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Posted on Jul 15, 2024

Look at Revlon's recent annual reports in 2020 vs. 2019. In item 8 of the annual report 10-k, you will find the information of the

Look at Revlon's recent annual reports in 2020 vs. 2019. In item 8 of the annual report 10-k, you will find the information of the balance sheet and income statement. Perform and illustrate the horizontal analysis and vertical analysis for both statements, document with your analysis. image text in transcribed

REVLON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY (dollars in millions, except share and per share amounts) Common Stock Additional Pald-In Capital $1.071,9 $0.5 Balance, January 1, 2020 ... - - - - , Treasury stock acquired, at cost Stock-based compensation amortization Net loss................. Other comprehensive doss) income, netto) Balance, December 31, 2020 Accumulated Other Total Treasury Accumulated Comprehensive Stockholders Stock Deficit (Loss) Income Deficiency $(33.5) S(2,012.7) $(247.4) $(1.221.2) (1.7) (1.7) 10.4 (619.0) (619.0) (30.5) (30.5 S(35.2) S(2.631.7) S(277.9) S41.862.0) 10.4 $0. $1.082.3 Common Stock Additional Paid-In Capital $1.063.8 $0.5 Accumulated Other Total Treasury Accumulated Comprehensive Stockholders' Stock Deficit (Loss) Income Deficiency $(31.9) S(1.855.0) $(234.2) S(1,056.8) (1.6) (1.6) 8.1 (157.7) (157.7) (13.2) (13.2) $(33.5) S(2,012.7) $(247.4) $(1,221.2) Balance, January 1, 2019 Treasury stock acquired, ut cost) Stock-based compensation amortization Net loss Other comprehensive (loss) income, net.. Balance, December 31, 2019 8.1 $0.5 $1,071.9 ca Pursuant to the share withholding provisions of the Fourth Amended and Restated Revlon, Inc. Stock Plan (as amended, the "Stock Plan"), the Company withheld an aggregate of 148,620 and 92,260 shares of Revlon Class A Common Stock during the years ended December 31, 2020 and 2019, respectively, to satisfy certain minimum statutory tax withholding requirements related to the vesting of restricted shares and restricted stock units (RSUS") for certain senior executives and employees. These withheld shares were recorded as treasury stock using the cost method, al u weighted average price per share of $10.98 and $17.75 during the years ended December 31, 2020 and 2019, respectively, based on the closing price of Revlon Class A Common Stock as reported on the New York Stock Exchange (the "NYSE) consolidated tape on each respective vesting date, for a total of approximately $1.7 million and $1.6 million during the years ended December 31, 2020 and 2019. respectively. See Note 12. "Stock Compensation Plan," for details regarding restricted stock awards and RSUS under the Stock Plan. See Note 14, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the years ended December 31, 2020 and 2019, respectively b) REVLON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (dollars in millions, except share and per share amounts) Year Ended December 31, 2020 2019 1.904.3 860.5 1.043.8 1.071.8 5.0 49.7 2,419.6 1,052.2 1.367.4 1.316.6 3.9 144.1 K0.5) (226,3) (26.6 60.7 1966 14.6 Net sales Cost of sales Gross profit. Selling, general and administrative expenses Acquisition, integration and divestiture costs. Restructuring charges and other, net Impairment charges Gain on divested assets Operatine (los) income, Other expenses. Interest expense, net .. Amortization of debt issuance costs Gain on early extinguishment of debt Foreign currency gains, nel Miscellaneous, nct. Other expenses. Loss from continuing operations before income taxes Provision for income taxes..... Loss from continuing operations, nct of taxes Income from discontinued operations, net of taxes Net loss........... Other comprehensive income foss); Foreign currency translation adjustments Amortization of pension related costs, net of taxe Pension re-measurement, net of taxd Other comprehensive loss, nel..... Total comprehensive