This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Revlon Reports 2012 Results

b Free cash flow is a non-GAAP measure that is reconciled to net cash provided by operating activities, its most directly comparable GAAP measure, in the accompanying financial tables. Free cash flow is defined as net cash provided by operating activities, less capital expenditures for property, plant and equipment, plus proceeds from the sale of certain assets. Free cash flow excludes proceeds on sale of discontinued operations. Management uses free cash flow (i) to evaluate its business and financial performance and overall liquidity; (ii) in strategic planning; and (iii) to review and assess the operating performance of the Company's management team and, together with Adjusted EBITDA and other operational objectives, as a measure in evaluating employee compensation and bonuses. Management believes that free cash flow is useful for investors because it provides them with an important perspective on the cash available for debt repayment 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. 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 does not intend for free cash flow to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define free cash flow or similarly titled measures differently.

Forward-Looking Statements

Statements made in this press release, which are not historical facts, including statements about the Company's plans, strategies, focus, 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 to reflect actual results of operations; changes in financial condition; changes in general U.S. or international economic, industry or cosmetics category conditions; changes in estimates, expectations or assumptions; or other circumstances, conditions, developments or events arising after the issuance of this press release. Such forward-looking statements include, without limitation, the Company's following beliefs, expectations, focus and/or plans: (i) the Company’s plans to continue to focus on driving profitable growth; and (ii) the Company’s business strategy which is to: (a) build our strong brands, (b) develop our organizational capability, (c) drive our company to act globally, (d) pursue growth opportunities and (e) improve our financial performance. Actual results may differ materially from such forward-looking statements for a number of reasons, including those set forth in our filings with the SEC, including, without limitation, our 2012 Annual Report on Form 10-K that we will file with the SEC in February 2013 and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we have filed or will file with the SEC during 2013 (which may be viewed on the SEC's website at http://www.sec.gov or on our website at http://www.revloninc.com), as well as reasons including: (i) difficulties, delays, unanticipated costs or our inability to drive profitable growth, including, without limitation, less than expected profitable net sales growth, such as due to the reasons set forth in clause (ii)(a) below; and (ii) difficulties, delays, unanticipated costs or our inability to execute our business strategy, such as (a) less than expected growth of our strong brands, such as due to difficulties, delays, unanticipated costs or our inability to launch innovative products, such as due to less than effective new product development; less than expected acceptance of our new products by consumers and/or retail customers; less than expected acceptance of our brand communication for such products by consumers and/or retail partners; less than expected levels of advertising and/or promotional activities for our new product launches; less than expected levels of execution with our retail partners; less than anticipated sales of our new products as a result of consumer response to worldwide economic or other conditions; greater than expected volatility in the retail sales environment; more than anticipated returns for such products; actions by our retail customers impacting our sales, including in response to any decreased consumer spending in response to weak economic conditions or weakness in the cosmetics category in the mass retail channel; adverse changes in currency exchange rates and / or currency controls; decreased sales of the Company's products as a result of increased competitive activities by the Company’s competitors; changes in consumer purchasing habits, including with respect to shopping channels; retailer inventory management; greater than expected impact from changes in retailer pricing or promotional strategies; greater than anticipated retailer space reconfigurations or reductions in retailer display space; less than anticipated results from the Company's existing or new products or from its advertising, promotional and/or marketing plans; or if the Company’s expenses, including, without limitation, for advertising, promotions and/or marketing activities or for sales returns related to any reduction of retail space, product discontinuances or otherwise, exceed the anticipated level of expenses, (b) difficulties, delays or the inability to develop our organizational capability, (c) our inability to drive our company to act globally, such as due to higher than anticipated levels of investment required to support and build our brands globally and/or less than anticipated results from our regional and/or multi-national brands, (d) difficulties, delays or unanticipated costs in connection with plans to pursue growth opportunities, such as due to those reasons set forth in clause (ii)(a) above and/or difficulties, delays or unanticipated costs in consummating, or the Company’s inability to consummate, transactions to acquire new brands and/or (e) difficulties, delays, unanticipated costs or our inability to improve our financial performance. Factors other than those listed above could also cause the Company’s results to differ materially from expected results. Additionally, the business and financial materials and any other statement or disclosure on or made available through the Company’s websites or other websites referenced herein shall not be incorporated by reference into this release.

