FTI Consulting Reports Record Second Quarter 2024 Financial Results
FTI Consulting (NYSE: FCN) reported record second quarter 2024 financial results. Highlights include:
- Q2 2024 revenues of $949.2 million, up 10% from $864.6 million in Q2 2023
- Q2 2024 EPS of $2.34, up 34% from $1.75 in Q2 2023
- Net income increased to $83.9 million from $62.4 million in Q2 2023
- Adjusted EBITDA of $115.9 million, or 12.2% of revenues
The company raised its full year 2024 guidance:
- Revenue range: $3.700 billion to $3.790 billion
- EPS range: $8.10 to $8.60
Growth was primarily driven by higher demand in Corporate Finance & Restructuring, Economic Consulting, and Technology segments.
FTI Consulting (NYSE: FCN) ha riportato risultati finanziari record per il secondo trimestre del 2024. I punti salienti includono:
- Ricavi del Q2 2024 di 949,2 milioni di dollari, in aumento del 10% rispetto a 864,6 milioni di dollari nel Q2 2023
- EPS del Q2 2024 di 2,34 dollari, in aumento del 34% rispetto a 1,75 dollari nel Q2 2023
- Utile netto aumentato a 83,9 milioni di dollari rispetto a 62,4 milioni di dollari nel Q2 2023
- EBITDA rettificato di 115,9 milioni di dollari, ovvero il 12,2% dei ricavi
La società ha rivisto al rialzo le previsioni per l'intero anno 2024:
- Fascia di ricavi: 3,700 miliardi a 3,790 miliardi di dollari
- Fascia di EPS: 8,10 a 8,60 dollari
La crescita è stata principalmente guidata da una maggiore domanda nei segmenti di Corporate Finance & Restructuring, Consulenza Economica e Tecnologia.
FTI Consulting (NYSE: FCN) informó sobre resultados financieros récord para el segundo trimestre de 2024. Los aspectos destacados incluyen:
- Ingresos del Q2 2024 de 949,2 millones de dólares, un aumento del 10% en comparación con 864,6 millones de dólares en el Q2 2023
- EPS del Q2 2024 de 2,34 dólares, un aumento del 34% en comparación con 1,75 dólares en el Q2 2023
- Ingreso neto aumentado a 83,9 millones de dólares desde 62,4 millones de dólares en el Q2 2023
- EBITDA ajustado de 115,9 millones de dólares, o el 12,2% de los ingresos
La compañía ha elevado sus previsiones para todo el año 2024:
- Rango de ingresos: 3,700 mil millones a 3,790 mil millones de dólares
- Rango de EPS: 8,10 a 8,60 dólares
El crecimiento fue impulsado principalmente por una mayor demanda en los segmentos de Finanzas Corporativas y Reestructuración, Consultoría Económica y Tecnología.
FTI Consulting (NYSE: FCN)는 2024년 2분기 기록적인 재무 결과를 발표했습니다. 주요 내용은 다음과 같습니다:
- 2024년 2분기 매출 9억 4,920만 달러, 2023년 2분기 8억 6,460만 달러에서 10% 증가
- 2024년 2분기 주당순이익(EPS) 2.34달러, 2023년 2분기 1.75달러에서 34% 증가
- 순이익 8,390만 달러로 증가, 2023년 2분기 6,240만 달러에서 향상
- 조정된 EBITDA 1억 1,590만 달러, 매출의 12.2%
회사는 2024년 연간 가이던스를 상향 조정했습니다:
- 매출 범위: 37억 달러에서 37억 9천만 달러
- EPS 범위: 8.10달러에서 8.60달러
성장은 주로 기업 금융 및 구조조정, 경제 컨설팅 및 기술 부문에서의 수요 증가에 의해 주도되었습니다.
