FTI Consulting, Inc. (NYSE: FCN) today released financial results
for the full year and fourth quarter ended December 31, 2023.
For the full year 2023, revenues of $3.489 billion increased
$460.3 million, or 15.2%, compared to revenues of $3.029 billion in
the prior year. The increase in revenues was due to higher demand
across all business segments. Net income of $274.9 million compared
to $235.5 million in the prior year. The increase in net income was
primarily due to higher revenues, which was partially offset by
higher compensation, a 17.2% increase in selling, general and
administrative ("SG&A") expenses and higher income taxes
compared to the prior year. Adjusted EBITDA of $424.8 million, or
12.2% of revenues, compared to $357.6 million, or 11.8% of
revenues, in the prior year.
Full year 2023 earnings per diluted share ("EPS") of $7.71
compared to $6.58 in the prior year. Full year 2022 EPS included an
$8.3 million special charge related to severance and other
employee-related costs, which reduced EPS by $0.19. Full year 2023
Adjusted EPS of $7.71 compared to Adjusted EPS of $6.77 in the
prior year.
Steven H. Gunby, President and Chief Executive Officer of FTI
Consulting, commented, "In 2023, we continued our sustained,
multi-year growth trajectory and once again delivered record
revenues and earnings. These results reflect our continued ability
to win in the two markets that matter most: the market for making a
difference for clients and the market for great talent. That
progress leaves me ever more confident about the future of our
firm."
Cash Position and Capital Allocation
Net cash provided by operating activities of $224.5 million for
the year ended December 31, 2023 compared to $188.8 million for the
year ended December 31, 2022. The year-over-year increase in net
cash provided by operating activities was primarily due to higher
cash collections resulting from increased revenues. The increase
was partially offset by higher compensation expenses, primarily
related to headcount growth, an increase in other operating
expenses and higher use of working capital required for growth.
Cash and cash equivalents and short-term investments of $328.7
million at December 31, 2023 compared to $491.7 million at December
31, 2022 and $225.6 million at September 30, 2023. Total debt, net
of cash and short-term investments, of ($328.7) million at December
31, 2023 compared to ($175.5) million at December 31, 2022 and
$59.4 million at September 30, 2023. The sequential decrease in
total debt, net of cash and short-term investments, was primarily
due to an increase in cash provided by operating activities.
There were no share repurchases during the quarter ended
December 31, 2023. In full year 2023, the Company repurchased
112,139 shares of its common stock at an average price per share of
$158.70 for a total cost of $17.8 million. As of December 31,
2023, approximately $460.7 million remained available for
common stock repurchases under the Company’s stock repurchase
program.
Fourth Quarter 2023
Results
Fourth quarter 2023 revenues of $924.7 million increased $150.3
million, or 19.4%, compared to revenues of $774.4 million in the
prior year quarter. Excluding the estimated positive impact from
FX, revenues increased $139.0 million, or 18.0%, compared to the
prior year quarter. The increase in revenues was due to higher
demand across all business segments. Net income of $81.6 million
compared to $47.5 million in the prior year quarter. The increase
in net income was primarily due to higher revenues, which was
partially offset by higher compensation and SG&A expenses
compared to the prior year quarter. Adjusted EBITDA of $127.4
million, or 13.8% of revenues, compared to $92.0 million, or 11.9%
of revenues, in the prior year quarter.
Fourth quarter 2023 EPS of $2.28 compared to $1.33 in the prior
year quarter. Fourth quarter 2022 EPS included the aforementioned
$8.3 million special charge, which decreased EPS by $0.19. Fourth
quarter 2023 Adjusted EPS of $2.28 compared to Adjusted EPS of
$1.52 in the prior year quarter.
Fourth Quarter 2023 Segment
Results
Corporate Finance & RestructuringRevenues
in the Corporate Finance & Restructuring segment increased
$60.2 million, or 19.7%, to $365.6 million in the quarter compared
to $305.3 million in the prior year quarter. Excluding the
estimated positive impact from FX, revenues increased $57.2
million, or 18.7%, compared to the prior year quarter. The increase
in revenues was primarily due to higher demand for business
transformation & strategy and restructuring services. Adjusted
Segment EBITDA of $65.4 million, or 17.9% of segment revenues,
compared to $49.1 million, or 16.1% 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
higher compensation, which includes the impact of a 5.5% increase
in billable headcount and higher contractor costs, as well as an
increase in SG&A expenses compared to the prior year
quarter.
