WDFC - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. Good day, and welcome to the WD-40 Company Second Quarter Fiscal Year 2020 Earnings Conference Call. Today's call is being recorded. [Operator Instructions].

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

Wendy Kelley

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

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

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

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

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

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

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

Garry Ridge

you as from respective call. Jay, most expect joining for are homes, Thank conference where Steve, today's dialing and I you, I Wendy. thanks day, are for Good Wendy well. our and in us of

to company these To thank and to their and dedication tribe the work volatile uncertain in the begin, for times. hard like I'd

a complete our times the safety XX, today issued but refer discussion earlier well-being the XX-Q please we Our this these second quarter XXXX, and tribe. afternoon. highlights discuss some from during period of #X with we our the we second our will results, and February our which the priority filed to is release ended quarter, challenging Today, press of SEC for

global talk the outbreak and health and the Today, and crisis our global to difficult the its with on the crisis mostly COVID-XX are successfully we I at of We our the it global the about we effects the navigated entered. are XXXX were currently we business. that our find ones caused this different Together, were company stronger by uncertainty crisis health to fiscal encountering relates impact crisis company from than during we helm the during very both WD-XX on in XXXX. today. economy. when of realize going global tribe, times we're financial the those Company peak facing times Jay and its as difficult and ourselves the at We emerged

affecting is are a worldwide. which We health impacting economies of crisis, parts the and globe all in

people that very know. we outcome the confirmed will continue as face operate know temporary times. and And mind risk don't weeks do on probably we'll a we We know today, our struggle going likely uncertain are and business uncertainty. As impacts negative results. some to these challenges be dealing that difficult a is with have, in to financial disruptive we to global is crisis business through to our a months it short-term the I in okay there that volatile be are and some the that coming that things again, health is know predict. my we lot a true at do some there's result, with while We

also all However, to going we know get this. we're through this, that despite

our to dedicated are who tribe, end strong users. a and our have We brands to

trust products can uncertain people to making that customers our brand certainty famous unique We trade to buy, availability in and times. users can and these committed both a bring easy by channels. our remain which over XX have our which end to We demonstrated in their is

base more We a around territories end-user countries than XXX loyal world. the and in have

bulletproof We have Jay great balance acted sheet, the of by to team weeks. thanks further the and our last couple done work the to finance over

For This the it operational from both sure too all am financial these will and unfolds are positioned reasons, pass. well perspective. we a navigate I to as storm

Now let's talk growth our long-term about aspirations.

they guideposts are aspirations probably growth long-term roughly our reminder, and and wrong are not a As guidance right.

growth business drive this XX/XX/XX while net consolidated to do million to aspirations to long-term are Our model. and our following sales approximately $XXX

clear are long-term to us. Our still very targets

economy XXXX our the delayed. with be may of global However, uncertain aspirations ahead, the timing

During Asia continue to segment, Pacific with perform expectations. strategic our the drivers quarter, line second in long-term except mostly for our the

Let's Multi-Use about number the the one talk is to strategic Product. grow initiatives: WD-XX

due up Americas Pacific respectively. increased primarily by to down WD-XX the under driven of goal offset in decline Product and In Pacific, in was were WD-XX WD-XX a X% Multi-Use This last partially sales revenue. primarily disruptions to in The million COVID-XX X% quarter, Product is the decline related in of Asia driven decline Our approximately $XXX this in X%, to million, by Multi-Use Product grow sales initiative sales in was compared and the Product outbreak. Multi-Use in by XX% EMEA was to Asia decline to year. which sales the WD-XX $XX a Multi-Use China second XX%

customers New channels ship factors was starting As factories Holiday, not you take for Chinese shipments during those COVID-XX could that know, were orders weeks the quarantine and in second several China, impacted after country. and significant Year the place placed our These since were the due to population outbreak in mid-January. in the a to in had number closed our scheduled to February sales many quarter early in of materially greater and distribution we

is tribe closed still in in recent remotely. areas to commence in going Things are tribe we've Everyone back to Schools people to though our seen However, to of remain China. weeks, returning some many work. are China. and start for working back begin production factories work, slowly normal members members

work. this tribe some in members we So parents month, who their Shanghai have office to have little the accompanied

to temporary this working arrangement. support happy are We

volatility encounter our where to will operates and the we expect in global other due disruption regions, global health business crisis. We

two, Specialist WD-XX million initiative and for WD-XX remain $X.X we million grow year. revenue. the In about opportunities product second in to to grow sales long-term Specialist XX% We the line. believe Strategic compared $XXX increased can last optimistic the quarter, Specialist number line approximately to the of WD-XX product

stronger our Specialist, and WD-XX that to yellow last brand Multi-Use blue Product continue with the for presence discussed forward with believe a them a which We as red we with top. new we quarter, us move will brand both give WD-XX aligning little and you packaging

