Revlon Reports Second Quarter 2013 Results

  Revlon Reports Second Quarter 2013 Results

Business Wire

NEW YORK -- July 31, 2013

Revlon, Inc. (NYSE: REV) today announced results for the second quarter ended
June 30, 2013.

Second quarter 2013 results compared to second quarter 2012:

  *Net sales of $350.1 million compared to $357.1 million, a decrease of
    2.0%. Excluding unfavorable foreign currency fluctuations of $6.4 million,
    second quarter 2013 net sales were essentially unchanged year-over-year.
  *Operating income of $59.1 million compared to $42.8 million. Operating
    income in 2013 included an $18.1 million insurance gain related to the
    2011 fire that destroyed the Company’s facility in Venezuela, a $4.5
    million charge for estimated costs to clean-up the Venezuela facility, and
    a $3.3 million charge associated with the restructuring and related
    actions announced in September 2012. Operating income in 2012 included a
    net charge of $6.7 million related to estimated costs of resolving
    litigation related to the Company’s 2009 exchange offer.
  *Operating income in the second quarter of 2013 was negatively impacted by
    $2.5 million due to foreign currency fluctuations.
  *Net income of $24.7 million, or $0.47 per diluted share, compared to $11.1
    million, or $0.21 per diluted share.
  *Adjusted EBITDA^a of $76.1 million compared to $58.7 million.
  *Both net income and Adjusted EBITDA in 2012 and 2013 were impacted by the
    items noted in operating income above.
  *Net cash provided by operating activities of $28.2 million compared to a
    use of $1.3 million; free cash flow^b was positive $21.6 million compared
    to negative $6.6 million.

Commenting on today’s announcement, Revlon President and Chief Executive
Officer, Alan T. Ennis, said, “Our net sales in the second quarter of 2013
were essentially unchanged year-over-year as we benefited from the inclusion
of our Pure Ice acquisition offset by continued softness in our Almay brand
and the negative impact of business conditions in Venezuela. We continue to
support our brands at appropriate levels and are pleased with a number of our
new product launches in 2013. As always, we remain focused on our strategic
goal of driving profitable growth.”

                         Second Quarter 2013 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 second quarter of 2013 were $350.1 million, a decrease of
$7.0 million, or 2.0%, compared to $357.1 million in the same period last
year. Excluding unfavorable foreign currency fluctuations of $6.4 million, net
sales were essentially unchanged year-over-year. Lower net sales in Venezuela
and lower net sales of Almay color cosmetics were offset by higher net sales
of SinfulColors color cosmetics and the inclusion of the net sales of Pure
Ice. The decrease in net sales of Almay color cosmetics was driven primarily
by a reallocation of brand support in the United States from advertising to
promotional allowances, which are a deduction in arriving at net sales.

In the United States, net sales in the second quarter of 2013 were $203.9
million, essentially unchanged year-over-year. Higher net sales of
SinfulColors color cosmetics and the inclusion of the net sales of Pure Ice
were offset by lower net sales of Revlon and Almay color cosmetics.

In Asia Pacific, net sales in the second quarter of 2013 were $54.3 million, a
decrease of $1.5 million, or 2.7%, compared to $55.8 million in the same
period last year. Excluding the unfavorable impact of foreign currency
fluctuations, net sales were essentially unchanged year-over-year. Higher net
sales of Revlon color cosmetics in Japan, SinfulColors color cosmetics in
Australia, and Revlon ColorSilk hair color in certain distributor territories
were offset by lower net sales of Revlon color cosmetics in China and certain
distributor territories as well as lower net sales of other beauty care
products in Hong Kong.

In Europe, Middle East and Africa, net sales in the second quarter of 2013
were $42.7 million, a decrease of $1.7 million, or 3.8%, compared to $44.4
million in the same period last year. Excluding the unfavorable impact of
foreign currency fluctuations, net sales increased $1.6 million, or 3.6%,
primarily due to higher net sales of fragrances and SinfulColors color
cosmetics in the U.K. and Italy, partially offset by lower net sales of other
beauty care products in France.

