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Revlon Reports Third Quarter 2012 Results

  Revlon Reports Third Quarter 2012 Results

Business Wire

NEW YORK -- October 25, 2012

Revlon, Inc. (NYSE: REV) today announced results for the third quarter ended
September 30, 2012.

Third quarter 2012 results compared to third quarter 2011:

  *Net sales of $347.0 million compared to $337.2 million, an increase of
    2.9%. Excluding unfavorable foreign currency fluctuations of $6.4 million,
    third quarter 2012 net sales increased 4.8%.
  *Operating income of $19.1 million, which included $24.1 million of
    restructuring and related charges associated with the actions announced on
    September 5, 2012, and a charge of $2.2 million related to estimated costs
    of settling previously disclosed litigation related to the Company’s 2009
    exchange offer, compared to $44.8 million.
  *Net loss of $15.0 million, or $0.29 per diluted share, which included
    $24.1 million ($23.1 million after tax) of restructuring and related
    charges and a charge of $2.2 million, before and after tax, related to the
    litigation noted above, compared to net income of $0.1 million, or nil per
    diluted share. Net loss in the third quarter of 2012 included $11.5
    million of income tax expense, compared to $22.1 million in the third
    quarter of 2011.
  *Adjusted EBITDA^a of $36.2 million, which included $24.1 million of
    restructuring and related charges and a $2.2 million charge related to the
    litigation noted above, compared to $60.3 million.
  *Net cash provided by operating activities of $39.6 million compared to
    $16.9 million; free cash flow^b of $34.2 million compared to $13.3
    million.

Commenting on today’s announcement, Revlon President and Chief Executive
Officer, Alan T. Ennis, said, “In the third quarter, we continued to execute
our strategy of profitably growing our business as we grew net sales by 4.8%,
maintained competitive operating income margins, and improved free cash flow.
We continue to bring highly innovative, consumer-preferred new products to the
marketplace. In the quarter, we also announced actions to drive operating
efficiencies, which, once fully implemented, are expected to generate
annualized cost reductions of approximately $10 million. These actions are
further enabling us to invest in the execution of our strategy while
maintaining highly competitive margins.”

                          Third Quarter 2012 Results

Note: The results of operations related to Pure Ice are included in the
Company's consolidated financial statements commencing on the date of
acquisition, July 2, 2012.

Net sales in the third quarter of 2012 were $347.0 million, an increase of
$9.8 million, or 2.9%, compared to $337.2 million in the same period last
year. Excluding unfavorable foreign currency fluctuations of $6.4 million, net
sales increased by $16.2 million, or 4.8%. The increase was primarily driven
by higher net sales of Revlon color cosmetics, as well as the inclusion of the
net sales of Pure Ice.

In the United States, net sales in the third quarter of 2012 were $192.0
million, an increase of $7.3 million, or 4.0%, compared to $184.7 million in
the same period last year. The increase was primarily driven by higher net
sales of Revlon color cosmetics and the inclusion of the net sales of Pure
Ice. These increases were partially offset by lower net sales of Almay color
cosmetics, Revlon ColorSilk and Mitchum anti-perspirant deodorant.

In Asia Pacific, net sales in the third quarter of 2012 were $60.9 million, an
increase of $2.9 million, or 5.0%, compared to $58.0 million in the same
period last year. Excluding the unfavorable impact of foreign currency
fluctuations, net sales increased $3.2 million, or 5.5%, primarily due to
higher net sales of Revlon color cosmetics in Japan and certain distributor
territories, partially offset by lower net sales of Revlon color cosmetics in
China.

In Europe, Middle East and Africa, net sales in the third quarter of 2012 were
$43.8 million, a decrease of $7.3 million, or 14.3%, compared to $51.1 million
in the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales decreased $2.8 million, or 5.5%, primarily
due to a higher returns accrual of $1.6 million associated with the previously
announced restructuring and related activities in France and Italy, as well as
lower net sales of fragrances in the U.K. and certain distributor territories
and lower net sales of Revlon color cosmetics in Italy. These unfavorable
impacts were partially offset by higher net sales of Revlon color cosmetics in
South Africa.

