Slide 1: FTI Consulting, Inc. Current Investor Presentation
FTI Consulting, Inc. Current Investor Presentation August 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 $2.9BLN Equity Market 1982 4,600+ Publicly Year Founded Total Employees Traded Capitalization1 Worldwide 480+ 76 9 2 Nobel Senior Managing Directors Offices in 76 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 ¹Affiliate 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 Q2 2018 Segment Revenues Q2 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 8: 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 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q2 2018 Key Financial Commentary The Corporate Finance & Restructuring segment focuses on • Revenues increased $23.9 million, or 20.3%, from Q2 2017 to Q2 2018, strategic, operational, financial and capital needs of businesses by which i
Slide 10: Forensic & Litigation Consulting Services
Forensic & Litigation Consulting Services Risk Advisory Disputes 1,065 • Anti-Corruption Investigations • Construction Solutions professionals & Compliance • Dispute Advisory Services • Compliance, Monitoring & • Financial Services Receivership • Global Insurance Services • Data & Analytics • Health
Slide 11: Forensic & Litigation Consulting (continued)
Forensic & Litigation Consulting (continued) Segment Offering Q2 2018 Key Financial Commentary The Forensic & Litigation Consulting segment provides a complete • Revenues increased $22.1 million, or 19.9%, from Q2 2017 to Q2 2018. range of multidisciplinary, independent dispute advisory, The increas
Slide 12: Economic Consulting Services
Economic Consulting Services • Antitrust & Competition • Network Analysis Economics • Public Policy 15 • Business Valuation • Regulated Industries countries • Center for Healthcare • Securities Litigation & Economics and Policy Risk Management • Economic Impact Analysis • Intellectual Property • Int
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering Q2 2018 Key Financial Commentary The Economic Consulting segment, including subsidiary Compass • Revenues increased $9.3 million, or 7.5%, from Q2 2017 to Q2 2018, Lexecon, provides analysis of complex economic issues. We help which included a 1.6% es
Slide 14: Technology
Technology Consulting & Services Software E-discovery Services & Expertise Ringtail® E-Discovery 8 Software countries • Managed Review • Computer Forensics • On-Premise Licensing • Authorized Provider of Ringtail®, Radiance and Relativity • SaaS Subscriptions Information Governance, Privacy & Securi
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q2 2018 Key Financial Commentary The Technology segment is a leading provider of software and • Revenues increased $0.9 million, or 1.9%, from Q2 2017 to Q2 2018. This consulting services for e-discovery and information management. increase was primarily due t
Slide 16: Strategic Communications Services
Strategic Communications Services • M&A Crisis Communications & Special Situations • Capital Markets Communications • Corporate Reputation • • Public Affairs & Government Relations Employee Engagement & Change Communications 16 countries • Digital & Creative Communications • Public Affairs • Strateg
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q2 2018 Key Financial Commentary The Strategic Communications segment provides a • Revenues increased $11.2 million, or 24.3%, from Q2 2017 to Q2 2018, comprehensive view of strategic communications with an which included a 3.5% estimated positiv
Slide 18: Second Quarter 2018 Awards & Accolades
Second Quarter 2018 Awards & Accolades FTI Consulting named to Forbes magazine’s list of America's Best Management Consulting Firms for the third consecutive year in 18 sectors and functional areas FTI Consulting named an industry leader in 14 categories in the 2018 Best of Corporate Counsel survey,
Slide 19: Financial Overview
Financial Overview
Slide 20: FY 2014 – Q2 2018 and FY 2018 Guidance: Revenues
FY 2014 – Q2 2018 and FY 2018 Guidance: Revenues $1,910-$1,960 20
Slide 21: FY 2014 – Q2 2018: Net Income and Adjusted EBITDA
FY 2014 – Q2 2018: Net Income and Adjusted EBITDA Adjusted EBITDA1 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 fin
Slide 22: FY 2014 – Q2 2018 and FY 2018 Guidance: Earnings Per Diluted Share
FY 2014 – Q2 2018 and FY 2018 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $2.90-$3.30 Adjusted Earnings Per Diluted Share1 $2.90-$3.30 ¹See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation
Slide 23: Select Cash Position and Capital Allocation
Q2 2018, Q1 2018, and Q2 2017: Select Cash Position and Capital Allocation All numbers in thousands, except for DSOs Q2 2018 Q1 2018 Q2 2017 Cash and cash equivalents $ 116,556 $ 152,044 $ 138,511 Accounts receivable, net $ 607,455 $ 583,588 $ 553,215 Days sales outstanding ("DSO") 101 95 103 Net ca
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) Q2 2018 Q1 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net Income $ 43,609 $ 38,945 $ 107,962 $ 85,520 $ 66,053 $ 58,807 Interest income and other (2,474) 1,800 (3,752) (10,466) (3,232) (4,670) Interest expense 6,583 6,244 25,358 24,819 42,768
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) Q2 2018 Q1 2018 FY 2017 FY 2016 FY 2015 FY 2014 Net income $43,609 $38,945 $107,962 $85,520 $66,053 $58,807 Add back: Special charges —
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q2 2018 Net Income $43,609 Add back: Income tax provision 14,113 Interest income and other (2,474) Interest expense 6,583 Unallocated corporate expenses 25,882 Segment depreciation expense 7,574 Amortization of other intang
Slide 28: 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) Q2 2018 Q1 2018 Q2 2017 Net cash provided by (used in) operating activities $34,615 $(69,200) $10,887 Purchases of property and equipment (8,540) (7,680) (7,296) Free Cash Flow1 $26,075 $(76,880) $
Slide 29: 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 30: iim a ae
iim a ae CONSULTING | EXPERTS WITH IMPACT”