<PAGE>
Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): DECEMBER 4, 1996
---------------------
RENAISSANCE COSMETICS, INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 33-87280 06-1396287
- --------------------------------------------------------------------------------
(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
955 Massachusetts Avenue
Cambridge, Massachusetts 02139
- --------------------------------------------------------------------------------
(Address of Principal (Zip Code)
Executive Offices)
(617) 497-5584
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED. (Incorporated by reference)
1. Audited financial statements for MEM Company for the years ended
December 31, 1994 and 1995. (Incorporated by reference to MEM Company,
Inc.'s Annual Report filed on Form 10-K for the fiscal years ended
December 31, 1994 and December 31, 1995 (File No. 1-5292)).
2. Unaudited financial statements for MEM Company for the three quarters
ended September 30, 1996. (Incorporated by reference to MEM Company,
Inc.'s Quarterly Report filed on Form 10-Q for the fiscal quarter
ended September 30, 1996 (File No. 1-5292)).
(b) PRO FORMA FINANCIAL INFORMATION (Included herein)
1. Unaudited pro forma consolidated statement of operations data
for the year ended March 31, 1996
2. Unaudited pro forma consolidated statement of operations data
for the six months ended September 30, 1996
3. Unaudited pro forma consolidated balance sheet data as of
September 30, 1996
2
<PAGE>
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS DATA
FOR THE FISCAL YEAR ENDED MARCH 31, 1996
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
HISTORICAL
----------
COMPANY GAC MEM P&G BRANDS
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PRO FORMA(b)
MARCH 31, DECEMBER 31, DECEMBER 31, JUNE 30, ------------
1996 1995(a) 1995(a) 1996(a) ADJUSTMENTS COMBINED
---------- ----------- ----------- ---------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
NET SALES............................. $131,286 $7,886 $44,825 $56,777 $ - $240,774
COST OF GOODS SOLD.................... 51,169 4,538 25,618 22,787 (1,309)(c) 102,803
-------- ------ ------- ------- -------- --------
GROSS PROFIT.......................... 80,117 3,348 19,207 33,990 1,309 137,971
OPERATING EXPENSES:
Selling............................. 52,781 838 14,742 24,374 (1,256)(d) 91,479
General and administrative.......... 13,679 617 5,215 2,199 (550)(e) 21,160
Amortization of intangible and
other assets...................... 5,207 224 478 - 2,547 (f) 8,456
-------- ------ ------- ------- -------- --------
Total operating expenses.......... 71,667 1,679 20,435 26,573 741 121,095
-------- ------ ------- ------- -------- --------
OPERATING INCOME (LOSS)............... 8,450 1,669 (1,228) 7,417 568 16,876
INTEREST EXPENSE (INCOME):
Interest expense.................... 19,458 8 1,773 - (4,159)(g) 17,080
Interest and other income........... (255) - (19) - (274)
-------- ------ ------- ------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES..... (10,753) 1,661 (2,982) 7,417 4,727 70
INCOME TAX PROVISION.................. 1,304 609 - - 1,671 (h) 3,584
-------- ------ ------- ------- -------- --------
INCOME (LOSS) BEFORE EXTRAORDINARY
ITEMS............................... (12,057) 1,052 (2,982) 7,417 3,056 (3,514)
PREFERRED STOCK DIVIDENDS............. 1,333 - - - 18,169 (i) 19,502
-------- ------ ------- ------- -------- --------
INCOME (LOSS) BEFORE EXTRAORDINARY
ITEMS APPLICABLE TO COMMON
STOCKHOLDERS........................ $(13,390) $1,052 $(2,982) $ 7,417 $(15,113) $(23,016)
-------- ------ ------- ------- -------- --------
-------- ------ ------- ------- -------- --------
INCOME (LOSS) BEFORE EXTRAORDINARY
ITEMS PER COMMON SHARE.............. $ (18.62) $ (27.96)
-------- --------
-------- --------
WEIGHTED AVERAGE SHARES OUTSTANDING... 719,138 823,056 (j)
-------- --------
-------- --------
</TABLE>
See accompanying Notes to Unaudited Pro Forma Consolidated Statement
of Operations Data.
