Revlon (REV) Updates on Integration of The Colomer Group; Plans Job Cuts

In October 2013, Revlon Consumer Products Corporation ("RCPC" and together with Revlon, Inc. (NYSE: REV), the "Company") acquired The Colomer Group Participations, S.L. (“Colomer”) and disclosed that it planned to integrate Colomer’s operations into the Company’s business. The Company is now implementing these integration actions, as well as additional restructuring actions identified to reduce costs across the Company’s businesses (all such actions, together the “Integration Program”). The Company expects to recognize total restructuring charges, capital expenditures and related non-restructuring costs under the Integration Program of approximately $45 million to $50 million over the periods described below, and to achieve annualized cost reductions of approximately $30 million to $35 million. Approximately $10 million to $15 million of these cost reductions are expected to benefit 2014 results. The Integration Program is designed to deliver cost reductions throughout the combined organization by generating synergies and operating efficiencies within the Company’s global supply chain and consolidating offices and back office support, and other actions designed to reduce selling, general and administrative expenses. Certain actions that are part of the Integration Program are subject to consultations with employees, works councils or unions and governmental authorities. The Company expects to substantially complete the Integration Program by the end of 2015. The approximately $45 million to $50 million of total restructuring charges, capital expenditures and related non-restructuring costs under the Integration Program referred to above consist of the following: 1. The Company expects total pre-tax restructuring and related charges to be approximately $22 million to $27 million, with approximately $22 million to $25 million expected to be recognized in 2014 and any remaining charges to be recognized in 2015. a. These total charges consist primarily of approximately $20 million to $23 million in employee-related costs, including severance and other contractual termination benefits. b. All of these charges are expected to be cash, with approximately $20 million to $25 million to be paid in 2014 and the remaining balance in 2015. 2. The Company expects to incur approximately $8 million of integration-related capital expenditures, of which approximately $7 million is expected to be paid in 2014 and the remaining balance in 2015. 3. Approximately $13 million of non-restructuring costs incurred during 2013 related to combining Colomer’s operations into the Company’s business (approximately $6 million of which were non-cash asset write-offs) and approximately $2 million of additional similar non-restructuring costs expected to be incurred in 2014. All amounts reported in this Form 8-K (1) supersede the Company’s previously-disclosed expected Colomer acquisition-related integration costs of approximately $40 million and annualized cost synergies of approximately $25 million and (2) are in addition to the Company’s previously-disclosed expected charges of approximately $22 million (approximately $21 million of which was recorded in December 2013) and annualized cost reductions of approximately $11 million, primarily related to the Company exiting its operations in China. The Company intends to release results for the fourth quarter and fiscal year ended December 31, 2013 and host a conference call on Wednesday March 5, 2014, at 9:30 a.m. EST.

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