Exhibit 99.1

 

LOGO

FTI Consulting, Inc.

555 12th Street NW

Washington, DC 20004

+1.202.312.9100

Investor & Media Contact:

Mollie Hawkes

+1.617.747.1791

mollie.hawkes@fticonsulting.com

FTI Consulting Reports Record Third Quarter 2018 Financial Results

 

   

Third Quarter 2018 Revenues of $513.0 Million, Up 14.3% Compared to Prior Year Quarter

 

   

Third Quarter EPS of $1.14, Up 34.1% Compared to $0.85 in Prior Year Quarter; Third Quarter Adjusted EPS of $1.00, Up 20.5% Compared to $0.83 in Prior Year Quarter

 

   

Full Year 2018 Guidance Increased

Washington, D.C., October 25, 2018 — FTI Consulting, Inc. (NYSE: FCN) today released record financial results for the quarter ended September 30, 2018.

Third quarter 2018 revenues of $513.0 million increased $64.1 million, or 14.3%, compared to revenues of $449.0 million in the prior year quarter. The increase in revenues was driven by higher demand across all business segments, with particular strength in the Economic Consulting and Technology segments. Net income of $44.3 million compared to $32.2 million in the prior year quarter. The increase in net income was largely due to higher operating profits and a $6.2 million gain, net of taxes, related to the sale of the Company’s Ringtail e-discovery software and related business.

Adjusted EBITDA of $67.4 million, or 13.1% of revenues, compared to $57.4 million, or 12.8% of revenues, in the prior year quarter. The increase in Adjusted EBITDA was primarily due to higher revenues, which were partially offset by higher compensation and other selling, general and administrative expenses.

Third quarter 2018 earnings per diluted share (“EPS”) of $1.14 compared to $0.85 in the prior year quarter. EPS in the quarter included the aforementioned $6.2 million gain related to the sale of the Company’s Ringtail e-discovery software and related business, which increased EPS by $0.16. This was partially offset by a $0.7 million non-cash interest expense related to the Company’s August 2018 2.0% convertible senior note offering (“2023 Convertible Notes”), which decreased EPS by $0.02. Adjusted EPS of $1.00, which excludes the gain related to the sale and non-cash interest expense, compared to $0.83 in the prior year quarter.

Commenting on these results, Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, said, “We are pleased with another record quarter. These results benefited in part from some short-term factors, but, more fundamentally, they reflect the strategic changes our teams have been driving in our underlying businesses and the success we are having in attracting, developing and promoting our people, all of which have enhanced our ability to collaborate with our clients as they address their most significant challenges and opportunities.”


Cash Position and Capital Allocation

Net cash provided by operating activities of $120.9 million for the quarter ended September 30, 2018 compared to $106.2 million for the quarter ended September 30, 2017. The increase was primarily due to higher cash collections resulting from increased revenues, which was partially offset by an increase in cash paid for salaries and benefits. Cash and cash equivalents of $505.9 million at September 30, 2018 compared to $116.6 million at June 30, 2018 and $158.0 million at September 30, 2017. Total debt, net of cash, of $110.4 million at September 30, 2018 compared to $258.4 million at June 30, 2018 and $307.0 million at September 30, 2017. The improvement was primarily due to an increase in net cash provided by operating activities and $50.3 million in net proceeds from the aforementioned sale of the Company’s Ringtail e-discovery software and related business.

Third Quarter 2018 Segment Results

Corporate Finance & Restructuring

Revenues in the Corporate Finance & Restructuring segment increased $7.3 million, or 5.7%, to $135.4 million in the quarter compared to $128.1 million in the prior year quarter. The increase in revenues was due to higher demand for business transformation and transactions services, which was partially offset by lower success fees. Adjusted Segment EBITDA was $26.8 million, or 19.8% of segment revenues, compared to $26.7 million, or 20.9% of segment revenues, in the prior year quarter. Adjusted Segment EBITDA was consistent with the prior year quarter, as the increase in revenues was offset by higher compensation.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment increased $8.0 million, or 6.8%, to $126.7 million in the quarter compared to $118.6 million in the prior year quarter. The increase in revenues was primarily driven by higher demand for construction solutions, disputes and investigations services, which was partially offset by reduced demand for health solutions services. Adjusted Segment EBITDA was $22.0 million, or 17.3% of segment revenues, compared to $22.5 million, or 19.0% of segment revenues, in the prior year quarter. Adjusted Segment EBITDA was down slightly compared to the prior year quarter, as the increase in revenues was offset by higher compensation.

