Financial Data and Key Metrics Changes - Revenues for Q2 2024 were $662.4 million, a decline of 8.6% year-on-year, primarily due to lower pass-through revenues and service fee revenues [16][19] - Adjusted EBITDA for the quarter was $55.2 million, down 23.2% year-on-year, but increased by 103.7% sequentially from Q1 2024 [20][28] - The book-to-bill ratio for the quarter was 0.96, while the trailing 12-month book-to-bill was 1.16 [19] Business Line Data and Key Metrics Changes - The clinical pharmacology business showed strong performance with attractive book-to-bill ratios and increased win rates in Phase 1b and 2 studies [7] - New offerings, including a diversity and inclusion solution and an AI Innovation Studio, were launched to enhance productivity and patient access [8][9] Market Data and Key Metrics Changes - The pipeline at the beginning of Q2 was 11% larger than the average of the previous three quarters, indicating a strong outlook for the second half of the year [12][13] - The company has seen a shift towards larger pharma clients, which is expected to provide more predictable revenue streams [31][44] Company Strategy and Development Direction - The company aims to improve margins while delivering quality work and is focused on enhancing operational efficiency through restructuring and cost management [6][24] - Fortrea is positioning itself as a partner for both biotech and large pharma, emphasizing productivity and scientific expertise [62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in predicting biotech contracting timelines but expressed confidence in the strong pipeline and upcoming opportunities [31][44] - The company is targeting a revenue range of $2.7 billion to $2.75 billion for 2024, reflecting a decline of around 4% compared to 2023 [26][27] Other Important Information - The company has exited approximately 60% of its TSA agreements with its former parent and has significantly reduced its balance sheet leverage by paying down $500 million of spin-related debt [14][23] - The effective tax rate for continuing operations was negative 12.1%, primarily due to a forecasted pre-tax loss and changes in evaluation allowance [18][19] Q&A Session Summary Question: Can you quantify the impact of service fee revenue and pass-throughs? - Management noted that pass-through revenues were significantly impacted by biomarker studies normalizing, which had previously inflated revenues [37] Question: What were the drivers behind the reduction in operating costs? - The reduction was attributed to ongoing restructuring efforts and improved IT spending, with expectations for continued benefits in Q3 and Q4 [39][40] Question: What gives confidence in the upcoming book-to-bill ratio? - Confidence stems from a strong pipeline with more large pharma opportunities, which tend to be more predictable compared to biotech [44] Question: How are margins expected to improve in 2025? - Margins are expected to improve through a combination of gross margin enhancements and SG&A reductions as the company exits TSA services [47] Question: How is the pricing environment in biotech versus large pharma? - Pricing in biotech remains disciplined, while large pharma is seeing competitive pricing, particularly in full-service outsourcing [55][56]

Fortrea Holdings Inc. (FTRE) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of $0.07. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -142.86%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.04, delivering a surprise of -300%. Over the last four quarters, the company has surpas ...

For the three months ended June 30, 2024, from continuing operations: Revenues of $662.4 million GAAP net loss of $(99.3) million Adjusted EBITDA of $55.2 million GAAP and adjusted diluted loss per share of $(1.11) and $(0.03), respectively Book-to-bill ratio of 0.96x, resulting in 1.16x book-to-bill for the trailing 12 months Completed divestiture of assets relating to the Endpoint Clinical and Patient Access businesses Debt paydown of $504 million in the quarter using initial divestiture and securitizatio ...

To participate in the earnings call, participants should register online at the Fortrea Investor Relations website. To avoid potential delays, please join at least 10 minutes prior to the start of the call. The conference call can also be accessed through the following earnings webcast link. About Fortrea Fortrea Contacts: A replay of the live conference call will be available shortly after the conclusion of the event and accessible on the events and presentations section of the Fortrea Investor Relations w ...

