Revenue during the quarter grew 13.50 percent to $209.30 million from $184.40 million in the previous year period. Gross margin for the quarter expanded 173 basis points over the previous year period to 30.15 percent. Total expenses were 85.28 percent of quarterly revenues, up from 82.75 percent for the same period last year. That has resulted in a contraction of 253 basis points in operating margin to 14.72 percent.

Operating income for the quarter was $30.80 million, compared with $31.80 million in the previous year period.

However, the adjusted operating income from Continuing Operations for the quarter stood at $35.10 million compared to $34.20 million in the prior year period. At the same time, adjusted operating margin contracted 178 basis points in the quarter to 16.77 percent from 18.55 percent in the last year period.

Frederic Villoutreix, chairman of the Board and chief executive officer, commented, "Third quarter results were in line with our expectations, and we are pleased to enter the fourth quarter generally on track to achieve the annual guidance we issued at the outset of the year. Year-to-date, Engineered Papers has performed better than expected, Argotec has slightly exceeded the projected EPS accretion, and the negative currency comparisons we anticipated have been less impactful than we expected. Offsetting those positive factors, however, are the underperformance of our Chinese JVs, softer sales from DelStar, and higher taxes. As we continue to implement our strategic transformation through diversification-related investments, we also announced a 5% increase to our quarterly dividend, which we view as an important driver of shareholder value and a critical component of our balanced capital allocation strategy."

The company has spent $15 million cash to meet investing activities during the nine month period as against cash outgo of $12.20 million in the last year period.

The company has spent $169 million cash to carry out financing activities during the nine month period as against cash outgo of $69.50 million in the last year period.

Cash and cash equivalents stood at $89.50 million as on Sep. 30, 2016, down 66.67 percent or $179 million from $268.50 million on Sep. 30, 2015.

Working capital drops significantly
Schweitzer Mauduit International, Inc. has witnessed a decline in the working capital over the last year. It stood at $232.70 million as at Sep. 30, 2016, down 40.16 percent or $156.20 million from $388.90 million on Sep. 30, 2015. Current ratio was at 2.78 as on Sep. 30, 2016, down from 4.19 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 102 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 35 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.