In Latin America and Canada, net sales in the second quarter of 2013 were
$49.2 million, a decrease of $3.8 million, or 7.2%, compared to $53.0 million
in the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales decreased $2.7 million, or 5.1%. The decline
in net sales was driven by the negative impact of business conditions in
Venezuela, including Venezuela’s currency restrictions, which decreased net
sales in the region by $6.3 million. Excluding Venezuela, net sales in the
region increased primarily due to higher net sales of Revlon color cosmetics
in Argentina, Mexico and certain distributor territories, higher net sales of
Revlon ColorSilk hair color across the region and the introduction of Pure Ice
in Canada. These increases were partially offset by lower net sales of Almay
color cosmetics in Canada. Net sales in Argentina benefited from higher
selling prices resulting from market conditions and inflation.

Operating income in the second quarter of 2013 was $59.1 million, compared to
$42.8 million in the same period last year. Adjusted EBITDA in the second
quarter of 2013 was $76.1 million, compared to $58.7 million in the same
period last year. Operating income and Adjusted EBITDA in the second quarter
of 2013 included an $18.1 million insurance gain in SG&A related to the 2011
fire in Venezuela, a $4.5 million charge in SG&A for estimated costs to
clean-up the Venezuela facility, and a $3.3 million charge associated with the
restructuring and related actions announced in September 2012. Operating
income in the second quarter of 2013 was negatively impacted by $2.5 million
due to foreign currency fluctuations. Operating income and Adjusted EBITDA in
the second quarter of 2012 included a net charge of $6.7 million in SG&A with
respect to estimated costs of resolving litigation related to the Company’s
2009 exchange offer.

Operating income and Adjusted EBITDA for the second quarter of 2013 also
included $1.2 million of higher incentive compensation expense related to a
modification to the structure of the Company’s long-term incentive plan to
better align the plan with the Company’s long-term performance. While the new
structure does not change the amount of the employees’ potential annual
incentive award, the transition is expected to result in higher expense in
2013 and 2014 as compared to 2012 by approximately $5 million and $3 million,
respectively. The Company expects no additional expense related to the
transition to the new structure after 2014.

Interest expense, including preferred stock dividends, decreased $3.8 million
to $17.4 million in the second quarter of 2013, compared to the same period
last year, primarily due to lower interest rates as a result of the senior
notes refinancing and bank term loan amendment in February 2013.

The provision for income taxes was $17.0 million, compared to $9.1 million in
the same period last year. The increase of $7.9 million was primarily
attributable to the favorable resolution of tax matters in a foreign
jurisdiction in the second quarter of 2012 that did not recur in the second
quarter of 2013, as well as increased pre-tax income in the second quarter of
2013,partially offset by certain favorable discrete items that benefited the
second quarter of 2013. Cash paid for income taxes, net of refunds, in the
second quarter of 2013 was $5.3 million, compared to $7.5 million in the same
period last year.

Net income in the second quarter of 2013 was $24.7 million, or $0.47 per
diluted share, compared to net income of $11.1 million, or $0.21 per diluted
share in the same period last year. Net income in the second quarter of 2013
included the following: an $18.1 million insurance gain related to the 2011
fire in Venezuela; a $4.5 million charge for estimated costs to clean-up the
Venezuela facility; and a $3.3 million charge associated with the
restructuring and related actions announced in September 2012. Net income in
the second quarter of 2012 included a net charge of $6.7 million, before and
after tax, with respect to estimated costs of resolving litigation related to
the Company’s 2009 exchange offer.

Net cash provided by operating activities in the second quarter of 2013 was
$28.2 million, compared to a use of $1.3 million in the same period last year.
Free cash flow was positive $21.6 million, compared to negative $6.6 million
in the same period last year. The second quarter of 2013, as compared to the
same period last year, benefited from lower interest payments primarily due to
the company’s senior notes refinancing in the first quarter of 2013, lower
pension contributions and lower permanent display purchases, partially offset
by restructuring payments related to the actions announced in September 2012.

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.

