Company Remains On-Track with Transformative
Revlon 2020 Restructuring Program and Continues to Realize
Significant Cost Reductions
Quarterly Results Reflect Strong Cost
Containment Measures to Offset Top-Line COVID-19 Impacts
Revlon, Inc. (NYSE: REV) today announced its results for the
quarter ended June 30, 2020.
Quarter ended June 30, 2020 summary developments:1
- As Reported net sales were $347.6 million in the second quarter
of 2020, compared to $570.2 million during the prior-year period, a
decline of 39.0%. E-commerce net sales increased approximately 58%
versus the prior-year period and represented approximately 18% of
second quarter 2020 net sales, versus approximately 7% in the
prior-year period. As Reported net sales include approximately $214
million of estimated negative impacts associated with COVID-19.
Excluding the COVID-19 impacts, net sales on a constant currency
basis were essentially flat compared to the prior-year period.
- As Reported operating loss increased to $58.8 million in the
second quarter of 2020, compared to a $9.4 million operating loss
during the prior-year period. The higher operating loss was driven
primarily by the lower net sales due to COVID-19 as described
above, $19.8 million of non-cash intangible impairment charges
reflecting the financial impacts of COVID-19, $17.5 million of
higher restructuring charges primarily related to the Revlon 2020
Restructuring Program and lower gross profit margin, driven
primarily by unfavorable sales mix, negative foreign exchange, as
well as higher manufacturing overhead absorption costs associated
with COVID-19. These negative impacts were partially offset by
$136.2 million in lower selling, general and administrative
expenses, driven in part by cost reductions associated with the
Company's restructuring programs and additional actions
specifically implemented to mitigate the adverse impact of COVID-19
on the Company's operating results. Adjusted operating income in
the second quarter of 2020 increased by $3.0 million to $7.9
million from $4.9 million in the prior-year period.
- As Reported net loss increased to $126.8 million in the second
quarter of 2020, versus a $63.7 million net loss in the prior-year
period. The higher net loss was driven primarily by the higher
operating loss described above and $13.1 million in higher interest
expense, partially offset by a $8.7 million improvement in the
benefit from income taxes.
- Adjusted EBITDA(a) in the second quarter of 2020 was $45.4
million versus $47.0 million in the prior-year period, with the
decrease driven primarily by COVID-19 related lower net sales,
partially offset by lower SG&A expenses and improved adjusted
gross profit margin.
- As of June 30, 2020, the Company had total liquidity of $415.7
million.
"Although our business faced significant headwinds in the second
quarter of 2020 as result of the ongoing global COVID-19 pandemic,
we took aggressive steps to mitigate these effects, which enabled
us to greatly reduce the pandemic’s impact to our profitability in
the quarter. As a result, our Adjusted EBITDA declined a modest 3%
versus the prior-year quarter. We continue to deliver against the
objectives of our Revlon 2020 Restructuring Program, which include
rightsizing our organization to drive improved profitability, cash
flow and liquidity. We are managing the business to conserve cash
and liquidity, as well as focusing on stabilizing the business,
growing e-commerce and preparing the foundation for our future
growth. The Exchange Offer that was announced on July 27, 2020 is
consistent with this strategy to protect our liquidity during this
uncertain time in the world and in our industry. Despite
COVID-related business impacts, we continue to see pockets of
resiliency in our business, including a strong 58% growth in
e-commerce in the quarter. With our new streamlined operations and
lower cost base, we are confident that Revlon is positioned to
continue to serve our consumers and customers and drive value for
all our stakeholders,” said Debra Perelman, Revlon's President and
Chief Executive Officer.
1 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.
Second Quarter 2020
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 June 30,
(Unaudited)
2020
2019
As Reported
Adjusted (*)
(USD millions, except per share data)
As Reported
Adjusted (*)
As Reported
Adjusted (*)
% Change
% Change
Net Sales
$
347.6
$
347.6
$
570.2
$
570.2
(39.0)
%
(39.0)
%
Gross Profit
179.0
201.5
326.3
329.3
(45.1)
%
(38.8)
%
Gross Margin
51.5
%
58.0
%
57.2
%
57.8
%
-570bps
20bps
Operating (Loss) Income
$
(58.8)
$
7.9
$
(9.4)
$
4.9
(525.5)
%
61.2
%
Net Loss
(126.8)
(83.6)
(63.7)
(52.8)
(99.1)
%
(58.3)
%
Adjusted EBITDA
45.4
47.0
(3.4)
%
Diluted Loss per Common Share
$
(2.37)
$
(1.56)
$
(1.20)
$
(0.99)
(97.5)
%
(57.6)
%
(*) Refer to footnote (a) to this Earnings
Release for a discussion and reconciliation of the Company's
non-GAAP measures, including Adjusted Net Sales, Adjusted Gross
Profit, Adjusted Gross Profit Margin, Adjusted Operating Income
(Loss), Adjusted Net Income (Loss), Adjusted EBITDA 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 June
30, (Unaudited)
Net Sales
As Reported
As Reported
(USD millions)
2020
2019
% Change
XFX % Change
Revlon
$
135.0
$
251.5
(46.3)
%
(45.1)
%
Elizabeth Arden
80.9
117.4
(31.1)
%
(29.6)
%
Portfolio
88.5
118.7
(25.4)
%
(23.5)
%
Fragrances
43.2
82.6
(47.7)
%
(46.6)
%
Total
$
347.6
$
570.2
(39.0)
%
(37.6)
%
Three Months Ended June
30, (Unaudited)
Segment Profit
As Reported
As Reported
(USD millions)
2020
2019
% Change
XFX % Change
Revlon
$
12.3
$
25.6
(52.0)
%
(52.3)
%
Elizabeth Arden
10.8
2.7
N.M.
