StockSelector.com
  Research, Select, & Monitor Thursday, May 23, 2019 8:54:02 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
FTI Consulting, Inc.$80.41($2.19)(2.65%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 FTI Consulting Reports Fourth Quarter and Full Year 2017 Financial Results
   Thursday, February 22, 2018 7:30:46 AM ET

-- Record Fourth Quarter 2017 Revenues of $467.7 million, up 5.8% compared to Prior Year Quarter

-- Fourth Quarter Fully Diluted EPS of $1.78 compared to $0.17 in Prior Year Quarter; Favorable Impact of $44.9 million from the 2017 U.S. Tax Cuts and Jobs Act

-- Adjusted EPS of $0.78 compared to $0.24 in Prior Year Quarter

FTI Consulting, Inc. (FCN ) today released its financial results for the fourth quarter and full year ended December 31, 2017.

Full Year 2017 Results

-- Revenues of $1.808 billion were down 0.1% compared to the prior year

-- Net income of $108.0 million was up 26.2% compared to the prior year

-- Adjusted EBITDA of $192.0 million was down 5.4% compared to the prior year

-- Fully diluted EPS of $2.75 was up 34.1% compared to the prior year

-- Adjusted EPS of $2.32 was up 3.6% compared to the prior year

-- $168.0 million returned through share repurchases during full year 2017

Commenting on these results, Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, said, "We are, of course, pleased with our very strong results in both the third and fourth quarters. These results reflect, in part, actions we took earlier in the year, but more fundamentally, they reflect the deep focus that our professionals have on helping our clients successfully navigate the largest and most significant issues they face."

For the full year 2017, revenues of $1.808 billion declined $2.7 million, or 0.1%, compared to $1.810 billion in the prior year. The decline in revenues was primarily due to lower demand in the Economic Consulting and Technology segments, which was partially offset by higher demand in the Forensic and Litigation Consulting segment. Net income increased 26.2% to $108.0 million compared to $85.5 million in the prior year. The increase was largely due to a $44.9 million discrete tax benefit recorded in the fourth quarter, resulting from the adoption of the 2017 U.S. Tax Cuts and Jobs Act ("2017 Tax Act"). This benefit was partially offset by $40.9 million of special charges, $10.8 million of which were recorded in the fourth quarter, reflecting targeted headcount and real estate reduction actions. Adjusted EBITDA was $192.0 million, or 10.6% of revenues, compared to $203.0 million, or 11.2% of revenues, in the prior year. The Adjusted EBITDA decline resulted primarily from lower revenues during the first half of 2017. Adjusted EBITDA significantly improved during the second half of 2017, primarily as a result of revenue growth and cost-cutting actions taken at the end of the second quarter of 2017.

Full year 2017 fully diluted earnings per share ("EPS") of $2.75 compared to $2.05 in the prior year. Full year 2017 EPS included the $44.9 million 2017 Tax Act benefit, which increased EPS by $1.14, and the $40.9 million special charge related to headcount and real estate reductions, which reduced EPS by $0.70. Full year 2017 Adjusted EPS, which excludes the 2017 Tax Act benefit and the special charges, of $2.32 compared to $2.24 in the prior year.

Cash Position and Capital Allocation

Net cash provided by operating activities of $147.6 million for the year ended December 31, 2017 compared to $233.5 million for the year ended December 31, 2016. The year-over-year difference in operating cash flows was primarily due to increased compensation payments, including severance, and lower cash receipts.

In 2017, the Company used approximately $168.0 million to repurchase 4,674,418 shares of its common stock at an average price per share of $35.94. As of December 31, 2017, approximately $113.3 million remained available for stock repurchases under the Company’s $300.0 million share repurchase authorization.

The Company increased the balance drawn on its credit facility by $30.0 million during 2017. Total debt of $400.0 million at December 31, 2017 compared to total debt of $370.0 million at December 31, 2016. Cash and cash equivalents were $190.0 million at December 31, 2017 compared to $216.2 million at December 31, 2016. Total debt, net of cash, was $210.0 million at December 31, 2017, up from $153.8 million at December 31, 2016.

