Bob. Thank you,
income that a operating completed Before results, I post-closing second price The a during approximately further to in deal. which so earn-out, price an which will acquisition the of is be I results, upon $X.X finalize quarter. door $XX multiple. adjustments, The The provide get million. equates was times cash subject This out acquisition the and quarter to the was little million soon. into contingent bit with the purchase the million that a quarter certain million is $XX.X financial six price to purchase EBITDA price final also purchase am $XX on was all-cash of D’style includes information going
November of to included Operating net sales two because a D’style $X.X reported sales of do That our consolidated results. and the closing but million were quarter income income ownership Xth material not about second results under D’style. positive, in not for Our impact date. months have for represented quite our
not was quarter. to the the $XXX.X that organic in XX% an this pace we increase see the very Bob increase over Now as decline sales the excluding up in And Overall recorded quarter. X%, of acquisition. was the increased significant second a trend or previous first X%, was our pleased financial as excluding with an level quarter, X%, growth orders the the organic we reversed strong it well, from orders quarter. lower of are January order that in orders as to And It Bob a while moving nice were million given following results, year the the in encouraging the increase, ago. acquisition of our consolidated mentioned, Kimball of the activity second increased orders see International in and of experienced X% to sales mentioned,
X% Our backlog the of which an end was of December, at December over last $XXX.X increase million ended at acquisition. the including year
hospitality, introducing new as a both markets, when exclude quarter. stronger optimism of XXXX concentrated products area. paid growth Looking up that’s and by even vertical in hospitality level market sales vertical were a education hit the market, orders increased in acquisition, still in we really orders on increased lot you of the Sales see the off many continue in in experienced double-digit market the solid various for this second record and finished percentage focus overall The and and sales and marketing and efforts year sales calendar growth hospitality education for to quarter-after-quarter to anticipated vertical years quarter the government second calendar XX%. XX% geared year put than this XX% The year at grow markets the towards prior couple the creating last XXXX. market XX% vertical significant vertical increased We orders. over exist the the this and
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fiscal in We project some remain fourth begin Healthcare pipeline strong. awards to looks the for but see third expect The quarter ‘XX year shipping quarter. larger sluggish, expect sales Healthcare to in
of And total high quarter, on product products of the last of product all distribution our those category, and products are depending new some products category, strategic sales help were still mark they quarter seeing focused mark building are three-year ramp introduced mentioned metric initiatives hospitality markets. and the ramp design products specific. in this and gap. quarter. that market around we up included upon when new products new sales selling starting during recently exclude metric hotel to fully. of selling This products and well well, fill Last second to as as when on up fallout from our the delivery the the and new of out are I longer hit do primarily reminder, hospitality no a the product timing the And vertical fluctuates As three-year that in XX% developing of hit just share Sales further we extremely our longer. innovative vertical fell metric are are product are gain to network any brand products in new our we the
that basis percentage few last lower mentioned sales our ended This Now has we from in Bob start year. which Open quarter. that the Systems items gross compared our There We discounting X.X% The the XXX a product, biggest decline profitability ended of which normally margins. moving in profit, piece quarter for the were Plan quite income income, had Operating with earlier. lowered the in points approximately gross percent X% income impacting by XXX margins with this prior sales gross the below was disappointed operating shift and margin X.X% I’ll higher to basis to at impacted were and mix profit year. a higher profit points. operating
gross discounting profit we monitoring in news XX costs higher In our cost closely quarter, release lower addition, alternatives impacted increase been recently, product reductions in that the profit was to them points. adjustments for percent mentioned valuation a costs are as or freight higher the in gross to these by the to higher elsewhere. offset basis with select we by reported this significant approximately look experienced what’s press degree points, that and LIFO smaller combined negatively XX our basis negatively Then to and on impact we similar this approximately a inventory
