CREDIT DOWNGRADES: Standard & Poor’s Ratings Services on Friday lowered its corporate credit ratings for REV Holdings Inc. to “CC” from “CCC-” and on REV’s indirect subsidiary, Revlon Consumer Products Corp., to “CCC+” from “B-.” S&P said the outlook on both companies is negative, but removed both ratings from CreditWatch, where they were placed Oct. 31. S&P said the downgrade “reflects Revlon’s substantial debt leverage, liquidity concerns and a prolonged period of weak operating results.” S&P added that while the anticipated investment in Revlon, by Ronald Perelman’s MacAndrews & Forbes, of up to $150 million will improve the company’s liquidity position in 2003, it remains concerned that the firm’s liquidity may be severely stressed over the indeterminate term, given the rate at which the company’s cash balances have been depleting and its reduced credit facility availability. S&P also lowered ratings on Revlon’s bank loan to “B-” from “B”; its senior secured debt to “CCC+” from “B”; its senior unsecured debt to “CCC-” from “CCC,” and its subordinated debt to “CCC-” from “CCC.” At REV Holdings, S&P also lowered its senior secured debt rating to “CC” from “CCC-.”
This story first appeared in the February 18, 2003 issue of WWD. Subscribe Today.
BAGGING PROFITS: Jaclyn Inc. reported earnings of $799,000, or 30 cents a diluted share for the second quarter ended Dec. 31. That’s a swing back from the red in the year-ago period when the West New York, N.J.-based handbag and sports bag, apparel and accessory marketer recorded a net loss of $116,000, or 4 cents. Sales more than doubled, rising 127.9 percent to $35.7 million from $15.7 million last year. In a statement, chairman Allan Ginsburg said the improvement was due to the acquisition of Topsville in January 2002, as well as higher volume from the firm’s other divisions. For the first half, Jaclyn reported net income of $1.1 million, or 42 cents, as compared with last year’s loss of $63,000, or 2 cents. Sales shot up 98.7 percent to $65.6 million from $33.9 million a year ago. While Ginsburg warned that third -and fourth-quarter operating results might be lower than last year’s — partly because the Anne Klein license was not renewed last June — he does expect full-year 2003 results to be “substantially better” than last year.
BLACK WEDDING: Wedding apparel maker JLM Couture Inc. is back in the black with fourth-quarter profits of $84,761, or 4 cents a diluted share, a significant improvement over last year’s loss of $113,379, or 6 cents. Sales for the period ended Oct. 31 shot up 11.9 percent to $5.1 million from $4.5 million a year ago. In a statement, chief executive Joseph Murphy attributed the New York-based firm’s revenue growth to increased market penetration domestically and in Europe, particularly for the company’s bridesmaid collection. Overall, for the full fiscal year, the country’s only publicly traded wedding apparel firm said net income leapt by nearly two-thirds, or 66.4 percent, to $1.1 million, or 53 cents, from $666,363, or 34 cents, in 2001. Sales for the year increased 15.3 percent to $24.7 million from $21.4 million a year ago.