                              Six Months Results

Net sales in the first six months of 2013 were $682.0 million, compared to net
sales of $687.8 million in the first six months of 2012. Excluding unfavorable
foreign currency fluctuations of $12.3 million, net sales increased $6.5
million, or approximately 1%, as compared to the first six months of 2012.

In the United States, net sales in the first six months of 2013 were $396.0
million, an increase of $7.4 million, or 1.9%, compared to net sales of $388.6
million in the first six months of 2012.

In Asia Pacific, net sales in the first six months of 2013 were $107.9
million, a decrease of $4.0 million, or 3.6%, compared to $111.9 million in
the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales were essentially unchanged year-over-year.

In Europe, Middle East and Africa, net sales in the first six months of 2013
were $83.4 million, a decrease of $6.8 million, or 7.5%, compared to $90.2
million in the same period last year. Excluding the unfavorable impact of
foreign currency fluctuations, net sales were essentially unchanged
year-over-year.

In Latin America and Canada, net sales in the first six months of 2013 were
$94.7 million, a decrease of $2.4 million, or 2.5%, compared to $97.1 million
in the same period last year. Excluding the unfavorable impact of foreign
currency fluctuations, net sales were essentially unchanged year-over-year.

Operating income was $106.4 million in the first six months of 2013, compared
to $87.1 million in the first six months of 2012. Adjusted EBITDA was $140.4
million in the first six months of 2013, compared to $118.7 million in the
same period last year. Operating income and Adjusted EBITDA in the first six
months of 2013 included the following: a $26.4 million insurance gain related
to the 2011 fire in Venezuela; a $4.5 million charge for estimated costs to
clean-up the Venezuela facility; and a $3.6 million charge associated with the
restructuring and related actions announced in September 2012. Operating
income in the first six months of 2013 was negatively impacted by $4.6 million
due to foreign currency fluctuations. Operating income and Adjusted EBITDA in
the first six months of 2012 included a net charge of $6.7 million with
respect to estimated costs of resolving litigation related to the Company’s
2009 exchange offer.

Operating income and Adjusted EBITDA for the first six months of 2013 also
included $2.3 million of higher incentive compensation expense related to a
modification to the structure of the Company’s long-term incentive plan to
better align the plan with the Company’s long-term performance. While the new
structure does not change the amount of the employees’ potential annual
incentive award, the transition is expected to result in higher expense in
2013 and 2014 as compared to 2012 by approximately $5 million and $3 million,
respectively. The Company expects no additional expense related to the
transition to the new structure after 2014.

Interest expense, including preferred stock dividends, for the first six
months of 2013 decreased $5.0 million to $37.8 million in the first six months
of 2013, compared to the same period last year.

The provision for income taxes was $18.2 million, compared to $20.1 million in
the same period last year. Cash paid for income taxes, net of refunds, for the
first six months of 2013 was $8.0 million, compared to $10.9 million in the
same period last year.

Net income in the first six months of 2013 was $17.8 million, or $0.34 per
diluted share, compared to $19.6 million, or $0.37 per diluted share in the
first six months of 2012. Net income in the first six months of 2013 included
the following: (a) a $27.9 million ($16.9 million after tax) charge related to
the early extinguishment of debt as a result of the Company’s senior notes
refinancing and the bank term loan amendment; (b) a $26.4 million insurance
gain related to the 2011 fire in Venezuela; (c) a $4.5 million charge for
estimated costs to clean-up the Venezuela facility; and (d) a $3.6 million
charge associated with the restructuring and related actions announced in
September 2012. Net income in the first six months of 2012 included a net
charge of $6.7 million, before and after tax, with respect to estimated costs
of resolving litigation related to the Company’s 2009 exchange offer.

Net cash provided by operating activities in the first six months of 2013 was
$11.3 million, compared to net cash used in operating activities of $21.7
million in the same period last year. Free cash flow in the first six months
of 2013 was negative $0.4 million, compared to negative free cash flow of
$30.5 million in the same period last year.

                               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) pursue growth opportunities; and (v) improve our financial
performance.

