Revenue during the quarter went up marginally by 0.56 percent to $232.90 million from $231.60 million in the previous year period. Gross margin for the quarter expanded 23 basis points over the previous year period to 21.12 percent. Total expenses were 88.45 percent of quarterly revenues, down from 89.46 percent for the same period last year. This has led to an improvement of 101 basis points in operating margin to 11.55 percent.

Operating income for the quarter was $26.90 million, compared with $24.40 million in the previous year period.

However, the adjusted operating income for the quarter stood at $28.10 million compared to $27.30 million in the prior year period. At the same time, adjusted operating margin improved 28 basis points in the quarter to 12.07 percent from 11.79 percent in the last year period.

"While global economic growth remains subdued, our teams continue to serve our customers and manage costs to deliver the consistent bottom line results our shareholders have come to expect," said John O’Donnell, chief executive officer. "In addition, we are completing key initiatives that will drive significant long-term value. Our strong quarterly cash flows have helped fund high-returning organic initiatives like the addition of new transportation filtration capacity in the U.S., increased cash returns to shareholders, and a strong balance sheet to enable future strategic investments."

The company has spent $49.50 million cash to meet investing activities during the nine month period as against cash outgo of $143.50 million in the last year period.

The company has spent $44.90 million cash to carry out financing activities during the nine month period as against cash outgo of $2.40 million in the last year period.

Cash and cash equivalents stood at $7.30 million as on Sep. 30, 2016, up 32.73 percent or $1.80 million from $5.50 million on Sep. 30, 2015.

Working capital declines
Neenah Paper, Inc has witnessed a decline in the working capital over the last year. It stood at $132.80 million as at Sep. 30, 2016, down 24.46 percent or $43 million from $175.80 million on Sep. 30, 2015. Current ratio was at 2.20 as on Sep. 30, 2016, down from 2.27 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 42 days for the quarter compared with 45 days for the same period last year.

Days inventory outstanding has decreased to 29 days for the quarter compared with 57 days for the previous year period. At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.