You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Our third quarter was a strong and dynamic one given the circumstances.
Since COVID-19 began to spread across the globe, the macroeconomic environment went from robust growth to recession almost overnight.
Now, we are seeing more positive economic and market trends, but the rates of the recovery and the status of the virus remain highly variable.
In short, the environment in which we conduct business remains uncertain.
For the third quarter, we were pleased to have achieved top line growth on the strength of our residential segment as favorable weather, our new product lineup and stay-at-home trends drove robust demand in the mass and dealer channels.
Incremental sales from our successful Venture Products acquisition also contributed to third quarter growth.
I'm deeply grateful for the extraordinary efforts and the commitments of our team during these challenging times.
The health and safety of our people remains our top priority, as we support and deliver value to our customers.
Our talented global team of more than 9,000 remained resilient and solution-oriented.
Among other things, we modified production lines and workflow to accommodate social distancing in manufacturing, continued to work effectively, while adhering to local safety guidelines, developed methods to move production and inventories to meet customer requirements and managed the demands of home, child care and personal wellness.
Our teams did all of this, while delivering a solid quarter of financial results.
Turning to the demand environment during the quarter.
In May, as the residential segment remained strong, we saw an improvement in our professional segment, and those trends continued throughout the quarter and into the month of August.
As customers gained more confidence, demand started to return.
The market continues to be dynamic given the variability of the economic recovery and the status of the virus around the world.
We are fully prepared to respond to potential market changes.
Our long-standing ability to adapt to different business environments was evident in the quarter, and our team is well positioned to continue to succeed even in challenging market conditions.
Looking at the results for the quarter, our residential segment continued to excel with 38% year-over-year net sales growth and strong margins.
The movement outdoors we have seen during the past several months contributed to record sales of zero-turn mowers, which doubled in the quarter.
We also saw strong contributions from walk power mower sales.
Professional segment net sales for the quarter declined 8% year-over-year, which was better than expected.
Sales included incremental revenue from the Venture Products acquisition.
We are encouraged by improved demand for our professional segment products, particularly in the landscape contractor, rental, specialty construction and irrigation markets.
We're seeing demand driven by greater business confidence and increased home investments.
Improved retail demand within the quarter reduced field inventory, which is in good shape and more than prior year, setting us up well for pre-season shipments.
With robust performance in our residential segment and improved demand in our professional segment, we demonstrated the strength of our diverse portfolio of businesses and our ability to be agile, while focusing on customer needs.
This positions us to drive growth forward as our end markets normalize.
There are two additional highlights in the quarter that I would like to recognize.
First, we launched our Sustainability Endures platform, which furthers and enhances our long-standing dedication to make a positive global impact socially, environmentally and financially.
And second, we were named Innovative Partner of the Year by the Tractor Supply Company.
This reflects our commitment to innovation as well as the effectiveness of our partnership to deliver great products during these difficult times.
The successes we experienced this quarter were due to the dedication of our team, our innovative product lineup, strong demand through mass and dealer channels and the contribution from our first full quarter of the Venture Products acquisition.
We are enthusiastic about our future given our balanced and flexible business model that allows us to adapt quickly to change, enduring values that focus on the success of customers, innovative new products aligned to customer trends, a strong financial position and the proven ability of our people to adapt and perform successfully in these dynamic times.
During the third quarter, we once again demonstrated the ability of our adaptable business model and resilient culture to manage near-term headwinds and position us for long-term growth.
We continued to capitalize on our strong balance sheet to invest in growth, while executing well operationally.
We remain flexible in order to drive financial results, while keeping our people safe and delivering on our brand promise to our customers.
In this environment, we grew third quarter net sales by 0.3% to $841 million.
Reported and adjusted earnings per share was $0.82 for the quarter, compared to reported earnings per share of $0.56 and adjusted earnings per share of $0.83 last year.
For the first nine months, net sales increased by 0.6% to $2.54 billion.
Diluted earnings per share was $2.37, compared to $2.18 in the first nine months of fiscal 2019.
Year-to-date adjusted diluted earnings per share was $2.38, compared to $2.52 a year ago.
Before I review segment results, I'll cover liquidity.
At the end of the third quarter, our liquidity was $992 million.
This included cash and cash equivalents of $394 million and availability under our revolving credit facility of $598 million.
We have no significant debt maturities until April of 2022.
We are in a strong position today and in the event of an extended period of macroeconomic uncertainty.
Now, to the segment results, residential segment net sales for the third quarter were up 38.3% to $205 million, mainly driven by strong retail demand for zero-turn riding and walk power mowers, and our expanded mass channel.
