Revenue during the quarter dropped 3.22 percent to $364.60 million from $376.74 million in the previous year period. Gross margin for the quarter contracted 117 basis points over the previous year period to 25.99 percent. Total expenses were 91.17 percent of quarterly revenues, up from 89.02 percent for the same period last year. That has resulted in a contraction of 215 basis points in operating margin to 8.83 percent.

Operating income for the quarter was $32.20 million, compared with $41.37 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $38.98 million compared with $50.77 million in the prior year period. At the same time, adjusted EBITDA margin contracted 278 basis points in the quarter to 10.69 percent from 13.48 percent in the last year period.

Todd Renehan, chief executive officer, commented, "Our performance in the first half of fiscal 2017 clearly has fallen short of expectations. We continue to win new business and renew long-term contracts, but these sales have not yet fully ramped to a level that offsets the decline in ad-hoc revenue and the increased costs needed to support these new contracts. At the same time, gross margins continue to be adversely impacted by a lower contribution from ad-hoc sales and a higher proportion of chemical sales, while expenses continue to run at higher levels than a year ago.'

The company has spent $4.21 million cash to meet investing activities during the first six months as against cash outgo of $5.23 million in the last year period.

Cash flow from financing activities was $16.21 million for the first six months as against cash outgo of $28.44 million in the last year period.

Cash and cash equivalents stood at $53.97 million as on Mar. 31, 2017, down 14.38 percent or $9.07 million from $63.04 million on Mar. 31, 2016.

Working capital declines
Wesco Aircraft Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $836.29 million as at Mar. 31, 2017, down 11.40 percent or $107.55 million from $943.84 million on Mar. 31, 2016. Current ratio was at 3.99 as on Mar. 31, 2017, down from 5.54 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 135 days for the quarter from 246 days for the last year period. Days sales outstanding went up to 63 days for the quarter compared with 62 days for the same period last year.

Days inventory outstanding has decreased to 129 days for the quarter compared with 238 days for the previous year period. At the same time, days payable outstanding went up to 58 days for the quarter from 54 for the same period last year.