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FTI Consulting Reports Third Quarter 2013 Results

              FTI Consulting Reports Third Quarter 2013 Results

-- Revenues of $414.6 Million, Up 7.4 Percent

-- Adjusted EPS of $0.72, Excluding Goodwill Impairment and Special Charge

-- Net Cash Provided by Operating Activities of $84.4 Million

PR Newswire

WEST PALM BEACH, Fla., Nov. 7, 2013

WEST PALM BEACH, Fla., Nov. 7, 2013 /PRNewswire/ --FTI Consulting, Inc.
(NYSE: FCN), the global business advisory firm dedicated to helping
organizations protect and enhance their enterprise value (the "Company"),
today released its financial results for the quarter ended September 30, 2013.

For the quarter, revenues increased 7.4 percent to $414.6 million compared to
$386.1 million in the prior year quarter. On a GAAP basis, the fully diluted
loss per share was ($1.29) for the quarter, including a non-cash goodwill
impairment charge related to the Strategic Communications segment of $83.8
million and a special charge of $10.4 million. The goodwill impairment charge
has no impact on the Company's liquidity, cash flow, borrowing capability or
operations. Adjusted EPS were $0.72 for the quarter compared to $0.60 in the
prior year quarter which included a $2.8 million special charge. Please see
the attached financial tables for a reconciliation of fully diluted loss per
share and Adjusted EPS.

Adjusted EBITDA increased 16.5 percent to $72.5 million for the quarter
compared to $62.3 million in the prior year quarter. This improvement was
primarily due to strong performance in the Company's Economic Consulting and
Forensic and Litigation Consulting segments, including the impact of a success
fee in the Forensic and Litigation Consulting segment.

Adjusted EPS, Adjusted EBITDA and Adjusted Segment EBITDA are non-GAAP
measures defined elsewhere in this press release and are reconciled to GAAP
measures in the financial tables that accompany this press release.

Commenting on these results, Jack Dunn, FTI Consulting President and Chief
Executive Officer said, "Record third quarter revenues increased 7.4 percent
year-over-year, including organic growth of 3.4 percent. Economic Consulting
was strong in both North America and Europe with 17.3 percent revenue growth
overall, while Forensic and Litigation Consulting and its health solutions
practice saw excellent results with revenue growth of 12.5 percent and 24.4
percent, respectively. In Technology, we benefited from returns on the
sustained strategic investments we have made in this business with respect to
our products, people and business development initiatives globally."

Cash and Capital Allocation

Net cash provided by operating activities in the quarter increased 19.0
percent to $84.4 million compared to $70.9 million in the prior year quarter
due to continued strong cash collections. During the quarter, the Company used
approximately $20.0 million to repurchase and retire 595,225 shares of the
Company's common stock. Cash and cash equivalents were $147.9 million at
September 30, 2013. The Company has spent $40.8 million on acquisitions and
$48.8 million on stock repurchases year to date through September 30, 2013.

Third Quarter Segment Results

Corporate Finance/Restructuring
Revenues in the Corporate Finance/Restructuring segment increased 1.0 percent
to $94.0 million in the quarter compared to $93.1 million in the prior year
quarter. The segment benefited from acquisitions which contributed revenues of
$12.8 million in the quarter; however, the segment experienced a roughly
equivalent decline in bankruptcy and restructuring revenues in the North
America region. Adjusted Segment EBITDA was $19.4 million or 20.6 percent of
segment revenues compared to $22.0 million or 23.6 percent of segment revenues
in the prior year quarter reflecting continued underutilization in North
America and the previously disclosed organic investment in a Europe, Middle
East and Africa ("EMEA") based transaction services practice, partially offset
by reductions in performance-based compensation and headcount. In that regard,
the segment recorded a special charge of $6.3 million in the quarter, compared
to $0.8 million in the prior year quarter, related to headcount reductions to
better align capacity with demand.