               Second Quarter 2013 Results and Conference Call

The Company will host a conference call with members of the investment
community on July 31, 2013 at 9:30 A.M. EDT to discuss Second Quarter 2013
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, Pure Ice®
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;

(iii) facilitate management's external comparisons of the results of its
overall business to the historical operating performance of other companies
that may have different capital structures and debt levels;

(iv) review and assess the operating performance of the Company's 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/(used in) operating activities, its most directly comparable GAAP
measure, in the accompanying financial tables. Free cash flow is defined as
net cash provided by/(used in) 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. 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 estimates, beliefs, expectations, focus and/or plans: (i) the
Company’s estimated costs of $4.5 million to clean-up the Venezuela facility
(which was destroyed by fire in 2011); (ii) the Company’s belief that while
the new structure of its long-term incentive plan does not change the amount
of the employees’ potential annual incentive award, the transition is expected
to result in higher expense in 2013 and 2014 as compared to 2012 by
approximately $5 million and $3 million, respectively, and that the Company
expects no additional expense related to the transition to the new structure
after 2014; (iii) the Company’s expectation to continue to support its brands
at appropriate levels; (iv) the Company’s expectation to remain focused on its
strategic goal of driving profitable growth; and (v) the Company’s plans to
continue to execute its business strategy, which is to: (a) build our strong
brands, (b) develop our organizational capability, (c) drive our company to
act globally, (d) pursue growth opportunities and (e) improve our financial
performance. 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 2012 Annual Report on Form
10-K that we filed with the SEC in February 2013 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 2013 (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) unanticipated costs incurred in connection with
activities related to the destroyed facility in Venezuela; (ii) unanticipated
consequences from the Company’s new long-term incentive plan, such as higher
than anticipated expenses or changes in the periods when such expenses would
be recognized; (iii) unanticipated changes in the Company’s level of brand
support for its brands; (iv) difficulties, delays, unanticipated costs or our
inability to drive profitable growth, including, without limitation, less than
expected profitable net sales growth, such as due to the reasons set forth in
clause (v)(a) below; and (v) 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 foreign currency exchange 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) difficulties, delays or unanticipated costs in connection with plans to
pursue growth opportunities, such as due to those reasons set forth in clause
(v)(a) above and/or difficulties, delays or unanticipated costs in
consummating, or the Company’s inability to consummate, transactions to
acquire new brands and/or (e) difficulties, delays, unanticipated costs or our
inability to improve our financial performance. 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 INCOME AND COMPREHENSIVE INCOME
(dollars in millions, except share and per share amounts)
                                                                                  
                                                                                  
                                                                                  
                     Three Months Ended                      Six Months Ended
                     June 30,                                June 30,
                     2013                2012               2013                2012
                     (Unaudited)                             (Unaudited)
                                                                                  
Net sales            $ 350.1             $ 357.1           $ 682.0             $ 687.8
Cost of sales         124.8              124.4             241.7              240.1
Gross profit           225.3                232.7              440.3                447.7
Selling,
general and            163.1                189.9              330.6                360.6
administrative
expenses
Restructuring
charges and           3.1                -                 3.3                -
other, net
                                                                                  
Operating             59.1               42.8              106.4              87.1
income
                                                                                  
Other
expenses, net:
Interest               15.8                 19.6               34.6                 39.6
expense
Interest
expense -
preferred              1.6                  1.6                3.2                  3.2
stock
dividends
Amortization
of debt                1.2                  1.3                2.5                  2.6
issuance costs
Loss on early
extinguishment         -                    -                  27.9                 -
of debt
Foreign
currency               (0.8       )         0.4                2.5                  2.1
(gains)
losses, net
Miscellaneous,        (0.1       )        0.1               -                  0.3
net
Other                 17.7               23.0              70.7               47.8
expenses, net
                                                                                  
Income from
continuing
operations             41.4                 19.8               35.7                 39.3
before income
taxes
Provision for         17.0               9.1               18.2               20.1
income taxes
Income from
continuing             24.4                 10.7               17.5                 19.2
operations,
net of taxes
Income from
discontinued          0.3                0.4               0.3                0.4
operations,
net of taxes
                                                                                  
Net income           $ 24.7             $ 11.1            $ 17.8             $ 19.6
                                                                                  
