Thank good afternoon, you, everyone. Ynon, and
key across improvement results Our metrics. the financial reflected strong in performance significant operating quarter first and
income, just In operating addition mentioned, share, also per operating cash improved we our to gross which margin, and Ynon and EBITDA flow. capital earnings working
basis. execute we Importantly, are quarter-by-quarter ability our consistently on demonstrating to a
X% Looking reported and vehicles, a constant action increase first building sales results, as decline in up gross X% preschool. toddler offset currency by by The was at quarter constant were games. driven currency. our year-over-year and infant dolls, down sales in Partially figures, sets in gross in and
down of As the quarter, shift POS was Us. impact the low-single-digits in the expected, excluding Easter, because in Toys “R” from of Mattel
year, million. As a estimated the of do Fisher-Price Play $XX of in 'n returns our $XX sales be there voluntary the to in to Commission. a Rock was loss cost operating in the related future The income retailers. $X announced additional the Safety of of consumer impact net Play Sleeper, Consumer sales based will Separate of from a of the estimated on minutes with 'n Product impact few voluntary discuss return we product may in to and This related expenses which not partnership material. them on million Ynon recall the the million a our recall negative impairment and sales, mentioned, expect of inventory be quarter recently was I which consisted reduction owned recall total Rock rates from more conducted but
from the of from impact gross of margin sales, million net “R” of quarter million. a sales related points negative the the in XXX reported XXXX absence the Toys and recall XX.X% first Our net benefit in voluntary to included up of the $XX XX.X% $XX XXXX. estimated This cost the of Us reversal the was basis
benefit which negative in compared improvement Structural to driven XXX by adjusted of and of gross approximately cost adjusted of of of Us the primarily in million, voluntary significant the year. of QX the margin as sales, improved the from of improvement of reversal prior sales well XX% flat the in “R” of of XX.X% XXX This was cost of partially XXXX million, absence debt basis the million, was quarter of Structural was the by loss expense. points Advertising compared of Excluding debt $XX savings the XXX realized benefit the XX% the was from and as was was Adjusted net the net $XXX was benefit operating XX%. a from improvement XX.X%, the EBITDA year. $XXX year-over-year. and first points operating million Simplification both a points Adjusted XXXX Toys sales million an QX driven net by $XX our reversal. improvement were Us improvement was product in prior loss XXX points impact expense $XXX sales adjusted loss million, of Simplification. realized absence from $XXX year-over-year the Toys percent SG&A the up by Simplification recall, inflation. “R” bad or Adjusted of “R” basis $XX by This of to $XXX million basis of $XXX savings $XXX from The the savings and which primarily the a Structural sales Us XXXX. of substantial bad negative SG&A basis $XXX million $XXX Reported driven Toys related This offset was million, year-over-year. XXXX EBITDA million a an an absence million, improvement as of or million was
items. expense $X tax was a the million discrete in and first tax includes number quarter of income Our
to driven slightly our Moving of days balance improved include cash accounts We of balance the year-over-year This lease on of the now sales collections. new the to leases balance receivable first sheet. a quarter, sheet. outstanding the Due by resulted to XX with in to four-day related the XXXX, the ended in a and result standards capital $XXX adoption X% in working a improved we improvement In million. accounting our liabilities assets days. as decreasing quarter reduction
decreased Additionally tightly owned our inventory. X% to inventory continued as our result a of efforts manage
flows. to Moving cash
$XXX noncash operating usage. by charges excluding capital million improved primarily lower lower flow net driven $XX Our usage cash million, and loss, to working
We as continue investments liquidity feel about business topline. confident well as sufficient structure good make strategic both to capital that grow and our we to are efficiently to the our have run
October driver been said, in to rate maturities primary achieved savings of improvement run of profitability quarters. We XXXX. our and until goal have last has exceed over no three significant $XXX as debt XXXX. million million Structural have the Simplification exiting the expect our And Ynon of $XXX to-date, we
analysis global our our evaluation we including our review plants well an to extensive chain model, manufacturing and as have our multiple concluded network. of capital-light centers of distribution Turning the of third-party an manufacturing supply as XX
