everyone us Tom, joining you, for thank and you Thank to today.
our year. and of into former acknowledge the the our our services get XX% I us noncore our million receivables we materially ] of quarter, past facility value Exiting completing paying [ sheet improving to long-term of sheet. services These on for of around leverage divestiture the closing done work in are to our important businesses create blocks over building of divestiture Before quarter, our all executing by balance our stakeholders.
Upon TSA the the want with balance enabling enabling significantly some we of have around parent, already details the debt. securitization the and services reduced we down the $XXX for spin-related
ample our We and structure our covenants. have improved headroom our have between and capital ratios debt current
through discuss this and adjusted margins will that for including financial improved will continued a remainder laid half with outlook progress I adjusted will the for the in transformation improved on our We XXXX. of provided. for that right drive components share walk EBITDA we XXXX. will core bridge our we for XXXX, finally, margins you EBITDA quarter have Then start of to expectations driving using the And the margin are the I of second components the quarter. are EBITDA enhance we commercial that believe second for margins business providing will transformation.
I breakdown the our and foundation the detailed of performance profit I
As a by compared note fee was The on relate the the divestiture out, declined largely the stage previously biomarker Services lower I and of to in X.X% have called life This lower historical cycle. studies remarks service highs revenues to by given my lower are decline following Enabling pass-through their otherwise. is our revenues. now reminder, continuing of driven which pass-through pass-throughs year-on-year. operations of Revenues million $XXX.X unless businesses, all we normalizing, driven project
lower company a mid-single-digit period, in particularly new of primarily the oncology. in and our awards did impacted the Our see in incremental GAAP second facility onetime line reclassified to to to $XX.X longer with that year-over-year, with business stage in due charges. certain expenses costs information direct direct studies, a year service for XX.X%, The service our the costs. towards lower related SG&A X.X% basis, the quarter shift in primarily expectations.
On we [ technology due pre-spin primarily pass-through later quarter in quarter revenue comparison along primarily from costs costs with SG&A decreased was growth the to TSA million in duration to parent year-over-year combination and Note the nonclinic incurred fee sequential mix be continues prior costs by factors, former higher by fees ]. exiting period,
as a will of you quarter, at second basis revenue the see For XX.X%. GAAP SG&A a on percent
contains it million our from approximately the $XX However, continued costs former separation onetime related to of parent.
as we interest margins transition quarters, percent Excluding potential can by lower once to revenue, Net was first expand TSA million. significant over was SG&A reducing underlying to and percentage quarter spin-related the onetime expense time of SG&A services $XX.X exit costs to the relatively for as flat in a replacement quarter.
We infrastructure. the expense both see of cost fully revenue a
million being issuance in this the a the the debt interest portion prepayment actual the write-off of However, comprised $XX based of and expense debt of approximately discount on is the quarter. of remainder
the second approximately the to interest securitization annual quarter expense are in at XXXX. outstanding the interest fees targeting related and are due When rates the As the cash of quarter usage targeted forward total the of estimated to we annualized first expense lower noted costs paydown. securitization end XX% be annualized using substantially quarterly to looking XXXX, the to at interest of previously, going compared and decline end at and debt debt cost effect
The quarter tax continuing onetime valuation was to forecasted XX.X%, negative effective pretax Turning in primarily mix. our effect change in combined large tax to rate a loss and a costs, our earnings the the XXXX, the allowance of operations due for rate. given for
valuation expense continuing disallowed million deferred we tax quarter, a tax operations, expense. asset second $XX.X the forecasted primarily our related of to During in due allowance on to interest recognized
improve could expect time. we that plans over have position We overall tax our
Our since was X.XXx XX book-to-bill spin is the for quarter, months the for X.XXx. and trailing it this
Our backlog billion ]. $X.X grown [ since at around has spin X.X% the
Services quarter we not disentangle of any for operations, first these impact businesses the this work we historical the of to which misstatements Enabling certain adjustments aware As line in of items, part identified. given The year, of financial became to reporting our considered material overall as year. discontinued of is
loss are to awards on longer to by to of higher the a for and compared Adjusted the financial diluted a were partially the negatively into impacted doubled company. million by lower the of the in from adjusted benefit to service XXXX, we is increasing prior our adjusted XXXX, million year margin XXX%, as year in lower adjusted the decreased duration and than initiated prior for adjusted the period. for to was process to net and year-over-year XXXX, compared which public personnel of Note for $X.XX $X.X of bolster quarter the As operations the basic was we in more from the the sequential net adjusted compared of mix year the net in the by XXX.X% post income through the Adjusted Adjusted the EBITDA share revenues of prior income year, $XX.X second second previously quarter operations X.X% first year compared compared quarter loss of quarter improvements.
Continuing quarter support studies quarter SG&A period. in EBITDA XX.X% EBITDA million period. offset in the continuing both discussed, $X.XX continuing control $XX.X program prior to $XX.X of environment million basis. X.X%, restructuring EBITDA quarter period. was to that additions margin decreased during adjusted spin third net EBITDA costs These fee pre-spin XXXX.
In
top operations, than represented slightly to customers XXXX of customer for accounted One Turning second revenues. our customer our more of our continuing XX.X% In revenues. concentration. XX quarter half
these flows we to comment I segregated Fortrea not As operations. note have as cash flows, relate discontinued total on in from cash
XXXX, securitization the flow sale For million receivables compared in $XXX.X of March in first income. of were securitization operations days lower reported the the sale from in to million than the is we operations $XXX March as of year. first cash continuing flow X months compared decrease unbilled XX, and sales XX million generated million ended June to Cash XXXX. and accounts first Free as $XXX.X the a The XXXX, in partially receivable cash $XXX.X flow activities, revenue, reduction to in million June billings operating primarily in XX, months outstanding XX, through prior XX increase our increase to Days XX, XXXX. services XX, unearned net extent, of by the benefited was an an $XXX.X facility, for of XXXX.
