FTI Consulting, Inc. (NYSE:FCN) (the “Company”), the global
business advisory firm dedicated to helping organizations protect
and enhance their enterprise value, today released its financial
results for the quarter ended March 31, 2016.
For the quarter, revenues increased 8.8 percent to $470.3
million compared to $432.3 million in the prior year quarter.
Excluding the estimated negative impact of foreign currency
translation (“FX”), revenues increased 10.4 percent compared to the
prior year quarter. Fully diluted earnings per share (“EPS”) were
$0.73 compared to $0.57 in the prior year quarter. First quarter
2016 EPS included a special charge of $5.1 million related to the
previously announced actions taken to realign the Technology
segment and $1.0 million in a fair value adjustment for an
acquisition contingent consideration liability, which reduced EPS
by $0.08 and $0.02, respectively. Adjusted EPS and Adjusted EBITDA
were $0.83 and $68.9 million, respectively, compared to $0.57 and
$58.7 million respectively, in the prior year quarter. Adjusted
EBITDA was 14.6 percent of revenues as compared to 13.6 percent of
revenues in the prior year quarter.
Adjusted EPS, Adjusted EBITDA and Adjusted Segment EBITDA are
non-GAAP measures defined elsewhere in this press release and are
reconciled to GAAP measures in the accompanying financial
tables.
Commenting on these results, Steven H. Gunby, President and
Chief Executive Officer of FTI Consulting, said, “In the first
quarter, our teams delivered record quarterly revenues and adjusted
earnings per share. During the quarter, two businesses, Economic
Consulting and Corporate Finance & Restructuring, significantly
outperformed expectations. And importantly, no businesses
underperformed our expectations.”
Mr. Gunby added, “Though the quarter benefited from a variety of
factors, the core of the success was the result of individuals and
teams driving client satisfaction and enhancing our market
positions and businesses. Combined, these factors resulted in a
quarter with strong organic growth and profitability.”
Cash Position and Capital AllocationNet cash
used by operating activities for the quarter was $33.1 million
compared to net cash used by operating activities of $51.3 million
in the prior year quarter. Cash and cash equivalents were $114.5
million at March 31, 2016 compared to $225.3 million at March 31,
2015. During the quarter, the Company spent $2.9 million to
repurchase 85,100 shares of its common stock at an average price of
$34.12 under its $50 million share repurchase authorization, which
expires on May 5, 2016.
First Quarter Segment Results
Corporate Finance & Restructuring Revenues
in the Corporate Finance & Restructuring segment increased
$20.9 million or 19.7 percent to $127.2 million in the quarter
compared to $106.2 million in the prior year quarter. Excluding the
estimated negative impact of FX, revenues increased $23.0 million
or 21.6 percent compared to the prior year quarter. The increase in
revenues was driven primarily by higher demand and realized rates
for the segment’s distressed services in North America. Adjusted
Segment EBITDA was $31.6 million, or 24.9 percent of segment
revenues, compared to $22.5 million, or 21.2 percent of segment
revenues in the prior year quarter. Stronger demand with improved
leverage, higher realized rates and success fees in North America
distressed services coupled with lower bad debt expenses due to
recoveries of amounts previously reserved drove the increase in
Adjusted Segment EBITDA margin.
Forensic and Litigation ConsultingRevenues in
the Forensic and Litigation Consulting segment decreased $4.3
million or 3.5 percent to $119.0 million in the quarter compared to
$123.3 million in the prior year quarter. Excluding the estimated
negative impact of FX, revenues decreased $2.6 million or 2.1
percent compared to the prior year quarter. Lower demand for the
segment’s health solutions, construction solutions and global
dispute advisory practices were partially offset by higher demand
for the segment’s financial and enterprise data analytics and
investigations practices. Adjusted Segment EBITDA was $19.8
million, or 16.6 percent of segment revenues, compared to $22.1
million, or 17.9 percent of segment revenues in the prior year
quarter. The decline in Adjusted Segment EBITDA margin was due to
decreased demand in the segment’s construction solutions and health
solutions practices. This was partially offset by higher
utilization in the segment’s financial and enterprise data
analytics practice coupled with lower bad debt expenses and lower
personnel costs related to health solutions overhead reductions
taken in the prior year.
