and strength to over last to the associates Dylan, team like delivering build begin decade growth company successfully rest continued of in to everyone. associates, looking improvement our the team. across December. I the performance, morning, management I to Board. upon beginning sales welcoming company Utz of Howard as like net the would our And this and and you, strong the also excited year-over-year growth. all would leading congratulating Thank with for quarter of by CEO Thank of for I Chairman congratulate momentum. to am I current and good Dylan the along you, sequential am the position with year's transition forward profit another of along margins to to record to
then will our quarter high-level our summary a discuss financial drivers. and we margin and performance, review I Now of will sales net third
quarter to $XXX.X an XX.X%, increased and of of Adjusted margins basis approximate net points conversions. XXXX XXX our XX ahead sales expectations XX% gross impact basis third Our from IO this were points million. expanded and our to includes negative
increased results. to Adjusted X.X% of improvement sequential XXX $XX.X million basis income second last was compared adjusted was XXXX of sales, by to which year. relative net Our or our $XX.X a quarter to XX.X% points million $XX.X million EBITDA
to performance, expense income net by incremental net assets due last the added rates adjusted and through good have new core in as higher we XX months. manufacturing also offset depreciation interest Our higher acquisitions expense, operating reflects several interest and debt higher
net some detail, for sales. starting P&L with additional the to Moving
X.X% RSP sales the in Our of of XX%, quarter an growth was from organic X.X%. conversion sales driven by the reduced IOs, of growth growth XX.X%, by acquisitions-related to and growth impact net routes which net
our than price elasticities. of Both was net continue by and by price/mix better pricing and XX.X% we as to X.X%. our lower-than-anticipated performance XX.X% were actions volume pricing expectations organic inflation growth to planned execute Our lower and driven sales of offset volumes experienced
simplify impacted proactively As focus Brands. to our anticipated, basis that had to XXX rationalization volume SKU portfolio, mix, we optimize our points activities our increase on XXX due to was by and meant approximately Power strategic are
margin X.X% features XX.X% the we earnings unfavorable as EBITDA promotional inflation volume In basis we XXX drivers selling also productivity points. and third In that in lapping and the include margins quarter, transportation higher XX.X% and drivers points. take we strong second addition, in referenced Offsetting change including pricing quarter, are costs impact to in temporarily by in to of for price/mix EBITDA positive discussion, expense the actions and basis continue sales. year benefit mass growth. as Decomposing administrative our quarter prior were impacted of XX.X%, and the offset margin of driven XXX were of expected improvement adjusted of inflation, channel increased adjusted the the these
increased well last XXXX expense, distribution accruals fiscal softer comprised for expense, commensurate performance due primarily costs Our and incentive year. labor excludes input as primarily inflation transportation higher higher last compensation, impact lapping versus administrative with was commodity Selling performance costs. year of which and as elevated to
we our support investments In addition, and Dylan increase planning our described continue people, capabilities in earlier, brands, our selling as growth. to to infrastructure
our margin Importantly, creation of with consistent and third was our the reflects strategies our performance quarter playbook. value execution
SKUs, XXX highlight more we and service a to optimizing Brand actions us partner network, and help free and plants rationalizing higher-margin distribution which certain focus on capacity have eliminated our time. our revenue and Power primary These SKUs with business than we proactively productive label Just to lower-margin will and up private are less in mix brands. over few, a
leveraging optimizing We our spend, talent and trade analytical programs technology, are architecture and price improved developing our further capabilities. pack
future our now and synergies going of drive platform, cost acquisitions us since importantly, ability And portfolio our all our from M&A new acquisitions recent integrated visibility block expected our better are important to delivering our to an a common to using building fully synergies business is public. which are operate scale. ERP these This for We systems. gives
second production We production ramping third with next of first of year. facility, production pork half our occurring XXXX up the for Kings chip new and the at Mountain are planned in kettle our quarter
will certain recently Importantly, increase Kings for Mountain constraints. supply more been certain subcategories have by affected key that capacity
productivity network efficiencies, formulations. and including are our we logistics work optimization, Finally, programs and executing packaging on product manufacturing design focused
of track of deliver of to helping which are COGS, is gross We year this as to productivity inflation. on percent X% approximately a offset
