QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Outstanding at April 18, 2024 | ||||
Common Stock, $0.01 par value |
Page | ||||||||
Item 1. | Financial Statements |
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Current portion of notes receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Notes receivable, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable, accrued expenses and other | $ | $ | |||||||||
Accrued compensation | |||||||||||
Billings in excess of services provided | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Noncurrent operating lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock, $ outstanding | |||||||||||
Common stock, $ issued and outstanding | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | $ | $ | |||||||||
Operating expenses | |||||||||||
Direct cost of revenues | |||||||||||
Selling, general and administrative expenses | |||||||||||
Amortization of intangible assets | |||||||||||
Operating income | |||||||||||
Other income (expense) | |||||||||||
Interest income and other | ( | ||||||||||
Interest expense | ( | ( | |||||||||
( | ( | ||||||||||
Income before income tax provision | |||||||||||
Income tax provision | |||||||||||
Net income | $ | $ | |||||||||
Earnings per common share — basic | $ | $ | |||||||||
Earnings per common share — diluted | $ | $ | |||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Foreign currency translation adjustments, net of tax expense of $ | $ | ( | $ | ||||||||
Total other comprehensive income (loss), net of tax | ( | ||||||||||
Comprehensive income | $ | $ |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | $ | — | $ | — | $ | $ | — | $ | ||||||||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Issuance of common stock in connection with: | |||||||||||||||||||||||||||||||||||
Exercise of options | — | — | |||||||||||||||||||||||||||||||||
Restricted share grants, less net settled shares of | ( | — | — | ( | |||||||||||||||||||||||||||||||
Stock units issued under incentive compensation plan | — | — | — | — | |||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | $ | — | $ | — | $ | $ | — | $ | ||||||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||||||
Cumulative translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with: | |||||||||||||||||||||||||||||||||||
Exercise of options | — | — | — | ||||||||||||||||||||||||||||||||
Restricted share grants, less net settled shares of | ( | — | — | ( | |||||||||||||||||||||||||||||||
Stock units issued under incentive compensation plan | — | — | — | — | |||||||||||||||||||||||||||||||
Purchase and retirement of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Conversion of convertible senior notes due 2023 | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Reclassification of negative additional paid-in capital | — | — | ( | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of intangible assets | |||||||||||
Provision for expected credit losses | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Acquisition-related contingent consideration | |||||||||||
Amortization of debt issuance costs and other | |||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||
Accounts receivable, billed and unbilled | ( | ( | |||||||||
Notes receivable | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable, accrued expenses and other | |||||||||||
Income taxes | |||||||||||
Accrued compensation | ( | ( | |||||||||
Billings in excess of services provided | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
Investing activities | |||||||||||
Purchases of property and equipment and other | ( | ( | |||||||||
Maturity of short-term investment | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Financing activities | |||||||||||
Borrowings under revolving line of credit | |||||||||||
Repayments under revolving line of credit | ( | ( | |||||||||
Purchase and retirement of common stock | ( | ||||||||||
Share-based tax withholdings net of option exercises | ( | ( | |||||||||
Deposits and other | |||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental cash flow disclosures | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes and tax credits, net of refunds | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Issuance of stock units under incentive compensation plans | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Numerator — basic and diluted | |||||||||||
Net income | $ | $ | |||||||||
Denominator | |||||||||||
Weighted average number of common shares outstanding — basic | |||||||||||
Effect of dilutive share-based awards | |||||||||||
Effect of dilutive stock options | |||||||||||
Effect of dilutive convertible notes | |||||||||||
Weighted average number of common shares outstanding — diluted | |||||||||||
Earnings per common share — basic | $ | $ | |||||||||
Earnings per common share — diluted | $ | $ | |||||||||
Antidilutive stock options and share-based awards |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts receivable: | |||||||||||
Billed receivables | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Allowance for expected credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Provision for expected credit losses | $ | $ | |||||||||
Write-offs | $ | $ |
Corporate Finance & Restructuring (1) | Forensic and Litigation Consulting (1) | Economic Consulting (1) | Technology (1) | Strategic Communications (2) | Total | ||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||
Amortizing intangible assets | ||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||||||||||||||
Acquired software and other | ||||||||||||||||||||||||||||||||||||||
Non-amortizing intangible assets | ||||||||||||||||||||||||||||||||||||||
Trademarks | — | — | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Year | As of March 31, 2024 (1) | |||||||
2024 (remaining) | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
$ |
