SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 - For the quarter ended September 30, 1999.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
Commission file number 333-07429
Remington Products Company, L.L.C.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 06-1451076
- ------------------------- ---------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
60 Main Street, Bridgeport, Connecticut 06604
- --------------------------------------- ---------------
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code: (203) 367-4400
--------------
Securities registered pursuant to Section 12(b) of the Act:
Title of Each class Name of each exchange on which registered
------------------- -----------------------------------------
None None
Securities registered pursuant to Section 12(g) of the Act:
11% Series B Senior Subordinated Notes due 2006
-----------------------------------------------
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x/ No _____
<PAGE>
REMINGTON PRODUCTS COMPANY, L.L.C.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1999
INDEX
<TABLE>
<CAPTION>
<S> <C> <C>
PAGE
PART I. FINANCIAL INFORMATION
Item I. Financial Statements (unaudited):
Consolidated Balance Sheets -
September 30, 1999 and December 31, 1998 3
Consolidated Statements of Operations -
For the three and nine months ended September 30, 1999 and 1998 4
Consolidated Statements of Cash Flows -
For the nine months ended September 30, 1999 and 1998 5
Notes to Unaudited Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures about Market Risk 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 14
Signature 14
</TABLE>
-2-
<PAGE>
Remington Products Company, L.L.C.
Consolidated Balance Sheets
(unaudited in thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
-------------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,268 $ 4,249
Accounts receivable, less allowance for doubtful accounts
of $2,294 in 1999 and $2,749 in 1998 57,965 59,998
Inventories 82,071 50,163
Prepaid and other current assets 4,311 1,879
----------- ----------
Total current assets 148,615 116,289
Property, plant and equipment, net 12,849 13,135
Intangibles, net 57,093 58,573
Other assets 7,036 7,730
----------- ----------
Total assets $ 225,593 $ 195,727
=========== ==========
LIABILITIES AND MEMBERS' DEFICIT
Current Liabilities:
Accounts payable $ 22,428 $ 15,981
Short-term borrowings 5,689 5,192
Current portion of long-term debt 1,558 1,842
Accrued liabilities 21,921 24,980
----------- ----------
Total current liabilities 51,596 47,995
Long-term debt 213,058 180,634
Other liabilities 1,311 1,839
Members' deficit:
Members' deficit (36,406) (31,473)
Accumulated other comprehensive income (3,966) (3,268)
----------- ----------
Total members' deficit (40,372) (34,741)
----------- ----------
Total liabilities and members' deficit $ 225,593 $ 195,727
=========== ==========
</TABLE>
See notes to unaudited consolidated financial statements.
-3-
<PAGE>
Remington Products Company, L.L.C.
Consolidated Statements of Operations
(unaudited in thousands)
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
1999 1998 1999 1998
-------- -------- --------- ----------
<S> <C> <C> <C> <C>
Net sales $ 73,050 $ 60,614 $176,073 $152,499
Cost of sales 40,993 35,948 99,105 90,257
-------- -------- --------- ----------
Gross profit 32,057 24,666 76,968 62,242
Selling, general and administrative 23,017 19,300 65,072 56,987
Amortization of intangibles 504 496 1,494 1,459
Restructure and reorganization charge - - - 6,531
-------- -------- --------- ----------
Operating income (loss) 8,536 4,870 10,402 (2,735)
Interest expense 5,460 5,198 15,531 15,077
Other expense (income) 193 474 126 597
-------- -------- --------- ----------
Income (loss) before income taxes 2,883 (802) (5,255) (18,409)
Provision (benefit) for income taxes 30 (139) (322) (789)
-------- -------- --------- ------------
Net income (loss) $ 2,853 $ (663) $ (4,933) $(17,620)
======== ======== ========= =========
Net income (loss) applicable to
common units $ 169 $(3,048) $(12,753) $(24,568)
======== ======== ========= =========
</TABLE>
See notes to unaudited consolidated financial statements.
-4-
<PAGE>
Remington Products Company, L.L.C.
