Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Investor Day (2017)
94 slides from Fti Consulting's investor day presentation, 2017
Slide 1: 2017 Investor Day
2017 Investor Day 10 on the Park at the Time Warner Center
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: Welcome
Accelerating Growth at FTI WELCOME 5
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 Michael C. Eisenband & Carlyn R. Taylor, Global Segment Co-Leaders, Corporate Finance 10:45 – 11:00 a.m. Accelerating Growth: Corporate Finance & Restructurin
Slide 7: Great Positions and Great People Serving Leading Corporations and Law Firms
As You Know, We Have Great Positions and Great People and We Serve the World’s Leading Corporations and Law Firms 7
Slide 8: Two-Year Average EPS Performance
Two-Year Average EPS Performance GAAP EPS Adj. EPS $3.00 $2.38 $2.50 $2.25 $2.27 $2.13 $2.04 $2.22 $1.87 $2.07 $2.00 $1.74 $1.86 $2.01 $1.71 $1.89 $1.82 $1.50 $1.51 $1.00 $0.50 $0.74 $0.59 $0.00 -$0.50 -$0.60 -$1.00 '09 - '10 '10 -'11 11 - '12 '12 - '13 '13 - '14 '14 - '15 '15 - '16 '16 - '17 Guidan
Slide 9: Two-Year Average Adjusted EPS
Two-Year Average Adjusted EPS 2 Year Average Adjusted EPS $2.50 $2.38 $2.40 $2.27 $2.30 $2.25 $2.20 $2.13 $2.10 $2.00 $1.90 $1.87 $1.80 $1.74 $1.70 '09 - '10 '10 -'11 11 - '12 '12 - '13 '13 - '14 '14 - '15 Two-year average GAAP EPS and Adjusted EPS are calculated by adding the GAAP EPS and Adjusted
Slide 10: A Simple Economic Formula for Professional Services
A Simple Economic Formula for Professional Services Disciplined Organic Adjusted EBITDA growth or use of cash decline Results 10
Slide 11: How We Drive Double-Digit Adjusted EPS Growth
How We Drive Double-Digit Adjusted EPS Growth Mid-single digit Disciplined Adjusted EBITDA use of cash growth by organic means Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals 11
Slide 12: After Years of Decline, We Have Begun to Turn the Ship
After Years of Decline, We Have Begun to Turn the Ship 2 Year Average Adjusted EPS 2 Year Average Adjusted EPS $2.50 $2.50 $2.38 $2.40 $2.40 $2.27 $2.30 $2.25 $2.30 $2.20 $2.20 $2.22 $2.13 $2.10 $2.10 $2.04 $2.07 $2.00 $2.00 $1.90 $1.87 $1.90 $1.74 $1.80 $1.74 $1.80 $1.70 $1.70 '09 - '10 '10 -'11 11
Slide 13: How We Have Done
How We Have Done Disciplined Adjusted EBITDA growth from organic use of cash means Sustained double-digit Adjusted EPS growth over time 13
Slide 14: Messages from the Segments (I)
Messages from the Segments (I) Great U.S. restructuring business particularly on Continue to gain share in U.S. restructuring practice creditor side Growing share outside the U.S., particularly in EMEA But more company-side than most people knew Expanding our suite of services to stressed companies
Slide 15: Messages from the Segments (II)
Messages from the Segments (II) One of first business to embrace the discipline of Opportunity to grow 3 pillars of the business ongoing fundamental rethinks of the strategy ▪ Public Affairs Took a business that had been declining substantially ▪ Corporate Communications for five years and turn it i
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 Vibrant enterprise where that is Great People moving the business forcefully ahead, in the norm parts Use of capital focused on Disciplined capital allocation controls Adjusted EBITDA growth plus acquisitions (M&A, buyback, d
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 Experts
Leading Provider of Restructuring Services and Experts in Business Transformation and Transactions with Industry Specialists’ Insights Our Future Is Bright Revenue growth, shifting 15 contributions countries 44 2010 2016 2020 offices 930+ Restructuring Business Transformation/Transactions profession
Slide 19: Four-Pillar Global Strategy
Four-Pillar Global Strategy Supported by a Steadfast Empowered Leadership Team and a Supercharged Culture of Collaboration Global Diversification in Transactions Restructuring ▪ Our fastest-growing practices involve ▪ “Diversified” means that we equally transactions value and vigorously pursue debto
Slide 20: Corporate Finance & Restructuring Affected by Market Volatility