Forensic and Litigation ConsultingRevenues in
the Forensic and Litigation Consulting segment increased $17.6
million, or 11.9%, to $165.5 million in the quarter compared to
$147.9 million in the prior year quarter. The increase in revenues
was primarily due to higher demand for investigations and
construction solutions services. Adjusted Segment EBITDA of $19.2
million, or 11.6% of segment revenues, compared to $17.1 million,
or 11.6% 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
and higher SG&A expenses compared to the prior year
quarter.
Economic ConsultingRevenues in the Economic
Consulting segment increased $34.1 million, or 19.8%, to $206.1
million in the quarter compared to $172.0 million in the prior year
quarter. Excluding the estimated positive impact from FX, revenues
increased $30.3 million, or 17.6%, compared to the prior year
quarter. The increase in revenues was primarily due to an increase
in financial economics, non-merger and acquisition
(“M&A”)-related antitrust and international arbitration
revenues, which was partially offset by a decline in
M&A-related antitrust revenues. Adjusted Segment EBITDA of
$38.3 million, or 18.6% of segment revenues, compared to $27.3
million, or 15.9% 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 an 8.1% increase in
billable headcount, and higher SG&A expenses compared to the
prior year quarter.
TechnologyRevenues in the Technology segment
increased $24.1 million, or 31.4%, to $100.9 million in the quarter
compared to $76.8 million in the prior year quarter. Excluding the
estimated positive impact from FX, revenues increased $23.1
million, or 30.1%, compared to the prior year quarter. The increase
in revenues was primarily due to higher demand for M&A-related
“second request” and litigation services. Adjusted Segment EBITDA
of $12.4 million, or 12.3% of segment revenues, compared to $11.8
million, or 15.3% of segment revenues, in the prior year quarter.
The increase in Adjusted Segment EBITDA was primarily due to higher
revenues, which was largely offset by higher as-needed consultant
costs, an increase in compensation, which includes the impact of a
12.9% increase in billable headcount, and higher SG&A expenses
compared to the prior year quarter.
Strategic CommunicationsRevenues in the
Strategic Communications segment increased $14.2 million, or 19.6%,
to $86.6 million in the quarter compared to $72.4 million in the
prior year quarter. Excluding the estimated positive impact from
FX, revenues increased $12.2 million, or 16.9%, compared to the
prior year quarter. The increase in revenues was primarily due to
higher demand for corporate reputation and public affairs services.
Adjusted Segment EBITDA of $15.6 million, or 18.0% of segment
revenues, compared to $10.5 million, or 14.5% 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 and higher SG&A expenses compared
to the prior year quarter.
2024 GuidanceThe Company estimates that
revenues for full year 2024 will range between $3.650 billion and
$3.790 billion. The Company estimates that EPS for full year 2024
will range between $7.75 and $8.50. The Company does not currently
expect Adjusted EPS to differ from EPS.
