Revenue during the quarter grew 5.93 percent to $114.56 million from $108.15 million in the previous year period. Gross margin for the quarter contracted 347 basis points over the previous year period to 24.27 percent. Total expenses were 83.80 percent of quarterly revenues, down from 89.78 percent for the same period last year. This has led to an improvement of 598 basis points in operating margin to 16.20 percent.

Operating income for the quarter was $18.56 million, compared with $11.06 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $30.43 million compared with $23.72 million in the prior year period. At the same time, adjusted EBITDA margin improved 463 basis points in the quarter to 26.56 percent from 21.93 percent in the last year period.

"We are pleased to achieve another quarter of revenue growth and significant cash flow generation reflecting the strength of our highly efficient, low cost operations," stated Jay Bachmann, Continental’s chief executive officer. "For the third consecutive quarter, we experienced stronger demand in our markets east of the Mississippi which drove the 6% net sales growth versus last year. We converted all of our adjusted EBITDA into operating cash flow and deployed over $11 million for share repurchases to enhance shareholder returns. As we look to the remainder of 2016, we remain committed to executing our operational initiatives and taking advantage of value-enhancing opportunities."

The company has spent $4.94 million cash to meet investing activities during the nine month period as against cash outgo of $2.94 million in the last year period. It has incurred net capital expenditure of $4.30 million on net basis during the nine month period, up 109.30 percent or $2.24 million from year ago period.

The company has spent $60.51 million cash to carry out financing activities during the nine month period as against cash outgo of $45.28 million in the last year period.

Cash and cash equivalents stood at $34.76 million as on Sep. 30, 2016, up 101.40 percent or $17.50 million from $17.26 million on Sep. 30, 2015.

Working capital declines
Continental Building Products, Inc has witnessed a decline in the working capital over the last year. It stood at $57.78 million as at Sep. 30, 2016, down 6.75 percent or $4.18 million from $61.96 million on Sep. 30, 2015. Current ratio was at 2.39 as on Sep. 30, 2016, down from 2.68 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 34 days for the same period last year.

Days inventory outstanding has decreased to 14 days for the quarter compared with 37 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 29 for the same period last year.