provide most today. non-GAAP trends a in you release year-over-year these will QX. pro businesses. in thank the in Good third Thanks, forma over just net and press underlying X% I us to joining increase. billion Please more our impacting today's morning, into as focus for description Covetrus results everyone, most $X of items increased a measures year-over-year XX% the refer my comments third quarter of Ben. our for insight our on net or QX GAAP. detailed GAAP quarter pro with accordance organic Non-GAAP forma sales were result sales
manufacturer of First the net a impact fluctuations Choice in agency full impact sales in forma normalizes growth from year-over-year switches to the for States, direct foreign and quarter net pro M&A reminder, of Vets which comparisons. excludes both sales a adjustments United As sales can and exchange includes organic periods, for
customer QX These a for year-to-date. in XXXX. tied events, impact include a the little have forma impact within pro been X X% bit would and Normalizing growth to direct moving more QX, nearly from a sales those previously net America in results North announced sales loss in model organic than APAC the to manufacturer underlying the X%
segment this year earlier net net performance, previously sales sales X% America organic The North chain forma impacted in supply operating organic year-over-year pro in our customer QX. a negatively increased QX to announced X%. Moving growth loss of by
excluded. organic net ended Total versus platform. sales Our Vets $XX pro the is X,XXX and Choice growth supply announced million net last quarter, or when X% increased the QX previously QX, First XX% chain QX practices year-over-year loss in approximately customer XX% growth we to with in increased sales on forma year-over-year X%
to in net sales Turning pro year-over-year organic increased QX. X% forma Europe;
net increased is organic year-over-year. in X% forma sales, pro Our U.K. market largest our Europe which
the we announced largest is with business which Our of our on QX call. corporate U.K. from benefit our relationship expansion beginning Europe, group to in the
We experienced performance pro Belgium. healthy our in operating including sales our forma organic growth solid most Republic, from and net markets, Ireland, of in European Czech also businesses
first results. our pro QX, APAC half further year sales forma our the X% in markets; to in acceleration organic emerging on of to increase Moving and a delivered team relative net which year-over-year a is
and normalizing market compensated last that in think segment markets emerging sales it's event, year-over-year, resulting growth I group for year-over-year the digits rents of that to the for direct sales in note negative to the this served. number more continued than manufacturer driven APAC from customers important this that growth QX a X% impact doubled year, model by in
changes the Growth in of offset margin; gross would the Turning gross negative XX.X% from the GAAP perspective. a have percentage versus and was in both as businesses is If been flat from XX% in sales prior period. to a impact then technology higher Choice consolidated sales gross manufacturer net First year-over-year. of our product in mix Vets gross period, included margin customer our margin margins margin QX prior in a consolidation, relatively geographic and
This SG&A offset higher general to public expenses certain expected and infrastructure than selling, help ways company. our as implemented includes were to for expenses Longer the reduce a cost QX. QX to our operating the look costs we and reoccurring of being term, to organization. during $XXX some investments. simplify ramping new to continue well one-time as tied GAAP in measures and administration We will tied additional our of complexity cost-saving Our million further
the units, market Based exceeded value. the the QX goodwill share market adjusted to we and year based earnings an contributed our interim decline capitalization. in determined are guidance, on time initial acquisition at call, during reporting of that you were some revised February, a evaluation and GAAP. fair probably triggered value These EBITDA turn carrying sustained review of their full on events our which our which of our in the analysis, spin-off impairment aware, in price based we on As our early
As recorded we a charge, results. in included in that QX $XXX goodwill impairment GAAP a million is result, our non-cash operating totaling
Pro exchange, half was SG&A year-over-year EBITDA, forma infrastructure like among of forma first expense foreign spending modestly million Adjusted QX, also adjusted a growth the which $XX EBITDA, the offset on consistent compensation impacted basis, EBITDA year-over-year. things, merger-related is by exchange in higher pro QX Changes foreign and a share-based incremental of but impairment, on the to the the declined of our adjusted which $XX EBITDA profit. QX million million related which goodwill result typical and as seasonality year. businesses, declined gross versus excludes in with adjusted of negatively versus the spin-off year. in reflects rates prior items $X impact expenses, other excluding in
pressure our While of will aided trend to minute, despite value our improved chain forma term. by near we that continue benefited Choice in performance the results during businesses continued the the the see Vets benefit supply the was First in capture and across scaling year-over-year I legacy quarter, might discuss from a margin a that of sales many gross year-over-year pro