Economic ConsultingRevenues in the Economic
Consulting segment increased $24.7 million or 23.2 percent to
$130.7 million in the quarter compared to $106.1 million in the
prior year quarter. Excluding the estimated negative impact of FX,
revenues increased $25.9 million or 24.4 percent compared to the
prior year quarter. Higher demand for the segment’s mergers and
acquisitions (“M&A”) related antitrust and financial economics
services drove the increase. Adjusted Segment EBITDA was $21.3
million, or 16.3 percent of segment revenues, compared to $11.6
million, or 10.9 percent of segment revenues in the prior year
quarter. Higher utilization in North America, higher realized bill
rates in Europe, the Middle East and Africa (“EMEA”) and North
America, lower bad debt expense and a reduced percentage of
overhead costs in relation to the revenue increase drove the
increase in Adjusted EBITDA margin.
TechnologyRevenues in the Technology segment
decreased $6.4 million or 11.7 percent to $48.3 million in the
quarter compared to $54.7 million in the prior year quarter.
Excluding the estimated negative impact of FX, revenues decreased
$5.7 million or 10.3 percent compared to the prior year quarter.
Declines in demand for cross-border investigations and financial
services litigation, were partially offset by an increase in
M&A-related “second request” activity. Adjusted Segment EBITDA
was $7.8 million, or 16.2 percent of segment revenues, compared to
$10.1 million, or 18.4 percent of segment revenues in the prior
year quarter. The decline in Adjusted Segment EBITDA margin was due
to lower demand for managed review services and lower realized
pricing in consulting services, which was partially offset by a
decline in research and development expenses.
Strategic CommunicationsRevenues in the
Strategic Communications segment increased $3.0 million or 7.1
percent to $45.1 million in the quarter compared to $42.1 million
in the prior year quarter. Excluding the estimated negative impact
of FX, revenues increased $4.4 million or 10.4 percent compared to
the prior year quarter. This increase in revenues was primarily
driven by increased project-based revenues in North America and
EMEA, predominantly in public affairs and financial communications,
which was partially offset by a decrease in revenues from crisis
mandates. Adjusted Segment EBITDA was $6.1 million, or 13.5 percent
of segment revenues, compared to $5.8 million, or 13.7 percent of
segment revenues in the prior year quarter.
Revised 2016 Guidance The Company now estimates
that revenues for 2016 will be between $1.84 billion and $1.87
billion, which compares to the previous range of between $1.80
billion and $1.85 billion and Adjusted EPS will be between $2.15
and $2.45, which compares to the previous range of between $1.90
and $2.15.
First Quarter 2016 Conference CallFTI
Consulting will host a conference call for analysts and investors
to discuss first quarter 2016 financial results at 9:00 a.m.
Eastern Time on April 28, 2016. The call can be accessed live and
will be available for replay over the Internet for 90 days by
logging onto the Company's website at www.fticonsulting.com.
About FTI ConsultingFTI Consulting, Inc. is a
global business advisory firm dedicated to helping organizations
protect and enhance enterprise value in an increasingly complex
legal, regulatory and economic environment. 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 in areas such as investigations,
litigation, mergers and acquisitions, regulatory issues, reputation
management, strategic communications and restructuring. The Company
generated $1.78 billion in revenues during fiscal year 2015. More
information can be found at www.fticonsulting.com.
Use of Non-GAAP MeasuresNote: We define Segment
Operating Income (Loss) as a segment’s share of consolidated
operating income (Loss). We define Total Segment Operating Income
(Loss) as the total of Segment Operating Income (Loss) for all
segments, which excludes unallocated corporate expenses. We use
Segment Operating Income (Loss) for the purpose of calculating
Adjusted Segment EBITDA. We define Adjusted EBITDA as consolidated
net income (loss) 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 Segment EBITDA as a
segment’s share of consolidated operating income (loss) before
depreciation, amortization of intangible assets, remeasurement of
acquisition-related contingent consideration, special charges and
goodwill impairment charges. We define Total Adjusted Segment
EBITDA as the total of Adjusted Segment EBITDA for all segments,
which excludes unallocated corporate expenses. We define Adjusted
Segment EBITDA margin as Adjusted Segment EBITDA as a percentage of
a segment’s share of revenue. We use Adjusted Segment EBITDA to
internally evaluate the financial performance of our segments
because we believe it is a useful supplemental measure which
reflects current core operating performance and provides an
indicator of the segment’s ability to generate cash. We also
believe that these measures, when considered together with our GAAP
financial results, provide management and investors with a more
complete understanding of our operating results, including
underlying trends, by excluding the effects of remeasurement of
acquisition-related contingent consideration, special charges and
goodwill impairment charges. In addition, EBITDA and Adjusted
EBITDA are common alternative measures 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 to
the operating results of other companies.
