Revenue during the quarter dropped 18.83 percent to $13.56 million from $16.71 million in the previous year period. Gross margin for the quarter expanded 49 basis points over the previous year period to 19.57 percent. Operating margin for the quarter stood at negative 2.64 percent as compared to a positive 3.81 percent for the previous year period.

Operating loss for the quarter was $0.36 million, compared with an operating income of $0.64 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $0.19 million compared with $0.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 310 basis points in the quarter to 1.40 percent from 4.51 percent in the last year period.

"Included in the net loss from continuing operations of $2.5 million in the third quarter, were $1.2 million of non-recurring charges. The one-time charges include a $0.5 million loss on asset write-off, $0.5 million financing charges related to the early termination of the line of credit, $0.1 million in restructuring charges, and $0.1 million in foreign exchange loss" stated Tom Miller, Interim Chief Executive Officer. Miller continued, "For Q4 we will remain focused on continuing to drive sales and realizing additional cost efficiencies across the enterprise."

Working capital remains negative
Working capital of Quest Solution, Inc. was negative $19.40 million on Sep. 30, 2016 compared with negative $8.94 million on Sep. 30, 2015. Current ratio was at 0.53 as on Sep. 30, 2016, down from 0.63 on Sep. 30, 2015.

Days sales outstanding went down to 60 days for the quarter compared with 63 days for the same period last year.

Days inventory outstanding was almost stable at 3 days for the quarter, when compared with the last year period.