N.M.
Portfolio
14.5
6.1
137.7
%
137.7
%
Fragrances
7.8
12.6
(38.1)
%
(37.3)
%
Total
$
45.4
$
47.0
(3.4)
%
(3.0)
%
Revlon Segment
Revlon segment net sales in the second quarter of 2020 were
$135.0 million, a $116.5 million or 46.3% (45.1% XFX) decrease
compared to the prior-year period, with COVID-19 contributing an
estimated $115 million ($116 million XFX) to the decrease. The
segment's lower net sales were driven primarily by Revlon color
cosmetics, as well as lower international net sales of
Revlon-branded professional products and Revlon ColorSilk hair
color products, due primarily to the continuing effects of COVID-19
on the mass retail channel and on salon activity. This decrease was
partially offset by higher net sales of Revlon-branded beauty tools
and hair color products in North America.
Revlon segment profit in the second quarter of 2020 was $12.3
million, compared to $25.6 million in the prior-year period, driven
primarily by the segment's lower net sales and lower gross profit
margin, partially offset by lower brand support.
Elizabeth Arden Segment
Elizabeth Arden segment net sales in the second quarter of 2020
were $80.9 million, a $36.5 million or 31.1% (29.6% XFX) decrease
compared to the prior-year period, with COVID-19 contributing an
estimated $34 million ($35 million XFX) to the decrease. The lower
net sales were driven by certain Elizabeth Arden-branded skin care
products and color cosmetics and certain Elizabeth Arden-branded
fragrances due, in part, to the continuing effects of COVID-19 on
foot traffic at department stores and travel retail outlets,
partially offset by higher net sales of Ceramide skin care products
predominantly in the Asia region.
Elizabeth Arden segment profit in the second quarter of 2020 was
$10.8 million, compared to $2.7 million in the prior-year period,
primarily due to the segment's higher gross profit margin and lower
brand support, partially offset by the segment's lower net
sales.
Portfolio Segment
Portfolio segment net sales of $88.5 million in the second
quarter of 2020 decreased by $30.2 million, or 25.4% (23.5% XFX),
compared to the prior-year period, with COVID-19 contributing an
estimated $30 million ($31 million XFX) to the decrease. The
decrease in segment net sales was driven primarily by Almay color
cosmetics, American Crew men's grooming products and CND nail
products due, in part, to the continuing effects of COVID-19 on the
mass retail channel and salons, partially offset by higher net
sales of Cutex nail care products and Creme of Nature hair care
products, primarily in North America.
Portfolio segment profit in the second quarter of 2020 improved
to $14.5 million, compared to $6.1 million in the prior-year
period, driven by the segment's lower SG&A and brand support
expenses as a result of cost reductions achieved through the
Company's initiatives designed to mitigate the adverse impact of
COVID-19 on the Company's operating results, as well as the Revlon
2020 Restructuring Program, partially offset by the segment's lower
net sales and lower gross profit margin.
Fragrances Segment
Fragrances segment net sales of $43.2 million in the second
quarter of 2020 decreased by $39.4 million, or 47.7% (46.6% XFX),
compared to the prior-year period, with COVID-19 contributing an
estimated $34 million ($35 million XFX) to the decrease. The
segment's lower net sales were driven primarily by the continuing
impacts from COVID-19, especially in the prestige channel due to
temporary door closures.
Fragrances segment profit in the second quarter of 2020 was $7.8
million, compared to $12.6 million in the prior-year period,
primarily as a result of the segment's lower net sales, partially
offset by higher gross profit margin and lower SG&A and brand
support expenses, driven by cost reductions achieved through the
Company's initiatives designed to mitigate the adverse impact of
COVID-19 on the Company's operating results, as well as the Revlon
2020 Restructuring Program.
Geographic Net Sales
Overall, As Reported total net sales decreased by 39.0% (or
37.6% XFX) in the second quarter of 2020, compared to the
prior-year period, as detailed below by segment for the Company's
North America and International Regions.
