Fortrea Reports Fourth Quarter and Full-Year 2023 Results; Issues Full-Year 2024 Guidance
- Strong revenues of $775.4 million for Q4 2023 and $3,109.0 million for full year 2023.
- GAAP net loss of $(36.0) million for Q4 2023 and $(3.4) million for full year 2023.
- Adjusted EBITDA of $67.2 million for Q4 2023 and $267.3 million for full year 2023.
- Fourth-quarter book-to-bill ratio of 1.30x, showcasing growth and focus on clinical services.
- Planned divestiture of Patient Access and Endpoint businesses to strengthen focus on Phase 1 to 4 Clinical Services.
- Optimistic outlook for 2024 with revenue targets of $3,140 million to $3,205 million and adjusted EBITDA guidance of $280 million to $320 million.
- Entry into an agreement to divest Endpoint Clinical and Fortrea Patient Access to Arsenal Capital Partners.
- None.
Insights
The reported revenue increase for Fortrea, albeit marginal from $3,096.1 million in 2022 to $3,109.0 million in 2023, indicates a degree of resilience in the company's core operations, particularly in Clinical Services. However, the shift from a GAAP net income in 2022 to a net loss in 2023 raises concerns about the company's profitability and cost management strategies. The book-to-bill ratio exceeding the target suggests a healthy pipeline of future revenues, yet the effectiveness of these projects in improving the bottom line remains to be seen.
Investors should note the company's backlog of $7,392 million, which provides visibility into future earnings potential. However, the gross debt of $1,624.7 million is substantial and could pose risks if the company's earnings do not improve to cover interest payments and reduce leverage. The free cash flow of $127.1 million indicates some financial flexibility, but it's a significant drop from the previous year's performance, which could affect the company's ability to invest in growth or return value to shareholders.
The clinical research outsourcing (CRO) industry is characterized by high competition and the need for continuous innovation. Fortrea's focus on Phase 1 to 4 Clinical Services after divesting non-core businesses could streamline operations and improve efficiency. The company's emphasis on innovative solutions combining science, technology and human capital is in line with industry trends towards more integrated and patient-centric research models.
However, the reduced adjusted EBITDA year-over-year suggests that the market should closely monitor the company's ability to convert its backlog into high-margin revenue. The financial guidance for 2024 implies cautious optimism, but stakeholders should be aware of the potential impacts of foreign exchange rates and the execution risks associated with the company's strategic realignment.
The company's transformation and focus on its core competencies in clinical development could lead to improved operational efficiencies and better alignment with the evolving demands of the pharmaceutical industry. The divestiture of the Patient Access and Endpoint businesses may allow for a more concentrated investment in innovation within the Clinical Services sector, potentially leading to enhanced service offerings and client satisfaction.
Given the importance of a robust pipeline in the CRO industry, the high book-to-bill ratio is a positive indicator of the company's ability to secure new contracts and expand its market share. However, the decrease in adjusted EBITDA suggests that there may be challenges in maintaining profitability while investing in growth, which could have implications for long-term research and development capabilities.
For the three months and full year ended December 31, 2023:
-
- Revenues of
$775.4 million for the fourth quarter,$3,109.0 million for the full year - GAAP net loss of
$(36.0) million for the fourth quarter,$(3.4) million for the full year - Adjusted EBITDA of
$67.2 million for the fourth quarter,$267.3 million for the full year - Fourth-quarter book-to-bill ratio of 1.30x
- Revenues of
DURHAM, N.C., March 11, 2024 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE) (the “Company”), a leading global contract research organization (CRO), today reported financial results for the fourth quarter and full year ended December 31, 2023.
