~ Global net sales of maintenance products grew 11 percent compared to prior year fiscal period ~
~ Board of Directors approves new 75.0 million share buyback plan to replace expiring plan ~
Net income for the third quarter was $16.1 million, an increase of 12 percent compared to the prior year fiscal quarter. Year-to-date net income was $43.6 million, an increase of 13 percent from the prior year fiscal period.
Diluted earnings per share were $1.15 in the third quarter, compared to $1.02 per share for the prior year fiscal quarter. Year-to-date diluted earnings per share were $3.10 compared to $2.71 in the prior year fiscal period.
"We had a solid quarter and are pleased that we achieved both sales and earnings results which reflect new record highs for the Company," said Garry Ridge, WD-40 Companys president and chief executive officer. "Our maintenance products delivered solid sales increases in the third quarter including 10 percent growth of WD-40 Multi-Use Product and 16 percent growth of WD-40 Specialist. Though fluctuating foreign currency exchange rates favorably impacted our sales results in the current quarter, we still saw a currency adjusted sales growth rate of 5 percent period-over-period.
"Unfortunately we are continuing to see the impact of higher commodity prices which have begun to deteriorate our gross margins in all three of our operating segments. To combat this margin pressure we have made some price increases to ensure our gross margin remains in-line with our 55/30/25 business model.
"Finally, we continue to return capital to our investors through regular dividends and share buybacks. Over the last 2 years alone we have returned over $100 million in capital to our shareholders in this manner. In order to continue returning capital to shareholders through share buybacks, last month our Board of Directors approved a new $75.0 million share buyback plan to replace our expiring plan," concluded Ridge.
WD-40 Company - WD-40 Company Reports Third Quarter 2018 Financial Results
