QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of the Company’s unaudited quarterly results of operations:



	Year Ended December 31, 2013
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
Net sales	$	325.9		$	344.7		$	333.1		$	491.0
Gross profit	211.5			222.1			212.0			304.0
(Loss) income from continuing operations, net of taxes^(a)(b)(c)	(4.5		)	27.1			11.0			(9.0		)
Loss from discontinued operations, net of taxes^(c)	(2.4		)	(2.4		)	(1.5		)	(24.1		)
Net (loss) income^(a)(b)(c)	(6.9		)	24.7			9.5			(33.1		)

Basic (loss) income per common share^(a)(b)(c):
Continuing operations	(0.08		)	0.52			0.21			(0.17		)
Discontinued operations	(0.05		)	(0.05		)	(0.03		)	(0.46		)
Net (loss) income	$	(0.13	)	$	0.47		$	0.18		$	(0.63	)

Diluted (loss) income per common share^(a)(b)(c):
Continuing operations	(0.08		)	0.52			0.21			(0.17		)
Discontinued operations	(0.05		)	(0.05		)	(0.03		)	(0.46		)
Net (loss) income	$	(0.13	)	$	0.47		$	0.18		$	(0.63	)



	Year Ended December 31, 2012
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
Net sales	$	321.5		$	350.2		$	341.2		$	383.5
Gross profit	209.2			229.0			216.8			247.6
Income (loss) from continuing operations, net of taxes^(d)(e)(f)	10.3			13.6			(11.3		)	48.6
Loss from discontinued operations, net of taxes	(1.8		)	(2.5		)	(3.7		)	(2.1		)
Net income (loss)^(d)(e)(f)	8.5			11.1			(15.0		)	46.5

Basic income (loss) per common share^(d)(e)(f):
Continuing operations	0.20			0.26			(0.22		)	0.93
Discontinued operations	(0.04		)	(0.05		)	(0.07		)	(0.04		)
Net income (loss)	$	0.16		$	0.21		$	(0.29	)	$	0.89

Diluted income (loss) per common share^(d)(e)(f):
Continuing operations	0.20			0.26			(0.22		)	0.93
Discontinued operations	(0.04		)	(0.05		)	(0.07		)	(0.04		)
Net income (loss)	$	0.16		$	0.21		$	(0.29	)	$	0.89


^(a)	Loss from continuing operations, net loss and basic and diluted loss per share for the first quarter of 2013 were unfavorably impacted by a $27.9 million aggregate loss on early extinguishment of debt due to the 2013 Senior Notes Refinancing and the February 2013 Term Loan Amendments. (See Note 11, “Long-Term Debt and Redeemable Preferred Stock”).

^(b)

(Loss) income from continuing operations, net (loss) income and basic and diluted (loss) income per share for the first quarter of 2013 and the second quarter of 2013 were favorably impacted by an $8.3 million and an $18.1 million, respectively, gain from insurance proceeds due to the settlement of the Company's claims for the loss of inventory, business interruption and property losses as a result of the fire at the Company's Venezuela facility. (See Note 1, “Description of Business and Summary of Significant Accounting Policies - Other Events - Fire at Revlon Venezuela Facility”).

^(c)

Loss from continuing operations, net loss and basic and diluted loss per share for the fourth quarter of 2013 were unfavorably impacted by $19.1 million of acquisition and integration costs related to the Colomer Acquisition. Additionally, the Company incurred $21.4 million of restructuring and related charges in the fourth quarter of 2013 related to the December 2013 Program, of which $20.0 million relates to the Company's exit of its business operations in China and is recorded in loss from discontinued operations, net of taxes.


^(d)	Income from continuing operations, net income and basic and diluted income per share for the second quarter of 2012 were unfavorably impacted by a $6.7 million loss contingency recognized related to litigation associated with the Company’s 2009 Exchange Offer. (See Note 20, “Commitments and Contingencies”).

^(e)

Loss from continuing operations, net loss and basic and diluted loss per share for the third quarter of 2012 were unfavorably impacted by $24.1 million in restructuring and related charges recorded as a result of the September 2012 Program and an additional $2.2 million loss contingency recognized related to litigation associated with the Company’s 2009 Exchange Offer. (See Note 3, “Restructuring Charges” and Note 20, “Commitments and Contingencies”).

^(f)

Income from continuing operations, net income and basic and diluted income per share for the fourth quarter of 2012 were favorably impacted by an increase in net income driven by a non-cash benefit of $15.8 million related to the reduction of the Company’s deferred tax valuation allowance on its net deferred tax assets for certain jurisdictions in the U.S. at December 31, 2012, as a result of the Company’s improved earnings trends and cumulative taxable income in those jurisdictions, which is reflected in the provision for income taxes (See Note 14, “Income Taxes”).