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Fortrea Holdings Inc. (FTRE-0.72%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $674.9 million from $713.8 million in the same quarter the previous year. The decrease is attributed to a reduction in organic revenues and lower service revenues.
Direct costs for the quarter were $526.6 million, representing 78% of revenues, compared to 79% in the same quarter of the previous year. This decrease in cost ratio is due to lower headcount and reduced pass-through costs.
The company reported a gross profit of $148.3 million for the quarter, compared to $149.9 million in the previous year, with the decline attributed to decreased revenues.
Selling, general, and administrative expenses increased to $136.3 million from $106.8 million, primarily due to higher professional fees and costs associated with the transition to a standalone company.
Net loss for the quarter was $27.9 million, compared to a net income of $14.0 million in the previous year. The loss is attributed to increased interest expenses and restructuring charges.
Cash provided by operating activities was $245.7 million, while cash provided by investing activities was $248.1 million, primarily from the sale of the Enabling Services Segment.
Fortrea had a working capital of $936.9 million as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a receivables securitization program and a senior secured revolving credit facility.
Fortrea identified material weaknesses in its internal controls over financial reporting due to insufficient resources, which the company is actively working to remediate.
The company continues to focus on its core Clinical Services segment, offering phase I-IV clinical trials and comprehensive clinical development capabilities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fortrea Holdings Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.