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| Revlon Announces Decision To Dispose of its Interest in Cosmetic Center |
Revlon Acquires A.P. Products, A Leader In Ethnic Hair Care And The Cutex
Trademark In Certain International Markets
NEW YORK, June 8 /PRNewswire/ -- Revlon, Inc. (NYSE: REV) announced today
that it intends to dispose of its 85% interest in The Cosmetic Center, Inc.
(Nasdaq: COSC). The Company also announced that a subsidiary had acquired
A.P. Products, Ltd., a privately held New York based marketer of hair care and
related products under the brands African Pride, All-Ways Natural, Ginseng
Miracle and 911, and had acquired from Unilever NV the Cutex trademarks for
nail products in a number of international markets, principally in South
America, Spain and Africa. Terms of the transactions were not disclosed.
Exit From Retail Operations
"We are implementing our previously announced strategy of withdrawing from
operating retail stores," said George Fellows, President and Chief Executive
Officer, Revlon, Inc. "The continued success of our core businesses proves
the effectiveness of our long-term business strategies. The transactions
announced today demonstrate our continued commitment to strengthen and expand
our core businesses and brands." In connection with its exit from retail
operations, Revlon expects to record a charge of up to approximately
$15 million in the second quarter. Reported financial results for Revlon will
reflect the retail stores as discontinued operations. Unaudited selected
financial data are attached.
Acquisitions
Revlon has been a leader in developing retail and professional salon
products for ethnic consumers since the 1960's including such brand names as
Creme of Nature, Creme of Nature Herba-Rich, Realistic, Fabulaxer and
Lottabody. "The A.P. acquisition strengthens Revlon's ability to provide
beauty products that meet the needs of all women," said Mr. Fellows. "The
transaction expands our portfolio of brands, increases our retail distribution
and adds A.P. Products' solid management to the Revlon team." A.P. Products
has successfully marketed its brands for over 16 years. The acquisition
results in a combined dollar market share of approximately 10% of the U.S.
mass market retail ethnic hair care segment.
Brian K. Marks, Chief Executive Officer of A.P. Products, said, "We are
delighted to join the Revlon family with its world class sales and marketing,
R&D and operations and its extensive international distribution."
Regarding the Cutex acquisition, Mr. Fellows stated, "The acquisition adds
the well known Cutex brand to our nail care products lines in a number of
countries outside the U.S. and enables us to take advantage of our extensive
international distribution network."
Revlon is a worldwide leader in cosmetics, skin care, fragrance, personal
care and professional products. The Company's vision is to provide glamour,
excitement and innovation through quality products at affordable prices.
A web site featuring current product and promotional information can be
reached at http://www.revlon.com. Revlon's brands include Revlon, ColorStay,
Age Defying, Almay, Ultima II, Charlie, Flex, Creme of Nature and Creme of
Nature Herba-Rich and are sold in approximately 175 countries and territories.
Forward-Looking Statements
Information in this press release, which is not historical, includes
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements include,
without limitation, the Company's plan to dispose of its retail operations and
the appropriate charge resulting therefrom: the Company's commitment to
strengthen and expand core business and brands; plans to strengthen the
Company's ability to provide beauty products that meet the needs of all women
and to increase retail distribution and the ability of the Company to take
advantage of its international distribution network. In addition to factors
that may be described in the Company's filings with the Securities and
Exchange Commission, the following factors among others could cause the
Company's actual results to differ materially from those included in any
forward-looking statements: (i) difficulties or delays in, or unexpected
charges from the disposition of the Company's interest in Cosmetic Center;
(ii) difficulties or delays in strengthening and expanding the Company's core
business and brands; (iii) difficulties or delays in strengthening the
Company's ability to provide beauty products that meet the needs of all women;
and (iv) difficulties or delays in increasing retail distribution and in
taking advantage of the Company's international distribution network. The
Company assumes no responsibility to update forward-looking information
contained herein.
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA
(dollars in millions, except per share data)
Full Year
December 3l, December 3l,
1997 1996
Net sales $2,238.6 $2,092.1
Gross profit 1,495.5 1,403.2
Operating income 214.9 199.2
Income from continuing operations $57.8 $24.4
Income from discontinued operation 0.7 0.4
Income before extraordinary items 58.5 24.8
Extraordinary items (14.9) (6.6)
Net income $43.6 $18.2
Basic income per common share:
Income from continuing operations $1.13 $0.49
Income from discontinued operation 0.01 0.01
Income before extraordinary items 1.14 0.50
Extraordinary items (0.29) (0.13)
Net income per common share $0.85 $0.37
Diluted income per common share:
Income from continuing operations $1.13 $0.49
Income from discontinued operation 0.01 0.01
Income before extraordinary items 1.14 0.50
Extraordinary items (0.29) (0.13)
Net income per common share $0.85 $0.37
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA
(dollars in millions, except per share data)
Three Months Ended
March 31, March 31, June 30, Sept. 30, Dec. 3l,
1998 1997 1997 1997 1997
Net sales $497.8 $480.0 $537.7 $581.0 $639.9
Gross profit 334.5 319.6 356.5 389.3 430.1
Operating income 28.7 19.7 48.5 71.8 74.9
(Loss) income from
continuing operations $(15.3) $(22.6) $8.4 $34.6 $37.4
(Loss) income from
discontinued operation (4.6) (2.8) 1.0 (1.5) 4.0
(Loss) income before
extraordinary items (19.9) (25.4) 9.4 33.1 41.4
Extraordinary items (38.2) -- (14.9) -- --
Net (loss) income $(58.1) $(25.4) $(5.5) $33.1 $41.4
Basic (loss) income per common share:
(Loss) income from
continuing operations $(0.30) $(0.44) $0.16 $0.68 $0.73
(Loss) income from
discontinued operation (0.09) (0.06) 0.02 (0.03) 0.08
(Loss) income before
extraordinary items (0.39) (0.50) 0.18 0.65 0.81
Extraordinary items (0.75) -- (0.29) -- --
Net (loss) income per
common share $(1.14) $(0.50) $(0.11) $0.65 $0.81
Diluted (loss) income per common share:
(Loss) income from
continuing
operations $(0.30) $(0.44) $0.16 $0.67 $0.72
(Loss) income from
discontinued
operation (0.09) (0.06) 0.02 (0.03) 0.08
(Loss) income before
extraordinary items (0.39) (0.50) 0.18 0.64 0.80
Extraordinary items (0.75) -- (0.29) -- --
Net (loss) income
per common share $(1.14) $(0.50) $(0.11) $0.64 $0.80
SOURCE Revlon, Inc.
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CONTACT:
Retail Operations: Nancy Risdon,
212-527-5791, or Investor Relations: Deena S. Fishman,
212-527-5230, both of Revlon; or Acquisitions: Terrie Williams of
Terrie Williams Agency, 212-220-4333, ext. 222
