Swisher Hygiene Announces Results for the Three and Six-Month Periods Ended June 30, 2012

Swisher Hygiene Announces Results for the Three and Six-Month Periods Ended June 30, 2012  CHARLOTTE, N.C., March 15, 2013 (GLOBE NEWSWIRE) -- Swisher Hygiene Inc. ("Swisher Hygiene") (Nasdaq:SWSH) (TSX:SWI), a leading provider of essential hygiene and sanitizing products and services, announced today that it has filed its Form 10-Q for the three and six-month periods ended June 30, 2012. All amounts in this news release are in United States dollars.  Second Quarter 2012 Highlights    *The Waste segment, which was sold on November 15, 2012, is reported as     discontinued operations for 2012.        *Total revenue from continuing operations of $60.2 million for the second     quarter of 2012, a 76% increase compared to the second quarter of     2011.Hygiene revenue from company-owned operations for the second quarter     of 2012, excluding acquisitions, increased 9% compared to the second     quarter of 2011.        *Adjusted EBITDA loss of $1.8 million for the second quarter of 2012 based     on a net loss from continuing operations of $18.0 million.For a     reconciliation of non-GAAP to GAAP measures, please review the disclosures     and table included with this release.        *Basic and diluted loss per share from continuing operations of $0.10 for     the second quarter of 2012, compared to basic and diluted loss per share     from continuing operations of $0.05 in the second quarter of 2011.  "Results during the second quarter of 2012 were materially affected by the investigation and review process, impacting our overall operations and contributing to significantly higher SG&A costs in the quarter," said Thomas Byrne, President and Chief Executive Officer of Swisher Hygiene."Despite the ongoing review process, we continued to see improvement in our route expense as a percentage of revenue through our initial route consolidation initiatives and, excluding expenses related to the investigation and review, we reduced our SG&A expense as a percentage of revenue by 740 basis points.We remain dedicated to serving our customers nationwide on a day-to-day basis with our comprehensive core chemical program as well as our complementary hygiene and sanitizing services."  "We are nearing the end of filing our outstanding financials, with only one more 2012 Form 10-Q remaining," continued Mr. Byrne."We aim to complete the filing of our third quarter 2012 Form 10-Q within the next few days, which will position us to file our 2012 Form 10-K during the month of April."  Second Quarter 2012 Results  For the three months ended June 30, 2012, Swisher Hygiene reported total revenue from continuing operations of $60.2 million, a 76% increase from $34.2 million in the three months ended June 30, 2011.Hygiene revenue from company-owned operations, excluding acquisitions, increased 9% compared to the three months ended June 30, 2011.  Total costs and expenses for the three months ended June 30, 2012 increased by 80% to $77.8 million, compared to $43.3 million in the three months ended June 30, 2011.Excluding the impact of acquisition and merger expenses in both periods, and $9.5 million of investigation and review-related expenses in the three months ended June 30, 2012, total costs and expenses increased 9% compared to the three months ended June 30, 2011.  For the three months ended June 30, 2012 and 2011, respectively:                                                                Q2 2012 Q2 2011 Cost of sales as a % of revenue                               44.6%   38.4% Route expense as a % of revenue                                16.9%   22.2% SG&A expense as a % of revenue                                 59.1%   50.7% SG&A expense (excluding investigation and review-related       43.3%   50.7% expenses) as a % of revenue  The increase in cost of sales as a percentage of revenue primarily reflects a change in sales mix towards the chemical product line and entering the wholesale chemical business through Swisher Hygiene's acquisition of Daley International, Cavalier and Kitter in the third quarter of 2011, while the favorable change in route expense as a percentage of revenue reflects the economies of scale realized through route consolidation initiatives.  Net loss from continuing operations for the three months ended June 30, 2012 was $18.0 million, compared to net loss from continuing operations of $8.4 million in the three months ended June 30, 2011.  Adjusted EBITDA loss for the three months ended June 30, 2012 was $1.8 million, compared to an Adjusted EBITDA loss of $2.8 million in the three months ended June 30, 2011.  Six Months 2012 Results  For the six months ended June 30, 2012, Swisher Hygiene reported total revenue from continuing operations of $118.3 million, a 112% increase from $55.7 million in the six months ended June 30, 2011.Hygiene revenue from company-owned operations, excluding acquisitions, increased 11% compared to the six months ended June 30, 2011.  Total costs and expenses for the six months ended June 30, 2012 increased by 102% to $148.7 million, compared to $73.7 million in the six months ended June 30, 2011.Excluding the impact of acquisition and merger expenses in both periods, and $11.4 million of investigation and review-related expenses in the six months ended June 30, 2012, total costs and expenses increased 19% compared to the six months ended June 30, 2011.  