Revenue during the quarter grew 13.07 percent to $44.75 million from $39.58 million in the previous year period. Gross margin for the quarter expanded 164 basis points over the previous year period to 25.14 percent. Total expenses were 90.39 percent of quarterly revenues, down from 94.03 percent for the same period last year. This has led to an improvement of 364 basis points in operating margin to 9.61 percent.

Operating income for the quarter was $4.30 million, compared with $2.36 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $5.91 million compared with $4.31 million in the prior year period. At the same time, adjusted EBITDA margin improved 233 basis points in the quarter to 13.22 percent from 10.88 percent in the last year period.

“We delivered strong financial results in the third quarter and advanced new product launches and programs according to plan, that support our near- and long-term outlook,” said John Weinhardt, chief executive officer. “As expected, the investments we made to scale production and enhance labor productivity earlier in the year benefited our operations during the quarter and positively impacted our margins, a trend we anticipate continuing.”

Unique Fabricating projects revenue to be in the range of $169 million to $172 million for financial year 2016. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.88 to $0.91 on adjusted basis.

The company has spent $23.25 million cash to meet investing activities during the nine month period as against cash outgo of $14.76 million in the last year period.

Cash flow from financing activities was $18.58 million for the nine month period, up 45.42 percent or $5.80 million, when compared with the last year period.

Cash and cash equivalents stood at $1.51 million as on Oct. 02, 2016, up 109.70 percent or $0.79 million from $0.72 million on Oct. 04, 2015.

Working capital increases sharply
Unique Fabricating, Inc has recorded an increase in the working capital over the last year. It stood at $29.30 million as at Oct. 02, 2016, up 31.24 percent or $6.98 million from $22.33 million on Oct. 04, 2015. Current ratio was at 2.31 as on Oct. 02, 2016, up from 2.10 on Oct. 04, 2015.

Cash conversion cycle (CCC) has decreased to 37 days for the quarter from 58 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 57 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went down to 38 days for the quarter from 42 for the same period last year.