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8-K - FORM 8-K - FTI CONSULTING, INCd306541d8k.htm

Exhibit 99.1

FTI CONSULTING, INC. REPORTS 2011 FOURTH QUARTER AND FULL YEAR RESULTS

• Record Fourth Quarter Revenues of $390.7 Million

• Fourth Quarter Adjusted EPS of $0.93, Including a $0.23 Revaluation Gain

• 2012 Guidance for Diluted EPS of $2.80 to $3.00

WEST PALM BEACH, FL, February 23, 2012

FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today reported its financial results for the fourth quarter and full year ended December 31, 2011.

For the quarter, revenues increased 9.7 percent to a fourth quarter record of $390.7 million compared to $356.2 million in the prior year quarter. Diluted earnings per share and Adjusted EPS for the quarter were $0.93. For the quarter, Adjusted EPS before a $10.0 million revaluation gain (described elsewhere in this press release) were $0.70, representing a 34.6 percent increase over Adjusted EPS for the prior year quarter.

Cash from operations in the quarter was $127.0 million compared to $99.2 million in the prior year, and Cash and Cash equivalents were $264.4 million at December 31, 2011.

Adjusted EPS, Adjusted EBITDA, Adjusted Segment EBITDA and Adjusted Net Income (which appear in the accompanying tables) are non-GAAP measures, as defined elsewhere in this press release and are reconciled to GAAP measures in the financial tables that accompany this press release.

Commenting on these results, Jack Dunn, President and Chief Executive Officer of the Company said:

“This was a great year for FTI Consulting. Strong performances for Economics, Technology and FLC in the fourth quarter capped annual growth rates of 38 percent, 24 percent and 13 percent, respectively. Our global strategy of solving client issues wherever and whenever they occur continues to be validated by fourth quarter revenue growth in Latin America of 84 percent, Asia Pacific of 72 percent and EMEA of 26 percent.

“Innovation in our services and products and in the way we go to market is an important area of focus for our Company. We continue to lead in innovation of proprietary intellectual property in our technology segment, as demonstrated by industry awards, the success of our Acuity offering, the roll out of Ringtail® 8 and the application of intelligent review and predictive coding to provide better and more cost effective solutions for our clients. We have significantly increased our domain expertise in important industries such as healthcare, insurance and energy. We are offering new and enhanced services to major institutional investors around the world including global due diligence, transparency and compliance investigations.

“This growth and innovation is possible because of our sound financial position – our balance sheet, cash generation and earnings are sources of stability and allow us to invest in people and processes that form the foundation for continued organic growth and growth through acquisitions.

“We used this strength to complete a $500 million share repurchase program over the last two years without adversely affecting our financial position. We also capitalized on our position as an industry leader to attract over 200 great professionals from LECG through a series of transactions. These professionals, now benefitting from the strength of the FTI platform, are generating annualized revenue in excess of $100 million.

“Finally, we completed our ‘one firm’ project and now look to benefit from a common approach and brand around the globe. Our people have embraced ‘FTI Consulting’ as their brand, their shared vision and the platform from which they will continue to serve clients with wisdom, expertise, experience and enthusiasm. We look forward to 2012.”


Fourth Quarter Segment Results

Corporate Finance/Restructuring

Revenues in the Corporate Finance/Restructuring segment decreased 4.3 percent to $108.4 million from $113.2 million in the prior year quarter. While the pace of the business continued generally consistent with the prior three quarters, reduced demand for restructuring services was partially offset by improvements in the segment’s healthcare practice and contributions from its European tax group acquired from LECG. Adjusted Segment EBITDA before the revaluation gain was $29.4 million, or 27.1 percent of segment revenues, compared with $26.8 million, or 23.6 percent of segment revenues, in the prior year quarter.

Forensic and Litigation Consulting

For the quarter, revenues in the Forensic and Litigation Consulting segment increased 11.1 percent to $90.0 million from $81.0 million in the prior year quarter. Organic revenue growth of $3.5 million, or 4.3 percent, was driven by increased demand in the Asia Pacific region for forensic accounting and litigation support services, construction solutions, and higher revenues in the data analytics practice. The remainder of the increase resulted from revenues generated by the acquired LECG practices. Adjusted Segment EBITDA before the revaluation gain was $15.2 million in the quarter, or 16.9 percent of segment revenues, compared to $18.2 million, or 22.5 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was primarily due to the investment in acquired practices and senior practitioners who have yet to achieve targeted revenue production.

Economic Consulting

For the quarter, revenues in the Economic Consulting segment increased 39.1 percent to $89.6 million from $64.4 million in the prior year quarter. Organic revenue growth of $7.4 million, or 11.4 percent, was primarily attributable to increased demand for our antitrust and M&A practice and our financial economics practice. The remainder of the increase resulted from revenues generated by the acquired LECG practices. Adjusted Segment EBITDA was $16.4 million, or 18.3 percent of segment revenues, compared to $12.8 million, or 19.9 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was primarily attributable to higher variable compensation costs relative to 2010 and margin compression from the acquired practices, partially offset by higher total segment utilization and lower bad debt expense.

Technology

Revenues in the Technology segment increased 12.3 percent to $53.6 million from $47.7 million in the prior year quarter. The segment continued to benefit from investigation, litigation, and M&A activity. Several large client assignments drove higher demand for our AcuityTM review services, our on-demand hosting services and our associated consulting services. This increase was partially offset by lower direct licensing revenue compared to the prior year quarter. Adjusted Segment EBITDA was $18.6 million or 34.8 percent of segment revenues, compared to $17.7 million, or 37.1 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was primarily due to a change in the mix of revenue with higher third party costs related to an increase in certain litigation engagements.

