FTI Consulting Reports First Quarter 2014 Results

              FTI Consulting Reports First Quarter 2014 Results

- First Quarter Revenues of $425.6 Million

- First Quarter Adjusted EPS of $0.41; Fully Diluted EPS of $0.45

- Second Quarter 2014 Guidance for Revenues of $430 Million to $445 Million
and Adjusted EPS of $0.32 to $0.42

PR Newswire

WASHINGTON, May 1, 2014

WASHINGTON, May 1, 2014 /PRNewswire/ --FTI Consulting, Inc. (NYSE: FCN) (the
"Company"), the global business advisory firm dedicated to helping
organizations protect and enhance their enterprise value, today released its
financial results for the quarter ended March 31, 2014.

For the quarter, revenues increased 4.5 percent to $425.6 million compared to
$407.2 million in the prior year quarter. Fully diluted earnings per share
("EPS") were $0.45 compared to $0.58 in the prior year quarter. EPS included a
remeasurement gain related to the reduction in the fair value of estimated
future contingent consideration payments for prior acquisitions, which
increased first quarter EPS by $0.04. First quarter Adjusted EPS were $0.41
compared to $0.59 in the prior year quarter. First quarter Adjusted EBITDA was
$51.2 million or 12.0 percent of revenues compared to $59.3 million or 14.6
percent of revenues in the prior year quarter.

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. Beginning
with the quarter ended March 31, 2014, the definitions of each of these
non-GAAP measures have been updated to exclude the impact of changes in the
fair value of acquisition-related contingent consideration liabilities. All
current and prior period information reflected herein has been reclassified to
reflect this change.

Commenting on these results, Steven H. Gunby, President and Chief Executive
Officer of FTI Consulting said, "The first quarter, in many ways, heralds a
number of the themes that we will discuss at our June investor day. Our
Adjusted EPS of $0.41 at one level shows the power of our company – the fact
that, when the stakes are high and someone needs committed people with
world-leading expertise, people turn to FTI. The major driver of quarterly
results was Forensic and Litigation Consulting with a record quarter, fueled
by a number of front-page newspaper assignments from across the globe relating
to high-stakes client events ranging from FCPA investigations to
mortgage-backed security litigations. Similarly, our Technology business
continued to perform very well, driven by ongoing FCPA and financial services
investigations as well as increased cross-border M&A related 'second request'
activity."

Mr. Gunby added, "The first quarter also heralds the major set of work we have
ahead. Notwithstanding the strong performance of Forensic and Litigation
Consulting and Technology, our Adjusted EPS declined substantially
year-over-year. Corporate Finance/Restructuring's profitability continued its
downward trend, Strategic Communications had another down quarter and Economic
Consulting had a disappointing start to the year, both in terms of revenue and
profitability."

"Despite these challenges, I want be clear – since stepping into my role in
late January I am more excited than ever to be here. The deeper I get into the
business, the more impressed I am with the capabilities we have and with the
talent, commitment and enthusiasm of our people. The quality of our client
relationships is outstanding. And the potential is there. As we will discuss
in June, I continue to think we will be able, in a relatively short period of
time, to begin meeting the aspirations so many of us have for this company. At
the same time I do want to underscore that 2014 will see no rapid turnaround
in profitability. Though we see numerous opportunities to drive the
performance of all of our segments and regions, most of these opportunities
will benefit 2015 and 2016 much more than 2014. This year will be about laying
that foundation and implementing actionable initiatives now that we believe
will result in stronger market positions and enhanced stockholder returns in
the future," Mr. Gunby concluded.

Cash and Capital Allocation

Net cash used by operating activities for the quarter was $110.8 million
compared to $2.3 million in the prior year as we funded our annual bonus
payments and retention payments to key client-service professionals.
Short-term borrowings were $20.0 million at March 31, 2014, and cash and cash
equivalents were $77.0 million. During the quarter, the Company used $15.6
million for acquisition related payments and expended $4.4 million to settle
transactions to repurchase the Company's common stock that were made, but not
settled in the fourth quarter of 2013. The Company did not repurchase any
common stock during the first quarter of 2014.

