|
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
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))
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on
which
registered
|
|
Revlon, Inc.
|
|
|
Emerging Growth Company
|
|
Revlon, Inc.
|
Yes ☐ No
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01. |
Financial Statements and Exhibits.
|
(d)
|
Exhibits
|
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release, dated March 11, 2021.
|
REVLON, INC.
|
|||
By:
|
/s/ Grace Fu
|
||
Grace Fu
|
|||
Deputy General Counsel & Corporate Secretary
|
|||
March 11, 2021
|
Exhibit No.
|
Description
|
Press Release, dated March 11, 2021.
|
• |
As Reported net sales were $626.6 million in the fourth quarter of 2020, compared to $699.4 million during the prior-year period, a decline of $72.8 million, or 10.4%. E-commerce net sales
increased approximately 39% versus the prior-year period and represented approximately 20% of fourth quarter 2020 net sales, versus approximately 13% in the prior-year period. The Company experienced strong double-digit growth in most
regions across its mass, prestige and professional e-commerce businesses. As Reported net sales include approximately $118 million of estimated negative impacts associated with the ongoing and prolonged COVID-19 pandemic. Excluding the
COVID-19 impacts, As Reported net sales increased by $45.2 million, or 6.5%, as compared to the prior-year period.
|
• |
As Reported operating income was $28.4 million in the fourth quarter of 2020, compared to $76.7 million during the prior-year period. The lower operating income was driven primarily by the adverse
impacts of the COVID-19 pandemic impact on net sales, sales mix and higher manufacturing overhead absorption costs along with costs associated with the Company’s various debt refinancing activities. These negative impacts were partially
offset by $10.7 million in lower selling, general and administrative expenses (SG&A), driven in part by cost reductions associated with the Company's restructuring program and additional actions specifically implemented to mitigate the
adverse impact of the COVID-19 pandemic on the Company's operating results. Despite the higher costs associated with the impacts of the COVID-19 pandemic, the Company was able to improve its gross margin by160 basis points, driven by cost
reductions associated with the Company's restructuring program along with favorable foreign currency impacts. Adjusted operating income in the fourth quarter of 2020 increased by $1.8 million to $75.0 million from $73.2 million in the
prior-year period.
|
• |
As Reported net loss was $233.8 million in the fourth quarter of 2020, versus $25.8 million net income in the prior-year period. The net loss was driven primarily by a $189.5 million non-cash
charge related to an increase in the valuation allowance for the Company's net federal deferred tax assets as well as higher interest expense of $14.4 million. The Adjusted Net Income was $32.7 million in the fourth quarter of 2020,
compared to Adjusted Net Income of $23.6 million during the prior-year period.
|
• |
Adjusted EBITDA(a) in the fourth quarter of 2020 was $111.8 million, comparable to the prior-year period. Despite the impact of the COVID-19 pandemic to net sales, the Company was able to improve
its Adjusted EBITDA margin to 17.8% during the fourth quarter of 2020, versus 15.7% in the prior-year period. The Company achieved this expansion of Adjusted EBITDA margin through prioritization of brand support focused primarily on
e-commerce and priority or lead growth areas, indirect spend control, and the ongoing cost reduction initiatives from the previously announced Revlon 2020 Restructuring Program.
|
• |
The 2020 Restructuring Program is on track to achieve the previously announced $200 million to $230 million of annualized cost reductions by the end of 2022. The Company achieved $127 million of
cost reductions under this program during 2020.
|
• |
As of December 31, 2020, the Company had total liquidity of $249.9 million.
|
• |
During March 2021, the Company extended or refinanced two of its maturing debt facilities:
|
• |
On March 8, 2021, the Company closed an amendment to its 2016 $450 million asset-based revolving credit agreement
with Citibank, N.A. as the collateral agent and administrative agent. The amendment, among other things, extends the scheduled maturity of the revolving
credit facility thereunder from September 2021 to June 8, 2023.
|
• |
On March 2, 2021, the Company closed on a $75 million asset-based term loan facility with Blue Torch Finance LLC as the collateral agent and administrative agent. The new facility, which is scheduled to mature on March 2, 2024, replaces the 2018 Foreign Asset-Based Term Loan that was scheduled to mature in July 2021. The
proceeds of the term loan were used to repay the Company’s 2018 foreign asset-based term loan and fund the Company's ongoing liquidity needs.
|
• |
As previously announced, the Company's Exchange Offer and Consent Solicitation was successfully closed on November 13, 2020, and the 5.75% Senior Notes due 2021 and accrued interest were
immediately retired with the closure.
