Scott’s Liquid Gold Reports Third Quarter Loss

Scott’s Liquid Gold-Inc. which develops, manufactures and markets household and skin care products, today announced its operating results for the third quarter and first nine months of the year 2000. For the three months ended September 30, 2000, the Company reported a net loss of $135,300 on net sales of approximately $7.3 million. A year ago, the company reported net income of $226,300 and net sales of approximately $8.4 million, in the third quarter of 1999. At the same time, the company reported a 75% improvement in pretax income, which reached $601,300 in its most recent quarter, compared with pretax income of $342,900 in the prior-year period.

“We are pleased to report a 75% increase in pretax income for the most recent quarter,” stated Mark E. Goldstein, chairman and chief executive opfficer of Scott’s Liquid Gold-Inc. “We have also continued to maintain an effective cost-control program, as evidenced by the 5.1% decrease in general and administrative expenses during the third quarter, when compared with the prior-year period.”

For the nine months ended September 30, 2000, the company reported a net loss of $1,565,200, compared with a net loss of $1,974,200 last year. Net sales totaled $22.0 million in the first nine months of the current year, versus $25.9 million in the year-earlier period.

“We continue to address the decrease in sales of products in the alpha hydroxy acid category of skin care products through the introduction of new products which target ‘niche’ market opportunities,” continued Mr. Goldstein. “Our Neoteric Cosmetic subsidiary’s Diabetic Skin Care product has been very well received by consumers and the medical community. We introduced a new fade creme and oxygenated oil moisturizer during the first half of 2000, and new facial moisturizing cleanser and under-eye renewal treatment products are now being introduced.

“Products planned for shipment early in 2001 include a line of skin care products specifically designed for problems common to mature women called Alpha Radiance and a unique topical analgesic, RubOut, which helps fade the discoloration of bruises and eases the pain from muscle sprains, bruises and strains. Several of these new products utilize a patented oxygenated oil technology that increases blood circulation, collagen and new cell regeneration, and hydration renewal, while boosting the resiliency and clarity of the skin.

“In 1998, Scott’s Liquid Gold entered into an alliance with Laboratories Carilene of France, the developer of this technology, and we continue to identify Oniche” products which utilize Carilene’s patented TriOxygenC and Active Oxygen as active ingredients,” added Mr. Goldstein.