Economic Consulting
Revenues in the Economic Consulting segment increased 17.3 percent to $113.1
million in the quarter compared to $96.4 million in the prior year quarter.
The increase in revenues was driven by continued strong performance for the
segment's antitrust litigation services in North America and EMEA and
international arbitration, regulatory and valuation practices in EMEA.
Adjusted Segment EBITDA was $23.2 million or 20.5 percent of segment revenues
compared to $19.1 million or 19.8 percent of segment revenues in the prior
year quarter.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased 12.5
percent to $113.1 million in the quarter compared to $100.5 million in the
prior year quarter, primarily due to a success fee in the North America
investigations practice and increased demand in the health solutions practice.
Adjusted Segment EBITDA was $25.4 million or 22.4 percent of segment revenues
compared to $16.3 million or 16.2 percent of segment revenues in the prior
year quarter. The increase in Adjusted Segment EBITDA margin was due to a high
margin success fee, improved utilization in the North America financial and
enterprise data analytics practice and a reduction of performance-based
compensation expense. The segment recorded a special charge of $1.9 million
compared to $0.5 million in the prior year quarter, related to headcount
reductions taken to better align capacity with demand.

Technology
Revenues in the Technology segment increased 1.8 percent to $51.2 million in
the quarter compared to $50.3 million in the prior year quarter. The increase
in revenues was due to higher services revenues primarily for investigations
involving the Foreign Corrupt Practices Act and interest rate setting process
concerning the London Interbank Offered Rate ("LIBOR"), as the segment still
felt the impact of the decline of a large litigation-related matter which was
very active last year. Adjusted Segment EBITDA was $15.4 million or 30.0
percent of segment revenues compared to $15.7 million or 31.2 percent of
segment revenues in the prior year quarter.

Strategic Communications
Revenues in the Strategic Communications segment decreased 5.4 percent to
$43.3 million in the quarter compared to $45.8 million in the prior year
quarter. Revenues were lower due to reduced pass-through revenues for certain
EMEA and North America retained engagements and weak mergers and acquisitions
activity in the Asia Pacific region. This segment benefitted from $1.6 million
of revenues from the acquisition of a U.S. public policy group completed in
March 2013. Adjusted Segment EBITDA was $4.0 million or 9.3 percent of segment
revenues compared to $6.8 million or 14.8 percent of segment revenues in the
prior year quarter. Adjusted Segment EBITDA margin was adversely impacted by
reduced project fees in the Asia Pacific region and lower retained fees in the
North America region. A goodwill impairment charge of $83.8 million was
recorded in this segment during the quarter.

Third Quarter Conference Call
FTI Consulting will hold a conference call for analysts and investors to
discuss third quarter financial results at 9:00 a.m. Eastern Time on November
7, 2013. The call can be accessed live and will be available for replay over
the Internet for 90 days by logging onto the Company's website at
www.fticonsulting.com.

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping
organizations protect and enhance enterprise value in an increasingly complex
legal, regulatory and economic environment. With over 4,100 employees located
in 25 countries, FTI Consulting professionals work closely with clients to
anticipate, illuminate and overcome complex business challenges in areas such
as investigations, litigation, mergers and acquisitions, regulatory issues,
reputation management, strategic communications and restructuring. The Company
generated $1.58 billion in revenues during fiscal year 2012. More information
can be found at www.fticonsulting.com.

Use of Non-GAAP Measures
Note: We define Segment Operating Income as a segment's share of consolidated
operating income. We define Total Segment Operating Income 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 EBITDA as consolidated
net income before income tax provision, other non-operating income (expense),
depreciation, amortization of intangible assets, special charges and goodwill
impairment charges. We define Adjusted Segment EBITDA as a segment's share of
consolidated operating income before depreciation, amortization of intangible
assets, special charges and goodwill impairment charges. We define Total
Adjusted Segment EBITDA as the total of Adjusted Segment EBITDA for all
segments, which excludes unallocated corporate expenses. We use Adjusted
Segment EBITDA to internally evaluate the financial performance of our
segments because we believe it is a useful supplemental measure which reflects
current core operating performance and provides an indicator of the segment's
ability to generate cash. We also believe that these measures, when considered
together with our GAAP financial results, provide management and investors
with a more complete understanding of our operating results, including
underlying trends, by excluding the effects of special charges and goodwill
impairment charges. 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 measures, considered along with corresponding GAAP
measures, provide management and investors with additional information for
comparison of our operating results to the operating results of other
companies.