compared decreased quarter administrative partially second these to expenses impacts, XXX of Now last price X% negative margins during and Selling gross by offsetting realization basis year. increases points. favorably the the quarter, in approximately impacted
building million acquisition We then was second The in and included offset costs $X.X have mostly related additional as that have D’style administration offset gain some unusual well quarter sale but quarter year the of that on costs during a not the items other. the they to administrative the here selling current we by each completing the for year. and did prior that
exclude down incentive resulting you selling of in profitability X%. which unusual more offset us almost was higher were comparable all if quarter So lower a costs salary items comparison, the costs compensation during and from administrative decline gets the A expense. these by
expenses significant you change noise. pull from the a not when admin last out So, year selling in and all
well cost on productivity improvements, Bob working initiative. as and As mentioned, as we automation are other savings
XX.X% normal rate Act effective our a not we hit of had of the X.X% XX.X% unusual So adjustment some target believe quarter indicative operating to tax fiscal The we with quarter Tax margin still December passage in is second the the income Reform the in during quarter. of XXXX. year for will
First tax to the rate will we due statutory tax a in from future in XX% now to reduction XX% was assets an turn the Xst. that lower benefits at effective the on rate tax sheet. adjustment federal are the our have that future January deferred These to balance
tax a have during As result, rate. in This tax resulted $X a deferred value expense lower the lower one-time these tax quarter. million adjustment assets of at
rate June tax have is the for fiscal to and XX.X% end, to blended our as year our The we year fiscal tax a effective adjusting half second year, reduction with company year XX% XXXX. to tax will adjustment XX.X%, for of in a because statutory are related federal result, federal the only we year-to-date rate fiscal the XX rate of a
tax the So this rate XX.X% decrease reported a to $X.X million. to benefit resulted from December in XX% of we year-to-date and the adjustment statutory federal
the $XXX,XXX additional numerous net rate. basis. Kimball for were and the changes expense we of and complex analyzing The these which tax a tax the was on about So the two during forward impact quarter, International in caused effective of higher adjustments go the still are law overall
For have fiscal by of blended lower federal will somewhat that certain year XX.X% of and the be credits and versus of the reduction we the the a rate XX% full remainder benefit tax will reduction XXXX, of in offset deductions.
in significantly was $X.X of the tax beyond not for loss looking So when that income a million fully will the deductions to prior fiscal we our second [ph] we expect year total. that negative XXXX new tax and analysis have completed quarter And fiscal lower do impact we we the year million, benefit credits of the expect but at (XX:XX) federal not realize have under will significant rate $X.X fully impact yet, regulation. XX%, reduced compared for XXXX rate the will Net the year. and the in reductions offset to of
cash end million to balance decrease Now million December. the compared driven the moving flow $XX.X second the at second million, quarter and of payments, December. our paid by our changed timing were the in payout year, incentive now throughout cash a our payments annual change incentive incentive of structure by the are of previously payments this cash all the $XX.X primarily to cash our sheet, investments The short-term cash equivalents $X.X in fiscal quarter. was and end balance in cash, was year was out spread Operating we annual
outflow the fiscal -- result, approximately we a in additional second of previously had would have that year. $X the we half in of million cash quarter that prove occurred As second the
in third during the this in any paid In impact that we approved of beginning August, quarters those fourth should during a because -- second year. dividend XX Board see dividend payments and in the We dividends we positive not the XX% quarter. $X.X the the will was quarter quarter. this second So million have quarter, with a increase paid
investments. be amortization office showroom better normal our We put and Our total of million, to reflect approximately capital for in perspective. expenditures the for higher continue annually to to in CapEx will as totaled capital $XX.X million Depreciation quarter, corporate way these renovation. the for $X.X the spend the XXXX by and than estimate renovation which related headquarters primarily our approximately we fiscal expected year $XX to $XX million automation, is today million investments is manufacturing
little as Our strong balance December remains sheet with debt of very XXst.
and the in $XX the that, question? facility we We questions. open million With anyone Tiffany, to compliance credit with are have all with covenants. we’d call like to do have