Three Months Ended June
30, (Unaudited)
(USD millions)
2020 As
Reported
2019 As
Reported
As Reported %
Change
As Reported XFX %
Change
Net Sales:
Revlon
North America
$
80.1
$
134.7
(40.5)
%
(40.3)
%
International
54.9
116.8
(53.0)
%
(50.7)
%
Elizabeth Arden
North America
$
15.0
$
26.2
(42.7)
%
(42.7)
%
International
65.9
91.2
(27.7)
%
(25.8)
%
Portfolio
North America
$
52.1
$
73.0
(28.6)
%
(28.4)
%
International
36.4
45.7
(20.4)
%
(15.8)
%
Fragrances
North America
$
29.7
$
52.6
(43.5)
%
(43.5)
%
International
13.5
30.0
(55.0)
%
(52.0)
%
Total Net Sales
$
347.6
$
570.2
(39.0)
%
(37.6)
%
Total Net Sales Summary
North America
$
176.9
$
286.5
(38.3)
%
(38.1)
%
International
170.7
283.7
(39.8)
%
(37.2)
%
Revlon Segment
In North America, Revlon segment net sales of $80.1 million in
the second quarter of 2020 decreased by $54.6 million, or 40.5%
(40.3% XFX), compared to the prior-year period, with COVID-19
contributing an estimated $50 million ($50 million XFX) to the
decrease. The segment's lower net sales in North America were
primarily driven by lower net sales of Revlon color cosmetics, due
to the continuing effects of COVID-19 on the mass retail channel,
partially offset by higher net sales of Revlon-branded beauty tools
and hair-care products.
In International, Revlon segment net sales of $54.9 million in
the second quarter of 2020 decreased by $61.9 million, or 53.0%
(50.7% XFX), compared to the prior-year period, with COVID-19
contributing an estimated $65 million ($67 million XFX) to the
decrease, partially offset by continued strong growth in e-commerce
net sales. The lower International net sales were driven primarily
by Revlon color cosmetics, as well as lower net sales of
Revlon-branded professional hair-care products and Revlon ColorSilk
hair color products, within the Company's EMEA, Asia, Latin America
and Pacific regions, due to the continuing effects of COVID-19 on
the mass retail channel and salons.
Elizabeth Arden Segment
In North America, Elizabeth Arden segment net sales were $15.0
million in the second quarter of 2020, a decrease of $11.2 million,
or 42.7% (42.7% XFX), compared to the prior-year period, with
COVID-19 contributing an estimated $11 million ($11 million XFX) to
the decrease. The lower North America net sales were driven in
large part by the segment's lower net sales of certain Elizabeth
Arden-branded skin care and color cosmetics products, as well as
Elizabeth Arden-branded fragrances, due primarily to the continuing
effects of COVID-19 on foot traffic at department stores and other
retail outlets, partially offset by higher net sales of Ceramide
skin care products.
In International, Elizabeth Arden segment net sales of $65.9
million in the second quarter of 2020 decreased by $25.3 million,
or 27.7% (25.8% XFX), compared to the prior-year period, with
COVID-19 contributing an estimated $23 million ($24 million XFX) to
the decrease. The lower International net sales were driven by
certain Elizabeth Arden-branded skin care products and color
cosmetics products, as well as Elizabeth Arden-branded fragrances,
primarily within the Company's EMEA region due to the continuing
effects of COVID-19 on foot traffic at department stores and travel
retail outlets. This decrease was partially offset by higher net
sales of Elizabeth Arden-branded Ceramide skin care products and
Green Tea fragrances within the Company's Asia region.
Portfolio Segment
In North America, Portfolio segment net sales of $52.1 million
in the second quarter of 2020 decreased by $20.9 million, or 28.6%
(28.4% XFX), compared to the prior-year period, with COVID-19
contributing an estimated $21 million ($21 million XFX) to the
decrease. The lower North America net sales were driven by Almay
color cosmetics, CND nail products, American Crew men's grooming
products and Mitchum anti-perspirant deodorants, primarily due to
the continuing effects of COVID-19 on the mass retail channel and
salons. This decrease was partially offset primarily by higher net
sales of Cutex nail products and SinfulColors color cosmetics, as
well as Creme of Nature hair care products.
In International, Portfolio segment net sales of $36.4 million
in the second quarter of 2020 decreased by $9.3 million, or 20.4%
(15.8% XFX), compared to the prior-year period, with COVID-19
contributing an estimated $9 million ($10 million XFX) to the
decrease. The lower International net sales were driven primarily
by the segment's lower net sales of American Crew men's grooming
products, Mitchum anti-perspirant deodorants and Almay color
cosmetics, primarily in the Company's EMEA region, driven by the
continuing effects of COVID-19 on salons and the mass retail
channel, partially offset by continued strong growth in e-commerce
net sales.
Fragrances Segment
In North America, Fragrances segment net sales of $29.7 million
in the second quarter of 2020 decreased by $22.9 million, or 43.5%
(43.5% XFX), compared to the prior-year period, with COVID-19
contributing an estimated $22 million ($22 million XFX) to the
decrease. The segment's lower net sales in North America compared
to the prior year quarter were driven primarily by the continuing
impacts from COVID-19, especially in the prestige channel due to
temporary door closures.
In International, Fragrances segment net sales of $13.5 million
in the second quarter of 2020 decreased by $16.5 million, or 55.0%
(or 52.0% XFX), compared to the prior-year period, with COVID-19
contributing an estimated $13 million ($13 million XFX) to the
decrease. The segment's lower international net sales were due to
lower net sales of certain licensed fragrances primarily in the
Company's EMEA region, driven by the continuing impacts from
COVID-19 and retail door closures.
