Slide 1: FTI Consulting, Inc. Third Quarter 2015 Earnings Conference Call
FTI Consulting, Inc. Third Quarter 2015 Earnings Conference Call
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- lo
Slide 3: Today's Speakers
Today’s Speakers Steven Gunby David Johnson President & Chief Executive Officer Chief Financial Officer 3
Slide 4: Financial Review
Third Quarter 2015 Financial Review All numbers in $000s, except for per share data and percentages Q3 2015 Q2 2015 % Variance Q3 2014 % Variance Revenues $ 455,470 $ 449,137 1.4% $ 451,178 1.0% Fully Diluted Earnings Per Share $ 0.25 $ 0.52 (51.9%) $ 0.55 (54.5%) Adjusted Earnings Per Diluted Share
Slide 5: Segment Financial Review
Third Quarter 2015 Segment Financial Review All numbers in $000s, except for percentages Q3 2015 Q2 2015 % Variance Q3 2014 % Variance Corporate Finance & Restructuring Revenue $ 113,487 $ 109,113 4.0% $ 100,041 13.4% (1) Adjusted Segment EBITDA $ 26,662 $ 22,032 21.0% $ 15,534 71.6% (1) Adjusted Se
Slide 6: Geographic Review
Third Quarter 2015 Geographic Review Percentage of Revenues Revenue Growth Region Q3 2015 Q2 2015 Q3 2014 Q3 2015 vs. Q2 2015 Q3 2015 vs. Q3 2014 North America 74.2% 73.4% 72.5% 1.1% 2.3% EMEA 17.7% 17.5% 18.0% 1.1% (1.7%) Asia Pacific 5.8% 6.1% 6.7% (4.9%) (13.4%) Latin America 2.3% 3.0% 2.8% (23.3
Slide 7: Cash Position/Capital Allocation
Third Quarter 2015 Cash Position/Capital Allocation All numbers in $000s except for DSOs Year to Date Year to Date Year to Date Q3 2015 Q2 2015 Q3 2014 Cash and cash equivalents $ 104,974 $ 239,988 $ 178,778 Accounts receivable, net 554,400 549,300 565,657 Days sales outstanding ("DSO") 105 104 107
Slide 8: Corporate Finance, Forensic and Strategic Communications Adjusted EBITDA 2009 to 2013
Third Quarter 2015 Corporate Finance & Restructuring, Forensic and Litigation Consulting and Strategic Communications Adjusted EBITDA from 2009 to 2013 Adjusted Segment EBITDA (in millions) $280 $274 $260 Average Decline: $28M per year $240 $220 $213 $200 $160 $184 $182 $180 $160 $160 $108 $76 $140
Slide 9: Even eliminating the restructuring bubble, these businesses showed no growth
Third Quarter 2015 Even eliminating the restructuring bubble, these businesses collectively showed no growth over the better part of a decade Adjusted Segment EBITDA (in millions) $280 $274 $260 $240 $230 $220 $213 $200 $160 $184 $182 $180 $171 $100 $160 $160 $108 $60 $76 $140 $96 $67 $120 $100 $78
Slide 10: These same businesses grew ~5% in 2014
Third Quarter 2015 These same businesses grew ~5% in 2014 Adjusted Segment EBITDA (in millions) $280 $274 $260 $230 $240 $220 $213 $200 +5% $160 $184 $182 $171 $180 $100 $168 $160 $160 $108 $60 $76 $55 $140 $96 $67 $120 $100 $78 $80 $67 $89 $76 $81 $90 $60 $61 $74 $40 $20 $44 $52 $25 $29 $27 $25 $23
Slide 11: And are projected to grow between 8-11% collectively in 15
Third Quarter 2015 And are projected to grow between 8-11% collectively in 2015 Adjusted Segment EBITDA (in millions) $280 $274 $260 $240 $230 $220 $213 $200 $160 $186 $184 $182 182 $180 $171 $100 Range $168 $160 $182 $160 $108 $140 $60 $76 $55 $96 $67 $120 $100 $78 $80 $67 $89 $76 $81 $90 $60 $61 $
Slide 12: Economic Consulting and Technology Adjusted EBITDA 2007 to 2013
