3 Q's earnings report , Prez comments on SGD's 4 Q and 1999
" September 23, 12:18 Eastern Time
DENVER (Oct. 23) BUSINESS WIRE -Oct. 23, 1998--Scott's Liquid Gold-Inc. (NYSE: SGD), which develops, manufactures and markets household and skin care products, today reported operating results
for the third quarter and first nine months of its 1998 fiscal year.
During the quarter ended September 30, 1998, the Company's net sales totaled $9.2 million, versus net
sales of $12.8 million in the third quarter of 1997. A net loss of $342,600 ($0.03 per share) was recorded
in the most recent quarter, compared with net income of $1,217,700 ($0.12 per share) in the quarter
ended September 30, 1997.
Net sales of $31.8 million for the nine months ended September 30, 1998 compared with net sales of
$39.0 million in the corresponding period of the previous fiscal year. Approximately 95% of the
year-to-year decline in nine-month revenues was attributable to lower sales of the Company's Alpha
Hydrox skin care products. Net sales of Scott's Liquid Gold wood cleaners and preservatives rose about
19%, while net sales of Touch of Scent air fresheners declined by approximately 29%, during the first
nine months of 1998. The Company reported a net loss of $2,707,500 ($0.27 per share) for the nine
months ended September 30, 1998, versus net income of $2,170,600 ($0.21 per diluted share) in the
prior-year period.
"Although we were disappointed with the lack of profitability during the first nine months of 1998, a
number of recent and upcoming accomplishments should impact operating results in the future," stated
Mark E. Goldstein, President and Chief Executive Officer of Scott's Liquid Gold-Inc. "Our new Alpha
Hydrox Retinol Night ResQ skin care product was introduced during the third quarter, and we have been
very encouraged with orders from retailers and initial sales to consumers at the retail level. If these trends
continue, the new retinol product should prove to be an excellent addition to our Alpha Hydrox skin care
line.
"The launch of our Belleza Latina products did not benefit third quarter results, but we expect this new
product line to generate considerable excitement within the Hispanic niche of the skin care market,"
continued Goldstein. "Belleza Latina products will be arriving in retail stores during the next several
weeks, and we expect to roll out a targeted advertising program beginning in November and continuing
into early next year in a number of regional markets.
"Delays involving our new products designed to help diabetics cope with cuts, bruises and dry skin
problems have now been resolved, and shipments of such products are expected to begin in February
1999. Many diabetics in the United States suffer from dry skin problems on a daily basis. We have
developed a marketing strategy which focuses upon healthcare providers that are closely involved with the
diabetic population.
"Finally, sales of our trademarked Scott's Liquid Gold wood cleaner and preservative line have increased
significantly in recent quarters. While the benefits of greater sales have been offset by higher advertising
expenses this year, we expect the profitability of our wood cleaners and preservatives to improve in 1999
as higher levels of consumer awareness allow advertising costs to decline," concluded Goldstein.
Scott's Liquid Gold-Inc. develops, manufactures and markets high quality household products, including
Scott's Liquid Gold, a wood cleaner and preservative, Touch of Scent air fresheners, and Alpha Hydrox
skin care products. The Company is headquartered in Denver, Colorado and its common stock is listed
on the New York Stock Exchange under the ticker symbol "SGD".
This press release may contain "forward-looking" statements within the meaning of U. S. federal
securities laws. These statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements and the Company's performance
inherently involve risks and uncertainties that could cause actual results to differ from such
forward-looking statements. Factors that would cause or contribute to such differences include, but are
not limited to, continued acceptance of the Company's products in the marketplace; acceptance in the
marketplace of the Company's new product lines; competitive factors; the need for effective advertising of
the Company's products; limited resources available for such advertising; new product introductions by
others; technological changes; dependence upon third-party vendors and upon sales to major customers;
changes in the regulation of the Company's products, including applicable environmental regulations; year
2000 issues; adverse developments in pending litigation; the loss of any executive officer; and other risks
discussed in this release and in the Company's periodic report filings with the Securities and Exchange
Commission. By making these forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this release.
SCOTT'S LIQUID GOLD, INC.
and Consolidated Subsidiaries
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
Sept. 30, Sept. 30,
1998 1997
------------- -------------
Net Sales $ 9,240,200 $ 12,821,700
Income (Loss) Before
Taxes (543,900) 1,932,900
Provision (Benefit) For
Income Taxes (201,300) 715,200
------------- -------------
Net Income (Loss) $ (342,600) $ 1,217,700
============= =============
Net Income Per Share:
Basic $ ( 0.03) $ 0.12
============= ============= Diluted
$ (0
============= =============
Weighted Average Number
of Common Shares
Outstanding:
Basic 10,103,100 10,084,400
Diluted 10,103,100 10,244,200
Nine Months Ended
Sept. 30, Sept. 30,
1998 1997
------------- -------------
Net Sales $ 31,816,300 $ 39,000,300
Income (Loss) Before
Taxes (4,297,800) 3,445,300
Provision (Benefit) For
Income Taxes (1,590,300) 1,274,700
------------- -------------
Net Income (Loss) $ (2,707,500) $ 2,170,600
============= =============
Net Income Per Share:
Basic $ ( 0.27) $ 0.22
============= ============= Diluted
$ ( 0.
============= =============
Weighted Average Number
of Common Shares
Outstanding:
Basic 10,103,100 10,084,400
Diluted 10,103,100 10,244,200
flb/ny*
CONTACT: Scott's Liquid Gold-Inc.
Barry Shepard or Carolyn J. Anderson
303/373-4860
e-mail: barshep@earthlink.net
or
R.J. Falkner & Co. Inc.
R. Jerry Falkner, CFA, Investor Relations Counsel
800/377-9893
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Jim K. |
