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

Thank you. Good afternoon, and thank you for joining us for our Second Quarter Fiscal 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, the impact of introducing new product lines 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 website at wd40company.com. Our third quarter fiscal year '13 earnings call is scheduled for Thursday, July 8, 2013. At this time, I'd like to pass this call on to Garry Ridge.

Thanks, Maria. Good day, and thanks for joining us for today's conference call. Today, we reported net sales of $86.7 million for the second quarter of fiscal 2013, an increase of 1% over Q2 of last fiscal year. Year-to-date net sales were $182 million, an increase of 6% over the prior-year period and within the range of our current annual revenue growth guidance of 4% to 8%. Net income for the second quarter was $10.5 million compared to $10.6 million in Q2 last year, and diluted earnings per share for the second quarter was $0.66 compared with $0.65 for the same period last year. Year-to-date, net income was $21.4 million, an increase of 23% over the prior year period and year-to-date diluted earnings per share were $1.35, up from $1.07 for the same period last fiscal year. Before we focus on more detail on the sales results, I'd like to provide an update on how we're doing against our strategic initiatives through the second quarter. Strategic initiative #1 is to maximize the WD-40 brand. Sales of WD-40 multi-use product increased by 6% in the second quarter compared with Q2 of last fiscal year. We grew sales over 20% in our Europe and Asia-Pacific trading blocks and from Q2 of last fiscal year, and Q2 of this year was primarily due to the ongoing growth of our base business. Strategic driver #2, which is to be a global leader in the company's categories and products within our prioritized platforms. We were happy to celebrate WD-40 Specialist's 1-year anniversary this quarter. If you haven't taken a look at WD-40 Specialist, Page 15 on our IR PowerPoint presentation, which is currently posted on our website, will give you a view of the complete range of current Specialist product in the United States. We…

Garry, thank you. In addition to the information that we'll present on the call today, we suggest that you review our 10-Q, which we'll file on Monday, April 8. As we quickly look to the rest of our financials, let's first stop at our 50/30/20 rule. 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 with the exclusion of depreciation and amortization. Our target for that is 30% or less. And then finally, the 20 represents EBITDA. If our gross margin is at or above the 50% and our cost of business is 30% of less, our EBITDA will be at or above our target 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. Now looking at the 50%, our gross margin in the second quarter was 50.9% compared to the 49.0% in the prior fiscal year period. The 190 basis point increase was primarily driven by price increases with -- along with lower promotional discounts, along with benefits from supply chain related initiatives. These favorable impacts were partially offset by higher input costs and the end favorable impact from foreign currency exchange rates. Looking at the more detail, we experienced unfavorable impact of 20 basis points from our major input costs. Impact from changes in the cost of petroleum-based products and our aerosol cans combined to unfavorably impact our margin by 10 basis points. Much of the impact was related to the higher cost for aerosol cans. Changes in other input costs, including raw materials related to our homecare and cleaning products, as well…

Thanks, Jay. Progress on our strategic initiatives, as well as several macroeconomic factors have impacted our outlook over time. We feel more prepared than ever to capitalize on the opportunities the global economy may present us. We'll not only benefit from some economic recovery or instability, but from our global leadership position, which is now in place around the world. We continue to focus our people and efforts on developing new multipurpose product offerings, and with the homecare and cleaning products category, continuing to represent a smaller portion of our business over time. While we have harvested our homecare and cleaning products to date, including reducing sales in low profit products and channels, we continue to experience volatility in -- and category declines. In March 2013, the Board of Directors authorized management to evaluate strategic alternatives for the homecare and cleaning products in the Americas segment. To date, this evaluation is in its early stages and no decision has been made relative to future strategic plans for these brands. We are cautiously optimistic about several macro factors, which include stability in the global economy, major input costs and foreign exchange rates stabilizing. As for input 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. Our sales and net income guidance remains unchanged from October 2012. However, we are updating our earnings per share guidance based on our projected share repurchases. The following fiscal year 2013 guidance does not include acquisitions or divestitures and assumes that foreign currency exchange rates will remain close to the recent levels. We expect our fiscal year net sales results to be in the range of $356 million to $370 million,…

[Operator Instructions] And we'll go first to Joe Altobello with Oppenheimer. Joseph Altobello - Oppenheimer & Co. Inc., Research Division: Just a few questions here, I guess. First, on Europe. You guys had a very good quarter here in Europe and you've had a few good quarters in Europe. You mentioned that you "turned a corner," if you will, and it sounds like some of the growth you're seeing is from new market entry or new channel entry, but also a lot of the growth is base business growth. So could you give us a sense for what you're seeing on the ground in terms of overall macro activity in Europe? Are things really getting better at this point?

