Grand Rapids-based payroll software firm acquired by Scottish business services company

Grand Rapids-based payroll software firm acquired by Scottish business services company

GRAND RAPIDS — Payroll software business Dominion Programs Inc. has been obtained by a personal fairness-backed business enterprise solutions company in Scotland.&#13

Dominion and AAB have partnered for the previous 5 a long time, with Grand Rapids-dependent Dominion supporting AAB’s worldwide payroll progress designs. Dominion will now work as AAB Payroll Inc., successfully right away, and will be led by Dominion President Chris Andree.



Chris Andree.
LINKEDIN

“It’s exciting to be a aspect of the AAB journey, specially in regard to firmly developing and rising payroll and advisory operations in the United States,” Andree reported in a statement. “Having labored straight with the Payroll and Work Taxes staff over the previous five decades, I have witnessed the immediate expansion in equally scope of assistance and geography very first-hand which undoubtedly is underpinned by a people today initially society and motivation to customer service.”&#13

Conditions of the offer have been undisclosed.&#13

Dominion Methods gives totally integrated, cloud-based mostly software with customizable payroll and human means solutions. It supports a array of industries, together with agriculture, motor vehicle dealerships, wellbeing treatment and foods and beverage.&#13

Previously recognized as Anderson Anderson & Brown and a supplier of vital organization expert services this sort of as accounting, auditing and tax assistance via tech-enabled platforms, AAB has professional quick advancement considering the fact that securing an expenditure from London, U.K.-dependent August Equity in October 2021. Dominion was AAB’s seventh acquisition in the past 16 months.&#13

The deal expands AAB’s get to and is the company’s first acquisition in the U.S., according to a report in Scottish newspaper Push and Journal, which notes AAB’s payroll and world wide mobility team has additional than 100 employees at workplaces in the U.K., the U.S. and Eire. AAB reportedly has yearly earnings of about 65 million lbs ., or about $77.6 million.

AAB Partner and U.S. Tax Exercise Lead Douglas Michael claimed the business is “delighted” to deliver on Dominion.&#13

“We have viewed an growing range of organizations growing to the U.S. above the previous couple several years from the U.K. from start off-ups to recognized organizations demanding our specialist aid in U.S. payroll,” Michael mentioned in a assertion. “Remaining compliant with cross-border payroll has hardly ever been much more complicated and our enhanced group will be ready to assistance any enterprise or individual working in the US.”

XCPCNL Business Services Awarded $2M Purchase Order from Large Tech Company

XCPCNL Business Services Awarded $2M Purchase Order from Large Tech Company

Charlotte, North Carolina –Information Immediate– XCPCNL Company Expert services Company

McapMediaWire — XCPCNL Business enterprise Expert services Company (OTC: XCPL), a undertaking growth small business that leverages expertise, skill, and practical experience in the customer goods marketplace, is happy to announce, it has been awarded a acquire order in the volume of $2 million from a substantial tech organization.

The scope of perform for the invest in get includes articles creation for how ads function, digital fraud, and monitoring narrative, IoT and app retail outlet rules, and growth of purchaser advocate and developer network on coverage engagement, which includes gatherings. This is a sizeable milestone for XCPCNL Business Expert services, and the company is enthusiastic to embark on this challenge.

CEO Tim Matthews expressed his optimism and enjoyment about the order order, stating, “We are thrilled to have been awarded this invest in get, and we glance forward to operating with our partners to supply extraordinary success. This is a testomony to the tough operate and perseverance of our staff, and we are self-confident that our skills in SaaS and CaaS platforms will enable us to supply large-top quality remedies to our companions.”

XCPCNL Company Expert services is dedicated to partnering with visionary entrepreneurs and furnishing them with accessibility to marketplaces and customers. The company’s platforms are created on a strategic network of innovation ecosystem, corporate, and university relationships that enable their associates tell and speed up go-to-market approaches.

For legality purposes, the identify of this tech firm can not be outlined.

XCPCNL Enterprise Services Company (OTC: XCPL) encourages shareholders to visit their company Twitter account at https://twitter.com/RealXCPCNL

Ahead-Wanting Statements Disclaimer:

This press release may well include things like, and oral statements created from time to time by representatives of the Enterprise might have, “ahead-looking statements” inside the indicating of Portion 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Trade Act of 1934, as amended. Statements concerning achievable organization mixtures and the financing thereof and linked issues, as effectively as all other statements other than statements of historical truth integrated in this press launch, are ahead-looking statements. When applied in this press release, words and phrases such as “foresee,” “think,” “keep on,” “could,” “estimate,” “be expecting,” “intend,” “could,” “may well,” “plan,” “feasible,” “probable,” “predict,” “venture,” “really should,” “would” and similar expressions, as they relate to our management group or us, establish forward-searching statements. These kinds of forward-searching statements are based on management’s beliefs, as effectively as assumptions built by, and facts currently offered to, the Firm’s administration. True effects could vary materially from individuals contemplated by the ahead-on the lookout statements as a final result of particular factors detailed in the Firm’s filing with the Around-the-Counter Industry (“OTC”). All subsequent prepared or forward-searching oral statements attributable to individuals or us performing on our behalf are qualified in their entirety by this paragraph. Forward-searching statements are topic to various conditions, lots of of which are outside of the regulate of the Company. The Corporation undertakes no obligation to update these statements for revisions or alterations following the day of this release, apart from as needed by regulation.