Economic Consulting

Revenues in the Economic Consulting segment increased $27.4 million, or 24.5%, to $139.2 million in the quarter, compared to $111.8 million in the prior year quarter. The increase in revenues was primarily due to higher demand for antitrust and financial economics services. Adjusted Segment EBITDA was $23.2 million, or 16.7% of segment revenues, compared to $12.1 million, or 10.8% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues with improved utilization.

Technology

Revenues in the Technology segment increased $14.4 million, or 34.1%, to $56.7 million in the quarter compared to $42.3 million in the prior year quarter. The increase in revenues was due to sharply higher demand for merger and acquisition-related “second request” services. Adjusted Segment EBITDA was $11.5


million, or 20.2% of segment revenues, compared to $6.0 million, or 14.1% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues and lower research and development expenses, which was partially offset by higher variable compensation.

Strategic Communications

Revenues in the Strategic Communications segment increased $6.9 million, or 14.3%, to $55.1 million in the quarter compared to $48.2 million in the prior year quarter. The increase in revenues was primarily due to a $3.3 million increase in pass-through revenues and higher project-based revenues. Adjusted Segment EBITDA was $10.8 million, or 19.6% of segment revenues, compared to $8.1 million, or 16.8% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in pass-through expenses and higher variable compensation.

2018 Guidance

The Company is revising its full year 2018 guidance. The Company now estimates that 2018 revenues will range between $1.960 billion and $1.990 billion. This compares to the previous revenue range of $1.910 billion to $1.960 billion. The Company now estimates that 2018 EPS will range between $3.53 and $3.73. This range is inclusive of the fourth quarter 2018 estimated charge related to the early extinguishment of debt from the redemption of all of the Company’s outstanding $300.0 million aggregate principal amount of 6.0% senior notes due 2022, which the Company intends to redeem on November 15, 2018. The Company now estimates that 2018 Adjusted EPS will range between $3.60 and $3.80. This compares to the previous EPS and Adjusted EPS range of $2.90 to $3.30.

Third Quarter 2018 Conference Call

FTI Consulting will host a conference call for analysts and investors to discuss third quarter 2018 financial results at 9:00 a.m. Eastern Time on October 25, 2018. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company’s investor relations website here.

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,600 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $1.81 billion in revenues during fiscal year 2017. More information can be found at www.fticonsulting.com.

Use of Non-GAAP Measures

In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles (GAAP). Certain of these measures are considered non-GAAP financial measuresunder the Securities and Exchange Commission (SEC) rules. Specifically, we have referred to the following non-GAAP measures:

 

   

Total Segment Operating Income

 

   

Adjusted EBITDA


   

Total Adjusted Segment EBITDA

 

   

Adjusted EBITDA Margin

 

   

Adjusted Net Income

 

   

Adjusted Earnings per Diluted Share

 

   

Free Cash Flow

We have included the definitions of Segment Operating Income and Adjusted Segment EBITDA below in order to more fully define the components of certain non-GAAP financial measures presented in this earnings release. We define Segment Operating Income as a segment’s share of Consolidated Operating Income. We define Total Segment Operating Income, which is a non-GAAP financial measure, as the total of Segment Operating Income for all segments, which excludes unallocated corporate expenses. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a segment’s share of Consolidated Operating Income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash.