Fourth Quarter and Full Year
2023 Conference CallFTI
Consulting will host a conference call for analysts and investors
to discuss fourth quarter and full year 2023 financial results at
9:00 a.m. Eastern Time on Thursday, February 22, 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 7,900 employees located in 31
countries and territories, FTI Consulting professionals work
closely with clients to anticipate, illuminate and overcome complex
business challenges and make the most of opportunities. The Company
generated $3.5 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.555 12th Street
NWWashington, DC 20004+1.202.312.9100
Investor & Media Contact:Mollie
Hawkes+1.617.747.1791mollie.hawkes@fticonsulting.com
FTI CONSULTING, INC.CONSOLIDATED BALANCE
SHEETS(in thousands, except per share
amounts) |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
303,222 |
|
|
$ |
491,688 |
|
Accounts receivable, net |
|
1,102,142 |
|
|
|
896,153 |
|
Current portion of notes receivable |
|
30,997 |
|
|
|
27,292 |
|
Prepaid expenses and other current assets |
|
119,092 |
|
|
|
95,469 |
|
Total current assets |
|
1,555,453 |
|
|
|
1,510,602 |
|
Property and equipment, net |
|
159,662 |
|
|
|
153,466 |
|
Operating lease assets |
|
208,910 |
|
|
|
203,764 |
|
Goodwill |
|
1,234,569 |
|
|
|
1,227,593 |
|
Intangible assets, net |
|
18,285 |
|
|
|
25,514 |
|
Notes receivable, net |
|
75,431 |
|
|
|
55,978 |
|
Other assets |
|
73,568 |
|
|
|
64,490 |
|
Total assets |
$ |
3,325,878 |
|
|
$ |
3,241,407 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable, accrued expenses and other |
$ |
223,758 |
|
|
$ |
173,953 |
|
Accrued compensation |
|
601,074 |
|
|
|
541,892 |
|
Billings in excess of services provided |
|
67,937 |
|
|
|
53,646 |
|
Total current liabilities |
|
892,769 |
|
|
|
769,491 |
|
Long-term debt, net |
|
— |
|
|
|
315,172 |
|
Noncurrent operating lease liabilities |
|
223,774 |
|
|
|
221,604 |
|
Deferred income taxes |
|
140,976 |
|
|
|
162,374 |
|
Other liabilities |
|
86,939 |
|
|
|
91,045 |
|
Total liabilities |
|
1,344,458 |
|
|
|
1,559,686 |
|
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 — 35,521 (2023) and 34,026 (2022) |
|
355 |
|
|
|
340 |
|
Additional paid-in capital |
|
16,760 |
|
|
|
— |
|
Retained earnings |
|
2,114,765 |
|
|
|
1,858,103 |
|
Accumulated other comprehensive loss |
|
(150,460 |
) |
|
|
(176,722 |
) |
Total stockholders’
equity |
|
1,981,420 |
|
|
|
1,681,721 |
|
Total liabilities and
stockholders’ equity |
$ |
3,325,878 |
|
|
$ |
3,241,407 |
|
|
FTI CONSULTING, INC.CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(in thousands,
except per share data) |
|
|
Three Months EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
Revenues |
$ |
924,684 |
|
|
$ |
774,431 |
|
Operating expenses |
|
|
|
Direct cost of revenues |
|
613,809 |
|
|
|
526,139 |
|
Selling, general and administrative expenses |
|
194,634 |
|
|
|
164,973 |
|
Special charges |
|
— |
|
|
|
8,340 |
|
Amortization of intangible assets |
|
1,220 |
|
|
|
2,323 |
|
|
|
809,663 |
|
|
|
701,775 |
|
Operating income |
|
115,021 |
|
|
|
72,656 |
|
Other income (expense) |
|
|
|
Interest income and other |
|
(8,088 |
) |
|
|
(6,500 |
) |
Interest expense |
|
(3,896 |
) |
|
|
(2,579 |
) |
|
|
(11,984 |
) |
|
|
(9,079 |
) |
Income before income tax provision |
|
103,037 |
|
|
|
63,577 |
|
Income tax provision |
|
21,404 |
|
|
|
16,079 |
|
Net income |
$ |
81,633 |