March 31, 2024 | December 31, 2023 | ||||||||||
Credit Facility | $ | $ | |||||||||
Long-term debt, net (1) | $ | $ | |||||||||
Leases | Classification | March 31, 2024 | December 31, 2023 | |||||||||||||||||
Assets | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | $ | |||||||||||||||||
Total lease assets | $ | $ | ||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating lease liabilities | $ | $ | ||||||||||||||||||
Noncurrent | ||||||||||||||||||||
Operating lease liabilities | Noncurrent operating lease liabilities | |||||||||||||||||||
Total lease liabilities | $ | $ |
Three Months Ended March 31, | ||||||||||||||
Lease Cost | 2024 | 2023 | ||||||||||||
Operating lease costs | $ | $ | ||||||||||||
Short-term lease costs | ||||||||||||||
Variable leases and other | ||||||||||||||
Total lease cost, net | $ | $ |
As of March 31, 2024 | |||||
2024 (remaining) | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total future lease payments | |||||
Less: imputed interest | ( | ||||
Total | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Operating lease assets obtained in exchange for lease liabilities | $ | $ | |||||||||
Weighted average remaining lease term (years) | |||||||||||
Operating leases | |||||||||||
Weighted average discount rate | |||||||||||
Operating leases | % | % |
Three Months Ended March 31, | ||||||||||||||
Income Statement Classification | 2024 | 2023 | ||||||||||||
Direct cost of revenues | $ | $ | ||||||||||||
Selling, general and administrative expenses | ||||||||||||||
Total share-based compensation expense | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Shares of common stock repurchased and retired | |||||||||||
Average price paid per share | $ | $ | |||||||||
Total cost | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | |||||||||||
Corporate Finance (1) | $ | $ | |||||||||
FLC (1) | |||||||||||
Economic Consulting | |||||||||||
Technology | |||||||||||
Strategic Communications | |||||||||||
Total revenues | $ | $ | |||||||||
Adjusted Segment EBITDA | |||||||||||
Corporate Finance (1) | $ | $ | |||||||||
FLC (1) | |||||||||||
Economic Consulting | |||||||||||
Technology | |||||||||||
Strategic Communications | |||||||||||
Total Adjusted Segment EBITDA | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Add back: | |||||||||||
Income tax provision | |||||||||||
Interest income and other | ( | ||||||||||
Interest expense | |||||||||||
Unallocated corporate expenses | |||||||||||
Segment depreciation expense | |||||||||||
Amortization of intangible assets | |||||||||||
Total Adjusted Segment EBITDA | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollar amounts in thousands, except per share data) | |||||||||||
Revenues | $ | 928,553 | $ | 806,706 | |||||||
Net income | $ | 79,965 | $ | 47,547 | |||||||
Adjusted EBITDA | $ | 111,073 | $ | 78,427 | |||||||
Earnings per common share — diluted | $ | 2.23 | $ | 1.34 | |||||||
Adjusted earnings per common share — diluted | $ | 2.23 | $ | 1.34 | |||||||
Net cash used in operating activities | $ | (274,818) | $ | (254,206) | |||||||
Total number of employees | 8,055 | 7,794 |
Billable Headcount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Finance | FLC | Economic Consulting | Technology | Strategic Communications | Total | Non-Billable Headcount | Total Headcount | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | 2,215 | 1,447 | 1,089 | 628 | 971 | 6,350 | 1,640 | 7,990 | ||||||||||||||||||||||||||||||||||||||||||
Additions (reductions), net | (30) | 16 | 2 | 18 | 10 | 16 | 49 | 65 | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | 2,185 | 1,463 | 1,091 | 646 | 981 | 6,366 | 1,689 | 8,055 | ||||||||||||||||||||||||||||||||||||||||||
Percentage change in headcount from December 31, 2023 | (1.4)% | 1.1% | 0.2% | 2.9% | 1.0% | 0.3% | 3.0% | 0.8% | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands, except per share data) | |||||||||||
Revenues | |||||||||||
Corporate Finance (1) | $ | 366,010 | $ | 315,652 | |||||||
FLC (1) | 176,074 | 157,739 | |||||||||
Economic Consulting | 204,548 | 169,595 | |||||||||
Technology | 100,713 | 90,618 | |||||||||
Strategic Communications | 81,208 | 73,102 | |||||||||
Total revenues | $ | 928,553 | $ | 806,706 | |||||||
Segment operating income | |||||||||||
Corporate Finance (1) | $ | 71,919 | $ | 47,976 | |||||||
FLC (1) | 31,967 | 20,288 | |||||||||
Economic Consulting | 12,865 | 12,700 | |||||||||
Technology | 10,939 | 11,890 | |||||||||
Strategic Communications | 11,474 | 8,683 | |||||||||
Total segment operating income | 139,164 | 101,537 | |||||||||
Unallocated corporate expenses | (39,531) | (34,735) | |||||||||
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 | |||||||
Earnings per common share — diluted | $ | 2.23 | $ | 1.34 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Net income | $ | 79,965 | $ | 47,547 | |||||||
Add back: | |||||||||||
Income tax provision | 19,530 | 14,974 | |||||||||
Interest income and other | (1,581) | 1,342 | |||||||||
Interest expense | 1,719 | 2,939 | |||||||||
Depreciation and amortization | 10,424 | 9,443 | |||||||||
Amortization of intangible assets | 1,016 | 2,182 | |||||||||
Adjusted EBITDA | $ | 111,073 | $ | 78,427 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Net cash used in operating activities | $ | (274,818) | $ | (254,206) | |||||||
Purchases of property and equipment | (4,641) | (18,033) | |||||||||
Free Cash Flow | $ | (279,459) | $ | (272,239) |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Net income | $ | 79,965 | $ | 47,547 | |||||||
Add back: | |||||||||||
Income tax provision | 19,530 | 14,974 | |||||||||
Interest income and other | (1,581) | 1,342 | |||||||||
Interest expense | 1,719 | 2,939 | |||||||||
Unallocated corporate expenses | 39,531 | 34,735 | |||||||||
Total segment operating income | 139,164 | 101,537 | |||||||||
Add back: | |||||||||||