In Latin America, net sales in the third quarter of 2012 were $30.6 million,
an increase of $5.0 million, or 19.5%, compared to $25.6 million in the same
period last year. Excluding the unfavorable impact of foreign currency
fluctuations, net sales in Latin America increased $6.3 million, or 24.6%,
primarily due to higher net sales in Venezuela. Venezuela’s increase in net
sales was primarily due to the absence of sales for a portion of the third
quarter of 2011 as a result of the June 5, 2011 fire that destroyed the
Company’s facility there. Net sales in Venezuela and Argentina also benefited
from higher selling prices reflecting market conditions and inflation, which
accounted for approximately one-quarter of the $6.3 million net sales increase
in the region.

In Canada, net sales in the third quarter of 2012 were $19.7 million, an
increase of $1.9 million, or 10.7%, compared to $17.8 million in the same
period last year. Excluding the unfavorable impact of foreign currency
fluctuations, net sales increased $2.2 million, or 12.4%, primarily due to
higher net sales of Revlon color cosmetics.

Operating income in the third quarter of 2012 was $19.1 million, compared to
$44.8 million in the same period last year, and Adjusted EBITDA in the third
quarter of 2012 was $36.2 million, compared to $60.3 million in the same
period last year. Operating income and Adjusted EBITDA in the third quarter of
2012 were negatively impacted by $24.1 million of restructuring and related
charges associated with restructuring actions announced on September 5, 2012
and a charge of $2.2 million related to estimated costs of settling previously
disclosed litigation related to the Company’s 2009 exchange offer.

Interest expense, including preferred stock dividends, decreased $0.5 million
to $21.5 million in the third quarter of 2012 compared to the same period last
year.

The provision for income taxes was $11.5 million compared to $22.1 million in
the same period last year. The decrease in the provision for income taxes was
primarily attributable to decreased pre-tax income and the absence of various
discrete items that, in the aggregate, negatively affected the provision for
income taxes in the third quarter of 2011 and did not recur in the third
quarter of 2012. Cash paid for income taxes, net of refunds, in the third
quarter of 2012 was $2.9 million, compared to $1.7 million in the same period
last year.

Net loss in the third quarter of 2012 was $15.0 million, or $0.29 per diluted
share, which included $24.1 million ($23.1 million after tax) of restructuring
and related charges and a charge of $2.2 million, before and after tax,
related to the previously disclosed litigation, compared to net income of $0.1
million, or nil per diluted share, in the same period last year.

Net cash provided by operating activities in the third quarter of 2012 was
$39.6 million, compared to $16.9 million in the same period last year. Free
cash flow in the third quarter of 2012 was $34.2 million, compared to free
cash flow of $13.3 million in the same period last year. Cash flow in the
third quarter of 2012 as compared to the same period last year was impacted by
favorable changes in working capital and lower pension contributions. Net cash
used in investing activities in the third quarter of 2012 was $71.6 million,
primarily due to the Pure Ice acquisition, compared to $3.6 million in the
same period last year.

Adjusted EBITDA and free cash flow are non-GAAP measures that are defined in
the footnotes to this release and are reconciled to their most directly
comparable GAAP measures, respectively, in the accompanying financial tables.

                            Restructuring Actions

On September 5, 2012, the Company announced actions to drive operating
efficiencies. The primary components of the restructuring, which are in
process, include: (1) exiting the Company’s owned manufacturing facility in
France and its leased manufacturing facility in Maryland, moving manufacturing
from those facilities to other Revlon facilities and third parties; (2)
rightsizing its French and Italian organizations; and (3) realigning its
operations in Latin America, including consolidating Latin America and Canada
into a single region. These actions are expected to result in eliminating
approximately 250 positions worldwide. Certain of the actions are subject to
consultations with employees, works councils or unions, and government
authorities.

