WD-40 Company (NASDAQ:WDFC) Q1 2020 Earnings Conference Call - Final Transcript

Jan 09, 2020 • 05:00 pm ET

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WD-40 Company (NASDAQ:WDFC) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Good day and welcome to the WD-40 Company First Quarter Fiscal Year 2020 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 the host for today's call, Ms. Wendy Kelley, Director of Investor Relations and Corporate Communications. Please proceed.

Executive
Wendy Kelley

Thank you. Good afternoon and thanks to everyone for joining us today. On our call today are WD-40 Company's Chairman and Chief Executive Officer, Garry Ridge; Vice President and Chief Financial Officer, Jay Rembolt; and President and Chief Operating Officer, Steve Brass. 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 November 30, 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, January 9th, 2020. 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.

Executive
Garry Ridge

Thanks, Wendy. Good day, everyone. Happy new year and thanks for joining us for today's conference call. Today, we reported net sales of $98.6 million for the first quarter of fiscal year 2020, down 3% compared to the first quarter of last year. Translation of our foreign subsidiaries results from their functional currencies to the US dollar had an unfavorable impact on sales in the first quarter. On a constant currency basis, sales would have been relatively flat compared to the first quarter of last year.

Net income for the first quarter was $12.2 million compared to $13.3 million last year. Diluted earnings per share for the first quarter was $0.88 compared to $0.95 for the same period last year.

If you follow us quarter to quarter, you may not like the results this quarter. Our business is one which fluctuations in performance of our markets from quarter to quarter are not unusual. That's why I don't -- we don't