WD-40 COMPANY As used in this report, the terms "we," "our," and "us" refer to
The following information is provided as a supplement to, and should be read in
conjunction with, the unaudited condensed consolidated financial statements and
notes thereto included in Part I-Item 1 of this Quarterly Report and the audited
consolidated financial statements and notes thereto and Management's Discussion
and Analysis of Financial Condition and Results of Operations included in our
Annual Report on Form 10-K for the fiscal year ended
Use of Non-GAAP Constant Currency
In order to show the impact of changes in foreign currency exchange rates on our
results of operations, we have included constant currency disclosures, where
necessary, in the Overview and Results of Operations sections which follow.
Constant currency disclosures represent the translation of our current fiscal
year revenues, expenses and net income from the functional currencies of our
subsidiaries to
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. This report contains forward-looking statements, which reflect our current views with respect to future events and financial performance. These forward-looking statements are generally identified with words such as "believe," "expect," "intend," "plan," "could," "may," "aim," "anticipate," "target," "estimate" and similar expressions.
These forward-looking statements include, but are not limited to, discussions
about future financial and operating results, including: growth expectations for
maintenance products; expected levels of promotional and advertising spending;
anticipated input costs for manufacturing and the costs associated with
distribution of our products; plans for and success of product innovation, the
impact of new product introductions on the growth of sales; anticipated results
from product line extension sales; expected tax rates and the impact of tax
legislation and regulatory action; the length and severity of the current
COVID-19 pandemic and its impact on the global economy and our financial
results; changes in the political conditions or relations between
Actual events or results may differ materially from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I-Item 1A, "Risk Factors," in our Annual Report on
Form 10-K for the fiscal year ended
Overview
The Company
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products: WD-40® Multi-Use Product, WD-40 Specialist®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.
Our products are sold in various locations around the world. Maintenance
products are sold worldwide in markets throughout North, Central and
Highlights
The following summarizes the financial and operational highlights for our
business during the three months ended
?Consolidated net sales decreased
?Gross profit as a percentage of net sales increased to 51.4% compared to 50.8% for the corresponding period of the prior fiscal year primarily due to the positive impacts of price increases implemented over the last twelve months, offset by ongoing global supply chain challenges, including the increased cost of raw materials and constraints that began during the COVID-19 pandemic. These ongoing challenges have resulted in increased inflation rates globally. See the Impact of COVID-19 on Our Business section which follows for details, including actions the Company continues to take in response to these challenges.
?Consolidated net income decreased
?Diluted earnings per common share were
Our strategic initiatives and the areas where we will continue to focus our time, talent and resources in future periods include: (i) building a business for the future; (ii) attracting, developing and engaging outstanding tribe members; (iii) striving for operational excellence; (iv) growing WD-40 Multi-Use Product; (v) growing WD-40 Specialist product line; and (vi) expanding and supporting portfolio opportunities that help us grow.
Significant Developments
Impact of COVID-19 on Our Business
Our financial results and operations continue to be impacted by the COVID-19 pandemic that began during our fiscal year 2020. The ongoing COVID-19 pandemic has impacted global economies, the rate of inflation, supply chains, distribution networks and consumer behavior around the world. We have experienced both favorable and unfavorable impacts to our financial results and our operations as a result of the direct and indirect effects of the COVID-19 pandemic. For example, sales have been negatively impacted at varying times in the regions in which we operate due to health and safety restrictions
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required by local governmental authorities. Such restrictions continue to
sporadically impact various regions, particularly in certain countries within
our
In addition, global supply chain issues have resulted in increased raw material
costs and other input costs, higher competition for freight resources, and labor
constraints within manufacturing and distribution networks. This inflationary
environment started to negatively impact our gross margin and financial results
in fiscal year 2021 and these trends have continued to increase our cost of
goods sold since that time. Some of the supply chain challenges that we have
experienced in recent fiscal years include general aerosol production capacity
constraints and competition for such capacity by other companies who also
utilize third-party manufacturers for their aerosol production. These challenges
have periodically resulted in us not being able to meet demand for our products
by customers and end-users in certain markets at various times. We have
continued to actively manage periodic supply chain constraints and
transportation disruptions and implement various initiatives with our existing
third-party manufacturers as well as identifying and onboarding new third-party
manufacturers, particularly in the
To offset the unfavorable impact of increased costs to our gross margin, price increases have been implemented across all of our markets and geographies in fiscal year 2022 and in the first fiscal quarter of 2023 and we intend to implement further price increases in certain regions for the remainder of fiscal year 2023. Although we are seeing the favorable impacts of these price increases, sales volumes are often impacted unfavorably in the short term as customers and end users adjust to increased sales prices. The severity and duration of the COVID-19 pandemic and its effects on our supply chain, changes in end-user demand and the current inflationary environment remain uncertain and it is not possible to estimate the extent to which these conditions will impact our financial results and operations in future periods.