Third Quarter 2015 Economic Consulting and Technology Adjusted EBITDA 2007 to 2013 Adjusted Segment EBITDA (in millions) $160 $153 $150 $144 $140 $134 $130 $123 $120 $113 $111 $110 $105 $67 $92 $100 $59 $77 $90 $48 $49 $80 $48 $70 $60 $50 $40 $77 $30 $63 $64 $64 $61 $57 $57 $20 $10 $0 2007 2008 2009
Slide 13: Economic Consulting and Technology were down ~20% Adjusted EBITDA in 2014
Third Quarter 2015 Economic Consulting and Technology were down ~20% Adjusted EBITDA in 2014 Adjusted Segment EBITDA (in millions) -20% $160 $153 $150 $144 $140 $134 $130 $123 $123 $120 $113 $111 $110 $105 $67 $92 $100 $59 $77 $59 $90 $48 $49 $80 $48 $70 $60 $50 $40 $77 $30 $63 $64 $64 $61 $64 $57 $
Slide 14: Economic Consulting and Technology anticipated to drop sharply again in 2015
Third Quarter 2015 We believe Economic Consulting and Technology are anticipated to drop sharply again in 2015 Adjusted Segment EBITDA (in millions) $160 $153 $150 $144 $140 $134 $130 $123 $123 $120 $113 $111 $110 $105 $67 $107 $92 98 $100 Range $59 $77 $59 $90 $48 $49 $98 $80 $48 $70 $60 $50 $40 $7
Slide 15: Question & Answer Session
Third Quarter 2015 Question & Answer Session Q&A 15
Slide 16: Financial Tables
im F. Fo suirind Financial Tables
Slide 17: Condensed Consolidated Statements of Comprehensive Loss: Three Months Ended September 30, 2015 and 2014
Condensed Consolidated Statements of Comprehensive Loss: Three Months Ended September 30, 2015 and 2014 All numbers in $000s, except for per share data Three Months Ended September 30, 2015 (unaudited) 2014 (unaudited) Revenues $455,470 $451,178 Operating expenses Direct cost of revenues 301,609 293
Slide 18: Condensed Consolidated Statements of Comprehensive Income: Nine Months Ended September 30, 2015 and 2014
Condensed Consolidated Statements of Comprehensive Income: Nine Months Ended September 30, 2015 and 2014 All numbers in $000s, except for per share data Nine Months Ended September 30, 2015 (unaudited) 2014 (unaudited) Revenues $1,336,945 $1,331,054 Operating expenses Direct cost of revenues 872,108
Slide 19: Operating Results by Business Segment: Three Months Ended September 30, 2015 and 2014
Operating Results by Business Segment: Three Months Ended September 30, 2015 and 2014 All numbers in $000s, except for bill rate per hour and headcount data Three Months Ended September 30, 2015 Adjusted Adjusted Segment Average Billable Revenue-Generating (1) (1) Revenues EBITDA EBITDA Margin Utili
Slide 20: Operating Results by Business Segment: Nine Months Ended September 30, 2015 and 2014
Operating Results by Business Segment: Nine Months Ended September 30, 2015 and 2014 All numbers in $000s, except for bill rate per hour and headcount data Nine Months Ended September 30, 2015 Adjusted Adjusted Segment Average Billable Revenue-Generating (1) Revenues EBITDA EBITDA Margin(1) Utilizat
Slide 21: Reconciliation of Non-GAAP Financial Measures: Three Months Ended September 30, 2015 and 2014
Reconciliation of Non-GAAP Financial Measures: Three Months Ended September 30, 2015 and 2014 All numbers in $000s, except for per share data Three Months Ended September 30, 2015 2014 Net income $10,309 $22,522 Special charges, net of tax effect - 3,154 Remeasurement of acquisition-related continge
Slide 22: Reconciliation of Non-GAAP Financial Measures: Nine Months Ended September 30, 2015 and 2014
