Revenue during the quarter dropped 5.84 percent to $109.77 million from $116.59 million in the previous year period. Gross margin for the quarter expanded 666 basis points over the previous year period to 20.88 percent. Total expenses were 85.08 percent of quarterly revenues, down from 90.03 percent for the same period last year. This has led to an improvement of 494 basis points in operating margin to 14.92 percent.

Operating income for the quarter was $16.38 million, compared with $11.63 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $25.47 million compared with $19.77 million in the prior year period. At the same time, adjusted EBITDA margin improved 625 basis points in the quarter to 23.20 percent from 16.95 percent in the last year period.

"Strong operating and financial performance for the quarter continues to underpin our durable, growing contracted cash flows," said John Keppler, chairman and chief executive officer. "In addition to maintaining our track record of quarter-over-quarter distribution increases, we have agreed to terms for our second drop-down transaction, an accretive acquisition of the Sampson plant and associated off-take contracts. The financing needs for the drop-down gave us the opportunity to transform our balance sheet to a more permanent capital structure with substantial flexibility that can be the foundation for financing future growth."

The company has spent $7.81 million cash to meet investing activities during the nine month period as against cash outgo of $8.56 million in the last year period.

The company has spent $40.58 million cash to carry out financing activities during the nine month period as against cash inflow of $44.43 million in the last year period.

Cash and cash equivalents stood at $21.40 million as on Sep. 30, 2016, down 73.72 percent or $60.03 million from $81.43 million on Sep. 30, 2015.

Working capital drops significantly
Enviva Partners, LP has witnessed a decline in the working capital over the last year. It stood at $47 million as at Sep. 30, 2016, down 58.76 percent or $66.96 million from $113.97 million on Sep. 30, 2015. Current ratio was at 2.25 as on Sep. 30, 2016, down from 4.31 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 48 days for the last year period. Days sales outstanding went down to 30 days for the quarter compared with 33 days for the same period last year.

Days inventory outstanding has decreased to 15 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went down to 4 days for the quarter from 7 for the same period last year.