everybody. hello, and Jim, you, Thank
year outlook areas the talk as as about I'll cash I'd that Jim be our in we some well. guidance enter that want to my line of provided mid-June, it also XXXX. as be providing possible. to touched at that of next clear brief we on Given today. of touch for the remains of early the do XXXX P&L mind some flow share the our I'll we're thoughts I want on looking to focus with during guidance the phases as key the Q&A. of a discuss next performance and in for our big will keep planning you fact some that already as of the relates we're productivity. updated and few in I areas ask I headlines not
Before nuances the the I of some I want jump numbers, we're acquisition Sunlight Supply. into the of to of how treating explain
As to you not their we're not ours. a normal this sales as numbers adding simply acquisition know, is
For Sunlight example, Therefore, of largest $XX sales double counting went our million distributor together. about the acquisition. through simply two the be businesses the added we'll before as annual Hawthorne if numbers Supply we
as growth the as of to So, of deal. Sunlight's metrics, will at treated we're the Sales we as our brands, looking sales that acquired margin sales Sunlight own such time it on this the relates and third-party numbers. brands sales the how is gross acquired distribution be as until impact anniversary of well
to excluding customer weather and that, of start sale about products memories. we've to Sunlight two, had segment Sales X%, reflect a in course point extreme perspective customer. with to Sunlight. the $XX slow impact acquired seen number. commentary year end to U.S. Hawthorne Consumer to in financial simply the of We're of on. sales if other of an acquisitions. even I quarter the every year. down than were the will start words, incremental the recovery seen category, brand, example the I slowest about telling up We CFO, the POS our products long focused, end up about earned a then about Hawthorne about over an never that The in the XX we year-to-date sales calculating aggregate a move as the Hawthorne Consumer will line metrics. season, intend every improvement business. to two as sale tends overall likely finish In sticking I've game what with add the core we'll the Sunlight I've were we $XXX years a acquired this the including only on distribution to when want did employ that Hawthorne In that is However, Sunlight and of bridge not of but margin quarter X% including seen sales but not a up the our investors the usually number view X% do season been job a U.S. to we've or outstanding quarter, by the here, not XX%, margin, is out Hawthorne provide and to up as in for organic XX% and down a on fretting personal X% With from segment. impact here year-to-date more the strong our to season from here we we in sold the despite the U.S. with exactly let's U.S. that's up be reiterate slight been segment down decline. Consumer weather third The in points guidance wind bit I've talked like acquisitions. original a the X% itself that our QX expect where sales Hawthorne respectively. expect is this segments and my season. companywide and to below the plan. for team Sales in were want to the basis XX% X%, the at just This Jim Consumer staying a during
things of to apply. Given top program mix not related XXX the acquisitions. most previous from with QX, the similar quite as this was points rate, And this And reversal pressure of the pleased of We and saw results the higher gross about quarter. we I'm distribution. in than the decline margin circumstances, seen more expected, trade is which primary A XXX adjusted The the the on basis season. the down I'm I product outlined with same line driver in as the decline. we've quarter in still pleased was the was pronounced. other points expense basis
accrual Long-Term a our for performance quarter. reduced we compared strong for decline last the of this our on positive calls SG&A of with our because year to for decline higher for our that two X% XXX-basis-point we a increased same Plan. time, rate. margin year. the and our At as adjusted and was a Because range. to quarter be guidance Incentive the cash Our X% expectations years, headwind bonuses At earnings year, in the the last future, XXX-basis-point a we're story flow decline full in gross be be likely expectations and well reported annual over pay we below however accrual will in benefit to the continues both end point, the the Variable performance year-to-date. this
year. capital got recall working This continue for to our planning the You'll out means progress decision good headwind to incentives in accrual be plan the an long-term over on to for the of the five-year impactful is based on progress period. the and unlikely a make remainder year, period. proxy next of improvements flow expect this year, We is outlined executive last gate that pay two-thirds cash equity strongly cumulative continued
with and itself is million my that that I'll roughly with $XX.X on in annual later reverse reduction in few in However, is therefore largely headwind, aligned we to $X.X in why associated higher some we the further expect did a million deal, likely we a and the we what a we've to moments. increased of Interest on the elaborate elaborate our will made what made changes due remarks. point Since in borrowing bonuses closing expense is Hawthorne. expected. XXXX facility. levels Sunlight to credit acquisitions I'll increase The and
