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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
(Mark One)
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| X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: September 30, 2004
OR
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| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 33-59650
REVLON CONSUMER PRODUCTS CORPORATION
(Exact name of registrant as specified in its charter)
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| Delaware | |
13-3662953 | ||||
| (State or other jurisdiction
of incorporation or organization) |
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(I.R.S.
Employer Identification No.) |
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| 237 Park Avenue, New York, New York | |
10017 | ||||
| (Address of principal executive offices) | |
(Zip Code) | ||||
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Registrant's telephone number, including area code: 212-527-4000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No __
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes __ No X
The number of shares outstanding of the registrant's common stock was 5,260 shares as of September 30, 2004, all of which were held by an affiliate, Revlon, Inc., an indirect majority-owned subsidiary of Mafco Holdings Inc.
Total Pages – 41
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PART I FINANCIAL INFORMATION
Item 1. Financial Statements
REVLON
CONSUMER PRODUCTS CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(dollars in millions, except per share
data)
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September
30, 2004 |
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December
31, 2003 |
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(Unaudited) | |
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| ASSETS | |
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| Current assets: | |
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| Cash and cash equivalents | |
$ | 83.8 | |
$ | 56.5 | ||||
| Trade receivables, less allowances of $18.5 and $19.4 as of September 30, 2004 and December 31, 2003, respectively | |
171.8 | |
182.5 | ||||||
| Inventories | |
159.8 | |
142.7 | ||||||
| Prepaid expenses and other | |
68.8 | |
46.6 | ||||||
| Total current assets | |
484.2 | |
428.3 | ||||||
| Property, plant and equipment, net | |
120.8 | |
132.1 | ||||||
| Other assets | |
144.1 | |
144.2 | ||||||
| Goodwill, net | |
186.1 | |
186.1 | ||||||
| Total assets | |
$ | 935.2 | |
$ | 890.7 | ||||
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| LIABILITIES AND STOCKHOLDER'S DEFICIENCY | |
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| Current liabilities: | |
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| Short-term borrowings – third parties | |
$ | 32.5 | |
$ | 28.0 | ||||
| Accounts payable | |
80.4 | |
97.4 | ||||||
| Accrued expenses and other | |
299.1 | |
322.0 | ||||||
| Total current liabilities | |
412.0 | |
447.4 | ||||||
| Long-term debt – third parties | |
1,318.7 | |
1,723.3 | ||||||
| Long-term debt – affiliates | |
— | |
146.2 | ||||||
| Other long-term liabilities | |
290.1 | |
301.0 | ||||||
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| Stockholder's deficiency: | |
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| Preferred stock, par value $1.00 per share; 1,000 shares authorized, 546 shares of Series A Preferred Stock issued and outstanding | |
54.6 | |
54.6 | ||||||
| Common Stock, par value $1.00 per share; 10,000 shares as of September 30, 2004 and 1,000 shares as of December 31, 2003 authorized, respectively, and 5,260 shares as of September 30, 2004 and 1,000 shares as of December 31, 2003 issued and outstanding, respectively | |
— | |
— | ||||||
| Additional paid-in-capital (capital deficiency) | |
690.2 | |
(152.3 | ) | |||||
| Accumulated deficit | |
(1,692.3 | ) | |
(1,503.3 | ) | ||||
| Deferred compensation | |
(14.3 | ) | |
(4.2 | ) | ||||
| Accumulated other comprehensive loss | |
(123.8 | ) | |
(122.0 | ) | ||||
| Total stockholder's deficiency | |
(1,085.6 | ) | |
(1,727.2 | ) | ||||
| Total liabilities and stockholder's deficiency | |
$ | 935.2 | |
$ | 890.7 | ||||
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See Accompanying Notes to Unaudited Consolidated Financial Statements.
2
REVLON CONSUMER PRODUCTS CORPORATION AND
SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in
millions)
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Three
Months Ended September 30, |
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Nine Months
Ended September 30, |
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2004 | |
2003 | |
2004 | |
2003 | |
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| Net sales | |
$ | 294.4 | |
$ | 316.5 | |
$ | 918.9 | |
$ | 930.8 | |
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| Cost of sales | |
117.9 | |
127.1 | |
353.4 | |
363.8 | |
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| Gross profit | |
176.5 | |
189.4 | |
565.5 | |
567.0 | |
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| Selling, general and administrative expenses | |
177.6 | |
196.6 | |
548.3 | |
580.4 | |
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| Restructuring costs | |
0.6 | |
0.4 | |
— | |
0.9 | |
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| Operating (loss) income | |
(1.7 | ) | |
(7.6 | ) | |
17.2 | |
(14.3 | ) | |
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| Other expenses (income): | |
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| Interest expense | |
28.8 | |
44.3 | |
102.4 | |
128.5 | |
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| Interest income | |
(0.8 | ) | |
(0.5 | ) | |
(2.1 | ) | |
(1.9 | ) | |
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| Amortization of debt issuance costs | |
1.7 | |
2.2 | |
6.8 | |
6.6 | |
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| Foreign currency (gains) losses, net | |
(1.2 | ) | |
(0.8 | ) | |
0.4 | |
(3.2 | ) | |
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| Loss on early extinguishment of debt | |
58.8 | |
— | |
91.4 | |
— | |
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| Miscellaneous, net | |
(0.1 | ) | |
(0.3 | ) | |
2.4 | |
0.1 | |
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| Other expenses, net | |
87.2 | |
44.9 | |
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