Year-to-date fiscal 2020 net sales increased 20.4% compared to the same period of fiscal 2019.
Residential segment operating earnings for the quarter were up 76.7% to $28.5 million.
This reflects a 300 basis point year-over-year increase to 13.9% when expressed as a percent of net sales.
This improvement was largely driven by productivity and synergy initiatives, and SG&A expense reduction and leverage on higher sales volume.
This was partially offset by COVID-related manufacturing inefficiencies and unfavorable product mix.
Year-to-date, residential segment operating earnings increased 70.2% to $87.2 million.
On a percent of sales basis, segment operating earnings increased 400 basis points to 13.8%.
For the third quarter, professional segment net sales decreased 7.9% to $623.6 million.
This was due to reduced channel demand as a result of COVID-19-related impact.
This included fewer shipments of golf and grounds equipment, reduced sales of rental, specialty and underground construction equipment, and fewer shipments of landscape contractor zero-turn riding mowers.
This was partially offset by incremental Venture Products sales.
For the year-to-date period, professional segment net sales increased 1.3% compared to the same period of fiscal 2019.
Professional segment operating earnings for the third quarter were up 39.3% to $113.7 million, and when expressed as a percentage of net sales, increased 610 basis points to 18.2%.
This increase was primarily due to lower non-recurring acquisition-related expenses versus the prior year period, favorable net price realization and decreased commodity costs.
This increase was partially offset by unfavorable product mix and COVID-related manufacturing inefficiencies.
Year-to-date professional segment operating earnings increased 0.8% compared to the same period in the prior fiscal year.
When expressed as a percentage of net sales, operating earnings remained constant, 17.2% year-over-year for both fiscal periods.
Moving to our operating results.
We reported gross margin for the third quarter of 35%, an increase of 330 basis points over the prior year period.
Excluding acquisition-related costs, adjusted gross margin decreased 70 basis points to 35.2%.
The decrease in adjusted gross margin was primarily driven by COVID-19-related manufacturing inefficiencies, unfavorable mix due to the higher sales of residential products, and an increased inventory reserve in one of our professional businesses.
This was partially offset by favorable net price realization in the professional segment and productivity and synergy initiatives.
For the first nine months, reported gross margin was 35%, up 160 basis points compared with 33.4% in the prior year period.
Adjusted gross margin was 35.2%, compared with 35.3% in the first nine months of fiscal 2019.
SG&A expense, as a percent of sales, decreased 170 basis points to 21.2% for the quarter, primarily due to lower travel and meeting expenses, acquisition-related charges and employee salaries.
For the first nine months of fiscal 2020, SG&A expense, as a percent of sales, was 21.9%, up 20 basis points from the prior year period.
Operating earnings, as a percent of net sales, increased 500 basis points to 13.8% for the third quarter.
Adjusted operating earnings, as a percent of net sales, increased 50 basis points to 13.9%.
For the first nine months of fiscal 2020, operating earnings, as a percent of net sales, were 13.1%, compared with 11.7% a year ago.
Adjusted operating earnings, as a percent of net sales, for the first nine months were 13.4%, compared with 14.2% a year ago.
Interest expense decreased $700,000 for the third quarter compared to a year ago, due to lower interest rates.
Interest expense increased $4.7 million for the year-to-date period compared to a year ago.
This was due to increased borrowings as a result of our professional segment acquisitions.
For the full year, we continue to expect interest expense of about $33 million.
The effective tax rate was 19.8% for the third quarter, and adjusted effective tax rate was 20.9%.
For the first nine months of fiscal 2020, the effective tax rate was 19.2% and the adjusted effective tax rate was 20.6%.
For the full year, we continue to expect an adjusted effective tax rate of about 20.5%.
Turning to the balance sheet and cash flow.
Accounts receivable totaled $294.7 million, down 5.6% from a year ago.
Inventory was up by 5.7% to $656.2 million, and accounts payable decreased 11.8% to $268.7 million.
Year-to-date free cash flow was $259.3 million with the net income conversion of 100.7%.
This positive performance was due to the increase in net earnings, favorable net working capital change and reduced capital expenditures.
Our disciplined capital allocation strategy includes investing in organic and M&A growth opportunities, maintaining an effective capital structure and returning cash to shareholders.
Our sharp focus on near-term liquidity has reaffirmed our capital allocation priorities for the year.
These include prioritizing debt repayment to maintain our leverage target, curtailing share repurchases and considering strategically compelling acquisition.
