Joseph M. Nowicki
Thanks, Paul, everyone. and good afternoon,
operating but our earnings results reflecting in line quarter. the flat the our my on on growth go let I'll second release detail balance remarks, metrics top Now this the the our fiscal sales have to more great detail little successful In reflecting slides of and our gross I'll press environment XXXX sheet been results that covered website. highlight our a quarter reinforce financial key challenging key a greater quarter, updated a expenses, few strategy, posted weather margins, detail total the contained into and our that for and metrics, are prepared growth outlook. Paul strength organic already acquisition continued me results of and execution XX% in
spend $X.XX, deal unpacking year-ago the which adjusted to As EPS at Paul details. the loss mentioned, a profit we quarter, an good a now of for $X.XX reported the compares in of time period. I'll
period. As a adjusted a we've for during point the quarter, and reference history, losses during our quarterly produced of this roughly equivalent profits amount
Our our exteriors to incremental tied acquisition additional to of creates Allied expense. higher added it and depreciation interest northern also fixed cost markets, burdens concentration additional
I'll overall these exaggerates loss the quarter accounting expectations. further, new minutes. several Additionally, within preferred convertible particularly full year magnitude the context for our the the treatment the next second our of the all of walk of impact through in
the expenses in fairly quickly X.X%, quarter, final our markets. consistent but handle volumes our winter but Hurricane had with a storm that that single as shows rates were January organic Irma. growth clearly impact growth organic not more the we also monthly with are will winter growth starting the month. weather have line, operating digits. added outstanding First, increased to of some during It in There the de-lever significant X%, deeper you quarters due this regards we story sales daily costs in positive would in a our This March X.X%. explain able that sales the sales declined our Florida little weather we're sales volume, sales back when detail February to performance second the to the delivering help mid out Florida trends to Without but our the occurred is in declined during the Florida, in in quarter. declined
the difficult Although cumulative gain and the as years. past considerable over particular, we're these extremely February faced results, than mild sales with month a satisfied compares XX% two winters. not comparisons The we featured in were greater
we our mix with complementary commercial residential discussed, ties gains, with roofing experienced. three and shift This mixed weather lines posting organic while issues Paul business also the were As declined. primary
winter April in saw the mentioned month on organic X% approximately the residential past, during steep a of difficulty working to in sales we've growth. we'll always roofing roofs. bigger decline see As challenging weather, slope
to we in the a but approximately important price our the two also expectations to As are on mentioned, for story. points April. quarter the combine was understand in very data promising basis XXX gained to These half parts Paul make QX. significant year. revenue weather There in moving points of the second start The quarter, second many weather
headwind. consistent a hail single our ago year from from negative We you publicly producing Texas mid primarily is heard what comps suppliers. believe difficult the digit First, this traded with are
harsh single winter as a represents weather Beacon. digit the also Second, negative impact Paul discussed mid to
low XXXX's a providing digit a Third, negative we had Hurricane that's perspective. comp Matthew from fiscal single
are digit single you mid positive regions to basically Now adding you you the side, those Harvey organic Irma growth. non-weather growth we produce When for single by mid impacted finally, to exclude continued solid element, together, weather and growth all our put the flat reported. digits. get pieces over the And when as quarter five overall
$XXX now Going revenues We provide positive expect of million into to also $XXX and sliding our Harvey XXXX. with in but the the half contribution first million XXXX, to some forward, contribution. had Irma a previously majority anticipated we
Specifically during million the is impact Allied. the $XX quarter, hurricanes million and another $XX Beacon from estimated realized to $XX approximately second million across
specifically margins noted on X, on the shown during company-wide points basis I'd out as margins gross improved this point second XX although slide gross quarter. page, to on not our Moving that
