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| Revlon Reports First Quarter Performance |
NEW YORK, May 3 /PRNewswire/ -- Revlon, Inc. (NYSE: REV) announced today its first quarter results for 2000. In the first quarter of 2000, net sales were $468.0 million, an increase of 6.1% compared with the first quarter of 1999 on a reported basis or an increase of 7.6% on a constant U.S. dollar basis. Operating income before business consolidation costs in each period was $20.6 million in the first quarter of 2000, compared with $12.5 million in the first quarter of 1999. EBITDA before business consolidation costs in each period was $51.2 million in the first quarter of 2000 as compared with $41.6 million in the first quarter of 1999. Net loss before business consolidation costs in each period and gain on the sale of the Company's worldwide professional products line in 2000 was $24.6 million, or $.48 per diluted share, in the first quarter of 2000 as compared with $26.0 million, or $.51 per diluted share, for the first quarter of 1999. "Although results for the first quarter show that we are off to a good start, we still have some distance to go before we are satisfied with our performance," said Jeffrey M. Nugent, President and Chief Executive Officer. To accelerate the pace of improvement, Mr. Nugent cited three priorities for Revlon starting in 2000: -- Grow our business through launches of innovative, new Revlon and Almay products, as well as new skin care and hair care products, starting in the third quarter of this year. -- Increase consumer demand by working with our major accounts to create a more exciting environment at the point of sale. -- Identify additional ways to enhance profitability and re-direct spending to fund new, more productive marketing initiatives. "Although we are encouraged that the cost reduction and restructuring efforts that were expanded in late 1999 are beginning to take hold, creating a new Revlon will also require sustained and consistent levels of growth. I am pleased to say that the pace of innovation has picked up dramatically and our new global management structure puts us in a better position to achieve the full commercial potential of these new products," he added. QUARTERLY PERFORMANCE In the U.S., net sales were $274.3 million for the first quarter of 2000, compared with $249.8 million in the first quarter of 1999, an increase of 9.8%. The increase in net sales in the U.S. was due to the introduction of new products, including Revlon ColorStay LipSHINE, Revlon ColorStay Stick makeup, Revlon Age Defying Lifting makeup, as well as Almay One Coat Lip Cream, Almay Light & Easy makeup and Almay 3-in-1 Stick makeup. International net sales were $193.7 million for the first quarter, compared with $191.3 million in the first quarter of 1999, an increase of 1.3% on a reported basis, or an increase of 4.7% on a constant U.S. dollar basis, primarily due to new product introductions that led to stronger performance in Europe and to the improvement of our businesses in Brazil and Mexico. Selling, general and administrative expenses other than advertising and consumer-directed expenses were $193.3 million in the first quarter of 2000 compared with $205.2 million in the first quarter of 1999. The decrease in the first quarter of this year reflects in large part the cost reduction efforts undertaken by the Company in 1998 and 1999. In the first quarter of 2000, the Company recorded a charge for business consolidation costs of approximately $9.5 million, or $.19 per diluted share. Business consolidation costs were $8.2 million, or $.16 per diluted share, for the comparable period last year. Net loss was $27.9 million or $.54 per diluted share in the first quarter of 2000. Net loss was $34.2 million, or $.67 per diluted share in the first quarter of 1999. The Company recognized a gain of approximately $6.2 million associated with the sale of its worldwide professional products line in the first quarter of 2000. FORWARD-LOOKING STATEMENTS Information in this press release, which is not historical, is forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include Revlon's expectations and estimates about future events, including (i) the Company's intent to grow its business through product launches and new product introductions starting in its third quarter; (ii) the Company's intent to increase consumer demand by working with major accounts to create a more exciting environment at the point of sale; and (iii) the Company's intent to identify additional ways to enhance profitability and re-direct spending to fund new, more productive marketing initiatives. Actual results may differ materially from such forward-looking statements for a number of reasons, including, (i) difficulties, delays or the inability to grow its business through product launches and new product introductions starting in the third quarter; (ii) difficulties, delays or the inability to increase consumer demand by working with major accounts to create a more exciting environment at the point of sale; and (iii) difficulties, delays or the inability to enhance profitability and re-direct spending to fund new, more productive marketing initiatives. Revlon is a worldwide cosmetics, skin care, fragrance, and personal care products company. The Company's vision is to become the world's most dynamic leader in global beauty and skin care. A web site featuring current product and promotional information can be reached at http://www.revlon.com. Revlon brands include Revlon(R), Almay(R), Ultima II(R), Charlie(R) and Flex(R) and they are sold in approximately 175 countries and territories. REVLON, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (dollars in millions, except per share data) Quarter Ended March 31, 2000 1999 Net sales $468.0 $441.1 Cost of sales 168.5 155.7 Gross profit 299.5 285.4 Selling, general and administrative expenses 278.9 272.9 Business consolidation costs, net 9.5 8.2 Operating income 11.1 4.3 Other expenses (income): Interest expense 39.4 35.9 Interest income (0.4) (1.1) Amortization of debt issuance costs 2.5 1.3 Foreign currency gains, net (0.5) -- Miscellaneous, net 0.5 0.5 Gain on sale of product line (6.2) -- Other expenses, net 35.3 36.6 Loss before income taxes (24.2) (32.3) Provision for income taxes 3.7 1.9 Net loss ($27.9) ($34.2) Basic and diluted loss per common share $(0.54) $(0.67) Weighted average number of common shares outstanding: Basic and diluted 51,242,837 51,236,771 REVLON, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (dollars in millions) March 31, December 31, 2000 1999 (unaudited) ASSETS Current assets: Cash and cash equivalents $27.8 $25.4 Trade receivables, net 238.9 332.6 Inventories 219.5 278.3 Prepaid expenses and other 46.5 51.3 Total current assets 532.7 687.6 Property, plant and equipment, net 284.4 336.4 Intangible and other assets, net 415.1 534.3 Total assets $1,232.2 $1,558.3 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Short-term borrowings - third parties $29.0 $37.6 Current portion of long-term debt - third parties -- 10.2 Accounts payable, accrued expenses and other 483.2 549.5 Total current liabilities 512.2 597.3 Long-term debt 1,504.4 1,761.9 Other long-term liabilities 213.3 214.0 Total stockholders' deficiency (997.7) (1,014.9) Total liabilities and stockholders' deficiency $1,232.2 $1,558.3SOURCE Revlon, Inc.
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CONTACT:
Press: Richard Woods, 212-527-5791, or
Investors: Larry Winoker, 212-527-5230, both of Revlon
