Charlotte-based Swisher Hygiene, which hasnt reported financial results to investors in more than a year as it works through a major audit, released some limited results Wednesday, outlining its efforts to get back on track.
The company, which provides restroom and facility cleaning services for businesses, disclosed the results ahead of a conference for investors Wednesday in Miami.
Swisher has faced the threat of being delisted from the Nasdaq stock exchange for not filing timely financial reports and is currently facing a shareholder lawsuit alleging the company pumped up its stock price by distorting results.
Swisher was founded in Charlotte and headquartered on Piedmont Row Drive in the SouthPark area. The company was acquired by Florida businessmen Wayne Huizenga and Steve Berrard, the duo behind Blockbuster and Waste Management, in 2004.
Company faces delisting
Swisher must begin filing restated financial results by Feb. 19 or face delisting of its stock. The current round of troubles started for Swisher last year, when the company announced that it needed to restate results from its previous quarters and was investigating improper accounting procedures. The company has said the investigation will probably force Swisher to recognize about $4.6 million worth of additional losses for past quarters.
On Wednesday, Swisher released operating results for the first time since early 2012. The company said it had annualized third-quarter revenue of $225 million in 2012. That implies the actual third-quarter revenue figure is just over $56 million. In its last quarterly report, filed in November 2011, Swisher said its annualized revenue at its current rate of business was $320 million.
In its investor presentation, posted online in advance of the conference, Swisher said its financial uncertainties have led to slower growth and hurt its corporate accounts, as buying decisions have been delayed. But it said customer losses were confined to a few large accounts. Two of those, along with the costs of integrating smaller companies, have accounted for about $20 million in lost revenue, Swisher said.
Unit sale affects revenue
The company said selling its waste services unit cost it $75 million in future annual revenue. The sale price was $123 million, and Swisher said it currently has about $70 million of cash on hand after the sale.
Swisher said it has made progress on integrating its operations, merging multiple databases, streamlining its systems, and consolidating different inventory and support functions. Those have led to $10 million worth of cost savings, with $10 million more planned this year, Swisher said.
As we continue to work toward filing our financial statements, we are pleased to begin reporting some operating statistics to our shareholders, interim president and CEO Thomas Byrne said in a statement. We believe that through our focus on our core operations during the past year, and ongoing initiatives, that we will achieve positive operating cash flow with our current operations by the third quarter of 2013.
Swishers stock closed down almost 5 percent, or 7 cents, at $1.41 a share on Wednesday.