Annualized cost reductions are expected to be approximately $10 million, $9
million of which is expected to benefit 2013. Restructuring and related
charges are expected to be approximately $25 million, $24.1 million of which
was recorded in the third quarter of 2012, including $21.0 million in
restructuring charges, $1.6 million as a reduction to net sales, $1.1 million
in cost of goods sold, and $0.4 million in selling, general and administrative
expenses. Of the total expected charges of $25 million, $23 million will be
cash that is expected to be paid over the next 18 months.

                             Nine Months Results

Net sales in the first nine months of 2012 were $1,034.8 million, an increase
of $13.2 million, or 1.3%, compared to net sales of $1,021.6 million in the
first nine months of 2011. Excluding unfavorable foreign currency fluctuations
of $19.4 million, net sales increased $32.6 million, or 3.2%.

In the United States, net sales increased $14.8 million, or 2.6%, to $580.6
million in the first nine months of 2012, compared to net sales of $565.8
million in the first nine months of 2011.

In Asia Pacific, net sales in the first nine months of 2012 were $172.8
million, an increase of $3.2 million, or 1.9%, compared to $169.6 million in
the same period last year. Excluding the favorable impact of foreign currency
fluctuations, net sales increased $2.7 million, or 1.6%.

In Europe, Middle East and Africa, net sales in the first nine months of 2012
were $134.0 million, a decrease of $18.8 million, or 12.3%, compared to $152.8
million in the same period last year. Excluding the unfavorable impact of
foreign currency fluctuations, net sales decreased $5.4 million, or 3.5%.

In Latin America, net sales in the first nine months of 2012 were $89.2
million, an increase of $10.3 million, or 13.1%, compared to $78.9 million in
the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales increased $15.3 million, or 19.4%.

In Canada, net sales in the first nine months of 2012 were $58.2 million, an
increase of $3.7 million, or 6.8%, compared to $54.5 million in the same
period last year. Excluding the unfavorable impact of foreign currency
fluctuations, net sales increased $5.2 million, or 9.5%.

Operating income was $106.2 million in the first nine months of 2012, compared
to $137.3 million in the same period last year and Adjusted EBITDA was $154.9
million in the first nine months of 2012, compared to $184.3 million in the
same period last year. Operating income and Adjusted EBITDA in the first nine
months of 2012 included $24.1 million of restructuring and related charges and
a net charge of $8.9 million with respect to estimated costs of settling
previously disclosed litigation related to the Company’s 2009 exchange offer.

Interest expense, including preferred stock dividends, for the first nine
months of 2012 decreased $5.2 million to $64.3 million compared to the same
period last year.

The provision for income taxes for the first nine months of 2012 was $31.6
million compared to $32.4 million in the same period last year. Cash paid for
income taxes, net of refunds, for the first nine months of 2012 was $13.8
million compared to $14.0 million in the same period last year.

Net income in the first nine months of 2012 was $4.6 million, or $0.09 per
diluted share, compared to $17.0 million, or $0.32 per diluted share in the
first nine months of 2011. Net income in the first nine months of 2012
included $24.1 million ($23.1 million after tax) of restructuring and related
charges and a net charge of $8.9 million, before and after tax, related to the
litigation noted above. Net income in the first nine months of 2011 included
charges of $11.3 million ($6.9 million after tax) related to the 2011
refinancing of the Company’s bank credit facilities.

Net cash provided by operating activities in the first nine months of 2012 was
$17.9 million, compared to $20.2 million in the same period last year, and
free cash flow ^ in the first nine months of 2012 was $3.7 million, compared
to $10.8 million in the same period last year. Net cash used in investing
activities in the first nine months of 2012 was $80.4 million, compared to
$48.4 million in the same period last year. The first nine months of 2012
included the Pure Ice acquisition and the first nine months of 2011 included
the SinfulColors acquisition.

                               Company Strategy

The Company continues to execute its business strategy: (i) build our strong
brands; (ii) develop our organizational capability; (iii) drive our company to
act globally; (iv) increase our operating profit and cash flow; and (v)
improve our capital structure.

