Revenue during the quarter dropped 4.15 percent to $382.63 million from $399.18 million in the previous year period. Gross margin for the quarter contracted 91 basis points over the previous year period to 20.82 percent. Total expenses were 95.01 percent of quarterly revenues, up from 93.48 percent for the same period last year. That has resulted in a contraction of 153 basis points in operating margin to 4.99 percent.

Operating income for the quarter was $19.08 million, compared with $26.01 million in the previous year period.

However, the adjusted operating income for the quarter stood at $24.57 million compared to $26.90 million in the prior year period. At the same time, adjusted operating margin contracted 32 basis points in the quarter to 6.42 percent from 6.74 percent in the last year period.

Marc Shore, chief executive officer, commented "Although we continued to face headwinds in our fiscal 3rd quarter, we are beginning to see progress as a result of the steps we have taken to drive organic growth and operational improvements, which includes new customer contracts. We completed the acquisition of Paris Art Label which enhances our offering to our customers and part of our strategic goals. Finally, we are excited about the previously announced and currently pending merger with WestRock which is expected to take place in the fourth quarter."

The company has spent $63.97 million cash to meet investing activities during the nine month period as against cash outgo of $45.05 million in the last year period. It has incurred net capital expenditure of $37.20 million on net basis during the nine month period, up 8.25 percent or $2.83 million from year ago period.

Cash flow from financing activities was $7.41 million for the nine month period as against cash outgo of $55.48 million in the last year period.

Cash and cash equivalents stood at $63.45 million as on Mar. 31, 2017, up 36.30 percent or $16.90 million from $46.55 million on Mar. 31, 2016.

Working capital decreases marginally
Multi Packaging Solutions has witnessed a decline in the working capital over the last year. It stood at $231.54 million as at Mar. 31, 2017, down 1.82 percent or $4.29 million from $235.83 million on Mar. 31, 2016. Current ratio was at 1.92 as on Mar. 31, 2017, up from 1.90 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 56 days for the last year period. Days sales outstanding were almost stable at 57 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 23 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went down to 47 days for the quarter from 48 for the same period last year.