Segment depreciation expense | 9,911 | 9,027 | |||||||||
Amortization of intangible assets | 1,016 | 2,182 | |||||||||
Total Adjusted Segment EBITDA | $ | 150,091 | $ | 112,746 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Number of revenue-generating professionals (at period end): | |||||||||||
Corporate Finance (1) | 2,185 | 2,152 | |||||||||
FLC (1) | 1,463 | 1,427 | |||||||||
Economic Consulting | 1,091 | 1,031 | |||||||||
Technology (2) | 646 | 581 | |||||||||
Strategic Communications | 981 | 995 | |||||||||
Total revenue-generating professionals | 6,366 | 6,186 | |||||||||
Utilization rates of billable professionals: (3) | |||||||||||
Corporate Finance (1) | 62 | % | 59 | % | |||||||
FLC (1) | 59 | % | 57 | % | |||||||
Economic Consulting | 68 | % | 68 | % | |||||||
Average billable rate per hour: (4) | |||||||||||
Corporate Finance (1) | $ | 515 | $ | 478 | |||||||
FLC (1) | $ | 406 | $ | 375 | |||||||
Economic Consulting | $ | 533 | $ | 458 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 (1) | ||||||||||
(dollars in thousands, except rate per hour) | |||||||||||
Revenues | $ | 366,010 | $ | 315,652 | |||||||
Percentage change in revenues from prior year | 16.0 | % | 19.1 | % | |||||||
Operating expenses | |||||||||||
Direct cost of revenues | 238,190 | 213,648 | |||||||||
Selling, general and administrative expenses | 55,068 | 52,116 | |||||||||
Amortization of intangible assets | 833 | 1,912 | |||||||||
294,091 | 267,676 | ||||||||||
Segment operating income | 71,919 | 47,976 | |||||||||
Percentage change in segment operating income from prior year | 49.9 | % | -4.9 | % | |||||||
Add back: | |||||||||||
Depreciation and amortization of intangible assets | 3,306 | 3,871 | |||||||||
Adjusted Segment EBITDA | $ | 75,225 | $ | 51,847 | |||||||
Gross profit (2) | $ | 127,820 | $ | 102,004 | |||||||
Percentage change in gross profit from prior year | 25.3 | % | 14.3 | % | |||||||
Gross profit margin (3) | 34.9 | % | 32.3 | % | |||||||
Adjusted Segment EBITDA as a percentage of revenues | 20.6 | % | 16.4 | % | |||||||
Number of revenue-generating professionals (at period end) | 2,185 | 2,152 | |||||||||
Percentage change in number of revenue-generating professionals from prior year | 1.5 | % | 14.0 | % | |||||||
Utilization rate of billable professionals | 62 | % | 59 | % | |||||||
Average billable rate per hour | $ | 515 | $ | 478 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 (1) | ||||||||||
(dollars in thousands, except rate per hour) | |||||||||||
Revenues | $ | 176,074 | $ | 157,739 | |||||||
Percentage change in revenues from prior year | 11.6 | % | 10.9 | % | |||||||
Operating expenses | |||||||||||
Direct cost of revenues | 112,394 | 106,241 | |||||||||
Selling, general and administrative expenses | 31,600 | 31,026 | |||||||||
Amortization of intangible assets | 113 | 184 | |||||||||
144,107 | 137,451 | ||||||||||
Segment operating income | 31,967 | 20,288 | |||||||||
Percentage change in segment operating income from prior year | 57.6 | % | 34.2 | % | |||||||
Add back: | |||||||||||
Depreciation and amortization of intangible assets | 1,742 | 1,496 | |||||||||
Adjusted Segment EBITDA | $ | 33,709 | $ | 21,784 | |||||||
Gross profit (2) | $ | 63,680 | $ | 51,498 | |||||||
Percentage change in gross profit from prior year | 23.7 | % | 24.8 | % | |||||||
Gross profit margin (3) | 36.2 | % | 32.6 | % | |||||||
Adjusted Segment EBITDA as a percentage of revenues | 19.1 | % | 13.8 | % | |||||||
Number of revenue-generating professionals (at period end) | 1,463 | 1,427 | |||||||||
Percentage change in number of revenue-generating professionals from prior year | 2.5 | % | 3.2 | % | |||||||
Utilization rate of billable professionals | 59 | % | 57 | % | |||||||
Average billable rate per hour | $ | 406 | $ | 375 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands, except rate per hour) | |||||||||||
Revenues | $ | 204,548 | $ | 169,595 | |||||||
Percentage change in revenues from prior year | 20.6 | % | 2.2 | % | |||||||
Operating expenses | |||||||||||
Direct cost of revenues | 159,440 | 131,846 | |||||||||
Selling, general and administrative expenses | 32,243 | 25,049 | |||||||||
191,683 | 156,895 | ||||||||||
Segment operating income | 12,865 | 12,700 | |||||||||
Percentage change in segment operating income from prior year | 1.3 | % | -36.3 | % | |||||||
Add back: | |||||||||||
Depreciation and amortization | 1,285 | 1,493 | |||||||||
Adjusted Segment EBITDA | $ | 14,150 | $ | 14,193 | |||||||
Gross profit (1) | $ | 45,108 | $ | 37,749 | |||||||
Percentage change in gross profit from prior year | 19.5 | % | -9.1 | % | |||||||
Gross profit margin (2) | 22.1 | % | 22.3 | % | |||||||
Adjusted Segment EBITDA as a percentage of revenues | 6.9 | % | 8.4 | % | |||||||
Number of revenue-generating professionals (at period end) | 1,091 | 1,031 | |||||||||
Percentage change in number of revenue-generating professionals from prior year | 5.8 | % | 8.5 | % | |||||||
Utilization rate of billable professionals | 68 | % | 68 | % | |||||||
Average billable rate per hour | $ | 533 | $ | 458 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Revenues | $ | 100,713 | $ | 90,618 | |||||||
Percentage change in revenues from prior year | 11.1 | % | 12.6 | % | |||||||
Operating expenses | |||||||||||
Direct cost of revenues | 64,069 | 53,978 | |||||||||
Selling, general and administrative expenses | 25,705 | 24,750 | |||||||||
89,774 | 78,728 | ||||||||||
Segment operating income | 10,939 | 11,890 | |||||||||
Percentage change in segment operating income from prior year | -8.0 | % | 16.1 | % | |||||||
Add back: | |||||||||||
Depreciation and amortization | 3,642 | 3,476 | |||||||||
Adjusted Segment EBITDA | $ | 14,581 | $ | 15,366 | |||||||
Gross profit (1) | $ | 36,644 | $ | 36,640 | |||||||
Percentage change in gross profit from prior year | — | % | 23.9 | % | |||||||
Gross profit margin (2) | 36.4 | % | 40.4 | % | |||||||