FTI Consulting (NYSE: FCN) a annoncé des résultats financiers records pour le deuxième trimestre 2024. Les points forts incluent :
- Revenus du T2 2024 de 949,2 millions de dollars, en hausse de 10 % par rapport à 864,6 millions de dollars au T2 2023
- BPA du T2 2024 de 2,34 dollars, en hausse de 34 % par rapport à 1,75 dollars au T2 2023
- Le bénéfice net a augmenté à 83,9 millions de dollars contre 62,4 millions de dollars au T2 2023
- EBITDA ajusté de 115,9 millions de dollars, soit 12,2 % des revenus
L'entreprise a révisé à la hausse ses prévisions pour l'année 2024:
- Plage de revenus : 3,700 milliards à 3,790 milliards de dollars
- Plage de BPA : 8,10 à 8,60 dollars
La croissance a été principalement soutenue par une demande accrue dans les segments des Finances Corporatives & Restructuration, du Conseil Économique et de la Technologie.
FTI Consulting (NYSE: FCN) hat rekordverdächtige Finanzzahlen für das zweite Quartal 2024 veröffentlicht. Die Highlights sind:
- Q2 2024 Umsatz von 949,2 Millionen Dollar, ein Anstieg um 10% im Vergleich zu 864,6 Millionen Dollar im Q2 2023
- Q2 2024 EPS von 2,34 Dollar, ein Anstieg um 34% im Vergleich zu 1,75 Dollar im Q2 2023
- Nettogewinn gestiegen auf 83,9 Millionen Dollar von 62,4 Millionen Dollar im Q2 2023
- Bereinigtes EBITDA von 115,9 Millionen Dollar, oder 12,2% des Umsatzes
Das Unternehmen hat seine Prognose für das gesamte Jahr 2024 angehoben:
- Umsatzspanne: 3,700 Milliarden bis 3,790 Milliarden Dollar
- EPS-Spanne: 8,10 bis 8,60 Dollar
Das Wachstum wurde hauptsächlich durch eine höhere Nachfrage in den Bereichen Unternehmensfinanzierung & Restrukturierung, Wirtschaftliche Beratung und Technologie getrieben.
- Record Q2 2024 revenues of $949.2 million, up 10% year-over-year
- Q2 2024 EPS increased 34% to $2.34
- Net income grew to $83.9 million from $62.4 million in Q2 2023
- Adjusted EBITDA improved to $115.9 million, or 12.2% of revenues
- Company raised full year 2024 guidance for both revenue and EPS
- Strong performance in Corporate Finance & Restructuring, Economic Consulting, and Technology segments
- Net cash provided by operating activities increased to $135.2 million from -$11.0 million in Q2 2023
- Forensic and Litigation Consulting segment saw a decrease in Adjusted Segment EBITDA despite revenue growth
- Strategic Communications segment experienced a slight decrease in Adjusted Segment EBITDA
FTI Consulting's Q2 2024 results demonstrate robust financial performance and positive momentum. Revenues increased by
The EPS surge of
The increase in Adjusted EBITDA margin from
The raised full-year guidance is a strong vote of confidence from management. The new revenue range of
However, investors should note the segment-specific challenges, such as lower restructuring revenues in Corporate Finance & Restructuring and decreased demand for investigations services in Forensic and Litigation Consulting. These could be areas to watch in future quarters.
FTI Consulting's Q2 results offer valuable insights into current market trends. The
The
Interestingly, the Corporate Finance & Restructuring segment saw lower restructuring revenues, which might suggest a decrease in corporate distress. However, the segment's overall growth indicates a shift towards business transformation and strategy services, reflecting evolving corporate priorities in the current economic landscape.
The Strategic Communications segment's modest
These trends collectively paint a picture of a business environment characterized by strategic realignment, technological integration and heightened regulatory scrutiny, particularly in M&A activities. For investors, this suggests potential opportunities in sectors aligned with these trends.
- Second Quarter 2024 Revenues of
$949.2 Million , Up10% Compared to$864.6 Million in Prior Year Quarter - Second Quarter 2024 EPS of
$2.34 , Up34% Compared to$1.75 in Prior Year Quarter - Company Raises Full Year 2024 Revenue and EPS Guidance Ranges to Reflect Record First Half of 2024
WASHINGTON, July 25, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the second quarter ended June 30, 2024.
