morning Thank everyone. Good you, Erik.
base guidance both, total of is Before provided getting you AIS into company which and the for acquisition our business. remind excluding business, we the the details, Mexico total and that let me our our company QX impact
sales end range. base our which between of of had increase the has basis to ahead quarter gross growth points them, MSC group already shortfall move the AIS Mexico and reasons, low covered our below an Our contributed ADS slightly year, of third X%. $XX.X of and margin. guidance. therefore the same was million, guidance average The were daily Erik entire quarter on X.X% last XXX so of business in versus I’ll
Our QX reported our higher base cross majority gross basis margin business due purchase midpoint. this than expected below XX customer was was GAAP escalation. to points guidance of mix XX.X%, The and slightly
Sequentially basis headwinds the flat purchase and roughly XX coming was AIS year Our MSC this gross price our as was total Mexico. cost base points with with escalation. XX.X% both basis points company last of from from business margin of QX margin February mix about and XXX increase down gross offset
lower they lower $X related accrual. the taken and QX reduce $XXX operating incentive expenses, due midpoint, to to approximately guidance cost a than discretionary avoid volume were to as cost well mainly and in million variable spending as planned million Total actions or increases, lower
we XX note to driven our of attrition end slowed QX, and that We expect the QX our rate which hiring service with QX. in level with field and resulted reduction expect field – sales service do then to growth, overall of reduction head XX, headcount not we heads from QX count combined in of that performance associate. of But sales tempering when and do close
Operating headcount $X year was another expenses ship roughly up from and million million service pick, increase sales $X were to field came versus year-on-year the roughly the is as up payroll million such related acquisitions, freight, variable $X attributable and About costs, ago. from volume of last XX year’s million QX. from and $XX pack, came the costs higher this
of as from last above control fully basis year’s the offset the sales cost guidance, of points did expected to QX basis impact XX our points mid-point XX than of lower OpEx and was sales. up not actions XX.X% helped, but
the the prior XX quarter at year, fiscal AIS Our down from roughly within, third XXX our and reported operating is was low Mexico. roughly end with margin due range. points MSC basis This to points basis guidance XX.X% but of
of impact contributed operating gross earlier and year business year-on-year down about the same low in base to margins and guidance of at range the a XXXX, end the XX.X% both from basis Lower investments ago. project points the fiscal decline. XXX and our ongoing quarter was Our made margin people
slightly was was due total Our lower resulting tax tax year-on-year act. from XX.X%. tax XX.X%, The to than our decrease below and of the effective cuts quarter fiscal lower XXXX jobs for the rate QX tax primarily rates guidance rate the corporate third and
EPS. this resulted negative had on earnings was and a MSC reported Last combined reported of So below $X.XX Mexico per reported $X.XX share, in all of impact guidance $X.XX. AIS $X.XX midpoint. year’s EPS
sheet. balance the to Turning
Our to National fiscal QX, be days, continuing days from with XX main DSO driver. was Accounts the up X XXXX’s
times invent million, QX, down QX. from decreased company down inventory from X.X to Our quarter returns $XXX during the to were $XX slightly million total
slowed purchasing lower expect again and in quarter, fiscal amount. our have but We decline to by levels inventory a fourth
third operating $XXX provided million million activities versus last the by quarter cash year. in the $XX Net was
after last to from compared cash million Note net $XX annual $XX expenditures to million in and $XX CapEx by capital was million a year’s $XX strong to $XX our QX year’s were activities, in CapEx XXXX. in as cash subtracting QX. flow we million fiscal that expect versus Our million million provided last $XX currently free operating
paid in $X in quarter ordinary out dividends the any during last year’s dividends did out outside shares. In million the market. paid back shares back we We in million $XX buy and QX on million not bought $XX and
on saw our EPS, payout increased result in this increase. to quarterly a $X.XX dividend per will As XXXX this expected of we you XX% about ratio morning, a share, XX%. Based fiscal
Our sheet his cash levels Erik free elaborate flow this more in and level. closing. on support high of comfortably balance will strong generation this
facility and the as cash and $XXX was equivalents debt the on third was $XX debt $XXX million, long rate million $XXX our term balance and $XXX of million. credit total of Cash of million borrowing. comprised of a were Our net fixed million quarter end
X.Xx decreased to to leverage at X.Xx last with year’s our and the compared So of QX end as flat QX. was
