INNOVATE Corp. reported significant financial changes in its quarterly filing for the three and nine months ended September 30, 2024. Total revenue for the third quarter was $242.2 million, a decrease of $133.1 million from $375.3 million in the same period of 2023. For the nine months, revenue fell to $870.5 million from $1,062.0 million year-over-year. The decline was primarily driven by the Infrastructure segment, which saw a revenue drop to $232.8 million from $369.3 million, attributed to project timing and cost estimates. However, the Life Sciences segment experienced growth, with revenue increasing to $3.0 million from $0.6 million, and the Spectrum segment also saw a slight increase to $6.4 million from $5.4 million.
Gross profit for the third quarter was $48.2 million, down from $58.7 million in 2023, while for the nine months, gross profit rose to $162.4 million from $154.9 million. Income from operations for the third quarter decreased to $5.9 million from $10.7 million, but for the nine months, it increased significantly to $37.5 million from $12.5 million. The net loss for the third quarter widened to $(16.2) million from $(8.6) million, while the nine-month net loss improved to $(22.4) million from $(28.3) million.
As of September 30, 2024, total assets decreased to $897.2 million from $1,043.6 million at the end of 2023. Total liabilities also decreased to $1,022.5 million from $1,179.9 million. The company reported an accumulated deficit of $505.3 million, worsening from $487.3 million at the end of 2023. A reverse stock split executed on August 8, 2024, reduced outstanding shares from 130.5 million to 13.2 million to comply with NYSE listing requirements.
Strategically, INNOVATE is exploring various initiatives to improve its financial condition, including refinancing debt and pursuing asset sales. The company completed a $19.0 million rights offering in April 2024, raising $35.0 million in total gross proceeds. Additionally, INNOVATE's management expressed substantial doubt about the company's ability to continue as a going concern due to upcoming debt maturities and cross-default provisions in its Senior Secured Notes.
Overall, while INNOVATE Corp. faced revenue declines and increased net losses in the third quarter, it showed improvements in operational income and strategic financial maneuvers aimed at stabilizing its financial position.
About INNOVATE Corp.
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