We define Adjusted Net Income and Adjusted Earnings per Diluted
Share (“Adjusted EPS”) as net income (loss) and earnings per
diluted share, respectively, excluding the impact of remeasurement
of acquisition-related contingent consideration, special charges,
goodwill impairment charges and losses on early extinguishment of
debt. 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
measure, when considered together with our GAAP financial results,
provides management and investors with a more complete
understanding of our business operating results, including
underlying trends, by excluding the effects of remeasurement of
acquisition-related contingent consideration, special charges,
goodwill impairment charges and losses on early extinguishment of
debt. Non-GAAP financial measures are not defined in the same
manner by all companies and may not be comparable to 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
GAAP to non-GAAP financial measures are included in the financial
tables accompanying this press release.
Safe Harbor StatementThis 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 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 flow 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, adverse
financial, real estate or other market and general economic
conditions, which could impact each of our segments differently,
the pace and timing of the consummation and integration of past and
future acquisitions, the Company's ability to realize cost savings
and efficiencies, competitive and general economic conditions,
retention of staff and clients and other risks described under the
heading "Item 1A Risk Factors" in the Company's most recent Form
10-K filed with the SEC and in the Company's other filings with the
SEC, including the risks set forth under "Risks Related to Our
Reportable Segments" and "Risks Related to Our Operations". 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 STATEMENTS OF COMPREHENSIVE
INCOME |
|
(in thousands, except per share
data) |
|
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
Revenues |
$ |
470,285 |
|
|
$ |
432,338 |
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
Direct cost of revenues |
|
305,636 |
|
|
|
279,030 |
|
|
Selling, general and administrative
expenses |
|
103,609 |
|
|
|
102,214 |
|
|
Special charges |
|
5,061 |
|
|
|
- |
|
|
Acquisition-related contingent
consideration |
|
1,134 |
|
|
|
234 |
|
|
Amortization of other intangible
assets |
|
2,606 |
|
|
|
3,012 |
|
|
|
|
418,046 |
|
|
|
384,490 |
|
|
|
|
|
|
|
Operating
income |
|
52,239 |
|
|
|
47,848 |
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
Interest income and other |
|
2,557 |
|
|
|
(137 |
) |
|
Interest expense |
|
(6,229 |
) |
|
|
(12,368 |
) |
|
|
|
(3,672 |
) |
|
|
(12,505 |
) |
|
|
|
|
|
|
Income before
income tax provision |
|
48,567 |
|
|
|
35,343 |
|
|
|
|
|
|
|
Income tax
provision |
|
18,386 |
|
|
|
11,657 |
|
|
|
|
|
|
|
Net
income |
$ |
30,181 |
|
|
$ |
23,686 |
|
|
|
|
|
|
|
Earnings per
common share - basic |
$ |
0.75 |
|
|
$ |
0.59 |
|
|
Weighted
average common shares outstanding - basic |
|
40,506 |
|
|
|
40,384 |
|
|
|
|
|
|
|
Earnings per
common share - diluted |
$ |
0.73 |
|
|
$ |
0.57 |
|
|
Weighted
average common shares outstanding - diluted |
|
41,148 |
|
|
|
41,324 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive loss, net of tax: |
|
|
|
|
Foreign currency translation
adjustments, net of tax $0 |
$ |
(358 |
) |
|
$ |
(20,482 |
) |
|
Other
comprehensive loss, net of tax |
|
(358 |
) |
|
|
(20,482 |
) |
|
Comprehensive
income |
$ |
29,823 |
|
|
$ |
3,204 |
|
|
|
|
|
|
|
FTI CONSULTING, INC. |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
|