“Fortrea successfully navigated the second half 2023 transforming a “division of a division” into a leader in clinical development,” said Tom Pike, chairman and CEO of Fortrea. “Customers and employees have responded favorably to our patient-inspired purpose and our innovative solutions, combining leading science, technology and people. The planned divestiture of our Patient Access and Endpoint businesses strengthens our focus on Phase 1 to 4 Clinical Services. We are also pleased to put an important issue in the rear-view mirror. 2024 is an important year for us to continue demonstrating that we can deliver excellent results for customers while improving the financial results for the medium and longer term. I’m confident our talented global team will continue to execute our plans with discipline and focus.”
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter was
Fourth quarter GAAP net loss was
Fortrea’s book-to-bill ratio was 1.30x for the fourth quarter of 2023, achieving the target of more than 1.2x for its first six months as an independent organization.
Full Year 2023 Financial Results
Revenue for the full year was
Full year GAAP net loss was
Backlog as of December 31, 2023, was
The Company’s cash and cash equivalents were
2024 Financial Guidance
For the full year 2024, the Company targets revenues in the range of
Other Developments
On March 9, 2024, the Company entered into an agreement to divest Endpoint Clinical and Fortrea Patient Access to Arsenal Capital Partners. More information about the transaction was made available in Fortrea’s press release dated March 11, 2024.The purchase price for the transaction is
Earnings Call and Replay
Fortrea will host a conference call at 9:00 am ET on March 11, 2024, 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 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.
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 website. A supplemental slide presentation will also be available on the Fortrea Investor Relations website prior to the start of the call.
About Fortrea
Fortrea (Nasdaq: FTRE) is a leading global provider of clinical development and patient access solutions to the life sciences industry. We partner with emerging and large biopharmaceutical, biotechnology, medical device and diagnostic companies to drive healthcare innovation that accelerates life-changing therapies to patients. Fortrea provides phase I-IV clinical trial management, clinical pharmacology, consulting services, differentiated technology enabled trial solutions and post-approval services.
Fortrea’s solutions leverage three decades of experience spanning more than 20 therapeutic areas, a passion for scientific rigor, exceptional insights and a strong investigator site network. Our talented and diverse team of approximately 18,000 people working in more than 90 countries is scaled to deliver focused and agile solutions to customers globally.
Learn more about how Fortrea is becoming a transformative force from pipeline to patient at Fortrea.com and follow us on LinkedIn and X (formerly Twitter) @Fortrea.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the Company’s 2024 financial guidance and the revenue growth and the transformation to meet industry expectations of costs. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “assume,” “anticipate,” “intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from the Company’s expectations due to a number of factors, including, but not limited to, the following: if the Company does not realize some or all of the benefits expected to result from the spin-off of the Company (the “Spin”) from Laboratory Corporation of America Holdings (“Labcorp”), or if such benefits are delayed; risks and consequences that are a result of the Spin; the impacts of becoming an independent public company; the Company’s reliance on Labcorp to provide financial reporting and other financial and accounting information for periods prior to the Spin through the end of the relevant transition agreements, as well as IT, accounting, finance, legal, human resources, and other services critical to the Company’s businesses; the Company’s dependence on third parties generally to provide services critical to the Company’s businesses throughout the transition period and beyond; the establishment of the Company’s accounting, enterprise resource planning, and other management systems post the transition period, which could cost more or take longer than anticipated; the impact of the rebranding of the Company; the Company’s ability to successfully implement the Company’s business strategies and execute the Company’s long-term value creation strategy; risks and expenses associated with the Company’s international operations and currency fluctuations; the Company’s customer or therapeutic area concentrations; any further deterioration in the macroeconomic environment, which could lead to defaults or cancellations by the Company’s customers; the risk that the Company’s backlog and net new business may not be indicative of the Company’s future revenues and that the Company might not realize all of the anticipated future revenue reflected in the Company’s backlog; the Company’s ability to generate sufficient net new business awards, or if net new business awards are delayed, terminated, reduced in scope, or fail to go to contract; if the Company underprices the Company’s contracts, overrun the Company’s cost estimates, or fail to receive approval for, or experience delays in documentation of change orders; the Company’s ability to complete the divestiture of Endpoint Clinical and Fortrea Patient Access businesses on time or at all; the Company’s ability to realize the full purchase price for the divestiture transaction; the Company’s ability to realize the benefits of the asset divestiture transaction; and other factors described from time to time in documents that the Company files with the SEC. For a further discussion of the risks relating to the Company’s business, see the “Risk Factors” Section of the Company’s Information Statement filed with the Company’s Registration Statement on Form 10, as amended (the “Form 10”), as filed with the Securities and Exchange Commission (the "SEC"), as such factors may be amended or updated from time to time in the Company’s subsequent periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. Comparisons of results for current and any prior periods are not intended to express any future, or indications of future performance, unless expressed as such, and should only be viewed as historical data. All forward-looking statements are made only as of the date of this release and the Company does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking statements to reflect future events or developments.
