Slide 1: Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation February 2015
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- lo
Slide 3: FTI Consulting: A Leader Among Leaders
FTI Consulting: A Leader Among Leaders FCN Publicly traded $1.7 BLN 1982 Year founded 4,400+ Total employees worldwide Market capitalization(1) 440+ 80 16 2 Nobel Senior Managing Directors Offices in 80 cities around the globe Experts in 16 industry specialties Laureates 10/10 Advisor to world’s top
Slide 4: Overview
Overview FTI Consulting is a leading professional services company with strong people and strong positions – corporations and law firms come to FTI Consulting when there is a critical need New management team (CEO, CFO, CHRO, Chief Strategy, regional leaders) put in place over first nine months of 2
Slide 5: Balanced and Diversified Portfolio
Balanced and Diversified Portfolio Corporate Finance/Restructuring 2014 Segment Revenues Bankruptcy Support Services Performance Improvement Interim Management Services Private Equity Advisory Investment Banking Restructuring & Turnaround Services Litigation Support Transaction Advisory Services Bus
Slide 6: Corporate Finance/Restructuring
Corporate Finance/Restructuring Services Bankruptcy Support Services Transaction Advisory Services Interim Management Valuation & Financial Advisory Services Investment Banking Clients Litigation Support Corporations/C-Suite Business Transformation Services Boards of Directors Performance Improvemen
Slide 7: Corporate Finance/Restructuring (continued)
Corporate Finance/Restructuring (continued) Segment Offering 2014 Form 10–K Management’s Discussion & Analysis The Corporate Finance/Restructuring segment focuses on Revenues increased $8.6 million, or 2.2%, to $391.1 million for strategic, operational, financial and capital needs of the year ended
Slide 8: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services Business Insurance Claims Insurance Compliance, Monitoring & Receivership Intellectual Property Construction & Environmental Solutions Trial Services Dispute Advisory Services Clients Financial Enterprise & Data Analytics (“FEDA”) Corporations Financial Se
Slide 9: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering 2014 Form 10–K Management’s Discussion & Analysis The Forensic and Litigation Consulting segment provides Revenues increased $49.7 million, or 11.5%, to $483.4 million a complete range of multidisciplinary, independent for the twelve mo
Slide 10: Economic Consulting
Economic Consulting Services Antitrust & Competition Economics Regulated Industries Business Valuation Securities Litigation & Risk Management Center for Healthcare Economics & Policy Clients Intellectual Property Corporations International Arbitration Government Entities Labor & Employment Law Firm
Slide 11: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering 2014 Form 10–K Management’s Discussion & Analysis The Economic Consulting segment provides analysis of Revenues increased $3.7 million, or 0.8%, to $451.0 million for complex economic issues. We help our clients with legal, the year ended December 31,
Slide 12: Technology
Technology Software & Services Clients Computer Forensics & Investigations Corporations Discovery Consulting Government Agencies E-discovery Software & Services Law Firms 2010 2011 2012 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Segment Revenue $176,607 $218,738 $195,194 $202,663 $60,063 $60,720 $62,
Slide 13: Technology (continued)
Technology (continued) Segment Offering 2014 Form 10–K Management’s Discussion & Analysis The Technology segment is a leading provider of Revenue increased $38.6 million, or 19.1%, to $241.3 million software, services and consulting for e-discovery and for the year ended December 31, 2014 compared t
Slide 14: Strategic Communications
Strategic Communications Services Corporate Communications Shareholder Activism and Proxy Advisory Creative Engagement & Digital Communications Strategy Consulting & Research Crisis Communications Clients Employee Engagement & Change Communications CEOs Financial Communications CFOs Litigation Commu
