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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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November 3, 2005 (November 3, 2005)
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Date of Report (Date of earliest event reported)
Revlon, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-11178 13-3662955
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(State or Other (Commission File No.) (I.R.S. Employer
Jurisdiction of Identification
Incorporation) No.)
237 Park Avenue
New York, New York 10017
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(Address of Principal (Zip Code)
Executive Offices)
(212) 527-4000
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(Registrant's telephone number, including area code)
None
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On November 3, 2005, Revlon, Inc. issued a press release announcing its
results of operations for the fiscal quarter ended September 30, 2005 and
disclosing certain related business information.
The press release included certain of management's beliefs,
expectations, estimates, projections, forecasts, plans, anticipations, targets,
outlooks, initiatives, destinations, visions, objectives, strategies,
opportunities, drivers and intents regarding the Company, including in
connection with its brand initiatives and were prepared by the Company based
upon, among other things, the anticipated future results of operation of the
Company after giving effect to the implementation of the brand initiatives. The
Company does not generally publish its strategic plans or make external
projections of its anticipated financial position or results of operations or
the type of forward-looking information regarding its strategic plans included
in this Current Report on Form 8-K, including anticipated changes in retail
merchandising space, growth opportunities, Adjusted EBITDA, net sales,
provisions for incremental returns and allowances, and projected launch costs.
Accordingly, except for the Company's ongoing obligations under the U.S. federal
securities laws, the Company does not intend to update or otherwise revise the
forward-looking information regarding its strategic plans to reflect actual
results of operations, changes in financial condition, changes in estimates,
expectations or assumptions or other circumstances arising and/or existing since
the preparation of this press release or to reflect the occurrence of any
unanticipated events. Further, the Company does not intend to update or revise
the forward-looking information regarding its strategic plans to reflect changes
in general economic, industry or cosmetics category conditions.
Statements made in this Current Report on Form 8-K that are not
historical are forward looking statements which are based on the beliefs,
expectations, estimates, projections, forecasts, plans, anticipations, targets,
outlooks, initiatives, destinations, visions, objectives, strategies,
opportunities, drivers and intents of the Company's management and involve risks
and uncertainties. Such forward-looking statements are subject to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. The
Company's actual results may differ materially from such forward looking
statements for a number of reasons, including, without limitation, those set
forth in the Company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended December 31, 2004,
its Quarterly Reports on Form 10-Q for the periods ending March 31, 2005, June
30, 2005 and September 30, 2005 (the latter of which the Company will be filing
with the SEC by November 9, 2005) and its Current Reports on Form 8-K filed with
the SEC during 2005.
A copy of the press release is attached to this report as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
99.1 Press Release, dated November 3, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
REVLON, INC.
By: /s/ Robert K. Kretzman
--------------------------------------
Robert K. Kretzman
Executive Vice President,
Chief Legal Officer, General Counsel
and Secretary
Date: November 3, 2005
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release, dated November 3, 2005
Exhibit 99.1
Revlon Reports Third Quarter and Nine-Month 2005 Results;
Company Provides Update on Major Brand Initiatives and Outlook for 2005
NEW YORK--(BUSINESS WIRE)--Nov. 3, 2005--Revlon, Inc. (NYSE: REV)
today announced results for the third quarter and nine months ended
September 30, 2005. The Company also announced significant progress on
its two recently announced major brand initiatives and provided its
outlook for the balance of 2005.
As previously announced, the first initiative involves a complete
relaunch of the Almay brand and builds on Almay's healthy beauty
heritage and the desire among consumers for simplicity and
personalization. The second initiative, focused on women over 50 years
of age, involves the launch of a complete line of cosmetics under a
new brand name that is designed to serve this affluent and growing
consumer demographic currently underserved in the marketplace. The
Company indicated that it has secured significant retail customer
acceptance of these major brand initiatives. As a result, the Company
expects to gain an approximate 25% increase in color cosmetics retail
merchandising space in 2006. Revlon indicated that it currently
expects the initiatives to generate net sales of approximately $30 to
$40 million for the full year of 2005, after the full-year impact of
some $40 million of incremental provisions for returns and allowances
associated with the launches. The Company also expects that the total
upfront launch and related costs in 2005, including the aforementioned
provisions for returns and allowances, as well as accelerated
amortization and other launch costs, will be approximately $75
million. The Company expects the related 2005 shipments of the two
launches to significantly, but not fully, offset these costs.