Corporate Finance & Restructuring, Perhaps More Than Any Other Segment, Gets Affected by Substantial Market Volatility, Especially in the Restructuring Space S&P Monthly Corporate Debt Defaults (Global) Monthly Defaults 6 Month Moving Avg. Source: S&P 40 35 2016 Adjusted Segment EBITDA: $97.7 millio
Slide 21: Strong Results Overall, Despite Some Softness in 1H17
Strong Results Overall, Despite Some Softness in 1H17 Due to Market Volatility Adjusted Segment EBITDA Revenues $500 $483.3 $464.9 $440.4 $391.1 $400 $ (in millions) $300 $200 $100 $90.1 $97.7 $73.4 $55.5 $0 2014 2015 2016 Last four quarters ended 9/30/2017 Revenue- Generating 706 838 895 934 Headco
Slide 22: Driving Initiatives Without the 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 Global Diversification in Industry Stressed Specialization Companies Transactions Restructuring ▪ Continuing momentum in our Released coordinated Private global Transaction services ▪ Streng
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 Services • Antitrust & • International 15 Competition Arbitration countries Economics • Labor & Employment • Business Valuation • Network Analysis • Center for Healthcare • Public Policy Economics and Policy • Regulated Industries • Economic Impact • Securitie
Slide 25: Our Leading Capabilities Translated into Solid Financial Results
Our Leading Capabilities Translated into Solid Financial Results Adjusted Segment EBITDA Revenues $500.5 $504.2 $500 $451.0 $447.9 $400 $300 $ (in millions) $200 $100 $59.3 $62.3 $74.1 $66.7 $0 2014 2015 2016 Last four quarters ended 9/30/2017 Revenue Generating 574 599 656 688 Headcount 25
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 Maintain Leading Expand Adjacent Continue to Expand in Compass Lexecon Businesses in Grow Australia and Position in the U.S. the U.S. in EMEA Asia Pacific 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 Services 1,080 Risk Advisory • Global Risk & professionals • Anti-Corruption Investigations Practice Investigations & (“GRIP”) Compliance Disputes • Compliance, Monitoring & • Construction Solutions Receivershi
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 Adjusted Segment EBITDA Revenues $500.0 $483.4 $482.3 $457.7 $400.0 $ (in millions) $300.0 $200.0 $100.0 $90.5 $64.3 $57.9 $0.0 2014 2015 2016 Revenue Generating 1,154 1,131 1,110 Headcoun
Slide 31: Close Examination of Our Businesses to Accelerate Growth
Given Our Recent Financial Performance, We Have Undertaken a Close Examination of Our Businesses to Accelerate Growth Took actions where we were challenged • Taken actions to both address underutilization and our cost structure in Health Solutions, Investigations and small non-core international off
Slide 32: These Moves Are Strengthening the Business
These Moves Are Strengthening the Business Adjusted Segment EBITDA Revenues Continued focus on growing revenues with higher $500.0 $457.7 $446.9 utilization $400.0 Investments in core areas of strength are accelerating growth $ (in millions) $300.0 $200.0 Investments in EMEA and Asia Pacific are dri
Slide 33: Our Medium-Term Growth Opportunities
Our Medium-Term Growth Opportunities Enhance Core Extend Global Invest Ahead of Revenue Growth Offerings Footprint Emerging Trends with Higher Utilization Actions we have taken and investments we have made position us for growth. 33
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 Consulting & Services Software 8 E-discovery Services & Expertise Ringtail® E-Discovery ‒ Managed Review Software countries ‒ Computer Forensics ‒ On-Premise Licensing ‒ Authorized Provider of Ringtail®, ‒ SaaS Subscriptio
Slide 36: Slow to Address Strategic Changes in the Market
We Were Slow to Address Strategic Changes in the Market Adjusted Segment EBITDA Revenues $250.0 $241.3 $218.6 $200.0 $177.7 $150.0 $ (in millions) $100.0 $50.0 $63.5 $39.0 $25.8 $0.0 2014 2015 2016 Revenue Generating 344 349 288 Headcount 36
Slide 37: New Strategy Unleashes the Potential of Each Part of Our Business
New Strategy Maximizes and Unleashes the Potential of Each Part of Our Business Delivered Significant Efficiency Improvements Project Delivery & R&D Cost Reductions & Data Center Operations Workflow Efficiencies Focused Product Strategy Transformation Consulting & Services Software Strong momentum b