|
Three Months Ended December 31,
(Unaudited)
|
||||||||||||||||||||||||
2020
|
2019
|
As
Reported
|
Adjusted
(*)
|
|||||||||||||||||||||
(USD millions, except per share data)
|
As
Reported
|
Adjusted
(*)
|
As
Reported
|
Adjusted
(*)
|
% Change
|
% Change
|
||||||||||||||||||
Net Sales
|
$
|
626.6
|
$
|
626.6
|
$
|
699.4
|
$
|
712.6
|
(10.4
|
)%
|
(12.1
|
)%
|
||||||||||||
Gross Profit
|
366.8
|
375.5
|
397.9
|
411.9
|
(7.8
|
)%
|
(8.8
|
)%
|
||||||||||||||||
Gross Margin
|
58.5
|
%
|
59.9
|
%
|
56.9
|
%
|
57.8
|
%
|
160bps
|
210bps
|
||||||||||||||
Operating Income
|
$
|
28.4
|
$
|
75.0
|
$
|
76.7
|
$
|
73.2
|
(63.0
|
)%
|
2.5
|
%
|
||||||||||||
Net (Loss) Income
|
(233.8
|
)
|
32.7
|
25.8
|
23.6
|
N/
|
M
|
38.6
|
%
|
|||||||||||||||
Adjusted EBITDA
|
111.8
|
111.9
|
(0.1
|
)%
|
||||||||||||||||||||
Diluted (Loss) Income per Common Share
|
$
|
(4.37
|
)
|
$
|
0.61
|
$
|
0.49
|
$
|
0.44
|
N/
|
M
|
38.6
|
%
|
• |
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 website, 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; Cutex in nail care products; and Mitchum in anti-perspirant deodorants. 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: (i) Juicy Couture (which are also sold
direct-to-consumer on its juicycouturebeauty.com website), John Varvatos and AllSaints in prestige fragrances; (ii) Britney Spears, Elizabeth Taylor, Christina Aguilera,
Jennifer Aniston and Mariah Carey in celebrity fragrances; and (iii) Curve, Giorgio Beverly Hills, Ed Hardy, Charlie, Lucky Brand, ‹PS› (logo of former Paul Sebastian brand), Alfred Sung, Halston, Geoffrey Beene, and White Diamonds in mass fragrances.
|
Three Months Ended December 31,
(Unaudited)
|
||||||||||||||||
Net Sales
|
||||||||||||||||
As Reported
|
As Reported
|
|||||||||||||||
(USD millions)
|
2020
|
2019
|
% Change
|
XFX
% Change
|
||||||||||||
Revlon
|
$
|
205.6
|
$
|
242.7
|
(15.3
|
)%
|
(16.4
|
)%
|
||||||||
Elizabeth Arden
|
181.1
|
168.0
|
7.8
|
%
|
3.8
|
%
|
||||||||||
Portfolio
|
103.2
|
133.7
|
(22.8
|
)%
|
(23.4
|
)%
|
||||||||||
Fragrances
|
136.7
|
155.0
|
(11.8
|
)%
|
(12.4
|
)%
|
||||||||||
Total
|
$
|
626.6
|
$
|
699.4
|
(10.4
|
)%
|
(12.0
|
)%
|
Three Months Ended December 31,
(Unaudited)
|
||||||||||||||||
Segment Profit
|
||||||||||||||||
As Reported
|
As Reported
|
|||||||||||||||
(USD millions)
|
2020
|
2019
|
% Change
|
XFX
% Change
|
||||||||||||
Revlon
|
$
|
45.1
|
$
|
42.7
|
5.6
|
%
|
4.2
|
%
|
||||||||
Elizabeth Arden
|
21.2
|
20.5
|
3.4
|
%
|
(2.0
|
)%
|
||||||||||
Portfolio
|
13.5
|
20.0
|
(32.5
|
)%
|
(34.5
|
)%
|
||||||||||
Fragrances
|
32.0
|
28.7
|
11.5
|
%
|
10.8
|
%
|
||||||||||
Total
|
$
|
111.8
|
$
|
111.9
|
(0.1
|
)%
|
(2.1
|
)%
|
Three Months Ended December 31,
(Unaudited)
|
||||||||||||||||
(USD millions)
|
2020
As Reported
|
2019
As Reported
|
As Reported
% Change
|
As Reported XFX
% Change
|
||||||||||||
Net Sales:
|
||||||||||||||||
Revlon
|
||||||||||||||||
North America
|
$
|
115.4
|
$
|
129.3
|
(10.8
|
)%
|
(10.8
|
)%
|
||||||||
International
|
90.2
|
113.4
|
(20.5
|
)%
|
(22.8
|
)%
|
||||||||||
Elizabeth Arden
|
||||||||||||||||
North America
|
$
|
37.5
|
$
|
36.5
|
2.7
|
%
|
2.7
|
%
|
||||||||
International
|
143.6
|
131.5
|
9.2
|
%
|
4.0
|
%
|
||||||||||
Portfolio
|
||||||||||||||||
North America
|
$
|
65.1
|
$
|
84.4
|
(22.9
|
)%
|
(23.0
|
)%
|
||||||||
International
|
38.1
|
49.3
|
(22.7
|
)%
|
(24.1
|
)%
|
||||||||||
Fragrances
|
||||||||||||||||
North America
|
$
|
102.3
|
$
|
110.8
|
(7.7
|
)%
|
(7.7
|
)%
|
||||||||
International
|
34.4
|
44.2
|
