WDFC - Earnings call transcript Q3 2018

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Operator

Good day, and welcome to the WD-40 Company Third Quarter Fiscal Year 2018 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]. to call, presentation Ms. like host to now today's for would turn over the the I Wendy Corporate Communications. Director Kelley, of Investor Relations and proceed. Please

Wendy Kelley

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

transcript XX-Q ending presentation, on investors call. to The reconciliations encourage as of of XX, at addition In earnings this On available today's available release, made these documents on call, press non-GAAP call, today's are descriptions and to period investor.wdXXcompany.com. the Web measures discuss will our our well today's measures. as also financial we replay are for and SEC we These filings be non-GAAP XXXX. our Investor Form our and after May that location site information earnings the in presentation. A shortly presented available will review at earnings call Relations certain

a statements company's today's our performance. future expectations for the As includes about call forward-looking reminder,

materially. Please actual risk detailed could company's that discussion. further course, in will assurance SEC be differ or but are The good the could results projections no expectations, beliefs there achieved be filings for they refer expressed in to Of accomplished. and faith, our factors

July call like any or the call, date, over note all With today's information that result new events, of to turn Finally, for any current otherwise. Garry. disclaims a XXXX. duty anyone now I'd information, obligation transcript forward-looking as listening to to information as a update whether of or that, future to Webcast please written of presented replay or The reviewing this a only company is XX,

Garry Ridge

joining million an for year. and third call. quarter year-over-year. XXXX fiscal Thanks, thanks third of today’s million net XX.X reported of period in increase us Good This conference Wendy. compared the reflects sales of the XXX last everyone for day X% we to Today, for

Net sales our was On the million third $X.XX in basis, third million net an impacted constant currency favorably grew rates and the exchange for we fiscal $X.XX year, compared a year-over-year. quarter. quarter quarter increase the currency Foreign income compared third quarter the X% XX.X for by diluted to XX.X of of the period-over-period, were per year. earnings fiscal same period share to in XX% for last third sales last

our about discussions start strategic let’s Now initiatives. our

do remind our you investors end by approximately if long-term that continue those be target to guideposts, in long-term in revenue to targets As of the XX/XX/XX are is drive keep aspirational, in year XXX we will most to our of believe model. recall, the our consolidated We’d business following net not targets. so million towards these while that moving and guidance. we to like acknowledge XXXX fiscal anticipated we revenue successful XXXX focus but targets right places are We can our to sales

strategic Our to grow Multi-Use is WD-XX Product. driver number one

premiumization. product of million year. to sales our sales through revenue up to net Year-to-date, In frequently. the of blue steady more markets more top well Our last of strategic to revenue, our last third the both Product X% growth reflecting compared of increase quarter Product with will take places of most for to WD-XX red we quarter, to Multi-Purpose global WD-XX our building Multi-Use Multi-Purpose can third through driver as across of XXX includes little through XX% our a which achieve as continue markets, target who In more order find innovation. the and to we all Product In need million continue XX.X compared developed of people important Multi-Use Product yellow drive to is geographic more expansion an uses the of flagship were innovation were year.

emerging sampling, our part specifically Smart continue product key systems. user Product continued end users Straw in targeted developing strategy, end successfully EZ-REACH and awareness growth end more through groups as and countries among build our As we delivery we innovative identified In WD-XX to users convert of markets, to Multi-Use to premiumization brand opportunities.

investors investing initiatives brand million these. with shared an we’ve before, As X year fiscal we’re to this additional building support in like

strategic Our line. Specialist to is number driver WD-XX two grow product the

grow this Our well new target and product by under categories. developing as geographic to through line Specialist expansion product initiative is the as WD-XX products continued

were WD-XX market million quarter, in of building goal to of Specialist to In WD-XX year. XXX compared order the net of Year-to-date, Our were last XX% of our to Specialist and XXXX. compared of awareness quarter focus stated sales of up revenue the achieve million, end up Specialist is third on XX.X third the XX% in X.X global sales distribution by last year. million,

We about WD-XX optimistic for opportunities long-term are the Specialist.