Second quarter 2024 revenues of
Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, "Our terrific results this quarter and in the first quarter together delivered an exceptional first half of the year. To us, these results, in the face of complicated economic times, show the power of our multiyear commitment to continue to attract and support talented professionals who are committed to making a difference for our clients."
Cash Position and Capital Allocation
Net cash provided by operating activities of
Cash and cash equivalents of
There were no share repurchases during the quarter ended June 30, 2024. As of June 30, 2024, approximately
Second Quarter 2024 Segment Results
Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment increased
Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased
Economic Consulting
Revenues in the Economic Consulting segment increased
Technology
Revenues in the Technology segment increased
Strategic Communications
Revenues in the Strategic Communications segment increased
2024 Guidance
After a record first half of 2024, the Company is raising its full year 2024 guidance ranges for revenues and EPS. The Company now estimates that revenues for full year 2024 will range between
Second Quarter 2024 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss second quarter 2024 financial results at 9:00 a.m. Eastern Time on Thursday, July 25, 2024. 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 global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 8,000 employees located in 33 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. 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:
- Total Segment Operating Income
- Adjusted EBITDA
- Total Adjusted Segment EBITDA
- Adjusted EBITDA Margin
- Adjusted Net Income
- Adjusted Earnings per Diluted Share
We have included the definitions of Segment Operating Income and Adjusted Segment EBITDA, which are GAAP financial measures, below in order to more fully define the components of certain non-GAAP financial measures presented in this press release. We define Segment Operating Income as a segment’s share of consolidated operating income. We define Total Segment Operating Income, which is a non-GAAP financial measure, as the total of Segment Operating Income for all segments, which excludes unallocated corporate expenses. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA. 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 current core operating performance and provides an indicator of the segment’s ability to generate cash.
We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. 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 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 additional information for comparison of our operating results with the operating results of other companies. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues.
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, non-cash interest expense on convertible notes 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 an additional understanding of 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 Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows. 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, environmental, social and governance ("ESG")-related issues, climate change-related matters, 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, 2023 filed with the SEC on February 22, 2024 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.
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
FINANCIAL TABLES FOLLOW
FTI CONSULTING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) | |||||||
