FTI Consulting, Inc. (NYSE: FCN) today released financial results
for the first quarter ended March 31, 2024.
First quarter 2024 revenues of $928.6 million increased $121.8
million, or 15.1%, compared to revenues of $806.7 million in the
prior year quarter. The increase in revenues was primarily due to
higher demand across all business segments. Net income of $80.0
million compared to $47.5 million in the prior year quarter. The
increase in net income was primarily due to higher revenues, a
lower effective tax rate and lower FX remeasurement losses compared
to the prior year quarter, which was partially offset by an
increase in compensation and selling, general and administrative
(“SG&A”) expenses compared to the prior year quarter. Adjusted
EBITDA of $111.1 million, or 12.0% of revenues, compared to $78.4
million, or 9.7% of revenues, in the prior year quarter. First
quarter 2024 earnings per diluted share (“EPS”) of $2.23 compared
to $1.34 in the prior year quarter.
Steven H. Gunby, President and Chief Executive Officer of FTI
Consulting, commented, "Our sustained double-digit organic revenue
growth this quarter reflects strong underlying business
performance, which, in turn, reflects continued progress on our
twin overriding goals: continuing to help clients with their most
fundamental opportunities and challenges, and continuing to attract
and develop terrific professionals."
Cash Position and Capital Allocation
Net cash used in operating activities of $274.8 million for the
quarter ended March 31, 2024 compared to $254.2 million for the
quarter ended March 31, 2023. The year-over-year increase in net
cash used in operating activities was primarily due to an increase
in salaries, higher annual bonus payments and an increase in
forgivable loan issuances, which was partially offset by higher
cash collections compared to the prior year quarter.
Cash and cash equivalents of $244.0 million at March 31, 2024
compared to $238.5 million at March 31, 2023 and $303.2 million at
December 31, 2023. Total debt, net of cash and short-term
investments, of ($39.0) million at March 31, 2024 compared to
$122.7 million at March 31, 2023 and ($328.7) million at December
31, 2023. The sequential increase in total debt, net of cash and
short-term investments, was primarily due to higher borrowings
under the Company's senior secured bank revolving credit facility,
which were primarily used for annual bonus payments.
There were no share repurchases during the quarter ended March
31, 2024. As of March 31, 2024, approximately $460.7 million
remained available for common stock repurchases under the Company’s
stock repurchase program.
First Quarter
2024 Segment Results
Corporate Finance & RestructuringRevenues
in the Corporate Finance & Restructuring segment increased
$50.4 million, or 16.0%, to $366.0 million in the quarter compared
to $315.7 million in the prior year quarter. The increase in
revenues was primarily due to higher restructuring, business
transformation & strategy and transactions revenues. Adjusted
Segment EBITDA of $75.2 million, or 20.6% of segment revenues,
compared to $51.8 million, or 16.4% 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 SG&A expenses compared to the
prior year quarter.
Forensic and Litigation ConsultingRevenues in
the Forensic and Litigation Consulting segment increased $18.3
million, or 11.6%, to $176.1 million in the quarter compared to
$157.7 million in the prior year quarter. Acquisition-related
revenues contributed $0.5 million in the quarter. The increase in
revenues was primarily due to higher demand and realized bill rates
for investigations and disputes services. Adjusted Segment EBITDA
of $33.7 million, or 19.1% of segment revenues, compared to $21.8
million, or 13.8% of segment revenues, in the prior year quarter.
The increase in Adjusted Segment EBITDA was primarily due to higher
revenues, which was partially offset by an increase in compensation
compared to the prior year quarter.
Economic ConsultingRevenues in the Economic
Consulting segment increased $35.0 million, or 20.6%, to $204.5
million in the quarter compared to $169.6 million in the prior year
quarter. The increase in revenues was primarily due to higher
demand and realized bill rates for non-merger and acquisition
(“M&A”)-related antitrust and financial economics services.
Adjusted Segment EBITDA of $14.2 million, or 6.9% of segment
revenues, compared to $14.2 million, or 8.4% of segment revenues,
in the prior year quarter. The decrease in Adjusted Segment EBITDA
was primarily due to an increase in compensation, which includes an
increase in variable compensation and the impact of a 5.8% increase
in billable headcount, higher contractor costs and an increase in
SG&A expenses, primarily related to an increase in bad debt,
compared to the prior year quarter.