(22.2
|
)%
|
(24.2
|
)%
|
||||||||||
Total Net Sales
|
$
|
626.6
|
$
|
699.4
|
(10.4
|
)%
|
(12.0
|
)%
|
||||||||
Total Net Sales Summary
|
||||||||||||||||
North America
|
$
|
320.3
|
$
|
361.0
|
(11.3
|
)%
|
(11.3
|
)%
|
||||||||
International
|
306.3
|
338.4
|
(9.5
|
)%
|
(12.7
|
)%
|
• |
As Reported net sales were $1,904.3 million in 2020, compared to $2,419.6 million during the prior year, a decline of 21.3%. The lower net sales were driven primarily by the negative impacts
associated with the ongoing and prolonged COVID-19 pandemic. As Reported net sales include approximately $505 million of estimated negative impacts associated with the COVID-19 pandemic. This decline was partially offset by approximately
40% higher e-commerce net sales versus the prior year, which represented approximately 16% of full-year 2020 net sales, versus approximately 9% in the prior year. Excluding the COVID-19 impacts, As Reported net sales decreased by $10.8
million compared to the prior year.
|
• |
As Reported operating loss was $226.3 million in 2020, compared to $60.7 million of income during the prior year. The higher net loss was driven primarily by the $144.1 million non-cash intangible
impairment charges and by the adverse impacts of the COVID-19 pandemic impact on net sales, sales mix and higher manufacturing overhead absorption and other costs, along with costs associated with the Company’s various debt refinancing
activities. These negative impacts were partially offset by $244.8 million in lower SG&A 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 the COVID-19 pandemic on the Company's operating results.
|
• |
As Reported net loss was $619.0 million in 2020, compared to a $157.7 million net loss in the prior year. The higher net loss was driven primarily by the lower operating income described above, a
$189.5 million non-cash charge related to an increase in the valuation allowance for the Company's net federal deferred tax assets during the fourth quarter of 2020, and higher interest expense. The Adjusted Net Loss was $145.8 million in
2020, compared to a $130.3 million Adjusted Net Loss during the prior year.
|
• |
Adjusted EBITDA(a) in 2020 was $240.1 million, compared to $266.1 million in the prior year, a decrease of 9.8% versus the prior year, driven primarily by lower net sales as a result of the
COVID-19 pandemic, partially offset by cost reductions associated with the Company's restructuring program and additional actions specifically implemented to mitigate the adverse impact of the COVID-19 pandemic.
|
Year Ended December 31,
(Unaudited)
|
||||||||||||||||||||||||
2020
|
2019
|
As
Reported
|
Adjusted
(*)
|
|||||||||||||||||||||
(USD millions, except per share data)
|
As
Reported
|
Adjusted
(*)
|
As
Reported
|
Adjusted
(*)
|
% Change
|
% Change
|
||||||||||||||||||
Net Sales
|
$
|
1,904.3
|
$
|
1,908.5
|
$
|
2,419.6
|
$
|
2,432.8
|
(21.3
|
)%
|
(21.6
|
)%
|
||||||||||||
Gross Profit
|
1,043.8
|
1,089.8
|
1,367.4
|
1,385.6
|
(23.7
|
)%
|
(21.3
|
)%
|
||||||||||||||||
Gross Margin
|
54.8
|
%
|
57.1
|
%
|
56.5
|
%
|
57.0
|
%
|
-170bps
|
10bps
|
||||||||||||||
Operating (Loss) Income
|
$
|
(226.3
|
)
|
$
|
86.4
|
$
|
60.7
|
$
|
95.1
|
N/
|
M
|
(9.1
|
)%
|
|||||||||||
Net Loss
|
(619.0
|
)
|
(145.8
|
)
|
(157.7
|
)
|
(130.3
|
)
|
N/
|
M
|
(11.9
|
)%
|
||||||||||||
Adjusted EBITDA
|
240.1
|
266.1
|
(9.8
|
)%
|
||||||||||||||||||||
Diluted Loss per Common Share
|
$
|
(11.59
|
)
|
$
|
(2.73
|
)
|
$
|
(2.97
|
)
|
$
|
(2.45
|
)
|
N/
|
M
|
(11.4
|
)%
|
