Revenue during the quarter dropped 8.58 percent to $39.65 million from $43.37 million in the previous year period. Gross margin for the quarter period stood at positive 11.94 percent as compared to a negative 0.95 percent for the previous year period. Operating margin for the quarter period stood at positive 0.58 percent as compared to a negative 59.71 percent for the previous year period.

Operating income for the quarter was $0.23 million, compared with an operating loss of $25.90 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $5.03 million compared to negative $0.28 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 12.68 percent for the quarter compared to negative 0.64 percent in the last year period.

Chairman, President and Chief Executive Officer Dennis Oates commented "The further expansion in our gross profit margin was key to our sequential profitability improvement, reflecting improved operational productivity and better alignment of input commodity costs and surcharges. "As expected, 2016 continues to be a transition year, as evident in the aerospace market, and is evolving with modest improvement in market demand from the recent low point in the fourth quarter of 2015. “Despite current softness in Aerospace as we finish 2016, we remain optimistic about the overall health of Aerospace, as well as our other end markets, given positive industry trends. We remain focused on capturing opportunities while continuing to advance the transformation of Universal Stainless through our move to higher value, higher margin premium alloys."

The company has spent $1.55 million cash to meet investing activities during the nine month period as against cash outgo of $8.40 million in the last year period.

The company has spent $6.69 million cash to carry out financing activities during the nine month period as against cash outgo of $3.89 million in the last year period.

Cash and cash equivalents stood at $0.38 million as on Sep. 30, 2016, down 7.14 percent or $0.03 million from $0.41 million on Sep. 30, 2015.

Working capital declines
Universal Stainless & Alloy Products, Inc. has witnessed a decline in the working capital over the last year. It stood at $82.26 million as at Sep. 30, 2016, down 16.53 percent or $16.29 million from $98.55 million on Sep. 30, 2015. Current ratio was at 3.99 as on Sep. 30, 2016, down from 5.60 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 123 days for the quarter from 219 days for the last year period. Days sales outstanding went up to 60 days for the quarter compared with 57 days for the same period last year.

Days inventory outstanding has decreased to 113 days for the quarter compared with 197 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 34 for the same period last year.