TechnologyRevenues in the Technology segment
increased $10.1 million, or 11.1%, to $100.7 million in the quarter
compared to $90.6 million in the prior year quarter. The increase
in revenues was primarily due to higher demand for M&A-related
“second request” and information governance, privacy & security
services, which was partially offset by lower demand for
investigations services. Adjusted Segment EBITDA of $14.6 million,
or 14.5% of segment revenues, compared to $15.4 million, or 17.0%
of segment revenues, in the prior year quarter. The decrease in
Adjusted Segment EBITDA was primarily due to an increase in
compensation, which includes the impact of an 11.2% increase in
billable headcount, higher as-needed consultant costs and an
increase in SG&A expenses compared to the prior year
quarter.
Strategic CommunicationsRevenues in the
Strategic Communications segment increased $8.1 million, or 11.1%,
to $81.2 million in the quarter compared to $73.1 million in the
prior year quarter. Excluding the estimated positive impact from
foreign currency translation, revenues increased $7.1 million, or
9.7%, compared to the prior year quarter. The increase in revenues
was primarily due to higher demand for public affairs and corporate
reputation services. Adjusted Segment EBITDA of $12.4 million, or
15.3% of segment revenues, compared to $9.6 million, or 13.1% 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 an increase in compensation and higher
SG&A expenses compared to the prior year quarter.
First Quarter
2024 Conference CallFTI
Consulting will host a conference call for analysts and investors
to discuss first quarter 2024 financial results at 9:00 a.m.
Eastern Time on Thursday, April 25, 2024. The call can be
accessed live and will be available for replay over the internet
for 90 days by logging onto the Company’s investor relations
website here.
About FTI ConsultingFTI Consulting, Inc. is a
global business advisory firm dedicated to helping organizations
manage change, mitigate risk and resolve disputes: financial,
legal, operational, political & regulatory, reputational and
transactional. With more than 8,000 employees located in 33
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 $3.49 billion in revenues during fiscal year 2023. More
information can be found at www.fticonsulting.com.
Non-GAAP Financial MeasuresIn the accompanying
analysis of financial information, we sometimes use information
derived from consolidated and segment financial information that
may not be presented in our financial statements or prepared in
accordance with generally accepted accounting principles in the
United States ("GAAP"). Certain of these financial measures are
considered not in conformity with GAAP ("non-GAAP financial
measures") under the United States Securities and Exchange
Commission ("SEC") rules. Specifically, we have referred to the
following non-GAAP financial measures:
- Total Segment
Operating Income
- Adjusted EBITDA
- Total Adjusted
Segment EBITDA
- Adjusted EBITDA
Margin
- Adjusted Net
Income
- Adjusted Earnings
per Diluted Share
We have included the definitions of Segment Operating Income and
Adjusted Segment EBITDA, which are GAAP financial measures, below
in order to more fully define the components of certain non-GAAP
financial measures presented in this press release. We define
Segment Operating Income as a segment’s share of consolidated
operating income. We define Total Segment Operating Income, which
is a non-GAAP financial measure, as the total of Segment Operating
Income for all segments, which excludes unallocated corporate
expenses. We use Segment Operating Income for the purpose of
calculating Adjusted Segment EBITDA. We define Adjusted Segment
EBITDA as a segment’s share of consolidated operating income before
depreciation, amortization of intangible assets, remeasurement of
acquisition-related contingent consideration, special charges and
goodwill impairment charges. We use Adjusted Segment EBITDA as a
basis to internally evaluate the financial performance of our
segments because we believe it reflects current core operating
performance and provides an indicator of the segment’s ability to
generate cash.
We define Total Adjusted Segment EBITDA, which is a non-GAAP
financial measure, as the total of Adjusted Segment EBITDA for all
segments, which excludes unallocated corporate expenses. We define
Adjusted EBITDA, which is a non-GAAP financial measure, as
consolidated net income before income tax provision, other
non-operating income (expense), depreciation, amortization of
intangible assets, remeasurement of acquisition-related contingent
consideration, special charges, goodwill impairment charges, gain
or loss on sale of a business and losses on early extinguishment of
debt. We believe that these non-GAAP financial measures, when
considered together with our GAAP financial results and GAAP
financial measures, provide management and investors with a more
complete understanding of our operating results, including
underlying trends. In addition, EBITDA is a common alternative
measure of operating performance used by many of our competitors.