See our risk factors disclosed in Part I-Item 1A, "Risk Factors," in our Annual
Report on Form 10-K for the fiscal year ended
The Impact of Russian Military Action in
On
As a result of this conflict, commodity markets remain subject to heightened
levels of uncertainty, especially as they relate to the price of crude oil,
which increased significantly in the immediate aftermath of the sanctions
against
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in crude oil prices unfavorably impact the cost of our products, as well as the cost of the transportation and distribution of our products. The length and severity of the recent increases in the price of crude oil are highly unpredictable and may unfavorably impact our cost of goods sold for as long as these conditions exist.
Results of Operations
Three Months Ended
2021
Operating Items
The following table summarizes operating data for our consolidated operations (in thousands, except percentages and per share amounts):
Three Months Ended November 30,
Change from
?Prior Year
2022 2021 Dollars Percent
Net sales:
Maintenance products $ 116,312 $ 126,030 $ (9,718) (8)%
HCCP (1) 8,581 8,716 (135) (2)%
Total net sales 124,893 134,746 (9,853) (7)%
Cost of products sold 60,638 66,276 (5,638) (9)%
Gross profit 64,255 68,470 (4,215) (6)%
Operating expenses 45,576 44,410 1,166 3%
Income from operations $ 18,679 $ 24,060 $ (5,381) (22)%
Net income $ 13,997 $ 18,555 $ (4,558) (25)%
EPS - diluted $ 1.02 $ 1.34 $ (0.32) (24)%
Shares used in diluted EPS 13,609 13,752 (143) (1)%
(1)Homecare and cleaning products ("HCCP")
The following table summarizes net sales by segment (in thousands, except
percentages):
Three Months Ended November 30,
Change from
?Prior Year
2022 2021 Dollars Percent
Americas $ 58,014 $ 56,288 $ 1,726 3%
EMEA 40,772 57,555 (16,783) (29)%
Asia-Pacific 26,107 20,903 5,204 25%
Total $ 124,893 $ 134,746 $ (9,853) (7)%
?
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Americas Sales
The following table summarizes net sales by product line for theAmericas segment, which includes theU.S. ,Canada andLatin America (in thousands, except percentages): Three Months Ended November 30, Change from ?Prior Year 2022 2021 Dollars Percent Maintenance products$ 53,571 $ 51,984 $ 1,587 3% HCCP 4,443 4,304 139 3% Total$ 58,014 $ 56,288 $ 1,726 3% % of consolidated net sales 46% 42% CC Net sales - non-GAAP (1)$ 58,179 $ 56,288 $ 1,891 3% Currency impact on current period - non-GAAP$ (165)
(1)Current fiscal year constant currency ("CC") net sales translated at the foreign currency exchange rates in effect for the corresponding period of the prior fiscal year, compared to prior period actual net sales.
Increases in the average selling price of our products positively impacted net
sales by approximately
Americas Sales - Three Months Ended -
Net sales of maintenance products in the
?
?
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Net sales of homecare and cleaning products in the
?The favorable impact of price increases and the improvement in the capacity and flexibility of our supply chain, which were partially offset by lower demand for certain brands from period to period. ?While each of our homecare and cleaning products have continued to generate positive cash flows, we have generally experienced flat or slightly decreased sales for many of these products in recent periods.
For the three months ended
EMEA Sales
The following table summarizes net sales by product line for the EMEA segment, which includesEurope , theMiddle East ,Africa andIndia (in thousands, except percentages): Three Months Ended November 30, Change from ?Prior Year 2022 2021 Dollars Percent Maintenance products$ 38,729 $ 55,443 $ (16,714) (30)% HCCP 2,043 2,112 (69) (3)% Total (1)$ 40,772 $ 57,555 $ (16,783) (29)% % of consolidated net sales 33% 43% CC Net sales - non-GAAP (2)$ 48,787 $ 57,555 $ (8,768) (15)%
Currency impact on current period - non-GAAP
(1)While our reporting currency is the
Increases in the average selling price of our products positively impacted net
sales by approximately
The countries and regions in
?
