NEW YORK Beauty company Revlon narrowed its first-quarter loss and announced plans for a reverse stock split.
According to preliminary first-quarter results, net loss totaled about $5 million compared with a net loss of $35.2 million in the year-ago period thanks in part to cost improvements, and the non-recurrence of brand support related to the launch of Revlon Colorist hair color in the first quarter of last year.
Operating income totaled about $30 million compared with $3 million in the year-ago period, as adjusted EBITDA totaled about $55 million compared with $32.3 million in the year-ago period.
Also benefiting operating income, net loss and adjusted EBITDA was about $6 million in proceeds related to the sale of a non-core trademark, and the non-recurrence of brand support related to the launch of Revlon Colorist hair color in the first quarter of last year.
Net sales totaled $320 million compared with $328.6 million in the year-ago period.
In addition, the company’s board of directors approved a reverse stock split of Revlon’s Class A and Class B common stock as a 1-for-10 split ratio.
“We believe that a reverse stock split is in the best interest of our stockholders because we expect it will allow our stock to be more attractive to a broader range of institutional and other investors, would reduce certain of our costs, such as listing fees, and would be intended to satisfy our compliance with the NYSE’s price criteria for continued listing,” stated Revlon president and chief executive officer David Kennedy.