Erik. you, morning, everyone. Thank Good
the let the into excluding base both total impact remind getting or provided you QX company Before of had company for AIS guidance me we details, business acquisition. total the and results that our our
about. which In addition, commenced just February on MSC spoke Xst, operations, Mexico Erik
in business, XX% this Our include but we total company guidance of interest, results. which included are in not actuals our have month controlling one did a
exclude with discussing business. when AIS our MSC We base along will Mexico
million, total average $XX.X quarter guidance. basis an daily year, our XX last of of growth. growth the Mexico just AIS second the XXX midpoint increase basis X% were Our contributed X.X% MSC contributed versus points of sales and of quarter below points same
versus was of guidance. X.X% the growth X.X% business midpoint our base Our
basis XX Our difference This point due midpoint was the for entirely quarter. line MSC was established reported the which gross guidance margin with was our was post course guidance to Mexico XX.X% from in business, the of as guidance. of
was points from Our points down AIS XX basis basis with company basis year Mexico. margin XX from last about total and XXX gross points another coming roughly from MSC
price in the base remained Our improved price increase. contribution positive to fact business due and
continued Although as a expected, cost headwind. and purchase mix to increase remained
OpEx million about from last sales OpEx with year's versus flat this Total acquisitions. the XX.X% in million, of was Our was QX last and with million line $XX guidance. at $XXX $X coming to from QX up
Just costs commissions. was pick, increase volume pack, and freight under $X the as related attributable such of million to ship, variable
of $X related additional net another up productivity marketing. inflation and sales and million to $X Another and stepped other service including added nearly all personnel million. Cost field, investments, expenses growth
Our prior fiscal year this from XX.X%. basis with points margin down points second That's of XX XXX the due AIS. basis roughly operating roughly quarter to was
and margins from gross to same down points operating basis business company due were XX a margin and was as business base line ago quarter year with operating the noted margins both Total in earlier. lower guidance. Our XX.X%, almost base
second in expense quarter basis also with line Our a percentage total guidance. tax the for XX.X% on was
roughly year's reported of all $X.XX, in AIS this one-time of after $X.XX Tax no our Last per which was share reported of impact earnings the Act the resulted of catch last and up and to rate a in benefit related EPS reported rounding. So EPS $X.XX tax guidance. on Also the midpoint income. Cuts MSC below year's of included had our $X.XX. year-to-date was QX on included tax Jobs lower Mexico
last current the noted apply was fiscal normalize QX. is XXXX's January, benefits of the in below this, to year. rate to As we did tax QX's if perhaps to And way tax for XX.X% EPS EPS $X.XX quarter's simplest
Turning to sheet. the balance
seasonal DSO fiscal was pattern. days first our QX our XXXX's typical XX quarter XXXX, broadly in line roughly and which down So days flat fiscal our of four is with with from
With $XX possible up also million to increases. increased and the looking impending cash QX purchasing times. last in inventory decline $XX provided our $XXX year-end X.X from rebate of at to Our quarter. Net likely, $XX build inventory less third remained tariffs as ahead company was in of stocks in of to to inventory expect opportunities, million ahead tariff related -- quarter turns continued get fiscal advantage versus by third safety year. QX slowed we levels during take activities price disruption million, we operating Total have supplier calendar our million and fiscal
in average capital bought back second Our $XX.XX. second million. compared cash activities, an price million provided $X spent shares $XX QX. from were the we quarter, on net expenditures flow expenditures We million out And million in million dividends million last year's unusually was capital $XX $XX cash $XX million year's $X year's and at last dividends paid by last in $XX after quarter in subtracting our $XX ordinary versus operating low of to free and paid quarter In buybacks. million XXX,XXX for the out as during
our debt facility total $XXX was long-term and comprised of the $XXX end balance $XXX fixed-rate on at credit Our the mainly borrowing. million, second quarter of million million of
year's as increased times QX both to slightly last times at leverage X.X compared one to and Our QX.
