Revenue during the quarter went up marginally by 0.64 percent to $190.43 million from $189.22 million in the previous year period. Gross margin for the quarter contracted 53 basis points over the previous year period to 37.17 percent. Total expenses were 88.79 percent of quarterly revenues, down from 90.10 percent for the same period last year. This has led to an improvement of 131 basis points in operating margin to 11.21 percent.

Operating income for the quarter was $21.34 million, compared with $18.73 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $28.32 million compared with $26.83 million in the prior year period. At the same time, adjusted EBITDA margin improved 69 basis points in the quarter to 14.87 percent from 14.18 percent in the last year period.

Michael F. Barry, chairman, chief executive officer and president commented, “We are pleased with our third quarter results, despite a challenging environment and continued foreign exchange headwinds. We were able to grow our revenue both organically by 2% and from acquisitions by 2%. While our gross margins declined somewhat as raw material prices increased, we were more than able to offset the decline with savings realized from our previously announced restructuring and other cost streamlining initiatives which enabled our adjusted EBITDA margin to increase to nearly 15%. This performance was achieved despite foreign exchange headwinds, which negatively impacted our top and bottom lines by 2% and 3%, respectively. For the fourth quarter, we expect our gross margin to remain at a similar level as the third quarter and we believe our ability to take market share and leverage past acquisitions, as well as our cost saving efforts, will continue to help offset market and foreign exchange challenges. In summary, our fourth quarter and full year 2016 forecast continues to indicate growth in both the top and bottom lines and we still expect to increase non-GAAP earnings and adjusted EBITDA for the seventh consecutive year.”

The company has spent $8.69 million cash to meet investing activities during the nine month period as against cash outgo of $29.43 million in the last year period. It has incurred net capital expenditure of $6.26 million on net basis during the nine month period, up 4.54 percent or $0.27 million from year ago period.

The company has spent $25.52 million cash to carry out financing activities during the nine month period as against cash inflow of $14.46 million in the last year period.

Cash and cash equivalents stood at $99.02 million as on Sep. 30, 2016, up 2.98 percent or $2.87 million from $96.16 million on Sep. 30, 2015.

Working capital remains almost stable
Quaker Chemical Corporation has recorded an increase in the working capital over the last year. It stood at $269.35 million as at Sep. 30, 2016, up 0.70 percent or $1.88 million from $267.47 million on Sep. 30, 2015. Current ratio was at 3.16 as on Sep. 30, 2016, down from 3.18 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 64 days for the quarter from 94 days for the last year period. Days sales outstanding were almost stable at 92 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 31 days for the quarter compared with 61 days for the previous year period. At the same time, days payable outstanding was almost stable at 59 days for the quarter, when compared with the previous year period.