“We expect our cash priorities for the year to remain on investing behind our growth initiatives and supporting strategic extensions.”

In context

“lance sheet remains strong and we believe positions us well to execute our long-term growth plans. We ended the quarter with $87 million in cash on hand compared to a cash balance of $33 million a year ago. Our ending inventory balance was $81 million, compared to $85million a year ago. Our average customer in-stock rates were over 95% in Q3 and we remain confident in our ability to meet the strong consumer demand we're seeing. I'm also pleased with the strong free cash flow generation we've seen year-to-date of approximately $67 million. As we previewed last quarter, we paid down approximately $25 million of our outstanding debt in Q3 in response to the rising interest rate environment. Given our strong cash position, we ended the quarter with less than 1x leverage on a net debt basis. We expect our cash priorities for the year to remain on investing behind our growth initiatives and supporting strategic extensions. Now let's turn to our raised outlook for fiscal '23. For the full year, we now expect net sales growth of approximately 38% to 39% versus prior year, up from 22% to 24% previously. We expect adjusted EBITDA between $110.5 million to $112 million, up from $93.5 million to $95 million previously. We expect adjusted net income between $75.5 million to $77 million, up from $59 million to $60.5 million previously and adjusted EPS of $1.37 to $1.40 per diluted share, up from $1.07 to $1.10 previously. We expect our fiscal '23 adjusted tax rate to be approximately 19% as compared to 22% to 23% previously. Lastly, we continue to expect a fully diluted share count of approximately 56 million shares at year-end. Let me provide you with additional color on our planning assumptions for fiscal '23.”