Myers Industries (MYE) has reported 24.32 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $0.41 million, or $0.01 a share in the quarter, compared with $0.33 million, or $0.01 a share for the same period last year. On an adjusted basis, earnings per share were at $0.04 for the quarter compared with $0.09 in the same period last year.

Revenue during the quarter dropped 6.34 percent to $132.68 million from $141.66 million in the previous year period. Gross margin for the quarter contracted 235 basis points over the previous year period to 27.07 percent. Total expenses were 97.75 percent of quarterly revenues, down from 98.18 percent for the same period last year. This has led to an improvement of 43 basis points in operating margin to 2.25 percent.

Operating income for the quarter was $2.99 million, compared with $2.58 million in the previous year period.

However, the adjusted operating income for the quarter stood at $3.88 million compared to $5.90 million in the prior year period. At the same time, adjusted operating margin contracted 123 basis points in the quarter to 2.93 percent from 4.16 percent in the last year period.

President and Chief Executive Officer Dave Banyard commented, "Third quarter results were in line with our expectations as customers in both our Material Handling and Distribution segments continue to operate in a reduced capital spending environment. Despite lower sales, we delivered a strong quarter of free cash flow due primarily to process improvements in working capital management and a more disciplined approach to capital spending."

The company has spent $15.33 million cash to meet investing activities during the nine month period as against cash inflow of $51.68 million in the last year period It has incurred net capital expenditure of $11.30 million on net basis during the nine month period, down 35.54 percent or $6.23 million from year ago period.

The company has spent $5.91 million cash to carry out financing activities during the nine month period as against cash outgo of $46.53 million in the last year period.

Cash and cash equivalents stood at $5.54 million as on Sep. 30, 2016, up 5.69 percent or $0.30 million from $5.24 million on Sep. 30, 2015.

Working capital decreases marginally
Myers Industries has witnessed a decline in the working capital over the last year. It stood at $65.52 million as at Sep. 30, 2016, down 4.76 percent or $3.28 million from $68.79 million on Sep. 30, 2015. Current ratio was at 1.82 as on Sep. 30, 2016, up from 1.71 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 60 days for the last year period. Days sales outstanding were almost stable at 61 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 23 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went down to 57 days for the quarter from 59 for the same period last year.