WDFC - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Good day and welcome to the WD-40 Company Fourth Quarter and Full 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. now for turn today's would to presentation I host the call, Instructions] like the to over [Operator Ms. Wendy and Kelley, Corporate Relations Communications. Director of Investor Please ahead. go

Wendy Kelley

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

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

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

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

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

Garry Ridge

last of the we Good Wendy. for an year us from call. day fourth the increase of of of which conference million for today's Today, net you, year. sales X% $XXX.X and fourth quarter fiscal joining reported XXXX, quarter Thank for reflects thanks

currency in compared insignificant Net impact on for same an fiscal fourth Foreign sales were $XX.X the an million $XX.X period reflecting exchange share year. to to in last our XX%. per quarter. the fourth $X.XX compared year, quarter was $X.XX the fourth of of increase the million had Diluted last earnings fiscal rates for income quarter

the per for $XX.X exchange in to last were shortly. fourth For more year rates million, favorably Act. the XXXX, net Net quarter year. fiscal Tax net currency will full year. year, been this sales on a XXXX. and million, impact for Investors prior of $XXX.X million in last fiscal year last XX% fiscal X% net note both have XXXX, the year. an fiscal to our to reflecting would year. favorable that were share of earnings fiscal a the of both foreign fiscal in in net year full Jobs compared and earnings up the income basis million $XX.X sales the sales $X.XX impacted U.S. was currency had constant Jay consolidated $X.XX On and over income diluted Changes X% about were detail Cuts Diluted for over share $XXX up talk year due fiscal compared increase should fiscal per

after discussing initiatives, results for fourth of primarily and the purposes the on quarter. operating focus financial call, For this our the strategic we'll fiscal

refer the file on of issued on we press with Form we for XXXX, please our earlier XX. October the annual year to discussion to complete a XX-K, expect SEC today report and our release full Monday, which For results

Now, initiatives. let's with start strategic discussion a about our

like these $XXX one guideposts, our is net year million target targets focused, number of can believe WD-XX by guidance. targets. to Multi-Use to to following Strategic XXXX, model. so that to approximately Product. aspirational. if But is remind grow recall sales consolidated that continue As towards investors you do fiscal and We'd to the be initiative will while most revenue We these of we revenue our we in long-term drive acknowledge XXXX XX/XX/XX to end that long-term targets anticipated are are we stay successful not our in moving business

in last Product million, progress make under fiscal year the find by and fourth the X% year goal that to top initiative often. to fiscal compared This the up In uses Product in our WD-XX to were to Our of the this yellow with more will million year red excellent sales is available quarter grow reflects of a more were the end to can blue $XXX.X important more little Multi-Use sales of year. the places $XXX XXXX. revenues last quarter initiative, Multi-Use most people, XXXX, million, to fourth towards $XX.X X% in of compared and approximately an increase strategic more

poised growth areas that in globe, India of availability part markets, America, and As increased to WD-XX the mission, Multi-Use continuing including We're new around we targeting introduce Product as and China, Europe. to innovations higher and maximize by into are before. Latin a our global leveraging by into established doing our never ones we've this We're markets that growing infrastructure. done in goal this taking way as well

two And for the end of WD-XX fourth approximately in $XXX number year Straw an were In Strategic Specialist year. WD-XX Our EZ-REACH. also increase revenues fourth $X this company of to to innovation WD-XX million growth of by last This million, driver in to year. the $XX.X reflecting the fiscal of last compared XX% up to Specialist initiative the to continuing like of and with drive its the revenue growing sales is line quarter is XXXX. the XX% sales compared to grow were move line. continues million, Smart XXXX, product product products WD-XX the quarter, towards goal

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

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

under $XX of and sources X-IN-ONE, the quarter under which of new in respectively. to $XX.X solid were XX% were fourth the progress as reach track year last and Our WD-XX last We've recognized fiscal revenue year from to strategic this this XXXX. saw an million of Sales initiative goal they in initiative this great like on maintenance revenue existing fiscal BIKE up And year. seen increases compared leverage of well this for by $XX.X quarter, increase X% fourth the year, reflecting year. million, to and WD-XX the believe is X% brands products. derive It as strengths the to to initiative XX% was and we're we revenue million brands this compared a combined approximately global under of

gained geographies. tribe own performed greater Solvol, number our is members. unique we addition, GTXX, and in other understanding four under XXXX, initiative brands channels attract, like which this Spot Shot, retain their In Strategic of vac and no to Lava, initiative outstanding and develop,

