UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ------------ May 3, 2004 (May 3, 2004) ----------------------------------------------------------------------- Date of Report (Date of earliest event reported) Revlon, Inc. ----------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Delaware 1-11178 13-3662955 -------------------- ------------------------ ------------------------- (State or Other (Commission File No.) (I.R.S. Employer Jurisdiction of Identification Incorporation) No.) 237 Park Avenue New York, New York 10017 ----------------------------------- --------------------------------- (Address of Principal (Zip Code) Executive Offices) (212) 527-4000 ----------------------------------------------------------------------- (Registrant's telephone number, including area code) None ----------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 9. REGULATION FD DISCLOSURE. In connection with presentations being made to certain institutions by Revlon Consumer Products Corporation (the "Company"), a wholly-owned subsidiary of Revlon, Inc. ("Revlon"), the Company is disclosing certain financial and other information to such institutions (the "Presentation Information"). The Presentation Information includes management's forecasts, projections, estimates, objectives, vision, plans, strategies, beliefs, intent, destination, expectations, records and certain historical information regarding the Company and Revlon. Portions of the Presentation Information were prepared by the Company and Revlon based upon, among other things, the anticipated future results of operations of the Company and Revlon after giving affect to the implementation of various aspects of its strategic plan. The Presentation Information is divided into the following major components: (i) an overview of the current state of the Company's and Revlon's business, presented in the Presentation Information under the heading "A Different and Stronger Revlon"; (ii) recent progress and development in operations and financial results, presented in the Presentation Information under the heading "Accelerating Business Momentum"; (iii) a breakdown of steps the Company and Revlon are taking to enhance profit margins, presented in the Presentation Information under the heading "Significant Margin Upside"; and (iv) certain financial information, including Adjusted EBITDA of Revlon, under the heading "Financial Review". Revlon is a public holding company with no business operations of its own. Revlon's only material asset is the outstanding capital stock of the Company, through which it conducts its business operations. The major components are further broken down into sub-components. The component "A Different and Stronger Revlon" is divided into sub-components, including, among others: (1) an overview of sales by category and geography; (2) an overview of the growth of the United States and worldwide cosmetics mass market; (3) 2003 market share; (4) certain information as to certain of the non-cosmetics businesses; (5) an overview of international sales both by category and geography; (6) information as to the growth plan; (7) 2002 and 2003 net sales and Adjusted EBITDA data; (8) an overview of Revlon's recent debt-for-equity transactions; and (9) certain estimates under its Destination Model (i.e., the longer term target for various components of its income statement) with respect to key financial indicators such as gross sales, cost of goods, gross margin, Adjusted EBITDA and operating income. 2 The component "Accelerating Business Momentum" is divided into sub-components; including, among others: (1) an overview of steps taken to improve sales and margins; (2) a description of certain key characteristics of the Revlon brand; (3) a description of certain key characteristics of the Almay brand; (4) general information as to media spending; (5) a breakdown of the eight products launched in 2003 which placed in the ACNielsen Top 20 New Color Cosmetics Products of 2003; (6) information as to second half 2003 and first quarter 2004 dollar consumption in certain United States accounts in connection with the "Company's Carded Eye Initiative"; (7) certain information regarding improved customer relationships; and (8) a breakdown of projected sales growth drivers for 2004 projected gross sales. The component "Significant Margin Upside" is divided into sub-components, including, among others: (1) a schedule of margin improvement initiatives and the operating income margin improvements which each is expected to contribute to the "Destination Model"; and (2) details regarding three of the margin improvement initiatives: COGS reduction and sourcing, promotion redesign, and product life cycle management. Financial information presented includes, among others: (1) 2000 through 2003 selected financial data on gross sales, net sales, gross profit, selling, general and administrative expenses, and Adjusted EBITDA, and projections as to 2004 results for certain of the foregoing; and (2) a breakdown of 2002, 2003 and 2004 projected annual net sales and Adjusted EBITDA, and 2003 and first quarter 2004 quarterly net sales and Adjusted EBITDA. As certain financial information included within the Presentation Information consisted of non-GAAP amounts, such non-GAAP amounts are reconciled to the most directly comparable GAAP measures in the accompanying financial tables (the "Reconciliation Information"). Such non-GAAP measures include Adjusted EBITDA (See "Basis of Presentation") as well as ongoing operations. As stated in the "Basis of Presentation", Revlon believes that Adjusted EBITDA is useful in understanding the financial operating performance and underlying strength of Revlon's business, excluding the effects of certain factors, including gains/losses on foreign currency transactions, gains/losses on the sale of assets, gains/losses on the extinguishment of debt, miscellaneous expenses and interest, taxes, depreciation, and amortization, and thus Revlon believes that Adjusted EBITDA is a financial metric that can assist Revlon and investors in assessing financial operating performance and liquidity. Similarly, Revlon believes that information presented on an "ongoing operations" basis, which excludes the disposition of brands and 3 businesses, restructuring, additional consolidation costs (primarily associated with the closing of Revlon's Phoenix and Canada facilities), executive severance and, where specifically indicated, expenses related to the acceleration of aspects of the implementation of the stabilization and growth phase of its plan, is useful to Revlon and investors in understanding the financial operating performance and underlying strength of Revlon's business without the impact of such items. Statements made in the Presentation Information which are not historical are forward looking statements and are based on estimates, objectives, vision, projections, forecasts, plans, strategies, beliefs, intent, destinations and expectations of the Company's and Revlon's management, and thus are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's and Revlon's actual results may differ materially from such forward looking statements for a number of reasons, including, without limitation, those set forth in the Company's and Revlon's filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. A copy of the Presentation Information is furnished herewith as Exhibit 99.1. In accordance with general instruction B.2 of Form 8-K, the information in this report, including the exhibit, is furnished pursuant to Item 9 and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. 4 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. REVLON, INC. By: /s/ Robert K. Kretzman ------------------------------------- Robert K. Kretzman Executive Vice President, General Counsel and Chief Legal Officer Date: May 3, 2004 5 EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Presentation Information. 6
Property of Revlon
May 2004
Property of Revlon
Forward-Looking Statements
This presentation relates to various aspects of Revlon, Inc.’s ("Revlon“) strategic, business and financial plans. Statements made in this presentation which are not historical are forward-looking and based on management's estimates, objectives, vision, projections, forecasts, plans, strategies, beliefs, intent, destination and expectations, and thus are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The data contained herein are both audited and unaudited and have been prepared from Revlon's internal and external reporting information. "P" denotes plan or projected; "E" denotes estimated.
