QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of the Company’s unaudited quarterly results of operations for each of 2016 and 2015:



	Year Ended December 31, 2016
	1st Quarter		2nd Quarter			3rd Quarter			4th Quarter
Net sales	$	439.6	$	488.9		$	604.8		$	800.7
Gross profit	285.7		317.4			361.4			452.4
Income (loss) from continuing operations, net of taxes^(a)(b)	10.6		10.8			(4.5		)	(33.9		)
Income (loss) from discontinued operations, net of taxes^(e)	0.4		(2.5		)	(0.2		)	(2.6		)
Net income (loss)^(a)(b)	11.0		8.3			(4.7		)	(36.5		)

^*Basic income (loss) per common share^(a)(b)(e):
Continuing operations	$	0.20	$	0.21		$	(0.09	)	$	(0.65	)
Discontinued operations	0.01		(0.05		)	—			(0.05		)
Net income (loss)	$	0.21	$	0.16		$	(0.09	)	$	(0.70	)

^*Diluted income (loss) per common share^(a)(b)(e):
Continuing operations	$	0.20	$	0.21		$	(0.09	)	$	(0.65	)
Discontinued operations	0.01		(0.05		)	—			(0.05		)
Net income (loss)	$	0.21	$	0.16		$	(0.09	)	$	(0.70	)



	Year Ended December 31, 2015
	1st Quarter			2nd Quarter		3rd Quarter			4th Quarter
Net sales	$	438.5		$	482.4	$	471.5		$	521.9
Gross profit	296.2			321.1		303.7			325.5
(Loss) Income from continuing operations, net of taxes^(c)(d)	(0.8		)	26.0		7.9			26.2
(Loss) from discontinued operations, net of taxes^(e)	(0.1		)	—		(1.7		)	(1.4		)
Net (loss) income ^(c)(d)	(0.9		)	26.0		6.2			24.8

^*Basic (loss) income per common share^(c)(d)(e):
Continuing operations	$	(0.02	)	$	0.50	$	0.15		$	0.50
Discontinued operations	—			—		(0.03		)	(0.03		)
Net (loss) income	$	(0.02	)	$	0.50	$	0.12		$	0.47

^*Diluted (loss) income per common share^(c)(d)(e):
Continuing operations	$	(0.02	)	$	0.49	$	0.15		$	0.50
Discontinued operations	—			—		(0.03		)	(0.03		)
Net (loss) income	$	(0.02	)	$	0.49	$	0.12		$	0.47


^(*)	The sum of the quarterly earnings per share amounts may not equal the full year amount reported since per share amounts are computed independently for each quarter and for the full year based upon the respective weighted average common shares outstanding and other dilutive potential common shares for each respective period.

^(a)

Income from continuing operations, net income and basic and diluted income per share for the fourth quarter of 2016 were unfavorably impacted by: (i) $31.7 million of restructuring charges related to the EA Integration Restructuring Charges (See Note 3, "Restructuring Charges"); and (ii) $16.7 million and $6.7 million of non-cash impairment charges on goodwill and intangible assets, respectively, within the Other reporting unit (see Note 8, "Goodwill and Intangible Assets, Net").

(b)

Income from continuing operations, net income and basic and diluted income per share for the third quarter of 2016 were unfavorably impacted by $33.5 million of acquisition and integration costs related to the Elizabeth Arden Acquisition and a $16.9 million loss on early extinguishment of debt related to debt refinancing actions. See Note 2, "Business Combinations" and Note 11, "Long Term Debt," for further discussion on the Elizabeth Arden Acquisition and related debt refinancing actions, respectively.

(c)

Income from continuing operations, net income and basic and diluted income per share for the first quarter of 2015 were unfavorably impacted by foreign currency losses, net, of $15.9 million, primarily due to the unfavorable impacts of the revaluation of certain U.S. Dollar denominated intercompany payables, as well as a $1.9 million foreign currency loss recognized in the first quarter of 2015 as a result of the re-measurement of Revlon Venezuela's balance sheet during the first quarter of 2015.

^(d)

Income from continuing operations, net income and basic and diluted income per share for the fourth quarter of 2015 were impacted by: (i) a $20.7 million pension lump sum settlement charge related to the accounting for a one-time cash lump sum payment, which requires that a portion of pension losses within accumulated other comprehensive loss be realized in the period that related pension liabilities are settled (see Note 14, "Pension and Post-retirement Benefits"); (ii) an increase in net income driven by the net reduction of the Company's deferred tax valuation allowance on its net deferred tax assets for certain foreign jurisdictions, which has been reflected in the provision for income taxes for 2015 (See Note 16, "Income Taxes"); (iii) a $9.7 million non-cash goodwill impairment charge related to the Global Color Brands reporting unit (see Note 8, "Goodwill and Intangible Assets"); and (iv) $9.5 million in restructuring charges related to the 2015 Efficiency Program (see Note 3, "Restructuring Charges").


^(e)	(Loss) income from discontinued operations includes the results of the Company's former China operations within the Consumer segment (See Note 4, "Discontinued Operations").