Revlon, Inc. (NYSE:REV) Q3 2018 Earnings Conference Call - Final Transcript
Nov 09, 2018 • 08:30 am ET
Hello, and welcome to Revlon's Q3 Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, Friday, November 9.
I would now like to turn the conference over to your host, Eric Warren, Vice President, Treasurer and Head of Investor Relations. Please go ahead.
Thank you, Courtney. Good morning, everyone, and thank you for joining the call. Earlier today, the company released its financial results for the quarter ended September 30, 2018. If you have not already received a copy of the earnings release, a copy can be obtained on the company's website at revloninc.com. On the call this morning are Debbie Perelman, our President and Chief Executive Officer; and Victoria Dolan, our Chief Financial Officer.
(Forward-Looking Cautionary Statements)
Remarks today will include a discussion of certain GAAP and non-GAAP results. Consistent with past reporting practices, non-GAAP results excludes certain nonoperating items that are not directly attributable to the company's underlying operating performance. These adjusted measures are defined in the earnings release and are also reconciled in the financial tables at the end of the release. Please also note that certain amounts provided throughout this call have been rounded.
The call today should not be copied or recorded. And with that, we'll turn the call over to Debbie.
Thank you, Eric. Good morning, everyone, and thank you for joining us. We are all keenly aware that the pace of change in our world is ever increasing and the beauty industry is not immune to these forces. As I highlighted back in August, we are excited about the changing business landscape and view this as an opportunity for our company to drive the future of beauty and reclaim our leadership position via sustainable long-term growth.
We remain focused on our three key strategic pillars that will drive our future success and growth. First, strengthening our iconic brand through innovation and relevant product portfolios; second, building our capabilities to better communicate and connect with our consumers through media channels where they spend the most time; and third, ensuring availability of our product where the consumers shop both in-store and, increasingly, online.
Turning now to this morning's earnings release, we are very pleased with our third quarter business results and believe that our performance is reflective of the strength of our strategy. We continue to stabilize our business, see growth in key areas and drive improved efficiency in all aspects of our operations.
Our key business highlights for this third quarter include higher third quarter net sales on a constant currency basis versus the prior-year quarter. Adjusted EBITDA on a constant currency basis increased 38%, representing the largest quarter-over-quarter adjusted EBITDA growth since the Elizabeth Arden acquisition in 2016. Our biggest brands, Revlon and Elizabeth Arden, showed net sales growth in the quarter on a constant currency basis. In North America, for example, Elizabeth Arden net sales grew 10%, while Revlon net sales grew at 6%.
Continuing the trend from last quarter, we saw strong growth in segments and