Slide 1: FTI Consulting, Inc. Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation May 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 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that i
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 $2.1BLN 1982 4,600+ Publicly Equity Market Capitalization¹ Year Founded Total Employees Traded Worldwide 460+ 77 9 2 Nobel Senior Managing Directors Offices in 77 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 Asia Pacific North America Australia Indonesia Canada Oakland Brisbane Jakarta Calgary Pasadena Melbourne Toronto Philadelphia Ja
Slide 6: Our Clients: We Serve the World's Leading Corporations and Law Firms
Our Clients: We Serve the World's Leading Corporations and Law Firms 6
Slide 7: 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 8: Segment Snapshot: Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Revenues and Total Adjusted Segment EBITDA Q1 2018 Segment Revenues Q1 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 9: Corporate Finance & Restructuring Services
Corporate Finance & Restructuring Services Restructuring • Interim Management 15 • Company Advisory • Transaction Services countries • Creditor Advisory • Executive Compensation • Interim Management Transactions • Contentious Insolvency • Transaction Services • Dispute Advisory/ • Investment Banking
Slide 10: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q1 2018 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on • Revenues increased $37.0 million, or 35.0%, from Q1 2017 to Q1 2018, strategic, operational, financial and capital needs of businesses by which i
Slide 11: Forensic & Litigation Consulting Services
Forensic & Litigation Consulting Services Risk Advisory Disputes 1,072 • Anti-Corruption Investigations • Construction Solutions professionals & Compliance • Dispute Advisory Services • Compliance, Monitoring & • Financial Services Receivership • Global Insurance Services • Data & Analytics • Health
Slide 12: Forensic & Litigation Consulting (continued)
Forensic & Litigation Consulting (continued) Segment Offering Q1 2018 Key Financial Commentary The Forensic & Litigation Consulting segment provides a complete • Revenues increased $16.6 million, or 14.9%, from Q1 2017 to Q1 2018, range of multidisciplinary, independent dispute advisory, which inclu
Slide 13: Economic Consulting Services
Economic Consulting Services • Antitrust & Competition • Economics • Network Analysis Public Policy 15 • Business Valuation • Regulated Industries countries • Center for Healthcare • Securities Litigation & Economics and Policy Risk Management • Economic Impact Analysis • Intellectual Property 37 •
Slide 14: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q1 2018 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass • Revenues decreased $6.1 million, or 4.4%, from Q1 2017 to Q1 2018, Lexecon, provides analysis of complex economic issues. We help which included a 2.7% es
Slide 15: Technology
Technology Consulting & Services Software E-discovery Services & Expertise Ringtail® E-Discovery 8 • Managed Review Software countries • Computer Forensics • On-Premise Licensing • Authorized Provider of Ringtail®, • SaaS Subscriptions Radiance and Relativity Information Governance, Privacy & Securi
Slide 16: Technology (continued)
Technology (continued) Segment Offering Q1 2018 Key Financial Commentary The Technology segment is a leading provider of software and • Revenues decreased $5.2 million, or 11.2%, from Q1 2017 to Q1 2018, which consulting services for e-discovery and information management. included a 1.7% estimated
Slide 17: Strategic Communications Services
Strategic Communications Services • M&A Crisis Communications & Special Situations • Capital Markets Communications • • Corporate Reputation Public Affairs & Government Relations 16 countries • Employee Engagement & Change Communications • Digital & Creative Communications • Public Affairs 34 • Stra
Slide 18: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q1 2018 Key Financial Commentary The Strategic Communications segment provides a • Revenues increased $9.1 million, or 20.7%, from Q1 2017 to Q1 2018, comprehensive view of strategic communications with an which included a 6.6% estimated positive
Slide 19: Q1 2018: Awards & Accolades
Q1 2018: Awards & Accolades Global Arbitration Review ranked Compass Lexecon 1st on their inaugural Expert Witness Power Index Who’s Who Legal recognized 19 FTI Consulting professionals as Leading Forensic Accounting and Digital Forensic Experts Who’s Who Legal named 17 Construction Solutions profes
Slide 20: Financial Overview
Financial Overview
Slide 21: FY 2014 – Q1 2018 and FY 2018 Guidance: Revenues
FY 2014 – Q1 2018 and FY 2018 Guidance: Revenues $1,825-$1,875 21
Slide 22: FY 2014 – Q1 2018: Net Income and Adjusted EBITDA
FY 2014 – Q1 2018: Net Income and Adjusted EBITDA 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 comparable GAAP financial measure. 2
Slide 23: FY 2014 – Q1 2018 and FY 2018 Guidance: Earnings Per Diluted Share
FY 2014 – Q1 2018 and FY 2018 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $2.35-$2.65 $2.35-$2.65 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliations of Adjusted Earnings Per Diluted Sh
Slide 24: Select Cash Position and Capital Allocation
Q1 2018 and Full Year 2017, 2016 and 2015: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs Q1 2018 FY 2017 FY 2016 FY 2015 Cash and cash equivalents $ 152,044 $ 189,961 $ 216,158 $ 149,760 Accounts receivable, net $ 583,588 $ 522,878 $ 474,897 $ 499,784 Days sal
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 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net Income $ 38,945 $ 107,962 $ 85,520 $ 66,053 $ 58,807 Interest income and other 1,800 (3,752) (10,466) (3,232) (4,670) Interest expense 6,244 25,358 24,819 42,768 50,685 Income tax provision (be
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 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net income $38,945 $107,962 $85,520 $66,053 $58,807 Add back: Special charges — 40,885 10,445 —
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q1 2018 Net Income $38,945 Add back: Income tax provision 15,270 Interest income and other 1,800 Interest expense 6,244 Unallocated corporate expenses 23,888 Segment depreciation expense 6,864 Amortization of other intangib
Slide 29: 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) Q1 2018 FY 2017 FY 2016 FY 2015 Net cash provided by (used in) operating activities $(69,200) $147,625 $233,488 $139,920 Purchases of property and equipment (7,680) (32,004) (28,935) (31,399) Free
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: iim a ae
iim a ae CONSULTING | EXPERTS WITH IMPACT”