Fti Consulting, Inc. · NYSE:FCN

Fti Consulting — Q2 2022 Earnings Presentation

31 slides from Fti Consulting's earnings presentation, August 2022

  1. Slide 1: August 2022

    August 2022 1

  2. 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

  3. 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 $5.7B 1982 7,000+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 700+ 85 30 9

  4. Slide 4: Our Global Reach

    Our Global Reach With offices in 85 cities and 30 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. The Americas Europe, the Middle East, Africa Asia Australia Arg

  5. 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

  6. 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 ▪ Transactions ▪ Health Solutions ▪ Turnaround, Restructuring & ▪ Risk and Investigation

  7. Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA

    Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA 2Q 2022 Segment Revenues 2Q 2022 Total Adjusted Segment EBITDA (1) 9% 10% 10% 7% 37% 49% 22% 19% 22% 15% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications (

  8. Slide 8: Corporate Finance & Restructuring

    Corporate Finance & Restructuring Services ▪ Business Transformation – Finance & Office of the CFO Solutions 17 – People & Transformations countries – Revenue & Operations – Strategy – Technology Transformation ▪ Transactions – Diligence – Investment Banking & Transaction Opinions – Merger Integrati

  9. Slide 9: Corporate Finance & Restructuring (continued)

    Corporate Finance & Restructuring (continued) Segment Offering Q2 2022 Key Financial Commentary ▪ Revenues increased $46.1 million, or 20.0%, to $277.1 million for the three months ended The Corporate Finance & Restructuring segment focuses on the strategic, June 30, 2022, which included a 2.7% esti

  10. Slide 10: Forensic and Litigation Consulting

    Forensic and Litigation Consulting Services ▪ Construction & Environmental Solutions – Asset Lifecycle Management – Capital Program Risk Management 1,509 – Cost Analytics & Auditing Services ▪ Data & Analytics professionals – Anti-corruption and Anti-money Laundering – Dispute Resolutions, Investiga

  11. Slide 11: Forensic and Litigation Consulting (continued)

    Forensic and Litigation Consulting (continued) Segment Offering Q2 2022 Key Financial Commentary The Forensic and Litigation Consulting (“FLC”) ▪ Revenues increased $13.5 million, or 9.0%, to $164.2 million for the three months ended segment provides law firms, companies, June 30, 2022, which includ

  12. 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

  13. Slide 13: Economic Consulting (continued)

    Economic Consulting (continued) Segment Offering Q2 2022 Key Financial Commentary The Economic Consulting segment, including ▪ Revenues decreased $19.3 million, or 10.5%, to $164.0 million for the three months ended subsidiary Compass Lexecon LLC ("Compass June 30, 2022, which included a 3.9% estima

  14. 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

  15. Slide 15: Technology (continued)

    Technology (continued) Segment Offering Q2 2022 Key Financial Commentary Our Technology segment provides ▪ Revenues decreased $0.9 million, or 1.1%, to $77.8 million for the three months ended June companies, law firms, private equity firms 30, 2022, which included a 2.5% estimated negative impact f

  16. Slide 16: Strategic Communications Services

    Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Digital, Analytics & Insights 877 – ESG & Sustainability professionals – Litigation Communications ▪ Financial Communications – Corporate Governance & Shareholder Activism – M&A Communications – Restructuring & F

  17. Slide 17: Strategic Communications (continued)

    Strategic Communications (continued) Segment Offering Q2 2022 Key Financial Commentary The Strategic Communications segment ▪ Revenues increased $4.0 million, or 6.0%, to $71.9 million for the three months ended June develops and executes communications 30, 2022, which included a 5.8% estimated nega

  18. Slide 18: Second Quarter 2022 Select Awards & Accolades

    Second Quarter 2022 Select Awards & Accolades 18 18

  19. 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

  20. Slide 20: Financial Overview

    Financial Overview im F. F usulrind

  21. Slide 21: FY 2019 – Q2 2022 and FY 2022 Guidance: Revenues

    FY 2019 – Q2 2022 and FY 2022 Guidance: Revenues $2,920 - $3,045 $2,776 $2,461 $2,353 $ 724 $ 755 21

  22. Slide 22: FY 2019 – Q2 2022: Net Income and Adjusted EBITDA

    FY 2019 – Q2 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

  23. Slide 23: FY 2019 – Q2 2022 and FY 2022 Guidance: Earnings per Diluted Share

    FY 2019 – Q2 2022 and FY 2022 Guidance: Earnings per Diluted Share and Adjusted Earnings per Diluted Share $6.40 - $7.20 (1) $6.40 - $7.20 $1.43 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earning

  24. Slide 24: Select Cash Position and Capital Allocation

    Q2 2022, Q1 2022 and Q2 2021: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO Q2 2022 Q1 2022 Q2 2021 Cash and cash equivalents $ 255,730 $ 271,143 $ 256,875 Accounts receivable, net $ 905,548 $ 823,932 $ 846,121 Days sales outstanding (“DSO”) (1) 102 96 102 Net

  25. Slide 25: Financial Tables: Reconciliations of Non-GAAP Financial Measures

    Financial Tables Reconciliations of Non-GAAP Financial Measures

  26. Slide 26: Reconciliation of Net Income to Adjusted EBITDA

    Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q2 2022 Q1 2022 FY 2021 FY 2020 FY 2019 Net income $ 51,428 $ 59,321 $ 234,966 $ 210,682 $ 216,726 Income tax provision 13,353 16,967 62,981 51,764 71,724 (2,994) (6,193) (2,061) Interest income and other 347 412 Interest expense 2,448 2

  27. 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) Q2 2022 Q1 2022 FY 2021 FY 2020 FY 2019 Net income $ 51,428 $ 59,321 $ 234,966 $ 210,682 $ 216,726 Add back: Special charges — — — 7,10

  28. Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA

    Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q2 2022 Net income $ 51,428 Add back: Income tax provision 13,353 (2,994) Interest income and other Interest expense 2,448 Unallocated corporate expenses 37,716 Segment depreciation expense 8,452 Amortization of intangible

  29. Slide 29: Reconciliation of Net Cash from Operating Activities to Free Cash Flow

    Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow (in thousands) Q2 2022 Q1 2022 Q2 2021 Net cash provided by (used in) operating activities $ 35,047 $ (203,778) $ 125,558 (13,028) (12,607) (19,724) Purchases of property and equipment Free Cash Flow (1) $ 22,019

  30. 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

  31. Slide 31: Experts with Impact

    im F, T YL CONSULTING Experts with Impact”

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