B. John Lindeman
by decline million, sales XX.X% the in pricing cannabis and to see promotional decrease quarter Thanks, in we down something XXXX. a expect oversupply were industry. by is to everyone. activity of decline for related the remainder Net X.X% and was for the Bill, volume/mix The good driven second mainly was and The primarily year-over-year, pricing volume/mix morning, in a XX.X% driven $XX.X largely decrease pricing. in
up QX, when our continued sales, total the is in second to Consumable sales the approximately quarter XX% 'XX. of representing compared products roughly of than same our make of total X/X which more amount to
compared year. quarter solid brands XX% our the was in to mix net approximately last with to increasing Overall, XX% proprietary brand sales of
the million net of compared in of $XX.X the was million sales period. $XX sales profit in compared million ago second to the XX.X% XX% profit ago quarter year or net to $XX.X million was year in or Adjusted gross Gross period. $XX.X
margin a to proprietary decrease adjusted rise in Typically, profit when mix. related expect a very brand rise is see our lap. we difficult gross The our margin we to in a in experience
facility in to manufacturing due QX favorable in our However, strong year by harvest spring manufacturing weather consumable enabled in of an Alberta, experienced particularly in facilities last we Canada. productivity peat primarily early certain early
relatively higher manufacturing experienced year. consumable last products also We for throughput select
of pleased recorded least since in represents we the said, gross consecutive And fifth our highest this have any our with third at quarter that level quarter all margin gross IPO. adjusted we quarter profit overall as profit QX are adjusted XX%. With the marked with margins trend
To perspective, adjusted sales base. year our larger into margin XXXX put profit was XX.X% gross much that on and was full that
our continue last cost-saving than to be our consistent with full year. XXXX profit and year margin full execute year the we it to actions outlook, With we expect was higher XXXX adjusted gross
now our most restructuring an and provide update I'll cost recent on saving actions.
rightsizing sale great and restructuring contract May related equipment to those products. inventory Our and of durable second respect XX, now manager to made this same products on of progress. phase we our In to focused an on we with On exclusive manufacturing footprint, particularly the products. closed IGE-branded produce our manufacturing are great quarter, the aligned is equipment primarily with
Paramount, facility Northern consolidated facility our operations June, California. In closed and manufacturing we those our into California in
we Also facilities. into in intend remaining grow and consolidate all smallest our manufacturing of production June, operations ceased some our media facility in or to those
manufacturing facility, Northern California In further July, building. the in reducing our rightsized we approximately XX% space
our activity peat consolidated completing these After into and moss manufacturing up our actions, Alberta, of locations in have we plus processing Canada. U.S. X all now facility harvesting single
we'll to in integrated peat other make progress business, the in and now have areas. continue integration on system We fully our ERP system
on reassessing more evaluate we restructuring as Lastly, become our network. center and are consolidate continue efficient, to the distribution now we front, opportunities to
help actions operate these more efficiently forward. going cost will and expect effectively us We collectively
compared SG&A Moving $XX.X our cost a general to and was of story on last expense, as million compared which second we quarter, our for good In us expense administrative to to business. continue to million continues the take the out selling, $XX.X be resulted fees year. savings Adjusted of of the facility XXXX. a range count, wide quarter $XX.X more to reduction million costs. expenses across were and head than when insurance expenses, professional XX% reductions These including $XX.X second from items, SG&A in million,
our to to Adjusted the compared second EBITDA The by $X.X reduced the was SG&A regarding profit in offset adjusted prior dynamics gross expenses. adjusted the decrease quarter due year period. million earlier part our million $X.X in in partially large discussed was
against quarter the cost-saving positive restructuring to realized adjusted drive that in initiatives X our lower further success This quarters levels. marks time the and ability we profitability the of EBITDA, have sales illustrating our last and fourth
position. on our to overall liquidity balance and sheet Moving
end million to net increase was XXXX, XX, balance June about of quarter. of $X.X the significantly as The first the to the $XX.X from million, balance of the our related of primarily compared of million. cash Our IGE sale assets $XX.X the up at proceeds was
second the quarter approximately million total term debt of million of inclusive with liabilities. financial lease $XXX.X debt, $XXX ended and of We
Our decreased of $XX net debt at to million from $XXX approximately approximately quarter last end the the million year.
does balance on and our until financial a maintenance October we loan not X As a facility. no mature our credit term to facility XXXX covenant, has continue reminder, maintain revolving
$XX in liquidity $XX credit the the Our total plus results cash of million. availability of line end of on balance at quarter million, approximately revolving of approximately $XX the our of million
sales. make to continue towards to nonoperating own the that debt in progress reduce York, add we when and/or excess we we real net complete estate which point, monetizing this on liquidity further Upstate could Lastly land New associated our
liquidity For all our these position. reasons, good we feel about to continue
cash million we yielding In free flow activities expenditures of of reported $X.X with capital million. of million, quarter, $X.X the flow second operating cash from $X.X
impact were Our flow the activities. a net for without to portion the about have quarter in asset required the breakeven of for operating as the free proceeds sale been IGE would be cash accounted of
earlier. the despite cash for for this second flow in lighting achieved relationships Innovative investing products, which new mentioned inventory position in distribution We Bill quarter
me that, outlook. With let year to XXXX our turn full
includes adjusted positive low year. to the to full free XXXX on We the for metrics full net cash the decline flow for EBITDA is basis, that are a which XXXX high teens to positive reaffirming sales our and year key guidance, percentage
from previously. all release to $X.X is also million exception the million million year slightly million capital which now down XXXX, to assumptions other earnings $X reaffirmed We $X.X in expenditures, with of today's full $X for the
echo lower over would to our we turning have with for even like up can earlier control to Before we questions, that profitably to Bill mentioned business continue operate set it sales. what and what I
are As we we great about we demand profitably. When picks position hopefully are up, a on back in to it capitalize excited look ahead, future. the
happy line. all the please and this joining Thank open morning, to you we're for answer now us questions. Operator, your