Note on Non-GAAP Financial Measures
This release includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Basic and Diluted EPS, and Free Cash Flow. Non-GAAP financial measures are presented only as a supplement to the Company’s financial statements based on GAAP. Non-GAAP financial information is provided to enhance understanding of the Company’s financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP, and non-GAAP measures should not be considered in isolation from, or as a substitute analysis for, the Company’s results of operations as determined in accordance with GAAP.
The Company uses non-GAAP measures in its operational and financial decision making and believes that it is useful to exclude certain items in order to focus on what it regards to be a more meaningful indicator of the underlying operating performance of the business. For example, in calculating Adjusted EBITDA, the Company excludes all the amortization of intangible assets associated with acquired customer relationships and backlog, databases, non-compete agreements and trademarks, trade names and other from non-GAAP expense and income measures as such amounts can be significantly impacted by the timing and size of acquisitions. Although the Company excludes amortization of acquired intangible assets from the Company’s non-GAAP expenses, the Company believes that it is important for investors to understand that revenue generated from such intangibles is included within revenue in determining net income attributable to the Company. As a result, internal management reports feature non-GAAP measures which are also used to prepare strategic plans and annual budgets and review management compensation. The Company also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures.
The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the schedules attached to this release for relevant definitions and reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. The Company’s full-year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include, but are not limited to, acquisition-related expenses, restructuring and related expenses, stock-based compensation and other items not reflective of the Company's ongoing operations.
Non-GAAP measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the Company, many of which present non-GAAP measures when reporting their results. Non-GAAP measures have limitations as an analytical tool. They are not presentations made in accordance with GAAP, are not measures of financial condition or liquidity and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. Non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider such performance measures in isolation from, or as a substitute analysis for, the Company’s results of operations as determined in accordance with GAAP.
Fortrea Contacts
Hima Inguva (Investors) – 877-495-0816, hima.inguva@fortrea.com
Sue Zaranek (Media) – 919-943-5422, media@fortrea.com
Kate Dillon (Media) – 646-818-9115, kdillon@prosek.com
| FORTREA HOLDINGS INC. | |||||||||||||||
| CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS | |||||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues | $ | 775.4 | $ | 761.7 | $ | 3,109.0 | $ | 3,096.1 | |||||||
| Costs and expenses: | |||||||||||||||
| Direct costs, exclusive of depreciation and amortization (including costs incurred from related parties of | 655.7 | 599.8 | 2,588.6 | 2,447.4 | |||||||||||
