WD-40 (WDFC) 8-K WD-40 Company Reports 5.8% Increase in Third Quarter Sales and 5.6% Increase in Third Quarter Net Income

EXHIBIT 99.1

  Contact: Garry O. Ridge

  Phone: 619-275-9324

WD-40 Company Reports 5.8% Increase in Third Quarter Sales and 5.6% Increase in Third Quarter Net Income

SAN DIEGO, July 2 / — WD-40 Company (Nasdaq: WDFC) today reported net sales for the third quarter ended May 31, 2008 of $82.1 million, an increase of 5.8% over the third quarter last year. Year-to-date net sales were $240.2 million, up 5.0% over the same period last year.

Net income for the third quarter was $8.1 million, up 5.6% compared to the prior year’s quarter. Earnings per share in the third quarter grew to $0.49 compared to $0.44 during the same period last year. Year-to-date net income was $23.0 million, an increase of 3.1% from last year. Through nine months, earnings per share were $1.36, compared to $1.29 for the same period last year.

Summary

• Net sales increased 5.8% to $82.1 million for the third quarter. Year-to-date net sales grew 5.0% to $240.2 million.

• Third quarter lubricant sales were $61.2 million, up 8.2%, and $177.8 million for the first nine months, up 9.6%. Household products sales for the quarter were $19.2 million, down 1.0%, and were $57.7 million year-to-date, down 7.0%. Third quarter heavy-duty hand cleaner sales were $1.8 million, up 4.9%, and $4.7 million through nine months, up 1.6%.

• Americas region third quarter sales were up 5.8% from a year ago and are down 4.3% year-to-date. Europe region sales for the third quarter were up 3.4% and are up 17.9% year-to-date. Asia/Pacific region sales for the third quarter were up 16.1% from last year and are up 26.4% year-to-date.

• Net income for the third quarter grew 5.6% to $8.1 million. Year-to-date net income was up 3.1% to $23.0 million.

“We had a solid quarter around the globe,” said Garry Ridge, WD-40 Company President and CEO. “During the quarter we saw a positive impact from our conversion to theSmart Straw^® delivery system on the WD-40^® brand in the U.S.”

“We were able to implement the conversion to Smart Straw smoothly, and are now moving into the promotional period for that product,” Ridge added.

Updated Fiscal Year 2008 Guidance

WD-40 Company still expects fiscal year 2008 net sales to grow 4%-8% to $320-$332 million. The company now expects net income of $30.0-$31.2 million for fiscal year 2008, achieving earnings per share of $1.78 to $1.85 based on an estimated 16.8 million shares outstanding.

Third quarter gross margin was 46.5% of sales compared to 47.5% in the same period last year, reflecting higher underlying cost of goods. Through nine months, gross margin was 47.4% of sales, compared to 48.2% in the same period last year.

“Our cost of goods have been impacted by the general increases in commodity prices, particularly the sharp increases in oil and steel,” Ridge said. “We are working hard to minimize the impact of these cost increases on our gross margin through a combination of price increases, innovation and cost reduction strategies around the globe.”

Advertising and sales promotion expenses were down 16.1% for the third quarter compared to the same period last year and were down 4.1% for the first nine months of the year.

Selling, general and administrative expenses were up 6.1% in the third quarter to $21.4 million and were up 6.8% through nine months to $63.0 million.

“Recently we have also launched new products under theSpot Shot^® brand that give our consumers the best of both worlds—they want powerful but environmentally safe products, and that’s what we’re delivering,” Ridge said.

Spot Shot Instant Carpet Stain and Odor Eliminator^TM and Spot Shot PetClean^TM are non-toxic, certified biodegradable by the Scientific Certification System and environmentally friendly—containing no volatile organic compounds or phosphates—while still delivering the superior efficacy consumers have come to expect from Spot Shot.

“Also from our innovation program is the3-IN-ONE^® No-Rust Shield^TM, a new product launching in the fourth quarter that protects tools, sporting goods and other items from rust and corrosion,” Ridge added.