Adjusted Segment EBITDA as a percentage of revenues | 14.5 | % | 17.0 | % | |||||||
Number of revenue-generating professionals (at period end) (3) | 646 | 581 | |||||||||
Percentage change in number of revenue-generating professionals from prior year | 11.2 | % | 17.1 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Revenues | $ | 81,208 | $ | 73,102 | |||||||
Percentage change in revenues from prior year | 11.1 | % | 4.5 | % | |||||||
Operating expenses | |||||||||||
Direct cost of revenues | 51,941 | 47,804 | |||||||||
Selling, general and administrative expenses | 17,723 | 16,529 | |||||||||
Amortization of intangible assets | 70 | 86 | |||||||||
69,734 | 64,419 | ||||||||||
Segment operating income | 11,474 | 8,683 | |||||||||
Percentage change in segment operating income from prior year | 32.1 | % | -41.5 | % | |||||||
Add back: | |||||||||||
Depreciation and amortization of intangible assets | 952 | 873 | |||||||||
Adjusted Segment EBITDA | $ | 12,426 | $ | 9,556 | |||||||
Gross profit (1) | $ | 29,267 | $ | 25,298 | |||||||
Percentage change in gross profit from prior year | 15.7 | % | -12.6 | % | |||||||
Gross profit margin (2) | 36.0 | % | 34.6 | % | |||||||
Adjusted Segment EBITDA as a percentage of revenues | 15.3 | % | 13.1 | % | |||||||
Number of revenue-generating professionals (at period end) | 981 | 995 | |||||||||
Percentage change in number of revenue-generating professionals from prior year | -1.4 | % | 16.2 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash Flows | (dollars in thousands) | ||||||||||
Net cash used in operating activities | $ | (274,818) | $ | (254,206) | |||||||
Net cash provided by (used in) investing activities | $ | 20,606 | $ | (18,012) | |||||||
Net cash provided by financing activities | $ | 198,585 | $ | 15,767 | |||||||
Effect of exchange rate changes on cash and cash equivalents | $ | (3,635) | $ | 3,302 | |||||||
DSO (1) | 105 | 102 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (1) | Approximate Dollar Value That May Yet Be Purchased Under the Program | ||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
January 1 through January 31, 2024 | 6 | (2) | $ | 197.89 | — | $ | 460,653 | ||||||||||||||||
February 1 through February 29, 2024 | 34 | (3) | $ | 192.22 | — | $ | 460,653 | ||||||||||||||||
March 1 through March 31, 2024 | 17 | (4) | $ | 204.37 | — | $ | 460,653 | ||||||||||||||||
57 | — |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
31.1† | ||||||||
31.2† | ||||||||
32.1†** | ||||||||
32.2†** | ||||||||
101 | The following financial information from the Quarterly Report on Form 10-Q of FTI Consulting, Inc., included herewith, and formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023; (ii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023; (iii) Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023; (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023; and (v) Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text. | |||||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline XBRL (included as Exhibit 101). |
† | Filed herewith. |
** | This certification is deemed not filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act. |
FTI CONSULTING, INC. | ||||||||
By: | /s/ Brendan Keating | |||||||
Brendan Keating | ||||||||
Chief Accounting Officer and Controller | ||||||||
(principal accounting officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of FTI Consulting, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
By: | /S/ STEVEN H. GUNBY | |||||||
Steven H. Gunby | ||||||||
President and Chief Executive Officer | ||||||||
(principal executive officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of FTI Consulting, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
By: | /S/ AJAY SABHERWAL | |||||||
Ajay Sabherwal | ||||||||
Chief Financial Officer | ||||||||
(principal financial officer) |
1. | the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /S/ STEVEN H. GUNBY | |||||||
Steven H. Gunby | ||||||||
President and Chief Executive Officer | ||||||||
(principal executive officer) |
1. | the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /S/ AJAY SABHERWAL | |||||||
Ajay Sabherwal | ||||||||
Chief Financial Officer | ||||||||
(principal financial officer) |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 35,697,000 | 35,521,000 |
Common stock, shares outstanding (in shares) | 35,697,000 | 35,521,000 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Statement [Abstract] | ||
Foreign currency translation adjustments, tax expense | $ 0 | $ 0 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Restricted share grants, net settled shares (in shares) | 57 | 55 |
Basis of Presentation and Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The unaudited condensed consolidated financial statements of FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), presented herein, have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and under the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Some of the information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the interim financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods presented. All adjustments made were normal recurring accruals. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC. Note 1 to the Consolidated Financial Statements included in Part II, Item 8, of our Annual Report on Form 10-K for the year ended December 31, 2023 describes the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
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New Accounting Standards |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands annual disclosures in an entity’s income tax rate reconciliation table and requires annual disclosures regarding cash taxes paid both in the U.S. (federal and state) and foreign jurisdictions. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements.