About XCPCNL

Charlotte, NC-primarily based XCPCNL Company Expert services is a venture advancement business enterprise that leverages its know-how, competencies, and working experience in the shopper goods business. Our primary mission is to supply marketing, technologies, and other organization products and services to fast-growing buyer product firms and massive-box retailers. XCPCNL is a minority-owned and controlled business.

To understand much more about our businesses, companies, and chances, please get in touch with info@xcpcnl.com

To find out additional about XPCNL, go to www.xcpcnl.com.

For Inquiries:

E-mail: ir@xcpcnl.com

Speak to Facts

XCPCNL Business enterprise Solutions Corporation

ir@xcpcnl.com

Company Site

http://www.xcpcnl.com/

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XCPCNL Business Services Awarded $2M from Global Major Tech Company

XCPCNL Business Services Awarded $2M from Global Major Tech Company

CHARLOTTE, NC / ACCESSWIRE / February 23, 2023 / XCPCNL Enterprise Services Corporation (OTC Pink:XCPL), a enterprise improvement business that leverages awareness, skill, and expertise in the client goods field, is pleased to announce, it has been awarded a invest in order in the volume of $2 million from a huge tech enterprise.

The scope of get the job done for the acquire purchase contains material development for how adverts function, digital fraud, and monitoring narrative, IoT and app retail outlet principles, and enlargement of client advocate and developer network on coverage engagement, together with gatherings. This is a important milestone for XCPCNL Enterprise Providers, and the business is psyched to embark on this venture.

CEO Tim Matthews expressed his optimism and enjoyment about the purchase order, stating, “We are thrilled to have been awarded this buy order, and we glance forward to working with our partners to supply remarkable final results. This is a testomony to the hard function and devotion of our workforce, and we are confident that our expertise in SaaS and CaaS platforms will enable us to supply high-high quality methods to our partners.”

XCPCNL Enterprise Expert services is committed to partnering with visionary business people and supplying them with access to markets and consumers. The firm’s platforms are constructed on a strategic network of innovation ecosystem, company, and college interactions that assist their associates inform and accelerate go-to-current market methods.

For legality purposes, the title of this tech business simply cannot be described.

XCPCNL Organization Providers Corporation (OTC Pink: XCPL) encourages shareholders to take a look at their corporate Twitter account at https://twitter.com/RealXCPCNL.

Forward-Seeking Statements Disclaimer:

This press launch may perhaps contain, and oral statements manufactured from time to time by associates of the Corporation could involve “ahead-looking statements” within the this means of Portion 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Trade Act of 1934, as amended. Statements concerning possible business enterprise mixtures and the financing thereof, and associated matters, as perfectly as all other statements other than statements of historical truth involved in this push release, are forward-wanting statements. When made use of in this press release, words these types of as “anticipate,” “believe that,” “go on,” “could,” “estimate,” “hope,” “intend,” “may perhaps,” “may well,” “approach,” “achievable,” “potential,” “predict,” “project,” “ought to,” “would” and comparable expressions, as they relate to us or our management group, recognize forward-seeking statements. These kinds of forward-hunting statements are dependent on the beliefs of administration, as effectively as assumptions manufactured by, and details now out there to, the Firm’s administration. Precise effects could vary materially from people contemplated by the forward-searching statements as a end result of sure factors in-depth in the Firm’s filing with the In excess of the Counter Marketplace (“OTC”). All subsequent written or oral ahead-seeking statements attributable to us or folks performing on our behalf are certified in their entirety by this paragraph. Ahead-hunting statements are topic to many circumstances, numerous of which are beyond the control of the Organization. The Firm undertakes no obligation to update these statements for revisions or changes immediately after the date of this release, besides as demanded by regulation.

About XCPCNL:

Charlotte, NC-dependent XCPCNL Organization Companies is a undertaking growth small business that leverages its awareness, competencies, and working experience in the shopper solutions market. Our most important mission is to deliver advertising, technologies, and other organization companies to quick-developing buyer item organizations and significant-box shops. XCPCNL is a minority-owned and controlled agency.

To study more about our businesses, solutions, and prospects, be sure to speak to facts@xcpcnl.com.

To learn additional about XPCNL, pay a visit to www.xcpcnl.com.

For Inquiries:

Email: ir@xcpcnl.com

Supply: XCPCNL Organization Companies Corp.

