Thanks, David. Good morning, everyone.
sales, of begin with review nine results Turning decreased to operations. from which I'll QX continuing net slide a XX.X%. and
Home organic foreign inventory lower of and focused as Garden X.X% hard and reduction, decreased particularly of consumer on Excluding in and replenishment & they orders reduced the million consumer impact appliances. unfavorable demand sales $X.X goods exchange, in kitchen net durables, customer remain from
XX.X% of of of management. from offset with Gross $XXX.X of mix. of asset $XXX about the increase gross overall in HPC this profit from the recognition and well XXX improved million XX% cost reduction year fixed positive during year points improvements that by decreased spend million $XX.X initiated first-half efforts volume, the margin an goodwill driven a increased impairment the continued by prior reduction and cost as million, and intangible impact as with favorable of the impairments year the million while basis $XX of pricing, expenses of increased in Operating ago
operating mentioned. earnings driven loss and share the of per GAAP operating diluted by by and sales impact million the intangible in goodwill the the and was loss The primarily $XXX.X and increase asset in interest higher decrease net loss I decline charges were The driven of impairment expense.
increased volume and Adjusted and in reduction EBITDA $XX.X decrease fixed higher EPS due by positive was to million proceeds. driven the by in diluted per $X.XX the impact income EBITDA HHI $X.XX shares the investment cost despite outstanding. management of pricing, to $X.X spend from the increasing million adjusted efforts, Adjusted overall share, of reduction
$X.X a on million $XX.X higher our from XX. to operations our debt continuing rate expense noncash debt variable and QX due slide write-off of million fee Turning rate repayments. interest to from $XX.X million of increased interest
million year. continuing $X.X than taxes lower And $X.X Cash Depreciation of during $XX.X than incentive-based $X.X was operations of were compensation and million million separately, million quarter increased year. higher the and prior million. $X.X share from the amortization last
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billion a and consisting had $X debt leases of our of and other outstanding revolver. balance unsecured the billion, available flow obligations. $XXX The $X.X million finance notes million was cash sheet. of to balance $XXX cash approximately quarter-end and million billion $X.X Moving senior company Total $XX of on
at a net positive net position pro previous leverage of times compared quarter. quarter Additionally, forma the at cash we the of end the ended to X.X
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currency, aquatics by The organic of benefited continued higher-than-average pandemic-driven driven equipment X.X%. environments, which in have sales net softness largely demand. the in especially and decline foreign favorable global Excluding decreased from subcategories was marketplace, the sales
categories our headwind, a impact margins, lower top resulted item hundreds In are the flow. pleased we by American and by is sales, active the were activities a while of These North having portfolio exit to line and reduce non-strategic cash and to activities, profit sales planned America one-third management with decision waste this adversely SKUs. also count aquatic aggressive management turns the very North which effect purposeful will is on our our such the addition perspective as of nearly discontinuance several in lower impacted from
the category dog our companion growth increased EMEA cat than more animal to in in aquatics. mainly in which similar and declines by driven food offset Sales sales, due
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in inflation with with declines offsetting net the cost and energy material, our some line side, continue inflation. On rates we partially to experience labor in freight expectations,
to We strategically will trends continue closely input price as cost monitor and these necessary.
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about expansions. these growth product we're potential all new of long-term So the excited of
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offset our of over mostly consumable or at But specialty about companion such channels, the strong revenues within fundamentals trends pressures. consumables, becoming remain pet animal categories environments aligned pre-pandemic these XX% is in pet to cautious especially which we category as remain nutrition-based for aquatic new within as more certain entrants your of settled Overall, the is products encouraging rates our in categories. below as positive to levels. business to the expect represented We consumable categories QX. the This
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is business we business. the remain for growth and prospects historically recession-resistant pet continued Our potential, this business about with a bullish continued
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As maintain out last compared year levels to results. shift earlier, significantly inventory I retailer play the lower to to in continued quarter strategy third our mentioned in
our the expectations quarter. trending warmer seen now good as which to in low incremental recovery This support by reduction are levels inventory inventory We That fourth sales for in to expect for driven end this the will trend continued both our pressure weather. far expect of target July said, a POS, the of fourth our so retailers has continue brands, historically and as of positively well quarter season.