                Third Quarter 2012 Results and Conference Call

The Company will host a conference call with members of the investment
community on October 25, 2012 at 9:30 A.M. EDT to discuss Third Quarter 2012
results. Access to the call is available to the public at www.revloninc.com.

About Revlon

Revlon is a global color cosmetics, hair color, beauty tools, fragrances,
skincare, anti-perspirant deodorants and beauty care products company whose
vision is Glamour, Excitement and Innovation through high-quality products at
affordable prices. Revlon® is one of the strongest consumer brand franchises
in the world. Revlon’s global brand portfolio includes Revlon® color
cosmetics, Almay® color cosmetics, SinfulColors® color cosmetics, Revlon
ColorSilk® hair color, Revlon® beauty tools, Charlie® fragrances, Mitchum®
anti-perspirant deodorants, and Ultima II® and Gatineau® skincare. Websites
featuring current product and promotional information can be reached at
www.revlon.com, www.almay.com and www.mitchum.com. Corporate and investor
relations information can be accessed at www.revloninc.com.

                          Footnotes to Press Release

^a Adjusted EBITDA is a non-GAAP financial measure that is reconciled to net
income, its most directly comparable GAAP measure, in the accompanying
financial tables. Adjusted EBITDA is defined as income from continuing
operations before interest, taxes, depreciation, amortization, gains/losses on
foreign currency fluctuations, gains/losses on the early extinguishment of
debt and miscellaneous expenses. In calculating Adjusted EBITDA, the Company
excludes the effects of gains/losses on foreign currency fluctuations,
gains/losses on the early extinguishment of debt, results of and gains/losses
on discontinued operations and miscellaneous expenses because the Company's
management believes that some of these items may not occur in certain periods,
the amounts recognized can vary significantly from period to period and these
items do not facilitate an understanding of the Company's operating
performance. The Company's management utilizes Adjusted EBITDA as an operating
performance measure in conjunction with GAAP measures, such as net income and
gross margin calculated in accordance with GAAP.

The Company's management uses Adjusted EBITDA as an integral part of its
reporting and planning processes and as one of the primary measures to, among
other things --

(i)     monitor and evaluate the performance of the Company's business
          operations;
(ii)      facilitate management's internal comparisons of the Company's
          historical operating performance of its business operations;
          facilitate management's external comparisons of the results of its
(iii)     overall business to the historical operating performance of other
          companies that may have different capital structures and debt
          levels;
          review and assess the operating performance of the Company's
(iv)      management team and, together with free cash flow and other
          operational objectives, as a measure in evaluating employee
          compensation and bonuses;
(v)       analyze and evaluate financial and strategic planning decisions
          regarding future operating investments; and
(vi)      plan for and prepare future annual operating budgets and determine
          appropriate levels of operating investments.

The Company's management believes that Adjusted EBITDA is useful to investors
to provide them with disclosures of the Company's operating results on the
same basis as that used by the Company's management. Additionally, the
Company's management believes that Adjusted EBITDA provides useful information
to investors about the performance of the Company's overall business because
such measure eliminates the effects of unusual or other infrequent charges
that are not directly attributable to the Company's underlying operating
performance. Additionally, the Company's management believes that because it
has historically provided Adjusted EBITDA in previous press releases, that
including such non-GAAP measure in its earnings releases provides consistency
in its financial reporting and continuity to investors for comparability
purposes. Accordingly, the Company believes that the presentation of Adjusted
EBITDA, when used in conjunction with GAAP financial measures, is a useful
financial analysis tool, used by the Company's management, as described above,
that can assist investors in assessing the Company's financial condition,
operating performance and underlying strength. Adjusted EBITDA should not be
considered in isolation or as a substitute for net income / (loss) prepared in
accordance with GAAP. Other companies may define EBITDA differently. Also,
while EBITDA is defined differently than Adjusted EBITDA for the Company's
credit agreement, certain financial covenants in its borrowing arrangements
are tied to similar measures. Adjusted EBITDA, as well as the other
information in this press release, should be read in conjunction with the
Company's financial statements and footnotes contained in the documents that
the Company files with the U.S. Securities and Exchange Commission.