We increased our cash dividend for the third quarter of fiscal 2020 by 11.1% to $0.25 per share as compared to the prior year period.
Based on our current outlook and strong financial position, we expect to maintain our dividend.
As Rick discussed, there remains uncertainty as a result of COVID-19-related factors.
We withdrew our guidance in March, and we will not be providing a specific full-year guidance on [Technical Issues].
Similar to past practice, we will provide full year fiscal 2021 guidance on our fourth quarter call, if we have sufficient visibility and confidence to do so.
However, based on current visibility and with an understanding of the uncertain nature of the economic environment, we would like to provide you with our current thinking about the fourth quarter.
We anticipate continued year-over-year growth in the residential market.
Professional market should benefit from the gradual return to more normal buying patterns as customers' confidence in the economy increases.
These positive trends will likely be somewhat offset by remaining COVID-19 headwinds, such as budget constraints, the effect of social distancing restrictions and regional variations in economic recovery.
As you know, precision is difficult in this environment, but if these assumptions hold through, we anticipate that fiscal 2020 fourth quarter net sales will be higher than that of the prior year quarter.
Adjusted earnings per share will be similar to that of the fiscal 2019 fourth quarter.
We expect net other income to be lower in the fourth quarter of fiscal 2020 than in the prior year period, as a result of a favorable pension and post-retirement plan benefit in fiscal 2019 that will not be repeated.
We continue to expect total net other income for fiscal 2020 to be about $13 million.
We continue to expect depreciation and amortization for fiscal 2020 of about $95 million and capital expenditures of about $80 million.
We anticipate that fiscal 2020 free cash flow conversion rate to be similar to fiscal 2019.
We plan to build inventory in the fourth quarter to mitigate any potential supply chain and manufacturing constraints, due to social distancing restrictions.
In summary, we executed well in the third fiscal quarter in a challenging environment as our team demonstrated their resiliency, commitment and determination.
We are in a strong financial position and continue to invest in technology and innovation to drive long-term growth.
As a result, we are confident in our ability to navigate through any near-term challenges and capitalize on growth opportunities.
We're optimistic about our future.
Our diverse portfolio of businesses and strong customer relationships position us to drive growth as our end markets normalize.
Our productivity initiatives continue to enable operational improvements, and our focus on innovative products and our recent acquisitions are aligned with changing global market dynamics.
We had several new products introduced during the year that demonstrate our ability to innovate and satisfy our customers' evolving needs.
For example, the new chainsaw and power shovel that are part of the Toro 60-volt lithium-ion Flex-Force platform, the e-Dingo compact utility loader, electric and hybrid greensmowers, the Ditch Witch JT24 horizontal directional drill and SK3000 stand-on skid steer and Aqua-Traxx Azul drip tape.
Our recent acquisitions also continued to deliver with both Charles Machine Works and Venture Products aligned with key market trends, such as 5G and broadband build-out, infrastructure improvements and product versatility for our professional and homeowners with acreage customers.
We are encouraged by the continued strong residential demand and the improvements in our professional markets.
As we look forward, we'll be watching a number of macro trends, such as the trajectory and duration of COVID-related impacts, including social distancing restrictions and global supply chain disruptions, global economic recovery factors driving general consumer and business confidence and commodity trends, and weather patterns for the fall and winter seasons.
More specifically, we're tracking certain key factors for individual markets as we end the year and look ahead to fiscal 2021: for the residential segment and certain professional segment businesses, continued customer interest and home investments driven by stay-at-home trends; for golf, continued strength in rounds played, coupled with improved food and beverage revenue; for grounds equipment, the help of municipal and other tax supported budgets constrained by COVID-related factors; for landscape contractors, business confidence and favorable mowing conditions; for underground, 5G and broadband buildout, critical need infrastructure rehab and replacement and increased oil and gas projects; for rental and specialty construction, homeowner-related projects and the resumption of construction activity; and for snow and ice management, the timing of the winter season and continued demand within our new product categories.
In closing, we are enthusiastic about our future given our new product pipeline and the proven ability of our people to drive growth and productivity in these dynamic times.

user
q3 adjusted earnings per share $0.82.
q3 earnings per share $0.82.
q3 sales $841 million versus refinitiv ibes estimate of $772.6 million.
not reinstating financial guidance at this time.
for q4, continued year-over-year growth in residential market is expected at a more moderate level.
sees 2020 fourth-quarter adjusted earnings per share to be similar to that of fiscal 2019 q4, on higher net sales.

assistant