the growth. from see markets starting customer though begin a and with end $X.XX sales increase to our are XX% the reported second a to inflation magnitude market material availability well, was increase of gains costs expansion of acquisitions. We to our outperformed by of sales and product X% response the to our we rising quarter share Material Thanks, contributing cost Acquisitions increase execution growth Slide highlights net [ph] due mid-single-digit frequency perform results. approximately Steve. X and growth product, We quarter quarter of costs, increases due contributions and the billion continued to net on I'll to driven for geographic to second volume in to the second price some The slow. throughout quarter. our continue in industry-leading quarter, and initiatives. of our combination
price result, million quarter half basis to to inventory the investments to moderate favorable Gross was accretive initiatives increases, ahead as by in margin a the and profit price a from XX% in gross acquisitions. of we XXX profit second and impacted margin anniversary increased environment, Gross price As the enhancement of margin rapid points our we contribution a $XXX pricing XX.X%. strategic increased second increases from ago. year year the expect announced gross positively synergies
for driving ahead. label innings these see of expenses the sustainable place as continue including We're quarter. sales net increased in was growth basis administrative SG&A margin our of of $XXX to leverage equity to have The $XX the As net initiatives of accounting we've quarters, in notes. global gross a optimization. points due expansion, year redemption The fixed with prior $XX the early to percentage XX.X%. the costs long general timing awards. and initiatives path the for addition XXX and sales was compared XX% primarily in initiatives the due we to XXXX in a Interest million in ability associated our in declined private quarter second decrease was on executing sustainable the procurement million year. and on Selling, approximately costs decline discussed second to last to expense through sourcing, the senior in one-time the in and the the pricing we of XXXX million prior increase with several to targeted
expenses income entities. net Our business margin We and reflects exclude as taxable The tax interests to improvement, year. $XXX pretax second in was XX.X% And quarter prior effective million due partially attributable differences growth, of income million prior The fixed with quarter taxes. income. Adjusted approximately year. of expense, million adjusted SG&A as an the decreasing leverage whole. for offset XX.X% lower tax to recorded rate reflects XX% the the evaluate improvement for $XXX gross of of income, is compared prior the we the percentage effective a and strong year-over-year in compared by only our and net to cost in rate EBITDA $XX in effects increased tax the year. we reduction a manage million portion each income in The noncontrolling preparing with $XXX as the net to interest compared was sales period adjusted that increase certain the second permanent
margin Our points the basis improvement our gross adjusted cost sales. structure growth, EBITDA on to margin net improved in due and net to XX.X% increase our leveraging XXX strong sales
an cash uncertainty, our and was brief increase operating improvement inflation like and cash and supply improvement activities an The primarily update cost from XX. to to and balance in was by million, during due growth sales higher ahead offset cash prior interest, a compared profitability Now, our Net the of sheet fund the strong lower reflecting higher $XX strategic flow inventory, chain supplier million receivables year. partially increases. Slide investments I'd on with on used to quarter of $XX provide
was quarter capital from borrowings the in inventory project adjusted reflects to support carry the of portions balance. fund These product We could ensure availability in capital continue longer net debt to billion, increase portion year EBITDA. and in the we X.Xx, increase debt the Despite the the higher and debt, of an in to working our a elongated of our to M&A due to see to to the than timelines expect our reduce unwind the of to lower Net customers. recent activity, working with coupled at improved increase cash attributable leverage year. expected dynamics $X.XXX the in net increase our end second half typically prior
XXXX, fixed value term with points. into we rate a to billion entered $X on of hedge part LIBOR July basis of correspondingly rate at the interest our refinancing our senior in X-year lack in notional As XX a debt loan
to at of XX, of facility $X.XX outstanding the billion. of hedge commitments lending the end $XXX credit of $X.X ABL of July governing $X approximately the million cash XX, July the value to had facility is billion asset-based of aggregate the increase agreement As letters which $XXX quarter, was the and the of net million of we under availability amount million. our consisting of million excess terms of And nearly we credit. by amended borrowings $XX On of the liquidity,
additional strong pursue over the growth believed beyond, expand flow to the operating was we borrowing X generate ABL business cash give our growth and opportunities capacity next we us prudent to they of as flexibility and anticipated expect months While support it to arise. to to
We have balanced that consists a growth. investments of in capital allocation plan
to and without is strength maintain growth long-term opportunities. organic inorganic priority flexibility and financial Our our sacrificing
market greenfields acquisitions in to We will invest grow continue or and our to capabilities. enhance our share operating
generate with seasons through a evaluate including summer We've year. and of strong and busy remain buybacks options up deployment the capital our for with sustained spring we the outlook and the momentum as selling of also backlogs. healthy We our wrap XX other for remainder great I'll share reduction. will potential Slide cash flow, debt discussion on our customers
and We expect labor demand as market rising persist. rates, positive, end chain to shortages interest even remain overall supply inflation, disruptions
rising are we certain in in see a slowdown Steve could development slowdown broadly. new interest see in construction we rates, beginning As more lot a mentioned to previously, residential geographies. With
currently However, bidding our residential positive. activity and backlog remain
been Investment continue makes sales. As especially a reminder, the repair activity economic demand residential and funds end market makes up our Repair roughly the of XX% has and cycle, of Act markets. expect through that Municipal which our replacement sales, our roughly end way strong. and XX% their net into up Jobs net to cycles Infrastructure replacement has as and next resilient historically make through from the we remained
supply due strong we activity net that Bill is to expectation not beyond development also Infrastructure our Our with ongoing labor or shortages. XX% Nonresidential backlogs. XXXX sales, which demand up incremental bidding constraints may of chain remained healthy makes from until see and the and
point year we at commodity-based ago. the price in off we expect it levels second contribution price moderate in the We of peak demand half the to cost from softens, second If some providing the to the year as possible products relief of a half anniversary our increases see could year. is chain, come supply of the
expect for we excluding acquisitions contribution together, not now have all net closed. Taken sales that XX% yet from XX% XXXX, the fiscal growth to
commodity less lower the the year second gross half prices be first part inventory We in the sequentially profits. than and due the margins moderating to half, in of to expect
fiscal our to in EBITDA the for in expectation factors adjusted XXXX to $XXX growth these are raising of range be representing year-over-year mind, million, XX%. million $XXX of to With we XX%
operating We expect cash to the XX% of for convert roughly full XX% into year. to EBITDA flow adjusted
in continue Our closing, is constraints, chain model what capable changes to resilient market. in and business guided quickly expectation than of the conversion adjusting have strong investing due to decision in In operating supply less we quarter for demand resulting leadership a to team inventory. a cash last and we to our
with At high our executing open positioned strategically value are paths We delivering customers, it level, communities on focused and this up I'd time, for to of growth. remain a shareholders. to like at sustainable We suppliers, multiple questions.
