Revlon Reports First Quarter 2020 Results
May 11, 2020
Company Executed Aggressive Actions to Reduce Costs amid COVID-19, in Addition to Continuing to Generate Cost Reductions from Revlon 2020 Restructuring Program
New Financing Positions the Company to Emerge Stronger as Markets Reopen
Quarter ended
- As Reported net sales were
$453.0 million in the first quarter of 2020, compared to$553.2 million during the prior-year period, a decline of 18.1%. As Reported net sales include approximately$54 million of estimated negative impacts associated with COVID-19. Excluding the COVID-19 impacts, net sales on a constant currency basis declined 6.5%. - As Reported operating loss increased to
$186.2 million in the first quarter of 2020, compared to a$23.3 million operating loss during the prior-year period. The higher operating loss was driven primarily by$124.3 million of non-cash intangible impairment charges reflecting the financial impacts of COVID-19,$19.3 million of higher restructuring charges primarily related to the Revlon 2020 Restructuring Program and the lower net sales, partially offset by$43.2 million in lower selling, general and administrative expenses, driven in part by reduced brand support in response to COVID-19, as well as cost reductions associated with the Company's restructuring programs. Adjusted operating loss in the first quarter of 2020 increased by$2.2 million to$10.8 million from$8.6 million in the prior-year period. - As Reported net loss increased to
$213.9 million in the first quarter of 2020, versus a$75.1 million net loss in the prior-year period. The higher net loss was driven primarily by the$124.3 million non-cash intangible impairment charges and a$16.4 million negative foreign currency impact, partially offset by a$37.3 million improvement in the benefit from income taxes driven in part by the Company's adoption of the tax provisions under the new CARES Act. - Adjusted EBITDA(a) in the first quarter of 2020 was
$28.4 million versus$38.8 million in the prior-year period, with the decrease driven primarily by the lower net sales, partially offset by the lower SG&A expenses and improved gross profit margin. - On
May 7, 2020 the Company closed on a new$880 million term loan facility, a portion of which the Company used at closing to retire its$200 million 2019 Term Loan Facility and it also provides a source of liquidity to support the Company's plans to refinance its 5.75% Senior Notes due inFebruary 2021 . The refinancing also extended the maturity of a substantial portion of the Company's 2016 term loan and delivers new funding for the business. As ofMay 7, 2020 , the Company had approximately$600 million in total available liquidity.
"Although our business was significantly impacted during the first quarter of 2020 by the ongoing global COVID-19 pandemic, we have taken aggressive steps to mitigate these effects and feel confident that we will emerge well positioned to continue our transformation and maintain our leadership position within the beauty category. Beauty is a resilient industry and we are already seeing signs of a return to strong sales activity in
1 The results discussed include the following measures: |
First 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 |
||||||||||||||||||||
|
|
2020 |
|
2019 |
|
As Reported |