BIKE and and and initiative base. home number Strategic but number and maintenance X-IN-ONE, vac in three Pacific. such initiative Americas, three, Solvol revenue brands broaden XXXX care as like includes the Shot EMEA also in products GTXX Strategic Asia and no Spot in product includes Lava WD-XX

for the initiative approximately were included X% Our million second products year. of sales products is up under $XX quarter, combined Global last this the this goal the compared a initiative of under million. to to reach revenue $XX.X in

four, outstanding and number attract, retain initiative tribe members. Strategic develop

these many of effect them of several from tribe where exclusively difficult the in most been putting their first We in in orders times, have working weeks our shelter the and and well-being of tribe countries home our members now. health, during are and families for work, place members safety with live

a other. the with IT exceptional community they done jobs a Our that need We a an shared are around that to teams feed has to everyone defend we their world each people call of the is ensuring have help because ourselves job and complete technology remotely. tribe purpose,

difficult that During times, definition is these I particularly fitting. think

than There is a to no better now have highly workforce. time engaged

report overall envy and employee many score global quarter, our the took our remains of employee During to happy at that engagement organizations we second the survey, XX%. engagement biannual I'm

macroeconomic enviable as always others of so are strong and position. five, times has The From and through Strategic world our seen a now I in sheet a our the wisely. We've will operational full It in to lifetimes. storm financial ambiguity more ever is maintained it is our which initiative number us see just we funds other and than excellence. an help managed maintain in our volatility, operational excellence, commitment perspective, have of balance uncertainty, uncertainty.

update the to drivers. Steve, strategic will now highlights. I'd the some of call discuss pass That operational who completes the

Steven Brass

times. and good sales you Garry, what Thanks, impact of our happening that to all challenging the we're global daily. well right for I'd results like The is I through the about operations health with net afternoon. crisis now. on these evaluating addressing during than second Therefore, hope unprecedented going that you're challenge talk today, rather quarter, and an represents

today. release quarter For results, operational details the issued about please second we earlier press refer our to

any giving high-level what any today. numbers the won't changes know, every projections, and you I know situation just As summary so be day, dynamic future is of we a or

experienced I countries many is COVID-XX, have with share March, that in due a you line we disruption in in typical were to historically can March. what revenue in What with seen levels the despite enormous

While that want future uncertain. this I is good to remains news, the stress

about supply our bit a chain. First,

partners their are precautions finished governing employees. you partners been partners contract taking for of they the to healthy. long, top know, considered to agencies most the our to recommendations business manufacturing As are all trusted our Many Therefore, the so contract our around have is we and priorities of tribe. outsource following of manufacturers products the safe the are by part safety our of All forth ensure manufacturers our world. one necessary of ensure stay set and of

end WD-XX source structured encounter we as much predominantly the supply is customers crisis. be and able close the minimize Company to Because products we'll and of users health to risk manufacture our chain will current manufactured sourced, we chain that as possible. products our supply locally, warehoused we during such expect and Our are

XX% In region that the impacted own of chain to by negatively work our constrained testament the chain of our partners supply limitations and the is supply their supply regions produce being on of by However, able despite I to an wonderful want -- to resilience chain as our a the outbreak, challenges is our severe by That emphasize tribe. well in Europe, to normal local March aerosol of environment. COVID-XX set movement. was each production hard impacted increasingly of most as our