3
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONSOLIDATED STATEMENT OF OPERATIONS DATA
FOR THE FISCAL YEAR ENDED MARCH 31, 1996
(DOLLARS IN THOUSANDS)
(a) GAC and MEM each had a fiscal year that ended on December 31. P&G has a
fiscal year that ends on June 30.
(b) Does not reflect severance and stay bonus payments and payments in
respect of the ERISA withdrawal liability, all incurred in connection
with the MEM Acquisition, which expenses are expected to be capitalized.
(c) Reflects the Company's estimate of the following adjustments to cost of
goods sold relating to the MEM Acquisition, primarily resulting from the
consolidation of duplicative manufacturing facilities:
Identified U.S. personnel terminations............... $(1,437)
Identified Canadian personnel terminations........... (284)
Corresponding incremental additions to personnel
at the Company's Mountaintop facility............... 412
-------
Total........................................... $(1,309)
(d) Reflects the Company's estimate of the following adjustments to selling
expenses relating to the MEM Acquisition, primarily resulting from the
consolidation of duplicative sales forces:
Identified U.S. personnel terminations............... $(1,656)
Identified Canadian personnel terminations........... --
Corresponding incremental additions to personnel
at the Company's Dana subsidiary.................... 400
-------
Total........................................... $(1,256)
(e) Reflects the Company's estimate of the following adjustments to general
and administrative expenses relating to the MEM Acquisition, primarily
resulting from the consolidation of duplicative corporate staffs:
Identified U.S. personnel terminations............... $ (980)
Identified Canadian personnel terminations........... (133)
Corresponding incremental additions to personnel
at the Company's Mountaintop facility............... 563
-------
Total........................................... $ (550)
(f) Reflects the following adjustments to amortization of intangible and
other assets(1):
Amortization of excess of assets acquired over
liabilities assumed--GAC............................ $ 784
Amortization of excess of assets acquired over
liabilities assumed--MEM............................ 808
Amortization of excess of assets acquired over
liabilities assumed--P&G Brands..................... 1,657
Elimination of historical amortization--GAC.......... (224)
Elimination of historical amortization--MEM.......... (478)
-------
Total........................................... $2,547
- -----------
(1) While the Company has yet to complete the final allocation of the excess
cost over net assets acquired to the specific assets acquired, based on
its preliminary estimate, the Company believes that the excess will be
allocated principally to trademarks and goodwill, which will be
amortized over an average of 20 years. The preliminary estimate of the
excess of assets acquired over liabilities assumed does not reflect
certain assumed liabilities which have not been quantified as of the
date of this filing.
4
<PAGE>
(g) Reflects the following adjustments to interest expense:
Elimination of historical interest expense--GAC...... $ (8)
Elimination of historical interest expense--MEM...... (1,773)
Elimination of historical interest expense--Nomura
Holding America Credit Facility ("Old Credit
Facility").......................................... (5,948)
Elimination of amortization of deferred financing
costs--Old Credit Facility.......................... (1,157)
Interest Expense on Senior Secured Credit Facility... 3,525
Amortization of deferred financing fees on Senior
Secured Credit Facility............................. 1,202
-------
Total........................................... $(4,159)
(h) Reflects an adjustment to income taxes for a full year as if the
Acquisitions had occurred on April 1, 1995.
(i) Reflects dividends on the Series B Preferred Stock as if such shares had
been issued on April 1, 1995. The Company is currently offering to
exchange shares of its Senior Redeemable Preferred Stock, Series C
("Series C Preferred Stock"), for all outstanding shares of its Series B
Preferred Stock. The dividends on the Series C Preferred Stock will be
the same as the dividends on the Series B Preferred Stock.
(j) Includes 103,918 shares issued to purchasers in connection with the
Equity Financing, as if such shares were issued on April 1, 1995.
