FTI Consulting Reports Fourth Quarter and Full Year 2013 Results

       FTI Consulting Reports Fourth Quarter and Full Year 2013 Results

-- Fourth Quarter Revenues of $416.0 Million; Full Year Revenues of $1.65
Billion

-- Fourth Quarter Adjusted EPS of $0.49; Full Year Adjusted EPS of $2.39,
including Remeasurement Gains

-- Full Year Cash From Operations of $193.3 Million

-- First Quarter 2014 Guidance for Revenues of $410.0 to $425.0 Million and
Adjusted EPS of $0.20 to $0.28

PR Newswire

WEST PALM BEACH, Fla., Feb. 20, 2014

WEST PALM BEACH, Fla., Feb. 20, 2014 /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 fourth quarter and full year
ended December 31, 2013.

For the quarter, revenues increased 4.2 percent to $416.0 million compared to
$399.3 million in the prior year quarter. Fully diluted loss per share was
($0.18) compared to fully diluted loss per share of ($2.15) in the prior year
quarter. Fourth quarter fully diluted loss per share includes a special charge
of $27.6 million primarily for severance and acceleration of expense for
certain other compensation arrangements related to the transition of former
executives. This charge reduced fully diluted earnings per share ("EPS") by
$0.41. In the prior year quarter, fully diluted loss per share included a
goodwill impairment charge of $110.4 million, which reduced fully diluted EPS
by $2.77 per share. Fourth quarter 2013 Adjusted EPS were $0.49. Fourth
quarter Adjusted EBITDA was $53.0 million, or 12.7 percent of revenues.
Adjusted EPS and Adjusted EBITDA for the quarter included a remeasurement gain
related to the reduction of the liability for estimated future contingent
consideration payments related to prior acquisitions, which increased Adjusted
EPS by $0.10 and Adjusted EBITDA by $5.3 million.

For the full year, revenues increased 4.8 percent to $1.65 billion compared to
$1.58 billion in the prior year period. Fully diluted loss per share was
($0.27) compared to fully diluted loss per share of ($0.92) in the prior year
period. Fiscal 2013 fully diluted loss per share includes a goodwill
impairment charge and special charges of $83.8 million and $38.4 million,
respectively. This compares to a goodwill impairment charge and special
charges of $110.4 million and $29.6 million, respectively in the prior year
period. Full year Adjusted EPS were $2.39. Full year Adjusted EBITDA was
$259.1 million, or 15.7 percent of revenues. Adjusted EPS and Adjusted EBITDA
for the year included remeasurement gains related to the reduction of the
liability for estimated future contingent consideration payments related to
prior acquisitions, which increased Adjusted EPS by $0.30 and Adjusted EBITDA
by $13.6 million.

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.

Steve Gunby, recently appointed President and Chief Executive Officer of FTI
Consulting said, "Travelling the world during the past few weeks has left me
increasingly excited about the core capabilities, market positions and people
of FTI Consulting. I have been particularly gratified by a number of
conversations I have had with clients, who spoke to the powerful ways we have
collaborated to make a fundamental difference in their businesses. These
conversations have confirmed for me the strength of the Company and the many
opportunities ahead to leverage our capabilities and accelerate growth."

Commenting on these results, Roger Carlile, Executive Vice President and Chief
Financial Officer of FTI Consulting said, "Our fourth quarter results cap off
an outstanding year for our Economic Consulting segment and health solutions
practice, which grew revenues year-over-year for the quarter by 12.9 percent
and 57.1 percent, respectively. Further, our Technology business increased
year-over-year revenues for the quarter by 12.6 percent in the face of revenue
reductions related to the wind-down of a significant client matter, as we
benefitted from rising client demand for providers with global reach and
end-to-end capabilities."

