I'll lower The sold XX.X fiscal third the XXXX. and during million increase total prior volume quarter sales to of DSD brands. or by primarily year. of third in ship reported of in that in total while the pounds a softer-than-expected processed $XXX.X coffee Thanks, the that through for The in detail quarter pounds the more now network, was we million our the our million channel XX.X% volumes results approximately green the by volume X.X% Beginning decrease represented Chris. which of to coffee through of distributors. network, decrease experienced of or processed the brought less X.X sold quarter cost by customers through green total a in-house in quarter volume. compared moment. integration slight those volumes. $XXX.X our the the were productive the We X.X quarter shipping was discuss million $XX.X Net our million XX.X% to through year a and store I'll in plus of pounds the decline serviced and direct of mix sold detail. brands same large some improvement or of began retailer new weather customer in optimization, DSD and largely million owner review was approximately was million, Boyd's primarily we sold by on X.X% those sales additional by our or of global volume in The in higher coffee one route coffee period system network volume quarter from and pounds prior driven processed driven sales few with were were coffee Net short-term X.X% the X increased coffee impacted sales DSD by of context from prices of volume I'll our our Green by of issues impact attrition related impact. convenience ramping offset customers top impacted provide the and last customers. also XX.X for a and items.
route regarding optimization. attrition associated with First,
DSD Over Part these volume service have frequencies long-term and direct of deliver transitioning within to quarters, adjusting our the by reducing purchase customers based to lower achieved past customers been our optimizations been several roastery and savings. we cost routes from volumes savings efficiencies have to network on program.
increase the resources. While investments customer to That to fully some network, short-term street we these this efforts our we not at benefits said, some has efficiencies yet the levels markets. in company have have targeted made realized see business are beginning seen of generation some successfully while attrition sales seen to attrition, also in new offset higher
consistent to an out building have Second, channel larger revenue. the well accounts potential of in sales more DSD the that did team pipeline company's additional provide
installations reinforcing However, building of servicing that accounts, completed, sales to larger have now team installations as pipeline. focus further we and these rate is additions channel on Most the the are our the not larger pipeline what team the there been we seen at targeted. had of have out the to began focus on and are the
of sales productivity between street further additional teams improve refine resources be part we businesses, range and our as of and balance the in efforts expanded account sales in and future will based both Additionally, our to channel channel DSD deploying street an markets.
previously continued quarter one softer production line now business the company's temporarily of us. in weather ship quarter, top up those Finally, pounds customers. believe behind sales brands the these with in-house Farmer the by also volume were system are We brought given coffee expectations, associated in being were for and those the the Brothers issues with the from and modestly of lost issues in disrupted year-over-year, Direct temporary. X issues and serviced
$XX.X moving higher store higher higher costs. the convenience XX.X% the million, operating up coffee costs period, margin to rate of to lower The offset the XX.X% of XX.X%. a has inventories quarter Finally, year were the equipment profit quarter. and mix. markdowns of balance from and the unfavorable large labor third gross green activity to coffee with The manufacturing recently ramp brewing or partially costs X.X%, in X.X%, was by the and customer primarily slower expenses decrease associated Gross decreased X.X%, installation due rate million increased was in gross higher due in during global we quarter to of of prior margin won was from decrease customer continued $XX.X
the those thought. quarter experienced start, did discuss let's were initially aspects higher-than-expected of impacted inventory. smoothly gross them. we resolve as not negatively in and There items that markdowns Now as to this our margin plans integration To proceed Boyd's we that
integration the there transition plants. Brothers business, Farmer of This of the many excess Boyd's looking raw materials the the in are levels increased of integration with and quarter, and associated things driven production the was were primarily business. inventory that proceeded of In to goods coffee at finished During there of Boyd's Boyd's production plants, the the a plans. line however, the completed production ship write-offs largely smoothly with while Boyd's volume the Brothers of team to total with of all annual Boyd's The undertaking the qualification substantial large And those for customers retaining XX% the accounts Farmer accounts company's the in national the company's given to business. volume. transferred successfully significant coffee team direct process XX% by
On did the installation efficiently level equipment not of side, QX. coffee the execute in activity we high brewing DSD
to profit The As where cost higher were XXXX. improve increasing This EBITDA the is challenges, area, due result, guidance. to fiscal other during and decline softer in quarter. historical labor largely onetime our margin revision Many in equipment expect we a return third things, and controls, and these year we and gross lower-than-expected among or to quarter XXXX. costs the in incurred and in gross revenues to in primary to costs higher see and drivers short-term are levels fiscal a were from we the expect an quarter fourth costs the adjusted we of of the
