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Feb 29, 2020
WD-40 Q2 2020 Earnings Report
WD-40 Company reported a decline in net sales and net income for the second quarter of fiscal year 2020, primarily due to disruptions in the Asia-Pacific region caused by the COVID-19 outbreak, while taking steps to strengthen its balance sheet amid macroeconomic uncertainty.
Key Takeaways
WD-40 Company's second-quarter net sales decreased by 1% to $100.0 million, primarily due to a 31% decline in sales within the Asia-Pacific segment. Net income also decreased by 10% to $14.3 million, with diluted earnings per share at $1.04. The company has withdrawn its fiscal year 2020 earnings guidance due to the uncertainty caused by the COVID-19 health crisis.
Total net sales for the second quarter were $100.0 million, a decrease of 1 percent compared to the prior year fiscal quarter.
Net income for the second quarter was $14.3 million, a decrease of 10 percent compared to the prior year fiscal quarter.
Diluted earnings per share were $1.04 in the second quarter, compared to $1.14 per share for the prior year fiscal quarter.
Management has withdrawn previously issued full fiscal year 2020 earnings guidance due to the rapidly evolving situation and impact of the COVID-19 health crisis.
Revenue by Geographic Location
Forward Guidance
WD-40 Company withdrew its fiscal year 2020 guidance due to the rapidly evolving situation associated with the global health crisis caused by COVID-19 and its impact on the global economy.
Positive Outlook
- The company's financial position and liquidity remain strong.
- Efficient business model
- Recent steps have been taken to strengthen the balance sheet
- Positioned to manage the business through this crisis
- Amended revolving credit agreement
Challenges Ahead
- The current health crisis has injected a measure of uncertainly into our business
- Difficult to accurately forecast short-term financial results
- Dealing with an unprecedented and extremely fluid situation
- Withdrawal of fiscal year 2020 guidance
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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