Consolidated Statements of Cash Flows
(unaudited in thousands)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1999 1998
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net loss $(4,933) $(17,620)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation 2,536 2,348
Amortization of intangibles 1,494 1,459
Amortization of deferred financing fees 995 829
Restructuring and reorganization charge - 6,531
Inventory markdown - 1,456
Deferred income taxes (32) (669)
Foreign currency forward (gain) loss 105 (59)
--------- ---------
165 (5,725)
Changes in assets and liabilities:
Accounts receivable 2,033 12,017
Inventories (31,908) (10,087)
Accounts payable 6,447 753
Accrued liabilities (4,276) (8,532)
Other, net (1,485) (3,005)
--------- ---------
Cash used in operating activities (29,024) (14,579)
--------- ---------
Cash flows used in investing activities:
Capital expenditures (2,312) (2,990)
--------- ---------
Cash flows from financing activities:
Net borrowings (repayments) under term loan facilities 13,739 (1,032)
Net borrowings under credit facilities 18,584 16,706
Equity repurchases - (242)
Other, net (923) 19
--------- ---------
Cash provided by financing activities 31,400 15,451
--------- ---------
Effect of exchange rate changes on cash (45) 110
Increase (decrease) in cash and cash equivalents 19 (2,008)
Cash and cash equivalents, beginning of period 4,249 5,408
--------- ---------
Cash and cash equivalents, end of period $ 4,268 $ 3,400
========= =========
Supplemental cash flow information:
Interest paid $ 10,632 $ 10,580
Income taxes paid, net $ (17) $ 2,028
</TABLE>
See notes to unaudited consolidated financial statements.
-5-
<PAGE>
Remington Products Company, L.L.C.
Notes to Unaudited Consolidated Financial Statements
1. Basis of Presentation
The statements have been prepared by the Company without audit, pursuant
to the rules and regulations of the Securities and Exchange Commission and
according to generally accepted accounting principles, and reflect all
adjustments consisting of normal recurring accruals which, in the opinion of
management, are necessary for a fair statement of the results of the interim
periods presented. These financial statements do not include all disclosures
associated with annual financial statements and, accordingly, should be read in
conjunction with the notes contained in the Company's audited consolidated
financial statements for the year ended December 31, 1998.
2. Inventories
Inventories were comprised of the following (in thousands):
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
------------- -------------
<S> <C> <C>
Finished goods $ 79,365 $ 46,454
Work in process and raw materials 2,706 3,709
---------- ---------
$ 82,071 $ 50,163
========== =========
</TABLE>
3. Income Taxes
Federal income taxes on net earnings of the Company are payable directly
by the members pursuant to the Internal Revenue Code. Accordingly, no provision
has been made for Federal income taxes for the Company. However, certain state
and local jurisdictions do not recognize L.L.C. status for taxing purposes and
require taxes to be paid on net earnings. Furthermore, earnings of certain
foreign operations are taxable under local statutes. In jurisdictions where
L.L.C. status is not recognized or foreign corporate subsidiaries exist,
deferred taxes on income are provided for as temporary differences between the
financial and tax basis of assets and liabilities.
-6-
<PAGE>
4. Commitments and Contingencies
The Company is involved in legal and administrative proceedings and claims
of various types. While any litigation contains an element of uncertainty,
management believes that the outcome of each such proceeding or claim which is
pending or known to be threatened, or all of them combined, will not have a
material adverse effect on the Company's consolidated financial position or
results of operations.
5. Restructure and Reorganization
In the second quarter of 1998, the Company announced a plan to restructure
its Connecticut shaver assembly and warehousing operations ("the Plan"). The
Plan consisted of relocating the shaver assembly operations to an existing
Remington partner-vendor located in Asia and relocating the warehousing function
to a third party provider in California. The Plan resulted in affecting the
employment of approximately 235 employees located at the Company's two
Connecticut facilities, the majority of which were factory employees. During
1998, the Company recorded total non-recurring charges of $9.6 million related
to the Plan, of which $6.8 million was charged to restructuring and
reorganization and $2.8 million was charged to cost of sales related to
inventory write-downs associated with the Plan.