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EMEA Sales - Three Months Ended -
Net sales decreased in the EMEA segment primarily due to the following:
Direct Markets - EMEA (70% of net sales QTD FY2023 vs 63% QTD FY2022)
?Sales in our direct markets decreased$7.7 million , or 21%, primarily due to unfavorable changes in foreign currency exchanges rates of$5.7 million as a result of the weakening of the Pound Sterling, the functional currency of ourU.K. subsidiary, against theU.S. Dollar. ?Direct market sales also decreased due to lower levels of customer orders of maintenance products inFrance , Iberia,Germany ,Italy and theUnited Kingdom , partially offset by the favorable impact of price increases from period to period. ?In most direct markets, these volume decreases were due to reduced demand compared to the prior period, driven by weaker market and economic conditions as well as a lower level of customer orders and promotional programs as customers adjust to these price increases implemented in late fiscal year 2022 and first quarter of fiscal year 2023.
Marketing Distributors - EMEA (30% of net sales QTD FY2023 vs 37% QTD FY2022)
?Distributor market sales decreased$9.1 million , or 43%, in EMEA markets wherein we utilize a marketing distributor model ("distributor markets"), in which products are sold to marketing distributors who in turn sell to wholesalers and retailers. ?Sales inRussia decreased$5.0 million from period to period due to the ongoing effects of the Russian military action inUkraine . See The Impact of Russian Military Action inUkraine described in the "Significant Developments" section above for further information regarding the suspension of our sales to Russian markets. ?In addition, sales in our distributor markets were unfavorably impacted by$2.3 million due to the weakening of the Pound Sterling, the functional currency of ourU.K. subsidiary, against theU.S. Dollar. However, this unfavorable impact to sales in distributor markets was partially offset by the favorable impacts of certain sales denominated in currencies other than the Pound Sterling, which strengthened against the Pound Sterling from period to period. ?Sales in distributor markets also decreased due to lower sales volumes of maintenance products in most distributor markets, particularlyPoland andIndia , which were down$1.1 million and$1.0 million , respectively. ?The decreases in distributor market sales were partially offset by price increases implemented over the last twelve months.
Asia-Pacific Sales
The following table summarizes net sales by product line for the
Three Months Ended November 30,
Change from
?Prior Year
2022 2021 Dollars Percent
Maintenance products $ 24,012 $ 18,603 $ 5,409 29%
HCCP 2,095 2,300 (205) (9)%
Total $ 26,107 $ 20,903 $ 5,204 25%
% of consolidated net sales 21% 15%
CC Net sales - non-GAAP (1) $ 27,469 $ 20,903 $ 6,566 31%
Currency impact on current
period - non-GAAP $ (1,362) (1)Current fiscal year constant currency ("CC") net sales translated at the foreign currency exchange rates in effect for the corresponding period of the prior fiscal year, compared to prior period actual net sales.
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Increases in the average selling price of our products positively impacted net
sales by approximately
Asia-Pacific Sales - Three Months Ended -
Net sales in the
?
Gross Profit
The following general information regarding the timing and nature of our product costs is important when assessing fluctuations in our gross margin from period to period:
?There is often a delay of one quarter or more before changes in costs of raw materials, such as specialty chemicals used in the formulation of our products, impact cost of products sold due to production and inventory life cycles; ?In general, the timing of advertising, promotional and other discounts may cause fluctuations in gross margin from period to period. Advertising, promotional and other discounts that are given to our customers are recorded as a reduction to sales, whereas advertising and sales promotional costs associated with promotional activities that we pay to third parties are recorded as advertising and sales promotion expenses; ?In the EMEA segment, the majority of our cost of goods sold is denominated in Pound Sterling whereas sales are generated in Pound Sterling, Euro and theU.S. Dollar. The strengthening or weakening of the Euro andU.S. Dollar against the Pound Sterling may result in foreign currency related changes to the gross margin percentage in the EMEA segment from period to period; and ?Our gross profit and gross margin may not be comparable to those of other consumer product companies, since some of these companies include all costs related to distribution of their products in cost of products sold, whereas we exclude the portion associated with amounts paid to third parties for shipment to our customers from our distribution centers and contract manufacturers and include these costs in selling, general and administrative expenses. These costs totaled$4.2 million and$4.8 million for the three months endedNovember 30, 2022 and 2021, respectively. ?For further information pertaining to recent trends and economic conditions affecting gross margin, please see the section titled "Significant Developments". ? 25
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The following table summarizes gross margin and gross profit (in thousands, except percentages):
Three Months Ended November 30,
Change from
2022 2021 ?Prior Year
Gross profit $ 64,255 $ 68,470 $ (4,215)
Gross margin 51.4% 50.8% 60 bps (1)
(1)Basis points ("bps") change in gross margin.
