second X. Mike. I'll our highlights Thanks, start on with Slide quarter
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to year XX% Our compared the prior period. was XX% adjusted EBITDA margin in
to the term, long-term we adjust for enhanced cost in profitability. are this and growth our we actions expect position While in persist dynamic confident the structure we to near taking to are us
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cash than lower flow was last During to lower Free $XX largely the second quarter, free million. was year, cash earnings. flow due
As down drew expected, our inventory busier as seasonally quarter we we second the our entered in months.
maximizing due volume generation. balance X% Moving caused to trends, sheet EBITDA quarter-over-quarter are forward, was to long-term focused sales perspective, flow a free up mostly we our cash by and committed increased due on by segment, remain mix. partially pass-throughs, seasonal incentive-based sales higher deleveraging
Continuing X%, to and unfavorable contractual with by and unfavorable
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said, to decline during year, QX, the
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of sales year by the backdrop, that higher Some help product over into of margins EBITDA Foodservice to promotional to variance points. decreased the material and costs rest year-over-year volume, On a The pricing, margin cost to dynamics. on lower XX%, incentive-based and to activity basis, mix, were $XXX costs, broader due pass-through
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as reflect to Bluff XX. disruptions unforeseen the outage. Pine at and scheduled operational in Turning Beverage as Food at the Merchandising mill April results the Slide following well planned outage
customers customers greater help necessary.
We've market. instances, choose from when gone place To base down exited customer to some products Aside in while accomplish portfolio preserve approach seen own margins. disruptions, lower-priced opted our structures emphasis their across cost others a on to certain our long-term their within operational some we've and strategically have taken have this, have business
terms the continuation down to net sales business. of exit In On generally the decrease and observed the the items of mill volume. closure North and our year-over-year in was Lower The reallocating Carolina consumer, due a food discretionary lower were to of due budgets strategic XX%. sales staples. primarily volume market towards was revenues certain inflationary Canton, the a pressures softening basis, from we
up These closure costs. benefiting pricing, Canton the Adjusted pass sales volume closure, versus year, Canton of
On temporary offset lower mill higher unfavorable revenues product offset margins and Excluding to and EBITDA seasonal
Adjusted at year, higher planned manufacturing volume. sales volume was disruptions by due decreased prior the mill annual primarily X%. operational in revenue down material a and last compensation XXXX, the manufacturing unfavorable the Adjusted partially mix, due cost XX% unchanged of to incentive-based compensation costs, were higher costs. EBITDA incentive-based relatively trends, X%, and manufacturing partially costs, by mill EBITDA basis, due mix. partially are higher by through. compared impact and declined were offset reflecting lower the sequential lower Pine by product to outage X% offset net Bluff costs sales to mostly lower net lower from
Slide to XX. turning Now
result is Before With certain our customary on the financial such guidance, update he provide expect balance $XXX sheet to a million QX. purchase impairment of Bluff to supply noncash in $XXX that I to entered to the will full an closing charge board subject closing use Pine impact briefly liquid transaction packaging Bluff long-term structure, as of Pine transaction and transaction. the business. capital, I gross we in $XXX a the million, to converting touch of wanted
At with which also on we to respect into of Suzano supply agreement to working year million the at adjustments price pack transaction, the of Evergreen's
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continue quarterly approval. occur to which Pine until results expected our Bluff in include subject will regulatory to We to the is transaction QX, during closes,
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Hence, it $XX outage important in year due during formal expect of weighted operational and greater the in adjusted the to note to temporary from issues EBITDA that adjusted reported and in our Bluff
closer an year the breakeven and transaction basis. event deleveraging for As a Bluff we run annualized full Evergreen a to Pine Pactiv be rate on adjusted be the to for XXXX EBITDA will expect result,
Turning to XX. Slide
and balance components selected items cash sheet flow. our have of We key
loans our of and upsized XXXX term prepaid our from successful senior proceeds upsizing on million secured we credit highlights to One QX the the for million due loans $XXX fully revolving a repricing $X.X recently of Together $XXX our our term facility, million with to was in of draw XXXX. $XXX due billion.
