Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Investor Presentation (March 2020)
31 slides from Fti Consulting's investor presentation, March 2020
Slide 1: Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation March 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 FCN $4.1BLN 1982 5,500+ Publicly Equity Market Year Founded Total Employees Traded Capitalization1 Worldwide 550+ 82 9 Fortune 1000 Senior Managing Cities Around the 9 Specialized Industry Company Directors Globe Practice Groups 8/10 96/100 53/100 Advisor to 8 of
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 FY 2019 Segment Revenues FY 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 • Company Advisory • Carve-outs • Executive Compensation 15 • Creditor Advisory countries • Transactions • Interim Management • Transaction Services • Contentious Insolvency • Investment Banking & • Dispute Advisory/ Transaction Opinions 45
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering FY 2019 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on Revenues increased $159.2 million, or 28.2%, from 2018 to 2019, which strategic, operational, financial and capital needs of businesses by included
Slide 10: Forensic and Litigation Consulting Services
Forensic and Litigation Consulting Services • Forensic Accounting & Advisory Services 1,351 • Global Risk & Investigations Practice professionals • Cybersecurity • 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 FY 2019 Key Financial Commentary The Forensic & Litigation Consulting segment provides a complete Revenues increased $57.4 million, or 11.0%, from 2018 to 2019. The range of multidisciplinary, independent dispute advisory, increase in r
Slide 12: Economic Consulting Services
Economic Consulting Services • Antitrust & Competition Economics • Non-M&A-related Antitrust • M&A-related Antitrust 17 • Financial Economics countries • Valuation • Securities Litigation & Risk Management • International Arbitration • Regulated Industries • Intellectual Property • Labor & Employmen
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering FY 2019 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass Revenues increased $58.6 million, or 11.0%, from 2018 to 2019, which Lexecon, provides analysis of complex economic issues. We help included a 1.3% estimate
Slide 14: Technology Services
Technology Services 10 • E-discovery and Data Compliance Management countries • Managed Document Review • Digital Forensics • Information Governance, Privacy & Security • Contract Intelligence 31 361 offices professionals 2015 2016 2017 2018 2019 Segment Revenues $218,599 $177,720 $174,850 $185,755
Slide 15: Technology (continued)
Technology (continued) Segment Offering FY 2019 Key Financial Commentary Our Technology segment provides corporations and law firms Revenues increased $29.8 million, or 16.1%, from 2018 to 2019, which with a comprehensive and global portfolio of consulting and included a 1.0% estimated negative impa
Slide 16: Strategic Communications Services
Strategic Communications Services • Corporate Reputation 728 • Public Affairs & Government Relations professionals • Capital Markets Communications • Crisis Communications • Transaction Communications • Digital, Analytics & Insights 35 17 offices countries 2015 2016 2017 2018 2019 Segment Revenues $
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering FY 2019 Key Financial Commentary The Strategic Communications segment provides a Revenues increased $19.8 million, or 8.8%, from 2018 to 2019, which comprehensive view of strategic communications with an included a 2.7% estimated negative impact
Slide 18: Fourth Quarter 2019: Select Awards & Accolades
Fourth Quarter 2019: Select Awards & Accolades Communications Firm Restructuring Deal of the Best End-To-End E-Discovery Corporate Restructuring of the Year Year Provider Firm of the Year The M&A Advisor Middle Markets & Large Washington D.C. market Turnaround, Restructuring & Global M&A Network Leg
Slide 19: Financial Overview
Financial Overview
Slide 20: FY 2015 – FY 2020 Guidance: Revenues
FY 2015 – FY 2020 Guidance: Revenues $2,450-$2,550 20
Slide 21: FY 2015 – FY 2019: Net Income and Adjusted EBITDA
FY 2015 – FY 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: FY 2015 – FY 2020 Guidance: Earnings Per Diluted Share and Adjusted EPS
FY 2015 – FY 2020 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $5.32-$5.82 Adjusted Earnings Per Diluted Share (1) $5.50-$6.00 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliations of Adju
Slide 23: Select Cash Position and Capital Allocation
Full Year 2019, 2018 and 2017: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs FY 2019 FY 2018 FY 2017 Cash and cash equivalents $ 369,373 $ 312,069 $ 189,961 Accounts receivable, net $ 693,372 $ 554,608 $ 522,878 Days sales outstanding ("DSO") (1) 97 93 91 Net
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) FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Net Income $ 216,726 $ 150,611 $ 107,962 $ 85,520 $ 66,053 Income tax provision (benefit) 71,724 57,181 (20,857) 42,283 39,333 Interest income and other (2,061) (4,977) (3,752) (10,466) (3,232) Int
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) FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Net income $216,726 $150,611 $107,962 $85,520 $66,053 Add back: Special charges — — 40,885 10,4
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) FY 2019 Net Income $216,726 Add back: Income tax provision 71,724 Interest income and other (2,061) Interest expense 19,206 Unallocated corporate expense 98,398 Segment depreciation expense 27,369 Amortization of intangible
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) FY 2019 FY 2018 FY 2017 Net cash provided by operating activities $217,886 $230,672 $147,625 Purchases of property and equipment (42,072) (32,270) (32,004) Free Cash Flow (1) $175,814 $198,402 $115,621 1See
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) $5.32 $5.82 Non-cash interest expense on convertible notes, net of tax 0.18 0.18 Guidance on estimated adjusted earnings
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
Te F sulting EXPERTS WITH IMPACT™