In the fourth quarter of 1998, the Company substantially completed the
relocation of the Connecticut shaver assembly to Asia, and the relocation of the
Connecticut warehousing facility to a third party in California. In December
1998, the Company terminated substantially all of the affected employees, and
the remaining severance and other benefit costs have been paid out through the
third quarter of 1999. As of December 31, 1998, the Company terminated its lease
obligations with respect to certain equipment and machinery utilized in the
factory and warehouse, however, the Company continued to pay non-cancelable
lease obligations for its Connecticut warehouse facility through the end of
third quarter 1999. Cash outlays in the first nine months of 1999 totalled
approximately $2.2 million, related to severance and benefit costs and lease
obligations. As of September 30, 1999 the accrual for restructure and
reorganization was fully utilized.
6. Comprehensive Income
Comprehensive income is defined as the change in equity of a business
enterprise during a period from transactions and other events and circumstances
from non-owner sources.
Comprehensive income consists of the following (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1999 1998 1999 1998
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net income (loss) per consolidated financial
statements $2,853 $ (663) $(4,933) $(17,620)
Other comprehensive income:
Foreign currency translation adjustments 99 (810) (114) (1,090)
Cumulative effect of adoption of SFAS 133 (105) (105)
Net unrealized hedging loss (787) (345) (584) (345)
------ -------- -------- ---------
Comprehensive income (loss) $2,165 $(1,923) $(5,631) $(19,160)
====== ======== ======== =========
</TABLE>
-7-
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
General
The Company is a leading developer and marketer of men's and women's
electrical personal care appliances, including men's and women's electric
shavers and accessories, women's personal care appliances including hairsetters,
hair dryers and curling irons, men's electric grooming products, and other small
electric consumer appliances. The Company distributes its men's and women's
electrical personal care appliances through its three operating segments which
are comprised of 1) the North America segment, which sells product through
mass-merchant retailers, department stores and drug chains in the United States
and Canada, 2) the International segment, which sells product through an
international network of subsidiaries and distributors, and 3) the U.S. Service
Stores segment comprised of more than 90 Company-owned and operated service
stores.
Sales of the Company's products are highly seasonal, with a large percentage
of net sales occurring during the Christmas selling season. The Company
typically derives more than 40% of its annual net sales in the fourth quarter of
each year while the first quarter of each year is generally the Company's
weakest quarter. As a result of this seasonality, the Company's inventory and
working capital needs fluctuate substantially during the year.
Results of Operations
The following table sets forth the Company's unaudited consolidated
statements of operations, including net sales and operating income by its North
America, International and U.S. Service Stores operating segments, as well as
the Company's consolidated results of operations as a percentage of net sales
for the three months and nine months ended September 30, 1999 and 1998.
-8-
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
---------------------------------------- ---------------------------------------
1999 1998 1999 1998
-------------- -------------- --------------- ----------------
$ % $ % $ % $ %
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C. Net Sales:
North America $ 34.4 47.1 $ 26.5 43.7 $ 83.1 47.2 $70.4 46.2
International 29.3 40.0 25.2 41.6 65.9 37.4 57.3 37.5
U.S. Service Stores 9.4 12.9 8.9 14.7 27.1 15.4 24.8 16.3
------- ------- ------- ------- ------- ------ -------- ------
73.1 100.0 60.6 100.0 176.1 100.0 152.5 100.0
Cost of sales 41.0 56.1 35.9 59.2 99.1 56.3 90.3 59.2
------- ------- ------- ------- ------- ------ -------- ------
Gross profit 32.1 43.9 24.7 40.8 77.0 43.7 62.2 40.8
Selling, general and
administrative 23.1 31.5 19.3 31.8 65.1 37.0 57.0 37.4
Amortization of intangibles 0.5 0.7 0.5 1.5 0.9 1.4 0.9
0.8
Restructure and - - - - - - 6.5 4.3
------- ------- ------- ------- ---------- --------- --------- ------
Reorganization
Operating income (loss):
