Albany International Corp. (AIN) has reported a 35.32 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $13.07 million, or $0.41 a share in the quarter, compared with $9.66 million, or $0.30 a share for the same period last year. On an adjusted basis, earnings per share were at $0.41 for the quarter compared with $0.47 in the same period last year.

Revenue during the quarter grew 6.98 percent to $191.27 million from $178.79 million in the previous year period. Gross margin for the quarter contracted 450 basis points over the previous year period to 37.86 percent. Total expenses were 87.02 percent of quarterly revenues, up from 85.55 percent for the same period last year. That has resulted in a contraction of 148 basis points in operating margin to 12.98 percent.

Operating income for the quarter was $24.82 million, compared with $25.84 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $42.70 million compared with $41.98 million in the prior year period. At the same time, adjusted EBITDA margin contracted 116 basis points in the quarter to 22.32 percent from 23.48 percent in the last year period.

President and chief executive officer Joe Morone said, "In Q3 2016, Albany continued on the trajectory of the last several quarters. MC again generated strong income and AEC strong sales growth, as both businesses remained firmly on track toward their full-year and longer-term objectives. "Finally, our new business development efforts continue along three fronts - competing for incremental new business on existing aerospace platforms (commercial and defense, engines and airframes), collaborative R&D to position AEC to compete on future new aerospace platforms, and R&D probes into markets outside of aerospace. Of particular note in Q3 was an example of progress on the first of these fronts. AEC was awarded a contract to produce composite components on an existing platform utilizing conventional 2D laminate composite technology. We expect this contract will generate sales of $15 million to $20 million per year by 2020. In sum, this was another good quarter for Albany, with both businesses remaining firmly on track toward their full-year 2016 and longer-term strategic and financial performance objectives."

The company has spent $231.87 million cash to meet investing activities during the nine month period as against cash outgo of $37.48 million in the last year period. It has incurred net capital expenditure of $44.87 million on net basis during the nine month period, up 19.71 percent or $7.39 million from year ago period.

Cash flow from financing activities was $186.37 million for the nine month period as against cash outgo of $17.20 million in the last year period.

Cash and cash equivalents stood at $196.17 million as on Sep. 30, 2016, up 14.20 percent or $24.39 million from $171.78 million on Sep. 30, 2015.

Working capital increases sharply

Albany International Corp. has recorded an increase in the working capital over the last year. It stood at $375.04 million as at Sep. 30, 2016, up 33.82 percent or $94.79 million from $280.26 million on Sep. 30, 2015. Current ratio was at 3.55 as on Sep. 30, 2016, up from 2.61 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 107 days for the quarter from 151 days for the last year period. Days sales outstanding were almost stable at 80 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 54 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.