Core Insights - Fortrea (Nasdaq: FTRE) is a Contract Research Organization (CRO) that focuses on providing solutions for clinical trials, particularly in the oncology sector [1][2]. Group 1: Company Overview - Fortrea specializes in managing clinical trials from Phase I to IV, offering comprehensive solutions to streamline the trial process [2]. - The company has established a robust network of over 90 sites and employs approximately 19,000 professionals, enhancing its capacity to conduct extensive clinical research [2]. Group 2: Strategic Partnerships - Fortrea collaborates with various organizations, including Circuit Clinical, Elligo Health Research, FutureMeds, and others, to enhance its clinical trial capabilities [1]. - The partnerships aim to improve patient recruitment and retention, ensuring efficient trial execution and data collection [1][2]. Group 3: Market Position - Fortrea's extensive experience and established network position it as a key player in the CRO market, particularly in oncology trials [1][2]. - The company is focused on addressing the challenges faced in clinical trials, such as patient engagement and operational efficiency [1].

合作利用 Medidata AI 提高不同人群在臨床研究中的接入及參與北卡羅來納州，達勒姆, Nov. 20, 2023 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq：FTRE），一家全球領先的合同研究組織 (CRO)，今天宣布與 Medidata 建立合作伙伴關係，Medidata 是 Dassault Systèmes 公司和生命科學行業臨床試驗解決方案的領先提供商，將使用 Medidata AI Intelligent Trials 來增加 Fortrea 進行的臨床試驗中多元化患者的接入。 Fortrea 使用 Medidata AI 是基於兩家公司已有的合作關係，擴大了 Fortrea 使用 Medidata Rave EDC 的範圍，這是一種用於臨床試驗站點患者和實驗室數據捕獲和管理的先進、強大且安全的 EDC 系統。Fortrea 將利用 Medidata AI Intelligent Trials 的特性，包括研究可行性和多元化數據，幫助新興和大型生物製藥公司，以及醫療設備和診斷公司，實現招募目標，反映出每種疾病或研究條件下受影響最大的人群。 「Medidata 的數 ...

Financial Data and Key Metrics Changes - The company reported revenues of $776 million in Q3 2023, representing a 1.8% increase year-over-year [40] - Adjusted EBITDA for the quarter was $70.5 million, a decrease of 33% year-over-year compared to $105.2 million in the prior year period [24] - Adjusted net income for the quarter was $21.3 million, down 73.5% from $80.3 million in the prior year period [44] - Year-to-date adjusted basic and diluted earnings per share were $1.22 and $1.21, respectively, compared to $2.48 in the prior year period [25] Business Line Data and Key Metrics Changes - Clinical Services revenues were $712 million, growing 2.1% year-on-year, driven by higher pass-through revenues [40] - Enabling Services revenues were nearly $65 million, broadly flat year-on-year, driven by growth in the Endpoint business [21] - The company achieved a book-to-bill ratio of 1.24, indicating a healthy mix of work [15] Market Data and Key Metrics Changes - The company’s backlog grew 2.2% sequentially, ending the quarter at $7.1 billion [39] - Days sales outstanding (DSO) increased to 92 days, up six days from the previous quarter [45] Company Strategy and Development Direction - The company aims to transform into a competitive independent CRO, focusing on serving biotech and selectively larger pharma [7][34] - Investments are being made in technology and geographic leadership to enhance operational efficiency and customer offerings [47][51] - The company is focused on exiting transition services agreements (TSAs) to reduce costs and improve margins [50][76] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment remains solid, with no significant slowdown among larger pharma customers [92] - The company is optimistic about the pipeline for Q4, expecting a solid book-to-bill ratio with a healthy mix of work [134] - Management emphasized the importance of delivering results and maintaining strong customer relationships to drive future growth [80][81] Other Important Information - The effective tax rate for the quarter was 26.8%, with expectations for the full-year adjusted effective tax rate to be between 27% and 30% [23] - The company is undertaking a review of its structure to optimize its tax strategy [43] Q&A Session Summary Question: Can you walk us through the SG&A analysis and how it relates to gross margin? - Management indicated that significant margin expansion opportunities exist, particularly in IT and finance, which are interrelated with exiting TSAs [57][60] Question: How is the competitive landscape evolving post-spin? - Management noted that large wins were competitive with larger CROs, and there is a positive reception from customers regarding the company’s independence [94] Question: Can you elaborate on the demand environment and organic improvements? - Management highlighted ongoing innovation in the industry and a solid flow of RFPs from larger pharma and biotech customers [92] Question: What is the strategy regarding large pharma and biotech? - The company confirmed a nuanced strategy focusing on biotech while selectively engaging with large pharma, emphasizing quality and resource allocation [100][127] Question: What are the expectations for adjusted EBITDA in 2024? - Management refrained from providing specific guidance but indicated a cautious optimism based on new awards and backlog conversion rates [101][119]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-41704 FORTREA HOLDINGS INC. (Exact name of registrant as specified in its charter) | Delaware | 92-2796441 | | --- | --- ...

