Revenue during the quarter went down marginally by 2.79 percent to $315.96 million from $325.02 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 69.54 percent. Total expenses were 99.54 percent of quarterly revenues, up from 96.48 percent for the same period last year. That has resulted in a contraction of 305 basis points in operating margin to 0.46 percent.

Operating income for the quarter was $1.47 million, compared with $11.43 million in the previous year period.

However, the adjusted operating income for the quarter stood at $17.95 million compared to $15.36 million in the prior year period. At the same time, adjusted operating margin improved 95 basis points in the quarter to 5.68 percent from 4.73 percent in the last year period.

President and Chief Executive Officer Saed Mohseni said, "BEF Foods delivered another excellent quarter with 13.7 percent volume growth of refrigerated side-dish products and 7.6 percent growth of our sausage business. Both product lines achieved market share gains during the quarter. Recent expansion of our side-dish production capacity and continued strategic use of our co-packer network, position us well for meeting peak holiday production demands during the third fiscal quarter.

For financial year 2017, Evans Bob Farms expects revenue to be in the range of $1,240 million to $1,290 million. The company projects diluted earnings per share to be in the range of $1.54 to $1.72. It projects diluted earnings per share to be in the range of $2.15 to $2.30 on adjusted basis.

The company has spent $26.27 million cash to meet investing activities during the first half as against cash inflow of $31.22 million in the last year period

Cash flow from financing activities was $6.84 million for the first six months as against cash outgo of $98.57 million in the last year period.

Cash and cash equivalents stood at $4.88 million as on Oct. 28, 2016, down 8.92 percent or $0.48 million from $5.36 million on Oct. 23, 2015.

Working capital remains negative
Working capital of Evans Bob Farms, Inc. was negative $29.24 million on Oct. 28, 2016 compared with negative $42.76 million on Oct. 23, 2015. Current ratio was at 0.80 as on Oct. 28, 2016, up from 0.74 on Oct. 23, 2015.

Cash conversion cycle (CCC) has increased to 10 days for the quarter from 3 days for the last year period. Days sales outstanding were almost stable at 12 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 16 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 34 for the same period last year.