|
|
$ |
47,498 |
|
Earnings per common share ― basic |
$ |
2.34 |
|
|
$ |
1.42 |
|
Weighted average common shares outstanding ―
basic |
|
34,889 |
|
|
|
33,552 |
|
Earnings per common share ― diluted |
$ |
2.28 |
|
|
$ |
1.33 |
|
Weighted average common shares outstanding ―
diluted |
|
35,778 |
|
|
|
35,658 |
|
Other comprehensive income, net of tax |
|
|
|
Foreign currency translation adjustments, net of tax expense of $—
and $— |
$ |
28,244 |
|
|
$ |
47,463 |
|
Total other comprehensive income, net of tax |
|
28,244 |
|
|
|
47,463 |
|
Comprehensive income |
$ |
109,877 |
|
|
$ |
94,961 |
|
|
FTI CONSULTING, INC.CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(in thousands,
except per share data) |
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
3,489,242 |
|
|
$ |
3,028,908 |
|
Operating
expenses |
|
|
|
Direct cost of revenues |
|
2,354,216 |
|
|
|
2,065,977 |
|
Selling, general and administrative expenses |
|
751,306 |
|
|
|
641,070 |
|
Special charges |
|
— |
|
|
|
8,340 |
|
Amortization of intangible assets |
|
6,159 |
|
|
|
9,643 |
|
|
|
3,111,681 |
|
|
|
2,725,030 |
|
Operating
income |
|
377,561 |
|
|
|
303,878 |
|
Other income
(expense) |
|
|
|
Interest income and other |
|
(4,867 |
) |
|
|
3,918 |
|
Interest expense |
|
(14,331 |
) |
|
|
(10,047 |
) |
|
|
(19,198 |
) |
|
|
(6,129 |
) |
Income before income
tax provision |
|
358,363 |
|
|
|
297,749 |
|
Income tax
provision |
|
83,471 |
|
|
|
62,235 |
|
Net
income |
$ |
274,892 |
|
|
$ |
235,514 |
|
Earnings per common
share ― basic |
$ |
8.10 |
|
|
$ |
6.99 |
|
Weighted average
common shares outstanding ― basic |
|
33,924 |
|
|
|
33,693 |
|
Earnings per common
share ― diluted |
$ |
7.71 |
|
|
$ |
6.58 |
|
Weighted average
common shares outstanding ― diluted |
|
35,646 |
|
|
|
35,783 |
|
Other comprehensive
income (loss), net of tax |
|
|
|
Foreign currency translation adjustments, net of tax expense of $—
and $— |
$ |
26,262 |
|
|
$ |
(47,882 |
) |
Total other
comprehensive income (loss), net of tax |
|
26,262 |
|
|
|
(47,882 |
) |
Comprehensive
income |
$ |
301,154 |
|
|
$ |
187,632 |
|
|
FTI CONSULTING, INC.RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES(in thousands, except
per share data) |
|
|
Three Months EndedDecember
31, |
|
Year Ended December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
|
Net income |
$ |
81,633 |
|
$ |
47,498 |
|
|
$ |
274,892 |
|
$ |
235,514 |
|
Add
back: |
|
|
|
|
|
|
|
Special charges |
|
— |
|
|
8,340 |
|
|
|
— |
|
|
8,340 |
|
Tax impact of special charges |
|
— |
|
|
(1,584 |
) |
|
|
— |
|
|
(1,584 |
) |
Adjusted Net Income |
$ |
81,633 |
|
$ |
54,254 |
|
|
$ |
274,892 |
|
$ |
242,270 |
|
Earnings per common share — diluted |
$ |
2.28 |
|
$ |
1.33 |
|
|
$ |
7.71 |
|
$ |
6.58 |
|
Add
back: |
|
|
|
|
|
|
|
Special charges |
|
— |
|
|
0.23 |
|
|
|
— |
|
|
0.23 |
|
Tax impact of special charges |
|
— |
|
|
(0.04 |
) |
|
|
— |
|
|
(0.04 |
) |
Adjusted earnings per common share — diluted |
$ |
2.28 |
|
$ |
1.52 |
|
|
$ |
7.71 |
|
$ |
6.77 |
|
Weighted average number of common shares
outstanding ― diluted |
|
35,778 |
|
|
35,658 |
|
|
|
35,646 |
|
|
35,783 |
|
|
FTI CONSULTING, INC.RECONCILIATION OF NET
INCOME AND OPERATING INCOME TO ADJUSTED EBITDA(in
thousands) |
|
Three Months Ended December 31,
2023(Unaudited) |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
