Gross profit as a percentage of net sales was 22.7 percent for the first quarter of fiscal 2013 as compared to 21.3 percent for the same quarter in the prior year. Gross profit as a percentage of net sales in the 2013 first quarter reflects improvement in net price realization and a focus on reducing lower performing SKUs.
SG&A expense was $38.2 million during the first quarter of 2013, compared to $29.5 million in the same quarter in the prior year. Included in the first quarter are $11.8 million of certain SG&A expenses related primarily to audit committee investigation, restatement related expenses, consulting fees, retention, and severance. Excluding these expenses, non-GAAP adjusted SG&A was $26.4 million or 10.2 percent of net sales as compared to 9.5 percent in the prior year period.
Advertising expense was $9.0 million during the first quarter of fiscal 2013, compared to $12.7 million in the same quarter in the prior year. The reduction in advertising expenses was due to a shift in timing of advertising program spending from the first quarter into the remaining quarters of the fiscal year.
The Company recognized a $7.5 million loss on the Oaktree warrant in the quarter, primarily due to an increase in the Company's stock price at October 31, 2012 as compared to July 31, 2012.Net interest expense was $13.9 million in the first quarter of fiscal 2013 compared to $5.8 million in the same quarter in the prior year. The increase was primarily due to the interest rate increase on the Secured Credit Agreement and the new Oaktree debt. On a non-GAAP basis, the Company recorded a tax expense of $3.0 million in the first quarter of fiscal 2013, based on pre-tax non-GAAP income of $8.2 million. The non-GAAP tax expense reflects a federal and state blended rate applied to the non-GAAP pre-tax income for the quarter. On a GAAP basis, the effective tax rate was negative 6.1% for the first quarter of fiscal 2013.
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