Gross Margin - Three Months Ended -
Gross margin increased 60 bps primarily due to the following favorable impacts, partially offset by unfavorable impacts:
Favorable/(Unfavorable) Explanations
860 bps Sales price increases implemented in all three segments at
varying times during the last twelve months.
90 bps Changes in foreign currency exchange rates in the EMEA
segment.
60 bps Favorable sales mix and other miscellaneous mix impacts
(360) bps Higher costs of aerosol cans.
(330) bps Higher costs of specialty chemicals used in the
formulation of our products.
(120) bps Increases in miscellaneous other input costs.
(100) bps Higher filling fees paid to our third-party contract
manufacturers, primarily in the Americas segment.
(80) bps Higher warehousing, distribution and freight costs
associated with supply chain constraints as a result of
the ongoing COVID-19 pandemic, the worsening inflationary
environment and initiatives to increase production
capacity while these constraints exist.
Selling, General and Administrative ("SG&A") Expenses
Three Months Ended November 30,
Change from
?Prior Year
(in thousands) 2022 2021 Dollars Percent
SG&A expenses $ 39,984 $ 38,423 $ 1,561 4%
% of net sales 32.0% 28.5%
SG&A Expenses - Three Months Ended -
The increase in SG&A expenses was primarily due to increases in travel and
meeting expense of
We continued our research and development investment, the majority of which is
associated with our maintenance products, in support of our focus on innovation
and renovation of our products. Research and development costs were
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manufacturers. The level and types of expenses incurred within research and development can vary from period to period depending upon the types of activities being performed.
Advertising and Sales Promotion ("A&P") Expenses
Three Months Ended November 30,
Change from
?Prior Year
(in thousands) 2022 2021 Dollars Percent
A&P expenses $ 5,339 $ 5,624 $ (285) (5)%
% of net sales 4.3% 4.2%
Although
As a percentage of net sales,
Income from Operations by Segment
The following table summarizes income from operations by segment (in thousands,
except percentages):
Three Months Ended November 30,
Change from
?Prior Year
2022 2021 Dollars Percent
Americas $ 12,772 $ 12,017 $ 755 6%
EMEA 6,283 14,213 (7,930) (56)%
Asia-Pacific 9,617 7,302 2,315 32%
Unallocated corporate (9,993) (9,472) (521) (6)%
Total $ 18,679 $ 24,060 $ (5,381) (22)%
Americas
Americas Operating Income - Three Months Ended -
Income from operations for the
?