透過現場藥房的 cGMP 生產增加速度和靈活性，增加容量，提高靈活的治療能力，並增強研究志願者的體驗北卡羅來納州，杜倫, Nov. 03, 2023 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE)（下稱「該公司」），一家領先的全球合同研究組織 (CRO)，今天宣布已完成多年努力擴展其臨床藥理學解決方案和能力，現已完全可供客戶使用。該擴展包括位於英國利茲的 100,000 平方英呎的最先進設施，以及約 20,000 平方英呎的新建或翻新空間，增加了位於德州達拉斯、佛羅里達州代托納和威斯康星州麥迪遜的臨床研究單位 (CRUs) 的容量和能力。 Fortrea 臨床藥理學總裁兼醫院行政總監 Oren Cohen 博士表示：「臨床藥理學研究的日益複雜性要求適宜的基礎設施、經驗和專業知識，以保護研究參與者的安全和至關重要的數據的完整性。」他補充說：「我們的綜合服務平台包括一流的基礎設施和經驗豐富的專業人員，他們完全致力於臨床藥理學，包括醫生、護士、臨床科學家、CRA 和藥動學家。我們所進行的投資旨在提升客戶需要準確評估早期研發階段候選品並加快有前景的候選品進入後期開發階段，最終惠及 ...

Financial Data and Key Metrics Changes - Revenues for Q2 2023 were $793 million, essentially flat compared to the same period last year [10] - Clinical services revenues grew 0.4% year-on-year to $726.1 million, driven by higher passthrough revenues, partially offset by lower service fee revenues [10] - Adjusted EBITDA for the quarter was $72.5 million, a decrease of 37.1% year-over-year [13] - Adjusted net income for the quarter was $46.3 million, down 46.2% compared to the prior year [41] - Free cash flow for the first half of 2023 was $128.4 million, an improvement primarily due to a lower incentive payout [16] Business Line Data and Key Metrics Changes - Enabling Services revenues decreased 4.2% year-on-year, impacted by lower call center activity [38] - Adjusted EBITDA margin for Q2 was 9.1%, down from 14.5% in the prior year [41] - Backlog at the end of the quarter was approximately $7 billion, a reduction of $1.27 billion year-over-year due to changes in backlog recognition policies [20] Market Data and Key Metrics Changes - The company expects the CRO market to grow by roughly 3% to 5% in 2024, with a return to higher single-digit growth rates anticipated in 2024 and 2025 [119] - The effective tax rate for Q2 was 26.9%, with expectations for a full-year 2023 adjusted effective tax rate between 27% to 30% [40] Company Strategy and Development Direction - The company is focused on winning new business to drive future top-line growth and is optimistic about the momentum in RFP flow and margin expansion opportunities [23][37] - Management is actively assessing the cost base and has begun forming a margin optimization plan [42] - The company aims to align its cost structure with revenues and improve margins to be on par with industry leaders over time [59][91] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with the second quarter and first half results, indicating that they do not reflect the potential performance of the organization as an independent company [26] - There is a focus on improving customer engagement and leveraging technology to enhance clinical development solutions [55][116] - Management is optimistic about the future, citing improvements in RFP flow and new business wins since the spin-off [77] Other Important Information - The company has initiated projects to improve its Days Sales Outstanding (DSO) profile, which was 86 days at June 30, 2023 [43] - The company issued $570 million of senior notes due in 2030 and entered into a $450 million revolving credit facility [44] - The company is prioritizing infrastructure investments and targeted therapeutic and technology investments to drive organic growth [45] Q&A Session Summary Question: Focus on cost structure and year-over-year costs - Management acknowledged the complexity of understanding ongoing costs versus those related to the spin and is working to clarify these differences [62][84] Question: Expectations for customer engagement post-spin - Management noted that while there is no queue of opportunities, they are seeing improved engagement and interest from customers now that the spin is complete [68][69] Question: Long-term growth expectations for the CRO market - Management reiterated expectations for the CRO market to grow by 3% to 5% in 2024, with a return to higher growth rates anticipated in subsequent years [71][119] Question: Staffing levels and capacity - Management indicated that they are working towards being fully staffed, particularly in customer-facing roles, and are optimistic about achieving performance levels seen in 2022 by the end of 2024 [90][91] Question: Impact of FSP contract loss - Management confirmed that the majority of the impact from the FSP contract loss was in the first half of the year, with only minor lingering effects expected in the second half [99]

