 FTI Consulting, Inc.
Investor Presentation
May 2015
Exhibit 99.1
*
*
* |
 Cautionary Note About Forward-Looking Statements
2
This
presentation
includes
"forward-looking
statements"
within
the
meaning
of
Section
27A
of
the
Securities
Act
of
1933,
as
amended,
and
Section
21E
of
the
Securities
Exchange
Act
of
1934,
as
amended,
which
involve
uncertainties
and
risks.
Forward-
looking
statements
include
statements
concerning
our
plans,
objectives,
goals,
strategies,
future
events,
future
revenues,
future
results
and
performance,
expectations,
plans
or
intentions
relating
to
acquisitions
and
other
matters,
business
trends
and
other
information
that
is
not
historical,
including
statements
regarding
estimates
of
our
medium-term
growth
targets
or
other
future
financial
results.
When
used
in
this
press
release,
words
such
as
"anticipates,"
“aspirational,”
"estimates,"
"expects,"
“goals,”
"intends,"
"believes,”
"forecasts,"
“targets,”
“objectives”
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,
projections
and
growth
targets
are
expressed
in
good
faith,
and
we
believe
there
is
a
reasonable
basis
for
them.
However,
there
can
be
no
assurance
that
management's
expectations,
beliefs,
estimates
or
growth
targets
will
be
achieved,
and
the
Company's
actual
results
may
differ
materially
from
our
expectations,
beliefs,
estimates
and
growth
targets.
The
Company
has
experienced
fluctuating
revenues,
operating
income
and
cash
flow
in
prior
periods
and
expects
that
this
will
occur
from
time
to
time
in
the
future.
Other
factors
that
could
cause
such
differences
include
declines
in
demand
for,
or
changes
in,
the
mix
of
services
and
products
that
we
offer,
the
mix
of
the
geographic
locations
where
our
clients
are
located
or
where
services
are
performed,
adverse
financial,
real
estate
or
other
market
and
general
economic
conditions,
which
could
impact
each
of
our
segments
differently,
the
pace
and
timing
of
the
consummation
and
integration
of
past
and
future
acquisitions,
the
Company's
ability
to
realize
cost
savings
and
efficiencies,
competitive
and
general
economic
conditions,
retention
of
staff
and
clients
and
other
risks
described
under
the
heading
"Item
1A
Risk
Factors"
in
the
Company's
most
recent
Form
10-K
filed
with
the
SEC
and
in
the
Company's
other
filings
with
the
SEC,
including
the
risks
set
forth
under
"Risks
Related
to
Our
Reportable
Segments"
and
"Risks
Related
to
Our
Operations.”
We
are
under
no
duty
to
update
any
of
the
forward
looking
statements
to
conform
such
statements
to
actual
results
or
events
and
do
not
intend
to
do
so. |
 FTI Consulting: A Leader Among Leaders
3
FCN
Publicly traded
$1.7 BLN
1982
Year founded
4,400+
Total employees worldwide
440+
Senior Managing Directors
16
Experts in 16 industry
specialties
2 Nobel
Laureates
10/10
Advisor to world’s top
10 bank holding
companies
94/100
Advisor to 94 of the
world’s top 100 law
firms
47/100
47 of Global Fortune
100 corporations are
clients
80
Offices in 80 cities around
the globe
Market capitalization
(1)
(1)Total Shares outstanding times the closing share price as of December 31,
2014. |
 Overview
4
New management team (CEO, CFO, CHRO, Chief Strategy) put in place over first
nine months of 2014 – focused on analysis, accountability and
discipline FTI Consulting is a leading professional services company with
strong people and strong positions – corporations and law firms come
to FTI Consulting when there is a critical need Willingness to invest
EBITDA in key growth areas where we have strong people and strong positions
Committed to building a profitable business with sustainable underlying growth,
regardless of economic conditions
Shifting
from
a
capital
driven
to
an
organic
growth
strategy
–
with
an
emphasis
on
profitable revenue
growth
Established medium-term financial target of Adjusted EPS of $2.50+ in
2016 |
 Balanced and Diversified Portfolio
Q1 2015 Segment Revenues
5
Q1 2015 Segment EBITDA |
 Corporate Finance/Restructuring
6
Services
Bankruptcy Support Services
Interim Management Services
Investment Banking
Litigation Support
Business Transformation Services
Performance Improvement
Private Equity Advisory
Restructuring/Turnaround Services
Corporations/C-Suite
Boards of Directors
Equity Sponsors
Secured Lenders
Unsecured Creditors
Clients
Transaction Advisory Services
Valuation & Financial Advisory Services
(in thousands, except percentages and headcount data) (unaudited)
See
accompanying
financial
tables
and
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
and
reconciliation
of
Adjusted
Segment
EBITDA,
which
is
a
non-GAAP
financial
measure,
to
the
most
directly
comparable
GAAP
measure,
and
the
definition
of
Adjusted
Segment
EBITDA
Margin.
