FTI Consulting Reports Fourth Quarter and Full Year 2024 Financial Results
FTI Consulting (NYSE: FCN) reported mixed financial results for Q4 and full year 2024. Full-year revenues reached a record $3.699 billion, up 6% from 2023, with growth across all segments. However, Q4 2024 revenues declined 3.2% to $894.9 million compared to the prior year quarter.
Full-year 2024 net income increased to $280.1 million from $274.9 million, with EPS of $7.81 compared to $7.71 in 2023. Q4 2024 showed significant decline with net income of $49.7 million versus $81.6 million in Q4 2023, and EPS of $1.38 versus $2.28.
The company announced a special charge of $8.2 million in Q4 2024 and expects an additional $17 million charge in Q1 2025, related to workforce reduction of approximately 4% of its 8,300 employees. For 2025, FCN projects revenues between $3.660-3.810 billion and Adjusted EPS of $7.80-8.60.
FTI Consulting (NYSE: FCN) ha riportato risultati finanziari misti per il quarto trimestre e l'intero anno 2024. I ricavi annuali hanno raggiunto un record di 3,699 miliardi di dollari, con un aumento del 6% rispetto al 2023, mostrando crescita in tutti i segmenti. Tuttavia, i ricavi del quarto trimestre 2024 sono diminuiti del 3,2% a 894,9 milioni di dollari rispetto allo stesso trimestre dell'anno precedente.
Il reddito netto dell'intero anno 2024 è aumentato a 280,1 milioni di dollari rispetto ai 274,9 milioni di dollari, con un utile per azione (EPS) di 7,81 dollari rispetto ai 7,71 dollari nel 2023. Il quarto trimestre 2024 ha mostrato un significativo calo con un reddito netto di 49,7 milioni di dollari rispetto agli 81,6 milioni di dollari nel quarto trimestre 2023, e un EPS di 1,38 dollari rispetto ai 2,28 dollari.
L'azienda ha annunciato un onere speciale di 8,2 milioni di dollari nel quarto trimestre 2024 e prevede un ulteriore onere di 17 milioni di dollari nel primo trimestre 2025, legato a una riduzione della forza lavoro di circa il 4% dei suoi 8.300 dipendenti. Per il 2025, FCN prevede ricavi compresi tra 3,660 e 3,810 miliardi di dollari e un EPS rettificato di 7,80-8,60 dollari.
FTI Consulting (NYSE: FCN) reportó resultados financieros mixtos para el cuarto trimestre y el año completo 2024. Los ingresos anuales alcanzaron un récord de 3.699 millones de dólares, un aumento del 6% en comparación con 2023, con crecimiento en todos los segmentos. Sin embargo, los ingresos del cuarto trimestre de 2024 disminuyeron un 3,2% a 894,9 millones de dólares en comparación con el mismo trimestre del año anterior.
El ingreso neto del año completo 2024 aumentó a 280,1 millones de dólares desde 274,9 millones de dólares, con un EPS de 7,81 dólares en comparación con 7,71 dólares en 2023. El cuarto trimestre de 2024 mostró una disminución significativa con un ingreso neto de 49,7 millones de dólares frente a 81,6 millones de dólares en el cuarto trimestre de 2023, y un EPS de 1,38 dólares frente a 2,28 dólares.
La compañía anunció un cargo especial de 8,2 millones de dólares en el cuarto trimestre de 2024 y espera un cargo adicional de 17 millones de dólares en el primer trimestre de 2025, relacionado con la reducción de la fuerza laboral de aproximadamente el 4% de sus 8.300 empleados. Para 2025, FCN proyecta ingresos entre 3.660 y 3.810 millones de dólares y un EPS ajustado de 7,80 a 8,60 dólares.
FTI Consulting (NYSE: FCN)은 2024년 4분기 및 전체 연도에 대한 혼합된 재무 결과를 보고했습니다. 연간 수익은 36억 9,900만 달러에 달해 2023년 대비 6% 증가했으며, 모든 부문에서 성장세를 보였습니다. 하지만 2024년 4분기 수익은 전년 동기 대비 3.2% 감소한 8억 9,490만 달러로 집계되었습니다.
