Announces New 2020 Business Optimization and
Restructuring that Will Considerably Improve Profitability and Cash
Flow – Expected to generate $200-$230 Million in Annualized Cost
Reductions
Refinancing Commitment will Significantly
Improve Capital Structure by Refinancing Debt including 2021 Senior
Notes, Extending Maturities and Delivering New Funding for the
Business
Company Releases Preliminary Unaudited
Fourth Quarter and Full-Year 2019 Financial Results Showing
Year-Over-Year Growth in Operating Income and Profitability
Despite Continued Market Headwinds
Company to Host Conference Call Tomorrow,
March 10, 2020 at 8:30 a.m. EDT
Revlon, Inc. (NYSE: REV) (“Revlon” and together with its
subsidiaries, the “Company”) today announced two important steps
forward in strengthening the Company’s business, capital structure
and foundation for future growth. First, the Company executed an
agreement with Jefferies Finance LLC that will significantly
enhance the Company’s capital structure by refinancing the
Company’s Senior Notes due February 2021 and 2019 Term Loan, extend
the Company’s near-term maturities and deliver new funding for the
business.
Second, the Company announced a new Revlon 2020 Restructuring
Program that is expected to generate significant annualized cost
reductions of between $200 and $230 million by the end of 2022. The
goal of the 2020 Program is to build a stronger global business
operation, enhance the Company’s cost efficiency, and improve
operating margin to continue accelerating the growth in operating
income and profitability that the Company saw in 2019.
The Company also released preliminary and unaudited1 fourth
quarter and full-year 2019 financial results and will host a
conference call to discuss these significant milestones on March
10, 2020 at 8:30 a.m. EDT.
Revlon 2020 Restructuring Program and
Cost Reductions
Building upon the successful 2018 Optimization Program by which
the Company delivered $95 million of in-year cost reductions in
2019 ($125 million on an annualized basis), the Company is
implementing a new worldwide organizational restructuring designed
to reduce the Company’s selling, general and administrative
expenses, improve the Company’s gross profit and Adjusted EBITDA
and maximize productivity, cash flow and liquidity.
The new Revlon 2020 Restructuring Program is expected to deliver
in the range of approximately $200 million to $230 million of
annualized cost reductions by the end of 2022, with approximately
60% of these cost reductions to be realized from headcount
reductions occurring in 2020.
The Revlon 2020 Restructuring Program includes rightsizing the
organization and operating with more efficient workflows and
processes that the Company implemented during the 2018 Optimization
Program, such as streamlining support functions and distribution
activities. The leaner organizational structure is also expected to
improve communication flow and cross-functional collaboration,
leveraging more efficient business processes.
In 2020, the Company expects to realize approximately $105
million to $115 million of in-year cost reductions and recognize
approximately $55 million to $65 million of total pre-tax
restructuring and related charges, consisting of employee-related
costs, such as severance, retention and other contractual
termination costs. In addition the Company expects restructuring
charges in the range of $65 million to $75 million to be charged
and paid in the period of 2021 to 2022. The Company expects that
substantially all of these restructuring charges will be paid in
cash generated by the business, with approximately $55 million to
$65 million of the total charges expected to be paid in 2020,
approximately $40 million to $45 million expected to be paid in
2021, with the balance expected to be paid in 2022.
Refinancing Agreement
The agreement reached with Jefferies to provide up to $850
million in new financing will be used to repay the 5.75% Senior
Notes maturing in 2021 ($500 million outstanding), repay the 2019
Term Loan ($200 million outstanding) and provide additional funding
for the Company. The Company plans to close the refinancing
transaction in the second quarter.
Strategic Alternatives
Review
The company also continues to work with Goldman Sachs on the
strategic alternatives process which remains focused on exploring
potential options for our portfolio and regional brands.
1See "Notices to Investors" below in the footnotes to this
release.
Preliminary 2019 Fourth Quarter and
Full Year Financial Results
The Company also released preliminary and unaudited financial
results for the fourth quarter and full-year 2019 described
below:2
- As Reported net sales were $699.4 million in the fourth quarter
of 2019, compared to $741.6 million during the prior-year period, a
decline of 5.7%. On a constant currency basis, net sales decreased
4.8% driven primarily by net sales declines in the Fragrances and
Revlon segments, partially offset by net sales growth in the
Elizabeth Arden segment. As Reported net sales includes the
negative impact of $13.2 million of excessive coupon redemptions
that remain in dispute with a single U.S. mass retailer. Excluding
this impact, net sales on a constant currency basis declined
3.0%.
- As Reported operating income improved to $76.7 million in the
fourth quarter of 2019, compared to $32.2 million during the
prior-year period. The higher operating income was driven by $30.0
million in lower selling, general and administrative expenses due
primarily to cost reductions related to the Company's 2018
Optimization Program and a benefit from the prior-year
non-recurring accelerated amortization related to Pure Ice brand
intangible assets, a $26.6 million gain on the divestiture of
certain regional brands and a $18.0 million benefit from prior-year
non-recurring goodwill impairment charge, partially offset by lower
gross profit margin. Adjusted operating income improved 13.7% to
$73.2 million from $64.4 million in the prior-year period.
- As Reported net income improved to $25.8 million in the fourth
quarter of 2019 versus a $70.3 million net loss in the prior-year
period. The higher net income was driven primarily by the $44.5
million improvement in operating income described above, a $41.9
million improvement in the benefit from income taxes driven
primarily by a non-cash release of a foreign valuation allowance
and a $16.0 million favorable foreign currency impact versus the
prior-year period, partially offset by higher interest
expense.
- Adjusted EBITDA(a) in the fourth quarter of 2019 was $111.9
million which included the impact of $9.8 million of tariffs and
$1.3 million of negative foreign exchange. Excluding these items,
Adjusted EBITDA decreased $6.0 million, or approximately 5%, versus
prior-year.
"The refinancing commitment and the launch of the new
restructuring program are significant steps forward in the
transformation of our business for the future and create a
structure that is designed for success in today’s beauty industry.
The Revlon 2020 Restructuring Program is expected to create a
stronger global business operations model, enhance cost efficiency,
and improve operating and profit margins to continue accelerating
the growth in operating income and Adjusted EBITDA that we
generated in 2019. With an improved capital structure, increased
liquidity, and more efficient and streamlined business, I am more
confident than ever in our ability to take on the opportunities
within our industry and continue to deliver for our key
stakeholders, global customers and most importantly our deeply
dedicated consumers," said Debra Perelman, President and CEO of
Revlon.
