The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Daniel Rizzo - Jefferies LLC - Analyst
: Hey guys, thank, thanks for taking my question. I just need a clarification. So when you guys gave, your initial guidance last year, that excluded the
home care sales, same thing as this year, but when you reported throughout the year, you reported including the home care care sales. Is that
correct?
Sara Hyzer - WD-40 Co - Chief Financial Officer, Vice President - Finance, Treasurer
Hi Daniel. Yes, so in the press release and in the 10Q you'll see those include them obviously because those are reported on a GAAP basis or USAP
basis. In the investor deck on every quarter we showed a pro forma view so that you could back out. Those sales, although you can easily see those
sales in our footnotes because we do break out the HCCP sales in both the Americas and the IAA regions, but the performer view went a step further
to take you all the way down in the P&L so you could actually see the impact down to EPS.
Question: Daniel Rizzo - Jefferies LLC - Analyst
: All right, sorry, I I just wanted clarification on that.
Question: Daniel Rizzo - Jefferies LLC - Analyst
: So then you mentioned that I said kind of a mixed headwind. I was wondering if you could provide color on that. I mean, I've assumed the
premiumization is kind of a mixed tailwind, but I was wondering what's kind of countering that that you pointed out in the gross margin.
Sara Hyzer - WD-40 Co - Chief Financial Officer, Vice President - Finance, Treasurer
Oh, on the gross margin from a tailwind for the year. Well.
Question: Daniel Rizzo - Jefferies LLC - Analyst
: I'm sorry, I was just looking what what exactly that is. Is that like, is that, I mean just going distributor versus direct or.
Sara Hyzer - WD-40 Co - Chief Financial Officer, Vice President - Finance, Treasurer
Or? It's a mix, so yes, it's a mix of both, how the markets play out, so direct and distributors, but then there is also a mix of products. So, communization's
into that, but also bulk and specialist and M, it's just a general product sales mix in addition to the market mix.
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