Company is Focused on Continuing to Execute
Successfully on its Transformation Plan
Revlon, Inc. (NYSE: REV) today commented on litigation recently
brought against the Company by UMB Bank NA (“UMB”):
“This is a baseless lawsuit brought by UMB – who has no standing
to even sue – and directed by a group of desperate lenders seeking
to enrich themselves by harming Revlon. We plan to seek dismissal
of the suit and will continue to vigorously defend ourselves
against these meritless accusations. Most importantly, we will
continue to focus on successfully managing through the impacts of
the global pandemic while executing against our strategic plan.
The lenders had plenty of time and many opportunities to attempt
to legally block any of these financing transactions. They did not
do so – likely because they recognized that no court would support
their ploy to profiteer in a crisis. As we made very clear, these
transactions were necessary for Revlon, an iconic American company
and employer of 6,500 people, to continue to execute on its
transformation plan. As part of this plan, we have taken aggressive
steps to mitigate the effects of Covid-19, which enabled us to
greatly reduce the pandemic’s impact to profitability in the second
quarter. We also continue to deliver against the objectives of the
Revlon 2020 Restructuring Program – while focusing on stabilizing
the business, growing e-commerce and building the foundation for
future growth.
Now, months after the last transaction mentioned in the suit
closed, these lenders are attempting to re-write history by
targeting Revlon and some of the most distinguished banks and
financial services companies in the country – including Citibank,
N.A. and Jefferies LLC. This lawsuit is nothing more than the
latest unsubstantiated and misguided action from a group that has
no legal grounds to stand on.”
PJT Partners is acting as financial advisor to Revlon and Paul,
Weiss, Rifkind, Wharton & Garrison LLP is acting as legal
advisor to the Company.
About Revlon
Revlon has developed a long-standing reputation as a color
authority and beauty trendsetter in the world of color cosmetics
and hair care. Since its breakthrough launch of the first opaque
nail enamel in 1932, Revlon has provided consumers with high
quality product innovation, performance and sophisticated glamour.
In 2016, Revlon acquired the iconic Elizabeth Arden company and its
portfolio of brands, including its leading designer, heritage and
celebrity fragrances. Today, Revlon's diversified portfolio of
brands is sold in approximately 150 countries around the world in
most retail distribution channels, including prestige, salon, mass,
and online. Revlon is among the leading global beauty companies,
with some of the world’s most iconic and desired brands and product
offerings in color cosmetics, skin care, hair color, hair care and
fragrances under brands such as Revlon, Revlon Professional,
Elizabeth Arden, Almay, Mitchum, CND, American Crew, Creme of
Nature, Cutex, Juicy Couture, Elizabeth Taylor, Britney Spears,
Curve, John Varvatos, Christina Aguilera and AllSaints.
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 to seek dismissal of the lawsuit
brought by UMB; (ii) the Company’s belief that UMB has no standing
to bring such a claim; (iii) the Company’s plans to defend itself
from UMB’s meritless claims; (iv) the Company’s plans to remain
focused on continuing to execute successfully on its Transformation
Plan and continue to focus on successfully managing through the
impacts of the global pandemic while executing against our
strategic plan; and (v) the Company’s plans to continue to deliver
against the objectives of the Revlon 2020 Restructuring Program –
while focusing on stabilizing the business, growing e-commerce and
building the foundation for future growth. 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 or delays that could affect
the Company's ability to dismiss the UMB lawsuit and/or defend
against the claims, in whole or in part, and/or other unanticipated
adverse developments with respect to the litigation that could
adversely affect the Company's business, prospects, results of
operations, financial condition and/or cash flows; (ii)
unanticipated costs or difficulties or delays in completing
projects associated with continuing to execute the Company's
Transformation Plan and related business initiatives or lower than
expected revenues or the inability to create value through
improving the Company's financial performance as a result of such
initiatives, including lower than expected sales, or higher than
expected costs, including as may arise from any additional
repositioning, repackaging or reformulating of one or more brands
or product lines, launching of new product lines, including higher
than expected expenses, including for sales returns, for launching
its new products, acquiring businesses or brands (including through
licensing transactions, if any), divesting or discontinuing
non-core business lines (which may include exiting certain
territories or converting the Company's go-to-trade structure in
certain countries to other business models), further refining its
approach to retail merchandising and/or difficulties, delays or
increased costs in connection with taking further actions to
optimize the Company's manufacturing, sourcing, supply chain or
organizational size and structure, as well as the unavailability of
cash generated by operations, cash on hand and/or funds under the
Amended 2016 Revolving Credit Facility, the Amended 2019 Senior
Line of Credit Facility and/or other permissible borrowings and/or
from other permissible additional sources of capital to fund such
potential activities, as well as the unavailability of funds due to
potential mandatory repayment obligations under the 2018 Foreign
Asset-Based Term Facility; and/or (iii) difficulties, delays in or
less than expected results from the Company's efforts to execute on
its Revlon 2020 Restructuring Program, including, without
limitation, difficulties with, delays in or the inability to
achieve the Company’s expected results from such program and/or
more than expected costs in implementing such programs, which could
cause the Company not to realize the projected cost reductions,
such as due to, among other things, the Company’s business
experiencing greater than anticipated disruptions due to COVID-19
related uncertainty or other related factors making it more
difficult to maintain relationships with employees, business
partners or governmental entities and/or other unanticipated
circumstances, trends or events affecting the Company’s financial
performance. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200814005332/en/
Investor Relations: (212) 527-4040 or
Eric.warren@revlon.com
Media: Sloane & Company Dan Zacchei / Joe Germani
dzacchei@sloanepr.com / jgermani@sloanepr.com
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