It is used by investors, financial analysts, rating agencies and
others to value and compare the financial performance of companies
in our industry. Therefore, we also believe that these non-GAAP
financial measures, considered along with corresponding GAAP
financial measures, provide management and investors with
additional information for comparison of our operating results with
the operating results of other companies. We define Adjusted EBITDA
Margin, which is a non-GAAP financial measure, as Adjusted EBITDA
as a percentage of total revenues.
We define Adjusted Net Income and Adjusted Earnings per Diluted
Share ("Adjusted EPS"), which are non-GAAP financial measures, as
net income and EPS, respectively, excluding the impact of
remeasurement of acquisition-related contingent consideration,
special charges, goodwill impairment charges, losses on early
extinguishment of debt, non-cash interest expense on convertible
notes and the gain or loss on sale of a business. We use Adjusted
Net Income for the purpose of calculating Adjusted EPS. Management
uses Adjusted EPS to assess total Company operating performance on
a consistent basis. We believe that these non-GAAP financial
measures, when considered together with our GAAP financial results
and GAAP financial measures, provide management and investors with
an additional understanding of our business operating results,
including underlying trends.
Non-GAAP financial measures are not defined in the same manner
by all companies and may not be comparable with other similarly
titled measures of other companies. Non-GAAP financial measures
should be considered in addition to, but not as a substitute for or
superior to, the information contained in our Condensed
Consolidated Statements of Comprehensive Income and Condensed
Consolidated Statements of Cash Flows. Reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures are included in the financial tables
accompanying this press release.
Safe Harbor Statement
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which involve uncertainties and risks. Forward-looking
statements include statements concerning our plans, initiatives,
projections, prospects, policies, processes and practices,
objectives, goals, commitments, strategies, future events, future
revenues, future results and performance, expectations, plans or
intentions relating to acquisitions, share repurchases and other
matters, business trends, new or changes to laws and regulations,
including U.S. and foreign tax laws, environmental, social and
governance ("ESG")-related issues, climate change-related matters,
scientific and technological developments, including relating to
new and emerging technologies, such as Artificial Intelligence and
machine learning, and other information that is not historical,
including statements regarding estimates of our future financial
results. When used in this press release, words such as
"estimates," "expects," "anticipates," "projects," "plans,"
"intends," "believes," "commits," "aspires," "forecasts," "future,"
"goal," "seeks" and variations of such words or similar expressions
are intended to identify forward-looking statements. All
forward-looking statements, including, without limitation,
estimates of our future financial results, are based upon our
expectations at the time we make them and various assumptions. Our
expectations, beliefs and projections are expressed in good faith,
and we believe there is a reasonable basis for them. However, there
can be no assurance that management’s plans, expectations,
intentions, aspirations, beliefs, goals, estimates, forecasts and
projections will result or be achieved. Our actual financial
results, performance or achievements and outcomes could differ
materially from those expressed in, or implied by, any
forward-looking statements. Further, unaudited quarterly results
are subject to normal year-end adjustments. The Company has
experienced fluctuating revenues, operating income and cash flows
in prior periods and expects that this will occur from time to time
in the future. Other factors that could cause such differences
include declines in demand for, or changes in, the mix of services
and products that we offer; the mix of the geographic locations
where our clients are located or where services are performed;
fluctuations in the price per share of our common stock; adverse
financial, real estate or other market and general economic
conditions; the impact of public health crises and related events
that are beyond our control, which could affect our segments,
practices and the geographic regions in which we conduct business
differently and adversely; and other future events, which could
impact each of our segments, practices and the geographic regions
in which we conduct business differently and could be outside of
our control; the pace and timing of the consummation and
integration of future acquisitions; the Company’s ability to
realize cost savings and efficiencies; competitive and general
economic conditions; retention of staff and clients; new laws and
regulations or changes thereto; and other risks described under the
heading "Item 1A, Risk Factors" in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023 filed with the SEC
on February 22, 2024 and in the Company’s other filings with the
SEC. We are under no duty to update any of the forward-looking
statements to conform such statements to actual results or events
and do not intend to do so.
