CONDENSED CONSOLIDATION DEBTOR-IN-POSSESSION FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Condensed Combined Financial Statements of the Debtors

Liabilities subject to compromise at June 30, 2022 consisted of the following:


	June 30,
	2022
Accounts payable	$	169.3
Accrued expenses	173.8
Other liabilities	56.5
Debt subject to compromise	3,267.7

Total liabilities subject to compromise	$	3,667.3

Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and six months ended June 30, 2022 and were as follows:


	Three and Six Months Ended
	June 30, 2022
Write off of deferred financing costs and discount on debt subject to compromise	$	124.8
DIP Facilities financing costs	14.8
Professional fees	14.4
Impact of lease rejections	4.3
Reorganization items, net	$	158.3

The financial statements below represent the condensed combined financial statements of the Debtors as of June 30, 2022 and December 31, 2021 and for the three and six months ended June 30, 2022 and 2021.

REVLON, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED BALANCE SHEETS

(dollars in millions, except share and per share amounts)

(Unaudited)


	June 30, 2022		December 31, 2021

ASSETS
Current assets:
Cash and cash equivalents	$	241.6	$	17.9
Trade receivables (net of allowance for doubtful accounts of $0.7 and $2.3, respectively)	151.7		258.7
Trade receivables from non-debtor subsidiaries	410.3		400.4
Inventories, net	282.3		261.8
Prepaid expenses and other assets	89.5		74.5
Total current assets	1,175.4		1,013.3
Property, plant and equipment (net of accumulated depreciation of $431.7 and $426.0, respectively)	197.6		219.4
Deferred income taxes	2.9		17.5
Goodwill	540.0		540.0
Intangible assets (net of accumulated amortization and impairment of $309.7 and $274.4, respectively)	285.9		320.8
Investment in subsidiaries	877.7		874.5
Due from affiliates	261.5		249.8
Other assets	75.0		74.8
Total assets	$	3,416.0	$	3,310.1

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current liabilities:
Short-term borrowings	$	—	$	—
Current portion of long-term debt	592.8		137.1
Accounts payable	2.3		134.7
Accounts payable to non-debtors	78.8		234.5
Accrued expenses and other current liabilities	135.8		267.1
Total current liabilities	$	809.7	$	773.4
Long-term debt	—		3,234.2
Long-term pension and other post-retirement plan liabilities	135.3		141.3
Other long-term liabilities	199.9		337.9
Liabilities subject to compromise	3,874.9		—
Total liabilities	5,019.8		4,486.8
Stockholder’s (deficiency) equity	(1,603.8)		(1,176.7)
Total liabilities and stockholders’ deficiency	$	3,416.0	$	3,310.1

REVLON, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(dollars in millions, except share and per share amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,

	2022		2021		2022		2021

Net sales	$	226.7	$	269.9	$	494.3	$	514.1
Cost of sales	110.3		116.3		233.6		232.0
Gross profit	116.4		153.6		260.7		282.1
Selling, general and administrative expenses	161.0		165.2		324.9		330.3
Acquisition, integration and divestiture costs	0.3		0.6		0.4		1.2
Restructuring charges and other, net	2.5		6.5		4.3		9.9
Impairment charges	20.5		—		20.5		—

Operating income (loss)	(67.9)		(18.7)		(89.4)		(59.3)
Other expenses:
Interest expense, net	52.7		62.1		112.1		120.1

Amortization of debt issuance costs	8.2		13.3		16.8		21.3

Foreign currency losses, net	0.9		0.5		9.4		(2.7)
Miscellaneous, net	5.2		1.5		7.3		2.8
Reorganization items, net	158.3		—		158.3		—
Equity in net loss of subsidiary	(20.8)		(10.4)		(23.1)		(13.3)
Other expenses	204.5		67.0		280.8		128.2
Loss from operations before income taxes	(272.4)		(85.7)		(370.2)		(187.5)
Provision for income taxes	6.4		2.2		12.9		2.2


Net loss	$	(278.8)	$	(87.9)	$	(383.1)	$	(189.7)
Other comprehensive income, net	0.2		3.5		0.2		(0.4)
Total comprehensive loss	$	(278.6)	$	(84.4)	$	(382.9)	$	(190.1)

REVLON, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)

(Unaudited)


	Six Months Ended June 30,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:


























Net cash used in operating activities	(90.2)		(46.7)
CASH FLOWS FROM INVESTING ACTIVITIES:




Net cash used in investing activities	(2.9)		(2.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in short-term borrowings and overdraft	(2.0)		(5.0)
Borrowings on term loans	—		230.0
Repayments on term loans	(13.6)		(117.2)


Net (repayments) borrowings under the revolving credit facilities	(0.6)		(36.8)
Borrowings on DIP Term Loan Facility	375.0		—
Repayments on Tranche A DIP ABL Facility	(21.2)		—





Payment of financing costs	(16.8)		(14.0)

Tax withholdings related to net share settlements of restricted stock and RSUs	(3.3)		(2.4)

Other financing activities	—		(0.2)
Net cash provided by financing activities	317.5		54.4
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.3)		—
Net increase in cash, cash equivalents and restricted cash	224.1		5.6
Cash, cash equivalents and restricted cash at beginning of period	17.9		10.8
Cash, cash equivalents and restricted cash at end of period (a)	$	242.0	$	16.4

(a)These amounts include restricted cash of $0.4 million and nil as of June 30, 2022 and 2021, respectively. The balance is included within prepaid expenses and other current assets and other assets in the Company's Consolidated Balance Sheets as of June 30, 2022.