Cash Flow
Net cash used in operating activities in the first half of 2020
was $164.2 million, compared to $41.2 million in the prior-year
period. The increase in cash usage was driven primarily by the
COVID-related lower net sales. Free cash flow(a) used in the first
half of 2020 was $166.9 million, compared to $53.4 million used in
the prior-year period. The increase in free cash flow usage was
driven by higher operating cash flow usage, due in part to the
COVID-related impacts on the business, partially offset by lower
capital expenditures.
Liquidity Update
As of June 30, 2020, the Company had approximately $415.7
million of available liquidity, consisting of $338.5 million of
unrestricted cash and cash equivalents, as well as $50.7 million in
available borrowing capacity under the Amended 2016 Revolving
Credit Facility (which had $249.5 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 approximately $3.5 million.
As of July 31, 2020, the Company estimates that it had
approximately $392 million of available liquidity, consisting of
approximately $318 million of unrestricted cash and cash
equivalents, as well as $51 million in available borrowing capacity
under the Amended 2016 Revolving Credit Facility (which had $259
million drawn as of such date) and $30 million in available
borrowing capacity under the Amended 2019 Senior Line of Credit
(which was undrawn as of such date), less float of approximately $7
million.
Senior Notes Exchange
Offer
On July 27, 2020, Revlon, Inc.’s wholly owned operating
subsidiary, Revlon Consumer Products Corporation (“RCPC”),
commenced an offer to exchange (the “Exchange Offer”) any and all
of its outstanding 5.75% Senior Notes due 2021 (the “Existing
Notes”) for a combination of 5.75% Senior Notes due February 15,
2024 (the “New Notes”) and an Early Tender/Consent Fee, payable in
cash, upon the terms and conditions set forth in the confidential
Offering Memorandum and Consent Solicitation Statement provided to
holders of the Existing Notes (the “Offering Memorandum”), dated
July 27, 2020. The New Notes will be senior unsecured notes with
terms substantially the same as those of the Existing Notes, with
certain adjustments specified in the Offering Memorandum.
Concurrently with the Exchange Offer, the Company is soliciting
consents (the “Consent Solicitation”) to eliminate substantially
all of the restrictive covenants and certain events of default with
respect to the Existing Notes.
Unless earlier terminated or extended, the Exchange Offer will
expire at 11:59 p.m. E.D.T. on August 21, 2020. For each $1,000
principal amount of Existing Notes tendered into the Exchange Offer
and Consent Solicitation prior to the early tender deadline of 5:00
p.m. E.D.T. on August 7, 2020, holders of Existing Notes will
receive $750 principal amount of New Notes and $50 of cash as an
early tender/consent fee. Holders who tender their Existing Notes
after the early tender deadline will receive only $750 principal
amount of New Notes for each $1,000 principal amount of Existing
Notes tendered.
The Exchange Offer and Consent Solicitation are subject to the
following conditions precedent: (i) the valid tender without valid
withdrawal of not less than 95% of the aggregate outstanding
principal amount of Existing Notes (and the provision of the
related Consents for such tendered Existing Notes); (ii) the
receipt of all necessary consents from the lenders under the
Company’s term and revolving credit agreements required in order to
consummate the Exchange Offer and Consent Solicitation; (iii) the
receipt of requisite consents in the Consent Solicitation; and (iv)
various other customary conditions precedent. The conditions
precedent are for the sole benefit of the Company and may be
amended or waived, in whole or in part, at any time, in the sole
and absolute discretion of the Company, subject to applicable
law.
Second Quarter 2020
Results Conference Call
The Company will host a conference call with members of the
investment community today, August 6, 2020, at 8:30 A.M. EDT to
discuss its second quarter 2020 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)
Q2 2020
Q2 2019
Income Adjustments to EBITDA
(Unaudited)
Non-Operating Items:
Non-cash stock-based compensation
expense
$
1.1
$
3.4
Restructuring and related charges
22.3
9.9
Acquisition, integration and divestiture
costs
1.2
—
Loss on divested assets
(0.2)
—
Financial control remediation and
sustainability actions and related charges
5.7
4.4
Impairment charges
19.8
—
COVID-19 charges
17.9
—
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.