2 The results discussed include the following measures: U.S.
GAAP (“As Reported”); and non-GAAP (“Adjusted”), which excludes
certain Non-Operating Items and EBITDA Exclusions (as defined in
Footnote (a)) from As Reported results. See footnote (a) for
further discussion of the Company’s Adjusted measures.
Reconciliations of As Reported results to Adjusted results are
provided as an attachment to this release. In addition, where
indicated, the Company analyzes and presents its results excluding
the impact of foreign currency translation (“XFX”). Unless
otherwise noted, the discussion is presented on an As Reported
basis.
Fourth Quarter 2019
Results
Total Company Results
In calculating Adjusted results, adjustments were made for the
Non-Operating Items and the EBITDA Exclusions in the case of
Adjusted EBITDA, in each case as described in footnote (a).
Three Months Ended December 31,
(Unaudited)
2019
2018
As Reported
Adjusted (*)
(USD millions, except per share data)
As Reported
Adjusted (*)
As Reported
Adjusted (*)
% Change
% Change
Net Sales
$
699.4
$
712.6
$
741.6
$
743.0
(5.7)
%
(4.1)
%
Gross Profit
397.9
411.9
431.8
435.8
(7.9)
%
(5.5)
%
Gross Margin
56.9
%
57.8
%
58.2
%
58.7
%
-130bps
-90bps
Operating Income
$
76.7
$
73.2
$
32.2
$
64.4
138.2
%
13.7
%
Net Income (Loss)
25.8
23.6
(70.3)
(45.7)
136.7
%
151.6
%
Adjusted EBITDA
111.9
124.6
(10.2)
%
Diluted Loss per Common Share
$
0.49
$
0.44
$
(1.33)
$
(0.86)
136.8
%
151.2
%
(*) Refer to footnote (a) to this Earnings
Release for a discussion and reconciliation of our non-GAAP
measures, including Adjusted Net Sales, Adjusted Gross Profit,
Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted
EBITDA, Adjusted Net Income (Loss) and Adjusted Diluted Loss per
Common Share.
Segment
Results
The Company operates in four reporting segments: Revlon;
Elizabeth Arden; Portfolio; and Fragrances:
Revlon - The Revlon segment is
comprised of the Company's flagship Revlon brands. Revlon segment
products are primarily marketed, distributed and sold in the mass
retail channel, large volume retailers, chain drug and food stores,
chemist shops, hypermarkets, general merchandise stores, e-commerce
sites, television shopping, department stores, professional hair
and nail salons, one-stop shopping beauty retailers and specialty
cosmetic stores in the U.S. and internationally under brands such
as Revlon in color cosmetics; Revlon ColorSilk and
Revlon Professional in hair color; and Revlon in
beauty tools.
Elizabeth Arden - The Elizabeth Arden
segment is comprised of the Company's Elizabeth Arden branded
products. The Elizabeth Arden segment markets, distributes and
sells fragrances, skin care and color cosmetics primarily to
prestige retailers, department and specialty stores, perfumeries,
boutiques, e-commerce sites, the mass retail channel, travel
retailers and distributors, as well as direct sales to consumers
via its Elizabeth Arden branded retail stores and
elizabetharden.com e-commerce websites, in the U.S. and
internationally, under brands such as Elizabeth Arden Ceramide,
Prevage, Eight Hour, SUPERSTART, Visible Difference and Skin
Illuminating in the Elizabeth Arden skin care brands; and
Elizabeth Arden White Tea, Elizabeth Arden Red Door, Elizabeth
Arden 5th Avenue and Elizabeth Arden Green Tea in
Elizabeth Arden fragrances.
Portfolio - The Company’s Portfolio
segment markets, distributes and sells a comprehensive line of
premium, specialty and mass products primarily to the mass retail
channel, hair and nail salons and professional salon distributors
in the U.S. and internationally and large volume retailers,
specialty and department stores under brands such as Almay
and SinfulColors in color cosmetics; American Crew in
men’s grooming products (which are also sold direct-to-consumer on
its americancrew.com website); CND in nail polishes, gel
nail color and nail enhancements; Mitchum in anti-perspirant
deodorants; and Cutex in nail care products. The Portfolio
segment also includes a multi-cultural hair care line consisting of
Creme of Nature hair care products, which are sold in both
professional salons and in large volume retailers and other
retailers, primarily in the U.S.; and a hair color line under the
Llongueras brand (licensed from a third party) that is sold
in the mass retail channel, large volume retailers and other
retailers, primarily in Spain.
Fragrances - The Fragrances segment
includes the development, marketing and distribution of certain
owned and licensed fragrances, as well as the distribution of
prestige fragrance brands owned by third parties. These products
are typically sold to retailers in the U.S. and internationally,
including prestige retailers, specialty stores, e-commerce sites,
the mass retail channel, travel retailers and other international
retailers. The owned and licensed fragrances include brands such as
Juicy Couture (which are also sold direct-to-consumer on its
juicycouturebeauty.com website), Britney Spears, Elizabeth
Taylor, Curve, John Varvatos, Christina Aguilera, Giorgio
Beverly Hills, Ed Hardy, Charlie, Lucky Brand,
Paul Sebastian, Alfred Sung, Jennifer Aniston,
Mariah Carey, Halston, Geoffrey Beene and
AllSaints.
Three Months Ended December
31, (Unaudited)
Net Sales
As Reported
As Reported
(USD millions)
2019
2018
% Change
XFX % Change
Revlon
$
242.7
$
261.4
(7.2)
%
(6.2)
%
Elizabeth Arden
$
168.0
$
156.3
7.5
%
8.6
%
Portfolio
$
133.7
$
144.1
(7.2)
%
(5.9)
%
Fragrances
$
155.0
$
179.8
(13.8)
%
(13.4)
%
Total
$
699.4
$
741.6
(5.7)
%
(4.8)
%
Three Months Ended December
31, (Unaudited)
Segment Profit
As Reported
As Reported
(USD millions)
2019
2018
% Change
XFX % Change
Revlon
$
42.7
$
54.0
(20.9)
%
(19.8)
%
Elizabeth Arden
$
20.5
$
22.1
(7.2)
%
(5.9)
%
Portfolio
$
20.0
$
13.7
46.0
%
48.2
%
Fragrances
$
28.7
$
34.8
(17.5)
%
(17.2)
%
Total
$
111.9
$
124.6
(10.2)
%
(9.1)
%
Revlon Segment
Revlon segment net sales in the fourth quarter of 2019 were
$242.7 million, a 7.2% (or 6.2% XFX) decrease compared to the
prior-year period. Excluding the impact of $13.2 million of
excessive coupon redemptions that remain in dispute, segment net
sales on a constant currency basis declined 1.1%. The segment's
lower net sales were driven primarily by lower net sales of Revlon
color cosmetics due to increased promotionality primarily in North
America, lower net sales of Revlon ColorSilk hair color due to
planned efforts to manage trade inventory levels, as well as
overall category declines.
