San Diego-based WD-40 Co. (Nasdaq: WDFC) has posted significant increases in both net sales and income for its first fiscal quarter of 2013 -- marking its best quarter in company history.
The lubricant manufacturer posted $10.9 million in net income on $95.3 million in net sales for the first quarter ended Nov. 30, 2012. The net income represented a 61 percent increase from the like quarter a year earlier and the net sales were a 12 percent increase from the same period the prior year.
First-quarter multipurpose maintenance products sales, which include WD-40, 3-In-One and Blue Works brands were $81.8 million, up 15 percent from the prior year fiscal quarter.
The multipurpose maintenance products are considered a primary focus for the company. Home care and cleaning products sales, which include all other brands, were $13.5 million for the first quarter, down 4 percent from the prior year first quarter. The U.S. home care and cleaning products divisions are providing healthy profit returns to the company but are becoming a smaller part of the business as the multipurpose maintenance products sales grow.
America’s segment sales in the first quarter were $45.4 million, up 12 percent compared to the first quarter of the prior fiscal year. Europe segment sales in the first quarter were $35.2 million, up 17 percent from the prior year fiscal quarter. Asia-Pacific segment sales were $14.7 million in the first quarter, up 3 percent from the prior year fiscal quarter.
"We are pleased with our solid revenue growth during the first quarter, particularly in our multipurpose maintenance products, and because we were able to hit our goal of a 50 percent gross margin, we achieved solid growth in our net income as well," said Garry Ridge, WD-40 president and CEO in a statement, adding that it was the best quarter ever.
On Jan. 7, the company amended its unsecured credit agreement with Bank of America, to extend the maturity date for five years and to increase the amount available from $75.0 million to $125.0 million.
"The amended facility gives us additional access to capital to support the continued growth of our business, our share buyback activity and other general business needs," Ridge said.
WD-40’s stock price ended the day at $47.77 -- up 64 cents or 1.36 percent on the day. The stock has ranged from $39.51 to $54.42 during the past 52 weeks.