| Selling, general and administrative expenses, exclusive of depreciation and amortization | 98.9 | 63.3 | 336.6 | 279.8 | |||||||||||
| Depreciation and amortization | 23.9 | 23.0 | 96.4 | 92.7 | |||||||||||
| Goodwill and other asset impairments | — | 9.8 | — | 9.8 | |||||||||||
| Restructuring and other charges | 7.6 | 2.7 | 24.3 | 30.5 | |||||||||||
| Total costs and expenses | 786.1 | 698.6 | 3,045.9 | 2,860.2 | |||||||||||
| Operating income (loss) | (10.7 | ) | 63.1 | 63.1 | 235.9 | ||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (34.5 | ) | (0.2 | ) | (69.8 | ) | (0.2 | ) | |||||||
| Foreign exchange gain (loss) | 1.9 | (22.0 | ) | 0.9 | (0.9 | ) | |||||||||
| Other, net | 2.3 | 0.8 | 6.9 | 2.2 | |||||||||||
| Net income (loss) before income taxes | (41.0 | ) | 41.7 | 1.1 | 237.0 | ||||||||||
| Provision for (benefit from) income taxes | (5.0 | ) | 8.3 | 4.5 | 44.1 | ||||||||||
| Net income (loss) | $ | (36.0 | ) | $ | 33.4 | $ | (3.4 | ) | $ | 192.9 | |||||
| Earnings (loss) per common share | |||||||||||||||
| Basic | $ | (0.41 | ) | $ | 0.38 | $ | (0.04 | ) | $ | 2.17 | |||||
| Diluted | $ | (0.41 | ) | $ | 0.38 | $ | (0.04 | ) | $ | 2.17 | |||||
| FORTREA HOLDINGS INC. | |||||||
| CONSOLIDATED AND COMBINED BALANCE SHEETS | |||||||
| (dollars and shares in millions) | |||||||
| December 31, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 108.6 | $ | 112.0 | |||
| Accounts receivable and unbilled services, net | 1,052.1 | 1,022.2 | |||||
| Prepaid expenses and other | 92.4 | 112.7 | |||||
| Total current assets | 1,253.1 | 1,246.9 | |||||
| Property, plant and equipment, net | 220.9 | 164.9 | |||||
| Goodwill, net | 2,029.3 | 1,997.3 | |||||
| Intangible assets, net | 771.2 | 823.3 | |||||
| Deferred income taxes | 3.2 | 1.2 | |||||
| Other assets, net | 79.5 | 54.3 | |||||
| Total assets | $ | 4,357.2 | $ | 4,287.9 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 132.8 | $ | 81.5 | |||
| Accrued expenses and other current liabilities | 356.1 | 322.7 | |||||
| Unearned revenue | 241.4 | 271.5 | |||||
| Current portion of long-term debt | 26.1 | — | |||||
| Short-term operating lease liabilities | 19.5 | 23.3 | |||||
| Total current liabilities | 775.9 | 699.0 | |||||
| Long-term debt, less current portion | 1,565.9 | — | |||||
| Operating lease liabilities | 66.5 | 40.1 | |||||
| Deferred income taxes and other tax liabilities | 148.8 | 184.5 | |||||
| Other liabilities | 61.3 | 21.7 | |||||
| Total liabilities | 2,618.4 | 945.3 | |||||
| Commitments and contingent liabilities | |||||||
| Equity | |||||||
| Former parent investment | — | 3,618.6 | |||||
| Common stock, 88.8 and 0.0 shares outstanding on December 31, 2023, and December 31, 2022, respectively | 0.1 | — | |||||
| Additional paid-in capital | 2,006.2 | — | |||||
| Accumulated deficit | (49.1 | ) | — | ||||
| Accumulated other comprehensive loss | (218.4 | ) | (276.0 | ) | |||
| Total equity | 1,738.8 | 3,342.6 | |||||
| Total liabilities and equity | $ | 4,357.2 | $ | 4,287.9 | |||
| FORTREA HOLDINGS INC. | |||||||
| CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS | |||||||
| (in millions) | |||||||
| Years Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income (loss) | $ | (3.4 | ) | $ | 192.9 | ||
| Adjustments to reconcile net earnings to net cash provided by (used for) operating activities: | |||||||
| Depreciation and amortization | 96.4 | 92.7 | |||||
| Stock compensation | 42.7 | 25.4 | |||||
