- Third Quarter 2024 Revenues of $926.0 Million, Up 4% Compared
to $893.3 Million in Prior Year Quarter
- Third Quarter 2024 EPS of $1.85, Down 21% Compared to $2.34 in
Prior Year Quarter
- Company Updates Revenue and EPS Guidance Ranges for Full Year
2024
FTI Consulting, Inc. (NYSE: FCN) today released financial
results for the third quarter ended September 30, 2024.
Third quarter 2024 revenues of $926.0 million increased $32.8
million, or 3.7%, compared to revenues of $893.3 million in the
prior year quarter. The increase in revenues was primarily due to
higher demand and realized bill rates in the Economic Consulting
segment and higher demand in the Technology segment, which was
partially offset by lower demand and realized bill rates in the
Corporate Finance & Restructuring segment. Net income of $66.5
million compared to $83.3 million in the prior year quarter. The
decrease in net income was primarily due to an increase in
compensation and selling, general and administrative (“SG&A”)
expenses and a foreign currency (“FX”) remeasurement loss compared
to a gain in the prior year quarter, which more than offset the
increase in revenues compared to the prior year quarter. Adjusted
EBITDA of $102.9 million, or 11.1% of revenues, compared to $118.7
million, or 13.3% of revenues, in the prior year quarter. Third
quarter 2024 earnings per diluted share (“EPS”) of $1.85 compared
to $2.34 in the prior year quarter.
Steven H. Gunby, President and Chief Executive Officer of FTI
Consulting, commented, "Though this is the third highest quarterly
revenues we’ve ever had, the revenue this quarter fell below last
quarter and our expectations. This shortfall was driven by a
combination of market conditions and a few idiosyncratic factors.
As we’ve talked about a number of times, though there are lots of
factors that can cause quarterly variations in our business,
long-term success in professional services is driven almost
entirely by strengthening your positions around the world and your
ability to attract, retain and develop A+ talent. Our ongoing
progress in these areas continues to leave me excited about the
powerful multiyear growth trajectory this company is on."
Cash Position and Capital Allocation
Net cash provided by operating activities of $219.4 million for
the quarter ended September 30, 2024 compared to net cash provided
by operating activities of $106.7 million for the prior year
quarter. The year-over-year increase in net cash provided by
operating activities was largely due to an increase in cash
collections.
Cash and cash equivalents of $386.3 million at September 30,
2024 compared to $201.1 million at September 30, 2023 and $226.4
million at June 30, 2024. Total debt, net of cash and short-term
investments, of ($386.3) million at September 30, 2024 compared to
$59.4 million at September 30, 2023 and ($166.4) million at June
30, 2024. The sequential decrease in total debt, net of cash and
short-term investments, was primarily due to an increase in net
cash provided by operating activities.
There were no share repurchases during the quarter ended
September 30, 2024. As of September 30, 2024, approximately
$460.7 million remained available for common stock repurchases
under the Company’s stock repurchase program.
Third Quarter
2024 Segment Results
Corporate Finance & RestructuringRevenues
in the Corporate Finance & Restructuring segment decreased $6.0
million, or 1.7%, to $341.5 million in the quarter compared to
$347.6 million in the prior year quarter. The decrease in revenues
was primarily due to lower demand for business transformation &
strategy services, which more than offset an increase in demand for
transactions services. Adjusted Segment EBITDA of $57.9 million, or
17.0% of segment revenues, compared to $68.1 million, or 19.6% of
segment revenues, in the prior year quarter. The decrease in
Adjusted Segment EBITDA was primarily due to lower revenues and
higher SG&A expenses compared to the prior year quarter.
Forensic and Litigation ConsultingRevenues in
the Forensic and Litigation Consulting segment increased $2.6
million, or 1.6%, to $168.8 million in the quarter compared to
$166.1 million in the prior year quarter. Acquisition-related
revenues contributed $1.9 million in the quarter. Excluding
acquisition-related revenues, the increase in revenues was
primarily due to higher construction solutions and disputes
revenues, which was partially offset by lower data & analytics
and investigations revenues. Adjusted Segment EBITDA of $20.0
million, or 11.8% of segment revenues, compared to $21.5 million,
or 12.9% of segment revenues, in the prior year quarter. The
decrease in Adjusted Segment EBITDA was primarily due to higher
compensation and SG&A expenses, which more than offset the
increase in revenues compared to the prior year quarter.
