Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Q4 2014 Earnings Presentation
27 slides from Fti Consulting's earnings presentation, February 2015
Slide 1: Fourth Quarter 2014 and Full-Year 2014 Earnings Conference Call
FTI Consulting, Inc. Fourth Quarter 2014 and Full-Year 2014 Earnings Conference Call
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- lo
Slide 3: Today's Speakers
Today’s Speakers Steven Gunby David Johnson President & Chief Executive Officer Chief Financial Officer 3
Slide 4: Bridge From Full-Year 2014 Guidance To Actual Results
Bridge From Full-Year 2014 Guidance To Actual Results FY 2014 Guidance vs. Actual Results Mid-Point of 2014 Guidance Range $1.93 Actual 2014 Results $1.64 Variance $0.29 Item EPS Impact Non-cash income tax reserve (Australia) ($0.11) Changes in effective income tax rate ($0.03) Severance charge ($0.
Slide 5: Fourth Quarter 2014 and Full-Year 2014 Financial Review
Fourth Quarter 2014 and Full-Year 2014 Financial Review All numbers in $000s, except for per share data and percentages Q4 2014 Q3 2014 % Variance Q4 2013 % Variance Revenues $425,158 $451,178 -5.8% $415,998 2.2% Fully Diluted Earnings Per Share $0.02 $0.55 -96.4% ($0.18) - (1) Adjusted Earnings Per
Slide 6: Fourth Quarter 2014 and Full-Year 2014 Segment Financial Review
Fourth Quarter 2014 and Full-Year 2014 Segment Financial Review All numbers in $000s, except for percentages Q4 2014 Q3 2014 % Variance Q4 2013 % Variance FY 2014 FY 2013 % Variance Corporate Finance/Restructuring Revenue $93,072 $100,041 -7.0% $92,751 0.3% $391,115 $382,526 2.2% Adjusted Segment EB
Slide 7: Fourth Quarter 2014 and Full-Year 2014 Geographic Review
Fourth Quarter 2014 and Full-Year 2014 Geographic Review Percentage of Q4 2014 Percentage of FY 2014 Region Revenues Revenues North America 72.0% 72.3% EMEA 19.8% 18.1% Asia Pacific 5.3% 6.6% Latin America 2.9% 3.0% Q4 2014 vs. Q4 2013 Revenue FY 2014 Year-Over-Year Region Growth Revenue Growth Nort
Slide 8: Cash Position/Capital Allocation
Cash Position/Capital Allocation All numbers in $000s except for DSOs FY 2014 FY 2013 Cash and cash equivalents $283,680 $205,833 Accounts receivable, net $485,101 $476,445 Days sales outstanding ("DSO") 97 97 Net cash provided by operating activities $135,401 $193,271 Purchases of property and equi
Slide 9: Full-Year 2015 Guidance
Full-Year 2015 Guidance FY 2015 Guidance Revenue Between $1.80 billion and $1.90 billion Adjusted EPS Between $1.95 and $2.20 9
Slide 10: Question & Answer Session
Question & Answer Session Q&A 10
Slide 11: Financial Tables
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Slide 12: Fourth Quarter 2014 Results: Condensed Consolidated Statements of Comprehensive Loss
Fourth Quarter 2014 Results: Condensed Consolidated Statements of Comprehensive Loss All numbers in $000s, except for per share data Three Months Ended December 31, 2014 (unaudited) 2013 (unaudited) Revenues $425,158 $415,998 Operating expenses Direct cost of revenues 281,689 268,901 Selling, genera
Slide 13: Third Quarter 2014 Results: Condensed Consolidated Statements of Comprehensive Loss
Third Quarter 2014 Results: Condensed Consolidated Statements of Comprehensive Loss All numbers in $000s, except for per share data Three Months Ended September 30, 2014 (unaudited) 2013 (unaudited) Revenues $451,178 $414,643 Operating expenses Direct cost of revenues 293,244 255,152 Selling, genera
Slide 14: Full-Year 2014 Results: Condensed Consolidated Statements of Comprehensive Income (Loss)
Full-Year 2014 Results: Condensed Consolidated Statements of Comprehensive Income (Loss) All numbers in $000s, except for per share data Year Ended December 31, 2014 2013 Revenues $1,756,212 $1,652,432 Operating expenses Direct cost of revenues 1,144,757 1,042,061 Selling, general & administrative e
Slide 15: Fourth Quarter 2014 Results: Operating Results by Business Segment