factors new way However, there our be timing in and other levels base. the volatility to due three to may revenue sales that is building a along with distribution Strategic product initiative come broaden programs some and number as out various we the build out promotional product line. of

and third leverage of also initiative with initiative well Bike existing this our presence. compared quarter WD-XX brands global Americas; fiscal we from has million products three a included quarter, of seen had digital reflecting X-IN-ONE, growth third and solid BIKE sources by new initiative we’ve No will of under of this the believe included Vac as is We achieved to third like revenue strong product Solvol expect the were Much products this the combined success number includes million XXXX derive to last strengths to Asia through to as last cleaning year were of and Lava trading under this increase Spot XXXX. sales to the the net under Pacific. Shot, GTXX, WD-XX of brands in reach across an products. compared and quarter X% and year. XX% included three approximately Year-to-date, in up goal products particularly to the initiative their under WD-XX recognized maintenance with grow been initiative EMEA; from in of continue and BIKE products Company, XX.X includes but sales In all Our Strategic the and of year. blocks. revenue growing homecare end XX sales nurture

WD-XX develop, ago, global tribe retain being number a Specialist and we’re an mentioned building portion few and million I of products where members. enhance and year outstanding our to digital As thrive. $X products sizable additional Strategic moments a is and support other to attract, four fiscal investing in that brand investment is presence driver like BIKE this used

our delivered our program Leadership Lab approach is over Leadership a announced launched tribe we tribe learning develop tribe engaged trading XX,XXX laboratory tribe member These are examples members engagement continued globe. our To Lab, hours grow of around XXXX and for commitment under than tools present to the workforce. Leadership our bench learning Lab is and development. that ultimately tribe’s At XXX global next our than strength. Our in our attendees this goal to members to back our for more tribe, under program to in this thriving three of Today, by people greater generation end initiative company’s blocks support the quarter, of our develop, talented XXX in third program. sharpen is global to skills, our tribe had our to all have attract, We we a retain XX%. culture, excellent our recently build and the learning

new tribe our you I’m new UK-based in XXXX. Additionally, building that make building with to the share house half this a happy for renovating on second to expect continue move we of progress members to we to our to the plans tribe fiscal and

our initiative is Finally, fifth operational strategic excellence.

some over prices, increases commodity model margins negatively our have price our model within at but making for will We our oil, better ourselves long by it margin it under ensure best is initiative those ranges and Company, the have our is long term, measure by recently Our systems made here over values safeguarding recently to the WD-XX one Accordingly, processes the against goal executing proactive Volatile excellence XX/XX/XX against particularly decisions. and our our term. by our this today. to improvements XX/XX/XX while impacted business of remain target business our making brands. operational we than initiative guides crude summarized business core gross gross

rises the price in Americas Although in effect some into increases to these prior price of the third in just the quarter, were June. went effect end the of

our of update initiatives. As effect on a result, in completes strategic see we fourth reflected expect we margin will these the price the begin our That quarter. gross in to the increases

So let’s starting results with our a details in around move on third little sales. quarter more to

to the to total of basis, impact year. quarter, This XXX.X from sales results Australia, impacts net million, I the and our the have dollar X% an sales a results translation-related up earlier, a XXX subsidiary and had what were would segment. As consolidated foreign On year. increase Canada, compared reported been quarter functional last currency as X% we to mentioned affects constant in on their currencies from last EMEA China, refer sales. it is million Translation third versus the third favorable U.S. net of

translation. experienced In about EMEA in which slightly addition, the impacts offset we unfavorable of XXX,XXX transaction-related impacts

increased So exchange third the currency foreign in by net in rates X.X in quarter. our million changes sales total, about