Year Ended December 31,
(Unaudited)
|
||||||||||||||||
(USD millions)
|
2020 As
Reported
|
2019 As
Reported
|
As Reported %
Change
|
As Reported
XFX % Change
|
||||||||||||
Total Net Sales Summary
|
||||||||||||||||
North America
|
$
|
986.7
|
$
|
1,225.7
|
(19.5
|
)%
|
(19.3
|
)%
|
||||||||
International
|
917.6
|
1,193.9
|
(23.1
|
)%
|
(18.7
|
)%
|
||||||||||
Total Net Sales
|
$
|
1,904.3
|
$
|
2,419.6
|
(21.3
|
)%
|
(19.0
|
)%
|
(USD millions)
|
||||||||
Net Loss Adjustments to EBITDA
|
Q4 2020
|
Q4 2019
|
||||||
(Unaudited)
|
||||||||
Non-Operating Items:
|
||||||||
Non-cash stock-based compensation expense
|
$
|
1.8
|
$
|
0.4
|
||||
Restructuring and related charges
|
7.4
|
3.1
|
||||||
Acquisition, integration and divestiture costs
|
0.8
|
3.2
|
||||||
Gain on divested assets
|
—
|
(26.6
|
)
|
|||||
Financial control remediation and sustainability actions and related charges
|
1.1
|
3.6
|
||||||
Excessive coupon redemption
|
—
|
13.2
|
||||||
COVID-19 charges
|
11.2
|
—
|
||||||
Capital structure and related charges
|
26.1
|
—
|
(USD millions)
|
||||||||
Net Loss Adjustments to EBITDA
|
YTD 2020
|
YTD 2019
|
||||||
(Unaudited)
|
||||||||
Non-Operating Items:
|
||||||||
Non-cash stock-based compensation expense
|
$
|
10.4
|
$
|
8.1
|
||||
Restructuring and related charges
|
68.7
|
30.5
|
||||||
Acquisition, integration and divestiture costs
|
5.0
|
3.9
|
||||||
Gain on divested assets
|
(0.5
|
)
|
(26.6
|
)
|
||||
Financial control remediation and sustainability actions and related charges
|
9.6
|
13.4
|
||||||
Impairment charges
|
144.1
|
—
|
||||||
Excessive coupon redemption
|
4.2
|
13.2
|
||||||
COVID-19 charges
|
46.3
|
—
|
||||||
Capital structure and related charges
|
35.3
|
—
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Net sales
|
$
|
626.6
|
$
|
699.4
|
$
|
1,904.3
|
$
|
2,419.6
|
||||||||
Cost of sales
|
259.8
|
301.5
|
860.5
|
1,052.2
|
||||||||||||
Gross profit
|
366.8
|
397.9
|
1,043.8
|
1,367.4
|
||||||||||||
Selling, general and administrative expenses
|
332.7
|
343.4
|
1,071.8
|
1,316.6
|
||||||||||||
Acquisition, integration and divestiture costs
|
0.8
|
3.2
|
5.0
|
3.9
|
||||||||||||
Restructuring charges and other, net
|
4.9
|
1.2
|
49.7
|
12.8
|
||||||||||||
Impairment charges
|
—
|
—
|
144.1
|
—
|
||||||||||||
Gain on divested assets
|
—
|
(26.6
|
)
|
(0.5
|
)
|
(26.6
|
)
|
|||||||||
Operating income (loss)
|
28.4
|
76.7
|
(226.3
|
)
|
60.7
|
|||||||||||
Other expenses:
|
||||||||||||||||
Interest expense, net
|
65.3
|
50.9
|
243.3
|
196.6
|
||||||||||||
Amortization of debt issuance costs
|
9.0
|
4.2
|
26.8
|
14.6
|
||||||||||||
Gain on early extinguishment of debt, net
|
—
|
—
|
(43.1
|
)
|
—
|
|||||||||||
Foreign currency gains, net
|
(15.1
|
)
|
(10.9
|
)
|
(6.0
|
)
|
(1.9
|
)
|
||||||||
Miscellaneous, net
|
(1.0
|
)
|
8.8
|
12.9
|
16.4
|
|||||||||||
Other expenses
|
58.2
|
53.0
|
233.9
|
225.7
|
||||||||||||
(Loss) income from continuing operations before income taxes
|
(29.8
|
)
|
23.7
|
(460.2
|
)
|
(165.0
|
)
|
|||||||||
Provision for income taxes
|
204.0
|
3.4
|
158.8
|
0.2
|
||||||||||||
(Loss) income from continuing operations, net of taxes
|
(233.8
|
)
|
20.3
|
(619.0
|
)
|
(165.2
|
)
|
|||||||||
Income from discontinued operations, net of taxes
|
—
|
5.5
|
—
|
7.5
|
||||||||||||
Net (loss) income
|
$
|
(233.8
|
)
|
$
|
25.8
|
$
|
(619.0
|
)
|
$
|
(157.7
|
)
|
|||||
Other comprehensive income (loss):
|
||||||||||||||||
Foreign currency translation adjustments
|
2.9
|
(2.4
|
)
|
10.2
|
(2.9
|
)
|
||||||||||
