Executive Summary

Q4 2021 net sales were $8.9M, down 2% year over year (vs. $9.1M in Q4 2020), with brand growth in Alpha Skin Care, Denorex, and Batiste offset by declines in Scott’s Liquid Gold, Kids N Pets, and Prell .
Reported Q4 net loss was $7.3M, driven by $6.3M non-cash impairment of goodwill and intangibles and a $0.8M loss on sale of the Dryel brand; logistics and supply chain cost inflation persisted .
No quantitative guidance ranges were provided; management emphasized portfolio optimization (sale of Dryel to reduce net debt), cost reduction, and e-commerce innovation (new products launched on Amazon) .
Wall Street consensus estimates from S&P Global for SLGD were unavailable due to missing mapping; thus, no comparison vs. estimates is provided*.

What Went Well and What Went Wrong

What Went Well

Portfolio optimization progressed: Dryel sale in Q4 2021, with proceeds used to reduce net debt; Board continues to evaluate portfolio to maximize long-term value .
Focused brand innovation and channel execution: “We have positioned our highest potential brands for growth by focusing on innovation with new products recently launched on Amazon.” – Tisha Pedrazzini, President .
Continued brand momentum: FY growth aided by acquisitions (BIZ, Dryel) and organic growth in Alpha Skin Care and Denorex despite macro pressures .

What Went Wrong

Significant non-cash charges: $6.3M impairment of goodwill/intangibles in Q4 and $0.4M inventory impairment for the year .
Ongoing supply chain/logistics headwinds: Rising costs and shipping delays pressured gross profit and contributed to losses in Q4 .
Tax valuation allowance and restructuring impacts earlier in year: Q3 loss driven by $1.6M deferred tax asset valuation allowance and $0.4M inventory impairment ; Q2 loss impacted by $0.8M restructuring costs .

Financial Results

Quarterly Financial Summary

Metric	Q2 2021	Q3 2021	Q4 2021
Net Sales ($USD Millions)	$8.451	$8.555	$8.900
Net Income ($USD Millions)	$(1.066)	$(2.468)	$(7.300)
Diluted EPS ($USD)	$(0.08)	$(0.20)	N/A (not disclosed)
Gross Profit ($USD Millions)	$3.522	$3.142	N/A
Gross Margin %	41.7% (3.522/8.451)	36.7% (3.142/8.555)	N/A
Operating Income ($USD Millions)	$(1.273)	$(0.925)	N/A
Key Charges ($USD Millions)	Restructuring: $0.8	Inventory impairment: $0.4; DTA valuation allowance: $1.6	Goodwill/Intangibles impairment: $6.3; Dryel sale loss: $0.8

Note: Q4 2021 provided quarterly net sales and key charges but not a full quarterly P&L or EPS.

YoY Net Sales Comparison (same quarter prior year)

Metric	Q2 2020	Q2 2021	Q3 2020	Q3 2021	Q4 2020	Q4 2021
Net Sales ($USD Millions)	$6.083	$8.451	$7.197	$8.555	$9.100	$8.900
YoY Change (%)	+38.9%	—	+18.9%	—	−2.2%	—

QoQ Net Sales Trend

Metric	Q2 2021	Q3 2021	Q4 2021
Net Sales ($USD Millions)	$8.451	$8.555	$8.900
QoQ Change (%)	—	+1.2%	+4.0%

Balance Sheet KPIs (Quarter/Year-end)

KPI ($USD Millions)	Q2 2021	Q3 2021	Q4 2021
Inventories	$6.770	$6.639	$5.677
Accounts Receivable (net)	$4.723	$4.284	$3.516
Cash and Restricted Cash	$0.020	$0.012	$1.270
Total Debt (LT + Current)	$6.451 (LT) + $1.000 (Current)	$6.519 (LT) + $1.000 (Current)	$1.876 (LT) + $1.000 (Current)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2022	Not provided	Not provided	Maintained (no guidance)
Gross Margin	FY 2022	Not provided	Not provided	Maintained (no guidance)
OpEx	FY 2022	Not provided	Focus on reducing overhead and selling costs (directional only)	Directional commentary, no numeric range
Tax Rate	FY 2022	Not provided	Not provided	Maintained (no guidance)
Segment-Specific	FY 2022	Not provided	Not provided	Maintained (no guidance)
Capital Allocation	FY 2022	Not provided	Proceeds from Dryel sale used to reduce net debt	New action (no numeric range)

Earnings Call Themes & Trends

Note: An earnings call transcript for Q4 2021 was not found in our corpus; themes below are synthesized from company press releases for Q2–Q4 2021.

