Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Investor Presentation (March 2018)
31 slides from Fti Consulting's investor presentation, March 2018
Slide 1: FTI Consulting, Inc. Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation March 2018
Slide 2: Cautionary Note about Forward-Looking Statements
Cautionary Note about Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that i
Slide 3: Investment Thesis
Investment Thesis Leading global business advisory firm with strong people and strong positions: corporations, law firms and governments come to us when there is a critical need Organic growth strategy with an emphasis on profitable revenue growth Committed to building a profitable business with sus
Slide 4: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FCN $1.8BLN 1982 4,600+ Publicly Traded Equity Market Year Founded Total Employees Capitalization1 Worldwide 450+ 78 9 2 Nobel Senior Managing Directors Offices in 78 Cities Around the Globe 9 Specialized Industry Practice Groups Laureates 8/10 96/100 53/100 Advis
Slide 5: Our Global Reach
Our Global Reach With offices in every major financial center and every corner of the globe, we successfully serve our clients wherever challenges and opportunities arise. Asia Pacific North America Australia Indonesia Canada Brisbane Jakarta Calgary Melbourne Toronto Japan Perth Vancouver Sydney To
Slide 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose Corporate Finance & Restructuring FTI Consulting is organized Technology into five segments, each of Economic which is a global leader in Consulting its own right for one simple reason: our commitment to having a tangible, positive impact on how our clie
Slide 7: Segment Snapshot: Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Revenues and Total Adjusted Segment EBITDA FY 2017 Segment Revenues FY 2017 Total Adjusted Segment EBITDA¹ 10% 11% 10% 27% 8% 31% 23% 27% 26% 27% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications ¹See accomp
Slide 8: Corporate Finance & Restructuring Services
Corporate Finance & Restructuring Services Restructuring • Company Advisory • Interim Management • Transaction Services 15 countries • Creditor Advisory Executive Compensation • Interim Management Transactions • Contentious Insolvency • Transaction Services • Dispute Advisory/ • Investment Banking &
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering FY 2017 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on • Revenues decreased $1.2 million, or 0.3%, from 2016 to 2017. strategic, operational, financial and capital needs of businesses by Acquisition-rel
Slide 10: Forensic & Litigation Consulting Services
Forensic & Litigation Consulting Services Risk Advisory Disputes 1,067 • Anti-Corruption Investigations • Construction Solutions professionals & Compliance • Dispute Advisory Services • Compliance, Monitoring & • Financial Services Receivership • Global Insurance Services • Data & Analytics • Health
Slide 11: Forensic & Litigation Consulting (continued)
Forensic & Litigation Consulting (continued) Segment Offering FY 2017 Key Financial Commentary The Forensic & Litigation Consulting segment provides a complete • Revenues increased $4.6 million, or 1.0%, from 2016 to 2017. This range of multidisciplinary, independent dispute advisory, increase was d
Slide 12: Economic Consulting Services
Economic Consulting Services • Antitrust & Competition • Network Analysis Economics • Public Policy 15 • Business Valuation • Regulated Industries countries • Center for Healthcare • Securities Litigation & Economics and Policy Risk Management • Economic Impact Analysis • Intellectual Property 37 •
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering FY 2017 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass • Revenues decreased $4.5 million, or 0.9%, from 2016 to 2017. This Lexecon, provides analysis of complex economic issues. We help decrease was primarily dr
Slide 14: Technology
Technology Consulting & Services Software E-discovery Services & Expertise Ringtail® E-Discovery 8 countries • Managed Review Software • Computer Forensics • On-Premise Licensing • Authorized Provider of Ringtail®, Radiance and Relativity • SaaS Subscriptions Information Governance, Privacy & Securi
Slide 15: Technology (continued)