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EMEA
EMEA Operating Income - Three Months Ended -
Income from operations for the EMEA segment decreased to
Asia-Pacific Operating Income - Three Months Ended -
Income from operations for the
Non-Operating Items
The following table summarizes non-operating income and expenses for our consolidated operations (in thousands):
Three Months Ended November 30,
2022 2021 Change
Interest income $ 44 $ 25 $ 19
Interest expense $ 1,169 $ 620 $ 549
Other income (expense), net $ 150 $ (329) $ 479
Provision for income taxes $ 3,707 $ 4,581 $ (874)
Interest Income
Interest income was not significant during the three months ended
Interest Expense
Interest expense increased
Other Income (Expense), Net
Other income (expense), net was not significant during the three months ended
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Provision for Income Taxes
The provision for income taxes was 20.9% and 19.8% of income before income taxes
for the three months ended
Net Income
Net income was
Performance Measures and Non-GAAP Reconciliations
In managing our business operations and assessing our financial performance, we supplement the information provided by our financial statements with certain non-GAAP performance measures. These performance measures are part of our current 55/30/25 business model, which includes gross margin, cost of doing business, and earnings before interest, income taxes, depreciation and amortization ("EBITDA"), the latter two of which are non-GAAP performance measures. Cost of doing business is defined as total operating expenses less amortization of definite-lived intangible assets, impairment charges related to intangible assets and depreciation in operating departments, and EBITDA is defined as net income before interest, income taxes, depreciation and amortization. We target our gross margin to be at or above 55% of net sales, our cost of doing business to be at 30% of net sales, and our EBITDA to be at or above 25% of net sales. Results for these performance measures may vary from period to period depending on various factors, including economic conditions and our level of investment in activities for the future such as those related to quality assurance, regulatory compliance, and intellectual property protection in order to safeguard our WD-40 brand. Our financial results and operations continue to be impacted by increased global supply chain constraints and an inflationary environment, both of which have significantly lowered our gross margin percentage over the last twelve months and moved us well below our target of 55%. Although we have been implementing strategic sales price increases across all segments at varying times in response to increased costs, it will take time before the full impact of these sales price increases are reflected in our reported results. In addition, it is difficult to determine how long these supply chain and inflationary conditions will exist and if they will worsen or improve over time. However, the targets for gross margin and these other performance measures are long-term in nature and we expect to make progress towards achieving them over time. For more detailed information pertaining to recent trends and economic conditions and the actions we are taking to respond to them, please see the section titled "Significant Developments".
The following table summarizes the results of these performance measures:
Three Months Ended November 30,
2022 2021
Gross margin - GAAP 51% 51%
Cost of doing business as a percentage
of net sales - non-GAAP 36% 32%
EBITDA as a percentage of net sales - non-GAAP (1) 17% 19%
(1)Percentages may not aggregate to EBITDA percentage due to rounding and because amounts recorded in other income (expense), net on our consolidated statement of operations are not included as an adjustment to earnings in the EBITDA calculation.
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We use the performance measures above to establish financial goals and to gain an understanding of our comparative performance from period to period. We believe that these measures provide our stockholders with additional insights into how we run our business. We believe these measures also provide investors with additional financial information that should be considered when assessing our underlying business performance and trends. These non-GAAP financial measures are supplemental in nature and should not be considered in isolation or as alternatives to net income, income from operations or other financial information prepared in accordance with GAAP as indicators of our performance or operations. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. Reconciliations of these non-GAAP financial measures to our financial statements as prepared in accordance with GAAP are as follows:
Cost of Doing Business (in thousands, except percentages)
Three Months Ended November 30,
2022 2021
Total operating expenses - GAAP $ 45,576 $ 44,410
Amortization of definite-lived intangible assets (253) (363)
Depreciation (in operating departments) (965) (1,098)
Cost of doing business $ 44,358 $ 42,949
Net sales $ 124,893 $ 134,746
Cost of doing business as a percentage
of net sales - non-GAAP 36% 32%
EBITDA (in thousands, except percentages)
Three Months Ended November 30,
2022 2021
Net income - GAAP $ 13,997 $ 18,555
Provision for income taxes 3,707 4,581
Interest income (44) (25)
Interest expense 1,169 620
Amortization of definite-lived intangible assets 253 363
Depreciation 1,643 1,623
EBITDA $ 20,725 $ 25,717
Net sales $ 124,893 $ 134,746
EBITDA as a percentage of net sales - non-GAAP 17% 19%
Liquidity and Capital Resources
Overview
Our financial condition and liquidity remain strong. Although there continues to be uncertainty related to the ongoing and anticipated impact of the COVID-19 pandemic and inflationary environment on our future results, we believe our efficient business model and the steps that we have taken position us to manage our business through the situation as it continues to develop. We continue to manage all aspects of our business including, but not limited to, monitoring our liquidity, the financial health of our customers, suppliers and other third-party relationships, implementing gross margin enhancement strategies and developing new opportunities for growth.
Our principal sources of liquidity are cash generated from operations and cash currently available from our existing unsecured revolving credit facility under the Credit Agreement with Bank of America. We use proceeds of the revolving credit facility
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primarily for our general working capital needs. We also hold borrowings under the Note Agreement. See Note 7 - Debt for additional information on these agreements.
