Annual report pursuant to Section 13 and 15(d)

Concentration of Risk

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Concentration of Risk
12 Months Ended
Nov. 30, 2012
Concentration of Risk

NOTE 13 — CONCENTRATION OF RISK

Most of the Company’s products are sold to major drug and food chains merchandisers, and wholesale beauty-aids distributors throughout the United States and Canada.

During the years ended November 30, 2012, 2011 and 2010, certain customers each accounted for more than 5% of the Company’s net sales, as follows:

 

     For the Year Ended
November 30,
 

Customer

   2012     2011     2010  

Walmart

     35     36     41

Walgreen

     12     13     13

CVS

     9     7     5

Rite Aid

     8     5     *   

Foreign Sales

     4.5     4.5     4.4

 

* under 5%

The loss of any one of these customers could have a material adverse affect on the Company’s earnings and financial position.

During the years November 30, 2012, 2011 and 2010, certain products within the Company’s product lines accounted for more than 10% of the Company’s net sales as follows:

 

     For the Year Ended
November 30,
 

Category

   2012     2011     2010  

Skin Care

     30.9     31.2     30

Dietary Supplement

     18.3     26.0     33

Oral Care

     20.3     21.1     20

Nail Care

     26.6     14.5     10

The Company maintains cash balances at several banks. Non-interest bearing accounts at each institution are insured by the Federal Deposit Insurance Corporation for up to $250,000. In addition, the Company maintains accounts with two brokerage firms. The accounts contain cash and securities. Balances are insured up to $500,000 (with a limit of $100,000 for cash) by the Securities Investor Protection Corporation (SIPC). Each brokerage firm has substantial insurance beyond the $500,000 SIPC limit.