2010
2011
2012
2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2014
Q1 2015
Segment Revenue
$396,216
$364,409
$394,718
$382,586
$93,982
$104,020
$100,041
$93,072
$391,115
$106,212
Segment Gross Profit
Margin
41.8%
37.4%
39.5%
35.9%
31.9%
35.1%
33.8%
29.3%
32.6%
39.8%
Segment SG&A
$59,629
$60,499
$61,027
$71,966
$19,786
$18,191
$19,047
$18,358
$75,382
$20,528
Adjusted Segment
EBITDA
$ 108,152
$75,942
$95,916
$67,183
$10,951
$19,133
$15,534
$9,874
$55,492
$22,480
Adjusted Segment
EBITDA Margin
27.3%
20.8%
24.3%
17.6%
11.7%
18.4%
15.5%
10.6%
14.2%
21.2%
Segment Billable
Headcount
620
587
697
737
726
713
722
706
706
735 |
 Corporate Finance/Restructuring (continued)
7
The Corporate Finance/Restructuring segment focuses
on strategic, operational, financial and capital needs of
businesses by addressing the full spectrum of financial
and transactional challenges faced by companies,
boards, private equity sponsors, creditor constituencies
and other stakeholders.
Medium–Term Initiatives
Reinforce
core
positions
e.g.,
TMT,
retail,
company-side,
interim management
Drive
organic
growth
in
new/adjacent
businesses
where
we
have the right to win, e.g., Office of the CFO, carve out
Drive
overseas
bets
to
fruition
e.g.,
EMEA
transaction
advisory
services, EMEA Tax
Focus
on
profitability
enhancements
e.g.,
geographic
rationalization, cost control, engagement profitability
improvements
Segment Offering
Revenues
increased
$12.2
million,
or
13.0%,
to
$106.2
million
for the quarter ended March 31, 2015 compared to $94.0
million for the same prior year period.
The increase was primarily due to higher volume in our
distressed and non-distressed engagements in North
America and higher volumes in our EMEA-based transaction
advisory services practices, partially offset by continued
slowdown in our Asia Pacific bankruptcy and restructuring
practices.
Gross profit increased $12.3 million, or 40.9%, to $42.3
million for the quarter ended March 31, 2015 compared to
$30.0 million for the same prior year period. Gross profit
margin increased to 39.8% for the quarter ended March 31,
2015 compared to 31.9% for the same prior year period.
The increase in gross profit margin was due to higher
utilization in our North America and EMEA practices, partially
offset by lower realized bill rates in our North America and
Asia Pacific practices.
Adjusted Segment EBITDA increased $11.5 million, or 105.3%,
to $22.5 million for the quarter ended March 31, 2015
compared to $11.0 million for the same prior year period.
Q1 2015 Form 10–Q Management’s Discussion & Analysis
|
 Forensic and Litigation Consulting
8
Services
Clients
Corporations
Boards of Directors
Governments
Law Firms
Business Insurance Claims
Compliance, Monitoring & Receivership
Construction & Environmental Solutions
Dispute Advisory Services
Financial Enterprise & Data Analytics (“FEDA”)
Financial Services
Forensic Accounting & Advisory Services (“FAAS”)
Global Risk & Investigations Practice (“GRIP”)
Health Solutions
Insurance
Intellectual Property
Trial Services
2010
2011
2012
2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2014
Q1 2015
Segment Revenue
$379,780
$428,730
$407,586
$433,632
$121,429
$119,081
$121,732
$121,138
$483,380
$123,265
Segment Gross Profit
Margin
37.5%
36.5%
33.8%
35.9%
39.2%
36.7%
35.0%
35.4%
36.6%
36.3%
Segment SG&A
$69,712
$78,745
$80,842
$84,616
$22,121
$22,481
$21,409
$24,696
$90,707
$23,634
Adjusted Segment
EBITDA
$76,402
$80,923
$60,566
$74,481
$26,494
$22,271
$22,260
$19,443
$90,468
$22,071
Adjusted Segment
EBITDA Margin
20.1%
18.9%
14.9%
17.2%
21.8%
18.7%
18.3%
16.1%
18.7%
17.9%
Segment Billable
Headcount
911
957
952
1,061
1,076
1,059
1,135
1,154
1,154
1,145
(in thousands, except percentages and headcount data) (unaudited)
See
accompanying
financial
tables
and
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
and
reconciliation
of
Adjusted
Segment
EBITDA,
which
is
a
non-GAAP
financial
measure,
to
the
most
directly
comparable
GAAP
measure,
and
the
definition
of
Adjusted
Segment
EBITDA
Margin. |
 Forensic and Litigation Consulting (continued)
9
Reinvest
behind
core
areas
of
strength
e.g.,
FAAS,
FEDA
Grow
key
regions
where
we
have
a
right
to
win
e.g.,
construction & environmental solutions
Invest
behind
people
to
expand
key
businesses
e.g.,
insurance, cyber security
Segment Offering
The Forensic and Litigation Consulting segment provides
a complete range of multidisciplinary, independent
dispute advisory, investigative, data acquisition/analysis
and forensic accounting services. Our professionals
combine end-to-end capabilities with unmatched
qualifications when clients face high stakes litigation,
arbitration and compliance investigations and regulatory
scrutiny.