First Quarter Segment Results

Corporate Finance/Restructuring
Revenues in the Corporate Finance/Restructuring segment decreased 5.1 percent
to $94.0 million in the quarter compared to $99.1 million in the prior year
quarter. Revenues declined organically by 9.6 percent due to lower demand in
our bankruptcy and restructuring practices in North America, lower average
realized bill rates due to mix of services in our telecom, media and
technology ("TMT") practice, and lower success fees in North America. Adjusted
Segment EBITDA was $11.0 million or 11.7 percent of segment revenues compared
to $19.1 million or 19.3 percent of segment revenues in the prior year
quarter. Adjusted Segment EBITDA margin was reduced by lower utilization in
our bankruptcy and restructuring practices in North America, increased
acquired overhead expenses, lower average realized bill rates due to mix of
services in our TMT practice and continued investment in our Europe, Middle
East and Africa ("EMEA") based transaction advisory services practice.

Economic Consulting
Revenues in the Economic Consulting segment decreased 7.2 percent to $106.9
million in the quarter compared to $115.2 million in the prior year quarter.
Revenues declined organically by 8.8 percent due to lower demand for our
financial economics practice in North America and lower demand and realization
in our international arbitration, regulatory and valuation practices in EMEA,
which was partially offset by higher demand for our antitrust litigation
practice in EMEA. Adjusted Segment EBITDA was $13.0 million or 12.2 percent of
segment revenues compared to $26.2 million or 22.7 percent of segment revenues
in the prior year quarter. Adjusted Segment EBITDA margin was reduced by lower
utilization in our financial economics practice in North America, the impact
of employment contract extensions of key senior client-service professionals
and lower utilization and realization in our international arbitration,
regulatory and valuation practices in EMEA, which was partially offset by
higher utilization in our antitrust litigation practice in EMEA.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased 20.6
percent to $121.4 million in the quarter compared to $100.7 million in the
prior year quarter. Revenues grew organically by 17.6 percent due to increased
demand for the segment's global data analytics, disputes and insurance
practices in North America, and the forensic accounting and global risk and
investigations practices ("GRIP") in Asia Pacific. Adjusted Segment EBITDA was
$26.5 million or 21.8 percent of segment revenues compared to $12.8 million or
12.7 percent of segment revenues in the prior year quarter. The increase in
Adjusted Segment EBITDA margin was due to improved utilization and employee
leverage in the aforementioned practices.

Technology
Revenues in the Technology segment increased 28.6 percent to $60.1 million in
the quarter compared to $46.7 million in the prior year quarter. The increase
in revenues was due to Foreign Corrupt Practices Act ("FCPA") and financial
services industry investigations, increased merger and acquisition related
"second request" activity and higher volume for services, which was partially
offset by lower pricing for services. Adjusted Segment EBITDA was $17.3
million or 28.9 percent of segment revenues compared to $13.7 million or 29.4
percent of segment revenues in the prior year quarter. The decrease in
Adjusted Segment EBITDA margin was due to the mix of lower margin services and
increased investment in business development support.

Strategic Communications
Revenues in the Strategic Communications segment decreased 4.9 percent to
$43.2 million in the quarter compared to $45.5 million in the prior year
quarter. Revenues declined organically by 8.9 percent or $4.0 million due to
reduced pass-through revenues. Adjusted Segment EBITDA was $2.7 million or 6.3
percent of segment revenues compared to $3.6 million or 7.8 percent of segment
revenues in the prior year quarter. Adjusted Segment EBITDA margin was
impacted by higher non-recurring facilities costs related to the transition to
our new London office and increased acquired overhead costs, which were
partially offset by reduced pass-through costs.

Second Quarter 2014 Guidance
The Company estimates that revenues for the second quarter of 2014 will be
between $430.0 million and $445.0 million and Adjusted EPS will be between
$0.32 and $0.42. Expectations for second quarter 2014 Adjusted EPS consider
projected shifts in business mix and increased costs as compared to the first
quarter of 2014, notwithstanding the non-recurrence of certain costs incurred
in the first quarter of 2014. As discussed previously, full year 2014 revenues
and Adjusted EPS guidance will be provided during the Company's investor day
on June 16, 2014.

