Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Investor Day (November 2017)
94 slides from Fti Consulting's investor day presentation, Nov 16, 2017
Slide 1: 2017 Investor Day
2017 Investor Day 10 on the Park at the Time Warner Center Exhibit 99.1
Slide 2: Opening Remarks
Opening Remarks Mollie Hawkes Managing Director of Investor Relations
Slide 3: 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 4: Accelerating Growth at FTI
Accelerating Growth at FTI Steven H. Gunby President & Chief Executive Officer
Slide 5: Accelerating Growth at FTI: Welcome
Accelerating Growth at FTI WELCOME
Slide 6: Today's Agenda
Today’s Agenda Time Presentation Presenter 10:05 – 10:45 a.m. Accelerating Growth at FTI Steven H. Gunby, President & Chief Executive Officer 10:45 – 11:00 a.m. Accelerating Growth: Corporate Finance & Restructuring Michael C. Eisenband & Carlyn R. Taylor, Global Segment Co-Leaders, Corporate Financ
Slide 7: We Have Great Positions and Great People
As You Know, We Have Great Positions and Great People and We Serve the World’s Leading Corporations and Law Firms
Slide 8: Two-Year Average EPS Performance
Two-Year Average EPS Performance Two-year average GAAP EPS and Adjusted EPS are calculated by adding the GAAP EPS and Adjusted EPS for each annual period and dividing by two. See Appendix for definition of Adjusted EPS and reconciliations to its most comparable GAAP measure. $2.22 $2.07 $1.86 $1.71
Slide 9: Two-Year Average Adjusted EPS
Two-Year Average Adjusted EPS Two-year average GAAP EPS and Adjusted EPS are calculated by adding the GAAP EPS and Adjusted EPS for each annual period and dividing by two. See Appendix for definition of Adjusted EPS and reconciliations to its most comparable GAAP measure.
Slide 10: A Simple Economic Formula for Professional Services
A Simple Economic Formula for Professional Services Organic Adjusted EBITDA growth or decline Disciplined use of cash Results
Slide 11: How We Drive Double-Digit Adjusted EPS Growth
How We Drive Double-Digit Adjusted EPS Growth Mid-single digit Adjusted EBITDA growth by organic means Disciplined use of cash Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals
Slide 12: After Years of Decline, We Have Begun to Turn the Ship
After Years of Decline, We Have Begun to Turn the Ship We have turned the ship, but not yet moving in the right direction as forcefully as we can and need to. Two-year average GAAP EPS and Adjusted EPS are calculated by adding the GAAP EPS and Adjusted EPS for each annual period and dividing by two.
Slide 13: How We Have Done
How We Have Done Adjusted EBITDA growth from organic means Disciplined use of cash Sustained double-digit Adjusted EPS growth over time
Slide 14: Messages from the Segments (I)
Messages from the Segments (I) Great U.S. restructuring business particularly on creditor side But more company-side than most people knew Some commitment to: Performance Improvement Overseas Transaction Services Good people Good technology Historically, pursued a very integrated approach to our off
Slide 15: Messages from the Segments (II)
ECON SC Messages from the Segments (II) One of first business to embrace the discipline of ongoing fundamental rethinks of the strategy Took a business that had been declining substantially for five years and turn it into a growth engine First half of 2017 was weak but now back on track World’s lead
Slide 16: Where Do I See Us on This Journey?
