Net cash provided by operating activities in 2011 was $88.0 million compared to $97.2 million in 2010 and free cash flow in 2011 was $74.4 million compared to $82.3 million in 2010. Cash flow in 2011 included higher cash paid for permanent cabinetry, interest and pension contributions as compared to the same period in 2010. Favorable changes in other working capital partially offset these higher payments.

The following are non-GAAP measures – (i) Adjusted EBITDA, (ii) free cash flow, and (iii) the provision for income taxes excluding the non-cash tax benefits associated with the reductions in the Company’s deferred tax valuation allowances. These non-GAAP measures are defined in the footnotes to this release and are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

Venezuela – Business Update

As previously announced, in June 2011, the Company’s facility in Venezuela was destroyed by fire. The Company’s subsidiary in Venezuela represented approximately 2% and 3%, respectively, of the Company’s consolidated net sales for the years ended December 31, 2011 and 2010. As of December 31, 2011, Revlon Venezuela had not fully resumed business following the June 2011 fire.

For the June 2011 through December 2011 period, the Company incurred losses of $14.6 million related to the fire, which includes an impairment loss of $4.9 million recorded in the second quarter of 2011 and business interruption losses, covering costs incurred and lost profits as a result of the fire. The Company maintains comprehensive property and business interruption insurance. In 2011, the Company received interim advance payments totaling $19.7 million with respect to the fire in Venezuela. In the fourth quarter of 2011 and for the full year 2011, the Company recognized $3.6 million and $14.6 million, respectively, of benefit from insurance recoveries, essentially making the Company financially whole for both costs incurred and the estimated lost profits noted above. The benefit from insurance recoveries was recorded in SG&A. The remaining balance of the insurance proceeds received through December 31, 2011 was recorded as deferred income, which is included in accrued expenses and other, on the balance sheet. The business interruption losses incurred in 2011 are not indicative of future business interruption losses for insurance purposes, nor future expected profits for Revlon Venezuela. The final amount and timing of the ultimate insurance recovery is currently unknown.

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