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
FINANCIAL TABLES FOLLOW
FTI CONSULTING, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands, except per share
amounts) |
|
|
March 31, |
|
December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
243,960 |
|
|
$ |
303,222 |
|
Accounts receivable, net |
|
|
1,157,465 |
|
|
|
1,102,142 |
|
Current portion of notes receivable |
|
|
45,211 |
|
|
|
30,997 |
|
Prepaid expenses and other current assets |
|
|
98,062 |
|
|
|
119,092 |
|
Total current assets |
|
|
1,544,698 |
|
|
|
1,555,453 |
|
Property and equipment, net |
|
|
152,949 |
|
|
|
159,662 |
|
Operating lease assets |
|
|
199,596 |
|
|
|
208,910 |
|
Goodwill |
|
|
1,230,645 |
|
|
|
1,234,569 |
|
Intangible assets, net |
|
|
19,455 |
|
|
|
18,285 |
|
Notes receivable, net |
|
|
96,806 |
|
|
|
75,431 |
|
Other assets |
|
|
80,379 |
|
|
|
73,568 |
|
Total assets |
|
$ |
3,324,528 |
|
|
$ |
3,325,878 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable, accrued expenses and other |
|
$ |
226,787 |
|
|
$ |
223,758 |
|
Accrued compensation |
|
|
332,677 |
|
|
|
601,074 |
|
Billings in excess of services provided |
|
|
68,236 |
|
|
|
67,937 |
|
Total current liabilities |
|
|
627,700 |
|
|
|
892,769 |
|
Long-term debt, net |
|
|
205,000 |
|
|
|
— |
|
Noncurrent operating lease liabilities |
|
|
213,576 |
|
|
|
223,774 |
|
Deferred income taxes |
|
|
136,065 |
|
|
|
140,976 |
|
Other liabilities |
|
|
87,831 |
|
|
|
86,939 |
|
Total liabilities |
|
|
1,270,172 |
|
|
|
1,344,458 |
|
Stockholders’ equity |
|
|
|
|
Preferred stock, $0.01 par value; shares authorized — 5,000; none
outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; shares authorized — 75,000; shares
issued and outstanding — 35,697 (2024) and 35,521 (2023) |
|
|
357 |
|
|
|
355 |
|
Additional paid-in capital |
|
|
21,162 |
|
|
|
16,760 |
|
Retained earnings |
|
|
2,194,730 |
|
|
|
2,114,765 |
|
Accumulated other comprehensive loss |
|
|
(161,893 |
) |
|
|
(150,460 |
) |
Total stockholders’ equity |
|
|
2,054,356 |
|
|
|
1,981,420 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,324,528 |
|
|
$ |
3,325,878 |
|
FTI CONSULTING, INC.CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(in thousands,
except per share data) |
|
Three Months EndedMarch 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
Revenues |
$ |
928,553 |
|
|
$ |
806,706 |
|
Operating
expenses |
|
|
|
Direct cost of revenues |
|
626,034 |
|
|
|
553,509 |
|
Selling, general and administrative expenses |
|
201,870 |
|
|
|
184,213 |
|
Amortization of intangible assets |
|
1,016 |
|
|
|
2,182 |
|
|
|
828,920 |
|
|
|
739,904 |
|
Operating
income |
|
99,633 |
|
|
|
66,802 |
|
Other income
(expense) |
|
|
|
Interest income and other |
|
1,581 |
|
|
|
(1,342 |
) |
Interest expense |
|
(1,719 |
) |
|
|
(2,939 |
) |
|
|
(138 |
) |
|
|
(4,281 |
) |
Income before income
tax provision |
|
99,495 |
|
|
|
62,521 |
|
Income tax
provision |
|
19,530 |
|
|
|
14,974 |
|
Net
income |
$ |
79,965 |
|
|
$ |
47,547 |
|
Earnings per common
share ― basic |
$ |
2.29 |
|
|
$ |
1.43 |
|
Weighted average
common shares outstanding ― basic |
|
34,977 |
|
|
|
33,301 |
|
Earnings per common
share ― diluted |
$ |
2.23 |
|
|
$ |
1.34 |
|
Weighted average
common shares outstanding ― diluted |
|
35,787 |
|
|
|
35,482 |
|
Other comprehensive
income, net of tax |
|
|
|
Foreign currency translation adjustments, net of tax expense of $—