We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of debt. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of total revenues. We believe that the non-GAAP financial measures, which exclude the effects of remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges, when considered together with our GAAP financial results and GAAP measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that these measures, considered along with corresponding GAAP measures, provide management and investors with additional information for comparison of our operating results with the operating results of other companies.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share (Adjusted EPS), which are non-GAAP financial measures, as net income and earnings per diluted share (EPS), respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt, non-cash interest expense on convertible notes, gain or loss on sale of a business and the adjustment related to the adoption of the 2017 U.S. Tax Cuts and Jobs Act (2017 Tax Act). We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that this non-GAAP financial measure, which excludes the effects of the remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt, non-cash interest expense on convertible notes, gain or loss on sale of a business and the adjustment related to the adoption of the 2017 Tax Act, when considered together with our GAAP financial results, provides management and investors with an additional understanding of our business operating results, including underlying trends.


We define Free Cash Flow as net cash provided by (used in) operating activities less cash payments for purchases of property and equipment. We believe this non-GAAP financial measure, when considered together with our GAAP financial results, provides management and investors with an additional understanding of the Company’s ability to generate cash for ongoing business operations and other capital deployment.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Comprehensive Income. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Safe Harbor Statement

This press release includes forward-looking statementswithin the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions, share repurchases and other matters, business trends and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and estimates will be achieved, and the Company’s actual results may differ materially from our expectations, beliefs and estimates. Further, preliminary results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flows in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer, the mix of the geographic locations where our clients are located or where services are performed, fluctuations in the price per share of our common stock, adverse financial, real estate or other market and general economic conditions, and other future events, which could impact each of our segments differently and could be outside of our control, the pace and timing of the consummation and integration of future acquisitions, the Company’s ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients, new laws and regulations, or changes thereto, including the 2017 Tax Act, and other risks described under the heading “Item 1A, Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2017, filed with the SEC, including the risks set forth under “Risks Related to Our Reportable Segments” and “Risks Related to Our Operations,” the risks described under the heading “Part II, Item 1A, Risk Factors” in the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2018 filed with the SEC, and in the Company’s other filings with the SEC. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.

FINANCIAL TABLES FOLLOW

# # #


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

 

     September 30,     December 31,  
     2018     2017  
Assets    (unaudited)        

Current assets

    

Cash and cash equivalents

   $ 505,867     $ 189,961  

Accounts receivable:

    

Billed receivables

     477,408       390,996  

Unbilled receivables

     366,997       312,569  

Allowances for doubtful accounts and unbilled services

     (221,008     (180,687
  

 

 

   

 

 

 

Accounts receivable, net

     623,397       522,878  

Current portion of notes receivable

     31,318       25,691  

Prepaid expenses and other current assets

     45,931       55,649  
  

 

 

   

 

 

 

Total current assets

     1,206,513       794,179  

Property and equipment, net

     82,476       75,075  

Goodwill

     1,175,929       1,204,803  

Other intangible assets, net

     36,729       44,150  

Notes receivable, net

     89,342       98,105  

Other assets

     37,849       40,929  
  

 

 

   

 

 

 

Total assets

   $ 2,628,838     $ 2,257,241  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities

    

Accounts payable, accrued expenses and other

   $ 116,222     $ 94,873  

Accrued compensation

     286,149       268,513  

Billings in excess of services provided

     38,178       46,942  

Current portion of long-term debt, net

     296,851       —    
  

 

 

   

 

 

 

Total current liabilities

     737,400       410,328  

Long-term debt, net

     263,317       396,284  

Deferred income taxes

     153,045       124,471  

Other liabilities

     123,601       134,187  
  

 

 

   

 

 

 

Total liabilities

     1,277,363       1,065,270  
  

 

 

   

 

 

 

Stockholders’ equity

    

Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding

     —         —    

Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding — 38,356 (2018) and 37,729 (2017)

     384       377  

Additional paid-in capital

     315,720       266,035  

Retained earnings

     1,173,003       1,045,774  

Accumulated other comprehensive loss

     (137,632     (120,215
  

 

 

   

 

 

 

Total stockholders’ equity

     1,351,475       1,191,971  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,628,838     $ 2,257,241  
  

 

 

   

 

 

 


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

 