loss... 243.3 26.8 (43.1) (6.0) 129 233.9 (460.2) 158.8 (619.0) (LO) 16.4 225.7 (165.0) 0.2 (165.2) 7.5 (1577) (619.03 10.2 11.4. (521) 30.5 (649.50 (2.9) 9.0 (19.3) (13.2) (1719) $ Basic and Diluted (loss) earnings per common share: Continuing operations .... Discontinued operations. Net loss (11.59) $ (311) 0.14 (2.97 > 1.59) Basic ... Weighted average number of common shares outstanding 53,401.324 53.081.321 Diluted 53,401,324 53.081.321 Net of tax expense of nil and $1.8 million the years ended December 31, 2020 and 2019, respectively Nel of tax expense of nil und S1.1 million the years ended December 31, 2020 and 2019, respectively. This amount is included in the computation of act periodic benclit costs (income). See Note 11, "Pension and Post-Retirement Benefits." for additional information regarding net periodic bencil costs (income) Net of tax benefit of $1.9 million and $5.2 million for the years ended December 31, 2020 and 2019. respectively. See Accompanying Notes to Consolidated Financial Statements F-10 S- Year Ended December 31, 2020 2019 Supplemental schedule of non-cash investing and financing activities Non-cash roll-up of participating lenders from the 2016 Term Loan Facility to the 2020 BrandCo Facilities.......... $846.0 Paid-in-kind debt issuance costs capitalized to the 2020 BrandCo Facilities 29.1 Paid in-kind interest capitalized to the 2020 BrandCo Facilities 9.6 Paid-in-kind foes for the B-2 Loans in the November 5.75% Senior Notes Exchange Oller.... 17.5 The Company fully repaid the 2019 Term Loan Facility in May 2020. These amounts include restricted cash of $5.4 million and $0.2 million as of December 31, 2020 and 2019, respectively, The balance as of December 31, 2020 represents: (i) cash on deposit in lieu of a mandatory prepayment under the 2018 Foreign Asset-Based Term Facility; and (ii) cash on deposit to support outstanding undrawn letters of credit. The balance as of December 31, 2019 represents: a) cash on deposit in lieu of a mandatory prepayment under the 2018 Forcign Asset-Based Term Facility, and (ii) cash on deposit to support outstanding undrawn letters of credit. These balances were included within prepaid expenses and other current assets and other assets in the Company's Consolidated Balance Sheets as of December 31, 2020 and December 31. 2019, respectively. hi December 31 2019 $ $ 104.3 462.6 REVLON CONSUMER PRODUCTS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except share and per share amounts) December 31, 2020 ASSETS Current assets: Cash and cash equivalents 97.1 Trade receivables, less allowance for doubtful accounts of $13.0 and $11.4 as of December 31, 2020 and December 31, 2019, respectively 352.3 Inventories, net..... Prepaid expenses and other assets 130.5 Receivable from Revlon, Inc. Total current assets... 1,212.5 Property, plant and equipment, net of accumulated depreciation of $528.9 and 5488.1 as of December 31, 2020 and December 31, 2019, respectively 352.0 Deferred income taxes. 34.1 Goodwill Intangible assets, net of accumulated amortization and impairment of $296.8 and $226.4 as of December 31, 2020 and December 31, 2019, respectively Other assets 109.1 Total assets $ 2,7022 423.4 448,4 131,4 170,0 161.2 1,268.7 408.6 158.1 673.7 563.7 430.8 490.7 121.1 $3.120.9 $ 2.5 217.5 2033 423.2 846.5 3,105.0 212.4 241.3 2.2 288.0 251.8 418.2 960.2 2,9062 181.2 162.7 LIABILITIES AND STOCKHOLDER'S DEFICIENCY Current liabilities: Short-term borrowings.. Current portion of long- debt Accounts payable Accrued expenses and other current liabilities Total current liabilities. Long-term debt Long-term pension and other post-retirement plan liabilities Other long-term liabilities Stockholder's deficiency: Products Corporation Preferred stock, par value $1.00 per share, 1,000 shares authorized, 546 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively Products Corporation Common Stock, par value $1.00 per share: 10.000 shares authorized: 5.260 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total stockholder's deficiency Total liabilities and stockholder's deficiency. 