the can is the in to let’s XXXX base, fiscal without AIS see of we views, and quarter on leave guidance guidance XXXX the acquisitions. the with Now four, that both base, shown company that for whereas and and slide MSC the the view. fiscal total DECO fourth and our AIS is we which Mexico are in when remember move but included you Mexico total in will move company note get into Please
to and Overall around basis we of to the period. QX by prior expect from total organic X% company of to growth ADS increase X.X% This X% approximately versus for includes range acquisitions. the year XXX points X.X%
see June day had one website, total you op at X on on is the following growth stats that closed in estimated our fewer daily holiday. June’s selling we As year’s X.X%. the Note as the average Friday July sales this
QX plus or This year-over-year. points. to basis is basis XX.X%, down margin is Our gross XX XXX total be company points expected minus
expected price basis realization to our gross continue the gross costs hirer business year, in purchase and mix We is as has base levels. also XXX last sales XX.X%, be margin headwinds to down Our points margin at but quarter. expected continued from fourth anticipate
QX by Gross business in base for gross vending comes sales ships higher down margins the and direct escalating costs below growth XX product coming price are points the This average. margins exacerbated company is normal sequentially to at delay seasonal the annual expected from third increase. be quarter. to slight the to due Also a from and basis decline,
additional Let context gross margin. me provide on some
price and In determination and Our we margin the gross years we margin margin formula mix. and gross points to elements; from averaged cost XX gross sales cost year-over-year XX are basis price, decline neutral, of recent still expect if would is three mix. made up
fiscal a P&L. The before past In from XXXX have cost. flowed price our due two increases primarily through of different cost years benefited produced increases we to the picture, the quite our timing price
price the positive was margins and base gross were flat. cost a As business our result, spread
fiscal year, in the later we price This cycle. cost XXXX, are
cost fiscal the bearing has has are as While price realization impact positive, the and of been price we full negative between XXXX. product escalating GAAP costs turned now from
basis down points margin As our QX year. such, base midpoint, be XXXX’s versus XX fiscal at business guidance last fiscal gross would
cost see issue, the fourth QX. price cost purchase changing the in the the a timing equation. On and quarter side discernible soft demand this to don’t top positive, in addressing the of environment goes We end of
up Moving quarter, last accounting now base They about to of to $X around with expected million from are be business the $X million, operating this. $XXX expenses. for million fourth year’s
course increase. you and up As we over headcounts service year about account payroll $X related of know, costs payroll added the the year-over-year the and sales million total for and
a operating three sequentially rather reasons flat expect decrease in There sequentially. QX than might sequential You is are operating in why expenses. OpEx flat expenses
fiscal and most XXXX. were and than will we To cost savings the actions month to reduction to the in taken reduce kick will actions increases two take First, of to cost the months more last rather avoid in headcounts in be planned in coming costs. three the meaningfully clear,
costs in QX; third, rise driven growth sequentially, in we depreciation year. a primarily reversal by had expecting million vending this and Second, $X we are the incentive signings strong compensation to accrual roughly
expect We are decline of and approximately company decline basis margin fourth roughly at to XXX XX our gross growth expense investments operating over the point The the acquisitions. quarter’s XX.X% point point expansion and a due roughly basis XX.X%. guidance, the total XXX be year-on-year basis last drivers operating the margin to year’s midpoint
our the QX framework Assuming midpoint below quadrant the fall left operating operating our guidance, year. XXXX margin for would of of full total the margin lower company annual we
say Before incremental on to business margins. base turning I’ll taxes, word a
back a a in fiscal would While we significant we solid have delivered XXXX. fiscal XXXX, step taken
is operating our guidance, fourth of $XX profits are we we This course million million midpoints taking improve decline to $XX performance. our roughly expect quarter sales. approximately of unacceptable on to of the actions and additional Assuming
reserve XX.X% it than tax Turning our to lower our tax typical of XX.X%, fiscal the which quarter, is fourth state our in due year-to-date estimated tax occurs rate of release of for the was slightly that QX. rate
EPS should and MSC Mexico, is $X.XX neutral guidance QX the together $X.XX. of to with range our Finally, which midpoint $X.XX EPS in QX. includes AIS This be
Our average assumes weighted $XX.X guidance million a share roughly also of count diluted shares.
to Erik. I’ll back it now turn