Economic ConsultingRevenues in the Economic
Consulting segment increased $28.2 million, or 14.5%, to $222.0
million in the quarter compared to $193.9 million in the prior year
quarter. The increase in revenues was primarily due to higher
demand for merger and acquisition (“M&A”)-related antitrust
services, which was partially offset by lower demand for
non-M&A-related antitrust services. Adjusted Segment EBITDA of
$35.2 million, or 15.9% of segment revenues, compared to $27.8
million, or 14.3% 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
compensation, which includes the impact of a 3.2% increase in
billable headcount, compared to the prior year quarter.
TechnologyRevenues in the Technology segment
increased $11.5 million, or 11.7%, to $110.4 million in the quarter
compared to $98.9 million in the prior year quarter. The increase
in revenues was primarily due to an increase in demand for
M&A-related “second request,” litigation, and information
governance, privacy & security services, which was partially
offset by lower demand for investigations services. Adjusted
Segment EBITDA of $16.5 million, or 14.9% of segment revenues,
compared to $14.9 million, or 15.0% 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 compensation, which includes the impact of a 14.1%
increase in billable headcount, as well as an increase in SG&A
expenses compared to the prior year quarter.
Strategic CommunicationsRevenues in the
Strategic Communications segment decreased $3.5 million, or 4.1%,
to $83.3 million in the quarter compared to $86.8 million in the
prior year quarter. Excluding the estimated positive impact of FX,
revenues decreased $4.4 million or 5.1%. The decrease in revenues
was primarily due to a $3.1 million decline in pass-through
revenues. Adjusted Segment EBITDA of $12.1 million, or 14.6% of
segment revenues, compared to $13.5 million, or 15.5% of segment
revenues, in the prior year quarter. The decrease in Adjusted
Segment EBITDA was primarily due to lower revenues and higher
SG&A expenses compared to the prior year quarter.
2024 GuidanceThe Company is updating its full
year 2024 guidance ranges for revenues and EPS. The Company now
estimates that revenues for full year 2024 will range between
$3.700 billion and $3.750 billion, which compares to the prior
range of between $3.700 billion and $3.790 billion. The Company now
estimates EPS for full year 2024 will range between $7.90 and
$8.35, which compares to the prior range of between $8.10 and
$8.60. The Company does not currently expect Adjusted EPS to differ
from EPS.
Third Quarter
2024 Conference CallFTI
Consulting will host a conference call for analysts and investors
to discuss third quarter 2024 financial results at 9:00 a.m.
Eastern Time on Thursday, October 24, 2024. 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 ConsultingFTI 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 8,300 employees located in 34
countries and territories, FTI Consulting professionals work
closely with clients to anticipate, illuminate and overcome complex
business challenges and make the most of opportunities. In certain
jurisdictions, FTI Consulting’s services are provided through
distinct legal entities that are separately capitalized and
independently managed. The Company generated $3.49 billion in
revenues during fiscal year 2023. More information can be found at
www.fticonsulting.com.
Non-GAAP Financial MeasuresIn 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 in the
United States ("GAAP"). Certain of these financial measures are
considered not in conformity with GAAP ("non-GAAP financial
measures") under the United States Securities and Exchange
Commission ("SEC") rules. Specifically, we have referred to the
following non-GAAP financial measures:
- Total Segment
Operating Income
- Adjusted EBITDA
- Total Adjusted
Segment EBITDA
- Adjusted EBITDA
Margin
- Adjusted Net
Income
- Adjusted Earnings
per Diluted Share
We have included the definitions of Segment Operating Income and
Adjusted Segment EBITDA, which are GAAP financial measures, below
in order to more fully define the components of certain non-GAAP
financial measures presented in this press 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, gain
or loss on sale of a business and losses on early extinguishment of
debt. We believe that these non-GAAP financial measures, when
considered together with our GAAP financial results and GAAP
financial 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 non-GAAP
financial measures, considered along with corresponding GAAP
financial measures, provide management and investors with
additional information for comparison of our operating results with
the operating results of other companies. We define Adjusted EBITDA
Margin, which is a non-GAAP financial measure, as Adjusted EBITDA
as a percentage of total revenues.