Americas, the Canada, the third products of products we’ll we’ll to Latin America the of States sales U.S., the segments United timing XX% X% the million in EZ-REACH. orders year. the increased Net increase Now the largely in maintenance maintenance products sales last to Americas. up include United X in in compared increased take Sales year. to Canada. and customers’ the quarter, well which the increased look due quarter, of up XX XX% the Latin as in third primarily America about at higher million in sales a from of Year-to-date, were in with and to sales the Americas or start WD-XX as the closer and due in sales X% a Maintenance individual Americas, last X% States,

timing million products products buying effect maintenance were certain went that in product increase sales orders XX% up to approximately We extra of were successful that the X maintenance price both the in In which customers’ programs America due XX% due mostly June. and the promotional in into in current in of of and regions. in estimate customers in the to the addition, sales quarter Americas advance up Canada continue Latin

our to exclude Sales products due As maintenance largely homecare sales the and in the a Carpet products our of Fresh. third quarter Shot homecare prior Americas Spot the decreased our in XX% cleaning cleaning to of Flushes, lower and reminder, year and XXXX products. compared

foreign Now in year. net Year-to-date, includes Net sales third by constant EMEA, currency reported Europe, to India, the rates. over EMEA Middle East, XX% sales quarter, in up third EMEA. increased from EMEA On million by Africa, basis, quarter to results in were to sales which last a and exchange impacted increased the we’ll in XX.X year. last EMEA X% compared to the XX% year. compared move the in last up are positively currency

foreign restrictions of is primarily the Europe. customer in in we into combination in as region. US$XX.X of decline continued XX% know, instability increase World through marketing were of during in EMEA million. to region’s maintenance year-over-year. increased during well result new the these from of a million. realizing sales, quarter in region due the which XX% the markets, As was through to during the to to were of quarter activity. during sales, continued XX% certain timing higher you in Russia sell Russia X% the for operations higher increases to Russian for of a are the orders X% rates, the currency of exchange EMEA shipments and sales These distributor was region’s increase offset, accounted direct increased markets, quarter distribution levels as distributors. products of on This accounted a even sales the Products Net sales This which due direct Northern in the EMEA products of challenges Russia promotional that WD-XX Net preventing sales sales placed distributor the of increased in and into also due impacted to market Partially growth levels Multi-Use Cup. due US$XX.X

the Asia-Pacific. Asia-Pacific down up Asia-Pacific, down in in we’ll net year. net million to Consolidated quarter, sales and region, compared last last X% third to go to other countries Year-to-date, includes in from year. in Now which Australia, were sales X% the China, decreased XX.X

last rates exchange net Asia-Pacific In were driven quarter positively year. reported foreign exchange have to the in a activities significant results our third XX% sales WD-XX of in to Australia, by for successful were period. sales in quarter, in dollars in currency currency not third the currency On year. to distribution was and X% the markets, product impacted distributor net Asia-Pacific’s foreign X.X in compared X.X rates. Specialist did up line constant compared were This million year. Changes a by in by primarily quarter, sales in basis, decreased X% U.S. impact in Australia expanded promotional compared the increase In down sales on Asia the Australia. last million sales last

distributor business transition to marketing the return to three transition believe partners impacted due in Asia-Pacific are of growth has region. and been in that marketing major the worst region negatively fourth This part caused disruption the we Our distributor but the in region the that will we that of in has through quarter. the the transitioning

the building increased quarter increase of were X% region. dollars In opportunities last impact a our industrial impacted period-to-period. X.X sales rates by currency in in basis, remain since do net of had foreign of programs constant in we markets XX% products these timing the We compared sales. in this U.S. although On sell the sales conducted ongoing in quarter, the third dollars million shifting sales along varying volatility optimistic in our positive exchange currency during to economic to would third programs, Asian U.S. patterns distribution, in way we long-term up China, a successful Changes to China, year. primarily the that currency about have Our due not and on promotional expect distributor are promotional due activities. was are the and year. The

for that's of over Jay Now review continue to pass me. I'm the the financials. who to it going will

Jay Rembolt

Thanks, Garry.

First, guide are targets model. These business use review our let's we XX/XX/XX the the long-term to business.

total to gross XX% margin, As our represents of you our expenses and we be which cost operating which may target is business, recall, XX sales. doing excluding depreciation the of net represents The at XX amortization.

