everyone be herein to would the subject condensed joining which immaterial. financial to the combined XX, Thank thank ended of financial quarter in today. you, The XXXX. is expect statements interim and adjustments, Accordingly, company to consolidated Tom, March we for the its further process completing unaudited first for you us may be information included and
Before progress to more things to take structure. the We're transformation covering We're the also quarter, I reduce doing reinforce making us to improve the efficiently of success to customers. the on program detailed want for to our for company over financial position medium to some we're and our moment capital our to to the term. faster elements of longer enable expenses projects our and operating taking action deliver a
fair so forward. as my performance are on deliver take later. this want detail All you the of will I financial we initiatives order. intended in position is us remarks, provide these amount in I'll more through a move There to we to cover things to these
quarter; finally, and the of and capital expectations financial margin taken reporting and progress towards XXXX; including First, some changes actions our for recent a Fortrea, we to bolster on have closure; divestiture the our proposed second, our operations to expansion fourth, XXXX. financial our this summary results for outlook brief for of third, progress structure; transformation, revised continuing
new Tom's our late we awards and prior during As you've seen the net first indicated the have remarks, the in the in and in won year primarily mix to press the reflect relative lower results year. last quarter June heard late of release to in spin -- previously business softness
the X spin it book-to-bill particular goal our X.XXx, of a we targeting. slightly is been this for fell the quarter, While X.Xx solid trailing the since short have months
quarter in-house, We and we we the achieved rescheduled some decided being for to late X.Xx have project expect who to customer you take would in quarter. one outside disclosed of the and project a the in risk quarter one a earlier
Now for results. this quarter's
due expected the our the during to with in This we it came generally stated shared. be performance line sales expectations lower the and had the previously, quarter, year was to as spin [indiscernible] of
you recall, signal appropriately we more which have growth sequentially, grown will ending future $X.X post that measure backlog, a calculated X% Our will demonstrate since differently at the approximately billion. spin and has X.X% to quarter spin the
and our results. The sales, infrastructure the resources weigh to lower full-service continued elevated have on services the costs, continued associated with agreement transition headwinds spin year of clinical
working the TSA and expected to We costs, the exiting making are mitigate progress on we and other headwinds. elevated
the as and are we our presentation, which later our focusing my later we and the the achieve of I of will you quarter. that operations, for endpoint in remarks, In actions provide update target businesses continuing results on intended will are an impact on this access are taking accompanying divestiture patient performance. to see excludes the key
of were The were wins reduced offset to revenues. spin, duration. which revenues by service shift, lower new the with more revenues of than lower quantity along Services longer X.X% revenues, including prior to fee declined $XXX.X studies This Clinical pass-through year-on-year. the business was higher million due mix fee driven by the service moving to
more provide base. our me cost detail Let on
for be to as XXXX direct with SG&A revenue We purposes. over comparison have costs more post quarter first believe the expenses will previously, you TSA exit reducing recast of set quarter have shared margins time. SG&A by As allow first we to improve XXXX percent we peer opportunity and to significant and a see full consistent our this our costs
primarily and by compensation basis, stock removal lower spin higher GAAP additional SG&A allocations, increased direct quarter awards. and parent pass-through a year-over-year, due offset costs the onetime year-over-year well due costs by cost the as corporate On former awards. the as partially was in X.X% quarter costs of operations, primarily costs TSA stock the in stand-alone of to compensation to X.X%
primarily company from in direct charges. expenses, costs information certain $XX.X costs million to SG&A nonclinic facility related The reclassified to technology
as will around you a XX%. quarter, revenue SG&A first the For of at percent see
costs. contains of it $XX million However, onetime
significant You margin can expansion over costs, see costs time. reducing there that to onetime even excluding is for the SG&A opportunity
for the $XX.X expense quarter interest Net was million.