We define Adjusted Net Income and Adjusted Earnings per Diluted
Share ("Adjusted EPS"), which are non-GAAP financial measures, as
net income and 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 and the gain or loss on sale of a business. 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 these non-GAAP financial
measures, when considered together with our GAAP financial results
and GAAP financial measures, provide management and investors with
an additional understanding of our business operating results,
including underlying trends.
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 Condensed
Consolidated Statements of Comprehensive Income and Condensed
Consolidated Statements of Cash Flows. Reconciliations of these
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 statements" within
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, initiatives,
projections, prospects, policies, processes and practices,
objectives, goals, commitments, strategies, future events, future
revenues, future results and performance, expectations, plans or
intentions relating to acquisitions, share repurchases and other
matters, business trends, new or changes to laws and regulations,
including U.S. and foreign tax laws, environmental, social and
governance ("ESG")-related issues, climate change-related matters,
scientific and technological developments, including relating to
new and emerging technologies, such as Artificial Intelligence and
machine learning, 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," "commits," "aspires," "forecasts," "future,"
"goal," "seeks" 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 plans, expectations,
intentions, aspirations, beliefs, goals, estimates, forecasts and
projections will result or be achieved. Our actual financial
results, performance or achievements and outcomes could differ
materially from those expressed in, or implied by, any
forward-looking statements. Further, unaudited quarterly 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; the impact of public health crises and related events
that are beyond our control, which could affect our segments,
practices and the geographic regions in which we conduct business
differently and adversely; and other future events, which could
impact each of our segments, practices and the geographic regions
in which we conduct business 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; 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, 2023 filed with the SEC
on February 22, 2024 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, |
|
|
|
2024 |
|
2023 |
| |
|
(Unaudited) |
|
|
| Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
386,344 |
|
|
$ |
303,222 |
|
|
Accounts receivable, net |
|
|
1,184,475 |
|
|
|
1,102,142 |
|
|
Current portion of notes receivable |
|
|
44,836 |
|
|
|
30,997 |
|
|
Prepaid expenses and other current assets |
|
|
100,318 |
|
|
|
119,092 |
|
|
Total current assets |
|
|
1,715,973 |
|
|
|
1,555,453 |
|
|
Property and equipment, net |
|
|
150,379 |
|
|
|
159,662 |
|
|
Operating lease assets |
|
|
206,945 |
|
|
|
208,910 |
|
|
Goodwill |
|
|
1,240,280 |
|
|
|
1,234,569 |
|
|
Intangible assets, net |
|
|
17,523 |
|
|
|
18,285 |
|
|
Notes receivable, net |
|
|
108,450 |
|
|
|
75,431 |
|
|
Other assets |
|
|
77,630 |
|
|
|
73,568 |
|
|
Total assets |
|
$ |
3,517,180 |
|
|
$ |
3,325,878 |
|
| Liabilities and
Stockholders’ Equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable, accrued expenses and other |