Accordingly, Revlon's actual results may differ materially from such forward-looking statements for a number of reasons, including, without limitation, those set forth in the Company's filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Access to these filings is available on the SEC's website at www.sec.gov.
Revlon does not generally publish or make publicly available its strategic plans or make external projections of its anticipated financial position or results of operations or the type of forward-looking information in this presentation. Accordingly, Revlon undertakes no commitment to update or otherwise revise this presentation to reflect actual results of operations, changes in financial condition, changes in estimates, changes in expectations, changes in assumptions, changes in external sources of information, or other circumstances arising and/or existing since the preparation of the information contained herein or to reflect the occurrence of any future events. Further, Revlon undertakes no commitment to update or revise any of this presentation to reflect changes in general economics or industry conditions or changes in specific industry categories in which Revlon operates.
Basis
of Presentation
Revlon, Inc. is a public holding company with no business operations of its own. Revlon, Inc.'s only material asset is all of the outstanding capital stock of Products Corporation, through which it conducts its business operations. As such, its net (loss) income has historically consisted predominantly of the net (loss) income of Products Corporation and in 2001, 2002 and 2003 included approximately $1.5 million, $4.7 million and ($0.2) million, respectively, in expenses primarily related to being a public holding company. Unless otherwise noted, all references to data presented herein relate to Revlon, Inc.
The data contained herein are both audited and unaudited and have been prepared from Revlon's internal and external reporting information. Certain of the data are presented on an "ongoing" basis, unless otherwise noted, and exclude (i) the disposition of brands or businesses, (ii) restructuring, (iii) additional consolidation costs, primarily associated with the closing of the Phoenix and Canada facilities and (iv) executive severance. In addition, certain of the data presented, where indicated, also exclude expenses related to the acceleration of aspects of the implementation of the stabilization and growth phase of Revlon's plan. Ongoing operations is unaudited and a non-GAAP measure that Revlon believes is useful for its management and the potential investors in understanding the financial operating performance and underlying strength of the business without the impact of such items. Ongoing operations does not purport to represent the results of operations or our financial position that actually would have occurred had the foregoing transactions been consummated at the beginning of the periods presented. Annexed to this presentation, and reflected in the Company’s Form 8-K filed on May 3, 2004, is a reconciliation of all non-GAAP financial measures contained in this presentation, including Adjusted EBITDA and "ongoing” operations, to their respective, most directly comparable GAAP measures.
Adjusted EBITDA is defined as net earnings before interest, taxes, depreciation, amortization, gains/losses on foreign currency transactions, gains/losses on the sale of assets, gains/losses on the extinguishment of debt, miscellaneous expenses and the items described above. Adjusted EBITDA is a non-GAAP financial measure. Revlon believes that Adjusted EBITDA is a financial metric that can assist Revlon and the potential investors in assessing its financial operating performance and liquidity. Revlon believes that Adjusted EBITDA is useful in understanding the financial operating performance and underlying strength of its business, excluding the effects of certain factors, including gains/losses on foreign currency transactions, gains/losses on the sale of assets, gains/losses on the extinguishment of debt, miscellaneous expenses and the items described above. Adjusted EBITDA should not be considered in isolation, as a substitute for net income/(loss) or cash flow from/used for operating activities prepared in accordance with GAAP. Adjusted EBITDA does not take into account our debt service requirements and other commitments and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. EBITDA is defined differently for our credit agreement currently in effect. Furthermore, other companies may define EBITDA differently and, as a result, our measure of Adjusted EBITDA may not be comparable to EBITDA of other companies.
All U.S. market share and market position data in this presentation are based upon retail dollar sales, which are derived from ACNielsen data, which is the aggregate of the drug channel, Target, Kmart, and Food and Combo stores. ACNielsen measures retail sales volume of products sold in the U.S. mass-market distribution channel. Such data represent ACNielsen's estimates based upon data gathered by ACNielsen from market samples and are therefore subject to some degree of variance. Additionally, as of August 4, 2001, ACNielsen data do not reflect sales volume from Wal-Mart Inc. In some instances, as noted, Revlon has estimated the total U.S. mass market, including Wal-Mart and regional MVRs. In general, you should read the notes presented in conjunction with the data presented herein.
Property of Revlon
The Revlon Story
♦ A Different and Stronger Revlon
• Large and attractive color cosmetics category
• Powerful brand equities
• Strong management team
• Strengthened market share position
• Improved customer relationships
• Strong sponsorship
• Dramatically improved capital structure
♦ Accelerating Business Momentum
• Translating to revenue growth
♦ Significant Margin Upside
• Improvements already achieved
• Actions to increase margins
1
A Different and Stronger Revlon
Business Overview
Property of Revlon
Powerful Brand Equities
2
®
®
Revlon’s Global Business
(1) Includes Australia and South Africa.
* See reconciliations of non-GAAP financial measures attached to this presentation.
2003 Gross Sales: $1.6bn*
Sales by Geography
Sales by Category
3
Stable and Growing Category
Highly involved, winnable consumer
Brand matters
Important category to the retail trade
Key Characteristics:
U.S. mass market growing at almost twice the rate of the global market
Source: Euromonitor
and Company estimates; includes all color cosmetics
(mass, prestige, and
direct).
Source: ACNielsen
Total U.S. All Outlets (drug channel, Kmart, Target and food
and combo
stores) plus Wal-Mart and Regional MVRs based on Company
estimates after
2001.
Worldwide Total Category
U.S. Mass Market Category
4
($bn)
Strong
Market Position in
Color Cosmetics
Revlon holds the #2 position in color cosmetics in the U.S.
Source: Full year 2003 ACNielsen Total U.S. All Outlets (excluding Wal-Mart and Regional MVRs).
2003 U.S. Mass Market $ Share
5
$471mm
category in mass; total category
$3.0bn including Prestige1
Key Brands: Charlie, Ciara, Jean Naté
Jean
Naté and Charlie consistently rank in
Top 10 mass brands and
outperformed
category
$1.1bn
category with Gels showing strong
growth (+14%)
Key
Brands: Mitchum, Mitchum for Women,
Almay
Majority of Mitchum business is in gels
$240mm
category with few competitors
(4 brands = 70% of category)
#1 Brand with 25% $ share
Highest brand awareness among consumers
#1
SKU across all major categories (e.g., #1
lash curler)
$1.0bn
category with largest segment
(permanents) growing as a portion
of total
(77%)
Key
Brands: Revlon ColorSilk, High
Dimension, Frost & Glow
Revlon leads $ category growth (+4%)
ColorSilk #1 unit share brand at Wal-Mart
Other North American Businesses
Highly profitable businesses in key related categories
Source: Full Year 2003 ACNielsen Total U.S. All Outlets (excluding Wal-Mart and Regional MVRs).