Net facility, average from offset under days the was advances. from versus continuing quarter to lesser million $XXX.X compared receivables the X XXXX, lower due as of June and
to enable to our over to cash processes time. to further order our DSO contracting profile continue improvements make and We changes to
the of loans divestiture majority has of proceeds, B, the quarter, prepay the prepaid term which million we Loan initial to debt. used from $XXX $XXX with million higher a Term cost During
quarter million end further debt also first with Loan of ending the result, and million proceeds our quarter, in facility to the by We pay the billion down second and our from as debt. B of total from used Term a securitization gross reduced $XXX the $XXX revolver $X.XX
future be, the with fully for have our financial maintenance We covenants to the been, compliant agreement. foreseeable credit and we of expect
more $X.X the exclusion benefit the the the the permitted from the considerable than have usage quarter liquidity. of due debt to with our agreement. under covenant of calculations the add-backs billion We of under We ended credit ratios room securitization paydown, and
focusing are near drive infrastructure and transition former of Our to debt priorities capital parent, in our then investments for allocation with agreement timely the exit on term unchanged, organic the productivity and improve services growth repayment. investments targeted
medium for over continues term. ratio the to target Our net be Xx X.Xx to leverage
update an program. I on Now provide our will transformation
plans services to by number to We've remaining we XX% and a parent, we results, the and of with being former make around our longer-term year-end, early exit financial performance to in ensure continuity with progress while business limited now Fortrea. improving our journey increase robust have the services the health XXXX TSA year-end. We through our TSA place majority exited exited of in towards continue of on
continuing IT adjusted we as strongly are is in quarter to the beyond EBITDA more into infrastructure. program over as while programs other these for and begin SG&A, prepare dropped we efficient with in fully programs delivered a improvement planned a In towards supporting We progress year the through these costs, we initial which benefits to as overall adopt TSA quarter expect are we exit the revenue from to see restructuring -- benefiting growth have efficient more to third the the emerge made with we reduce of to in for of including continuing time. bottom end The and XXXX, we continuing expected.
On line areas, service we begin fee introduced already, organizations we the this XXXX. is few improvements XXXX
guidance our for volume in ensuring their organization the and involved To invest will our in new are for we experiences.
I you SG&A operational to with As enhance updated relationships see project this can and commercial cover are achievement mix intrinsically laser-focused selling start-up building and to end, that productivity continuing We we our awards. study accelerating competitive line is backlog to management be capabilities. investments and leveraging us continuing right from business and resources competitive for the by peers.
On our to with through and remain continue time now by our of our tools compressing of milestones process are on critical execution, expense item, operations. leadership targeted senior
are $X.XXX range For recent to of revenues with full to to $X.XX billion lower XXXX, lowering guidance our The revenue billion, midpoint the of reflects we to particular to trends pass-through billion. largely the year of $X.X a studies we in biomarker the the lower-than-expected awards earlier seeing, impact have first the in to business new revenues and year. due half been the due I [ service adjustment mentioned ] the
And now versus half, revenue second of around being the of slightly versus an first XXXX to result down these overall headwinds, a the versus X%. half but improved have the As decline we expect year. prior with
service reducing million.
In in revenue $XXX to of to that sequentially are fee a EBITDA. adjusted be lower we and a remainder adjusted service Given adjusted of improvement to of spite $XXX expected range to EBITDA we targeting reduction through million of fee EBITDA revenues, both the portion is in the are the revenue year target range, the show our continued
this investor me Slide our seen Let for improvement bridge on presentation. you as of X
around operating achieving of In XXXX. an fourth quarter to million our $XXX to have $XX delivered and adjusted we that and see get of spend. reductions as first million. $XX.X to $XXX would EBITDA the to The growth margin service in we year the target XX% full other $XX a to million. million, half restructuring $XX deliver of in we year. million anticipated gross improvement for rate, be the revenue to a targeting in the combination facilities revised range $XX this and given our contribute To implemented, a the million, of costs XX% SG&A margin adjusted is optimization fee with improvements in we adjusted along run margin to continued give You'll EBITDA EBITDA operational contribute midpoint million are to you we optimization IT of Using this, of programs
modeling. our XXXX our EBITDA and of me share results Now to of view some these our changes guidance adjusted let on based implications
range. be We XX% margin for to XX% targeting are adjusted the likely the more to now EBITDA in XXXX
roughly below basis it we a the targeting points XXXX, While XX% the increase XXX this in a delivered. dollars been had would is previously, improvement XX% at broadly to EBITDA versus adjusted midpoint XX% represent and
to of the related growth optimize separation and than approach the return it reduction is flow positive a In operational challenges the to in expected spend has led and originally the commercial targeting a XXXX, time are slower execution addition, return our former to and given we taking from to expansion in cash parent.
The our margin optimization customer long-term team But clinical a we employees separation great with a anticipated. base, more billion, no than $X unlock development and to independence mistake, partner our for for a of work global investors. make backlog our our than rewarding future to professionals a insight, creation we full XX,XXX value place opportunity a and for of remain talented growing more to
We opportunities. in gaining and innovation are development, customers, to traction opening relentlessly clinical which on we and doors driving significant focused is new efficiency are with
pure strategy CRO transformation and are shareholders. we executing margin play As our value expansion to drive a for significant our diligently unlock substantial
his turn it for remainder I'll back Now the Tom of to remarks.