2024년 전체 연도 순이익은 2억 8,010만 달러로 증가했으며, 2023년의 2억 7,490만 달러에서 상승하였습니다. 주당순이익(EPS)은 7.81달러로, 2023년의 7.71달러와 비교됩니다. 2024년 4분기는 순이익이 4,970만 달러로 감소하여 2023년 4분기의 8,160만 달러와 비교되며, EPS는 1.38달러로 2.28달러에 비해 낮아졌습니다.
회사는 2024년 4분기에 820만 달러의 특별 비용을 발표했으며, 2025년 1분기에 약 4%의 직원 감축과 관련하여 추가적으로 1,700만 달러의 비용이 발생할 것으로 예상하고 있습니다. 2025년에는 36억 6,000만에서 38억 1,000만 달러 사이의 수익과 7.80-8.60달러의 조정 EPS를 예상하고 있습니다.
FTI Consulting (NYSE: FCN) a rapporté des résultats financiers mitigés pour le quatrième trimestre et l'année entière 2024. Les revenus annuels ont atteint un record de 3,699 milliards de dollars, en hausse de 6 % par rapport à 2023, avec une croissance dans tous les segments. Cependant, les revenus du quatrième trimestre 2024 ont diminué de 3,2 % pour atteindre 894,9 millions de dollars par rapport au trimestre de l'année précédente.
Le revenu net pour l'année 2024 a augmenté à 280,1 millions de dollars contre 274,9 millions de dollars, avec un bénéfice par action (EPS) de 7,81 dollars contre 7,71 dollars en 2023. Le quatrième trimestre 2024 a montré une baisse significative avec un revenu net de 49,7 millions de dollars contre 81,6 millions de dollars au quatrième trimestre 2023, et un EPS de 1,38 dollar contre 2,28 dollars.
L'entreprise a annoncé une charge spéciale de 8,2 millions de dollars au quatrième trimestre 2024 et s'attend à une charge supplémentaire de 17 millions de dollars au premier trimestre 2025, liée à une réduction de la main-d'œuvre d'environ 4 % de ses 8 300 employés. Pour 2025, FCN prévoit des revenus compris entre 3,660 et 3,810 milliards de dollars et un EPS ajusté de 7,80 à 8,60 dollars.
FTI Consulting (NYSE: FCN) hat gemischte Finanzergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Die Jahresumsätze erreichten mit 3,699 Milliarden Dollar einen Rekord und stiegen um 6% im Vergleich zu 2023, mit Wachstum in allen Segmenten. Die Umsätze im vierten Quartal 2024 gingen jedoch im Vergleich zum Vorjahresquartal um 3,2% auf 894,9 Millionen Dollar zurück.
Der Nettogewinn für das gesamte Jahr 2024 stieg auf 280,1 Millionen Dollar von 274,9 Millionen Dollar, mit einem Gewinn pro Aktie (EPS) von 7,81 Dollar im Vergleich zu 7,71 Dollar im Jahr 2023. Im vierten Quartal 2024 zeigte sich ein erheblicher Rückgang mit einem Nettogewinn von 49,7 Millionen Dollar gegenüber 81,6 Millionen Dollar im vierten Quartal 2023, und einem EPS von 1,38 Dollar gegenüber 2,28 Dollar.
Das Unternehmen kündigte im vierten Quartal 2024 eine Sonderbelastung von 8,2 Millionen Dollar an und erwartet eine zusätzliche Belastung von 17 Millionen Dollar im ersten Quartal 2025, die mit einer Reduzierung der Belegschaft von etwa 4% seiner 8.300 Mitarbeiter verbunden ist. Für 2025 prognostiziert FCN Umsätze zwischen 3,660 und 3,810 Milliarden Dollar sowie einen bereinigten EPS von 7,80 bis 8,60 Dollar.