|
$ |
201,806 |
|
|
$ |
223,758 |
|
|
Accrued compensation |
|
|
556,606 |
|
|
|
601,074 |
|
|
Billings in excess of services provided |
|
|
64,764 |
|
|
|
67,937 |
|
|
Total current liabilities |
|
|
823,176 |
|
|
|
892,769 |
|
|
Noncurrent operating lease liabilities |
|
|
216,992 |
|
|
|
223,774 |
|
|
Deferred income taxes |
|
|
138,562 |
|
|
|
140,976 |
|
|
Other liabilities |
|
|
86,251 |
|
|
|
86,939 |
|
|
Total liabilities |
|
|
1,264,981 |
|
|
|
1,344,458 |
|
|
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 — 35,949 (2024) and 35,521 (2023) |
|
|
360 |
|
|
|
355 |
|
|
Additional paid-in capital |
|
|
41,555 |
|
|
|
16,760 |
|
|
Retained earnings |
|
|
2,345,143 |
|
|
|
2,114,765 |
|
|
Accumulated other comprehensive loss |
|
|
(134,859 |
) |
|
|
(150,460 |
) |
|
Total stockholders’ equity |
|
|
2,252,199 |
|
|
|
1,981,420 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
3,517,180 |
|
|
$ |
3,325,878 |
|
|
|
| |
|
FTI CONSULTING, INC.CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(in thousands,
except per share data) |
| |
| |
Three Months EndedSeptember
30, |
| |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Unaudited) |
|
Revenues |
$ |
926,019 |
|
|
$ |
893,261 |
|
|
Operating expenses |
|
|
|
|
Direct cost of revenues |
|
628,079 |
|
|
|
598,804 |
|
|
Selling, general and administrative expenses |
|
205,995 |
|
|
|
186,088 |
|
|
Amortization of intangible assets |
|
1,053 |
|
|
|
1,340 |
|
| |
|
835,127 |
|
|
|
786,232 |
|
|
Operating income |
|
90,892 |
|
|
|
107,029 |
|
|
Other income (expense) |
|
|
|
|
Interest income and other |
|
(909 |
) |
|
|
5,147 |
|
|
Interest expense |
|
(1,197 |
) |
|
|
(4,474 |
) |
| |
|
(2,106 |
) |
|
|
673 |
|
|
Income before income tax provision |
|
88,786 |
|
|
|
107,702 |
|
|
Income tax provision |
|
22,320 |
|
|
|
24,385 |
|
|
Net income |
$ |
66,466 |
|
|
$ |
83,317 |
|
|
Earnings per common share ― basic |
$ |
1.88 |
|
|
$ |
2.44 |
|
|
Weighted average common shares outstanding ―
basic |
|
35,315 |
|
|
|
34,128 |
|
|
Earnings per common share ― diluted |
$ |
1.85 |
|
|
$ |
2.34 |
|
|
Weighted average common shares outstanding ―
diluted |
|
35,892 |
|
|
|
35,656 |
|
|
Other comprehensive income (loss), net of tax |
|
|
|
|
Foreign currency translation adjustments, net of tax expense of
$— |
$ |
28,752 |
|
|
$ |
(18,228 |
) |
|
Total other comprehensive income (loss), net of
tax |
|
28,752 |
|
|
|
(18,228 |
) |
|
Comprehensive income |
$ |
95,218 |
|
|
$ |
65,089 |
|
| |
| |
|
FTI CONSULTING, INC.CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(in thousands,
except per share data) |
| |
| |
Nine Months EndedSeptember
30, |
| |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Unaudited) |
|
Revenues |
$ |
2,803,728 |
|
|
$ |
2,564,558 |
|
|
Operating expenses |
|
|
|
|
Direct cost of revenues |
|
1,891,862 |
|
|
|
1,740,407 |
|
|
Selling, general and administrative expenses |
|
614,100 |
|
|
|
556,672 |
|
|
Amortization of intangible assets |
|
3,149 |
|
|
|
4,939 |
|
| |
|
2,509,111 |
|
|
|
2,302,018 |
|
|
Operating income |
|
294,617 |
|
|
|
262,540 |
|
|
Other income (expense) |
|
|
|
|
Interest income and other |
|
2,581 |
|
|
|
3,221 |
|
|
Interest expense |
|
(6,235 |
) |
|
|
(10,435 |
) |
| |
|
(3,654 |
) |
|
|
(7,214 |
) |
|
Income before income tax provision |
|
290,963 |
|
|
|
255,326 |
|
|
Income tax provision |
|
60,585 |
|
|
|
62,067 |
|
|
Net income |
$ |
230,378 |
|
|
$ |
193,259 |
|
|
Earnings per common share ― basic |