5
<PAGE>
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS DATA
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
HISTORICAL
----------
COMPANY
SIX MONTHS GAC MEM P&G BRANDS
ENDED PERIOD FROM SIX MONTHS SIX MONTHS PRO FORMA(b)
SEPTEMBER 30, APRIL 1, 1996 TO ENDED ENDED ------------
1996 AUGUST 20, SEPTEMBER 30, SEPTEMBER 30,
(AS RESTATED)(k) 1996 1996 1996(a) ADJUSTMENTS COMBINED
---------------- ---------------- ------------ ------------ ----------- --------
<S> <C> <C> <C> <C> <C> <C>
NET SALES..................... $ 77,710 $8,633 $17,655 $ 22,758 $ - $126,756
COST OF GOODS SOLD............ 28,754 3,057 11,102 8,640 (655)(c) 50,898
-------- ------ ------- ------- ------- --------
GROSS PROFIT.................. 48,956 5,576 6,553 14,118 655 75,858
OPERATING EXPENSES:
Selling..................... 30,653 1,692 6,064 7,098 (628)(d) 44,879
General and
administrative............ 10,071 1,306 3,250 824 (275)(e) 15,176
Amortization of intangible
and other assets.......... 3,122 87 238 - 1,300 (f) 4,747
-------- ------ ------- ------- ------- --------
Total operating
expenses................ 43,846 3,085 9,552 7,922 397 64,802
-------- ------ ------- ------- ------- --------
OPERATING INCOME (LOSS)....... 5,110 2,491 (2,999) 6,196 258 11,056
INTEREST EXPENSE (INCOME):
Interest expense............ 10,838 46 811 - (2,993)(g) 8,702
Interest and other income... (735) (7) (692) - - (1,434)
-------- ------ ------- ------- ------- --------
INCOME (LOSS) BEFORE INCOME
TAXES....................... (4,993) 2,452 (3,118) 6,196 3,251 3,788
INCOME TAX PROVISION.......... 308 836 - - 1,115(h) 2,259
-------- ------ ------- ------- ------- --------
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEMS......... (5,301) 1,616 (3,118) 6,196 2,136 1,529
PREFERRED STOCK DIVIDENDS..... 5,060 - - - 5,891 (i) 10,951
-------- ------ ------- ------- ------- --------
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEMS
APPLICABLE TO COMMON
STOCKHOLDERS................ $(10,361) $1,616 $(3,118) $ 6,196 $(3,755) $ (9,422)
-------- ------ ------- ------- ------- --------
-------- ------ ------- ------- ------- --------
INCOME (LOSS) BEFORE..........
EXTRAORDINARY ITEMS PER
COMMON SHARE................ $ (14.08) $ (11.42)
-------- --------
-------- --------
WEIGHTED AVERAGE SHARES
OUTSTANDING................. 735,648 825,086 (j)
-------- --------
-------- --------
</TABLE>
See accompanying Notes to Unaudited Pro Forma Consolidated Statement of
Operations Data.
6
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONSOLIDATED STATEMENT OF OPERATIONS DATA
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
(DOLLARS IN THOUSANDS)
(a) Due to the lack of available information for the P&G Brands, the results
of operations for the P&G Brands for the six months ended September 30,
1996 are assumed to be 200% of the results of operations for the three
months ended September 30, 1996.
(b) Does not reflect severance and stay bonus payments and payments in
respect of the ERISA withdrawal liability, all incurred in connection
with the MEM Acquisition, which expenses are expected to be capitalized.
