"Most importantly, the four-point plan to maximize customer satisfaction, growth and profitability that we talked about at our Annual Meeting in June remains in place," continued Mr. Byrne. "We spoke of achieving sustainable organic revenue growth and we are moving in that direction, with the expectation that we will see continued sequential revenue improvement in the third quarter. Further, we are still projecting $15 million in annualized expense savings to be realized through the first half of 2014; however, because the completion of some of our cost initiatives were delayed into the third quarter, while our operating cash flow will improve considerably from the second quarter, we will not likely achieve our initial goal of positive operating cash flow in the third quarter. That said, overall we still expect a noticeable improvement in cost of sales, route and SG&A expenses in the second half of 2013 from the first half of the year, and we believe we are well on our way to simplifying and standardizing our business model, which will allow us to increase our margins in the second half of 2013 and improve our cash flow on a go-forward basis."
Second Quarter 2013 Results
For the three months ended June 30, 2013, Swisher Hygiene reported total revenue from continuing operations of $55.4 million, an 8% decrease from $60.2 million in the three months ended June 30, 2012 and a 6% sequential increase from $52.0 million in the three months ended March 31, 2013. The year-over-year revenue decline was primarily due to the loss of two large accounts in a previous quarter, along with customer turnover as Swisher integrated smaller acquired operations into its systems and changed their product lines and brands.
Total costs and expenses for the three months ended June 30, 2013 decreased 10% to $69.8 million, compared to $77.8 million in the three months ended June 30, 2012. Excluding $3.2 million of impairment, investigation, review-related and non-routine professional expenses in the three months ended June 30, 2013 and $9.5 million of investigation and review-related expenses in the three months ended June 30, 2012, total costs and expenses decreased 2% compared to the three months ended June 30, 2012.