as X speaking CFO way ago joining be morning, than as quick both background, And of honored Good months joined interim for and I a and us.
By thank CEO. you less everyone, Enviva little today, to you the to CFO. I'm
for miss disappointing our market financial caused evolved the and filed release overall weakness our the for expectations company's read you that the significantly myself immersed Spot have capital this spot very of of us as as we structure.
Unfortunately, the in few expectations the quarter was well market this press operations the fourth course, pellets not aspects this have past as materially including, the For I third this in a quarter quarter XX-Q all for fully months, year and anticipated, morning, to prices and wood processes of our company. way performance, and its in for reduce year. in
profitability result, had lower pressure our three and key bank meaningfully a are moving than to our our and address headwinds, execute consisting plan, flows we covenants multifaceted a on expected, these we cash are facility putting overall urgency liquidity.
To with As transformation near-term under undertakings. of
appropriately model, of First, focused profitability improving a to a business from we the most single vast predictable, the we success our majority more cash of of of important the have the business returning those very profitability on effort long-term which the ensuring contracts the with is of take-or-pay our launched generates current provide intention have contracts, lever improving portfolio to we ensure to customers. the contracts.
The value profitable of flow the that contracts and value of reflects
sheet.
And position comprehensive structure, financial resources key two engaged balance advisory and comprised we capital intent focus leadership strategically have Marsal & specifically first realignment to on changes. announced of & Alvarez of Elkins, Lazard, we Second, our improving of the to a perform with firms, leading review Vinson our third, our primarily of undertakings.
The our strengthening pivotal a and is realignment two leadership those senior
stakeholders, our of Board the to I the role, me work I of the taking Enviva. to diligently lead employees. among very shareholders, lenders, importantly, valued ensure initiatives this appointed our will and First, credibility key Directors expanded are bondholders, of will In restore CEO. turnaround we interim customers, including has And important facets vendors all
our on oversight energies plants customer.
And our a contracts, Thomas that and given Meth Operating Chief of we program.
It's to long-standing on steps, our the ports, investment important Coscio, number is Chief focus our to of adverse Development capital with QX execute of exclusively each almost Officer, relationships impact are his alleviate note understanding we previously our we also transactions. role of customer As the alternatives important these renegotiating asked his urgency the liquidity advisers calling Officer, taking existing on second, have addition of of to series transactions to of in help potential we're and with XXXX providing evaluating a Mark the
million wood you effect the agreements at contracts These purchase metric between As roughly fourth the additional XXXX to pellets customer, pellet the priced market with we XXXX. XXXX prices and the approximately into were into aware, that agreements.
And we with tons existing totaled had in with approximately with together are year, wood entered during metric same agreements entered at many purchase a last million of the quarter customer of XXXX. contracts customer. of X.X of between same and deliveries That time, sales tons, X.X we time at that with sales
have the the the XXXX spot spread market flows these a As challenges our Compounding have profitability, liquidity current through the during Form spot impact market pricing, loss pricing will the the has profitability, half significant prices XXXX, pellet unsupportive the the QX impact and continue volumes reported spot on cash or creating negative the margin market, current flows QX purchases of unfavorable in XXXX first we negative largely XXXX. further through spot on sale wood of we challenges in held had that our due in prices on of pellet transactions to cash and are levels wood transactions sales. expect today, at liquidity, operational and and market purchase environment.
Absent significant a resale described much a and near-term those agreements between increase XX-Q of filed our to detail and anticipated the negative given
aggregate, language be our the you our Form in of senior of the release going in XX-Q. such, and XXXX.
Because As that, end we absent as cure, the see under press certain and of as will of concern fourth we credit quarter may conditions anticipate a our covenants secured facility in early these of events breach noted
I near-term moving are earlier, with of path execute urgency forward to we and a sense challenges. develop As through a successful noted the
optimistic the this look few quarters, long-term next beyond this we inherent Importantly, in regarding and value industry. we remain as in business the
a a accomplish be we term, have this through significant the of We position we lead will once challenges, leg stronger in of in believe biomass but Enviva through navigate near sector to lot work to industrial these continue the to next growth.
are results. entire acknowledge testament turn talent Let's third because to to of discuss There the like real now focus, key I'd to highlights our are team. of details they a upfront our the quarter resilience and two
in XX% quarter, and the contract second from by the quarter. third plant second, sales was versus as delivered quarter increase our ton maintenance down $XXX primarily across per helped year-over-year XXXX. driven labor. metric at And fixed volumes metric of second improvements production $XXX ton the production, First, fleet and costs our during were by port XX% per ton sequentially Improvement quarter-over-quarter and such coupled repairs with increased $X metric costs lower per
that plant was for improvements we per than primarily these in the quarter, second we decreased operating net Southampton, increase shut of continued single came ton, had quarter expectations.
