BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2012

BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE

8. BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE

Shares used in basic (loss) earnings per share are computed using the weighted average number of common shares outstanding during each period. Shares used in diluted (loss) earnings per share include the dilutive effect of unvested restricted shares and outstanding stock options under the Stock Plan using the treasury stock method. For the three and nine months ended September 30, 2012 and 2011, all outstanding options to purchase shares of Revlon, Inc. Class A common stock, par value of $0.01 per share (the “Class A Common Stock”), that could potentially dilute basic (loss) earnings per share in the future were excluded from the calculation of diluted (loss) earnings per common share as their effect would be anti-dilutive, as in each case their exercise price was in excess of the NYSE closing price of the Class A Common Stock at all times during these periods.

For the three months ended September 30, 2012 and 2011, 121 and 97,799 weighted average shares, respectively, of unvested restricted stock that could potentially dilute basic (loss) earnings per share in the future were excluded from the calculation of diluted (loss) earnings per common share as their effect would be anti-dilutive. For the nine months ended September 30, 2012 and 2011, 4,465 and 136,286 weighted average shares, respectively, of unvested restricted stock that could potentially dilute basic (loss) earnings per share in the future were excluded from the calculation of diluted (loss) earnings per common share as their effect would be anti-dilutive.

The components of basic and diluted (loss) earnings per share for the three and nine months ended September 30, 2012 and 2011 are as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012		2011
Numerator:
(Loss) Income from continuing operations	$	(15.0	)	$	0.1	$	4.2	$	16.4
Income from discontinued operations		—			—		0.4		0.6
Net income	$	(15.0	)	$	0.1	$	4.6	$	17.0
Denominator:
Weighted average common shares outstanding – Basic		52,356,641			52,182,848		52,345,895		52,170,839
Effect of dilutive restricted stock		—			163,009		11,016		148,815
Weighted average common shares outstanding – Diluted		52,356,641			52,345,857		52,356,911		52,319,654
Basic (loss) earnings per share:
Continuing operations	$	(0.29	)	$	—	$	0.08	$	0.31
Discontinued operations		—			—		0.01		0.01
Net (loss) income	$	(0.29	)	$	—	$	0.09	$	0.32
Diluted (loss) earnings per share:
Continuing operations	$	(0.29	)	$	—	$	0.08	$	0.31
Discontinued operations		—			—		0.01		0.01
Net (loss) income	$	(0.29	)	$	—	$	0.09	$	0.32