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IBM layoffs: Company announces 3,900 job cuts, SAP nearly 3,000

IBM layoffs: Company announces 3,900 job cuts, SAP nearly 3,000


Hong Kong/London
CNN
 — 

IBM and SAP are the most up-to-date tech companies to slash hundreds of employment, as they reorganize enterprises and gains appear underneath force from a slowing world-wide financial state.

IBM

(IBM)
announced the cuts Wednesday, indicating they were being related to the earlier introduced spinoff and sale of two business models. Some 3,900 positions, or 1.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its worldwide workforce, are expected to go. The shift will expense IBM

(IBM)
about $300 million this quarter, a spokesperson confirmed.

SAP

(SAP)
, Europe’s major program corporation, will lay off 2.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its international workforce of 112,000, or around 2,800 workforce, according to an earnings report released Thursday. The restructuring will charge involving €250 million ($272 million) and €300 million ($381 million) the company’s shares were being down 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in Frankfurt.

In a live streamed presentation to reporters, SAP CEO Christian Klein explained that the restructuring was “targeted” and would allow for the business to devote in the parts “where it seriously issues for SAP to be competitive in the long term,” particularly its cloud small business.

The information comes as other key tech organizations downsize their workforces all around the planet in response to the gloomy international financial outlook and waning need for some digital expert services next the pandemic. Last 7 days, Google

(GOOGL)
guardian Alphabet and Microsoft

(MSFT)
each introduced layoffs of 12,000 and 10,000 employees, respectively.

That followed similar ideas outlined by Amazon

(AMZN)
and Salesforce to drop hundreds of careers, with a lot more than 18,000 staff members influenced at the e-commerce giant alone. The US tech sector, which went on a hiring spree throughout the pandemic, announced 97,171 career cuts in 2022, a 649{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase on the earlier year, in accordance to consulting organization Challenger, Gray & Christmas.

An IBM spokesperson advised CNN on Wednesday that the company’s cuts have been linked entirely to the reorganization of the two business units influenced, “not an motion dependent on 2022 general performance or 2023 expectations.”

The units impacted are Kyndryl, an IT infrastructure providers small business that was officially separated from IBM in November, and IBM’s health care analytics enterprise, which an expense organization is in the course of action of buying.

The New York-based mostly company also reported blended earnings Wednesday, with profits coming in somewhat greater than anticipated but functioning gain and absolutely free dollars circulation reduce than projected.

IBM shares had been 2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} reduced in premarket buying and selling in New York.

Requested about the outlook for demand from customers for software program from its business prospects this 12 months, IBM CEO Arvind Krishna mentioned that most of the company’s purchasers appeared confident they would “emerge more powerful.”

“We’re looking at them double down,” inspite of “different headwinds in 2023,” he explained to analysts on a convention phone.

Krishna also pointed out that though other tech organizations could have noted additional downbeat forecasts not too long ago, “the reason that we are remaining in this optimistic body of thoughts [is], we have no consumer enterprise.”

“So I believe, as a result, we could possibly be viewing a tiny bit distinctive subset of the economic climate than people who could have a big immediate exposure to a buyer enterprise,” he added.

SAP described a 7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} 12 months-on-calendar year decline in operating financial gain in 2022, as it moved to end operations in Russia and Belarus, and collected a lot less earnings from computer software licenses. It mentioned that increased expense into investigation and enhancement, gross sales and advertising also impacted functionality.

WD-40 Company Reports First Quarter 2023 Financial Results

WD-40 Company Reports First Quarter 2023 Financial Results

SAN DIEGO–(BUSINESS WIRE)–WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its first fiscal quarter ended November 30, 2022.

Financial Highlights and Summary

  • Total net sales for the first quarter were $124.9 million, a decrease of 7 percent compared to the prior year fiscal quarter.
  • Translation of the Company’s foreign subsidiary results from their functional currencies to U.S. dollars had an unfavorable impact on sales for the first quarter. On a constant currency basis, total net sales would have been $134.4 million for the first quarter.
  • Net income for the first quarter was $14.0 million, a decrease of 25 percent from the prior year fiscal quarter.
  • Diluted earnings per share were $1.02 compared to $1.34 in the prior year fiscal quarter.
  • Gross margin percentage was 51.4 percent compared to 50.8 percent in the prior year fiscal quarter.
  • Selling, general and administrative expenses were up 4 percent in the first quarter to $40.0 million compared to the prior year fiscal quarter.
  • Advertising and sales promotion expenses were down 5 percent to $5.3 million compared to the prior year fiscal quarter.

“Today we are happy to report that in the first quarter gross margin improved sequentially by 400 basis points compared to the fourth quarter of fiscal year 2022,” said Steve Brass, WD-40 Company’s president and chief executive officer. “This is evidencing the positive impact of the gross margin restoration plan we put into place to combat the current inflationary environment.”