Fourth Quarter 2017 Results

Fourth quarter 2017 revenues of $467.7 million increased $25.8 million, or 5.8%, compared to revenues of $441.9 million in the prior year quarter. Excluding the estimated positive impact from foreign currency translation ("FX"), revenues increased by $19.2 million, or 4.3%, compared to the prior year quarter. The increase in revenues was primarily driven by higher demand within the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments, which was partially offset by reduced demand in the Economic Consulting segment. Net income of $66.9 million compared to $7.1 million in the prior year quarter. The increase was largely due to the $44.9 million 2017 Tax Act benefit and higher revenues. Adjusted EBITDA was $55.5 million, or 11.9% of revenues, compared to $30.3 million, or 6.9% of revenues, in the prior year quarter. The increase in Adjusted EBITDA was primarily due to higher revenues, improved utilization and lower general and administrative costs.

Fourth quarter 2017 EPS of $1.78 compared to $0.17 in the prior year quarter. Fourth quarter 2017 EPS included the 2017 Tax Act benefit of $44.9 million, which increased EPS by $1.19, and the $10.8 million special charge related to headcount reductions, which reduced EPS by $0.19. Fourth quarter 2017 Adjusted EPS, which excludes the 2017 Tax Act benefit and special charge, of $0.78 compared to $0.24 in the prior year quarter.

Fourth Quarter 2017 Segment Results

Corporate Finance & Restructuring

Revenues in the Corporate Finance & Restructuring segment increased $17.2 million, or 15.2%, to $130.5 million in the quarter compared to $113.4 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $15.7 million, or 13.8%, compared to the prior year quarter. The increase in revenues was due to higher demand for restructuring, business transformation and transaction services. Adjusted Segment EBITDA was $25.8 million, or 19.7% of segment revenues, compared to $16.3 million, or 14.4% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues with improved utilization.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment increased $15.4 million, or 14.6%, to $120.9 million in the quarter, compared to $105.5 million in the prior year quarter. The increase in revenues was driven by improved demand for global investigations, construction solutions and dispute services, which was partially offset by lower demand for health solutions services. Adjusted Segment EBITDA was $23.6 million, or 19.5% of segment revenues, compared to $6.3 million, or 6.0% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues with improved utilization.

Economic Consulting

Revenues in the Economic Consulting segment decreased $8.2 million, or 6.4%, to $121.1 million in the quarter compared to $129.3 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues decreased $10.3 million, or 8.0%, compared to the prior year quarter. The decrease in revenues was primarily due to lower demand for antitrust services. Adjusted Segment EBITDA was $14.3 million, or 11.8% of segment revenues, compared to $19.0 million, or 14.7% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to lower revenues and higher bad debt expense, which was partially offset by lower compensation.

Technology

Revenues in the Technology segment decreased $2.6 million, or 5.9%, to $40.9 million in the quarter compared to $43.5 million in the prior year quarter. The decrease in revenues was primarily due to lower demand for managed review services, which was partially offset by higher demand for consulting services. Adjusted Segment EBITDA was $3.0 million, or 7.3% of segment revenues, compared to $5.6 million, or 12.8% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to lower revenues.

Strategic Communications

Revenues in the Strategic Communications segment increased $4.0 million, or 8.0%, to $54.3 million in the quarter compared to $50.3 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $2.2 million, or 4.3%, compared to the prior year quarter. The increase in revenues was primarily driven by higher retained revenues from public affairs and corporate reputation services in Europe, the Middle East and Africa. Adjusted Segment EBITDA was $10.5 million, or 19.4% of segment revenues, compared to $8.4 million, or 16.7% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was due to higher revenues, which was partially offset by higher compensation costs.

2018 Guidance

The Company estimates that revenues for full year 2018 will be in the range of $1.825 billion and $1.875 billion. The Company estimates that full year 2018 EPS will be in the range of $2.35 and $2.65. The Company does not expect Adjusted EPS to differ from EPS.

