Revlon revises ’06 sales
This article was originally published in The Rose Sheet
Executive Summary
Revlon reports 2006 revenue outlook is now lower than expected, citing "less robust growth" from its Vital Radiance and Almay lines due to "stepped up competitive activity," firm states June 2. The company also reports "less effectiveness" from certain revenue driving actions. While "strong" growth is still expected this year, it will be "lower than previously planned," company notes. Given the revised outlook, the firm now expects adjusted EBITDA to be "at or below 2005 levels, with a significant impact on the second quarter of this year." Revlon reported adjusted EBITDA of $167 mil. in 2005. Additionally, Revlon will defer a $75 mil. equity offering to late 2006 or early 2007, and will defer consideration of the previously announced proposed refinancing of its current credit facility, the company notes. Revlon maintained it will "continue to invest to support and build its brands, while continuing to focus over the long term on improving its margin structure through the company's ongoing productivity initiatives"...