For the six months ended June 30, 2012 and 2011, respectively:                                                                H1 2012 H1 2011 Cost of sales as a % of revenue                               44.0%   38.4% Route expense as a % of revenue                                17.5%   22.9% SG&A expense as a % of revenue                                 55.4%   55.5% SG&A expense (excluding investigation and review-related       45.8%   55.5% expenses) as a % of revenue  The increase in cost of sales as a percentage of revenue primarily reflects a change in sales mix towards the chemical product line and entering the wholesale chemical business through Swisher Hygiene's acquisition of Daley International, Cavalier and Kitter in the third quarter of 2011, while the favorable change in route expense as a percentage of revenue reflects the economies of scale realized through route consolidation initiatives.  Net loss from continuing operations for the six months ended June 30, 2012 was $31.3 million, compared to net loss from continuing operations of $13.7 million in the six months ended June 30, 2011.  Adjusted EBITDA loss for the six months ended June 30, 2012 was $5.9 million, compared to an Adjusted EBITDA loss of $7.4 million in the six months ended June 30, 2011.  Non-GAAP Financial Measures  This press release and the attached financial tables contain certain non-GAAP financial measures.In addition to net income determined in accordance with GAAP, we use certain non-GAAP measures such as "Adjusted EBITDA" in assessing Swisher Hygiene's operating performance. Swisher Hygiene believes this non-GAAP measure serves as an appropriate measure to be used in evaluating the performance of its business.  Swisher Hygiene defines Adjusted EBITDA as net loss excluding the impact of income taxes, depreciation and amortization expense, investigation and review related expenses, net interest expense, foreign currency gain and other income, net loss on debt related fair value measurements, stock based compensation, third party costs directly related to merger and acquisitions, including the debt prepayment penalty, and a gain from bargain purchase related to mergers and acquisitions.  Swisher Hygiene presents Adjusted EBITDA because the company considers it an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of its results. Management uses this non-GAAP financial measure frequently in its decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods and gives an additional indication of Swisher Hygiene's core operating performance. Swisher Hygiene includes this non-GAAP financial measure in its earnings announcement in order to provide transparency to its investors and enable investors to better compare its operating performance with the operating performance of its competitors. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative measure of, revenue, operating results or cash flows from operating activities as determined in accordance with GAAP. Additionally, Swisher Hygiene's definition of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.  Under SEC rules, Swisher Hygiene is required to provide a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.Accordingly, the following is a reconciliation of Adjusted EBITDA to Swisher Hygiene's net losses for the three and six months ended June 30, 2012 and 2011:                          Three Months Ended June 30, Six Months Ended June 30,                         2012           2011         2012         2011                         (In thousands) Net loss from continuing $(18,029)     $(8,366)    $ (31,289)   $(13,740) operations Income tax benefit       8              (4,403)     87          (10,133) (expense) Depreciation and         5,188         2,482       10,165       4,604 amortization expense Interest expense, net    531            253         1,112        587 Loss (gain) on foreign   43            (128)       40           (163) currency Unrealized (gain) loss   (170)          3,625       (199)        5,586 on convertible debt Stock-based compensation 1,034         1,044       2,617        1,846 Investigation and        9,511         --          11,385       -- review-related expenses Acquisition and merger   42             2,734       162          3,998 expenses                                                                Adjusted EBITDA          $(1,842)      $(2,759)    $ (5,920)    $(7,415)  Cautionary Statement on Forward-Looking Information  All statements other than statements of historical fact contained in this press release constitute "forward-looking information" or "forward-looking statements" within the meaning of the U.S. federal securities laws and the Securities Act (Ontario) and are based on the expectations, estimates and projections of management as of the date of this press release unless otherwise stated. All statements other than historical facts are, or may be, deemed to be forward looking statements. The words "plans," "expects," "is expected," "scheduled," "estimates," or "believes," or similar words or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will be taken," "occur," and similar expressions identify forward-looking statements.  Certain information in this press release is forward-looking information.Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Swisher Hygiene as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies.All of these assumptions have been derived from information currently available to Swisher Hygiene including information obtained by Swisher Hygiene from third-party sources. These assumptions may prove to be incorrect in whole or in part. All of the forward-looking statements made in this press release are qualified by the above cautionary statements and those made in the "Risk Factors" section of Swisher Hygiene's Annual Report on Form 10-K for the year ended December31, 2011, filed with the Securities and Exchange Commission, available on www.sec.gov, and with Canadian securities regulators available on Swisher Hygiene's SEDAR profile at www.sedar.com, and Swisher Hygiene's other filings with the Securities and Exchange Commission and with Canadian securities regulators available on Swisher Hygiene's SEDAR profile at www.sedar.com. The forward-looking information set forth in this press release is subject to various assumptions, risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking information.Swisher Hygiene disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.  About Swisher Hygiene Inc.  Swisher Hygiene Inc. is a NASDAQ and TSX listed company that provides essential hygiene and sanitation solutions to customers throughout much of North America and internationally through its global network of company-owned operations, franchises and master licensees operating in countries across Europe and Asia. These essential solutions include cleaning and sanitizing chemicals, foodservice and laundry products, restroom hygiene programs and a full range of related products and services.This broad set of offerings is designed to promote superior cleanliness and sanitation in all commercial environments, enhancing the safety, satisfaction and well-being of employees and patrons. Swisher Hygiene's customers include a wide range of commercial enterprises, with a particular emphasis on the foodservice, hospitality, retail, industrial and healthcare industries.  SWISHER HYGIENE INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (In thousands, except share and per share data)                          Three Months Ended June 30, Six Months Ended June 30,                         2012          2011          2012         2011 Revenue                                                         Products                 $ 53,169      $ 26,350      $ 104,019    $ 41,063 Services                 6,744         6,618         13,753       11,986 Franchise and other      269           1,276         563          2,669 Total revenue            60,182        34,244        118,335      55,718                                                                Costs and expenses                                              Cost of sales            26,832        13,152        52,079       21,394 Route expenses           10,171        7,603         20,766       12,758 Selling, general, and    35,597        17,366        65,566       30,901 administrative expenses Acquisition and merger   42            2,734         162          3,998 expenses Depreciation and         5,188         2,482         10,165       4,604 amortization Total costs and expenses 77,830        43,337        148,738      73,655 Loss from continuing     (17,648)      (9,093)       (30,403)     (17,937) operations                                                                Other expense, net       (373)         (3,676)       (799)        (5,936) Net loss from continuing operations before income (18,021)      (12,769)      (31,202)     (23,873) taxes                                                                Income tax (expense)     (8)           4,403         (87)         10,133 benefit Net loss from continuing (18,029)      (8,366)       (31,289)     (13,740) operations  (Loss) Income from       (882)         275           (883)        (350) discontinued operations, net of tax Net loss                 (18,911)      (8,091)       (32,172)     (14,090) Net income attributable to non-controlling       --            (1)           --           (1) interest Net loss attributable to (18,911)      (8,092)       (32,172)     (14,091) Swisher Hygiene Inc. Comprehensive loss                                              Foreign currency         (13)          (270)         (17)         (28) translation adjustment Comprehensive loss       $ (18,924)    $ (8,362)     $ (32,189)   $ (14,119)                                                                Loss per share from                                             continuing operations Basic and diluted        $ (0.10)      $ (0.05)      $ (0.18)     $ (0.10)                                                                                                                               Weighted-average common shares used in the                                              computation of loss per share Basic and diluted        174,996,323   164,972,640   174,913,264  144,097,478  CONTACT: For Further Information, Please Contact:                   Swisher Hygiene Inc.                   Investor Contact:          Amy Simpson          Phone: (704) 602-7116                   Garrett Edson, ICR          Phone: (203) 682-8331                   Media Contact:          Alecia Pulman, ICR          Phone: (203) 682-8224