Cash and Capital Allocation

Net cash provided by operating activities for fiscal 2013 was $193.3 million
compared to $120.2 million in the prior year period. Cash and cash equivalents
were $205.8 million at December 31, 2013. During the fourth quarter, the
Company committed $22.4 million to repurchase and retire 534,875 shares of the
Company's common stock and spent $14.7 million on acquisitions. In fiscal
2013, the Company committed $71.1 million to repurchase and retire 1.957
million shares of the Company's common stock and spent $55.5 million on
acquisitions.

Fourth Quarter Segment Results

Corporate Finance/Restructuring
Revenues in the Corporate Finance/Restructuring segment decreased 14.5 percent
to $92.8 million in the quarter compared to $108.5 million in the prior year
quarter. The decrease in revenues was primarily due to lower success fees and
continued lower bankruptcy and restructuring revenues in the North America
region. Adjusted Segment EBITDA was $16.2 million or 17.5 percent of segment
revenues compared to $27.7 million or 25.5 percent of segment revenues in the
prior year quarter. Adjusted Segment EBITDA included a $5.3 million
remeasurement gain primarily related to the reduction of the liability for
estimated future contingent consideration payments related to acquired
businesses in Australia. This compares to a remeasurement gain of $1.4 million
recorded in the prior year quarter. Adjusted Segment EBITDA margin was
impacted favorably by the remeasurement gain but was more than offset by
underutilization in the segment's North America bankruptcy and restructuring
practice, lower success fees and lower realized bill rates due to the mix of
services in our telecom, media, and technology practice and costs related to
the expansion of our transaction advisory services practice in the Europe,
Middle East and Africa ("EMEA") region. The segment also recorded a special
charge of $3.9 million in the quarter related to the acceleration of
contractual transition service expense for a senior client-service
professional.

Economic Consulting
Revenues in the Economic Consulting segment increased 12.9 percent to $108.1
million in the quarter compared to $95.7 million in the prior year quarter.
The increase in revenues was driven by strong performance in the segment's
antitrust litigation services in the North America and EMEA regions and its
international arbitration, regulatory and valuation practices in the EMEA
region. Adjusted Segment EBITDA was $22.0 million or 20.3 percent of segment
revenues compared to $21.5 million or 22.4 percent of segment revenues in the
prior year quarter. Adjusted Segment EBITDA margin was impacted by higher
performance-based compensation expense.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased 18.0
percent to $114.7 million in the quarter compared to $97.2 million in the
prior year quarter. The increase in revenues was primarily due to increased
demand and higher success fees for the segment's health solutions practice, as
well as increased demand for the segment's global financial and enterprise
data analytics practice. Adjusted Segment EBITDA was $17.6 million or 15.3
percent of segment revenues compared to $10.1 million or 10.4 percent of
segment revenues in the prior year quarter. The increase in Adjusted Segment
EBITDA margin was due to the growth in the segment's higher margin health
solutions practice and improved utilization in the financial and enterprise
data analytics practice. This increase was partially offset by an increase in
performance-based compensation expense.

Technology
Revenues in the Technology segment increased 12.6 percent to $53.6 million in
the quarter compared to $47.6 million in the prior year quarter. The increase
in revenues was due to higher services revenue primarily for investigations
involving the Foreign Corrupt Practices Act ("FCPA") and certain financial
services matters. Adjusted Segment EBITDA was $14.7 million or 27.4 percent of
segment revenues compared to $15.5 million or 32.5 percent of segment revenues
in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was
due to client mix, reduced pricing for certain services and higher
performance-based compensation expense.

Strategic Communications
Revenues in the Strategic Communications segment decreased 6.8 percent to
$46.9 million in the quarter compared to $50.3 million in the prior year
quarter. Revenues were lower due to reduced pass-through revenues and project
revenues in the EMEA and North America regions. Adjusted Segment EBITDA was
$5.9 million or 12.6 percent of segment revenues compared to $8.7 million or
17.4 percent of segment revenues in the prior year quarter. Adjusted Segment
EBITDA margin was impacted by reduced high-margin project fees in the EMEA and
North America regions.