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 special charges, goodwill impairment charges and
losses on early extinguishment of debt. We use Adjusted Net Income for the
purpose of calculating Adjusted Earnings per Diluted Share. Management uses
Adjusted Earnings per Diluted Share to assess total Company operating
performance on a consistent basis. We believe that this measure, when
considered together with our GAAP financial results, provides management and
investors with a more complete understanding of our business operating
results, including underlying trends, by excluding the effects of special
charges, goodwill impairment charges and losses on early extinguishment of
debt. Non-GAAP financial measures are not defined in the same manner by all
companies and may not be comparable to 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 GAAP
to non-GAAP financial measures are included elsewhere in 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,
objectives, goals, strategies, future events, future revenues, future results
and performance, expectations, plans or intentions relating to acquisitions
and other matters, business trends 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,"
"forecasts" 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 expectations, beliefs and estimates will be
achieved, and the Company's actual results may differ materially from our
expectations, beliefs and estimates. Further, preliminary results are subject
to normal year-end adjustments. The Company has experienced fluctuating
revenues, operating income and cash flow 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, adverse
financial, real estate or other market and general economic conditions, which
could impact each of our segments differently, the pace and timing of the
consummation and integration of past and future acquisitions, the Company's
ability to realize cost savings and efficiencies, competitive and general
economic conditions, retention of staff and clients and other risks described
under the heading "Item 1A Risk Factors" in the Company's most recent Form
10-K filed with the SEC on February 28, 2013, the Current Report on Form 8-K
dated May 21, 2013 and in the Company's other filings with the Securities and
Exchange Commission, including the risks set forth under "Risks Related to Our
Operating Segments" and "Risks Related to Our Operations". 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.

Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

FINANCIAL TABLES FOLLOW



FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(in thousands, except per share data)
(unaudited)
                                      Nine Months Ended
                                      September 30,
                                      2013                 2012
Revenues                              $               $     
                                      1,236,434           1,177,526
Operating expenses
Direct cost of revenues               773,160              735,452
Selling, general and administrative   287,485              283,958
expense
Special charges                       10,846               29,557
Acquisition-related contingent        (6,091)              (2,581)
consideration
Amortization of other intangible      17,293               16,773
assets
Goodwill impairment charge            83,752               -
                                      1,166,445            1,063,159
Operating income                      69,989               114,367
Other income (expense)
Interest income and other             1,702                4,503
Interest expense                      (38,600)             (43,607)
                                      (36,898)             (39,104)
Income before income tax provision    33,091               75,263
Income tax provision                  36,546               26,372
Net income (loss)                     $            $       
                                      (3,455)              48,891
Earnings (loss) per common share -    $           $         
basic                                 (0.09)               1.21
Weighted average common shares        39,212               40,446
outstanding - basic
Earnings (loss) per common share -    $           $         
diluted                               (0.09)               1.17
Weighted average common shares        39,212               41,882
outstanding - diluted
Other comprehensive income (loss),
net of tax:
Foreign currency translation          $             $       
adjustments, net of tax of $0         (10,108)             14,620
Other comprehensive income (loss),    (10,108)             14,620
net of tax
Comprehensive income (loss)           $             $       
                                      (13,563)             63,511



FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(in thousands, except per share data)
(unaudited)
                                        Three Months Ended
                                        September 30,
                                        2013                 2012
Revenues                                $             $      
                                        414,643              386,055
Operating expenses
Direct cost of revenues                 255,152              241,614
Selling, general and administrative     94,513               88,909
expense
Special charges                         10,419               2,775
Acquisition-related contingent          630                  403
consideration
Amortization of other intangible assets 5,776                5,766
Goodwill impairment charge              83,752               -
                                        450,242              339,467
Operating income (loss)                 (35,599)             46,588
Other income (expense)
Interest income and other               1,152                1,584
Interest expense                        (12,814)             (13,208)
                                        (11,662)             (11,624)
Income (loss) before income tax         (47,261)             34,964
provision
Income tax provision                    3,360                12,251
Net income (loss)                       $             $       
                                        (50,621)             22,713
Earnings (loss) per common share -      $           $        
basic                                   (1.29)                0.56
Weighted average common shares          39,094               40,387
outstanding - basic
Earnings (loss) per common share -      $           $        
diluted                                 (1.29)                0.55
Weighted average common shares          39,094               41,102
outstanding - diluted
Other comprehensive income, net of tax:
Foreign currency translation            $            $       
adjustments, net of tax of $0           17,115               12,731
Other comprehensive income, net of tax  17,115               12,731
Comprehensive income (loss)             $             $       
                                        (33,506)             35,444



FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
                                                                               Revenue-
                                                                    Average
                                   Adjusted  As a                   Billable  Generating
                                             percent
                       Revenues    EBITDA    of        Utilization  Rate ^(4)   Headcount
                                   ^(1)      revenues  ^(4)
                        (in thousands)                                       (at period
                                                                                end)
Three Months Ended
September 30, 2013
Corporate              $       $   
Finance/Restructuring               20.6%     64%          $       732
^(3)                   93,981                                   396
                                   19,402
Forensic and                                                        $    
Litigation Consulting  113,068     25,362    22.4%     67%          324        999
^(3)
Economic Consulting    113,069     23,225    20.5%     79%          $       528
                                                                    512
Technology ^(2)       51,201      15,381    30.0%     N/M          N/M         297
Strategic              43,324      4,036     9.3%      N/M          N/M         617
Communications^ (2)
                       $    
                               87,406    21.1%                              3,173
                       414,643
 Unallocated                     (14,862)
Corporate Expenses
                                   $   
Adjusted EBITDA^(1)                      17.5%
                                      
                                   72,544
Nine Months Ended
September 30, 2013
Corporate              $       $   
Finance/Restructuring                21.6%     66%          $       732
^(3)                   289,775                                  407
                                   62,610
Forensic and                                                        $    
Litigation Consulting  318,912     58,866    18.5%     68%          315        999
^(3)
Economic Consulting    339,277     70,222    20.7%     84%          $       528
                                                                    509
Technology ^(2)       149,101     45,985    30.8%     N/M          N/M         297
Strategic              139,369     12,809    9.2%      N/M          N/M         617
Communications^ (2)
                       $    
                                 250,492   20.3%                              3,173
                       1,236,434
 Unallocated                     (44,394)
Corporate Expenses
                                   $   
Adjusted EBITDA^(1)                      16.7%
                                     
                                   206,098
Three Months Ended
September 30, 2012
Corporate              $       $   
Finance/Restructuring               23.6%     72%          $       621
^(3)                   93,123                                   402
                                   21,951
Forensic and                                                        $    
Litigation Consulting  100,460     16,289    16.2%     63%          328        939
^(3)
Economic Consulting    96,375      19,087    19.8%     79%          $       467
                                                                    495
Technology ^(2)       50,286      15,675    31.2%     N/M          N/M         283
Strategic              45,811      6,778     14.8%     N/M          N/M         597
Communications^ (2)
                       $    
                               79,780    20.7%                              2,907
                       386,055
 Unallocated                     (17,499)
Corporate Expenses
                                   $   
Adjusted EBITDA^(1)                      16.1%
                                      
                                   62,281
Nine Months Ended
September 30, 2012
Corporate              $       $   
Finance/Restructuring                25.7%     75%          $       621
^(3)                   286,184                                  409
                                   73,419
Forensic and                                                        $    
Litigation Consulting  310,351     50,500    16.3%     65%          323        939
^(3)
Economic Consulting    295,882     56,002    18.9%     82%          $       467
                                                                    493
Technology ^(2)       147,643     41,739    28.3%     N/M          N/M         283
Strategic              137,466     16,277    11.8%     N/M          N/M         597
Communications^ (2)
                       $    
                                 237,937   20.2%                              2,907
                       1,177,526
 Unallocated                     (55,080)
Corporate Expenses
                                   $   
Adjusted EBITDA^(1)                      15.5%
                                     