In the we of a event to in up some be addition, in Brexit. hard inventory used built EMEA, buffer had

we are supply help disruptions in So inventory is useful encountering EMEA. mitigate unforeseen this coming the in extra to chain very us

invested they significant experiencing the weeks. considerable address any continue thus issues over many working to by impact and operational, supply capital chain times the risks lines several far. arisen who've is Americas, some the not to without associated are as pivoted and been current crisis. effort tribe of This the has our not have help will with timely to we our we additional members that mitigate The aerosol be In past

supply our getting raw lines hard tribe and products We chains, and end world materials to obtained, and members are are the chain are ensure working fulfilled the are orders they are our need. functioning, users that closely monitoring global supply around customers production are

our about under briefly talk around tribe. Currently let's mandatory in tribe are Now work-from-home orders. world XX members the locations

but locations home We WD-XX Only the is option where have the are have and tribe office from in not to in today. world mandated. X Shanghai open that work members Company is one

normal earlier, Garry As starting to in China. mentioned are things to return

expect will this We will that side see members some challenging around in of China we several tribe's tribe be all next the the crisis but other gives the for weeks us experience soon. the world, health our hope

moments us. able in as of with learning they've tribe resource wonderful been health have members China been crisis rest the to a share their Our

Finally, some news. good

As you play Company, infinite know, the WD-XX game. at we

a financially view. share We company, today. a some able news I'm happy take to to and be you long-term with we are strong good

marketing direct to transitioning are arrangement a a distributor model in we First, Mexico. from

time. a time. to new want underway thrilled Putting Mexico. members transitioning a opened growth new customers Product in have able have that to We very are X worked of and members basis, both believe tirelessly thank to tribe happen. of be in long WD-XX this We share a model, city their in top direct Monterrey. hired market direct place #X have May, foundation for to on has service and Multi-Use in make we'll X-IN-ONE the who Mexican well brands by tribe our new our stronger gross in begin recently direct to as the as and over we office the #X We're been faster to I will the generate margins category line

Year-to-date, XX% ago, becoming e-commerce, retail channel of as the it global to today, world X our the is leader is and continue years fastest-growing make fastest-growing e-commerce by to area. and category compared year. in grew our globally and channel progress Second, this committed e-commerce sales we the to outstanding in well. we in digital vision last

orders, tribe a a work have global recently our world's shift in category. is consultancy landscape. of change in shift to population behavior we're is seeing with becoming we global With Digital behavioral that will the a believe WD-XX the in the positioned seismic we in space leaders online permanent journey from benefit our who digital Company from We a towards continue Chief lead stay-at-home in the our well also may believe and X/X buying what one significant to appointed to patterns. Adviser leading observing

In addition, experience the recent learning we China. we're in from had

crisis, by While the sales e-commerce declined XX% health year-to-date sales increased over in same to XX% China period. due the

financials. update turn for will Jay call I Now on the an the over to

Jay Rembolt

of dollar, second the foreign the constant results sales to quarter Thank net On currency of favorable $XX.X you, Steve. impact XXXX, fiscal year. second Translation Today, a from quarter our of their we the X% currencies of X% been million $XXX in for year subsidiaries second down functional reported to a last compared would slight basis, million, compared on last to sales year. quarter. U.S. down have the sales

out the with $X.XX last compared in last financial And year. strong on side crisis very second diluted $XX.X draw we earnings we're was the $XXX and amended credit $X.XX a for position down from second recently a this elected to sheet liquidity period for compared was We're of a decrease income position. enviable for a other further $XX to share to focused our come business. XX% much million, newly the through facility the quarter quarter perspective, to million an a stronger per as million same which year. strengthen managing from balance And to Net

this last the costs sales quarter, long-term margin to Americas our we margin mix The XX/XX/XX major impacted all Let's by today's about unfavorable China, use start to year on warehousing as for primarily mix In and model, in higher sales compared shortfalls targets gross blocks points. business three basis and changes to was call, drivers mix focus in miscellaneous In changes, discussion have other the unfavorable due other higher compared primarily higher drivers where second in margins, to product with a impacted costs. shifts a prior trading and guide represents we decline the our as going decline a from gross XXX margin. XX.X% our period. miscellaneous negatively Asia the quick were Pacific, market margin I'm impacts in gross to The On This of direct XX.X% miscellaneous our basis that business. the XXX points customer Impacts year. of negatively and freight were gross typically costs. and well Asia for sales in overall Pacific. the EMEA

our impacted points. by specialty margin EMEA, warehousing and margin higher costs freight, negatively impacted input primarily by addition, major gross impacted positively in points period-over-period. points. negatively XXX In by basis inbound our basis Petroleum-based our chemicals basis in Changes XX margin XX

points XX chemical to However, cans more we of aerosol due negatively costs. by lower margin the than increased and realized specialty gains basis offset our impacted cost

points basis in gross margin by which Finally, rates by currency negative positively foreign favorable were to and to discounts changes basis by the the These negatively in our points. exchange effects combined, XXX gross customers, quarter. gross margin our of impacted lower margin increases impacted second price when impacts offset XX

