Fortrea Holdings Inc. · NASDAQ:FTRE

Fortrea — Q4 2023 Earnings Presentation

9 slides from Fortrea's earnings presentation, Mar 11, 2024

  1. Slide 1: Q4'2023 Earnings Presentation

    Q4’2023 Earnings Presentation 03.11.2024 Learn more at fortrea.com. ©2024 Fortrea Inc. All rights reserved. Fortrea Q4'2023 Earnings presentation 03.11.2024

  2. Slide 2: Forward Looking Statements & Non-GAAP Financial Measures

    FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Forward-Looking Statements Disclosure. Certain information in this presentation contains “forward-looking” statements. You should not place undue reliance on these statements. Forward-looking statements include information concerning our possi

  3. Slide 3: Fortrea's Q4'23 Highlights

    Fortrea’s Q4’23 Highlights 1.3x Book-to-Bill and attractive mix of work Solid demand environment Continued momentum executing on our growth and differentiation strategies Sustained focus on cost structure and margin expansion: • ~40% of TSAs1 exited at year-end 2023 • SG&A reduction roadmap defined

  4. Slide 4: Fortrea's Program for Change: Significant Opportunity to Create Shareholder Value

    Fortrea’s Program for Change: Significant Opportunity to Create Shareholder Value Disciplined Strategy to Improve Margins & Optimize Drive Long-term Growth & Margins Leverage Competitive Advantages the Business in '24 to Lay Foundation for Growth in ‘23 ✓ Positioned for sustained long-term ✓ Continu

  5. Slide 5: Q4'23 Key Financial Highlights

    Q4’23– Key Financial Highlights Fourth Quarter ($ in millions, except per share data) 2022 2023 % Change Revenue $761.7 $775.4 1.8% Clinical Services $697.8 $709.7 1.7% Enabling Services $63.9 $65.7 2.8% Adj. EBITDA 1 $109.8 $67.2 (38.8)% % Adj. EBITDA Margin 1 14.4% 8.7% Net Income $33.4 $(36.0) (2

  6. Slide 6: Cash Flow and Liquidity Profile

    Cash Flow and Liquidity Profile Free Cash Flow and Conversion Rate Liquidity Position Cash Flow FY Debt Leverage December 31 ($ in millions) 2023 ($ in millions) 2023 Operating Cash Flow $167.4 Debt 3 $1,624.7 Less: CAPEX $40.3 Cash 4 $108.6 Free Cash Flow 1 $127.1 EBITDA 8 $167.3 Net Debt 5 $1,516.

  7. Slide 7: 2024 Financial Guidance and Outlook

    2024 Financial Guidance and Outlook FY’23 Actuals FY’24 Guidance 1 Growth rate ($ in millions) (as of March 11th, 2024) (FY2024 guidance vs. FY2023A) Revenue $3,109 $3,140-$3,205 1.0%-3.1% Adj. EBITDA 2 $267.3 $280-$320 4.8%-19.7% 1 Full-year 2024 guidance measures (other than revenue) are provided

  8. Slide 8: Net Income to Adjusted EBITDA Reconciliation (Non-GAAP)

    Net Income to Adjusted EBITDA Reconciliation (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions) 2023 2022 2023 2022 Adjusted EBITDA: Net income (loss) $(36.0) $33.4 $(3.4) $192.9 Provision for income taxes (5.0) 8.3 4.5 44.1 Interest expense, net 34.5 0.2 69.

  9. Slide 9: Net Income to Adjusted Net Income Reconciliation (Non-GAAP)

    Net Income to Adjusted Net Income Reconciliation (Non-GAAP) Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions) 2023 2022 2023 2022 Adjusted net income (loss): Net income (loss) $(36.0) $33.4 $(3.4) $192.9 Foreign exchange (gain) loss (1.9) 22.0 (0.9) 0.9 Amortization 1

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