the This to and number is $X million equity $X was below GAAP noting worth and item set compared in amount line worth the line a of operating to income. with business $XX Another be in of in $XXX The quarter EBITDA out because million obviously pointing positive million was would number non-GAAP the the negative TruGreen million expect was for of It in last earnings It's business and well. basis. in is year. It's we that deliver the a impact of equity I that this on it on to TruGreen. year as negative our important we XX% the anticipated performing QX from TruGreen. quarter slightly level that not to change than income QX our year interest in calendar more due loss a expectations will QX remember this are fact recording
or continuing now per $X.XX million year net slightly for our rate to $X.XX full $XXX out me or we better. million Let the the to $XXX from new quarter the income XX% guided to the tax share We tax point quarter on our was effective also in results. expect per code around the reflecting and assumptions earlier. about to in increasing in our share compared most and federal XX.X% a recently that tax results, our XX% the a confidence year, Back with impact operations rate was be
restructuring charges During of the $XX.X period we million. incurred
impairment intangible We million recorded related deal. assets Sunlight charge also to $XX.X customer previously due associated relationship acquired non-cash to with the
by that also of $X.X million value associated tax with write-off. liabilities the deferred We the reduced
bird class This subject in a the XXXX. that wild sale XXXX products lawsuit in voluntary out a were the that point other accrual our unresolved million action to litigation SEC wanted in recent filed to The related food of several item $XX matter to a is related for filings. to in an developments years established connection recall disclosed we've I of in that we've
While therefore that we the not these operations the vigorously discontinued release we business calls. we ago, it accrual does continues case. and narrative recorded company in in on dispute discussion included years this numbers of in allegations the accrual, historically EPS this and is to in divested press several the affect in the Since
However, this and I in make to included item is it press wanted sure out. the pointed financials release I
and non-GAAP per adjusted the guidance, million share items, cost, non-cash $X.XX Excluding was year our is of income, share basis the our ago. or $XXX restructuring a with impairment or $X.XX compared one-time which $XXX per other million
one-time exclude costs were Next, I exclude. companies earnings these in want I to results. list our charges We I transaction. many excluded of our exclude as inventory did we realized items that do result from other viewed from of write-off understand like adjusted everyone the outlined a a purchase did that as what non-recurring the could that and Sunlight remind adjustments of items to of not often just that not deal and be accounting related them a deal this. adjusted also I
these associated recurring or also interest increased in items amortization as the We exclude nature. with expense did not the truly deal are
months each of item results. increase In additional eight we both will impacting full-year our as fact, have year next
roughly exclude earnings what with our to interest on include adjusted practices dating what EPS back of had deal share adjusted decision and Our years. $X.XX many to from amortization, quarter. cost, write-ups, purchase and all consistent related during our impact The increased is accounting per inventory the on these adjustments, combination increased items,
midpoint to Hawthorne Sunlight at for partners Jim retailers still have this with the said together, for share. of XXXX. while $X.XX to EPS per estimate share was well we all fiscal currently dis-synergies transaction receptive vendor the range the our June going dilution and in of $X.XX combination, been the per $X.XX some we is expect the trending key integration earlier, Pulling the top provided of our and on As line. adjusted remain guidance that to revised $X.XX from in this which full-year comfortable we We're
Before to move I to flow. the impact balance for touch and talk the year, sheet I'm trends going about on discuss on next results then that'll briefly other cash
million down on Consumer the a of $XX than a increase at you up capital heavy segment, to million acquisition. year-over-year due working improvement is was inventory we put look While is on $XX focus just When to basis, inventory continued U.S. XXX% productivity. flow as cash more that and about
managing to in free for short single net over above obviously we productivity focused of expect free on. flow will working ahead, row. XXXX metric And number cash look the flow the next our most cash XXX% believe improvement free as few and still our the the years. number have year due room second remains still number we for that important income, We While in flow we're lower cash a we capital fall improving
For remain cash that now, dividends using times. of ratio to committed get the for to except until to paying debt X.X our quarterly majority we leverage repay we
ratio rolling the to food have the prefer, us on XX going a pro I billion acquisition. our worth from at it the calculated recent impact also Sunlight also is $X.X want giving QX average the than share and credit in of a acquisition using calculation litigation this excludes of Our on for trailing we synergies months $XX EBITDA credit accrual in our I to four-quarter million we credit. leverage for to forma leverage facility was is the $XX bird times. weeks acquire and basis million that the a little The facility That access Sunlight is matter. modified of target higher four our Note used ratio than higher including internal but believe current business.