Recently, margin. oil Falling likely let's a prices more bit net a to Now positive oil. to most multiyear talk crude gross little oil about our will crude lows. be plunged has

we sold, drivers, supply which of don't of it to production crude petroleum-based custom-formulated the is see buy difficult until distinctive buy impact the goods time. fixed changes it cost take know This we which complex will characteristics. However, our in because some specialty instead region, have oil, costs these demand chemicals, and is extremely cost long-term manufacturing we including and

for often In can products is strengthens. of much a the cost benefit only of the addition, other total stays dollar currencies dollar, small a on of since will a cost the amount costs And falls, a countries the If goods of of the this produce petroleum price Multi-Use based leave the oil. the market here likely outside oil crude we Overall, current to can levels considerable begin in of amount to estimate U.S., in global manufactured about higher. oil Product correlates the of price barrel for U.S. we in in time, a XXX directly to at WD-XX to see XX our when days.

strengthen we've gives sheet steps business efficient the balance word through capital March, $XXX date our with line of strategy. sheet We increase remains condition allocation our as and it to believe about The position business we crisis the a liquidity and extend to taken the recent our model XXXX million. Now our commitment maturity to company's Bank and strong. credit financial us amended and the revolving of In our this to unfold. continues manage to to to America our balance

will of this balance line the as an and At million remaining the capitalized, exercise line of decided we we additional to restore for available on need $XX well the simply funds, to credit. on fairly risk the $XXX caution draw March, of this arises already revolving during time liquidity weather of macroeconomic bringing approximately uncertainty. are these had our potential we debt borrowed and Though additional and to we abundance ensure no balance an If manage unprecedented million. credit, of of end repay our storm, credit the we

have purchases have making elected share current under addition to to these steps, buyback In our plan. stock we been the suspend we

impacts financial of doing idea in until this the have cash crisis. we to order are preserve this long-term of We better a

XX, to share Directors approved shareholders a of quarterly XX. April our the on shareholders dividends. return regular close We of cash of $X.XX On continue our capital payable of record dividend per March through Board to business to

year and the delivery world, believe fiscal future the we to we we thing million machinery complete is need important before. expect manufacture capital Straw With $XX procure XXXX, our in investment equipment projects, in our approximately in to on ever system. In to going Smart now of investing proprietary primarily next-generation our everything more than

are that, for fiscal fiscal year uncertainty accurately our we pandemic turn financial with year XXXX for which very has a January The let's withdrawing which it business, measure on forecast short-term last company. guidance. difficult So results Therefore, today, to of injected X. we to the us reiterated COVID-XX makes guidance, XXXX the into

continuing when closely situation will the We to monitor we can. and are update you we

And completes overview. that financial the

it to Now I'll back turn Garry.

Garry Ridge

Thanks, Jay. from In materially on You outbreak call? heard impacted during China subsidiary summary, what us hear COVID-XX you by did was the quarter. that the second this our

you importantly, for slowly More China. returning things our in heard members that normal are tribe to

You heard continue volatility crisis. that our where we business expect regions the to disruption encounter to we global in the and operates health global will due

of envy You XX%. heard engagement that the score our organizations at many employee remains

You direct are transitioning Mexico. arrangement heard distributor a business that a we in to from model marketing

make You have sales e-commerce, heard year-to-date that and to that e-commerce we area digital the continue grown year. and progress outstanding in of last compared XX% to

line to balance our we to changes credit agreement significant You elected that drew rainy from of line make our this sheet. heard a to and down fund day recently bulletproof

cash to under capital to plan dividends. investors we share You suspending return in current continue are heard through preserve that buyback our our purchases to that we order

impact the due crisis. You to global the earnings we evolving heard fiscal our XXXX rapidly health of issued guidance year that withdrew previously

opportunity. that confident growth aspirations heard a our realistic we You remain are long-term

you of opportunity." share in from Remaining with my times for like Simon Sinek, friend, " makes quote way I'd closing, a In desperation to calm

pleased to us joining We you Thank the call to questions. Please be conference safe. for would your now stay open today.