On June 24, 2008, the Board of Directors of WD-40 Company declared the regular quarterly cash dividend of $.25 per share, payable July 31, 2008 to shareholders of record on July 17, 2008.

Total sales for the third quarter were 59% from the Americas, 32% from Europe and 9% from Asia/Pacific.

WD-40 Company’s 4th quarter fiscal 2008 earnings call is scheduled for Wednesday, October 15, 2008. WD-40 Company’s 10-Q will be filed the week of July 7th, 2008.

WD-40 Company, with headquarters in San Diego, is a global consumer products company dedicated to building brand equities that are first or second choice in their respective categories. The Company will leverage and build the brand fortress of WD-40 Company by developing and acquiring brands that deliver a unique high value to end users and that can be distributed across multiple trade channels in one or more areas of the world. WD-40 Company produces multi-purpose lubricants, WD-40^® and 3-IN-ONE^®, the Lava^® and Solvol^® brands of heavy-duty hand cleaners, and household products 2000 Flushes^®, X-14^®, Carpet Fresh^®, No Vac^®, Spot Shot^® and 1001^®. WD-40 Company markets its products in more than 160 countries worldwide and recorded sales of $307.8 million in fiscal 2007. Additional information about WD-40 Company can be obtained online athttp://www.wd40.com.

Except for the historical information contained herein, this news release contains forward-looking statements concerning WD-40 Company’s outlook for sales, earnings, dividends and other financial results. These statements are based on an assessment of a variety of factors, contingencies and uncertainties considered relevant by WD-40 Company. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements, including impact of cost of goods, the impact of new product innovations and renovations, the impact of foreign currency exchange rates and the timing of advertising and sales promotion activities. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that the Company’s expectations, beliefs or projections will be achieved or accomplished.

The risks and uncertainties are detailed from time to time in reports filed by WD-40 Company with the SEC, including Forms 8-K, 10-Q, and 10-K, and readers are urged to carefully review these and other documents.

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,
	2008			2007			2008			2007
Net sales	$	82,104		$	77,581		$	240,202		$	228,868
Cost of products sold(1)		43,921			40,714			126,409			118,490
Gross profit		38,183			36,867			113,793			110,378
Operating expenses:
Selling, general and administrative		21,446			20,215			63,014			59,006
Advertising and sales promotion		4,339			5,173			15,222			15,876
Amortization of intangible asset		147			147			449			434
Total operating expenses		25,932			25,535			78,685			75,316
Income from operations		12,251			11,332			35,108			35,062
Other (expense) income:
Interest expense, net		(433	)		(401	)		(1,229	)		(1,695	)
Other income, net		212			333			753			148
Income before income taxes		12,030			11,264			34,632			33,515
Provision for income taxes		3,957			3,620			11,663			11,238
Net income	$	8,073		$	7,644		$	22,969		$	22,277
Earnings per common share:
Basic	$	0.49		$	0.45		$	1.38		$	1.31
Diluted	$	0.49		$	0.44		$	1.36		$	1.29
Weighted average common shares outstanding, basic		16,431			17,144			16,700			17,070
Weighted average common shares outstanding, diluted		16,580			17,328			16,881			17,268
Dividends declared per share	$	0.25		$	0.25		$	0.75		$	0.72

⁽¹⁾ Includes cost of products acquired from related party of $5,927 and $4,481 for the three months ended May 31, 2008 and 2007, respectively; and $17,104 and $14,276 for the nine months ended May 31, 2008 and 2007, respectively.

