Scott’s Liquid Gold Announces Preliminary Revenue Results for Third Quarter – Sales Impacted by Covid-driven Shortages

Highlights:

• Estimated Q3’20 Net Sales of $7.0 to $7.5 compared to $7.2M in Q3’19
• Includes newly acquired Biz & Dryel Q3 sales estimate of $2.2M
• Core business sales impacted by pandemic driven raw material shortages

DENVER--(BUSINESS WIRE)--Scott’s Liquid Gold-Inc. (OTC: SLGD) today announced preliminary anticipated revenue results for its third quarter ended September 30, 2020, which were heavily impacted by Covid-19 driven shortages of raw materials.

The Company expects to report total revenues of $7.0 to $7.5 million. The third quarter revenues included an estimated $2.2 million of newly acquired Biz and Dryel products, and an anticipated decrease in the Company’s core business of an estimated $2.3M or 31.9%. These are anticipated results and actual results could differ from these estimates.

“While we are pleased with the initial performance of our new manufacturing and distribution partners, our base business sales decreased significantly in the third quarter,” said Mark Goldstein, CEO and Chairman. “We encountered key raw materials shortages, primarily for containers and caps, which were driven by the pandemic. These shortages impacted our ability to deliver product for virtually all of our brands. Reduced store traffic also drove lower Batiste sales during the quarter. Demand for our products remains strong and we are grateful for our long-standing relationships with our customers while our team is quickly adapting to this unprecedented situation.”

Kevin Paprzycki, CFO added, “We began seeing improvement in the availability of key materials in early October. While supply issues remain, at this point we are cautiously optimistic about stronger sales in the fourth quarter. This should allow us to resume cash generation and debt repayment. We also expect approximately $0.3 million of final supply chain transition costs and acquisition related expenditures to impact our third quarter results.”

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