DURHAM, N.C., July 17, 2024 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE) (the "Company"), a leading global contract research organization (CRO), today announced that it will release its second quarter 2024 financial results before the market opens on Monday, August 12, 2024. Fortrea will host a conference call at 9:00 am ET that day to review its financial results and conduct a question-and-answer session. To participate in the earnings call, participants should register online at the Fortrea Investor Relatio ...

Parks brings three decades of experience to the role. Starting his career in public accounting at Ernst & Young LLP, he served clients in global and regulated industries, including defense and construction. He was senior vice president and corporate controller at Quintiles, now IQVIA, and CAO at Syneos, a leading biopharmaceutical solutions organization. Most recently, Parks served as CAO at SailPoint Technologies Holdings, a leader in identity security software. He is a certified public accountant and earn ...

Core Insights - Fortrea has appointed Robert "Bobby" Parks as the new Chief Accounting Officer (CAO), effective August 2024, to oversee the company's accounting functions, including financial reporting, risk management, and compliance [4][5][7] - Parks brings over 30 years of experience in public accounting and corporate finance, having held significant roles at Ernst & Young, Quintiles (now IQVIA), Syneos, and SailPoint Technologies [5][6] - The appointment is expected to enhance Fortrea's strategic direction and operational efficiency, as Parks is recognized for his expertise in managing Sarbanes-Oxley Act requirements and internal controls [4][5][6] Company Overview - Fortrea is a leading global contract research organization (CRO) that provides clinical development solutions to the life sciences industry, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies [6] - The company offers a range of services including phase I-IV clinical trial management, clinical pharmacology, and consulting, leveraging over three decades of experience across more than 20 therapeutic areas [6] - Fortrea operates in over 90 countries, emphasizing a commitment to healthcare innovation and the acceleration of life-changing therapies for patients [6]

北卡罗来纳州，达勒姆市, June 28, 2024 (GLOBE NEWSWIRE) -- 全球领先的合同研究组织 (CRO) Fortrea (Nasdaq: FTRE) 今天宣布推出人工智能 (AI) 创新工作室，标志着该公司在重塑当今及未来临床试验执行方面的战略投资。 该工作室将开发和部署 AI 和机器学习 (ML) 技术，通过装备和授权人员专注于临床试验中关键的人为因素，提升临床研究过程中的速度、敏捷性、质量并增强患者安全性。 “全世界的患者都在等待改变生活的新颖疗法。有了 AI，我们现在有能力也有义务更快地为他们提供解决方案，”Fortrea 首席信息官 Alejandro Martinez Galindo 说道。 “Fortrea 的 AI 创新工作室将增强技术能力，使 AI 赋能系统能够执行先进流程，如试验模拟、预测分析和模式识别，以及重复性、管理性、‘机器友好型任务’。如此一来，人们就可以解放出来，为未来的临床试验贡献人类的创造力和联系，并专注于最重要的事情：患者。” Fortrea 的 AI 创新工作室旨在： 在 Fortrea 内部以及与我们的客户合作，为定制研究中心和申办者创新战略提供 ...

The studio will develop and deploy AI and machine learning (ML) technologies to drive speed, agility, quality and enhanced patient safety in the clinical research process by equipping and empowering people to focus on the critical human element of clinical trials. "Fortrea's AI Innovation Studio will enable enhanced technological capabilities that will allow AI-enabled systems to perform cutting-edge processes—such as trial simulations, predictive analytics and pattern recognition—as well as repetitive, adm ...

DURHAM, N.C., June 19, 2024 (GLOBE NEWSWIRE) -- Fortrea (NASDAQ:FTRE), a leading global contract research organization (CRO), today announced that Chief Financial Officer Jill McConnell will participate in a virtual fireside chat hosted by Elizabeth Anderson, senior managing director at Evercore ISI, to discuss Fortrea's business on Thursday, June 20, 2024 at 2:00 pm ET. Registration for the live event is required here. The event is scheduled for 30 minutes. A replay will be available by accessing the Fortr ...