WD-40 Company (NASDAQ:WDFC) Q2 2019 Earnings Conference Call - Final Transcript

Apr 09, 2019 • 05:00 pm ET


WD-40 Company (NASDAQ:WDFC) Q2 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Good day, and welcome to WD-40 Company Second Quarter Fiscal Year 2019 Earnings Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. At the end of the prepared remarks, we will conduct a question-and-answer session. (Operator Instructions)

I would now like to turn the presentation over to your host for today's call Ms. Wendy Kelley, Director of Investor Relations and Corporate Communications. Please proceed.

Wendy Kelley

Thank you. Good afternoon, and thanks to everyone for joining us today. On our call today are WD-40 Company's President and Chief Executive Officer, Garry Ridge; and Vice President and Chief Financial Officer, Jay Rembolt.

In addition to the financial information presented on today's call, we encourage investors to review our earnings presentation, earnings press release and Form 10-Q for the period ending February 28, 2019. These documents are available on our Investor Relations website at investor.wd40company.com. A replay and transcript of today's call will also be made available at that location shortly after this call.

On today's call, we will discuss certain non-GAAP measures. The descriptions and reconciliations of these non-GAAP measures are available in our SEC filings as well as our earnings presentation.

As a reminder, today's call includes forward-looking statements about our expectations for the Company's future performance. Of course, actual results could differ materially. The Company's expectations, beliefs, and projections are expressed in good faith, but there can be no assurance that they will be achieved or accomplished. Please refer to the risk factors detailed in our SEC filings for further discussion.

Finally, for anyone listening to a webcast replay or reviewing a written transcript of this call, please note that all information presented is current only as of today's date, April 9, 2019. The Company disclaims any duty or obligation to update any forward-looking information whether as a result of new information, future events or otherwise.

With that, I'd now like to turn the call over to Garry.

Garry Ridge

Thanks, Wendy. Good day, and thanks for joining us for today's conference call. Today, we've reported net sales of $101.3 million for the second quarter of fiscal year 2019, which was flat compared to the second quarter of last year. Net income for the second quarter was $15.9 million compared to $14.8 million last year, reflecting an increase of 7% year-over-year. Diluted earnings per share for the second quarter were $1.14 compared to $1.05 for the same period last year.

Now, let's start with a discussion about our strategic initiatives and the brands that support them. We aspire to drive our consolidated net sales to approximately $700 million in revenue by the end of fiscal year 2025, and to do this while following our 55/30/25 business model. We'd like to remind investors that these long-term targets are guideposts, not guidance, that our tribe continues to work diligently on programs and initiatives that will help us successfully reach our 2025 aspirations. As a reminder, we refer to the brands