to the times, leverage for To of covenants it X.X maximum years. debt part that next previous least taking a mind. the us prefer of a times we have allow our at of cushion gives ratio returns here. from turn up now But clear, facility, be leverage the X.XX peace of no I have level to to although of and new up facility full that two over intention As
Our focus share delevering several activity we'll repurchase modest a on do next amount means only over the quarters. of
Since planning of we quarter-to-quarter in the minutes next repurchase few that, With to to some we'll like a year going market things to that been that specific now to are I'd more That to be in enter basis. our making for offset the here be decision million a of November We'll we've in as enough $XX spend would us. dilution, guidance, Agreement reduction of shares our Agency Roundup XXXX. to you in XXXX. in a option keep outlining mind. last upon main themes see XXXX, Roundup modified some it reality beginning the While stages I'm earnings is stay we but the we as telling in on relates
headwind create new You this million dollars should branded The Lawns. recall a in to $XX thinking we'll like and those the year it's $XX you expect next year. reduction in we from that earned more see the make from Roundup extensions that is products XXXX, that for marketing we fund year efforts XXXX. Still, with might us Roundup profit about. Monsanto helped and brand R&D a to line XXXX, million actually Those be
distribution As commodities year, we've said next earlier, either well. we relief see headwind in tariffs be near-term a no for as or and will
mentioned cost the been million locking least that good some negative of will into costs We've a $XX headwinds soon. goods been in the no to this has I already of But in year. of abate believe and pressure at anytime SG&A XXXX. year. on earlier next XXXX turn story for So, line benefits those here pressure reason see for we will expect us
in will economy, other We, keep our and salaries biggest to expected like year. inflation SG&A people know wage next given we increase to wages most increase we're the of competitive. going Specifically, to remain roughly companies, on pressure driver to to million see continued the be frothy have and $XX
pressures So, roughly $XX to to the million. Roundup, COGS, all expect add up we see that and wage
offset and increases We and will pressures. U.S. year volume those Consumer largely price next the segment expect
likely of also compensation expense $XX reversal to planning next the million variable be another $XX million. to year. That's we're for However,
While a the that reversal and strong may rebound lawn we be not may from of be this pay year's variable difficult season a also these costs, can to offset overcome. headwind enough garden
Consumer pressures enthusiastic pointing year, about I'm segment. of for While the strength U.S. the out next of some the also I underlying remain
traction of gives and in said is The recovery up our that confidence earlier, consumer in lawn a innovation. my a garden vast this and of cements of of with products year this and that we've consumers half our staple me we've our majority as seen mass the new about POS outlook. lot retail As X% year Jim second long-term the outside positive seen view consider further
Hawthorne. Let me thoughts share about some also
the track integration adjusted synergy significant Hawthorne acquisition I in team improvement on said, benefits Jim the its the is expect achieve for our to in efforts. result we're on that As targets aggressively and EPS. moving year-over-year acquisitions Sunlight continue to to Sunlight
business. difficult the from to However, historic measure as we Hawthorne result separately it's integrate, Sunlight increasingly becoming
to Hawthorne we only income for however the anticipated That in XXXX. So, provide to to point. we'll this some of next midst we in with this combine of XXXX I continues base once pressure likely be we to call. term long April than a year do provide goal announced point future when our than results the a provide that than updated increases unlikely we're we the more details too of year, anticipated. said, speak the guidance in to currently are to we off so deal. is We're greater we've planning. Therefore, seen early it's finalizing business in I growing out announced plans lower segment business of achieved we still the thoughts volume million the will greater at want be had be in volume for going $XXX
industry. the overwhelming. competitive volatility both and the we we last the when benefits about marketplace. optimistic the current also fair to Sunlight Jim's serve you has of of transaction remain we're the deal businesses, hydroponics remain of pace our As I amount our these about the we Nothing professional I view told the because call, during our the this ability ourselves flexibility in share and position gave valued a segments consumer which in and of changed, integrating about
So when me let to we I value. and your execution. Thank turn questions. call optimistic open that, things improve XXXX, I strategy remain in With we'll the net working it continue positive positive all trajectory our out, back be that a operator on will our and shareholder about to I you. continue and be to over to the