                                   182,857



^(1) We define Adjusted EBITDA as consolidated net income before income tax
provision, other non-operating income (expense), depreciation, amortization of
intangible assets, special charges and goodwill impairment charges. Amounts
presented in the Adjusted EBITDA column for each segment reflect the segments'
respective Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a
segment's share of consolidated operating income before depreciation,
amortization of intangible assets, special charges and goodwill impairment
charges. We use Adjusted Segment EBITDA to internally evaluate the financial
performance of our segments because we believe it is a useful supplemental
measure which reflects current core operating performance and provides an
indicator of the segment's ability to generate cash. We also believe that
these measures, when considered together with our GAAP financial results,
provide management and investors with a more complete understanding of our
operating results, including underlying trends, by excluding the effects of
special charges and goodwill impairment charges. 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 measures, considered along
with corresponding GAAP measures, provide management and investors with
additional information for comparison of our operating results to the
operating results of other companies. Adjusted EBITDA and Adjusted Segment
EBITDA are not defined in the same manner by all companies and may not be
comparable to other similarly titled measures of other companies. These
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 (Loss). See also our
reconciliation of GAAP to non-GAAP financial measures.
^(2)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.
^(3) Effective in the first quarter of 2013, we modified our reportable
segments to reflect changes in how we operate our business and the related
internal management reporting. The Company's healthcare and life sciences
practices from both our Corporate Finance/Restructuring segment and our
Forensic and Litigation Consulting segment have been combined under a single
organizational structure. This single integrated practice, our health
solutions practice, is now aggregated in its entirety within the Forensic and
Litigation Consulting reportable segment. Prior period Corporate
Finance/Restructuring and Forensic and Litigation Consulting segment
information has been reclassified to conform to the current period
presentation.
^(4) 2013 and 2012 utilization and average bill rate calculations for our
Corporate Finance/Restructuring, Forensic and Litigation Consulting, and
Economic Consulting segments were updated to reflect the realignment of
certain practices as well as information related to non-U.S. operations that
was not previously available.



FTI CONSULTING, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(in thousands, except per share data)
                                Three Months Ended        Nine Months Ended
                                September 30,             September 30,
                                2013           2012       2013         2012
                                $         $       $       $   
Net income (loss)               (50,621)                (3,455)      
                                               22,713                  48,891
Add back:
 Special charges, net of     6,847          1,794      7,100        19,115
tax effect ^(1)
 Goodwill impairment         83,752         -          83,752       -
charges ^(2)
Less:
 Interim period impact of
including goodwill impairment
charges                         (10,805)       -          (10,805)     -
 in the annual effective
tax rate
Adjusted Net Income             $         $       $       $   
^(4)                             29,173                76,592       
                                               24,507                  68,006
Earnings (loss) per common      $         $       $       $   
share - diluted                   (1.29)              (0.09)      
                                                0.55                   1.17
Add back:
 Special charges, net of     0.18           0.05       0.18         0.45
tax effect ^(1)
 Goodwill impairment         2.14           -          2.14         -
charges ^(2)
Less:
 Interim period impact of
including goodwill impairment
charges                         (0.27)         -          (0.28)       -
 in the annual effective
tax rate
Impact of denominator for
diluted earnings per common     (0.04)         -          (0.05)       -
share ^(3)
                                $         $       $       $   
Adjusted EPS ^(4)                  0.72               1.90      
                                                0.60                   1.62
Weighted average number of
common shares outstanding -     40,244         41,102     40,385       41,882
diluted ^(3)
^(1)The tax effect takes into account the tax treatment and related tax
rate(s) that apply to each adjustment in the applicable tax jurisdiction(s).
As a result, the effective tax rates related to the special charges for the
three and nine months ended September 30, 2013 were 34.3% and 34.5%,
respectively, and 35.3% for both of the three and nine months ended September
30, 2012. The tax expense related to the special charges for the three and
nine months ended September 30, 2013 was $3.6 million or $0.09 impact on
diluted earnings per common share and $3.7 million or $0.10 impact on diluted
earnings per common share, respectively. The tax expense related to the
special charges for the three and nine months ended September 30, 2012 was
$1.0 million or $0.02 impact on diluted earnings per common share and $10.4
million or $0.25 impact on diluted earnings per common share, respectively.
^(2)The goodwill impairment charge is non-deductible for income tax purposes
and will result in no tax benefit for the year ending December 31, 2013.
^(3)For the three and nine months ended September 30, 2013, the Company
reported a net loss. For those periods, the basic weighted average common
shares outstanding equals the diluted weighted average common shares
outstanding for purposes of calculating U.S. GAAP earnings per share because
potentially dilutive securities would be antidilutive. For non-GAAP purposes,
the per share and share amounts presented herein reflect the impact of the
inclusion of share-based awards and convertible notes that are considered
dilutive based on the impact of the add backs included in Adjusted Net Income
above.
^(4) We define Adjusted Net Income and Adjusted Earnings per Diluted Share as
net income and earnings per diluted share, respectively, excluding the impact
of special charges, goodwill impairment charges and losses on early
extinguishment of debt. We use Adjusted Net Income for the purpose of
calculating Adjusted Earnings per Diluted Share. Management uses Adjusted
Earnings per Diluted Share to assess total company operating performance on a
consistent basis. We believe that this measure, when considered together with
our GAAP financial results, provides management and investors with a more
complete understanding of our business operating results, including underlying
trends, by excluding the effects of special charges, goodwill impairment
charges and losses on early extinguishment of debt.