(1) Mass includes ACNielsen Perfumes, Colognes, EDT 52 weeks ending 9/03; Total category includes ACNielsen plus NPD Prestige estimate of $2.7bn.
Hair Color
Beauty Tools
Women’s Fragrances
Anti-Perspirants & Deodorants
6
International Overview
(1) Includes Australia and South Africa.
* See reconciliations of non-GAAP financial measures attached to this presentation.
2003 Gross Sales: $462mm*
Sales by Geography
Sales by Category
7
A Different and Stronger Revlon
Significant
Growth and
Profitability Improvements
Improved Customer Relationships
Strengthened Market Share Position
Strong Management Team
Powerful Brand Equities
Large and Attractive Category
Future
Growth and
Margin Opportunity
8
What Held Revlon Back?
Inconsistent Execution
Lack of
effective communication/execution
inside and outside of Revlon
Missed key dates with customers
Lost Share & Shelf Space
Lost 7.5 share points from 1998 to 2002
New product performance trailed competitors
Little New Product Success
Inconsistent Brand Position
5 tag lines in 6 years for Revlon brand
Inconsistent imagery
Over-Leveraged
Limited operating flexibility
9
Value Creation Continuum
S
u
s
t
a
i
n
a
b
l
e
B
u
s
i
n
e
s
s
M
o
d
e
l
Cost
Rationalization
Consolidated
Manufacturing/
Distribution
Reduced Overhead
2000-2001
Stabilize
&
Begin To Grow
Restored
Consumer/Customer
Confidence
Reversed Market
Share
Declines
Generated
Top-Line
Growth
2002-2003
Continue
Growth
Momentum
Balance
Top-Line Growth
with Margin Improvement
Develop and
Implement
Transformation Initiatives
Significantly
Strengthen
Balance Sheet
2004
Accelerated
Growth
2005-2006E
Accelerate Growth:
Accelerate
Top-Line
Momentum
Significantly
Improve
Margins
A
Different and Stronger Revlon:
The Success Journey
10
A
Different and Stronger Revlon:
Increased
Market Share
Reversed
declining trend, with Revlon and Almay growth outpacing
category growth
since 2H 2002
Source: ACNielsen Total U.S. All Outlets (excluding Wal-Mart and Regional MVRs).
-10.7%
-7.7%
-10.5%
0.1%
1.1%
4.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
1998
1999
2000
2001
2002
2003
Improved customer relationships
Increased and enhanced marketing
Leading new product innovation
Enhanced in-store execution
Revlon + Almay $ Consumption Growth vs. Category Growth
11
A
Different and Stronger Revlon:
Improved Financial Performance*
(1) Presented
on an ongoing basis and adjusted for Growth Plan charges.
* See
reconciliations of non-GAAP financial measures attached to this
presentation.
12
2002
(1)
2003
(1)
Change
($ mm)
($ mm)
Net Sales
$1,195
$1,304
+9%
Adjusted EBITDA
$121
$157
+30%
% of Net Sales
10.1%
12.0%
+1.9pts
A
Different and Stronger Revlon:
Strong Sponsorship
$155 million
tendered in the
debt to equity exchange as
part of support agreements
Two
independent directors
appointed to the Board
$188 million
tendered in the
debt to equity exchange
Voluntary exchange
Over $1 Billion of Equity Invested and Committed
Through
the balance sheet restructuring, the Company has created
significant
operating flexibility
(1)
Includes $41 million of notes exchanged by Fidelity funds not part of the support agreements.
3rd Party Bondholders (1)
Fidelity
MacAndrews & Forbes
13
$41 million
purchase of Revlon
shares in rights offering (6/03)
$461 million
tendered in the
debt to equity exchange
$55 million
preferred shares
tendered in the debt to equity
exchange
$110 million
additional equity
offering backstopped
$151 of
additional unsecured
committed lines of credit
A
Different and Stronger Revlon:
Dramatically Improved Capital Structure
14
(1) Assumes
69.5 million fully diluted shares as of December 31, 2003 and a stock price of
$2.24 (closing price on December 31, 2003).
(2) Assumes 369.4
million fully diluted shares pro forma for debt for equity tender exchange
offer, and a stock price of $3.08 (closing price on April 27, 2004).
* See reconciliations of non-GAAP financial measures attached to this presentation.
Total Debt*
Equity Value
(1)
(2)
($mm)
A
Different and Stronger Revlon:
The Margin Destination*
Significant Revenue
Growth Opportunity
(1) Presented on an ongoing basis and adjusted for Growth Plan charges.
(2) Includes Other Revenues.
* See reconciliations of non-GAAP financial measures attached to this presentation.
Significant Margin Expansion Opportunity
15
Gross Sales
100%
100%
Destination
20031
Model (Est.)
Returns/Allowances/Discounts2
18%
17%
Cost of Goods
32%
29%
Gross Margin
50%
54%
SG&A
47%
40%
Adjusted EBITDA
10%
20%
Operating Income
4%
14%
Accelerating Business Momentum
Property of Revlon
Accelerating Business Momentum
Top-Line Growth
Margin Improvement
6% 2002-2004P Gross Sales CAGR*
10
pts. Margin Improvement
Over 3 – 5 Years
16
* See reconciliations of non-GAAP financial measures attached to this presentation.
Accelerating
Business Momentum: Enhanced
and Increased Advertising and Marketing
Extremely
strong, powerful and
distinctive brand image
Resilient
brand with very high brand
awareness (91%)
Confident and
sexy positioning, with
superior color range/color authority
at mass
Viewed as
industry innovator by both
retailers and consumers
Premium quality
Celebrities and glamour
Smart, intelligent and sophisticated
Reliable and trustworthy
Leverageable beyond color cosmetics
The Revlon Brand: Unique and valuable position with consumers
Key Characteristics
17
Accelerating
Business Momentum: Enhanced
and Increased Advertising and Marketing
Lets you shine through
Enhances, not hides your beauty
Fresh, natural, vital look
High-quality,
hypo-allergenic, skin-loving
ingredients
Optimistic, engaging, stylish
Trusted brand
The Almay Brand: Leader in the healthy beauty market segment
18
For Women Who Love Life and Are
Proud of Who They’ve Become
Almay:
Accelerating Business
Momentum: Enhanced
and Increased Advertising and Marketing
Media Spending Now in Line with Competition
19
The Revlon “Belissimo” Campaign
U.S. Working Media Spend
Source: CMR and
ACNielsen.