54,6 546 1,006,9 (2,486.6) (277.9) (1.703.0) $ 2,7022 996.5 (1,893.1) (247.4) (1,089.4) $ 3,120.9 REVLON, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except share and per share amounts) December 31, 2020 December 31, 2019 $ 97.1 $ 104.3 423.4 448.4 352.3 462.6 134.4 1.0464 1353 1.111.4 ASSETS Current axsel Cash and cash equivalents Trade receivables, less allowance for doubtful accounts of $13.0 and $11.4 as of December 31, 2020 and December 31, 2019, respectively Inventories, nel Prepaid expenses and other assets Total current assets.... Property, plant and equipment, net of accumulated depreciation of $24.9 and 5488.1 as of December 31, 2020 and December 31, 2019. respectively... Deferred income taxes. *** Goodwill +++++ Intangible assets, net of accumulated amortization and impairment of $296.8 and $226,4 of December 31, 2020 and December 31, 2019, respectively. 48 Other assets Total assets 352.0 25.7 563.7 408.6 175.1 673.7 430.8 109.1 $ 2,527.7 490.7 121.1 $ 2.980.6 $ S 2.5 217.5 203.3 420.9 844.2 3,105.0 212.4 228.1 2.2 288.0 251.8 414.9 950.9 2.900.2 181.2 157.5 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Short-term borrowings... - Current portion of long term dcbt..... Accounts payable . Accrued expenses and other current liabilities. Total current liabilities.............. Long-term debu........................ Long-term pension and other post-retirement plan liabilities Orher long-term liabilities Stockholders' deficiency: Class A Common Stock, par value $0.01 per share: 900,000,000 shares authorized: 56.742,513 and 56,470,490 shares issued as of December 31, 2020 and December 31, 2019, respectively... Additional paid-in capital Treasury stock, al cost: 1,774.200 and 1,625,580 shares of Class A Common Stock as of December 31, 2020 and December 31, 2019, respectively, Accumulated deficit ........ Accumulated other comprehensive loss Total stockholders' deficiency Total liabilities and stockholders' deficiency 0.5 1.082.3 0.5 1.071.9 (35.2) (2,631.7) (277.9) (1.862.0) $ 2,5277 (33.5) (2,012.7) (247.4) (1.221.2) $ 2,980.6 REVLON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY (dollars in millions, except share and per share amounts) Common Stock Additional Pald-In Capital $1.071,9 $0.5 Balance, January 1, 2020 ... - - - - , Treasury stock acquired, at cost Stock-based compensation amortization Net loss................. Other comprehensive doss) income, netto) Balance, December 31, 2020 Accumulated Other Total Treasury Accumulated Comprehensive Stockholders Stock Deficit (Loss) Income Deficiency $(33.5) S(2,012.7) $(247.4) $(1.221.2) (1.7) (1.7) 10.4 (619.0) (619.0) (30.5) (30.5 S(35.2) S(2.631.7) S(277.9) S41.862.0) 10.4 $0. $1.082.3 Common Stock Additional Paid-In Capital $1.063.8 $0.5 Accumulated Other Total Treasury Accumulated Comprehensive Stockholders' Stock Deficit (Loss) Income Deficiency $(31.9) S(1.855.0) $(234.2) S(1,056.8) (1.6) (1.6) 8.1 (157.7) (157.7) (13.2) (13.2) $(33.5) S(2,012.7) $(247.4) $(1,221.2) Balance, January 1, 2019 Treasury stock acquired, ut cost) Stock-based compensation amortization Net loss Other comprehensive (loss) income, net.. Balance, December 31, 2019 8.1 $0.5 $1,071.9 ca Pursuant to the share withholding provisions of the Fourth Amended and Restated Revlon, Inc. Stock Plan (as amended, the "Stock Plan"), the Company withheld an aggregate of 148,620 and 92,260 shares of Revlon Class A Common Stock during the years ended December 31, 2020 and 2019, respectively, to satisfy certain minimum statutory tax withholding requirements related to the vesting of restricted shares and restricted stock units (RSUS") for certain senior executives and employees. These withheld shares were recorded as treasury stock using the cost method, al u weighted average price per share of $10.98 and $17.75 during the years ended December 31, 2020 and 2019, respectively, based on the closing price of Revlon Class A Common Stock as reported on the New York Stock Exchange (the "NYSE) consolidated tape on each respective vesting date, for a total of approximately $1.7 million and $1.6 million during the years ended December 31, 2020 and 2019. respectively. See Note 12. "Stock Compensation Plan," for details regarding restricted stock awards and RSUS under the Stock Plan. See Note 14, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the years ended December 31, 2020 and 2019, respectively b) REVLON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (dollars in millions, except share and per share amounts) Year Ended December 31, 2020 2019 1.904.3 860.5 1.043.8 1.071.8 5.0 49.7 2,419.6 1,052.2 1.367.4 1.316.6 3.9 144.1 K0.5) (226,3) (26.6 60.7 1966 14.6 Net sales Cost of sales Gross profit. Selling, general and administrative expenses Acquisition, integration and divestiture costs. Restructuring charges and other, net Impairment charges Gain on divested assets Operatine (los) income, Other expenses. Interest expense, net .. Amortization of debt issuance costs Gain on early extinguishment of debt Foreign currency gains, nel Miscellaneous, nct. Other expenses. Loss from continuing operations before income taxes Provision for income taxes..... Loss from continuing operations, nct of taxes Income from discontinued operations, net of taxes Net loss........... Other comprehensive income foss); Foreign currency translation adjustments Amortization of pension related costs, net of taxe Pension re-measurement, net of taxd Other comprehensive loss, nel..... Total comprehensive loss... 243.3 26.8 (43.1) (6.0) 129 233.9 (460.2) 158.8 (619.0) (LO) 16.4 225.7 (165.0) 0.2 (165.2) 7.5 (1577) (619.03 10.2 11.4. (521) 30.5 (649.50 (2.9) 9.0 (19.3) (13.2) (1719) $ Basic and Diluted (loss) earnings per common share: Continuing operations .... Discontinued operations. Net loss (11.59) $ (311) 0.14 (2.97 > 1.59) Basic ... Weighted average number of common shares outstanding 53,401.324 53.081.321 Diluted 53,401,324 53.081.321 Net of tax expense of nil and $1.8 million the years ended December 31, 2020 and 2019, respectively Nel of tax expense of nil und S1.1 million the years ended December 31, 2020 and 2019, respectively. This amount is included in the computation of act periodic benclit costs (income). See Note 11, "Pension and Post-Retirement Benefits." for additional information regarding net periodic bencil costs (income) Net of tax benefit of $1.9 million and $5.2 million for the years ended December 31, 2020 and 2019. respectively. See Accompanying Notes to Consolidated Financial Statements F-10 S- Year Ended December 31, 2020 2019 Supplemental schedule of non-cash investing and financing activities Non-cash roll-up of participating lenders from the 2016 Term Loan Facility to the 2020 BrandCo Facilities.......... $846.0 Paid-in-kind debt issuance costs capitalized to the 2020 BrandCo Facilities 29.1 Paid in-kind interest capitalized to the 2020 BrandCo Facilities 9.6 Paid-in-kind foes for the B-2 Loans in the November 5.75% Senior Notes Exchange Oller.... 17.5 The Company fully repaid the 2019 Term Loan Facility in May 2020. These amounts include restricted cash of $5.4 million and $0.2 million as of December 31, 2020 and 2019, respectively, The balance as of December 31, 2020 represents: (i) cash on deposit in lieu of a mandatory prepayment under the 2018 Foreign Asset-Based Term Facility; and (ii) cash on deposit to support outstanding undrawn letters of credit. The balance as of December 31, 2019 represents: a) cash on deposit in lieu of a mandatory prepayment under the 2018 Forcign Asset-Based Term Facility, and (ii) cash on deposit to support outstanding undrawn letters of credit. These balances were included within prepaid expenses and other current assets and other assets in the Company's Consolidated Balance Sheets as of December 31, 2020 and December 31. 