Medium–Term Initiatives
Revenues
increased
$1.8
million,
or
1.5%,
to
$123.3
million
for
the quarter ended March 31, 2015 from $121.4 million for the
same prior year period.
Growth was driven by higher success fees in our health
solutions practice, increased demand in our investigations and
global construction practices, which was partially offset by a
decline in demand in our financial and enterprise data
analysis practice.
Gross
profit
decreased
$2.9
million,
or
6.1%,
to
$44.7
million for
the quarter ended March 31, 2015 from $47.6 million for the
same prior year period. Gross profit margin decreased 2.9
percentage points to 36.3% for the quarter ended March 31,
2015
from 39.2% for the same prior year period.
The decrease in gross profit margin was due to lower
utilization across the segment coupled with higher personnel
costs as we ramped up our hiring in order to expand our
capabilities.
Adjusted
Segment
EBITDA
decreased
by
$4.4
million,
or
16.7%,
to $22.1 million for the quarter ended March 31, 2015 from
$26.5 million for the same prior year period.
Q1 2015 Form 10–Q Management’s Discussion & Analysis
|
 Economic Consulting
10
Antitrust & Competition Economics
Business Valuation
Center for Healthcare Economics & Policy
Intellectual Property
International Arbitration
Labor & Employment
Public Policy
Corporations
Government Entities
Law Firms
Services
Clients
Regulated Industries
Securities Litigation & Risk Management
2010
2011
2012
2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2014
Q1 2015
Segment Revenue
$255,660
$ 353,981
$391,622
$447,366
$106,851
$117,227
$120,494
$106,468
$451,040
$106,081
Segment Gross Profit
Margin
33.2%
31.4%
32.3%
32.9%
27.0%
27.6%
27.6%
25.5%
27.0%
24.6%
Segment SG&A
$37,879
$46,802
$51,912
$58,282
$16,880
$15,242
$ 15,683
$18,354
$66,159
$15,501
Adjusted Segment
EBITDA
$49,481
$67,028
$77,461
$92,204
$13,030
$18,043
$18,426
$9,783
$59,282
$11,556
Adjusted Segment
EBITDA Margin
19.4%
18.9%
19.8%
20.6%
12.2%
15.4%
15.3%
9.2%
13.1%
10.9%
Segment Billable
Headcount
297
433
474
530
538
525
551
574
574
566
(in thousands, except percentages and headcount data) (unaudited)
See
accompanying
financial
tables
and
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
and
reconciliation
of
Adjusted
Segment
EBITDA,
which
is
a
non-GAAP
financial
measure,
to
the
most
directly
comparable
GAAP
measure,
and
the
definition
of
Adjusted
Segment
EBITDA
Margin. |
 Economic Consulting (continued)
11
The Economic Consulting segment provides analysis of
complex economic issues. We help our clients with legal,
regulatory and international arbitration proceedings;
strategic decision making; and public policy debates in
the U.S. and around the world. We deliver sophisticated
economic analysis and modeling of issues arising in M&A
transactions, complex antitrust litigation, commercial
disputes, international arbitration, regulatory proceedings
and a wide range of securities litigation. Our statistical
and economic experts help clients analyze complex
economic issues, such as the economic impact of
deregulation on a particular industry or the amount of
damages suffered by a business as a result of particular
events.
Medium–Term Initiatives
Continue
driving
Compass
Lexecon
Expand
international
arbitration,
energy
and
Center
for
Healthcare
Economics
and
Policy
offerings
Continue
to
expand
cross-segment
collaboration
Segment Offering
Revenues
decreased
$0.8
million,
or
0.7%,
to
$106.1
million
for
the
quarter ended March 31, 2015 compared to $106.9 million for the
same prior year period.
Acquisition-related revenues contributed $2.0 million, or 1.9%,
compared to the same prior year period.
Revenues declined organically $2.8 million, or 2.6%, which
includes a 2.5% decrease from the estimated negative impact of
foreign currency translation.
Excluding the foreign currency translation impact, organic
revenues are essentially unchanged, reflecting decreased demand
in our non-M&A related finance and antitrust services, partially
offset by higher demand and realized bill rates in our M&A related
antitrust services and higher demand for our intentional arbitration
regulatory and valuation practices in the EMEA region.
Gross
profit
decreased
$2.7
million,
or
9.5%,
to
$26.1
million
for
the
quarter ended March 31, 2015 compared to $28.9 million for the
same prior year period. Gross profit margin decreased to 24.6% for
the quarter ended March 31, 2015 from 27.0% for the same prior
year period.
The decrease in gross profit margin was the result of lower
utilization in the antitrust practice in the North America region, and
higher variable compensation in the antitrust practice in EMEA.
Adjusted
Segment
EBITDA
decreased
$1.5
million,
or
11.3%,
to
$11.6 million for the quarter ended March 31, 2015, compared to
$13.0 million for the same prior year period.