(1) Company estimate.
($mm)
SOV
SOM
0.7
0.7
0.9
0.9(1)
Source: CMR.
:
8 of the Top 20 New Color Cosmetics Products of 2003
Accelerating
Business Momentum:
Leading
New Product Innovation
Source: ACNielsen U.S. All Outlets (excluding Wal-Mart and Regional MVRs).
#1 Revlon ColorStay Overtime Lipstick
#6 Revlon Moisturous Lipstick
#11 Revlon ColorStay Stay Natural Foundation
#12 Almay Nearly Naked Foundation
#13 Revlon ColorStay Always On Nail Enamel
#14 Almay Bright Eyes Mascara
#16 Revlon LipGlide Sheer Lipcolor
#20 Revlon Lash Fantasy Mascara
Strong 2004-2005 Pipeline
20
# of Products in Top 20
Ranking of Revlon Products
Accelerating
Business Momentum:
Improved In-Store Execution
Enhanced
in-store Wall presence
and effectiveness
Improved consumer experience
Reduced overall Wall costs
Maximized SKU
productivity and
minimize damages / return
21
Strategy
Source: ACNielsen U.S. and Wal-Mart POS.
Notes: Excludes Lash Tint and New Products (Lash Fantasy & Eye Glide);
2H 2003 results based on performance since reset.
Carded Eye Initiative
$
Consumption % vs. Prior Year
(Top 5 Accounts)
+
+
Accelerating
Business Momentum:
Improved Customer Relationships
+$28 million in Gross Sales in 2004P
22
Accelerating
Business Momentum:
Sales
Growth Drivers
2004P Gross Sales*
23
North America
$1,719
$1,580
$44
$36
$23
$8
$28
2003
Space Gains
(All Businesses)
Pricing
(Color Cosmetics)
Marketing, Advertising,
Promotion
Effectiveness, i.e.,
increased market
share (All
Businesses)
Category Growth
(All Businesses)
International
2004P
($mm)
* See reconciliations of non-GAAP financial measures attached to this presentation.
Significant Margin Upside
Property of Revlon
Significant
Margin Upside:
Margin Transformation Initiatives*
* See reconciliations of non-GAAP financial measures attached to this presentation.
24
$17mm Savings Planned in 2004
Operating Income Margin (% of Gross Sales)
Margin
Transformation Initiatives:
COGS Reduction and Indirect Sourcing
Financial Impact:
Annualized
Savings: 100 – 200 bps of Gross Sales
Achieved Over 3-5 Years
2004P Savings: $10mm
25
Focus on
Reducing Cost of
Existing Products
Value Analysis
Objective:
Reduce
Both Direct
and Indirect Costs
Streamline Componentry
Enhance Branding
Package Rationalization
Establish
Expertise and Process
to Minimize Cost of Direct and
Indirect
Purchasing
Strategic Sourcing
Margin
Transformation Initiatives:
Promotion Redesign
Financial Impact:
Annualized
Savings: 100 – 150 bps of Gross Sales
Achieved Over 3-5 Years
2004P Savings: $5mm
26
Displays
Assortments
Optimize Costs
Objective:
Deliver Promotions on
Strategy, on Time
and on Budget
Identify Next
Generation
Promotional Strategy
Define and
Implement
Efficient Promotional
Development Process
Margin
Transformation Initiatives:
Product Life Cycle Management
Financial Impact:
Annualized
Savings: 200 bps of Gross Sales
Achieved Over 3-5 Years
2004P Savings: $--
27
Birth
– Smarter Sell-In of New
Products
Life
– Active Retailer Inventory
Monitoring and Management
Retirement
– Reduce Discontinuance
Cost
Reduce Returns
Optimize Wall Productivity
Maximize Effectiveness of Spend
Create New Business Model
Objective:
Extend
Productive Life
of Products to:
Devise By
Segment (Lip, Nail, Face,
Eye)
Determine
Optimal Timing and
Sequence of New Products
Create Principles
Accelerating Business Momentum
Enhanced and
increased
advertising and marketing
Leading new product innovation
Enhanced in-store execution
Improved customer relationships
Expanded retail footprint
Effected retail price increases
Promotion redesign
Product life cycle management
In-store merchandising
International supply chain
COGS reduction
Indirect sourcing
Top-Line Growth
Margin Improvement
6% 2002-2004P Gross Sales CAGR*
10
pts. Margin Improvement
Over 3 – 5 Years
* See reconciliations of non-GAAP financial measures attached to this presentation.
28
Financial Review
Property of Revlon
Financial Performance
Note: All financial data presented on an ongoing basis and adjusted for Growth Plan charges.
(1) Source:
Company press release. Subject to minor rounding differences.
* See
reconciliations of non-GAAP financial measures attached to this
presentation.
29
($ mm)
2000
2001
2002
2003
2004P
(1)
Gross Sales
$1,597
$1,537
$1,536
$1,583
$1,719
% vs. Prior Year
(4%)
--
3%
9%
Net Sales
1,265
1,261
1,195
1,304
1,407
% vs. Prior Year
--
(5%)
9%
8%
% Gross Sales
79%
82%
78%
82%
82%
Gross Profit
762
765
710
804
% Gross Sales
48%
50%
46%
51%
SG&A
693
665
696
745
% Gross Sales
43%
43%
45%
47%
Adjusted EBITDA
184
200
121
157
200
% Gross Sales
12%
13%
8%
10%
12%
Focus on
operating margins and reduction in returns, discounts and
allowances*
Returns Trends
30
Returns Trends in North America
6.0%
16.0%
14.5%
11.5%
7.5%
7.2%
'99-'01 Average
2002
2003
2004P
As-Reported Returns (Including Growth Plan)
Ongoing Returns
Financial Performance*
On-track to meet 2004E EBITDA of $200mm
Quarterly Net Sales
Quarterly Adjusted EBITDA
31
($mm)
Net Sales
Adjusted EBITDA
Note: All financial data presented on an ongoing basis and adjusted for Growth Plan charges.
* See reconciliations of non-GAAP financial measures attached to this presentation.
