Industrial supply chain constraints are having some impact on the timing of demand flowing through to sales, though solid execution and our favorable industry position, still drove an over 16% organic increase in sales versus prior year levels.
Our teams are effectively managing through these issues to date, as reflected by our first quarter results, as well as our ability to increase operational inventory levels in the U.S. by 6% during the quarter.
Consolidated sales increased 19.2% over the prior year quarter.
Acquisitions contributed 2.1 percentage points of growth, and foreign currency drove a favorable 80 basis point increase.
In many of these factors, sales increased 16.3% on an organic basis.
As it relates to pricing, we estimate the contribution of product pricing on a year-over-year sales growth was around 140 basis points to 180 basis points in the quarter.
On a two-year stack basis, segment organic sales were up nearly 2%, an improvement from fiscal '21 fourth quarter trends.
Within our Fluid Power and Flow Control segment, sales increased 24% over the prior year quarter with acquisitions contributing 6.6 points of growth.
On an organic basis, segment sales increased 17.4% year-over-year and 6% on a two-year stack basis.
Gross margin up 28.6% declined 22 basis points year-over-year.
During the quarter, we recognized LIFO expense of $3.6 million compared to $1.1 million of expense in the prior year quarter and a $3.7 million LIFO benefit in our fiscal '21 fourth quarter.
The net vital headwind had an unfavorable 25 basis point year-over-year impact on gross margins during the quarter.
Selling, distribution and administrative expenses increased 10.6% year over year, or approximately 7% on an organic constant currency basis.
SG&A expense was 20.3% of sales during the quarter, down from 21.9% in the prior year quarter.
Combined with improving sales and effective price cost management, EBITDA grew 31% year-over-year, while EBITDA margin of 9.9% was up 89 basis points over the prior year.
Including reduced interest expense and a slightly lower tax rate, reported earnings per share of $1.36 was up 52% from the prior year.
Cash generated from operating activities during the first quarter was $48.6 million, while free cash flow totaled $45 million or 85% of net income.
During the quarter, we deployed a total of $36 million on share buybacks, debt reduction, dividends, and acquisitions.
With regards to share buybacks, we repurchased nearly 77,000 shares for approximately $6.5 million.
We ended September with just over $247 million of cash on hand and net leverage at 1.7 times adjusted EBITDA, which is below the prior year level of 2.1 times and the fiscal '21 fourth quarter level of 1.8 times.
Our revolver remains undrawn with approximately $250 million of capacity and an additional $250 million accordion option.
This includes earnings per share in the range of $5 to $5.40 per share based on sales growth of 8% to 10%, including a 7% to 9% organic growth assumption, as well as EBITDA margins of 9.7% to 9.9%.
That said, as previously highlighted, LIFO expense year-to-date is running higher than our initial expectations, assuming fiscal Q1 LIFO expense levels of $3.6 million sustained for the balance of the year.
This would result, in LIFO expense representing an approximate 40 basis point year-over-year headwind on EBITDA margins, compared to our initial expectation up 20 basis points to 30 basis points.
Further, we expect SD&A expense will be flat, to up slightly on a sequential basis, compared to first quarter levels of approximately $181 million.

Summary:
Consolidated sales increased 19.2% over the prior year quarter.
Including reduced interest expense and a slightly lower tax rate, reported earnings per share of $1.36 was up 52% from the prior year.
This includes earnings per share in the range of $5 to $5.40 per share based on sales growth of 8% to 10%, including a 7% to 9% organic growth assumption, as well as EBITDA margins of 9.7% to 9.9%.