- Record full-year 2024 revenues of $3.699B, up 6% YoY
- Full-year net income increased to $280.1M from $274.9M
- Strong cash position with $660.5M in cash and no debt
- Expected cost savings of $70M in 2025 from restructuring
- Continued share repurchase program with $450.4M remaining
- Q4 2024 revenues declined 3.2% YoY to $894.9M
- Q4 2024 net income dropped 39% YoY to $49.7M
- Adjusted EBITDA margin decreased to 10.9% from 12.2%
- Workforce reduction of 4% with $25M in special charges
- Lower demand in Corporate Finance & Restructuring and Technology segments
Insights
FTI Consulting's latest financial results reveal significant strategic shifts amid market challenges. While achieving record full-year revenues of
The company's robust financial position is particularly noteworthy, with cash and short-term investments more than doubling to
Segment performance reveals important market dynamics: The Corporate Finance & Restructuring segment's
The 2025 guidance of
- Fourth Quarter 2024 Revenues of
$894.9 Million , Down3% Compared to$924.7 Million in Prior Year Quarter - Fourth Quarter 2024 EPS of
$1.38 and Adjusted EPS of$1.56 , Compared to EPS and Adjusted EPS of$2.28 in Prior Year Quarter - Record Full Year 2024 Revenues of
$3.69 9 Billion, Up6% Compared to$3.48 9 Billion in Prior Year - Record Full Year 2024 EPS of
$7.81 and Adjusted EPS of$7.99 , Compared to EPS and Adjusted EPS of$7.71 in Prior Year - Introduces 2025 Guidance
WASHINGTON, Feb. 20, 2025 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the full year and fourth quarter ended December 31, 2024.
For the full year 2024, revenues of
Full year 2024 earnings per diluted share ("EPS") of
Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, “Though a number of headwinds that we saw towards the end of 2024 resulted in second half performance that was below our expectations, we are pleased that, in aggregate, 2024 was yet another year of record revenues and earnings per share. Notwithstanding those headwinds, many of which we expect to persist into 2025, we continue to feel confident in the powerful multiyear growth trajectory that we are on.”
Cash Position and Capital Allocation
Net cash provided by operating activities of
Cash and cash equivalents and short-term investments of
During the quarter ended December 31, 2024, the Company repurchased 51,717 shares of its common stock at an average price per share of
Fourth Quarter 2024 Results
Fourth quarter 2024 revenues of
Fourth quarter 2024 EPS of
Fourth Quarter 2024 Segment Results
Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment decreased
Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased
Economic Consulting
Economic Consulting revenues of
Technology
Revenues in the Technology segment decreased
Strategic Communications
Strategic Communications segment revenues of
First Quarter 2025 Special Charge
The Company’s actions to align staffing with demand continued into the first quarter of 2025, resulting in an estimated first quarter special charge of approximately
2025 Guidance:
The Company estimates that revenues for full year 2025 will range between
Fourth Quarter and Full Year 2024 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss fourth quarter and full year 2024 financial results at 9:00 a.m. Eastern Time on Thursday, February 20, 2025. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company’s investor relations website here.
About FTI Consulting
FTI Consulting, Inc. is a leading global expert firm for organizations facing crisis and transformation, with more than 8,300 employees located in 34 countries and territories as of December 31, 2024. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated
Non-GAAP Financial Measures
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 generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures") under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures:
- Adjusted Segment EBITDA
- Adjusted EBITDA
- Adjusted EBITDA Margin
- Adjusted Net Income
- Adjusted Earnings per Diluted Share
We have included the definition of Segment Operating Income, which is a GAAP financial measure, below in order to more fully define the components of certain non-GAAP financial measures in the accompanying analysis of financial information. We define Segment Operating Income as a segment’s share of consolidated operating income. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects core operating performance and provides an indicator of the segment’s ability to generate cash.
We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, gain or loss on sale of a business and losses on early extinguishment of debt. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that these non-GAAP financial measures, considered along with corresponding GAAP financial measures, provide management and investors with useful supplemental information.
We define Adjusted Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and EPS, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt and the gain or loss on sale of a business. We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with useful supplemental information on our business operating results, including underlying trends.
Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Comprehensive Income. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.