Technology (continued) Segment Offering FY 2017 Key Financial Commentary The Technology segment is a leading provider of software and • Revenues decreased $2.9 million, or 1.6%, from 2016 to 2017. This decrease consulting services for e-discovery and information management. was primarily driven by l
Slide 16: Strategic Communications Services
Strategic Communications Services • M&A Crisis Communications & Special Situations • Capital Markets Communications • Corporate Reputation • Public Affairs & Government Relations 16 • Employee Engagement & Change Communications countries • Digital & Creative Communications • Public Affairs • Strateg
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering FY 2017 Key Financial Commentary The Strategic Communications segment provides a • Revenues increased $1.3 million, or 0.7%, from 2016 to 2017. This comprehensive view of strategic communications with an increase was due to higher retainer-based
Slide 18: Our Clients: We Serve the World's Leading Corporations and Law Firms
Our Clients: We Serve the World's Leading Corporations and Law Firms 18
Slide 19: Full Year 2017 Awards & Accolades
Full Year 2017 Awards & Accolades • FTI Consulting named to Forbes magazine list of America’s Best Management Consulting Firms for the second consecutive year — recognized in 20 sectors and functional areas • Corporate Finance & Restructuring ranked the #1 U.S. Restructuring Advisor according to The
Slide 20: Financial Overview
Financial Overview
Slide 21: FY 2013 – FY 2018 Guidance: Revenues
FY 2013 – FY 2018 Guidance: Revenues $2,100 $1,810 $1,808 $1,825-$1,875 $1,756 $1,779 $1,750 $1,652 $1,400 $ (Millions) $1,050 $700 $350 $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Guidance 21
Slide 22: FY 2013 – FY 2017: Net Income (Loss) and Adjusted EBITDA
FY 2013 – FY 2017: Net Income (Loss) and Adjusted EBITDA Net Income (Loss) $108.0 $100.0 $85.5 $66.1 $58.8 $60.0 $ (Millions) $20.0 -$20.0 ($10.6) -$60.0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Adjusted EBITDA $320.0 $245.5 $240.0 $210.6 $205.8 $203.0 $192.0 $ (Millions) $160.0 $80.0 $0.0 FY 2013 FY
Slide 23: FY 2013 – FY 2018 Guidance: Earnings Per Diluted Share
FY 2013 – FY 2018 Guidance: Earnings (Loss) Per Diluted Share and Adjusted Earnings Per Diluted Share Earnings (Loss) Per Diluted Share $4.50 $2.75 $3.00 $2.35-$2.65 $2.05 $1.44 $1.58 $1.50 $0.00 ($0.27) -$1.50 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Guidance Adjusted Earnings Per Diluted Sh
Slide 24: Select Cash Position and Capital Allocation
Full Year 2017, 2016 and 2015: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs FY 2017 FY 2016 FY 2015 Cash and cash equivalents $ 189,961 $ 216,158 $ 149,760 Accounts receivable, net $ 522,878 $ 474,897 $ 499,784 Days sales outstanding ("DSO") 91 91 97 Net cash
Slide 25: Financial Tables Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 26: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 Net Income (Loss) $ 107,962 $ 85,520 $ 66,053 $ 58,807 $ (10,594) Interest income and other (3,752) (10,466) (3,232) (4,670) (1,748) Interest expense 25,358 24,819 42,768 50,685 51,376 Incom
Slide 27: Reconciliations of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliations of Net Income (Loss) to Adjusted Net Income and Earnings (Loss) Per Diluted Share to Adjusted Earnings Per Diluted Share (in thousands, except for per share data) FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 Net income (loss) $107,962 $85,520 $66,053 $58,807 $(10,594) Add back: Special ch
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) FY 2017 Net Income $107,962 Add back: Income tax provision (benefit) (20,857) Interest income and other (3,752) Interest expense 25,358 Unallocated corporate expenses 83,140 Segment depreciation expense 27,112 Amortization
Slide 29: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow FY 2017 FY 2016 FY 2015 (in thousands) Net cash provided by operating activities $147,625 $233,488 $139,920 Purchases of property and equipment (32,004) (28,935) (31,399) Free Cash Flow1 $115,621 $204,553 $108,521 1 See “E
Slide 30: End Notes: FTI Consulting Non-GAAP Financial Measures
End Notes FTI Consulting Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles ("GAAP").
Slide 31: iim Ft...
iim Ft... CONSULTING | EXPERTS WITH IMPACT”