Slide 1: FTI Consulting, Inc. Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation October 2018
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 4,600+ Publicly Year Founded Total Employees Traded Capitalization1 Worldwide 490+ 76 9 2 Nobel Senior Managing Directors Offices in 76 Cities Around the Globe 9 Specialized Industry Practice Groups Laureates 8/10 96/100 53/100 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 5
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 Q3 2018 Segment Revenues Q3 2018 Total Adjusted Segment EBITDA¹ Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications ¹See accompanying financial tables and “End Notes:
Slide 8: Corporate Finance & Restructuring Services
Corporate Finance & Restructuring Services Restructuring • Company Advisory • Executive Compensation 15 Transactions countries • Creditor Advisory • Transaction Services • Interim Management • Investment Banking & • Contentious Insolvency Transaction Opinions 43 • Dispute Advisory/ • Lender Services
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q3 2018 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on • Revenues increased $7.3 million, or 5.7%, from Q3 2017 to Q3 2018. strategic, operational, financial and capital needs of businesses by The reven
Slide 10: Forensic & Litigation Consulting Services
Forensic & Litigation Consulting Services Risk Advisory Disputes 1,129 • Anti-Corruption Investigations • Construction Solutions professionals & Compliance • Dispute Advisory Services • Compliance, Monitoring & • Financial Services Receivership • Global Insurance Services • Data & Analytics • Health
Slide 11: Forensic & Litigation Consulting (continued)
Forensic & Litigation Consulting (continued) Segment Offering Q3 2018 Key Financial Commentary The Forensic & Litigation Consulting segment provides a complete • Revenues increased $8.0 million, or 6.8%, from Q3 2017 to Q3 2018. range of multidisciplinary, independent dispute advisory, The increase
Slide 12: Economic Consulting Services
Economic Consulting Services • Antitrust & Competition • Network Analysis Economics • Public Policy 15 • Business Valuation • Regulated Industries countries • Center for Healthcare • Securities Litigation & Economics and Policy Risk Management • Economic Impact Analysis • Intellectual Property • Int
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q3 2018 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass • Revenues increased $27.4 million, or 24.5%, from Q3 2017 to Q3 2018. Lexecon, provides analysis of complex economic issues. We help The increase was prima
Slide 14: Technology
Technology Services E-discovery Services & Expertise • Data Remediation 8 • Managed Review • General Data Protection countries • Computer Forensics Regulation ("GDPR") • Authorized Provider of Readiness Ringtail®, Radiance & Relativity • Cybersecurity Information Governance, Contract Intelligence Pr
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q3 2018 Key Financial Commentary Our Technology segment provides corporations and law firms • Revenues increased $14.4 million, or 34.1%, from Q3 2017 to Q3 2018. The with a comprehensive and global portfolio of consulting and increase was primarily driven by
Slide 16: Strategic Communications Services
Strategic Communications Services • M&A Crisis Communications & Special Situations • Capital Markets Communications • Corporate Reputation • • Public Affairs & Government Relations People & Change Communications 16 countries • Digital & Creative Communications • Public Affairs • Strategy Consulting
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q3 2018 Key Financial Commentary The Strategic Communications segment provides a • Revenues increased $6.9 million, or 14.3%, from Q3 2017 to Q3 2018. comprehensive view of strategic communications with an The increase was due to a $3.3 million i
Slide 18: Third Quarter 2018 Awards & Accolades
Third Quarter 2018 Awards & Accolades FTI Consulting named to Consulting magazine’s 2018 Best Firms to Work For list FTI Consulting and subsidiary Compass Lexecon topped Who's Who Legal’s 2018 Consulting Experts Guide for the third consecutive year FTI Consulting named Global Turnaround Consulting F
Slide 19: Third Quarter 2018 Awards & Accolades (continued)
Third Quarter 2018 Awards & Accolades (continued) FTI Consulting named a Top 15 Strategy Consulting Firm in the Asia Pacific region by Consultancy Asia FTI Consulting named 2018 Technology Sector Consulting Firm of the Year in Australia by Corporate Intl magazine Gina Gutzeit recognized as a Woman L
Slide 20: Financial Overview
Financial Overview
Slide 21: FY 2014 – Q3 2018 and FY 2018 Guidance: Revenues
FY 2014 – Q3 2018 and FY 2018 Guidance: Revenues $1,960-$1,990 21
Slide 22: FY 2014 – Q3 2018: Net Income and Adjusted EBITDA
FY 2014 – Q3 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. 22
Slide 23: Earnings Per Diluted Share and Adjusted EPS, with FY 2018 Guidance
FY 2014 – Q3 2018 and FY 2018 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $3.53-$3.73 Adjusted Earnings Per Diluted Share (1) $3.60-$3.80 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliat
Slide 24: Select Cash Position and Capital Allocation
Q3 2018, Q2 2018 and Q3 2017: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs Q3 2018 Q2 2018 Q3 2017 Cash and cash equivalents $ 505,867 $ 116,556 $ 157,961 Accounts receivable, net $ 623,397 $ 607,455 $ 547,132 Days sales outstanding ("DSO") 104 101 105 Net ca
Slide 25: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 26: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q3 2018 Q2 2018 Q1 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net Income $44,333 $43,609 $38,945 $107,962 $85,520 $66,053 $58,807 Income tax provision (benefit) 19,964 14,113 15,270 (20,857) 42,283 39,333 42,604 Interest income and other (1,40
Slide 27: 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) Q3 2018 Q2 2018 Q1 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net income $44,333 $43,609 $38,945 $107,962 $85,520 $66,053 $58,807 Add back: S
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q3 2018 Net Income $44,333 Add back: Income tax provision 19,964 Interest income and other (1,400) Interest expense 7,246 Gain on sale of business (13,031) Unallocated corporate expenses 27,806 Segment depreciation expense
Slide 29: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in thousands) Q3 2018 Q2 2018 Q3 2017 Net cash provided by operating activities $120,857 $34,615 $106,233 Purchases of property and equipment (11,621) (8,540) (6,894) Free Cash Flow1 $109,236 $26,075 $99,339 1See “End Not
Slide 30: Reconciliation of Full Year 2018 EPS Guidance to Adjusted EPS Guidance
Reconciliation of Full Year 2018 EPS Guidance to Adjusted EPS Guidance Year Ended December 31, 2018 Low High Guidance on estimated earnings per common share - diluted (GAAP) 1 $3.53 $3.73 Non-cash interest expense on convertible notes, net of tax 0.06 0.06 Gain on sale of business, net of tax (0.16)
Slide 31: 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 32: iim Ft...
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