Safe Harbor Statement
This press release 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-looking statements include statements concerning our plans, initiatives, projections, prospects, policies, processes and practices, objectives, goals, commitments, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions, share repurchases and other matters, business trends, new or changes to laws and regulations, including U.S. and foreign tax laws, scientific and technological developments, including relating to new and emerging technologies, such as Artificial Intelligence and machine learning, and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "commits," "aspires," "forecasts," "future," "goal," "seeks" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s plans, expectations, intentions, aspirations, beliefs, goals, estimates, forecasts and projections will result or be achieved. Our actual financial results, performance or achievements and outcomes could differ materially from those expressed in, or implied by, any forward-looking statements. Further, unaudited quarterly results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flows in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer; the mix of the geographic locations where our clients are located or where services are performed; fluctuations in the price per share of our common stock; adverse financial, real estate or other market and general economic conditions; the impact of public health crises and related events that are beyond our control, which could affect our segments, practices and the geographic regions in which we conduct business differently and adversely; and other future events, which could impact each of our segments, practices and the geographic regions in which we conduct business differently and could be outside of our control; the pace and timing of the consummation and integration of future acquisitions; the Company’s ability to realize cost savings and efficiencies; competitive and general economic conditions; retention of staff and clients; new laws and regulations or changes thereto; and other risks described under the heading "Item 1A, Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025 and in the Company’s other filings with the SEC. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.
FINANCIAL TABLES FOLLOW
| FTI CONSULTING, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) | ||||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 660,493 | $ | 303,222 | ||||
| Accounts receivable, net | 1,020,174 | 1,102,142 | ||||||
| Current portion of notes receivable | 44,894 | 30,997 | ||||||
| Prepaid expenses and other current assets | 93,953 | 119,092 | ||||||
| Total current assets | 1,819,514 | 1,555,453 | ||||||
| Property and equipment, net | 150,295 | 159,662 | ||||||
| Operating lease assets | 198,318 | 208,910 | ||||||
| Goodwill | 1,226,556 | 1,234,569 | ||||||
| Intangible assets, net | 16,770 | 18,285 | ||||||
| Notes receivable, net | 109,119 | 75,431 | ||||||
| Other assets | 76,258 | 73,568 | ||||||
| Total assets | $ | 3,596,830 | $ | 3,325,878 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable, accrued expenses and other | $ | 224,394 | $ | 223,758 | ||||
| Accrued compensation | 639,745 | 601,074 | ||||||
| Billings in excess of services provided | 67,620 | 67,937 | ||||||
| Total current liabilities | 931,759 | 892,769 | ||||||
| Noncurrent operating lease liabilities | 208,036 | 223,774 | ||||||
| Deferred income taxes | 111,825 | 140,976 | ||||||
| Other liabilities | 86,920 | 86,939 | ||||||
| Total liabilities | 1,338,540 | 1,344,458 | ||||||
| Stockholders’ equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 359 | 355 | ||||||
| Additional paid-in capital | 39,650 | 16,760 | ||||||
| Retained earnings | 2,394,853 | 2,114,765 | ||||||
| Accumulated other comprehensive loss | (176,572 | ) | (150,460 | ) | ||||
| Total stockholders’ equity | 2,258,290 | 1,981,420 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,596,830 | $ | 3,325,878 | ||||
| FTI CONSULTING, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| (Unaudited) | |||||||
| Revenues | $ | 894,924 | $ | 924,684 | |||
| Operating expenses | |||||||
| Direct cost of revenues | 624,864 | 613,809 | |||||
| Selling, general and administrative expenses | 208,051 | 194,634 | |||||
