Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Non-Deal Roadshow (March 2021)
31 slides from Fti Consulting's roadshow presentation, March 2021
Slide 1: Investor Presentation, FTI Consulting, Inc. March 2021
—— Investor Presentation 1 FTI Consulting, Inc. 2 iitm: a March 2021
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 $4.0B 1982 6,300+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 610+ 85 28 1
Slide 4: Our Global Reach
Our Global Reach With offices in 85 cities and 28 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, Middle East, Africa Asia Australia Argentin
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 Overview: Five Segments, One Purpose
Business Overview: Five Segments, One Purpose Corporate Finance & Restructuring FTI Consulting is organized into five segments, each of which is a global leader in its own right for one simple reason: Economic Technology our commitment to Consulting having a tangible, positive impact on how our clie
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA Full Year 2020 Segment Revenues Full Year 2020 Total Adjusted Segment EBITDA (1) 10% 9% 9% 10% 37% 51% 22% 24% 20% 8% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Com
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Business Transformation – Executive Compensation 18 – Interim Management countries – Merger Integration & Carve-outs – Office of the CFO Solutions – Performance Improvement ▪ Transactions – Investment Banking & Transaction Opinions – Lender Services – Str
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Full Year 2020 Key Financial Commentary The Corporate Finance & Restructuring ▪ Revenues increased $186.5 million, or 25.8%, from 2019 to 2020. Acquisition-related segment focuses on the strategic, revenues contributed $40.7 million, or
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction & Environmental Solutions – Asset Lifecycle Management – Capital Program Risk Management 1,343 – Cost Analytics & Auditing Services professionals ▪ Data & Analysis – Anti-corruption and Anti-money Laundering – Dispute Resolutions, Investigat
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering Full Year 2020 Key Financial Commentary The Forensic & Litigation Consulting segment ▪ Revenues decreased $77.5 million, or 13.4%, from 2019 to 2020. The decrease was provides law firms, companies, government primarily due to lower dema
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Damages Analysis – M&A-related Antitrust – Non-M&A-related Antitrust 18 countries ▪ Financial Economics – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation ▪ International Arbitration – Business Va
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Full Year 2020 Key Financial Commentary The Economic Consulting segment, including ▪ Revenues increased $6.5 million, or 1.1%, from 2019 to 2020. The increase was primarily subsidiary Compass Lexecon, provides due to higher demand for our mergers and
Slide 14: Technology
Technology Services ▪ Corporate Legal Operations – Advisory on Governance, Policy, Standards and 13 Execution countries – Contract Intelligence – Subscriptions and Managed Services ▪ E-discovery Services and Expertise – Consulting and Data Analytics – Data Collection and Digital Forensics – E-discov
Slide 15: Technology (continued)
Technology (continued) Segment Offering Full Year 2020 Key Financial Commentary Our Technology segment provides ▪ Revenues increased $7.4 million, or 3.4%, from 2019 to 2020. The increase was primarily companies, law firms and government driven by higher demand and realized bill rates for our consul
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Digital, Analytics & Insights 770 – Litigation Communications professionals ▪ Financial Communications – Corporate Governance & Shareholder Activism – M&A Communications – Restructuring & Financial Issues ▪ Publi
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Full Year 2020 Key Financial Commentary The Strategic Communications segment ▪ Revenues decreased $14.4 million, or 5.9%, from 2019 to 2020. The decrease in revenues develops and executes communications was due to an $8.6 million decline in pass-
Slide 18: Full Year 2020: Select Awards & Accolades
Full Year 2020: Select Awards & Accolades 18
Slide 19: Financial Overview
Financial Overview im F. F usulrind
Slide 20: Full Year 2016 – Full Year 2021 Guidance: Revenues
Full Year 2016 – Full Year 2021 Guidance: Revenues $2,575-$2,700 20
Slide 21: Full Year 2016 – Full Year 2020: Net Income and Adjusted EBITDA
Full Year 2016 – Full Year 2020: 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 mos
Slide 22: Full Year 2016 – Full Year 2021 Guidance: Earnings Per Diluted Share and Adjusted EPS
Full Year 2016 – Full Year 2021 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $5.60-$6.30 (1) $5.80-$6.50 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earnings Per Di
Slide 23: Full Year 2020, 2019 and 2018: Select Cash Position and Capital Allocation
Full Year 2020, 2019 and 2018: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO 2020 2019 2018 Cash and cash equivalents $ 294,953 $ 369,373 $ 312,069 Accounts receivable, net $ 711,357 $ 693,372 $ 554,608 Days sales outstanding (“DSO”) (1) 95 97 93 Net cash provi
Slide 24: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures im F. F usulrind
Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 Net income $ 210,682 $ 216,726 $ 150,611 $ 107,962 $ 85,520 Income tax provision (benefit) 51,764 71,724 57,181 (20,857) 42,283 Interest income and other 412 (2,061) (4,977) (3,752) (10,466) Intere
Slide 26: 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 for per share data) FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 Net income $ 210,682 $ 216,726 $ 150,611 $ 107,962 $ 85,520 Add back: Special charges 7,103 — —
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) FY 2020 Net income $ 210,682 Add back: Income tax provision 51,764 Interest income and other 412 Interest expense 19,805 Unallocated corporate expenses (1) 94,463 Segment depreciation expense 29,381 Amortization of intangib
Slide 28: 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) FY 2020 FY 2019 FY 2018 Net cash provided by operating activities $ 327,069 $ 217,886 $ 230,672 Purchases of property and equipment (34,866) (42,072) (32,270) Free Cash Flow (1) $ 292,203 $ 175,814 $ 198,402
Slide 29: Reconciliation of Full Year 2021 EPS Guidance to Adjusted EPS Guidance
Reconciliation of Full Year 2021 EPS Guidance to Adjusted EPS Guidance Year Ended December 31, 2021 Low High Guidance on estimated earnings per common share - diluted (GAAP) (1) $ 5.60 $ 6.30 Non-cash interest expense on convertible notes, net of tax 0.20 0.20 Guidance on estimated adjusted earnings
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