RECONCILIATION OF NET INCOME (LOSS) AND OPERATING INCOME (LOSS) TO ADJUSTED EBITDA
(in thousands)
                 Corporate      Forensic
Three Months     Finance /      and         Economic                  Strategic  Unallocated
Ended September  Restructuring  Litigation  Consulting  Technology^  Communi-   Corporate    Total
30, 2013         ^(3)           Consulting                            cations    Expenses
                                ^(3)
Net income                                                                                    $   
(loss)                                                                                         
                                                                                              (50,621)
 Interest
 income and                                                                                   (1,152)
 other
 Interest                                                                                     12,814
 expense
 Income tax                                                                                   3,360
 provision
Operating        $        $       $       $        $      $       $   
income (loss)      10,590      21,915    21,708    9,755               (18,077)      
^(1)                                                                  (81,490)                (35,599)
 Depreciation
 and             919            997         979         3,642         575        1,084        8,196
 amortization
 Amortization of
 other           1,562          512         523         1,982         1,197      -            5,776
 intangible
 assets
 Special         6,331          1,938       15          2             2          2,131        10,419
 Charges
 Goodwill
 impairment      -              -           -           -             83,752     -            83,752
 charge
Adjusted         $        $       $       $        $      $       $   
EBITDA ^(2)        19,402      25,362    23,225   15,381              (14,862)       
                                                                      4,036                   72,544
Nine Months
Ended September
30, 2013
Net income                                                                                    $   
(loss)                                                                                          
                                                                                              (3,455)
 Interest
 income and                                                                                   (1,702)
 other
 Interest                                                                                     38,600
 expense
 Income tax                                                                                   36,546
 provision
Operating        $        $       $       $        $      $     
income (loss)      48,725      52,194    66,233   29,129                (49,923)     69,989
^(1)                                                                  (76,369)
 Depreciation
 and             2,541          2,958       2,647       10,888        1,898      3,286        24,218
 amortization
 Amortization
 of other        4,945          1,603       1,331       5,952         3,462      -            17,293
 intangible
 assets
 Special         6,399          2,111       11          16            66         2,243        10,846
 charges
 Goodwill
 impairment      -              -           -           -             83,752     -            83,752
 charge
Adjusted         62,610         58,866      70,222      45,985        12,809     (44,394)     206,098
EBITDA ^(2)
                 Corporate      Forensic
Three Months     Finance /      and         Economic                  Strategic  Unallocated
Ended September  Restructuring  Litigation  Consulting  Technology^  Communi-   Corporate    Total
30, 2012         ^(3)           Consulting                            cations    Expenses
                                ^(3)
                                                                                              $   
Net income                                                                                     
                                                                                              22,713
 Interest
 income and                                                                                   (1,584)
 other
 Interest                                                                                     13,208
 expense
 Income tax                                                                                   12,251
 provision
Operating        $        $       $       $        $      $       $   
income ^(1)        19,024      14,062    17,810   10,445              (19,627)       
                                                                      4,874                   46,588
 Depreciation
 and             713            981         702         3,098         544        1,114        7,152
 amortization
 Amortization of
 other           1,443          778         402         1,984         1,159      -            5,766
 intangible
 assets
 Special         771            468         173         148           201        1,014        2,775
 charges
Adjusted         $        $       $       $        $      $       $   
EBITDA ^(1)        21,951      16,289    19,087   15,675              (17,499)       
                                                                      6,778                   62,281
Nine Months
Ended September
30, 2012
                                                                                              $   
Net income                                                                                     
                                                                                              48,891
 Interest
 income and                                                                                   (4,503)
 other
 Interest                                                                                     43,607
 expense
 Income tax                                                                                   26,372
 provision
Operating        $        $       $       $        $      $     
income ^(1)        55,488      37,360    51,681   23,403              (59,726)     114,367
                                                                      6,161
 Depreciation
 and             2,278          3,062       2,131       9,262         1,913      3,514        22,160
 amortization
 Amortization
 of other        4,321          1,802       1,199       5,960         3,491      -            16,773
 intangible
 assets
 Special         11,332         8,276       991         3,114         4,712      1,132        29,557
 charges
Adjusted         73,419         50,500      56,002      41,739        16,277     (55,080)     182,857
EBITDA ^(2)



