Ladies and gentlemen, thank you for standing-by. Good day and welcome to the WD-40 Company Fourth Quarter and Full Fiscal Year 2016 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 would now like to turn the presentation over to the host for today’s call, Ms. Wendy Kelley, Director of Investor Relations and Corporate Communications. Please proceed.

Thank you. Good afternoon and thanks to everyone for joining us today. On our call today are WD-40 Company’s President and Chief Executive Officer, Garry Ridge; and Vice President and Chief Financial Officer, Jay Rembolt. In addition to the financial information presented on today’s call, we encourage investors to review our earnings presentation, earnings press release and Form 10-Q for the period ending August 31, 2016. These documents are available on our Investor Relations website at investor.wd40company.com. A replay and transcript of today’s call will also be made available at that location shortly after this call. On today’s call, we will discuss certain non-GAAP measures. Descriptions and reconciliations of these non-GAAP measures are available in our SEC filings, as well as our earnings presentation. As a reminder, today’s call includes forward-looking statements about our expectation 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 discussions. Finally, for anyone listening to a webcast replay or reviewing a written transcript of this call, please note that all information presented is only current as of today’s date, October 19, 2016. 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 welcome to our fiscal year 2016 conference call. Today, we reported net sales of $97.2 million for the fourth quarter of fiscal 2016, which was an increase of 6% from the fourth quarter of last year. Changes in foreign currency exchange rates had an unfavorable impact of $2.8 million on consolidated net sales for the fourth quarter of fiscal 2016. So if we removed all currency related impacts, net sales would have increased nearly 9%. Net income was $14.2 million compared to $11.7 million in the fourth quarter of last fiscal year, an increase of 21%. Diluted earnings per share for the fourth quarter were $0.99 compared to $0.80 for the same period last fiscal year. For the full fiscal year net sales were $380.7 million, which was an increase of 1% from last fiscal year. Changes in foreign currency exchange rates had an unfavorable impact of $11.7 million on consolidated net sales for fiscal 2016. So if we removed all currency related impacts, net sales would have increased by about 4%. Net income was $52.6 million in fiscal 2016, reflecting an increase of 17%. Diluted earnings per share for the full year fiscal year were $3.64 compared to $3.04 in the prior fiscal year. For the purpose of this call, after discussing our strategic initiatives, we will be focusing primarily on the financial and operating results for the fourth fiscal quarter. For a complete discussion of our full-year’s results for 2016, please refer to the press release we issued earlier today, or our annual report on form 10-K, which we expect to file with the SEC on Monday, October 24. So let’s start with a discussion about strategic initiatives. Strategic initiative number one is to grow WD-40 Multi-Use Product. Our most important strategic…

Thank you, Garry. Good afternoon. Let's start with a discussion about how we performed against our most recently 2016 guidance. We expected our fiscal 2016 net sales to be slightly above 2015, or between $378 million and $383 million. Today we reported fiscal year revenue of $380.7 million, reflecting an increase in sales of about 1% from fiscal year 2015. We expected our gross margin to be above 55%. Well today we reported gross margin of 56.3%. We expected our global advertising and promotional investment be near 6% of net sales and today we reported our A&P of 5.9% of net sales. We had expected net income to be between $49 million and $50 million, resulting in diluted earnings per share of between $3.40 and $3.47 assuming 14.4 million weighted average shares outstanding. Today we reported net income of $52.6 million and a diluted EPS of $3.64 based on 14.4 million weighted average shares outstanding. Overall, we delivered our full fiscal year results in line with our most recent guidance with the exception of one non-operating item that favorably impacted other income by $2.4 million. And thus increased EPS by approximately $0.12. While foreign currency has negatively impacted our sales results, we reported this $2.4 million of other income from foreign currency gains as a result of the re-measurement of the balance sheets of our subsidiaries. Now let's review the 55/30/25 business model. The long-term targets we use to guide our business. As you may recall, the 55 represents gross margin which we target to be a 55% of net sales, the 30 represents our cost of doing business, which is our total operating expenses excluding depreciation and amortization. Our target is to be at 30% of net sales. Then finally, the 25 represents our resulting EBITDA. First, the 55,…

