-31	Filed 2019-07-09
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10-K	2018-08-31	Filed 2018-10-22
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10-Q	2015-05-31	Filed 2015-07-09
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10-K	2013-08-31	Filed 2013-10-22
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10-K	2010-08-31	Filed 2010-10-18
10-Q	2010-05-31	Filed 2010-07-08
10-Q	2010-02-28	Filed 2010-04-08
10-Q	2009-11-30	Filed 2010-01-11

8-K	2020-07-09
8-K	2020-06-15
8-K	2020-04-09
8-K	2020-03-23
8-K	2020-03-16
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8-K	2019-12-10
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8-K	2019-07-26
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8-K	2019-01-25
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8-K	2018-12-17
8-K	2018-10-18
8-K	2018-08-16
8-K	2018-07-10
8-K	2018-04-05
8-K	2018-02-27
8-K	2018-01-09

EX-31.A	wdfc-20200531xex31_a.htm
EX-31.B	wdfc-20200531xex31_b.htm
EX-32.A	wdfc-20200531xex32_a.htm
EX-32.B	wdfc-20200531xex32_b.htm

WDFC 10Q Quarterly Report

WD-40 Earnings 2020-05-31