“While we saw topline growth in our Asia-Pacific and Americas segments, our EMEA segment reported sales that were softer than we would like to see. In EMEA, we’ve experienced significant headwinds from fluctuating currency exchange rates, a lower level of customer orders, weaker economic conditions, and a reduction in sales linked to our decision to suspend sales in Russia in 2022.”

“Though sales volumes were soft in some regions due to disruptions in the market linked to the pricing actions we recently executed, underlying volumes remain in line with our expectations. We shared with investors last quarter that we expected much of our topline growth in fiscal year 2023 would be weighted toward the second half of the fiscal year. We expect volume performance to improve in the second half of the fiscal year as price-related disruptions abate, and accordingly, today we are reiterating our guidance for the full fiscal year,” Brass concluded.

Net Sales by Segment (in thousands):

 

Three Months Ended November 30,

 

2022

 

2021

 

Change

Americas

$

58,014

 

$

56,288

 

 

3

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

EMEA

 

40,772

 

 

 

57,555

 

 

 

(29

){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Asia-Pacific

 

26,107

 

 

 

20,903

 

 

 

25

{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Total

$

124,893

 

 

$

134,746

 

 

 

(7

){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

  • Net sales by segment as a percent of total net sales for the first quarter were as follows: for the Americas, 46 percent; for EMEA, 33 percent; for Asia-Pacific, 21 percent.
  • Net sales in the Americas increased 3 percent in the first quarter due primarily to higher sales of maintenance products in the United States, which increased 15 percent compared to the prior year fiscal quarter. Higher sales of maintenance products in the United States were primarily driven by strong sales of WD-40® Multi-Use Product, WD-40 Specialist®, and 3-IN-ONE® due to the impact of price increases, as well as increased production capacity, and improved availability as our supply chain continues to strengthen. These increases were significantly offset by a lower level of customer orders and promotional programs as customers adjust to the price increases, which resulted in decreased sales volumes. In Canada, sales remained constant period over period. Higher sales in the United States were mostly offset by lower sales of WD-40® Multi-Use Product in Latin America. Sales of maintenance products were down 31 percent in Latin America compared to the prior year fiscal quarter due primarily to the timing of marketing distributor orders from period to period.
  • Net sales in EMEA decreased 29 percent in the first quarter due to lower sales of maintenance products in both the EMEA direct and distributor markets, which decreased 22 percent and 43 percent, respectively. Changes in foreign currency exchange rates had an unfavorable impact on sales for the EMEA segment in the first quarter. On a constant currency basis, EMEA sales for the first quarter would have decreased by 15 percent compared to the prior fiscal year quarter. Lower sales of maintenance products in the EMEA direct markets were also due to a lower level of customer orders partially offset by the favorable impact of price increases. In addition, lower sales were due to reduced demand driven by weaker markets and economic conditions. Lower sales of maintenance products in the EMEA distributor markets were primarily attributable to the suspension in sales of our products to our marketing distributor customers in Russia and Belarus in March of 2022.
  • Net sales in Asia-Pacific increased 25 percent in the first quarter due to higher sales of maintenance products in the Asia-Pacific distributor markets and China, which increased 41 percent and 22 percent, respectively. In the Asia-Pacific distributor markets, higher sales of maintenance products were primarily attributed to successful promotional programs and the easing of COVID-19 lockdown measures in the region. Higher sales of maintenance products in China were primarily due to successful promotional programs as well as the timing of customer orders. In Australia, sales remained constant period over period. Changes in foreign currency exchange rates had an unfavorable impact on sales for the Asia-Pacific segment. On a constant currency basis, Asia-Pacific sales would have increased by 31 percent compared to the prior year fiscal quarter.

Net Sales by Product Group (in thousands):

 

Three Months Ended November 30,

 

2022

 

2021

 

Change

Maintenance products

$

116,312

 

$

126,030

 

 

(8

){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Homecare and cleaning products

 

8,581

 

 

 

8,716

 

 

 

(2

){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Total

$

124,893

 

 

$

134,746

 

 

 

(7

){ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

  • Net sales of maintenance products, which are considered the primary growth focus for the Company, decreased 8 percent in the first quarter when compared to the prior year fiscal quarter. This decrease was primarily due to lower sales of WD-40® Multi-Use Product, which decreased 12 percent compared to the prior fiscal year quarter. This decline was driven by lower sales volumes linked to recent pricing actions which resulted in a lower level of customer orders and promotional programs. Sales declines were also due to unfavorable changes in foreign currency exchanges rates and weaker economic conditions in some regions. These sales declines were partially offset by the sales price increases implemented over the last twelve months.
  • Net sales of homecare and cleaning products decreased 2 percent in the first quarter compared to the prior year fiscal quarter. The homecare and cleaning products, particularly those in the United States, are considered harvest brands providing healthy profit returns to the Company and are becoming a smaller part of the business as net sales of maintenance products grow in alignment with the Company’s strategic initiatives.

