Slide 1: FTI Consulting, Inc. Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation August 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 $3.9BLN 1982 4,700+ Publicly Equity Market Year Founded Total Employees Traded Capitalization1 Worldwide 480+ 76 9 2 Nobel Senior Managing Cities Around the 9 Specialized Industry Laureates Directors Globe Practice Groups 8/10 96/100 49/100 Advisor to 8 of the
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 Q2 2019 Segment Revenues Q2 2019 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 • Carve-outs 14 • Company Advisory • Executive Compensation countries • Creditor Advisory Transactions • Interim Management • Transaction Services • Contentious Insolvency • Investment Banking & • Dispute Advisory/ Transaction Opinions Litigat
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q2 2019 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on Revenues increased $48.6 million, or 34.4%, from Q2 2018 to Q2 strategic, operational, financial and capital needs of businesses by 2019, which inc
Slide 10: Forensic and Litigation Consulting Services
Forensic and Litigation Consulting Services Risk Advisory 1,212 • 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 Q2 2019 Key Financial Commentary The Forensic & Litigation Consulting segment provides a complete Revenues increased $12.3 million, or 9.2%, from Q2 2018 to Q2 range of multidisciplinary, independent dispute advisory, 2019, which includ
Slide 12: Economic Consulting Services
Economic Consulting Services • Antitrust & Competition Economics • Business Valuation 18 • Center for Healthcare Economics and Policy countries • Economic Impact Analysis • Intellectual Property • International Arbitration • Labor & Employment • Applied Statistical Data Sciences 41 • Market Modeling
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q2 2019 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass Revenues increased $22.2 million, or 16.6%, from Q2 2018 to Q2 Lexecon, provides analysis of complex economic issues. We help 2019, which included a 1.5% es
Slide 14: Technology Services
Technology Services 9 E-discovery Services & Expertise countries • Managed Document Review • Computer Forensics • Authorized Provider of Ringtail® 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 Q2 2019 Key Financial Commentary 00000000 Our Technology segment provides corporations and law Revenues increased $9.2 million, or 19.8%, from Q2 2018 to Q2 firms with a comprehensive and global portfolio of 2019, which included a 1.3% estimated negative impac
Slide 16: Strategic Communications Services
Strategic Communications Services • M&A Crisis Communications & Special Situations 672 • Capital Markets Communications professionals • Corporate Reputation • Public Affairs & Government Relations • People & Change • Digital & Creative Communications • Strategy Consulting & Research 38 17 offices co
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q2 2019 Key Financial Commentary The Strategic Communications segment provides a Revenues increased $1.6 million, or 2.8%, from Q2 2018 to Q2 comprehensive view of strategic communications with an 2019, which included a 3.3% estimated negative im
Slide 18: Second Quarter 2019: Select Awards & Accolades
Second Quarter 2019: Select Awards & Accolades 18 18
Slide 19: Financial Overview
Financial Overview
Slide 20: FY 2015 – Q2 2019 and FY 2019 Guidance: Revenues
FY 2015 – Q2 2019 and FY 2019 Guidance: Revenues $2,175-$2,250 20
Slide 21: FY 2015 – Q2 2019: Net Income and Adjusted EBITDA
FY 2015 – Q2 2019: 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, to the most directly compa
Slide 22: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share
FY 2015 – Q2 2019 and FY 2019 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $4.88-$5.38 Adjusted Earnings Per Diluted Share (1) $5.00-$5.50 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliat
Slide 23: Select Cash Position and Capital Allocation
Q2 2019, Q1 2019 and Q2 2018: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs Q2 2019 Q1 2019 Q2 2018 Cash and cash equivalents $ 189,106 $ 179,241 $ 116,556 Accounts receivable, net $ 743,402 $ 656,127 $ 607,455 Days sales outstanding ("DSO") 103 97 101 Net cas
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) Q2 2019 Q1 2019 FY 2018 FY 2017 FY 2016 FY 2015 Net Income $ 64,598 $ 62,645 $ 150,611 $ 107,962 $ 85,520 $ 66,053 Income tax provision (benefit) 21,313 19,930 57,181 (20,857) 42,283 39,333 Interest income and other (2,609) (159) (4,977)
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) Q2 2019 Q1 2019 FY 2018 FY 2017 FY 2016 FY 2015 Net income $64,598 $62,645 $150,611 $107,962 $85,520 $66,053 Add back: Special charges
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q2 2019 Net Income $64,598 Add back: Income tax provision 21,313 Interest income and other (2,609) Interest expense 4,793 Unallocated corporate expense 28,892 Segment depreciation expense 6,556 Amortization of intangible as
Slide 28: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow (in thousands) Q2 2019 Q1 2019 Q2 2018 Net cash provided by (used in) operating activities $47,648 $(102,086) $34,615 Purchases of property and equipment (10,508) (10,153) (8,540) Free Cash Flow1 $37,140 $(112,23
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 $4.88 $5.38 Non-cash interest expense on convertible notes, net of tax 0.17 0.17 Tax impact of gain on sale of business2 (0.0
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”