|
(in thousands, except per share
data) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
$ |
30,181 |
|
|
$ |
23,686 |
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Special charges, net of
tax (1) |
|
|
3,269 |
|
|
|
- |
|
|
|
Remeasurement of
acquisition-related contingent consideration, net of tax
(2) |
|
|
600 |
|
|
|
- |
|
|
|
Adjusted Net Income |
|
|
|
$ |
34,050 |
|
|
$ |
23,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share – diluted |
|
|
$ |
0.73 |
|
|
$ |
0.57 |
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Special charges, net of
tax (1) |
|
|
0.08 |
|
|
|
- |
|
|
|
Remeasurement of
acquisition-related contingent consideration, net of tax
(2) |
|
|
0.02 |
|
|
|
- |
|
|
|
Adjusted earnings per common share– diluted |
|
$ |
0.83 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding –
diluted |
|
|
41,148 |
|
|
|
41,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The tax effect takes into account the tax treatment and
related tax rates that apply to each adjustment in the applicable
tax jurisdiction. As a result, the effective tax rates for the
adjustments related to special charges for the three months ended
March 31, 2016 was 35.4%. The tax expense related to the
adjustments for special charges for the three months ended March
31, 2016 was $1.8 million or $0.04 impact on adjusted earnings per
diluted share. There were no special charges for 2015. |
|
|
|
|
(2) The tax effect takes into account the tax treatment and
related tax rates that apply to each adjustment in the applicable
tax jurisdiction. As a result, the effective tax rate for the
adjustments related to the remeasurement of acquistion-related
contingent consideration for the three months ended March 31, 2016
was 38.8%. The tax expense related to the adjustment for the
remeasurement of acquistion-related contingent consideration for
the three months ended March 31, 2016 were $0.4 million and
$0.01 impact on adjusted earnings per diluted share. There were no
adjustments related to the remeasurement of acquisition-related
contingent consideration in 2015. |
|
|
|
|
FTI CONSULTING, INC. |
|
OPERATING RESULTS BY BUSINESS
SEGMENT |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Average |
|
Revenue- |
|
|
|
Segment |
|
Adjusted |
|
Adjusted EBITDA |
|
|
|
Billable |
|
Generating |
|
|
|
Revenues |
|
EBITDA |
|
Margin |
|
Utilization |
|
Rate |
|
Headcount |
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
(at period end) |
|
Three Months Ended March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Finance & Restructuring |
|
$ |
127,156 |
|
|
$ |
31,603 |
|
|
|
24.9 |
% |
|
|
74 |
% |
|
$ |
384 |
|
|
857 |
|
Forensic and
Litigation Consulting |
|
|
119,004 |
|
|
|
19,808 |
|
|
|
16.6 |
% |
|
|
64 |
% |
|
$ |
333 |
|
|
1,132 |
|
Economic
Consulting |
|
|
130,731 |
|
|
|
21,319 |
|
|
|
16.3 |
% |
|
|
79 |
% |
|
$ |
531 |
|
|
607 |
|
Technology (1) |
|
|
48,281 |
|
|
|
7,823 |
|
|
|
16.2 |
% |
|
N/M |
|
N/M |
|
313 |
|
Strategic
Communications (1) |
|
|
45,113 |
|
|
|
6,108 |
|
|
|
13.5 |
% |
|
N/M |
|
N/M |
|
601 |
|
|
|
$ |
470,285 |
|
|
|
86,661 |
|
|
|
18.4 |
% |
|
|
|
|
|
3,510 |
|
Corporate |
|
|
|
|
(17,804 |
) |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
$ |
68,857 |
|
|
|
14.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Finance & Restructuring |
|
$ |
106,212 |
|
|
$ |
22,480 |
|
|
|
21.2 |
% |
|
|
74 |
% |
|
$ |
374 |
|
|
735 |
|
Forensic and
Litigation Consulting |
|
|
123,265 |
|
|
|
22,071 |
|
|
|
17.9 |
% |
|
|
68 |
% |
|
$ |
318 |
|
|
1,145 |
|
Economic
Consulting |
|
|
106,081 |
|
|
|
11,556 |
|
|
|
10.9 |
% |
|
|
73 |
% |
|
$ |
501 |
|
|
566 |
|
Technology (1) |
|
|
54,654 |
|
|