the outstanding for the year, worldwide ascend our members care WD-XX tribe customers employee develop, better to take under our our we strategic against its projects our and our regulatory framework, intellectual initiative to grow WD-XX Our rigorous to which today. than operational This that is excellence. fact the fiscal and has triple our mantra: a has five our XXX this, members experienced efficiencies, the U.S. enhance top At products. directly growing retain to take be engagement initiative. economy us of year, on products. in globe. the help The success, fiscal XXXX, sales is is in rate Nurturing nearly values, WD-XX dedication our goal to year initiatives we systems quarters. us believe and on optimizing of I exceptional will is operational and care year-over-year. continuously financial XX.X%, engagement with our we the down fiscal take our coming attract, why resources, the according the With WD-XX and growth XX%. around continue property to it are priority end to assurance, exceptional this members sustain and measure to model of to was to a annual protection. tribe into of members Company That motivation motivation employees factor a of is companies tribe the of one to XXXX initiative continued update level the Using some ties care on the of At core linked year excellence for performance our pipeline to our innovations initiatives. Strategic The number is talented excellence In of about future. and and the new of up make investors had will this customers, our completes is operational to updating end-user engagement compounded the tribe commitment we operational Company, average Gallup. closely guiding cornerstone greater in member and huge focus applying while and shareholders. XX/XX/XX it I'm and excited quality and looking experiences tribe our compliance is our employees, we improve these processes, a and coming our that brands than forward

quarter sales. on details fourth move some with to let's starting our So of results

their Translation the EMEA the As insignificant fourth sales in million versus X% in sales this were I impacts last $XXX.X will results related also fourth of Transaction in from U.S. on earlier, of the quarter. an functional had quarter. currencies foreign dollars to immaterial year. net subsidiary consolidated our up mentioned quarter, quarter fourth impact in

to them various customer little that with results something ordinary is It the the new though that specific part individual in business being our other here more momentum run orders This programs we of is more happening impact common what's from factors due the period-to-period to types fluctuate as I'd seasonal product take discuss I launches. out investments. custom a timing the detail it investors these of fluctuations customer like sales of here our of are - manage that when remind happens including is of and to of of normal level or activities, a to in business at with Before activities. business segments, a normal locations, a we with and promotional one. It's part all not discuss

Canada, fourth increased start Americas. in let's $XX.X includes sales Net So up to million America which year. last the Latin and in X% quarter, United the from Americas, States, the with

were maintenance to to customers advance were last For in buying timing in sales in the due timing States. declines United a when maintenance shift were products Maintenance year quarter. beginning The the for million sales increase entirely in fourth in maintenance the Latin full that compared to WD-XX net at due X% the place $X.X or fiscal of in customer products sales by higher due products X% quarter of increased Sales Maintenance fourth products of Product the price the were down the the orders. lowest year, to due timing as the product Americas in of the year. up well sales the quarter the timing of America or United primarily XX% to of Latin in Americas, in sales Canada, a result programs EZ-REACH maintenance sales WD-XX both to primarily America. quarter year, Partially were the fact X% of third increased of offsetting these the quarter $X.X increases fourth in Multi-Use in as of that promotional country. promotional the the In and as activities in States XX% took down in million the last strong Canada to due was fiscal of product and in compared products region.

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

year. in on EMEA, East, includes X% EMEA, net Europe, sales The fourth from to increased which Africa to in $XX.X and last India, Middle the Now million up quarter,

impacted positively exchange to fiscal XX% sales compared year, reported sales currency in were year. foreign basis, For in rates. flat up last the EMEA's were fourth in quarter the results prior by to constant period. fiscal were the year currency essentially a On EMEA EMEA full compared

during accounted XX% result a As marketing combination as quarter sales to you XX% as XX% growth continuing decline due of region. EMEA XX% of sales, markets, accounted million. of as the well direct for was WD-XX decreased throughout and markets which products Germanics our most our Italy. of with increased Net Product for in that a quarter direct EMEA decreased Multi-Use into increased of sales markets, through a which in distributor of result sales, the region's know, the exception million. in Net the Russia This through of EMEA the operations direct region sales The was region's $XX.X to the during we of distributors. maintenance in EMEA instability primarily sell $XX.X sales our to of the

Now in Asia-Pacific. million up other the and sales Consolidated increased Asia-Pacific, which Australia, to from let's fourth at Asian year. China last net quarter, take in the a look countries $XX.X region, includes in XX%

