Revenue during the quarter went down marginally by 2.44 percent to $197.58 million from $202.52 million in the previous year period. Gross margin for the quarter contracted 235 basis points over the previous year period to 21.20 percent. Total expenses were 93.25 percent of quarterly revenues, up from 90.33 percent for the same period last year. That has resulted in a contraction of 292 basis points in operating margin to 6.75 percent.

Operating income for the quarter was $13.34 million, compared with $19.59 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $24.72 million compared with $30.94 million in the prior year period. At the same time, adjusted EBITDA margin contracted 277 basis points in the quarter to 12.51 percent from 15.28 percent in the last year period.

“Third quarter results were seasonably lower, consistent with the expectations we provided last quarter, as challenging market conditions persisted across our various sales channels and end-markets. Despite continued softening in the foodservice channel, we were able to deliver our 14th consecutive quarter of foodservice unit volume growth even with a more pronounced decline in restaurant traffic during the quarter,” said William A. Foley, chairman and chief executive officer of Libbey Inc. “We are continuing to implement proactive improvements to our business in order to position the Company for long-term growth and performance. We are also beginning to see positive impacts from recent new product and sales initiatives.”

For fiscal year 2016, Libbey forecasts net income to grow at 2 percent.

The company has spent $23.52 million cash to meet investing activities during the nine month period as against cash outgo of $41.48 million in the last year period.

The company has spent $26.34 million cash to carry out financing activities during the nine month period as against cash outgo of $18.70 million in the last year period.

Cash and cash equivalents stood at $42.67 million as on Sep. 30, 2016, up 41.76 percent or $12.57 million from $30.10 million on Sep. 30, 2015.

Working capital increases marginally
Libbey Inc has recorded an increase in the working capital over the last year. It stood at $193.44 million as at Sep. 30, 2016, up 2.58 percent or $4.86 million from $188.58 million on Sep. 30, 2015. Current ratio was at 2.23 as on Sep. 30, 2016, up from 2.13 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 121 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 44 days for the same period last year.

Days inventory outstanding has decreased to 57 days for the quarter compared with 117 days for the previous year period. At the same time, days payable outstanding was almost stable at 39 days for the quarter, when compared with the previous year period.