First Quarter 2014 Conference Call
FTI Consulting will host a conference call for analysts and investors to
discuss first quarter 2014 financial results at 9:00 a.m. Eastern Time on May
1, 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 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 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.

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, remeasurement of
acquisition-related contingent consideration, special charges, goodwill
impairment charges and losses 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, remeasurement of
acquisition-related contingent consideration, 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
remeasurement of acquisition-related contingent consideration, 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 remeasurement of acquisition-related contingent
consideration, 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
remeasurement of acquisition-related contingent consideration, 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.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013
(in thousands, except per share data)
(unaudited)
                                      Three Months Ended
                                      March 31,
                                      2014                 2013
Revenues                              $             $      
                                      425,552              407,178
Operating expenses
Direct cost of revenues               274,275              258,480
Selling, general and administrative   108,387              96,647
expense
Special charges                       -                    427
Acquisition-related contingent        (1,843)              731
consideration
Amortization of other intangible      4,616                5,564
assets
                                      385,435              361,849
Operating income                      40,117               45,329
Other income (expense)
Interest income and other             1,003                937
Interest expense                      (12,655)             (12,715)
                                      (11,652)             (11,778)
Income before income tax provision    28,465               33,551
Income tax provision                  10,348               9,871
Net income                            $            $       
                                      18,117               23,680
Earnings per common share - basic     $           $         
                                       0.46               0.60
Earnings per common share - diluted   $           $         
                                       0.45               0.58
Weighted average common shares        39,438               39,403
outstanding - basic
Weighted average common shares        40,457               40,620
outstanding - diluted
Other comprehensive income (loss),
net of tax:
Foreign currency translation          $           $      
adjustments, net of tax of $0         4,728                (15,509)
Total other comprehensive income      4,728                (15,509)
(loss), net of tax
Comprehensive income                  $            $        
                                      22,845               8,171





FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
                                                                Average   Revenue-
                                 Adjusted                       Billable  Generating
                       Revenues  EBITDA    Margin  Utilization  Rate      Headcount
                                 ^(1)              ^(3)         ^(3)
                       (in thousands)                                     (at period
                                                                          end)
Three Months Ended
March 31, 2014
Corporate              $ 93,982  $ 10,951  11.7%   70%          $ 362     726
Finance/Restructuring
Forensic and           121,429   26,494    21.8%   75%          $ 317     1,076
Litigation Consulting
Economic Consulting    106,851   13,030    12.2%   72%          $ 523     538
Technology ^(2)        60,063    17,348    28.9%   N/M          N/M     321
Strategic              43,227    2,729     6.3%    N/M          N/M     584
Communications ^ (2)
                       $         70,552    16.6%                          3,245
                       425,552
Corporate                        (19,356)
Adjusted EBITDA^(1)              $ 51,196  12.0%
Three Months Ended
March 31, 2013
Corporate              $ 99,080  $ 19,085  19.3%   71%          $ 409     683
Finance/Restructuring
Forensic and           100,724   12,811    12.7%   66%          $ 319     965
Litigation Consulting
Economic Consulting    115,194   26,194    22.7%   89%          $ 493     476
Technology ^(2)        46,704    13,716    29.4%   N/M          N/M     275
Strategic              45,476    3,554     7.8%    N/M          N/M     619
Communications ^ (2)
                       $         75,360    18.5%                          3,018
                       407,178
Corporate                        (16,034)
Adjusted EBITDA^(1)              $ 59,326  14.6%
(1) We define Adjusted EBITDA as consolidated net income before income tax
provision, other non-operating income (expense), depreciation, amortization of
intangible assets, remeasurement of acquisition-related contingent consideration,
special charges, goodwill impairment charges and losses on early extinguishment of
debt. 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, remeasurement of acquisition-related contingent consideration,
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 remeasurement of
acquisition-related contingent consideration, 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. 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) 2013 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 ENDED MARCH 31, 2014 AND 2013
(in thousands, except per share data)
                                                  Three Months Ended March 31,
                                                  2014           2013
Net income                                        $        $      
                                                  18,117        23,680
Add back:
Special charges, net of tax effect ^(1)           -              253
Remeasurement of acquisition-related contingent   (1,350)        -
consideration, net of tax effect ^(2)
Adjusted Net Income ^(3)                          $        $      
                                                  16,767        23,933
Earnings per common share – diluted               $        $      
                                                    0.45        0.58
Add back:
Special charges, net of tax effect ^(1)           -              0.01
Remeasurement of acquisition-related contingent   (0.04)         -
consideration, net of tax effect ^(2)
Adjusted earnings per common share – diluted      $        $      
^(3)                                                0.41        0.59
Weighted average number of common shares          40,457         40,620
outstanding – diluted

