During the second quarter of 2013, the Company continued to experience a difficult and slow European market as well as softer demand in other areas. As a result, the financial results for the second quarter and first six months of 2013 are substantially below the similar periods in 2012. While the Company is still finalizing the second quarter financial results, the Company expects the following:
� Net sales in the range of $105 - $110 million in 2Q 2013
� Gross margin in the range of 12% - 13% in 2Q 2013
� A noncash goodwill impairment charge in 2Q 2013 in the range of $26 - $27 million relating to the Company's Europe / Africa operations
� GAAP net loss for 2Q 2013 in the range of $32 - $35 million or a loss in the range of $1.65 - $1.75 per fully diluted share in 2Q 2013
� Adjusted EBITDA in the range of $3.7 - $4.0 million in 2Q 2013
These numbers are estimates only and are subject to final review by the Company. As a result of the Company's lower Adjusted EBITDA for the first half of 2013, the Company was in default with respect to the total leverage ratio covenant for June 30, 2013 contained in its U.S. Credit Facility. As noted in Item 1.01 of this Current Report on Form 8-K, the Company obtained a waiver of this default and the Company and its lenders agreed to amend the U.S. Credit Facility. Details of that amendment are provided in Item 1.01 of this Current Report on Form 8-K.
While there can be no assurances, the Company believes it has sufficient liquidity in the U.S. and internationally, both today and in the foreseeable future, to operate and service its customers and stakeholders in the normal course of business.
The Company anticipates issuing a formal earnings release, conducting a conference call and filing its 2Q 2013 Form 10-Q on August 9, 2013.