For the quarter, the Company indicated that net sales of $275
million declined 6% versus net sales of $294 million in the third
quarter of 2004. The net sales in 2005 included the impact of
anticipated incremental returns and allowances totaling approximately
$32 million associated with launching the brand initiatives. Adjusted
EBITDA(1) for the quarter was a negative $6 million. Adjusted EBITDA
was also affected by anticipated launch costs totaling approximately
$36 million, including the aforementioned $32 million of provisions
for incremental returns and allowances. This compares with Adjusted
EBITDA of $26 million in the third quarter of 2004. Net loss per
diluted share of $0.18 in the quarter compared with net loss per
diluted share of $0.25 in the same period last year, which included an
approximate $0.16 per diluted share charge for the early
extinguishment of debt.
In terms of U.S. marketplace performance for the quarter,
according to ACNielsen(2), the color cosmetics category for the
quarter grew 2.9% versus the same period last year. The Company's
retail consumption growth of 4.5% for the quarter outpaced that of the
category, resulting in a color cosmetics market share gain of 0.3
points to 21.6%. The Almay brand led the growth, with an 11% increase
in retail consumption for the quarter, driving share growth of 0.5
points to 6.3%. The Revlon brand grew retail consumption 2.0% for the
quarter, slightly below the growth of the category, resulting in a
share decline of 0.1 points to 15.3%. In other key categories, the
Company gained share during the quarter in hair color and beauty
tools, and maintained share in anti-perspirants/deodorants.
Commenting on the Company's performance, Revlon President and
Chief Executive Officer Jack Stahl stated, "Our marketplace
performance this year reflects a continued strengthening of our
brands, which is beginning to drive growth and excitement in our
categories and result in market share gains. At the same time, our
financial performance does not yet reflect all the progress we are
making in the marketplace, where our new and restaged products are
performing very well. Certain of our base products continue to be
soft, where they have yet to benefit from our planned actions to
re-energize important franchises. As we move into 2006, we intend to
continue to leverage our new product development capability to
strengthen our important base franchises in order to drive their
growth."
Commenting on the Almay relaunch and the Company's new brand as
well as the overall outlook for the business, Mr. Stahl continued, "We
very much appreciate the support we have received from our retail
customers and the enthusiasm with which we are partnering to create
in-store excitement and drive category growth. Our two brand
initiatives are intended to drive category growth, and we expect them
to create sustainable value in the category and for our business. We
intend to invest appropriately behind the business to ensure our
marketplace success. In the near term, however, we believe retailers
are approaching inventory and working capital management with caution
due, in part, to the recent decline in consumer confidence, which we
believe is currently slowing shipment trends in North America. Because
of this, as well as our investment in the initiatives, we now expect
Adjusted EBITDA for 2005 to be approximately $170 million.
Notwithstanding our tempered outlook for 2005, as we look forward, we
believe 2006 will prove to be a very good year for us. More
specifically, we now expect strong growth in both sales and Adjusted
EBITDA, supported by significant investment spending in 2006, as we
expect to benefit from our continuing actions to strengthen our
existing franchises, bring exciting new products to the marketplace
and achieve success of our two new major brand initiatives."
Revlon will host a conference call with members of the investment
community on November 3, 2005 at 9:30 AM EST to discuss the results of
the third quarter. Access to the call is available to the public at
www.revloninc.com, in the Investor Relations section, under Events
Calendar. A copy of the press release and related information will be
available in the Investor Relations section of the Company's website,
under Press Releases and Financial Reports, respectively.
Third Quarter Results
Net sales in the third quarter of 2005 declined approximately 6%
to $275 million, compared with net sales of $294 million in the third
quarter of 2004. The net sales performance primarily reflected the
provisions for the anticipated incremental returns and allowances
totaling $32 million associated with the brand initiatives, as well as
lower shipments in North America(3). Partially offsetting these
factors were lower returns and allowances on the base business and
strength in International, including the benefit of favorable foreign
currency translation. Excluding the favorable impact of foreign
currency translation, net sales in the quarter declined approximately
8%.
In North America, net sales for the quarter declined approximately
17% to $159 million, versus $192 million in the third quarter of 2004.