Amortization of pension related costs, net of tax
|
2.1
|
1.8
|
11.4
|
9.0
|
||||||||||||
Pension re-measurement, net of tax
|
(52.1
|
)
|
(19.3
|
)
|
(52.1
|
)
|
(19.3
|
)
|
||||||||
Other comprehensive (loss) income, net
|
(47.1
|
)
|
(19.9
|
)
|
(30.5
|
)
|
(13.2
|
)
|
||||||||
Total comprehensive (loss) income
|
$
|
(280.9
|
)
|
$
|
5.9
|
$
|
(649.5
|
)
|
$
|
(170.9
|
)
|
|||||
Basic and Diluted (loss) earnings per common share:
|
||||||||||||||||
Continuing operations
|
$
|
(4.37
|
)
|
$
|
0.38
|
$
|
(11.59
|
)
|
$
|
(3.11
|
)
|
|||||
Discontinued operations
|
—
|
0.10
|
—
|
0.14
|
||||||||||||
Net (loss) income
|
$
|
(4.37
|
)
|
$
|
0.49
|
$
|
(11.59
|
)
|
$
|
(2.97
|
)
|
|||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
53,488,701
|
53,153,033
|
53,401,324
|
53,081,321
|
||||||||||||
Diluted
|
53,488,701
|
53,153,033
|
53,401,324
|
53,081,321
|
December 31,
2020
|
December 31,
2019
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
97.1
|
$
|
104.3
|
||||
Trade receivables, net
|
352.3
|
423.4
|
||||||
Inventories, net
|
462.6
|
448.4
|
||||||
Prepaid expenses and other current assets
|
134.4
|
135.3
|
||||||
Total current assets
|
1,046.4
|
1,111.4
|
||||||
Property, plant and equipment, net
|
352.0
|
408.6
|
||||||
Deferred income taxes
|
25.7
|
175.1
|
||||||
Goodwill
|
563.7
|
673.7
|
||||||
Intangible assets, net
|
430.8
|
490.7
|
||||||
Other assets
|
109.1
|
121.1
|
||||||
Total assets
|
$
|
2,527.7
|
$
|
2,980.6
|
||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
|
||||||||
Current liabilities:
|
||||||||
Short-term borrowings
|
$
|
2.5
|
$
|
2.2
|
||||
Current portion of long-term debt
|
217.5
|
288.0
|
||||||
Accounts payable
|
203.3
|
251.8
|
||||||
Accrued expenses and other current liabilities
|
420.9
|
414.9
|
||||||
Total current liabilities
|
844.2
|
956.9
|
||||||
Long-term debt
|
3,105.0
|
2,906.2
|
||||||
Long-term pension and other post-retirement plan liabilities
|
212.4
|
181.2
|
||||||
Other long-term liabilities
|
228.1
|
157.5
|
||||||
Total stockholders' deficiency
|
(1,862.0
|
)
|
(1,221.2
|
)
|
||||
Total liabilities and stockholders' deficiency
|
$
|
2,527.7
|
$
|
2,980.6
|
Year Ended
December 31,
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
2020 |
2019
|
||||||
Net loss
|
$
|
(619.0
|
) |
$
|
(157.7
|
) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
143.3
|
162.9
|
||||||
Foreign currency losses from re-measurement
|
(6.0
|
)
|
(1.9
|
) |
||||
Amortization of debt discount
|
1.4
|
1.6
|
||||||
Stock-based compensation amortization
|
10.4
|
8.1
|
||||||
Impairment charges
|
144.1
|
—
|
||||||
Provision (benefit) from deferred income taxes
|
154.7
|
(29.8
|
) | |||||
Amortization of debt issuance costs
|
26.8
|
14.6
|
||||||
Gain on divested assets
|
(0.5
|
)
|
(26.6
|
)
|
||||
Pension and other post-retirement cost
|
4.0
|
7.2
|
||||||
Gain on early extinguishment of debt, net
|
(43.1
|
)
|
—
|
|||||
Paid-in-kind interest expense on the 2020 BrandCo Facilities
|
10.8
|
—
|
||||||
Change in assets and liabilities:
|
||||||||
Decrease (increase) in trade receivables
|
76.7
|
9.3
|
||||||
Increase (decrease) in inventories
|
(8.4
|
)
|
74.5
|
|||||
Decrease (increase) in prepaid expenses and other current assets
|
8.0
|
16.8
|
||||||
(Decrease) increase in accounts payable
|
(53.1
|
)
|
(73.2
|
)
|
||||
(Decrease) increase in accrued expenses and other current liabilities
|
(9.9
|
)
|
(42.4
|
) |
||||
Increase (decrease) in deferred revenue
|
71.6
|
—
|
||||||
Pension and other post-retirement plan contributions