our costs, allowance in effective given pretax combined for operations to loss tax for in forecasted onetime and effect continuing a XXXX, to valuation was primarily Turning mix. due the rate. of the large tax rate The change a earnings our quarter negative X.X%, the
interest quarter, million allowance forecasted we During related to on disallowed first tax $X.X to due have deferred in asset tax our expense primarily recognized continuing the operations a expense. valuation of
We have expect time. plans disallowed interest expense over the reduce could we that of impact
The to make of certain misstatements enhancements year. our financial would given operations, businesses access the control of have identified. of impact XXXX. we the we not all patient adjustments as and if made reporting items, of considered of to our line these for material part material any in years historical overall and discontinued As disentangle the endpoint were of is aware work adjustments framework aggregate The quarter adjustments to became which in first be
light will we a period. filing In this, of these within issue be first footnote into quarter extended in our plan Form to XX-Q, the which adjustments recorded
findings, a of result decreased our adjusted period. XX.X% As year EBITDA continued the million $XX.X these environment. the control adjusted EBITDA financial in continuing of year-over-year operations of to we $XX.X are million quarter prior bolster for to compared
in costs program stand-alone in by we SG&A lower to EBITDA Adjusted period. during the from higher impacted X.X% mix support These compared of offset duration the X% to from the XXXX. partially the by pre-spin higher spin quarter the negatively revenues Adjusted the quarter quarter the awards benefit in was fee pass-through EBITDA longer third year, for margin was initiated restructuring prior margin post and lower operations. year first service the to studies, were revenues
adjusted first compared period. diluted for million the loss In year Adjusted and quarter $X.XX XXXX, loss of both in adjusted to year period. of income for XXX% $X.XX $XX.X the net prior net net adjusted in of compared the to prior of million quarter was decreased the net basic income share $X.X
revenues accounted of slightly customers revenues. Turning quarter for and accounted to of another than customer revenues. for customer of our half XXXX concentration. represented In top XX our post customer more our One first divestiture, continuing operations XX% XX%
quarter, on relate in negative cash not these we comments not segregated million cash year. activities my flows, prior $XX.X Fortrea cash million in from $X.X as generated compared negative first from flows discontinued reported operating the in we In flow to total the operations. have to In
million interest earned Free the negative bonus activities were items, negative resets, operating of flow drivers as of expense to parent. was primary from $XX.X tax including $XX.X TSA The part exits, cash annual spend compared negative other in XXXX. flow cash million our and support to former a
the reduction used services have initial to lower Due for unearned and cash revenue contracting implementing, changes for decreased net we improvement Cash deferred expenses. operations and accrued balances. in an unbilled income unbilled flows improvements are we in used to seeing due process and been offset in by and
continuing sales than outstanding was Net $XXX.X XX million accounts of XXXX, December receivable X million XX, $XXX and of December of unbilled March as operations XXXX. services XX, Days XX, for compared as from lower as were days XX, days operations March continuing XXXX. to XXXX,
is in The collections reduction to year-end improvements an prior increase due primarily the versus and in cash advances.
portfolio. continue profile in make performance while our over there a is our those to over processes to work to services contracts we reflected order Because cash DSO further We our improvement changes and through contracting historic these enable years, in time. lag in changes to our provide seeing the multiple
our towards These operations. The for will our patient XX-Q. be touch on details which in will included now endpoint of of results I discontinued Now businesses and being are divestiture the accounted previously businesses. announced access as briefly Form progress
the progress temporary the continue recently to credit structure. worked create our planning, amend to and covenants. to We our make to adjustments made We financial towards quarter. with in our second our our capital we lenders adjustments Consistent transaction closing with agreement X internal
Xx, maximum cases, to new reverting the Xx are and was XXXX as total of leverage In to over time XXXX. down from quarter increased prior X.Xx. Our in ratio and of both was ratio of minimum until coverage to the X.Xx the interest third from reduced quarter second levels step effective our ratios
posted in for operations connection trailing file Form XX-Q. website include on the adjusted continuing for this used presentation to measure our we with EBITDA update to the intend call leverage We XX-month calculations our after