^b Free cash flow is a non-GAAP measure that is reconciled to net cash
provided by operating activities, its most directly comparable GAAP measure,
in the accompanying financial tables. Free cash flow is defined as net cash
provided by operating activities, less capital expenditures for property,
plant and equipment, plus proceeds from the sale of certain assets. Free cash
flow excludes proceeds on sale of discontinued operations. Management uses
free cash flow (i) to evaluate its business and financial performance and
overall liquidity; (ii) in strategic planning; and (iii) to review and assess
the operating performance of the Company's management team and, together with
Adjusted EBITDA and other operational objectives, as a measure in evaluating
employee compensation and bonuses. Management believes that free cash flow is
useful for investors because it provides them with an important perspective on
the cash available for debt repayment and other strategic measures, after
making necessary capital investments in property and equipment to support the
Company's ongoing business operations, and provides them with the same
measures that management uses as the basis for making resource allocation
decisions. Free cash flow does not represent the residual cash flow available
for discretionary expenditures, as it excludes certain expenditures such as
mandatory debt service requirements, which for the Company are significant.
The Company does not intend for free cash flow to be considered in isolation
or as a substitute for the related GAAP measures. Other companies may define
free cash flow or similarly titled measures differently.

                          Forward-Looking Statements

Statements made in this press release, which are not historical facts,
including statements about the Company's plans, strategies, focus, beliefs and
expectations, are forward-looking and subject to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements speak only as of the date they are made and, except for the
Company's ongoing obligations under the U.S. federal securities laws, the
Company undertakes no obligation to publicly update any forward-looking
statement, whether to reflect actual results of operations; changes in
financial condition; changes in general U.S. or international economic,
industry or cosmetics category conditions; changes in estimates, expectations
or assumptions; or other circumstances, conditions, developments or events
arising after the issuance of this press release. Such forward-looking
statements include, without limitation, the Company's following beliefs,
expectations and/or plans: (i) the Company’s expectations regarding the
charges and payments related to the restructuring actions announced in
September 2012 and the amount and timing of the annualized cost reductions,
including that (a) the announced actions to drive operating efficiencies, once
fully implemented, are to generate annualized cost reductions of approximately
$10 million ($9 million of which is expected to benefit 2013) and are further
enabling us to invest in the execution of our strategy while maintaining
highly competitive margins, and (b) restructuring and related charges are
expected to be approximately $25 million, $23 million of which will be cash
that is expected to be paid over the next 18 months; and (ii) the Company’s
plans to continue to execute its business strategy: (a) build our strong
brands, (b) develop our organizational capability, (c) drive our company to
act globally, (d) increase our operating profit and cash flow and (e) improve
our capital structure. Actual results may differ materially from such
forward-looking statements for a number of reasons, including those set forth
in our filings with the SEC, including, without limitation, our 2011 Annual
Report on Form 10-K that we filed with the SEC in February 2012 and our
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we have
filed or will file with the SEC during 2012 (which may be viewed on the SEC's
website at http://www.sec.gov or on our website at http://www.revloninc.com),
as well as reasons including: (i) higher than anticipated restructuring and
related charges and/or payments and/or changes in the expected timing of such
charges and/or payments and/or less than anticipated annualized cost
reductions from these actions and/or changes in the timing of our realizing
such reductions; and/or difficulties with, delays in or the inability of the
Company to implement these actions and/or realize their anticipated benefits,
such as difficulties or delays in or our inability to invest in the execution
of our strategy which could adversely affect our ability to maintain highly
competitive margins; and (ii) difficulties, delays, unanticipated costs or our
inability to continue to execute our business strategy, such as (a) less than
expected growth of our strong brands, such as due to difficulties, delays,
unanticipated costs or our inability to launch innovative products, such as
due to less than effective new product development; less than expected
acceptance of our new products by consumers and/or retail customers; less than
expected acceptance of our brand communication for such products by consumers
and/or retail partners; less than expected levels of advertising and/or
promotional activities for our new product launches; less than expected levels
of execution with our retail partners; less than anticipated sales of our new
products as a result of consumer response to worldwide economic or other
conditions; greater than expected volatility in the retail sales environment;
more than anticipated returns for such products; actions by our retail
customers impacting our sales, including in response to any decreased consumer
spending in response to weak economic conditions or weakness in the cosmetics
category in the mass retail channel; adverse changes in currency exchange
rates and/or currency controls; decreased sales of the Company's products as a
result of increased competitive activities by the Company’s competitors;
changes in consumer purchasing habits, including with respect to shopping
channels; retailer inventory management; greater than expected impact from
changes in retailer pricing or promotional strategies; greater than
anticipated retailer space reconfigurations or reductions in retailer display
space; less than anticipated results from the Company's existing or new
products or from its advertising, promotional and/or marketing plans; or if
the Company’s expenses, including, without limitation, for advertising,
promotions and/or marketing activities or for sales returns related to any
reduction of retail space, product discontinuances or otherwise, exceed the
anticipated level of expenses, (b) difficulties, delays or the inability to
develop our organizational capability, (c) our inability to drive our company
to act globally, such as due to higher than anticipated levels of investment
required to support and build our brands globally and/or less than anticipated
results from our regional and/or multi-national brands, (d) our inability to
increase our operating profit and/or cash flow, such as due to less than
anticipated sales growth or higher than anticipated operating expenses and/or
(e) difficulties, delays, unanticipated costs or our inability to improve our
capital structure. Factors other than those listed above could also cause the
Company’s results to differ materially from expected results. Additionally,
the business and financial materials and any other statement or disclosure on
or made available through the Company’s websites or other websites referenced
herein shall not be incorporated by reference into this release.

