Revenue during the quarter dropped 6.80 percent to $186.04 million from $199.61 million in the previous year period. Gross margin for the quarter expanded 319 basis points over the previous year period to 21.79 percent. Total expenses were 88.23 percent of quarterly revenues, down from 93.71 percent for the same period last year. This has led to an improvement of 548 basis points in operating margin to 11.77 percent.

Operating income for the quarter was $21.90 million, compared with $12.56 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $34.20 million compared with $30.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 291 basis points in the quarter to 18.39 percent from 15.47 percent in the last year period.

"Innophos delivered another solid quarter highlighted by significant improvements in net income, the highest adjusted EBITDA in eight quarters, and strong cash generation," said Kim Ann Mink, Ph.D., chief executive officer. "Our ability to maintain margins despite ongoing market headwinds is the direct result of our ability to reduce costs across the organization through our operational excellence initiatives. Through these efforts we have now identified a procurement savings pipeline of $13 to $15 million, 75% of which we expect to be recognized in our 2016 P&L.

The company has spent $25.68 million cash to meet investing activities during the nine month period as against cash outgo of $21.77 million in the last year period.

The company has spent $41.56 million cash to carry out financing activities during the nine month period as against cash outgo of $4.04 million in the last year period.

Cash and cash equivalents stood at $32.80 million as on Sep. 30, 2016, down 61.89 percent or $53.25 million from $86.05 million on Sep. 30, 2015.

Working capital drops significantly
Innophos Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $188.51 million as at Sep. 30, 2016, down 40.63 percent or $129.01 million from $317.52 million on Sep. 30, 2015. Current ratio was at 3.22 as on Sep. 30, 2016, down from 4.66 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 118 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 47 days for the same period last year.

Days inventory outstanding has decreased to 44 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.