|
Adjusted (*) |
||||||||||||||
(USD millions, except per share data) |
|
As Reported |
|
Adjusted (*) |
|
As Reported |
|
Adjusted (*) |
|
% Change |
|
% Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
453.0 |
|
|
$ |
457.2 |
|
|
$ |
553.2 |
|
|
$ |
553.2 |
|
|
(18.1) |
% |
|
(17.4) |
% |
Gross Profit |
|
255.2 |
|
|
264.5 |
|
|
315.4 |
|
|
315.4 |
|
|
(19.1) |
% |
|
(16.1) |
% |
||||
Gross Margin |
|
56.3 |
% |
|
57.9 |
% |
|
57.0 |
% |
|
57.0 |
% |
|
-70bps |
|
90bps |
||||||
Operating Loss |
|
$ |
(186.2) |
|
|
$ |
(10.8) |
|
|
$ |
(23.3) |
|
|
$ |
(8.6) |
|
|
(699.1) |
% |
|
(25.6) |
% |
Net Loss |
|
(213.9) |
|
|
(64.1) |
|
|
(75.1) |
|
|
(63.6) |
|
|
(184.8) |
% |
|
(0.8) |
% |
||||
Adjusted EBITDA |
|
|
|
28.4 |
|
|
|
|
38.8 |
|
|
|
|
(26.8) |
% |
|||||||
Diluted Loss per Common Share |
|
$ |
(4.02) |
|
|
$ |
(1.21) |
|
|
$ |
(1.42) |
|
|
$ |
(1.20) |
|
|
(183.1) |
% |
|
(0.8) |
% |
(*) Refer to footnote (a) to this Earnings Release for a discussion and reconciliation of our non-GAAP measures, including Adjusted |
Segment Results
The Company operates in four reporting segments: Revlon;
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
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
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
|
|
Three Months Ended |
||||||||||||
|
|
|
||||||||||||
|
|
As Reported |
|
As Reported |
||||||||||
(USD millions) |
|
2020 |
|
2019 |
|
% Change |
|
XFX |
||||||
|
|
|
|
|
|
|
|
|
||||||
Revlon |
|
$ |
181.8 |
|
|
$ |
247.3 |
|
|
(26.5) |
% |
|
(25.1) |
% |
|
|
95.2 |
|
111.4 |
|
(14.5) |
% |
|
(12.3) |
% |
||||
Portfolio |
|
110.0 |
|
117.2 |
|
(6.1) |
% |
|
(4.4) |
% |
||||
Fragrances |
|
66.0 |
|
77.3 |
|
(14.6) |
% |
|
(13.5) |
% |
||||
Total |
|
$ |
453.0 |
|
|
$ |
553.2 |
|
|
(18.1) |
% |
|
(16.5) |
% |
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||||
|
|
Segment Profit |
||||||||||||
|
|
As Reported |
|
As Reported |
||||||||||
(USD millions) |
|
2020 |
|
2019 |
|
% Change |
|
XFX |
||||||
|
|
|
|
|
|
|
|
|
||||||
Revlon |
|
$ |
15.6 |
|
|
$ |
25.6 |
|
|
(39.1) |
% |
|
(36.3) |
% |
|
|
4.2 |
|
|
1.9 |
|
|
121.1 |
% |
|
147.4 |
% |
||
Portfolio |
|
7.2 |
|
|
4.5 |
|
|
60.0 |
% |
|
64.4 |
% |
||
Fragrances |
|
1.4 |
|
|
6.8 |
|
|
(79.4) |
% |
|
(77.9) |
% |
||
Total |
|
$ |
28.4 |
|
|
$ |
38.8 |
|
|
(26.8) |
% |
|
(22.9) |
% |
Revlon Segment
Revlon segment net sales in the first quarter of 2020 were
Revlon segment profit in the first quarter of 2020 was
Elizabeth Arden Segment
Portfolio Segment
Portfolio segment net sales of
Portfolio segment profit in the first quarter of 2020 improved to
Fragrances Segment
Fragrances segment net sales of
Fragrances segment profit in the first quarter of 2020 was
Geographic
Overall, As Reported total net sales decreased by 18.1% (or 16.5% XFX), as detailed below by segment for the Company's
|
|
Three Months Ended |
||||||||||||
(USD millions) |
|
2020 |
|
2019 |
|
As Reported |
|
As Reported XFX |
||||||
|
|
|
|
|
|
|
|
|
||||||
Revlon |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
99.1 |
|
|
$ |
133.2 |
|
|
(25.6) |
% |
|
(25.5) |
% |
International |
|
82.7 |
|
|
114.1 |
|
|
(27.5) |
% |
|
(24.5) |
% |
||
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
21.4 |
|
|
$ |
28.2 |
|
|
(24.1) |
% |
|
(23.4) |
% |
International |
|
73.8 |
|
|
83.2 |
|
|