Revlon segment profit in the fourth quarter of 2019 was $42.7
million, compared to $54.0 million in the prior-year period, driven
primarily by the segment's lower net sales and lower gross profit
margin.
Elizabeth Arden Segment
Elizabeth Arden segment net sales in the fourth quarter of 2019
were $168.0 million, a 7.5% (or 8.6% XFX) increase compared to the
prior-year period, driven by higher net sales of Elizabeth Arden
skin care products, including Ceramide and Prevage, primarily
internationally.
Elizabeth Arden segment profit in the fourth quarter of 2019 was
$20.5 million, compared to $22.1 million in the prior-year period,
primarily due to the segment's higher brand support and lower gross
profit margin, partially offset by higher net sales.
Portfolio Segment
Portfolio segment net sales of $133.7 million in the fourth
quarter of 2019 decreased by 7.2% (or 5.9% XFX) compared to the
prior-year period, driven primarily by the segment's lower net
sales of Mitchum products due to cycling against the prior year
re-filling of retailer inventories after the ERP-related decline in
customer service levels, partially offset by higher net sales of
American Crew and Creme of Nature products.
Portfolio segment profit in the fourth quarter of 2019 improved
to $20.0 million, compared to $13.7 million in the prior-year
period, primarily as a result of lower overhead costs and brand
support, as well as improved gross profit margin, partially offset
by lower segment net sales.
Fragrances Segment
Fragrances segment net sales of $155.0 million in the fourth
quarter of 2019 decreased by 13.8% (or 13.4% XFX) compared to the
prior-year period, driven primarily by the overall softness in the
U.S. mass fragrance category as well as the segment's lower net
sales of Juicy Couture and Elizabeth Taylor fragrances due in part
to door closures and timing of innovation, partially offset by
higher net sales of Christina Aguilera fragrances.
Fragrances segment profit in the fourth quarter of 2019 was
$28.7 million, compared to $34.8 million in the prior-year period,
primarily as a result of lower segment net sales and lower gross
profit margin, partially offset by lower brand support and
distribution costs.
Geographic Net Sales
Overall, As Reported total net sales decreased by 5.7%, (or 4.8%
XFX), as detailed below by segment for the Company's North America
and International Regions.
Three Months Ended December
31, (Unaudited)
(USD millions)
2019 As
Reported
2018 As
Reported
As Reported %
Change
As Reported XFX %
Change
Net Sales:
Revlon
North America
$
129.3
$
134.1
(3.6)
%
(3.6)
%
International
113.4
127.3
(10.9)
%
(9.0)
%
Elizabeth Arden
North America
$
36.5
$
39.4
(7.4)
%
(7.4)
%
International
131.5
116.9
12.5
%
13.9
%
Portfolio
North America
$
84.4
$
85.6
(1.4)
%
(1.4)
%
International
49.3
58.5
(15.7)
%
(12.5)
%
Fragrances
North America
$
110.8
$
129.0
(14.1)
%
(14.1)
%
International
44.2
50.8
(13.0)
%
(11.6)
%
Total Net Sales
$
699.4
$
741.6
(5.7)
%
(4.8)
%
Total Net Sales Summary
North America
$
361.0
$
388.1
(7.0)
%
(7.0)
%
International
338.4
353.5
(4.3)
%
(2.3)
%
Revlon Segment
In North America, Revlon segment net sales of $129.3 million in
the fourth quarter of 2019 decreased by 3.6% compared to the
prior-year period, driven primarily by lower net sales of Revlon
color cosmetics due to overall category declines, higher levels of
promotionality, as well as lower net sales of Revlon beauty tools
within the U.S. mass retail channel, partially offset by higher net
sales of Revlon hair care products and pipe fill to support first
quarter 2020 promotions.
In International, Revlon segment net sales of $113.4 million in
the fourth quarter of 2019 decreased by 10.9% (or 9.0% XFX)
compared to the prior-year period, driven primarily by the
segment's lower net sales of Revlon ColorSilk hair color due to
planned efforts to manage trade inventory levels, and Revlon color
cosmetics resulting from customer inventory management, partially
offset by growth in Asia fueled by the e-commerce launch of Revlon
color cosmetics in China.
Elizabeth Arden Segment
In North America, Elizabeth Arden segment net sales were $36.5
million in the fourth quarter of 2019, a decrease of 7.4% (or 7.4%
XFX) compared to the prior-year period, driven in large part by
decreased net sales of Elizabeth Arden fragrances, partially offset
by higher net sales of Ceramide skin care products.
In International, Elizabeth Arden segment net sales of $131.5
million in the fourth quarter of 2019 increased by 12.5% (or 13.9%
XFX) compared to the prior-year period, driven primarily by higher
net sales of skin care products within the Company's Travel Retail
business and in Asia, particularly in China.
Portfolio Segment
In North America, Portfolio segment net sales of $84.4 million
in the fourth quarter of 2019 decreased by 1.4% compared to the
prior-year period, driven primarily by lower net sales of Mitchum
anti-perspirant deodorants and CND nail products due to cycling
against the launch of Shellac Luxe during the prior-year period,
partially offset by higher net sales of American Crew products.
In International, Portfolio segment net sales of $49.3 million
in the fourth quarter of 2019 decreased by 15.7% (or 12.5% XFX)
compared to the prior-year period, due to cycling against the prior
year re-filling of retailer inventories after the ERP-related
decline in customer service levels, as well as lower net sales of
local and regional brands.
Fragrances Segment
In North America, Fragrances segment net sales of $110.8 million
in the fourth quarter of 2019 decreased by 14.1% (or 14.1% XFX)
compared to the prior-year period, driven primarily by lower net
sales of Juicy Couture and Elizabeth Taylor fragrances, partially
offset by higher net sales of Charlie fragrances.