This performance largely reflected the aforementioned $32 million of
provisions for incremental returns and allowances and lower overall
shipments, partially offset by lower returns and allowances on the
base business. The lower shipments continued to reflect strength of
new and restaged products, which was more than offset by softness of
base products. These base products have not yet benefited from the
focus and reinvestment in marketing and new product development that
several of the Company's large franchises received earlier this year
and are now benefiting from.
In International, net sales advanced 14% to $117 million, versus
$102 million in the third quarter of 2004. Driving this performance
was shipment strength in Asia Pacific and Latin America, as well as
the benefit of favorable foreign currency translation and lower
provisions for sales incentives. Excluding the favorable impact of
foreign currency translation, International net sales advanced 11%
versus year-ago.
Operating loss in the quarter was $32.3 million, versus an
operating loss of $2.0 million in the third quarter of 2004. This
performance primarily reflected approximately $40 million of costs
associated with the brand initiatives, including the aforementioned
$32 million of provisions for incremental returns and allowances. Also
impacting the comparison were increased brand support, higher
distribution expenses, and the decline in shipments. Partially
offsetting these factors were lower returns and allowances on the base
business, as the Company continues to fine-tune its promotional
strategy and gain efficiencies in this area.
Adjusted EBITDA in the current quarter was a negative $6.1
million, compared with Adjusted EBITDA of $25.7 million in the same
period last year. This performance was driven by largely the same
factors that impacted the operating income comparison. Adjusted EBITDA
is a non-GAAP measure that is defined in the footnotes of this release
and which is reconciled to net income/(loss), the most directly
comparable GAAP measure, in the accompanying financial tables.
Net loss in the current quarter was $65.4 million, versus net loss
of $91.6 million in the third quarter of 2004. Net loss in the
year-ago quarter included approximately $59 million of expenses for
the early extinguishment of debt associated with the Company's
refinancing activities completed during the third quarter last year.
On a diluted per share basis, net loss in the third quarter of 2005
was $0.18, compared with a diluted per share loss of $0.25 in the
third quarter of 2004.
Cash flow used for operating activities in the third quarter of
2005 was $69.1 million, compared with cash flow used for operating
activities of $35.2 million in the third quarter of 2004. This
increase included the anticipated working capital build associated
with launching the brand initiatives later this year, as well as the
slowdown during the quarter in North America shipments.
Nine-Month Results
Net sales in the first nine months of 2005 were $895 million,
compared with net sales of $919 million in the first nine months of
2004. This performance included the impact of the aforementioned $32
million of incremental returns and allowances provisions taken in the
current period, as well as the benefit of favorable foreign currency
translation, which benefited the nine-month sales comparison by almost
two percentage points. Also impacting the comparison in the nine-month
period was a $10 million benefit in 2004 related to the prepayments of
certain minimum royalties and a license renewal fee by licensees.
In North America, net sales of $551 million for the first nine
months of 2005 were down 9% versus net sales of $605 million in the
same period last year. This performance included the impact of the
aforementioned $32 million of incremental returns and allowances
provisions in the 2005 period and the aforementioned $10 million
licensing benefit in 2004. International net sales of $343 million in
the first nine months of 2005 advanced approximately 9% versus net
sales of $314 million in the year-ago period. Excluding the favorable
impact of foreign currency translation, International net sales grew
approximately 6% in the nine-month period.
Operating loss in the first nine months of 2005 was $34.7 million,
versus operating income of $16.3 million in the first nine months of
2004. Adjusted EBITDA in the first nine months of 2005 was $39.8
million, compared with Adjusted EBITDA of $93.9 million in the first
nine months of 2004.
Net loss in the nine-month period was $148.0 million, or $0.40 per
diluted share, compared with a net loss in the first nine months of
2004 of $188.7 million, or $0.68 per diluted share. Net loss in the
first nine months of 2005 and 2004 included expenses totaling
approximately $9 million and $91 million, respectively, for the early
extinguishment of debt associated with the Company's refinancing
activities. Cash flow used for operating activities in the first nine
months of 2005 was $115.9 million, compared with cash flow used for
operating activities of $135.3 million in the first nine months of
2004.