Fourth Quarter and Full Year 2017 Conference Call

FTI Consulting will host a conference call for analysts and investors to discuss fourth quarter and full year 2017 financial results at 9:00 a.m. Eastern Time on February 22, 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 http://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 measures" under 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, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt 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 and 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 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 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, 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 U.S. Tax Cuts and Jobs Act ("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," 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.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
                                                                    December 31,
                                                                    2017                 2016
Assets
Current assets
Cash and cash equivalents                                           $    189,961         $    216,158
Accounts receivable:
Billed receivables                                                  390,996              365,385
Unbilled receivables                                                312,569              288,331
Allowances for doubtful accounts and unbilled services              (180,687       )     (178,819       )
Accounts receivable, net                                            522,878              474,897
Current portion of notes receivable                                 25,691               31,864
Prepaid expenses and other current assets                           55,649               60,252
Total current assets                                                794,179              783,171
Property and equipment, net of accumulated depreciation             75,075               61,856
Goodwill                                                            1,204,803            1,180,001
Other intangible assets, net of amortization                        44,150               52,120
Notes receivable, net of current portion                            98,105               104,524
Other assets                                                        40,929               43,696
Total assets                                                        $    2,257,241       $    2,225,368
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable, accrued expenses and other                        $    94,873          $    87,320
Accrued compensation                                                268,513              261,500
Billings in excess of services provided                             46,942               29,635
Total current liabilities                                           410,328              378,455
Long-term debt, net                                                 396,284              365,528
Deferred income taxes                                               124,471              173,799
Other liabilities                                                   134,187              100,228
Total liabilities                                                   1,065,270            1,018,010
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  377                  420
issued and outstanding -- 37,729 (2017) and  42,037 (2016)
Additional paid-in capital                                          266,035              416,816
Retained earnings                                                   1,045,774            941,001
Accumulated other comprehensive loss                                (120,215       )     (150,879       )
Total stockholders’ equity                                          1,191,971            1,207,358
Total liabilities and stockholders’ equity                          $    2,257,241       $    2,225,368
FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
(unaudited)
                                                                   Three Months Ended
                                                                   December 31,
                                                                   2017              2016
Revenues                                                           $      467,711    $      441,920
Operating expenses
Direct cost of revenues                                            307,566           308,239
Selling, general and administrative expenses                       111,176           116,478
Special charges                                                    10,811            3,634
Acquisition-related contingent consideration                       867               623
Amortization of other intangible assets                            2,766             2,265
                                                                   433,186           431,239
Operating income                                                   34,525            10,681
Other income (expense)
Interest income and other                                          452               571
Interest expense                                                   (6,547         )  (5,983         )
                                                                   (6,095         )  (5,412         )
Income before income tax benefit                                   28,430            5,269
Income tax benefit                                                 (38,458        )  (1,832         )
Net income                                                         $      66,888     $      7,101
Earnings per common share ??? basic                                $      1.81       $      0.17
Weighted average common shares outstanding ??? basic               36,906            41,201
Earnings per common share ??? diluted                              $      1.78       $      0.17
Weighted average common shares outstanding ??? diluted             37,643            42,018
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net of tax expense of $0 $      1,886      $      (18,239 )
Total other comprehensive income (loss), net of tax                1,886             (18,239        )
Comprehensive income (loss)                                        $      68,774     $      (11,138 )
FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
                                                                   Year Ended
                                                                   December 31,
                                                                   2017               2016
Revenues                                                           $     1,807,732    $     1,810,394
Operating expenses
Direct cost of revenues                                            1,215,560          1,210,771
Selling, general and administrative expenses                       429,722            434,552
Special charges                                                    40,885             10,445
Acquisition-related contingent consideration                       2,291              2,164
