Montrose Environmental Group, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024. The company achieved revenues of $178.7 million for the three months ended September 30, 2024, marking a 6.4% increase from $167.9 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $507.3 million, up 10.7% from $458.5 million year-over-year. The revenue growth was primarily driven by acquisitions, which contributed $15.4 million in Q3 and $63.6 million in the first nine months, alongside strong organic growth in the Assessment, Permitting and Response, and Measurement and Analysis segments.
Despite the revenue increase, the company reported a net loss of $10.6 million for Q3 2024, compared to a loss of $7.5 million in Q3 2023. The net loss attributable to common stockholders for the same quarter was $13.3 million, unchanged on a per-share basis at $(0.39). For the nine-month period, the net loss was $34.1 million, compared to $29.4 million in the prior year. The losses were attributed to increased operational costs, including a $3.4 million rise in cost of revenues driven by higher direct labor costs.
Montrose's total assets increased to $1.007 billion as of September 30, 2024, up from $816.8 million at the end of 2023. This growth was supported by a rise in goodwill, which reached $482.6 million, reflecting the impact of recent acquisitions. The company’s long-term debt also rose significantly to $233.0 million from $149.0 million at the end of 2023, primarily due to increased borrowings under its credit facility.
In terms of strategic developments, Montrose completed several acquisitions in 2024, including Epic Environmental Pty LTD and Engineering & Technical Associates, Inc., with total acquisition costs amounting to approximately $154.9 million. The company also reported transaction costs related to these acquisitions of $6.4 million for the nine months ended September 30, 2024.
Montrose's operational performance showed improvement, with a loss from operations of $(1.2 million) in Q3 2024, an improvement from $(3.4 million) in Q3 2023. Adjusted EBITDA for the three months ended September 30, 2024, was $36.2 million, up from $32.7 million in the prior year, indicating enhanced operational efficiency despite the net losses.
The company continues to focus on expanding its market presence and enhancing its service offerings while managing the challenges posed by rising labor costs and inflation.
About Montrose Environmental Group, Inc.
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