Ladies and gentlemen thank you for standing by. Good day and welcome to the WD-40 Company Fourth Quarter and Full Fiscal Year 2015 Earnings Conference Call. Today's call is being recorded. At this time all participants are in a listen only mode. At the end of the prepared remarks we will conduct a question and answer session. [Operator Instructions] I'd now like to turn the presentation over to the host for today's call Ms. Wendy Kelley, Director Investor Relations and Corporate Communications, please proceed.

Thank you. Good afternoon and thanks to everyone for joining us today. On the call today are WD-40 Company’s President and Chief Executive Officer, Garry Ridge; and Vice President and Chief Financial Officer, Jay Rembolt. Following their prepared remarks, the operator will come back on the line for the Q&A portion of the call. Before we get started, let me remind you that supporting materials for this call are available on our Investor Relations website at investor.wd40company.com. In addition to our traditional disclosures, the Company has published the supplemental slides, which can be downloaded from this Web site. We encourage investors to review these slides in conjunction with today’s prepared remarks. A replay and transcript of today’s webcast will also be made available at that location shortly after this call. As a reminder, today’s call includes forward-looking statements about our expectations for the Company’s future performance. Of course, actual results could differ materially. The Company’s expectations, beliefs and projections are expressed in good faith but there can be no assurance that they will be achieved or accomplished. Please refer to the Risk Factors detailed in our SEC filings for further discussion. Finally, for anyone listening to a taped or webcast replay or reviewing a written transcript of this call, please note that all information presented is current only as of today’s date, October 15, 2015. The Company disclaims any duty or obligation to update any forward-looking information whether as a result of new information, future events or otherwise. With that, I’d now like to turn the call over to Garry.

Thank you, Wendy. Good day and thanks for joining us for today's conference call. To sum up fiscal year 2015 it was the best of times and it was the worst of times. Fiscal year 2015 was a year of solid operating performance that was obscured by the impacts of political events, economic instability, a strong U.S. dollar and a particularly weak Euro against the pound sterling. We are proud that we've been able to build a global company and we currently generate approximately 40% of our sales in currencies other than the U.S. dollar. With this comes foreign currency risk. We currently have four subsidiaries located in the United States, I'm sorry outside of the United States that generate sales and do business in currencies other than the U.S. dollar. They are located in the United Kingdom, Canada, Australia and China. The main currency in which each of these subsidiaries conduct business is called its functional currency. We have foreign currency translation exposure when we translate the results of our foreign subsidiaries from their functional currency into U.S. dollars. The continued strengthening of the U.S. dollar deflates the net sales denominated in currencies other than the U.S. dollar and thus has a negative effect on our consolidated results. In addition to this currency translation exposure our UK subsidiary also experiences foreign currency transaction exposure, because it conducts business in currencies other than its functional currency the pound sterling. A significant portion of EMEA's net sales are generated outside of the UK and transacted in Euros and U.S. dollars. When these sales are converted into pound sterling EMEA's reported results are impacted by changes in the currency exchange rates for those two currencies. In 2015, the euro has continually weakened against the pound. This transaction exposure has been most significant…

Thank you, Garry. In addition to the information presented on this call I suggest that you review our press release which is issued earlier today as well as our 10-K report for the fiscal year 2015 which we'll expect to file on October 22nd. Let's start with a discussion about how we performed against our most recent fiscal year guidance. We projected our fiscal year net sales results to be in the range of 383 million to 390 million which meant flat to growth of 2%. Today we reported fiscal year revenue of 378.2 million reflecting a decline in sales of about 1%. As Garry discussed in detail the stronger than anticipated impact of foreign currency exchange rates as well as the economic and political challenges in some of our European markets made it difficult for us to forecast topline sales results. We project gross margin to be better than 52%. And today, we reported gross margin of 52.9%. We expected our global advertising and promotion investment to be in the range of 6% to 7% of net sales. And today, we reported our A&P investment of 6% of sales. We expected net income to be between $44.5 million and $45.4 million, which would have achieved diluted earnings per share of between $3.03 and $3.09, assuming $14.7 million weighted average shares outstanding. Today, we reported net income of $44.8 million and diluted earnings per share of $3.04, based on $14.6 million weighted average shares outstanding. Now, on to our 50/30/20 Rule. For many years, we’ve run our business by what we call our 50/30/20 Rule. We used this rule to guide and measure the performance of our business. Under the 50/30/20 Rule, 50 represents gross margin, which we target to be above 50% of net sales. 30 represents our cost…