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to We driving on drive focus to of our increase renewed long-term brand for growth. are investments sales part line as Rejuvenate planning top our
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expand and product these excitement new for offering. build continue will of accounts, national lines the product into to new presence we'll We several this
channel. retailer I in we carefully are supply further retail reduction inventory consumer the coordinating fourth ensure POS expect quarter appropriately in to of products the We monitoring our and But partners actions meet with as demand. parts to earlier, can the we referenced
our positive higher decline. from million. partially improvement decrease $XX.X sales This & and of was materials line restructuring pricing, for in Garden cost EBITDA fixed EBITDA offset driven product primarily by cost was our labor Home raw by the and with Adjusted expectations. We initiatives. was experienced benefits costs business
we look the of As retail impacted continued we by inventory to quarter 'XX, sales forward to fourth expect the reduction. be fiscal balance
year. full we expect for sales result, to down the a be As
difficult that & believe by year of Garden remains we retail consumer is Although because posed the for the the inventory strong, business fundamentals Home challenges market strategies. this of the a our
net is And sales slide decreased Care, XX. which finally, Home Personal XX%. Reported &
America. exchange America. net organic unfavorable The unfavorable foreign volatility inventory category XX.X%. kitchen organic was of net decline decrease and reductions lower foreign from by continued decreased demand sales mainly by driven Latin currency $X.X North is retailer consumer impact impact in sales driven The exchange Excluding the million, appliances in in
Overall, to global channel. through as appliance care appliances we personal registered EMEA categories. Sales double-digit in the continue the categories sales and share increased growth growth the the kitchen in marketplace both in in in gain region and care e-comm win personal
strong Sales in growth. also LATAM APAC and posted
the However, demand appliance competitive on down ovens fryers inventory high in the kitchen in to single as toaster retailer the difficult digits quarter. a remained highs. well below air -- mid- with operate market North environment The pandemic small America business continues to and
the continued the product work replenishment suppressed inventory of down through for We for lines expect pressure these retailers remainder year as orders.
our are Consumers as retailers increased for results. maintain also looking the level which in deals pressure further and of on promotion competitors marketplace, put will the
driven through we continued Adjusted adjusted from improvement impact we've the the margin rates. the freight rates lower fixed EBITDA various past two partially offset the was EBITDA higher was foreign are including cost restructuring unfavorable and increased improvement and further high and to inventory volume over margin years. The exchange cost decline have undertaken lower This $XX.X positive million. pricing. driving levels, to initiatives, pandemic year-over-year by Ocean cost of by
the Looking of retailers continued expect environment forward we inventory as particularly competitive and the oven in air demand, a year, consumer continue remainder categories North challenging on continue and to expect the to fryer in focus toaster softer reduction. their America
we innovations of to focused the reduce remains Commercially, operating driving fewer, such, our better enhance on the stay own bigger, on inventory. in that actions and our the as channel inventory model as renewed position business. simplify will market current our As consumer-relevant well focus
our expectations turn to for We'll and now slide XXXX. XX update
half & of the proceeds. we As lower excluding David year, mentioned earnings revenue HHI additional from expect pressure the Garden framework, the earlier, in to the given end in income second towards investment the of Home be our the
the million expect environment. approximately Additionally, fourth investment income the quarter on current rate interest based of in $XX we
million to between is $XXX and interest Turning million to $XX approximately now. $XXX expense Full-year to including million, is stock-based amortization million $XX be $XXX noncash $XX of million, XX million and compensation to of $XXX approximately items. million. expected between slide Depreciation including expected be and
Cash be and are restructuring, to expected expected $XX any be to between $XX $XX and payments and between million and are expenditures gain sale million strategic between optimization of million $XX taxes, are transaction million. Capital be HHI, $XX $XX towards costs excluding Cash to expected on million. the million.
For adjusted EPS, taxes. tax rate as usual, including use XX%, state we a of
their section, and committed long-term want during employees challenging global all staying my of end our echo and efforts to strategic initiatives. for times to our these David we're To I thank strong
to back Now David.