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 belief that it is continuing to deliver
against the objectives of our Revlon 2020 Restructuring Program,
which include rightsizing the Company’s organization to drive
improved profitability, cash flow and liquidity; (ii) the Company’s
belief that it is managing the business to conserve cash and
liquidity, as well as focusing on stabilizing its business, growing
e-commerce and preparing the foundation for the Company’s future
growth; (iii) the Company’s belief that despite COVID-related
business impacts, it continues to see pockets of resiliency in its
business, including a strong 58% growth in e-commerce in the
quarter; (iv) the Company’s belief that, with its new streamlined
operations and lower cost base, Revlon is positioned to continue to
serve its consumers and customers and drive value for all of its
stakeholders; (v) the Company’s plans to consummate the Exchange
Offer and refinance the 5.75% Senior Notes and its belief that the
Exchange Offer is consistent with the Company’s strategy to protect
its liquidity during this uncertain time in the world and in its
industry. 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 2019 and 2020 (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 unanticipated costs or charges or less than expected cost
reductions and other benefits resulting from the Company's
restructuring activities, such as in connection with the Revlon
2020 Restructuring Program, higher than anticipated restructuring
charges and/or payments and/or changes in the expected timing of
such charges and/or payments; and/or less than expected additional
sources of liquidity from such initiatives; (ii) lower than
expected operating revenues, cash on hand and/or other permissible
borrowings or generated from cost reductions resulting from the
implementation of the Revlon 2020 Restructuring Program and/or
other cost control initiatives and/or difficulties, delays in or
less than expected results from the Company's efforts to execute on
its business strategies to drive its future success and growth,
including, without limitation: (1) less than effective new product
development and innovation, less than expected acceptance of its
new products and innovations by the Company's consumers and/or
customers in one or more of its segments and/or less than expected
levels of execution vis-à-vis its new product launches with its
customers in one or more of its segments or regions, in each case
whether attributable to COVID-19 or otherwise; (2) less than
expected levels of advertising, promotional and/or marketing
activities for its new product launches, less than expected
acceptance of its advertising, promotional, pricing and/or
marketing plans and/or brand communication by consumers and/or
customers in one or more of its segments, less than expected
investment in advertising, promotional and/or marketing activities
or greater than expected competitive investment, in each case
whether attributable to COVID-19 or otherwise; and/or (3)
difficulties or disruptions impacting the Company's ability to
ensure availability of its products where consumers shop, both
in-store and increasingly online; (iii) unanticipated circumstances
or results affecting the Company's financial performance and or
sales growth, including: greater than anticipated levels of
consumers choosing to purchase their beauty products through
e-commerce and other social media channels and/or greater than
anticipated declines in the brick-and-mortar retail channel, or
either of those conditions occurring at a rate faster than
anticipated; the Company's inability to address the pace and impact
of the new commercial landscape, such as its inability to enhance
its e-commerce and social media capabilities and/or increase its
penetration of e-commerce and social media channels; the Company's
inability to drive a successful long-term omni-channel strategy and
significantly increase its e-commerce penetration; difficulties,
delays and/or the Company's inability to (in whole or in part)
develop and implement effective content to enhance its online
retail position, improve its consumer engagement across social
media platforms and/or transform its technology and data to support
efficient management of its digital infrastructure; the Company
incurring greater than anticipated levels of expenses and/or debt
to facilitate the foregoing objectives, which could result in,
among other things, less than anticipated revenues and/or
profitability; decreased consumer spending in response to weak
economic conditions or weakness in the consumption of beauty
products in one or more of the Company's segments, whether
attributable to COVID-19 or otherwise; adverse changes in tariffs,
foreign currency exchange rates, foreign currency controls and/or
government-mandated pricing controls; decreased sales of the
Company's products as a result of increased competitive activities
by the Company's competitors; decreased performance by third-party
suppliers, whether due to COVID-19, shortages of raw materials or