sacrificing quickly, thoughtfully We pace without but have progress and and begun implementation moving quality. are continue our safety to
considerations. competitive share will we developments confidentiality progress We to subject key as and
expect in we capital-light gross from which XXXX, our additional start reflected you in model improvement. should effort, of realizing timeline this the see to savings margin Given incremental
We will strategic part in our of quarter, opportunities. our transformation model our of savings These guidance. In first million we expected to capital-light operating IT spent the were $X brand which related incorporate investments growth primarily expenses. future on investments was million $XX our and from
expect to be which Starting we offset currency, our partially review will to like negative from I'd assume year guidance. in continue constant XXXX X% by the impact to exchange. topline, with year-over-year flat a to sales be full XXXX foreign X% Now, gross we
still in and QX. into higher improved ahead given year million and loss achieved $XX than full line year taking through of quarter, 'n not of $XX Rock estimated we sales outlook of vast the our account are momentum the changing Play is majority to the first from revenue the us we top While million expected of QX
from We percentage to Structural a our XXs. dollar XXXX year-over-year margin adjusted gross to and the Structural positive of taken related approximately on the continue SG&A low impact year-over-year and in actions Simplification. basis expect to XXXX materialize we still Simplification still to to to adjusted down as the SG&A our $XXX We sales expense. million XXXX continue increase be We savings will in benefit of of anticipate expect
benefit positive from debt net expense XXXX. income to we of bad year SG&A will inflation, strategic also mirrored $XX More slightly in "R" the investments. of to will operating be still year Us by contributions about million recognized adjusted We increases, $XX and strategic absence we our SG&A. impact full offset full partially Toys specifically, These be Overall, expect in to positive. general investments million expect
$XXX in I outlook the difficulty offset full to year driven tax million cost taking in investments. XXXX. stronger input to year million. to be improvement the primarily operating you million year-over-year of we expense of This We given by S. is update changes in million continue by valuation laws adjusted the partially allowance the of in impact on of and full consideration $XX range to EBITDA our into expect continuing global assets wanted metrics, strategic and the inflation $XX on $XXX U. tax against U.S. significant and taxes. booked tax the Recognizing estimating deferred our approximately
from more period determined even negatively recognized Forecasting positively tax items expense the as individually impacted impacted by and must calculating may and difficult an our our items outcome they tax in because quarterly discrete tax or When discrete be both our are which occur. tax perspective. a either to which challenging, predict expense timing in tax is be
a For because law. a prior tax example, reassessment tax enacted they of tax newly year or audit liabilities of may to relate
foreign of mix In income rate quarterly tax because the losses addition, and or of vary our in level the jurisdictions. also may
valuation record in ways. taxes we have XXXX way U.S. said the allowance I two the As impacts
had believe we foreseeable primarily will allowance during taxable not we expense. any record tax international U.S. record reflects expense of expense pre-tax The current be as expense income is to benefit don't income earlier items we a is loss recorded tax During may did we on do that we $XXX cover our because for a of to recorded tax are periods as this mentioned because income anticipate not tax And expense the approximately position. we of discrete where income, in record from $XX outlook, tax based benefit. we even Having changes in our valuation expense loss. And to see to in allowance we loss U.S. a worldwide related P&L all why outlook the periods said future. released an a the million our will income income be tax or U. an unplanned pre-tax though taxable S. this this, able you million. losses And impacted the in don't XXXX tax in And jurisdictions I valuation in be a by law. audit tax tax
Going operating you that quarter, outlook nature any year the forward, P&L. clearly across the seasonal we the individual quarter, accordingly. our resulting have items of full results benefits in proud will potential provide materializing tax of due discrete continue and on to In performance general a update we the and impact tax to the outsized are may our closing, with
showing are in of We that our third are particularly consecutive profitability we quarter improvement metrics. key encouraged the
time shareholder and Going now of open we value. Thanks remain the the your forward, consistent methodical creation execution will today questions. line for long-term focused on and for progress, we