Thanks Jay. To sum up, in summary what did you hear from us on this call? You heard that foreign currency exchange rates continue to be a headwind, and they reduced our net sales by about $12 million for the fiscal year. And on the flip side, we had a non-operating income windfall which resulted in foreign currency gains of about $0.12 per share. You heard that for the full fiscal year we achieved EPS of $3.64 which would have been $3.52 excluding the $0.12 windfall, which is still a record and $0.05 above the top-end guidance of our most recent guidance. You heard that global sales of the blue and yellow can with a little red top grew 7% this quarter. You heard that global sales of WD-40 Specialist were $21.5 million in fiscal 2016 representing 14% increase over last year. You heard that the Americas segment is performing well with an 8% growth in sales this quarter. You heard that we will be transitioning Mike Freeman into a new role of Chief Strategy Officer and promoting Steve Brass into the role of Division President of the Americas, and you heard that we met or exceeded all of our most current fiscal year 2016 guidance. In closing, I would like to share a quote with you from someone I consider a kindred spirit, optimist and best selling author, Simon Finnick: Imagine a world where nearly everyone wakes up each day inspired to go to work, feels safe while we're there, and returns home at the end of the day fulfilled by the work they do, feeling they've made a contribution to something greater than themselves. This is the world we envision. Thank you for joining us on the call today. I'll turn back to the operator and be happy to take any questions.

[Operator Instructions] Your first question comes from the line of Daniel Rizzo from Jefferies. Please proceed with your question.

Good afternoon, guys.

Hi, Daniel.

How are you? Can you tell me what the operating income is for the different regions do you break that out before the 10-K is distributed?

We have not.

Okay. And then you’ve indicated that the easy use spray was kind of a strong driver in the Americas or particularly in North America. I was wondering if you breaking out at this point with the percentage of sales of this what that’s really contributing to the overall growth.

No, we haven’t broken it out as an individual product line but we are very happy with its origin – initial launch and as we shared will be taking it out to a more global geographies over the next year, in particular we’ll start in Australia, we’re already in Canada and moving into Latin America and hopefully EMEA later on in the end of next year.

Okay, and that I'm sorry, you indicated there was an operating income windfall of what $0.12 per share in the quarter. Can you just go over what you said I missed what you say that came from exactly, I know it has something to do with FX but what exactly was it?

Well Jay, I’ll do that. Yes it from the revaluation the re-measurement of our balance sheets, our foreign subsidiary balance sheets that are their functional currencies are other than the U.S. dollar and as we remeasure them for reporting them in consolidation they generated losses.

Or excuse me gains.

And it was particularly caused by the Brexit exit and the massive reduction in the value of the pound against the U.S. dollar.

So it was – because of Brexit.

Okay, all right thank you for clarification.

Sure.

Our next question comes from the line of William Burks from Wunderlich. Please proceed with your question.

Thank you. Good afternoon Gary, good afternoon Jay.

Hey William.

Hey William.

Garry, you guided to 56% gross margin which is a little about above your longer term target presuming that oil prices or your input cost on oil remains flat. Where do you see the pickup in terms of margin? Gross margin?

Our plan for next year assumes oil will be in the $45 to $60 range. If it stays there in my are a member William, part of our gross margin enhancement strategy apart from some of the – you got from oil was developing products particularly in Specialist line and particularly also in areas of immunization like EZ-REACH and et cetera that would be margin positive. As the mix changes around that, you will see some of that embeds into place. We'd also see that Europe we have as Europe continues to stabilize, margins there again hold up. We feel reasonably comfortable that this margin number is pretty good, Jay.

Yes, that’s right Garry. In addition there's also an impact from currency, the current weekend sterling against the pound and the dollar, generates a higher gross margin in Europe, in our current period. And as we project forward if that stays at the same rates we would see that benefit accruing as well.

You noted that we got 120 basis points benefit in the quarter because of that.

Right. Garry you talked a lot about currency translations. You didn't talk about other headwinds in the business that would – revenue growth. Can you talk about anything that you are worried about in terms of slowing your plan and growing the revenue?

William we are very comfortable with the two major strategic drivers we have. Year-over-year if you broke out the impact of currency we grew our maintenance products revenue globally by about 5%. So our whole business is in we believe some – in very good condition. As long as we stay focused on strategic driver number one and number two which is grow the blue and yellow can more people more prices more uses more often and then deliberately working on leveraging the shield or specialist will be happy with that. We've also done some great work on 3-IN-ONE, you may have heard we are releasing a new range of recreational vehicle maintenance OpEx under the 3-IN-ONE brandthat we already have gain distribution on those it is a major distribution channels. So the business is in good shape. What could blow us off course? We still don't know what the recoveries going to be like in Eastern Europe. We had a bit of a comeback in Russia it seems to settle down but who knows. But we wake up every day knowing we live in this volatile uncertain complex world all of ambiguity but I think we've proven over the past years that in calm seas we sail okay and in rough seas we kind of do okay as well. So is a lot of confidence around our business right now, the tribe are in great shape and employee engagement is extremely high. They are passionate and up is driven so this is a great time to be at WD-40 company.

Great, thanks Garry, thanks Jay.

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.