Where Do I See Us on This Journey? Great people that are growing parts and moving the business forcefully ahead, in parts Great People Vibrant enterprise where that is the norm Alignment of management team through changing incentives, disciplines and accountability Siloed segments with independent l
Slide 17: Accelerating Growth at FTI: Corporate Finance & Restructuring
Accelerating Growth at FTI: Corporate Finance & Restructuring Michael Eisenband & Carlyn Taylor Global Segment Co-Leaders
Slide 18: Leading Provider of Restructuring Services and Business Transformation
Leading Provider of Restructuring Services and Experts in Business Transformation and Transactions with Industry Specialists’ Insights 44 offices 930+ professionals 15 countries #1 Restructuring Adviser The Deal (2007 – 2017) Global Turnaround Consulting Firm of the Year Turnaround Atlas Awards (201
Slide 19: Our Fastest-Growing Practices Involve Transactions
Our fastest-growing practices involve transactions Our M&A-focused teams have a higher win rate when combined with industry specialization and/or stressed company work Firmwide strength in addressing various phases of the M&A lifecycle, creating cross-segment synergies and maximizing client response
Slide 20: CF&R Gets Affected by Substantial Market Volatility
Corporate Finance & Restructuring, Perhaps More Than Any Other Segment, Gets Affected by Substantial Market Volatility, Especially in the Restructuring Space Overall, we have been succeeding despite historically low levels of bankruptcy caused by low interest rates and credit market support of weak
Slide 21: Strong Results Overall, Despite Some Softness in 1H17
Strong Results Overall, Despite Some Softness in 1H17 Due to Market Volatility Revenue- Generating Headcount 706 838 895 934 Adjusted Segment EBITDA Revenues $ (in millions)
Slide 22: Driving Initiatives Even Without Tailwinds of a Strong Bankruptcy Market
And We Are Driving Initiatives to Add to Our Success Even Without the Tailwinds of a Strong Bankruptcy Market Strengthening company-side market position, resulting in significant out-of-court wins Completed CDG acquisition in July 2017, adding 19 team members Established a Canadian investment bank f
Slide 23: Accelerating Growth at FTI: Economic Consulting
Accelerating Growth at FTI: Economic Consulting Chris Osborne Global Segment Leader
Slide 24: Leading Global Economic Consulting Firm
Leading Global Economic Consulting Firm 37 offices 680+ professionals 15 countries Arbitration Consulting Firm of the Year Who’s Who Legal (2015 – 2017) Quantum of Damages Firm of the Year Who’s Who Legal (2017) Competition Economics Firm of the Year Who’s Who Legal (2015 – 2017) 35 experts named to
Slide 25: Leading Capabilities Translated into Solid Financial Results
Our Leading Capabilities Translated into Solid Financial Results Revenue Generating Headcount 574 599 656 688 Adjusted Segment EBITDA Revenues $ (in millions) $504.2
Slide 26: Sustained Growth in Europe and Asia
We Have Benefited Significantly from Sustained Growth in Europe and Asia We had 1 professional outside of the U.S. in EMEA entering 2009 Today in EMEA and Asia Pacific, we have 275 revenue-generating professionals in 13 locations We have attracted high-profile experts to join our leading team from b
Slide 27: Our Medium-Term Growth Opportunities
Our Medium-Term Growth Opportunities Expand Adjacent Businesses in the U.S. Expand in Australia and Asia Pacific Maintain Leading Compass Lexecon Position in the U.S. Continue to Grow in EMEA We believe that our leading position and these initiatives will supply a solid platform for growth for many
Slide 28: Accelerating Growth at FTI: Forensic & Litigation Consulting
Accelerating Growth at FTI: Forensic & Litigation Consulting Paul Ficca Global Segment Leader
Slide 29: Leading Global Provider of Independent Risk Advisory, Investigations and Dispute Services
Leading Global Provider of Independent Risk Advisory, Investigations and Dispute Services 54 offices 1,080 professionals 18 countries #1 Global Risk & Investigations Services Provider National Law Journal (2017) Vanguard Dispute Advisory Provider ALM Intelligence (2017) #1 Provider for Cybersecurity
Slide 30: Great People and Capabilities, but Inconsistent Growth
We Have Great People and Capabilities, but We Have Not Demonstrated Consistent Growth Across the Entire Segment Revenue Generating Headcount 1,154 1,131 1,110 Adjusted Segment EBITDA Revenues $ (in millions)
Slide 31: Close Examination of Our Businesses to Accelerate Growth
Turned EMEA business, while continuing to invest Invested in core businesses where we are strong Took actions where we were challenged Given Our Recent Financial Performance, We Have Undertaken a Close Examination of Our Businesses to Accelerate Growth Accelerated growth in Asia Pacific Taken action
Slide 32: These Moves Are Strengthening the Business
These Moves Are Strengthening the Business More important, they create the platform on which to accelerate growth. $457.7 $446.9 Continued focus on growing revenues with higher utilization Investments in core areas of strength are accelerating growth Investments in EMEA and Asia Pacific are driving
Slide 33: Our Medium-Term Growth Opportunities
Enhance Core Offerings Extend Global Footprint Our Medium-Term Growth Opportunities Revenue Growth with Higher Utilization Invest Ahead of Emerging Trends Actions we have taken and investments we have made position us for growth.