Q1 2015 Form 10–Q Management’s Discussion & Analysis
|
 Clients
Technology
12
Corporations
Government Agencies
Law Firms
Computer Forensics & Investigations
Discovery Consulting
E-discovery Software & Services
Software & Services
2010
2011
2012
2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2014
Q1 2015
Segment Revenue
$176,607
$218,738
$195,194
$202,663
$60,063
$60,720
$62,359
$58,168
$241,310
$54,654
Segment Gross Profit
Margin
62.7%
60.0%
54.9%
52.2%
48.9%
45.7%
49.7%
47.8%
48.0%
44.7%
Segment SG&A
$ 59,721
$65,322
$62,436
$59,890
$16,079
$16,648
$17,017
$18,418
$68,162
$18,026
Adjusted Segment
EBITDA
$64,358
$77,011
$57,203
$60,655
$17,348
$15,104
$17,835
$13,258
$63,545
$10,073
Adjusted Segment
EBITDA Margin
36.4%
35.2%
29.3%
29.9%
28.9%
24.9%
28.6%
22.8%
26.3%
18.4%
Segment Billable
Headcount
257
290
277
306
321
328
335
344
344
360
(in thousands, except percentages and headcount data) (unaudited)
See
accompanying
financial
tables
and
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
and
reconciliation
of
Adjusted
Segment
EBITDA,
which
is
a
non-GAAP
financial
measure,
to
the
most
directly
comparable
GAAP
measure,
and
the
definition
of
Adjusted
Segment
EBITDA
Margin. |
 Technology (continued)
13
The Technology segment is a leading provider of
software, services and consulting for e-discovery and
information management. We assist clients with
internal, regulatory and global investigations, early case
assessment, litigation and joint defense, antitrust and
competition investigations, including pre-merger
notification “Second Request”, and the secure
management, analysis and use of critical corporate
information. We provide a comprehensive suite of
software and services to help clients locate, review and
produce electronically stored information (“ESI”)
including e-mail, computer files, voicemail, instant
messaging and financial and transactional data. Our
proprietary Ringtail®
software and Acuity®
managed
review are used for e-discovery and document review in
litigation and secure information management.
Medium–Term Initiatives
Segment Offering
Revenues
decreased
$5.4
million,
or
9.0%,
to
$54.7
million
for
the quarter ended March 31, 2015 compared to $60.1 million
in the same prior year period.
Revenue decrease was largely attributable to the slowing of
large cross-border investigations and lower consulting
revenues. Revenue decreases due to lower pricing for
consulting and services were partially offset by increased
volumes on new engagements.
Gross
profit
decreased
$4.9
million,
or
16.8%,
to
$24.4
million
for the quarter ended March 31, 2015 compared to $29.4
million for the same prior year period. Gross profit margin
decreased to 44.7% for the quarter ended March 31, 2015
compared to 48.9% in the same prior year period.
The decrease in gross profit margin was due to the increased
investment in global service delivery personnel and an
increase in lower margin services as a percentage of total
revenues.
Adjusted
Segment
EBITDA
decreased
$7.3
million,
or
41.9%,
to $10.1 million for the quarter ended March 31, 2015
compared to $17.3 million for the same prior year period.
Increased investment in sales and marketing
Ongoing
investment
in
new
products
and
services
and
geographic
expansion to stay leading edge with respect to
the most complicated, major corporate events
Q1 2015 Form 10–Q Management’s Discussion & Analysis
|
 Strategic Communications
14
Services
Corporate Communications
Creative Engagement & Digital Communications
Crisis Communications
Employee Engagement & Change Communications
Financial Communications
Litigation Communications
M&A Communications
Public Affairs
Restructuring & Financial Issues
CEOs
CFOs
Chief Communications Officers
Investor Relations Officers
Boards of Directors
Clients
Shareholder Activism and Proxy Advisory
Strategy Consulting & Research
2010
2011
2012
2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
2014
Q1 2015
Segment Revenue
$193,198
$200,910
$187,750
$186,245
$43,227
$53,276
$46,552
$46,312
$189,367
$42,126
Segment Gross Profit
Margin
37.4%
37.2%
36.9%
34.7%
35.6%
34.5%
37.1%
39.7%
36.7%
37.4%
Segment SG&A
$46,469
$50,919
$46,852
$47,874
$13,128
$13,084
$11,154
$11,524
$48,890
$10,444
Adjusted Segment
EBITDA
$28,971
$26,801
$25,019
$18,737
$2,729
$5,834
$ 6,605
$7,420
$22,588
$5,752
Adjusted Segment
EBITDA Margin
15.0%
13.3%
13.3%
10.1%
6.3%
10.9%
14.2%
16.0%
11.9%
13.7%
Segment Billable
Headcount
583
582
593
590
584
566
549
566
566
556
(in thousands, except percentages and headcount data) (unaudited)
See
accompanying
financial
tables
and
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
and
reconciliation
of
Adjusted
Segment
EBITDA,
which
is
a
non-GAAP
financial
measure,
to
the
most
directly
comparable
GAAP
measure,
and
the
definition
of
Adjusted
Segment
EBITDA
Margin. |
 Strategic Communications (continued)
15
The Strategic Communications segment provides
advice and consulting services relating to financial and
corporate communications and investor relations,
reputation management and brand communications,
public affairs, business consulting and digital design
and marketing.
