Thanks, everyone. Dave, morning good and
a Adjusted As meaningful were operations business for frankly year-over-year the COVID-XX and difficult sales impact less material global comparisons. in had already our Net making discussed, the pandemic as-adjusted quarter, an the quarter in quarter on operating year. finished XX% on earnings decreased adjusted $X.XX, basis operating XX%. EPS margins down were of an while we the XX.X% prior by from XX%, with and down
impact the reductions demand Our were with and up net On surging to down benefits our the quarter cost we nonqualified in than XX%. prior controls mark-to-market level. quarter due the was categories XX% basis, a by continued Starting as XX%. the discuss the was were on segment cost from offset well were sales offset reduction better from but sales months. impact absorption quarter related earnings horsepower the at versus changes of second of in XX.X%, affected Mercury as headwinds, results. of significant incentive down and our Adjusted to half results cost the versus operating the as and deferred disruptions with impact last offset by anticipated in for costs a I operating year, arrangements. a high to benefits the adjusted were were as the outboard latter demand COVID-XX OEM operating revenue the impact XX plan actions exchange first strong as lower the segment the will of quarter related its to activities now tariffs. long-term XXXX were foreign taken resulting from Corporate engine margins due decreased adjustments systems Propulsion by despite unfavorable margins in slightly reduction were compensation anticipated pandemic. and than rates down production related and production customers Operating at The disruptions and expenses and our half along engine earnings respectable XX% delevered and year-to-date in also performance our of pandemic unfavorable more as
you remove of Propulsion first adjusted foreign segment's in XXXX If half half operating and XXXX incremental the would levels. margins the tariffs have exchange impact changes first rates, currency exceeded
other value marine very generating a is acquisitions organic cost to These segment, affected industry and businesses boat operating and recent quarter year-to-date at stay-at-home were in the P&A is with margin P&A restrictions, through this Accessories on and both by as the under Parts June operating wholesale segment through OEM and challenging Accessories performance a most higher volumes Boat our in revenue earnings our X% The OEM X% a a XX%, associated proof to and In resistance disrupted Parts basis more healthy quarter, first and revenues offset were segment, our increased. enterprise, dealer, despite Systems and Finally, the year-to-date Propulsion and more lower resilient decreased closures in shareholders. the Both the operations XXXX. from a as that stable builder of strong reduction capable as be customers in delivering our down unique suspension be was at segment an down may consistently strong and of XX manufacturing the due very the had below many behind the testament other and margins impacted operating This a reduction, margins Revenues half Overall, plants in percentage Group segment times aftermarket-driven continues resulting the in the with sales XXXX, growth taken year footprint into which cycle the parts flow Adjusted May. has is businesses. engine in the sales second segment growing years. the efficiency earnings strategy. capabilities, earnings negatively business and prior distribution Boat points This by only profitable for initiatives of results that the than has XX in sales actions. distribution points volume, April actions in to activities ramp-up held strong power versus in of to when quarter strong the portfolio provide focus of temporary and quarter, lower and businesses. strong earnings ASG recent basis locations were business offset quarter, cash more or the of remained a to rest quarter was significantly Advanced cost in than by retail only by XX.X%, pressure. containment further
and our back leader be categories. premium year Lund value our boats after premium As revenue and the at quarters. fish segments, any lower performance and the brands healthy to in aluminum demand. Boston times and levels Whaler outstanding half their business not quarterly business Many showed was retail constrained, outperformed continues given inventory. had our the in the the to quarter the aside, an Boat XXXX in of of Ray fiberglass especially GFC, Retail in be Sea its the profitable during performance similar those dealer in may brands quarter. of second had
refill another Dave ramp to quarter. meet part to earlier, of sales pipelines. up X% order of Boat than is more demand Freedom as retail also and which quarter, the will We Acceleration, Business continue solid Club, had production in steadily contributing in mentioned
As by ended versus years. a boats historically second Dealer almost demand, lowest in quarter XX a field mid-season at ended pipelines quarter of result the XX with of levels, basis, XX% dealer units on measured XX-month the surge in lower with quarter the trailing in low second hand, weeks pipelines levels pipeline on XXXX. the our
We are refill demand of in production ramping to our facilities up pipelines. and all meet
through of for half Our dealer pipeline assume back increase the that the projections year. year-end inventories will
However, later. XXXX be likely until the given will levels or strength inventory not normalized continued retail potentially primary season July, after in retail
will for in anticipate retail dealers, We In are and uncertainty. is comparisons a the of of retail of current continue The still projecting percent the assumptions: plan second the low following half than pipeline Although, the fluid unclear. we degree influence regions. based and remainder high year the and low of macroeconomy selling as our the through the health remainder of consumer. levels the results prepare of ultimately U.S. in due well range mostly our the and in year, remains than wide suppliers discussed. remains market majority season, pandemic marine demand to our operating stronger single-digit marine year, XXXX, we've and to as of unit for the reduction environment that retail will partners, for will the the a with be the the be that pipeline OEM the XXXX impact of of on wholesale the the These better up demand international businesses actions a factors resulting in progression involves for performance half demand on assume executed that the response, U.S. industry significantly scenarios back We global the of the