Thanks Jay. Take a moment now to review how we’re making progress on our strategic drivers. The strategic drivers for this year for the Company, number one, is to grow WD-40 Multi-Use product. Our goal under this initiative is to take WD-40 Multi-Use product that little blue and yellow can with the red top to more places for more people with more users. In the fourth quarter, we launched our newest product, WD-40 EZ-REACH, which is a 14.4 ounce can of WD-40 Multi-Use product featuring an innovative flexible straw. Though it’s still early, we’ve seen encouraging point of sales results. And so far, the end user results have been -- reviews have been positive. We are currently distributing the product at three U.S. retailers and we expect to add several more by the end of fiscal year 2016. Strategic initiative number two, is to grow the WD-40 Specialist product line, which celebrated its fourth birthday this year. Our goal under this initiative is to leverage the power of the shield to develop new products and categories within identified geographies and platforms. Despite all the macroeconomic events that we accounted this year, WD-40 Specialist still achieved a global growth rate of 24% for the full fiscal year and 36% during the fourth quarter. For the full fiscal year, WD-40 Specialist global sales generated about 6% of the revenue that we saw from the WD-40 Multi-Use product. Over the next 10 years, we believe we can grow that number to 25%. When we report first quarter fiscal year 2016 earnings, we will begin to provide additional information for investors about the performance of the WD-40 Specialist product line. Strategically initiative number three, is to broaden our product and revenue base. Our goal under this initiative is to leverage the strengths within our…

[Operator Instructions] Your first question comes from the line of Linda Bolton Weiser from B. Riley and Company, please proceed with your question.

Hi, this is Zach Cummins. I'm in for Linda right now. My first question is, we did a little research and we found about a 34% retail price premium at Home Depot for your EZ REACH product in comparison to just your regular multiuse product. Does that sound about right to you and then how much of an effect will EZ REACH have on the U.S. sales mix?

That sounds right, I think it's $7.88 in Home Depot, and I'm not quite sure how I'd answer your second question on sales mix.

Okay, thank you, and then if I remember correctly I think you said the EZ REACH is with three distributors at this point. And I was wondering how long do you think it'll take to reach full distribution and then do you think are there still supply constraints for the product.

We are currently shipping product to Home Depot, Lowes and Auto Zone. We expect by March next year to be shipping to a number of other customers. Depending on demand we would, we feel that by the middle of next fiscal year we should have reasonably good wide distribution in the United States then after that it would be what we need to consider for that global market.

All right, great, that's all from me.

Okay, thank you.

Our next question comes from the line of Liam Burke from Wunderlich. Please proceed with your question

Thank you, good afternoon Garry.

Hi Liam.

Garry could you give us, could you give any sense as to specialist sales how they trend in emerging markets versus more developed markets. Looks like the U.S. is hitting its stride, but I mean how does that compare to the ramp up in a market like China.

Specialist is very limited in China, Liam the first thing we need to do is to make the shield famous and then take Specialist in after as you may have heard on the call, Specialist is now at about 6% of our MUP sales, and we’re pretty happy with that. But most of those are coming originally, a big portion from the U.S. and then from EMEA the more mature markets and Australia. We have some business in some of our distributors, but that’s the longer term build. Our goal at the moment is to get to our 25% of MUP number in the more developed markets like U.S., the UK, Australia, France, Germany those sort of areas and then later we’ll continue on building it in more of the emerging markets, as we build the awareness of the core brand of the blue and yellow can.

Okay, so just sticking with -- just second. Your growth rates in China reflect that you have probably primarily Multi-Use product sales?

Yes.

Jay, do you have any -- in your -- the efforts to step up or what you’ve done and moved up gross margins. Do you have any capital projects, or is there any capital investment that needs to be made for you to achieve your objectives on the gross margin fronts?

We have few initiatives around some machinery for line speeds and line efficiencies…

And EZ REACH…

And certainly EZ REACH has an opportunity to improve margin as well.

Great…

When we get volumes up…

Well, thank you very much.

Ladies and gentlemen, that does conclude our allotted time for questions. We thank you for your participation on today’s conference call and ask that you please disconnect your line.