Medium–Term Initiatives
Reinforce
financial
and
corporate
communications
positions
Continued
expansion
of
public
affairs
practice
Focus
on
EBIT
improvement
Segment Offering
Revenues
decreased
$1.1
million,
or
2.5%,
to
$42.1
million
fo
r the quarter ended March 31, 2015 compared to $43.2
million for the same prior year period.
The revenue decline included an estimated $3.0 million, or
7.0%, decrease from the estimated negative impact of
foreign currency translation.
Excluding the foreign currency translation impact, revenue
increased by $1.9 million due to growth in project-based
revenues largely in our EMEA and Asia Pacific regions, and
growth in retainer based revenues in our EMEA region.
Gross
profit
increased
$0.4
million,
or
2.4%,
to
$15.8
million
for the quarter ended March 31, 2015 from $15.4 million for
the same prior year period. Gross profit margin increased to
37.4% for the quarter ended March 31, 2015 from 35.6% for
the same prior year period.
Gross profit margin increase was primarily due to lower
headcount and staff costs, as well as improved revenue mix
involving higher margin engagements.
Adjusted
Segment
EBITDA
increased
$3.0
million,
or
110.8%,
to $5.8 million for the quarter ended March 31, 2015 from
$2.7 million for the same prior year period.
Q1 2015 Form 10–Q Management’s Discussion & Analysis
|
 Financial Overview
*
*
* |
 Historical Revenues and Adjusted Earnings Per Share
17
See
accompanying
financial
tables
and
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
and
reconciliation
of
Adjusted
Earnings
Per
Share,
which
is
a
non-GAAP
financial
measure,
to
the
most
directly
comparable
GAAP
measure,
except
for
the
year
ended
December
31,
2009
for
which
there
were
no
adjustments
from
fully
diluted
EPS
to
Adjusted
EPS. |
 Financial Profile
18
(1) DSO is a performance measure used to assess how quickly revenues are
collected by the Company. We calculate DSO at the end of each reporting period by dividing net accounts
receivable reduced by billings in excess of services provided, by revenue for
the quarter, adjusted for changes in foreign exchange rates. We multiply the result by the number of days in the
quarter.
Q1 2015
Q1 2014
Q4 2014
FY 2014
FY 2013
Cash and cash equivalents
$ 225,295
$ 77,005
$ 283,680
$ 283,680
$ 205,833
Accounts receivable, net
$ 513,285
$ 545,072
$ 485,101
$ 485,101
$ 476,445
Days sales outstanding ("DSO")
101
106
97
97
97
Net cash (used in) provided by
operating activities
$ (51,333)
$ (110,795)
$ 114,922
$ 135,401
$ 193,271
Purchases of property and
equipment
$ 8,876
$ 15,179
$ 7,459
$ 39,256
$ 42,544
Payments for acquisition of
businesses, net of cash received
-
$ 15,611
$ 7,783
$ 23,467
$ 55,498
Purchase and retirement of common
stock
-
$ 4,367
-
$ 4,367
$ 66,763
Total debt
$ 711,000
$ 737,000
$ 711,000
$ 711,000
$ 717,014
All numbers in $000s except for DSOs
1 |
 Appendix
*
*
* |
 FTI Technology’s Jessica Block recognized
by Consulting
magazine as a Rising Star of
the Profession
Honored by the Global M&A Network in the
Emerging Markets M&A Deal of the Year -
$.5-1 billion
category
FTI Technology’s Ringtail recognized as a top online
review platform in the 2015 Best of The National Law
Journal
reader
rankings
Compass Lexecon Expert Professor
Bradford Cornell Wins a Bernstein
Fabozzi/Jacobs Levy Award for
Outstanding Article in The Journal of
Portfolio Management
First Quarter 2015 Awards & Accolades
20
Corporate Finance/Restructuring’s Sanjeev Khemlani
and Mark Renzi named in Turnarounds & Workouts'
People to Watch in 2015
Recognized by Turnarounds & Workouts’
Successful Restructurings of 2014 for
our work on Preferred Proppants and
Overseas Shipholding Group
FTI Consulting ranked number one
restructuring adviser on The Deal's Out-
of-Court Restructuring League Tables for
both debtors and creditors
Honored with seven M&A Advisor Turnaround
Awards, including engagements for Momentive
Performance Materials, Inc., TSC Acquisition Corp,
Ashley Stewart Holdings, Inc., et al., Classic Party
Rentals |
 FTI Consulting Executive Leadership Team
21
Steven H. Gunby
President & Chief
Executive Officer
David M. Johnson
Chief Financial
Officer
Paul Linton
Chief Strategy &
Transformation
Officer
Holly Paul
Chief Human
Resources Officer
Adam S. Bendell
Chief Innovation
Officer
Catherine Freeman
Senior Vice
President,
Controller & Chief