(c) Reflects the Company's estimate of the following adjustments to cost of
goods sold relating to the MEM Acquisition, primarily resulting from the
consolidation of duplicative manufacturing facilities:
Identified U.S. personnel terminations . . . . . . . . . . $ (719)
Identified Canadian personnel terminations . . . . . . . . (142)
Corresponding incremental additions to personnel at the
Company's Mountaintop facility. . . . . . . . . . . . . . 206
-------
Total. . . . . . . . . . . . . . . . . . . . . . . . $ (655)
------
------
(d) Reflects the Company's estimate of the following adjustments to selling
expenses relating to the MEM Acquisition, primarily resulting from the
consolidation of duplicative sales forces:
Identified U.S. personnel terminations . . . . . . . . . . $ (828)
Identified Canadian personnel terminations . . . . . . . . --
Corresponding incremental additions to personnel at the
Company's Dana subsidiary . . . . . . . . . . . . . . . . 200
------
Total. . . . . . . . . . . . . . . . . . . . . . . . $ (628)
------
------
(e) Reflects the Company's estimate of the following adjustments to general
and administrative expenses relating to the MEM Acquisition, primarily
resulting from the consolidation of duplicative corporate staffs:
Identified U.S. personnel terminations . . . . . . . . . . $ (490)
Identified Canadian personnel terminations . . . . . . . . (67)
Corresponding incremental additions to
personnel at the Company's Mountaintop facility . . . . . 282
------
Total. . . . . . . . . . . . . . . . . . . . . . . . $ (275)
------
------
(f) Reflects the following adjustments to amortization of intangible and other
assets(1):
Amortization of excess of assets
acquired over liabilities assumed -- GAC. . . . . . . . . $ 392
Amortization of excess of assets acquired over
liabilities assumed -- MEM. . . . . . . . . . . . . . . . 404
Amortization of excess of assets
acquired over liabilities assumed -- P&G Brands . . . . . 829
Elimination of historical amortization -- GAC. . . . . . . (87)
Elimination of historical amortization -- MEM. . . . . . . (238)
------
Total. . . . . . . . . . . . . . . . . . . . . . . . $1,300
- ------------
(1) While the Company has yet to complete the final allocation of the
excess cost over net assets acquired to the specific assets acquired,
based on its preliminary estimate, the Company believes that the excess
will be allocated principally to trademarks and
7
<PAGE>
goodwill, which will be amortized over an average of 20 years. The
preliminary estimate of the excess of assets acquired over liabilities
assumed does not reflect certain assumed liabilities which have not
been quantified as of the date of this filing.
(g) Reflects the following adjustments to interest expense:
Elimination of historical interest expense -- GAC . . . . . . $ (46)
Elimination of historical interest expense -- MEM . . . . . . (811)
Elimination of historical interest expense -- Old Credit
Facility . . . . . . . . . . . . . . . . . . . . . . . . . . (3,830)
Elimination of amortization of deferred financing costs --
Old Credit Facility. . . . . . . . . . . . . . . . . . . . . (579)
Interet Expense -- Senior Secured Credit Facility . . . . . . 1,672
Amortization of deferred financing costs -- Senior Secured
Credit Facility. . . . . . . . . . . . . . . . . . . . . . . 601
-------
Total . . . . . . . . . . . . . . . . . . . . . . . . . $(2,993)
- ------------
(h) Reflects an adjustment to income taxes for the six month period as if the
Acquisitions had occurred on April 1, 1996.
(i) Reflects dividends on the Series B Preferred Stock as if such shares had
been issued on April 1, 1996. The Company is currently offering to
exchange shares of its Series C Preferred Stock for all outstanding
shares of its Series B Preferred Stock. The dividends on the Series C
Preferred Stock will be the same as the dividends on the Series B
Preferred Stock.
(j) Includes 103,918 shares issued to purchasers in connection with the Equity
Financing, as if such shares were issued on April 1, 1996.
(k) In January 1997, the Company determined that its previously-reported
results of operations for the six months ended September 30, 1996
required restatement in order to properly reflect the timing of certain
sales.
