everyone. and good Shelly, you, Thank afternoon,
business efforts margin the operating performance the build for our coming resilience expenses continues and quarter. led to efficiencies rate These operating team have greater gross drive financial Our model. into better-than-expected intensive in we and throughout to as durability both
first cash cash the improved of higher flow the than sales half from with pressure free million, for the with even year-over-year first net million year's also of $XX decline. $X We prior drove flow half, year
results. Now our let's turn second to of a quarter review
million Second quarter net and our couple were last versus below a XX% year down sales of of points expectations. were $XXX
Our growth mid quarter of a from single-digit changes. year-over-year for points backlog and the included decline sales headwind net demand X
rate the was our higher by X% and prior as XXX ARU versus delivered year's X% our margin up decreased to the rate delivered remain on second levels quarter This We evidenced focused the intently year. margin restoring second in our XX.X% gross the points with basis of quarter Our prior units expectations. quarter. down the for gross versus ahead
year-over-year of ongoing negotiations supplier the of for number goods the for sold of quarter of reducing drivers through selected material including our all product reductions second components, improvement the specific redesign, included, for Some cost parts components.
in peak efficiencies savings operations, our across redistributed labor increased delivery business example, a For in and our use providing of implementing product operations our cost logistics home cost in delivery volume and flexible partners flexibility more the our for model home we resulting foam cost periods. delivery partners, with reductions.
Year-over-year external including
We leveraged volume our assets have also as lower net as home delivery freight costs. trucks fixed periods, yielding during low logistics shuttles such
in parcel savings.
The have our us of for first XX% year. switched primary made we provider addition, In of well we for resulting half the year positions in a significant approaching gross the half back this cost the progress rate margin
net restructuring made media, reducing benefit reduced reduction million meaningful costs, year-over-year quarter expenses Cost prior year-to-date. $XX before in count versus a which and were a progress we have million down lower costs, spending. as been including and broad-based, R&D also from selling $XX reductions reduction, year's We down operating our store in second the
these systematic company throughout and external and our scrutiny engagement have entire base with reset of benchmarking. We across our cost cost cross-functional active through the reductions achieved operations
we annually. taken. Here are specific the self-service transformation $X over million customer expanded our content initiatives some have We saving examples of
We vendors also annual across rationalized reduce $X technology to the million savings. business tools and deliver used of total
rate million as also reductions rate margin half $XX year-over-year line the Our quarter, cost margin of decrease million the have the sales, initiatives. $XX and year, our expenses with we anticipate EBITDA operating partially by compared offset last operating with decline improvement in in net for expense We back costs of significant the the streamlined year gross be to back year's million half last of R&D funding the adjusted to year generated $XX and increase second lap while due further teams of reductions. their a media.
We the with higher supporting half in in of prior gross
a being adjusted below Our of was second quarter couple sales expectations ahead slightly our EBITDA net plan. points of despite
We adjusted and demand bottoming continue cash as generation continues to to our EBITDA for focus on bounce category maximizing levels. around
to to $XX cash $XX impacts we our expectations, down due prior the pay we guidance, which intend primarily For million million, expectations full which the year. capital of to a decrease for to $XX working year, This our negatively reduced use is expect our now free line. our sales million than flow credit
$XX $XX end as for million low from expectation the changes well higher updated implies an the year, of of million net Our at of to capital of the half second coming in outlook income off as of QX. levels working flow free with benefit expected cash back seasonally the half
our to XXXX outlook. Turning
reiterating year full our EBITDA range adjusted $XXX $XXX million are million. XXXX outlook of We to
Here are a including our quarter. regarding items third to some expectations of about remainder year, the specific highlight few color for the
expect down year. the mid be net to sales for We single-digits
benefit single-digits demand net the be both For prior the expect back versus lap to comparisons from sales we and we the demand and year, initiatives. as half driving down of year, to low flat easier
to from continues sales backlog store changes percentage assume X percentage lower points Our year-over-year headwind average guidance full from count. and of point headwind year X net of
least at rate expect margin XX% the basis gross rate XXXX XXX back year. gross expansion of for to the expected the We with approach points half in of margin
We the of balance expect for the year year. less restructuring the million with costs expected than $XX million $X for of
down $XX We continue to the expenditures of year. prior nearly capital XX% from million the year, expect for approximately
to Turning third performance. quarter
down of sales net X to are year's headwind third flat quarter We changes. backlog demand mid expecting versus low from single-digits prior to to to down be points with X with and year-over-year single-digits low the
million. to expect million EBITDA third $XX adjusted We to quarter be $XX
update against bank an also performing We our provide how covenants. want are we to on
end second quarter, X.Xx the maximum the of the to at X.Xx of compared quarter. was covenant ratio debt-to-EBITDAR our Our for
expect XX improvement in gross months to This leverage improvement we year-over-year year X.XXx. debt-to-EBITDAR our EBITDA, the We improve balance benefit of our in continue adjusted our end rate. year the a to the from below as margin and meaningful trailing includes
X.Xx, XXXX. some in entering be we X.XXx is about of here on QX year. the forward, Starting year, maximum be look and to we in our expect how covenant to our next think As context covenants will below
purposes, margin within changes to expect improvement illustrative through even we structure gross our if the with were no would For our there material to and cost advancements, rate leverage covenants XXXX, remain environment would approximately in cost our require to in of we our category.
Based net current the demand our recessionary covenant billion on XXXX. maximum structure, minimum stay current $X.X X.Xx for below sales
in sold soft, full we demand to expenses continue operating EBITDA both goods to cost operating adjusted environment the of remained drive our efficiencies year While has and maintain guidance.
maximum are and the growth demand the the Sleep line open operator, flexibility environment to optionality alternative for continue that, maintain achieve please want demand to environments.
I us when We to transforming and navigate to entire thank Number questions. profitable the who positioning team improves.
With business