Accounting Officer
Jeffrey S. Amling
Senior Managing
Director,
Business
Development &
Marketing
Mollie Hawkes
Senior Director,
Investor Relations
Heather Klink
Acting General
Counsel |
 FTI Consulting Business Leadership Team
22
Robert Duffy
Global Segment
Leader, Corporate
Finance/
Restructuring
Neal Hochberg
Global Segment
Leader, Forensic &
Litigation Consulting
John Klick
Global Segment
Leader, Economic
Consulting
Seth Rierson
Global Segment
Leader,
Technology
Ed Reilly
Global Segment
Leader, Strategic
Communications
Ken Barker
Global Practice
Leader, Health
Solutions
Carlyn Taylor
Global Industries
Leader
Rod Sutton
Asia Pacific
Chairman
Frank Holder
Latin America
Chairman |
 Financial Tables
Q1 2015 –
FY 2010 Reconciliation of Net Income
(Loss) to Adjusted EPS and Adjusted EBITDA
*
*
* |
 Q1 2015 -
FY 2010 Reconciliation of Earnings (Loss) Per
Share to Adjusted Earnings Per Share
24
Q1 2015
2014
2013
2012
2011
2010
Net income (loss)
$23,686
$58,807
($10,594)
($36,986)
$103,903
$65,984
Add back:
Special charges, net of tax
-
9,637
23,267
19,115
9,285
32,733
Goodwill impairment charge
-
-
83,752
110,387
-
-
Loss on early extinguishment of debt, net of tax
-
-
-
2,910
-
3,019
Remeasurement of acquisition-related contingent
consideration, net of taxes
-
(1,718)
(12,054)
(5,228)
(9,953)
-
Adjusted Net Income
(1)
$23,686
$66,726
$84,371
$90,198
$103,235
$101,736
Earnings (loss) per common share –
diluted
$0.57
$1.44
($0.27)
($0.92)
$2.39
$1.38
Add back:
Special charges, net of tax
-
0.24
0.59
0.47
0.21
0.69
Goodwill impairment charge
-
-
2.14
2.74
-
-
Loss on early extinguishment of debt, net of tax
-
-
-
0.07
-
0.06
Remeasurement of acquisition-related contingent
consideration, net of taxes
-
(0.04)
(0.30)
(0.13)
(0.23)
-
Impact of denominator for diluted adjusted earnings per
common share
-
-
(0.07)
(0.06)
-
-
Adjusted earnings per common share –
diluted
(1)
$0.57
$1.64
$2.09
$2.17
$2.37
$2.13
Weighted average number of common shares outstanding –
diluted
41,324
40,729
40,421
41,578
43,473
47,664
All numbers in $000s, except for per share data
(1)
See
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
of
Adjusted
Net
Income
and
Adjusted
Earnings
per
Diluted
Share. |
 Q1 2015 and FY 2014: Reconciliation of Net Income And
Operating Income to Adjusted EBITDA
25
Three Months Ended March 31, 2015
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net income
$23,686
Interest income and other
137
Interest expense
$12,368
Income tax provision
$11,657
Operating income
(1)
$20,764
$20,474
$10,296
$6,198
$4,197
($14,081)
$47,848
Depreciation and amortization of
intangible assets
$1,716
$1,597
$1,260
$3,875
$1,555
$817
$10,820
Adjusted EBITDA
(1)
$22,480
$22,071
$11,556
$10,073
$5,752
($13,264)
$58,668
(1)
See
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
of
Segment
Operating
Income,
Adjusted
EBITDA
and
Adjusted
Segment
EBITDA.
All numbers in $000s
Year Ended December 31, 2014
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net income
$58,807
Interest income and other
($4,670)
Interest expense
$50,685
Income tax provision
$42,604
Operating income
(1)
$46,913
$83,180
$55,282
$46,906
$15,603
($100,458)
$147,426
Depreciation and amortization of
intangible assets
$3,568
$4,301
$4,068
$15,768
$2,562
$3,722
$33,989
Amortization of other intangible assets
$5,589
$3,613
$1,047
$852
$4,420
-
$15,521
Special charges
$84
$308
$12
$19
$3
$15,913
$16,339
Remeasurement of acquisition-related
contingent consideration
($662)
($934)
($1,127)
-
-
-
($2,723)
Adjusted EBITDA
(1)
$55,492
$90,468
$59,282
$63,545
$22,588
($80,823)
$210,552 |
 Q1 and Q2 2014: Reconciliation of Net Income And Operating
Income to Adjusted EBITDA
26
Three Months Ended March 31, 2014
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net income
$18,117
Interest income and other
($1,003)
Interest expense
$12,655
Income tax provision
$10,348
Operating income
(1)
$8,607
$25,402
$12,430
$13,066
$1,005
($20,393)
$40,117
Depreciation and amortization of
intangible assets
$3,006
$1,765
$1,387
$4,282
$1,724
$1,037
$13,201
Remeasurement of acquisition-related
contingent consideration
($662)
($673)
($787)
-
-
-
($2,122)
Adjusted EBITDA
(1)
$10,951
$26,494
$13,030
$17,348
$2,729
($19,356)
$51,196
(1)
See
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
of
Segment
Operating
Income,
Adjusted
EBITDA
and
Adjusted
Segment
EBITDA.