Dividend and Share Repurchase Update

As previously announced, WD-40 Company’s board of directors declared on Tuesday, December 13, 2022, a quarterly dividend of $0.83 per share reflecting an increase of more than 6 percent compared to the previous quarter’s dividend. The quarterly dividend is payable on January 31, 2023 to stockholders of record at the close of business on January 13, 2023.

On October 12, 2021, the Company’s board of directors approved a share buy-back plan that became effective on November 1, 2021. Under the plan, the Company is authorized to acquire up to $75.0 million of its outstanding shares through August 31, 2023. The timing and amount of repurchases will be based on terms and conditions acceptable to the Company and in compliance with applicable laws and regulations. During the period from November 1, 2021 through November 30, 2022, the Company repurchased 160,982 shares at a total cost of $33.2 million under this $75.0 million plan. During the first quarter, the Company repurchased 22,420 shares at a total cost of $4.1 million under this $75.0 million plan.

Reiterated Fiscal Year 2023 Guidance

The Company reiterated the following guidance for fiscal year 2023:

  • Net sales growth is projected to be between 5 and 10 percent with net sales expected to be between $545 million and $570 million.
  • Gross margin percentage for the full year is expected to be between 51 and 53 percent.
  • Advertising and promotion investments are projected to be between 5.0 and 6.0 percent of net sales.
  • The provision for income tax is expected to be around 22 percent.
  • Net income is projected to be between $69.0 million and $71.0 million.
  • Diluted earnings per share is expected to be between $5.09 and $5.24 based on an estimated 13.6 million weighted average shares outstanding.

This guidance is expressed in good faith and is based on management’s current view of anticipated results. Net sales guidance was calculated using recent foreign currency exchange rates and reflects currency headwinds of approximately 5 percent. This guidance does not include any future acquisitions or divestitures. Unanticipated inflationary headwinds, COVID-19 related impact, and other unforeseen events may further affect the Company’s financial results.

Webcast Information

As previously announced, WD-40 Company management will host a live webcast at approximately 5:00 p.m. ET / 2:00 p.m. PT today to discuss these results. Other forward-looking and material information may also be discussed during this call. Please visit http://investor.wd40company.com for more information and to view supporting materials.

About WD-40 Company

WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories, and homes around the world. The Company owns a wide range of well-known brands that include maintenance products and homecare and cleaning products: WD-40® Multi-Use Product, WD-40 Specialist®, 3-IN-ONE®, GT85®, 2000 Flushes®, no vac®, 1001®, Spot Shot®, Lava®, Solvol®, X-14®, and Carpet Fresh®.

Headquartered in San Diego, California, USA, WD-40 Company recorded net sales of $518.8 million in fiscal year 2022 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select Market under the ticker symbol “WDFC.” For additional information about WD-40 Company please visit http://www.wd40company.com.

Forward-Looking Statements

Except for the historical information contained herein, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect the Company’s current expectations with respect to currently available operating, financial and economic information. These forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements. These forward-looking statements are generally identified with words such as “believe,” “expect,” “intend,” “plan,” “could,” “may,” “aim,” “anticipate,” “target,” “estimate” and similar expressions.

Our forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: growth expectations for maintenance products; expected levels of promotional and advertising spending; anticipated input costs for manufacturing and the costs associated with distribution of our products; plans for and success of product innovation; the impact of new product introductions on the growth of sales; anticipated results from product line extension sales; expected tax rates and the impact of tax legislation and regulatory action; the length and severity of the current COVID-19 pandemic and its impact on the global economy and our financial results; changes in the political conditions or relations between the United States and other nations; the impacts from inflationary trends and supply chain constraints; and forecasted foreign currency exchange rates and commodity prices.

The Company’s expectations, beliefs and forecasts are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that the Company’s expectations, beliefs or forecasts will be achieved or accomplished. All forward-looking statements reflect the Company’s expectations as of January 9, 2023. We undertake no obligation to revise or update any forward-looking statements.

Actual events or results may differ materially from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I―Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2022, and in the Company’s Quarterly Report on Form 10-Q for the period ended November 30, 2022, which the Company expects to file with the SEC on January 9, 2023.

Table Notes and General Definitions

(1)

 

The Company markets maintenance products under the WD-40®, GT85® and 3-IN-ONE® brand names. Currently included in the WD-40 brand are the WD-40® Multi-Use Product, WD-40 Specialist® and WD-40 BIKE® product lines.

(2)

The Company markets the following homecare and cleaning brands: X-14® automatic toilet bowl cleaners, 2000 Flushes® automatic toilet bowl cleaners, Carpet Fresh® and no vac® rug and room deodorizers, Spot Shot® aerosol and liquid carpet stain removers, 1001® household cleaners and rug and room deodorizers and Lava® and Solvol® heavy-duty hand cleaners.

