Company Quick10K Filing
WD-40
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 14 $2,238
10-Q 2020-01-09 Quarter: 2019-11-30
10-Q 2019-07-09 Quarter: 2019-05-31
10-Q 2019-04-09 Quarter: 2019-02-28
10-Q 2019-01-09 Quarter: 2018-11-30
10-K 2018-10-22 Annual: 2018-08-31
10-Q 2018-07-10 Quarter: 2018-05-31
10-Q 2018-04-06 Quarter: 2018-02-28
10-Q 2018-01-09 Quarter: 2017-11-30
10-K 2017-10-23 Annual: 2017-08-31
10-Q 2017-07-10 Quarter: 2017-05-31
10-Q 2017-04-06 Quarter: 2017-02-28
10-Q 2017-01-09 Quarter: 2016-11-30
10-K 2016-10-24 Annual: 2016-08-31
10-Q 2016-07-07 Quarter: 2016-05-31
10-Q 2016-04-07 Quarter: 2016-02-29
10-Q 2016-01-07 Quarter: 2015-11-30
10-K 2015-10-22 Annual: 2015-08-31
10-Q 2015-07-09 Quarter: 2015-05-31
10-Q 2015-04-09 Quarter: 2015-02-28
10-Q 2015-01-08 Quarter: 2014-11-30
10-K 2014-10-21 Annual: 2014-08-31
10-Q 2014-07-10 Quarter: 2014-05-31
10-Q 2014-04-09 Quarter: 2014-02-28
10-Q 2014-01-09 Quarter: 2013-11-30
10-K 2013-10-22 Annual: 2013-08-31
10-Q 2013-07-09 Quarter: 2013-05-31
10-Q 2013-04-08 Quarter: 2013-02-28
10-Q 2013-01-09 Quarter: 2012-11-30
10-K 2012-10-22 Annual: 2012-08-31
10-Q 2012-07-10 Quarter: 2012-05-31
10-Q 2012-04-09 Quarter: 2012-02-29
10-Q 2012-01-09 Quarter: 2011-11-30
10-K 2011-10-20 Annual: 2011-08-31
10-Q 2011-07-08 Quarter: 2011-05-31
10-Q 2011-04-07 Quarter: 2011-02-28
10-Q 2011-01-10 Quarter: 2010-11-30
10-K 2010-10-18 Annual: 2010-08-31
10-Q 2010-07-08 Quarter: 2010-05-31
10-Q 2010-04-08 Quarter: 2010-02-28
10-Q 2010-01-11 Quarter: 2009-11-30
8-K 2020-01-09
8-K 2019-12-10 Officers, Shareholder Vote
8-K 2019-07-26 Exhibits
8-K 2019-07-09
8-K 2019-06-24
8-K 2019-06-10
8-K 2019-04-09
8-K 2019-03-22
8-K 2019-01-25
8-K 2019-01-09
8-K 2018-12-17 Shareholder Vote
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
WDFC 2019-11-30
Note 1. The Company
Note 2. Basis of Presentation and Summary of Significant Accounting Policies
Note 3. Inventories
Note 4. Property and Equipment
Note 5. Goodwill and Other Intangible Assets
Note 6. Leases
Note 7. Accrued and Other Liabilities
Note 8. Debt
Note 9. Share Repurchase Plan
Note 10. Earnings per Common Share
Note 11. Revenue Recognition
Note 12. Related Parties
Note 13. Commitments and Contingencies
Note 14. Income Taxes
Note 15. Business Segments and Foreign Operations
Note 16. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.A wdfc-20191130xex10_a.htm
EX-31.A wdfc-20191130xex31_a.htm
EX-31.B wdfc-20191130xex31_b.htm
EX-32.A wdfc-20191130xex32_a.htm
EX-32.B wdfc-20191130xex32_b.htm

WD-40 Earnings 2019-11-30

WDFC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
PAH 2,714 4,440 2,209 1,883 803 -395 -377 4,040 43% -10.7 -9%
CBT 2,692 3,119 2,027 3,360 727 248 488 3,622 22% 7.4 8%
KWR 2,664 725 267 851 307 57 88 2,569 36% 29.2 8%
POL 2,374 2,931 2,360 3,521 752 142 270 3,689 21% 13.6 5%
WDFC 2,238 313 160 317 231 69 88 2,264 73% 25.7 22%
IOSP 2,177 1,490 626 1,534 457 92 190 2,229 30% 11.7 6%
PQG 2,089 4,442 2,722 1,598 392 77 413 4,151 24% 10.0 2%
MTX 2,077 3,149 1,728 1,813 454 154 338 2,739 25% 8.1 5%
TSE 1,838 2,804 2,059 4,230 374 138 325 2,472 9% 7.6 5%
KRO 1,757 1,959 1,091 1,681 434 116 250 1,881 26% 7.5 6%

wdfc-20191130x10q
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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 November 30, 2019

 

¨

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 January 3, 2020 was 13,706,715.

1


WD-40 COMPANY

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended November 30, 2019

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

7

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

35

PART II OTHER INFORMATION

Item 1.