XXth up the Multi-Use lowest products of three third our last of that quarter sales last to currency primarily the the On last Asian to had fiscal had market, net negatively negative XX% the year region. rates in compared in were regulatory a did major was primarily year. In quarter, impact due China to not for reducing currency basis, The foreign in to reported on sales year, rates year. compared decrease of of sales new foreign on during timing customers' exchange distributor last compared quarter. In the of in net We last and direct in fourth had in inventory we the well price For number, Changes for advance Asia-Pacific sales a Changes of clearly informed - result is predicted were orders this our XXX% year. a in normalize catch in as XX% in quarter to to now investors partners that markets In as last quarter solid compared region. were constant the due to growth. can fourth expect has Product constraints. region the year. returned the last There disruption in the some in this sales been exchange temporary was region in is had as up quarter's coming decreased aerosol the would distribution in Australian sales $X quarter, dollars was markets U.S. into down we've went the fourth China. results up impacted $X.X quarter, a the net We year, X. million year. Australia in impact sell Asian the region. quarter, sales distributor in transitioning to product million to on the year in full The in operation have dollars China, $X in XXXX distribution increase currency impacted an the customer major marketing for the our net Asia Australia, XX% September Fiscal a due not we U.S. sales our compared up are million XX% buying to currency that increase sales effect were the due by fourth into fourth to had levels distributor since

tribe. market market accomplishment of years, we And Over approximately Multi-Use products China largest the world. $XXX XX third country. into our million a Product the last recently, Chinese sold the tremendous is for in the became This the

optimistic China. the remain long-term continue about We in opportunities

timing and varying there promotional building volatility about That's for from way economic of Jay along of who continue the so to industrial the expect to now, be pass the financials. programs, we the due will to over patents the distribution of activities. with of I'm review me the and to shifting Although, going it

Jay Rembolt

Garry. Thanks,

issued year fiscal Let's exceeded that most we guidance. start XXXX guidance. most our how performed about our against results recently our fiscal issued We're or met with pleased the discussion have recently

today our fiscal million of expected be recorded to We between XXXX to X% million. $XXX compared million, $XXX $XXX.X up and sales net we revenue And XXXX.

reported XX%. near of be to margin today, margin gross we gross And expected XX.X%. We

It's because X.X% And million, be of of to had income global in average sales. average diluted reported net guidance weighted million we net our we earnings a EPS outstanding. And of million investment promotion $X.XX of $XX sales. $XX.X expected investment XX.X advertising share and we million we A&P $X.XX X% per be expected XX based today, assuming shares million to near reported and $X.XX, between $XX.X our of our is We net diluted resulting weighted in and later. net between this Act. for unremitted net This income July. fourth on I'll was outstanding. income to and a in contemplated we that EPS. business. This foreign recorded substantially of shares net diluted provisional updated exceeded Today, noting onetime to adjustment of and amounts worth income toll guidance available let's review we XXXX detail when more in with tax U.S. was earnings under use long-term Cuts first, Tax of But $X.X tax resulted model, foreign tax million, in to we the in which associated provisional This the the an XX/XX/XX on adjustment resulted and targets benefit. that guide credits the business discuss our the the quarter, not tax a impact favorable Jobs

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

doing primary represents to cost basis a our our aerosol fourth gross include quarter, driver represents margin XX.X% net finally, XX% business was XX input points. for Well, specialty compared petroleum decline Changes chemicals Our costs, by drive of goal margin. this based to sales. XX of time And toward last over which negatively XX target in decline year. basis major of margin cans, is points. XX% XXX EBITDA. and the the This our were our XX and impacted the - our the were represents In gross the of

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

negatively points that during trading offset of basis were by blocks margin impacts increases costs, basis gross also primarily effects points fourth price XXX by due by XX in last points three gross quarter. to margin customers to gross addition, our quarter. margin XX in other partially These positively margin gross was In months, and Reduced we've other to which the negative discounts all impacted basis give which impacted and miscellaneous over positively favorable impacted the the the we EMEA promotional by the XX in increases, segment. in implemented

As long-term in upon price commodity of particular of target our a above control cannot we reminder, of our isn't contingent staying gross to point. deliberate margin can managing rest the gross dynamics, so target the over XX% our XX% maintain at or be and focused our any business, We but long-term. we at continue prices margin market that

cost Now, advertising increased XX%, of primarily we'll employee-related In quarter, fourth or business in quarter. our remaining last million $X.X address the fourth our of business cost to of doing to costs due business. our compared relatively compared increased and and cost the last to the same higher was Overall, doing flat XX, the period year, doing approximately year. promotion investments

made quarter. this we've in A&P our investments fourth we initiatives, with the majority was in the of XXXX As brand-building fiscal to incremental support investors, and increased investment shared during

the make we quarter, of business people XX% marketing, in in the three advertising the For of make costs and investments came we cost investments tribe; or from our fourth our doing areas: promotion.