$XX demand repricing annualized prepayment
Overall, transaction, enhanced which and flexibility. annual interest our to we lender were support by reduced and with maturities, million. the our expense reduce pleased approximately expect our extended the for financial ultimately strong the interest We debt and cash expense our
reflects for leverage quarter to which net last slight largely and X.Xx, was Our increase the compared lower LTM quarter EBITDA. a adjusted was
due earnings of to we cash compared year. In lower free to $XX terms flow, generated last million, largely
us generating operate our business and opportunity cash our Our flow reinvest base these efficiently with strong to capabilities effectively serve we stakeholders. while more for believe the enable to will returns in growth, enhancing actions to more provide and us customer
Turning XX. Slide to
As were our market-related committed growth our first highlighted and earlier, in operational quarter which remain full risks we strategies demand. our on end sustaining highlighted results, an call, to excellence. we to year On Mike the earnings improvement consumer predicated
our half the overhead close full taking to of cost were which headcount recovery curtailing guidance adjusted partially and year spend. following fundamentals the first the relative market in challenging were offset year, delayed As to and we drivers: reduce account for we variance costs, other our XXXX expectations, new headwinds, EBITDA reductions by we revised actions the to QX end
We of from The close, expecting guidance. are is could contribution close in accrue which dependent changes October removing foreign timing our on X. date impact approval, the transaction the as so post regulatory receiving Bluff could Pine as early also
previous is well as the cash free of range million. $XXX with within and $XXX other to flow a This of to be adjusted EBITDA to Our roughly deferred million Consistent
Capital from $XXX a capacity distributed This progression of of internal $XXX a revised of approximately assumption QX. compares decrease quarterly close million. to be is expenditures initiatives. adjusted revised $XXX post second excluding adjusted million expected expect range the million [indiscernible] it we guidance our before transaction evenly the million. and to to $XXX million to in the in of million our as respect for QX $XXX of QX previous EBITDA, between plus. range This decrease our contribution guidance With follows: as reflects original is compares expansion million. $XXX EBITDA, and to range $XXX half
$XX a With our plan, to to and ending anticipated remain XXXX costs anticipate ratio restructuring XXXX. at $XX and at to of leverage to million we in optimization million. $XX the approximately expected total Lastly, These with charges noncash million are million, charges restructuring net footprint XXXX respect $XX occur Xx. remained cash
XX. to Slide Turning
the adjusted of EBITDA our XXXX changes our the to have guidance. bridge out previous guidance our break We key revised from to guidance
list which reflects the variance earlier, to drivers our second adjusted performance. we were we Bluff year-to-date of This to we the results. temporary First, QX EBITDA half X included Pine to related mill. majority impact relative in expectations. These highlighted our the drivers operational
The are disruptions items next at expect our our relate dynamics to that
our by of growth for down positive digits. across have followed We compared We anticipate full declines digits of year segments. full year volume low This lowered low fundamentals be volume QX, single-digit end-market QX. growth our in to low slightly single for volumes now reporting assumes will in volume expectation expectations previous our both single
to customer As deliver track Mike mentioned we earlier, remain wins. our on
However, some increased of in increase contracts second our we XXXX. consumers. markets customers anticipate sensitivity into expect and early face to the end price pressure the adjust associated to pricing from with We slip half those as to volumes
resulting the margins. of The some to are customers as the price need primarily demand, customer a recovery in demand, as actions have on function carryover of their customer well discounting has selective price the impact of volume preserve to it their to our consumer QX. sensitivity reduce taken during expectations cost heightened As updated turned a for the delayed
to and our to find proposition continue where seek price preserve and to We leverage points value value to ways volume. possible balance our
second during mix actions price bridge additional As the of a result, volume, the component half. assumes the and
by costs, million taking XXXX. the reduce head approximately targeted reduction We take expect spend. business the contribute and these included to manage expect in we we will
Overall, to lower count $XX offset segments partially actions actions to
our fixed the Next, be partially production incentive million year revision cost approximately expect to to relative of offset guidance. reduced results by $XX accounting EBITDA for compensation negatively absorption full full we levels, lower adjusted year to by our lower impacted
we announced sale QX. Bluff to Lastly, during expect of close the Pine
removed As contribution transaction, the expected a result, have is from million. Pine $XX post approximately which EBITDA Bluff adjusted we
date the outage influenced a the X, note significantly QX. and on to weighed planned important For this results the impact operational updated are disruptions second to QX, severe weather the Bluff assumes guidance, purposes October that of that along of half for closing with Pine that of due XXXX. to weighted the the It's
As Pine to breakeven a deleveraging event closer XXXX result, be to Pactiv full expect a on EBITDA and transaction be rate for to annualized we basis. the Bluff adjusted Evergreen the run an year for
expect full year year. remainder range. I'll us the we adjusted EBITDA during optimistic and end the persist within through mitigate believe that new second Mike. the to of the market year, guidance actions to to we the While drive remain position weakness operational half near-term year we that, call volumes over
With of taken we costs, the have improvements build in our back turn We momentum about second to the the to half taking the actions are of achieve increased