^(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 rate for the adjustments related to special
charges for the three months ended March 31, 2013 was 40.7%. The tax expense
related to the adjustment for special charges for the three months ended March
31, 2013 was $0.2 million with no impact on diluted earnings per share. In the
three months ended March 31, 2014, there were no special charges.
^
(2)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 the
remeasurement of acquisition-related contingent consideration for the three
months ended March 31, 2014 was 36.4%. The tax expense related to the
remeasurement of acquisition-related contingent consideration for the three
months ended March 31, 2014 was $0.8 million or a $0.02 impact on diluted
earnings per share. In the three months ended March 31, 2013 there was no fair
value remeasurement of contingent consideration.

^(3)We define Adjusted Net Income and Adjusted Earnings per Diluted Share as
net income and earnings per diluted share, respectively, excluding the impact
of remeasurement of acquisition-related contingent consideration, 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 remeasurement of acquisition-related contingent consideration,
special charges, goodwill impairment charges and losses on early
extinguishment of debt.





RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA
(in thousands)
                     Corporate      Forensic
                     Finance        and         Economic                  Strategic
Three Months Ended                                          Technology^                  Corp HQ   Total
March 31, 2014       /              Litigation  Consulting                Communications
                     Restructuring
                                    Consulting
                                                                                                    $   
Net income                                                                                            
                                                                                                    18,117
 Interest income                                                                                    (1,003)
 and other
 Interest expense                                                                                   12,655
 Income tax                                                                                         10,348
 provision
                                    $       $       $                        $      $   
Operating            $                                $                 
income ^(1)              8,607  25,402      12,430      13,066            1,005            40,117
                                                                                          (20,393)
 Depreciation and    791            1,015       1,081       4,064         597             1,037     8,585
 amortization
 Amortization of
 other intangible    2,215          750         306         218           1,127           -         4,616
 assets
 Remeasurement of
 acquisition-related (662)          (673)       (787)       -             -               -         (2,122)
 contingent
 consideration
                                    $       $       $                        $      $   
Adjusted EBITDA      $                                $                 
^(2)                    10,951   26,494      13,030      17,348            2,729            51,196
                                                                                          (19,356)
Three Months Ended
March 31, 2013
                                                                                                    $   
Net income                                                                                            
                                                                                                    23,680
 Interest income                                                                                    (937)
 and other
 Interest expense                                                                                   12,715
 Income tax                                                                                         9,871
 provision
                                    $       $       $                        $      $   
Operating            $                               $                 
income ^(1)             16,699   11,102      24,995      8,082             1,727            45,329
                                                                                          (17,276)
 Depreciation and    767            1,024       805         3,635         645             1,130     8,006
 amortization
 Amortization
 of other            1,551          512         398         1,985         1,118           -         5,564
 intangible
 assets
 Special charges     68             173         (4)         14            64              112       427
                                    $       $       $                        $      $   
Adjusted EBITDA      $                                $                 
^(2)                    19,085   12,811      26,194      13,716            3,554            59,326
                                                                                          (16,034)
(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, remeasurement of acquisition-related
contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of
debt. 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, remeasurement of acquisition-related
contingent consideration, 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 remeasurement of acquisition-related contingent
consideration, 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. See also our reconciliation of GAAP to non-GAAP financial measures.





FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013
(in thousands)
(unaudited)
                                                      Three Months Ended
                                                      March 31,
                                                      2014         2013
Operating activities
Net income                                            $       $     
                                                      18,117       23,680
Adjustments to reconcile net income to net cash used
in operating activities:
Depreciation and amortization                         8,585        8,006
Amortization of other intangible assets               4,616        5,564
Acquisition-related contingent consideration          (1,843)      731
Provision for doubtful accounts                      4,442        4,094
Non-cash share-based compensation                    9,503        10,055
Non-cash interest expense                             675          670
Other                                                 (443)        (135)
Changes in operating assets and liabilities, net of
effects from acquisitions:
Accounts receivable, billed and unbilled              (71,474)     (47,711)
Notes receivable                                      (26,088)     (227)
Prepaid expenses and other assets                     11,927       531
Accounts payable, accrued expenses and other          18,815       16,603
Income taxes                                         (684)        2,937
Accrued compensation                                  (93,573)     (28,862)
Billings in excess of services provided               6,630        1,760
 Net cash used in operating (110,795)    (2,304)
activities
Investing activities
Payments for acquisition of businesses, net of cash   (15,611)     (14,676)
received
Purchases of property and equipment                   (15,179)     (7,323)
Other                                                 (10)         12
 Net cash used in investing  (30,800)     (21,987)
activities
Financing activities
Borrowings under revolving line of credit, net        20,000       -
Purchase and retirement of common stock               (4,367)      (28,758)
Net issuance of common stock under equity             (2,490)      (1,335)
compensation plans
Other                                                 (101)        (100)
 Net cash provided by (used  13,042       (30,193)
in) financing activities
Effect of exchange rate changes on cash and cash      (275)        (1,598)
equivalents
Net decrease in cash and cash equivalents             (128,828)    (56,082)
Cash and cash equivalents, beginning of period        205,833      156,785
Cash and cash equivalents, end of period              $       $    
                                                      77,005       100,703





FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AT MARCH 31, 2014 AND DECEMBER 31, 2013
(in thousands, except per share amounts)
                                       March 31,            December 31,
                                       2014                 2013
Assets                                 (unaudited)
Current assets
 Cash and cash equivalents           $      77,005  $     205,833
 Accounts receivable:
 Billed receivables              375,176              352,411
 Unbilled receivables            296,838              233,307
 Allowance for doubtful accounts (126,942)            (109,273)
and unbilled services
 Accounts receivable, net     545,072              476,445
 Current portion of notes receivable 33,592               33,093
 Prepaid expenses and other current  49,014               61,800
assets
 Current portion of deferred tax     26,543               26,690
assets
 Total current assets                 731,226              803,861
Property and equipment, net of         85,993               79,007
accumulated depreciation
Goodwill                               1,221,318            1,218,733
Other intangible assets, net of        88,871               97,148
amortization
Notes receivable, net of current       130,721              108,298
portion
Other assets                           54,438               57,900
Total assets                           $    2,312,567    $    2,364,947
Liabilities and Stockholders' Equity
Current liabilities
 Accounts payable, accrued expenses $     112,808   $     126,886
and other
 Accrued compensation                124,870              222,738
 Current portion of long-term debt   26,000               6,014
 Billings in excess of services     35,532               28,692
provided
 Total current liabilities            299,210              384,330
Long-term debt, net of current portion 711,000              711,000
Deferred income taxes                  142,390              137,697
Other liabilities                      82,939               89,661
Total liabilities                      1,235,539            1,322,688
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  409                  405
 outstanding ―40,854 (2014) and
40,526 (2013)
Additional paid-in capital             374,242              362,322
Retained earnings                      748,738              730,621
Accumulated other comprehensive loss   (46,361)             (51,089)
Total stockholders' equity             1,077,028            1,042,259
Total liabilities and stockholders'    $    2,312,567    $    2,364,947
equity







SOURCE FTI Consulting, Inc.

Website: http://www.fticonsulting.com
 
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