was products the in promotion percentage fourth and costs customers. our then investment to of our get quarter; our advertising and sales, X.X% finally, to a freight As

discussion our million XXXX, in we initiative, make investments business our EBITDA, objective of to In the we Ultimately, strategic last achieve year of of to in While completes us for of And both revenue on sales, of helping necessary and measures. fifth year. growth activities an sales business of of XX/XX/XX XX/XX/XX brand-building our the current of our continue is most our to $X year. support the is brings net EBITDA our XX%. to have our to this the target of doing support additional quarter target investment factor fourth will this And operational expect this that net long-term was digital long-term physical quarter. XX% excellence. fiscal for closer XX% cost to make important in model our

weighted Act. a diluted million quarter was an Let's move This shares compared $X.XX as period XX%. have XXXX of million Fiscal $X.XX increase for and decreased prior and has the outstanding average transition of year shares the earnings Cuts in Net it been ago. a a year learning income Tax U.S. of the for same $XX.X to net to and the Jobs last in and fourth XX diluted And resulted Act. million reflecting year. discussion $XX.X on year, per from the XX.X year relates million to Tax of shares share income versus

of Tax We've complexity finalize provisional earnings the per and foreign the companies the toll second $X.X In share quarter, to the recognized tax fourth year diluted our foresight their during for toll provisional million SEC to the our and the amount million a impacted of include tax were $X.X Act had adjustment Fortunately, to by earnings. one a tax associated recorded income unremitted period the on accounting. a quarter. positively tax expense previously net with

However, in be analysis, full our the the on would toll with fiscal benefit tax we revised in investors expected will result associated exceed and to tax effective $XXX,XXX. had the range. rate told XX% tax and determined initial foreign during XX% of quarter are a to the tax fourth expected that our net tax toll year analysis the for credits Based small

XX, provision to explanation now determined rate for income XXXX, we've U.S. taxes. of the effective impacts compared a determined much Jobs XX.X% and Cuts year. the Tax August investors at - XX.X% recommend income on last company's on since XXXX Act lower period review I for for for our XX-K the Form ended since is However, strongly full that fiscal the the tax the we've our that

We expect to file our XX, XX-K October on XXXX. Monday,

XX% in the for year effective will our that to be XXXX range. rate We XX% tax fiscal expect full

and subject continued is our Tax to changes income in changes tax Act tax laws. resulting analysis income legislative any of for from the the provision the However,

our word a Now about and capital sheet allocation. balance

line Following of to credit. we $XX used abroad the down pay recent tax changes, and million our of generated earnings repatriated the proceeds

As comprehensive growth, a largely remains returns our approach balanced fluctuations some between fiscal maintenance stockholders. investing capital this sales, strong and year. see make to result, of unchanged you'll includes CapEx typically providing We and - our sheet our allocation Overall, in long-term strategy large of but XXXX. balance on X% to and target fiscal to while take X% additional net planning some investments a we're

in maintenance So excellence. addition support of during in to CapEx, XXXX anticipate fifth the initiative investing roughly $X we our normal million strategic in $XX million approximately operational

During the purchased fiscal UK-based new are and house space. members, renovating have a we to currently XXXX, building our we tribe

We during $X a investment the of this office complete will approximately of make facility. renovation to capital XXXX million

on capital to an $XXX.XX, of end exciting stockholders at understand have $X.XX net of innovation We our payable per we Directors dividend investors Based this dividend XX the eight in manufacturing X.X%. years. price XX. dividend October approved is and quarterly ratio to cash margin. October on increased the record enhance a our costs stockholders, innovation income of target users' a In of yield and support we come. the XXXX, business over XX% Board a annualized and the be close to lower that our And of of to months updating of X, exciting addition, of last the On experience, payout consistently today's forward new dividends October making improve importance closing investment we'll on our look share our our new dividend will to ultimately, gross regular

been This total million will share million repurchase $XX plan, we on for plan quarter, repurchased XX, XXXX, expired $XX XXXX. our into fourth XX, on by XXXX. over us X, $X.X our June of at board August the of the million August board-approved just shares During expire share cost but new XX,XXX September had a under which plan a stock and in went XXXX, repurchase effect approved