$ |
6.55 |
|
|
$ |
5.75 |
|
|
Weighted average common shares outstanding ―
basic |
|
35,172 |
|
|
|
33,599 |
|
|
Earnings per common share ― diluted |
$ |
6.43 |
|
|
$ |
5.43 |
|
|
Weighted average common shares outstanding ―
diluted |
|
35,842 |
|
|
|
35,599 |
|
|
Other comprehensive income (loss), net of tax |
|
|
|
|
Foreign currency translation adjustments, net of tax expense of
$— |
$ |
15,601 |
|
|
$ |
(1,982 |
) |
|
Total other comprehensive income (loss), net of
tax |
|
15,601 |
|
|
|
(1,982 |
) |
|
Comprehensive income |
$ |
245,979 |
|
|
$ |
191,277 |
|
| |
| |
|
FTI CONSULTING, INC.RECONCILIATION OF NET
INCOME AND OPERATING INCOME TO ADJUSTED EBITDA(in
thousands) |
| |
|
Three Months Ended September 30,
2024(Unaudited) |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
66,466 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
909 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,197 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,320 |
|
Operating income |
|
$ |
54,503 |
|
$ |
18,118 |
|
$ |
33,880 |
|
$ |
12,524 |
|
$ |
11,188 |
|
$ |
(39,321 |
) |
|
$ |
90,892 |
|
Depreciation and amortization |
|
|
2,631 |
|
|
1,644 |
|
|
1,364 |
|
|
3,941 |
|
|
897 |
|
|
526 |
|
|
|
11,003 |
|
Amortization of intangible assets |
|
|
785 |
|
|
229 |
|
|
— |
|
|
— |
|
|
39 |
|
|
— |
|
|
|
1,053 |
| Adjusted
EBITDA |
|
$ |
57,919 |
|
$ |
19,991 |
|
$ |
35,244 |
|
$ |
16,465 |
|
$ |
12,124 |
|
$ |
(38,795 |
) |
|
$ |
102,948 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September 30,
2024(Unaudited) |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
230,378 |
|
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,581 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,235 |
|
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,585 |
|
|
Operating income |
|
$ |
189,615 |
|
$ |
63,185 |
|
$ |
89,697 |
|
$ |
40,600 |
|
$ |
33,256 |
|
$ |
(121,736 |
) |
|
$ |
294,617 |
|
|
Depreciation and amortization |
|
|
7,664 |
|
|
4,900 |
|
|
3,993 |
|
|
11,376 |
|
|
2,697 |
|
|
1,546 |
|
|
|
32,176 |
|
|
Amortization of intangible assets |
|
|
2,332 |
|
|
609 |
|
|
— |
|
|
— |
|
|
208 |
|
|
— |
|
|
|
3,149 |
|
| Adjusted
EBITDA |
|
$ |
199,611 |
|
$ |
68,694 |
|
$ |
93,690 |
|
$ |
51,976 |
|
$ |
36,161 |
|
$ |
(120,190 |
) |
|
$ |
329,942 |
|
| |
| |
|
FTI CONSULTING, INC.RECONCILIATION OF NET
INCOME AND OPERATING INCOME TO ADJUSTED EBITDA(in
thousands) |
| |
|
Three Months Ended September 30,
2023(Unaudited) |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
83,317 |
|
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,147 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,474 |
|
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,385 |
|
|
Operating income |
|
$ |
64,633 |
|
$ |
19,708 |
|
$ |
26,293 |
|
$ |
11,481 |
|
$ |
12,503 |
|
$ |
(27,589 |
) |
|
$ |
107,029 |
|
|
Depreciation and amortization |
|
|
2,414 |
|
|
1,548 |
|
|
1,463 |
|
|
3,392 |
|
|
882 |
|
|
680 |
|
|
|
10,379 |
|
|
Amortization of intangible assets |
|
|
1,047 |
|
|
224 |
|
|
— |
|
|
— |
|
|
69 |
|
|
— |
|
|
|
1,340 |
|
| Adjusted
EBITDA |
|
$ |
68,094 |
|
$ |
21,480 |
|
$ |
27,756 |
|
$ |
14,873 |
|
$ |
13,454 |
|
$ |
(26,909 |
) |
|
$ |
118,748 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2023(Unaudited) |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
193,259 |
|
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,221 |
) |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,435 |