| Special charges | 8,230 | — | |||||
| Amortization of intangible assets | 1,034 | 1,220 | |||||
| 842,179 | 809,663 | ||||||
| Operating income | 52,745 | 115,021 | |||||
| Other income (expense) | |||||||
| Interest income and other | 7,779 | (8,088 | ) | ||||
| Interest expense | (716 | ) | (3,896 | ) | |||
| 7,063 | (11,984 | ) | |||||
| Income before income tax provision | 59,808 | 103,037 | |||||
| Income tax provision | 10,098 | 21,404 | |||||
| Net income | $ | 49,710 | $ | 81,633 | |||
| Earnings per common share ― basic | $ | 1.41 | $ | 2.34 | |||
| Weighted average common shares outstanding ― basic | 35,317 | 34,889 | |||||
| Earnings per common share ― diluted | $ | 1.38 | $ | 2.28 | |||
| Weighted average common shares outstanding ― diluted | 35,855 | 35,778 | |||||
| Other comprehensive income (loss), net of tax | |||||||
| Foreign currency translation adjustments, net of tax expense of $— and $— | $ | (41,713 | ) | $ | 28,244 | ||
| Total other comprehensive income (loss), net of tax | (41,713 | ) | 28,244 | ||||
| Comprehensive income | $ | 7,997 | $ | 109,877 | |||
| FTI CONSULTING, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) | |||||||
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenues | $ | 3,698,652 | $ | 3,489,242 | |||
| Operating expenses | |||||||
| Direct cost of revenues | 2,516,726 | 2,354,216 | |||||
| Selling, general and administrative expenses | 822,151 | 751,306 | |||||
| Special charges | 8,230 | — | |||||
| Amortization of intangible assets | 4,183 | 6,159 | |||||
| 3,351,290 | 3,111,681 | ||||||
| Operating income | 347,362 | 377,561 | |||||
| Other income (expense) | |||||||
| Interest income and other | 10,360 | (4,867 | ) | ||||
| Interest expense | (6,951 | ) | (14,331 | ) | |||
| 3,409 | (19,198 | ) | |||||
| Income before income tax provision | 350,771 | 358,363 | |||||
| Income tax provision | 70,683 | 83,471 | |||||
| Net income | $ | 280,088 | $ | 274,892 | |||
| Earnings per common share ― basic | $ | 7.96 | $ | 8.10 | |||
| Weighted average common shares outstanding ― basic | 35,208 | 33,924 | |||||
| Earnings per common share ― diluted | $ | 7.81 | $ | 7.71 | |||
| Weighted average common shares outstanding ― diluted | 35,845 | 35,646 | |||||
| Other comprehensive income (loss), net of tax | |||||||
| Foreign currency translation adjustments, net of tax expense of $— and $— | $ | (26,112 | ) | $ | 26,262 | ||
| Total other comprehensive income (loss), net of tax | (26,112 | ) | 26,262 | ||||
| Comprehensive income | $ | 253,976 | $ | 301,154 | |||
| FTI CONSULTING, INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND EPS TO ADJUSTED EPS (in thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net income | $ | 49,710 | $ | 81,633 | $ | 280,088 | $ | 274,892 | |||||||
| Add back: | |||||||||||||||
| Special charges | 8,230 | — | 8,230 | — | |||||||||||
| Tax impact of special charges | (1,857 | ) | — | (1,857 | ) | — | |||||||||
| Adjusted Net Income | $ | 56,083 | $ | 81,633 | $ | 286,461 | $ | 274,892 | |||||||
| Earnings per common share — diluted | $ | 1.38 | $ | 2.28 | $ | 7.81 | $ | 7.71 | |||||||
| Add back: | |||||||||||||||
| Special charges | 0.23 | — | 0.23 | — | |||||||||||
| Tax impact of special charges | (0.05 | ) | — | (0.05 | ) | — | |||||||||
| Adjusted earnings per common share — diluted | $ | 1.56 | $ | 2.28 | $ | 7.99 | $ | 7.71 | |||||||
| Weighted average number of common shares outstanding ― diluted | 35,855 | 35,778 | 35,845 | 35,646 | |||||||||||
| FTI CONSULTING, INC. RECONCILIATION OF EPS GUIDANCE TO ADJUSTED EPS GUIDANCE | ||||||||
| Year Ended December 31, 2025 | ||||||||
| Low | High | |||||||
| Guidance on estimated earnings per common share—diluted (GAAP)(1) | $ | 7.44 | $ | 8.24 | ||||
| Special charges | 0.48 | 0.48 | ||||||
| Tax impact of special charges | (0.12 | ) | (0.12 | ) | ||||
| Guidance on estimated adjusted earnings per common share (non-GAAP)(1) | $ | 7.80 | $ | 8.60 | ||||
(1) The forward-looking guidance on estimated 2025 EPS and Adjusted EPS does not reflect other gains and losses (all of which would be excluded from Adjusted EPS) related to the future impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, the gain or loss on sale of a business or losses on early extinguishment of debt, as these items are dependent on future events that are uncertain and difficult to predict.