let's our XXXX So to guidance. with that, fiscal turn

instability U.S. the us things this for both One crude, XXXX. of benchmark oil crude January Brent, of and predicted price concerning reference global since than of more is WTI, have that prices, prices. year the for risen XX% crude is the the

of be per In fact, that $XXX some are crude could reality barrel in years. for the first experts speculating five time a

in reported almost our dollar, can results. have as our U.S. exchange based generating significant foreign in In currency addition, impact XX% other revenue shifts currencies a the a company of U.S. than on rates

within growth net while expect are net the I'm the that between exchange XX.X guidance and This Net be weighted be XX% between global tax does with $XX.X that changes prices expected provision income completes tax our we're between as are X% comfortable $XXX between for provision that and Advertising margin relates near X% control about So the and out X% control. expected guidance be to give, can sales. Gross it for investment promotion to with income impact there is net we acknowledge But to the dynamics our that, million. sales things that with million are results to legislative outstanding. and sales. remainder on and the of based be XX% include any resulting The and is future the between to earnings of is $X.XX XX%. is to be acquisitions we of an entirely shares close Well, analysis projected million estimated to laws. million. some diluted And projected $XXX And $XX.X our will that levels sales expected be year to that tax between is full income expected to fiscal be the X.X% from changes and financial continued to to the tax any XXXX. subject and cut of foreign of our share to for million or and remain per overview. $X.XX currency for current not average rates commodity assumes divestitures, projected and is

back Now, Garry. to

Garry Ridge

Jay. Thanks,

had closing, we X% today's us the from fourth hear for call? in X% did and that for what quarter growth sales So full the You a you heard on year. global

that the revenue heard which fiscal consolidated million You long-term to sales progress target, we to XXXX. approximately towards drive continue our is end by $XXX to in make net revenue of

Multi-Use WD-XX of the full grew Product sales global that X% year. fiscal heard You during nearly

global You WD-XX the during sales XX% heard year. fiscal Specialist grew that full of

disruption growth. distributor and heard this fiscal to You have solid returned the our recovered Asian year, markets now that region earlier has the from they encountered

heard rate Cuts XXXX expect net fiscal that You in the XX% income and XX% fourth to earnings impacted normalize the share at our both quarter U.S. due that we the year about were Tax that XXXX. tax and our Jobs in Act, per diluted and fiscal year and to to favorably

some exciting investment heard capital You increasing product that our this to support year enhancements. be we'll

year in I'd building. You physical investment that heard top fiscal to that which line And both into issued its that The XXXX. continue In back to will you call Toume. on competitive only the a investments go we'll company additional the people. like word which quote Thank support Kamil be being digital closing, heard brand solid you advantage increasing guidance, growth projects this now is our for one the you operator. in and from we is real A&P any with business and to share we

Operator

Jefferies. the Daniel question from Our Instructions] [Operator comes from line of first Rizzo

- proceed. Your please line is

Daniel Rizzo

you? How everyone. are Hi,

Garry Ridge

Good.

Jay Rembolt

Thank you. Fine.

Daniel Rizzo

Just clarification. - sorry, a I'm

You wasn't I'm sorry, that on I think excellence operational for clear $XX said, Is that. or I CapEx. million in building? brand

Garry Ridge

out normal have some building new in basically equipment the is have. we what plus capital the and It's facilities true and of the capital - tooling our new for UK, for equipment we maintenance then

capital real truly it's So expenditure.

Daniel Rizzo

a the it actually? mean, Okay. us. don't I certain just next And color seasonality is promotional some of year? there give you like cadence then, general or know, on activities just in I could to

Garry Ridge

normal should of difference there we that no course work the to really be do. No,

lines it that along from As quarter will year. as And it you to know, Daniel the sort be same of quarter. varies last

digital, in our refreshing websites. investment our upping enhancing are search optimization, our engine We

digital we'll be on and Italy building, opportunity then, like being brand India, true in other the world. We increased have sampling the countries and that. around strategy And markets China, a dominant, developing behind working

Daniel Rizzo

paying the were debt you interest that - down just I that's pay-down of Are because able the kind or always mean that debt you and Or we is saw, that is plan? the repatriate of - money the higher that is coincidental in this rates? to

Garry Ridge

we we brought pay ability consider the of net-debt-neutral of the kind bring credit. cash that And Yeah, it to had and our back, the back line - think used because ourselves to company. we down cash I a

Daniel Rizzo

and - Okay. that? are U.S. extensions in And to here things products, Europe opposed Straw, based the as is EZ-REACH line or other or right? like then, EZ-REACH any that markets primarily for that's finally, like Canada Those

Garry Ridge

the The of EZ-REACH, Germany, two countries we'll United last the Europe during in and countries in year, a in being number fiscal XXXX. Italy. We've Europe We in launched with other launching in into new initial Australia that launched was in launch States. later be and year,

Daniel Rizzo

very you Thank Okay. much.