All numbers in $000s
Three Months Ended June 30, 2014
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net Income
$17,247
Interest income and other
($1,448)
Interest expense
$12,908
Income tax provision
$10,225
Operating income
(1)
$17,068
$20,839
$16,840
$10,905
$4,030
($30,750)
$38,932
Depreciation and amortization of
intangible assets
$2,065
$1,693
$1,203
$4,199
$1,804
$904
$11,868
Special charges
-
-
-
-
-
$9,364
$9,364
Remeasurement of acquisition-related
contingent consideration
-
($261)
-
-
-
-
($261)
Adjusted EBITDA
(1)
$19,133
$22,271
$18,043
$15,104
$5,834
($20,482)
$59,903 |
 Q3 and Q4 2014: Reconciliation of Net Income And Operating
Income to Adjusted EBITDA
27
All numbers in $000s
(1)
See
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
of
Segment
Operating
Income
(Loss),
Adjusted
EBITDA
and
Adjusted
Segment
EBITDA.
Three Months Ended December 31, 2014
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net Income
$921
Interest income and other
($1,205)
Interest expense
$12,488
Income tax provision
$9,702
Operating income
(1)
$7,832
$16,663
$8,767
$9,194
$5,693
($26,243)
$21,906
Depreciation and amortization of intangible
assets
$2,042
$2,780
$1,356
$4,064
$1,727
$895
$12,864
Special charges
-
-
-
-
-
$1,628
$1,628
Remeasurement of acquisition-related
contingent consideration
-
-
($340)
-
-
-
($340)
Adjusted EBITDA
(1)
$9,874
$19,443
$9,783
$13,258
$7,420
($23,720)
$36,058
Three Months Ended September 30, 2014
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net income
$22,522
Interest income and other
($1,014)
Interest expense
$12,634
Income tax provision
$12,329
Operating income
(1)
$13,406
$20,276
$17,245
$13,741
$4,875
($23,072)
$46,471
Depreciation and amortization of intangible
assets
$2,044
$1,676
$1,169
$4,075
$1,727
$886
$11,577
Special charges
$84
$308
$12
$19
$3
$4,921
$5,347
Adjusted EBITDA
(1)
$10,951
$26,494
$13,030
$17,348
$2,729
($19,356)
$63,395 |
 Reconciliation of 2013 and 2012 Net Loss And Operating
Income (Loss) to Adjusted EBITDA
28
(1)
See
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliation”
for
definitions
of
Segment
Operating
Income
(Loss),
Adjusted
EBITDA
and
Adjusted
Segment
EBITDA.
Year Ended December 31, 2013
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net loss
($10,594)
Interest income and other
($1,748)
Interest expense
$51,376
Income tax provision
$42,405
Operating income (loss)¹
$58,594
$68,211
$86,714
$38,038
($72,129)
($97,989)
$81,439
Depreciation and amortization of
intangible assets
$9,929
$6,100
$5,479
$22,601
$7,048
$4,338
$55,495
Special charges
$10,274
$2,111
$11
$16
$66
$25,936
$38,414
Goodwill impairment charge
-
-
-
-
$83,752
-
$83,752
Remeasurement of acquisition-related
contingent consideration
($11,614)
($1,941)
-
-
-
-
($13,555)
Adjusted EBITDA¹
$67,183
$74,481
$92,204
$60,655
$18,737
($67,715)
$245,545
Year Ended December 31, 2012
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net loss
($36,986)
Interest income and other
($5,659)
Interest expense
$56,731
Income tax provision
$40,100
Loss on early extinguishment of debt
$4,850
Operating income (loss)
(1)
$80,970
$45,809
$71,992
$33,642
($97,298)
($76,079)
$59,036
Depreciation and amortization of
intangible assets
$8,835
$6,487
$4,478
$20,447
$7,218
$4,546
$52,011
Special charges
$11,332
$8,276
$991
$3,114
$4,712
$1,132
$29,557
Goodwill impairment charge
-
-
-
-
$110,387
-
$110,387
Remeasurement of acquisition-related
contingent consideration
($5,222)
($6)
-
-
-
-
($5,228)
Adjusted EBITDA
(1)
$95,915
$60,566
$77,461
$57,203
$25,019
($70,401)
$245,763
All numbers in $000s |
 Reconciliation of 2011 and 2010 Net Income And Operating
Income to Adjusted EBITDA
29
Year Ended December 31, 2011
Corporate Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net income
$103,903
Interest income and other
($6,304)
Interest expense
$58,624
Income tax provision
$49,224
Operating income
(1)
$66,591
$74,831
$60,890
$57,917
$19,066
($73,848)
$205,447
Depreciation and amortization of intangible
assets
$8,902
$6,215
$4,045
$19,094
$7,735
$4,962
$50,953
Special charges
$9,440
$839
$2,093
-
-
$2,840
$15,212
Remeasurement of acquisition-related
contingent consideration
($8,991)
($962)
-
-
-
-
($9,953)
Adjusted EBITDA
(1)
$75,942
$80,923
$67,028
$77,011
$26,801
($66,046)
$261,659
All numbers in $000s
(1)
See
“End
Notes:
FTI
Consulting
Non-GAAP
Data
Reconciliations”
for
the
definition
of
Segment
Operating
Income
,
Adjusted
EBITDA
and
Adjusted
Segment
EBITDA.
