Good day, everyone, and welcome to the WD-40 Company First Quarter 2013 Earnings Release Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to the Vice President of Corporate and Investor Relations for WD-40 Company, Ms. Maria Mitchell. You may begin.

Good afternoon, and thank you for joining us for our First Quarter and Fiscal Year 2013 Earnings Call. Today, we are pleased to have Garry Ridge, President and CEO; and Jay Rembolt, Vice President and Chief Financial Officer. This conference call contains forward-looking statements concerning WD-40 Company's outlook for sales, earnings, dividends and other financial results. These statements are based on an assessment of a variety of factors, contingencies and uncertainties considered relevant by WD-40 Company. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from forward-looking statements, including the impact of commodity prices, impact of changes in foreign currency exchange rates, the impact of introducing new products and fluctuating global market condition, both in the United States and internationally. The company's expectations, beliefs and projections 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 projections will be achieved or accomplished. The risks and uncertainties are detailed from time to time in reports filed by WD-40 Company with the SEC, including Forms 8-K, 10-Q and 10-K, and readers are urged to carefully review these and other documents and to stay up-to-date with our most recent company developments provided in the Investor Relations section of our company website at wd40company.com. Our second quarter fiscal '13 earnings call is scheduled for Thursday, April 4, 2013. Now, I'd like to pass it over to Garry Ridge.

Thank you, Maria. Good day and Happy New Year. Thanks for joining us. Today, we reported net sales of $95.3 million for the first quarter of fiscal year 2013, an increase of 12% over Q1 last fiscal year. Q1 was a new record revenue quarter for the company. Net income for the first quarter was $10.9 million compared to $6.8 million in Q1 last fiscal year. Diluted earnings per share for the first quarter was $0.69 compared to $0.42 for the same period last year. As we review our results for the first quarter, we'll be doing so under our 50/30/20 rule and our strategic initiatives. Q1 was a good quarter for us. We grew total sales by 12% versus the prior-year quarter and increased our gross margin to over 50%, largely due to the benefits stemming from our strategic initiatives. So let's take a closer look at the progress we made in the first quarter towards our strategic initiatives. Strategic initiative #1, is to maximize the WD-40 brand. Sales of WD-40 multi-use products increased by 13% in the first quarter compared to Q1 last fiscal year. We experienced double-digit growths in several key markets including more developed markets such as the U.S., U.K., France, Germany and Australia, as well as our distributor markets in Eastern Europe and the Middle East. Strategic initiative #2, to be the global leader in the company's product categories within our prioritized platforms. The WD-40 Specialist product line, which we launched in the U.S. in the first quarter of last fiscal year, is helping to solidify our leadership in the marketplace. In fiscal year 2012, we increased distribution in the U.S. as well as launched in a selected other countries in Europe, Canada, Latin America and Asia. In the current quarter, we launched the Specialist…

Garry, thanks. Just a reminder, in addition to the information that we're presenting on the call today, we'll suggest that you review our Form 10-Q, which will be filed tomorrow. Now a look at the rest of the financials. First, a quick review of our 50/30/20 rule. Those are the measures we use to guide our business. As you may recall, the 50 represents gross margin, which we target to be at or above 50% of net sales. The 30 represents our cost of doing business, which is our total operating expenses excluding depreciation and amortization. Our target is 30% or less. And then finally on to the 20, which represents EBITDA. If our gross margin is at or above or 50% and our cost of businesses 30% or less, our EBITDA will be at our target or above of 20%. EBITDA is earnings before interest, taxes, depreciation and amortization. The descriptions and reconciliations of these non-GAAP measures are available in our 10-Q and in our investor presentations. First, a look at the gross margin or the 50. Gross margin in the first quarter was 50.1% compared to the 48.7% in the prior fiscal-year quarter. The increase of 140 basis points in gross margin was primarily driven by price increases, lower promotional discounts and benefits from our supply chain-related initiatives. These favorable impacts were partially offset by higher input costs and unfavorable impact of foreign exchange rates. Let's look at input costs first. We experienced a net unfavorable impact of 30 basis points from our input costs. Impact -- the impact from changes in the cost of petroleum-based materials and aerosol cans combined unfavorably to impact our gross margin by 20 basis points. Most of the impact was related to the higher costs for aerosol cans. Changes in other input…

Great. Thanks, Jay. There are several macroeconomic factors that impact our outlook as well as our progress towards our strategic initiatives. We are cautiously optimistic about the macroeconomic factors, which include the stability in the global economy, major input costs and foreign exchange rates. In terms of sales and global -- and the global economy, we feel the growth of our WD-40 Multi-Use Product and the WD-40 Specialist product line will overcome possible slower growth and uncertainties that could be in China or in Europe. We expect that our multi-year purpose maintenance products will also offset any decreases that may occur in homecare and cleaning products. As for import costs, we hope that the recent stability in petroleum-based materials and aerosol can costs will continue in the near-term and that our initiatives will help us maintain, if not grow, our gross margin. We now, again, look back at our guidance, which remains unchanged from what we shared with you in October and at the annual shareholder meeting just in December. The following fiscal year 2013 guidance does not include any acquisition activity and assumes that foreign currency exchange rates will remain close to recent levels. We expect fiscal year net sales results to be in the range of $356 million to $370 million or growth of between 4% and 8% versus fiscal year 2012. We project gross margin to be close to 50%. We expect our global advertising and promotional investment to be in the range of 7% to 8% of net sales. We expect net income to be in the range of $36.5 million to $38 million, which would achieve a diluted earnings-per-share of between $2.31 and $2.40, that would assume that there were 15.8 million weighted average shares outstanding. So, as we sum up, what did you hear…

[Operator Instructions] We'll take our first question from Liam Burke of Janney Capital Markets.

