Results for the three months ended June 30, 2022 were reported by Revlon, Inc. (NYSE: REV) in its Form 10-Q. The company voluntarily filed for Chapter 11 bankruptcy protection in the third quarter and received $575 million in debtor-in-possession financing to facilitate a financial reorganization.
The company has decided not to release its quarterly results this time around due to the ongoing Chapter 11 proceedings. Lower general and administrative expenses of $26.4 million and lower restructuring costs of $5.3 million more than offset lower net sales of $36.8 million, gross margin loss of -370 basis points and impairment charges of $24.3 million. Adjusted EBITDA(a) for the second quarter of 2022 was $51.8 million, compared to $63.9 million in the same quarter last year.
As noted, the Company’s net loss in the second quarter of 2022 was $275.8 million, compared to a net loss of $67.1 million in the same quarter a year earlier. The increase in net loss was caused by charges of $158.3 million related to the company’s Chapter 11 filing, lower operating profit and higher foreign exchange losses of $15.9 million. dollars, which were partially offset by the reduction in tax provisions of $7.7 million and interest expense of $4.4 million compared to the prior year period.
Net cash outflow from operating operations in the second quarter of 2022 was $44.5 million, up from the use of $39.3 million in the same period. A larger net loss as reported, partially offset by favorable changes in working capital, was the main driver of the increase in cash spent on operating operations.
On May 4, 2022, earnings per share for the first quarter came in at ($1.14) for Revlon (NYSE:REV), $0.51 better than consensus expectation of ($1.65 ) analysts. However, quarterly revenue of $479.6 million was lower than the $480.6 million forecast.
Revlon, Inc. and its subsidiaries are a global leader in the cosmetics and personal care industries. The company’s Revlon division is responsible for selling the Revlon line of color cosmetics and beauty equipment, as well as the Revlon ColorSilk and Revlon Professional hair dye lines.
The Portfolio division sells Mitchum brand antiperspirant deodorants, nail polish, gel nail polish and CND brand nail enhancement products, Cutex brand nail care products and hair care products from the Creme of Nature and Llongueras brands, as well as colored cosmetics from the Almay and SinfulColors labels.
In addition, the Fragrance division is responsible for the creation, promotion and distribution of home fragrances and those produced under license and third-party premium fragrance brands. The company markets its products through a sales force, representatives, independent distributors, large and large retailers, e-commerce sites, department stores and specialty cosmetics boutiques.
Revlon, Inc.’s New York headquarters date back to 1932. This Voluntary Chapter 11 Reorganization Petition was filed by Revlon, Inc. and its affiliates in the United States Bankruptcy Court for the Southern District from New York on June 15. 2022.