81,633 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,088 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,896 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,404 |
|
Operating income |
|
$ |
61,779 |
|
$ |
17,415 |
|
$ |
36,801 |
|
$ |
8,393 |
|
$ |
14,703 |
|
$ |
(24,070 |
) |
|
$ |
115,021 |
|
Depreciation and amortization |
|
|
2,597 |
|
|
1,680 |
|
|
1,534 |
|
|
3,992 |
|
|
875 |
|
|
475 |
|
|
|
11,153 |
|
Amortization of intangible assets |
|
|
1,010 |
|
|
152 |
|
|
— |
|
|
— |
|
|
58 |
|
|
— |
|
|
|
1,220 |
|
Adjusted
EBITDA |
|
$ |
65,386 |
|
$ |
19,247 |
|
$ |
38,335 |
|
$ |
12,385 |
|
$ |
15,636 |
|
$ |
(23,595 |
) |
|
$ |
127,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2023 |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
274,892 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,867 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,331 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
83,471 |
|
Operating income |
|
$ |
216,504 |
|
$ |
81,296 |
|
$ |
109,818 |
|
$ |
48,196 |
|
$ |
47,167 |
|
$ |
(125,420 |
) |
|
$ |
377,561 |
|
Depreciation and amortization |
|
|
9,254 |
|
|
6,030 |
|
|
5,989 |
|
|
14,515 |
|
|
3,445 |
|
|
1,846 |
|
|
|
41,079 |
|
Amortization of intangible assets |
|
|
5,079 |
|
|
783 |
|
|
— |
|
|
— |
|
|
297 |
|
|
— |
|
|
|
6,159 |
|
Adjusted
EBITDA |
|
$ |
230,837 |
|
$ |
88,109 |
|
$ |
115,807 |
|
$ |
62,711 |
|
$ |
50,909 |
|
$ |
(123,574 |
) |
|
$ |
424,799 |
|
|
FTI CONSULTING, INC.RECONCILIATION OF NET
INCOME AND OPERATING INCOME TO ADJUSTED EBITDA(in
thousands) |
|
Three Months Ended December 31,
2022(Unaudited) |
|
Corporate Finance & Restructuring
(1) |
|
Forensic and Litigation Consulting
(1) |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
47,498 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,500 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,579 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,079 |
|
Operating income |
|
$ |
43,008 |
|
$ |
11,047 |
|
$ |
26,122 |
|
$ |
8,425 |
|
$ |
9,360 |
|
$ |
(25,306 |
) |
|
$ |
72,656 |
|
Depreciation and amortization |
|
|
1,734 |
|
|
1,206 |
|
|
1,183 |
|
|
3,226 |
|
|
618 |
|
|
688 |
|
|
|
8,655 |
|
Amortization of intangible assets |
|
|
1,940 |
|
|
242 |
|
|
— |
|
|
— |
|
|
141 |
|
|
— |
|
|
|
2,323 |
|
Special charges |
|
|
2,444 |
|
|
4,614 |
|
|
31 |
|
|
106 |
|
|
369 |
|
|
776 |
|
|
|
8,340 |
|
Adjusted
EBITDA |
|
$ |
49,126 |
|
$ |
17,109 |
|
$ |
27,336 |
|
$ |
11,757 |
|
$ |
10,488 |
|
$ |
(23,842 |
) |
|
$ |
91,974 |
|
|
|
Year Ended December 31, 2022 |
|
Corporate Finance & Restructuring
(1) |
|
Forensic and Litigation Consulting
(1) |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
235,514 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,918 |
) |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,047 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,235 |
|
Operating
income |
|
$ |
197,424 |
|
$ |
52,693 |
|
$ |
98,178 |
|
$ |
33,431 |
|
$ |
46,982 |
|
$ |
(124,830 |
) |
|
$ |
303,878 |
|
Depreciation and amortization |
|
|
6,965 |
|
|
5,289 |
|
|
4,881 |
|
|
13,161 |
|
|
2,580 |
|
|
2,821 |
|
|
|
35,697 |
|
Amortization of intangible assets |
|
|
7,976 |
|
|
977 |
|
|
— |
|
|
— |
|
|
689 |
|
|
1 |
|
|
|
9,643 |
|
Special charges |
|
|
2,444 |
|
|
4,614 |
|
|
31 |
|
|
106 |
|
|
369 |
|
|
776 |
|
|
|
8,340 |
|
Adjusted
EBITDA |
|
$ |
214,809 |
|
$ |
63,573 |
|
$ |
103,090 |
|
$ |
46,698 |
|
$ |
50,620 |
|
$ |
(121,232 |
) |
|
$ |