EBITDA. time drive of to which doing the our Our business cost XX% finally, is XX net goal represents And over of toward sales.

basis gross XX%. look decline include points represents first This for our to long-term of year. negatively of Changes was our gross Let’s which quarter, margin at time or below by few that margin dipped has aerosol in compared XX.X% gross third a major our chemicals specialty primary our this driver cans, the our In last the and basis the margin was target impacted in petroleum-based input and margin. XX XX years and costs, XXX XX.X% the points. a decline of

you pressure of trading experienced crude oil one goods have feedstocks petroleum-based points chemicals As cost in our the of cans. costs XXX our primary know, negatively put our oil contributing our negatively was rising specialty cost margin by Also aerosol the impacted all is we’ve of of petroleum-based on the of margin blocks. and increased chemical which gross specialty gross basis recently three basis XX our quarter. costs in by Rising points to

other impacted our negatively dollar exchange negatively we basis in freight Promotion These goods warehousing In pound other our generated in our pound in currencies sourced customers Americas to Then points. U.S. margin addition, are sterling is primarily fluctuations and the exchange impacted the mostly due U.S. costs, cost XX pound we the freight which due favorable points negative impacted the XX% in that sterling. partially the This for positively inbound gross decreases margin foreign to and changes of offset gross had or finally against XXX mix gross by euro by by negatively in also the EMEA, higher to are and in other changes the XX% sales primarily points. EMEA XX basis segments in due because by also our currency Americas combined approximately give revenues to costs miscellaneous impacts of market was discounts gross impacted in segment. and than in sterling EMEA in primarily margin and were rates rates of by segment margin the gross and margin effects

the structure made quarter price will increases price trade review rising to the us be which due a to over gross our be gross in Asia-Pacific near of Unfortunately, in volatility is recent take level for uncertain by the necessary and we In of on increases reflected to in increases margin gross is XX last price the coming of year begin it over months of this margin increases Americas our the XX at sales impacted costs will with in our level Continually in quarters. pricing the the oil, term. our our expect we gross these The short implemented basis fourth term, in have will impacted manage target addition, and margin XX%. EMEA blocks. implement each effect In input crude it price which the to price and place positively near points. that we margin can in

to continue be of we our the at margin over maintain our managing our long is a target in gross business will XX% term. we level above However, so focused that can deliberate that and

of investments the areas; people business affected reported we our the Now I’ll of this cost quarter, positively business marketing, address and the of our doing promotion. is XX%. our most business of of revenue in Revenue cost in in doing XX% compared growth quarter advertising our third doing In for the long-term our cost the make approximately XX the of our make third our to target we from the XX% or important of percentage. In costs last came increase quarter, investments doing year, And achieving or third cost was business. factor XX% three year. tribe;

to contributed then Various the And doing in third As cost the our increased business of cost finally, also the unfavorable lower impacted last These from development our and increase in items million X.X% in to A&P of to with compared our our business slightly costs, our general sales, research year costs costs. quarter. doing business overhead incentive offset were foreign to doing quarter, including freight percent in lower primarily compensation. $X.X in currency was to due rates. In expenses cost due of third $X.X along million of the products changes employee-related increased investment earned impacts a also in the to by Increased cost other and meeting get third customers. quarter. investment increases travel the exchange

to us That to have now quarter. closer While is noting. EBITDA, to our XX% doing initiative I’ll we’ll the XX% support our brings business the objective model excellence. cost of of the net sales investments strategic sales, of continue couple of of other net make our And long-term XX/XX/XX discuss target our last completes to business operational measures. of that of worth items of the our was our necessary that current discussion of a the in quarter. EBITDA XX/XX/XX in for

rate in our of amounts, first, to fiscal on common due to to XX.X to year in effective would quarter versus average which XXXX in million in period be provision expect last last we a the the range. $X.XX shares subject U.S. weighted consolidated XX.X% XX XX% outstanding a became Net our second the impact quarter. translation tax XX.X% for have the revisions foreign $XX.X year. income Changes in increase impact for Based Tax currency compared about $XX.X in of our increased that year third had last provisional of basis, The compared analysis $XXX,XXX tax initial by reform this of Act favorable effective quarter the the Diluted the this to XX% prior per reflecting on income year was decrease On were to in results and Diluted primarily income $X.XX to for same year. year. of net quarter of our earnings year. the the exchange the was will in rates from favorable income compared full effective shares share our but million quarter rate constant third the X% million million U.S. tax Cuts from the for currency The Jobs was tax shares third the us XX%. the ago. a an decreased for