North America 6.8 9.3 3.5 5.8 9.8 5.5 6.5 4.2
International 2.6 3.6 2.2 3.6 4.0 2.3 1.8 1.2
U.S. Service Stores 0.5 0.7 0.5 0.8 0.6 0.3 0.8 0.5
Depreciation and (1.3) (2.0) (2.5)
amortization (1.4) (1.9) (4.0) (2.3) (3.8)
Restructure and - - - - - - (4.3)
reorganization (6.5)
Inventory markdowns - - - - - - (1.5) (0.9)
------- ------- ------- ------- --------- --------- -------- ------
Total operating income (loss) 8.5 11.7 4.9 8.2 10.4 5.8 (2.7) (1.8)
Interest expense 5.4 7.5 5.2 8.6 15.5 8.8 15.1 9.9
Other expense (income) 0.2 0.3 0.5 0.8 0.1 - 0.6 0.4
------- ------- ------- ------- --------- --------- --------- ------
Income (loss) before income
taxes 2.9 3.9 (0.8) (1.2) (5.2) (3.0) (18.4) (12.1)
Provision (benefit) for income
taxes - - (0.1) (0.2) (0.3) (0.2) (0.8) (0.5)
------- ------- -------- ------- --------- ------- ------- ----
Net income (loss) $ 2.9 3.9 $(0.7) (1.0) $ (4.9) (2.8) $(17.6) (11.6)
====== ======== ====== ======= ======= ====== ======= ======
</TABLE>
-9-
<PAGE>
Third Quarter Ended September 1999 Versus September 1998
Net Sales. Net sales for the quarter ended September 30, 1999 were $73.1
million, an increase of 20.6% compared to $60.6 million for the quarter ended
September 30, 1998. Sales were strong across most major product categories,
particularly personal care, women's shavers and men's grooming.
Net sales in North America were $34.4 million in the third quarter of 1999,
an increase of 29.8% compared to $26.5 million in the third quarter of 1998.
Sales increases in the quarter were attributable to personal care products,
particularly hair dryers, which benefited from new product introductions.
International net sales were $29.3 million in the third quarter of 1999, an
increase of 16.3% compared to $25.2 million in the third quarter of 1998. The
sales increase reflects good growth from all of the Company's major
international operations, primarily from sales of personal care products.
Currency impact on sales, due to exchange rate fluctuations, were minimal for
the third quarter.
Net sales through the Company's U.S. service stores increased 5.6% to $9.4
million in the third quarter of 1999 from $8.9 million in the third quarter of
1998. The increase is primarily due to same store sales increases of
approximately 5% for the quarter, as incremental sales from additional stores
was mostly offset by the closing of ten stores that were located in the Fedco
store chain in California, which ceased operations in August.
Gross Profit. Gross profit increased to $32.1 million, or 43.9% of net
sales in the third quarter of 1999, compared to $24.7 million, or 40.8% of net
sales in the third quarter of 1998, despite negative currency impacts. The 1999
increase is due to higher margins, primarily from cost savings associated with
the restructuring and reorganization as well as higher margins on newer
products.
Selling, General and Administrative. Selling, general and administrative
expenses were $23.1 million, or 31.5% of net sales in the third quarter of 1999,
as compared to $19.3 million or 31.8% of net sales in 1998, as increased
distribution and promotion costs were offset by lower administrative costs, as a
percentage of sales.
Operating Income. The operating income in the third quarter of 1999
increased to $8.5 million compared to $4.9 million in the third quarter of 1998.
The increase is a result of higher sales and higher gross margins in the third
quarter 1999.
Interest Expense. Interest expense of $5.4 million for the third quarter of
1999 was higher than the $5.2 million in the third quarter of 1998 due to higher
average outstanding borrowings in 1999.
Income Tax (Benefit) Expense. The provision for income taxes was minimal
for the third quarter of 1999 compared to net benefit of $0.1 million in the
third quarter of 1998. The increase is the result of the increased profitability
of the Company's International business in 1999.
-10-
<PAGE>
Nine Months Ended September 1999 Versus September 1998
Net Sales. Net sales for the nine months ended September 30, 1999 were
$176.1 million, an increase of 15.5% compared to $152.5 million for the nine
months ended September 30, 1998. Sales increased in all major business segments.
North American sales increased 18.0% to $83.1 million for the first nine
months of 1999 compared to $70.4 million in the first nine months of 1998. New
product introductions in hair dryers and grooming resulted in significant
increased demand in these particular categories, while shaver sales were up on
the strength of the new rotary and women's shaver products.