In International, Fragrances segment net sales of $44.2 million
in the fourth quarter of 2019 decreased by 13.0% (or 11.6% XFX)
compared to the prior-year period, driven primarily by the
segment's lower net sales of Juicy Couture fragrances due to the
timing of innovation.
Cash Flow for the Full Year
Period
Net cash used in operating activities in 2019 was $68.3 million,
compared to $170.8 million in the prior-year period, driven by a
lower net loss and favorable working capital changes, as well as
one-time costs incurred in 2018 related to the remediation of the
Company's ERP implementation. Free cash flow(a) used in 2019 was
$97.3 million, compared to $228.0 million used in the prior-year
period, with the improvement driven by lower operating cash flow
usage and lower capital expenditures.
Liquidity Update
As of December 31, 2019, the Company had approximately $278.7
million of available liquidity, consisting of $104.3 million of
unrestricted cash and cash equivalents, as well as $157.7 million
in available borrowing capacity under the Amended 2016 Revolving
Credit Facility (which had $272.4 million drawn as of such date)
and $30.0 million in available borrowing capacity under the Amended
2019 Senior Line of Credit (which was undrawn as of such date),
less float of $13.3 million.
Full Year 2019
Results
- As Reported net sales were $2,419.6 million in 2019, compared
to $2,564.5 million during the prior-year period, a decline of
5.7%. On a constant currency basis, net sales decreased 3.5% driven
primarily by net sales declines in the Portfolio, Fragrances and
Revlon segments, partially offset by net sales growth in the
Elizabeth Arden segment.
- As Reported operating income improved to $60.7 million in 2019,
compared to a $85.2 million loss during the prior-year period. The
higher operating income was driven primarily by cost reductions
related to the Company's cost optimization initiatives, a $46.7
million benefit in gain on divested assets versus prior-year period
and lower integration and restructuring expenses, partially offset
by lower net sales.
- As Reported net loss decreased to $157.7 million in 2019 versus
a $294.2 million net loss in the prior-year period. The lower net
loss was driven primarily by the higher operating income described
above, partially offset by higher interest expense.
- Adjusted EBITDA(a) in 2019 was $266.1 million versus $237.9
million in 2018, an increase of 11.9% versus the prior-year
period.
Year Ended December 31,
(Unaudited)
2019
2018
As Reported
Adjusted (*)
(USD millions, except per share
data)
As Reported
Adjusted (*)
As Reported
Adjusted (*)
% Change
% Change
Net Sales
$
2,419.6
$
2,432.8
$
2,564.5
$
2,576.0
(5.7)
%
(5.6)
%
Gross Profit
1,367.4
1,385.6
1,447.5
1,501.5
(5.5)
%
(7.7)
%
Gross Margin
56.5
%
57.0
%
56.4
%
58.3
%
10bps
-130bps
Operating Income (loss)
$
60.7
$
95.1
$
(85.2)
$
43.5
171.2
%
118.6
%
Net Loss
(157.7)
(130.3)
(294.2)
(194.9)
46.4
%
33.1
%
Adjusted EBITDA
266.1
237.9
11.9
%
Diluted Loss per Common Share
$
(2.97)
$
(2.45)
$
(5.57)
$
(3.69)
46.7
%
33.6
%
(*) Refer to footnote (a) to this Earnings
Release for a discussion and reconciliation of our non-GAAP
measures, including Adjusted Net Sales, Adjusted Gross Profit,
Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted
EBITDA, Adjusted Net Income (Loss) and Adjusted Diluted Loss per
Common Share.
Year Ended December 31,
(Unaudited)
(USD millions)
2019 As Reported
2018 As Reported
As Reported % Change
As Reported XFX %
Change
Total Net Sales Summary
North America
$
1,225.7
$
1,354.2
(9.5)
%
(9.3)
%
International
1,193.9
1,210.3
(1.4)
%
3.1
%
Total Net Sales
$
2,419.6
$
2,564.5
(5.7)
%
(3.5)
%
Fourth Quarter 2019
Results Conference Call
The Company will host a conference call with members of the
investment community on March 10, 2020, at 8:30 a.m. EDT to discuss
its fourth quarter 2019 financial results. Access to the call is
available to the public at www.revloninc.com.
Footnotes to Press
Release
(a) Non-GAAP Financial
Measures: EBITDA; Adjusted EBITDA; Adjusted net sales;
Adjusted operating loss/income; Adjusted net income/loss; Adjusted
gross profit; Adjusted gross profit margin; Adjusted diluted loss
per common share and free cash flow (together, the “Non-GAAP
Measures”) are non-GAAP financial measures. See the reconciliations
of such Non-GAAP Measures to their most directly comparable GAAP
measures in the accompanying financial tables, to the extent not
otherwise directly reconciled in the Company’s financial
results.
The Company defines EBITDA as income from continuing operations
before interest, taxes, depreciation, amortization, gains/losses on
foreign currency fluctuations, gains/losses on the early
extinguishment of debt and miscellaneous expenses (the foregoing
being the “EBITDA Exclusions”). The Company presents Adjusted
EBITDA to exclude the EBITDA Exclusions, as well as the impact of
non-cash stock-based compensation expense and certain other
non-operating items that are not directly attributable to the
Company's underlying operating performance (the “Non-Operating
Items”). The following table identifies the Non-Operating Items
excluded in the presentation of Adjusted EBITDA for all
periods:
(USD millions)
Q4 2019
Q4 2018
Income Adjustments to EBITDA
(Unaudited)
Non-Operating Items:
Non-cash stock-based compensation
expense
$
0.4
$
2.4
Restructuring and related charges
3.1
8.3
Acquisition, integration and divestiture
costs
3.2
1.9
Financial control remediation actions and
related charges
3.6
—
Oxford ERP system disruption-related
charges
—
4.0
Impairment charges
—
18.0
(Gain) loss on divested assets
(26.6)
—
Excessive coupon redemptions in
dispute
13.2
—
(USD millions)
YTD 2019
YTD 2018
Income Adjustments to EBITDA
(Unaudited)
Non-Operating Items:
Non-cash stock-based compensation
expense
$
8.1
$
17.2
Restructuring and related charges
30.5
23.1
Acquisition, integration and divestiture
costs
3.9
13.9
Financial control remediation actions and
related charges
13.4
—
Oxford ERP system disruption-related
charges
—
53.6
Impairment charges
—
18.0
(Gain) loss on divested assets
(26.6)
20.1
Excessive coupon redemptions in
dispute
13.2
—
Adjusted net loss and adjusted diluted loss per common share
exclude the after-tax impact of the Non-Operating Items from As
Reported net loss.