357,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Effective July 1, 2023, prior period segment information for
the Corporate Finance & Restructuring and Forensic and
Litigation Consulting segments has been recast in this press
release to include the reclassification of the portion of the
Company’s health solutions practice in the Forensic and Litigation
Consulting segment to the Company’s business transformation
practice within the Corporate Finance & Restructuring
segment. |
|
FTI CONSULTING, INC.OPERATING RESULTS BY
BUSINESS SEGMENT |
|
|
Segment Revenues |
|
AdjustedEBITDA |
|
Adjusted EBITDAMargin |
|
Utilization |
|
Average
BillableRate |
|
Revenue-GeneratingHeadcount |
|
|
(in thousands) |
|
|
|
|
|
|
|
(at period end) |
|
Three Months Ended
December 31, 2023 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
365,554 |
|
$ |
65,386 |
|
|
17.9 |
% |
|
61 |
% |
|
$ |
503 |
|
2,215 |
|
Forensic and Litigation Consulting |
|
165,469 |
|
|
19,247 |
|
|
11.6 |
% |
|
56 |
% |
|
$ |
391 |
|
1,447 |
|
Economic Consulting |
|
206,091 |
|
|
38,335 |
|
|
18.6 |
% |
|
65 |
% |
|
$ |
586 |
|
1,089 |
|
Technology (1) |
|
100,933 |
|
|
12,385 |
|
|
12.3 |
% |
|
N/M |
|
N/M |
|
628 |
|
Strategic Communications (1) |
|
86,637 |
|
|
15,636 |
|
|
18.0 |
% |
|
N/M |
|
N/M |
|
971 |
|
|
$ |
924,684 |
|
$ |
150,989 |
|
|
16.3 |
% |
|
|
|
|
|
6,350 |
|
Unallocated Corporate |
|
|
|
(23,595 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
127,394 |
|
|
13.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
1,346,678 |
|
$ |
230,837 |
|
|
17.1 |
% |
|
60 |
% |
|
$ |
494 |
|
2,215 |
|
Forensic and Litigation Consulting |
|
654,105 |
|
|
88,109 |
|
|
13.5 |
% |
|
57 |
% |
|
$ |
386 |
|
1,447 |
|
Economic Consulting |
|
771,374 |
|
|
115,807 |
|
|
15.0 |
% |
|
67 |
% |
|
$ |
547 |
|
1,089 |
|
Technology (1) |
|
387,855 |
|
|
62,711 |
|
|
16.2 |
% |
|
N/M |
|
N/M |
|
628 |
|
Strategic Communications (1) |
|
329,230 |
|
|
50,909 |
|
|
15.5 |
% |
|
N/M |
|
N/M |
|
971 |
|
|
$ |
3,489,242 |
|
$ |
548,373 |
|
|
15.7 |
% |
|
|
|
|
|
6,350 |
|
Unallocated Corporate |
|
|
|
(123,574 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
424,799 |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring (2) |
$ |
305,314 |
|
$ |
49,126 |
|
|
16.1 |
% |
|
56 |
% |
|
$ |
478 |
|
2,100 |
|
Forensic and Litigation Consulting (2) |
|
147,879 |
|
|
17,109 |
|
|
11.6 |
% |
|
53 |
% |
|
$ |
370 |
|
1,430 |
|
Economic Consulting |
|
172,007 |
|
|
27,336 |
|
|
15.9 |
% |
|
63 |
% |
|
$ |
522 |
|
1,007 |
|
Technology (1) |
|
76,802 |
|
|
11,757 |
|
|
15.3 |
% |
|
N/M |
|
N/M |
|
556 |
|
Strategic Communications (1) |
|
72,429 |
|
|
10,488 |
|
|
14.5 |
% |
|
N/M |
|
N/M |
|
970 |
|
|
$ |
774,431 |
|
$ |
115,816 |
|
|
15.0 |
% |
|
|
|
|
|
6,063 |
|
Unallocated Corporate |
|
|
|
(23,842 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
91,974 |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring (2) |
$ |
1,147,118 |
|
$ |
214,809 |
|
|
18.7 |
% |
|
60 |
% |
|
$ |
456 |
|
2,100 |
|
Forensic and Litigation Consulting (2) |
|
579,933 |
|
|
63,573 |
|
|
11.0 |
% |
|
54 |
% |
|
$ |
359 |
|
1,430 |
|
Economic Consulting |
|
695,208 |
|
|
103,090 |
|
|
14.8 |
% |
|
68 |
% |
|
$ |
508 |
|
1,007 |
|
Technology (1) |
|
319,983 |
|
|
46,698 |
|
|
14.6 |
% |
|
N/M |
|
N/M |
|
556 |
|
Strategic Communications (1) |
|
286,666 |
|
|
50,620 |
|
|
17.7 |
% |
|
N/M |
|
N/M |
|
970 |
|
|
$ |
3,028,908 |