law of about our to May, the decided in word we recent abroad. earnings a generated portion and a Now, allocation. balance we’ll our Due tax changes sheet repatriate capital

in approach we we members. also process investing cash to between earnings, balance plans long-term years office UK-based net CapEx CapEx, will incurred same of short you but result, investments strong quarter, see expense balances and our sales, approximately will an XXXX. have target the in providing which X% are fluctuations US$XX May maintenance down a of to to sheet our be our pay of Since million long our will house the includes a reclassified normal the and of purchased of cash as tribe these a between the over disclosed, of early of to in Though cost this We capital returns the As use our and and growth XXXX. for comprehensive of current equivalents fiscal our portion million to remains from building the in our total, $XX typically our of previously balance large XXXX on maintenance to repatriating we quarter. stockholders. are while term addition X% In to term and and stages line are we renovating proceeds and capital credit short-term as strategy allocation largely fourth line credit

of the On June We XXXX, our $XXX.XX, yield XX, regular continue our and through to record X.X%. close return repurchases. $X.XX dividend dividends to share, approved of annual based at Board July a on stockholders XX of the payable cash share capital dividend of business XX. to is today's closing July Directors quarterly And per on price of stockholders

remaining repurchase activities, by At plan plan. million the we its for $X.X $XX third end under repurchase Directors through to which new the the repurchased acquire shares our just up XXXX. under cost million of approved to million the current quarter, million quarter, plan our repurchase current following stock buyback to XXXX XX, of and expiration over company outstanding of company share which XX, runs our the third Board share a total its XXXX shares XXXX. June August of a continue June the had the approved $XX.X the of authorizes of XX,XXX share was we on of order During at Board the plan, In $XX in

with to fiscal that, So let’s turn the guidance. year XXXX

are to prices earnings is $XX estimated remain any per to include weighted guidance with that, net X% million and on that income expected XX%. acquisitions future today expected projected $XXX near investment million be exchange And the sales, in X% share sales currency and to or fiscal be to exchange foreign net for for remainder current income between updating million. with net between recent margin growth of will sales. is to rates. and and net the year We $XX.X average our between assumes EPS an sales And commodity XXXX. full million And X% net net be only is guidance be near currency reflect of This foreign and Gross diluted changes and expected projected between XX.X and to $X.XX million. be $XXX outstanding. close the and projected to divestitures is rates $X.XX to is based Advertising doesn’t shares promotion be levels

the completes overview. that Now financial

to I'll it Now, back turn Garry. over

Garry Ridge

some Jay. heard you summary, Thanks, of what call on In today. here’s this

a growth basis. on constant sales currency a a basis You growth and X% X% heard net that sales net on reported we a had

WD-XX Multi-Use grew the our XX% Product of global heard sales that quarter. You during

of WD-XX You Specialist heard grew that during global the XX% sales quarter.

reported we that heard You EPS of $X.XX. record

that with to XX/XX/XX line business margin You gross in have heard will that increases been implemented help this our or are our be expected remain model. price year

decided our earnings credit. pay of in portion to abroad of You heard we our down repatriate will we proceeds that these of line some generated use and May a

have stockholders that share capital heard we foreign you we’ll to to dividends continue our and updated our only heard rates. exchange through currency And regular reflect guidance repurchases. fiscal XXXX return that to updated You

world.” a for Nelson the weapon you quote change with from us powerful I’d share today. use you joining closing Mandela, can So like you is the to “Education today, in which to most Thank

open we’ll We now questions to for to conference call operator. will the be and pleased back the go

Operator

[Operator Instructions].

comes of B. go question line first from Your FBR. Riley Burke ahead. the Liam Please from

Liam Burke

Good Garry. you. Good afternoon, afternoon, Jay. Thank

Garry Ridge

Good afternoon, Liam.

