Slide 1: FTI Consulting, Inc. Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation May 2017
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 FTI Consulting is a leading global business advisory firm with strong people and strong positions; corporations, law firms and governments come to FTI Consulting when there is a critical need Organic growth strategy with an emphasis on profitable revenue growth Committed to buildin
Slide 4: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FCN Publicly Traded $1.7BLN Equity Market Capitalization1 1982 Year Founded 4,700+ Total Employees Worldwide 430+ 81 9 2 Nobel Senior Managing Directors Offices in 81 Cities Around the Globe 9 Specialized Industry Practice Groups Laureates 10/10 Advisor to World’s
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 Canada Calgary Toronto Asia Pacific Vancouver Australia Indonesia United States Brisbane Jakarta Annapolis New Yor
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 Adjusted Segment EBITDA
Segment Snapshot: Revenues and Adjusted Segment EBITDA Q1 2017 Segment Revenues Q1 2017 Total Adjusted Segment EBITDA¹ 10% 8% 18% 24% 10% 14% 24% 31% 25% 36% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications ¹See accompanying
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services Clients Business Transformation Corporations/C-Suite Turnaround & Restructuring Boards of Directors Interim Management Equity Sponsors Transactions Secured Lenders Valuation & Financial Advisory Services Unsecured Creditors Dispute Advisory Tax Services 201
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q1 2017 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on Revenues decreased $21.3 million, or 16.7%, to $105.9 million for strategic, operational, financial and capital needs of the three months ended Mar
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services Forensic Accounting & Advisory Services Health Solutions Global Risk and Investigations Practice (“GRIP”) Clients Dispute Advisory Services Corporations Intellectual Property Boards of Directors Trial Services Governments Data & Analytics Law Firms Complia
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering Q1 2017 Key Financial Commentary The Forensic and Litigation Consulting segment provides a Revenues decreased $7.6 million, or 6.4%, to $111.4 million for the complete range of multidisciplinary, independent dispute three months ended M
Slide 12: Economic Consulting
Economic Consulting Services Antitrust & Competition Economics Center for Healthcare Economics and Policy Business Valuation Network Analysis Intellectual Property Economic Impact Analysis International Arbitration Clients Labor & Employment Corporations Public Policy Government Entities Regulated I
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q1 2017 Key Financial Commentary The Economic Consulting segment, including subsidiary Revenues increased $8.5 million, or 6.5%, to $139.2 million for the Compass Lexecon, provides analysis of complex economic three months ended March 31, 2017, which
Slide 14: Technology
Technology Software & Services Clients Ringtail E-Discovery Software Corporations E-Discovery Management Government Agencies Managed Document Review Law Firms Collections & Computer Forensics Information Governance & Compliance Services FTI Investigations 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q1 2017 Key Financial Commentary The Technology segment is a leading provider of software Revenues decreased $2.2 million, or 4.5%, to $46.1 million for the and consulting services for e-discovery and information three months ended March 31, 2017, which includ
Slide 16: Strategic Communications
Strategic Communications Services Clients M&A Crisis Communications & Special Situations CEOs Capital Markets Communications CFOs Corporate Reputation Chief Communications Officers Public Affairs & Government Relations Investor Relations Officers Employee Engagement & Change Communications Boards of