Financial Performance - Fortrea's total revenues for Q2 2023 were $793.0 million, essentially flat compared to $793.1 million in Q2 2022, with organic revenue growth of 0.1%[108] - Clinical Services segment revenues increased by 0.4% to $726.1 million in Q2 2023 from $723.3 million in Q2 2022, driven by higher pass-through revenues[109] - Enabling Services segment revenues decreased by 4.2% to $66.9 million in Q2 2023 from $69.8 million in Q2 2022, primarily due to customer cancellations[110] - Total revenues for the six months ended June 30, 2023, were $1,557.2 million, a decrease of 0.9% from $1,572.1 million in the same period of 2022, driven by a 0.2% decline in organic revenues and a 0.7% unfavorable foreign currency translation[120] - Clinical Services segment revenues decreased by 0.9% to $1,418.1 million for the six months ended June 30, 2023, from $1,430.4 million in 2022, primarily due to lower service revenues[121] Costs and Expenses - Direct costs increased by 5.7% to $649.4 million in Q2 2023, with direct costs as a percentage of revenues rising to 81.9% from 77.5% in Q2 2022[110] - Selling, general and administrative expenses rose by 13.5% to $80.8 million in Q2 2023, attributed to increased indirect labor and credit loss provisions[111] - Depreciation expense increased by 33.8% to $9.1 million in Q2 2023, reflecting higher property, plant, and equipment[113] - Direct costs increased by 2.6% to $1,285.6 million for the six months ended June 30, 2023, with direct costs as a percentage of revenues rising to 82.6% from 79.7% in the prior year[122] - Selling, general and administrative expenses rose by 8.9% to $158.8 million for the six months ended June 30, 2023, compared to $145.8 million in 2022, mainly due to increased indirect labor and credit loss provisions[123] Operating Income - Clinical Services operating income decreased by 36.1% to $74.1 million in Q2 2023 from $116.0 million in Q2 2022, impacted by lower service revenues and increased credit loss provisions[117] - Enabling Services operating income fell by 89.0% to $1.2 million in Q2 2023 from $10.9 million in Q2 2022[117] - Clinical Services operating income fell by 30.7% to $132.5 million for the six months ended June 30, 2023, from $191.3 million in the same period of 2022[130] Tax and Restructuring - The effective income tax rate for Q2 2023 was 27.2%, up from 20.6% in Q2 2022, primarily due to earnings mix[117] - The company recorded net restructuring charges of $5.1 million for the six months ended June 30, 2023, a decrease of 77.4% from $22.6 million in the same period of 2022[126] Cash and Debt - Cash and cash equivalents increased to $114.3 million as of June 30, 2023, compared to $95.5 million in 2022[138] - Net cash provided by operating activities was $154.2 million for the six months ended June 30, 2023, a significant increase from $(21.7) million in the same period of 2022[139] - The company incurred approximately $1,640 million of long-term debt in connection with the Spin, with a majority bearing interest at a variable rate[152] - As of June 30, 2023, the company had $1,070 million outstanding related to its variable rate debt[152] - A hypothetical 1.00% increase in interest rates would result in increased interest expenses of $10.7 million[152] Currency and Foreign Exchange - Approximately 16.1% of revenues for the six months ended June 30, 2023, were denominated in currencies other than the U.S. dollar, compared to 18.8% for the same period in 2022[149] - A hypothetical 10% change in average exchange rates would have impacted income before income taxes by approximately $1.2 million for the six months ended June 30, 2023, and by approximately $4.3 million for the year ended December 31, 2022[149] - At June 30, 2023, gross accumulated currency translation adjustments were $48.4 million, compared to $(120.2) million at June 30, 2022[149] Corporate Developments - Fortrea completed its separation from Labcorp on June 30, 2023, and began trading as a separate public company on July 3, 2023[103] - The company intends to evaluate strategic opportunities, including potential acquisitions and investments in complementary businesses[136] Internal Controls - Management has evaluated the effectiveness of the company's disclosure controls and procedures as of June 30, 2023, concluding they were effective[153] - No changes in internal controls over financial reporting during the quarter ended June 30, 2023, have materially affected the internal controls[155]