June 30, | December 31, | ||||||
2024 | 2023 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 226,428 | $ | 303,222 | |||
Accounts receivable, net | 1,190,521 | 1,102,142 | |||||
Current portion of notes receivable | 45,145 | 30,997 | |||||
Prepaid expenses and other current assets | 107,117 | 119,092 | |||||
Total current assets | 1,569,211 | 1,555,453 | |||||
Property and equipment, net | 152,307 | 159,662 | |||||
Operating lease assets | 202,511 | 208,910 | |||||
Goodwill | 1,230,932 | 1,234,569 | |||||
Intangible assets, net | 18,377 | 18,285 | |||||
Notes receivable, net | 106,201 | 75,431 | |||||
Other assets | 78,105 | 73,568 | |||||
Total assets | $ | 3,357,644 | $ | 3,325,878 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable, accrued expenses and other | $ | 182,667 | $ | 223,758 | |||
Accrued compensation | 463,669 | 601,074 | |||||
Billings in excess of services provided | 67,558 | 67,937 | |||||
Total current liabilities | 713,894 | 892,769 | |||||
Long-term debt | 60,000 | — | |||||
Noncurrent operating lease liabilities | 214,517 | 223,774 | |||||
Deferred income taxes | 136,374 | 140,976 | |||||
Other liabilities | 83,479 | 86,939 | |||||
Total liabilities | 1,208,264 | 1,344,458 | |||||
Stockholders’ equity | |||||||
Preferred stock, outstanding | — | — | |||||
Common stock, issued and outstanding — 35,902 (2024) and 35,521 (2023) | 359 | 355 | |||||
Additional paid-in capital | 33,955 | 16,760 | |||||
Retained earnings | 2,278,677 | 2,114,765 | |||||
Accumulated other comprehensive loss | (163,611 | ) | (150,460 | ) | |||
Total stockholders’ equity | 2,149,380 | 1,981,420 | |||||
Total liabilities and stockholders’ equity | $ | 3,357,644 | $ | 3,325,878 | |||
FTI CONSULTING, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) | |||||||
Three Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(Unaudited) | |||||||
Revenues | $ | 949,156 | $ | 864,591 | |||
Operating expenses | |||||||
Direct cost of revenues | 637,749 | 588,094 | |||||
Selling, general and administrative expenses | 206,235 | 186,371 | |||||
Amortization of intangible assets | 1,080 | 1,417 | |||||
845,064 | 775,882 | ||||||
Operating income | 104,092 | 88,709 | |||||
Other income (expense) | |||||||
Interest income and other | 1,909 | (584 | ) | ||||
Interest expense | (3,319 | ) | (3,022 | ) | |||
(1,410 | ) | (3,606 | ) | ||||
Income before income tax provision | 102,682 | 85,103 | |||||
Income tax provision | 18,735 | 22,708 | |||||
Net income | $ | 83,947 | $ | 62,395 | |||
Earnings per common share ― basic | $ | 2.38 | $ | 1.87 | |||
Weighted average common shares outstanding ― basic | 35,221 | 33,359 | |||||
Earnings per common share ― diluted | $ | 2.34 | $ | 1.75 | |||
Weighted average common shares outstanding ― diluted | 35,845 | 35,650 | |||||
Other comprehensive income (loss), net of tax | |||||||
Foreign currency translation adjustments, net of tax expense of $— | $ | (1,718 | ) | $ | 6,396 | ||
Total other comprehensive income (loss), net of tax | (1,718 | ) | 6,396 | ||||
Comprehensive income | $ | 82,229 | $ | 68,791 | |||
FTI CONSULTING, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) | |||||||
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(Unaudited) | |||||||
Revenues | $ | 1,877,709 | $ | 1,671,297 | |||
Operating expenses | |||||||
Direct cost of revenues | 1,263,783 | 1,141,603 | |||||
Selling, general and administrative expenses | 408,105 | 370,584 | |||||
Amortization of intangible assets | 2,096 | 3,599 | |||||
1,673,984 | 1,515,786 | ||||||
Operating income | 203,725 | 155,511 | |||||
Other income (expense) | |||||||
