Revlon, Inc. (REV) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $4.70 million, or $ 0.09 a share in the quarter, against a net profit of $6.20 million, or $0.12 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $33.20 million, or $0.63 a share compared with $8.60 million or $0.16 a share, a year ago.

Revenue during the quarter grew 28.27 percent to $604.80 million from $471.50 million in the previous year period. Gross margin for the quarter contracted 466 basis points over the previous year period to 59.76 percent. Total expenses were 93.11 percent of quarterly revenues, up from 88.34 percent for the same period last year. That has resulted in a contraction of 477 basis points in operating margin to 6.89 percent.

Operating income for the quarter was $41.70 million, compared with $55 million in the previous year period.

However, the adjusted operating income for the quarter stood at $83.10 million compared to $57.10 million in the prior year period. At the same time, adjusted operating margin improved 163 basis points in the quarter to 13.74 percent from 12.11 percent in the last year period.

Commenting on today's announcement, Revlon president and chief executive officer, Fabian Garcia, said "Reporting as a combined organization for the first time since completing the Elizabeth Arden acquisition, we are pleased to share that the total company has continued its growth trajectory through the third quarter, with reported net sales up 30.0% XFX, or up 2.5% on a pro forma, XFX basis. All four of our reporting segments, Consumer, Professional, Elizabeth Arden and our Other segment, delivered XFX net sales growth in the quarter, with Elizabeth Arden and the Professional businesses realizing increases in both of the North America and International regions."

The company has spent $1,061.30 million cash to meet investing activities during the nine month period as against cash outgo of $55.40 million in the last year period. It has incurred net capital expenditure of $32.60 million on net basis during the nine month period, up 53.77 percent or $11.40 million from year ago period.

Cash flow from financing activities was $900.80 million for the nine month period as against cash outgo of $28.40 million in the last year period.

Cash and cash equivalents stood at $99.20 million as on Sep. 30, 2016, down 45.25 percent or $82 million from $181.20 million on Sep. 30, 2015.

Working capital increases sharply

Revlon, Inc. has recorded an increase in the working capital over the last year. It stood at $457.40 million as at Sep. 30, 2016, up 36.78 percent or $123 million from $334.40 million on Sep. 30, 2015. Current ratio was at 1.61 as on Sep. 30, 2016, down from 1.75 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 62 days for the last year period. Days sales outstanding went up to 56 days for the quarter compared with 50 days for the same period last year.

Days inventory outstanding has decreased to 98 days for the quarter compared with 114 days for the previous year period. At the same time, days payable outstanding went down to 94 days for the quarter from 102 for the same period last year.