Slide 34: Accelerating Growth at FTI: Technology
Accelerating Growth at FTI: Technology Sophie Ross Global Segment Leader
Slide 35: Leading Experts and Software, Committed to Client-Centric Services
Leading Experts and Software, Committed to Delivering Client-Centric Services 30 offices 290+ professionals 8 countries Leader in Worldwide E-Discovery Services IDC MarketScape (2017) Named a Best Managed Document Review Services Provider The National Law Journal (2017) 100 Companies That Matter in
Slide 36: We Were Slow to Address Strategic Changes in the Market
We Were Slow to Address Strategic Changes in the Market Adjusted Segment EBITDA Revenues Revenue Generating Headcount 344 349 288 $ (in millions)
Slide 37: New Strategy Maximizes Potential of Each Part of Our Business
Delivered Significant Efficiency Improvements New Strategy Maximizes and Unleashes the Potential of Each Part of Our Business Consulting & Services Strong momentum by leveraging our consultative expertise across clients’ data-related legal, compliance and risk challenges Software Enormous effort und
Slide 38: Transforming the Business with New Strategic Initiatives
We Are Transforming the Business and Believe Our New Set of Strategic Initiatives Will Drive Future Growth Adjusted Segment EBITDA Revenues Actions we have taken and investments we have made have stabilized the business and position us for growth. Cost actions have stabilized EBITDA and improved eff
Slide 39: Our Medium-Term Growth Opportunities
Our Medium-Term Growth Opportunities Expanding Addressable Market Growing Businesses with Targeted Investments Broadened Revenue Mix Improved Cost Structure Focused strategy, committed leadership team and more efficient infrastructure.
Slide 40: Accelerating Growth at FTI: Strategic Communications
Mark McCall Global Segment Leader Accelerating Growth at FTI: Strategic Communications
Slide 41: Integrated Communications Experts Located Where Our Clients Need Us
Integrated Communications Experts Located Where Our Clients Need Us Financial Communications Public Affairs Corporate Reputation 36 offices 600+ professionals 16 countries
Slide 42: We Are Being Recognized in the Industry
2016 Best Social Media Campaign 2014-2017 M&A PR Firm of the Year We Are Being Recognized in the Industry 2017 PR Consultancy of the Year 2017 Best Financial Communications Campaign 2017 Executive Positioning Campaign of the Year 2016 Best IPO Communications 2016 Crisis Management Services Firm 2017
Slide 43: A Snapshot of Our Business
A Snapshot of Our Business: A More Powerful Platform to Grow From Average Retained Client Tenure Top 10 Client Revenues Our Geographic Makeup AMER EMEA APAC 45% 2016 Revenues 9% 46% 15% 2014 22% 2015 25% 2016 $ $ $ 5 years 2016 4.5 years 2015 4 years 2014 Top 10 Client Reach 8/10 are cross-border, c
Slide 44: We Have Successfully Broadened Our Offering
We Have Successfully Broadened Our Offering 34% 44% 22% 27% 40% 33% Financial Communications Corporate Reputation Public Affairs Core Practice Revenues 3
Slide 45: We Have a Team of Experts
Public Service Journalism Business Editor, The Sunday Times Two-time Pulitzer Prize-Winning Reporter, The New York Times Senior Reporter, The Australian We Have a Team of Experts Business & Finance Vice President, Corporate Communications, Morgan Stanley Chief Financial Officer, ASG Group EMEA Lead,
Slide 46: Our Journey
Our Journey Revenue Generating Headcount 566 599 647 626 Adjusted Segment EBITDA Revenues Last four quarters ended 9/30/2017 $ (in millions) $ (in millions)
Slide 47: Our Medium-Term Growth Opportunities
Our Medium-Term Growth Opportunities DEVELOP Large, Complex Client Relationships ENHANCE Market Share in Highly Regulated Industries TEAM For Integrated Client Solutions
Slide 48: Lunch Break
im & Fowstarind Lunch Break
Slide 49: Making the Company More than the Sum of Its Parts: Panel
Making the Company More than the Sum of Its Parts: Panel Steven H. Gunby (Moderator); Jeffrey S. Amling; Charles D. Overstreet; John Klick; Holly Paul; Paul Linton