     Three Months Ended
September 30,
 
     2018     2017  
     (unaudited)  

Revenues

   $ 513,012     $ 448,962  
  

 

 

   

 

 

 

Operating expenses

    

Direct cost of revenues

     336,477       294,851  

Selling, general and administrative expenses

     117,448       104,161  

Amortization of other intangible assets

     1,975       2,882  
  

 

 

   

 

 

 
     455,900       401,894  
  

 

 

   

 

 

 

Operating income

     57,112       47,068  
  

 

 

   

 

 

 

Other income (expense)

    

Interest income and other

     1,400       1,103  

Interest expense

     (7,246     (6,760

Gain on sale of business

     13,031       —    
  

 

 

   

 

 

 
     7,185       (5,657
  

 

 

   

 

 

 

Income before income tax provision

     64,297       41,411  

Income tax provision

     19,964       9,197  
  

 

 

   

 

 

 

Net income

   $ 44,333     $ 32,214  
  

 

 

   

 

 

 

Earnings per common share — basic

   $ 1.19     $ 0.86  
  

 

 

   

 

 

 

Weighted average common shares outstanding — basic

     37,318       37,431  
  

 

 

   

 

 

 

Earnings per common share — diluted

   $ 1.14     $ 0.85  
  

 

 

   

 

 

 

Weighted average common shares outstanding — diluted

     38,756       37,746  
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

    

Foreign currency translation adjustments, net of tax expense of $373 and $0

   $ (4,180   $ 11,234  
  

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax

     (4,180     11,234  
  

 

 

   

 

 

 

Comprehensive income

   $ 40,153     $ 43,448  
  

 

 

   

 

 

 


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

 

     Nine Months Ended
September 30,
 
     2018     2017  
     (unaudited)  

Revenues

   $ 1,522,884     $ 1,340,021  
  

 

 

   

 

 

 

Operating expenses

    

Direct cost of revenues

     987,912       907,994  

Selling, general and administrative expenses

     347,473       319,970  

Special charges

     —         30,074  

Amortization of other intangible assets

     6,297       7,797  
  

 

 

   

 

 

 
     1,341,682       1,265,835  
  

 

 

   

 

 

 

Operating income

     181,202       74,186  
  

 

 

   

 

 

 

Other income (expense)

    

Interest income and other

     2,074       3,300  

Interest expense

     (20,073     (18,811

Gain on sale of business

     13,031       —    
  

 

 

   

 

 

 
     (4,968     (15,511
  

 

 

   

 

 

 

Income before income tax provision

     176,234       58,675  

Income tax provision

     49,347       17,601  
  

 

 

   

 

 

 

Net income

   $ 126,887     $ 41,074  
  

 

 

   

 

 

 

Earnings per common share — basic

   $ 3.43     $ 1.05  
  

 

 

   

 

 

 

Weighted average common shares outstanding — basic

     37,008       39,301  
  

 

 

   

 

 

 

Earnings per common share — diluted

   $ 3.32     $ 1.03  
  

 

 

   

 

 

 

Weighted average common shares outstanding — diluted

     38,214       39,715  
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

    

Foreign currency translation adjustments, net of tax expense of $373 and $0

   $ (17,417   $ 28,778  
  

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax

     (17,417     28,778  
  

 

 

   

 

 

 

Comprehensive income

   $ 109,470     $ 69,852  
  

 

 

   

 

 

 


FTI CONSULTING, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2018     2017     2018     2017  
     (Unaudited)     (Unaudited)  

Net income

   $ 44,333     $ 32,214     $ 126,887     $ 41,074  

Add back:

        

Special charges

     —         —         —         30,074  

Tax impact of special charges (1)

     —         (832     —         (9,935

Remeasurement of acquisition-related contingent consideration

     —         —         —         702  

Tax impact of remeasurement of acquisition-related contingent consideration

     —         —         —         (269

Non-cash interest expense on convertible notes

     938       —         938       —    

Tax impact of non-cash interest expense on convertible notes

     (241     —         (241     —    

Gain on sale of business

     (13,031     —         (13,031     —    

Tax impact of gain on sale of business

     6,798       —         6,798       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 38,797     $ 31,382     $ 121,351     $ 61,646  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share — diluted

