Tuesday Morning Corporation announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2013. For the quarter, the company's net sales were $285.8 million compared with $285.3 million a year ago. Operating income was $18.3 million compared with loss of $22.6 million a year ago. Income before income taxes was $17.9 million compared with loss of $24.3 million a year ago. Net income was $17.7 million or $0.41 per basic and diluted share compared with loss of $21.5 million or $0.51 per basic and diluted share a year ago. Adjusted operating income was $20.3 million for the quarter, compared to adjusted operating income of $24.6 million in the same period last year. The decrease in non-GAAP operating income was attributable to lower non-GAAP gross profit and increased store costs. Net income on a non-GAAP basis was $19.3 million, or $0.45 per diluted share, compared to net income of $15.5 million, or $0.37 per diluted share, in the same period last year. The company invested $5.5 million in capital expenditures, primarily for store systems, such as its new POS registers, store relocations and capital improvements exits in stores.

For the six months, the company's net sales were $469.4 million compared with $458.1 million a year ago. Operating income was $5.8 million compared with loss of $33.5 million a year ago. Income before income taxes was $5.1 million compared with loss of $35.6 million a year ago. Net income was $5.7 million or $0.13 per basic and diluted share compared with loss of $28.4 million or $0.68 per basic and diluted share a year ago. The company's results were impacted by the effects of the non-recurring items related to its business turnaround initiatives in the prior period and an increase in its deferred tax asset valuation allowance in the current period. Net cash provided by operating activities was $29.5 million compared with $13.7 million a year ago. Capital expenditures were $8.7 million compared with $6.4 million a year ago. Operating income on a non-GAAP basis was $10.3 million, compared to $15.2 million for the same period last year. The decrease in non-GAAP operating income is attributable to a decrease in gross profit and higher SG&A costs on a non-GAAP basis. On a non-GAAP basis, net income for the period was $9.4 million, or $0.22 per diluted share, compared to $9.6 million, or $0.23 per diluted share, for the same period last year.