delivering late QX. acknowledge benefit realized acknowledge against from exited capture; QX contract, and originally the with has a rate achieve run remains million our the may our to Turning shipping contributions to initially measures we incremental synergies. run XXXX anticipated at more this by to been remain on early procurement year-to-date and than and activations sequential the million we and strategic challenging accounts. initial planned EBITDA engagement progress more rate aided from from EBITDA been benefits new dependent $XX revenue the target. unit value In to That to on we integrations in we on management increase exit global total, newly gains longer opportunity The run cost-saving and at take benefit, target to million recent though said, $XXX than on committed That track less anticipated are rate said, launched our the we customer $XX expected initiative efficiency prescription and based with has achieve. business savings
Looking statement million in income at the expense QX. $XX in approximately rest that we of the had interest
loss during the $XXX Our diluted a share net was per result loss non-cash, goodwill GAAP as per aforementioned million charge booked the earnings of of for quarter. a impairment $X.XX
Our for all on acquisition Please business. This way was income made seen pro versus know external in First adjusted forma adds reporting that versus with of of $XX now our amortization as periods Vets pro forma Choice legacy adding look of the acquisition. disclosure our the adjusted non-gap decision our and intangibles only net $XX net previously the for income manage for reconciliation to million the back prior acquired we was acquired align intangibles year. million back amortization all our
balance in XXXX sheet million and the and X of cash property net months operations and from the free flow subtracting during metrics. flow purchases $XX cash and million. Covetrus $X of flow. cash Then generated equipment when of million Turning first non-GAAP to $XX
of $XX to term For million the we $X.X and sheet, our borrowings spending year, on we facility. to and equivalents our QX highest as now in $XX our balance projects billion commitments. capital expect prior versus our have forecast long credit capital $XX with on expenditures, return million reduce We ended debt in infrastructure prioritized including in $XXX $XX million cash the revolver million against investments the million, cash no full
the $XX cash last this Our during as prepare for on agreement remain million owed the quarter. paying million despite occurred increased focused sheet on generation the Henry balance merger to $XX sequentially, during Schein which cash We fiscal we XXXX. flow
and net is XX, our X.Xx period into X.Xx ratio in trailing stood The inside defined drops to at Our the next leverage X.Xx effect XXXX. XX, September agreement ending covenant. the XXXX, covenant be approximately trailing June by will the year XX leverage credit net months for for XX months
amortization as agreement As for items, you run credit capture, for our consideration expect realize EBITDA to next we months. beyond We are first our look remain committed certain adjustments to term permits the aware, will and opportunities the XX we do begin value to loan including payments over rate mandatory million of quarterly quarter for the $XX to deleveraging that so XXXX. in
moving look including As to then de-leveraging enhance mentioned earlier, appropriate. focus, organizational our by financial flexibility as streamlining we our forward,
guidance, previously organic non-GAAP achieved low and full forma prior of net X% single one-time with Finally, disclosed in impact we direct a model sales year turning is forecast digits, sales to the negative impact consistent XXXX in our growth forecast. XXXX. X% remains America at expected our customer Note October in in continue of to our which the to pro our growth APAC the year-to-date in about unchanged moving from North manufacturer
update As EBITDA XXXX million pro access forma forecasting appropriate forma adjusted through we We're non-GAAP to we trends range embark of and EBITDA it's the XXXX path our forward year, on stand excess $XXX we outlook. pro current and the where now our and the organic in X - $XXX to months of million. the first believe current non-GAAP
XXXX, of As QX planning XXXX discussing we're outlook bottom-ups expect year our for next at to our process currently this provide we time, call. our our not on will in the guidance and conference the for be
a put a ahead. is better year sustained pillars order team growth our stronger in earnings the core position in in executing focused to Our us on against for
the management the our relating information Lastly, technology, on operation will as general identified reporting that more form controls fully over later in impact other that management. disclosed controls financial internal primarily area data applications filed failure our on control of of these be in XX-Q has deficiencies today, is security, automated, of risk management The from functions. and these the logistical rely to and security change controlled, logical of of and change aggregate and
changes there result not the The in restatements did reported, consolidated consolidated material financial statements previously financial weakness were identified in financial and nor current statements, no any reported results. misstatements any in previously of in period,
plan remediated and will in We've material of remediation this begun our develop XXXX. weakness, which annual for a be to report disclosed
for some over remarks. I it Ben closing brief back Now, turn to