About Revlon
Revlon is a worldwide cosmetics, skin care, fragrance, and
personal care products company. The Company's vision is to deliver the
promise of beauty through creating and developing the most consumer
preferred brands. Websites featuring current product and promotional
information can be reached at www.revlon.com and www.almay.com.
Corporate and investor relations information can be accessed at
www.revloninc.com. The Company's brands, which are sold worldwide,
include Revlon(R), Almay(R), Ultima(R), Charlie(R), Flex(R), and
Mitchum(R).
Footnotes to Press Release
(1) Adjusted EBITDA is a non-GAAP financial measure that is
reconciled to net income/(loss), its most directly comparable
GAAP measure, in the accompanying financial tables. Adjusted
EBITDA is defined as net earnings before interest, taxes,
depreciation, amortization, gains/losses on foreign currency
transactions, gains/losses on the sale of assets, gains/losses
on the early extinguishment of debt and miscellaneous
expenses. In calculating Adjusted EBITDA, the Company excludes
the effects of gains/losses on foreign currency transactions,
gains/losses on the sale of assets, gains/losses on the early
extinguishment of debt and miscellaneous expenses 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 these items do not
facilitate an understanding of the Company's operating
performance. The Company's management utilizes Adjusted EBITDA
as an operating performance measure in conjunction with GAAP
measures, such as net income and gross margin calculated in
accordance with GAAP.
The Company's management uses Adjusted EBITDA as an integral part of
its reporting and planning processes and as one of the primary
measures to, among other things --
(i) monitor and evaluate the performance of the Company's business
operations;
(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 as a measure in evaluating employee
compensation and bonuses;
(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.
The Company's management believes that Adjusted EBITDA is useful to
investors to provide them with disclosures of the Company's operating
results on the same basis as that used by the Company's management.
Additionally, the Company's management believes that Adjusted EBITDA
provides useful information to investors about the performance of the
Company's overall business because such measure eliminates the effects
of unusual or other infrequent charges that are not directly
attributable to the Company's underlying operating performance.
Additionally, the Company's management believes that because it has
historically provided Adjusted EBITDA in previous press releases, that
including such non-GAAP measure in its earnings releases provides
consistency in its financial reporting and continuity to investors for
comparability purposes. Accordingly, the Company believes that the
presentation of Adjusted EBITDA, when used in conjunction with GAAP
financial measures, is a useful financial analysis tool, used by the
Company's management as described above, that can assist investors in
assessing the Company's financial condition, operating performance and
underlying strength. Adjusted EBITDA should not be considered in
isolation or as a substitute for net income/(loss) prepared in
accordance with GAAP. Other companies may define EBITDA differently.
Also, while EBITDA is defined differently than Adjusted EBITDA for the
Company's credit agreement, certain financial covenants in its
borrowing arrangements are tied to similar measures. Adjusted EBITDA,
as well as the other information in this press release, should be read
in conjunction with the Company's financial statements and footnotes
contained in the documents that the Company files with the U.S.
Securities and Exchange Commission.
(2) All market share and consumption data is U.S. mass-market
dollar volume according to ACNielsen (an independent research
entity). ACNielsen data is an aggregate of the drug channel,
Kmart, Target and Food and Combo stores, and excludes Wal-Mart
and regional mass volume retailers. This data represents
approximately two-thirds of the Company's U.S. mass-market
dollar volume.
(3) North America includes the United States and Canada.
Forward-Looking Statements
Statements made in this press release which are not historical
facts, including statements about the Company's plans, strategies,
beliefs and expectations, are forward-looking and subject 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, except for the Company's ongoing obligations under the U.S.
