Fri, May 24, 11:02 AM (63 days ago)
Fortrea Holdings Inc. reported its financial results for the quarter ended March 31, 2024. Key highlights include: - Revenue: $662.1 million, a 4.6% decrease from the same period in 2023, primarily due to a 4.7% decline in organic revenues offset by a 0.1% favorable foreign currency translation. - Direct Costs: Increased by 2.3% to $554.2 million, representing 83.7% of revenues, up from 78.0% in Q1 2023, mainly due to higher pass-through costs. - SG&A Expenses: Increased by 2.8% to $120.1 million, driven by higher personnel and transition service agreement costs. - Operating Loss: $37.4 million, compared to an operating income of $14.1 million in Q1 2023. - Net Loss: $101.0 million, compared to a net income of $12.5 million in Q1 2023, influenced by increased interest expenses and restructuring charges. - Cash Flow: Used $25.6 million in operating activities, $9.2 million in investing activities, and generated $21.3 million from financing activities. - Balance Sheet: Cash and cash equivalents stood at $92.8 million, with total assets of $4.24 billion and total liabilities of $2.65 billion. The company is actively addressing material weaknesses in internal controls identified during the quarter. Fortrea also announced the sale of its Enabling Services segment, expected to close in Q2 2024, for $345 million.