Revenue during the quarter went up marginally by 0.94 percent to $55.20 million from $54.69 million in the previous year period. Gross margin for the quarter contracted 8 basis points over the previous year period to 30.75 percent. Total expenses were 98.01 percent of quarterly revenues, up from 97.51 percent for the same period last year. That has resulted in a contraction of 50 basis points in operating margin to 1.99 percent.

Operating income for the quarter was $1.10 million, compared with $1.36 million in the previous year period.

However, the adjusted EBITDA for the quarter was almost stable at $4.14 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 9 basis points in the quarter to 7.50 percent from 7.59 percent in the last year period.

"CBA’s third quarter performance demonstrates further validation of our Kona Plus strategy and underscores our unique value proposition in a progressively competitive and unprecedented market," said Andy Thomas, chief executive officer, CBA. “Looking ahead, we believe that Kona Plus, combined with the benefits of our expanded A-B relationship and upcoming cost optimization efforts, will position CBA for long-term shareholder value."

The company has spent $13.12 million cash to meet investing activities during the nine month period as against cash outgo of $9.36 million in the last year period. It has incurred net capital expenditure of $12.20 million on net basis during the nine month period, up 30.29 percent or $2.84 million from year ago period.

Cash flow from financing activities was $9.76 million for the nine month period, up 414.78 percent or $7.86 million, when compared with the last year period.

Cash and cash equivalents stood at $0.41 million as on Sep. 30, 2016, down 77.42 percent or $1.41 million from $1.82 million on Sep. 30, 2015.

Working capital increases sharply
Craft Brew Alliance, Inc. has recorded an increase in the working capital over the last year. It stood at $14.99 million as at Sep. 30, 2016, up 38.78 percent or $4.19 million from $10.80 million on Sep. 30, 2015. Current ratio was at 1.44 as on Sep. 30, 2016, up from 1.32 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 36 days for the last year period. Days sales outstanding went up to 38 days for the quarter compared with 34 days for the same period last year.

Days inventory outstanding has decreased to 25 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding was almost stable at 44 days for the quarter, when compared with the previous year period.