Legal Proceedings

36

Item 1A.

Risk Factors

36

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

36

Item 6.

Exhibits

37

2


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)

November 30,

August 31,

2019

2019

Assets

Current assets:

Cash and cash equivalents

$

28,680

$

27,233

Trade accounts receivable, less allowance for doubtful

accounts of $320 and $300 at November 30, 2019

and August 31, 2019, respectively

70,058

72,864

Inventories

43,703

40,682

Other current assets

6,783

7,216

Total current assets

149,224

147,995

Property and equipment, net

50,103

45,076

Goodwill

95,573

95,347

Other intangible assets, net

10,124

10,652

Operating lease right-of-use assets

8,734

-

Deferred tax assets, net

428

403

Other assets

3,305

3,189

Total assets

$

317,491

$

302,662

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable

$

18,457

$

18,727

Accrued liabilities

20,041

18,513

Accrued payroll and related expenses

13,361

15,301

Short-term borrowings

29,088

21,205

Income taxes payable

73

844

Total current liabilities

81,020

74,590

Long-term borrowings

61,152

60,221

Deferred tax liabilities, net

11,784

11,688

Long-term operating lease liabilities

7,084

-

Other long-term liabilities

10,459

10,688

Total liabilities

171,499

157,187

Commitments and Contingencies (Note 13)

 

 

Shareholders' equity:

Common stock ― authorized 36,000,000 shares, $0.001 par value;

19,796,319 and 19,773,977 shares issued at November 30, 2019 and

August 31, 2019, respectively; and 13,714,203 and 13,718,661 shares

outstanding at November 30, 2019 and August 31, 2019, respectively

20

20

Additional paid-in capital

154,706

155,132

Retained earnings

377,848

374,060

Accumulated other comprehensive loss

(30,370)

(32,482)

Common stock held in treasury, at cost ― 6,082,116 and 6,055,316

shares at November 30, 2019 and August 31, 2019, respectively

(356,212)

(351,255)

Total shareholders' equity

145,992

145,475

Total liabilities and shareholders' equity

$

317,491

$

302,662

See accompanying notes to condensed consolidated financial statements.

3


WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except per share amounts)

Three Months Ended November 30,

2019

2018

Net sales

$

98,556

$

101,282

Cost of products sold

45,013

45,451

Gross profit

53,543

55,831

Operating expenses:

Selling, general and administrative

32,599

32,731

Advertising and sales promotion

5,590

5,966

Amortization of definite-lived intangible assets

650

733

Total operating expenses

38,839

39,430

Income from operations

14,704

16,401

Other income (expense):

Interest income

25

51

Interest expense

(442)

(710)

Other income (expense), net

5

376

Income before income taxes

14,292

16,118

Provision for income taxes

2,098

2,839

Net income

$

12,194

$

13,279

Earnings per common share:

Basic

$

0.88

$

0.95

Diluted

$

0.88

$

0.95

Shares used in per share calculations:

Basic

13,714

13,846

Diluted

13,746

13,882

See accompanying notes to condensed consolidated financial statements.


4


WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited and in thousands)

Three Months Ended November 30,

2019

2018

Net income

$

12,194

$

13,279

Other comprehensive (loss) income:

Foreign currency translation adjustment

2,112

(1,631)

Total comprehensive income

$

14,306

$

11,648

See accompanying notes to condensed consolidated financial statements.

5


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'

Shares

Amount

Capital

Earnings

Income (Loss)

Shares

Amount

Equity

Balance at August 31, 2019

19,773,977 

$

20 

$

155,132 

$

374,060 

$

(32,482)

6,055,316 

$

(351,255)

$

145,475 

Issuance of common stock under share-based

compensation plan, net of shares withheld for taxes

22,342 

(2,640)

(2,640)

Stock-based compensation

2,214 

2,214 

Cash dividends ($0.61 per share)

(8,406)

(8,406)

Acquisition of treasury stock

26,800 

(4,957)

(4,957)

Foreign currency translation adjustment

2,112 

2,112 

Net income

12,194 

12,194 

Balance at November 30, 2019

19,796,319 

$

20 

$

154,706 

$

377,848 

$

(30,370)

6,082,116 

$

(356,212)

$

145,992 

Balance at August 31, 2018

19,729,774 

$

20 

$

153,469 

$

351,266 

$

(27,636)

5,879,361 

$

(321,630)

$

155,489 

Issuance of common stock under share-based

compensation plan, net of shares withheld for taxes

24,062 

(2,425)

(2,425)

Stock-based compensation

1,965 

1,965 

Cash dividends ($0.54 per share)

(7,522)

(7,522)

Acquisition of treasury stock

41,184 

(6,863)

(6,863)

Foreign currency translation adjustment

(1,631)

(1,631)

Cumulative effect of change in accounting principle

(324)

(324)

Net income

13,279 

13,279 

Balance at November 30, 2018

19,753,836 

$

20 

$

153,009 

$

356,699 

$

(29,267)

5,920,545 

$

(328,493)

$

151,968