Yes, Joe, when they weren't so good in Europe, it wasn't really because our end users weren't buying our product, it was because there was a scare mentality in the distribution systems in Europe and our promotional activity was pared back as they were reducing inventories. We've seen 2 solid quarters now of that not reoccurring. We've got -- our promotional programs are solid. Our support of bicycling in Europe has been great. We've launched Specialist in Europe and it had a good launch around that. So God willing and the creek don't rise, we feel that we're back on to what has been our traditional double-digit growth pattern in Europe, which is continuing to make the end-user aware and make it easy to buy and putting more product in front of people who use more product where they shop. Joseph Altobello - Oppenheimer & Co. Inc., Research Division: Got it, okay. And you mentioned Specialist, I wanted to go there next. You obviously put out 3 new products this quarter. Do you guys worry that the proliferation of new products, if you will, on that line complicates the category? Or are the uses that differentiated and unique? Because one of the things I think most consumers like about the base WD-40 product is how useful it is and how it does go from 1 category to the other in terms of its flexibility.

Absolutely. If you look at the 2 areas, firstly, if you look at retail, what it's doing on the retail shelves is getting us a much larger brand footprint. And the retail customer, the guy who uses $0.41 worth of WD-40 a year because he's mainly sitting on his shelf drinking his beer on the weekend, he's going to continue to buy WD-40 and use the MUP product just as he always has. Our heavier end users, the trades guys, the people who are DIYers and heavy users are already either using something in this area that is not the multi-use product. I'll give you a typical example, Joe. Let's assume that you are a big-time automotive DIYer. WD-40 is a great penetrant, but sometimes there are opportunities to penetrate, let's say, a manifold on an exhaust that's really pretty well stuck. Now the end result or the big answer to that might be hit it with a blue torch or you can use a better penetrant. And we -- one of our product lines is now the best-in-class 50 state VOC-free penetrant on the market. Other areas where we're going is there are products that WD-40 multi-use product doesn't compete with at all at the moment. One of those is our rust remover soap product, a product where you put rusty parts in a liquid and leave it for a couple hours overnight, take it out and the rust is gone. Another area is in the new lawn and landscaping area we're going into, which is a whole new range of products under the WD-40 brand, that WD-40 MUP does not solve any of those problems. So what we've looked at is, and in our investor presentation we've upgraded it a little bit, you'll see we've added some new slides that show you the platforms that we believe, through research, the brand has permission to go and then from that dropping down to categories, which are more the verticals of where we think we can go. Joseph Altobello - Oppenheimer & Co. Inc., Research Division: Okay, understood. And just one last one, I guess, on the strategic alternatives for homecare and cleaning in the Americas, how should we think about that? Or, actually, more importantly, how are you guys thinking about that in terms of how you're prioritizing, let's say things like earnings dilution versus the boost to growth that you would get from either divesting that business, or shutting it down or what-have-you?

Well, really, our position hasn't changed. We've said for a long time now that homecare and cleaning products are not long-term parts of our business and we've been harvesting from that. And when the time is right and when we feel it's right, we'll make a move to make them less part of our business. So -- and we would -- what we hope to be able to do that by supplementing the revenues with the growth that we're getting and we're going to get out of our Specialist product line or maybe an acquisition. But we're just really saying that we mean what we say. The homecare and cleaning products have done their job for us, where we love the revenue and the profitability of them still, but that's not where we're spending 1 strategic dollar. Our strategic dollars are being poured into our new platforms around the WD-40 brand. And the reason we're doing that now, is because we've now got the global infrastructure to be able to take more things to more people in more places faster.

[Operator Instructions] It appears there are no further questions at this time. I'd like to turn the conference back to management for any additional or closing remarks.

Thank you, everyone. We remind you that our investor presentation is on our website and that the 10-Q will be filed on Monday. And until we see you in person or in the next call, we wish you a pleasant afternoon. Good afternoon.

That does conclude today's conference. We appreciate your participation.