Fortrea Holdings Inc. · NASDAQ:FTRE

Fortrea — Q3 2023 Earnings Presentation

9 slides from Fortrea's earnings presentation, Nov 13, 2023

  1. Slide 1: Q3'2023 Earnings Presentation

    Q3’2023 Earnings Presentation 11.13.2023 Learn more at fortrea.com. ©2023 Fortrea Inc. All rights reserved. Fortrea Q3'2023 Earnings presentation 11.13.2023

  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 Q3'23 – Inaugural Quarter post-spin

    Fortrea’s Q3’23 – Inaugural Quarter post-spin Positive market and customer response to Fortrea Demand for Fortrea’s services is normalizing with improved bookings and pipeline Maintained focus on customers, project delivery and operational excellence Program of actions commenced to exit TSAs1 and im

  4. Slide 4: Q3'23 – Key Financial Highlights

    Q3’23– Key Financial Highlights Third Quarter ($ in millions, except per share data) 2022 2023 % Change Revenue $762.3 $776.4 1.8% Clinical Services $697.2 $711.7 2.1% Enabling Services $65.1 $64.7 (0.6)% Adj. EBITDA 1 $105.2 $70.5 (33.0)% % Adj. EBITDA Margin 1 13.8% 9.1% (34.1)% Net Income $60.6 (

  5. Slide 5: Cash Flow and Liquidity Profile

    Cash Flow and Liquidity Profile Free Cash Flow and Conversion Rate Liquidity Position Cash Flow YTD Debt Leverage September 30 ($ in millions) 2023 ($ in millions) 2023 Operating Cash Flow $155 Debt 3 $1,632 Less: CAPEX $31 Cash 4 $108 Free Cash Flow 1, 8 $124 Net Debt 5 $1,525 EBITDA 8 $150 Net Lev

  6. Slide 6: 2023 Financial Guidance and Outlook

    2023 Financial Guidance and Outlook FY’22 FY’23 Guidance Growth rate ($ in millions) (as of November 13th, 2023) (FY2023 guidance vs. FY2022A) Revenue $3,096 $3,075 - $3,130 (0.7) - 1.1% Adj. EBITDA 1 $405 $255 - $285 (37.0) - (29.6)% 1 Adjusted EBITDA is a non-GAAP financial measure. Please see sli

  7. Slide 7: Net Income to Adjusted EBITDA Reconciliation (Non-GAAP)

    Net Income to Adjusted EBITDA Reconciliation (Non-GAAP) Trailing Twelve Months Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) Ended Sept. 30, 2023 (1) 2023 2022 2023 2022 Adjusted EBITDA: Net income (loss) $66.0 ($13.1) $60.6 $32.6 $159.5 Provision for income taxes

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

    Net Income to Adjusted Net Income Reconciliation (Non-GAAP) Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2023 2022 2023 2022 Adjusted net income (loss): Net income (loss) ($13.1) $60.6 $32.6 $159.5 Foreign exchange (gain) loss 0.9 (4.8) 1.0 (21.1) Amortization 1 1

  9. Slide 9: 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 Over the Next 2-3 Years to Achieve or Exceed Market Growth Rate ✓ Positioned for sustaine

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