8
<PAGE>
UNAUDITED CONSOLIDATED PRO FORMA BALANCE SHEET DATA
AS OF SEPTEMBER 30, 1996
(DOLLARS IN THOUSANDS)
<TABLE>
HISTORICAL
--------------------------------
COMPANY
SEPTEMBER 30, MEM
1996 SEPTEMBER 30,
ASSETS (AS RESTATED)(k) 1996 ADJUSTMENTS PRO FORMA
---------------- ---- ----------- ---------
<S> <C> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents. . . . . $ 69,523 $469 $(22,704)(a) $ 47,288
Marketable securities. . . . . . . 242 -- -- 242
Accounts receivable-net. . . . . . 47,209 12,966 -- 60,175
Inventories. . . . . . . . . . . . 39,982 18,038 8,000 (b) 66,020
Prepaid expenses and other
current assets. . . . . . . . . . 7,300 987 -- 8,287
-------- ------- -------- --------
Total current assets . . . . 164,256 32,460 (14,704) 182,012
PROPERTY, PLANT AND EQUIPMENT-Net. . 14,536 4,667 -- 19,203
DEFERRED FINANCING COSTS-Net . . . . 7,128 -- 4,011 (c) 11,139
OTHER ASSETS-Net . . . . . . . . . . 11,589 537 -- 12,126
INTANGIBLE ASSETS-Net. . . . . . . . 91,045 9,741 39,556 (d) 140,342
-------- ------- --------
TOTAL ASSETS . . . . . . . . . . . . $288,554 $47,405 $ 28,863 $364,822
-------- ------- -------- --------
-------- ------- -------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term
debt. . . . . . . . . . . . . . . $ -- $ 1,554 $ (1,554)(e) $ --
Notes payable. . . . . . . . . . . 54,200 15,880 (70,080)(f) --
Accounts payable . . . . . . . . . 13,911 5,179 -- 19,090
Accrued expenses . . . . . . . . . 19,385 2,576 5,502 (g) 27,463
-------- ------- --------
Total current liabilities. . . 87,496 25,189 (66,132) 46,553
LONG-TERM LIABILITIES:
Long-term debt, excluding
current maturities. . . . . . . . 67,492 2,047 (2,047)(e) 67,492
Senior Secured Credit Facility . . -- -- 117,500 (h) 117,500
Notes offered hereby . . . . . . . -- -- -- --
Minimum royalty obligation . . . . 4,918 -- -- 4,918
-------- ------- --------
Total long-term liabilities. . 72,410 2,047 115,453 189,910
-------- ------- --------
TOTAL LIABILITIES. . . . . . . . . . 159,906 27,236 49,321 236,463
COMMITMENTS AND CONTINGENCIES
SENIOR REDEEMABLE PREFERRED STOCK. . 78,321 -- -- 78,321
REDEEMABLE PREFERRED STOCK . . . . . 12,411 -- -- 12,411
COMMON STOCKHOLDERS' EQUITY:
Common stock . . . . . . . . . . . 8 150 (150)(i) 8
Notes receivable from sale of
common stock. . . . . . . . . . . (518) -- -- (518)
Additional paid-in capital . . . . 69,403 3,090 (3,090)(i) 69,403
Treasury stock, at cost. . . . . . (210) (4,489) 4,489 (i) (210)
Retained earnings (deficit). . . . (29,925) 21,851 (22,140)(j) (30,214)
Cumulative translation
adjustment. . . . . . . . . . . . (842) (433) 433 (i) (842)
-------- ------- -------- --------
Total common stockholders'
equity. . . . . . . . . . . . 37,916 20,169 (20,458) 37,627
-------- ------- -------- --------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY . . . . . . . . . . . . . . $288,554 $47,405 $ 28,863 $364,822
-------- ------- -------- --------
-------- ------- -------- --------
</TABLE>
See accompanying Notes to Unaudited Consolidated Pro Forma Balance Sheet Data.
9
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED PRO FORMA
BALANCE SHEET DATA
AS OF SEPTEMBER 30, 1996
(DOLLARS IN THOUSANDS)
(a) Reflects the following adjustments to cash and cash equivalents:
<TABLE>
<S> <C>
Gross proceeds from the Senior Secured Credit Facility . . . . . . . $ 117,500
Repayment of the Old Credit Facility, including accrued
interest thereon . . . . . . . . . . . . . . . . . . . . . . . . . (54,776)
Cash portion of purchase price of MEM, including transaction fees
and expenses(1). . . . . . . . . . . . . . . . . . . . . . . . . . (20,507)
Cash portion of purchase price of P&G Brands . . . . . . . . . . . . (41,140)
Repayment of MEM indebtedness at September 30, 1996(2) . . . . . . . (19,481)
Deferred financing costs -- Senior Secured Credit Facility . . . . . (4,300)
---------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (22,704)
---------
---------
</TABLE>
- ----------
(1) Includes cash paid at the closing of the MEM Acquisition of $20,197 and
additional estimated transaction fees and expenses of approximately $310.
