Matthew J. Foulston
today. you, broad we're thank sentiment. everyone, his and echo I shared Thank our you morning, brush facing. would challenges joining Sam disappointment with call strokes for operational the the Good in Sam. and you
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a operating contributed Volume, topline, Excluding about well and slightly our this short. up tenth of the business in fell the improvement performance year-over-year. from our pricing mix, quarter. prior-year results, each sales a percent were Below
Our third of the adjusted to we quarter was guidance short range diluted the $X.XX per $X.XX. down posted $X.XX, our in $X.XX year EPS last third of and fully share quarter from
was with and have are on which Our for detailed poor, quality slide you our earnings disappointed operating we very we XX, performance.
year. offset you foreign drove company through filing, the this resolved the XXXX elimination in which partially Under operating income control was federal improved the versus U.S. by of the by contribution tax to the tax filed as $XX which of of in the change was approximately and XXXX. of Brands TreeHouse was and the of law, in quarter lower the the walk but to not release Let expired drivers million. prior driven we was has the credits last decline third This able the of foreign quarter, of $X.XX our benefit utilize the about or tax And credits return, related XXXX statutes $X.XX acquisition Private me internal certain restructurings tax bonus cost the totaling from rate, TreeHouse had another and utilization $X.XX. tax to tax unfavorable Division certain position. reserves
earnings much The other foreign from to quarter benefit the result, a currency. manage a As in third the primarily of allowing more $X.XX to efficiently we repatriation operations future. us relates of had our
Turning next and broken XX. We've to division. XX slides by the out results
here, year-over-year can underperformance Beverages you the see by a well. than more with very Goods and Baked As performing Snacks explained basis on was
slide distribution last freight were the primarily compared commodity rose increased DOI million Turning sales increased than quarter. million. costs. third sale million, down and XXXX the lower more reflecting was Baked $XX profits were In soup business, year's division to compared Condiments, Goods to with sales but of both up XX, down to $X offsetting and costs only Meals sales $XX
we addressing challenges in service. However, This around large is DOI one part In case, business and we've is due pack won some after new been a large as down not shortly $X and a million. a with well. customer it launch, in some switch particular to customer affect other customer resulted different but for which with customers customer, getting production the only to size, requested behind began that capacity reduced to
reductions. unnecessary service Our de-prioritization caused focus levels cost of on
cost we beverages. the were attention broth, being and Now the and was due last business sales branded DOI in won reduction. by weak in year key category and retailers, versus $XX.X bid finally, million faced and that declined legacy higher in quarter, pricing business. margins levels lower Snacks, last commodity declined million single-serve, to costs. of as quarter year, at are And back across due to service creamer, pressure new exit and liquid the to return $XX able driven be customers our Beverage we to will trends distribution from large freight increased million sales up $XX unfavorable in gains lower Pricing competition. versus improving, co-pack
July. took effect Some pricing in improved
which be plan to sales $XX muted XXXX; our declined value until addressing up in as the contractually by the and pressure bars; customer and commodity stranded company's margin that we costs QX. through Unfortunately, that benefit, related passed pricing commodity largest the million However, and DOI driven product history. we ended versus delayed costs well as rollout nuts with new incremental costs added we as trail was launch mix unfavorable in unexpectedly management more mix, bid program. through saw are can't
our third to Turning and to slide debt have XX. the a reduction the winter ahead Private $XXX over delivered since and closed our transaction. normal from inventory quarter, second in now of quarter We're build Net balance finished of sheet the pleased ratio leverage Brands we up reflecting million billion, slightly seasonality debt months. $X.X at the on net
you with buyback robust outstanding X.X QX pleased peak. a What leverage continue about believe XX, generating in our capital Our share confidence represents balances board program, $XXX and QX is that with working be opportunity slide on inventory our to I'm approved we under really shares, ratio share XX% remained our expected today, reflecting capability. meaningful million cash to to of times presents our below which
buy place in $XX impact minimum, a that, systematically offset of a dilutive very compensation internal back at put will of equity we per XXbX so million the shares programs. program to year, will We approximately our
shares total with Beyond repurchase a $XXX that, opportunistically million. cap annual will we of
return growth the to to down flexibility the maintaining while on capital future. us opportunities or allows with acquisition program repurchase foreseeable activity paying debt potential to limited shareholders capitalize continue Our to for
TreeHouse the of year be flow what we with which out. the consistency year is of free to believe in and generate One I cash under-appreciated qualities
