Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Investor Presentation (March 2024)
31 slides from Fti Consulting's investor presentation, March 2024
Slide 1: Investor Presentation – FTI Consulting, Inc.
Investor Presentation FTI Consulting, Inc. February 2024 March 2024
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, that involve uncertainties and risks. Forward-look
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 $7.9B 1982 7,900+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 760+ 83 20 S
Slide 4: Our Global Reach
Our Global Reach With offices in 83 cities and 31 countries and territories, 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, Africa As
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 Forensic and Litigation Consulting ▪ Construction, Projects, Assets & Corporate Finance & Environmental Solutions Restructuring ▪ Data & Analytics ▪ Business Transformation ▪ Disputes ▪ Strategy ▪ Healthcare Risk Management & ▪ Transactions Advisory ▪ Tu
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA FY 2023 Segment Revenues FY 2023 Total Adjusted Segment EBITDA (1) 9% 9% 11% 12% 39% 42% 22% 21% 19% 16% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications (
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services 26 ▪ Business Transformation – Enterprise Transformation – Office of the CFO & Finance Transformation – People & Change countries and – Revenue & Operations territories – Technology Transformation ▪ Strategy – Commercial Diligence – Commercial Excellence –
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering 2023 Key Financial Commentary Our Corporate Finance & Restructuring ▪ Revenues increased $199.6 million, or 17.4%, to $1,346.7 million for the year ended segment focuses on the strategic, December 31, 2023, primarily due to increased dem
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction, Projects, Assets & Environmental Solutions – Environmental Dispute Resolution – Expert Services in Delay, Disruption, Quantum & Damages – Project Delivery and Asset Management Advisory & Transformation ▪ Data & Analytics – – Anti-corruption
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering 2023 Key Financial Commentary Our Forensic and Litigation Consulting segment provides law firms, companies, ▪ Revenues increased $74.2 million, or 12.8%, to $654.1 million for the year ended December boards of directors, government enti
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – M&A-related Antitrust 19 – Non-M&A-related Antitrust ▪ Financial Economics countries – Contractual Claims – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation ▪ International Arbitration – Business
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering 2023 Key Financial Commentary Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides ▪ Revenues increased $76.2 million, or 11.0%, to $771.4 million for the year ended December law firms, companies, government entities 31,
Slide 14: Technology
Technology Services ▪ Corporate Legal Department Consulting – Advisory on Governance, Policy, Standards and Execution – Advisory on Operational Efficiencies – Contract Services 18 – Legal Technology Selection and Implementation – Subscriptions and Managed Services countries ▪ E-discovery Services an
Slide 15: Technology (continued)
Technology (continued) Segment Offering 2023 Key Financial Commentary Our Technology segment provides companies, law firms, private equity firms ▪ Revenues increased $67.9 million, or 21.2%, to $387.9 million for the year ended December and government entities with a 31, 2023, primarily due to incre
Slide 16: Strategic Communications Services
Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Cybersecurity & Data Privacy Communications 971 – Digital, Analytics & Insights professionals – ESG & Sustainability – Litigation Communications – People & Transformation ▪ Financial Communications – Corporate Go
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering 2023 Key Financial Commentary Our Strategic Communications segment develops and executes communications ▪ Revenues increased $42.6 million, or 14.8%, to $329.2 million for the year ended December strategies to help management teams, 31, 2023, pri
Slide 18: Fourth Quarter 2023 – Select Awards & Accolades
Fourth Quarter 2023 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 strive to do our part in addressing clima
Slide 20: Financial Overview
Financial Overview im F. F usulrind
Slide 21: FY 2019 – FY 2024 Guidance: Revenues
FY 2019 – FY 2024 Guidance: Revenues $3,650 - $3,790 21
Slide 22: FY 2019 – FY 2023: Net Income and Adjusted EBITDA
FY 2019 – FY 2023: Net Income and Adjusted EBITDA Net income $274.9 Adjusted EBITDA (1) (2) (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 d
Slide 23: FY 2019 – FY 2024 Guidance: Earnings per Diluted Share
FY 2019 – FY 2024 Guidance: Earnings per Diluted Share and Adjusted Earnings per Diluted Share $7.75 - $8.50 (1) $7.75 - $8.50 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earnings per Diluted Shar
Slide 24: Select Cash Position and Capital Allocation
Full Year 2023, 2022 and 2021: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO 2023 2022 2021 Cash and cash equivalents $ 303,222 $ 491,688 $ 494,485 Accounts receivable, net $ 1,102,142 $ 896,153 $ 754,120 Short-term investments (1) $ 25,461 $ — $ — Days sales o
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) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Net income $ 274,892 $ 235,514 $ 234,966 $ 210,682 $ 216,726 Income tax provision 83,471 62,235 62,981 51,764 71,724 Interest income and other (2) 4,867 (3,918) (6,193) 412 (2,061) Interest expense
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) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Net income $ 274,892 $ 235,514 $ 234,966 $ 210,682 $ 216,726 Add back: Special charges — 8,340
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) FY 2023 Net income $ 274,892 Add back: Income tax provision 83,471 Interest income and other 4,867 Interest expense 14,331 Unallocated corporate expenses 125,420 Segment depreciation expense 39,233 Amortization of intangibl
Slide 29: 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 2023 FY 2022 FY 2021 Net cash provided by operating activities $ 224,461 $ 188,794 $ 355,483 Purchases of property and equipment (49,562) (53,098) (68,569) Free Cash Flow (1) $ 174,899 $ 135,696 $ 286,914
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
im F, TY CONSULTING Experts with Impact” 31