Revlon, Inc. (NYSE:REV) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 08:30 am ET


Revlon, Inc. (NYSE:REV) Q3 2019 Earnings Conference Call - Final Transcript


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Hello, and welcome to the Third Quarter 2019 Revlon Earnings Call. My name is Lydia, and I will be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions]

I will now hand you over to your host, Eric Warren, to begin today's conference. Thank you.

Eric Warren

Thank you, Lydia. Good morning, everyone, and thank you for joining the call. Earlier today, the Company released its financial results for the quarter ended September 30, 2019. If you've not already received a copy of the earnings release, a copy can be obtained on the Company's website at On the call this morning are Debbie Perelman, our President and Chief Executive Officer; and Victoria Dolan, our Chief Financial Officer.

The discussion today might include forward-looking statements that are based on current expectations and are provided pursuant to the Private Securities Litigation Reform Act of 1995. Information on factors that could affect actual results and cause them to differ materially from such forward-looking statements is set forth in the Company's SEC filings, including its Q3 2019 Form 10-Q. The Company undertakes no obligation to publicly update any forward-looking statements, except for the Company's obligations under the US federal securities laws.

Remarks today will include a discussion of certain GAAP and non-GAAP results. Consistent with past reporting practices, non-GAAP results exclude certain non-operating 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.

Debra G. Perelman

Thank you, Eric. Good morning, everyone, and thank you for joining us. Despite the continued headwinds facing our North America business, in the third quarter, we continue to see momentum in our key strategic areas that we have previously discussed with you. Growth in our international markets and e-commerce channel was offset by declines in our North America business, predominantly in our Revlon and Portfolio segments. We remain focused on driving improved profitability, which we achieved in three of our four segments, as well as generating strong adjusted EBITDA. For the quarter, we also saw improved, as reported, gross profit margin relative to the prior year quarter.

Speaking first to our multiple areas of growth and investment. Our international business continues to be driven by Elizabeth Arden skin care, which grew 29% on a constant currency basis compared to prior year quarter. We saw growth in our key franchises: Ceramide, which grew 33%; Prevage, which increased 41%; and Eight Hour, which grew 8%, all on a constant currency basis. Our core products continue to perform well in each of these franchises, and in the third quarter, we launched exciting new innovation.

Within Ceramide, we continue to build on our success of capsules with our newest launch Vitamin C Ceramide Capsules. Within