(3)

The Americas segment consists of the U.S., Canada, and Latin America.

(4)

The EMEA segment consists of countries in Europe, the Middle East, Africa and India.

(5)

The Asia-Pacific segment consists of Australia, China and other countries in the Asia region.

(6)

Constant currency represents the translation of the current quarter results from the functional currencies of the Company’s subsidiaries to U.S. dollars using the exchange rate in effect for the corresponding period of the prior fiscal year.

WD-40 COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share and per share amounts)

 

 

 

 

 

November 30,

 

August 31,

 

2022

2022

Assets

 

Current assets:

 

Cash and cash equivalents

$

36,882

 

 

$

37,843

 

Trade and other accounts receivable, net

 

87,285

 

 

 

89,930

 

Inventories

 

119,067

 

 

 

104,101

 

Other current assets

 

12,122

 

 

 

17,766

 

Total current assets

 

255,356

 

 

 

249,640

 

Property and equipment, net

 

65,658

 

 

 

65,977

 

Goodwill

 

95,277

 

 

 

95,180

 

Other intangible assets, net

 

5,362

 

 

 

5,588

 

Operating lease right-of-use assets

 

8,435

 

 

 

7,559

 

Deferred tax assets, net

 

629

 

 

 

679

 

Other assets

 

10,776

 

 

 

9,672

 

Total assets

$

441,493

 

 

$

434,295

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

31,826

 

 

$

32,852

 

Accrued liabilities

 

24,728

 

 

 

27,161

 

Accrued payroll and related expenses

 

14,251

 

 

 

11,583

 

Short-term borrowings

 

42,537

 

 

 

39,173

 

Income taxes payable

 

301

 

 

 

51

 

Total current liabilities

 

113,643

 

 

 

110,820

 

Long-term borrowings

 

107,902

 

 

 

107,139

 

Deferred tax liabilities, net

 

10,715

 

 

 

10,528

 

Long-term operating lease liabilities

 

6,629

 

 

 

5,999

 

Other long-term liabilities

 

11,234

 

 

 

11,185

 

Total liabilities

 

250,123

 

 

 

245,671

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock ― authorized 36,000,000 shares, $0.001 par value; 19,896,477 and 19,888,807 shares issued at November 30, 2022 and August 31, 2022, respectively; and 13,587,596 and 13,602,346 shares outstanding at November 30, 2022 and August 31, 2022, respectively

 

20

 

 

 

20

 

Additional paid-in capital

 

168,092

 

 

 

165,973

 

Retained earnings

 

459,439

 

 

 

456,076

 

Accumulated other comprehensive loss

 

(34,873

)

 

 

(36,209

)

Common stock held in treasury, at cost ― 6,308,881 and 6,286,461 shares at November 30, 2022 and August 31, 2022, respectively

 

(401,308

)

 

 

(397,236

)

Total stockholders’ equity

 

191,370

 

 

 

188,624

 

Total liabilities and stockholders’ equity

$

441,493

 

 

$

434,295

 

WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended November 30,

 

2022

 

2021

 

 

 

 

 

 

Net sales

$

124,893

 

 

$

134,746

 

Cost of products sold

 

60,638

 

 

 

66,276

 

Gross profit

 

64,255

 

 

 

68,470

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Selling, general and administrative

 

39,984

 

 

 

38,423

 

Advertising and sales promotion

 

5,339

 

 

 

5,624

 

Amortization of definite-lived intangible assets

 

253

 

 

 

363

 

Total operating expenses

 

45,576

 

 

 

44,410

 

 

 

 

 

 

 

Income from operations

 

18,679

 

 

 

24,060

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

Interest income

 

44

 

 

 

25

 

Interest expense

 

(1,169

)

 

 

(620

)

Other income (expense), net

 

150

 

 

 

(329

)

Income before income taxes

 

17,704

 

 

 

23,136

 

Provision for income taxes

 

3,707

 

 

 

4,581

 

Net income

$

13,997

 

 

$

18,555

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

Basic

$

1.03

 

 

$

1.35

 

Diluted

$

1.02

 

 

$

1.34

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

Basic

 

13,590

 

 

 

13,716

 

Diluted

 

13,609

 

 

 

13,752

 

WD-40 COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

 

 

 

 

 

 

 

Three Months Ended November 30,

 

2022

 

2021

Operating activities:

 

 

 

 

 

Net income

$

13,997

 

 

$

18,555

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

1,896

 

 

 

1,987

 

Net gains on sales and disposals of property and equipment

 

122

 

 

 

9

 

Deferred income taxes

 

271

 

 

 

738

 

Stock-based compensation

 

2,719

 

 

 

2,891

 

Unrealized foreign currency exchange losses (gains)

 

(1,481

)

 

 

541

 

Provision for credit losses

 

30

 

 

 

30

 

Changes in assets and liabilities:

 

 

 

 

 

Trade and other accounts receivable

 