Net sales in the international business were $65.9 million in 1999, an
increase of 15.0% compared to $57.3 million in 1998, despite slightly negative
currency impacts. Strong personal care sales and increased shaver sales were
prevalent in the major international markets.
Net sales through the Company's U.S. Service Stores increased 9.3% to
$27.1 million in 1999. The increase is due to new store growth and increases in
same store sales of 4% over 1998.
Gross Profit. Gross profit was $77.0 million, or 43.7% of sales for the
first nine months of 1999 compared to $62.2 million or 40.8% of net sales in the
first nine months of 1998. Included in 1998 cost of sales is $1.5 million
non-recurring charge for inventory markdowns in connection with the restructure
and reorganization of the Connecticut operations. Excluding this charge, the
gross profit percentage for the first nine months of 1998 would have been 41.8%.
Higher margins in 1999 are attributable to cost savings from the restructuring
and reorganization and product mix, with higher margins on newer products. These
increases were partially offset by negative currency impacts as inventory
purchases are made in U.S. dollars.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses were $65.1 million or 37% of net sales in 1999 compared
to $57.0 million, or 37.4% of net sales in 1998. Although investments in
distribution as well as selling and marketing expenses were higher in 1999, the
total as a percentage of sales was slightly lower in 1999 due to the incremental
sales volume.
Operating Income (Loss). For the nine months ended September 1999
operating income was $10.4 million compared to a $(2.7) million loss before
restructuring charges of $8.0 million in the first nine months of 1998. The
increased operating income is attributable to the increased sales, increased
gross margin percentages, as well as lower operating expenses as a percentage of
sales in 1999.
Restructure and Reorganization Charge. In the second quarter of 1998, the
Company recorded an $8.0 million charge in connection with restructuring its
Connecticut operations, of which $1.5 million was charged to cost of sales and
$6.5 million was charged to restructure and reorganization. These restructurings
resulted in the shutdown of the assembly operations at its Bridgeport,
Connecticut facility. Additionally, the Company closed its Milford, Connecticut
warehouse and relocated this function to Southern California.
-11-
<PAGE>
Interest Expense. Interest expense for the first nine months of 1999 was
$15.5 million compared to $15.1 million in the first nine months of 1998 due to
increased average outstanding borrowings in 1999.
Income Tax Benefit. The benefit for income taxes in 1999 was reduced to
$0.3 million from $0.8 million in 1998 as a result of lower pre-tax losses in
the U.K. operations.
Liquidity and Capital Resources
Net cash used in operating activities for the first nine months of 1999 was
$29.0 million versus $14.6 million during the first nine months of 1998. The
increase is primarily attributable to increased investments in inventories to
meet anticipated fourth quarter demand.
The Company's operations are not capital intensive. During the first nine
months of 1999 and 1998, the Company's capital expenditures totaled $2.3 million
and $3.0 million, respectively. Capital expenditures for 1999 are anticipated to
be approximately $3.5 million.
The Company borrowed approximately $18.6 million on various revolving credit
agreements and borrowed an additional $15.0 million under supplemental term
loans, net of repayment of $1.3 million. The increased borrowings helped to fund
the investment in inventory necessary to meet the increased sales levels.
The Company's primary sources of liquidity are funds generated from
operations and borrowings available pursuant to the Senior Credit Agreement. The
Senior Credit Agreement, as amended, provides for $70 million in Revolving
Credit Facilities, $10 million in Term Loans expiring on June 30, 2002,and $15
million of Supplemental Term Loans expiring on June 30, 2001. The Revolving
Credit Facilities, including $50 million in the U.S., are subject to a borrowing
base of 85% of eligible accounts receivable and 60% of eligible inventory. The
U.S. Revolving Credit Facility's borrowing base can be increased between March
15 and December 15 as needed up to $10 million over the applicable percentage of
eligible receivables and inventories (still limited to the $50 million total
U.S. facility). As of September 30, 1999, the Company was in compliance with all
covenants under the Senior Credit Agreement and availability under the Revolving
Credit Facilities was approximately $7.9 million. The Company believes that cash
generated from operations and borrowing resources will be adequate to permit the
Company to meet both its debt service requirements and capital requirements for
the next twelve months, although no assurance can be given in this regard.