Slide 15: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering 2014 Form 10–K Management’s Discussion & Analysis The Strategic Communications segment provides advice Revenues increased $3.1 million, or 1.7%, to $189.4 million for and consulting services relating to financial and the year ended December 31, 2
Slide 16: Financial Overview
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Slide 17: Historical Revenues and Adjusted Earnings Per Share
Historical Revenues and Adjusted Earnings Per Share $2,000 Revenues $1,756 $1,800-$1,900 $1,800 $1,652 $1,567 $1,577 $1,600 $1,400 $1,401 $1,400 ($ Millions) $1,200 $1,000 $800 $600 $400 $200 $0 2009 2010 2011 2012 2013 2014 2015 Guidance Adjusted Earnings Per Share $3.00 $2.50+ $2.50 $2.37 $2.13 $2
Slide 18: Financial Profile
Financial Profile All numbers in $000s except for DSOs Q4 2014 Q4 2013 Q3 2014 FY 2014 FY 2013 Cash and cash equivalents $ 283,680 $ 205,833 $ 178,778 $ 283,680 $ 283,833 Accounts receivable, net $ 485,101 $ 476,445 $ 565,657 $ 485,101 $ 476,445 Days sales outstanding ("DSO")1 97 107 97 97 97 Net ca
Slide 19: Appendix
im F. Fo suirind Appendix
Slide 20: 2014 Awards & Accolades
2014 Awards & Accolades FTI Technology recognized as a Named one the 20 Best Economics Firms in the “Leader” in the 2014 “Gartner Magic World by Global Competition Review for nine Quadrant for E-Discovery Software consecutive years (2006–2014) Report” for the second consecutive year Winner of Global
Slide 21: FTI Consulting Executive Leadership Team
FTI Consulting Executive Leadership Team Steven H. Gunby David M. Johnson Heather Klink President & Chief Chief Financial Acting General Executive Officer Officer Counsel Paul Linton Holly Paul Adam S. Bendell Chief Strategy & Chief Human Chief Innovation Transformation Resources Officer Officer Off
Slide 22: FTI Consulting Business Leadership Team
FTI Consulting Business Leadership Team Robert Duffy Neal Hochberg John Klick Global Segment Leader, Corporate Global Segment Global Segment Finance/ Leader, Forensic & Leader, Economic Litigation Consulting Consulting Restructuring Ken Barker Seth Rierson Ed Reilly Global Practice Global Segment Gl
Slide 23: Financial Tables
im F. Fo suirind Financial Tables
Slide 24: Full-Year 2014 Results: Condensed Consolidated Statements of Comprehensive Income (Loss)
Full-Year 2014 Results: Condensed Consolidated Statements of Comprehensive Income (Loss) All numbers in $000s, except for per share data Year Ended December 31, 2014 2013 Revenues $1,756,212 $1,652,432 Operating expenses Direct cost of revenues 1,144,757 1,042,061 Selling, general & administrative e
Slide 25: Fourth Quarter 2014 Results: Operating Results by Business Segment
Fourth Quarter 2014 Results: Operating Results by Business Segment All numbers in $000s, except for bill rate per hour and headcount data (1) Adjusted Segment Average Billable Three Months Ended December 31, 2014 Revenues Adjusted EBITDA (1) Utilization Revenue-Generating Headcount (at period end) E
Slide 26: 2014: Reconciliation of Non-GAAP Financial Measures
2014: Reconciliation of Non-GAAP Financial Measures 26
Slide 27: 2014: Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA
2014: Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA (in thousands) (unaudited) (1) See “End Notes: FTI Consulting Non GAAP Data Reconciliations” for the definition of Segment Operating Income (Loss) and Adjusted EBITDA. 27
Slide 28: Q1 2014: Reconciliation of Net Income And Operating Income to Adjusted EBITDA
Q1 2014: Reconciliation of Net Income And Operating Income to Adjusted EBITDA All numbers in $000s Corporate Forensic and Economic Strategic Three Months Ended March 31, 2014 Finance/ Litigation Technology Corporate Total Consulting Communications Restructuring Consulting Net income $18,117 Interest
Slide 29: Q2 2014: Reconciliation of Net Income And Operating Income to Adjusted EBITDA
Q2 2014: Reconciliation of Net Income And Operating Income to Adjusted EBITDA All numbers in $000s Corporate Forensic and Economic Strategic Three Months Ended June 30, 2014 Finance/ Litigation Technology Corporate Total Consulting Communications Restructuring Consulting Net Income $17,247 Interest
Slide 30: Q3 2014: Reconciliation of Net Income (Loss) And Operating Income (Loss) to Adjusted EBITDA
Q3 2014: Reconciliation of Net Income (Loss) And Operating Income (Loss) to Adjusted EBITDA All numbers in $000s (1) See “End Notes: FTI Consulting Non GAAP Data Reconciliations” for the definition of Segment Operating Income (Loss) and Adjusted EBITDA. 30
Slide 31: Q4 2014: Reconciliation of Net Income (Loss) And Operating Income to Adjusted EBITDA
Q4 2014: Reconciliation of Net Income (Loss) And Operating Income to Adjusted EBITDA All numbers in $000s (1) See “End Notes: FTI Consulting Non GAAP Data Reconciliations” for the definition of Segment Operating Income (Loss) and Adjusted EBITDA. 31
Slide 32: 2010 – 2014 Reconciliation of Net Income (Loss) to Adjusted EPS and Adjusted EBITDA
2010 – 2014 Reconciliation of Net Income (Loss) to Adjusted EPS and Adjusted EBITDA
Slide 33: 2010 – 2014 Reconciliation of Earnings (Loss) Per Share to Adjusted Earnings Per Share
2010 – 2014 Reconciliation of Earnings (Loss) Per Share to Adjusted Earnings Per Share All numbers in $000s, except for per share data 2014 2013 2012 2011 2010 Net income (loss) $58,807 ($10,594) ($36,986) $103,903 $65,984 Add back: Special charges, net of tax 9,637 23,267 19,115 9,285 32,733 Goodwi
Slide 34: Reconciliation of 2014 Net Income And Operating Income to Adjusted EBITDA
Reconciliation of 2014 Net Income And Operating Income to Adjusted EBITDA All numbers in $000s Corporate Forensic and Economic Strategic Year Ended December 31, 2014 Finance/ Litigation Technology Corporate Total Consulting Communications Restructuring Consulting Net income $58,807 Interest income a
Slide 35: Reconciliation of 2013 Net Loss And Operating Income (Loss) to Adjusted EBITDA
Reconciliation of 2013 Net Loss And Operating Income (Loss) to Adjusted EBITDA Corporate Forensic and Economic Strategic Year Ended December 31, 2013 Finance/ Litigation Technology Corporate Total Consulting Communications Restructuring Consulting Net loss ($10,594) Interest income and other ($1,748
Slide 36: Reconciliation of 2012 Net Loss And Operating Income (Loss) to Adjusted EBITDA
Reconciliation of 2012 Net Loss And Operating Income (Loss) to Adjusted EBITDA All numbers in $000s Corporate Forensic and Economic Strategic Year Ended December 31, 2012 Finance/ Litigation Technology Corporate Total Consulting Communications Restructuring Consulting Net loss ($36,986) Interest inc
Slide 37: Reconciliation of 2011 Net Income And Operating Income to Adjusted EBITDA
Reconciliation of 2011 Net Income And Operating Income to Adjusted EBITDA All numbers in $000s Forensic and Corporate Finance/ Economic Strategic Year Ended December 31, 2011 Litigation Technology Corporate Total Restructuring Consulting Communications Consulting Net income $103,903 Interest income
Slide 38: Reconciliation of 2010 Net Income And Operating Income to Adjusted EBITDA
Reconciliation of 2010 Net Income And Operating Income to Adjusted EBITDA All numbers in $000s Corporate Forensic and Economic Strategic Year Ended December 31, 2010 Finance/ Litigation Technology Corporate Total Consulting Communications Restructuring Consulting Net income $65,984 Interest income a
Slide 39: End Notes: FTI Consulting Non-GAAP Data Reconciliations
End Notes: FTI Consulting Non-GAAP Data Reconciliations Beginning with the quarter ended March 31, 2014, the definitions of each of these non-GAAP measures have been updated to exclude the impact of changes in the fair value of acquisition-related contingent consideration liabilities. Prior period a
Slide 40: Critical Thinking at the Critical Time
Critical Thinking at the Critical Time ™