and $— |
$ |
(11,433 |
) |
|
$ |
9,850 |
|
Total other
comprehensive income, net of tax |
|
(11,433 |
) |
|
|
9,850 |
|
Comprehensive
income |
$ |
68,532 |
|
|
$ |
57,397 |
|
FTI CONSULTING, INC.RECONCILIATION OF NET
INCOME AND OPERATING INCOME TO ADJUSTED EBITDA(in
thousands) |
Three Months Ended March 31,
2024(Unaudited) |
|
Corporate Finance & Restructuring |
|
Forensic and Litigation Consulting |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
79,965 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,581 |
) |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,719 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,530 |
|
Operating income |
|
$ |
71,919 |
|
$ |
31,967 |
|
$ |
12,865 |
|
$ |
10,939 |
|
$ |
11,474 |
|
$ |
(39,531 |
) |
|
$ |
99,633 |
|
Depreciation and amortization |
|
|
2,473 |
|
|
1,629 |
|
|
1,285 |
|
|
3,642 |
|
|
882 |
|
|
513 |
|
|
|
10,424 |
|
Amortization of intangible assets |
|
|
833 |
|
|
113 |
|
|
— |
|
|
— |
|
|
70 |
|
|
— |
|
|
|
1,016 |
|
Adjusted
EBITDA |
|
$ |
75,225 |
|
$ |
33,709 |
|
$ |
14,150 |
|
$ |
14,581 |
|
$ |
12,426 |
|
$ |
(39,018 |
) |
|
$ |
111,073 |
|
Three Months Ended March 31,
2023(Unaudited) |
|
Corporate Finance & Restructuring
(1) |
|
Forensic and Litigation Consulting
(1) |
|
Economic Consulting |
|
Technology |
|
Strategic Communications |
|
Unallocated Corporate |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
47,547 |
|
Interest income and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,342 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,939 |
|
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,537 |
|
Operating income |
|
$ |
47,976 |
|
$ |
20,288 |
|
$ |
12,700 |
|
$ |
11,890 |
|
$ |
8,683 |
|
$ |
(34,735 |
) |
|
$ |
66,802 |
|
Depreciation and amortization |
|
|
1,959 |
|
|
1,312 |
|
|
1,493 |
|
|
3,476 |
|
|
787 |
|
|
416 |
|
|
|
9,443 |
|
Amortization of intangible assets |
|
|
1,912 |
|
|
184 |
|
|
— |
|
|
— |
|
|
86 |
|
|
— |
|
|
|
2,182 |
|
Adjusted
EBITDA |
|
$ |
51,847 |
|
$ |
21,784 |
|
$ |
14,193 |
|
$ |
15,366 |
|
$ |
9,556 |
|
$ |
(34,319 |
) |
|
$ |
78,427 |
|
|
|
|
(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 a portion of the Company’s health solutions
practice in the Forensic and Litigation Consulting segment to the
Company's realigned business transformation & strategy practice
within the Corporate Finance & Restructuring segment. |
FTI CONSULTING, INC.OPERATING RESULTS BY
BUSINESS SEGMENT |
|
SegmentRevenues |
|
AdjustedEBITDA |
|
Adjusted EBITDAMargin |
|
Utilization |
|
AverageBillableRate |
|
Revenue-GeneratingHeadcount |
|
(in thousands) |
|
|
|
|
|
|
|
(at period end) |
|
Three Months Ended
March 31, 2024 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring |
$ |
366,010 |
|
$ |
75,225 |
|
|
20.6 |
% |
|
62% |
|
|
$ |
515 |
|
2,185 |
|
Forensic and Litigation Consulting |
|
176,074 |
|
|
33,709 |
|
|
19.1 |
% |
|
59% |
|
|
$ |
406 |
|
1,463 |
|
Economic Consulting |
|
204,548 |
|
|
14,150 |
|
|
6.9 |
% |
|
68% |
|
|
$ |
533 |
|
1,091 |
|
Technology (1) |
|
100,713 |
|
|
14,581 |
|
|
14.5 |
% |
|
N/M |
|
|
N/M |
|
646 |
|
Strategic Communications (1) |
|
81,208 |
|
|
12,426 |
|
|
15.3 |
% |
|
N/M |
|
|
N/M |
|
981 |
|
|
$ |
928,553 |
|
$ |
150,091 |
|
|
16.2 |
% |
|
|
|
|
|
6,366 |
|
Unallocated Corporate |
|
|
|
(39,018 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