Operator

Instructions]. [Operator

with Davidson. question Your Linda first D.A. comes Bolton-Weiser from

Linda Bolton-Weiser

that So March guess March previous most results. similar I was by struck was to comment I Steve's

other saying kind sales you're hard So we've not believe, suspension down. I guess that to all find significantly manufacturing flattish, of were in in given nonessential almost States, had the a that I that of United countries.

by we've just about us investors So a you give demand ask also, a more end color? little had lot us of of of a kind can your breakdown market. And

you all like think manufacturing, So of would be a how that? high much little end-market you automotive, demand. could is color give on Do how different much tech,

Garry Ridge

with I reflect hold Linda. on strategy. it able were to country Thanks, in And business being March. We multiple channel, pleased does really trade guess our up multiple

channels trade channels As high-level ask far view to key the I'll concerned, are give as a that we of in. just operate Steve

Steven Brass

Garry. Sure. Thanks,

Garry both Company trade of So WD-XX mean, are is as the by that diversified I advantages said, geographies. of channel we and one by big

in, and we terms channel, biggest the growth dollar is and as hardware, trade our customer one we're industry -- beauty on both not diversification. reliant. markets The overly the channel, well is but one And or no DIY operate So the as call, geography fast-growing -- a -- being so big an -- is the mentioned of also in of automotive, we the volume, percentage e-commerce, X.

And has one the those on no overbearing so of overall revenues. weight an channels trade

Linda Bolton-Weiser

that do mean, because seeing expect significant. quite you -- the that decline indicate you I in your anything So are was markets China end in

that's So the world the different the going just in is slower on rest is China? the in in your rest world is results? what the something Or it on impact seeing versus went COVID-XX regarding of just in it of

Garry Ridge

customers substantial after New give was that after to Chinese we I out inventory. color The go China on what on our due that you that, Linda. that is China straight kind a planned of to down Chinese -- take shipments a place. had happened to can were and to in book waits to order had customary, Year. themselves New We renew And in Year some till as

so we shipped And those hadn't would the if happened, orders. COVID have

an downturn it it that end inability China. was in wasn't sudden demand our issue, So the user caused to ship a

able weren't shutdown and had. ship the January didn't into -- XX China till and started outright was February, we well what to we through we around

to now. orders are those We ship starting

there's difference between why China. that's a So

channels the that a those home about improvement, albeit level. club, merchant, right mass of the world If we are at dominant you think functioning, in operate different operating, channels in grocery, most trade hardware, now, are trade

parking People home and a as well. the buying. lot buy improvement probably going full. So, drove XX% there I are past people store was WD-XX this product, my to morning local are

went in different X things between and U.S. China So, were what's there that the on happening

Linda Bolton-Weiser

good a That's Okay. explanation.

talk planning just launch it or launch? innovation I your are about going Are you July? that your think talking to can about So to you delay was were you June or major still innovation? you going you were to that

Garry Ridge

We are still going ahead.

X You're Smart Straw or generation. next Straw referring to Smart

will will to June. It work as on market generation the in total ahead architecture. continue ahead. range that also around Canada dress was to top in past, us full months blue yellow, launch product get world. out red new And no, we're continued the be in our rollout first of The Smart our And XX moving Specialist to from Straw with we're the of the it into we take brand steam and conversion it probably next will there but the trade

Linda Bolton-Weiser

just a wondering, margin? seems I is like Is that with issue. terms the margin, estimate, I an in be mix big It shift know, many then disappointing quite your I so, quarters, still what don't the least my Smart and which in relative almost is the toward people it issue idea Okay. the that gross to are in a issue. just that kind to think like continuing if mix gross higher-margin a seems to recurring And I'm was product. these was occurring? -- like Specialist, it finally, And And impacts Straw And of then of issue you guess at seems mix you're quarter. mentioned,