Slide 50: Today's Agenda
Today’s Agenda Time Presentation Presenter 10:05 – 10:45 a.m. Accelerating Growth at FTI Steven H. Gunby, President & Chief Executive Officer 10:45 – 11:00 a.m. Accelerating Growth: Corporate Finance & Restructuring Michael C. Eisenband & Carlyn R. Taylor, Global Segment Co-Leaders, Corporate Financ
Slide 51: Making the Company More than the Sum of Its Parts
Making the Company More than the Sum of Its Parts Corporate Finance & Restructuring Economic Consulting Forensic & Litigation Consulting Strategic Communications Technology FTI Consulting is organized into five segments, each of which is a global leader in its own right for one simple reason: our co
Slide 52: Making the Company More than the Sum of Its Parts: Panel
Making the Company More than the Sum of Its Parts: Panel Jeffrey S. Amling Chief Marketing Officer & Head of Business Development Charles D. Overstreet Global Practice Leader Health Solutions Paul Linton Chief Strategy & Transformation Officer Holly Paul Chief Human Resources Officer John Klick Seni
Slide 53: Panel: M&A Disciplines
Making the Company More than the Sum of its Parts: Panel M&A Disciplines
Slide 54: More Disciplined M&A Process: Bad vs. Good Acquisition
More Disciplined M&A Process: What Constitutes a Bad/Good Acquisition? Valuation/Deal Structure Integration Sponsorship Growth Longevity Financials Situation Relationship Do not know the company well Auction scenarios Financials dampen our long-term profitability Paying team to retire Paying potenti
Slide 55: Panel: Cross-Collaboration
Making the Company More than the Sum of its Parts: Panel Cross-Collaboration
Slide 56: Health Solutions' Competitive Advantage: Holistic Client Solutions
Health Solutions’ Competitive Advantage: Holistic Client Solutions for a Complex Environment Corporate Finance & Restructuring Strategic Communications Economic Consulting Forensic & Litigation Consulting & Technology Complex Operating Environment Heightened Pace of Consolidation Changing Regulatory
Slide 57: Panel: Key Client Relationships & Key Account Management
Making the Company More than the Sum of its Parts: Panel Key Client Relationships & Key Account Management
Slide 58: Top Corporate Clients by Revenues
Top 10 Corporate Clients by Revenues as of Third Quarter 2017 Top 10 Corporate Clients Corporate Finance & Restructuring Forensic & Litigation Consulting Economic Consulting Technology Strategic Communications Corporate Client #1 X X X X Corporate Client #2 X X Corporate Client #3 X Corporate Client
Slide 59: Panel: People Strategy & Culture
Making the Company More than the Sum of its Parts: Panel People Strategy & Culture
Slide 60: Approaching Headcount Growth in a Systematic Way
Approaching Headcount Growth in a Systematic, Thoughtful Way to Build on Positions Where We Have a Right to Win and to Retool Positions Where We Don’t Coupled with Businesses People Betting on key positions with regular strategic re-looks Willing to invest in the right people in the right places
Slide 61: Recognition of Our Rising Leaders
Rising Star of the Profession in Leadership category (Strategic Communications) Future Leader on Women Leaders in Consulting list (Forensic & Litigation Consulting) 3 Emerging Leaders in Financing & Turnarounds (Corporate Finance & Restructuring, Strategic Communications) 11 Future Leaders on Econom
Slide 62: Panel: Rigor & Discipline Around Cost Strategies
Making the Company More than the Sum of its Parts: Panel Rigor & Discipline Around Cost Strategies
Slide 63: Overview of Our Current Real Estate Footprint
Overview of Our Current Real Estate Footprint Note: Bubble sizes represent total cost by office. 105 Offices ~1.3 Million Square Feet ~$80 Million Real Estate Costs ~4.4% of Revenues
Slide 64: Executing Against Established Real Estate Guidelines
Executing Against Established Real Estate Guidelines Cost per head Square feet per head Office size Workspace utilization Real estate planning Planning starts 3 years prior to lease expiration (or when vacancy falls below 85%) Take early action if economically beneficial Established maximum cost per