Reconciliation of Non-GAAP Financial Measures: Nine Months Ended September 30, 2015 and 2014 All numbers in $000s, except for per share data Nine Months Ended September 30, 2015 2014 Net income $55,704 $57,886 Special charges, net of tax effect - 8,676 Remeasurement of acquisition-related contingent
Slide 23: Reconciliation to Adjusted EBITDA: Three Months Ended September 30, 2015 and 2014
Reconciliation of Net Income and Operating Income to Adjusted EBITDA: Three Months Ended September 30, 2015 and 2014 All numbers in $000s Three Months Ended September 30, 2015 Corporate Finance & Forensic and Litigation Economic Strategic Unallocated Restructuring Consulting Consulting Technology Co
Slide 24: Reconciliation to Adjusted EBITDA: Nine Months Ended September 30, 2015 and 2014
Reconciliation of Net Income and Operating Income to Adjusted EBITDA: Nine Months Ended September 30, 2015 and 2014 All numbers in $000s Nine Months Ended September 30, 2015 Corporate Finance & Forensic and Litigation Economic Strategic Unallocated Restructuring Consulting Consulting Technology Comm
Slide 25: Reconciliation to Adjusted EBITDA: Year Ended December 31, 2014 and 2013
Reconciliation of Net Income and Operating Income (Loss) to Adjusted EBITDA: Year Ended December 31, 2014 and 2013 All numbers in $000s Year Ended December 31, 2014 Corporate Finance & Forensic and Litigation Economic Strategic Unallocated Restructuring Consulting Consulting Technology Communication
Slide 26: Reconciliation to Adjusted EBITDA: Year Ended December 31, 2012 and 2011
Reconciliation of Net Income and Operating Income (Loss) to Adjusted EBITDA: Year Ended December 31, 2012 and 2011 All numbers in $000s Year Ended December 31, 2012 Corporate Finance & Forensic and Litigation Economic Strategic Unallocated Restructuring Consulting Consulting Technology Communication
Slide 27: Reconciliation to Adjusted EBITDA: Year Ended December 31, 2010 and 2009
Reconciliation of Net Income and Operating Income to Adjusted EBITDA: Year Ended December 31, 2010 and 2009 All numbers in $000s Year Ended December 31, 2010 Corporate Finance & Forensic and Litigation Economic Strategic Unallocated Restructuring Consulting Consulting Technology Communications Corpo
Slide 28: Reconciliation to Adjusted EBITDA: Year Ended December 31, 2008 and 2007
Reconciliation of Net Income and Operating Income to Adjusted EBITDA: Year Ended December 31, 2008 and 2007 All numbers in $000s Year Ended December 31, 2008 Corporate Finance & Forensic and Litigation Economic Strategic Unallocated Restructuring Consulting Consulting Technology Communications Corpo
Slide 29: End Notes: FTI Consulting Non-GAAP Data Reconciliations
End Notes FTI Consulting Non-GAAP Data Reconciliations We define Adjusted Net Income and Adjusted Earnings per Diluted Share (“Adjusted EPS”) as Net Income and Earnings Per Diluted Share, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special cha
Slide 30: Appendix
im F. Fo suirind Appendix
Slide 31: Awards & Accolades
Third Quarter 2015 Awards & Accolades Who’s Who Legal: Asset Recovery 2015 and FTI Consulting’s Strategic Communications segment in Global Investigations Review recognized six FTI the Asia Pacific region awarded a gold SABRE Award Consulting professionals as world leading from The Holmes Report for
Slide 32: Critical Thinking at the Critical Time
Critical Thinking at the Critical Time ™