Interest income and other | 3,490 | (1,926 | ) | ||||
Interest expense | (5,038 | ) | (5,961 | ) | |||
(1,548 | ) | (7,887 | ) | ||||
Income before income tax provision | 202,177 | 147,624 | |||||
Income tax provision | 38,265 | 37,682 | |||||
Net income | $ | 163,912 | $ | 109,942 | |||
Earnings per common share ― basic | $ | 4.67 | $ | 3.30 | |||
Weighted average common shares outstanding ― basic | 35,099 | 33,331 | |||||
Earnings per common share ― diluted | $ | 4.58 | $ | 3.09 | |||
Weighted average common shares outstanding ― diluted | 35,816 | 35,566 | |||||
Other comprehensive income (loss), net of tax | |||||||
Foreign currency translation adjustments, net of tax expense of $— | $ | (13,151 | ) | $ | 16,246 | ||
Total other comprehensive income (loss), net of tax | (13,151 | ) | 16,246 | ||||
Comprehensive income | $ | 150,761 | $ | 126,188 | |||
FTI CONSULTING, INC. RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA (in thousands) | |||||||||||||||||||||||
Three Months Ended June 30, 2024 (Unaudited) | Corporate Finance & Restructuring | Forensic and Litigation Consulting | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
Net income | $ | 83,947 | |||||||||||||||||||||
Interest income and other | (1,909 | ) | |||||||||||||||||||||
Interest expense | 3,319 | ||||||||||||||||||||||
Income tax provision | 18,735 | ||||||||||||||||||||||
Operating income | $ | 63,193 | $ | 13,100 | $ | 42,952 | $ | 17,137 | $ | 10,594 | $ | (42,884 | ) | $ | 104,092 | ||||||||
Depreciation and amortization | 2,560 | 1,627 | 1,344 | 3,793 | 918 | 507 | 10,749 | ||||||||||||||||
Amortization of intangible assets | 714 | 267 | — | — | 99 | — | 1,080 | ||||||||||||||||
Adjusted EBITDA | $ | 66,467 | $ | 14,994 | $ | 44,296 | $ | 20,930 | $ | 11,611 | $ | (42,377 | ) | $ | 115,921 | ||||||||
Six Months Ended June 30, 2024 (Unaudited) | Corporate Finance & Restructuring | Forensic and Litigation Consulting | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
Net income | $ | 163,912 | |||||||||||||||||||||
Interest income and other | (3,490 | ) | |||||||||||||||||||||
Interest expense | 5,038 | ||||||||||||||||||||||
Income tax provision | 38,265 | ||||||||||||||||||||||
Operating income | $ | 135,112 | $ | 45,067 | $ | 55,817 | $ | 28,076 | $ | 22,068 | $ | (82,415 | ) | $ | 203,725 | ||||||||
Depreciation and amortization | 5,033 | 3,256 | 2,629 | 7,435 | 1,800 | 1,020 | 21,173 | ||||||||||||||||
Amortization of intangible assets | 1,547 | 380 | — | — | 169 | — | 2,096 | ||||||||||||||||
Adjusted EBITDA | $ | 141,692 | $ | 48,703 | $ | 58,446 | $ | 35,511 | $ | 24,037 | $ | (81,395 | ) | $ | 226,994 | ||||||||
FTI CONSULTING, INC. RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA (in thousands) | |||||||||||||||||||||||
Three Months Ended June 30, 2023 (Unaudited) | Corporate Finance & Restructuring (1) | Forensic and Litigation Consulting (1) | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
Net income | $ | 62,395 | |||||||||||||||||||||
Interest income and other | 584 | ||||||||||||||||||||||
Interest expense | 3,022 | ||||||||||||||||||||||
Income tax provision | 22,708 | ||||||||||||||||||||||
Operating income | $ | 42,116 | $ | 23,885 | $ | 34,024 | $ | 16,432 | $ | 11,278 | $ | (39,026 | ) | $ | 88,709 | ||||||||
Depreciation and amortization | 2,284 | 1,490 | 1,499 | 3,655 | 901 | 275 | 10,104 | ||||||||||||||||
Amortization of intangible assets | 1,110 | 223 | — | — | 84 | — | 1,417 | ||||||||||||||||
Adjusted EBITDA | $ | 45,510 | $ | 25,598 | $ | 35,523 | $ | 20,087 | $ | 12,263 | $ | (38,751 | ) | $ | 100,230 | ||||||||