                                                              
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(dollars in millions, except share and per share amounts)
                                                                      
                   Three Months Ended                  Nine Months Ended
                   September 30,                       September 30,
                   2012            2011              2012           2011       
                   (Unaudited)                         (Unaudited)
                                                                      
Net sales        $ 347.0          $ 337.2            $ 1,034.8      $ 1,021.6
Cost of sales      127.0           123.1             367.1          358.3      
Gross profit       220.0            214.1              667.7          663.3
Selling,
general and        179.9            169.3              540.5          526.0
administrative
expenses
Restructuring      21.0            -                 21.0           -          
charges
                                                                      
Operating          19.1            44.8              106.2          137.3      
income
                                                                      
Other
expenses, net:
Interest           19.9             20.4               59.5           64.7
expense
Interest
expense -
preferred          1.6              1.6                4.8            4.8
stock
dividends
Amortization
of debt            1.3              1.3                3.9            4.1
issuance costs
Loss on early
extinguishment     -                -                  -              11.3
of debt, net
Foreign
currency           (0.1       )     (0.9       )       2.0            2.4
(gains)
losses, net
Miscellaneous,     (0.1       )     0.2               0.2            1.2        
net
Other              22.6            22.6              70.4           88.5       
expenses, net
                                                                      
(Loss) income
from
continuing         (3.5       )     22.2               35.8           48.8
operations
before income
taxes
Provision for      11.5            22.1              31.6           32.4       
income taxes
(Loss) income
from
continuing         (15.0      )     0.1                4.2            16.4
operations,
net of taxes
Income from
discontinued       -               -                 0.4            0.6        
operations,
net of taxes
                                                                      
Net (loss)       $ (15.0      )   $ 0.1             $ 4.6          $ 17.0       
income
                                                                      
Other
comprehensive
(loss) income:
Currency
translation        (1.9       )     (8.9       )       0.3            (8.7       )
adjustment,
net of tax
Amortization
of pension         1.8             0.9               7.5            2.7        
related costs,
net of tax
Other
comprehensive      (0.1       )     (8.0       )       7.8            (6.0       )
(loss) income
                                                                      
