Q2 2024 Fortrea Holdings Inc Earnings Call Transcript
Key Points
- Fortrea Holdings Inc (FTRE) signed several deals and partnerships with top 20 pharma customers, including a new full-service outsourcing partnership.
- The company exited about 60% of the TSA agreements with its former parent and made good progress on transitioning software, servers, and other technology.
- Fortrea Holdings Inc (FTRE) delevered its balance sheet by paying down around $500 million of spin-related debt.
- The company launched an AI Innovation Studio to develop and deploy AI and ML technologies to drive productivity, quality, and enhance site and patient experiences.
- Fortrea Holdings Inc (FTRE) was recognized with CRO Leadership Awards in four categories: capabilities, expertise, quality, and reliability.
- The book-to-bill ratio for the quarter was just under 1, falling short of the 1.2 target.
- Revenues of $662.4 million declined 8.6% year on year, driven by lower pass-through revenues and lower service fee revenues.
- SG&A expenses were higher year over year by 59.7%, primarily due to incremental one-time costs incurred for exiting the TSA with the former parent.
- Adjusted EBITDA for the quarter decreased 23.2% year over year, with an adjusted EBITDA margin of 8.3% compared to 9.9% in the prior year period.
- The company lowered its full-year 2024 revenue guidance to a range of $2.7 billion to $2.75 billion, reflecting lower recent pass-through trends and lower-than-expected new business awards.
Ladies and gentlemen, thank you for standing by, and welcome to Fortrea second quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would like now to turn the conference over to your speaker today, Hima Inguva, Head of Investor Relations and Corporate Development. Please go ahead.
Good morning, and thank you for joining Fortrea's second quarter 2024 earnings conference call. I am Hima Inguva, Head of Investor Relations and Corporate Development at Fortrea. On the call with me today are our CEO, Tom Pike; CFO, Jill McConnell. The call is being webcasted and the slides accompanying today's presentation have been posted to our Investor Relations page fortrea.com.
During this call, we'll make certain forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These statements are subject to significant risks and uncertainties that could cause actual results to
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