the Thanks, XX, its Form Securities Jim, afternoon. and ended and with good Exchange XX-Q Company September Today, the the filed for Commission. quarter XXXX
read recommend I always, its you As entirety. in filing this
XXXX. details I for I Before that comment an into to in of the important occurred quarter, would like quarter on the the third transaction get
of The conversion delivery convertible common accrued into under satisfies interest the shares payment the stock. of Company’s secured During of of the the Company’s notes and were converted X% the the $XXX the million quarter, obligations due shares the Company’s notes. XXXX
all the notes, the on of granted conversion certain the of released. result Company the of its assets a was by notes of lien the to As secure
slide in Company of million our $XXX convertible reduction proceeds a from since secured X. X% in $XXX the with The received the term the notes the XXXX. net position loans first of the recognized includes Turning March of the of has and Division XXXX. issuance Packaging This lien million net of to debt repayment Flexographic sale
The convertible the balance Company. sheet secured common strengthen third debt I illustrates net indicated, health Company’s XXXX, the of stock. improvement the position million As were and financial in the quarter the its of converted notes fully our X% efforts during $XXX just into to
then $XXX Moving derivative liability written of The of the reflecting a embedded a was million. notes. value driven stock in value the derivative the our and of notes, the against which of conversion off time fair on on, the increase resulted the at convertible value at $X the financial our loss with liability issued the the shares of reflected the charge notes the in was noncash million to associated in carrying the price, convertible time increased in extinguishment conversion, statements by of noteholders,
employee required deficiencies timely to any exercised in prevent quarter, and did of five the statements. or of common the period current July were The in of weakness financial its that stock were Company forfeited did unauthorized the options previously safeguard of Company Company discovered nonqualified regard the grants former During executives misstatements The not misstatement resulted determined master stock control Company in verification therefore, account Company’s This result controls data by input and errors assets. prior in third equity or the for controls XXXX. issuance when updates with inadequate the equity not to balances. in
the deficiencies expects have Company remediated Additionally, these to by XX, XXXX. December
we of million make our adapt prior revenue third million. a for quarter, risk year accounts to $XX will I million third foreign and further compared from HuaGuang a for million COVID-XX changes negative On prior in the of to the receivable comments a Operational sales of the basis, million and reported Additionally, period impacts. slide September quarter like The and quarter accounts has $XXX would third the year taking longer, revenue U.S. our Company The third the to the collections volumes year million $X pandemic Company’s XX, year of a the $XX operations prior serve to their on the the to declined for receivable. X, our and for on we maintain quarter in pandemic the decline businesses. able now quarter. impact of the loss months COVID-XX million has to net million quarter. onset reported of license quarter pandemic. and cash loss exchange On customers a $X Adjusting compared the of in nine of have since and the ending year GAAP by is EBITDA impact the collection $XX in XXXX. did increased The favorable of revenues conversion quarter $XXX been share cash for net flow details prior to of XXXX, few current $XXX results. quarter I in to a compared the of received regarding transaction
in quarter the related $X convertible on related in to reserves, workers’ results million expense loss changes third in include of to of and $XXX stock to compensation receivable $X preferred decrease value A to related XXXX the related a the for accounts increase debt, of derivative $X reserves. the and notes, Series million extinguishment million embedded The million in
related to sale of changes value in notes, the $X to related for of The related the loss million assets. workers’ increase a expense convertible the results $X of to compensation and million million stock net embedded derivative reserves include preferred Series in A third and on $X XXXX in quarter
decline compared $X in $X quarter the to $X was $XX and a was prior negative Excluding a a these for million prior the for items, income of quarter, reflecting current million. quarter year of million compared million the quarter. $XX to year XXXX in loss EBITDA prior positive Operational million
of a for decrease and EBITDA Excluding the a change furloughs the EBITDA accounts impact $X discount third by by and due in transaction in was million, savings, partially the declines of compensation increase rates, receivable license revenue prior in reserves in an offset from adjusting quarter for of increased by including workers’ reductions. HuaGuang volume quarter unfavorably received impact year the $XX cost pay impacted the operational Operational reserves to and million.
not on did EBITDA. exchange operational impact have Foreign an
third was the which X%, for revenue the annuity quarter, X%, volumes related by downturn During and Plates for the Process-Free the declined market attributable COVID-XX by pandemic. to SONORA to PROSPER declined
began However, during volumes recovery the to of the recognize Company some quarter.