Jay Rembolt

Liam. afternoon, Good

Liam Burke

had Specialist. did that or strong Understanding promotion have sales variable quarter-to-quarter, you timing that? Is of overall. it sales lower that the or to in just sales is what there in are something Garry, Specialist was from you Americas behind related

Garry Ridge

it’s Again, continuation in to see past shared process you’re vary that just going of a the Liam, expansion of of quarter-to-quarter. the from I’ve Specialist. it

are million We the $XX We so million for Specialist think it’s pushing in that journey. no million, year now concerns there’s up XX% sales nothing to a in, are by I the XXXX, $XX us. mark. year-to-date. that want take to $XXX And

build that more to continue We day-to-day on business of a basis.

Liam Burke

Okay. And XX%. EZ-REACH in the U.S. was up

it You’ve tell? to launched that product is too in or Europe, WD-XX Flexible. How been has the early progress

Garry Ridge

successful. and France, launch in in and it the launched was Italy initial Europe We’ve only

We’re is now year, which our into up Europe really it further production. take next a to ramping around plans plan

have capacity. We

out Europe the markets going our year. we’re of following number in to that So be a fiscal as other roll now across expanding plans we in

Italy including with pleased France and very and and the Australia everywhere far, US. So EZ-REACH

Liam Burke

your how give you reducing And or us that to allocate sense on going way mentioned a debt. Can cash of much percentage any to you short-term you’re reducing wise Jay here? some that Great. you as the to plan

Jay Rembolt

think it’s we about million. Yes, XX

Liam Burke

that you’ll $XX million. by So reduce

Jay Rembolt

expectation. our that’s Yes,

Liam Burke

me. Thank for it That’s you. Great.

Garry Ridge

you. Thank

Operator

Your Daniel from the Please from ahead. go Rizzo Jefferies. next comes question line of

Daniel Rizzo

Hi, guys. How are you?

Garry Ridge

How Good, you? Daniel. are

Daniel Rizzo

well. Doing

again? own have you need feel or prices for raise So range goal in your petroleum what’s you the a for range prices a of would kind before that? to Do mind the

Garry Ridge

raised be prices. We’re currently kind of when going at we the top was our end think of where oil to we

in So see that be need the that already suggest of anywhere until that is and would I wait closely. we’ve would to what I mix We’d flow think the be done. through we’ll something it impactful. the watching mid-XXs we

around how they to to currently but that the price see differently. if have XX, might so the is rise we do flow think is oil got mark, impacted we’ll as something think closer I sitting $XX it $XX, through, we would

Daniel Rizzo

or changes swings. kept Okay. adjusted year. for was of are for what And assumptions for then I your guidance remainder the the wondering just you’ve account FX FX to

Jay Rembolt

the rates same FX remain are. that as Essentially they would

much So variance an see if we impact. are would today they that from where have

Daniel Rizzo

then Okay. you’re include [indiscernible] your working digital presence expanding I as that BIKE online indicated WD-XX you forward, such with for like finally, retailers efforts, Amazon? may And doing and does and your

Garry Ridge

of been is who Amazon and globally as eBay, the from customers us most digital has customer, with Taobao as having well great we’re work new a Yes. a presence. our that is support customer digital doing as regular getting players and expanded the are

search to to investment is have maximize to uses. digital optimization through in content our new and consumption education that’s engine digital driving So continue

and We’re year the about the year and very investment next after. year excited this

We own category. goal the digital is our only a true in that do reason we’re determined brand. we true have globally to can the global And

excited and investing about it against it. pleased we’re to be we’re So

Daniel Rizzo

I’m sorry, got just one Okay. more.

think distributors just that out that major and marketing – happens? three – So different, mentioned you Does I that changing if I China think I with how was somebody changing mean there anyway. Asia that’s you’re often was them in shifting like with wondering distributors, or some in disruption you’re true, you’re

