Thank by and healthy. morning Thanks good staying on for me today. everybody. that start joining hope saying is John everybody us let and call you I safe Most importantly, this
the into the of we to call began. COVID-XX the with crisis, perspective company's I quarter, management. on performance Before I'm partners, I enterprise. has early begin safety our details and it the solidifying call, spoke And since customers, in of have stages stability financial how us in ensuring of we our this working some meant of plans adapting for on defense our When a providing the quite risen ensuring severe pandemic to ourselves the dive still in want playing our company and on by our face last we crisis and our was team remote were the the to were early for lifetimes. continuity that of pleased that environment, focused most the most April, business morning's and and seen occasion, the
also PPE playing has new running, and all At yet. the to top improved striking not offense, as of their far. supplier our our playing While out needed providing time, thus clear these saw defense the struggle with our since This competitors and customer where opportunities, attention and we're well to turned offense us as programs janitorial approach mind, customers dual effectively that woods served customers, serve partners. our still has of of of same new it's and remain we relationships, smaller capturing much such to supplies keep
and and cautious aerospace, the challenging gas, drive that a surprising it's More the virus. can not rate, obvious dynamics as you the but metalworking to June our manufacturing in industries given automotive, the realities a trajectory customer business see key along benefit the uncertainty regarding base the and subsiding, about from the of later, environment our As very PPE with showing from growth search oil consumption, is of with us this base. such
the our to critical spot to from us, partner. MSC resume of journey With management buy supplier crisis we reposition now early behind mission days
the MSC service the on Over four over and a plant the margins is allows have which supplier the customer these customers. which a the from vending relationship, business executed our deepens more VMI buy centerpiece program, also play spot with C This for legacy option. resilient values through support our retention of ongoing experts, floor and when higher customer’s past our yields who Class technical primary stronger secondary time. our and lifetime key customer It benefits years, of inventory business more. we've migrated We rates, role our along to the gross metalworking also presence management team hence capture in
in most Before the remaining ones few on my had a provide just and update pandemic repositioning began, with of on those remaining we completed elements remarks. the an later I'll
third before of now fiscal And up the the the call an who’ll open to quarter. quarter. the for we hand then me turn our I'll then line to wrap-up Let of over overview review Greg I'll details questions.
our on continuity efforts. business update an First,
operating mode. fulfillment have safety least crisis facilities, approach. at we'll continue open the other we'll And given remained While throughout determine our at our centers September of In as areas centers remains most fulfillment a the most go-forward procedures. in operation, remote operating its X customer continue an our we meantime, essential our working with until which effectiveness, our of in remotely point enhanced
all to and travel of mid-March, safety. health eliminated we ensure in As order
and to social distancing protocols. We associates sales Over states couple they're the for facing on travel has that who allow needs. safety keep and all for practicing the quite to future of last rest focused customer and using in travel limited service with some it, assured weeks, those strict our customers foreseeable only plan limited need be on-site primarily resumed,
were down financial down basis tough X.X% sales execution overall a is and in was strong XX third points. an environment, gross prior fiscal quarter the margin Our Versus results year, tough understatement. reflected just and
experienced increasing pace continuing double-digit was gap and continued large and recall over bookings what janitorial product, surge trend prior unusually between in may year, in a that of April an invoiced safety to large lead March. longer due the at fiscal You scarcity with times. and orders, This fiscal through we bookings
our product During prolonged fiscal noted fulfillment and shutdowns sales down both levels safety over the control significant versus April, to lines saw customer of of months. March of and and elevated driven prior fiscal janitorial the by worldwide janitorial prior the levels bookings to March non-janitorial efforts grew the that declines had year impact that time, non-safety over and was May COVID-XX. May April. year due the and and couple from backlog and safety the same built large of that for we came in orders prior the At
certainly well at XXX million, million from end at XXX now roughly decreased of backlog which declines historic order above to our the year. result, saw backlog the to our still last fiscal quarter. the versus non-safety third in but levels, XX million current non-janitorial a stands invoicing products is below see we continue and above about Orders for prior double-digit quarter. As bulge The and May