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Earnings per Common Share |
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Earnings per Common Share | Earnings per Common Share Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of potentially dilutive common shares. Potentially dilutive common shares include the dilutive effects of shares issuable under our equity compensation plans, including stock options and share-based awards (restricted share awards, restricted stock units and performance stock units), each using the treasury stock method. For the three months ended March 31, 2023, we used the if-converted method for calculating the potential dilutive effect of the conversion feature of the principal amount of our 2.0% convertible senior notes due 2023 (“2023 Convertible Notes”) on earnings per common share. The conversion feature had a dilutive impact on earnings per common share for the three months ended March 31, 2023, as the average market price per share of our common stock for the period exceeded the conversion price of $101.38 per share. During the three months ended March 31, 2024, there were no 2023 Convertible Notes outstanding.
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Revenues |
3 Months Ended |
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Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We generate the majority of our revenues by providing consulting services to our clients. Revenues are recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer and in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate services that we provide to our customers. If, at the outset of an arrangement, we determine that a contract with enforceable rights and obligations does not exist, revenues are deferred until all criteria for an enforceable contract are met. Revenues recognized during the current period may include revenues from performance obligations satisfied or partially satisfied in previous periods. This primarily occurs when the estimated transaction price has changed based on our current probability assessment over whether the agreed-upon outcome for our performance-based and contingent arrangements will be achieved. The aggregate amount of revenues recognized related to a change in the transaction price in the current period, which related to performance obligations satisfied or partially satisfied in a prior period, was $6.4 million and $4.8 million for the three months ended March 31, 2024 and 2023, respectively. Unfulfilled performance obligations primarily consist of fees not yet recognized on certain fixed-fee arrangements and performance-based and contingent arrangements. As of March 31, 2024 and December 31, 2023, the aggregate amount of the remaining contract transaction price allocated to unfulfilled performance obligations was $28.9 million and $34.6 million, respectively. We expect to recognize the majority of the related revenues over the next 36 months. We elected to utilize the optional exemption to exclude from this disclosure fixed-fee and performance-based and contingent arrangements with an original expected duration of one year or less and to exclude our time and expense arrangements for which revenues are recognized using the right-to-invoice practical expedient. Contract assets are defined as assets for which we have recorded revenues but are not yet entitled to receive our fees because certain events, such as completion of the measurement period or client approval, must occur. The contract asset balance was immaterial as of March 31, 2024 and December 31, 2023. Contract liabilities are defined as liabilities incurred when we have received consideration but have not yet performed the agreed-upon services. This may occur when clients pay fees before work begins. The contract liability balance was immaterial as of March 31, 2024 and December 31, 2023.
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Accounts Receivable and Allowance for Expected Credit Losses |
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Allowance for Doubtful Accounts and Unbilled Services [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Allowance for Expected Credit Losses | Accounts Receivable and Allowance for Expected Credit Losses The following table summarizes the components of “Accounts receivable, net” as presented on the Condensed Consolidated Balance Sheets:
The following table summarizes the total provision for expected credit losses and write-offs:
Our provision for expected credit losses includes recoveries, direct write-offs and charges to other accounts. Billed accounts receivables are written off when the potential for recovery is considered remote.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The table below summarizes the changes in the carrying amount of goodwill by reportable segment:
(1) There were no accumulated impairment losses for the Corporate Finance & Restructuring (“Corporate Finance”), Forensic and Litigation Consulting (“FLC”), Economic Consulting or Technology segments as of March 31, 2024 and December 31, 2023. (2) Amounts for our Strategic Communications segment include gross carrying values of $308.4 million and $309.0 million as of March 31, 2024 and December 31, 2023, respectively, and accumulated impairment losses of $194.1 million as of March 31, 2024 and December 31, 2023. Intangible Assets Intangible assets were as follows:
Intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $1.0 million and $2.2 million during the three months ended March 31, 2024 and 2023, respectively. We estimate our future amortization expense for our intangible assets with finite lives to be as follows:
(1)Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes.
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Financial Instruments |
3 Months Ended |
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Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments We estimate the fair value of acquisition-related contingent consideration using either a probability-weighted discounted cash flow model or a Monte Carlo pricing model. These fair value estimates represent Level 3 measurements as they are based on significant inputs not observed in the market and reflect our own assumptions. Significant increases (or decreases) in these unobservable inputs in isolation would result in significantly lower (or higher) fair values. We reassess the fair value of our acquisition-related contingent consideration at each reporting period based on additional information as it becomes available. The fair value of acquisition-related contingent consideration was $9.8 million and $12.8 million as of March 31, 2024 and December 31, 2023, respectively. The fair values of all financial instruments are estimated to be equal to their carrying values as of March 31, 2024 and December 31, 2023. There were no other assets or liabilities subject to Level 3 fair value measurements as of March 31, 2024 and December 31, 2023.