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q1 2017 Key Financial Commentary The Strategic Communications segment provides a Revenues decreased $1.4 million, or 3.1%, to $43.7 million for the comprehensive view of strategic communications with an three months ended March 31, 2017, which in
Slide 18: First Quarter 2017 and Full Year 2016 Awards & Accolades
First Quarter 2017 and Full Year 2016 Awards & Accolades Forbes magazine named FTI Consulting to their inaugural list of America’s Best Management Consulting Firms in 17 categories (2016) Corporate Counsel names FTI Consulting a Top Service Provider in the Legal Industry and as the #1 Provider for C
Slide 19: Awards & Accolades (continued)
First Quarter 2017 and Full Year 2016 Awards & Accolades (continued) Fourteen FTI Consulting professionals recognized as Leading Forensic Accountants and Digital Forensic Experts by Who’s Who Legal: Investigations 2017 list (2017) Sixteen FTI Consulting professionals recognized as Leading Constructi
Slide 20: Financial Overview
i Tal CONSULTING Financial Overview
Slide 21: FY 2012 – Q1 2017 and FY 2017 Guidance: Revenues
FY 2012 – Q1 2017 and FY 2017 Guidance: Revenues Revenues $2,100 $1,775 - $1,875 $1,779 $1,810 $1,756 $1,750 $1,652 $1,577 $1,400 ($ Millions) $1,050 $700 $446.3 $350 $0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Q1 2017 FY 2017 Guidance 21
Slide 22: FY 2012 – Q1 2017: Net Income and Adjusted EBITDA
FY 2012 – Q1 2017: Net Income and Adjusted EBITDA $100.0 Net Income $85.5 $80.0 $66.1 $58.8 $60.0 ($ Millions) $40.0 $20.0 $14.0 $0.0 ($20.0) ($10.6) ($40.0) ($37.0) ($60.0) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Q1 2017 $300.0 Adjusted EBITDA¹ $245.8 $245.5 $250.0 $210.6 $205.8 $203.0 ($ Millions)
Slide 23: GAAP and Adjusted Earnings Per Share
FY 2012 – Q1 2017 and FY 2017 Guidance: GAAP and Adjusted Earnings Per Share $2.50 GAAP Earnings Per Share $1.75-$2.10 $2.05 $2.00 $1.58 $1.44 $1.50 $1.00 $0.50 $0.34 $0.00 ($0.50) ($0.27) ($1.00) ($0.92) ($1.50) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Q1 2017 FY 2017 Guidance Adjusted Earnings Per
Slide 24: Financial Profile
Financial Profile (in thousands, except for DSOs) Q1 2017 FY 2016 FY 2015 FY 2014 Cash and cash equivalents $ 120,959 $ 216,158 $ 149,760 $ 283,680 Accounts receivable, net $ 526,180 $ 474,897 $ 499,784 $ 485,101 Days sales outstanding ("DSO") 98 91 97 97 Net cash provided by operating ($ 93,087) $
Slide 25: Financial Tables: Reconciliations of Non-GAAP Financial Measures
Financial Tables Reconciliations of Non-GAAP Financial Measures
Slide 26: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) Q1 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Net Income (Loss) $ 14,016 $ 85,520 $ 66,053 $ 58,807 $ (10,594) $ (36,986) Interest income and other (605) (10,466) (3,232) (4,670) (1,748) (5,659) Interest expense 5,801 24,819 42,
Slide 27: Reconciliations to Adjusted Net Income and Adjusted Earnings Per Share
Reconciliations of Net Income (Loss) to Adjusted Net Income and Earnings (Loss) Per Share to Adjusted Earnings Per Share (in thousands, except for per share data) Q1 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Net income (loss) $14,016 $85,520 $66,053 $58,807 ($10,594) ($36,986) Add back: Special c
Slide 28: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q1 2017 Net Income $ 14,016 Add back: Income tax provision 7,877 Interest income and other (605) Interest expense 5,801 Unallocated corporate expenses 19,053 Segment depreciation expense 7,216 Amortization of other intangib
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 2017 FY 2016 FY 2015 FY 2014 Net cash provided by (used in) operating activities $ (93,087) $ 233,488 $ 139,920 $ 135,401 Purchases of property and equipment (5,831) (28,935) (31,399) (39,256) F
Slide 30: End Notes: FTI Consulting Non-GAAP Data Reconciliations
End Notes: FTI Consulting Non-GAAP Data Reconciliations In the accompanying analysis of financial information, 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 GAAP. Certain o
Slide 31: Experts with Impact
i Tal CONSULTING Experts with Impact