Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Bank of America Merrill Lynch 2018 Leveraged Finance Conference
28 slides from Fti Consulting's conference presentation, Dec 4, 2018
Slide 1: FTI Consulting, Inc. – BofA Merrill Lynch 2018 Leveraged Finance Conference
FTI Consulting, Inc. Bank of America Merrill Lynch 2018 Leveraged Finance Conference December 4, 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, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-loo
Slide 3: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FCN $2.8BLN 1982 4,600+ Publicly Equity Market Year Total Employees Traded Capitalization1 Founded Worldwide 490+ 76 9 2 Nobel Senior Managing Offices in 76 Cities 9 Specialized Industry Laureates Directors Around the Globe Practice Groups 8/10 96/100 53/100 Advis
Slide 4: Investment Thesis
Investment Thesis Leading global business advisory firm with strong people and strong positions: corporations, law firms and governments come to us when there is a critical need Organic growth strategy with an emphasis on profitable revenue growth Committed to building a profitable business with sus
Slide 5: Recent Performance Builds on Success Against Transformational Agenda
Recent Performance Builds on Success Against Transformational Agenda Revenues Net Income ($ in millions) $1,990.6 ($ in millions) 79% $193.8 10% $1,810.4 $1,807.7 $108.0 $1,756.2 $1,779.1 $85.5 $58.8 $66.1 2014 2015 2016 2017 3Q18 LTM* 2014 2015 2016 2017 3Q18 LTM* $5.10 Adjusted EBITDA (1) EPS and
Slide 6: Robust Cash Flows and Strong Balance Sheet
Robust Cash Flows and Strong Balance Sheet Debt Total Debt, Net of Cash/Adjusted EBITDA (1) ($ in millions) Total Debt, Net of Cash Cash 2.5x $800.0 $800.0 $711 $700.0 $700.0 2.0x 2.0x $600.0 $600.0 1.7x $284 $500 $500.0 $500.0 1.5x $370 $400 $400.0 $150 $400.0 1.1x $316 1.0x $300.0 $190 $300.0 0.8x
Slide 7: We are Recognized as the World’s Leading Experts
We are Recognized as the World’s Leading Experts 2018 2018 2018 2018 America’s Best Consulting Firm of the #1 Crisis Management Global Turnaround Management Consulting Year Firm Consulting Firm of the Year Firms 2018 2018 2018 2018 Forensic Accounting Firm Compass Lexecon #1 on Top 10 Best Consultin
Slide 8: Our Balanced and Diversified Portfolio
Our Balanced and Diversified Portfolio 3Q18 LTM Revenues 3Q18 LTM Total Adjusted Segment EBITDA (1) 3Q18 LTM Revenues by Segment by Segment by Region Strategic Strategic Asia Pacific Communications Corporate Communications Corporate Finance & Finance & 7% Restructuring Technology 11% Restructuring T
Slide 9: Corporate Finance & Restructuring
Corporate Finance & Restructuring ($ in millions) +14% 926 professionals $550.2 $483.3 $482.0 $440.4 $391.1 43 offices $55.5 $90.1 $97.7 $82.9 $123.1 15 countries 2014 2015 2016 2017 3Q18 LTM* Revenues Adjusted Segment EBITDA (1) Growth Opportunities – Enhance Business Transformation and Transaction
Slide 10: Forensic & Litigation Consulting
Forensic & Litigation Consulting ($ in millions) +10% 1,129 professionals $483.4 $509.1 $482.3 $457.7 $462.3 52 offices $90.5 $64.3 $57.9 $72.7 $99.0 18 countries 2014 2015 2016 2017 3Q18 LTM* Revenues Adjusted Segment EBITDA (1) Growth Opportunities - Enhance core offerings, including Data & Analyt
Slide 11: Economic Consulting
Economic Consulting ($ in millions) +6% 15 countries $500.5 $526.6 $496.0 $451.0 $447.9 37 offices $59.3 $62.3 $74.1 $62.0 $72.1 705 professionals 2014 2015 2016 2017 3Q18 LTM* Revenues Adjusted Segment EBITDA (1) Growth Opportunities – Maintain leading position of Compass Lexecon – Grow overseas bu
Slide 12: Technology
Technology ($ in millions) 9 countries +6% $241.3 $218.6 $177.7 $174.9 $185.0 31 offices $63.5 $39.0 $25.8 $22.2 $27.7 303 2014 2015 2016 2017 3Q18 LTM* professionals Revenues Adjusted Segment EBITDA (1) Growth Opportunities – Expand addressable market through new distribution channels for Consultin
Slide 13: Strategic Communications
Strategic Communications ($ in millions) 652 professionals +14% $219.7 $191.2 $189.4 $190.0 $192.5 34 offices $22.6 $27.7 $30.5 $27.7 $42.1 16 countries 2014 2015 2016 2017 3Q18 LTM* Revenues Adjusted Segment EBITDA (1) Growth Opportunities – Further develop large, complex client relationships – Enh
Slide 14: Collectively, We are Well-Positioned to Accelerate Growth
Collectively, We are Well-Positioned to Accelerate Growth The strength of our people, their relationships and our franchise is increasingly making FTI a place where the best people want to be Our bedrock core competencies in disputes, investigations and crises are finding even more relevance as we c
Slide 15: im F. Fousdiind
im F. Fousdiind
Slide 16: Financial Supplements
im F. Fousdiind Financial Supplements
Slide 17: FY 2014 – Q3 2018 and FY 2018 Guidance: Revenues
FY 2014 – Q3 2018 and FY 2018 Guidance: Revenues $1,960-$1,990 17
Slide 18: FY 2014 – Q3 2018: Net Income and Adjusted EBITDA
FY 2014 – Q3 2018: Net Income and Adjusted EBITDA Net Income Adjusted EBITDA (1) ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliations of Adjusted EBITDA, which is a non-GAAP financial measure, to the most directly compa
Slide 19: FY 2014 – Q3 2018 and FY 2018 Guidance: Earnings Per Diluted Share
FY 2014 – Q3 2018 and FY 2018 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $3.53-$3.73 Adjusted Earnings Per Diluted Share (1) $3.60-$3.80 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliat
Slide 20: Q3 2018, Q2 2018 and Q3 2017: Select Cash Position and Capital Allocation
Q3 2018, Q2 2018 and Q3 2017: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs Q3 2018 Q2 2018 Q3 2017 Cash and cash equivalents $ 505,867 $ 116,556 $ 157,961 Accounts receivable, net $ 623,397 $ 607,455 $ 547,132 Days sales outstanding ("DSO") 104 101 105 Net ca
Slide 21: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q3 2018 Q2 2018 Q1 2018 Q4 2017 FY 2017 FY 2016 FY 2015 FY 2014 Net Income $ 44,333 $ 43,609 $ 38,945 $ 66,888 $ 107,962 $ 85,520 $ 66,053 $ 58,807 Income tax provision (benefit) 19,964 14,113 15,270 (38,458) (20,857) 42,283 39,333 42,60
Slide 23: Reconciliations of Net Income to Adjusted Net Income and Earnings Per Diluted Share
Reconciliations of Net Income to Adjusted Net Income and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (in thousands, except per share data) Q3 2018 Q2 2018 Q1 2018 Q4 2017 FY 2017 FY 2016 FY 2015 FY 2014 Net income $44,333 $43,609 $38,945 $66,888 $107,962 $85,520 $66,053 $58,807
Slide 24: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Net Income $44,333 $43,609 $38,945 $66,888 Add back: Income tax provision 19,964 14,113 15,270 (38,458) Interest income and other (1,400) (2,474) 1,800 (452) Interest expense 7,246 6,583 6,24
Slide 25: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in thousands) Q3 2018 Q2 2018 Q3 2017 Net cash provided by operating activities $120,857 $34,615 $106,233 Purchases of property and equipment (11,621) (8,540) (6,894) Free Cash Flow1 $109,236 $26,075 $99,339 1See “End Not
Slide 26: Reconciliation of Full Year 2018 Earnings Per Diluted Share Guidance
Reconciliation of Full Year 2018 Earnings Per Diluted Share Guidance to Adjusted Earnings Per Diluted Share Guidance Year Ended December 31, 2018 Low High Guidance on estimated earnings per common share - diluted (“EPS”) (GAAP) 1 $3.53 $3.73 Non-cash interest expense on convertible notes, net of tax
Slide 27: 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 28: Experts with Impact
| EXPERTS WITH IMPACT”
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