Six Months Ended June 30, 2023 (Unaudited) | Corporate Finance & Restructuring (1) | Forensic and Litigation Consulting (1) | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total | ||||||||||||||||
Net income | $ | 109,942 | |||||||||||||||||||||
Interest income and other | 1,926 | ||||||||||||||||||||||
Interest expense | 5,961 | ||||||||||||||||||||||
Income tax provision | 37,682 | ||||||||||||||||||||||
Operating income | $ | 90,092 | $ | 44,173 | $ | 46,724 | $ | 28,322 | $ | 19,961 | $ | (73,761 | ) | $ | 155,511 | ||||||||
Depreciation and amortization | 4,243 | 2,802 | 2,992 | 7,131 | 1,688 | 691 | 19,547 | ||||||||||||||||
Amortization of intangible assets | 3,022 | 407 | — | — | 170 | — | 3,599 | ||||||||||||||||
Adjusted EBITDA | $ | 97,357 | $ | 47,382 | $ | 49,716 | $ | 35,453 | $ | 21,819 | $ | (73,070 | ) | $ | 178,657 | ||||||||
(1) Effective July 1, 2023, prior period segment information for the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments has been recast in this press release to include the reclassification of the portion of the Company’s health solutions practice in the Forensic and Litigation Consulting segment to the Company’s business transformation & strategy practice within the Corporate Finance & Restructuring segment. | |||||||||||||||||||||||
FTI CONSULTING, INC. OPERATING RESULTS BY BUSINESS SEGMENT | ||||||||||||||||||
Segment Revenues | Adjusted EBITDA | Adjusted EBITDA Margin | Utilization | Average Billable Rate | Revenue- Generating Headcount | |||||||||||||
(in thousands) | (at period end) | |||||||||||||||||
Three Months Ended June 30, 2024 (Unaudited) | ||||||||||||||||||
Corporate Finance & Restructuring | $ | 347,971 | $ | 66,467 | 19.1 | % | 60 | % | $ | 496 | 2,167 | |||||||
Forensic and Litigation Consulting | 169,496 | 14,994 | 8.8 | % | 58 | % | $ | 390 | 1,457 | |||||||||
Economic Consulting | 230,873 | 44,296 | 19.2 | % | 70 | % | $ | 599 | 1,076 | |||||||||
Technology (1) | 115,875 | 20,930 | 18.1 | % | N/M | N/M | 662 | |||||||||||
Strategic Communications (1) | 84,941 | 11,611 | 13.7 | % | N/M | N/M | 972 | |||||||||||
$ | 949,156 | $ | 158,298 | 16.7 | % | 6,334 | ||||||||||||
Unallocated Corporate | (42,377 | ) | ||||||||||||||||
Adjusted EBITDA | $ | 115,921 | 12.2 | % | ||||||||||||||
Six Months Ended June 30, 2024 (Unaudited) | ||||||||||||||||||
Corporate Finance & Restructuring | $ | 713,981 | $ | 141,692 | 19.8 | % | 61 | % | $ | 505 | 2,167 | |||||||
Forensic and Litigation Consulting | 345,570 | 48,703 | 14.1 | % | 58 | % | $ | 398 | 1,457 | |||||||||
Economic Consulting | 435,421 | 58,446 | 13.4 | % | 69 | % | $ | 566 | 1,076 | |||||||||
Technology (1) | 216,588 | 35,511 | 16.4 | % | N/M | N/M | 662 | |||||||||||
Strategic Communications (1) | 166,149 | 24,037 | 14.5 | % | N/M | N/M | 972 | |||||||||||
$ | 1,877,709 | $ | 308,389 | 16.4 | % | 6,334 | ||||||||||||
Unallocated Corporate | (81,395 | ) | ||||||||||||||||
Adjusted EBITDA | $ | 226,994 | 12.1 | % | ||||||||||||||
Three Months Ended June 30, 2023 (Unaudited) | ||||||||||||||||||
Corporate Finance & Restructuring (2) | $ | 317,912 | $ | 45,510 | 14.3 | % | 58 | % | $ | 482 | 2,170 | |||||||
Forensic and Litigation Consulting (2) | 164,760 | 25,598 | 15.5 | % | 58 | % | $ | 388 | 1,441 | |||||||||
Economic Consulting | 201,822 | 35,523 | 17.6 | % | 69 | % | $ | 557 | 1,039 | |||||||||
Technology (1) | 97,444 | 20,087 | 20.6 | % | N/M | N/M | 589 | |||||||||||
Strategic Communications (1) | 82,653 | 12,263 | 14.8 | % | N/M | N/M | 992 | |||||||||||
$ | 864,591 | $ | 138,981 | 16.1 | % | 6,231 | ||||||||||||
Unallocated Corporate | (38,751 | ) | ||||||||||||||||
Adjusted EBITDA | $ | 100,230 | 11.6 | % | ||||||||||||||