|
(9.8
|
)
|
(12.1
|
) | ||||
Purchases of permanent displays
|
(30.8
|
)
|
(46.2
|
) | ||||
Other, net
|
31.5
|
26.6
|
||||||
Net cash used in operating activities
|
(97.3
|
)
|
(68.3
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital expenditures
|
(10.3
|
)
|
(29.0
|
)
|
||||
Proceeds from the sale of certain assets
|
—
|
31.1
|
||||||
Net cash (used in) provided by investing activities
|
(10.3
|
)
|
2.1
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net decrease in short-term borrowings and overdraft
|
4.3
|
(17.3
|
) | |||||
Borrowings under the 2020 BrandCo Facilities
|
880.0
|
—
|
||||||
Repurchase of the 5.75% Senior Notes
|
(281.4
|
)
|
—
|
|||||
Net borrowings under the Amended 2016 Revolving Credit Facility
|
(133.5
|
)
|
(62.6
|
)
|
||||
Net borrowings (repayments) under the 2019 Term Loan Facility
|
(200.0
|
)
|
200.0
|
|||||
Repayment under the 2018 Foreign Asset-Based Term Loan
|
(31.4
|
)
|
—
|
|||||
Repayments under the 2016 Term Loan Facility
|
(11.5
|
)
|
(18.0
|
)
|
||||
Payment of financing costs
|
(122.0
|
)
|
(15.3
|
) | ||||
Tax withholdings related to net share settlements of restricted stock and RSUs
|
(1.7
|
)
|
(1.6
|
) | ||||
Other financing activities
|
(0.3
|
)
|
(0.9
|
) | ||||
Net cash provided by financing activities
|
102.5
|
84.3
|
||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
3.1
|
(1.1
|
) |
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(2.0
|
)
|
17.0
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
104.5
|
87.5
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
102.5
|
$
|
104.5
|
||||
Supplemental schedule of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
238.6
|
$
|
194.6
|
||||
Income taxes, net of refunds
|
12.8
|
9.9
|
||||||
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
|
$
|
846.0
|
$ | — | ||||
Paid-in-kind debt issuance costs capitalized to the 2020 BrandCo Facilities
|
29.1
|
—
|
||||||
Paid-in-kind interest capitalized to the 2020 BrandCo Facilities
|
9.6
|
—
|
||||||
Paid-in-kind fees for the B-2 Loans in the November 5.75% Senior Notes Exchange Offer
|
17.5
|
—
|
Three Months Ended
December 31,
|
||||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
Reconciliation to net (loss) income:
|
||||||||
Net (loss) income
|
$
|
(233.8
|
)
|
$
|
25.8
|
|||
Income (loss) from discontinued operations, net of taxes
|
—
|
5.5
|
||||||
Loss from continuing operations, net of taxes
|
(233.8
|
)
|
20.3
|
|||||
Interest expense, net
|
65.3
|
50.9
|
||||||
Amortization of debt issuance costs
|
9.0
|
4.2
|
||||||
Foreign currency losses, net
|
(15.1
|
)
|
(10.9
|
)
|
||||
Provision for income taxes
|
204.0
|
3.4
|
||||||
Depreciation and amortization
|
35.0
|
38.3
|
||||||
Miscellaneous, net
|
(1.0
|
)
|
8.8
|
|||||
EBITDA
|
$
|
63.4
|
$
|
115.0
|
||||
Non-operating items:
|
||||||||
Non-cash stock-based compensation expense
|
1.8
|
0.4
|
||||||
Restructuring and related charges
|
7.4
|
3.1
|
||||||
Acquisition, integration and divestiture costs
|
0.8
|
3.2
|
||||||
Gain on divested assets
|
—
|
(26.6
|
)
|
|||||
Financial control remediation and sustainability actions and related charges
|
1.1
|
3.6
|
||||||
Excessive coupon redemption
|
—
|
13.2
|
||||||
COVID-19 charges
|
11.2
|
—
|
||||||
Capital structure and related charges
|
26.1
|
—
|
||||||
Adjusted EBITDA
|
$
|
111.8
|
$
|
111.9
|
Year Ended
December 31,
|
||||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
Reconciliation to net (loss) income:
|
||||||||
Net loss
|
$
|
(619.0
|
)
|
$
|
(157.7
|
)
|
||