federal securities laws, the Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result of
new information, future events or otherwise. In particular, the
Company does not generally publish its strategic plans or make
external projections of its anticipated financial position or results
of operations or the type of forward-looking information regarding its
strategic plans included in this press release, including anticipated
changes in retail merchandising space, growth opportunities, Adjusted
EBITDA, net sales, incremental returns and allowances and projected
launch costs. Accordingly, except for the Company's ongoing
obligations under the U.S. federal securities laws, the Company does
not intend to update or otherwise revise the forward-looking
information regarding its strategic plans to reflect actual results of
operations, changes in financial condition, changes in estimates,
expectations or assumptions or other circumstances arising and/or
existing since the preparation of this press release or to reflect the
occurrence of any unanticipated events. Further, the Company does not
intend to update or revise the forward-looking information regarding
its strategic plans to reflect changes in general economic, industry
or cosmetics category conditions. Such forward-looking statements
include, without limitation, the Company's expectations, plans and/or
beliefs: (i) concerning its overall growth outlook, including that it
will drive growth by leveraging its new product development capability
to strengthen its important base franchises, that its brand
initiatives will drive category growth and create sustainable value in
the category and in the Company's business and that it will continue
to invest appropriately behind the business to ensure its marketplace
success; (ii) that it will gain approximately 25% in color cosmetics
retail merchandising space in 2006; (iii) that the major brand
initiatives will generate net sales of approximately $30 to $40
million for the full year of 2005, after the full-year impact of some
$40 million of incremental provisions for returns and allowances
associated with the launch of these initiatives; (iv) that the total
upfront launch and related costs in 2005, including the $40 million of
incremental provisions for returns and allowances, as well as
accelerated amortization and other launch costs, will be approximately
$75 million and that the 2005 related shipments of the two launches
will significantly, but not fully, offset these costs; (v) that
retailers are approaching inventory and working capital management
with caution due, in part, to the recent decline in consumer
confidence, which the Company believes is currently slowing shipment
trends in North America, and that because of this, as well as its
investment in the initiatives, the Company's Adjusted EBITDA for 2005
will be approximately $170 million; and (vi) that 2006 will prove to
be a very good year for the Company, including strong growth in both
sales and Adjusted EBITDA, supported by significant investment
spending in 2006, and that the Company will benefit from its
continuing actions to strengthen its existing franchises, bring
exciting new products to the marketplace and achieve success of its
two new major brand initiatives. Actual results may differ materially
from such forward-looking statements for a number of reasons,
including those set forth in the Company's filings with the Securities
and Exchange Commission, including the Company's Annual Report on Form
10-K/A for the year ended December 31, 2004, and the Company's
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that it
files with the SEC during 2005 (which may be viewed on the SEC's
website at http://www.sec.gov or on the Company's website at
http://www.revloninc.com), as well as the following reasons: (i)
difficulties, delays or higher than expected costs to generate the
Company's anticipated growth, net sales and/or Adjusted EBITDA,
including in 2005 and 2006 or beyond, such as due to less than
anticipated net sales, higher than anticipated returns, less than
anticipated shipments associated with the launch of the Company's
brand initiatives, higher than expected expenses, less than
anticipated retail customer or consumer acceptance of these
initiatives, decreased sales of the Company's existing products as a
result of the sale of products associated with these initiatives
and/or competitive activities; (ii) difficulties or delays in securing
the expected increase in color cosmetics retail merchandising space in
2006, such as due to less than anticipated retail customer or consumer
acceptance of these initiatives; and (iii) actions by the Company's
retail customers impacting the Company's financial performance,
including in response to decreased consumer spending in response to
weak economic conditions or weakness in the category, changes in
consumer preferences, such as reduced consumer demand for the
Company's color cosmetics and other current products, changes in
consumer purchasing habits, including with respect to shopping
channels, lower than expected retail customer acceptance or consumer
acceptance of the Company's brand initiatives, decreased sales of the
Company's existing products as a result of these initiatives, changes
in the competitive environment, actions by the Company's customers,
such as retailer inventory management, and actions by the Company's
competitors, including business combinations, technological
breakthroughs, new products offerings, promotional spending and
marketing and promotional successes.