Six Months Ended June 30, 2023 (Unaudited) | ||||||||||||||||||
Corporate Finance & Restructuring (2) | $ | 633,564 | $ | 97,357 | 15.4 | % | 59 | % | $ | 480 | 2,170 | |||||||
Forensic and Litigation Consulting (2) | 322,499 | 47,382 | 14.7 | % | 58 | % | $ | 382 | 1,441 | |||||||||
Economic Consulting | 371,417 | 49,716 | 13.4 | % | 68 | % | $ | 520 | 1,039 | |||||||||
Technology (1) | 188,062 | 35,453 | 18.9 | % | N/M | N/M | 589 | |||||||||||
Strategic Communications (1) | 155,755 | 21,819 | 14.0 | % | N/M | N/M | 992 | |||||||||||
$ | 1,671,297 | $ | 251,727 | 15.1 | % | 6,231 | ||||||||||||
Unallocated Corporate | (73,070 | ) | ||||||||||||||||
Adjusted EBITDA | $ | 178,657 | 10.7 | % | ||||||||||||||
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. | ||||||||||||||||||
(2) Effective July 1, 2023, prior period segment information for the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments has been recast in this press release to include the reclassification of a portion of the Company’s health solutions practice in the Forensic and Litigation Consulting segment to the Company’s business transformation & strategy practice within the Corporate Finance & Restructuring segment. | ||||||||||||||||||
FTI CONSULTING, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
(Unaudited) | |||||||
Operating activities | |||||||
Net income | $ | 163,912 | $ | 109,942 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 21,173 | 19,547 | |||||
Amortization of intangible assets | 2,096 | 3,599 | |||||
Provision for expected credit losses | 19,923 | 11,188 | |||||
Share-based compensation | 18,101 | 13,903 | |||||
Deferred income taxes | (6,840 | ) | (6,571 | ) | |||
Acquisition-related contingent consideration | (1,157 | ) | 3,543 | ||||
Amortization of debt issuance costs and other | 387 | 1,296 | |||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable, billed and unbilled | (115,106 | ) | (245,999 | ) | |||
Notes receivable | (45,197 | ) | (22,539 | ) | |||
Prepaid expenses and other assets | (12,630 | ) | (6,718 | ) | |||
Accounts payable, accrued expenses and other | (8,934 | ) | (159 | ) | |||
Income taxes | (29,727 | ) | (13,122 | ) | |||
Accrued compensation | (145,509 | ) | (130,625 | ) | |||
Billings in excess of services provided | (84 | ) | (2,485 | ) | |||
Net cash used in operating activities | (139,592 | ) | (265,200 | ) | |||
Investing activities | |||||||
Purchases of property and equipment and other | (14,700 | ) | (29,027 | ) | |||
Maturity of short-term investment | 25,246 | — | |||||
Net cash provided by (used in) investing activities | 10,546 | (29,027 | ) | ||||
Financing activities | |||||||
Borrowings under revolving line of credit | 520,000 | 245,000 | |||||
Repayments under revolving line of credit | (460,000 | ) | (220,000 | ) | |||
Purchase and retirement of common stock | — | (20,982 | ) | ||||
Share-based compensation tax withholdings | (14,320 | ) | (11,922 | ) | |||
Proceeds on stock option exercises | 10,614 | 1,167 | |||||
Deposits and other | 2,023 | (2,206 | ) | ||||
Net cash provided by (used in) financing activities | 58,317 | (8,943 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (6,065 | ) | 15,021 | ||||
Net decrease in cash and cash equivalents | (76,794 | ) | (288,149 | ) | |||
Cash and cash equivalents, beginning of period | 303,222 | 491,688 | |||||
Cash and cash equivalents, end of period | $ | 226,428 | $ | 203,539 | |||
![](https://ml.globenewswire.com/media/NWE2OWZmZjctOTM3OC00M2Y0LTkzYTgtYjljNzU3MzQ5MDQ1LTEwMzU2NjM=/tiny/FTI-Consulting-Inc-.png)
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