talent More these continue expect importantly, in environment, our our incredibly area. proud during a and into momentum year will programs challenging execution build to and beyond. capabilities this improved this have I we XXXX significantly and am fiscal of
our operations which with quarter discussed, cash previously the booked multiple and rights buyouts we of cash first treated year from Now turning flow had in third million, up this the GAAP. cash Of expense year adherence impacted to flow, million. an the and by generated as million we were stronger as flow flow our cash of of flow third-party $XX in sheet. DSD been the note, Beginning year-to-date distribution $X.X terminations contract to in has to of cash balance brings quarter as that $XX.X
our normal addition, in expenditures of source were quarter, in fourth seasonality, million. we and capital to quarter. to consistent working the third the with Year-to-date, performance a $XX.X expect capital continue cash In and be this improved
and cost In acquisition. expenditure our capital as GAAP, statement As of on Kings facility. of of in an was the closed recorded million we accordance a a not April, flows Mountain reminder, purchase transaction this the and with cash our announced facility as $XX.X
Excluding be Kings $XX.X expenditures million. Mountain the would of capital purchase facility,
of Xx Net Moving adjusted $XXX.X or EBITDA debt million. was balance to normalized sheet. the end million at $XXX.X quarter
$XX estate real senior of entered the as XXXX. secured a and previously term we third In in maturing addition, after quarter the of loan new million, into end we announced,
from Pro interest rate this low rate real an instrument financial flexibility used and place our were loan amount excess to under puts we loan down in maturities to of quarter strong to significantly going to XX, this via October million now transaction, X. distribution X% And strategic the this that third $XXX in rate balance structure we continue rising reminder, as liquidity estate pay debt XX% Amid fixed rate interest of generate our a X.X%. growth. our XXXX. of October as increased approximately Proceeds million credit of covenant-light with approximately environment, And financing as of facility, expand for forma comprised is Also, fixed debt $XXX ending term credit as until this Importantly, is instruments. significant at our fiscal swap. to cash compared outstanding long-term increases fixed an our a no have revolving our has as organic effective debt about a the full just sheet. on
We have leverage. EBITDA loan reducing we which while work covenants on term B, our on maintenance headroom, no provides significant
Now fiscal outlook full-year turning our XXXX. to for
raising Given growth EBITDA our our stronger-than-expected are we better-than-expected sales demand outlook. of XX% of continued year-to-date XX% organic sales and price net XX%. strong again, expect We to performance, total net sales and to consumer now and elasticity, growth net adjusted XX%
As now price/mix net price and than outlook our better XX% we given fourth assumes results, sales similar quarter be to in benefit. fourth growth elasticity third performance quarter into results, to our impact, more price deliver third have quarter visibility our quarter to volume
quarter, of and unlock branded our the and distribution incremental with portfolio outlook Our an SKU growing enhanced optimize additional our fourth products Power focus capacity for to continued prioritizing as rationalization production on we volume assumes in strategic Brands.
to input year-over-year approximately raising This of raised and $XXX inflation for translates a outlook to stronger the benefits X%. productivity, outlook EBITDA of again, from X% gross growth million. a we $XXX net million from range to outlook, are building adjusted growth X% of unchanged to assumption X% a to growth sales cost pricing our our and Given
to lower a expect seasonality, margins. margins than As line be in typical with fourth we third quarter reminder, quarter
and sales raw and selective We these more fuel in prior increase May have continue pricing of high-teens to this inflation-justified actions to our executed we costs, February year freight, cost actions, these as gross a the response year. results seeing rising input implementing to materials, of in mid- actions new have versus expect to we October. been were and inclusive inflation, labor, you In be in been implemented build and percent
management year inflation to low to Given price/mix actions double-digit better-than-expected expectations. help revenue we our to deliver this date, cover now expect
due of expectation In now now capital is of versus in to certain $XX million The previous timing of XXXX. which approximately the spend addition, we $XX to lower fiscal projects, estimate expect this our expenditures million. year occur we largely
As a reminder, the price of the purchase our Kings CapEx excludes guidance Mountain facility.
expect and to approximately of consistent In tax at be with leverage XXXX. addition, net continue to year-end an year-end rate we effective XX%
Before the stepping XXXX, exit successful like up to thank once would strong call back to Dylan, our entire Utz I XXXX. for fiscal team, a over position a again turn setting and to I us for into
partner, counsel Dylan Dylan. coach and In thank want addition, Thank the Chair. Over continued operator, an his forward and I to personally Board's to being for I from to incredible you. you, look