otherwise; and/or supply disruptions at the Company's manufacturing
facilities, whether attributable to COVID-19 or otherwise; changes
in consumer preferences, such as reduced consumer demand for the
Company's color cosmetics and other current products, including new
product launches; changes in consumer purchasing habits, including
with respect to retailer preferences and/or among sales channels,
such as due to the continuing consumption declines in core beauty
categories in the mass retail channel in North America, whether
attributable to COVID-19 or otherwise; lower than expected customer
acceptance or consumer acceptance of, or less than anticipated
results from, the Company's existing or new products, whether
attributable to COVID-19 or otherwise; higher than expected retail
store closures in the brick-and-mortar channels where the Company
sells its products, as consumers continue to shift purchases to
online and e-commerce channels, whether attributable to COVID-19 or
otherwise; higher than expected purchases of permanent displays,
capital expenditures, debt service payments and costs, cash tax
payments, pension and other post-retirement plan contributions,
payments in connection with the Company's restructuring programs
(such as the Revlon 2020 Restructuring Program), severance not
otherwise included in the Company's restructuring programs,
business and/or brand acquisitions (including, without limitation,
through licensing transactions), if any, debt and/or equity
repurchases, if any, costs related to litigation, discontinuing
non-core business lines and/or entering and/or exiting certain
territories and/or channels of trade, advertising, promotional and
marketing activities or for sales returns related to any reduction
of space by the Company's customers, product discontinuances or
otherwise or lower than expected results from the Company's
advertising, promotional, pricing and/or marketing plans, whether
attributable to COVID-19 or otherwise; decreased sales of the
Company’s existing or new products, whether attributable to
COVID-19 or otherwise; actions by the Company's customers, such as
greater than expected inventory management and/or de-stocking, and
greater than anticipated space reconfigurations or reductions in
display space and/or product discontinuances or a greater than
expected impact from pricing, marketing, advertising and/or
promotional strategies by the Company's customers, whether
attributable to COVID-19 or otherwise; and changes in the
competitive environment and actions by the Company's competitors,
including, among other things, business combinations, technological
breakthroughs, implementation of new pricing strategies, new
product offerings, increased advertising, promotional and marketing
spending and advertising, promotional and/or marketing successes by
competitors; (iv) difficulties, delays or the inability of the
Company to continue to serve its consumers and customers and drive
value for all the Company’s stakeholders, such as due to, among
other things, 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 other cost reduction initiatives and/or
changes in the timing of realizing such cost reductions, and/or
more than expected costs to achieve the expected cost reductions;
(v) difficulties or delays that could affect the Company's ability
to consummate the Exchange Offer and/or refinance the 5.75% Senior
Notes, in whole or in part, such as due to the Company's respective
businesses experiencing ongoing COVID-19 related disruptions 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 June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
Net sales
$
347.6
$
570.2
$
800.6
$
1,123.4
Cost of sales
168.6
243.9
366.4
481.7
Gross profit
179.0
326.3
434.2
641.7
Selling, general and administrative
expenses
196.3
332.5
485.7
665.1
Acquisition, integration and divestiture
costs
1.2
—
3.3
0.6
Restructuring charges and other, net
20.7
3.2
45.5
8.7
Impairment charges
19.8
—
144.1
—
(Gain) loss on divested assets
(0.2)
—
0.6
—
Operating loss
(58.8)
(9.4)
(245.0)
(32.7)
Other expenses:
Interest expense
60.9
47.8
109.3
95.5
Amortization of debt issuance costs
6.0
3.5
10.0
6.7
(Gain) loss on early extinguishment of
debt, net
(11.9)
—
(11.9)
—
Foreign currency losses, net
2.3
1.2
18.9
1.4
Miscellaneous, net
20.6
4.6
16.5
5.9
Other expenses
77.9
57.1
142.8
109.5
Loss from continuing operations before
income taxes
(136.7)
(66.5)
(387.8)
(142.2)
Benefit from income taxes
(9.9)
(1.2)
(47.1)
(1.1)
Loss from continuing operations, net of
taxes
(126.8)
(65.3)
(340.7)
(141.1)
Income from discontinued operations, net
of taxes
—
1.6
—
2.3
Net loss
$
(126.8)
$
(63.7)
$
(340.7)
$
(138.8)
Other comprehensive (loss) income:
Foreign currency translation
adjustments
10.3
2.6
5.1
1.3
Amortization of pension related costs, net
of tax
4.0
2.7
6.5
4.9
Other comprehensive (loss) income, net
14.3
5.3
11.6
6.2
Total comprehensive loss
$
(112.5)
$
(58.4)
$
(329.1)
$
(132.6)
Basic and Diluted (loss) earnings per
common share:
Continuing operations
$
(2.37)
$
(1.23)
$
(6.39)
$
(2.66)
Discontinued operations
—
0.03
—
0.04
Net loss
$
(2.37)
$
(1.20)
$
(6.39)
$