EBITDA additional Recall add-backs have pro public that our under results, beyond our forma savings spin-related initiatives. cost adjusted the company credit from we benefits costs, costs including agreement, and
the will future. remain first that for of foreseeable XXXX expect quarter for we compliant We the fully and
on purchase use executed have agreement recurring term to a interest expense. also and ongoing higher We down a receivables sell basis reduce to portion a debt we'll to proceeds rate receivables pay loan of our the our
would expect We interest approximately this expense net reduce arrangement by $X annual million. our effective
our that facility, before fully the sale arrangement. quarter. closure the to utilize initial of proposed terminated with facility this our Note in the end existing we second this with endpoint intend Upon access of pay loan and proceeds net portion the businesses We factoring the we will connection sale will occurring entering improve of ongoing apply interest a which covenant XXX% from reduce of of the term the divestiture, debt, ratios to patient down expense. and our also
are timely unchanged, repayment. Our on and infrastructure growth priorities agreement, for the capital investments targeted investments organic to drive allocation of focusing exit the services debt transition
to net target continues over leverage the term. Xx to Our be X.Xx for ratio medium
plans and changes the the in that an majority on execution of XXXX. Fortrea. will have robust health financial remaining is update provide parent of longer-term around former we with multifaceted end thoughtful balance performance to we exited as roughly requires place our of TSAs our I program. We've the program of with transformation improving results now making Now TSAs our and It increase half a the exit to
our we remind to me deliver commenced with peers. that more you and have Let about in transformation initiatives are other results propel line
First, productivity we targeted and programs of reduce to areas organization. to the costs, have flatten selectively lower of excess pockets
XXXX. supporting begin we exit benefits expect our more others this to for year to year as and is with the our In Also, in peers next benchmarked the to for we areas, see one began first discussed, quarter building XXXX over and planned time. These SG&A second one the benefits emerge some key show TSA. fully against organizations. intended are are have third of as The programs efficient previously planned later we
item, SG&A peers. from critical is our can As for to competitive us line you our see recasted expense be this with
some addition, started key drive we identified in to and operating quarter, In margin this setting improvement. areas targets
business brought who volume for awards. addition more we of our have for awards cost in sales laser-focused XX mix and backlog and granted our individuals new RFPs spot the have have in outside improvements, Fortrea on to the us than organization In structure everyone of to in remain pursue. literally qualified right building We sales with
we changes growth competitive expect Most where of through from improvement as margin XXXX, streamlined global require revenue infrastructure. be realize us we leverage. post-TSA cost SG&A improve and footprint will operational more in Putting revenue our will these to start to to arising the benefit productivity well as operating our
We faster and believe this customers. efficiently transformation reduce to will for enable projects our our and to expenses deliver us more
trailing our drive of XXXX margins for XXXX XX%. with target to our continue year to continue at adjusted to least consistent ability approximately for exiting at current remainder and metrics at our TSAs full the XXXX plan, least of book-to-bill remaining Assuming EBITDA we X.Xx
revenues The and ratio. debt-to-EBITDA margins will our improved also enhance
Finally, our guidance I updated continuing will cover for operations.
range study biotech For recent adjustment full $X.XXX revenues lower the now $X.XXX This XXXX, billion and lower-than-anticipated start-up quarter billion. book-to-bill our certain trends. target therapeutic to to programs, in the pass-through year to be we lower and first mix of reflects due
we broadly As targeted of flat have modestly a second to versus at expect be X%. headwinds, now these to the positive revenue around is half although result XXXX, overall growth
adjusted to is the updated million of $XXX Our EBITDA $XXX target range in million.
reduce revenue a actions We typical drop-through number of reductions, as mentioned taken earlier. to have of I the
for on in Note revenue million to applies. approximately in the divested assuming for adjusted still businesses former EBITDA million that $XX year and our $XXX be recommendation XXXX full
a Fortrea's efficiency innovative of clinical leadership wealth improve experience delivering and team solutions to and is brings development.
invited resonating to where our being weren't previously. with Our conversations available we customers offerings that clinical are are services
in lies our on to to initiatives As poised opportunity margin leader the and that industry the a pure-play CRO, we in front are capture focused of will us. become transformation a be expansion implementing substantial
back remainder his remarks. it of Tom I'll the for Now turn to