   $ 1.14     $ 0.85     $ 3.32     $ 1.03  
  

 

 

   

 

 

   

 

 

   

 

 

 

Add back:

        

Special charges

     —         —         —         0.76  

Tax impact of special charges (1)

     —         (0.02     —         (0.25

Remeasurement of acquisition-related contingent consideration

     —         —         —         0.02  

Tax impact of remeasurement of acquisition-related contingent consideration

     —         —         —         (0.01

Non-cash interest expense on convertible notes

     0.03       —         0.03       —    

Tax impact of non-cash interest expense on convertible notes

     (0.01     —         (0.01     —    

Gain on sale of business

     (0.34     —         (0.34     —    

Tax impact of gain on sale of business

     0.18       —         0.18       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings per common share — diluted

   $ 1.00     $ 0.83     $ 3.18     $ 1.55  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares outstanding — diluted

     38,756       37,746       38,214       39,715  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Tax impact of special charges during the three months ended September 30, 2017 represents the favorable impact of a reduction in foreign net operating losses and related valuation allowances.


FTI CONSULTING, INC.

RECONCILIATION OF EPS GUIDANCE TO ADJUSTED EPS GUIDANCE

 

     Year Ended
December 31,
2018
 
     Low     High  

Guidance on estimated earnings per common share — diluted (GAAP) (1)

   $ 3.53     $ 3.73  

Non-cash interest expense on convertible notes, net of tax

     0.06       0.06  

Gain on sale of business, net of tax

     (0.16     (0.16

Loss on early extinguishment of debt, net of tax

     0.17       0.17  
  

 

 

   

 

 

 

Guidance on estimated adjusted earnings per common share (Non-GAAP) (1)

   $ 3.60     $ 3.80  
  

 

 

   

 

 

 

 

(1)

The forward-looking guidance on estimated 2018 EPS and Adjusted EPS does not reflect other gains and losses (all of which would be excluded from Adjusted EPS) related to the future impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and gain or loss on sale of a business, except for the actual charges taken during the nine months ended September 30, 2018, as these items are dependent on future events that are uncertain and difficult to predict.


FTI CONSULTING, INC.

RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA

(in thousands)

 

Three Months Ended September 30, 2018
(unaudited)

   Corporate
Finance &
Restructuring
     Forensic and
Litigation
Consulting
     Economic
Consulting
     Technology      Strategic
Communications
     Unallocated
Corporate
    Total  

Net income

                    $ 44,333  

Interest income and other

                      (1,400

Interest expense

                      7,246  

Gain on sale of business

                      (13,031

Income tax provision

                      19,964  
                   

 

 

 

Operating income

   $ 25,252      $ 20,625      $ 21,713      $ 7,926      $ 9,402      $ (27,806   $ 57,112  

Depreciation and amortization

     779        1,036        1,468        3,537        568        907       8,295  

Amortization of other intangible assets

     767        309        57        10        832        —         1,975  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 26,798      $ 21,970      $ 23,238      $ 11,473      $ 10,802      $ (26,899   $ 67,382  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Nine Months Ended September 30, 2018
(unaudited)

   Corporate
Finance &
Restructuring
     Forensic and
Litigation
Consulting
     Economic
Consulting
     Technology      Strategic
Communications
     Unallocated
Corporate
    Total  

Net income

                    $ 126,887  

Interest income and other

                      (2,074

Interest expense

                      20,073  

Gain on sale of business

                      (13,031

Income tax provision

                      49,347  
                   

 

 

 

Operating income

   $ 92,504      $ 71,128      $ 53,385      $ 14,486      $ 27,275      $ (77,576   $ 181,202  

Depreciation and amortization

     2,534        3,195        4,209        10,141        1,747        2,722       24,548  

