The net loss in the second quarter was $12.2 million, compared to a net loss of $7.8 million in the second quarter of fiscal 2013. The Company recorded an income tax provision of $0.8 million in the second quarter of fiscal 2014 compared to a benefit of $5.9 million in the prior year's second quarter. This $6.7 million change in provision is primarily related to the fact that during the second quarter of fiscal 2014, the Company did not record any income tax benefit related to the operating losses and recognized income tax expense related to indefinite-lived intangible assets while in the second quarter of fiscal 2013 the Company recorded the income tax benefit of the operating lossesThe adjusted net loss in the quarter was $6.0 million, a decrease of $1.3 million from the adjusted net loss of $7.3 million in the second quarter of the prior year. See the discussion under "Supplemental Non-GAAP Disclosure" below for an explanation of adjusted net loss. The following table sets forth a reconciliation to Adjusted Net Loss from Net Loss:
|Net Loss Reconciliation ($ in millions, % of net sales)|
|Quarter Ended:||September 30, 2012||September 29, 2013|
|Net Loss||$ (7.8)||(4.9%)||$ (12.2)||(6.7%)|
|(+) Transaction expenses||2.8||1.7%||--||0.0%|
|(+) Transaction bonuses||1.0||0.6%||--||0.0%|
|(+) Management fees||0.7||0.4%||--||0.0%|
|(+) Non-recurring expenses||1.3||0.8%||1.4||0.8%|
|(+) Non-cash interest||0.6||0.4%||1.3||0.7%|
|(+) Equity compensation charge||0.0||0.0%||2.8||1.5%|
|(+) Income tax (benefit) expense||(5.9)||(3.7%)||0.8||0.4%|
|Adjusted Net Loss||$ (7.3)||(4.6%)||$ (6.0)||(3.3%)|
- The Company ended the quarter with approximately $77 million of liquidity, which included $59 million of cash and cash equivalents and $18 million in borrowing capacity under the senior credit facility.
- The Company incurred a non-cash tax charge of $0.8 million in the quarter compared to a tax benefit of $5.9 million in the second quarter of fiscal 2013. The non-cash tax charge for the full 2014 fiscal year is projected to be approximately $3.5 million.