| Operating lease right-of-use asset expense | 27.4 | 24.9 | |||||
| Goodwill and other asset impairment | — | 9.8 | |||||
| Deferred income taxes | (40.5 | ) | (16.5 | ) | |||
| Other, net | (1.0 | ) | 4.1 | ||||
| Changes in assets and liabilities: | |||||||
| Increase in accounts receivable and unbilled services, net | (28.8 | ) | (105.0 | ) | |||
| Increase in prepaid expenses and other | (2.0 | ) | (12.2 | ) | |||
| Increase in accounts payable | 51.1 | 22.4 | |||||
| Decrease in unearned revenue | (3.4 | ) | (32.5 | ) | |||
| Increase (decrease) in accrued expenses and other | 28.9 | (118.5 | ) | ||||
| Net cash provided by operating activities | 167.4 | 87.5 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Capital expenditures | (40.3 | ) | (54.4 | ) | |||
| Proceeds from sale of assets | 8.5 | 0.4 | |||||
| Net cash used for investing activities | (31.8 | ) | (54.0 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from revolving credit facilities | 164.0 | — | |||||
| Payments on revolving credit facilities | (164.0 | ) | — | ||||
| Proceeds from term loans | 1,061.4 | — | |||||
| Proceeds from issuance of senior notes | 570.0 | — | |||||
| Debt issuance costs | (26.4 | ) | — | ||||
| Principal payments of long-term debt | (15.4 | ) | — | ||||
| Special payment to Former Parent | (1,595.0 | ) | — | ||||
| Net transfers (to) Former Parent | (133.6 | ) | (8.7 | ) | |||
| Net cash used for financing activities | (139.0 | ) | (8.7 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | — | (7.4 | ) | ||||
| Net (decrease) increase change in cash and cash equivalents | (3.4 | ) | 17.4 | ||||
| Cash and cash equivalents at beginning of period | 112.0 | 94.6 | |||||
| Cash and cash equivalents at end of period | $ | 108.6 | $ | 112.0 | |||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
| FORTREA HOLDINGS INC. | |||||||||||||||
| NET INCOME TO ADJUSTED EBITDA RECONCILIATION | |||||||||||||||
| (in millions) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Adjusted EBITDA: | |||||||||||||||
| Net income (loss) | $ | (36.0 | ) | $ | 33.4 | $ | (3.4 | ) | $ | 192.9 | |||||
| Provision for (benefit from) income taxes | (5.0 | ) | 8.3 | 4.5 | 44.1 | ||||||||||
| Interest expense, net | 34.5 | 0.2 | 69.8 | 0.2 | |||||||||||
| Foreign exchange (gain) loss | (1.9 | ) | 22.0 | (0.9 | ) | 0.9 | |||||||||
| Depreciation and amortization (a) | 23.9 | 23.0 | 96.4 | 92.7 | |||||||||||
| Goodwill and other asset impairments(b) | — | 9.8 | — | 9.8 | |||||||||||
| Restructuring and other charges (c) | 7.6 | 2.7 | 26.9 | 30.5 | |||||||||||
| Stock based compensation | 15.5 | 5.8 | 42.7 | 25.4 | |||||||||||
| One-time spin related costs (d) | 25.2 | — | 31.7 | — | |||||||||||
| Customer matter (e) | 5.5 | — | 5.5 | — | |||||||||||
| Acquisition and disposition-related costs(f) | — | 2.3 | — | 3.9 | |||||||||||
| Other | (2.1 | ) | 2.3 | (5.9 | ) | 4.7 | |||||||||
| Adjusted EBITDA | $ | 67.2 | $ | 109.8 | $ | 267.3 | $ | 405.1 | |||||||
(a) Amortization represents amortization of intangible assets acquired as part of business acquisitions.
(b) During 2022, impairment of identifiable intangible assets of
(c) Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions to reduce overcapacity, align resources, and restructure certain operations.
(d) Represents one-time or incremental costs required to implement capabilities to exit transition services agreements.