| FTI CONSULTING, INC. RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED SEGMENT EBITDA AND ADJUSTED EBITDA (in thousands) | |||||||||||||||||||||||
| Three Months Ended December 31, 2024 (Unaudited) | Corporate Finance & Restructuring | Forensic and Litigation Consulting | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
| Net income | $ | 49,710 | |||||||||||||||||||||
| Interest income and other | (7,779 | ) | |||||||||||||||||||||
| Interest expense | 716 | ||||||||||||||||||||||
| Income tax provision | 10,098 | ||||||||||||||||||||||
| Operating income | $ | 36,096 | $ | 14,305 | $ | 14,393 | $ | 1,275 | $ | 12,534 | $ | (25,858 | ) | $ | 52,745 | ||||||||
| Depreciation of property and equipment | 2,587 | 1,704 | 1,407 | 4,623 | 910 | 503 | 11,734 | ||||||||||||||||
| Amortization of intangible assets | 736 | 229 | — | — | 69 | — | 1,034 | ||||||||||||||||
| Special charges | 5,326 | 1,785 | 8 | 667 | 295 | 149 | 8,230 | ||||||||||||||||
| Adjusted EBITDA | $ | 44,745 | $ | 18,023 | $ | 15,808 | $ | 6,565 | $ | 13,808 | $ | (25,206 | ) | $ | 73,743 | ||||||||
| Year EndedDecember 31, 2024 | Corporate Finance & Restructuring | Forensic and Litigation Consulting | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
| Net income | $ | 280,088 | |||||||||||||||||||||
| Interest income and other | (10,360 | ) | |||||||||||||||||||||
| Interest expense | 6,951 | ||||||||||||||||||||||
| Income tax provision | 70,683 | ||||||||||||||||||||||
| Operating income | $ | 225,711 | $ | 77,490 | $ | 104,090 | $ | 41,875 | $ | 45,790 | $ | (147,594 | ) | $ | 347,362 | ||||||||
| Depreciation of property and equipment | 10,251 | 6,604 | 5,400 | 15,999 | 3,607 | 2,049 | 43,910 | ||||||||||||||||
| Amortization of intangible assets | 3,068 | 838 | — | — | 277 | — | 4,183 | ||||||||||||||||
| Special charges | 5,326 | 1,785 | 8 | 667 | 295 | 149 | 8,230 | ||||||||||||||||
| Adjusted EBITDA | $ | 244,356 | $ | 86,717 | $ | 109,498 | $ | 58,541 | $ | 49,969 | $ | (145,396 | ) | $ | 403,685 | ||||||||
| FTI CONSULTING, INC. RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED SEGMENT EBITDA AND ADJUSTED EBITDA (in thousands) | |||||||||||||||||||||||
| Three Months Ended December 31, 2023 (Unaudited) | Corporate Finance & Restructuring | Forensic and Litigation Consulting | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
| Net income | $ | 81,633 | |||||||||||||||||||||
| Interest income and other | 8,088 | ||||||||||||||||||||||
| Interest expense | 3,896 | ||||||||||||||||||||||
| Income tax provision | 21,404 | ||||||||||||||||||||||
| Operating income | $ | 61,779 | $ | 17,415 | $ | 36,801 | $ | 8,393 | $ | 14,703 | $ | (24,070 | ) | $ | 115,021 | ||||||||
| Depreciation of property and equipment | 2,597 | 1,680 | 1,534 | 3,992 | 875 | 475 | 11,153 | ||||||||||||||||
| Amortization of intangible assets | 1,010 | 152 | — | — | 58 | — | 1,220 | ||||||||||||||||
| Adjusted EBITDA | $ | 65,386 | $ | 19,247 | $ | 38,335 | $ | 12,385 | $ | 15,636 | $ | (23,595 | ) | $ | 127,394 | ||||||||
| Year EndedDecember 31, 2023 | Corporate Finance & Restructuring | Forensic and Litigation Consulting | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
| Net income | $ | 274,892 | |||||||||||||||||||||
| Interest income and other | 4,867 | ||||||||||||||||||||||
