Revenue during the quarter surged 38.76 percent to $294.30 million from $212.10 million in the previous year period. Gross margin for the quarter contracted 504 basis points over the previous year period to 30.89 percent. Total expenses were 91.03 percent of quarterly revenues, up from 87.93 percent for the same period last year. That has resulted in a contraction of 310 basis points in operating margin to 8.97 percent.

Operating income for the quarter was $26.40 million, compared with $25.60 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $39.20 million compared with $32.80 million in the prior year period. At the same time, adjusted EBITDA margin contracted 214 basis points in the quarter to 13.32 percent from 15.46 percent in the last year period.

Commenting on the first quarter results, Patrick S. Williams, president and chief executive officer, said, "We have had a really good start to 2017. The momentum we generated through the second half of 2016 has continued and we have delivered above our expectations, despite some phasing of Octane Additives deliveries into the second quarter. We have delivered an adjusted EPS of $1.00, which is 8 percent ahead of the same quarter last year." "As we anticipated, Oilfield Services continued its profitable recovery, with both production and completion segments performing well. Margins have remained stable, despite the increases in some raw materials. Fuel Specialties grew steadily and we are pleased to see a return to volume growth in the Americas, with margins returning to more normalized levels as we had previously indicated."

The company has spent $6.70 million cash to meet investing activities during the quarter as against cash inflow of $1.80 million in the last year period.

The company has spent $30.50 million cash to carry out financing activities during the quarter as against cash outgo of $32.40 million in the last year period.

Cash and cash equivalents stood at $45.40 million as on Mar. 31, 2017, down 59.96 percent or $68 million from $113.40 million on Mar. 31, 2016.

Working capital declines
Innospec Inc. has witnessed a decline in the working capital over the last year. It stood at $254.40 million as at Mar. 31, 2017, down 10.92 percent or $31.20 million from $285.60 million on Mar. 31, 2016. Current ratio was at 2.15 as on Mar. 31, 2017, down from 2.94 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 65 days for the quarter from 131 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 61 days for the same period last year.

Days inventory outstanding has decreased to 44 days for the quarter compared with 105 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 34 for the same period last year.