Slide 65: Washington, D.C. Office Relocation: Before and After
Washington, D.C. (K Street) Office Relocation: Before and After Comparison Annual cost: -39% Square feet: -14% Cost per head: -38% Before After
Slide 66: Bowie and San Francisco Office Relocations
Bowie and San Francisco Office Relocations: Before and After Comparisons Bowie San Francisco Annual cost: -38% Cost per head: Square feet: -24% -42% Annual cost: -24% Cost per head: Square feet: -54% -38% Before After
Slide 67: Making the Company More than the Sum of Its Parts: EMEA
Making the Company More than the Sum of Its Parts: EMEA Kevin Hewitt Chairman of Europe, Middle East & Africa
Slide 68: EMEA: The Journey So Far
2006 Acquisition of Financial Dynamics Establishing core presence in EMEA 2011 Acquisition of LECG Establishing Economic Consulting presence in EMEA 2007 Launch of European Restructuring practice Via team hire from Ernst & Young 2013 2016 EMEA region reaches 850+ billable professionals EMEA delivers
Slide 69: Our Journey
Our Journey Revenues Revenue Generating Headcount 208 418 474 489 576 620 701 738 851 948 995 Last four quarters ended 9/30/2017 $ (in millions)
Slide 70: Established People and Positions with Opportunity in EMEA
Established People and Positions with Opportunity to Exploit Favorable Market, Competitor and People Dynamics 20 offices 995 revenue generating professionals 12 countries EMEA Public Affairs Consultancy of the Year The Holmes Report (2015 and 2017) EMEA Merger Control and Behavioral Matter of the Ye
Slide 71: We Have Just Begun to Fulfill Our Potential
As Much Success as We Have Had, We Have Just Begun to Fulfill Our Potential Our Medium-Term Growth Opportunities This is our time. Facilitate cross-segment collaboration Continue to win the war for talent Replicate UK growth across continental Europe Integrate new technologies into existing offering
Slide 72: Accelerating Growth: Financial Review
Accelerating Growth: Financial Review Ajay Sabherwal Chief Financial Officer
Slide 73: How We Drive Double-Digit Adjusted EPS Growth
How We Drive Double-Digit Adjusted EPS Growth Mid-single digit Adjusted EBITDA growth by organic means Disciplined use of cash Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals
Slide 74: Financial Progress (I)
Financial Progress (I) Focus on Organic Growth and Growing EPS $ (in millions) Growing revenues organically Increasing Adjusted EPS See Appendix for definitions of non-GAAP measures and reconciliations to their most comparable GAAP measures. GAAP EPS Adjusted EPS
Slide 75: Financial Progress (II)
Financial Progress (II) Growing Revenue-Generating Professionals Growing headcount in the right places Disciplined actions to manage SG&A 3,344 3,516 3,596 3,619 Headcount Last four quarters ended 9/30/17 Headcount as of September 30, 2017. Non-Billable Headcount Billable Headcount SG&A as a % of Re
Slide 76: Financial Progress (III)
Financial Progress (III) Employing Strong Free Cash Flows to Enhance Stockholder Returns $ (in millions) Strong free cash flow Significant reduction in debt Share count significantly reduced Shares outstanding as of period end (in millions) See Appendix for definitions of non-GAAP measures and recon
Slide 77: Key Principles to Grow Organically
Key Principles to Grow Organically Growth Opportunities Increase market share Move into adjacencies by investing where we have the right to win Deeper penetration in key geographies Objectives Drive organic revenue and Adjusted EBITDA growth Focus on utilization Reduce SG&A as a percent of revenues
Slide 78: Business Segments Well Positioned to Accelerate Growth (I)
Business Segments Are Well Positioned to Accelerate Growth (I) Enhance Business Transformation and transaction capabilities Grow restructuring globally Deeper penetration of key industries Corporate Finance & Restructuring Economic Consulting Compass Lexecon’s leading position in U.S. Grow overseas
