Raven Industries, Inc. (RAVN) swung to a net profit for the quarter ended Oct. 31, 2016. The company has made a net profit of $5.74 million, or $ 0.16 a share in the quarter, against a net loss of $6.19 million, or $0.17 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $5.74 million, or $0.16 a share compared with $4.09 million or $0.11 a share, a year ago.

Revenue during the quarter grew 7.26 percent to $72.52 million from $67.61 million in the previous year period. Gross margin for the quarter expanded 225 basis points over the previous year period to 27.36 percent. Operating margin for the quarter period stood at positive 10.19 percent as compared to a negative 14.53 percent for the previous year period.

Operating income for the quarter was $7.39 million, compared with an operating loss of $9.82 million in the previous year period.

However, the adjusted operating income for the quarter stood at $7.39 million compared to $6.15 million in the prior year period. At the same time, adjusted operating margin improved 110 basis points in the quarter to 10.19 percent from 9.09 percent in the last year period.

"We are pleased with the continued improvement in financial performance in the third quarter. Strong performances in both Applied Technology and Engineered Films are continuing and momentum is building for these divisions. Sales growth in these two divisions are resulting in strong incremental margins and driving growth in their division profits," said Dan Rykhus, president and chief executive officer. "New products are contributing to sales growth for Applied Technology, and after several years of declining Energy demand for Engineered Films, we are starting to see year-over-year growth once again. These growth trends continue to strengthen even further in the fourth quarter."

For fiscal year 2017, Raven Industries, Inc. forecasts revenue to be $277 million.

The company has spent $3.75 million cash to meet investing activities during the nine month period as against cash outgo of $8.97 million in the last year period. It has incurred net capital expenditure of $2.76 million on net basis during the nine month period, down 68.72 percent or $6.06 million from year ago period.

The company has spent $22.42 million cash to carry out financing activities during the nine month period as against cash outgo of $45.86 million in the last year period.

Working capital remains almost stable

Working capital of Raven Industries, Inc. remained almost stable for the quarter at $106.19 million, when compared with the previous year period. Current ratio was at 5.21 as on Oct. 31, 2016, down from 6.34 on Oct. 31, 2015.

Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 134 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 54 days for the same period last year.

Days inventory outstanding has decreased to 37 days for the quarter compared with 93 days for the previous year period. At the same time, days payable outstanding went up to 14 days for the quarter from 13 for the same period last year.