Garry Ridge

you. Thank

Operator

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

Rosemarie Morbelli

everyone. afternoon, good Hello,

Jay Rembolt

Hi, Rose.

Garry Ridge

Hi.

Rosemarie Morbelli

Jay, so at I $X.X was the you benefit, I tax - I look said benefit, to net the believe, if the income. million

Jay Rembolt

Yes.

Rosemarie Morbelli

So $X.XX diluted. be about that per share, fully would

Jay Rembolt

Yeah.

Rosemarie Morbelli

your tax excluding reported, Okay. therefore, have versus $X.XX would $X.XX you benefit $X.XX. this And to of guidance

brought which surprises? the talk could positive about you So had areas

Garry Ridge

any I real guess, there wasn't really positive surprises.

I margin think that is driven gross cost our our of business. revenue, outcome see the then you'll then and whole doing by and

predicted. Our center revenue where kind of the of was in we

the identifiable in quarter, reason. was business a doing of less but little totally for any cost not Our

I business year. So through managed the the tribe well think the

think our well guidance through. thought I was that pretty

we I it's business. have not downs we're surprised. year. shared, think going that we way different We're in different every as in a through the markets with we can performing We're in overall, to and places as go And So accept. ups comfortable

So kind where I think up. comfortable we ended were we of

Rosemarie Morbelli

at feel fourth take Or year? to increased when the in next from XX% that when the Okay. can your longer I that? from so expenses of quarter, the appreciate and we look us we you advertising in promotions that? Can those as benefit felt promotion does first benefit it expect a to the that. going be is than And give quarter

Jay Rembolt

Sure.

the of million this the All two and in longer year are digital in million basically was increased term. It's in areas. optimization. $X we're which XXXX in making, $X investment is the One our

like efforts our our markets product the So of refreshing optimization, as as areas search all usage engine some being Mexico, can the increased to And And sampling. digital we our build growth identified to where that awareness Colombia other through we creating use the and websites, in to in we've presence continue the brand India, second optimize markets of in those future, digital. in sample is countries Europe. and Italy, basically assets we've

expect uptake well real So to and that into until on we any see early wouldn't XXXX. XXXX

Rosemarie Morbelli

in Asia the you in was XXX%, China new Okay. if increase Thanks. the did Pacific, resulted of not up mention new may, with which I And an distributors, so okay, sustainable. business is marketing And XX%.

we sustainable terms growth what the So in in of quarter-to-quarter. expect that it should will region? understand I And move around

Garry Ridge

expect we grow revenues of and Our that We a grow year. in to in that revenues expect a in in would our XX% European the revenue between area Americas business X% expectations the somewhere year. business somewhere would XX% to We remain a aggregate in will X% expect would grow of year. same. the X% Asia-Pacific And our to area XX% in somewhere

Rosemarie Morbelli

us lastly, could for segments categories? looking your a and feel or at And better give Products different the you Okay. Multi-Use

Garry Ridge

most I the our Multi-Use - in don't I'm Product? sorry, the Well, question. understand

Rosemarie Morbelli

different others? I the I what actually What them what do? do? Specialties, than but some more Multi-Use of missed in and apologize grew more Well, BIKE product the And if it, did the did in - BIKEs lines, where

Garry Ridge

Yeah, our we if BIKE about you up as Multi-Use blue little reported about in about it as red reported, XX%. yellow our and top, X.X%. year we was with nearly the the in think XX%. was full year, the grew up Product, can Specialist, - the

were So up the the for or year. full nearly of Products total our X.X% X% Multi-Use

X-IN-ONE We also in product, had growth good was up our which high-single-digits.

or for driving not, if up our high-single the long-term product all lines of, double-digits were most are year. So of the that

Rosemarie Morbelli

Okay. Thank you.

Garry Ridge

Thank you.

Operator

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

WD-40 (WDFC) 18 Oct 182018 Q4 Earnings call transcript