             
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(dollars in millions, except share and per share amounts)
 
 
 
Three Months Ended Year Ended
December 31, December 31,
2012 2011 2012 2011
(Unaudited)
 
Net sales $ 391.3 $ 359.8 $ 1,426.1 $ 1,381.4
Cost of sales 139.4 134.3 506.5 492.6
Gross profit 251.9 225.5 919.6 888.8
Selling, general and administrative expenses 169.7 159.5 710.2 685.5
Restructuring charges (0.3) - 20.7 -
 
Operating income 82.5 66.0 188.7 203.3
 
Other expenses, net:
Interest expense 19.6 20.2 79.1 84.9
Interest expense - preferred stock dividends 1.7 1.6 6.5 6.4
Amortization of debt issuance costs 1.4 1.2 5.3 5.3
Loss on early extinguishment of debt, net - (0.1) - 11.2
Foreign currency losses, net 0.7 2.0 2.7 4.4
Miscellaneous, net 0.5 0.3 0.7 1.5
Other expenses, net 23.9 25.2 94.3 113.7
 
Income from continuing operations before income taxes 58.6 40.8 94.4 89.6
Provision for income taxes 12.1 4.4 43.7 36.8
Income from continuing operations, net of taxes 46.5 36.4 50.7 52.8
Income from discontinued operations, net of taxes - - 0.4 0.6
 
Net income $ 46.5 $ 36.4 $ 51.1 $ 53.4
 
Other comprehensive loss:
Currency translation adjustment, net of tax (1.8) 0.4 (1.5) (8.3)
Amortization of pension related costs, net of tax 1.9 0.9 9.4 3.6
Pension re-measurement, net of tax (15.4) (45.9) (15.4) (45.9)
Pension curtailment gain 0.2 - 0.2 -
Other comprehensive loss (15.1) (44.6) (7.3) (50.6)
 
Total comprehensive income (loss) $ 31.4 $ (8.2) $ 43.8 $ 2.8
 
Basic income per common share:
Continuing operations 0.89 0.70 0.97 1.01
Discontinued operations - - 0.01 0.01
Net income $ 0.89 $ 0.70 $ 0.98 $ 1.02
 
Diluted income per common share:
Continuing operations 0.89 0.70 0.97 1.01
Discontinued operations - - 0.01 0.01
Net income $ 0.89 $ 0.70 $ 0.98 $ 1.02
 
Weighted average number of common shares outstanding:
Basic 52,356,798 52,183,008 52,348,636 52,173,906
Diluted 52,356,798 52,367,871 52,356,882 52,331,807
 

         
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in millions)
 
December 31, December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 116.3 $ 101.7
Trade receivables, net 216.0 212.0
Inventories 114.7 111.0
Deferred income taxes - current 48.5 49.8
Prepaid expenses and other 45.7 44.2
Total current assets 541.2 518.7
Property, plant and equipment, net 99.5 98.9
Deferred income taxes - noncurrent 215.2 232.1
Goodwill 217.8 194.7
Intangible assets, net 68.8 29.2
Other assets 94.1 83.5
Total assets $ 1,236.6 $ 1,157.1
 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Short-term borrowings $ 5.0 $ 5.9
Current portion of long-term debt 21.5 8.0
Accounts payable 101.9 89.8
Accrued expenses and other 276.3 231.7
Redeemable preferred stock 48.4 -
Total current liabilities 453.1 335.4
Long-term debt 1,145.8 1,107.0
Long-term debt - affiliates - 58.4
Redeemable preferred stock - 48.4
Long-term pension and other post-retirement plan liabilities 233.7 245.5
Other long-term liabilities 53.3 55.3
Commitments and contingencies
Total stockholders' deficiency (649.3) (692.9)
Total liabilities and stockholders' deficiency $

1,236.6

$ 1,157.1
 

       
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
Year Ended
December 31,
2012 2011
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 51.1 $ 53.4
Adjustments to reconcile net income to net cash provided by
operating activities:
Income from discontinued operations, net of taxes (0.4) (0.6)
Depreciation and amortization 65.0 60.8
Amortization of debt discount 2.1 2.5
Stock compensation amortization 0.3 1.9
Provision for deferred income taxes 28.4 13.4
Loss on early extinguishment of debt, net - 11.2
Amortization of debt issuance costs 5.3 5.3
Loss on sale of certain assets 0.4 -
Pension and other post-retirement costs 4.0 5.2
Change in assets and liabilities:
Increase in trade receivables (4.7) (18.3)
(Increase) decrease in inventories (4.4) 3.6
(Increase) decrease in prepaid expenses and other current assets (2.9) 0.2
Increase in accounts payable 4.5 5.0
Increase in accrued expenses and other current liabilities 47.3 20.1
Pension and other post-retirement plan contributions (29.8) (31.5)
Purchases of permanent displays (43.2) (41.3)
Other, net (18.9) (2.9)
Net cash provided by operating activities 104.1 88.0
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (20.9) (13.9)
Business acquisitions (66.2) (39.0)
Proceeds from the sale of certain assets 0.8 0.3
Net cash used in investing activities (86.3) (52.6)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in short-term borrowings and overdraft 6.3 0.2
Repayments under the 2010 Term Loan Facility - (794.0)
Borrowings under the 2011 Term Loan Facility - 796.0
Repayments under the 2011 Term Loan Facility (8.0) (4.0)
Payment of financing costs (0.4) (4.3)
Other financing activities (1.3) (1.4)
Net cash used in financing activities (3.4) (7.5)
Effect of exchange rate changes on cash and cash equivalents 0.2 (2.9)
Net increase in cash and cash equivalents 14.6 25.0
Cash and cash equivalents at beginning of period 101.7 76.7
Cash and cash equivalents at end of period $ 116.3 $ 101.7
 