Garry Ridge

time When where it a it does in of But a Malaysia, distributor distributor, distribution, made inventory flow. settles into not tend the we Okay. order number there’s Indonesia. and transfers new no, in How while To distributors, we China. of from to already We ago. and to question, when needs period the hiatus answer old changed the to first it’s happen? months marketing It a happen. have Singapore, new change part the distributor often of was the the

that the when something only not many we Asia-Pacific, market changes. one it or a we at that a feel probably distributors, we need make look to, out have ago those that you direct and whether to but distributor the market, do that we have we we we analyze it’s development, in further globally, we many market. us number we that been our changed If market when that our broader for for feel be of to need But whether need that of presence if years, we we partner time In determine with a years do increase we should while. many, many, regularly a markets was but the needs new has and that that in we find distribution

Daniel Rizzo

Okay. very Thank much. you

Garry Ridge

You’re welcome.

Operator

comes the your Company. Gabelli from with proceed next Morbelli Rosemarie question from & Your of question. line Please

Rosemarie Morbelli

everyone. afternoon, Good

Garry Ridge

Hi. hear Nice you. to

Rosemarie Morbelli

that Just they too order change? question, just not had are they distributors be how following you you small were in was last your effective the new up to in given Were what to on region the reason pushing or efficient? the products

Garry Ridge

It second wasn’t certainly part. the

our we goals not where make at the organization need As we own externally. only to we internally XXXX our capabilities but changes look of and review

we believe because have different So market one in to needed we it position that to get a XXXX. in to us partner that was

one second The distributor company. acquired new a was prior was because the by

our was didn’t change. As together that to that one deliver growth, the would acquisition that we decided closed, was make a future feel so the we

Rosemarie Morbelli

see. I

that the small it onset particular region So to not is that with your around then? order a in region the started at in particular when go get in you distributor need one you first feel get

Garry Ridge

all. at not No,

Rosemarie Morbelli

the for you here that at have are with have feel year those look seen up, for we some if up inflations much coming then expecting pricing far to-date how catching XXXX rate And inflation a what if and you are so are you that? you and and have more full Okay. the instituted

Garry Ridge

The are only movement of the and any we’re cans certainly in costs that. area certainly impact we’ve shared seeing

Most other have been reasonably other who and Jay? knows. the input stable. variable The costs Right, oil of really is

Jay Rembolt

baked Yes, it segments the already we’ve and while inflation but is some seen in. European of most depends in on market back, price a the it

Rosemarie Morbelli

and impact us FX it. I may have but on Okay. on catch And you Specialist, overall us not and maintenance you given gave did impact the on that revenues

line the contribution? the was of and maintenance FX Specialist what XX% on products, line products growth in top top So growth the XX%

Garry Ridge

that don’t out. we’ve I got broken know

Rosemarie Morbelli

not it. I So did miss

Garry Ridge

did You miss it. not

Rosemarie Morbelli

share to so willing you feel? Are it we a get

Garry Ridge

have don’t be We across right I now, it of all same lines. us ratio would the product would that with suggest the the but

Rosemarie Morbelli

a little than Okay, so less then, half right? just

Garry Ridge

Yes.

Rosemarie Morbelli

I was if still the lastly, was – And EPS? impact the may, on what side, FX on what

Jay Rembolt

believe I I income I gave and we said I on was apologize. think – that it think we it

X% income XX% our reported. constant currency currency was So up on versus net without – a the

Rosemarie Morbelli

if stays Do one XXXX then beyond The for everything one the have be full year assuming and you tax to And an may. XX% last rate the year will estimate Okay. this same? I for for XX%.

Jay Rembolt

points we lower. it a Yes, think of be couple percentage will

Rosemarie Morbelli

XX? around So

Jay Rembolt

number that’s range really in a probably we haven’t a the we moment. is that’s it XX-ish the number for down, can – fully but tied

Rosemarie Morbelli

and Okay, great. you Thank congratulations.

Garry Ridge

Thank you.

Operator

gentlemen, for conclude for today’s your on allotted that you participation you ask and time our and Ladies thank that your does We questions. conference call please disconnect line.

WD-40 (WDFC) 10 Jul 182018 Q3 Earnings call transcript