We have historically held a balance of outstanding draws on our line of credit
in either
We believe that our future cash from domestic and international operations,
together with our access to funds available under our unsecured revolving credit
facility, will provide adequate resources to fund short-term and long-term
operating requirements, capital expenditures, dividend payments, acquisitions,
new business development activities and share repurchases. On
Cash Flows
The following table summarizes our cash flows by category for the periods presented (in thousands):
Three Months Ended November 30,
2022 2021 Change
Net cash provided by (used in) operating
activities $ 10,437 $ (947) $ 11,384
Net cash used in investing activities (1,300) (2,362) 1,062
Net cash used in financing activities (12,342) (21,937) 9,595
Effect of exchange rate changes on cash and
cash equivalents 2,244 (1,196) 3,440
Net decrease in cash and cash equivalents
Operating Activities
Net cash provided by operating activities was
Changes in our working capital, which increased net cash provided by operating activities was primarily attributable to decreases in trade accounts receivable balances during the first three months of the fiscal year compared to increases in trade accounts receivable during the first three months of the prior fiscal year. This was primarily due to a decrease in sales from
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period to period. In addition, net cash provided by operating activities increased due to lower earned incentive payouts in the first quarter of fiscal year 2023 compared to the same period of the prior fiscal year as well as decreases in other current assets from period to period primarily due to a lower income tax receivable balance, as well as lower deposits and miscellaneous prepaid expenses. These changes were partially offset by decreases in accounts payable and accrued liabilities balances during the first three months of the fiscal year compared to increases in accounts payable and accrued liabilities during the first three months of the prior fiscal year.
Investing Activities
Net cash used in investing activities decreased
Financing Activities
Net cash used in financing activities decreased
Effect of Exchange Rate Changes
All of our foreign subsidiaries currently operate in currencies other than the
Commercial Commitments
We have ongoing relationships with various third-party suppliers (contract manufacturers) that manufacture our products and third-party distribution centers which warehouse and ship our products to customers. The contract manufacturers maintain title and control of certain raw materials and components, materials utilized in finished products, and of the finished products themselves until shipment to our customers or third-party distribution centers in accordance with agreed upon shipment terms. Although we have definitive minimum purchase obligations in the contract terms with certain of our contract manufacturers, when such obligations have been included, they have either been immaterial or the minimum amounts have been such that they are well below the volume of goods that we have historically purchased. In addition, in the ordinary course of business, we communicate supply needs to our contract manufacturers based on orders and short-term projections, ranging from two to six months. We are committed to purchase the products produced by the contract manufacturers based on the projections provided.
Upon the termination of contracts with contract manufacturers, we obtain certain inventory control rights and are obligated to work with the contract manufacturer to sell through all product held by or manufactured by the contract manufacturer on our behalf during the termination notification period. If any inventory remains at the contract manufacturer at the termination date, we are obligated to purchase such inventory, which may include raw materials, components and finished goods. The amounts for inventory purchased under termination commitments have been immaterial.
In addition to the commitments to purchase products from contract manufacturers
described above, we may also enter into commitments with other manufacturers to
purchase finished goods and components to support innovation initiatives and/or
supply chain initiatives. As of
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Share Repurchase Plan
The information required by this item is incorporated by reference to Part I-Item 1, "Notes to Condensed Consolidated Financial Statements" Note 8 - Share Repurchase Plan, included in this report.
Dividends
On
Critical Accounting Policies and Estimates
Our discussion and analysis of our operating results and financial condition is
based upon our consolidated financial statements, which have been prepared in
accordance with generally accepted accounting principles in
Critical accounting policies are those that involve subjective or complex judgments, often as a result of the need to make estimates. The following areas all require the use of judgments and estimates: revenue recognition, accounting for income taxes and impairment of definite-lived intangible assets. Estimates in each of these areas are based on historical experience and various judgments and assumptions that we believe are appropriate. Actual results may differ materially from these estimates.
There have been no material changes in our critical accounting policies and
estimates from those disclosed in Part II-Item 7, "Management's Discussion and
Analysis of Financial Condition and Results of Operations," and Note 2 to our
consolidated financial statements contained in our Annual Report on Form
10-K for the fiscal year ended
Recently Issued Accounting Standards
There have been no recently issued accounting standards that will have a material impact on our consolidated financial statements and related disclosures.
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