as face. and business comparison understand to state I'm XX and help guidance turn into going walk happy for guidance but of to do now to you it's this where me reduction. to given challenges be baked where headwinds slides were I'm we sit our Let well XX down and today second back we we taking guidance and thing the time through we the as right revision. not the what to in the in the go through our you year, August
to have full-year decrease but XX XX%. We margin still to The $X.X of a expected will XX is sales be lowered range, XX.X% XX% to XX.X% the to between in points. and our of tax rate billion expect trimmed and billion SG&A guidance to gross our as a basis sales $X.X to by percent range
operations. approximately us cost, to all guidance XX, Division $X.XX $X.XX a earnings is to $XXX to EPS excess with are by across $X.XX full-year results, of foreign tax see QX and U.S. down benefit to of the allows tax million $X.XX. in we of As $X.XX. more discussed almost repatriate repatriations can you by in the per to shortfalls On adjusted resulting with our range to And $X.XX the EPS planned utilize from bridge between their implicit our bottom divisions. to generate guidance in that to coming forecast share The slide or fourth quarter our today. August are DOI foreign taking of is credits $X.XX efficiently adjusted expected ability QX the company's line quarter. credits the a our Certain is down tax
lower partially $X.XX planning. will in of TreeHouse bonus the to largely elimination that SG&A, of We tax due $X.XX and with the offset
on third You'll than reduction a related our we've that guidance also risk that less indicated to is notice XX little slide a adjustment. of a
Let me explain.
direct done guidance Given taken our of results, this last the layer than broken DOI quarter shown decline attention on added revised bit our along repeatedly in the me believe of position and and our division It's revising divisional near-term where impact the we customers, as but be you a have the in is and percentage over found total a we in right slide we've normal year, the to decline approach. the increasing conservatism. issues year, division we our deeper of XX, Having let side. ourselves each volatility extraordinary, left-hand missing and out guidance now for our to the operating large this what the forecasts your third
you of were and Condiments revision. As the drivers the can see, biggest guidance Snacks Beverages,
mix, we've freight, side, the warehousing given sense and to pricing, operations a which right-hand degree and have the played a and On for you volume role.
the up perspective piece couple get warehousing of division-specific issues freight follow on Let's and everyone. I'll and impacting that's a into the with our as
significantly three for We outlook main have for Beverages revised reasons. our volume
we have to QX driven inventory First, strength our current we discovered build volume of metrics. reflect run by was and revised some our rate customer
same new customer. some we volume large some but which we level of lost Secondly, applied And not that lift. of have per business third, achieving lift historical historical also to SKU, business we we're won currently
result challenges Condiments, a described in mix the earlier. volume I to of Turning reduction is the service outlook of that the
well and now been resolved, While has our impact it the that volumes has to efficiency reductions. some with customer operations carryover specific our had issue implement to as other ability cost customers of as
fourth Finally, our assumed a softness in Snacks, into large reduced few the and we've that due across assumptions we've to pricing volume, quarter. continues customers mix
can allow some year, related passing expected front, that unfavorable. pricing Snacks success And performance the from pricing the had by to our been to commodity We've this quarter fourth need be product implemented. year-end. On we along the good plant in this continues ever-new earlier than while while higher assumed costs this there to have half contractual be we've arrangements also rollover been the to before we launch largest year, have expecting of issue behind are into be greater us the our heading back startup costs to
you divisions this increased facing issues As our and of is delivery chart, on can all one the warehousing expense. see of
$XX roughly total million reduction. next to accounts guidance slide of turn XX, issue for you'll this If our
a supply. quarter for recovery of network increases. recent short-term you're further tightened issue of As aware, efforts the there's parts in and is increasing the tight fueling in lack well trucking. have trucking capacity the is Compounding Hurricane freight disruption demand the which drivers, rail
this impact rates. of on spot an obvious has All
down the to rail recovery long-term slow the short-term pressures hurricane and outward for primarily expect we is trend alleviate, transportation costs. related on continued pressure to While
delivery and additional warehouses impacting creating out times. percentage, our no number of Finally, further when our space, customers more challenges of little specific presents double production. seen up during move to a running business, customer we high and to in from a we've plants, handling, collect notice. no-shows, or customer This pickup scheduled XX% to It of with see including is and complexity
and both today going opportunities and the the the all is as very not outlook environment It's of or fourth turn as say into are food year. business may the our team marketplace beverage quarter. also appropriately I on for to revised for we want may performance, and that that head our believe management a it's our guidance we've about are under-delivered past We few a of quarters has rapidly for realized a what to to as Before we evolving. be that challenges for well state accounted our as do that I we the difficult cognizant
