WD40 Company (WDFC, Financial) filed Quarterly Report for the period ended 2009-05-31.
WD-40 Company sells a petroleum-based product known as ``WD-40.`` WD-40 is a multi-purpose product which acts as a lubricant rust preventative penetrant cleaner and moisture displacer. They also sell the 3-IN-ONE Oil. 3-IN-ONE Oil is a lower cost general purpose lubricant that is useful when precise applications of a lubricant are needed. WD40 Company has a market cap of $481 million; its shares were traded at around $29.28 with a P/E ratio of 19.1 and P/S ratio of 1.6. The dividend yield of WD40 Company stocks is 3.4%. WD40 Company had an annual average earning growth of 3% over the past 10 years.
Note that our gross profits may not be comparable to those of other reporting entities, since some entities include all costs related to distribution of their products in cost of products sold, whereas we exclude the portion associated with amounts paid to third parties for distribution to our customers from our contract packagers and include these costs in selling, general and administrative expenses. These costs totaled $3.1 million and $4.9 million for the three months ended May 31, 2009 and 2008, respectively.
Selling, general and administrative (SG&A) expenses for the third quarter of fiscal year 2009 decreased to $18.4 million, or 26.8% of net sales, from $21.4 million, or 26.1% of net sales, for the corresponding period of the prior fiscal year. The decrease in SG&A expenses was largely attributable to the impact of foreign currency translation and to lower freight costs. Changes in foreign currency exchange rates compared to the corresponding period of the prior fiscal year decreased SG&A expenses by $2.6 million for the three months ended May 31, 2009. Thus, on a constant currency basis, SG&A expenses for the third quarter of fiscal year 2009 would have been $21.0 million for a decrease of $0.4 million, or 2%, from the corresponding period of the prior fiscal year. Freight costs decreased $1.3 million due to reduced fuel costs, improved shipping efficiencies and lower sales revenue. Other miscellaneous expenses, including stock-based compensation, professional services costs and bad debt expense, decreased by $0.4 million. Partially offsetting these decreases was an increase in employee-related costs, which include salaries, profit sharing and other fringe benefits, of $1.3 million due to annual compensation increases and higher staffing levels primarily to support the growth of international operations.
We continued our research and development investment in support of our focus on innovation and renovation. Research and development costs for the three months ended May 31, 2009 and 2008 were $0.9 million and $0
Read the The complete ReportWDFC is in the portfolios of NWQ Managers of NWQ Investment Management Co.
WD-40 Company sells a petroleum-based product known as ``WD-40.`` WD-40 is a multi-purpose product which acts as a lubricant rust preventative penetrant cleaner and moisture displacer. They also sell the 3-IN-ONE Oil. 3-IN-ONE Oil is a lower cost general purpose lubricant that is useful when precise applications of a lubricant are needed. WD40 Company has a market cap of $481 million; its shares were traded at around $29.28 with a P/E ratio of 19.1 and P/S ratio of 1.6. The dividend yield of WD40 Company stocks is 3.4%. WD40 Company had an annual average earning growth of 3% over the past 10 years.
Highlight of Business Operations:
Gross profit was $35.0 million, or 50.9% of net sales, for the three months ended May 31, 2009 compared to $38.2 million, or 46.5% of net sales, for the corresponding period of the prior fiscal year. The increase in gross profit as a percentage of net sales was due primarily to worldwide price increases implemented during the first quarter of fiscal year 2009 which added 5.3 percentage points to our gross profit percentage for the third quarter of fiscal year 2009.Note that our gross profits may not be comparable to those of other reporting entities, since some entities include all costs related to distribution of their products in cost of products sold, whereas we exclude the portion associated with amounts paid to third parties for distribution to our customers from our contract packagers and include these costs in selling, general and administrative expenses. These costs totaled $3.1 million and $4.9 million for the three months ended May 31, 2009 and 2008, respectively.
Selling, general and administrative (SG&A) expenses for the third quarter of fiscal year 2009 decreased to $18.4 million, or 26.8% of net sales, from $21.4 million, or 26.1% of net sales, for the corresponding period of the prior fiscal year. The decrease in SG&A expenses was largely attributable to the impact of foreign currency translation and to lower freight costs. Changes in foreign currency exchange rates compared to the corresponding period of the prior fiscal year decreased SG&A expenses by $2.6 million for the three months ended May 31, 2009. Thus, on a constant currency basis, SG&A expenses for the third quarter of fiscal year 2009 would have been $21.0 million for a decrease of $0.4 million, or 2%, from the corresponding period of the prior fiscal year. Freight costs decreased $1.3 million due to reduced fuel costs, improved shipping efficiencies and lower sales revenue. Other miscellaneous expenses, including stock-based compensation, professional services costs and bad debt expense, decreased by $0.4 million. Partially offsetting these decreases was an increase in employee-related costs, which include salaries, profit sharing and other fringe benefits, of $1.3 million due to annual compensation increases and higher staffing levels primarily to support the growth of international operations.
We continued our research and development investment in support of our focus on innovation and renovation. Research and development costs for the three months ended May 31, 2009 and 2008 were $0.9 million and $0
Read the The complete ReportWDFC is in the portfolios of NWQ Managers of NWQ Investment Management Co.