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 Cost actions have stabilized EBITDA and improved $200.0 efficiencies while allowing for continued investment in $177.7 $177.4 growth initiatives Revenue increas
Slide 39: Our Medium-Term Growth Opportunities
Our Medium-Term Growth Opportunities Growing Broadened Expanding Improved Cost Businesses with Revenue Addressable Structure Targeted Mix Market Investments Focused strategy, committed leadership team and more efficient infrastructure. 39
Slide 40: Accelerating Growth at FTI: Strategic Communications
Accelerating Growth at FTI: Strategic Communications Mark McCall Global Segment Leader
Slide 41: Integrated Communications Experts Located Where Our Clients Need Us
Integrated Communications Experts Located Where Our Clients Need Us 16 36 countries offices Financial Communications Corporate Public Reputation Affairs 600+ professionals 41
Slide 42: We Are Being Recognized in the Industry
We Are Being Recognized in the Industry 2014-2017 2017 2017 2017 M&A PR Firm PR Consultancy Best Financial Executive Positioning of the Year of the Year Communications Campaign of the Year Campaign 2017 2016 2016 2016 Strategic Crisis Management Best IPO Best Social Media Communications Services Fir
Slide 43: A Snapshot of Our Business: A More Powerful Platform to Grow From
A Snapshot of Our Business: A More Powerful Platform to Grow From Average Retained Client Tenure Top 10 Client Revenues 25% 2014 2015 2016 22% $ 15% $ 4 years 4.5 years 5 years $ 2014 2015 2016 Top 10 Client Reach Our Geographic Makeup 2016 Revenues AMER 9% 8/10 EMEA 45% 46% are cross-border, cross-
Slide 44: We Have Successfully Broadened Our Offering
We Have Successfully Broadened Our Offering 3 Core Practice Revenues 22% 27% 34% Public Affairs 40% Corporate Reputation 44% Financial 33% Communications 2013 2016 44
Slide 45: We Have a Team of Experts
We Have a Team of Experts Public Service Journalism ▪ Business Editor, The Sunday Times ▪ Press Secretary, U.S. Vice President ▪ Two-time Pulitzer Prize-Winning ▪ Spokesman, German Federal President Reporter, The New York Times ▪ Press Secretary, U.S. House Minority ▪ Senior Reporter, The Australian
Slide 46: Our Journey
Our Journey Revenues Adjusted Segment EBITDA $200.0 $189.4 $190.0 $191.2 $188.5 $70.0 $175.0 $60.0 $150.0 $50.0 $125.0 $ (in millions) $ (in millions) $40.0 $100.0 $27.7 $30.5 $75.0 $22.6 $25.6 $30.0 $50.0 $20.0 $25.0 $10.0 $0.0 $0.0 Last four quarters 2014 2015 2016 TTM ended 9/30/2017 Revenue Gene
Slide 47: Our Medium-Term Growth Opportunities
Our Medium-Term Growth Opportunities DEVELOP ENHANCE TEAM Large, Complex Client Market Share in For Integrated Relationships Highly Regulated Client Solutions Industries 47
Slide 48: Lunch Break
iT! CONSULTING 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 Michael C. Eisenband & Carlyn R. Taylor, Global Segment Co-Leaders, Corporate Finance & 10:45 – 11:00 a.m. Accelerating Growth: Corporate Finance & Restructur
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 FTI Consulting is organized into five segments, each of Economic Technology which is a global leader in Consulting its own right for one simple reason: our commitment to having a tangible, positive impact on how our
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 John Klick Paul Linton Chief Marketing Officer & Senior Vice President Chief Strategy & Transformation Head of Business Development Officer Charles D. Overstreet Holly Paul Global Practice Leader Chief Human Resources Health
Slide 53: Panel: M&A Disciplines
Making the Company More than the Sum of its Parts: Panel M&A Disciplines 53
Slide 54: More Disciplined M&A Process: Bad vs. Good Acquisition
More Disciplined M&A Process: What Constitutes a Bad/Good Acquisition? Relationship Do not know the company well Knows the company well Situation Only one bidding/preferred Auction scenarios acquirer Financials dampen our long- Financials Opportunity to enhance term profitability financials on FTI p
Slide 55: Panel: Cross-Collaboration
Making the Company More than the Sum of its Parts: Panel Cross- Collaboration 55
