Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Non-Deal Roadshow (March 2019)
31 slides from Fti Consulting's roadshow presentation, March 2019
Slide 1: FTI Consulting, Inc. 1Q19 Investor Presentation
FTI Consulting, Inc. 1Q19 Investor Presentation March 2019
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: 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 4: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FCN $2.8BLN Equity Market 1982 4,700+ Publicly Year Founded Total Employees Traded Capitalization1 Worldwide 480+ 76 9 2 Nobel Senior Managing Directors Offices in 76 Cities Around the Globe 9 Specialized Industry Practice Groups Laureates 8/10 96/100 49/100 Advis
Slide 5: Our Global Reach
Our Global Reach With offices in every major financial center and every corner of the globe, we successfully serve our clients wherever challenges and opportunities arise North America Canada Calgary Toronto Vancouver Asia Pacific United States Annapolis Oakland Australia Indonesia Atlanta Palm Beac
Slide 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose Corporate Finance & Restructuring FTI Consulting is organized Technology into five segments, each of Economic 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 clie
Slide 7: Segment Snapshot: Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Revenues and Total Adjusted Segment EBITDA Full Year 2018 Segment Revenues Full Year 2018 Adjusted Segment EBITDA1 11% 12% 9% 28% 8% 34% 19% 26% 26% 27% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications ¹See
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services Restructuring • Company Advisory • Carve-outs 14 • Executive Compensation countries • Creditor Advisory Transactions • Interim Management • Transaction Services • Contentious Insolvency • Investment Banking & • Dispute Advisory/ Transaction Opinions 948 Lit
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering FY 2018 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on • Revenues increased $82.4 million, or 17.1%, from 2017 to 2018. strategic, operational, financial and capital needs of Acquisition-related revenue
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services Risk Advisory 1,153 • Anti-Corruption Investigations & Compliance professionals • Compliance, Monitoring & Receivership • Data & Analytics Investigations • Cybersecurity • Forensic Accounting & Advisory Services • Global Risk & Investigations Practice (“GR
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering FY 2018 Key Financial Commentary The Forensic and Litigation Consulting segment provides a • Revenues increased $58.0 million, or 12.5%, from 2017 to 2018. The complete range of multidisciplinary, independent dispute increase was driven
Slide 12: Economic Consulting
Economic Consulting Services Antitrust & Competition Economics 18 • • Business Valuation • Center for Healthcare Economics and Policy countries • Economic Impact Analysis • Intellectual Property • International Arbitration Labor & Employment 41 • 708 • Network Analysis • Public Policy offices • Regu
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering FY 2018 Key Financial Commentary The Economic Consulting segment, including subsidiary • Revenues increased $38.0 million, or 7.7%, from 2017 to 2018. The Compass Lexecon, provides analysis of complex economic increase was primarily due to higher dema
Slide 14: Technology
Technology Services E-discovery Services & Expertise 9 • Managed Review countries • Computer Forensics • Authorized Provider of Ringtail, Radiance and Relativity Information Governance, Privacy & Security Services • Microsoft Office 365 Migrations • Data Remediation • General Data Protection Regulat
Slide 15: Technology (continued)
Technology (continued) Segment Offering FY 2018 Key Financial Commentary Our Technology segment provides corporations and law firms • Revenues increased $10.9 million, or 6.2%, from 2017 to 2018. The increase with a comprehensive and global portfolio of consulting and in revenues was primarily due t
Slide 16: Strategic Communications Services
Strategic Communications Services • • M&A Crisis Communications & Special Situations Capital Markets Communications 641 • Corporate Reputation professionals • Public Affairs & Government Relations • People & Change • Digital & Creative Communications • Public Affairs • Strategy Consulting & Research
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering FY 2018 Key Financial Commentary The Strategic Communications segment provides a • Revenues increased $30.8 million, or 16.0%, from 2017 to 2018, which comprehensive view of strategic communications with an included a 1.6% estimated positive impa
Slide 18: Full Year 2018 Awards & Accolades
Full Year 2018 Awards & Accolades 2018 2018 2018 2018 America’s Best Consulting Firm of the #1 Crisis Management Global Turnaround Management Consulting Year Firm Consulting Firm Firms of the Year 2018 2018 2018 2018 Forensic Accounting Compass Lexecon #1 on Top 10 Best Consulting #1 Demonstrative E
Slide 19: Financial Overview
Financial Overview
Slide 20: FY 2014 – FY 2019 Guidance: Revenues
FY 2014 – FY 2019 Guidance: Revenues $2,000-$2,100 20
Slide 21: FY 2014 – FY 2018: Net Income and Adjusted EBITDA
FY 2014 – FY 2018: Net Income and Adjusted EBITDA Net Income Adjusted EBITDA (1) ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliations of Adjusted EBITDA, which is a non-GAAP financial measure. 21
Slide 22: FY 2014 – FY 2019 Guidance: Earnings Per Diluted Share and Adjusted EPS
FY 2014 – FY 2019 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $3.33-$3.83 Adjusted Earnings Per Diluted Share (1) $3.50-$4.00 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliations of Adju
Slide 23: Select Cash Position and Capital Allocation
Full Year 2018, 2017 and 2016: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs FY 2018 FY 2017 FY 2016 Cash and cash equivalents $ 312,069 $ 189,961 $ 216,158 Accounts receivable, net $ 554,608 $ 522,878 $ 474,897 Days sales outstanding ("DSO") 93 91 91 Net cash
Slide 24: Financial Tables Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net Income $ 150,611 $ 107,962 $ 85,520 $ 66,053 $ 58,807 Income tax provision (benefit) 57,181 (20,857) 42,283 39,333 42,604 Interest income and other (4,977) (3,752) (10,466) (3,232) (4,670) Inte
Slide 26: 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) FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net income $150,611 $107,962 $85,520 $66,053 $58,807 Add back: Special charges — 40,885 10,445
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) FY 2018 Net Income $150,611 Add back: Income tax provision 57,181 Interest income and other (4,977) Interest expense 27,149 Gain on sale of business (13,031) Loss on early extinguishment of debt 9,072 Unallocated corporate
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 2018 FY 2017 FY 2016 Net cash provided by operating activities $230,672 $147,625 $233,488 Purchases of property and equipment (32,270) (32,004) (28,935) Free Cash Flow1 $198,402 $115,621 $204,553 1See “En
Slide 29: Reconciliation of Full Year 2019 EPS Guidance to Adjusted EPS Guidance
Reconciliation of Full Year 2019 EPS Guidance to Adjusted EPS Guidance Year Ended December 31, 2019 Low High Guidance on estimated earnings per common share - diluted (GAAP) 1 $3.33 $3.83 Non-cash interest expense on convertible notes, net of tax 0.17 0.17 Guidance on estimated adjusted earnings per
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 ("GAAP").
Slide 31: FTI Consulting: Experts with Impact
iim Ft... CONSULTING | EXPERTS WITH IMPACT”