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Debt |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The table below presents the components of the Company’s debt:
(1)There were no current portions of long-term debt as of March 31, 2024 and December 31, 2023. Credit Facility In November 2022, we entered into the second amended and restated credit agreement governing our senior secured bank revolving credit facility (“Credit Facility”) to, among other things, (i) extend the maturity to November 21, 2027, (ii) increase the revolving line of credit limit from $550.0 million to $900.0 million, and (iii) increase the incremental facility from $150.0 million to a maximum of $300.0 million, subject to certain conditions, and incurred an additional $4.0 million of debt issuance costs. The Credit Facility is guaranteed by substantially all of our wholly owned domestic subsidiaries and is secured by a first priority security interest in substantially all of the assets of FTI Consulting and such domestic subsidiaries. Borrowings under the Credit Facility bear interest at a rate equal to, in the case of: (i) U.S. Dollars (“USD”), at our option, Adjusted Term Secured Overnight Financing Rate (“SOFR”) or Adjusted Daily Simple SOFR, (ii) euro, Euro Interbank Offered Rate, (iii) British pound, Sterling Overnight Index Average Reference Rate, (iv) Australian dollars, Bank Bill Swap Reference Bid Rate, (v) Canadian dollars, Canadian Dollar Offered Rate, (vi) Swiss franc, Swiss Average Rate Overnight, and (vii) Japanese yen, Tokyo Interbank Offered Rate, in each case, plus an applicable margin that will fluctuate between 1.25% per annum and 2.00% per annum based upon the Company’s Consolidated Total Net Leverage Ratio (as defined in the Credit Facility) at such time or, in the case of USD borrowings, an alternative base rate plus an applicable margin that will fluctuate between 0.25% per annum and 1.00% per annum based upon the Company’s Consolidated Total Net Leverage Ratio at such time. The alternative base rate is a fluctuating rate per annum equal to the highest of (1) the federal funds rate plus the sum of 50 basis points, (2) the rate of interest in effect for such day as the prime rate announced by Bank of America, and (3) the one-month Term SOFR plus 100 basis points. Under the Credit Facility, we are required to pay a commitment fee rate that fluctuates between 0.20% and 0.35% per annum and a letter of credit fee rate that fluctuates between 1.25% and 2.00% per annum, in each case, based upon the Company’s Consolidated Total Net Leverage Ratio. The Company classified the borrowings under the Credit Facility as long-term debt in the accompanying Condensed Consolidated Balance Sheets, as we have the intent and unilateral ability to refinance any borrowings on a continuous basis through the maturity of the Credit Facility on November 21, 2027. There were $3.2 million and $3.4 million of unamortized debt issuance costs related to the Credit Facility as of March 31, 2024 and December 31, 2023, respectively. These amounts are included in “Other assets” on our Condensed Consolidated Balance Sheets.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We lease office space and equipment under non-cancelable operating leases. The table below summarizes the carrying amount of our operating lease assets and liabilities:
The table below summarizes total lease costs:
The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheets:
The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease office space and equipment under non-cancelable operating leases. See Note 9, “Leases” for future minimum lease commitments. We are subject to legal actions arising in the ordinary course of business. In management’s opinion, we believe we have adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. We are not aware of any asserted or unasserted legal proceedings or claims that we believe would have a material adverse effect on our financial condition or results of our operations.
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Share-Based Compensation |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation During the three months ended March 31, 2024, we granted 26,946 restricted share awards, 39,293 restricted stock units and 75,994 performance stock units under the FTI Consulting, Inc. 2017 Omnibus Incentive Compensation Plan, our employee equity compensation plan. Our performance stock units are presented at the maximum potential payout percentage of 150% of target shares granted. These awards are recorded as equity on the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2024, 5,464 shares of restricted stock and no stock options were forfeited prior to the completion of the applicable vesting requirements. Additionally, 988 performance stock units were forfeited during the three months ended March 31, 2024, arising from award targets that were not achieved. Total share-based compensation expense, net of forfeitures is detailed in the following table:
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Stockholders' Equity |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity On June 2, 2016, our Board of Directors authorized a stock repurchase program of up to $100.0 million (the “Repurchase Program”). On each of May 18, 2017, December 1, 2017, February 21, 2019 and February 20, 2020, our Board of Directors authorized an additional $100.0 million. On each of July 28, 2020 and December 3, 2020, our Board of Directors authorized an additional $200.0 million. On December 1, 2022, our Board of Directors authorized an additional $400.0 million, increasing the Repurchase Program to an aggregate authorization of $1.3 billion. No time limit has been established for the completion of the Repurchase Program, and the Repurchase Program may be suspended, discontinued or replaced by the Board of Directors at any time without prior notice. As of March 31, 2024, we had $460.7 million available under the Repurchase Program to repurchase additional shares. The following table details our stock repurchases under the Repurchase Program:
