Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Q1 2021 Earnings Presentation
32 slides from Fti Consulting's earnings presentation, May 2021
Slide 1: Investor Presentation May 2021
—— Investor Presentation 1 FTI Consulting, Inc. Eilts: a May 2021
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: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes FCN $4.8B 1982 6,400+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 610+ 85 29 9
Slide 4: Our Global Reach
Our Global Reach With offices in 85 cities and 29 countries, FTI Consulting has a presence in every major financial center and every corner of the globe, and we successfully serve our clients wherever challenges and opportunities arise. The Americas Europe, the Middle East and Africa Asia Australia
Slide 5: 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 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose 6
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA Q1 2021 Segment Revenues Q1 2021 Total Adjusted Segment EBITDA (1) 9% 8% 11% 33% 17% 30% 25% 22% 21% 24% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications (
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Business Transformation – Executive Compensation 18 – Interim Management countries – Merger Integration & Carve-outs – Office of the CFO Solutions – Performance Improvement ▪ Transactions – Investment Banking & Transaction Opinions – Lender Services – Str
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q1 2021 Key Financial Commentary The Corporate Finance & Restructuring ▪ Revenues increased $18.5 million, or 8.9%, from Q1 2020 to Q1 2021, which included a segment focuses on the strategic, 2.0% estimated positive impact from FX. Acqui
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction & Environmental Solutions – Asset Lifecycle Management – Capital Program Risk Management 1,367 – Cost Analytics & Auditing Services professionals ▪ Data & Analysis – Anti-corruption and Anti-money Laundering – Dispute Resolutions, Investigat
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering The Forensic & Litigation Consulting segment Q1 2021 Key Financial Commentary provides law firms, companies, government ▪ Revenues increased $3.2 million, or 2.2%, from Q1 2020 to Q1 2021, which included a 1.9% entities and other intere
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Damages Analysis – M&A-related Antitrust 18 – Non-M&A-related Antitrust countries ▪ Financial Economics – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation ▪ International Arbitration 47 890 – Busi
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q1 2021 Key Financial Commentary The Economic Consulting segment, including ▪ Revenues increased $37.1 million, or 28.1%, from Q1 2020 to Q1 2021, which included a subsidiary Compass Lexecon, provides law 2.8% estimated positive impact from FX. Exclud
Slide 14: Technology
Technology Services ▪ Corporate Legal Operations – Advisory on Governance, Policy, Standards and 13 Execution countries – Contract Intelligence – Subscriptions and Managed Services ▪ E-discovery Services and Expertise – Consulting and Data Analytics – Data Collection and Digital Forensics – E-discov
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q1 2021 Key Financial Commentary Our Technology segment provides ▪ Revenues increased $20.7 million, or 35.3%, from Q1 2020 to Q1 2021, which included a companies, law firms and government 2.9% estimated positive impact from FX. Excluding the estimated impact
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation – – Crisis & Issues Management Digital, Analytics & Insights 778 – Litigation Communications professionals ▪ Financial Communications – Corporate Governance & Shareholder Activism – M&A Communications – Restructuring & Financial Issues ▪ Publi
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q1 2021 Key Financial Commentary The Strategic Communications segment ▪ Revenues increased $2.1 million, or 3.7%, from Q1 2020 to Q1 2021, which included a 4.2% develops and executes communications estimated positive impact from FX. Excluding the
Slide 18: First Quarter 2021: Select Awards & Accolades
First Quarter 2021: Select Awards & Accolades 18
Slide 19: Environmental, Social & Governance ("ESG"): Our Commitment & Progress
Environmental, Social & Governance (“ESG”): Our Commitment & Progress FTI Consulting’s approach to ESG underscores our commitment to being Experts With Impact™ who make a positive difference for our clients and communities. Environmental Social Governance We are committed to doing our part in addres
Slide 20: Financial Overview
Financial Overview im F. F usulrind
Slide 21: FY 2018 – Q1 2021 and FY 2021 Guidance: Revenues
FY 2018 – Q1 2021 and FY 2021 Guidance: Revenues $2,575-$2,700 21
Slide 22: FY 2018 – Q1 2021: Net Income and Adjusted EBITDA
FY 2018 – Q1 2021: Net Income and Adjusted EBITDA Net income Adjusted EBITDA (1) (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure, to the most directly com
Slide 23: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share
FY 2018 – Q1 2021 and FY 2021 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $5.60-$6.30 (1) $5.80-$6.50 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earnings per Dilu
Slide 24: Select Cash Position and Capital Allocation
Q1 2021, Q4 2020 and Q1 2020: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO Q1 2021 Q4 2020 Q1 2020 Cash and cash equivalents $ 233,421 $ 294,953 $ 223,063 Accounts receivable, net $ 798,516 $ 711,357 $ 736,898 Days sales outstanding (“DSO”) (1) 97 95 104 Net c
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) Q1 2021 FY 2020 FY 2019 FY 2018 Net income $ 64,496 $ 210,682 $ 216,726 $ 150,611 Income tax provision 20,247 51,764 71,724 57,181 Interest income and other (1,034) 412 (2,061) (4,977) Interest expense 4,797 19,805 19,206 27,149 Gain on
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) Q1 2021 FY 2020 FY 2019 FY 2018 Net income $ 64,496 $ 210,682 $ 216,726 $ 150,611 Add back: Special charges — 7,103 — — Tax impact of s
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q1 2021 Net income $ 64,496 Add back: Income tax provision 20,247 Interest income and other (1,034) Interest expense 4,797 Unallocated corporate expenses 26,710 Segment depreciation expense 7,430 Amortization of intangible
Slide 29: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow (in thousands) Q1 2021 Q4 2020 Q1 2020 Net cash provided by (used in) operating activities $ (166,584) $ 186,092 $ (123,562) Purchases of property and equipment (8,001) (9,203) (8,236) Free Cash Flow (1) $ (174,5
Slide 30: Reconciliation of Full Year 2021 EPS Guidance to Adjusted EPS Guidance
Reconciliation of Full Year 2021 EPS Guidance to Adjusted EPS Guidance Year Ended December 31, 2021 Low High Guidance on estimated earnings per common share - diluted (GAAP) (1) $ 5.60 $ 6.30 Non-cash interest expense on convertible notes, net of tax 0.20 0.20 Guidance on estimated adjusted earnings
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 in the Un
Slide 32: Experts with Impact
im F, T YL CONSULTING Experts with Impact” 32