(11.3) |
% |
|
(8.5) |
% |
||
Portfolio |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
70.8 |
|
|
$ |
70.1 |
|
|
1.0 |
% |
|
0.9 |
% |
International |
|
39.2 |
|
|
47.1 |
|
|
(16.8) |
% |
|
(12.3) |
% |
||
Fragrances |
|
|
|
|
|
|
|
|
||||||
|
|
$ |
42.2 |
|
|
$ |
47.2 |
|
|
(10.6) |
% |
|
(10.6) |
% |
International |
|
23.8 |
|
|
30.1 |
|
|
(20.9) |
% |
|
(17.9) |
% |
||
Total |
|
$ |
453.0 |
|
|
$ |
553.2 |
|
|
(18.1) |
% |
|
(16.5) |
% |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Total Net Sales Summary |
|
|
|
|
|
|
||||||||
|
|
$ |
233.5 |
|
|
$ |
278.7 |
|
|
(16.2) |
% |
|
(16.1) |
% |
International |
|
219.5 |
|
|
274.5 |
|
|
(20.0) |
% |
|
(16.9) |
% |
Revlon Segment
In
In International, Revlon segment net sales of
Elizabeth Arden Segment
In
In International,
Portfolio Segment
In
In International, Portfolio segment net sales of
Fragrances Segment
In
In International, Fragrances segment net sales of
Cash Flow
Net cash used in operating activities in the first three months of 2020 was
Liquidity Update
As of
On
First Quarter 2020 Results Conference Call
The Company will host a conference call with members of the investment community today,
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) |
Q1 2020 |
Q1 2019 |
||||
Income Adjustments to EBITDA |
||||||
|
(Unaudited) |
|||||
Non-Operating Items: |
|
|||||
Non-cash stock-based compensation expense |
$ |
2.4 |
|
$ |
0.4 |
|
Restructuring and related charges |
34.4 |
|
12.1 |
|
||
Acquisition, integration and divestiture costs |
2.1 |
|
0.6 |
|
||
Loss on divested assets |
0.8 |
|
— |
|
||
Financial control remediation actions and related charges |
2.1 |
|
2.0 |
|
||
Impairment charges |
124.3 |
|
— |
|
||
Excessive coupon redemption |
4.2 |
|
— |
|
||
COVID-19 charges |
7.5 |
|
— |
|
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
(b) Segment profit is defined as income from continuing operations for each of the Company's Revlon,
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
|
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|||||||
(dollars in millions, except share and per share amounts) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
|
|
|
|
||||
Net sales |
$ |
453.0 |
|
|
$ |
553.2 |
|
Cost of sales |
197.8 |
|
|
237.8 |
|
||
Gross profit |
255.2 |
|
|
315.4 |
|
||
Selling, general and administrative expenses |
289.4 |
|
|
332.6 |
|
||
Acquisition, integration and divestiture costs |
2.1 |
|
|
0.6 |
|
||
Restructuring charges and other, net |
24.8 |
|
|
5.5 |
|
||
Impairment charges |
124.3 |
|
|
— |
|
||
Loss on divested assets |
0.8 |
|
|
— |
|
||
Operating loss |
(186.2) |
|
|
(23.3) |
|
||
|
|
|
|
||||
Other expenses: |
|
|
|
||||
Interest expense |
48.4 |
|
|
47.7 |
|
||
Amortization of debt issuance costs |
4.0 |
|
|
3.2 |
|
||
Foreign currency losses, net |
16.6 |
|
|
0.2 |
|
||
Miscellaneous, net |
(4.1) |
|
|
1.3 |
|
||
Other expenses |
64.9 |
|
|
52.4 |
|
||
|
|
|
|
||||
Loss from continuing operations before income taxes |
(251.1) |
|
|
(75.7) |
|
||
(Benefit from) provision for income taxes |
(37.2) |
|
|
0.1 |
|
||
Loss from continuing operations, net of taxes |
(213.9) |
|
|
(75.8) |
|
||
Income from discontinued operations, net of taxes |
— |
|
|
0.7 |
|
||
Net loss |
$ |
(213.9) |
|
|
$ |
(75.1) |
|
|
|
|
|
||||
Other comprehensive (loss) income: |
