Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Q3 2022 Earnings Presentation
31 slides from Fti Consulting's earnings presentation, October 2022
Slide 1: Investor Presentation
Investor Presentation FTI Consulting, Inc. October 2022
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 FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes FCN $4.9B 1982 7,500+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 650+ 85 9 Se
Slide 4: Our Global Reach
Our Global Reach With offices in 85 cities and 31 countries, FTI Consulting has a presence in every major financial center and every corner of the globe, and we successfully serve our clients wherever challenges and opportunities arise. North America Latin America Europe, Middle East, Africa Asia Au
Slide 5: 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 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose Forensic and Litigation Consulting ▪ Construction & Environmental Corporate Finance & Solutions Restructuring ▪ Data & Analytics ▪ Business Transformation & ▪ Disputes Strategy ▪ Health Solutions ▪ Transactions ▪ Risk and Investigations ▪ Turnaround, Res
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA 3Q 2022 Segment Revenues 3Q 2022 Total Adjusted Segment EBITDA (1) 9% 10% 11% 10% 34% 40% 25% 26% 21% 14% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Business Transformation & Strategy – Finance & Office of the CFO Solutions 17 – People & Transformations countries – Revenue & Operations – Strategy – Technology Transformation ▪ Transactions – Diligence – Investment Banking & Transaction Opinions – Merge
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q3 2022 Key Financial Commentary The Corporate Finance & Restructuring ▪ Revenues increased $15.0 million, or 6.0%, to $265.4 million for the three segment focuses on the strategic, months ended September 30, 2022, which included a 3.6%
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction & Environmental Solutions – Asset Lifecycle Management – Capital Program Risk Management 1,614 – Cost Analytics & Auditing Services ▪ Data & Analytics professionals – Anti-corruption and Anti-money Laundering – Dispute Resolutions, Investiga
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering Q3 2022 Key Financial Commentary The Forensic and Litigation Consulting ▪ Revenues increased $14.7 million, or 10.1%, to $159.9 million for the three segment provides law firms, companies, government entities, private equity firms and m
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Damages Analysis – M&A-related Antitrust – Non-M&A-related Antitrust 19 countries ▪ Financial Economics – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation 48 ▪ International Arbitration – Business
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q3 2022 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass Lexecon LLC ("Compass ▪ Revenues increased $20.6 million, or 12.0%, to $193.2 million for the three Lexecon"), provides law firms, companies, months ended S
Slide 14: Technology
Technology Services ▪ Corporate Legal Operations – Advisory on Governance, Policy, Standards and Execution 15 – Advisory on Operational Efficiencies countries – Contract Intelligence – Subscriptions and Managed Services ▪ E-discovery Services and Expertise – Analytics Research – Blockchain Advisory
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q3 2022 Key Financial Commentary Our Technology segment provides ▪ Revenues increased $20.3 million, or 31.3%, to $84.9 million for the three companies, law firms, private equity firms and government entities with a months ended September 30, 2022, which inclu
Slide 16: Strategic Communications Services
Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Digital, Analytics & Insights 951 – ESG & Sustainability professionals – Litigation Communications ▪ Financial Communications – Corporate Governance & Shareholder Activism – M&A Communications – Restructuring & F
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q3 2022 Key Financial Commentary The Strategic Communications segment ▪ Revenues increased $3.0 million, or 4.3%, to $72.4 million for the three develops and executes communications strategies to help management teams, months ended September 30,
Slide 18: Select Awards & Accolades
Third Quarter 2022 Select Awards & Accolades 18
Slide 19: Environmental, Social & Governance (ESG): Our Commitment & Progress
Environmental, Social & Governance (“ESG”): Our Commitment & Progress FTI Consulting’s approach to ESG underscores our commitment to being Experts With Impact™ who make a positive difference for our clients and communities. Environmental Social Governance We strive to do our part in addressing clima
Slide 20: Financial Overview
Financial Overview im F. F usulrind
Slide 21: FY 2019 – Q3 2022 and FY 2022 Guidance: Revenues
FY 2019 – Q3 2022 and FY 2022 Guidance: Revenues $2,965 - $3,025 $2,776 $2,461 $2,353 $724 $755 21
Slide 22: FY 2019 – Q3 2022: Net Income and Adjusted EBITDA
FY 2019 – Q3 2022: Net Income and Adjusted EBITDA Net income Adjusted EBITDA (1) (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure, to the most directly com
Slide 23: Earnings per Diluted Share and Adjusted Earnings per Diluted Share
FY 2019 – Q3 2022 and FY 2022 Guidance: Earnings per Diluted Share and Adjusted Earnings per Diluted Share $6.40 - $6.80 (1) $6.40 - $6.80 $2.15 $1.43 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted E
Slide 24: Select Cash Position and Capital Allocation
Q3 2022, Q2 2022 and Q3 2021: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO Q3 2022 Q2 2022 Q3 2021 Cash and cash equivalents $ 327,047 $ 255,730 $ 342,527 Accounts receivable, net $ 947,993 $ 905,548 $ 809,878 Days sales outstanding (“DSO”) (1) 106 102 100 Net
Slide 25: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 26: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q3 2022 Q2 2022 Q1 2022 FY 2021 FY 2020 FY 2019 Net income $ 77,267 $ 51,428 $ 59,321 $ 234,966 $ 210,682 $ 216,726 Income tax provision 15,836 13,353 16,967 62,981 51,764 71,724 Interest income and other (7,771) (2,994) 347 (6,193) 412
Slide 27: Reconciliations of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliations of Net Income to Adjusted Net Income and Earnings per Diluted Share to Adjusted Earnings per Diluted Share (in thousands, except for per share data) Q3 2022 Q2 2022 Q1 2022 FY 2021 FY 2020 FY 2019 Net income $ 77,267 $ 51,428 $ 59,321 $ 234,966 $ 210,682 $ 216,726 Add back: Special c
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q3 2022 Net income $ 77,267 Add back: Income tax provision 15,836 Interest income and other (7,771) Interest expense 2,378 Unallocated corporate expenses 30,470 Segment depreciation expense 8,273 Amortization of intangible
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 (in thousands) Q3 2022 Q2 2022 Q3 2021 Net cash provided by operating activities $ 128,292 $ 35,047 $ 196,946 Purchases of property and equipment (13,316) (13,028) (24,745) Free Cash Flow (1) $ 114,976 $ 22,019 $ 172,201 (
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 in the Un
Slide 31: Experts with Impact
im F, T YL CONSULTING Experts with Impact” 31