this So now of is with also artificially third XXXX, see company MSC which X on growth, is note our in fiscal our is can and slide our April this inflates then and but Mexico DECO Please guidance and deals. remember included the for suppresses let's to acquisition. later March AIS year the that the while growth rate. shown Easter in that without are Please you move base and quarter total
impact For is the anticipated fiscal wash. a third quarter, the of course,
QX. expect and X% QX, points growth AIS we approximately to XX X% is basis included in for This Mexico was the that acquired now versus included around So organic year, last on And company was year by period. Note ADS the overall, X.X% to acquisitions. X.X% for so prior one total April year's from sales of last increase includes of month XXX quarter. to full MSC
You can this acquisitions average estimate X.X%. is at the XXX that. website op on XXX March's points sales about about that the daily Mexico We with basis growth includes estimated stats that total basis points see of contributing from
basis April We year. points also that Easter estimate falling about into the from by month boosted XXX this was
month than nice April. week, for fiscal a final As is rebound expected week in of March mentioned, Erik our first was which our softer the the most of with calendar
assumes the in Our few at guidance weeks forecast daily first not sales softer but rebounds. in we saw the weeks' rates above levels the last March,
a Our QX XX impact negative This plus and be from expected gross inclusive minus or of roughly of operate the is XX -- basis new XX.X% our comes points. the to QX margin roughly point from is XX business. this acquisition basis Mexican reported
basis total sequentially a Year-on-year, from QX our company margin Our trend is to due margin decline. the XX we base our quarter second the call, the the margin acquisitions. points is XX bucking to as realization driver expected key and flagged up price fiscal of gross be with last business of be the expected XX gross On for seasonal down to almost roughly year. XX.X%, points points second half gross
So realization been far price has strong.
Variable an expected over comes in productivity. profit. inflation company of $X cost and Operating service the roughly do with on higher average, added we and our fourth million the growth margin third field third XX million. and $X quarter. comes expenses from And and associates fiscal with to the be growth in expected base at from million Recall XX accounting up roughly Mexico sales of expenses finally, below $XX roughly to headwinds period. continuing net are are service However, sales quarter in account $X million, MSC XX our million another but for more headcount expected roughly and are operating associated that second coming vending million $X And AIS $XXX higher up fiscal year's prior fiscal investments quarter quarter, last gross be around gross this. additional margin and including our for higher our our sales as sales contributes purchase to mix direct to ships are higher they
to after implementation our signings. base be for business Sequentially, inventory the roughly added OpEx to to also We our vending higher allowing is expected accelerated team support of million expenses. management flat variable $X volume-related
So spending. higher OpEx percentage at in XX.X%, growth total year-on-year sales we our terms, unchanged the quarter expect ratio to investment company be third despite to
We total roughly the basis roughly expect XXXX a driver added quarter's acquisitions. with The point points also a sales since coming XX The XX.X%. basis fiscal decline guidance, margin additional decline approximately XX% third XX from and headcount last gross midpoint the company is to minor. over but XX contributes, impact service operating the year's of be of this margin is QX at
our Assuming the quarters. the of annual XXXX quadrant we guidance, first through op three margin our would of total margin the midpoint remain company framework lower-left operating in QX
we basis operating You This our modified is which the each operating in to have the acquisitions. framework. and the noticed strictly XX acquisition including quadrant slide X margins points. is and reflect this Mexican in dropped that GM ranges by the that's might deck And margin
XXXX, turning incremental XXXX, fiscal we over taken incremental we margins. base would step briefly have to In margins to I a delivered XX%. Before back. like cover of In taxes, fiscal
decline profit for invested of Our basis about we to first grew sales half similar margin expected show personnel. field, is us in only margins service base and gross and QX XX $X or in slightly around million points as picture. -- growth mostly cost around business the operating million operating $XX a
year-on-year. of year. fiscal service sales concerned, but personnel we continue noted because February as higher, sequentially to Erik down before in this through price intend where Our is and gross investing field, margins the will And OpEx be increase,
XXXX Our margin framework margin full already XX%. by slightly was operating implied our year incremental below annual picture
a our year-to-date months our midpoint guidance guidance and had higher only expenses of been assumes this this that our past and will both in sales point fiscal fiscal QX. also what this the our margins over of sales Assuming the anticipated will same than in incremental above service of the be QX marginally of the is company, positive. namely have we time, couple growth. total primary as at growth operating investments, Sales continue softer driver revenue anticipated for our nine-month slightly At year. the The percentage
look our achieve continue confident the we yield to on that we that investments investment payback ahead, in remain As and step-up will we will leverage spending.
Now for turning tax of to XX.X% is quarter, the the our third rate half it line year. estimated with the in first
weighted diluted of Our guidance a share shares. average also million roughly XX.X assumes count
now So third which $X.XX our with are AIS impact EPS. EPS This breakeven quarter to I'll share back expected fiscal together per MSC have is to on and of guidance includes roughly midpoint turn $X.XX Mexico $X.XX. Erik. range a a to