A Different and Stronger Revlon
Property of Revlon
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON,
INC. AND SUBSIDIARIES
UNAUDITED ADJUSTED SALES
RECONCILIATION(1)
(DOLLARS IN
MILLIONS)
REVLON'S GLOBAL BUSINESS
 |
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YEAR ENDED DECEMBER 31, 2003 | |||||||||||||||||
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AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
GROWTH PLAN |
|
ADJUSTED | |||||||||||
| Net Sales | |
$ | 1,299 | |
$ | — | |
5 | |
1,304 | ||||||||
| Add: Returns allowances and discounts | |
281 | |
— | |
(1 | ) | |
280 | |||||||||
| Gross Sales | |
$ | 1,580 | |
$ | — | |
$ | 4 | |
$ | 1,584 | ||||||
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED INTERNATIONAL ADJUSTED SALES RECONCILIATION
(1)
(DOLLARS IN MILLIONS)
INTERNATIONAL OVERVIEW
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YEAR ENDED DECEMBER 31, 2003 | |||||||||||||||||
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AS REPORTED |
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BRAND AND FACILITIES SOLD |
|
GROWTH PLAN |
|
ADJUSTED | |||||||||||
| Net sales | |
$ | 409 | |
$ | — | |
$ | — | |
$ | 409 | ||||||
| Add: Returns allowances and discounts | |
53 | |
— | |
— | |
53 | ||||||||||
| Gross Sales | |
$ | 462 | |
$ | — | |
$ | — | |
$ | 462 | ||||||
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA (1)
(DOLLARS IN
MILLIONS)
DIFFERENT AND STRONGER REVLON: IMPROVED FINANCIAL PERFORMANCE
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YEAR ENDED DECEMBER 31, 2002 | |||||||||||||||||||||||||
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AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% NET SALES |
|||||||||||||||
| Net sales | |
$ | 1,119 | |
$ | — | |
$ | — | |
$ | 76 | |
$ | 1,195 | |
100.0 | % | ||||||||
| Gross profit | |
616 | |
— | |
2 | |
93 | |
711 | |
59.5 | % | |||||||||||||
| Selling, general and administrative expenses | |
717 | |
— | |
(9 | ) | |
(11 | ) | |
697 | |
58.3 | % | |||||||||||
| Restructuring costs and other, net | |
14 | |
— | |
(14 | ) | |
— | |
— | |
0.0 | % | ||||||||||||
| Operating income (loss) | |
(115 | ) | |
— | |
25 | |
104 | |
14 | |
1.2 | % | ||||||||||||
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| Adjusted EBITDA: | |
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| Operating income (loss) | |
$ | (115 | ) | |
$ | — | |
$ | 25 | |
$ | 104 | |
$ | 14 | |
1.2 | % | |||||||
| Depreciation and amortization | |
109 | |
— | |
(1 | ) | |
(1 | ) | |
107 | |
9.0 | % | |||||||||||
|
$ | (6 | ) | |
$ | — | |
$ | 24 | |
$ | 103 | |
$ | 121 | |
10.1 | % | ||||||||
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YEAR ENDED DECEMBER 31, 2003 | ||||||||||||||||||||||||||
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AS REPORTED | |
BRAND AND FACILITIES SOLD | |
RESTRUCTURING COSTS AND OTHER, NET | |
GROWTH PLAN | |
ADJUSTED | |
% NET SALES | ||||||||||||||||
| Net sales | |
$ | 1,299 | |
$ | — | |
$ | — | |
$ | 5 | |
$ | 1,304 | |
100.0 | % | |||||||||
| Gross profit | |
798 | |
— | |
1 | |
5 | |
804 | |
61.7 | % | ||||||||||||||
| Selling, general and administrative expenses | |
771 | |
— | |
— | |
(26 | ) | |
745 | |
57.1 | % | |||||||||||||
| Restructuring costs and other, net | |
6 | |
— | |
(6 | ) | |
— | |
— | |
0.0 | % | |||||||||||||
| Operating income (loss) | |
21 | |
— | |
7 | |
31 | |
59 | |
4.5 | % | ||||||||||||||
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| Adjusted EBITDA: | |
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| Operating income (loss) | |
$ | 21 | |
$ | — | |
$ | 7 | |
$ | 31 | |
$ | 59 | |
4.5 | % | |||||||||
| Depreciation and amortization | |
101 | |
|
(1 | ) | |
(2 | ) | |
98 | |
7.5 | % | |||||||||||||
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$ | 122 | |
$ | — | |
$ | 6 | |
$ | 29 | |
$ | 157 | |
12.0 | % | ||||||||||
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED TOTAL DEBT RECONCILIATION (1)
(DOLLARS IN MILLIONS)
A DIFFERENT AND STRONGER REVLON: DRAMATICALLY IMPROVED CAPITAL STRUCTURE
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YEAR ENDED DECEMBER 31, 2003 | |||||||||||||
|
AS REPORTED | |
EXCHANGE
OFFER PROFORMA ADJUSTMENTS* |
|
PROFORMA | |||||||||
| Short-term borrowings - third parties | |
$ | 28.0 | |
$ | — | |
$ | 28.0 | |||||
| Long term debt: | |
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|||||||||||
| Credit facilities | |
217.3 | |
2.1 | |
219.4 | ||||||||
| 12% Senior Secured Notes due 2005 | |
356.3 | |
— | |
356.3 | ||||||||
| 8 1/8% Senior Notes due 2006 | |
249.8 | |
(133.7 | ) | |
116.1 | |||||||
| 9% Senior Notes due 2006 | |
250.0 | |
(174.5 | ) | |
75.5 | |||||||
| 8 5/8% Senior Subordinated Notes due 2008 | |
649.9 | |
(322.9 | ) | |
327.0 | |||||||
| 12% Senior Unsecured Multiple Draw Term Loan due 2005 | |
106.6 | |
(106.6 | ) | |
— | |||||||
| 8% MacAndrews & Forbes Line of Credit due 2005 | |
15.5 | |
(15.5 | ) | |
— | |||||||
| Advance from affiliates | |
24.1 | |
(24.1 | ) | |
— | |||||||
| Total indebtedness | |
$ | 1,897.5 | |
$ | (775.2 | ) | |
$ | 1,122.3 | ||||
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| * | Proforma adjustments to reflect the debt for equity exchange that took place on March 25, 2004 as if such transaction had occurred at December 31, 2003. |
| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED
FINANCIAL DATA (1)
(DOLLARS IN
MILLIONS)
A DIFFERENT AND STRONGER REVLON: THE MARGIN DESTINATION
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YEAR ENDED DECEMBER 31, 2003 | |||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|||||||||||||||
| Gross sales | |
$ | 1,580 | |
$ | — | |
$ | — | |
$ | 4 | |
$ | 1,584 | |
100 | % | ||||||||
| Returns, allowances and discounts | |
281 | |
— | |
— | |
(1 | ) | |
280 | |
18 | % | ||||||||||||
| Net sales | |
1,299 | |
— | |
— | |
5 | |
1,304 | |
82 | % | |||||||||||||
| Cost of goods sold | |
501 | |
— | |
(1 | ) | |
— | |
500 | |
32 | % | ||||||||||||
| Gross profit | |
798 | |
— | |
1 | |
5 | |
804 | |
51 | % | |||||||||||||
| Selling, general and administrative expenses | |
771 | |
— | |
— | |
(26 | ) | |
745 | |
47 | % | ||||||||||||
| Restructuring costs and other, net | |
6 | |
— | |
(6 | ) | |
— | |
— | |
0 | % | ||||||||||||
| Operating income | |
21 | |
— | |
7 | |
31 | |
59 | |
4 | % | |||||||||||||
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| Adjusted EBITDA: | |
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| Operating income | |
$ | 21 | |
$ | — | |
$ | 7 | |
$ | 31 | |
$ | 59 | |
4 | % | ||||||||
| Depreciation and amortization | |
101 | |
|
(1 | ) | |
(2 | ) | |
98 | |
6 | % | ||||||||||||
|
$ | 122 | |
$ | — | |
$ | 6 | |
$ | 29 | |
$ | 157 | |
10 | % | |||||||||
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED 2003 AS REPORTED TO 2004P RECONCILIATION OF SALES GROWTH
(1)
(DOLLARS IN MILLIONS)
ACCELERATING BUSINESS MOMENTUM: SALES GROWTH DRIVERS
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| Full year 2003 net sales as reported | |
$ | 1,299 | |||
| Add: return allowances and discounts | |
281 | ||||
| Full year 2003 gross sales as reported | |
$ | 1,580 | |||
|
||||||
| Sales growth drivers: | |
|||||
| Space gains (all businesses) | |
28 | ||||
| Pricing (color cosmetics) | |
8 | ||||
| Marketing, advertising and promotion effectiveness (all businesses) | |
23 | ||||
| Category growth (all businesses) | |
36 | ||||
| International growth: | |
|||||
| cosmetics (UK, Australia, Europe distributor markets) | |
15 | ||||
| hair care (primarily Latin America) | |
18 | ||||
| beauty care | |
8 | ||||
| other cosmetics | |
3 | ||||
| Full year 2004P gross sales | |
$ | 1,719 | |||
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED OPERATING INCOME MARGIN RECONCILIATION (1)
(DOLLARS IN
MILLIONS)
SIGNIFICANT MARGIN UPSIDE: MARGIN TRANSFORMATION INITIATIVES
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YEAR ENDED DECEMBER 31, 2003 | |||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|||||||||||||||
| Gross sales | |
$ | 1,580 | |
$ | — | |
$ | — | |
$ | 4 | |
$ | 1,584 | |
100 | % | ||||||||
| Returns, allowances and discounts | |
281 | |
— | |
— | |
(1 | ) | |
280 | |
18 | % | ||||||||||||
| Net sales | |
1,299 | |
— | |
— | |
5 | |
1,304 | |
82 | % | |||||||||||||
| Cost of goods sold | |
501 | |
— | |
(1 | ) | |
— | |
500 | |
32 | % | ||||||||||||
| Gross profit | |
798 | |
— | |
1 | |
5 | |
804 | |
51 | % | |||||||||||||
| Selling, general and administrative expenses | |
771 | |
— | |
— | |
(26 | ) | |
745 | |
47 | % | ||||||||||||
| Restructuring costs and other, net | |
6 | |
— | |
(6 | ) | |
— | |
— | |
0 | % | ||||||||||||
| Operating income (loss) | |
$ | 21 | |
$ | — | |
$ | 7 | |
$ | 31 | |
$ | 59 | |
4 | % | ||||||||
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%
GROSS SALES |
|||||
| 2003 Operating income margin | |
4 | % | |||
|
||||||
| Margin impact of: | |
|||||
| Promotion redesign | |
1 | % | |||
| Product life cycle management | |
2 | % | |||
| In-store merchandising | |
2 | % | |||
| International supply chain | |
1 | % | |||
| Cost of goods sold reduction | |
1 | % | |||
| Indirect sourcing | |
1 | % | |||
| Departmental cost control | |
2 | % | |||
|
||||||
| Destination plan (3-5 years) margin | |
14 | % | |||
|
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA (1)
(DOLLARS IN MILLIONS)
FINANCIAL PERFORMANCE
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YEAR ENDED DECEMBER 31, 2000 | |||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|||||||||||||||
| Gross sales | |
$ | 1,750 | |
$ | (153 | ) | |
$ | — | |
$ | — | |
$ | 1,597 | |
100.0 | % | |||||||
| Returns, allowances and discounts | |
341 | |
(9 | ) | |
— | |
— | |
332 | |
20.8 | % | ||||||||||||
| Net sales | |
1,409 | |
(144 | ) | |
— | |
— | |
1,265 | |
79.2 | % | ||||||||||||
| Gross profit | |
835 | |
(78 | ) | |
5 | |
— | |
762 | |
47.7 | % | ||||||||||||
| Selling, general and administrative expenses | |
765 | |
(72 | ) | |
— | |
— | |
693 | |
43.4 | % | ||||||||||||
| Restructuring costs and other, net | |
54 | |
— | |
(54 | ) | |
— | |
— | |
0.0 | % | ||||||||||||
| Operating income (loss) | |
16 | |
(6 | ) | |
59 | |
— | |
69 | |
4.3 | % | ||||||||||||
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| Adjusted EBITDA: | |
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| Operating income (loss) | |
$ | 16 | |
$ | (6 | ) | |
$ | 59 | |
$ | — | |
$ | 69 | |
4.3 | % | |||||||
| Depreciation and amortization | |
121 | |
(3 | ) | |
(3 | ) | |
— | |
115 | |
7.2 | % | |||||||||||
|
$ | 137 | |
$ | (9 | ) | |
$ | 56 | |