First Quarter 2014 Guidance
The Company estimates that revenues for the first quarter of 2014 will be
between $410.0 million and $425.0 million and Adjusted EPS will be between
$0.20 and $0.28. This guidance assumes no acquisitions and no share
repurchases.

Fourth Quarter and Full Year 2013 Conference Call
FTI Consulting will host a conference call for analysts and investors to
discuss fourth quarter and full year 2013 financial results at 9:00 a.m.
Eastern Time on February 20, 2014. 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.

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 more than 4,200 employees
located in 26 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 $1.65 billion in revenues during fiscal year 2013. 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 (loss) before income tax provision, other non-operating income
(expense), depreciation, amortization of intangible assets, special charges,
goodwill impairment charges and loss on early extinguishment of debt. 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 (loss) 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 EPS. Management uses Adjusted EPS 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 and in the Company's other filings with the SEC,
including the risks set forth under "Risks Related to Our Reportable 
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.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
FOR THE YEAR ENDED DECEMBER 31, 2013 AND 2012
(in thousands, except per share data)
                                        Year Ended
                                        December 31,
                                        2013                 2012
Revenues                                $               $     
                                        1,652,432           1,576,871
Operating expenses
Direct cost of revenues                 1,042,061            980,532
Selling, general and administrative     394,681              378,016
expense
Special charges                         38,414               29,557
Acquisition-related contingent          (10,869)             (3,064)
consideration
Amortization of other intangible assets 22,954               22,407
Goodwill impairment charge              83,752               110,387
                                        1,570,993            1,517,835
Operating income                        81,439               59,036
Other income (expense)
Interest income and other               1,748                5,659
Interest expense                        (51,376)             (56,731)
Loss on early extinguishment of debt    -                    (4,850)
                                        (49,628)             (55,922)
Income before income tax provision      31,811               3,114
Income tax provision                    42,405               40,100
Net loss                                $             $      
                                        (10,594)             (36,986)
Loss per common share - basic           $           $        
                                        (0.27)               (0.92)
Weighted average common shares          39,188               40,316
outstanding - basic
Loss per common share - diluted         $           $        
                                        (0.27)               (0.92)
Weighted average common shares          39,188               40,316
outstanding - diluted
Other comprehensive income (loss), net
of tax:
Foreign currency translation
adjustments, including tax expense
 (benefit) of $0 and $654 in 2013 and $            $       
2012, respectively                      (9,720)              15,023
Other comprehensive income (loss), net  (9,720)              15,023
of tax
Comprehensive loss                      $             $      
                                        (20,314)             (21,963)



FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2013 AND 2012
(in thousands, except per share data)
                                        Three Months Ended
                                        December 31,
                                        2013                 2012
Revenues                                $             $      
                                        415,998              399,345
Operating expenses
Direct cost of revenues                 268,901              245,080
Selling, general and administrative     107,196              94,058
expense
Special charges                         27,568               -
Acquisition-related contingent          (4,778)              (483)
consideration
Amortization of other intangible assets 5,661                5,634
Goodwill impairment charge              -                    110,387
                                        404,548              454,676
Operating income (loss)                 11,450               (55,331)
Other income (expense)
Interest income and other               46                   1,156
Interest expense                        (12,776)             (13,124)
Loss on early extinguishment of debt    -                    (4,850)
                                        (12,730)             (16,818)
Loss before income tax provision        (1,280)              (72,149)
Income tax provision                    5,859                13,728
Net loss                                $            $      
                                        (7,139)              (85,877)
Loss per common share - basic           $           $        
                                        (0.18)               (2.15)
Weighted average common shares          39,115               39,913
outstanding - basic
Loss per common share - diluted         $           $        
                                        (0.18)               (2.15)
Weighted average common shares          39,115               39,913
outstanding - diluted
Other comprehensive income, net of tax:
Foreign currency translation
adjustments, including tax expense
 of $0 and $654 in 2013 and 2012,     $           $        
respectively                             388                 403
Other comprehensive income, net of tax  388                  403
Comprehensive loss                      $            $      
                                        (6,751)              (85,474)



FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
                                                                             Revenue-
                                                                  Average
                                   Adjusted                       Billable  Generating
                       Revenues    EBITDA    Margin  Utilization  Rate ^(4)   Headcount
                                   ^(1)              ^(4)
                        (in thousands)                                     (at period
                                                                              end)
Three Months Ended
December 31, 2013
Corporate              $       $   
Finance/Restructuring               17.5%   62%          $       737
^(3)                   92,751                                 421
                                   16,187
Forensic and                                                      $    
Litigation Consulting  114,720     17,556    15.3%   71%          322        1,061
^(3)
Economic Consulting    108,089     21,982    20.3%   74%          $       530
                                                                  506
Technology ^(2)       53,562      14,670    27.4%   N/M          N/M         306
Strategic              46,876      5,928     12.6%   N/M          N/M         590
Communications^ (2)
                       $    
                               76,323    18.3%                            3,224
                       415,998
 Corporate                      (23,321)
                                   $   
Adjusted EBITDA^(1)                      12.7%
                                      
                                   53,002
Year Ended December
31, 2013
Corporate              $       $   
Finance/Restructuring                20.6%   65%          $       737
^(3)                   382,526                                410
                                   78,797
Forensic and                                                      $    
Litigation Consulting  433,632     76,422    17.6%   68%          317        1,061
^(3)
Economic Consulting    447,366     92,204    20.6%   81%          $       530
                                                                  503
Technology ^(2)       202,663     60,655    29.9%   N/M          N/M         306
Strategic              186,245     18,737    10.1%   N/M          N/M         590
Communications^ (2)
                       $    
                                 326,815   19.8%                            3,224
                       1,652,432
 Corporate                      (67,715)
                                   $   
Adjusted EBITDA^(1)                      15.7%
                                     
                                   259,100
Three Months Ended
December 31, 2012
Corporate              $       $   
Finance/Restructuring                25.5%   64%          $       697
^(3)                   108,535                                449
                                   27,718
Forensic and                                                      $    
Litigation Consulting  97,235      10,072    10.4%   63%          318        952
^(3)
Economic Consulting    95,740      21,459    22.4%   80%          $       474
                                                                  482
Technology ^(2)       47,551      15,464    32.5%   N/M          N/M         277
Strategic              50,284      8,742     17.4%   N/M          N/M         593
Communications^ (2)
                       $    
                               83,455    20.9%                            2,993
                       399,345
 Corporate                      (15,321)
                                   $   
Adjusted EBITDA^(1)                      17.1%
                                      
                                   68,134
Year Ended December
31, 2012
Corporate              $       $   
Finance/Restructuring                25.6%   71%          $       697
^(3)                   394,719                                 416
                                   101,137
Forensic and                                                      $    
Litigation Consulting  407,586     60,572    14.9%   66%          314        952
^(3)
Economic Consulting    391,622     77,461    19.8%   81%          $       474
                                                                  493
Technology ^(2)       195,194     57,203    29.3%   N/M          N/M         277
Strategic              187,750     25,019    13.3%   N/M          N/M         593
Communications^ (2)
                       $    
                                 321,392   20.4%                            2,993
                       1,576,871
 Corporate                      (70,401)
                                   $   
Adjusted EBITDA^(1)                      15.9%
                                     