Supplemental schedule of cash flow information:
Cash paid during the period for:
Interest $ 78.6 $ 85.0
Preferred stock dividends $ 6.2 $ 6.2
Income taxes, net of refunds $ 18.0 $ 20.5
 
Supplemental schedule of non-cash investing and financing activities:
Treasury stock received to satisfy minimum tax withholding liabilities $ 1.2 $ 1.4
 

       
REVLON, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(dollars in millions)
 
 
 
Three Months Ended
December 31,
2012 2011
(Unaudited)
Reconciliation to net income:
 
Net income $ 46.5 $ 36.4
 
Interest expense 21.3 21.8
Amortization of debt issuance costs 1.4 1.2
Loss on early extinguishment of debt, net - (0.1)
Foreign currency losses, net 0.7 2.0
Miscellaneous, net 0.5 0.3
Provision for income taxes 12.1 4.4
Depreciation and amortization 16.6 15.7
 
Adjusted EBITDA $ 99.1 $ 81.7
 
 
Year Ended
December 31,
2012 2011
(Unaudited)
Reconciliation to net income:
 
Net income $ 51.1 $ 53.4
Income from discontinued operations, net of taxes 0.4 0.6
Income from continuing operations, net of taxes 50.7 52.8
 
Interest expense 85.6 91.3
Amortization of debt issuance costs 5.3 5.3
Loss on early extinguishment of debt, net - 11.2
Foreign currency losses, net 2.7 4.4
Miscellaneous, net 0.7 1.5
Provision for income taxes 43.7 36.8
Depreciation and amortization 65.3 62.7
 
Adjusted EBITDA $ 254.0 $ 266.0
 

       
REVLON, INC. AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(dollars in millions)
 
 
 
Three Months Ended
December 31,
2012 2011
(Unaudited)
Reconciliation to net cash provided by operating activities:
 
Net cash provided by operating activities $ 86.2 $ 67.8
 
Less capital expenditures (6.1) (4.3)
Plus proceeds from the sale of certain assets 0.2 0.1
 
Free cash flow $ 80.3 $ 63.6
 
 
Year Ended
December 31,
2012 2011
(Unaudited)
Reconciliation to net cash provided by operating activities:
 
Net cash provided by operating activities $ 104.1 $ 88.0
 
Less capital expenditures (20.9) (13.9)
Plus proceeds from the sale of certain assets 0.8 0.3
 
Free cash flow $ 84.0 $ 74.4
 

             
REVLON, INC. AND SUBSIDIARIES
UNAUDITED GEOGRAPHIC NET SALES DETAIL
(dollars in millions)
 

Effective for periods beginning October 1, 2012, the Company is reporting Latin America and Canada together as one region.As a result, the following current and prior year amounts have been reclassified to conform to this presentation.

 
Three Months Ended Year Ended
Mar 31, Jun 30, Sep 30, Dec 31, Dec 31,
2011 2011 2011 2011 2011
 
United States $ 186.2 $ 194.9 $ 184.7 $ 191.6 $ 757.4
Asia Pacific 53.1 58.5 58.0 63.8 233.4
Europe, Middle East and Africa 49.7 52.0 51.1 55.9 208.7
Latin America and Canada 44.2 45.8 43.4 48.5 181.9
Total Net Sales $ 333.2 $ 351.2 $ 337.2 $ 359.8 $ 1,381.4
 
 
Three Months Ended Year Ended
Mar 31, Jun 30, Sep 30, Dec 31, Dec 31,
2012 2012 2012 2012 2012
 
United States $ 184.7 $ 203.9 $ 192.0 $ 219.2 $ 799.8
Asia Pacific 56.1 55.8 60.9 66.1 238.9
Europe, Middle East and Africa 45.8 44.4 43.8 50.4 184.4
Latin America and Canada 44.1 53.0 50.3 55.6 203.0
Total Net Sales $ 330.7 $ 357.1 $ 347.0 $ 391.3 $ 1,426.1




8 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs