FTI Consulting, Inc. · NYSE:FCN
FTI Consulting — Investor Presentation (May 2007)
17 slides from FTI Consulting's investor presentation, May 2007
Slide 1: Protecting and Enhancing Enterprise Value In a Complex World
FTI Consulting, Inc. Protecting and Enhancing Enterprise Value In a Complex World May 2007 ®
Slide 2: Cautionary Note about Forward-Looking Statements
Cautionary Note about Forward-Looking Statements Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ mat
Slide 3: FTI Provides Critical Solutions to Organizations Confronting Complex Challenges
FTI Provides Critical Solutions to Organizations Confronting Complex Challenges that Shape their Future • Attractive Industry Dynamics • Now Delivered Across a Global Platform • “Gold Standard” Industry Leading Practices • Unsurpassed Intellectual Capital • Disciplined Growth Strategy • Superior Eco
Slide 4: FTI has "Gold Standard" Industry Leading Practices
FTI has “Gold Standard” Industry Leading Practices Corporate Finance/ Restructuring Forensic & Litigation Technology Consulting PP • Restructuring • Dispute resolution • Electronic evidence RR • Transaction advisory • Securities and other discovery services investigations Repository services AA Valu
Slide 5: Attractive Industry Dynamics Drives Strong Organic Growth
Attractive Industry Dynamics Drives Strong Organic Growth Increasing Global Regulation, Litigation and Public Scrutiny Living With Sarbanes-Oxley: How Companies are Coping in the New Growing Board and C-Suite Focus on Era of Corporate Governance Process, Complexity, Reputation and Communications Lev
Slide 6: FTI Provides Critical Solutions for Elite Clients
FTI Provides Critical Solutions for Elite Clients ® 6
Slide 7: FD, our newest practice, serves similar global clients with recurring revenue model
FD, our newest practice, serves similar global clients with an attractive recurring revenue model >80% Percentage of revenue from retained clients 58% Percentage of top 50 clients that use multiple services 750+ clients Including leading global corporations ® 7
Slide 8: FTI is now a Global Company
FTI is now a Global Company – with Professionals in Every Major Financial Center Cities with FTI offices Cities with FD offices Cities with both offices Cities with Q2 office openings ® 8
Slide 9: FTI's Strategy - Diversified and Balanced Business
FTI’s Strategy - Diversified and Balanced Business • From a business with 80% of earnings from the restructuring business in 2003, FTI now has a highly balanced suite of complementary yet diverse services. • Business practices have differing demand drivers, promoting stable growth across business cy
Slide 10: Similarly, FTI's Clients are Broad and Diverse
Similarly, FTI’s Clients are Broad and Diverse • Clients are major corporations, financial institutions, private equity firms, and law firms; with 80-85% repeat/referral business • During 2006, FTI’s U.S. Operations served 1,300 clients on 3,600 matters, FD served over 750 clients around the world 9
Slide 11: The Scorecard - $1 billion of revenue and 25% EBITDA margin
The Scorecard - $1 billion of revenue and 25% EBITDA margin(1) • Coming off $427 million of revenue in 2004, we established a plan to grow revenue to $1 billion by 2009, generate 15% of our revenue outside of the US, produce 25% margins while maintaining conservative leverage of less than 3:1 • We n
Slide 12: FTI - Superior Financial Results
FTI - Superior Financial Results (G) Mid Point of Guidance (1) Adjusted to include stock option expense in all periods (2) Before 1 time charges or credits Rev: $427.0 Rev: $539.5 Rev: $707.9 Rev: $916.0(G) Revenues (000's) EPS: $.95(2) EPS: $1.13(2) EPS: $1.36(2) EPS: $1.79(G) EPS (1) $1,000 $2.00
Slide 13: All Practices had Favorable Results in 2006
All Practices had Favorable Results in 2006 Revenues EBITDA Average (millions) Revenues Margin% Utilization Rate EBITDA (thousands) EBITDA Margin% 2006 Forensic/Litigation $ 193.3 $ 55.3 28.6% Corporate Finance/Restructuring $ 212.6 $ 51.5 24.2% Economic Consulting $ 144.1 $ 36.9 25.6% Technology $
Slide 14: Strong Outlook for 2007
Strong Outlook for 2007 EPS Guidance - $1.74 to $1.84 per share Revenues EBITDA EBITDA (millions) (millions) Margin% Forensic/Litigation Consulting $ 234-$239 $ 67-$70 28.6%-29.3% Technology Consulting $ 147-$152 $ 53-$56 36.1%-36.8% Corporate Finance/Restructuring $ 224-$229 $ 56-$58 25.0%-25.3% Ec
Slide 15: First Quarter Results Solid Start to the Year
First Quarter Results Solid Start to the Year 2006 2007 Revenues $169.3 $227.7 EBITDA 33.6 44.4 Net Income 12.3 15.3 EPS $.31 $.36 (Dollars in Millions except EPS) ® 15
Slide 16: Expected 2007 Seasonal Trends
Expected 2007 Seasonal Trends In addition to Secular Growth throughout the year, acquired businesses improve earnings visibility and change seasonal trends Approx. contrib. to ‘07 Revenue • FD seasonality • HR/Benefit Expenses (e.g. social security, 401K, 24% +/- Q1 ESPP) • Salary increases vs. rate
Slide 17: FTI – A Compelling Growth Story
FTI – A Compelling Growth Story • Explosive Industry Fundamentals • International “Blue-Chip” Client Base • Strategically Aligned Service Offerings • Distributed Across our New Global Platform • Unsurpassed Intellectual Capital • Proprietary “Gold Standard” Technology • Highly Profitable Business Mo