                                   250,991
^(1) We define Adjusted EBITDA as consolidated net loss before income tax provision,
other non-operating income (expense), depreciation, amortization of intangible assets,
special charges, loss on early extinguishment of debt 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 (loss) 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 Consolidated Statements of Comprehensive 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 MONTHS AND YEAR ENDED DECEMBER 31, 2013 AND 2012
                                Three Months Ended     Year Ended December 31,
                                December 31,
                                2013        2012       2013         2012
                                $       $      $        $    
Net loss                                                    
                                (7,139)     (85,877)   (10,594)     (36,986)
Add back:
Special charges, net of tax     16,167      -          23,267       19,115
effect ^(1)
Goodwill impairment             -           110,387    83,752       110,387
charge^(2)
Loss on early extinguishment    -           2,910      -            2,910
of debt, net of tax^(3)
Interim period impact of
including goodwill impairment
charges
 in the annual effective       10,805      -          -            -
tax rate
                                $       $      $        $    
Adjusted Net Income                                          
                                19,833     27,420    96,425      95,426
Loss per common share –         $       $      $        $    
diluted                                                  
                                (0.18)      (2.15)     (0.27)       (0.92)
Add back:
Special charges, net of tax     0.41        -          0.59         0.47
effect ^(1)
Goodwill impairment             -           2.77       2.14         2.74
charge^(2)
Loss on early extinguishment    -           0.07       -            0.07
of debt, net of tax^(3)
Interim period impact of
including goodwill impairment
charges
 in the annual effective       0.28        -          -            -
tax rate
Impact of denominator for
diluted adjusted earnings per   (0.02)      (0.02)     (0.07)       (0.06)
common share ^(4)
Adjusted earnings per common    $       $      $        $    
share – diluted                                         
                                0.49       0.67      2.39        2.30
Weighted average number of
common shares outstanding –     40,529      40,990     40,421       41,578
diluted^(4)
^(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 for the adjustments related to special
charges for the three months and year ended December 31, 2013 were 41.4% and
39.4%, respectively. The effective tax rate for the adjustment for special
charges for the year ended December 31, 2012 was 35.3%. The tax expense
related to the adjustments for special charges for the three months and year
ended December 31, 2013 were $11.4 million or $0.29 impact on adjusted
earnings per diluted share and $15.1 million or $0.39 impact on diluted
earnings per share, respectively. The tax expense related to the adjustment
for special charges for the year ended December 31, 2012 was $10.4 million or
$0.26 impact on adjusted earnings per diluted share.



^(2)The goodwill impairment charge is non-deductible for income tax purposes
and resulted in no tax benefit for the years ended December 31, 2013 and 2012.



^(3) 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 rate for the adjustments related to the loss on
early extinguishment of debt for the three months and year ended December 31,
2012 were 40.0%. The tax expense related to the adjustments for the three
months and year ended December 31, 2012 was $1.9 million or $0.05 impact on
adjusted earnings per diluted share.



^(4) For the three months and years ended December 31, 2013 and 2012, the
Company reported a net loss. For such 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.



RECONCILIATION OF NET LOSS AND OPERATING INCOME (LOSS) TO ADJUSTED EBITDA

(in thousands)