|
|
|
||||
Foreign currency translation adjustments |
(5.2) |
|
|
(1.3) |
|
||
Amortization of pension related costs, net of tax |
2.5 |
|
|
2.2 |
|
||
Other comprehensive (loss) income, net |
(2.7) |
|
|
0.9 |
|
||
Total comprehensive loss |
$ |
(216.6) |
|
|
$ |
(74.2) |
|
|
|
|
|
||||
Basic and Diluted earnings (loss) per common share: |
|
|
|
||||
Continuing operations |
$ |
(4.02) |
|
|
$ |
(1.43) |
|
Discontinued operations |
— |
|
|
0.01 |
|
||
Net loss |
$ |
(4.02) |
|
|
$ |
(1.42) |
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
||||
Basic |
53,167,453 |
|
|
52,913,388 |
|
||
Diluted |
53,167,453 |
|
|
52,913,388 |
|
CONSOLIDATED CONDENSED BALANCE SHEETS |
|||||||
(dollars in millions) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
2020 |
|
2019 |
||||
ASSETS |
(Unaudited) |
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
62.8 |
|
|
$ |
104.3 |
|
Trade receivables, net |
326.5 |
|
|
423.4 |
|
||
Inventories |
479.8 |
|
|
448.4 |
|
||
Prepaid expenses and other current assets |
169.8 |
|
|
135.3 |
|
||
Total current assets |
1,038.9 |
|
|
1,111.4 |
|
||
Property, plant and equipment, net |
383.1 |
|
|
408.6 |
|
||
Deferred income taxes |
209.3 |
|
|
175.1 |
|
||
|
573.7 |
|
|
673.7 |
|
||
Intangible assets, net |
456.6 |
|
|
490.7 |
|
||
Other assets |
118.0 |
|
|
121.1 |
|
||
Total assets |
$ |
2,779.6 |
|
|
$ |
2,980.6 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings |
$ |
2.9 |
|
|
$ |
2.2 |
|
Current portion of long-term debt |
856.1 |
|
|
288.0 |
|
||
Accounts payable |
253.3 |
|
|
251.8 |
|
||
Accrued expenses and other current liabilities |
374.1 |
|
|
414.9 |
|
||
Total current liabilities |
1,486.4 |
|
|
956.9 |
|
||
Long-term debt |
2,405.5 |
|
|
2,906.2 |
|
||
Long-term pension and other post-retirement plan liabilities |
174.9 |
|
|
181.2 |
|
||
Other long-term liabilities |
148.6 |
|
|
157.5 |
|
||
Total stockholders' deficiency |
(1,435.8) |
|
|
(1,221.2) |
|
||
Total liabilities and stockholders' deficiency |
$ |
2,779.6 |
|
|
$ |
2,980.6 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(dollars in millions) |
|||||||
|
Three Months Ended |
||||||
|
|
||||||
|
2020 |
|
2019 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
(Unaudited) |
||||||
Net loss |
$ |
(213.9) |
|
|
$ |
(75.1) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
36.8 |
|
|
47.0 |
|
||
Foreign currency losses from re-measurement |
16.6 |
|
|
0.2 |
|
||
Amortization of debt discount |
0.4 |
|
|
0.4 |
|
||
Stock-based compensation amortization |
2.4 |
|
|
0.4 |
|
||
Impairment charges |
124.3 |
|
|
— |
|
||
Benefit from deferred income taxes |
(37.2) |
|
|
(5.6) |
|
||
Amortization of debt issuance costs |
4.0 |
|
|
3.2 |
|
||
Loss on divested assets |
0.8 |
|
|
— |
|
||
Pension and other post-retirement cost |
1.2 |
|
|
2.0 |
|
||
Change in assets and liabilities: |
|
|
|
||||
Decrease in trade receivables |
84.6 |
|
|
52.4 |
|
||
Increase in inventories |
(42.5) |
|
|
(24.0) |
|
||
(Increase) decrease in prepaid expenses and other current assets |
(23.3) |
|
|
1.5 |
|
||
Increase in accounts payable |
14.9 |
|
|
41.1 |
|
||
Decrease in accrued expenses and other current liabilities |
(34.8) |
|
|
(66.7) |
|
||
Pension and other post-retirement plan contributions |
(3.6) |
|
|
(1.8) |
|
||
Purchases of permanent displays |
(7.0) |
|