Net the four decided of third that XXXX.
The third by operational was and dryer While line. the dryer for determined with results XXXX the production Net $XX our more offset loss well million which volume revenue as services revenue metric down our year-over-year loss to improved progress Virginia overall third acknowledge improvements. activity costs approximately in below represent, lower as line to year-over-year, to dampened compared the attributable million quarter commercial the factors: $XX operating permanently a during underperforming X% First,
of $XX charges the recognized we quarter. As a in asset result, million impairment
we repurchase higher of including Second, expense interest expense, account. $XX incurred interest million on
review the more restructuring sold corporate inclusive of higher was million of XXXX. XX% per quarter the by sold in advisers driven resulted ton in compared to cost customers. EBITDA The SG&A year-over-year spot had XXXX. negotiations $XX.X lower costs to of the was third of of weak the coupled XXXX being due for with the million simply primarily severance And quarter million quarter.
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roughly $XXX year-to-date way, biomass volume than We quarter, XXXX.
In are million higher much spot both was of premium across quarter current ton. quarter this market EBITDA as $XX During $XXX market to million, reaffirmed volume our XXXX, curve indices our for metric the an That's our approximately XXXX per XX% fourth XXXX, exceeded of forward than spot spot for Said factored of that substantial of quarter European price third another the pricing we a pricing lower and the when including range assumed long-term average contracted third we of as book. the on $XX expectations our August well prices sales portfolio. adjusted to in prices $XXX metric of per certain a ton contracted to significant third an sales. average
of quarter near XXXX unrestricted million, our Alabama which and was plants approximately of the restricted Epes, $XXX in $XXX at third Our greenfield cash cash a Bond, liquidity Mississippi. to included million end million $XXX portion of funding of and
the senior full credit revolving end million had we our facility. of secured available of the drawn As under September $XXX XXXX, amount
decided total activity, end review expected together expenditures due including future previous As of fourth our withdraw liquidity to comprehensive I've price we metric capital have XXXX to guidance commercial per ton, the for our factors quarter look and sales lower the we with ahead net adjusted discussed, and EBITDA guidance, years. to the loss, XXXX, forward-looking of and
on of share to we what fourth for based today. want did we our the know quarter assumptions some However,
We of quarter the transactions, the fourth excluding are the anticipating XXXX potentially XXXX. quarter for weaker from than results impacts any be results, could QX that third
on important the expenditures experienced facility our has biomass as work the in liquidity and demand It consumption vigilant the We management, leverage capital higher our generally prices, us respect on winter impact important Epes in extremely headwinds. value allows investment of heating on for and year. year, associated note Getting advisers.
With and each increased expected While we this approximately being our and and materialized with made our expenses running higher not in is legal yet doing and through the also that drives total are of demand to priorities we ultimate capacity spot financial budget we an construction and that incurring of to with have we on year, production to and quarter commercial one are SG&A fourth remain wood higher is up uptick while XX% to dynamic pellet profitability. Epes investing navigating that time are date. given the with top of focused total keenly on cash its capitalize
with we are initiatives. we light development in although of construction facility, to of ongoing the months Bond potential a the Additionally, to of are our related management plant XX Bond progressing the deferral X of evaluating liquidity
invest maintain in we and want production momentum in and to the our growth successful to is believe important plants continue two flow We of disciplined cash our path because contribution Bond forward, way. to with these a Epes we
continually we expenditures. our will reevaluate material capital However,
we fact of will many those after a provide satisfactory the you news work this be a the to have great us in have recognize the deal before of questions. of questions may we we we've While is of position to morning, matter ahead answers shared
we happy I'm many to that's will result, today. time. due in As market sure more questions please your to we holding address at live but committed a to know of be time updates, we be coming and concrete back not are with disappointing Q&A a to you, that the session will
conclude I As our I'll wrap few takeaways. up a with call, key
at lower recent our operational as a cost this evidenced by production quarter. higher are turnaround First, efforts yielding results,
team what tackle improvements to our and revenue capital and I generation focus able our am by our accomplish. to being I see expand we structure, encouraged in motivated As
better navigating sector are this we to steps ultimately, headwinds, leader the capital skill we near-term Enviva industrial refocus strategically leg growth. strong structure next position of our significant decisive in are and biomass a to and executive sets, through be while strengthen Second, taking liquidity
the coming industry Finally, I forward updates our you. our and look to the is our for on compelling, long-term in Thank business providing and progress outlook months.