Amortization of other intangible assets

     2,341        1,019        252        86        2,599        —         6,297  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 97,379      $ 75,342      $ 57,846      $ 24,713      $ 31,621      $ (74,854   $ 212,047  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Three Months Ended September 30, 2017
(unaudited)

   Corporate
Finance &
Restructuring
     Forensic and
Litigation
Consulting
     Economic
Consulting
     Technology      Strategic
Communications
     Unallocated
Corporate
    Total  

Net income

                    $ 32,214  

Interest income and other

                      (1,103

Interest expense

                      6,760  

Income tax provision

                      9,197  
                   

 

 

 

Operating income

   $ 24,706      $ 21,127      $ 10,524      $ 3,002      $ 6,536      $ (18,827   $ 47,068  

Depreciation and amortization

     811        1,012        1,383        2,813        584        867       7,470  

Amortization of other intangible assets

     1,217        400        154        158        953        —         2,882  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 26,734      $ 22,539      $ 12,061      $ 5,973      $ 8,073      $ (17,960   $ 57,420  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 


FTI CONSULTING, INC.

RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA

(in thousands)

 

Nine Months Ended September 30, 2017
(unaudited)

   Corporate
Finance &
Restructuring
     Forensic and
Litigation
Consulting
     Economic
Consulting
     Technology      Strategic
Communications
     Unallocated
Corporate
    Total  

Net income

                    $ 41,074  

Interest income and other

                      (3,300

Interest expense

                      18,811  

Income tax provision

                      17,601  
                   

 

 

 

Operating income

   $ 48,902      $ 34,234      $ 37,034      $ 5,874      $ 8,308      $ (60,166   $ 74,186  

Depreciation and amortization

     2,360        3,217        4,273        9,020        1,732        3,166       23,768  

Amortization of other intangible assets

     2,796        1,196        463        477        2,865        —         7,797  

Special charges

     3,049        10,445        5,910        3,827        3,599        3,244       30,074  

Remeasurement of acquisition-related contingent consideration

     —          —          —          —          702        —         702  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 57,107      $ 49,092      $ 47,680      $ 19,198      $ 17,206      $ (53,756   $ 136,527  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 


FTI CONSULTING, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

 

     Segment
Revenues
     Adjusted
EBITDA
    Adjusted
EBITDA

Margin
    Utilization      Average
Billable
Rate
     Revenue-
Generating
Headcount
 
     (in thousands)                         (at period end)  

Three Months Ended September 30, 2018

(unaudited)

               

Corporate Finance & Restructuring

   $ 135,418      $ 26,798       19.8     65%      $ 414        926  

Forensic and Litigation Consulting

     126,684        21,970       17.3     63%      $ 322        1,129  

Economic Consulting

     139,166        23,238       16.7     71%      $ 540        705  

Technology (1)

     56,692        11,473       20.2     N/M        N/M        303  

Strategic Communications (1)

     55,052        10,802       19.6     N/M        N/M        652  
  

 

 

    

 

 

   

 

 

         

 

 

 
   $ 513,012      $ 94,281       18.4           3,715  
  

 

 

    

 

 

   

 

 

         

 

 

 

Unallocated Corporate

        (26,899          
     

 

 

           

Adjusted EBITDA

      $ 67,382       13.1        
     

 

 

           

Nine Months Ended September 30, 2018

(unaudited)

               

Corporate Finance & Restructuring

   $ 419,695      $ 97,379       23.2     67%      $ 425        926  

Forensic and Litigation Consulting

     388,250        75,342       19.4     65%      $ 325        1,129  

Economic Consulting

     405,583        57,846       14.3     70%      $ 515        705  

Technology (1)

     144,035        24,713       17.2     N/M        N/M        303  

Strategic Communications (1)

     165,321        31,621       19.1     N/M        N/M        652  
  

 

 

    

 

 

   

 

 

         

 

 

 
   $ 1,522,884      $ 286,901       18.8           3,715  
  

 

 

    

 

 

   

 

 

         

 

 

 

Unallocated Corporate

        (74,854          
     

 

 

           

