Revlon announced its results for the fourth quarter ended December 31, 2022.
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As Reported net sales were $589.8 million in the fourth quarter of 2022, compared to $615.2 million during the prior-year period, a decrease of $25.4 million, or 4.1%.
The As Reported net sales decrease of $25.4 million includes unfavorable FX impacts totaling $31.6 million, resulting in a $6.2 million increase on an XFX basis.
As Reported operating income was $72.8 million in the fourth quarter of 2022, compared to an operating income of $67.3 million during the prior-year period, an increase of $5.5 million.
The higher operating income was driven primarily by $28.4 million in lower selling, general and administrative expenses (SG&A), offset by lower As Reported net sales, and a gross margin decline of 160bps.
Adjusted operating income in the fourth quarter of 2022 increased by $0.4 million to $76.3 million from $75.9 million over the prior-year period.
Adjusted EBITDA(a) in the fourth quarter of 2022 was $99.8 million, versus $108.4 million in the prior-year period. The lower Adjusted EBITDA was driven primarily by lower As Reported net sales, offset by lower SG&A expenses.
As Reported net loss was $178.5 million in the fourth quarter of 2022, versus $9.9 million of net income in the prior-year period.
The higher net loss was primarily driven by $172.7 million of charges related to the Company's Chapter 11 filing, $37.2 million in higher income tax provisions, and $13.3 million higher interest expense, offset by $15.4 million higher foreign currency gains, $8.9 million of lower amortized debt issuance expense, and higher As Reported operating income over the prior-year period.
Net cash used in operating activities for the year ended 2022 was $243.5 million, compared to a $11.0 million use of cash in the prior-year period.
The increase in cash used in operating activities was primarily driven by cash expenditures related to the Chapter 11 Cases, a higher As Reported net loss, unfavorable increases in inventory and prepaid expenses, offset by higher accrued expenses and other current liabilities.
As of December 31, 2022, the Company had approximately $308.3 million of available liquidity, consisting of $249.3 million of unrestricted cash and cash equivalents, $60.4 million of undrawn availability under the Company's Super-Priority Senior Secured Debtor-In-Possession Asset-Based Revolving Credit Agreement (the "DIP ABL Revolver"), less outstanding check float of approximately $1.4 million. ■
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