|
10,073 |
|
|
|
18.4 |
% |
|
N/M |
|
N/M |
|
360 |
|
Strategic
Communications (1) |
|
|
42,126 |
|
|
|
5,752 |
|
|
|
13.7 |
% |
|
N/M |
|
N/M |
|
556 |
|
|
|
$ |
432,338 |
|
|
|
71,932 |
|
|
|
16.6 |
% |
|
|
|
|
|
3,362 |
|
Corporate |
|
|
|
|
(13,264 |
) |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
$ |
58,668 |
|
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
RECONCILIATION OF NET INCOME AND OPERATING
INCOME TO ADJUSTED EBITDA |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016 |
|
|
Corporate Finance &
Restructuring |
|
Forensic and Litigation
Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Corp HQ |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
30,181 |
|
|
|
|
Interest
income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,557 |
) |
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,229 |
|
|
|
|
Income tax
provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,386 |
|
|
|
Operating income (loss) |
|
|
|
$ |
30,076 |
|
|
$ |
18,213 |
|
|
$ |
20,211 |
|
|
$ |
(1,180 |
) |
|
$ |
3,665 |
|
|
$ |
(18,746 |
) |
|
$ |
52,239 |
|
|
|
|
Depreciation and amortization |
|
|
722 |
|
|
|
1,079 |
|
|
|
925 |
|
|
|
3,784 |
|
|
|
519 |
|
|
|
942 |
|
|
|
7,971 |
|
|
|
|
Amortization of other intangible assets |
|
|
805 |
|
|
|
516 |
|
|
|
183 |
|
|
|
158 |
|
|
|
944 |
|
|
|
- |
|
|
|
2,606 |
|
|
|
|
Special
charges |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,061 |
|
|
|
- |
|
|
|
- |
|
|
|
5,061 |
|
|
|
|
Fair Value
Remeasurement of Contingent Consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
980 |
|
|
|
- |
|
|
|
980 |
|
|
|
Adjusted
EBITDA |
|
|
|
$ |
31,603 |
|
|
$ |
19,808 |
|
|
$ |
21,319 |
|
|
$ |
7,823 |
|
|
$ |
6,108 |
|
|
$ |
(17,804 |
) |
|
$ |
68,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015 |
|
|
Corporate Finance / Restructuring |
|
Forensic and Litigation
Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Corp HQ |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
23,686 |
|
|
|
|
Interest
income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
137 |
|
|
|
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,368 |
|
|
|
|
Income tax
provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,657 |
|
|
|
Operating
income |
|
|
|
$ |
20,764 |
|
|
$ |
20,474 |
|
|
$ |
10,296 |
|
|
$ |
6,198 |
|
|
$ |
4,197 |
|
|
$ |
(14,081 |
) |
|
$ |
47,848 |
|
|
|
|
Depreciation and amortization |
|
|
782 |
|
|
|
1,015 |
|
|
|
952 |
|
|
|
3,677 |
|
|
|
565 |
|
|
|
817 |
|
|
|
7,808 |
|
|
|
|
Amortization of other intangible assets |
|
|
934 |
|
|
|
582 |
|
|
|
308 |
|
|
|
198 |
|
|
|
990 |
|
|
|
- |
|
|
|
3,012 |
|
|
|
Adjusted
EBITDA |
|
|
|
$ |
22,480 |
|
|
$ |
22,071 |
|
|
$ |
11,556 |
|
|
$ |
10,073 |
|
|
$ |
5,752 |
|
|
$ |
(13,264 |
) |
|
$ |
58,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTI CONSULTING, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Operating
activities |
|
|
|
|
Net income |
$ |
30,181 |
|
|
$ |
23,686 |
|
|
Adjustments to
reconcile net income to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
|
7,971 |
|
|
|
7,808 |
|
|
Amortization of other intangible
assets |
|
2,606 |
|
|
|
3,012 |
|
|
Acquisition-related contingent
consideration |
|
1,134 |
|
|
|
234 |
|
|
Provision for doubtful
accounts |
|
437 |
|
|
|
2,998 |
|
|
Non-cash share-based
compensation |
|
6,158 |
|
|
|
6,736 |
|
|
Non-cash interest expense |
|
497 |
|
|
|
671 |
|
|
Other |
|
(81 |
) |
|
|
(132 |
) |
|
Changes in operating assets and
liabilities, net of effects from acquisitions: |
|
|
|
|
Accounts receivable, billed and
unbilled |
|
(52,047 |
) |
|
|
(41,330 |
) |
|
Notes receivable |
|
3,853 |
|
|
|
(1,003 |
) |
|
Prepaid expenses and other