Adjusted EBITDA

      $ 212,047       13.9        
     

 

 

           

Three Months Ended September 30, 2017

(unaudited)

               

Corporate Finance & Restructuring

   $ 128,121      $ 26,734       20.9     64%      $ 390        934  

Forensic and Litigation Consulting

     118,639        22,539       19.0     63%      $ 326        1,080  

Economic Consulting

     111,753        12,061       10.8     62%      $ 520        688  

Technology (1)

     42,282        5,973       14.1     N/M        N/M        291  

Strategic Communications (1)

     48,167        8,073       16.8     N/M        N/M        626  
  

 

 

    

 

 

   

 

 

         

 

 

 
   $ 448,962      $ 75,380       16.8           3,619  
  

 

 

    

 

 

   

 

 

         

 

 

 

Unallocated Corporate

        (17,960          
     

 

 

           

Adjusted EBITDA

      $ 57,420       12.8        
     

 

 

           

Nine Months Ended September 30, 2017

(unaudited)

               

Corporate Finance & Restructuring

   $ 351,509      $ 57,107       16.2     61%      $ 383        934  

Forensic and Litigation Consulting

     341,455        49,092       14.4     61%      $ 318        1,080  

Economic Consulting

     374,978        47,680       12.7     68%      $ 519        688  

Technology (1)

     133,935        19,198       14.3     N/M        N/M        291  

Strategic Communications (1)

     138,144        17,206       12.5     N/M        N/M        626  
  

 

 

    

 

 

   

 

 

         

 

 

 
   $ 1,340,021      $ 190,283       14.2           3,619  
  

 

 

    

 

 

   

 

 

         

 

 

 

Unallocated Corporate

        (53,756          
     

 

 

           

Adjusted EBITDA

      $ 136,527       10.2        
     

 

 

           

N/M Not meaningful

(1) 

The majority of the Technology and Strategic Communications segments’ revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Nine Months Ended
September 30,
 
     2018     2017  
     (unaudited)  

Operating activities

    

Net income

   $ 126,887     $ 41,074  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     24,548       23,768  

Amortization and impairment of other intangible assets

     6,297       7,797  

Acquisition-related contingent consideration

     355       1,547  

Provision for doubtful accounts

     11,951       10,510  

Non-cash share-based compensation

     12,219       12,888  

Gain on sale of business

     (13,031     —    

Amortization of debt discount and issuance costs

     2,604       1,489  

Other

     751       297  

Changes in operating assets and liabilities, net of effects from acquisitions:

    

Accounts receivable, billed and unbilled

     (130,369     (72,640

Notes receivable

     2,659       8,449  

Prepaid expenses and other assets

     (174     935  

Accounts payable, accrued expenses and other

     16,150       16,823  

Income taxes

     28,922       8,876  

Accrued compensation

     7,207       (34,123

Billings in excess of services provided

     (10,704     (3,657
  

 

 

   

 

 

 

Net cash provided by operating activities

     86,272       24,033  
  

 

 

   

 

 

 

Investing activities

    

Proceeds from sale of business

     50,283       —    

Payments for acquisition of businesses, net of cash received

     —         (8,929

Purchases of property and equipment

     (27,841     (20,021

Other

     741       74  
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     23,183       (28,876
  

 

 

   

 

 

 

Financing activities

    

Borrowings (repayments) under revolving line of credit, net

     (100,000     95,000  

Proceeds from issuance of convertible notes

     316,250       —    

Payments of debt issue costs

     (8,048     —    

Deposits

     2,327       3,585  

Purchase and retirement of common stock

     (29,220     (155,285

Net issuance of common stock under equity compensation plans

     31,241       (2,354

Payments for acquisition-related contingent consideration

     (3,029     (79
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     209,521       (59,133
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (3,070     5,779  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     315,906       (58,197

Cash and cash equivalents, beginning of period

     189,961       216,158  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 505,867     $ 157,961  
  

 

 

   

 

 

 

View differences made from one to another to evaluate Fti Consulting Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Fti Consulting Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account