Year 2000 Compliance
The Company continues to assess its exposure related to the impact of the
Year 2000 date issue. The Year 2000 date issue arises from the fact that many
computer programs use only two digits to identify a year in a date field. The
Company's key financial and operational systems have been reviewed, and the
majority of the systems did not require modifications. All required
modifications have been completed. Costs incurred to date are not material and
Management does not expect that any potential future costs will have a material
adverse impact on the Company's financial position, results of operations or
cash flows.
-12-
<PAGE>
The Company could be adversely impacted by the Year 2000 date issue if
suppliers, customers and other businesses do not address this issue
successfully. The Company has a formalized comprehensive supplier compliance
program in place, and responses from suppliers have been compiled and reviewed.
Based upon this analysis, Management does not believe that the Year 2000 issue
will cause the Company to experience any significant difficulty in obtaining
products. The Company has contacted its major customers and financial
institutions and has received assurances of Year 2000 compliance from a number
of those contacted. Based upon these responses and other inquiries, Management
believes that its major customers will be Year 2000 compliant. Management
continues to assess these risks in order to reduce the impact on the Company.
There can be no guarantee that the Company, its suppliers and customers
will not experience Year 2000 difficulties. Management believes that the most
likely negative effects, should any occur, could include disruptions in receipt
of product, shipments to customers, delays in the Company's receipt of payments
from customers, and delays in the ability to pay certain suppliers.
EURO Conversion
On January 1, 1999, eleven of fifteen member countries of the European Union
entered a three-year transition phase during which one common legal currency
(the "euro") was introduced. Beginning in January 2002, new euro-denominated
bills and coins will be issued, and local currencies will be removed from
circulation. Although the Company's international businesses affected by the
euro-conversion comprise less than 5% of the Company's annual net sales, the
Company has established various plans to address the issues raised by the euro
currency conversion. These issues include, among others, the need to adapt
computer and financial systems and business processes to accommodate
euro-denominated transactions and the impact of one common currency on pricing.
Based on its evaluation to date, Management believes that the introduction of
the euro, including total costs for the conversion, will not have a material
adverse impact on the Company's financial position, results of operations or
cash flows. The Company will continue to evaluate the impact of the euro
introduction.
Forward Looking Statements
This Management's Discussion and Analysis may contain forward-looking
statements which include assumptions about future market conditions, operations
and results. These statements are based on current expectations and are subject
to risks and uncertainties. They are made pursuant to safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Among the many factors
that could cause actual results to differ materially from any forward-looking
statements are the success of new product introductions and promotions, changes
in the competitive environment for the Company's product, changes in economic
conditions, foreign exchange risk and other factors discussed in prior
Securities and Exchange Commission filings by the Company. The Company assumes
no obligation to update these forward-looking statements or advise of changes in
the assumptions on which they were based.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
There are no material changes to the disclosure on this matter made in the
Company's report on Form 10-K for the year ended December 31, 1998.
-13-
<PAGE>
PART II OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule.
(b) Reports on Form 8-K
(i) During the quarter ended September 30, 1999, the Registrant did not
file any reports on Form 8- K.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
REMINGTON PRODUCTS COMPANY, L.L.C.
By: /s/ Kris J. Kelley
Kris J. Kelley, Vice President and Controller
Date: November 8, 1999
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0001017710
<NAME> REMINGTON PRODUCTS COMPANY L.L.C.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 4,268
<SECURITIES> 0
<RECEIVABLES> 57,965
<ALLOWANCES> 0
<INVENTORY> 82,071
<CURRENT-ASSETS> 148,615
<PP&E> 22,405
<DEPRECIATION> (9,556)
<TOTAL-ASSETS> 225,593
<CURRENT-LIABILITIES> 51,596
<BONDS> 213,058
0
0
<COMMON> 0
<OTHER-SE> (40,372)
<TOTAL-LIABILITY-AND-EQUITY> 225,593
<SALES> 176,073
<TOTAL-REVENUES> 176,073
<CGS> 99,105
<TOTAL-COSTS> 99,105
<OTHER-EXPENSES> 66,566
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,531
<INCOME-PRETAX> (5,255)
<INCOME-TAX> (322)
<INCOME-CONTINUING> (4,933)
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