Revlon announces 4Q profit

2/12/2009

NEW YORK Revlon announced on Thursday that for 2008 it recorded net income of $57.9 million as it reduced debt by $110 million.

"During the year, net sales growth in Revlon brand color cosmetics, which was driven by strong new product introductions and a more focused allocation of advertising and promotional expenditures, along with continued rigorous cost control, resulted in significantly improved financial performance," stated David Kennedy, president and CEO. "Specifically, and as we forecasted, the company improved operating margins, profitability and generated positive free cash flow and net income. In addition, during 2008, we reduced debt by $110 million, improving our capital structure." 

Net income for 2008 totaled $57.9 million, or $1.13 per share, compared with a net loss of $16.1 million, or 32 cents per share, in the year-ago period. Net income in 2008 includes discontinued operations of $44.8 million, or 87 cents per share, of which $45.2 million, or 88 cents per share, relates to the gain on sale of discontinued operations. 

Sales for the year totaled $1.35 billion compared with $1.37 billion last year. Higher net sales of color cosmetics were offset by lower net sales of beauty care and unfavorable foreign currency fluctuations, the company stated. Excluding foreign currency fluctuations, net sales of Revlon brand color cosmetics rose 9% driven largely by new product introductions. 

For the fourth quarter, net sales were $334.2 million, a decrease of 10.5% compared with $373.3 million in the year-ago period. Foreign currency fluctuations negatively impacted net sales by $23.3 million. 

Net income during the fourth quarter totaled $11.3 million, or 22 cents per share, compared with net income of $40.8 million, or 80 cents per share. Income from continuing operations during the quarter was $11.2 million compared with $40 million last year. 

"While we expect economic conditions and the retail sales environment to remain uncertain around the world, we believe we are better positioned than in many years to maximize our business results in light of these conditions," noted Kennedy. "Specifically, we have strong global brands, a highly capable organization, a sustainable, reduced cost structure and an improved capital structure." 

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