Slide 56: Health Solutions' Competitive Advantage: Holistic Client Solutions
Health Solutions’ Competitive Advantage: Holistic Client Solutions for a Complex Environment Complex Operating Heightened Compliance Environment Oversight Regulatory Changing Payment Compliance, Increased Government Structures Corporate Finance Investigations & Forensic & Litigation Expenditures & R
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 57
Slide 58: Top 10 Corporate Clients by Revenues as of Third Quarter 2017
Top 10 Corporate Clients by Revenues as of Third Quarter 2017 Corporate Forensic & Top 10 Economic Strategic Finance & Litigation Technology Corporate Clients Consulting Communications Restructuring Consulting 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 59
Slide 60: Approaching Headcount Growth in a Systematic, Thoughtful 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 Businesses People Betting on key Willing to invest in positions with Coupled the right people in regular strategic with the right places re-looks 60
Slide 61: Attracting, Growing and Developing the Next Generation of Leaders
Attracting, Growing and Developing the Next Generation of Leaders Rising Star Future Leader 3 Emerging Leaders 11 Future Leaders on Attracted 94 SMDs and of the Profession in on Women Leaders in Financing & Economists list Leadership category in Consulting list Turnarounds (Economic Consulting) 244
Slide 62: Panel: Rigor & Discipline Around Cost Strategies
Making the Company More than the Sum of its Parts: Panel Rigor & Discipline Around Cost Strategies 62
Slide 63: Overview of Our Current Real Estate Footprint
Overview of Our Current Real Estate Footprint 105 ~1.3 Million ~$80 Million ~4.4% Offices Square Feet Real Estate Costs of Revenues 63 Note: Bubble sizes represent total cost by office.
Slide 64: Executing Against Established Real Estate Guidelines
Executing Against Established Real Estate Guidelines • Planning starts 3 years prior to lease expiration (or when Real estate planning vacancy falls below 85%) • Take early action if economically beneficial • Established maximum cost per head and max per billable Cost per head • With lower cost targ
Slide 65: Washington, D.C. Office Relocation: Before and After
Washington, D.C. (K Street) Office Relocation: Before and After Comparison Before After Annual cost: -39% Square feet: -14% Cost per head: -38% 65
Slide 66: Bowie and San Francisco Office Relocations: Before and After
Bowie and San Francisco Office Relocations: Before and After Comparisons Before After Annual cost: -38% Bowie Square feet: -24% Cost per head: -42% Annual cost: -24% San Square feet: -54% Francisco Cost per head: -38% 66
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
EMEA: The Journey So Far 2006 Launch of European 2011 EMEA is 2014 EMEA region 2016 Restructuring 16% of reaches 850+ practice revenues billable professionals Via team hire from Ernst & Young Acquisition of Acquisition of Opening of EMEA Financial LECG Aldersgate office delivers Dynamics record 2007
Slide 69: Our Journey
Our Journey $400.0 Revenues $340.6 $343.4 $350.0 $326.4 $317.8 $300.0 $267.7 $243.6 $250.0 $232.5 $ (in millions) $190.9 $186.3 $200.0 $168.2 $150.0 $137.2 $100.0 $50.0 $0.0 Last four 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TTMended quarters 9/30/2017 Revenue Generating 208 418 474 489 576
Slide 70: Established People and Positions with Opportunity in EMEA
Established People and Positions with Opportunity to Exploit Favorable Market, Competitor and People Dynamics Critical mass in all five business segments EMEA Public Affairs EMEA Merger Control and European Private Equity Consultancy of the Year Behavioral Matter of the Tax Deal of the Year Year 20
Slide 71: 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 Facilitate Build brand Replicate UK Integrate new Continue to cross-segment recognition, growth across technologies win the war collaboration awareness and continental into existing for t
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 Disciplined Adjusted EBITDA use of cash growth by organic means Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals 73
Slide 74: Financial Progress (I)