Fourth Quarter 2014 Results: Operating Results by Business Segment All numbers in $000s, except for bill rate per hour and headcount data (1) Adjusted Segment Average Billable Three Months Ended December 31, 2014 Revenues Adjusted EBITDA (1) Utilization Revenue-Generating Headcount (at period end) E
Slide 16: Third Quarter 2014 Results: Operating Results by Business Segment
Third Quarter 2014 Results: Operating Results by Business Segment All numbers in $000s, except for bill rate per hour and headcount data Average Billable Revenue-Generating (1) Adjusted Segment Three Months Ended September 30, 2014 Revenues Adjusted EBITDA Utilization Headcount (at period EBITDA Mar
Slide 17: Full-Year 2014 Results: Operating Results by Business Segment
Full-Year 2014 Results: Operating Results by Business Segment All numbers in $000s, except for bill rate per hour and headcount data Revenue-Generating Adjusted Segment Average Billable Year Ended December 31, 2014 Revenues (1) Utilization Headcount (at period Adjusted EBITDA (1) EBITDA Margin Rate
Slide 18: Fourth Quarter 2014: Reconciliation of Non-GAAP Financial Measures
Fourth Quarter 2014: Reconciliation of Non-GAAP Financial Measures All numbers in $000s, except for per share data Three Months Ended December 31, 2014 2013 Net income (loss) $921 ($7,139) Add back: Special charges, net of tax effect 960 16,167 Remeasurement of acquisition related contingent conside
Slide 19: Third Quarter 2014: Reconciliation of Non-GAAP Financial Measures
Third Quarter 2014: Reconciliation of Non-GAAP Financial Measures All numbers in $000s, except for per share data Three Months Ended September 30, 2014 2013 Net income (loss) $22,522 ($50,621) Special charges, net of tax effect 3,154 6,847 Goodwill impairment charges - 83,752 Interim period impact o
Slide 20: Full-Year 2014: Reconciliation of Non-GAAP Financial Measures
Full-Year 2014: Reconciliation of Non-GAAP Financial Measures All numbers in $000s, except for per share data Year Ended December 31, 2014 2013 Net income (loss) $58,807 ($10,594) Add back: Special charges, net of tax effect 9,637 23,267 Goodwill impairment charges - 83,752 Remeasurement of acquisit
Slide 21: Fourth Quarter 2014: Reconciliation to Adjusted EBITDA
Fourth Quarter 2014: Reconciliation of Net Income (Loss) and Operating Income to Adjusted EBITDA All numbers in $000s Corporate Finance/ Forensic and Litigation Economic Strategic Three Months Ended December 31, 2014 Technology Unallocated Corporate Total Restructuring Consulting Consulting Communic
Slide 22: Third Quarter 2014: Reconciliation to Adjusted EBITDA
Third Quarter 2014: Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA All numbers in $000s Corporate Finance/ Forensic and Litigation Economic Strategic Three Months Ended September 30, 2014 Technology Unallocated Corporate Total Restructuring Consulting Consulting C
Slide 23: Full-Year 2014: Reconciliation to Adjusted EBITDA
Full-Year 2014: Reconciliation of Net Income (Loss) and Operating Income (Loss) to Adjusted EBITDA All numbers in $000s Corporate Finance/ Forensic and Litigation Economic Strategic Year Ended December 31, 2014 Technology Unallocated Corporate Total Restructuring Consulting Consulting Communications
Slide 24: End Notes: FTI Consulting Non-GAAP Data Reconciliations
End Notes: FTI Consulting Non-GAAP Data Reconciliations Beginning with the quarter ended March 31, 2014, the definitions of each of these non-GAAP measures have been updated to exclude the impact of changes in the fair value of acquisition-related contingent consideration liabilities. Prior period a
Slide 25: Appendix
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Slide 26: 2014 Awards & Accolades
2014 Awards & Accolades FTI Technology recognized as a Named one the 20 Best Economics Firms in the “Leader” in the 2014 “Gartner Magic World by Global Competition Review for nine Quadrant for E-Discovery Software consecutive years (2006–2014) Report” for the second consecutive year Winner of Global
Slide 27: Critical Thinking at the Critical Time
Critical Thinking at the Critical Time ™