period, strategy. great reflecting gross of combination the margin a The organic execution margins, declining our to from by an As demand XX.X% decline impact. XXX roofing acquired was with residential the prices a points, lower XX-basis-point on margins our to pass our related decline. price our businesses items Winter faster represent higher a XX-basis-point sales within highest margin, A about compared the margins mix direct unfavorable which rising in lifted and negative over attributed to costs market drag offset majority acquisition decline software margins unfavorable growth our again partially is difficult customers overall outlined This in came overall basis Those XX.X% than geographic XX-basis-point previously, at product drove two-step mix year-ago increases within gross time existing category. price realization. sales by winter to in historically relates deferred product to about end and further impact. the on in of
As Paul recent will mentioned, a only occurrence those short-term examples. and we similar pattern will prior the most margins feel XXXX that rising prices. prove noteworthy this to very periods that had strong and are follow XXXX our a gross
to While not are increases, We complementary increased a sizable more we report XXX-basis-point XXX XXX-basis-point very overall the cost our during completely second increase excited to offsetting in basis quarter. than pricing points products category. our realized
XXX and price rose quarter basis our gains we roofing more roofing to some increasing first experienced We than prices residential that's also saw residential points, XXX points meaningful roofing Commercial in basis core categories. four XXX the in basis points prices years. increased over
we February price XXX basis into up more increases up marketplace. basis basis positive XXX April the points. commercial cost basis as XXX basis pricing through month. points prices Complementary up points very even early are increased basis points basis XXX costs while pricing XXX XXX points January quarter, mentioned important year-over-year, the increases overall basis points the points that XXX XXX trends our experiencing points; and continue as quarter, points; and As roofing XXX up March seeing to inflation. And price to points. of into the up March every we're improvements Paul also to XXX previously, implemented basis approximately residential went was being points, was costs cost points were all increased basis basis categories roofing product In basis are with to XXX over XXX
continued the several sales, to gross drive as implemented mentioned, label to other product the we initiatives continued In initiatives to increased have shifts, mentioned we challenges fronts. we're addition saw improvements Based on margin private to these mix increases freight other are several April. addressing to that the gross improve Paul margin there gross price I on from improvement surcharges, margin price and in
almost our over points, basis price fact, basis is the to and in strategy XXX market XX demonstrating overall GM points QX by In getting we're improvement the working. results clearly
Now moving on to operating expenses.
million of operating or total sales. XX.X% Our $XXX.X expenses were
amortization the targets are initial sales. million, was acquisition. and acquisition $XXX operating associated of of acquisition with as million Allied amounts The charges Allied part with $XX These the consist that million the aligned all Excluding million, adjusted or costs of $XX.X of $XX.X costs of of cost of non-recurring our acquisition. $XX.X XX.X% million
$XXX.X the year-to-year were or a As expenses marketing X, points non-recurring quarter. sales. slide million operating $X.X noted on million percentage basis operating adjusting our XX.X%. for the adjusted When as million outlined XX or $XXX.X costs existing for increase market a charges, This existing represents were of
as some due to I'm of up cost up Now, operating our Florida, over X%, the operating we Florida incremental is sales locations. revenues expenses impacting specific definitely we $X going increases increase where serve serve But business that operating not factors With sales. had add significantly lower in in can were existing total, Similarly, to were sales million market and up quarter hurricane-impacted California provide as to the again did cost only increased we Florida in the up were volume. adjusted volumes increase. of percentage did nearly million $X in a Florida typically expense. our volume great year-over-year their our expenses substantial fast to operating gain leverage. as expense We our XX% XX%, second our leverage our as
million item year-over-year. difficult as to program this our cost up it when quickly was the for annual is is Third it Unfortunately, volatile cost reduce weather $X us increase our as more quarter. that is drove compensation merit about
XXXX with the weather a similar profile is million XX% not to about operating patterns as we've harsh of cost during winter percentage get winters. to our the second markets of sales. in leverage expenses quarter seen $X sales Our areas us existing the had rising satisfied other markets inability expense, We're in operating over existing and higher cost XXXX impacted expenses. operating
While effort many winter to we are months, elements manage during these make that flexible. cost simply fixed every not of
