Revenue during the quarter grew 9.45 percent to $194.91 million from $178.08 million in the previous year period. Gross margin for the quarter contracted 181 basis points over the previous year period to 36.37 percent. Total expenses were 92.94 percent of quarterly revenues, up from 88.86 percent for the same period last year. That has resulted in a contraction of 408 basis points in operating margin to 7.06 percent.

Operating income for the quarter was $13.76 million, compared with $19.84 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $28.21 million compared with $24.96 million in the prior year period. At the same time, adjusted EBITDA margin improved 46 basis points in the quarter to 14.47 percent from 14.02 percent in the last year period.

Michael F. Barry, chairman, chief executive officer and president, commented, “We are pleased with our first quarter results, despite continued foreign exchange headwinds. We were able to grow our organic volumes by 10% on continued market share gains, as well as from increased production in some of our end markets. While our gross margins declined due to raw material price increases, we were able to partially offset the decline with savings realized from our previously announced restructuring program and other cost streamlining initiatives. Overall, we achieved a 13% increase in adjusted EBITDA and a 20% increase in non-GAAP earnings despite foreign exchange negatively impacting earnings by 3%. ”

The company has spent $2.28 million cash to meet investing activities during the quarter as against cash outgo of $3.25 million in the last year period. It has incurred capital expenditure of $2.52 million on net basis during the quarter, up 17.24 percent or $0.37 million from year ago period.

The company has spent $5.83 million cash to carry out financing activities during the quarter as against cash inflow of $4.28 million in the last year period.

Cash and cash equivalents stood at $90.59 million as on Mar. 31, 2017, down 4.01 percent or $3.78 million from $94.37 million on Mar. 31, 2016.

Working capital decreases marginally
Quaker Chemical Corporation has witnessed a decline in the working capital over the last year. It stood at $255.69 million as at Mar. 31, 2017, down 3.86 percent or $10.28 million from $265.96 million on Mar. 31, 2016. Current ratio was at 2.84 as on Mar. 31, 2017, down from 3.31 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 65 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 90 days for the quarter compared with 96 days for the same period last year.

Days inventory outstanding has decreased to 32 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding was almost stable at 57 days for the quarter, when compared with the previous year period.