|
(9.7) |
|
||
Other, net |
(1.3) |
|
|
6.3 |
|
||
Net cash used in operating activities |
(77.6) |
|
|
(28.4) |
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
(1.8) |
|
|
(5.8) |
|
||
Net cash used in investing activities |
(1.8) |
|
|
(5.8) |
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Net decrease in short-term borrowings and overdraft |
(6.4) |
|
|
(17.2) |
|
||
Net borrowings under the Amended 2016 Revolving Credit Facility |
69.1 |
|
|
40.6 |
|
||
Repayments under the 2016 Term Loan Facility |
(4.5) |
|
|
(4.5) |
|
||
Payment of financing costs |
(0.3) |
|
|
(0.9) |
|
||
Tax withholdings related to net share settlements of restricted stock and RSUs |
(0.4) |
|
|
(1.6) |
|
||
Other financing activities |
(0.1) |
|
|
(0.2) |
|
||
Net cash provided by financing activities |
57.4 |
|
|
16.2 |
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(3.3) |
|
|
0.3 |
|
||
Net decrease in cash, cash equivalents and restricted cash |
(25.3) |
|
|
(17.7) |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
104.5 |
|
|
87.5 |
|
||
Cash, cash equivalents and restricted cash at end of period |
$ |
79.2 |
|
|
$ |
69.8 |
|
Supplemental schedule of cash flow information: |
|
|
|
||||
Cash paid during the period for: |
|
|
|
||||
Interest |
$ |
62.9 |
|
|
$ |
61.3 |
|
Income taxes, net of refunds |
1.0 |
|
|
0.4 |
|
|
|||||||
EBITDA AND ADJUSTED EBITDA RECONCILIATION |
|||||||
(dollars in millions) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
Reconciliation to net loss: |
|
|
|
||||
Net loss |
$ |
(213.9) |
|
|
$ |
(75.1) |
|
Income from discontinued operations, net of taxes |
— |
|
|
0.7 |
|
||
Loss from continuing operations, net of taxes |
(213.9) |
|
|
(75.8) |
|
||
|
|
|
|
||||
Interest expense, net |
48.4 |
|
|
47.7 |
|
||
Amortization of debt issuance costs |
4.0 |
|
|
3.2 |
|
||
Foreign currency losses, net |
16.6 |
|
|
0.2 |
|
||
(Benefit from) provision for income taxes |
(37.2) |
|
|
0.1 |
|
||
Depreciation and amortization |
36.8 |
|
|
47.0 |
|
||
Miscellaneous, net |
(4.1) |
|
|
1.3 |
|
||
EBITDA |
$ |
(149.4) |
|
|
$ |
23.7 |
|
|
|
|
|
||||
Non-operating items: |
|
|
|
||||
Non-cash stock-based compensation expense |
2.4 |
|
|
0.4 |
|
||
Restructuring and related charges |
34.4 |
|
|
12.1 |
|
||
Acquisition, integration and divestiture costs |
2.1 |
|
|
0.6 |
|
||
Loss on divested assets |
0.8 |
|
|
— |
|
||
Financial control remediation actions and related charges |
2.1 |
|
|
2.0 |
|
||
Impairment charges |
124.3 |
|
|
— |
|
||
Excessive coupon redemption |
4.2 |
|
|
— |
|
||
COVID-19 charges |
7.5 |
|
|
— |
|
||
Adjusted EBITDA |
$ |
28.4 |
|
|
$ |
38.8 |
|
SEGMENT PROFIT, ADJUSTED EBITDA AND ADJUSTED OPERATING LOSS RECONCILIATION |
|||||||
(dollars in millions) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
Segment Profit: |
|
|
|
||||
Revlon |
$ |
15.6 |
|
|
$ |
25.6 |
|
|
4.2 |
|
|
1.9 |
|
||
Portfolio |
7.2 |
|
|
4.5 |
|
||
Fragrances |
1.4 |
|
|
6.8 |
|
||
Total Segment Profit/Adjusted EBITDA |
$ |
28.4 |
|
|
$ |
38.8 |
|
|
|
|
|
||||
Reconciliation to loss from continuing operations before income taxes: |
|
|
|
||||
Loss from continuing operations before income taxes |
$ |
(251.1) |
|
|
$ |
(75.7) |
|
Interest expense |
48.4 |
|
|
47.7 |
|
||
Amortization of debt issuance costs |
4.0 |
|
|
3.2 |
|
||
Foreign currency losses, net |