The Company excludes the EBITDA Exclusions and Non-Operating
Items, as applicable, in calculating the Non-GAAP Measures because
the Company's management believes that some of these items may not
occur in certain periods, the amounts recognized can vary
significantly from period to period and/or these items do not
facilitate an understanding of the Company's underlying operating
performance.
Free cash flow is defined as net cash provided by/used in
operating activities, less capital expenditures for property, plant
and equipment. Free cash flow excludes proceeds on sale of
discontinued operations. Free cash flow does not represent the
residual cash flow available for discretionary expenditures, as it
excludes certain expenditures such as mandatory debt service
requirements, which for the Company are significant.
The Company's management uses the Non-GAAP Measures as operating
performance measures, and in the case of free cash flow, as a
liquidity measure (in conjunction with GAAP financial measures), as
an integral part of its reporting and planning processes and to,
among other things: (i) monitor and evaluate the performance of the
Company's business operations, financial performance and overall
liquidity; (ii) facilitate management's internal comparisons of the
Company's historical operating performance of its business
operations; (iii) facilitate management's external comparisons of
the results of its overall business to the historical operating
performance of other companies that may have different capital
structures and debt levels; (iv) review and assess the operating
performance of the Company's management team and, together with
other operational objectives, as a measure in evaluating employee
compensation, including bonuses and other incentive compensation;
(v) analyze and evaluate financial and strategic planning decisions
regarding future operating investments; and (vi) plan for and
prepare future annual operating budgets and determine appropriate
levels of operating investments.
Management believes that the Non-GAAP Measures are useful to
investors to provide them with disclosures of the Company's
operating results on the same basis as that used by management.
Management believes that the Non-GAAP Measures provide useful
information to investors about the performance of the Company's
overall business because such measures eliminate the effects of
certain charges that are not directly attributable to the Company's
underlying operating performance. Additionally, management believes
that providing the Non-GAAP Measures enhances the comparability for
investors in assessing the Company’s financial reporting.
Management believes that free cash flow is useful for investors
because it provides them with an important perspective on the cash
available for debt service and other strategic measures, after
making necessary capital investments in property and equipment to
support the Company's ongoing business operations, and provides
them with the same measures that management uses as the basis for
making resource allocation decisions.
Accordingly, the Company believes that the presentation of the
Non-GAAP Measures, when used in conjunction with GAAP financial
measures, are useful financial analytical measures that are used by
management, as described above, and therefore can assist investors
in assessing the Company's financial condition, operating
performance and underlying strength. The Non-GAAP Measures should
not be considered in isolation or as a substitute for their
respective most directly comparable As Reported financial measures
prepared in accordance with GAAP, such as net income/loss,
operating income/loss, diluted earnings/loss per share or net cash
provided by (used in) operating activities. Other companies may
define such non-GAAP measures differently. Also, while EBITDA and
Adjusted EBITDA, as used in this release, are defined differently
than Adjusted EBITDA for the Company's credit agreements and
indentures, certain financial covenants in its borrowing
arrangements are tied to similar financial measures. These non-GAAP
financial measures should be read in conjunction with the Company's
financial statements and related footnotes filed with the SEC.
(b) Segment profit is defined as income from continuing
operations for each of the Company's Revlon, Elizabeth Arden,
Portfolio and Fragrances segments, excluding the EBITDA Exclusions.
Segment profit also excludes the impact of certain items that are
not directly attributable to the segments' underlying operating
performance, including the impact of the Non-Operating Items noted
above in footnote (a). The Company does not have any material
inter-segment sales.
NOTICES TO
INVESTORS
UNAUDITED RESULTS: The Company expects to complete its
year-end audit procedures and file its Annual Report on Form 10-K
for the fiscal year ended December 31, 2019 with the SEC on or
about March 12, 2020. As the audit of the 2019 Form 10-K is yet to
be finalized, the Company’s results presented herein are
preliminary, unaudited and represent the most current information
available to the Company’s management. The preliminary unaudited
results included herein have been prepared by, and are the
responsibility of, the Company’s management. KPMG LLP, the
Company’s independent registered public accounting firm, has not
yet expressed an opinion or any other form of assurance with
respect to these financial results. The Company’s actual results
may differ from the preliminary results due to the completion of
the year-end financial closing procedures, review and audit and
final adjustments and other developments that may arise between the
date of this press release and the time that the Company files its
2019 Form 10-K with the SEC. Accordingly, all amounts in the press
release are approximates.