Total
comprehensive    $ (15.1      )   $ (7.9       )     $ 12.4         $ 11.0       
(loss) income
                                                                      
Basic (loss)
income per
common share:
Continuing         (0.29      )     -                  0.08           0.31
operations
Discontinued       -               -                 0.01           0.01       
operations
Net (loss)       $ (0.29      )   $ -               $ 0.09         $ 0.32       
income
                                                                      
Diluted (loss)
income per
common share:
Continuing         (0.29      )     -                  0.08           0.31
operations
Discontinued       -               -                 0.01           0.01       
operations
Net (loss)       $ (0.29      )   $ -               $ 0.09         $ 0.32       
income
                                                                      
Weighted
average number
of common
shares
outstanding:
Basic              52,356,641      52,182,848        52,345,895     52,170,839 
Diluted            52,356,641      52,345,857        52,356,911     52,319,654 

                                                            
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in millions)
                                                            
                                              September 30,       December 31,
                                              2012                2011
ASSETS                                        (Unaudited)
Current assets:
Cash and cash equivalents                   $ 45.2              $ 101.7
Trade receivables, net                        195.7              212.0
Inventories                                   143.4               111.0
Deferred income taxes - current               49.8                49.8
Prepaid expenses and other                    56.1               44.2      
Total current assets                          490.2               518.7
Property, plant and equipment, net            99.9                98.9
Deferred income taxes - noncurrent            211.4               232.1
Goodwill                                      217.7               194.7
Other assets                                  164.4              112.7     
Total assets                                $ 1,183.6          $ 1,157.1   
                                                                  
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Short-term borrowings                       $ 8.3               $ 5.9
Current portion of long-term debt             8.0                 8.0
Accounts payable                              102.7               89.8
Accrued expenses and other                    266.5              231.7     
Total current liabilities                     385.5               335.4
Long-term debt                                1,160.8             1,107.0
Long-term debt - affiliates                   -                   58.4
Redeemable preferred stock                    48.3                48.4
Long-term pension and other                   216.6               245.5
post-retirement plan liabilities
Other long-term liabilities                   53.1                55.3
Commitments and contingencies
Total stockholders' deficiency                (680.7    )         (692.9    )
Total liabilities and stockholders'         $ 1,183.6          $ 1,157.1   
deficiency

                                                                 
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)

                                                          Nine Months Ended
                                                          September 30,
                                                          2012        2011
                                                          (Unaudited)
                                                                      
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                              $ 4.6       $ 17.0
Adjustments to reconcile net income to net cash
provided by
operating activities:
Income from discontinued operations, net of taxes         (0.4  )     (0.6   )
Depreciation and amortization                             48.4        45.3
Amortization of debt discount                             1.6         2.0
Stock compensation amortization                           0.3         1.7
Provision for deferred income taxes                       22.8        17.1
Loss on early extinguishment of debt, net                 -           11.3
Amortization of debt issuance costs                       3.9         4.1
Loss on sale of certain assets                            0.2         -
Pension and other post-retirement expense                 4.1         3.9
Change in assets and liabilities:
Decrease in trade receivables                             16.5        8.1
Increase in inventories                                   (32.6 )     (29.4  )
Increase in prepaid expenses and other current assets     (13.2 )     (4.0   )
Increase in accounts payable                              2.3         2.0
Increase in accrued expenses and other current            35.3        2.4
liabilities
Pension and other post-retirement plan contributions      (26.8 )     (28.7  )
Purchases of permanent displays                           (31.2 )     (28.2  )
Other, net                                                (17.9 )     (3.8   )
Net cash provided by operating activities                 17.9       20.2   
                                                                      