assets |
|
3,824 |
|
|
|
3,583 |
|
|
Accounts payable, accrued expenses
and other |
|
5,619 |
|
|
|
15,959 |
|
|
Income taxes |
|
17,561 |
|
|
|
5,524 |
|
|
Accrued compensation |
|
(65,511 |
) |
|
|
(74,987 |
) |
|
Billings in excess of services
provided |
|
4,699 |
|
|
|
(4,092 |
) |
|
Net
cash used in operating activities |
|
(33,099 |
) |
|
|
(51,333 |
) |
|
|
|
|
|
|
Investing
activities |
|
|
|
|
Purchases of property and
equipment |
|
(6,362 |
) |
|
|
(8,876 |
) |
|
Other |
|
34 |
|
|
|
71 |
|
|
Net
cash used in investing activities |
|
(6,328 |
) |
|
|
(8,805 |
) |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
Borrowings under revolving line of
credit, net |
|
7,000 |
|
|
|
- |
|
|
Purchase and retirement of common
stock |
|
(2,903 |
) |
|
|
- |
|
|
Net issuance of common stock under
equity compensation plans |
|
(1,371 |
) |
|
|
4,031 |
|
|
Deposits |
|
2,590 |
|
|
|
1,380 |
|
|
Other |
|
(135 |
) |
|
|
(85 |
) |
|
Net
cash provided by financing activities |
|
5,181 |
|
|
|
5,326 |
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(1,063 |
) |
|
|
(3,573 |
) |
|
|
|
|
|
|
Net decrease in cash
and cash equivalents |
|
(35,309 |
) |
|
|
(58,385 |
) |
|
Cash and cash
equivalents, beginning of period |
|
149,760 |
|
|
|
283,680 |
|
|
Cash and cash
equivalents, end of period |
$ |
114,451 |
|
|
$ |
225,295 |
|
|
|
|
|
|
|
FTI CONSULTING, INC. |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except per share
amounts) (unaudited) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Assets |
|
|
|
|
Current
assets |
|
|
|
|
Cash and cash
equivalents |
$ |
114,451 |
|
|
$ |
149,760 |
|
|
Accounts
receivable: |
|
|
|
|
Billed receivables |
|
420,824 |
|
|
|
405,000 |
|
|
Unbilled receivables |
|
329,933 |
|
|
|
280,538 |
|
|
Allowance for doubtful
accounts and unbilled services |
|
(197,527 |
) |
|
|
(185,754 |
) |
|
Accounts receivable,
net |
|
553,230 |
|
|
|
499,784 |
|
|
Current portion
of notes receivable |
|
31,474 |
|
|
|
36,115 |
|
|
Prepaid expenses
and other current assets |
|
45,196 |
|
|
|
55,966 |
|
|
Total current assets |
|
744,351 |
|
|
|
741,625 |
|
|
Property and equipment,
net of accumulated depreciation |
|
71,263 |
|
|
|
74,760 |
|
|
Goodwill |
|
1,198,070 |
|
|
|
1,198,298 |
|
|
Other intangible
assets, net of amortization |
|
61,193 |
|
|
|
63,935 |
|
|
Notes receivable, net
of current portion |
|
108,095 |
|
|
|
106,882 |
|
|
Other assets |
|
42,072 |
|
|
|
43,518 |
|
|
Total assets |
$ |
2,225,044 |
|
|
$ |
2,229,018 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts payable, accrued expenses
and other |
$ |
95,606 |
|
|
$ |
89,845 |
|
|
Accrued compensation |
|
157,687 |
|
|
|
227,783 |
|
|
Billings in excess of services
provided |
|
34,226 |
|
|
|
29,449 |
|
|
Total current liabilities |
|
287,519 |
|
|
|
347,077 |
|
|
Long-term debt,
net |
|
501,961 |
|
|
|
494,772 |
|
|
Deferred income
taxes |
|
150,557 |
|
|
|
139,787 |
|
|
Other liabilities |
|
103,761 |
|
|
|
99,779 |
|
|
Total
liabilities |
|
1,043,798 |
|
|
|
1,081,415 |
|
|
|
|
|
|
|
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 ―
41,385 (2016) and 41,234 (2015) |
|
414 |
|
|
|
412 |
|
|
Additional paid-in capital |
|
404,523 |
|
|
|
400,705 |
|
|
Retained earnings |
|
885,662 |
|
|
|
855,481 |
|
|
Accumulated other comprehensive
loss |
|
(109,353 |
) |
|
|
(108,995 |
) |
|
Total stockholders' equity |
|
1,181,246 |
|
|
|
1,147,603 |
|
|
Total liabilities and stockholders' equity |
$ |
2,225,044 |
|
|
$ |
2,229,018 |
|
|
|
|
|
|
|
FTI Consulting, Inc.
1101 K Street NW
Washington, DC 20005
+1.202.312.9100
Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com
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