As we repurchase our common shares, we reduce stated capital on our Condensed Consolidated Balance Sheets for the $0.01 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction to additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. Common stock outstanding was approximately 35.7 million shares and 35.5 million shares as of March 31, 2024 and December 31, 2023, respectively. Common stock outstanding includes unvested restricted stock awards, which are considered issued and outstanding under the terms of the restricted stock award agreements.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting We manage our business in five reportable segments: Corporate Finance, FLC, Economic Consulting, Technology and Strategic Communications. Our Corporate Finance segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world. Our clients include companies, boards of directors, investors, private equity sponsors, lenders, governments and other financing sources and creditor groups, as well as other parties-in-interest. We deliver a wide range of services centered around four core offerings: Business Transformation, Strategy, Transactions and Turnaround & Restructuring. Our FLC segment provides law firms, companies, boards of directors, government entities, private equity firms and other interested parties with a multidisciplinary and independent range of services across risk and investigations and disputes, supported by our data & analytics technology-enabled solutions, with a focus on highly regulated industries. Our services are centered around five core offerings: Construction, Projects & Assets and Environmental Solutions, Data & Analytics, Disputes, Healthcare Risk Management & Advisory and Risk and Investigations. Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides law firms, companies, government entities and other interested parties with analyses of complex economic issues for use in international arbitration, legal and regulatory proceedings, and strategic decision making and public policy debates around the world. We deliver a wide range of services centered around three core offerings: Antitrust & Competition Economics, Financial Economics and International Arbitration. Our Technology segment provides companies, law firms, private equity firms and government entities with a comprehensive global portfolio of digital insights and risk management consulting services. Our professionals help organizations better address risk as the growing volume and variety of enterprise and emerging data intersects with legal, regulatory and compliance needs. We deliver a wide range of expert and analytics-powered solutions driven by investigations, litigation, antitrust and competition, merger & acquisition, restructuring and compliance and risk through three core offerings: Corporate Legal Department Consulting, E-discovery Services and Expertise, and Information Governance, Privacy & Security Services. Our Strategic Communications segment develops and executes communications strategies to help management teams, boards of directors, law firms, governments and regulators manage change and mitigate risk surrounding transformational and disruptive events, including transactions, investigations, disputes, crises, regulation and legislation. We deliver a wide range of services centered around three core offerings: Corporate Reputation, Financial Communications and Public Affairs. We evaluate the performance of our operating segments based on Adjusted Segment EBITDA, a GAAP financial measure. 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 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 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. The table below presents revenues and Adjusted Segment EBITDA for our reportable segments:
(1)Effective July 1, 2023, prior period segment information for the Corporate Finance and FLC segments has been recast in this Quarterly Report on Form 10-Q to include the reclassification of a portion of the Company’s health solutions practice in the FLC segment to our realigned business transformation practice within our Corporate Finance segment. The table below reconciles net income to Total Adjusted Segment EBITDA:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income | $ 79,965 | $ 47,547 |
Insider Trading Arrangements |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements of FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), presented herein, have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and under the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Some of the information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. Certain prior period amounts have been reclassified to conform to the current period presentation. In management’s opinion, the interim financial statements reflect all adjustments that are necessary for a fair presentation of the results for the interim periods presented. All adjustments made were normal recurring accruals. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC.
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Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The ASU is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands annual disclosures in an entity’s income tax rate reconciliation table and requires annual disclosures regarding cash taxes paid both in the U.S. (federal and state) and foreign jurisdictions. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its consolidated financial statements.
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Earnings per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Basic and Diluted |
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Accounts Receivable and Allowance for Expected Credit Losses (Tables) |
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Allowance for Doubtful Accounts and Unbilled Services [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | The following table summarizes the components of “Accounts receivable, net” as presented on the Condensed Consolidated Balance Sheets:
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Schedule of Accounts Receivable, Writeoff | The following table summarizes the total provision for expected credit losses and write-offs:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Carrying Amounts of Goodwill by Operating Segment | The table below summarizes the changes in the carrying amount of goodwill by reportable segment:
(1) There were no accumulated impairment losses for the Corporate Finance & Restructuring (“Corporate Finance”), Forensic and Litigation Consulting (“FLC”), Economic Consulting or Technology segments as of March 31, 2024 and December 31, 2023. (2) Amounts for our Strategic Communications segment include gross carrying values of $308.4 million and $309.0 million as of March 31, 2024 and December 31, 2023, respectively, and accumulated impairment losses of $194.1 million as of March 31, 2024 and December 31, 2023.
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Schedule of Other Intangible Assets Amortized Intangibles | Intangible assets were as follows:
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Schedule of Other Intangible Assets Unamortized Intangibles | Intangible assets were as follows:
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Schedule of Future Amortization Expense Intangible Assets | We estimate our future amortization expense for our intangible assets with finite lives to be as follows:
(1)Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, impairments, changes in useful lives, or other relevant factors or changes.
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Debt Obligations | The table below presents the components of the Company’s debt:
(1)There were no current portions of long-term debt as of March 31, 2024 and December 31, 2023.