(e) As part of working with the customer, the Company has agreed to make concessions and provide discounts and other consideration to the customer as part of a multi-party solution. The Company’s contribution to the customer is approximately
(f) Acquisition and disposition-related costs include due-diligence legal and advisory fees, retention bonuses and other integration or disposition-related activities.
| FORTREA HOLDINGS INC. | ||||||||||||||||
| NET INCOME TO ADJUSTED NET INCOME RECONCILIATION | ||||||||||||||||
| (dollars and shares in millions, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Adjusted net income (loss): | ||||||||||||||||
| Net income (loss) | $ | (36.0 | ) | $ | 33.4 | $ | (3.4 | ) | $ | 192.9 | ||||||
| Foreign exchange (gain)/loss | (1.9 | ) | 22.0 | (0.9 | ) | 0.9 | ||||||||||
| Amortization (a) | 15.9 | 16.0 | 63.8 | 65.7 | ||||||||||||
| Restructuring and other charges (b) | 7.6 | 2.7 | 26.9 | 30.5 | ||||||||||||
| Stock based compensation | 15.5 | 5.8 | 42.7 | 25.4 | ||||||||||||
| Goodwill and other asset impairments (c) | — | 9.8 | — | 9.8 | ||||||||||||
| Acquisition and disposition-related costs (d) | — | 2.3 | — | 3.9 | ||||||||||||
| One-time spin related costs (e) | 25.2 | — | 31.7 | — | ||||||||||||
| Customer matter (f) | 5.5 | — | 5.5 | — | ||||||||||||
| Other | (2.1 | ) | 2.3 | (5.9 | ) | 4.7 | ||||||||||
| Income tax impact of adjustments (g) | (13.1 | ) | (12.7 | ) | (35.9 | ) | (31.6 | ) | ||||||||
| Adjusted net income (loss) | $ | 16.6 | $ | 81.6 | $ | 124.5 | $ | 302.2 | ||||||||
| Basic shares | 88.8 | 88.8 | 88.8 | 88.8 | ||||||||||||
| Diluted shares | 89.7 | 88.8 | 89.0 | 88.8 | ||||||||||||
| Adjusted basic EPS | $ | 0.19 | $ | 0.92 | $ | 1.40 | $ | 3.40 | ||||||||
| Adjusted diluted EPS | $ | 0.19 | $ | 0.92 | $ | 1.40 | $ | 3.40 | ||||||||
(a) Represents amortization of intangible assets acquired as part of business acquisitions.
(b) Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions to reduce overcapacity, align resources, and restructure certain operations.
(c) During 2022, impairment of identifiable intangible assets of
(d) Acquisition and disposition-related costs include due-diligence legal and advisory fees, retention bonuses and other integration or disposition-related activities.
(e) Represents one-time or incremental costs required to implement capabilities to exit transition services agreements.
(f) As part of working with the customer, the Company has agreed to make concessions and provide discounts and other consideration to the customer as part of a multi-party solution. The Company’s contribution to the customer is approximately
(g) Income tax impact of adjustments calculated based on the tax rate applicable to each item.
| FORTREA HOLDINGS INC. | ||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION | ||||
| (in millions) | ||||
| (unaudited) | ||||
| Year Ended December 31, 2023 | ||||
| Net cash provided by operating activities | $ | 167.4 | ||
| Capital expenditures | (40.3 | ) | ||
| Free cash flow | $ | 127.1 | ||
FAQ
What were Fortrea's revenues for the fourth quarter of 2023?
What was Fortrea's GAAP net loss for the full year 2023?
What was Fortrea's adjusted EBITDA for the full year 2023?
What was Fortrea's fourth-quarter book-to-bill ratio for 2023?
What is Fortrea's revenue target range for the full year 2024?
Who did Fortrea enter into an agreement to divest Endpoint Clinical and Fortrea Patient Access to?
