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| REVLON REPORTS RECORD FIRST QUARTER RESULTS AND CAPTURES THE LEAD IN U.S. MASS MARKET COSMETICS |
NEW YORK, April 29 /PRNewswire/ -- Revlon, Inc. (NYSE: REV) today announced record performance for the first quarter of 1998 and marked the eighteenth consecutive quarter of growth in net sales, operating income and EBITDA compared with the corresponding quarter of the prior year. Net sales were $534.3 million, an increase of 8.4% over the first quarter of 1997 on a reported basis or 11.3% on a constant dollar basis. Operating income was $24.5 million, an increase of 42.4% over the 1997 first quarter after a non-recurring charge of $5.4 million in the 1997 period. EBITDA grew to $51.2 million, up 28.6% compared to last year's first quarter (after the non-recurring charge). Net loss for the first quarter of 1998 was $19.9 million, or $.39 per share, before an extraordinary charge compared to a net loss of $25.4 million, or $.50 per share in the first quarter of 1997. The extraordinary charge in the 1998 period was $38.2 million, or $.75 per share, related to the early extinquishment of debt in connection with the previously announced refinancing of indebtedness at lower interest rates. "This quarter Revlon became the #1 manufacturer in the United States mass market color cosmetics category. This achievement reflects the continued success of both the Revlon and Almay franchises and demonstrates the effectiveness of our long-term business strategies," said George Fellows, President and Chief Executive Officer. "We are especially proud of the contribution of the Almay brand to our overall business," Fellows continued. Almay continued to be the fastest growing major cosmetics brand at retail in dollar market share while the Revlon brand widened its lead as the # 1 brand, according to AC Nielsen. There was major news in color cosmetics for the quarter with the launch, in March, of Revlon's MoistureStay Lipcolor. The innovative and proprietary formula provides moisture that lasts even after the color is taken off. In February, Revlon introduced three new products in its ColorStay franchise: ColorStay Liptint, ColorStay Lite Make-up and ColorStay Powder Shadow, each utilizing proprietary long wearing, transfer-resistant formulas. Almay's major news this quarter was the launch of Stay Smooth Anti-Chap Lipcolor and the One Coat Collection, pairing advanced technology with identified consumer needs. Almay Stay Smooth Lipcolor is the first anti-chap lip color with SPF 25 protection. The new One Coat Collection capitalizes on the successful One Coat mascara and features a wide range of lip, eye and nail products. U.S. Operation In the U.S., including the favorable impact of The Cosmetic Center, Inc. merger, net sales grew by 12.8% to $319.2 million for the first quarter compared with $282.9 million in the same period last year. For the Revlon brand, the continuing success of color cosmetics, including the ColorStay and New Complexion franchises, Top Speed nail enamel, the spring LavenDare shade promotion and the launch of MoistureStay Lipcolor, contributed to growth. The Almay brand contributed to net sales with new products and the continued success of the Almay Amazing and Clear Complexion franchises. As previously reported, while consumer sell-through for the Revlon and Almay brands was strong in the first quarter of 1998, the Company's sales to its retail March 31, 1998 1997 Net sales $534.3 $492.9 Cost of sales 185.6 166.3 Gross profit 348.7 326.6 Selling, general and administrative expenses 324.2 304.0 Business consolidation costs and other, net -- 5.4 Operating income 24.5 17.2 Other expenses (income): Interest expense 37.7 33.3 Interest and net investment income (1.0) (0.7) Amortization of debt issuance costs 1.6 2.0 Foreign currency losses, net 1.5 1.8 Miscellaneous, net 0.9 0.7 Other expenses, net 40.7 37.1 Loss before income taxes (16.2) (19.9) Provision for income taxes 3.7 5.5 Loss before extraordinary item (19.9) (25.4) Extraordinary item - early extinguishment of debt (38.2) -- Net loss $(58.1) $(25.4) Basic loss per common share: Loss before extraordinary item $(0.39) $(0.50) Extraordinary item (0.75) -- Net loss per common share $(1.14) $(0.50) Diluted loss per common share: Loss before extraordinary item $(0.39) $(0.50) Extraordinary item (0.75) -- Net loss per common share $(1.14) $(0.50) Weighted average common shares outstanding: Basic 51,179,923 51,125,673 Dilutive 51,179,923 51,125,673 * The results of The Cosmetic Center, Inc., after giving effect to certain intercompany adjustments for the three months ended March 31, 1998 and 1997 are as follows: Net sales of $36.5 and $12.9, cost of sales of $22.3 and $5.9, S,G&A of $18.4 and $9.5 and operating losses of $4.2 and $2.5. REVLON, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (dollars in millions) March 31, December 31, ASSETS 1998 1997 (Unaudited) Current assets: Cash and cash equivalents $37.0 $42.8 Trade receivables, net 420.8 493.9 Inventories 372.9 349.3 Prepaid expenses and other 139.9 97.5 Total current assets 970.6 983.5 Property, plant and equipment, net 371.1 378.2 Intangible and other assets, net 483.2 472.9 Total assets $1,824.9 $1,834.6 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Short-term borrowings - third parties $39.0 $42.7 Current portion of long-term debt - third parties 5.3 5.5 Accounts payable, accrued expenses and other 502.0 561.6 Total current liabilities 546.3 609.8 Long-term debt 1,583.0 1,458.7 Other long-term liabilities 218.5 224.6 Total stockholders' deficiency (522.9) (458.5) Total liabilities and stockholders' deficiency $1,824.9 $1,834.6SOURCE Revlon, Inc.
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