Revenue during the quarter dropped 15.21 percent to $966.60 million from $1,140 million in the previous year period. Gross margin for the quarter contracted 305 basis points over the previous year period to 11.41 percent. Total expenses were 98.98 percent of quarterly revenues, down from 99.16 percent for the same period last year. This has led to an improvement of 18 basis points in operating margin to 1.02 percent.

Operating income for the quarter was $9.90 million, compared with $9.60 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $53.90 million compared with $75.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 104 basis points in the quarter to 5.58 percent from 6.61 percent in the last year period.

“During the third quarter we continued to make solid progress against our strategic priorities, which helped us drive positive cash flow from operations this quarter,” stated Tim Go, chief executive officer of Calumet. “Through the first three quarters of fiscal 2016, our operations excellence initiatives to reduce cost and improve margin capture have driven an estimated $71.0 million of incremental Adjusted EBITDA and we are proud to have surpassed the mid-point of our stated $60.0 million to $75.0 million 2016 goal in only three quarters. Our integrated business teams have been diligent and continue to identify creative ways for the Partnership to drive costs out of the business, improve our margin capture and transform the organization for long-term success. We remain truly excited at the cultural shift that is taking hold within the organization and I want to thank all of our employees for their contribution to our transformation.”

The company has spent $127.40 million cash to meet investing activities during the nine month period as against cash outgo of $286.30 million in the last year period. It has incurred net capital expenditure of $115.40 million on net basis during the nine month period, down 51.16 percent or $120.90 million from year ago period.

Cash flow from financing activities was $158.40 million for the nine month period as against cash outgo of $12.10 million in the last year period.

Cash and cash equivalents stood at $17.80 million as on Sep. 30, 2016, up 187.10 percent or $11.60 million from $6.20 million on Sep. 30, 2015.

Working capital decreases marginally
Calumet Specialty Products Partners L.P. has witnessed a decline in the working capital over the last year. It stood at $172.50 million as at Sep. 30, 2016, down 2.76 percent or $4.90 million from $177.40 million on Sep. 30, 2015. Current ratio was at 1.31 as on Sep. 30, 2016, down from 1.32 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 32 days for the last year period. Days sales outstanding went up to 28 days for the quarter compared with 24 days for the same period last year.

Days inventory outstanding has decreased to 22 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went up to 39 days for the quarter from 38 for the same period last year.