Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — FY2022 Earnings Presentation
31 slides from Fti Consulting's earnings presentation, March 2023
Slide 1: Investor Presentation – FTI Consulting, Inc.
Investor Presentation FTI Consulting, Inc. March 2023
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: 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 $6.1B 1982 7,600+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 700+ 85 18 S
Slide 4: Our Global Reach
Our Global Reach With offices in 85 cities and 31 countries, 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 Asia Australia Arg
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 & Environmental Corporate Finance & Solutions Restructuring ▪ Data & Analytics ▪ Business Transformation & ▪ Disputes Strategy ▪ Health Solutions ▪ Transactions ▪ Risk and Investigations ▪ Turnaround & Re
Slide 7: Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA
Segment Snapshot: Segment Revenues and Total Adjusted Segment EBITDA FY 2022 Segment Revenues FY 2022 Total Adjusted Segment EBITDA (1) 9% 11% 11% 10% 36% 44% 23% 21% 21% 14% Corporate Finance & Restructuring Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Business Transformation & Strategy – Enterprise Transformation – Environmental, Social and Governance 22 (“ESG”) & Sustainability countries – Office of the CFO & Finance Transformation – People & Change – Revenue & Operations – Strategy – Technology Trans
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering FY 2022 Key Financial Commentary Our Corporate Finance & Restructuring ▪ Revenues increased $149.6 million, or 15.9%, from 2021 to 2022, which included a 2.7% segment focuses on the strategic, estimated negative impact from FX. Acquisiti
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Construction & Environmental Solutions 1,584 – Asset Lifecycle Management – Capital Program Risk Management – Cost Analytics and Auditing Services ▪ Data & Analytics professionals – Anti-Corruption and Anti-Money Laundering – Dispute Resolutions, Investi
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering FY 2022 Key Financial Commentary Our Forensic and Litigation Consulting segment provides law firms, companies, ▪ Revenues increased $53.6 million, or 9.2%, to $638.5 million from 2021 to 2022, which boards of directors, government entit
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Merger & Acquisition (“M&A”)-Related Antitrust 18 – Non-M&A-related Antitrust countries ▪ Financial Economics – Contractual Claims – Rate Setting – Securities Litigation & Risk Management – Transfer Pricing – Valuation ▪ Internationa
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering FY 2022 Key Financial Commentary Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides ▪ Revenues decreased $2.2 million, or 0.3%, to $695.2 million from 2021 to 2022, which law firms, companies, government entities inclu
Slide 14: Technology
Technology Services ▪ Corporate Legal Department Consulting 17 – Advisory on Governance, Policy, Standards and Execution – Advisory on Operational Efficiencies – Contract Services countries – Legal Technology Selection and Implementation – Subscriptions and Managed Services ▪ E-discovery Services an
Slide 15: Technology (continued)
Technology (continued) Segment Offering FY 2022 Key Financial Commentary Our Technology segment provides companies, law firms, private equity firms ▪ Revenues increased $32.6 million, or 11.4%, to $320.0 million from 2021 to 2022, which and government entities with a included a 2.4% estimated negati
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation – Crisis & Issues Management – Cybersecurity & Data Privacy Communications 19 – Digital, Analytics & Insights countries – ESG & Sustainability – Litigation Communications – People & Transformation ▪ Financial Communications – Corporate Governa
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering FY 2022 Key Financial Commentary Our Strategic Communications segment develops and executes communications ▪ Revenues increased $19.0 million, or 7.1%, from 2021 to 2022, which included a 5.9% strategies to help management teams, estimated negati
Slide 18: Select Awards & Accolades
Fourth Quarter 2022 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 2018 – FY 2023 Guidance: Revenues
FY 2018 – FY 2023 Guidance: Revenues $3,330 - $3,470 21
Slide 22: FY 2018 – FY 2022: Net Income and Adjusted EBITDA
FY 2018 – FY 2022: 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 23: FY 2018 – FY 2023 Guidance: Earnings per Diluted Share and Adjusted EPS
FY 2018 – FY 2023 Guidance: Earnings per Diluted Share and Adjusted Earnings per Diluted Share Earnings per Diluted Share $6.80 - $7.70 (1) Adjusted Earnings per Diluted Share(1) $6.80 - $7.70 (1) See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the d
Slide 24: Select Cash Position and Capital Allocation
Full Year 2022, 2021 and 2020: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO 2022 2021 2020 Cash and cash equivalents $ 491,688 $ 494,485 $ 294,953 Accounts receivable, net $ 896,153 $ 754,120 $ 711,357 Days sales outstanding (“DSO”) (1) 97 94 95 Net cash provi
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 2022 FY 2021 FY 2020 FY 2019 FY 2018 Net income $ 235,514 $ 234,966 $ 210,682 $ 216,726 $ 150,611 Income tax provision 62,235 62,981 51,764 71,724 57,181 Interest income and other (3,918) (6,193) 412 (2,061) (4,977) Interest expense 1
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 2022 FY 2021 FY 2020 FY 2019 FY 2018 Net income $ 235,514 $ 234,966 $ 210,682 $ 216,726 $ 150,611 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 2022 Net income $ 235,514 Add back: Income tax provision 62,235 Interest income and other (3,918) Interest expense 10,047 Unallocated corporate expenses 124,830 Segment depreciation expense 32,876 Amortization of intangi
Slide 29: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in thousands) FY 2022 FY 2021 FY 2020 Net cash provided by operating activities $ 188,794 $ 355,483 $ 327,069 Purchases of property and equipment (53,098) (68,569) (34,866) Free Cash Flow (1) $ 135,696 $ 286,914 $ 292,203
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”