2,847

 

 

 

(7,980

)

Inventories

 

(14,203

)

 

 

(13,054

)

Other assets

 

4,573

 

 

 

(1,793

)

Operating lease assets and liabilities, net

 

26

 

 

 

2

 

Accounts payable and accrued liabilities

 

(3,336

)

 

 

4,126

 

Accrued payroll and related expenses

 

2,627

 

 

 

(7,324

)

Other long-term liabilities and income taxes payable

 

349

 

 

 

325

 

Net cash provided by operating activities

 

10,437

 

 

 

(947

)

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Purchases of property and equipment

 

(1,458

)

 

 

(2,434

)

Proceeds from sales of property and equipment

 

158

 

 

 

72

 

Net cash used in investing activities

 

(1,300

)

 

 

(2,362

)

 

Financing activities:

 

 

 

 

 

Treasury stock purchases

 

(4,072

)

 

 

(7,386

)

Dividends paid

 

(10,634

)

 

 

(9,905

)

Repayments of long-term senior notes

 

(400

)

 

 

(400

)

Net proceeds (repayments) of revolving credit facility

 

3,364

 

 

 

 

Shares withheld to cover taxes upon conversions of equity awards

 

(600

)

 

 

(4,246

)

Net cash used in financing activities

 

(12,342

)

 

 

(21,937

)

Effect of exchange rate changes on cash and cash equivalents

 

2,244

 

 

 

(1,196

)

Net (decrease) increase in cash and cash equivalents

 

(961

)

 

 

(26,442

)

Cash and cash equivalents at beginning of period

 

37,843

 

 

 

85,961

 

Cash and cash equivalents at end of period

$

36,882

 

 

$

59,519

 

 

The student loan company being used to attack Biden’s debt relief plan

The student loan company being used to attack Biden’s debt relief plan

MOHELA now manages the accounts of practically 7 million federal university student mortgage debtors, additional than double what it had two decades back. Previous yea,r it brought in extra than $130 million in income, the bulk of which came from its federal agreement to services pupil loans.

MOHELA, like the Instruction Department’s other bank loan servicers, experienced been going ahead with applying the Biden administration’s personal debt reduction until it was halted by the courts in November. The firm experienced long gone so considerably as to finalize a letter — co-branded with both of those MOHELA and federal logos — notifying debtors that their personal debt relief request had been done, according to paperwork attained by POLITICO below a general public records ask for.

But, at the exact same time, MOHELA has been drawn into the combat towards student debt reduction by Missouri Lawyer Standard Eric Schmitt, a single of the lead plaintiffs in the multi-point out lawsuit, even although the enterprise is not a get together to the circumstance.

The other states pursuing the legal problem include things like Nebraska, Iowa, South Carolina, Kansas and Arkansas. They claim Biden’s debt reduction system will harm them in a vary of methods, such as reducing tax earnings or diminishing the worth of investments tied to college student loans.

But it is Missouri’s portion of the case, asserting financial hurt to MOHELA, that has occupied significantly of the attention from authorized observers and decrease courts.

Missouri argues that MOHELA will reduce revenue below Biden’s relief approach because it’ll have fewer accounts to manage. A lot less profits for the organization, Missouri says, will make it extra tough for MOHELA to make demanded payments to a condition fund that aids its community colleges and universities.

Seizing on the damage to bank loan servicers that perform for the Schooling Department, like MOHELA, was “the most effective option to provide a prosperous lawsuit,” explained Phil Kerpen, a conservative political organizer who leads American Motivation and was an early proponent of the approach and circulated the strategy in conservative circles.

All of the financial loan servicers employed by the Training Division decided towards suing in excess of the credit card debt relief strategy. MOHELA introduced a diverse circumstance, Kerpen observed, for the reason that of the company’s romance to a state with a Republican attorney common who could consider action on its behalf.

When Biden initially introduced his plan to forgive pupil debt in August, Republicans and conservative teams vowed to convey authorized problems to the plan. But discovering a plaintiff who would have a concrete harm that allows them to deliver a lawsuit was a main problem.

MOHELA’s part in the case has introduced contemporary criticism from some Democrats and client advocacy groups.

Rep. Cori Bush, the progressive Democrat whose district neighbors the company’s Chesterfield, Mo. headquarters, for occasion, blasted MOHELA for what she termed an “unconscionable” effort to stop credit card debt reduction. MOHELA, she included in a assertion to POLITICO, is “a proxy for the 6 conservative lawyers general” to challenge the administration’s debt reduction application and “would earnings off this challenge’s achievement.”

MOHELA responded to Bush’s criticism past month by appearing to distance alone from the lawsuit. The company defined in a letter to Bush that its “executives were being not involved” with the Missouri legal professional general’s choice to file a lawsuit.