|
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,067 |
|
| Operating
income |
|
$ |
154,724 |
|
$ |
63,881 |
|
$ |
73,017 |
|
$ |
39,803 |
|
$ |
32,464 |
|
$ |
(101,349 |
) |
|
$ |
262,540 |
|
|
Depreciation and amortization |
|
|
6,657 |
|
|
4,349 |
|
|
4,455 |
|
|
10,523 |
|
|
2,570 |
|
|
1,372 |
|
|
|
29,926 |
|
|
Amortization of intangible assets |
|
|
4,069 |
|
|
631 |
|
|
— |
|
|
— |
|
|
239 |
|
|
— |
|
|
|
4,939 |
|
| Adjusted
EBITDA |
|
$ |
165,450 |
|
$ |
68,861 |
|
$ |
77,472 |
|
$ |
50,326 |
|
$ |
35,273 |
|
$ |
(99,977 |
) |
|
$ |
297,405 |
|
| |
| |
|
FTI CONSULTING, INC.OPERATING RESULTS BY
BUSINESS SEGMENT |
| |
| |
SegmentRevenues |
|
AdjustedEBITDA |
|
Adjusted EBITDAMargin |
|
Utilization |
|
Average
BillableRate |
|
Revenue-GeneratingHeadcount |
| |
(in thousands) |
|
|
|
|
|
|
|
(at period end) |
| Three Months Ended
September 30, 2024 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
341,512 |
|
$ |
57,919 |
|
|
17.0 |
% |
|
57 |
% |
|
$ |
503 |
|
2,295 |
|
Forensic and Litigation Consulting |
|
168,778 |
|
|
19,991 |
|
|
11.8 |
% |
|
55 |
% |
|
$ |
388 |
|
1,529 |
|
Economic Consulting |
|
222,033 |
|
|
35,244 |
|
|
15.9 |
% |
|
65 |
% |
|
$ |
598 |
|
1,120 |
|
Technology (1) |
|
110,404 |
|
|
16,465 |
|
|
14.9 |
% |
|
N/M |
|
N/M |
|
718 |
|
Strategic Communications (1) |
|
83,292 |
|
|
12,124 |
|
|
14.6 |
% |
|
N/M |
|
N/M |
|
997 |
| |
$ |
926,019 |
|
$ |
141,743 |
|
|
15.3 |
% |
|
|
|
|
|
6,659 |
|
Unallocated Corporate |
|
|
|
(38,795 |
) |
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
|
$ |
102,948 |
|
|
11.1 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended
September 30, 2024(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
1,055,493 |
|
$ |
199,611 |
|
|
18.9 |
% |
|
60 |
% |
|
$ |
505 |
|
2,295 |
|
Forensic and Litigation Consulting |
|
514,348 |
|
|
68,694 |
|
|
13.4 |
% |
|
57 |
% |
|
$ |
395 |
|
1,529 |
|
Economic Consulting |
|
657,454 |
|
|
93,690 |
|
|
14.3 |
% |
|
68 |
% |
|
$ |
577 |
|
1,120 |
|
Technology (1) |
|
326,992 |
|
|
51,976 |
|
|
15.9 |
% |
|
N/M |
|
N/M |
|
718 |
|
Strategic Communications (1) |
|
249,441 |
|
|
36,161 |
|
|
14.5 |
% |
|
N/M |
|
N/M |
|
997 |
| |
$ |
2,803,728 |
|
$ |
450,132 |
|
|
16.1 |
% |
|
|
|
|
|
6,659 |
|
Unallocated Corporate |
|
|
|
(120,190 |
) |
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
|
$ |
329,942 |
|
|
11.8 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended
September 30, 2023 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
347,560 |
|
$ |
68,094 |
|
|
19.6 |
% |
|
60 |
% |
|
$ |
514 |
|
2,251 |
|
Forensic and Litigation Consulting |
|
166,137 |
|
|
21,480 |
|
|
12.9 |
% |
|
57 |
% |
|
$ |
388 |
|
1,503 |
|
Economic Consulting |
|
193,866 |
|
|
27,756 |
|
|
14.3 |
% |
|
65 |
% |
|
$ |
559 |
|
1,085 |
|
Technology (1) |
|
98,860 |
|
|
14,873 |
|
|
15.0 |
% |
|
N/M |
|
N/M |
|
629 |
|
Strategic Communications (1) |
|
86,838 |
|
|
13,454 |
|
|
15.5 |
% |
|
N/M |
|
N/M |
|
1,010 |
| |
$ |
893,261 |
|
$ |
145,657 |
|
|
16.3 |
% |
|
|
|
|
|
6,478 |
|
Unallocated Corporate |
|
|
|
(26,909 |
) |
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
|
$ |
118,748 |
|
|
13.3 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Nine Months Ended
September 30, 2023(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
981,124 |
|
$ |
165,450 |
|
|
16.9 |
% |
|
59 |
% |
|
$ |
492 |
|
2,251 |
|
Forensic and Litigation Consulting |
|
488,636 |
|
|
68,861 |
|
|
14.1 |
% |
|
58 |
% |
|
$ |
384 |