| Interest expense | 14,331 | ||||||||||||||||||||||
| Income tax provision | 83,471 | ||||||||||||||||||||||
| Operating income | $ | 216,504 | $ | 81,296 | $ | 109,818 | $ | 48,196 | $ | 47,167 | $ | (125,420 | ) | $ | 377,561 | ||||||||
| Depreciation of property and equipment | 9,254 | 6,030 | 5,989 | 14,515 | 3,445 | 1,846 | 41,079 | ||||||||||||||||
| Amortization of intangible assets | 5,079 | 783 | — | — | 297 | — | 6,159 | ||||||||||||||||
| Adjusted EBITDA | $ | 230,837 | $ | 88,109 | $ | 115,807 | $ | 62,711 | $ | 50,909 | $ | (123,574 | ) | $ | 424,799 | ||||||||
| FTI CONSULTING, INC. OPERATING RESULTS BY BUSINESS SEGMENT | |||||||||||||||||||
| Segment Revenues | Adjusted EBITDA | Adjusted EBITDA Margin | Utilization | Average Billable Rate | Billable Headcount | ||||||||||||||
| (in thousands) | (at period end) | ||||||||||||||||||
| Three Months Ended December 31, 2024(Unaudited) | |||||||||||||||||||
| Corporate Finance & Restructuring | $ | 335,713 | $ | 44,745 | 13.3 | % | 52 | % | $ | 527 | 2,286 | ||||||||
| Forensic and Litigation Consulting | 175,863 | 18,023 | 10.2 | % | 55 | % | $ | 392 | 1,542 | ||||||||||
| Economic Consulting | 206,103 | 15,808 | 7.7 | % | 60 | % | $ | 610 | 1,110 | ||||||||||
| Technology(1) | 90,645 | 6,565 | 7.2 | % | N/M | N/M | 714 | ||||||||||||
| Strategic Communications(1) | 86,600 | 13,808 | 15.9 | % | N/M | N/M | 981 | ||||||||||||
| $ | 894,924 | $ | 98,949 | 11.1 | % | 6,633 | |||||||||||||
| Unallocated Corporate | (25,206 | ) | |||||||||||||||||
| Adjusted EBITDA | $ | 73,743 | 8.2 | % | |||||||||||||||
| Year EndedDecember 31, 2024 | |||||||||||||||||||
| Corporate Finance & Restructuring | $ | 1,391,206 | $ | 244,356 | 17.6 | % | 58 | % | $ | 510 | 2,286 | ||||||||
| Forensic and Litigation Consulting | 690,211 | 86,717 | 12.6 | % | 57 | % | $ | 390 | 1,542 | ||||||||||
| Economic Consulting | 863,557 | 109,498 | 12.7 | % | 66 | % | $ | 584 | 1,110 | ||||||||||
| Technology(1) | 417,637 | 58,541 | 14.0 | % | N/M | N/M | 714 | ||||||||||||
| Strategic Communications(1) | 336,041 | 49,969 | 14.9 | % | N/M | N/M | 981 | ||||||||||||
| $ | 3,698,652 | $ | 549,081 | 14.8 | % | 6,633 | |||||||||||||
| Unallocated Corporate | (145,396 | ) | |||||||||||||||||
| Adjusted EBITDA | $ | 403,685 | 10.9 | % | |||||||||||||||
| Three Months Ended December 31, 2023(Unaudited) | |||||||||||||||||||
| Corporate Finance & Restructuring | $ | 365,554 | $ | 65,386 | 17.9 | % | 61 | % | $ | 503 | 2,215 | ||||||||
| Forensic and Litigation Consulting | 165,469 | 19,247 | 11.6 | % | 56 | % | $ | 391 | 1,447 | ||||||||||
| Economic Consulting | 206,091 | 38,335 | 18.6 | % | 65 | % | $ | 586 | 1,089 | ||||||||||
| Technology(1) | 100,933 | 12,385 | 12.3 | % | N/M | N/M | 628 | ||||||||||||
| Strategic Communications(1) | 86,637 | 15,636 | 18.0 | % | N/M | N/M | 971 | ||||||||||||
| $ | 924,684 | $ | 150,989 | 16.3 | % | 6,350 | |||||||||||||
| Unallocated Corporate | (23,595 | ) | |||||||||||||||||
| Adjusted EBITDA | $ | 127,394 | 13.8 | % | |||||||||||||||
| Year EndedDecember 31, 2023 | |||||||||||||||||||
| Corporate Finance & Restructuring | $ | 1,346,678 | $ | 230,837 | 17.1 | % | 60 | % | $ | 494 | 2,215 | ||||||||
| Forensic and Litigation Consulting | 654,105 | 88,109 | 13.5 | % | 57 | % | $ | 386 | 1,447 | ||||||||||
