Net income of $74,100 was recorded in the fourth quarter of 2003, versus net income of $1,143,500 in the prior-year fourth quarter. Net sales were approximated at $7.1 million in the quarter ended Dec. 31, 2003, compared with approximately $8 million in the year-earlier period.
“While we are reporting net income for the fourth quarter, this is tempered by the fact that we had a net loss for the year,” said Mark E. Goldstein, chairman and chief executive officer of Scott’s Liquid Gold Inc.
During 2003, “Our distribution and sale of the Montagne Jeunesse line of products continued to grow, while our household chemical products and other skin care products, other than the Montagne Jeunesse products, declined in sales over 2002.”
Mr. Goldstein blamed the decline on “the increase in advertising of both our household chemical products and alpha hydroxy skin care products, which did not result in increased sales of the products over 2002; other income in 2002 from the settlement of a lawsuit and an income tax refund in 2002.”
In addition, “We will be advertising (our household products) during the first quarter of 2004, and to a limited degree, a few cosmetic products,” Mr. Goldstein commented. “Because of this expense, as well as other factors, we will expect a loss for the first quarter of 2004.”