2019, respectively. hi December 31 2019 $ $ 104.3 462.6 REVLON CONSUMER PRODUCTS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except share and per share amounts) December 31, 2020 ASSETS Current assets: Cash and cash equivalents 97.1 Trade receivables, less allowance for doubtful accounts of $13.0 and $11.4 as of December 31, 2020 and December 31, 2019, respectively 352.3 Inventories, net..... Prepaid expenses and other assets 130.5 Receivable from Revlon, Inc. Total current assets... 1,212.5 Property, plant and equipment, net of accumulated depreciation of $528.9 and 5488.1 as of December 31, 2020 and December 31, 2019, respectively 352.0 Deferred income taxes. 34.1 Goodwill Intangible assets, net of accumulated amortization and impairment of $296.8 and $226.4 as of December 31, 2020 and December 31, 2019, respectively Other assets 109.1 Total assets $ 2,7022 423.4 448,4 131,4 170,0 161.2 1,268.7 408.6 158.1 673.7 563.7 430.8 490.7 121.1 $3.120.9 $ 2.5 217.5 2033 423.2 846.5 3,105.0 212.4 241.3 2.2 288.0 251.8 418.2 960.2 2,9062 181.2 162.7 LIABILITIES AND STOCKHOLDER'S DEFICIENCY Current liabilities: Short-term borrowings.. Current portion of long- debt Accounts payable Accrued expenses and other current liabilities Total current liabilities. Long-term debt Long-term pension and other post-retirement plan liabilities Other long-term liabilities Stockholder's deficiency: Products Corporation Preferred stock, par value $1.00 per share, 1,000 shares authorized, 546 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively Products Corporation Common Stock, par value $1.00 per share: 10.000 shares authorized: 5.260 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total stockholder's deficiency Total liabilities and stockholder's deficiency. 54,6 546 1,006,9 (2,486.6) (277.9) (1.703.0) $ 2,7022 996.5 (1,893.1) (247.4) (1,089.4) $ 3,120.9 REVLON, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions, except share and per share amounts) December 31, 2020 December 31, 2019 $ 97.1 $ 104.3 423.4 448.4 352.3 462.6 134.4 1.0464 1353 1.111.4 ASSETS Current axsel Cash and cash equivalents Trade receivables, less allowance for doubtful accounts of $13.0 and $11.4 as of December 31, 2020 and December 31, 2019, respectively Inventories, nel Prepaid expenses and other assets Total current assets.... Property, plant and equipment, net of accumulated depreciation of $24.9 and 5488.1 as of December 31, 2020 and December 31, 2019. respectively... Deferred income taxes. *** Goodwill +++++ Intangible assets, net of accumulated amortization and impairment of $296.8 and $226,4 of December 31, 2020 and December 31, 2019, respectively. 48 Other assets Total assets 352.0 25.7 563.7 408.6 175.1 673.7 430.8 109.1 $ 2,527.7 490.7 121.1 $ 2.980.6 $ S 2.5 217.5 203.3 420.9 844.2 3,105.0 212.4 228.1 2.2 288.0 251.8 414.9 950.9 2.900.2 181.2 157.5 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Short-term borrowings... - Current portion of long term dcbt..... Accounts payable . Accrued expenses and other current liabilities. Total current liabilities.............. Long-term debu........................ Long-term pension and other post-retirement plan liabilities Orher long-term liabilities Stockholders' deficiency: Class A Common Stock, par value $0.01 per share: 900,000,000 shares authorized: 56.742,513 and 56,470,490 shares issued as of December 31, 2020 and December 31, 2019, respectively... Additional paid-in capital Treasury stock, al cost: 1,774.200 and 1,625,580 shares of Class A Common Stock as of December 31, 2020 and December 31, 2019, respectively, Accumulated deficit ........ Accumulated other comprehensive loss Total stockholders' deficiency Total liabilities and stockholders' deficiency 0.5 1.082.3 0.5 1.071.9 (35.2) (2,631.7) (277.9) (1.862.0) $ 2,5277 (33.5) (2,012.7) (247.4) (1.221.2) $ 2,980.6