month. improve sales average rate we at the through Although modest see a rates daily did
really areas and declined Looking weakness janitorial at metalworking, mid-teens, is digits, CCSG high single levered to single other and offset Government the includes large safety significantly partially type, to both customer of and performance the and to remember declined and state, of accounts with that extensive accounts business business. in which customers national saw our and this most safety portion up the surge. significant our down shutdowns. digits. core part in high declines were was by sales, In contrast, in similar heavily due even that national orders, surge federal janitorial the
fact, watermark third for expect This percentage of sales more government XX% a levels forward. high of In represented as government and total we a our is normal moving in fiscal quarter. sales, would
XX.X% re-openings provided few As sales or on of from related estimated June's ADS customer in a you customers sales. modest non-safety, XX.X% a can from our to see improvement and total hearing minus sales things growth an only force. non-janitorial have date basis, We're underlying our our minus
quite are First, end-markets and fundamentals most are manufacturing weak. soft
down that and order shop example, now. For normally six the new have right are customers in much backlogs range shop a weeks machine to job of to eight our backlog smaller
customers much there's also inventory and about and of third, possible. the the related, surges. persistence spending and Second, And about caution virus off as cautious future as burning so they're the for are potential
doing reopening, in late June. gradually so have fact hours after and So, they're cut are particularly up, while many even customers in opening
Some the holiday. customers normal shut period than longer down for July around a X
our and extra fiscal the this hence between X June you'll As one and Friday. has year timing close compared growth that a year last the sales Thursday a falling due growth. July discrepancy that side This to on daily to day and was average explains total last on that year sales see to of our note, decision
March reflected that was caution the the and point was indices as processing, as end-markets. strength in recent MBI. May the the of pockets is of as which quite sentiment all in improvement The contraction XX.X, food XX.X; of others. not core reading some XX, significant pretty such the The medical worse industrial in while reading board XX.X, of and are at rebounded to So, slight a metalworking with weakness June to continues us April some was across demand as manufacturing to to described I the much such in isolated areas
third that automotive, formula, upon weakness across our the pleased margin certain throughout three oil sustained metalworking year. quarter As with and the seeing and been I'll markets quite and are I each mentioned performance, one built which gross as now move we've seeing earlier, our aerospace, to our acute worked There heavily results was in I we're such to margins gross levers favor. and centric and solid gas. fiscal
price. is first The
realization we from to some see mid-year As continue execution. increase, to I by mentioned improvements supported good price earlier, our
purchase The second costs. is
the is system, their to that's to lower As improved the purchase of start cost input making wane. programs year costs, with through that had for our negotiated. and This costing combination anticipated, also average recently escalation supplier a past way we're us been to seeing we due due
lever other mix more Right third than Our is margin wildcard now mix. a is gross the of two.
headwind a margin continued had trending. due an gross gross sales. mix time, product combination production over quarter, metalworking oriented June of QX solid been of margins it our a generally and effect it's this to less While lower
couple June, recent sustain Looking gross caveats. margin of a beyond expect performance to we with our
down our levels, be likely about from seasonal talked generally last rebates has case second, And levels QX First, few with some tick lower pressure and as QX sales. to year. do the anticipate would that again over we lower due the a this we purchasing months our on
the a gross tougher that I pricing the on to levers we albeit well margin front, In price just executing terms expect of continue in mentioned, environment.
could purchasing at the to build momentum purchase mentioned. a down also change is costs just predictable. levels, see quickly will in the especially if times, remain bring less months these we with wild card, the that pickup current We sales. a Rebates I to on will coming in a expect to in factor and notwithstanding Mix were although remain headwind again unusual therefore rebate
where structure. and measures I'll expenses to our Finally, we move spending cost to took operating temporary our carefully reduce managed
our ratio result, bit OpEx below on and basis prior more a Greg just the a that. sales will in As how to period, year XX was detail points provide did we
in turn coming this All I'll Greg things operating last resulted margin versus remarks. before concluding the now were improvement down that of share points XX earnings with of to same an and basis quarter some $X.XX over per back in year.