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                      (14.8 )     (9.6   )
Business acquisition                                      (66.2 )     (39.0  )
Proceeds from the sale of certain assets                  0.6        0.2    
Net cash used in investing activities                     (80.4 )     (48.4  )
                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in short-term borrowings and overdraft       12.5        10.0
Repayments under the 2010 Term Loan Facility              -           (794.0 )
Borrowings under the 2011 Term Loan Facility              -           796.0
Repayments under the 2011 Term Loan Facility              (6.0  )     (2.0   )
Payment of financing costs                                (0.1  )     (4.2   )
Other financing activities                                (0.7  )     (1.2   )
Net cash provided by financing activities                 5.7        4.6    
Effect of exchange rate changes on cash and cash          0.3        (3.2   )
equivalents
Net decrease in cash and cash equivalents                 (56.5 )     (26.8  )
Cash and cash equivalents at beginning of period          101.7      76.7   
Cash and cash equivalents at end of period              $ 45.2     $ 49.9   
                                                                      
Supplemental schedule of cash flow information:
Cash paid during the period for:
Interest                                                $ 57.5      $ 66.4
Preferred stock dividends                               $ 4.6       $ 4.6
Income taxes, net of refunds                            $ 13.8      $ 14.0
                                                                      
Supplemental schedule of non-cash investing and
financing activities:
Treasury stock received to satisfy minimum tax          $ 1.2       $ 1.4
withholding liabilities


REVLON, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(dollars in millions)
                                                             
                                                      Three Months Ended
                                                      September 30,
                                                      2012        2011
                                                      (Unaudited)
Reconciliation to net (loss) income:              
                                                                  
Net (loss) income                                 $   (15.0 )   $ 0.1
                                                                  
Interest expense                                      21.5        22.0
Amortization of debt issuance costs                   1.3         1.3
Foreign currency gains, net                           (0.1  )     (0.9  )
Miscellaneous, net                                    (0.1  )     0.2
Provision for income taxes                            11.5        22.1
Depreciation and amortization                         17.1       15.5  
                                                                  
Adjusted EBITDA                                   $   36.2     $ 60.3  
                                                                  
                                                                  
                                                      Nine Months Ended
                                                      September 30,
                                                      2012        2011
                                                      (Unaudited)
Reconciliation to net income:                     
                                                                  
Net income                                        $   4.6       $ 17.0
Income from discontinued operations, net of taxes     0.4        0.6   
Income from continuing operations, net of taxes       4.2         16.4
                                                                  
Interest expense                                      64.3        69.5
Amortization of debt issuance costs                   3.9         4.1
Loss on early extinguishment of debt, net             -           11.3
Foreign currency losses, net                          2.0         2.4
Miscellaneous, net                                    0.2         1.2
Provision for income taxes                            31.6        32.4
Depreciation and amortization                         48.7       47.0  
                                                                  
Adjusted EBITDA                                   $   154.9    $ 184.3 

                                                                    
REVLON, INC. AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(dollars in millions)
                                                                        
                                                            Three Months Ended
                                                            September 30,
                                                            2012        2011
                                                            (Unaudited)
Reconciliation to net cash provided by operating        
activities:
                                                                        
Net cash provided by operating activities                 $ 39.6      $ 16.9
                                                                        
Less capital expenditures                                   (5.9  )     (3.7 )
Plus proceeds from the sale of certain assets               0.5        0.1  
                                                                        
Free cash flow                                            $ 34.2     $ 13.3 
                                                                        
                                                                        
                                                            Nine Months Ended
                                                            September 30,
                                                            2012        2011
                                                            (Unaudited)
Reconciliation to net cash provided by operating        
activities:
                                                                        
Net cash provided by operating activities                 $ 17.9      $ 20.2
                                                                        
Less capital expenditures                                   (14.8 )     (9.6 )
Plus proceeds from the sale of certain assets               0.6        0.2  
                                                                        
Free cash flow                                            $ 3.7      $ 10.8 

Contact:

Investor Relations & Media:
Revlon, Inc.
Elise Garofalo, 212-527-5264
Senior Vice President, Treasurer and Investor Relations
 
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