Garry Ridge

can. quarter of -- in touch shortfall this if issue it mix some give the was The to I'll it sales of in Jay, Okay. and China. I'll I

was you margin the into in We China. rest. have And issue. a Jay, that our higher for the sales I'll because pass the completely, gutter there gross on to fell

Jay Rembolt

direct of Thanks, happens there's a other a volumes -- channels. direct Yes. given margin -- in between through is shift our markets, shift the what those and other that on the that Yeah, any our in go the our was in Linda, have two period is the depending distribution lot Garry. is MD we markets --

our even markets as higher there's marketing So markets. then mixes margin between a And markets, our -- whole, see have a a have bit when direct MD between much lower markets, we our a quite mixes also margin. distributor

is of based So Europe sophistication the for distribution the in and higher-margin example, much in channel the just market. than U.S. there's the of the size there on

Linda Bolton-Weiser

Okay. sneak last And one. one can in I just

at the Going not I back in last period, in 'XX, look an if I'm back sales results think it recession your decline, 'XX to financial X% mistaken. was the

a decline. be guidance, I assuming have decline to a or sales to idea an you it know like that, conservative But don't want withdrawing into put like would you you're a we give X% guidance. your something recession? So go bad for something did analysts

Garry Ridge

to we be Linda, was get I XXXX to the of right would in mentioned U.S. that now, we primarily devalued until through get for It of was you the XX%, strengthening I what -- decline some against think, now. because the And dollar for through it pound. irresponsible have the future and think XXXX. us try predict the

to a we'll think again. have idea world ramp the better I once starts up

in the but So our -- sideways. in XXXX, went U.S., sales

Our Right, exchange went from down, rate in the the Jay? was that but change because consolidated pound. revenue of British the

Jay Rembolt

we Yes. EMEA, shortfall U.S. foreign from currency, wiped in were in growth but out the the had because in or Actually, currency -- in-source actually, exchange. We was local of we we currency headwind it a had

Operator

[Operator Instructions].

Our line next question of the comes Rizzo from Daniel Jefferies. with

Daniel Rizzo

got I the off cut end at prepared of remarks. the

largely me that has point? did but this dividend is that this indicate at intact you that you're already forgive considering not So the said if cutting

Garry Ridge

let answer I'll that. Jay

Jay Rembolt

dividend the we No. me, dividend, a of will we Yes, month. a The we declared issue dividend. at excuse a end and the did Board -- issue

Daniel Rizzo

I'm the the But in of going second Right. year, saying outlook. forward half given the uncertain

Jay Rembolt

at pay policy I hasn't to on -- really We changed, that mean a a our look we earnings, quarterly first and that make and our basis. continues. of those XX% strategy dividend decisions dividend is out

Daniel Rizzo

and wondering, your still improvement then, construction, of were and that that's the similar your seeing would I I I are Okay. channels if given on industrial home and or Garry, relatively the you activity things end wondering I channels still seeing local you're in through and assume then was you're there, those commercial just the going seeing industrial channel And markets. auto channels -- intact those distribution But distribution the both in activity, declines lack that significant commercial with mentioned with things market. assume was activity,

Garry Ridge

Daniel, we're construction not seeing essential as service. has at me designated it an but is too in -- yet. this, It's been probably let say California, least early,

The auto areas, drive out, consumption, out, builders I are side, are open. in I fixing stores people, cars, the auto trucks zones, in they're the oil all change I that's don't industry the repair As operating. O'Reillys, think around, people see manufacturing huge part but brake itself, still the auto

stuff getting done is So time. this at

Daniel Rizzo

actually That's Okay. question. helpful. then And final very

You to I CapEx, guys to at kind million you it going starting elevated back more be that year, that roll continue things a indicated to $XX of assume this think, am level? year. right Or at going We stay towards -- it I traditional is level to out? next is this goes the model as

Garry Ridge

Jay?

Jay Rembolt

other We a Smart very we have would capital. that the project it historical lot don't expect around are complete begging close to our innovation any go to of significant for next-generation back with we investments to levels. Straw, Once the

Daniel Rizzo

year? Is that project expected to be completed this

Jay Rembolt

'XX. will be be 'XX, some It carryover there will FY -- into

Operator

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

WD-40 (WDFC) 9 Apr 202020 Q2 Earnings call transcript