Amortization of other intangible assets                            10,563             10,306
                                                                   1,699,021          1,668,238
Operating income                                                   108,711            142,156
Other income (expense)
Interest income and other                                          3,752              10,466
Interest expense                                                   (25,358         )  (24,819         )
                                                                   (21,606         )  (14,353         )
Income before income tax provision (benefit)                       87,105             127,803
Income tax provision (benefit)                                     (20,857         )  42,283
Net income                                                         $     107,962      $     85,520
Earnings per common share ??? basic                                $     2.79         $     2.09
Weighted average common shares outstanding ??? basic               38,697             40,943
Earnings per common share ??? diluted                              $     2.75         $     2.05
Weighted average common shares outstanding ??? diluted             39,192             41,709
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net of tax expense of $0 $     30,664       $     (41,884   )
Total other comprehensive income (loss), net of tax                30,664             (41,884         )
Comprehensive income                                               $     138,626      $     43,636
FTI CONSULTING, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
                                                                             Three Months Ended           Year Ended
                                                                             December 31,                 December 31,
                                                                             2017           2016          2017            2016
                                                                             (Unaudited)
Net income                                                                   $   66,888     $   7,101     $   107,962     $   85,520
Add back:
Special charges                                                              10,811         3,634         40,885          10,445
Tax impact of special charges                                                (3,635     )   (1,113    )   (13,570     )   (3,595     )
Remeasurement of acquisition-related contingent consideration                --             423           702             1,403
Tax impact of remeasurement of acquisition-related contingent consideration  --             (165      )   (269        )   (546       )
Impact of 2017 Tax Act                                                       (44,870    )   --            (44,870     )   --
Adjusted net income                                                          $   29,194     $   9,880     $   90,840      $   93,227
Earnings per common share -- diluted                                         $   1.78       $   0.17      $   2.75        $   2.05
Add back:
Special charges                                                              0.29           0.09          1.04            0.25
Tax impact of special charges                                                (0.10      )   (0.03     )   (0.34       )   (0.08      )
Remeasurement of acquisition-related contingent consideration                --             0.01          0.02            0.03
Tax impact of remeasurement of acquisition-related contingent consideration  --             --            (0.01       )   (0.01      )
Impact of 2017 Tax Act                                                       (1.19      )   --            (1.14       )   --
Adjusted earnings per common share -- diluted                                $   0.78       $   0.24      $   2.32        $   2.24
Weighted average number of common shares outstanding ??? diluted             37,643         42,018        39,192          41,709
FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(in thousands)
Three Months Ended December 31, 2017                           Corporate     Forensic and  Economic     Technology      Strategic       Unallocated      Total
(unaudited)                                                    Finance &     Litigation    Consulting                   Communications  Corporate
                                                               Restructuring Consulting
Net income                                                                                                                                               $   66,888
Interest income and other                                                                                                                                (452        )
Interest expense                                                                                                                                         6,547
Income tax benefit                                                                                                                                       (38,458     )
Operating income (loss)                                        $    21,332   $    20,286   $   12,120   $   (1,079 )    $    4,840      $   (22,974 )    $   34,525
Depreciation and amortization                                  815           1,042         1,316        2,664           673             899              7,409
Amortization of other intangible assets                        1,218         396           134          158             860             --               2,766
Special charges                                                2,391         1,889         714          1,230           4,153           434              10,811
Adjusted EBITDA                                                $    25,756   $    23,613   $   14,284   $   2,973       $    10,526     $   (21,641 )    $   55,511
Year Ended December 31, 2017                                   Corporate     Forensic and  Economic     Technology      Strategic       Unallocated      Total
                                                               Finance &     Litigation    Consulting                   Communications  Corporate
                                                               Restructuring Consulting
Net income                                                                                                                                               $   107,962
Interest income and other                                                                                                                                (3,752      )
Interest expense                                                                                                                                         25,358
Income tax benefit                                                                                                                                       (20,857     )
Operating income                                               $    70,234   $    54,520   $   49,154   $   4,795       $    13,148     $   (83,140 )    $   108,711