Income (loss) from discontinued operations, net of taxes
|
—
|
7.5
|
||||||
Loss from continuing operations, net of taxes
|
(619.0
|
)
|
(165.2
|
)
|
||||
Interest expense, net
|
243.3
|
196.6
|
||||||
Amortization of debt issuance costs
|
26.8
|
14.6
|
||||||
Gain on early extinguishment of debt
|
(43.1
|
)
|
—
|
|||||
Foreign currency losses, net
|
(6.0
|
)
|
(1.9
|
)
|
||||
Provision for income taxes
|
158.8
|
0.2
|
||||||
Depreciation and amortization
|
143.3
|
162.9
|
||||||
Miscellaneous, net
|
12.9
|
16.4
|
||||||
EBITDA
|
$
|
(83.0
|
)
|
$
|
223.6
|
|||
Non-operating items:
|
||||||||
Non-cash stock-based compensation expense
|
10.4
|
8.1
|
||||||
Restructuring and related charges
|
68.7
|
30.5
|
||||||
Acquisition, integration and divestiture costs
|
5.0
|
3.9
|
||||||
Gain on divested assets
|
(0.5
|
)
|
(26.6
|
)
|
||||
Financial control remediation and sustainability actions and related charges
|
9.6
|
13.4
|
||||||
Impairment charges
|
144.1
|
—
|
||||||
Excessive coupon redemption
|
4.2
|
13.2
|
||||||
COVID-19 charges
|
46.3
|
—
|
||||||
Capital structure and related charges
|
35.3
|
—
|
||||||
Adjusted EBITDA
|
$
|
240.1
|
$
|
266.1
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Segment Profit:
|
||||||||||||||||
Revlon
|
$
|
45.1
|
$
|
42.7
|
$
|
86.5
|
$
|
101.2
|
||||||||
Elizabeth Arden
|
21.2
|
20.5
|
39.6
|
37.6
|
||||||||||||
Portfolio
|
13.5
|
20.0
|
47.4
|
45.0
|
||||||||||||
Fragrances
|
32.0
|
28.7
|
66.6
|
82.3
|
||||||||||||
Total Segment Profit/Adjusted EBITDA
|
$
|
111.8
|
$
|
111.9
|
$
|
240.1
|
$
|
266.1
|
||||||||
Reconciliation to (loss) income from continuing operations before income taxes:
|
||||||||||||||||
(Loss) income from continuing operations before income taxes
|
$
|
(29.8
|
)
|
$
|
23.7
|
$
|
(460.2
|
)
|
$
|
(165.0
|
)
|
|||||
Interest expense, net
|
65.3
|
50.9
|
243.3
|
196.6
|
||||||||||||
Amortization of debt issuance costs
|
9.0
|
4.2
|
26.8
|
14.6
|
||||||||||||
Gain on early extinguishment of debt
|
—
|
—
|
(43.1
|
)
|
—
|
|||||||||||
Foreign currency losses, net
|
(15.1
|
)
|
(10.9
|
)
|
(6.0
|
)
|
(1.9
|
)
|
||||||||
Miscellaneous, net
|
(1.0
|
)
|
8.8
|
12.9
|
16.4
|
|||||||||||
Operating income (loss)
|
28.4
|
76.7
|
(226.3
|
)
|
60.7
|
|||||||||||
Non-operating items:
|
||||||||||||||||
Restructuring and related charges
|
7.4
|
3.1
|
68.7
|
30.5
|
||||||||||||
Acquisition, integration and divestiture costs
|
0.8
|
3.2
|
5.0
|
3.9
|
||||||||||||
Gain on divested assets
|
—
|
(26.6
|
)
|
(0.5
|
)
|
(26.6
|
)
|
|||||||||
Financial control remediation and sustainability actions and related charges
|
1.1
|
3.6
|
9.6
|
13.4
|
||||||||||||
Impairment charges
|
—
|
—
|
144.1
|
—
|
||||||||||||
Excessive coupon redemption
|
—
|
13.2
|
4.2
|
13.2
|
||||||||||||
COVID-19 charges
|
11.2
|
—
|
46.3
|
—
|
||||||||||||
Capital structure and related charges
|
26.1
|
—
|
35.3
|
—
|
||||||||||||
Adjusted Operating income (loss)
|
75.0
|
73.2
|
86.4
|
95.1
|
||||||||||||
Non-cash stock-based compensation expense
|
1.8
|
0.4
|
10.4
|
8.1
|
||||||||||||
Depreciation and amortization
|
35.0
|
38.3
|
143.3
|
162.9
|
||||||||||||
Adjusted EBITDA
|
$
|
111.8
|
$
|
111.9
|
$
|
240.1
|
$
|
266.1
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Segment Net Sales
|
||||||||||||||||
Revlon
|
$
|
205.6
|
$
|
242.7
|
$
|
688.4
|
$
|
958.8
|
||||||||
Elizabeth Arden
|
181.1
|
168.0
|
463.5
|
520.0
|
||||||||||||
Portfolio
|
103.2
|
133.7
|
401.3
|
487.8
|
||||||||||||
Fragrances
|
136.7
|
155.0
|
351.1
|
453.0
|
||||||||||||
