Revlon CEO: '2011 was a year of many notable achievements'
NEW YORK — Beauty company Revlon posted a 4.5% sales gain in 2011, driven in part by its acquisition of Sinful Colors and higher sales of Revlon and Almay color cosmetics, and Revlon ColorSilk hair color.
“2011 was a year of many notable achievements. We delivered net sales growth of 4.5% and sustained highly competitive operating income margins. We delivered our fourth consecutive year of positive free cash flow and we improved our capital structure by refinancing and reducing our net debt,” stated Revlon president and CEO Alan T. Ennis.
“From a marketplace perspective, our emphasis on effective brand communication and strong in-store execution drove our positive performance, and we introduced a number of successful new, innovative, consumer-preferred products across our entire portfolio," Ennis continued. "We acquired the Sinful Colors brand and signed two of Hollywood’s most sought-after actresses, Emma Stone and Olivia Wilde, as global brand ambassadors for the Revlon brand.”
Net sales in 2011 totaled $1.38 billion, up 4.5% compared with the year-ago period. Excluding favorable foreign currency fluctuations of $17 million, net sales rose 3.3%. In the United States, sales for 2011 totaled $757.4 million, up 3.9%. The increase primarily was driven by the inclusion of net sales of Sinful Colors and higher net sales of Almay color cosmetics and Revlon ColorSilk hair color. The increase was offset partially by lower net sales of Revlon beauty tools and Revlon color cosmetics.
Net income for the year was $53.4 million, or $1.02 cents per diluted share, compared with net income of $327.3 million, or $6.26 per diluted share, in the year-ago period. Net income in 2011 included the non-cash tax benefit of $16.9 million, as well as charges of $11.2 million, before tax, associated with the 2011 refinancing of the company’s revolving credit and term loan facilities. Net income in 2010 included the non-cash tax benefit of $260.6 million, as well as charges of $9.7 million, before tax, associated with the March 2010 refinancing of the company’s revolving credit and term loan facilities.
For the fourth quarter, sales were $359.8 million, a decrease of 2.5% compared with last year. Excluding unfavorable foreign currency fluctuations, net sales essentially were unchanged versus last year. In the United States, net sales during the fourth quarter were $191.6 million, down 4.7% versus the year-ago period.
Net income during fourth quarter 2011 was $36.4 million, or 70 cents per diluted share, versus $296.2 million, or $5.66 per diluted share, in the year-ago period. Net income included a non-cash tax benefit of $16.9 million in fourth quarter 2011 and $260.6 million in fourth quarter 2010.