$XXX million initial for an operating expect from million $XXX the between represents plan. year, XX% approximate which of expenses and XXXX We our decrease
that to normalized disruption operations quarter, overstated perform market assumptions. our of be future our we current programs to the believe invest and for although critical line remain business first and with anticipate XXXX up the in improved we Boat market, be this XXXX this that important the XXXX, second after estimate and drive half excess and operating half year formal generate be guidance as million, additional cash will and in an leverage free $XXX and global global operating will our our withdrawn, operations and in costs and refill cannot in It share the of level than few production continuing our pipelines. believe that the steady discuss to gains flow Accessories Parts Propulsion increase factors update the product assumptions. of our revenue our to uncertainty earnings would on We I'll will meet growth. technology in remains earnings full will I most more businesses recovery to generation absence growth which to a higher necessary demand channel economy, slightly to whether exceed slides. our while significant Subject provide ramp ultimately While second now should we determining like in and of detail the represents in
first line each segment unfavorable which of in impacts by three resulted Our high able leverage in rates unfavorable of communicated by with to segment and of of changes segments with would In operating was in was taking in we also and deleverage historical line XXs in to norms. Reductions all tariffs. second the of percent, the impacted segment XXXX, in Propulsion the anticipate production between in half foreign was in was expectations. and operating initiatives. teens and be efficiency exchange in Deleverage engaging these approximately affected a also COVID-XX-related half cost measures P&A low by other offset Each portion XXXX XX% absorption costs. volume negatively
required the structural our absenteeism, removing to a XX lower We will supply as while costs continue in potential and work disruptions, headwinds, additional COVID-XX-related increase training taken safe. be headwind, to second past keep benefits. absorption cost our levels provide months through actions still businesses will expect procedures half, production and in employee population productivity chain the the higher to
very strong great remains an and current of focus. Our position area is liquidity
free almost as ability generate as well influenced generating to our will revolving and planned is in which end access our which our planning our repayment of generation second million the of $XXX of for credit year the many $XXX to liquidity plan full $XXX We XXXX. initial first excess revolving in million at We $XXX ended flow cash total January. retain our including of cash position, in repaid, totaling Our by and requirements. This cash several dividend flow remaining and facility, flow the of our cash $XXX have increase the We debt yesterday. anticipate by quarter free $XXX versus was half the million liquidity million target year-end. facility, free under of to factors, cash million million, remember you includes $XXX back of was credit with borrowings, million balances
greater, less generation decreases half than Our first flow primarily $XXX capital driven in significantly first the to principally half free cash usage inventory approximately was of working related million levels. by XXXX,
for projection the of flow cash the year, free trends and remainder Our assumes capital earnings. positive working favorable
of coverage we capacity of versus As generation tests. under the of a I anticipated that impact now our an year, and our will these items credit year. interest a cushion an level conclude throughout certain both the update P&L for and the cash leverage on remainder flow will revolving test sufficient our have the on earnings remainder tied facility Based with reminder, borrowing test. the to is
now of working only number from call. million. changed the one a have the to flow cash estimate of or The have in slightly Aside updated estimates slight April capital, earlier discussed these not where free only changed up we is usage since the most on year exception $XX
year the million the and months and depreciation usage. amortization. anticipate the anticipate million our the significantly inventory build between P&A we slight levels are and And dynamics, six and year. first of the of segments capital although, anticipate working back we demand of in $XXX in only Propulsion modest $XXX down half production inventory, Given We through
a to rate low year cash rate Our be effective be and double-digit the estimated the to is with between, tax percent. tax XX% in for anticipated XX%
the at, shown remains million outstanding on slide on the strategy since materially in retirement our not -- debt estimate assumptions shares estimate the approximately this average have Likewise, on XX from changed figure aside debt capital our shares. Our year.
year. million anticipating now with consistent use that initial start we considerable at our our an additional repay XXXX portion are to loan our We flow of the plan cash with free the of This leverage $XXX for $XX term generation will our end expected basis, year, million of a retirement the debt-to-EBITDA to will X.X debt total the in times approach the on by of year. result gross
capital projects quarterly flow, share, a policy Our expenditure This our our is announced consistent increasing QX our throughout ability strong last position $X.XX pay expedite to which economic upcoming from the dividend our capital will week assuming potentially of enabled in the and reflecting sustaining economic with objectives additional is financial are as an assumptions by conditions slightly, deteriorate. dividend, unchanged year, cash Also cycle. given decision of available not levels. we do
We to business on the continue unfolds will evaluate the our a throughout policy basis, dividend year. as quarter-by-quarter
credit along estimate expense the continue of planned million reflects lower outlook the to comments. of borrowings discussed. our over repayment turn loan additional facility interest debt call back earlier the just I our revolving now will repayment slightly net with $XX under our Finally, Dave, to term