Topic	Previous Mentions (Q2 2021)	Previous Mentions (Q3 2021)	Current Period (Q4 2021)	Trend
Supply chain & logistics	Shortages of cans/components; inflationary costs; back in stock on major products	Continued logistics cost increases and product delays	Continued rising manufacturing and distribution costs; shipping delays	Persistent headwind
Pricing & cost actions	Fine-tuned pricing; reducing selling and G&A; improve working capital	Operational improvements and stabilizing inventory	Reduced overhead; simplified supply chain/3PL	Ongoing efficiency focus
Portfolio optimization	—	Monetizing brands misaligned with strategy considered	Sold Dryel; proceeds reduced net debt; ongoing portfolio evaluation	Active rationalization
E-commerce & innovation	Plans to drive awareness; fall campaigns	Accelerating e-commerce conversion; modernizing packaging	New products launched on Amazon	Strengthening
Financing/liquidity	Revolver utilization; operating cash use	New $2M loan with La Plata; amended UMB agreement	Year-end cash/restricted cash $1.27M; debt reduced	Stabilizing/deleveraging
Impairments	—	Inventory impairment $0.4M	Goodwill/intangible impairment $6.3M; inventory impairment $0.4M FY	Elevated in Q4

Management Commentary

“In 2021, we continued to face supply chain disruptions that impacted sales and increased logistics costs… We have positioned our highest potential brands for growth by focusing on innovation with new products recently launched on Amazon.” – Tisha Pedrazzini, President .
“One of our key strategic priorities has been evaluating and optimizing Scott’s portfolio of brands… sale of the Dryel brand, the proceeds of which we used to reduce net debt.” – Dan Roller, Chairman .
Q3 tone emphasized operational initiatives: “Actions to improve operating performance, reduce costs, stabilize inventory levels, implement pricing initiatives… accelerating conversion in the e-commerce channel.” – Tisha Pedrazzini .
Q2 focus on transition year and brand acceleration via messaging, packaging, and go-to-market strategies; efficiency actions amid inflationary backdrop – Tisha Pedrazzini and Kevin Paprzycki .

Q&A Highlights

No Q4 2021 earnings call transcript was available in our corpus; therefore, Q&A details and any in-call guidance clarifications cannot be provided.

Estimates Context

S&P Global Wall Street consensus estimates for SLGD (EPS and revenue) for Q4 2021 and prior quarters were unavailable due to missing CIQ mapping; as a result, we cannot assess beats/misses vs. consensus at this time*.
Given the magnitude of Q4 non-cash impairments and Dryel sale loss, any prior estimates would likely have required downward revisions to reported EPS; future estimate adjustments may hinge on the pace of cost inflation relief and portfolio optimization .

Key Takeaways for Investors

Q4 revenue held at ~$8.9M but mix was uneven; core skin and hair brands grew while legacy brands declined, with supply chain and logistics cost inflation persisting .
The $6.3M impairment and $0.8M Dryel sale loss drove a large reported loss; these are predominantly non-cash/one-time and reflect revised forecasts and portfolio actions .
Portfolio rationalization is an active lever: Dryel sale proceeds used to reduce net debt; continued evaluation could unlock value or reduce complexity .
Operational discipline remains central: management is reducing overhead, simplifying supply chain/3PLs, and pushing e-commerce innovation (Amazon launches) to drive brand momentum .
Balance sheet improved on year-end cash/restricted cash and lower debt, while inventories normalized from mid-year peaks, supporting working capital progress .
Without explicit guidance or consensus estimates*, near-term stock drivers likely hinge on demonstrable margin stabilization, cost pass-through effectiveness, and brand growth execution .
Watch for continued logistics cost moderation, additional brand portfolio actions, and e-commerce traction as catalysts to reshape the earnings power .

Footnote: *Estimates unavailable; values normally retrieved from S&P Global Capital IQ.

Scott's Liquid Gold - Inc. (SLGD)·Q4 2021 Earnings Summary