DENVER–Scott’s Liquid Gold-Inc. (OTC: SLGD) today announced operating results for the three months ended March 31, 2019.
“We saw slow sales in Q1, driven by both seasonality and challenging market conditions for our distributed products,” stated President and Chief Executive Officer Mark Goldstein. “Despite regulatory and tariff pressure on our China business, we did manage to grow our Alpha Skin Care brand during Q1.”
“Similar to last year, we expect our sales to increase over the remainder of 2019. We are highly focused on long-term sales growth, both through line extensions of our proven brands as well as continued success in our online sales initiatives. The team also continued to make solid progress in working capital improvement during the first quarter.”
Net sales for the three months ended March 31, 2019, decreased 8.4%, or $0.6 million, to approximately $6.8 million. Sales in the Skin and Hair Care segment decreased 7.8% as strong Alpha® Skin Care product sales were offset by a decrease in sales for both Batiste Dry Shampoo and 7th Heaven skin care products. Sales of Batiste were affected after a strong fourth quarter of 2018, and 7th Heaven products continue to face increased competition. Sales in the Household segment decreased 10.8% due to the discontinuation of our Touch of Scent® products. The decrease was also driven by increased competition facing our Scott’s Liquid Gold® Wood Care products.
Net Income and Earnings Per Share
Our net loss for the three months ended March 31, 2019 was $0.3 million compared to $0.2 million for the three months ended March 31, 2018. This resulted in a net loss per common share of $0.03 in the first quarter of 2019 compared to a net loss per share of $0.02 in the same period in 2018. The net loss increased primarily due to lower sales and was partially offset by reductions in advertising costs.
Cash flows from operating activities was $0.5 million for the three months ended March 31, 2019, as compared to cash flows used in operating activities of $0.1 million for the same period in 2018. Despite the decrease in net income, cash flow from operations improved due to our continued efforts to reduce inventories.
About Scott’s Liquid Gold-Inc.
Scott’s Liquid Gold-Inc. is an American manufacturing and distribution company with a strong belief that Made in America is something to be proud of. Over the last 65+ years we have developed a reputation for delivering high-quality, innovative products that consumers know and trust.
Our flagship product, Scott’s Liquid Gold® Wood Care, is a leader in its category and is known for bringing life back to and protecting all types of natural wood surfaces.
Scott’s Liquid Gold-Inc. also owns Neoteric Cosmetics, a skin and hair care company with a rich history of offering products that deliver high-quality, proven results that customers expect. Neoteric’s skin and hair care products are embraced and respected by both medical professionals and consumers alike and include brands such as Alpha® Skin Care, Prell®, and Denorex®. Neoteric Cosmetics is also the proud American distributor of 7th Heaven skin care products and the specialty channel distributor for Batiste Dry Shampoo.
Note Regarding Forward-Looking Statements
This news release may contain “forward-looking statements” within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” generally can be identified by the use of forward-looking terminology such as “assumptions,” “target,” “guidance,” “strategy,” “outlook,” “plans,” “projection,” “may,” “will,” “would,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” or “continue” (or the negative or other derivatives of each of these terms) or similar terminology.
Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent filings with the Securities and Exchange Commission.
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