Year Ended December 31, 2010
Corporate
Finance/
Restructuring
Forensic and
Litigation
Consulting
Economic
Consulting
Technology
Strategic
Communications
Corporate
Total
Net income
$65,984
Interest income and other
($4,423)
Interest expense
$50,263
Income tax provision
$41,407
Loss on early extinguishment of debt
$5,161
Operating income
(1)
$89,861
$62,759
$39,180
$27,569
$11,602
($72,579)
$158,392
Depreciation and amortization of intangible
assets
$9,730
$7,447
$3,634
$20,876
$8,325
$5,232
$55,244
Special charges
$8,561
$6,196
$6,667
$15,913
$9,044
$4,750
$51,131
Adjusted EBITDA
(1)
$108,152
$76,402
$49,481
$64,358
$28,971
($62,597)
$264,767 |
 End Notes: FTI Consulting Non-GAAP Data Reconciliations
30
We define Adjusted Net Income and Adjusted Earnings per Diluted Share
(“Adjusted EPS”) as Net Income and Earnings Per Diluted Share, respectively,
excluding the impact of remeasurement of acquisition-related contingent
consideration, special charges, goodwill impairment charges and losses on early
extinguishment of debt. We use Adjusted Net Income for the purpose of
calculating Adjusted EPS. Management uses Adjusted EPS to assess total
Company operating performance on a consistent basis. We believe that this
measure, when considered together with our GAAP financial results, provides
management and investors with a more complete understanding of our business
operating results, including underlying trends, by excluding the effects
of remeasurement of acquisition-related contingent consideration, special
charges, goodwill impairment charges and losses on early extinguishment of
debt.
We
define
Segment
Operating
Income
(loss)
as
a
segment’s
share
of
consolidated
operating
income
(loss).
We
define
Total
Segment
Operating
Income
(loss) as the total of Segment Operating Income (loss) for all segments, which
excludes unallocated corporate expenses. We use Segment Operating Income
(loss) for the purpose of calculating Adjusted Segment EBITDA (loss). We define Adjusted EBITDA as consolidated net income (loss) before
income tax provision, other non-operating income (expense), depreciation,
amortization of intangible assets, remeasurement of acquisition-related
contingent consideration, special charges, goodwill impairment charges and
losses on early extinguishment of debt. We define Adjusted Segment EBITDA
as a segment’s share of consolidated operating income (loss) before
depreciation, amortization of intangible assets, remeasurement of acquisition-
related contingent consideration, special charges and goodwill impairment
charges. We define Total Adjusted Segment EBITDA as the total of Adjusted
Segment EBITDA for all segments, which excludes unallocated corporate expenses.
We define Adjusted EBITDA Margin as Adjusted EBITDA as a
percentage
of
total
revenues.
We
define
Adjusted
Segment
EBITDA
Margin
as
Adjusted
Segment
EBITDA
as
a
percentage
of
a
segment’s
share
of
revenue. We use Adjusted Segment EBITDA to internally evaluate the financial
performance of our segments because we believe it is a useful
supplemental measure which reflects current core operating performance and
provides an indicator of the segment’s ability to generate cash. We also
believe that these measures, when considered together with our GAAP financial
results, provide management and investors with a more complete
understanding of our operating results, including underlying trends, by
excluding the effects of remeasurement of acquisition-related contingent
consideration,
special
charges,
and
goodwill
impairment
charges.
In
addition,
EBITDA
is
a
common
alternative
measure
of
operating
performance
used
by
many of our competitors. It is used by investors, financial analysts, rating
agencies and others to value and compare the financial performance of
companies
in
our
industry.
Therefore,
we
also
believe
that
these
measures,
considered
along
with
corresponding
GAAP
measures,
provide
management
and investors with additional information for comparison of our operating
results to the operating results of other companies. Non-GAAP
financial measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of
other
companies.
Non-GAAP
financial
measures
should
be
considered
in
addition
to,
but
not
as
a
substitute
for
or
superior
to,
the
information
contained
in our Consolidated Statements of Comprehensive Income (loss).
|
 Critical Thinking at the Critical Time ™
*
*
* |