FORWARD-LOOKING
STATEMENTS
Statements made in this press release, which are not historical
facts, are forward-looking and are provided pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements speak only as of the date they
are made and the Company undertakes no obligation to publicly
update any forward-looking statement, whether to reflect actual
results of operations; changes in financial condition; changes in
general U.S. or international economic or industry conditions
and/or conditions in the Company’s reportable segments; changes in
estimates, expectations or assumptions; or other circumstances,
conditions, developments and/or events arising after the issuance
of this press release, except for the Company's ongoing obligations
under the U.S. federal securities laws. Forward-looking statements
are subject to known and unknown risks and uncertainties and are
based on preliminary or potentially inaccurate estimates and
assumptions that could cause actual results to differ materially
from those expected or implied by the estimated financial
information. Such forward-looking statements include, among other
things, (i) the Company’s plans: (A) to launch and consummate the
refinancing transactions with Jefferies (the “2020 Refinancing
Transactions”) and its belief that such transactions will
strengthen the Company’s business, capital structure and foundation
for future growth and significantly enhance the Company’s capital
structure by refinancing the Company’s Senior Notes due February
2021 and 2019 Term Loan, extend the Company’s near-term maturities
and deliver new funding for the business; (B) to use the proceeds
thereof to repay in full indebtedness outstanding under Products
Corporation’s 5.75% Senior Notes due February 2021 and Products
Corporation’s 2019 Term Loan Facility, to pay related fees and
expenses and to the extent of any excess, for general corporate
purpose; and (C) the expected terms and conditions of the 2020
Refinancing Transactions; (ii) the Company’s plans to begin the
process of implementing the Revlon 2020 Restructuring Program;
including its expectation and belief that the Revlon 2020
Restructuring Program will build a stronger global business
operation, enhance the Company’s cost efficiency, and improve
operating margin to continue accelerating the growth in operating
income and profitability that the Company saw in 2019, as well as
reduce the Company’s selling, general and administrative expenses,
as well as cost of goods sold, improve the Company’s gross profit
and Adjusted EBITDA and maximize productivity, cash flow and
liquidity, as well as rightsizing the organization and operating
with more efficient workflows and processes and that the leaner
organizational structure will improve communication flow and
cross-functional collaboration, leveraging the more efficient
business processes; (iii) the Company’s expectations regarding the
amount and timing of the restructuring charges and payments related
to the Revlon 2020 Restructuring Program, including that: (a) it
will recognize during 2020 approximately $55 million to $65 million
of total pre-tax restructuring and related charges and in addition
restructuring charges in the range of $65 million to $75 million to
be charged and paid in the period of 2021 to 2022; and (b)
substantially all of the 2020 Restructuring Charges will be paid in
cash generated by the business, with approximately $55 million to
$65 million of the total charges expected to be paid in 2020,
approximately $40 million to $45 million expected to be paid in
2021, with the balance expected to be paid in 2022; (iv) the
Company’s expectations that as a result of the Revlon 2020
Restructuring Program, the Company will deliver in the range of
$200 million to $230 million of annualized cost reductions by the
end of 2022, with approximately 60% of these annualized cost
reductions to be realized from the headcount reductions occurring
in 2020, including the Company’s expectations that during 2020, the
Company will realize approximately $105 million to $115 million of
in-year cost reductions; (v) the Company's plans to explore certain
strategic transactions pursuant to the Strategic Review. Actual
results may differ materially from the Company's forward-looking
statements for a number of reasons, including as a result of the
risks and other items described in Revlon’s filings with the SEC,
including, without limitation, in Revlon’s Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K and amendments thereto, if any, filed with the SEC during 2018
and 2019 (which may be viewed on the SEC’s website at
http://www.sec.gov or on Revlon, Inc.’s website at
http://www.revloninc.com). Additional important factors that could
cause actual results to differ materially from those indicated by
the Company’s forward-looking statements include: (i) difficulties,
delays or the inability of the Company to successfully complete the
2020 Refinancing Transactions, in whole or in part, greater than
anticipated costs in completing such transactions and/or
difficulties in using the proceeds of the 2020 Refinancing
Transactions as intended and/or less than expected benefits from
such transactions; (ii) difficulties, delays or the inability of
the Company to successfully complete the Revlon 2020 Restructuring
Program, in whole or in part, which could result in less than
expected operating and financial benefits from such actions; (iii)
higher than anticipated restructuring charges and/or payments
and/or changes in the expected timing of such charges and/or
payments; (iv) difficulties, delays or the inability of the Company
to realize, in whole or in part, the anticipated benefits from the
Revlon 2020 Restructuring Program, such as delays in completing the
Revlon 2020 Restructuring Program, which could reduce the benefits
realized from such activities and/or difficulties with, delays in
or the Company’s inability to generate certain reductions in its
selling, general and/or administrative expenses and/or eliminate
certain positions and/or changes in the timing of realizing such
benefits and/or less than anticipated annualized cost reductions
from the Revlon 2020 Restructuring Program and/or changes in the
timing of realizing such cost reductions, and/or more than expected
costs to achieve the expected cost reductions; and/or (v)
difficulties or delays that could affect the Company's ability to
consummate one or more transactions pursuant to the Strategic
Review, such as due to the Company's respective businesses