(2.62)
Weighted average number of common shares
outstanding:
Basic
53,471,004
53,126,700
53,319,228
53,020,633
Diluted
53,471,004
53,126,700
53,319,228
53,020,633
REVLON, INC. AND
SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE
SHEETS
(dollars in millions)
June 30,
December 31,
2020
2019
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
338.5
$
104.3
Trade receivables, net
288.3
423.4
Inventories
511.2
448.4
Prepaid expenses and other current
assets
144.9
135.3
Total current assets
1,282.9
1,111.4
Property, plant and equipment, net
365.5
408.6
Deferred income taxes
229.2
175.1
Goodwill
562.7
673.7
Intangible assets, net
441.6
490.7
Other assets
117.4
121.1
Total assets
$
2,999.3
$
2,980.6
LIABILITIES AND STOCKHOLDERS'
DEFICIENCY
Current liabilities:
Short-term borrowings
$
2.6
$
2.2
Current portion of long-term debt
648.3
288.0
Accounts payable
224.6
251.8
Accrued expenses and other current
liabilities
378.5
414.9
Total current liabilities
1,254.0
956.9
Long-term debt
2,975.8
2,906.2
Long-term pension and other
post-retirement plan liabilities
170.6
181.2
Other long-term liabilities
147.4
157.5
Total stockholders' deficiency
(1,548.5)
(1,221.2)
Total liabilities and stockholders'
deficiency
$
2,999.3
$
2,980.6
REVLON, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(dollars in millions)
Six Months Ended
June 30,
2020
2019
CASH FLOWS FROM OPERATING
ACTIVITIES:
(Unaudited)
Net loss
$
(340.7)
$
(138.8)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
73.2
85.7
Foreign currency losses from
re-measurement
18.9
1.4
Amortization of debt discount
0.8
0.8
Stock-based compensation amortization
3.5
3.8
Impairment charges
144.1
—
Benefit from deferred income taxes
(56.6)
(12.4)
Amortization of debt issuance costs
10.0
6.7
Loss on divested assets
0.6
—
Pension and other post-retirement cost
2.7
4.1
(Gain) loss on early extinguishment of
debt, net
(11.9)
—
Paid-in-kind interest accrued on the 2020
Brandco Facilities
1.5
—
Change in assets and liabilities:
Decrease in trade receivables
126.3
42.8
Increase in inventories
(70.6)
(36.7)
Increase in prepaid expenses and other
current assets
(7.4)
(11.5)
(Decrease) Increase in accounts
payable
(13.3)
73.3
Decrease in accrued expenses and other
current liabilities
(23.5)
(55.4)
Pension and other post-retirement plan
contributions
(5.5)
(4.5)
Purchases of permanent displays
(12.7)
(20.1)
Other, net
(3.6)
19.6
Net cash used in operating activities
(164.2)
(41.2)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures
(2.7)
(12.2)
Net cash used in investing activities
(2.7)
(12.2)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net decrease in short-term borrowings and
overdraft
(7.0)
(18.8)
Borrowings under the 2020 BrandCo
Facilities
880.0
—
Repurchase of the 5.75% Senior Notes
(99.6)
—
Net borrowings under the Amended 2016
Revolving Credit Facility
(22.9)
59.9
Repayment of the 2019 Term Loan
Facility
(200.0)
—
Repayment under the 2018 Foreign
Asset-Based Term Loan
(31.4)
—
Repayments under the 2016 Term Loan
Facility
(6.9)
(9.0)
Payment of financing costs
(101.2)
(1.4)
Tax withholdings related to net share
settlements of restricted stock and RSUs
(1.6)
(1.6)
Other financing activities
(1.0)
(0.5)
Net cash provided by financing
activities
408.4
28.6
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(2.1)
0.5
Net increase (decrease) in cash, cash
equivalents and restricted cash
239.4
(24.3)
Cash, cash equivalents and restricted cash
at beginning of period
104.5
87.5
Cash, cash equivalents and restricted cash
at end of period
$
343.9
$
63.2
Supplemental schedule of cash flow
information:
Cash paid during the period for:
Interest
$
105.9
$
94.8
Income taxes, net of refunds
6.8
0.6
Supplemental schedule of non-cash
investing and financing activities:
Non-cash roll-up of participating lenders
from the 2016 Term Loan Facility to the 2020 Brandco Facilities
$
809.8
$
—
Paid-in-kind debt issuance costs
capitalized to the 2020 Brandco Facilities
29.1
—
REVLON, INC. AND
SUBSIDIARIES
EBITDA AND ADJUSTED EBITDA
RECONCILIATION
(dollars in millions)
Three Months Ended June
30,
2020
2019
(Unaudited)
Reconciliation to net loss:
Net loss
$
(126.8)
$
(63.7)
Income from discontinued operations, net
of taxes
—
1.6
Loss from continuing operations, net of
taxes
(126.8)
(65.3)
Interest expense, net
60.9
47.8
Amortization of debt issuance costs
6.0
3.5
Loss on early extinguishment of debt
(11.9)
—
Foreign currency losses, net
2.3
1.2
Benefit from income taxes
(9.9)
(1.2)
Depreciation and amortization
36.4
38.7
Miscellaneous, net
20.6
4.6
EBITDA
$
(22.4)
$
29.3
Non-operating items:
Non-cash stock-based compensation
expense
1.1
3.4
Restructuring and related charges
22.3
9.9
Acquisition, integration and divestiture
costs
1.2
—
Loss on divested assets
(0.2)
—
Financial control remediation and
sustainability actions and related charges
5.7
4.4
Impairment charges
19.8
—
Excessive coupon redemption
—
—
COVID-19 charges
17.9
—
Adjusted EBITDA
$
45.4
$
47.0
Six Months Ended June
30,
2020
2019
(Unaudited)
Reconciliation to net loss:
Net loss
$
(340.7)
$
(138.8)
Income (loss) from discontinued
operations, net of taxes