$ | — | |
$ | 184 | |
11.5 | % | ||||||||
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YEAR ENDED DECEMBER 31, 2001 | |||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|||||||||||||||
| Gross sales | |
$ | 1,554 | |
$ | (17 | ) | |
$ | — | |
$ | — | |
$ | 1,537 | |
100.0 | % | |||||||
| Returns, allowances and discounts | |
276 | |
— | |
— | |
— | |
276 | |
18.0 | % | |||||||||||||
| Net sales | |
1,278 | |
(17 | ) | |
— | |
— | |
1,261 | |
82.0 | % | ||||||||||||
| Gross profit | |
733 | |
(7 | ) | |
39 | |
— | |
765 | |
49.8 | % | ||||||||||||
| Selling, general and administrative expenses | |
679 | |
(9 | ) | |
(5 | ) | |
— | |
665 | |
43.3 | % | |||||||||||
| Restructuring costs and other, net | |
38 | |
— | |
(38 | ) | |
— | |
— | |
0.0 | % | ||||||||||||
| Operating income | |
16 | |
2 | |
82 | |
— | |
100 | |
6.5 | % | |||||||||||||
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| Adjusted EBITDA: | |
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|
||||||||||||||||||||
| Operating income | |
$ | 16 | |
$ | 2 | |
$ | 82 | |
$ | — | |
$ | 100 | |
6.5 | % | ||||||||
| Depreciation and amortization | |
109 | |
(1 | ) | |
(8 | ) | |
— | |
100 | |
6.5 | % | |||||||||||
|
$ | 125 | |
$ | 1 | |
$ | 74 | |
$ | — | |
$ | 200 | |
13.0 | % | |||||||||
|
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| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA (1)
(DOLLARS IN MILLIONS)
FINANCIAL PERFORMANCE
|
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YEAR ENDED DECEMBER 31, 2002 | |||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|||||||||||||||
| Gross sales | |
$ | 1,536 | |
$ | — | |
$ | — | |
$ | — | |
$ | 1,536 | |
100.0 | % | ||||||||
| Returns, allowances and discounts | |
417 | |
— | |
— | |
(76 | ) | |
341 | |
22.2 | % | ||||||||||||
| Net sales | |
1,119 | |
— | |
— | |
76 | |
1,195 | |
77.8 | % | |||||||||||||
| Gross profit | |
616 | |
— | |
2 | |
92 | |
710 | |
46.2 | % | |||||||||||||
| Selling, general and administrative expenses | |
717 | |
— | |
(10 | ) | |
(11 | ) | |
696 | |
45.3 | % | |||||||||||
| Restructuring costs and other, net | |
14 | |
— | |
(14 | ) | |
— | |
— | |
0.0 | % | ||||||||||||
| Operating (loss) income | |
(115 | ) | |
— | |
26 | |
103 | |
14 | |
0.9 | % | ||||||||||||
|
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|
|||||||||||||||||||||
| Adjusted EBITDA: | |
|
|
|
|
|
||||||||||||||||||||
| Operating (loss) income | |
$ | (115 | ) | |
$ | — | |
$ | 26 | |
$ | 103 | |
$ | 14 | |
0.9 | % | |||||||
| Depreciation and amortization | |
109 | |
— | |
(1 | ) | |
(1 | ) | |
107 | |
7.0 | % | |||||||||||
|
$ | (6 | ) | |
$ | — | |
$ | 25 | |
$ | 102 | |
$ | 121 | |
7.9 | % | ||||||||
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YEAR ENDED DECEMBER 31, 2003 | |||||||||||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCT- URING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|
GROSS SALES GROWTH VS 2002 |
|
COMPOUNDED GROSS SALES GROWTH VS 2002 |
|||||||||||||||||||
| Gross sales | |
$ | 1,580 | |
$ | — | |
$ | — | |
$ | 4 | |
$ | 1,584 | |
100.0 | % | |
3 | % | |
3 | % | ||||||||||
| Returns, allowances and discounts | |
281 | |
— | |
— | |
(1 | ) | |
280 | |
17.7 | % | |
|
||||||||||||||||||
| Net sales | |
1,299 | |
— | |
— | |
5 | |
1,304 | |
82.3 | % | |
|
|||||||||||||||||||
| Gross profit | |
798 | |
— | |
1 | |
5 | |
804 | |
50.8 | % | |
|
|||||||||||||||||||
| Selling, general and administrative expenses | |
771 | |
— | |
— | |
(26 | ) | |
745 | |
47.0 | % | |
|
||||||||||||||||||
| Restructuring costs and other, net | |
6 | |
— | |
(6 | ) | |
— | |
— | |
0.0 | % | |
|
||||||||||||||||||
| Operating income | |
21 | |
— | |
7 | |
31 | |
59 | |
3.7 | % | |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Adjusted EBITDA: | |
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| Operating income | |
$ | 21 | |
$ | — | |
$ | 7 | |
$ | 31 | |
$ | 59 | |
3.7 | % | |
|
||||||||||||||
| Depreciation and amortization | |
101 | |
— | |
(1 | ) | |
(2 | ) | |
98 | |
6.2 | % | |
|
|||||||||||||||||
|
$ | 122 | |
$ | — | |
$ | 6 | |
$ | 29 | |
$ | 157 | |
9.9 | % | |
|
|||||||||||||||
|
||||||||||||||||||||||||||||||||||
| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA (1)
(DOLLARS IN MILLIONS)
FINANCIAL PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR ENDED DECEMBER 31, 2004P | |||||||||||||||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCT- URING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |
% GROSS SALES |
|
GROSS SALES GROWTH VS 2003 |
|
COMPOUNDED GROSS SALES GROWTH VS 2002 |
|||||||||||||||||||
| Gross sales | |
$ | 1,719 | |
$ | — | |
$ | — | |
$ | — | |
$ | 1,719 | |
100.0 | % | |
9 | % | |
6 | % | ||||||||||
| Returns, allowances and discounts | |
312 | |
— | |
— | |
— | |
312 | |
18.2 | % | |
|
|||||||||||||||||||
| Net sales | |
1,407 | |
— | |
— | |
— | |
1,407 | |
81.8 | % | |
|
|||||||||||||||||||
| Gross profit | |
858 | |
— | |
— | |
— | |
858 | |
49.9 | % | |
|
|||||||||||||||||||
| Selling, general and administrative expenses | |
759 | |
— | |
— | |
— | |
759 | |
44.2 | % | |
|
|||||||||||||||||||
| Restructuring costs and other, net | |
— | |
— | |
— | |
— | |
— | |
0.0 | % | |
|
|||||||||||||||||||
| Operating income | |
99 | |
— | |
— | |
— | |
99 | |