Total Segment Net Sales
|
$
|
626.6
|
$
|
699.4
|
$
|
1,904.3
|
$
|
2,419.6
|
||||||||
Non-operating items:
|
||||||||||||||||
Excessive coupon redemption
|
—
|
13.2
|
4.2
|
13.2
|
||||||||||||
Total Adjusted Net Sales
|
$
|
626.6
|
$
|
712.6
|
$
|
1,908.5
|
$
|
2,432.8
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Gross Profit
|
$
|
366.8
|
$
|
397.9
|
$
|
1,043.8
|
$
|
1,367.4
|
||||||||
Non-operating items:
|
||||||||||||||||
COVID-19 charges
|
8.7
|
—
|
35.7
|
—
|
||||||||||||
Excessive coupon redemption
|
—
|
13.2
|
4.2
|
13.2
|
||||||||||||
Financial control remediation and sustainability actions and related charges
|
—
|
—
|
6.1
|
—
|
||||||||||||
Restructuring and related charges
|
—
|
0.8
|
—
|
5.0
|
||||||||||||
Adjusted Gross Profit
|
$
|
375.5
|
$
|
411.9
|
$
|
1,089.8
|
$
|
1,385.6
|
Three Months Ended
December 31,
|
||||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
Reconciliation to net loss and diluted loss per share:
|
||||||||
Net (loss) income
|
$
|
(233.8
|
)
|
$
|
25.8
|
|||
Non-operating items (after-tax):
|
||||||||
Restructuring and related charges
|
9.4
|
2.4
|
||||||
Acquisition, integration and divestiture costs
|
1.7
|
2.5
|
||||||
Gain on divested assets
|
(0.1
|
)
|
(20.0
|
)
|
||||
Financial control remediation and sustainability actions and related charges
|
3.2
|
2.8
|
||||||
Impairment charges
|
(3.6
|
)
|
—
|
|||||
Excessive coupon redemption
|
0.9
|
10.1
|
||||||
COVID-19 charges
|
37.5
|
—
|
||||||
Capital structure and related charges
|
28.0
|
—
|
||||||
Valuation allowance on net federal deferred tax assets
|
189.5
|
—
|
||||||
Adjusted net income
|
$
|
32.7
|
$
|
23.6
|
||||
Net (loss) income:
|
||||||||
Diluted (loss) income per common share
|
(4.37
|
)
|
0.49
|
|||||
Adjustment to diluted (loss) income per common share
|
4.98
|
(0.05
|
)
|
|||||
Adjusted diluted (loss) income per common share
|
$
|
0.61
|
$
|
0.44
|
||||
U.S. GAAP weighted average number of common shares outstanding:
|
||||||||
Diluted
|
53,488,701
|
53,153,033
|
Year Ended
December 31,
|
||||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
Reconciliation to net loss and diluted loss per share:
|
||||||||
Net loss
|
$
|
(619.0
|
)
|
$
|
(157.7
|
)
|
||
Non-operating items (after-tax):
|
||||||||
Restructuring and related charges
|
57.9
|
24.0
|
||||||
Acquisition, integration and divestiture costs
|
5.0
|
3.0
|
||||||
Gain on divested assets
|
(0.5
|
)
|
(20.0
|
)
|
||||
Financial control remediation and sustainability actions and related charges
|
9.6
|
10.3
|
||||||
Impairment charges
|
127.1
|
—
|
||||||
Excessive coupon redemption
|
4.2
|
10.1
|
||||||
COVID-19 charges
|
45.1
|
—
|
||||||
Capital structure and related charges
|
35.3
|
—
|
||||||
Valuation allowance on net federal deferred tax assets
|
189.5
|
—
|
||||||
Adjusted net loss
|
$
|
(145.8
|
)
|
$
|
(130.3
|
)
|
||
Net loss:
|
||||||||
Diluted loss per common share
|
(11.59
|
)
|
(2.97
|
)
|
||||
Adjustment to diluted loss per common share
|
8.86
|
0.52
|
||||||
Adjusted diluted loss per common share
|
$
|
(2.73
|
)
|
$
|
(2.45
|
)
|
||
U.S. GAAP weighted average number of common shares outstanding:
|
||||||||
Diluted
|
53,401,324
|
53,081,321
|
Year Ended
December 31,
|
||||||||
2020
|
2019
|
|||||||
(Unaudited)
|
||||||||
Reconciliation to net cash used in operating activities:
|
||||||||
Net cash used in operating activities
|
$
|
(97.3
|
)
|
$
|
(68.3
|
)
|
||
Less capital expenditures
|
(10.3
|
)
|
(29.0
|
)
|
||||
Free cash flow
|
$
|
(107.6
|
)
|
$
|
(97.3
|
)
|