experiencing disruptions due to transaction-related uncertainty or
other factors. Factors other than those referred to above could
also cause Revlon’s results to differ materially from expected
results. Additionally, the business and financial materials and any
other statement or disclosure on, or made available through,
Revlon’s website or other websites referenced herein shall not be
incorporated by reference into this press release.
REVLON, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(dollars in millions, except
share and per share amounts)
Three Months Ended December
31,
Year Ended December
31,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Net sales
$
699.4
$
741.6
$
2,419.6
$
2,564.5
Cost of sales
301.5
309.8
1,052.2
1,117.0
Gross profit
397.9
431.8
1,367.4
1,447.5
Selling, general and administrative
expenses
343.4
373.4
1,316.6
1,460.5
Acquisition, integration and divestiture
costs
3.2
1.9
3.9
13.9
Restructuring charges and other, net
1.2
6.3
12.8
20.2
Impairment charges
—
18.0
—
18.0
(Gain) loss on divested assets
(26.6)
—
(26.6)
20.1
Operating income (loss)
76.7
32.2
60.7
(85.2)
Other expenses:
Interest expense
50.9
47.5
196.6
176.6
Amortization of debt issuance costs
4.2
3.9
14.6
13.0
Foreign currency (gains) losses, net
(10.9)
5.1
(1.9)
15.8
Miscellaneous, net
8.8
0.7
16.4
1.3
Other expenses
53.0
57.2
225.7
206.7
Income (loss) from continuing operations
before income taxes
23.7
(25.0)
(165.0)
(291.9)
Provision for income taxes
3.4
45.3
0.2
2.2
Income (Loss) from continuing operations,
net of taxes
20.3
(70.3)
(165.2)
(294.1)
Income (Loss) from discontinued
operations, net of taxes
5.5
—
7.5
(0.1)
Net income (loss)
$
25.8
$
(70.3)
$
(157.7)
$
(294.2)
Other comprehensive (loss) income:
Foreign currency translation
adjustments
(2.4)
2.9
(2.9)
(9.4)
Amortization of pension related costs, net
of tax
1.8
1.9
9.0
8.4
Pension re-measurement, net of tax
(19.3)
(5.5)
(19.3)
(5.5)
Reclassification into earnings of
accumulated losses from the de-designated 2013 Interest Rate Swap,
net of tax
—
—
—
0.7
Other comprehensive loss, net
(19.9)
(0.7)
(13.2)
(5.8)
Total comprehensive income (loss)
$
5.9
$
(71.0)
$
(170.9)
$
(300.0)
Basic and Diluted earnings (loss) per
common share:
Continuing operations
$
0.38
$
(1.33)
$
(3.11)
$
(5.57)
Discontinued operations
0.10
—
0.14
—
Net income (loss)
$
0.49
$
(1.33)
$
(2.97)
$
(5.57)
Weighted average number of common shares
outstanding:
Basic
53,153,033
52,856,448
53,081,321
52,797,686
Diluted
53,153,033
52,856,448
53,081,321
52,797,686
REVLON, INC. AND
SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE
SHEETS
(dollars in millions)
December 31,
December 31,
2019
2018
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
104.3
$
87.3
Trade receivables, net
423.4
431.3
Inventories
448.4
523.2
Prepaid expenses and other current
assets
135.3
152.0
Total current assets
1,111.4
1,193.8
Property, plant and equipment, net
408.6
354.5
Deferred income taxes
175.1
131.8
Goodwill
673.7
673.9
Intangible assets, net
490.7
532.0
Other assets
121.1
130.8
Total assets
$
2,980.6
$
3,016.8
LIABILITIES AND STOCKHOLDERS'
DEFICIENCY
Current liabilities:
Short-term borrowings
$
2.2
$
9.3
Current portion of long-term debt
288.0
348.1
Accounts payable
251.8
332.1
Accrued expenses and other current
liabilities
414.9
430.9
Total current liabilities
956.9
1,120.4
Long-term debt
2,906.2
2,727.7
Long-term pension and other
post-retirement plan liabilities
181.2
169.0
Other long-term liabilities
157.5
56.5
Total stockholders' deficiency
(1,221.2)
(1,056.8)
Total liabilities and stockholders'
deficiency
$
2,980.6
$
3,016.8
REVLON, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(dollars in millions)
Year Ended
December 31,
2019
2018
CASH FLOWS FROM OPERATING
ACTIVITIES:
(Unaudited)
Net loss
$
(157.7)
$
(294.2)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
162.9
177.2
Foreign currency (gains) losses from
re-measurement
(1.9)
15.8
Amortization of debt discount
1.6
1.4
Stock-based compensation amortization
8.1
17.2
Impairment charges
—
18.0
(Benefit from) provision for deferred
income taxes
(29.8)
1.7
Amortization of debt issuance costs
14.6
13.0
Non-cash loss (gain) on divested
assets
0.9
(0.7)
(Gain) loss on divested assets
(26.6)
20.1
Pension and other post-retirement cost
7.2
2.6
Change in assets and liabilities:
Decrease (increase) in trade
receivables
9.3
(0.3)
Decrease (increase) in inventories
74.5
(36.4)
Decrease (increase) in prepaid expenses
and other current assets
16.8
(42.8)
(Decrease) increase in accounts
payable
(73.2)
1.6
(Decrease) increase in accrued expenses
and other current liabilities
(42.4)
23.9
Pension and other post-retirement plan
contributions
(12.1)
(8.8)
Purchases of permanent displays
(46.2)
(80.7)
Other, net
25.7
0.6
Net cash used in operating activities
(68.3)
(170.8)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures
(29.0)
(57.2)
Proceeds from the sale of certain
assets
31.1
—
Net cash provided by (used in) in
investing activities
2.1
(57.2)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net decrease in short-term borrowings and
overdraft
(17.3)
(1.1)
Net (repayments) borrowings under the
Amended 2016 Revolving Credit Facility
(62.6)
178.0
Net borrowings under the 2019 Term Loan
Facility
200.0
—
Net borrowings under the 2018 Foreign
Asset-Based Term Loan
—
88.9
Repayments under the 2016 Term Loan
Facility
(18.0)
(18.0)
Payment of financing costs
(15.3)
(9.7)
Tax withholdings related to net share
settlements of restricted stock units and awards
(1.6)
(3.6)
Other financing activities
(0.9)
(1.4)
Net cash provided by financing
activities
84.3
233.1
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(1.1)
(5.0)
Net increase in cash, cash equivalents and
restricted cash
17.0
0.1
Cash, cash equivalents and restricted cash
at beginning of period
87.5
87.4
Cash, cash equivalents and restricted cash
at end of period
$
104.5
$
87.5
Supplemental schedule of cash flow
information:
Cash paid during the period for:
Interest
$
194.6
$
163.7
Income taxes, net of refunds
9.9
16.0
REVLON, INC. AND
SUBSIDIARIES
EBITDA AND ADJUSTED EBITDA
RECONCILIATION
(dollars in millions)
Three Months Ended December
31,
Year Ended December
31,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Reconciliation to net loss:
Net income (loss)
$
25.8
$
(70.3)
$
(157.7)
$
(294.2)
Loss from discontinued operations, net of
taxes
5.5
—
7.5
(0.1)
Income (loss) from continuing operations,
net of taxes
20.3
(70.3)
(165.2)
(294.1)
Interest expense, net
50.9
47.5
196.6
176.6
