NEW YORK – Revlon Inc.'s (REV) third-quarter loss widened amid a 7 percent drop in sales as the cosmetics giant completed an ambitious refinancing effort.
The New York-based maker of such brands as Almay (search) skincare lotion and Flex shampoo said Wednesday it lost $91.6 million, or 25 cents per share, in the three months ended Sept. 30. That compared with a loss of $54.7 million, or 78 cents per share, in the year-ago period.
Analysts polled by Thomson First Call expected a loss of 8 cents.
Revlon shares were down 9 cents, or nearly 4 percent, at $2.28 on the New York Stock Exchange (search) — near the low end of their 52-week trading range of $2.03 to $3.93.
Sales declined $294.4 million, compared with $316.5 million in the year-ago period. In North America, net sales for the quarter dropped approximately 10 percent to $192 million, compared with $212 million in the year-ago period, largely reflecting higher costs for returns, allowances and discounts combined.
In international, net sales declined approximately 2 percent to $102 million, compared with $105 million in the year-ago period. Excluding the favorable impact of foreign currency translation, international net sales were down 8 percent compared with a year ago.
During the quarter, Revlon said it also successful completed a debt refinancing that included entering into new credit facilities and redeeming all of its 12 percent senior secured notes. As a result of the refinancing, the company extended to 2010 at the earliest the maturities on much of its debt that would have otherwise matured in 2005. The refinancing also further reduced the company's annual interest expense.
For the nine months ended Sept. 30, the company lost $188.7 million, or 68 cents per share. That compared with a loss of $141.2 million, or $2.36 per share, in the year-ago period.
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