WD-40 Company

Condensed Consolidated Balance Sheets

(Unaudited and in thousands, except share amounts)

	May 31, 2008			August 31, 2007
Assets
Cash and cash equivalents	$	37,547		$	61,078
Trade accounts receivable, less allowance for doubtful accounts of $537 and $369 at May 31, 2008 and August 31, 2007, respectively		52,097			47,204
Product held at contract packagers		1,810			1,447
Inventories		17,275			13,208
Current deferred tax assets, net		4,159			4,145
Other current assets		3,017			3,489
Total current assets		115,905			130,571
Property, plant and equipment, net		11,016			8,811
Goodwill		96,321			96,409
Other intangible assets, net		41,975			42,543
Investment in related party		767			1,015
Other assets		3,616			3,837
Total assets	$	269,600		$	283,186
Liabilities and Shareholders' Equity
Accounts payable	$	18,298		$	21,854
Accounts payable to related party		365			1,506
Accrued liabilities		14,176			12,780
Current portion of long-term debt		10,714			10,714
Accrued payroll and related expenses		4,571			6,906
Income taxes payable		3,016			97
Total current liabilities		51,140			53,857
Long-term debt		32,143			42,857
Long-term deferred tax liabilities, net		16,601			16,005
Deferred employee benefits and other long-term liabilities		3,497			2,195
Total liabilities		103,381			114,914
Shareholders' equity:
Common stock, $0.001 par value, 36,000,000 shares authorized — 18,004,565 and 17,883,299 shares issued at May 31, 2008 and August 31, 2007, respectively; and 16,441,067 and 16,848,601 shares outstanding at May 31, 2008 and August 31, 2007 respectively		18			18
Additional paid-in capital		81,063			74,836
Retained earnings		128,093			118,260
Accumulated other comprehensive income		7,111			7,504
Common stock held in treasury, at cost — 1,563,498 and 1,034,698 shares at May 31, 2008 and August 31, 2007, respectively		(50,066	)		(32,346	)
Total shareholders' equity		166,219			168,272
Total liabilities and shareholders' equity	$	269,600		$	283,186

WD-40 Company

Condensed Consolidated Statements of Cash Flows

(Unaudited and in thousands)

	Nine Months Ended May 31,
	2008			2007
Cash flows from operating activities:
Net income	$	22,969		$	22,277
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,799			2,742
Net gains on sales and disposals of property and equipment		(6	)		(17	)
Deferred income tax expense		417			1,622
Excess tax benefits from exercises of stock options		(158	)		(436	)
Distributions received and equity losses (earnings) from related party, net		248			1
Stock-based compensation		1,887			1,502
Changes in assets and liabilities:
Trade accounts receivable		(4,947	)		21
Product held at contract packagers		(363	)		(674	)
Inventories		(4,036	)		449
Other assets		360			1,769
Accounts payable and accrued expenses and liabilities		(4,560	)		7,222
Accounts payable to related party		(1,141	)		720
Income taxes payable		3,219			83
Deferred employee benefits and other long-term liabilities		1,724			82
Net cash provided by operating activities		18,412			37,363
Cash flows from investing activities:
Purchases of marketable securities		(76,175	)		(171,625	)
Proceeds from sales of marketable securities		76,175			171,625
Capital expenditures		(4,351	)		(1,628	)
Proceeds from sales of property and equipment		142			233
Proceeds from collections on note receivable		—			25
Net cash used in investing activities		(4,209	)		(1,370	)
Cash flows from financing activities:
Repayments of long-term debt		(10,714	)		(10,714	)
Proceeds from issuance of common stock		3,278			7,086
Excess tax benefits from exercises of stock options		158			436
Treasury stock purchases		(17,720	)		—
Dividends paid		(12,572	)		(12,299	)
Net cash used in financing activities		(37,570	)		(15,491	)
Effect of exchange rate changes on cash and cash equivalents		(164	)		274
Net (decrease) increase in cash and cash equivalents		(23,531	)		20,776
Cash and cash equivalents at beginning of period		61,078			45,206
Cash and cash equivalents at end of period	$	37,547		$	65,982

WD-40 Company

Condensed Consolidated Statements of Comprehensive Income

(Unaudited and in thousands)

	Three Months Ended May 31,					Nine Months Ended May 31,
	2008			2007		2008			2007
Net income	$	8,073		$	7,644	$	22,969		$	22,277
Other comprehensive (loss) income:
Equity adjustment from foreign currency translation, net of tax		(151	)		529		(482	)		1,734
Other, net of tax		89			—		89			—
Total comprehensive income	$	8,011		$	8,173	$	22,576		$	24,011