Amortization of debt issuance costs
4.2
3.9
14.6
13.0
Foreign currency (gains) losses, net
(10.9)
5.1
(1.9)
15.8
(Benefit from) provision for income
taxes
3.4
45.3
0.2
2.2
Depreciation and amortization
38.3
57.8
162.9
177.2
Miscellaneous, net
8.8
0.7
16.4
1.3
EBITDA
$
115.0
$
90.0
$
223.6
$
92.0
Non-operating items:
Non-cash stock-based compensation
expense
0.4
2.4
8.1
17.2
Restructuring and related charges
3.1
8.3
30.5
23.1
Acquisition, integration and divestiture
costs
3.2
1.9
3.9
13.9
Financial control remediation actions and
related charges
3.6
—
13.4
—
Oxford ERP system disruption-related
charges
—
4.0
—
53.6
Impairment charges
—
18.0
—
18.0
(Gain) loss on divested assets
(26.6)
—
(26.6)
20.1
Excessive coupon redemption in dispute
13.2
—
13.2
—
Adjusted EBITDA
$
111.9
$
124.6
$
266.1
$
237.9
REVLON, INC. AND
SUBSIDIARIES
SEGMENT PROFIT, ADJUSTED
EBITDA AND ADJUSTED OPERATING LOSS RECONCILIATION
(dollars in millions)
Three Months Ended December
31,
2019
2018
(Unaudited)
Segment Profit:
Revlon
$
42.7
$
54.0
Elizabeth Arden
20.5
22.1
Portfolio
20.0
13.7
Fragrances
28.7
34.8
Total Segment Profit/Adjusted EBITDA
$
111.9
$
124.6
Reconciliation to loss from continuing
operations before income taxes:
Income (loss) from continuing operations
before income taxes
$
23.7
$
(25.0)
Interest expense
50.9
47.5
Amortization of debt issuance costs
4.2
3.9
Foreign currency (gains) losses, net
(10.9)
5.1
Miscellaneous, net
8.8
0.7
Operating income (loss)
76.7
32.2
Non-operating items:
Restructuring and related charges
3.1
8.3
Acquisition, integration and divestiture
costs
3.2
1.9
Financial control remediation actions and
related charges
3.6
—
Oxford ERP system disruption-related
charges
—
4.0
Impairment charges
—
18.0
(Gain) loss on divested assets
(26.6)
—
Excessive coupon redemption in dispute
13.2
—
Adjusted Operating income (loss)
73.2
64.4
Non-cash stock-based compensation
expense
0.4
2.4
Depreciation and amortization
38.3
57.8
Adjusted EBITDA
$
111.9
$
124.6
REVLON, INC. AND
SUBSIDIARIES
SEGMENT PROFIT, ADJUSTED
EBITDA AND ADJUSTED OPERATING LOSS RECONCILIATION
(dollars in millions)
Year Ended December
31,
2019
2018
(Unaudited)
Segment Profit:
Revlon
$
101.2
$
129.6
Elizabeth Arden
37.6
24.4
Portfolio
45.0
7.9
Fragrances
82.3
76.0
Total Segment Profit/Adjusted EBITDA
$
266.1
$
237.9
Reconciliation to loss from continuing
operations before income taxes:
Loss from continuing operations before
income taxes
$
(165.0)
$
(291.9)
Interest expense
196.6
176.6
Amortization of debt issuance costs
14.6
13.0
Foreign currency (gains) losses, net
(1.9)
15.8
Miscellaneous, net
16.4
1.3
Operating income (loss)
60.7
(85.2)
Non-operating items:
Restructuring and related charges
30.5
23.1
Acquisition, integration and divestiture
costs
3.9
13.9
Financial control remediation actions and
related charges
13.4
—
Oxford ERP system disruption-related
charges
—
53.6
Impairment charges
—
18.0
(Gain) loss on divested assets
(26.6)
20.1
Excessive coupon redemption in dispute
13.2
—
Adjusted Operating income
95.1
43.5
Non-cash stock-based compensation
expense
8.1
17.2
Depreciation and amortization
162.9
177.2
Adjusted EBITDA
$
266.1
$
237.9
REVLON, INC. AND
SUBSIDIARIES
ADJUSTED NET SALES
RECONCILIATION
(dollars in millions)
Three Months Ended
December 31,
Year Ended December
31,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Segment Net Sales
Revlon
$
242.7
$
261.4
$
958.8
$
998.3
Elizabeth Arden
168.0
156.3
520.0
490.2
Portfolio
133.7
144.1
487.8
564.6
Fragrances
155.0
179.8
453.0
511.4
Total Segment Net Sales
$
699.4
$
741.6
$
2,419.6
$
2,564.5
Non-operating items:
Excessive coupon redemption in dispute
13.2
—
13.2
—
Oxford ERP system disruption-related
charges
—
1.4
—
11.5
Total Adjusted Net Sales
$
712.6
$
743.0
$
2,432.8
$
2,576.0
REVLON, INC. AND
SUBSIDIARIES
ADJUSTED GROSS PROFIT
RECONCILIATION
(dollars in millions)
Three Months Ended
December 31,
Year Ended December
31,
2019
2018
2019
2018
(Unaudited)
(Unaudited)
Gross Profit
$
397.9
$
431.8
$
1,367.4
$
1,447.5
Non-operating items:
Restructuring and related charges
0.8
—
5.0
0.4
Excessive coupon redemption in dispute
13.2
—
13.2
—
Oxford ERP system disruption-related
charges
—
4.0
—
53.6
Adjusted Gross Profit
$
411.9
$
435.8
$
1,385.6
$
1,501.5
REVLON, INC. AND
SUBSIDIARIES
ADJUSTED NET INCOME (LOSS) AND
ADJUSTED DILUTED INCOME (LOSS) PER SHARE RECONCILIATION
(dollars in millions, except
share and per share amounts)
Three Months Ended
December 31,
2019
2018
(Unaudited)
Reconciliation to net income (loss) and
diluted loss per share:
Net income (loss)
$
25.8
$
(70.3)
Non-operating items (after-tax):
Restructuring and related charges
2.4
6.6
Acquisition, integration and divestiture
costs
2.5
1.3
Financial control remediation actions and
related charges
2.8
—
Oxford ERP system disruption-related
charges
—
3.1
Impairment charges
—
13.6
(Gain) loss on divested assets
(20.0)
—
Excessive coupon redemption in dispute
10.1
—
Adjusted net income (loss)
$
23.6
$
(45.7)
Net income (loss):
Diluted income (loss) per common share
0.49
(1.33)
Adjustment to diluted income (loss) per
common share
(0.05)
0.47
Adjusted diluted earnings (loss) per
common share
$
0.44
$
(0.86)
U.S. GAAP weighted average number of
common shares outstanding:
Diluted
53,153,033
52,856,448
Year Ended December
31,
2019
2018
(Unaudited)
Reconciliation to net loss and diluted
loss per share:
Net loss
$
(157.7)
$
(294.2)
Non-operating items (after-tax):
Restructuring and related charges
24.0
18.8
Acquisition, integration and divestiture
costs
3.0
10.7
Financial control remediation actions and
related charges
10.3
—
Oxford ERP system disruption-related
charges
—
40.7
Impairment charges
—
13.6
(Gain) loss on divested assets
(20.0)
15.5
Excessive coupon redemption in dispute
10.1
—
Adjusted net loss
$
(130.3)
$
(194.9)
Net loss:
Diluted loss per common share
(2.97)
(5.57)
Adjustment to diluted loss per common
share
0.52
1.88
Adjusted diluted loss per common share
$
(2.45)
$
(3.69)
U.S. GAAP weighted average number of
common shares outstanding:
Diluted
53,081,321
52,797,686
REVLON, INC. AND
SUBSIDIARIES
FREE CASH FLOW
RECONCILIATION
(dollars in millions)
Year Ended December
31,
2019
2018
(Unaudited)
Reconciliation to net cash used in
operating activities:
Net cash used in operating activities
$
(68.3)
$
(170.8)
Less capital expenditures
(29.0)
(57.2)
Free cash flow
$
(97.3)
$
(228.0)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200309005815/en/
Investor Relations: 212-527-5230 or
Eric.warren@revlon.com
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