|
$ |
478,790 |
|
|
15.8 |
% |
|
|
|
|
|
6,063 |
|
Unallocated Corporate |
|
|
|
(121,232 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
357,558 |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
(2)
Effective July 1, 2023, prior period segment information for
the Corporate Finance & Restructuring and Forensic and
Litigation Consulting segments has been recast in this press
release to include the reclassification of the portion of the
Company’s health solutions practice in the Forensic and Litigation
Consulting segment to the Company’s business transformation
practice within the Corporate Finance & Restructuring
segment. |
|
FTI CONSULTING, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS(in
thousands) |
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Operating
activities |
|
|
|
Net
income |
$ |
274,892 |
|
|
$ |
235,514 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
41,079 |
|
|
|
35,898 |
|
Amortization of intangible assets |
|
6,159 |
|
|
|
9,643 |
|
Acquisition-related contingent consideration |
|
3,818 |
|
|
|
2,172 |
|
Provision for expected credit losses |
|
35,149 |
|
|
|
19,684 |
|
Share-based compensation |
|
29,534 |
|
|
|
25,414 |
|
Amortization of debt issuance costs and other |
|
1,925 |
|
|
|
2,224 |
|
Deferred income taxes |
|
(25,453 |
) |
|
|
(10,456 |
) |
Changes in operating assets and liabilities, net of effects from
acquisitions: |
|
|
|
Accounts receivable, billed and unbilled |
|
(229,296 |
) |
|
|
(182,667 |
) |
Notes receivable |
|
(22,919 |
) |
|
|
(403 |
) |
Prepaid expenses and other assets |
|
7,606 |
|
|
|
459 |
|
Accounts payable, accrued expenses and other |
|
8,687 |
|
|
|
8,430 |
|
Income taxes |
|
29,335 |
|
|
|
(4,322 |
) |
Accrued compensation |
|
50,186 |
|
|
|
37,931 |
|
Billings in excess of services provided |
|
13,759 |
|
|
|
9,273 |
|
|
Net cash provided by
operating activities |
|
224,461 |
|
|
|
188,794 |
|
Investing
activities |
|
|
|
Payments for acquisition of businesses, net of cash
received |
|
— |
|
|
|
(6,742 |
) |
Purchases of property and equipment and other |
|
(49,479 |
) |
|
|
(53,319 |
) |
Purchase of short-term investment |
|
(24,356 |
) |
|
|
— |
|
|
Net cash used in
investing activities |
|
(73,835 |
) |
|
|
(60,061 |
) |
Financing
activities |
|
|
|
Borrowings under revolving line of credit |
|
835,000 |
|
|
|
165,000 |
|
Repayments under revolving line of credit |
|
(835,000 |
) |
|
|
(165,000 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(3,993 |
) |
Repayment of convertible notes |
|
(315,763 |
) |
|
|
— |
|
Purchase and retirement of common stock |
|
(20,982 |
) |
|
|
(85,424 |
) |
Share-based compensation tax withholdings and other |
|
(15,078 |
) |
|
|
(15,330 |
) |
Payments for business acquisition liabilities |
|
(3,651 |
) |
|
|
(4,848 |
) |
Deposits and other |
|
811 |
|
|
|
3,583 |
|
|
Net cash used in
financing activities |
|
(354,663 |
) |
|
|
(106,012 |
) |
Effect of exchange
rate changes on cash and cash equivalents |
|
15,571 |
|
|
|
(25,518 |
) |
Net decrease in
cash and cash equivalents |
|
(188,466 |
) |
|
|
(2,797 |
) |
Cash and cash
equivalents, beginning of period |
|
491,688 |
|
|
|
494,485 |
|
Cash and cash
equivalents, end of period |
$ |
303,222 |
|
|
$ |
491,688 |
|
|
FTI Consulting (NYSE:FCN)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
FTI Consulting (NYSE:FCN)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024