WD-40 Company (Nasdaq: WDFC), the San Diego, California based manufacturer and global marketing organization - in more than 176 countries and territories worldwide - of multi-purpose maintenance products manufacturer under the WD-40 and 3-in-One brands, today reported financial results for its third fiscal quarter (Q3) ended May 31, 2017 as follows:

• Total net sales: UP 2% to $98.2 million compared to the prior year fiscal quarter. Year-to-date total net sales were $283.9 million, an increase of $0.4 million compared to the prior year fiscal period.
  • (Conversion of the Company's foreign subsidiary results to U.S. dollars had an unfavorable impact on sales for the current quarter and year-to-date. On a constant currency basis total net sales would have been $102.9 million for the third quarter (UP 4.8%) and $301.0 million (UP 6.0%) year-to-date.)
• Net income: UP 14% to $14.4 million compared to the prior year fiscal quarter.
  • Year-to-date net income was $38.6 million, an increase of $0.2 million from the prior year fiscal period.
• Diluted earnings per share: UP 15.9% to $1.02 compared to $0.88 per share for the prior year fiscal quarter.
  • Year-to-date diluted earnings per share were UP to $2.71 compared to $2.65 in the prior year fiscal period.
• Gross margin: DOWN to 55.3% compared to 56.8% in the prior year fiscal quarter.
  • Year-to-date gross margin was UP to 56.3% compared to 55.9% in the prior year fiscal period.
• Selling, general and administrative expenses: DOWN 6% when compared to the prior year fiscal quarter
  • Year-to-date Selling, general and administrative expenses were UP 1% compared to the prior year fiscal period.
• Advertising and sales promotion expenses: DOWN 13% to $5.4 million when compared to the prior year fiscal quarter.
  • Year-to-date advertising and sales promotion expenses were DOWN 10% to $15.3 million compared to the prior year fiscal period.

Updated Fiscal Year 2017 Guidance
The Company updated its revenue guidance for fiscal year 2017 (assumes no future acquisitions or divestitures and assumes that foreign currency exchange rates and crude oil prices will remain close to current levels for the remainder of fiscal year 2017) as follows:

• Net sales: projected 0-2% growth to be between $382 million and $388 million.
• Gross margin: projected to be above 56%. 
• Advertising and promotion investments: projected to be below 6% of net sales. 
• Net income: projected to be between $51.3 million and $52.3 million.
• Diluted earnings per share: expected to be between $3.64 and $3.71 based on an estimated 14.1 million weighted average shares outstanding.

Dividend and Share Repurchase
As previously announced, WD-40 Company's board of directors declared on Tuesday, June 20, 2017 a quarterly dividend of $0.49 per share payable July 31, 2017 to stockholders of record at the close of business on July 21, 2017.

On June 21, 2016, the Company's Board of Directors approved a share buy-back plan, effective on September 1, 2016, to acquire up to $75.0 million of its outstanding shares through August 31, 2018 and, during the period from September 1, 2016 through May 31, 2017, the Company has repurchased  244,973 shares at a total cost of $26.2 million under this $75.0 million plan.

Garry Ridge, WD-40 Company's president and chief executive officer, said in the press release that:

"We had a solid quarter and are pleased that we achieved both sales and earnings results which reflect new record highs for the Company.

Fluctuating foreign currency exchange rates continue to obscure our sales results but if you remove their impact our consolidated sales would have increased by about 4% over the prior year fiscal third quarter.

Overall, while we continue to see fluctuations in certain markets quarter to quarter, our long-term growth plans remain stable."