Slide 79: Business Segments Well Positioned to Accelerate Growth (II)
Business Segments Are Well Positioned to Accelerate Growth (II) New distribution channels for consulting services and software Invest in new and adjacent services Technology Data & Analytics, Construction Solutions and Cybersecurity Grow overseas businesses Improve utilization in Disputes, Investiga
Slide 80: Business Segments Well Positioned to Accelerate Growth (III)
Business Segments Are Well Positioned to Accelerate Growth (III) Further develop large, complex client relationships Enhance market share in key industries Leverage FTI Consulting’s services and platform to enhance client results Strategic Communications Key Growth Opportunities
Slide 81: FTI Consulting Is Well Positioned to Accelerate Growth
Collectively, FTI Consulting Is Well Positioned to Accelerate Growth Assessed infrastructure and costs Invested where we have A right to win Invested where we have a right to win Strategic refreshes repositioned businesses for future growth Assessed infrastructure cost Disciplined approach to capita
Slide 82: Investment Thesis
Investment Thesis Mid-single digit Adjusted EBITDA growth by organic means Disciplined use of cash Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals The best is yet to come.
Slide 83: Questions & Answers
im & Fowstarind Questions & Answers
Slide 84: Closing Remarks
Closing Remarks Steven H. Gunby President & Chief Executive Officer
Slide 85: Today's Agenda
Today’s Agenda Time Presentation Presenter 10:05 – 10:45 a.m. Accelerating Growth at FTI Steven H. Gunby, President & Chief Executive Officer 10:45 – 11:00 a.m. Accelerating Growth: Corporate Finance & Restructuring Michael C. Eisenband & Carlyn R. Taylor, Global Segment Co-Leaders, Corporate Financ
Slide 86: Some Points I Hope You Took Away
Some Points I Hope You Took Away Naming issues/solving issues Bold bets High ambitions Driving the business
Slide 87: Closing Thoughts
Closing Thoughts Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals The best is yet to come. Mid-single digit Adjusted EBITDA growth by organic means Disciplined use of cash
Slide 88: Experts with Impact
| EXPERTS WITH IMPACT™
Slide 89: Appendix: Financial Reconciliations
Appendix: Financial Reconciliations
Slide 90: FTI Consulting Non-GAAP Financial Measures
FTI Consulting Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated financial information that may not be presented in our financial statements or prepared in accordance with GAAP. Certain of these measures are considered “non-GAAP financial measur
Slide 91: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (All numbers in thousands) FY 2016 FY 2015 FY 2014 Net Income $ 85,520 $ 66,053 $ 58,807 Add back: Income tax provision 42,283 39,333 42,604 Interest income and other (10,466) (3,232) (4,670) Interest expense 24,819 42,768 50,685 Depreciation and amort
Slide 92: Reconciliations of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliations of Net Income (Loss) to Adjusted Net Income and Earnings (Loss) Per Diluted Share to Adjusted Earnings Per Diluted Share (All numbers in thousands ) FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY 2009 Net income $85,520 $66,053 $58,807 $(10,594) $(36,986) $103,903 $65,984
Slide 93: Reconciliations of Operating Cash Flow to Free Cash Flow
Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow (All numbers in thousands ) Last Four Quarters 9/30/2017 2016 2015 2014 Net cash provided by operating activities $ 145,946 $ 233,488 $ 139,920 $ 135,401 Purchases of property and equipment (26,101) (28,935) (31,399) (39,
Slide 94: Reconciliation of Estimated EPS to Estimated Adjusted EPS
Reconciliation of Estimated Earnings Per Common Share – Diluted to Estimated Adjusted Earnings Per Common Share 1The forward-looking guidance on estimated 2017 earnings per diluted share (“EPS”) and adjusted earnings per common share - diluted ("Adjusted EPS") do not reflect other gains and losses (