Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Q3 2020 Earnings Presentation
31 slides from Fti Consulting's earnings presentation, November 2020
Slide 1: Investor Presentation November 2020
— Investor Presentation FTI Consulting, Inc. i : im F, F usu rind November 2020
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 FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes FCN $3.5B 1982 6,200+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 600+ 84 9 Se
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 Latin America Europe, Middle East, Africa Asia Australia Canada Argentina Colombia Belgium Ireland Spain China Japa
Slide 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose Corporate Finance & Restructuring Technology FTI Consulting is organized Economic into five segments, each of Consulting which is a global leader in its own right for one simple reason: our commitment to having a tangible, positive impact on how our clie
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA Q3 2020 Segment Revenues Q3 2020 Adjusted Segment EBITDA (1) 9% 7% 9% 10% 38% 49% 22% 25% 19% 12% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications (1) See
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Restructuring – Company Advisory 15 countries – Creditor Advisory – Interim Management – Contentious Insolvency – Dispute Advisory/Litigation Support ▪ Business Transformation 45 1,608 – Office of the CFO Solutions offices – Performance Improvement profes
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q3 2020 Key Financial Commentary The Corporate Finance & ▪ Revenues increased $44.9 million, or 23.4%, from Q3 2019 to Q3 2020. Restructuring segment focuses on Acquisition-related revenues contributed $8.5 million, or 4.4% compared to s
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Forensic Accounting & Advisory Services ▪ Global Risk & Investigations Practice 1,371 ▪ Cybersecurity professionals ▪ Export Controls & Sanctions ▪ Dispute Advisory Services ▪ Trial Services ▪ Data & Analytics ▪ Compliance, Monitoring & Receivership ▪ An
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering Q3 2020 Key Financial Commentary The Forensic & Litigation Consulting ▪ Revenues decreased $23.5 million, or 16.5%, from Q3 2019 to Q3 2020. The segment provides a complete range of decrease was primarily due to lower demand for most of
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Non-M&A-related Antitrust – M&A-related Antitrust ▪ Financial Economics 17 – Valuation countries – Securities Litigation & Risk Management ▪ International Arbitration ▪ Regulated Industries ▪ Intellectual Property ▪ Labor & Employmen
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q3 2020 Key Financial Commentary The Economic Consulting segment, including ▪ Revenues increased $13.3 million, or 9.4%, from Q3 2019 to Q3 2020, which subsidiary Compass Lexecon, provides included a 1.3% estimated positive impact from FX. Excluding t
Slide 14: Technology
Technology Services ▪ E-discovery and Data Compliance 10 Management countries ▪ Managed Document Review ▪ Digital Forensics ▪ Information Governance, Privacy & Security ▪ Contract Intelligence 31 offices 394 professionals (in thousands, except percentages and headcount data) (Unaudited) 2017 2018 Q1
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q3 2020 Key Financial Commentary Our Technology segment provides ▪ Revenues increased $1.5 million, or 2.6%, from Q3 2019 to Q3 2020. The corporations and law firms with a increase was primarily driven by higher demand for our consulting and hosting comprehens
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation ▪ Public Affairs & Government Relations 17 countries ▪ Capital Markets Communications ▪ Crisis Communications ▪ Transaction Communications ▪ Digital, Analytics & Insights 35 offices 766 professionals (in thousands, except percentages and headc
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q3 2020 Key Financial Commentary The Strategic Communications ▪ Revenues decreased $7.0 million, or 11.7%, from Q3 2019 to Q3 2020, which segment provides a comprehensive included a 2.1% estimated positive impact from FX. Excluding the estimated
Slide 18: Third Quarter 2020: Select Awards & Accolades
Third Quarter 2020: Select Awards & Accolades Most professionals (154) Ranked #1 on 3Q20 Named to PR News’ inaugural Recognized in 11 named to the annual Bankruptcy League Tables Agency Elite 100 categories of Chambers Consulting Experts list The Deal PR News Litigation Support 2020 Who’s Who Legal
Slide 19: Financial Overview
Financial Overview im F, F swe rind
Slide 20: FY 2017 – Q3 2020 and FY 2020 Guidance: Revenues
FY 2017 – Q3 2020 and FY 2020 Guidance: Revenues $2,420-$2,470 20
Slide 21: FY 2017 – Q3 2020: Net Income and Adjusted EBITDA
FY 2017 – Q3 2020: 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 22: Earnings Per Diluted Share and Adjusted EPS, FY 2017 – Q3 2020 and Guidance
FY 2017 – Q3 2020 and FY 2020 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $4.93-$5.43 (1) $5.25-$5.75 $1.54 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earnings Pe
Slide 23: Select Cash Position and Capital Allocation
Q3 2020, Q2 2020 and Q3 2019: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO Q3 2020 Q2 2020 Q3 2019 Cash and cash equivalents $ 304,658 $ 304,206 $ 258,470 Accounts receivable, net $ 762,760 $ 714,918 $ 739,463 Days sales outstanding (“DSO”) (1) 104 98 108 Net
Slide 24: Financial Tables: Reconciliations of Non-GAAP Financial Measures
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Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q3 2020 Q2 2020 Q1 2020 FY 2019 FY 2018 FY 2017 Net income $ 50,172 $ 48,174 $ 56,747 $ 216,726 $ 150,611 $ 107,962 Income tax provision (benefit) 14,407 14,470 16,465 71,724 57,181 (20,857) Interest income and other 3,340 (2,202) (5,017
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) Q3 2020 Q2 2020 Q1 2020 FY 2019 FY 2018 FY 2017 Net income $ 50,172 $ 48,174 $ 56,747 $ 216,726 $ 150,611 $ 107,962 Add back: Special c
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q3 2020 Net income $ 50,172 Add back: Income tax provision 14,407 Interest income and other 3,340 Interest expense 5,151 Unallocated corporate expenses (1) 26,061 Segment depreciation expense 7,236 Amortization of intangibl
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) Q3 2020 Q2 2020 Q3 2019 Net cash provided by operating activities $ 111,563 $ 152,976 $ 131,304 Purchases of property and equipment (11,764) (5,663) (6,365) Free Cash Flow (1) $ 99,799 $ 147,313 $ 124,939 (1
Slide 29: Reconciliation of Full Year 2020 EPS Guidance to Adjusted EPS Guidance
Reconciliation of Full Year 2020 EPS Guidance to Adjusted EPS Guidance Year Ended December 31, 2020 Low High Guidance on estimated earnings per common share - diluted (GAAP) (1) $ 4.93 $ 5.43 Special charges, net of tax 0.14 0.14 Non-cash interest expense on convertible notes, net of tax 0.18 0.18 G
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 in the Un
Slide 31: Experts with Impact
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