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amount of Operating Lease Assets and Liabilities | The table below summarizes the carrying amount of our operating lease assets and liabilities:
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Schedule of Lease Cost | The table below summarizes total lease costs:
The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:
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Schedule of Future Minimum Lease Payments | The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Condensed Consolidated Balance Sheets:
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Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation Expense | Total share-based compensation expense, net of forfeitures is detailed in the following table:
|
Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Repurchases | The following table details our stock repurchases under the Repurchase Program:
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Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments | The table below presents revenues and Adjusted Segment EBITDA for our reportable segments:
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Schedule of Reconciliation of Net Income to Adjusted Segment Earnings Before Interest, Taxes, Depreciation and Amortization | The table below reconciles net income to Total Adjusted Segment EBITDA:
|
Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | |||
Performance obligations satisfied or partially satisfied in previous periods | $ 6.4 | $ 4.8 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unfulfilled performance obligations | $ 34.6 | ||
Performance obligation expected duration | 36 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unfulfilled performance obligations | $ 28.9 | ||
Performance obligation expected duration | 36 months |
Accounts Receivable and Allowance for Expected Credit Losses - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts receivable: | ||
Billed receivables | $ 804,914 | $ 745,371 |
Unbilled receivables | 422,372 | 421,488 |
Allowance for expected credit losses | (69,821) | (64,717) |
Accounts receivable, net | $ 1,157,465 | $ 1,102,142 |
Accounts Receivable and Allowance for Expected Credit Losses - Writeoff (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Allowance for Doubtful Accounts and Unbilled Services [Abstract] | ||
Provision for expected credit losses | $ 11,420 | $ 7,012 |
Write-offs | $ 10,370 | $ 7,888 |
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of other intangible assets | $ 1,016 | $ 2,182 |
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (remaining) | $ 3,006 | |
2025 | 3,336 | |
2026 | 2,193 | |
2027 | 2,122 | |
2028 | 1,717 | |
Thereafter | 1,981 | |
Net Carrying Amount | $ 14,355 | $ 13,185 |
Financial Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Acquisition-related contingent consideration | $ 9.8 | $ 12.8 |
Debt - Summary of Components of Debt Obligations (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 205,000,000 | $ 0 |
Current portion of long-term debt, net | 0 | 0 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 205,000,000 | $ 0 |
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets | $ 199,596 | $ 208,910 |
Current operating lease liabilities | 34,731 | 33,864 |
Noncurrent operating lease liabilities | 213,576 | 223,774 |
Total lease liabilities | $ 248,307 | $ 257,638 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other |
Leases - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Lease Cost | ||
Operating lease costs | $ 12,543 | $ 12,983 |
Short-term lease costs | 441 | 692 |
Variable leases and other | 3,087 | 2,792 |
Total lease cost, net | $ 16,071 | $ 16,467 |
Leases - Maturity Analysis (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
2024 (remaining) | $ 40,029 | |
2025 | 47,383 | |
2026 | 42,765 | |
2027 | 41,696 | |
2028 | 32,480 | |
Thereafter | 108,340 | |
Total future lease payments | 312,693 | |
Less: imputed interest | (64,386) | |
Total lease liabilities | $ 248,307 | $ 257,638 |
Leases - Cash Paid For Operating Leases and Noncash Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 13,942 | $ 14,170 |
Operating lease assets obtained in exchange for lease liabilities | $ 1,209 | $ 13,105 |
Weighted average remaining lease term (years), Operating leases | 7 years 8 months 12 days | 8 years 3 months 18 days |
Weighted average discount rate, Operating leases | 5.90% | 5.70% |
Share-Based Compensation - Schedule Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 10,218 | $ 9,743 |
Direct cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 5,718 | 4,699 |
Selling, general and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 4,500 | $ 5,044 |
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 01, 2022 |
Dec. 03, 2020 |
Jul. 28, 2020 |
Feb. 20, 2020 |
Feb. 21, 2019 |
Dec. 01, 2017 |
May 18, 2017 |
Jun. 02, 2016 |
---|---|---|---|---|---|---|---|---|---|---|
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||
Common stock, shares outstanding (in shares) | 35,697 | 35,521 | ||||||||
2016 Stock Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program authorized amount | $ 1,300,000,000 | $ 100,000,000 | ||||||||
Stock repurchase program additional amount authorized | $ 400,000,000 | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||
Available amount under repurchase program | $ 460,700,000 |
Stockholders' Equity - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Stockholders Equity [Line Items] | ||
Total cost | $ 17,799 | |
2016 Stock Repurchase Program | ||
Stockholders Equity [Line Items] | ||
Shares of common stock repurchased and retired (in shares) | 0 | 112 |
Average price paid per share (in dollars per share) | $ 0 | $ 158.70 |
Total cost | $ 0 | $ 17,797 |
Segment Reporting - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Reporting - Revenues and Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization for Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 928,553 | $ 806,706 |
Adjusted Segment EBITDA | 150,091 | 112,746 |
Corporate Finance | ||
Segment Reporting Information [Line Items] | ||
Revenues | 366,010 | 315,652 |
Adjusted Segment EBITDA | 75,225 | 51,847 |
FLC | ||
Segment Reporting Information [Line Items] | ||
Revenues | 176,074 | 157,739 |
Adjusted Segment EBITDA | 33,709 | 21,784 |
Economic Consulting | ||
Segment Reporting Information [Line Items] | ||
Revenues | 204,548 | 169,595 |
Adjusted Segment EBITDA | 14,150 | 14,193 |
Technology | ||
Segment Reporting Information [Line Items] | ||
Revenues | 100,713 | 90,618 |
Adjusted Segment EBITDA | 14,581 | 15,366 |
Strategic Communications | ||
Segment Reporting Information [Line Items] | ||
Revenues | 81,208 | 73,102 |
Adjusted Segment EBITDA | $ 12,426 | $ 9,556 |
Segment Reporting - Reconciliation of Net Income To Adjusted Segment Earnings before Interest, Taxes, Depreciation and Amortization (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Net income | $ 79,965 | $ 47,547 |
Income tax provision | 19,530 | 14,974 |
Interest income and other | (1,581) | 1,342 |
Interest expense | 1,719 | 2,939 |
Total Adjusted Segment EBITDA | 150,091 | 112,746 |
Segment Reconciling Items | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Net income | 79,965 | 47,547 |
Income tax provision | 19,530 | 14,974 |
Interest income and other | (1,581) | 1,342 |
Interest expense | 1,719 | 2,939 |
Unallocated corporate expenses | 39,531 | 34,735 |
Segment depreciation expense | 9,911 | 9,027 |
Amortization of intangible assets | 1,016 | 2,182 |
Total Adjusted Segment EBITDA | $ 150,091 | $ 112,746 |
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