Depreciation and amortization                                  3,175         4,259         5,589        11,684          2,405           4,065            31,177
Amortization of other intangible assets                        4,014         1,592         597          635             3,725           --               10,563
Special charges                                                5,440         12,334        6,624        5,057           7,752           3,678            40,885
Remeasurement of acquisition-related contingent consideration  --            --            --           --              702             --               702
Adjusted EBITDA                                                $    82,863   $    72,705   $   61,964   $   22,171      $    27,732     $   (75,397 )    $   192,038
Three Months Ended December 31, 2016                           Corporate     Forensic and  Economic     Technology      Strategic       Unallocated      Total
(unaudited)                                                    Finance &     Litigation    Consulting                   Communications  Corporate
                                                               Restructuring Consulting
Net income                                                                                                                                               $   7,101
Interest income and other                                                                                                                                (571        )
Interest expense                                                                                                                                         5,983
Income tax provision                                                                                                                                     (1,832      )
Operating income (loss)                                        $    14,741   $    4,083    $   17,452   $   (4,752 )    $    6,449      $   (27,292 )    $   10,681
Depreciation and amortization                                  722           1,212         1,442        7,919           641             1,405            13,341
Amortization of other intangible assets                        819           481           154          (77        )    888             --               2,265
Special charges                                                --            554           --           2,468           --              612              3,634
Remeasurement of acquisition-related contingent consideration  --            --            --           --              423             --               423
Adjusted EBITDA                                                $    16,282   $    6,330    $   19,048   $   5,558       $    8,401      $   (25,275 )    $   30,344
Year Ended December 31, 2016                                   Corporate     Forensic and  Economic     Technology      Strategic       Unallocated      Total
                                                               Finance &     Litigation    Consulting                   Communications  Corporate
                                                               Restructuring Consulting
Net income                                                                                                                                               $   85,520
Interest income and other                                                                                                                                (10,466     )
Interest expense                                                                                                                                         24,819
Income tax provision                                                                                                                                     42,283
Operating income (loss)                                        $    91,481   $    49,088   $   68,842   $   (2,183 )    $    23,110     $   (88,182 )    $   142,156
Depreciation and amortization                                  2,897         4,490         4,614        19,820          2,243           4,636            38,700
Amortization of other intangible assets                        3,310         2,000         646          648             3,702           --               10,306
Special charges                                                --            2,304         --           7,529           --              612              10,445
Remeasurement of acquisition-related contingent consideration  --            --            --           --              1,403           --               1,403
Adjusted EBITDA                                                $    97,688   $    57,882   $   74,102   $   25,814      $    30,458     $   (82,934 )    $   203,010
FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
                                     Segment                   Adjusted                   Adjusted EBITDA  Utilization    Average                   Revenue-
                                     Revenues                  EBITDA                     Margin                          Billable                  Generating
                                                                                                                          Rate                      Headcount
                                     (in thousands)                                                                                                 (at period end)
Three Months Ended December 31, 2017
(unaudited)
Corporate Finance & Restructuring    $           130,532       $           25,756         19.7        %    62          %  $           434           901
Forensic and Litigation Consulting   120,869                   23,613                     19.5        %    63          %  $           330           1,067
Economic Consulting                  121,051                   14,284                     11.8        %    64          %  $           542           683
Technology                           40,915                    2,973                      7.3         %    N/M                        N/M           292
Strategic Communications             54,344                    10,526                     19.4        %    N/M                        N/M           630
                                     $           467,711       $           77,152         16.5        %                                             3,573
Unallocated Corporate                                          (21,641                 )
Adjusted EBITDA                                                $           55,511         11.9        %
Year Ended December 31, 2017
Corporate Finance & Restructuring    $           482,041       $           82,863         17.2        %    61          %  $           396           901
Forensic and Litigation Consulting   462,324                   72,705                     15.7        %    61          %  $           321           1,067
Economic Consulting                  496,029                   61,964                     12.5        %    67          %  $           524           683