^(1) We define Segment Operating Income as a segment's share of consolidated
operating income. We define Total Segment Operating Income 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.
^(2) We define Adjusted EBITDA as consolidated net income before income tax
provision, other non-operating income (expense), depreciation, amortization of
intangible assets, special charges and goodwill impairment charges. Amounts
presented in the Adjusted EBITDA row for each segment reflect the segments'
respective Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a
segment's share of consolidated operating income before depreciation,
amortization of intangible assets, special charges and goodwill impairment
charges. We use Adjusted Segment EBITDA to internally evaluate the financial
performance of our segments because we believe it is a useful supplemental
measure which reflects current core operating performance and provides an
indicator of the segment's ability to generate cash. We also believe that
these measures, when considered together with our GAAP financial results,
provide management and investors with a more complete understanding of our
operating results, including underlying trends, by excluding the effects of
special charges and goodwill impairment charges. 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 measures, considered along
with corresponding GAAP measures, provide management and investors with
additional information for comparison of our operating results to the
operating results of other companies. Adjusted EBITDA and Adjusted Segment
EBITDA are not defined in the same manner by all companies and may not be
comparable to other similarly titled measures of other companies. These
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 (Loss). See also our
reconciliation of GAAP to non-GAAP financial measures.
^(3) Effective in the first quarter of 2013, we modified our reportable
segments to reflect changes in how we operate our business and the related
internal management reporting. The Company's healthcare and life sciences
practices from both our Corporate Finance/Restructuring segment and our
Forensic and Litigation Consulting segment have been combined under a single
organizational structure. This single integrated practice, our health
solutions practice, is now aggregated in its entirety within the Forensic and
Litigation Consulting reportable segment. Prior period Corporate
Finance/Restructuring and Forensic and Litigation Consulting segment
information has been reclassified to conform to the current period
presentation. Adjusted EBITDA and Adjusted Segment EBITDA are not defined in
the same manner by all companies and may not be comparable to other similarly
titled measures of other companies. These 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 (Loss).



FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(in thousands)
(unaudited)
                                                      Nine Months Ended
                                                      September 30,
                                                      2013         2012
Operating activities
Net income (loss)                                     $       $     
                                                      (3,455)     48,891
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                         24,218       26,475
Amortization of other intangible assets               17,293       16,948
Goodwill impairment charge                            83,752       -
Acquisition-related contingent consideration          (6,091)      (2,581)
Provision for doubtful accounts                      10,404       9,387
Non-cash share-based compensation                    22,544       24,465
Non-cash interest expense                             2,024        4,505
Other                                                 (286)        10
Changes in operating assets and liabilities, net of
effects from acquisitions:
Accounts receivable, billed and unbilled              (72,266)     (62,466)
Notes receivable                                      (9,644)      (20,732)
Prepaid expenses and other assets                     (2,313)      (3,701)
Accounts payable, accrued expenses and other          16,822       5,608
Income taxes                                         12,989       (5,595)
Accrued compensation                                  13,198       (33,734)
Billings in excess of services provided               (5,383)      6,144
 Net cash provided by       103,806      13,624
operating activities
Investing activities
Payments for acquisition of businesses, net of cash   (40,766)     (26,453)
received
Purchases of property and equipment                   (22,994)     (20,534)
Other                                                 24           (1,105)
 Net cash used in investing  (63,736)     (48,092)
activities
Financing activities
Borrowings under revolving line of credit             -            75,000
Payments of long-term debt                            (6,000)      (156,487)
Purchase and retirement of common stock               (48,769)     (20,013)
Net issuance of common stock under equity             6,208        523
compensation plans
Other                                                 (800)        (1,982)
 Net cash used in financing  (49,361)     (102,959)
activities
Effect of exchange rate changes on cash and cash      432          (68)
equivalents
Net decrease in cash and cash equivalents             (8,859)      (137,495)
Cash and cash equivalents, beginning of period        156,785      264,423
Cash and cash equivalents, end of period              $        $    
                                                      147,926      126,928



FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AT SEPTEMBER 30, 2013 AND DECEMBER 31, 2012
(in thousands, except per share amounts)
                                       September 30,       December 31,
                                       2013                2012
Assets                                 (unaudited)
Current assets
 Cash and cash equivalents           $     147,926  $     156,785
 Restricted cash                     -                   1,190
 Accounts receivable:
 Billed receivables              345,407             314,491
 Unbilled receivables            260,211             208,797
 Allowance for doubtful accounts (110,708)           (94,048)
and unbilled services
 Accounts receivable, net     494,910             429,240
 Current portion of notes receivable 32,112              33,194
 Prepaid expenses and other current  40,334              50,351
assets
 Current portion of deferred tax     31,628              3,615
assets
Total current assets                   746,910             674,375
Property and equipment, net of         66,300              68,192
accumulated depreciation
Goodwill                               1,194,414           1,260,035
Other intangible assets, net of        92,738              104,181
amortization
Notes receivable, net of current       112,194             101,623
portion
Other assets                           64,986              67,046
Total assets                           $    2,277,542   $    2,275,452
Liabilities and Stockholders' Equity
Current liabilities
 Accounts payable, accrued expenses $     107,363  $      98,109
and other
 Accrued compensation               164,585             168,392
 Current portion of long-term debt  6,000               6,021
 Billings in excess of services     26,186              31,675
provided
Total current liabilities              304,134             304,197
Long-term debt, net of current portion 711,000             717,024
Deferred income taxes                  140,746             105,751
Other liabilities                      85,561              80,248
Total liabilities                      1,241,441           1,207,220
Stockholders' equity
Preferred stock, $0.01 par value;
shares authorized ―5,000; none         -                   -
outstanding
Common stock, $0.01 par value; shares
authorized ―75,000; shares issued and  401                 408
 outstanding ―40,089 (2013) and
40,755 (2012)
Additional paid-in capital             349,417             367,978
Retained earnings                      737,760             741,215
Accumulated other comprehensive loss   (51,477)            (41,369)
Total stockholders' equity             1,036,101           1,068,232
Total liabilities and stockholders'    $    2,277,542   $    2,275,452
equity



SOURCE FTI Consulting, Inc.

Website: http://www.fticonsulting.com
 
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