REVLON, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(dollars in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
2005 2004 2005 2004
------------ ----------- ------------ ------------
Net sales $ 275.3 $ 294.4 $ 894.5 $ 918.9
Cost of sales 117.0 117.9 350.1 353.4
------------ ----------- ------------ ------------
Gross profit 158.3 176.5 544.4 565.5
Selling, general
and administrative
expenses 190.6 177.9 577.6 549.2
Restructuring
(benefit) costs
and other, net - 0.6 1.5 -
------------ ----------- ------------ ------------
Operating income
(loss) (32.3) (2.0) (34.7) 16.3
------------ ----------- ------------ ------------
Other expenses
(income):
Interest expense 33.2 28.8 94.7 102.4
Interest income (1.4) (1.3) (4.8) (3.4)
Amortization of
debt issuance
costs 1.8 1.7 5.1 6.8
Foreign currency
(gains) losses,
net (2.7) (1.2) (1.4) 0.4
Loss on early
extinguishment of
debt - 58.8 9.0 91.4
Miscellaneous,
net (0.1) (0.1) 1.5 2.4
------------ ----------- ------------ ------------
Other expenses,
net 30.8 86.7 104.1 200.0
------------ ----------- ------------ ------------
Loss before income
taxes (63.1) (88.7) (138.8) (183.7)
Provision for
income taxes 2.3 2.9 9.2 5.0
------------ ----------- ------------ ------------
Net loss $ (65.4)$ (91.6)$ (148.0)$ (188.7)
============ =========== ============ ============
Basic and diluted
net loss per
common share $ (0.18)$ (0.25)$ (0.40)$ (0.68)
============ =========== ============ ============
Weighted average
number of common
shares
outstanding:
Basic and diluted 371,464,864 370,117,944 370,948,937 277,863,756
=========== ============ ============ ============
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in millions)
September 30, December 31,
ASSETS 2005 2004
------------- ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 77.7 $ 120.8
Trade receivables, net 158.3 200.6
Inventories 226.4 154.7
Prepaid expenses and other 72.8 69.7
------------- ------------
Total current assets 535.2 545.8
Property, plant and equipment, net 116.0 118.7
Other assets 142.6 149.9
Goodwill, net 186.0 186.1
------------- ------------
Total assets $ 979.8 $ 1,000.5
============= ============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Short-term borrowings - third parties $ 40.4 $ 36.6
Current portion of long-term debt -
third parties - 10.5
Accounts payable and overdraft 111.4 95.2
Accrued expenses and other 297.8 283.2
------------- ------------
Total current liabilities 449.6 425.5
Long-term debt - third parties 1,413.3 1,308.2
Other long-term liabilities 285.5 286.7
Total stockholders' deficiency (1,168.6) (1,019.9)
------------- ------------
Total liabilities and stockholders'
deficiency $ 979.8 $ 1,000.5
============= ============
REVLON, INC. AND SUBSIDIARIES
UNAUDITED ADJUSTED EBITDA RECONCILIATION
(dollars in millions)
Three Months Ended
September 30,
--------------------------
2005 2004
------------ ------------
(Unaudited)
Reconciliation to net loss:
- -------------------------------------------
Net loss $ (65.4) $ (91.6)
Interest expense, net 31.8 27.5
Amortization of debt issuance costs 1.8 1.7
Foreign currency (gains) losses, net (2.7) (1.2)
Loss on early extinguishment of debt - 58.8
Miscellaneous, net (0.1) (0.1)
Provision for income taxes 2.3 2.9
Depreciation and amortization 26.2 27.7
------------ ------------
Adjusted EBITDA $ (6.1) $ 25.7
============ ============
Nine Months Ended
September 30,
--------------------------
2005 2004
------------ ------------
(Unaudited)
Reconciliation to net loss:
- -------------------------------------------
Net loss $ (148.0) $ (188.7)
Interest expense, net 89.9 99.0
Amortization of debt issuance costs 5.1 6.8
Foreign currency (gains) losses, net (1.4) 0.4
Loss on early extinguishment of debt 9.0 91.4
Miscellaneous, net 1.5 2.4
Provision for income taxes 9.2 5.0
Depreciation and amortization 74.5 77.6
------------ ------------
Adjusted EBITDA $ 39.8 $ 93.9
============ ============
REVLON, INC. AND SUBSIDIARIES
UNAUDITED ADJUSTED EBITDA RECONCILIATION
(dollars in millions)
ALL AMOUNTS ARE APPROXIMATED
Forecasted
2005
-------------
(Unaudited)
Reconciliation to net loss:
--------------------------------------------
Net loss $ (84)
Interest expense, net 123
Amortization of debt issuance costs 7
Foreign currency (gains) losses, net (3)
Loss on early extinguishment of debt 9
Miscellaneous, net 2
Provision for income taxes 13
Depreciation and amortization 104
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Adjusted EBITDA $ 170
=============
Please see the Company's Forward-Looking Statements Disclaimer
regarding forward-looking statements set forth above and in this
press release.
CONTACT: Revlon, Inc.
Investor Relations:
Maria A. Sceppaguercio, 212-527-5230
or
Media:
Scott Behles, 212-527-4718