Technology                           174,850                   22,171                     12.7        %    N/M                        N/M           292
Strategic Communications             192,488                   27,732                     14.4        %    N/M                        N/M           630
                                     $           1,807,732     $           267,435        14.8        %                                             3,573
Unallocated Corporate                                          (75,397                 )
Adjusted EBITDA                                                $           192,038        10.6        %
Three Months Ended December 31, 2016
(unaudited)
Corporate Finance & Restructuring    $           113,354       $           16,282         14.4        %    55          %  $           408           895
Forensic and Litigation Consulting   105,492                   6,330                      6.0         %    55          %  $           322           1,110
Economic Consulting                  129,270                   19,048                     14.7        %    71          %  $           522           656
Technology                           43,485                    5,558                      12.8        %    N/M                        N/M           288
Strategic Communications             50,319                    8,401                      16.7        %    N/M                        N/M           647
                                     $           441,920       $           55,619         12.6        %                                             3,596
Unallocated Corporate                                          (25,275                 )
Adjusted EBITDA                                                $           30,344         6.9         %
Year Ended December 31, 2016
Corporate Finance & Restructuring    $           483,269       $           97,688         20.2        %    65          %  $           392           895
Forensic and Litigation Consulting   457,734                   57,882                     12.6        %    59          %  $           327           1,110
Economic Consulting                  500,487                   74,102                     14.8        %    73          %  $           517           656
Technology                           177,720                   25,814                     14.5        %    N/M                        N/M           288
Strategic Communications             191,184                   30,458                     15.9        %    N/M                        N/M           647
                                     $           1,810,394     $           285,944        15.8        %                                             3.596
Unallocated Corporate                                          (82,934                 )
Adjusted EBITDA                                                $           203,010        11.2        %
N/M -- Not meaningful
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.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                                                  Year Ended
                                                                                  December 31,
                                                                                  2017               2016
Operating activities
Net income                                                                        $    107,962       $    85,520
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization                                                     31,177             38,700
Amortization and impairment of other intangible assets                            10,563             10,306
Acquisition-related contingent consideration                                      2,291              2,164
Provision for doubtful accounts                                                   15,386             8,912
Non-cash share-based compensation                                                 16,030             16,920
Non-cash interest expense                                                         1,984              1,985
Other                                                                             611                (1,204       )
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, billed and unbilled                                          (50,831      )     3,471
Notes receivable                                                                  14,928             3,145
Prepaid expenses and other assets                                                 629                (2,840       )
Accounts payable, accrued expenses and other                                      4,421              3,268
Income taxes                                                                      (25,768      )     22,012
Accrued compensation                                                              1,795              40,350
Billings in excess of services provided                                           16,447             779
Net cash provided by operating activities                                         147,625            233,488
Investing activities
Payments for acquisition of businesses, net of cash received                      (8,929       )     (1,251       )
Purchases of property and equipment                                               (32,004      )     (28,935      )
Other                                                                             295                54
Net cash used in investing activities                                             (40,638      )     (30,132      )
Financing activities
Borrowings (repayments) under revolving line of credit, net                       30,000             (130,000     )
Deposits                                                                          2,825              4,006
Purchase and retirement of common stock                                           (168,094     )     (21,489      )
Net issuance of common stock under equity compensation plans                      (504         )     21,708
Payments for acquisition-related contingent consideration                         (5,161       )     (866         )
Other                                                                             --                 1,331
Net cash used in financing activities                                             (140,934     )     (125,310     )
Effect of exchange rate changes on cash and cash equivalents                      7,750              (11,648      )
Net increase (decrease) in cash and cash equivalents                              (26,197      )     66,398
Cash and cash equivalents, beginning of period                                    216,158            149,760
Cash and cash equivalents, end of period                                          $    189,961       $    216,158

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

https://resource.globenewswire.com/Resource/Download/a7f02a78-150c-4576-8a4f-dbacf4ab16a0?size=1

<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzcxNDg5NjQ=" alt="" width="1" height="1"/>



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2019 StockSelector.com. All rights reserved.