Other
comprehensive
(loss) income:
Currency
translation            (3.9       )         1.0                (4.7       )         2.2
adjustment,
net of tax
Amortization
of pension            1.9                1.9               3.8                5.7
related costs,
net of tax
Other
comprehensive         (2.0       )        2.9               (0.9       )        7.9
(loss) income
                                                                                  
Total
comprehensive        $ 22.7             $ 14.0            $ 16.9             $ 27.5
income
                                                                                  
Basic earnings
per common
share:
Continuing             0.46                 0.20               0.33                 0.36
operations
Discontinued          0.01               0.01              0.01               0.01
operations
Net income           $ 0.47             $ 0.21            $ 0.34             $ 0.37
                                                                                  
Diluted
earnings per
common share:
Continuing             0.46                 0.20               0.33                 0.36
operations
Discontinued          0.01               0.01              0.01               0.01
operations
Net income           $ 0.47            $  0.21           $  0.34            $  0.37
                                                                                  
Weighted
average number
of common
shares
outstanding:
Basic                 52,356,798         52,349,583        52,356,798         52,340,463
Diluted               52,356,798         52,357,163        52,356,798         52,357,004
                                                                                    

                                                           
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in millions)
                                                                  
                                                June 30,          December 31,
                                                2013              2012
                                                (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                       $ 141.3           $  116.3
Trade receivables, net                            185.5              216.0
Inventories                                       133.2              114.7
Deferred income taxes - current                   49.7               48.5
Prepaid expenses and other                       68.2             45.7    
Total current assets                              577.9              541.2
Property, plant and equipment, net                100.9              99.5
Deferred income taxes - noncurrent                203.9              215.2
Goodwill                                          217.8              217.8
Intangible assets, net                            66.5               68.8
Other assets                                     102.7            94.1    
Total assets                                    $ 1,269.7        $  1,236.6 
                                                                  
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Short-term borrowings                           $ 5.2             $  5.0
Current portion of long-term debt                 -                  21.5
Accounts payable                                  108.2              101.9
Accrued expenses and other                        235.4              276.3
Redeemable preferred stock                       48.5             48.4    
Total current liabilities                         397.3              453.1
Long-term debt                                    1,227.9            1,145.8
Long-term pension and other                       220.7              233.7
post-retirement plan liabilities
Other long-term liabilities                       56.2               53.3
Commitments and contingencies
Total stockholders' deficiency                   (632.4  )         (649.3  )
Total liabilities and stockholders'             $ 1,269.7        $  1,236.6 
deficiency
                                                                  

                                                              
REVLON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
                                                    Six Months Ended
                                                    June 30,
                                                    2013             2012
                                                    (Unaudited)
                                                                     
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                          $ 17.8           $ 19.6
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Income from discontinued operations, net of           (0.3   )         (0.4  )
taxes
Depreciation and amortization                         34.0             31.3
Amortization of debt discount                         0.8              1.0
Stock compensation amortization                       -                0.3
Provision for deferred income taxes                   10.4             15.2
Loss on early extinguishment of debt                  27.9             -
Amortization of debt issuance costs                   2.5              2.6
(Gain) loss on sale of certain assets                 (0.4   )         0.1
Pension and other post-retirement (income)            (0.1   )         2.8
costs
Change in assets and liabilities:
Decrease in trade receivables                         23.9             6.9
Increase in inventories                               (22.9  )         (22.8 )
Increase in prepaid expenses and other                (24.3  )         (23.3 )
current assets
Increase (decrease) in accounts payable               6.1              (4.5  )
(Decrease) increase in accrued expenses and           (29.2  )         11.6
other current liabilities
Pension and other post-retirement plan                (7.6   )         (19.4 )
contributions
Purchases of permanent displays                       (23.0  )         (24.3 )
Other, net                                           (4.3   )        (18.4 )
Net cash provided by (used in) operating             11.3           (21.7 )
activities
                                                                     
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                  (12.1  )         (8.9  )
Proceeds from the sale of certain assets             0.4            0.1   
Net cash used in investing activities                (11.7  )        (8.8  )
                                                                     
