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  "docSlug": "6ceec0b99264",
  "documentTitle": "WD-40 Company (WDFC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-02 00:00:00",
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  "pageNumber": 39,
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  "nDataPoints": 14,
  "notes": "The slide highlights a contradiction between the company's strong financial position and its decision to draw down its entire credit facility.",
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      "kind": "callout",
      "text": "Something looks incredibly wrong with the magnitude of WD-40's recent full credit draw-down.",
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      "kind": "metric",
      "text": "Net Debt / EBITDA: 0.7x",
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      "kind": "paragraph",
      "text": "Something looks incredibly wrong with the magnitude of WD-40's recent full credit draw-down. WD-40's balance sheet still appears quite strong with Net Debt / EBITDA of just 0.7x. During the great financial crisis, WD-40 secured a $10m credit facility which it never had to use. Recently, WD-40 used 100% of an upsized $150m credit facility. To put this in perspective, the credit facility is 15x bigger despite sales and EBITDA having grown 33% and 90% respectively.",
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      "text": "In September 2008, we entered into an unsecured loan agreement for the aforementioned $10 million credit facility, which expires in October 2011. The proceeds of the new credit facility are available for general working capital purposes. The credit facility is currently undrawn. — WD-40 Company (2008 filing)",
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      "kind": "source-note",
      "text": "Source: Company filings. Note: WD-40 increased capex projections from $25m to $31m for 2020, but given historical operating cash flow of $60m+ per year and projected net income of $65-$66.2m, it shouldn't need such a high borrowing. 1) Excludes operating leases",
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      "text": "Comparison table of financial metrics between 2007-2010 and 2020.",
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      "kind": "title",
      "text": "A Hole Appears In WD-40's Balance Sheet",
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