(2) Repayment of debt of $19,481 reflects debt outstanding at September 30,
1996. The actual debt repaid at the closing was $18,060.
(b) Reflects the portion of the cash purchase price of the P&G Acquisition
allocated to inventory, subject to adjustment based on actual inventory
acquired, which will be determined subsequent to the closing.
(c) Reflects the following adjustments to deferred financing costs:
<TABLE>
<S> <C>
Deferred financing costs -- Senior Secured Credit Facility . . . $4,300
Write-off of deferred financing costs -- Old Credit Facility . . (289)
------
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,011
------
------
</TABLE>
(d) Reflects the allocation of the excess cost over net assets acquired of MEM
and the P&G Brands as follows(1):
<TABLE>
<S> <C>
Cash portion of purchase price of MEM, including transaction fees
and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,507
Cash portion of purchase price of P&G Brands . . . . . . . . . . . . . 41,140
--------
Total cash portion of purchase price. . . . . . . . . . . . . . . 61,647
Less: Pro forma value of net tangible assets acquired. . . . . . . . . (12,350)
--------
Unallocated excess of purchase price over net tangible assets
acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,297
Less: Historical intangible assets . . . . . . . . . . . . . . . . . . (9,741)
--------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 39,556
--------
--------
</TABLE>
- ----------
(1) While the Company has yet to complete the final allocation of the excess
cost over net assets acquired to the specific assets acquired based on
its preliminary estimate, the Company believes that the excess will be
allocated principally to trademarks and goodwill, which will be amortized
over an average of 20 years. The preliminary estimate of the excess of
assets acquired over liabilities assumed does not reflect certain assumed
liabilities which have not been quantified as of the date of this filing.
(e) Reflects the repayment of a portion of MEM indebtedness at September 30,
1996. See notes (a)(2) above and (f) below.
(f) Reflects the following adjustments to notes payable:
Repayment of the Old Credit Facility, excluding accrued
interest thereon . . . . . . . . . . . . . . . . . . . . $ (54,200)
Repayment of a portion of MEM indebtedness . . . . . . . . (15,880)
---------
Total . . . . . . . . . . . . . . . . . . . . . . . . $ (70,080)
10
<PAGE>
(g) Reflects the following adjustments to accrued expenses:
<TABLE>
<S> <C>
Termination of multi-employer pension plan -- MEM plant closing(1) . . $3,400
Severance and stay bonuses -- MEM plant closing. . . . . . . . . . . . 2,678
Elimination of accrued interest -- Old Credit Facility . . . . . . . . (576)
------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,502
</TABLE>
- ----------
(1) Estimate based on currently available information for a 1996 withdrawal.
The Company has been advised that the liability for a 1997 withdrawal
would be higher.
(h) Reflects the gross proceeds from the Senior Secured Credit Facility.
(i) Reflects the elimination of MEM's historical equity accounts.
(j) Reflects the following adjustments to retained earnings (deficit):
<TABLE>
<S> <C>
Elimination of MEM historical retained earnings. . . . . . . . . $ (21,851)
Write-off of deferred financing costs -- Old Credit Facility . . (289)
---------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (22,140)
</TABLE>
(k) In January 1997, the Company determined that its previously-reported
balance sheet data as of September 30, 1996 required restatement in order
to properly reflect the timing of certain sales.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RENAISSANCE COSMETICS, INC.
(Registrant)
/s/ John R. Jackson
---------------------------------------
Date: February 18, 1997 By: John R. Jackson
Title: Vice President and General Counsel
12