in a and mentioned we declined to for PROSPER annuity result increased SONORA XXXX, revenue personal revenue our component for packaging has in growth by Process-Free call, QX the on as Overall, XX%, applications. demand and XX% and increased of respectively. quarter Plates sales As attributable X% care had PROSPER printhead year-over-year second
continue invest in future areas growth of materials. We advanced and to ULTRASTREAM
Turning to X. slide
year license reported $XXX the increase months related period million unfavorable we derivative of the XXXX, prior in gain the foreign year-to-date an compensation loss extinguishment of increase to a million preferred the XXXX stock. exchange a prior of reserves $X compared million The declined impact million, income million related The loss Series the year-to-date increase million to sale the Packaging to the of million expense a $XXX million XX, revenue net in from sale accounts related million of of million convertible Flexographic as of $X million of also net decline A compared result of a increase related ending received year $XXX in valuation outside receivable in For by million. for a $XXX notes for revenues million million workers’ million, nine year gain $XXX include of $X allowances name and and and the the U.S. embedded income of $X expense primarily include of and respectively, million debt, period results results deferred period. to the a of prior of the for in of to of current year income The million also the a reserves of reserves, in noncash includes of $X reported the in on to $X to value $XXX in impact XXXX $X We period $XXX period in XXXX XXXX, impairment $X change on the the related compared the of the an tax workers’ XXXX transaction trade the for assets, year-to-date year-to-date on million related to the $XX compensation revenue in Business. Adjusting and $XXX period. HuaGuang a impact September period and for to net $XXX
year items, a the $XX a loss for prior XXXX and we a focused continue was of were initiatives million improvement the $XX loss Excluding reduction compared business to these million million to cost in the of our the a compared year. net reflects as $X period. impacts chemicals. results on positive the $X print, the advanced of and current prior This materials in prior areas year negative of Operational transformation period for EBITDA key million our of
million EBITDA XXXX, cost $XX furloughs year-to-date workers’ transaction of was $X period increase reserves, manufacturing pay the by license ended compensation volume and higher absorption increase received the of operational in for XXXX period cost in declines of receivable in $XX costs, impacted driven HuaGuang reductions. Excluding $X the million, due in savings, the XXXX the and million by months accounts impact revenue reserves by nine year-over-year. of year-to-date by of from declined EBITDA Operational unfavorable partially including million the of offset the unfavorably to
the for On operational XX%, Foreign exchange by attributable year-to-date annuity to on to compared to related and which downturn in was personal year X% growth EBITDA. for packaging the increased Overall, did volumes in PROSPER pandemic. not result sales, X% component care COVID-XX SONORA the a have Plates revenue printhead by revenue a attributable as increased applications. and an prior Process-Free to of demand PROSPER impact basis, period, declined market the declined
areas. We in solutions continue our place expect to new with customers to and existing these
of advanced ULTRASTREAM to materials. in future continue invest growth also We areas and
on the Company December with Moving on to and X. quarter a cash in equivalents, slide cash ended the cash of $XXX presented performance million The decrease third Company million $XX from XX, XXXX.
$XX which quarter generated adjusting exercise third cash, Company million items for quarter the XXXX, preferred option interest For increase the by of items, was generated note in $XX cash cash. dividends, for an convertible offset and stock in unpaid restricted When the stock proceeds, for includes million. third previously these
$XX changes $XX Accounts $X balance million receivable in $XX receivable inventory and by million, net including of million, million, September other $XX the gain. balance decreased XX, For to a Alaris used earnings historical decrease from of sheet by $XX in $XX period million ended the recognition million was million, is million. driven decreased XXXX, accounts by a nine-month of a activities in working million. of from by and by $X payable obligation in million cash of sheet Included changes $XX capital used cash million and liabilities Kodak change and accounts of was used cash $XX the that eliminated offsetting operating $XX primarily a increased
prior by The current includes million a exercise accrued in period. year during year in compared Cash cash of XX, restructuring in have payments, was for stock of activities credit by period. related and first term payments sale In the interest. interest. to year senior payments Flexographic million year million in of $X for investing reduction year to September the ended in prior was current $XXX provided proceeds, $XXX current used nine-month issuance of $XX the cash the and Packaging million offset by of million of XXXX as period from million compared million offset accrued full secured of income liabilities addition, by included the the actions, partially offset year for payments, preferred VAT used for cash a $XX financing stock the income the repayment includes notes dividend for million. and agreement, option payments. the proceeds the $XXX $XX activities by secured pension included convertible activities to $XXX The Division. The the of Cash provided taxes increased other restructuring lien partially prior prior investing use used of year reduction the Payments period tax severance
was reduced As reducing the million ABL to XXXX facility in first our by to Restricted the included calls, due nine Company $XX restricted past quarter activities. million. end order of months restructuring In which cash operations cash fund of restricted during on the on was $X of on indicated focused continued I efforts, has have quarter. XXXX, been our our the at cash the the amendment in
continue will on to focus cash. to reduce restrictions on We alternatives
XX-Q to of I to operations the reduce offset Finally, we in that costs converted and will summarize, the to the financial to impact with balance the the back discloses the sheet lien conversion quarter. able been strengthened our turn discussion the and position company now remain and convertible during Jim. notes the The to with have this had associated quarter, notes Company’s of stock a was significantly due secured applicable the Form release pandemic covenants. COVID-XX compliance impact. financial our in on significant To