—
2.3
Loss from continuing operations, net of
taxes
(340.7)
(141.1)
Interest expense
109.3
95.5
Amortization of debt issuance costs
10.0
6.7
Loss on early extinguishment of debt
(11.9)
—
Foreign currency losses, net
18.9
1.4
Benefit from income taxes
(47.1)
(1.1)
Depreciation and amortization
73.2
85.7
Miscellaneous, net
16.5
5.9
EBITDA
$
(171.8)
$
53.0
Non-operating items:
Non-cash stock-based compensation
expense
3.5
3.8
Restructuring and related charges
56.7
22.0
Acquisition, integration and divestiture
costs
3.3
0.6
Loss on divested assets
0.6
—
Financial control remediation and
sustainability actions and related charges
7.8
6.4
Impairment charges
144.1
—
Excessive coupon redemption
4.2
—
COVID-19 charges
25.4
—
Adjusted EBITDA
$
73.8
$
85.8
REVLON, INC. AND
SUBSIDIARIES
SEGMENT PROFIT, ADJUSTED
EBITDA AND ADJUSTED OPERATING LOSS RECONCILIATION
(dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
Segment Profit:
Revlon
$
12.3
$
25.6
$
27.9
$
51.2
Elizabeth Arden
10.8
2.7
15.0
4.6
Portfolio
14.5
6.1
21.7
10.6
Fragrances
7.8
12.6
9.2
19.4
Total Segment Profit/Adjusted EBITDA
$
45.4
$
47.0
$
73.8
$
85.8
Reconciliation to loss from continuing
operations before income taxes:
Loss from continuing operations before
income taxes
$
(136.7)
$
(66.5)
$
(387.8)
$
(142.2)
Interest expense
60.9
47.8
109.3
95.5
Amortization of debt issuance costs
6.0
3.5
10.0
6.7
Loss on early extinguishment of debt
(11.9)
—
(11.9)
—
Foreign currency losses, net
2.3
1.2
18.9
1.4
Miscellaneous, net
20.6
4.6
16.5
5.9
Operating loss
(58.8)
(9.4)
(245.0)
(32.7)
Non-operating items:
Restructuring and related charges
22.3
9.9
56.7
22.0
Acquisition, integration and divestiture
costs
1.2
—
3.3
0.6
Loss on divested assets
(0.2)
—
0.6
—
Financial control remediation and
sustainability actions and related charges
5.7
4.4
7.8
6.4
Impairment charges
19.8
—
144.1
—
Excessive coupon redemption
—
—
4.2
—
COVID-19 charges
17.9
—
25.4
—
Adjusted Operating loss
7.9
4.9
(2.9)
(3.7)
Non-cash stock-based compensation
expense
1.1
3.4
3.5
3.8
Depreciation and amortization
36.4
38.7
73.2
85.7
Adjusted EBITDA
$
45.4
$
47.0
$
73.8
$
85.8
REVLON, INC. AND
SUBSIDIARIES
ADJUSTED NET SALES
RECONCILIATION
(dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
Segment Net Sales
Revlon
$
135.0
$
251.5
$
316.8
$
498.8
Elizabeth Arden
80.9
117.4
176.1
228.8
Portfolio
88.5
118.7
198.5
235.9
Fragrances
43.2
82.6
109.2
159.9
Total Segment Net Sales
$
347.6
$
570.2
$
800.6
$
1,123.4
Non-operating items:
Excessive coupon redemption
—
—
4.2
—
Total Adjusted Net Sales
$
347.6
$
570.2
$
804.8
$
1,123.4
REVLON, INC. AND
SUBSIDIARIES
ADJUSTED GROSS PROFIT
RECONCILIATION
(dollars in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
(Unaudited)
(Unaudited)
Gross Profit
$
179.0
$
326.3
$
434.2
$
641.7
Non-operating items:
COVID-19 charges
16.4
—
21.5
—
Excessive coupon redemption
—
—
4.2
—
Financial control remediation and
sustainability actions and related charges
6.1
—
6.1
—
Restructuring and related charges
—
3.0
—
3.0
Adjusted Gross Profit
$
201.5
$
329.3
$
466.0
$
644.7
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 June
30,
2020
2019
(Unaudited)
Reconciliation to net loss and diluted
loss per share:
Net loss
$
(126.8)
$
(63.7)
Non-operating items (after-tax):
Restructuring and related charges
18.5
7.5
Acquisition, integration and divestiture
costs
1.0
—
Loss on divested assets
(0.1)
—
Financial control remediation and
sustainability actions and related charges
4.3
3.4
Impairment charges
19.8
—
Excessive coupon redemption
0.1
—
COVID-19 charges
(0.4)
—
Adjusted net loss
$
(83.6)
$
(52.8)
Net loss:
Diluted loss per common share
(2.37)
(1.20)
Adjustment to diluted loss per common
share
0.81
0.21
Adjusted diluted loss per common share
$
(1.56)
$
(0.99)
U.S. GAAP weighted average number of
common shares outstanding:
Diluted
53,471,004
53,126,700
Six Months Ended June
30,
2020
2019
(Unaudited)
Reconciliation to net loss and diluted
loss per share:
Net loss
$
(340.7)
$
(138.8)
Non-operating items (after-tax):
Restructuring and related charges
44.7
17.0
Acquisition, integration and divestiture
costs
2.6
0.5
Loss on divested assets
0.5
—
Financial control remediation and
sustainability actions and related charges
5.9
4.9
Impairment charges
130.7
—
Excessive coupon redemption
3.3
—
COVID-19 charges
5.3
—
Adjusted net loss
$
(147.7)
$
(116.4)
Net loss:
Diluted loss per common share
(6.39)
(2.62)
Adjustment to diluted loss per common
share
3.62
0.42
Adjusted diluted loss per common share
$
(2.77)
$
(2.20)
U.S. GAAP weighted average number of
common shares outstanding:
Diluted
53,319,228
53,020,633
REVLON, INC. AND
SUBSIDIARIES
FREE CASH FLOW
RECONCILIATION
(dollars in millions)
Six Months Ended June
30,
2020
2019
(Unaudited)
Reconciliation to net cash used in
operating activities:
Net cash used in operating activities
$
(164.2)
$
(41.2)
Less capital expenditures
(2.7)
(12.2)
Free cash flow
$
(166.9)
$
(53.4)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806005243/en/
Investor Relations: 212-527-4040 or
Eric.warren@revlon.com
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