In Latin America, net sales in the third quarter of 2012 were $30.6 million, an increase of $5.0 million, or 19.5%, compared to $25.6 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales in Latin America increased $6.3 million, or 24.6%, primarily due to higher net sales in Venezuela. Venezuela’s increase in net sales was primarily due to the absence of sales for a portion of the third quarter of 2011 as a result of the June 5, 2011 fire that destroyed the Company’s facility there. Net sales in Venezuela and Argentina also benefited from higher selling prices reflecting market conditions and inflation, which accounted for approximately one-quarter of the $6.3 million net sales increase in the region.
In Canada, net sales in the third quarter of 2012 were $19.7 million, an increase of $1.9 million, or 10.7%, compared to $17.8 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales increased $2.2 million, or 12.4%, primarily due to higher net sales of Revlon color cosmetics.
Operating income in the third quarter of 2012 was $19.1 million, compared to $44.8 million in the same period last year, and Adjusted EBITDA in the third quarter of 2012 was $36.2 million, compared to $60.3 million in the same period last year. Operating income and Adjusted EBITDA in the third quarter of 2012 were negatively impacted by $24.1 million of restructuring and related charges associated with restructuring actions announced on September 5, 2012 and a charge of $2.2 million related to estimated costs of settling previously disclosed litigation related to the Company’s 2009 exchange offer.
Interest expense, including preferred stock dividends, decreased $0.5 million to $21.5 million in the third quarter of 2012 compared to the same period last year.
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