Financial Progress (I) Focus on Organic Growth and Growing EPS Revenue Net Income Adjusted EBITDA GAAP EPSEPS Adjusted Adjusted GAAPEPS EPS $2,000 $2.50 $1,779.1 $1,810.4 $1,775 - $1,800 $1,756.2 $2.24 $1,800 $2.05 $1.90 - $2.20 $1,600 $2.00 Growing $1.84 $1,400 revenues $ (in millions) $1.64 organi
Slide 75: Financial Progress (II)
Financial Progress (II) Growing Revenue-Generating Professionals Non-Billable Headcount Billable Headcount SG&A as a % of Revenues 5,000 Total = 4,718 50% Total = 4,634 Total = 4,654 4,500 Total = 4,404 45% 4,000 Growing headcount in 3,500 40% the right 3,619 Headcount 3,000 3,596 places 3,516 3,344
Slide 76: Financial Progress (III)
Financial Progress (III) Employing Strong Free Cash Flows to Enhance Stockholder Returns Net Cash Provided by Op. Activities Free Cash Flow Net Debt Shares Outstanding $450 43.0 $415.7 Strong free $400 42.0 42.0 cash flow Shares outstanding as of period end (in millions) $345.0 $350 41.2 41.2 41.0 $
Slide 77: Key Principles to Grow Organically
Key Principles to Grow Organically Objectives Growth Opportunities Drive organic revenue and Adjusted Increase market share EBITDA growth Focus on utilization Move into adjacencies by investing where we have the right to win Reduce SG&A as a percent of revenues Deeper penetration in key geographies
Slide 78: Business Segments Are Well Positioned to Accelerate Growth (I)
Business Segments Are Well Positioned to Accelerate Growth (I) Key Growth Opportunities • Enhance Business Transformation and Corporate transaction capabilities Finance & • Grow restructuring globally Restructuring • Deeper penetration of key industries • Compass Lexecon’s leading position in U.S. E
Slide 79: Business Segments Are Well Positioned to Accelerate Growth (II)
Business Segments Are Well Positioned to Accelerate Growth (II) Key Growth Opportunities • Data & Analytics, Construction Solutions and Forensic & Cybersecurity Litigation • Grow overseas businesses Consulting • Improve utilization in Disputes, Investigations and Health Solutions • New distribution
Slide 80: Business Segments Are Well Positioned to Accelerate Growth (III)
Business Segments Are Well Positioned to Accelerate Growth (III) Key Growth Opportunities • Further develop large, complex client relationships Strategic • Enhance market share in key industries Communications • Leverage FTI Consulting’s services and platform to enhance client results 80
Slide 81: Collectively, FTI Consulting Is Well Positioned to Accelerate Growth
Collectively, FTI Consulting Is Well Positioned to Accelerate Growth Invested where we have a right to win Invested where we have A right to win Took action where we were not well positioned Strategic refreshes repositioned businesses for future growth Assessed infrastructure cost Assessed infrastru
Slide 82: Investment Thesis
Investment Thesis Mid-single digit Disciplined Adjusted EBITDA use of cash growth by organic means Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals The best is yet to come. 82
Slide 83: Questions & Answers
im FT - CONSULTING 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 Michael C. Eisenband & Carlyn R. Taylor, Global Segment Co-Leaders, Corporate Finance 10:45 – 11:00 a.m. Accelerating Growth: Corporate Finance & Restructurin
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 86
Slide 87: Closing Thoughts
Closing Thoughts Mid-single digit Disciplined use of Adjusted EBITDA cash growth by organic means Sustained double-digit Adjusted EPS growth plus a growing, vibrant company that attracts and motivates powerful professionals The best is yet to come. 87
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 Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow Last Four Quarters 2016 2015 2014 9/30/2017 (All numbers in thousands ) Net cash provided by operating $ 145,946 $ 233,488 $ 139,920 $ 135,401 activities Purchases of property and (26,101) (28,935) (31,399) (39,256) equip
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 Year Ended December 31, 2017 Low High Guidance on estimated earnings per common share - diluted (GAAP) 1 $1.37 $1.67 Special charges, net of tax 0.52 0.52 Remeasurement of acquisition-rela