|
1,503 |
|
Economic Consulting |
|
565,283 |
|
|
77,472 |
|
|
13.7 |
% |
|
67 |
% |
|
$ |
533 |
|
1,085 |
|
Technology (1) |
|
286,922 |
|
|
50,326 |
|
|
17.5 |
% |
|
N/M |
|
N/M |
|
629 |
|
Strategic Communications (1) |
|
242,593 |
|
|
35,273 |
|
|
14.5 |
% |
|
N/M |
|
N/M |
|
1,010 |
| |
$ |
2,564,558 |
|
$ |
397,382 |
|
|
15.5 |
% |
|
|
|
|
|
6,478 |
|
Unallocated Corporate |
|
|
|
(99,977 |
) |
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
|
$ |
297,405 |
|
|
11.6 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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 EndedSeptember
30, |
| |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(Unaudited) |
| Operating
activities |
|
|
|
| Net income |
$ |
230,378 |
|
|
$ |
193,259 |
|
| Adjustments to reconcile net
income to net cash provided by (used in) operating activities: |
|
|
|
|
Depreciation and amortization |
|
32,176 |
|
|
|
29,926 |
|
|
Amortization of intangible assets |
|
3,149 |
|
|
|
4,939 |
|
|
Provision for expected credit losses |
|
28,376 |
|
|
|
21,347 |
|
|
Share-based compensation |
|
27,975 |
|
|
|
21,412 |
|
|
Deferred income taxes |
|
(3,768 |
) |
|
|
(4,602 |
) |
|
Acquisition-related contingent consideration |
|
(1,025 |
) |
|
|
4,263 |
|
|
Amortization of debt issuance costs and other |
|
710 |
|
|
|
1,722 |
|
|
Changes in operating assets and liabilities, net of effects from
acquisitions: |
|
|
|
|
Accounts receivable, billed and unbilled |
|
(100,004 |
) |
|
|
(333,713 |
) |
|
Notes receivable |
|
(45,589 |
) |
|
|
(22,600 |
) |
|
Prepaid expenses and other assets |
|
(8,604 |
) |
|
|
(3,252 |
) |
|
Accounts payable, accrued expenses and other |
|
(2,590 |
) |
|
|
(8,895 |
) |
|
Income taxes |
|
(20,202 |
) |
|
|
(347 |
) |
|
Accrued compensation |
|
(57,691 |
) |
|
|
(65,394 |
) |
|
Billings in excess of services provided |
|
(3,509 |
) |
|
|
3,410 |
|
|
Net cash provided by (used in) operating
activities |
|
79,782 |
|
|
|
(158,525 |
) |
| Investing
activities |
|
|
|
|
Purchases of property and equipment and other |
|
(21,729 |
) |
|
|
(43,224 |
) |
|
Maturity of short-term investment |
|
25,246 |
|
|
|
— |
|
|
Purchase of short-term investment |
|
— |
|
|
|
(24,356 |
) |
|
Net cash provided by (used in) investing
activities |
|
3,517 |
|
|
|
(67,580 |
) |
| Financing
activities |
|
|
|
|
Borrowings under revolving line of credit |
|
600,000 |
|
|
|
725,000 |
|
|
Repayments under revolving line of credit |
|
(600,000 |
) |
|
|
(440,000 |
) |
|
Repayment of convertible notes |
|
— |
|
|
|
(315,763 |
) |
|
Purchase and retirement of common stock |
|
— |
|
|
|
(20,982 |
) |
|
Share-based compensation tax withholdings |
|
(16,593 |
) |
|
|
(15,211 |
) |
|
Proceeds on stock option exercises |
|
10,614 |
|
|
|
1,208 |
|
|
Deposits and other |
|
1,106 |
|
|
|
(1,332 |
) |
|
Net cash used in financing activities |
|
(4,873 |
) |
|
|
(67,080 |
) |
| Effect of exchange rate
changes on cash and cash equivalents |
|
4,696 |
|
|
|
2,645 |
|
| Net increase (decrease) in
cash and cash equivalents |
|
83,122 |
|
|
|
(290,540 |
) |
| Cash and cash equivalents,
beginning of period |
|
303,222 |
|
|
|
491,688 |
|
| Cash and cash equivalents, end
of period |
$ |
386,344 |
|
|
$ |
201,148 |
|
| |
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 (NYSE:FCN)
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From Oct 2024 to Nov 2024
FTI Consulting (NYSE:FCN)
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From Nov 2023 to Nov 2024