In demand the from through will EPS. you experienced us issue. to also net the a May. dividends The in our see $X.XX or addition, to acceleration also new $X it's for impact necessity $XXX our for million position line, the March amounted convertible typically the for million Below ourselves income preferred of quarter roughly declared
quarterly is years, we calculations dividend a conversion While exclude the likely In expect of to dividend not going forward, exception similar EPS diluted full expect shares other XX this quarters full the adding to and factor to second our share approximately shares into future preferred and quarters. assume count. with we our preferred of million instead for
Our XX%. tax approximately QX was rate in
and anticipate of guidance remains unchanged Our range to XX%. we a XXXX XX%
as as our with cash and FYI, amortization deal acquisition reform X% as at the rate of associated a approximately well cash full is an to Allied impact tax addition XXX% As incremental the the act, very capital new favorable a now deductibility Aided us. tax XX% by cost for result for of year. the
some I'm going to sheet. and spend cash our Next, flows talking time about balance
fiscal the last As $XXX the million XXXX. cash from $XX payable impact is flow first to noted six million, end But first in of months we XXXX. X, operating year-to-date the spoke you quarter quarter a about accounts favorable timing if slide recall, below our detrimental benefit in on
impact, operating of compared $XX.X million XXXX. was QX $XX.X quarter second cash million a to strong from QX in that flows Aside our
working $X.XX we As get job should continue as slide end year noted this acquisitions. The primarily an integration, million teams billion continue into improve. our we increased do Allied comparable our a the of in on of from X, capital the at ago, further $XXX a to to to And as quarter the excellent quarter working managing capital. result see
that you plans Our synergies two defined debt leverage transaction, over we have know, we increased when X.X for of times Similar the million. net you our to is projected at leverage ratio leverage net $XXX but the RSG as reduce next Allied, consider years. our debt EBITDA
outlook. our to want provide detail turning a updated bit X, slide Now regarding I XXXX more to
sales As Allied increase billion $XXX the our and more slightly Allied higher to can X.X%, increase than on core two you of by sales The this quarters contribution. we're inclusion. XXXX Organic X.X% to calls revenue midpoint. for over expect Beacon to attributable our of growth organic move to single-digit $X.X will raising the X% approximately next view X%, at three now based quarters. high from million add year-to-date We growth to see, with X% is and
winters month, we've As highlighted we're and inflation we've May pickup XXXX. will growth to know, are really QX forecast. stronger you into driver at believe And price sequential that a in anticipating benefits. also colder in looking and this across for and you the we demand. Beginning summer and monthly the a comparisons early demand need lift snowy May our even areas activity easier, When June of repair further many affected as continue these into incorporated re-roof the acceleration plan, should understand also of
a It's year half the pricing demand X.X% to a X.X% and do second first winter weather should the approximately second the the for from of positive And anticipate half X% been year. the entire single digit low-to-mid meaningful year, During half drag we materially year. we to contribute are contribution. expecting in in shift the
our recall, you flat prices. previous called had If for assumptions
$XXX essentially Our reducing to of been has million $XXX $XXX the $XXX from range million to down lowered a million, by to adjusted million. $XX midpoint EBITDA view million
during But previous The negative to steady of margins timing points during the margins XXXX lowered basis anticipate margins year-to-year significant half Our approximately overcome. and we our gross price-cost nonetheless, improvements gross effects first from the XX hurdle our would EBITDA be is overall of to second expectations. half. created a
savings. cost and the procurement see on boost industry's favorable very more this operating should our plan to cost now controls savings targeting even to previously year's costs anticipated We're leverage million favorable benefits pricing outlook from model We're of also attractive approximately optimistic drive one-third $XX expect two-thirds cost the from results. show about gains. and these to contribution. $XX half additional We operating synergy had and Analysts providing line We million a leverage. second
addition, coupled view. to from quarter's believe to Consistent with also the partial I'll make take of portion range turn second EBITDA the $X.XX $X.XX quarter these to This of Paul, reflects volume down reducing to will we we In additional are allow the new back half. reduction, during adjusted outlook the second to second $X.XX also before actions now all recovery adjusted half We've in but a with the year. it $X.XX. the with of miss miss our EPS lowered us shortfall, the we EPS your up our a questions.