                     Corporate      Forensic
                     Finance        and
Three Months Ended                              Economic                  Strategic
December 31, 2013    /              Litigation              Technology^                  Corp HQ   Total
                     Restructuring              Consulting                Communications
                     ^(3)           Consulting
                                    ^(3)
Net                                                                                                 $   
loss                                                                                                  
                                                                                                    (7,139)
     Interest
     income and                                                                                     (46)
     other
     Interest                                                                                       12,776
     expense
     Income tax                                                                                     5,859
     provision
                                    $       $       $                        $      $   
Operating income     $                               $                 
(loss) ^(1)              9,869  16,017      20,481      8,909             4,240            11,450
                                                                                          (48,066)
     Depreciation
     and             908            1,000       1,024       3,773         566             1,052     8,323
     amortization
     Amortization of
     other           1,535          539         477         1,988         1,122           -         5,661
     intangible
     assets
     Special         3,875          -           -           -             -               23,693    27,568
     charges
                                    $       $       $                        $      $   
Adjusted EBITDA      $                                $                 
^(2)                    16,187   17,556      21,982      14,670            5,928            53,002
                                                                                          (23,321)
Year Ended
December 31, 2013
Net                                                                                                 $   
loss                                                                                                 
                                                                                                    (10,594)
     Interest
     income and                                                                                     (1,748)
     other
     Interest                                                                                       51,376
     expense
     Income tax                                                                                     42,405
     provision
                                    $       $       $                        $   
Operating income     $                                $               81,439
(loss) ^(1)             58,594   68,211      86,714      38,038          (72,129)    
                                                                                          (97,989)
     Depreciation
     and             3,449          3,958       3,671       14,661        2,464           4,338     32,541
     amortization
     Amortization of
     other           6,480          2,142       1,808       7,940         4,584           -         22,954
     intangible
     assets
     Special         10,274         2,111       11          16            66              25,936    38,414
     charges
     Goodwill
     impairment      -              -           -           -             83,752          -         83,752
     charge
Adjusted EBITDA      78,797         76,422      92,204      60,655        18,737          (67,715)  259,100
^(2)
Three Months Ended
December 31, 2012
Net                                                                                                 $   
loss                                                                                                 
                                                                                                    (85,877)
     Interest
     income and                                                                                     (1,156)
     other
     Interest                                                                                       13,124
     expense
     Income tax                                                                                     13,728
     provision
     Loss on early
     extinguishment                                                                                 4,850
     of debt
                                    $       $       $                        $      $   
Operating income     $                                $                
(loss) ^(1)             25,482    8,449     20,311      10,239         (103,459)              (55,331)
                                                                                          (16,353)
     Depreciation
     and             788            1,011       732         3,239         642             1,032     7,444
     amortization
     Amortization
     of other        1,448          612         416         1,986         1,172           -         5,634
     intangible
     assets
     Special         -              -           -           -             -               -         -
     charges
     Goodwill
     impairment      -              -           -           -             110,387         -         110,387
     charge
                                    $       $       $                        $      $   
Adjusted EBITDA      $                                $                 
^(2)                    27,718   10,072      21,459      15,464            8,742            68,134
                                                                                          (15,321)
Year Ended
December 31, 2012
Net                                                                                                 $   
loss                                                                                                 
                                                                                                    (36,986)
     Interest
     income and                                                                                     (5,659)
     other
     Interest                                                                                       56,731
     expense
     Income tax                                                                                     40,100
     provision
     Loss on early
     extinguishment                                                                                 4,850
     of debt
                                    $       $       $                        $   
Operating income     $                                $               59,036
(loss) ^(1)             80,970   45,809      71,992      33,642          (97,298)    
                                                                                          (76,079)
     Depreciation
     and             3,066          4,073       2,863       12,501        2,555           4,546     29,604
     amortization
     Amortization of
     other           5,769          2,414       1,615       7,946         4,663           -         22,407
     intangible
     assets
     Special         11,332         8,276       991         3,114         4,712           1,132     29,557
     charges
     Goodwill
     impairment      -              -           -           -             110,387         -         110,387
     charge
Adjusted EBITDA      101,137        60,572      77,461      57,203        25,019          (70,401)  250,991
^(2)
^(1) We define Segment Operating Income (Loss) as a segment's share of consolidated operating income (loss).
We define Total Segment Operating Income (Loss) as the total of Segment Operating Income (Loss) for all
segments, which excludes unallocated corporate expenses. We use Segment Operating Income (Loss) for the
purpose of calculating Adjusted Segment EBITDA.



^(2) We define Adjusted EBITDA as consolidated net loss before income tax provision, other non-operating
income (expense), depreciation, amortization of intangible assets, special charges, loss on early
extinguishment of debt 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 (loss) 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 Consolidated Statements of
Comprehensive 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
Consolidated Statements of Comprehensive Loss.



FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2013 AND 2012
(in thousands)
                                                          Year Ended
                                                          December 31,
                                                          2013       2012
Operating activities
Net loss                                                  $      $    
                                                          (10,594)  (36,986)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Depreciation and amortization                             32,638     33,919
Amortization and impairment of other intangible assets    22,954     22,586
Goodwill impairment charge                                83,752     110,387
Acquisition-related contingent consideration              (10,869)   (3,064)
Provision for doubtful accounts                          13,335     14,179
Non-cash share-based compensation                        35,129     29,361
Non-cash interest expense and loss on extinguishment of   2,699      9,824
debt
Other                                                     (1,582)    (488)
Changes in operating assets and liabilities, net of
effects from acquisitions:
Accounts receivable, billed and unbilled                  (56,290)   (3,691)
Notes receivable                                          (7,544)    (25,730)
Prepaid expenses and other assets                         (6,784)    (1,895)
Accounts payable, accrued expenses and other              8,505      (12,458)
Income taxes                                             7,963      (6,816)
Accrued compensation                                      82,917     (21,074)
Billings in excess of services provided                   (2,958)    12,134
 Net cash provided by operating 193,271    120,188
activities
Investing activities
Payments for acquisition of businesses, net of cash       (55,498)   (62,893)
received
Purchases of property and equipment                       (42,544)   (27,759)
Purchases of investments                                  (5,094)    -
Other                                                     45         246
 Net cash used in investing      (103,091)  (90,406)
activities
Financing activities
Borrowings under revolving line of credit                 -          75,000
Payments of revolving line of credit                      -          (75,000)
Payments of long-term debt and capital lease obligations  (6,021)    (377,859)
Issuance of debt securities, net                          -          292,608
Purchase and retirement of common stock                   (66,763)   (50,032)
Net issuance of common stock under equity compensation    29,392     1,598
plans
Other                                                     263        (4,561)
 Net cash used in financing      (43,129)   (138,246)
activities
Effect of exchange rate changes on cash and cash          1,997      826
equivalents
Net decrease in cash and cash equivalents                 49,048     (107,638)
Cash and cash equivalents, beginning of period            156,785    264,423
Cash and cash equivalents, end of period                  $      $    
                                                          205,833    156,785



FTI CONSULTING, INC.
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2013 AND DECEMBER 31, 2012
(in thousands, except per share amounts)
                                       December 31,        December 31,
                                       2013                2012
Assets
Current assets
 Cash and cash equivalents           $     205,833  $     156,785
 Accounts receivable:
 Billed receivables              352,411             314,491
 Unbilled receivables            233,307             208,797
 Allowance for doubtful accounts (109,273)           (94,048)
and unbilled services
 Accounts receivable, net     476,445             429,240
 Current portion of notes receivable 33,093              33,194
 Prepaid expenses and other current  61,800              51,541
assets
 Current portion of deferred tax     26,690              3,615
assets
Total current assets                   803,861             674,375
Property and equipment, net of         79,007              68,192
accumulated depreciation
Goodwill                               1,218,733           1,260,035
Other intangible assets, net of        97,148              104,181
amortization
Notes receivable, net of current       108,298             101,623
portion
Other assets                           57,900              67,046
Total assets                           $    2,364,947   $    2,275,452
Liabilities and Stockholders' Equity
Current liabilities
 Accounts payable, accrued expenses $     126,886  $      98,109
and other
 Accrued compensation                222,738             168,392
 Current portion of long-term debt   6,014               6,021
and capital lease obligations
 Billings in excess of services     28,692              31,675
provided
 Total current liabilities            384,330             304,197
Long-term debt and capital lease       711,000             717,024
obligations, net of current portion
Deferred income taxes                  137,697             105,751
Other liabilities                      89,661              80,248
Total liabilities                      1,322,688           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  405                 408
 outstanding ―40,526 (2013) and
40,775 (2012)
Additional paid-in capital             362,322             367,978
Retained earnings                      730,621             741,215
Accumulated other comprehensive loss   (51,089)            (41,369)
Total stockholders' equity             1,042,259           1,068,232
Total liabilities and stockholders'    $    2,364,947   $    2,275,452
equity





SOURCE FTI Consulting, Inc.

Website: http://www.fticonsulting.com
 
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