5.8 | % | |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Adjusted EBITDA: | |
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| Operating income | |
$ | 99 | |
$ | — | |
$ | — | |
$ | — | |
$ | 99 | |
5.8 | % | |
|
||||||||||||||
| Depreciation and amortization | |
102 | |
— | |
— | |
— | |
102 | |
5.9 | % | |
|
|||||||||||||||||||
|
$ | 201 | |
$ | — | |
$ | — | |
$ | — | |
$ | 201 | |
11.7 | % | |
|
|||||||||||||||
|
||||||||||||||||||||||||||||||||||
| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA (1)
(DOLLARS IN MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR ENDED DECEMBER 31, 2002 | |||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |||||||||||||
| Net sales | |
$ | 1,119 | |
$ | — | |
$ | — | |
$ | 76 | |
$ | 1,195 | |||||||
| Gross profit | |
616 | |
— | |
2 | |
92 | |
710 | ||||||||||||
| Selling, general and administrative expenses | |
717 | |
— | |
(10 | ) | |
(11 | ) | |
696 | ||||||||||
| Restructuring costs and other, net | |
14 | |
— | |
(14 | ) | |
— | |
— | |||||||||||
| Operating (loss) income | |
(115 | ) | |
— | |
26 | |
103 | |
14 | |||||||||||
|
|
|
|
|
||||||||||||||||||
| Adjusted EBITDA: | |
|
|
|
|
|||||||||||||||||
| Operating (loss) income | |
$ | (115 | ) | |
$ | — | |
$ | 26 | |
$ | 103 | |
$ | 14 | ||||||
| Depreciation and amortization | |
109 | |
— | |
(1 | ) | |
(1 | ) | |
107 | ||||||||||
|
$ | (6 | ) | |
$ | — | |
$ | 25 | |
$ | 102 | |
$ | 121 | |||||||
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR ENDED DECEMBER 31, 2003 | |||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |||||||||||||
| Net sales | |
$ | 1,299 | |
$ | — | |
$ | — | |
$ | 5 | |
$ | 1,304 | |||||||
| Gross profit | |
798 | |
— | |
1 | |
5 | |
804 | ||||||||||||
| Selling, general and administrative expenses | |
771 | |
— | |
— | |
(26 | ) | |
745 | |||||||||||
| Restructuring costs and other, net | |
6 | |
— | |
(6 | ) | |
— | |
— | |||||||||||
| Operating income | |
21 | |
— | |
7 | |
31 | |
59 | ||||||||||||
|
|
|
|
|
||||||||||||||||||
| Adjusted EBITDA: | |
|
|
|
|
|||||||||||||||||
| Operating income | |
$ | 21 | |
$ | — | |
$ | 7 | |
$ | 31 | |
$ | 59 | |||||||
| Depreciation and amortization | |
101 | |
— | |
(1 | ) | |
(2 | ) | |
98 | ||||||||||
|
$ | 122 | |
$ | — | |
$ | 6 | |
$ | 29 | |
$ | 157 | ||||||||
|
||||||||||||||||||||||
| (1) | Subject to minor rounding differences |
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO GAAP
REVLON, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL DATA (1)
(DOLLARS IN MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR ENDED DECEMBER 31, 2004P | |||||||||||||||||||||
|
AS REPORTED |
|
BRAND AND FACILITIES SOLD |
|
RESTRUCTURING COSTS AND OTHER, NET |
|
GROWTH PLAN |
|
ADJUSTED | |||||||||||||
| Net sales | |
$ | 1,407 | |
$ | — | |
$ | — | |
$ | — | |
$ | 1,407 | |||||||
| Gross profit | |
858 | |
— | |
— | |
— | |
858 | ||||||||||||
| Selling, general and administrative expenses | |
759 | |
— | |
— | |
— | |
759 | ||||||||||||
| Restructuring costs and other, net | |
— | |
— | |
— | |
— | |
— | ||||||||||||
| Operating income | |
99 | |
— | |
— | |
— | |
99 | ||||||||||||
|
|
|
|
|
||||||||||||||||||
| Adjusted EBITDA: | |
|
|
|
|
|||||||||||||||||
| Operating income | |
$ | 99 | |
$ | — | |
$ | — | |
$ | — | |
$ | 99 | |||||||
| Depreciation and amortization | |
102 | |
— | |
— | |
— | |
102 | ||||||||||||
|
$ | 201 | |
$ | — | |
$ | — | |
$ | — | |
$ | 201 | ||||||||
|
||||||||||||||||||||||
QUARTERLY FINANCIAL PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED 2003 | |
YEAR ENDED 2003 |
|
THREE MONTHS ENDED MARCH 31, 2004 |
|||||||||||||||||||||
| NET SALES | |
MARCH 31, | |
JUNE 30, | |
SEPT 30, | |
DEC 31, | |
|||||||||||||||||
| Net sales - as reported | |
$ | 292 | |
$ | 322 | |
$ | 317 | |
$ | 369 | |
$ | 1,300 | |
$ | 308 | ||||||||
| Growth plan | |
6 | |
10 | |
(4 | ) | |
(7 | ) | |
5 | |
— | ||||||||||||
| Net sales | |
$ | 298 | |
$ | 332 | |
$ | 313 | |
$ | 362 | |
$ | 1,305 | |
$ | 308 | ||||||||
|
|
|
|
|
|
|||||||||||||||||||||
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA: | |
|
|
|
|
|
||||||||||||||||||||
| As reported net loss | |
$ | (49 | ) | |
$ | (38 | ) | |
$ | (54 | ) | |
$ | (13 | ) | |
$ | (154 | ) | |
$ | (58 | ) | ||
| Interest expense, net | |
41 | |
41 | |
43 | |
45 | |
170 | |
44 | ||||||||||||||
| Amortization of debt issuance costs | |
2 | |
3 | |
2 | |
2 | |
9 | |
3 | ||||||||||||||
| Foreign currency loss (gains), net | |
1 | |
(3 | ) | |
(1 | ) | |
(2 | ) | |
(5 | ) | |
(1 | ) | |||||||||
| Loss on early extinguishment of debt | |
— | |
— | |
— | |
— | |
— | |
32 | ||||||||||||||
| Miscellaneous, net | |
— | |
— | |
— | |
— | |
— | |
— | ||||||||||||||
| Provision (benefit) for income taxes | |
1 | |
(6 | ) | |
2 | |
4 | |
1 | |
1 | |||||||||||||
| Depreciation and amortization | |
28 | |
24 | |
22 | |
27 | |
101 | |
24 | ||||||||||||||
| As reported adjusted EBITDA | |
24 | |
21 | |
14 | |
63 | |
122 | |
45 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
| Restructuring | |
— | |
— | |
1 | |
5 | |
6 | |
(1 | ) | |||||||||||||
| Growth plan | |
11 | |
13 | |
5 | |
— | |
29 | |
— | ||||||||||||||
| Adjusted EBITDA | |
$ | 35 | |
$ | 34 | |
$ | 20 | |
$ | 68 | |
$ | 157 | |
$ | 44 | ||||||||
|
||||||||||||||||||||||||||
| (1) | Subject to minor rounding differences |