Garry, could you talk a little bit about the core WD-40 brand in the U.S.? It looked like you had healthy sales. It looked like you got a little benefit from Specialist but WD-40 seems to be chugging along pretty well. What's driving that? I mean, typically there'd be some promotion behind it or the re -- an introduction of Smart Straw. It -- what is stepping up with this double-digit growth rate?

Well, again, we are looking at this, Liam, as you rightly identified, as the WD-40 brand. So we talk about it as being WD-40 Multi-Use Product, which is the blue and yellow can with the little red top. WD-40 Specialist which is our new product line, and then, of course, WD-40 BIKE, which had very little. Certainly, WD-40 Specialist did contribute to our growth of the brand in the U.S., in the first quarter. We do feel we may have got some lift from the core brand because of that also. Liam, if you go to our Investor Presentation, you'll see now there's a new slide in there that talks about physical awareness, and it's a picture of a shelf. And you'll see now how the brand has a lot more overall dominance now that we've got both of those products in the distribution. And then the core product, we just had a good quarter. We have -- had some good promotional activity going on across-the-board. We saw good activity in both the industrial and the home improvement trade channels. So it was one of those quarters that things played out a little better than we probably expected them to.

Just to touch on that last point, though. I mean, if you're looking at home improvement and industrial, I mean, would you expect that to have had some momentum there or, I mean, you're just looking at saying, "Okay, we just had a good quarter here."

We don't see that this is absolutely abnormal but, again, it will depend on how things pan out going forward. But it seems -- if you look at some of the retail numbers that we've been getting out of home improvement, they seem to be reasonably better than they've been in the past. So I think that whole area is reasonably bland -- not bland, but at least it's not suffering at the moment. So we, overall, expect to have a good year around the core of our business, which is multi-purpose maintenance products driven by global expansion of the core product and the continued development of WD-40 Specialist.

Great. And Europe performed well, as you pointed out, getting some sales that have been deferred from fourth quarter. China was off this year -- this quarter, excuse me. Do you anticipate any kind of catch up in the subsequent quarters this year?

We're in -- as you know, Liam, we're at -- in China for the long haul. And we've shared before that China will bounce around, quarter-to-quarter, probably more than anywhere else as we continue to develop that market. But we feel that we'll grow again in China this year as we have every other year for the last 7, since we've started there, and we've got our eyes on that $100 million that we think is in China sometime in the future.

And we'll take our next question from Joseph Altobello of Oppenheimer.

This is Christina [ph], in for Joe. I was just wondering if you could, at all, quantify the sales shift in the quarter?

I'm sorry?

I was hoping you could quantify the sales shift in the quarter?

Did that -- you mean from the sales shift from Q4 to Q1?

Yes.

We haven't identified that, but if you would recall when we talked about it last time, we said that the sales shift that we felt would probably be mainly in Europe. If you look at Europe, it grew about $5 million, quarter-over-quarter. So the shift would probably be some part of that.

Okay. Great. And then my next question was the impact from Hurricane Sandy, did you have anything from there?

No. Nothing that we could say that was material. We were certainly saddened that it happened. Though I'm sure there were some WD-40 used later on but we haven't -- there's nothing that we could point to.

[Operator Instructions] And we will go to Jeff Zekauskas with JPMorgan. Jeffrey J. Zekauskas - JP Morgan Chase & Co, Research Division: How large is your -- or how large do you intend to grow your Specialist product line, say, for 2013 or 2014?

Jeff, we believe that Specialist can be a meaningful part of our Multi-Use Product business. We haven't disclosed our targets overall, but we believe that from some of the early testing we did with the 3-IN-ONE brand in France and understanding what portion of our Multi-Use Product business could -- a well executed flanker brand strategy, wearing the shield be, we believe that will be a meaningful growth road for us for a number of years to come. And certainly, in the first year, it's proving out to fulfill that goal. Jeffrey J. Zekauskas - JP Morgan Chase & Co, Research Division: As far as your China strategy, do you wait for the Chinese economy to improve or do you have a means of growing that business in 2013?

Oh no, we will continue to grow. The -- I think that the bouncing around over there, Jeff, is purely that. Our strategy in China is to make the end-user aware and make it easy to buy. And we're doing that by identifying geographically the industrial regions that have high consumptions of our type of product. In fact, this time next week I'll be visiting Foxconn in Shenzhen, who are user of our product. But we think that it's just a matter of -- as we've done in many other markets, as you would recall having followed us for many years, Jeff, it's a step-by-step basis that's very disciplined. We think China is a $100 million market in the future sometime down the road. And we're just going to continue like the steam roller, we just keep coming on it and we'll continue to build it. Jeffrey J. Zekauskas - JP Morgan Chase & Co, Research Division: And then lastly, of the coming 3 quarters, which are the quarters that you think will have the highest promotional activity, and which ones do you think would have the lower promotional activity, as best as you can tell?

It's -- Jeff, it's really hard to predict because sometimes that is not necessarily under our control depending on when we move promotions around. But we do know that we will fall in between our 7% and 8% for the whole year. But today, it's a lot harder. We're in so many geographic markets, and timing is different in each one. So it would be very difficult to give you a meaningful prediction. Jeffrey J. Zekauskas - JP Morgan Chase & Co, Research Division: Well, how about the next quarter? Is that a high promotional quarter or a low one, or you can't tell?

I think it'll probably be in kind of line with a normal promotional quarter.

And there appear to be no further questions. So I'll turn it back over to management for any closing or additional comments.

Thank you very much, everybody. We have nothing. We'll wish you a good afternoon, and we'll talk to you again sometime in April. All the best. Cheers.

And, once again, that concludes our call. Thank you, all, for joining today.