16.6 |
|
|
0.2 |
|
||
Miscellaneous, net |
(4.1) |
|
|
1.3 |
|
||
Operating loss |
(186.2) |
|
|
(23.3) |
|
||
|
|
|
|
||||
Non-operating items: |
|
|
|
||||
Restructuring and related charges |
34.4 |
|
|
12.1 |
|
||
Acquisition, integration and divestiture costs |
2.1 |
|
|
0.6 |
|
||
Loss on divested assets |
0.8 |
|
|
— |
|
||
Financial control remediation actions and related charges |
2.1 |
|
|
2.0 |
|
||
Impairment charge |
124.3 |
|
|
— |
|
||
Excessive coupon redemption |
4.2 |
|
|
— |
|
||
COVID-19 charges |
7.5 |
|
|
— |
|
||
Adjusted Operating loss |
(10.8) |
|
|
(8.6) |
|
||
Non-cash stock-based compensation expense |
2.4 |
|
|
0.4 |
|
||
Depreciation and amortization |
36.8 |
|
|
47.0 |
|
||
|
|
|
|
||||
Adjusted EBITDA |
$ |
28.4 |
|
|
$ |
38.8 |
|
ADJUSTED NET SALES RECONCILIATION |
|||||||
(dollars in millions) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
Segment |
|
|
|
||||
Revlon |
$ |
181.8 |
|
|
$ |
247.3 |
|
|
95.2 |
|
|
111.4 |
|
||
Portfolio |
110.0 |
|
|
117.2 |
|
||
Fragrances |
66.0 |
|
|
77.3 |
|
||
Total Segment |
$ |
453.0 |
|
|
$ |
553.2 |
|
|
|
|
|
||||
Non-operating items: |
|
|
|
||||
Excessive coupon redemption |
4.2 |
|
|
— |
|
||
Total Adjusted |
$ |
457.2 |
|
|
$ |
553.2 |
|
ADJUSTED GROSS PROFIT RECONCILIATION |
|||||||
(dollars in millions) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
Gross Profit |
$ |
255.2 |
|
|
$ |
315.4 |
|
Non-operating items: |
|
|
|
||||
COVID-19 charges |
5.1 |
|
|
— |
|
||
Excessive coupon redemption |
4.2 |
|
|
— |
|
||
Adjusted Gross Profit |
$ |
264.5 |
|
|
$ |
315.4 |
|
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED INCOME (LOSS) PER SHARE RECONCILIATION |
|||||||
(dollars in millions, except share and per share amounts) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
|
|
|
|
||||
Reconciliation to net loss and diluted loss per share: |
|
|
|
||||
Net loss |
$ |
(213.9) |
|
|
$ |
(75.1) |
|
|
|
|
|
||||
Non-operating items (after-tax): |
|
|
|
||||
Restructuring and related charges |
26.2 |
|
|
9.5 |
|
||
Acquisition, integration and divestiture costs |
1.6 |
|
|
0.5 |
|
||
Loss on divested assets |
0.6 |
|
|
— |
|
||
Financial control remediation actions and related charges |
1.6 |
|
|
1.5 |
|
||
Impairment charges |
110.9 |
|
|
— |
|
||
Excessive coupon redemption |
3.2 |
|
|
— |
|
||
COVID-19 charges |
5.7 |
|
|
— |
|
||
|
|
|
|
||||
Adjusted net loss |
$ |
(64.1) |
|
|
$ |
(63.6) |
|
|
|
|
|
||||
Net loss: |
|
|
|
||||
Diluted loss per common share |
(4.02) |
|
|
(1.42) |
|
||
Adjustment to diluted loss per common share |
2.81 |
|
|
0.22 |
|
||
Adjusted diluted loss per common share |
$ |
(1.21) |
|
|
$ |
(1.20) |
|
|
|
|
|
||||
|
|
|
|
||||
Diluted |
53,167,453 |
|
|
52,913,388 |
|
FREE CASH FLOW RECONCILIATION |
|||||||
(dollars in millions) |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
|
|
||||||
|
2020 |
|
2019 |
||||
|
(Unaudited) |
||||||
|
|
|
|
||||
Reconciliation to net cash used in operating activities: |
|
|
|
||||
Net cash used in operating activities |
$ |
(77.6) |
|
|
$ |
(28.4) |
|
Less capital expenditures |
(1.8) |
|
|
(5.8) |
|
||
|
|
|
|
||||
Free cash flow |
$ |
(79.4) |
|
|
$ |
(34.2) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200511005205/en/
Investor Relations:
212-527-4040 or Eric.warren@revlon.com
Source: Revlon