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in short-term borrowings and             2.5              12.8
overdraft
Proceeds from the issuance of 5 3/4% Senior           500.0            -
Notes
Repayment of the 9 3/4% Senior Secured Notes          (330.0 )         -
Repayments under the 2011 Term Loan Facility          (113.0 )         (4.0  )
Payment of financing costs                            (28.7  )         (0.1  )
Other financing activities                           (1.1   )        (0.2  )
Net cash provided by financing activities            29.7           8.5   
Effect of exchange rate changes on cash and          (4.3   )        0.1   
cash equivalents
Net increase (decrease) in cash and cash              25.0             (21.9 )
equivalents
Cash and cash equivalents at beginning of            116.3          101.7 
period
Cash and cash equivalents at end of period          $ 141.3         $ 79.8  
                                                                     
Supplemental schedule of cash flow
information:
Cash paid during the period for:
Interest                                            $ 34.9           $ 45.8
Preferred stock dividends                           $ 3.1            $ 3.1
Income taxes, net of refunds                        $ 8.0            $ 10.9
                                                                     
Supplemental schedule of non-cash investing
and financing activities:
Treasury stock received to satisfy minimum          $ -              $ 1.1
tax withholding liabilities
                                                                     

                                                            
REVLON, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(dollars in millions)
                                                                   
                                                                   
                                                                   
                                                 Three Months Ended
                                                 June 30,
                                                 2013              2012
                                                 (Unaudited)
Reconciliation to net income:
                                                                   
Net income                                      $  24.7         $   11.1
Income from discontinued operations, net           0.3             0.4
of taxes
Income from continuing operations, net of            24.4                10.7
taxes
                                                                   
Interest expense                                     17.4                21.2
Amortization of debt issuance costs                  1.2                 1.3
Foreign currency (gains) losses, net                 (0.8  )             0.4
Miscellaneous, net                                   (0.1  )             0.1
Provision for income taxes                           17.0                9.1
Depreciation and amortization                      17.0            15.9
                                                                   
Adjusted EBITDA                                 $  76.1        $   58.7
                                                                   
                                                                   
                                                 Six Months Ended
                                                 June 30,
                                                 2013              2012
                                                 (Unaudited)
Reconciliation to net income:
                                                                   
Net income                                      $   17.8         $     19.6
Income from discontinued operations, net           0.3             0.4
of taxes
Income from continuing operations, net of            17.5                19.2
taxes
                                                                   
Interest expense                                     37.8                42.8
Amortization of debt issuance costs                  2.5                 2.6
Loss on early extinguishment of debt                 27.9                -
Foreign currency losses, net                         2.5                 2.1
Miscellaneous, net                                   -                   0.3
Provision for income taxes                           18.2                20.1
Depreciation and amortization                      34.0            31.6
                                                                   
Adjusted EBITDA                                 $  140.4       $   118.7
                                                                   

                                                              
REVLON, INC. AND SUBSIDIARIES
FREE CASH FLOW RECONCILIATION
(dollars in millions)
                                                                     
                                                                     
                                                                     
                                                     Three Months Ended
                                                     June 30,
                                                     2013            2012
                                                     (Unaudited)
Reconciliation to net cash provided by (used
in) operating activities:
                                                                     
Net cash provided by (used in) operating             $ 28.2          $ (1.3  )
activities
                                                                     
Less capital expenditures                              (6.6  )         (5.4  )
Plus proceeds from the sale of certain assets         -             0.1   
                                                                     
Free cash flow                                       $ 21.6         $ (6.6  )
                                                                     
                                                                     
                                                     Six Months Ended
                                                     June 30,
                                                     2013            2012
                                                     (Unaudited)
Reconciliation to net cash provided by (used
in) operating activities:
                                                                     
Net cash provided by (used in) operating             $ 11.3          $ (21.7 )
activities
                                                                     
Less capital expenditures                              (12.1 )         (8.9  )
Plus proceeds from the sale of certain assets         0.4           0.1   
                                                                     
Free cash flow                                       $ (0.4  )       $ (30.5 )
                                                                     

Contact:

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