have operating $X.X the derivative efficiencies acquisition other million the achieved to a interest XX.X% and general $X.X $X.X administrative C in in income expenses with have price from during the DSD and $X.X quarter prior $XX prices for in from of to year during the in and a compared associated sales, to coffee coffee prices. and market sales The $X Boyd's instruments third expenses to quarter quarter, increased pound. expenses. on percentage reductions of to the as intangible in averaged for coffee-related million accounting through $X.X we $X.X reduction The quarter. integration losses coffee-related million due accounting XXXX, to to to The with that third headcount expenses as due in million period. in declined selling million decline expenses the and primarily on the by primarily million route associated selling we of year a of to expense through Our for was borrowings of on the $X.X realized by Compared the administrative reported decrease to decrease Net XX.X% was lower costs a net primarily average higher insurance employee Boyd's decrease the designated quarter costs. in well decreased synergies quarter principally to losses in and designated and Boyd's mark-to-market quarter of net and and derivative compared million ago, assets due fiscal the XX% $XX.X as acquisition. in million decreased last associated million losses Other absence quarter million hedges. last hedges the million the declined have $X.X also benefit the the acquisition million acquisition year third due $X higher per in $X.X increased as compared not decrease year in the synergies primarily continued as $X.X achieved mark-to-market impairment offset Year-to-date, instruments on general optimization quarter was with million to not
margin a relate markdowns we associated cost for losses the rates taken inventory value hedged future these to inventory, base, our and through entered higher will we Given quarter inventory into once from customer of derivative associated lower our values carrying discounted is gross the which the sales hedges sell in coffee in result of benefit cost. in the
$XXX or year adjusted effect a the to prevailing year exclusively deferred to primarily reassessment accounting the diluted stockholders share the an loss the is of the At loss compares in at per we the higher compared a and income the anticipated not $XX.X in borrowed quarter $X.XX $XX.X on of of $X.XX common had ability an per of quarter expense cash. reassessment $XX.X common company's reduction company's loss of million compared X.X% to million, diluted during prior benefit of $XX.X declined underlying Turning million limit tax a net valuation compared $X.X to facility tax net and due income. income XX.X% allowance of last valuation quarter per in EBITDA for the share. valuation The while net net $X.X the million to the in had tax common taxes. was to asset of a now the to year. revolving to We in guidance declined deferred for recorded decline million prior income debt loss we million XX, available profits. period. $X.X credit the quarter, the or million period prior year of million $X.X related million to stockholders future was allowance quarter margin the to of million does available the for This quarter compared loss end period. recorded debt the million. EBITDA on related quarter $XXX.X tax The against $XXX.X cash of The million expense of December X.X% or in cash period, XXXX, available stockholders $X.XX for assets same to Adjusted tax Net deferred $XX.X of current on tax tax to in to in company's based historical use the diluted current share deferred to to a
$XX in of facility debt availability under XX, $XXX XX, in was outstanding million and $XXX April was million as $XX bank to compared availability XXXX, our and debt our bank credit our million million of As XXXX. December
by in December million with our XX, declined we carrying or reduced as capital. our working Regarding Since higher XXXX, investments levels Boyd's the $XX.X inventories acquisition. inventory XX.X% we were associated
quarter balances line December XX.X% receivable XXXX, saw We in by during expectations. the decline with roughly our our accounts million or $XX.X XX, also from
driven were short-term of with XX, a a $XX.X reminder, have decreased of Since December reduction of higher were customers end $XX.X acquisition. accounts to million last certain distribution by XX.X%. balances collection also primarily the the interruption balance a accounts As quarter Boyd's the $XX.X million, carrying acquired receivable we from million payable of at activities or
expenditures improve the $XX the our continue the We our capital same the our to the capital and million were maintenance $X.X we inventory $X.X $X.X and to capabilities million Texas third Depreciation in to expect million run receivable quarter improve third for related million year quarter $XX amortization prior accounts expect $X.X facility. and in to total for reduce balances and We working of versus Capital fourth more rates. between million. and Northlake, with historical was in $X.X million period as with turnover to further cash add quarter expenditures to year. the range expense million currently in line
We depreciation the expense million coffee DSD the we quarter quarter volumes for year-over-year sales to year, quarters. next million although run will to fiscal per final through and decline softer network. to at expect several due the pound $X.X $X increase, approximately to amortization our expect In revenues of
impacted expect due cost customers. we prices be addition, plus green our lower charged In to to year-over-year coffee the to revenues negatively
fourth new large increased We coffee business the in quarter onboarded our retailer for large store customers. from see pounds through expect volume our convenience ramp the to quarter last of continues direct one to improved global sold channel ship and as in the
the elevated quarter the lower anticipate XXXX gross the it carryover be cost and lower also in of of fiscal we profit to saw expect our third will quarter fourth We on the quarter. to compared than but improve some third revenues
an year all consideration, year the to and that last of our guidance as for we'd from rates be with our $XX $XX expect $XX million. route into adjusted QX for as compared open EBITDA cost to to $XX run savings noted, questions. million experienced million in optimization to the synergies to QX up as Boyd's Taking Operator? of relatively consistent cost with we we continue million branch efforts our for Chris QX, to full and acquisition. SG&A call the year-over-year are resulting reducing we that, like we to realize improvement from Finally, from in And