With considerably at stake for the company’s federal loan servicing small business, MOHELA officials from the company have also sought to reassure Democratic congressional aides and Biden administration officials that they ended up not involved in the Missouri legal professional general’s lawsuit trying to find to block debt reduction, in accordance to men and women acquainted with the discussions.

MOHELA did not respond to a request for remark for this tale. Firm executives have not comprehensive publicly — in court docket or in any other case — how they hope Biden’s debt aid would have an impact on the enterprise. Some of their rivals in the field have forecast some kind of money strike if the program moves in advance.

Progressives object to the plan that the pursuits of any Schooling Section contractor would be made use of to overturn an administration’s university student financial loan coverage.

“It’s not just that this could derail financial debt cancellation, but it sets up a dynamic where the legal status of these contractors creates veto factors in the pupil bank loan procedure that enables it to develop into even extra partisan and additional dysfunctional,” explained Mike Pierce, the executive director of the Scholar Borrower Protection Heart. “Ultimately borrowers are heading to shell out the price for that.”

For decades right after it was produced by Missouri lawmakers in 1981, MOHELA designed university student financial loans that have been guaranteed by the federal government. That modified when President Barack Obama in 2010 signed laws to scrap the system, which Democrats seen as a wasteful giveaway to loan companies. In response to worries point out entities like MOHELA would go out of enterprise, Congress needed the Education Department to set apart new mortgage servicing contracts for those people firms.

“I consider no one thought by way of the politics of that, and right here we are 12 a long time later and the expense of that patronage may possibly destroy personal debt cancellation for tens of millions of persons,” Pierce said.

MOHELA has substantially expanded its financial loan-servicing company given that it been given an original Instruction Division deal in 2011 to services about 100,000 federal university student financial loans, profitable further contracts and new business from the company. As of August, MOHELA managed the accounts of 6.7 million debtors on behalf of the Education and learning Department. It also providers the accounts of an more 330,000 debtors of non-public financial loans.

The big expansion followed the company’s hard work to beef up its Washington existence. Around the past decade or so, the firm commenced hiring an outdoors business to lobby Congress and the Training Department. And it proven a D.C. workplace in the exact same constructing complicated that properties the Instruction Department’s Office of Federal Pupil Aid.

On Capitol Hill, MOHELA has benefited from obtaining Missouri Sen. Roy Blunt as the top GOP appropriator overseeing training funding. Senate appropriators have continuously additional language to governing administration funding expenses that successfully require the Schooling Section to continue to keep businesses like MOHELA in the combine as the company has attempted to overhaul its scholar mortgage servicing contracts more than the earlier quite a few decades.

MOHELA has also managed to continue to be rather very clear of controversy as Democrats and progressives sharply criticized the college student financial loan servicing market in current many years. It averted the fate of some greater businesses, like Navient and FedLoan Servicing, which were being dogged by federal and condition lawsuits and investigations into their bank loan servicing practices.

The Biden administration last yr renewed MOHELA’s loan servicing deal by 2023. It also awarded the business hundreds of thousands of new accounts by designating it the new special contractor to deal with the Community Company Loan Forgiveness plan, which cancels the personal debt of community company personnel after 10 many years. Correcting the lengthy-troubled program, which had earlier been operated by FedLoan Servicing, has been a key precedence of Democrats.

MOHELA’s role in the debt relief lawsuit so considerably has been combined for the GOP states pursuing the case. In Oct, a federal choose in St. Louis tossed out the GOP states’ lawsuit, acquiring that MOHELA was as well considerably taken off from the point out of Missouri for the lawyer common to sue on its behalf. The choose ruled that the other states also lacked standing.

But a federal appeals court docket in November took a different method. “Due to MOHELA’s money obligations to the Condition treasury, the challenged pupil mortgage personal debt cancellation offers a threatened economical hurt to the Condition of Missouri,” a 3-decide panel of the 8th Circuit Court of Appeals unanimously concluded.

The Supreme Courtroom will now consider regardless of whether the states have standing to convey their lawsuit when it hears the case in February or March. That will determine whether the justices stop up achieving a conclusion on the legality of the administration’s prepare less than the unexpected emergency authority the Education Department claims it has to cancel credit card debt for millions as a reaction to the Covid-19 pandemic.

The justices have also agreed to hear a 2nd circumstance which is based on no matter if two borrowers are in a position to sue since they have been deprived of the chance to submit public feedback on the plan.

Advocates for financial debt reduction, nevertheless, accept that the struggle to protect the administration’s system lengthen further than MOHELA. A decline at the Supreme Court is also possible to spur new phone calls for Biden to test a different lawful authority to terminate college student debt.

“Ultimately, MOHELA is not a plaintiff in this circumstance,” Bush explained. “The strain need to be utilized on the attorneys typical to fall the scenario, the Supreme Court to rule in favor of the persons who stand to benefit from this reduction, and the Biden Administration to keep on using its lawful authority to make certain scholar personal debt reduction is quickly shipped to borrowers.”