Revenue during the quarter went up marginally by 2.66 percent to $1,061.50 million from $1,034 million in the previous year period. Gross margin for the quarter contracted 360 basis points over the previous year period to 16.49 percent. Total expenses were 92.89 percent of quarterly revenues, up from 89.63 percent for the same period last year. That has resulted in a contraction of 325 basis points in operating margin to 7.11 percent.

Operating income for the quarter was $75.50 million, compared with $107.20 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $160.90 million compared with $193.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 355 basis points in the quarter to 15.16 percent from 18.70 percent in the last year period.

"Our first quarter Adjusted EBITDA was lower as expected at $161 million compared to $193 million in the prior year period. Net sales were up 2.7%, reflecting recent acquisitions and stable core volumes, consistent with the trends we experienced in 2016. Operating efficiencies improved during the quarter and we successfully upgraded two headboxes on the number six paper machine at our West Monroe, Louisiana mill" said president and chief executive officer Michael Doss. "The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs associated with the upgrade of the two headboxes."

The company has spent $77.30 million cash to meet investing activities during the quarter as against cash outgo of $392.90 million in the last year period. It has incurred net capital expenditure of $62.30 million on net basis during the quarter, down 34.42 percent or $32.70 million from year ago period.

Cash flow from financing activities was $25.90 million for the quarter, down 92.67 percent or $327.40 million, when compared with the last year period.

Cash and cash equivalents stood at $37.40 million as on Mar. 31, 2017, down 50.53 percent or $38.20 million from $75.60 million on Mar. 31, 2016.

Working capital drops significantly
Graphic Packaging Holding Co has witnessed a decline in the working capital over the last year. It stood at $387.90 million as at Mar. 31, 2017, down 25.32 percent or $131.50 million from $519.40 million on Mar. 31, 2016. Current ratio was at 1.51 as on Mar. 31, 2017, down from 1.77 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 56 days for the last year period. Days sales outstanding went down to 37 days for the quarter compared with 40 days for the same period last year.

Days inventory outstanding has decreased to 31 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 46 days for the quarter from 48 for the same period last year.