Revenue during the quarter plunged 34.90 percent to $107.47 million from $165.09 million in the previous year period. Gross margin for the quarter expanded 693 basis points over the previous year period to 31.58 percent. Total expenses were 84.18 percent of quarterly revenues, down from 86.77 percent for the same period last year. This has led to an improvement of 259 basis points in operating margin to 15.82 percent.

Operating income for the quarter was $17 million, compared with $21.85 million in the previous year period.

Uzi Yemin, chairman and chief executive officer of Delek Logistics' general partner, remarked: "During the third quarter, our focus on cost savings initiatives played a role in the year-over-year decline in operating and general and administrative expenses and partially offset lower operating performance in the Pipelines and Transportation segment. The hydro test of the Paline Pipeline required every five years was successfully completed in August, but its $1.0 million cost did contribute to a lower DCF during the quarter. We have a FERC tariff in place for Paline and have been actively marketing the excess capacity, which has led to increased shipper interest from Delek and third parties for the available space. We maintained financial flexibility, ending the quarter with approximately $319 million of capacity on our credit facility and a leverage ratio of 3.70 times. This financial position supported the 14.9 percent year-over-year increase in our declared third quarter distribution."

The company has spent $60.16 million cash to meet investing activities during the nine month period as against cash outgo of $43.88 million in the last year period.

The company has spent $26.60 million cash to carry out financing activities during the nine month period as against cash outgo of $24.74 million in the last year period.

Working capital drops significantly
Delek Logistics Partners, LP has witnessed a decline in the working capital over the last year. It stood at $4.79 million as at Sep. 30, 2016, down 41.81 percent or $3.44 million from $8.23 million on Sep. 30, 2015. Current ratio was at 1.28 as on Sep. 30, 2016, up from 1.24 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 15 days for the last year period. Days sales outstanding went up to 23 days for the quarter compared with 21 days for the same period last year.

Days inventory outstanding has increased to 5 days for the quarter compared with 3 days for the previous year period. At the same time, days payable outstanding went up to 15 days for the quarter from 10 for the same period last year.