we're turn then XXXX the better of on sense we're quick nearly the quickly update this to slides XX and Let give a to the of addition facing. carve-out, address TreeHouse steps the for this piece you month. complete action Very end we're and now the to of in systems XX, integration be will on business. at me The issues the taking integration and IT Brands through Private of all cutover, a
exit TreeHouse ahead our slide an on I the by of given year-end, you TSA we schedule. update will We On have for XXXX. actions Phase XX,
first planned. moved will production month. or of quarter. on end by Dothan, end December. We're one of basis unchanged, remains Alabama lines expansion, be to report volume as goal and two and I'm where complete will framing commitment largely we track operating mid-XXXX the production is will The that thought three of constant price Indiana, by and remaining to be pleased originally the Our slightly points Park we're And that move this mix we'd ahead assuming on by have margin the track. Plymouth, of end to of in line our Brooklyn XXX
as I. slated Phase approximately of the XX We have decommissioning of also for permanently part lines XX shuttered
slide Turning A facing structure. to issues now divisions launches complexity I customer from pressure bid our and new the the earlier spoke to XX. cost changeover product about bit to
two facilities. together the made up of we've led operating over acquisitions our XX come large all practices to disparate which years, past organizations has over Within time, as two across
to out TreeHouse best operating XXXX, focuses one consistency manufacturing key roll we of is on the operations. As TreeHouse elements structure, practice which and bringing of program the all
damaged service and achieve business has we operations, with levels, yet on integrated chain to growing the management. supply than in in but inventories, manufacturing particularly a associated benefits ensure have This organization. order success. expertise divisions, growth, one consistent much units entire process or distressed. While Simply just to two we our focused put, weakened more sales of the and with level need Not across higher in resulted the
a I manufacturing As overall have that TreeHouse operating on performance. focuses mentioned, established structure we plant
key teams three principles We resources they'll tools have months to months customer in to deployed elements of and And already. safety, incorporate of line supply and service, six plants other dedicated, excellence. there to efficiency, proven experienced chain five spend drive quality,
Importantly, improving our will train these in All to competitive we the culture within three position. of our indications are of employees facilities to that success part initiative great plants. each high-performing change will team a and our dedicated have the be
As you'll service, see we on improve slide the expect commercialization. approach And a reflects current XX, nutshell, we're costs, taking a and in that back-to-basics environment. to
capability market to help margin review and our X/X chain, to category our In more an We've growth, On revenue think need us margin we'll we outside customers margin to to we enhance so sales tie will guardrails, we to a We'll and metrics. we addition engaged and profitable rational pricing pricing, cost-to-serve incorporating categories. of What conduct management employ is understanding the pursue our and we'll set management And targets. it face of SG&A. pressures a customer tools position our end, intensity. as of competitive profitable our matrix gain give of comprehensive XX, supply the firm slide better categories. in must and beyond by optimize compensation and that a our team's more analytics and have in clearer margins the portfolio smaller may us go but I of customers
we the critical are pricing element interim, we cross-functional bid consistent are and at integration involved in effective I'm of personally and major where input all customer a bids unable Another contracts, to be believe committee costs. lock margins leading review In where smaller risk. the in in will bids commodity-driven
margin evaluate slide review using involved uniformly, to on data we XX, where and can across combined undertaking divisions on profiles. how Moving We've Today, a the an all and are of our functions, We're independent geographies. are staffed organization. improve industry comprehensive and perspective potential different SG&A. divisions, benchmark to our despite
to SG&A So other allocation as review cost balance reduce seek to consider greater in structure, will total. ways our meaningfully resource and we in our to we provide
to Our to action February those back in plan In me you steps detail is you. our quantify on call let turn closing, come to to year-end to XX. in slide
to portfolio, improve Both and XXXX, our profitability, management to customer business. simplify plans firm product focused the companies, scale decisive making about on Unlike outlook positioning near-term and growth base our revenue and is improve our difficult are our beverage divisions. In margin the and progress many the leader across well of network, private While as interim as SG&A. our as operational encouraged we're we and our unparalleled food other with label TreeHouse we're capabilities, order and incremental our in the lowered, food building industry. volume rightsizing taking the optimize most remain delivering actions in and
I capability, repurchase million cash as program our shareholders. that generating we returning like to capability Finally, our would cash remind supports $XXX strong began of to share investors
Let back Q&A. me over hand now to go it before Sam we to