| Economic Consulting | 771,374 | 115,807 | 15.0 | % | 67 | % | $ | 547 | 1,089 | ||||||||||
| Technology(1) | 387,855 | 62,711 | 16.2 | % | N/M | N/M | 628 | ||||||||||||
| Strategic Communications(1) | 329,230 | 50,909 | 15.5 | % | N/M | N/M | 971 | ||||||||||||
| $ | 3,489,242 | $ | 548,373 | 15.7 | % | 6,350 | |||||||||||||
| Unallocated Corporate | (123,574 | ) | |||||||||||||||||
| Adjusted EBITDA | $ | 424,799 | 12.2 | % | |||||||||||||||
N/M Not meaningful
(1) The majority of the Technology and Strategic Communications segments' revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.
| FTI CONSULTING, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
| Year Ended December 31 | |||||||
| 2024 | 2023 | ||||||
| Operating activities | |||||||
| Net income | $ | 280,088 | $ | 274,892 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation of property and equipment | 43,910 | 41,079 | |||||
| Amortization of intangible assets | 4,183 | 6,159 | |||||
| Amortization of notes receivable | 51,621 | 27,784 | |||||
| Provision for expected credit losses | 50,315 | 35,149 | |||||
| Share-based compensation | 38,436 | 29,534 | |||||
| Deferred income taxes | (16,605 | ) | (25,453 | ) | |||
| Acquisition-related contingent consideration | (779 | ) | 3,818 | ||||
| Amortization of debt issuance costs and other | 1,082 | 1,925 | |||||
| Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
| Accounts receivable, billed and unbilled | 18,340 | (229,296 | ) | ||||
| Notes receivable | (99,892 | ) | (50,703 | ) | |||
| Prepaid expenses and other assets | (2,810 | ) | 7,606 | ||||
| Accounts payable, accrued expenses and other | 12,875 | 8,687 | |||||
| Income taxes | (29,441 | ) | 29,335 | ||||
| Accrued compensation | 43,503 | 50,186 | |||||
| Billings in excess of services provided | 271 | 13,759 | |||||
| Net cash provided by operating activities | 395,097 | 224,461 | |||||
| Investing activities | |||||||
| Purchases of property and equipment and other | (35,408 | ) | (49,479 | ) | |||
| Purchase and maturity of short-term investment | 25,246 | (24,356 | ) | ||||
| Net cash used in investing activities | (10,162 | ) | (73,835 | ) | |||
| Financing activities | |||||||
| Borrowings under revolving line of credit | 600,000 | 835,000 | |||||
| Repayments under revolving line of credit | (600,000 | ) | (835,000 | ) | |||
| Repayment of convertible notes | — | (315,763 | ) | ||||
| Purchase and retirement of common stock | (10,217 | ) | (20,982 | ) | |||
| Share-based compensation tax withholdings | (19,021 | ) | (16,375 | ) | |||
| Proceeds on stock option exercises | 10,887 | 1,297 | |||||
| Deposits and other | 2,968 | (2,840 | ) | ||||
| Net cash used in financing activities | (15,383 | ) | (354,663 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (12,281 | ) | 15,571 | ||||
| Net increase (decrease) in cash and cash equivalents | 357,271 | (188,466 | ) | ||||
| Cash and cash equivalents, beginning of period | 303,222 | 491,688 | |||||
| Cash and cash equivalents, end of period | $ | 660,493 | $ | 303,222 | |||
FTI Consulting, Inc.
555 12th Street NW Washington, DC 20004
+1.202.312.9100
Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791 mollie.hawkes@fticonsulting.com
FAQ
What were FCN's Q4 2024 financial results?
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