111,073 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Finance & Restructuring (2) |
$ |
315,652 |
|
$ |
51,847 |
|
|
16.4 |
% |
|
59% |
|
|
$ |
478 |
|
2,152 |
|
Forensic and Litigation Consulting (2) |
|
157,739 |
|
|
21,784 |
|
|
13.8 |
% |
|
57% |
|
|
$ |
375 |
|
1,427 |
|
Economic Consulting |
|
169,595 |
|
|
14,193 |
|
|
8.4 |
% |
|
68% |
|
|
$ |
458 |
|
1,031 |
|
Technology (1) |
|
90,618 |
|
|
15,366 |
|
|
17.0 |
% |
|
N/M |
|
|
N/M |
|
581 |
|
Strategic Communications (1) |
|
73,102 |
|
|
9,556 |
|
|
13.1 |
% |
|
N/M |
|
|
N/M |
|
995 |
|
|
$ |
806,706 |
|
$ |
112,746 |
|
|
14.0 |
% |
|
|
|
|
|
6,186 |
|
Unallocated Corporate |
|
|
|
(34,319 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
78,427 |
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
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 a portion of the Company’s health solutions
practice in the Forensic and Litigation Consulting segment to the
Company’s business transformation & strategy practice within
the Corporate Finance & Restructuring segment. |
FTI CONSULTING, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(in
thousands) |
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
Operating
activities |
|
|
|
Net income |
$ |
79,965 |
|
|
$ |
47,547 |
|
Adjustments to reconcile net
income to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
|
10,424 |
|
|
|
9,443 |
|
Amortization of intangible assets |
|
1,016 |
|
|
|
2,182 |
|
Provision for expected credit losses |
|
11,420 |
|
|
|
7,012 |
|
Share-based compensation |
|
8,812 |
|
|
|
6,365 |
|
Deferred income taxes |
|
(8,107 |
) |
|
|
(3,016 |
) |
Acquisition-related contingent consideration |
|
660 |
|
|
|
1,284 |
|
Amortization of debt issuance costs and other |
|
236 |
|
|
|
646 |
|
Changes in operating assets and liabilities, net of effects from
acquisitions: |
|
|
|
Accounts receivable, billed and unbilled |
|
(73,201 |
) |
|
|
(93,739 |
) |
Notes receivable |
|
(35,937 |
) |
|
|
(6,851 |
) |
Prepaid expenses and other assets |
|
(5,612 |
) |
|
|
321 |
|
Accounts payable, accrued expenses and other |
|
4,317 |
|
|
|
1,315 |
|
Income taxes |
|
1,691 |
|
|
|
5,658 |
|
Accrued compensation |
|
(271,044 |
) |
|
|
(230,967 |
) |
Billings in excess of services provided |
|
542 |
|
|
|
(1,406 |
) |
Net cash used in operating activities |
|
(274,818 |
) |
|
|
(254,206 |
) |
Investing
activities |
|
|
|
Purchases of property and equipment and other |
|
(4,640 |
) |
|
|
(18,012 |
) |
Maturity of short-term investment |
|
25,246 |
|
|
|
— |
|
Net cash provided by (used in) investing
activities |
|
20,606 |
|
|
|
(18,012 |
) |
Financing
activities |
|
|
|
Borrowings under revolving line of credit |
|
280,000 |
|
|
|
90,000 |
|
Repayments under revolving line of credit |
|
(75,000 |
) |
|
|
(45,000 |
) |
Purchase and retirement of common stock |
|
— |
|
|
|
(20,982 |
) |
Share-based tax withholdings net of option exercises |
|
(8,712 |
) |
|
|
(9,064 |
) |
Deposits and other |
|
2,297 |
|
|
|
813 |
|
Net cash provided by financing activities |
|
198,585 |
|
|
|
15,767 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(3,635 |
) |
|
|
3,302 |
|
Net decrease in cash and cash
equivalents |
|
(59,262 |
) |
|
|
(253,149 |
) |
Cash and cash equivalents,
beginning of period |
|
303,222 |
|
|
|
491,688 |
|
Cash and cash equivalents, end
of period |
$ |
243,960 |
|
|
$ |
238,539 |
|
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