Strategic Communications

Revenues in the Strategic Communications segment decreased slightly to $49.2 million from $49.9 million in the prior year quarter. Adjusted Segment EBITDA was $7.5 million, or 15.3 percent of segment revenues, compared to $7.4 million, or 14.8 percent of segment revenues, in the prior year quarter.

Revaluation Gain – Acquisition-Related Contingent Consideration

Despite favorable performance of our recent Asian acquisition, the Company revalued the acquisition-related contingent consideration liability. This revaluation was based upon a reduction in the consideration expected to be paid during the remainder of the finite earnout period. The resulting reduction in the liability of $10.0 million was recorded as income and is included within “Acquisition-related contingent consideration” in the Consolidated Statements of Income.


2012 Guidance

Based on current market conditions and the factors described above, the Company estimates that revenues for 2012 will be between $1.60 billion and $1.72 billion and diluted EPS will be between $2.80 and $3.00. This guidance assumes no acquisitions and no share repurchases.

Fourth Quarter Conference Call

FTI will hold a conference call for analysts and investors to discuss fourth quarter financial results at 9:00 AM Eastern Time on February 24, 2012. 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 http://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 3,800 employees located in 23 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 and restructuring. More information can be found at http://www.fticonsulting.com.

Use of Non-GAAP Measure

Note: We define Adjusted EBITDA as consolidated operating income before depreciation, amortization of intangible assets and special charges. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets and special charges. We define Adjusted Net Income as the net income excluding special charges and debt extinguishment costs that were incurred in that period. We define Adjusted earnings per diluted share (Adjusted EPS) as earnings per diluted share excluding the per share impact of special charges and debt extinguishment costs that were incurred in that period. Although Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Net Income and Adjusted EPS are not measures of financial condition or performance determined in accordance with generally accepted accounting principles (“GAAP”), we believe that these measures can be a useful operating performance measure for evaluating our results of operations as compared from period to period and as compared to our competitors. Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are common alternative measures of operating performance which may be used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in our industry. We use Adjusted EBITDA and Adjusted Segment EBITDA to evaluate and compare the operating performance of our segments. Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Net Income and Adjusted EPS are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. These non-GAAP measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our statements of income. Reconciliations of operating income to Adjusted EBITDA, segment operating income to Adjusted Segment EBITDA, net income to Adjusted Net Income and EPS to Adjusted EPS are included in the accompanying tables to today’s 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 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 and in the Company’s other filings with the Securities and Exchange Commission, including the risks set forth under “Risks Related to Our Business 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.

FINANCIAL TABLES FOLLOW


FTI CONSULTING, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

(in thousands, except per share data)

 

     Year Ended December 31,  
     2011     2010 (1)  

Revenues

   $ 1,566,768      $ 1,401,461   
  

 

 

   

 

 

 

Operating expenses

    

Direct cost of revenues

     956,908        825,599   

Selling, general and administrative expense

     373,295        341,239   

Special charges

     15,212        51,131   

Acquisition-related contingent consideration

     (6,465     1,190   

Amortization of other intangible assets

     22,371        23,910   
  

 

 

   

 

 

 
     1,361,321        1,243,069   
  

 

 

   

 

 

 

Operating income

     205,447        158,392   
  

 

 

   

 

 

 

Other income (expense)

    

Interest income and other

     6,304        4,423   

Interest expense

     (58,624     (50,263

Loss on early extinguishment of debt

     —          (5,161
  

 

 

   

 

 

 
     (52,320     (51,001
  

 

 

   

 

 

 

Income before income tax provision

     153,127        107,391   

Income tax provision

     49,224        41,407   
  

 

 

   

 

 

 

Net income

   $ 103,903      $ 65,984   
  

 

 

   

 

 

 

Earnings per common share - basic

   $ 2.53      $ 1.45   
  

 

 

   

 

 

 

Weighted average common shares outstanding - basic

     41,131        45,557   
  

 

 

   

 

 

 

Earnings per common share - diluted

   $ 2.39      $ 1.38   
  

 

 

   

 

 

 

Weighted average common shares outstanding - diluted

     43,473        47,664   
  

 

 

   

 

 

 

 

(1)

These amounts are revised based upon our completion of a re-examination of our historical practices regarding our accounting for compensation expense related to our Senior Managing Director Incentive Compensation Program and related agreements. In connection with this evaluation, we concluded that we had reported immaterial errors in prior period financial statements. Further information related to these immaterial errors can be found in the Current Report on Form 8-K as filed by the Company with the Securities and Exchange Commission on November 2, 2011. This press release should be read in conjunction with such previously filed Form 8-K. The impact of the correction of these errors resulted in a decrease in net income of $5.9 million and a decrease in basic and fully-diluted earnings per share of $0.13 for the year ended December 31, 2010.


FTI CONSULTING, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED DECEMBER 31, 2011 AND 2010

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended
December 31,
 
     2011     2010 (1)  

Revenues

   $ 390,713      $ 356,248   
  

 

 

   

 

 

 

Operating expenses

    

Direct cost of revenues

     233,005        207,959   

Selling, general and administrative expense

     92,932        88,222   

Special charges

     —          21,775   

Acquisition-related contingent consideration

     (9,004     1,011   

Amortization of other intangible assets

     5,576        5,681   
  

 

 

   

 

 

 
     322,509        324,648   
  

 

 

   

 

 

 

Operating income

     68,204        31,600   
  

 

 

   

 

 

 

Other income (expense)

    

Interest income and other

     895        (317

Interest expense

     (14,495     (15,663
  

 

 

   

 

 

 
     (13,600     (15,980
  

 

 

   

 

 

 

Income before income tax provision

     54,604        15,620   

Income tax provision

     14,723        6,765   
  

 

 

   

 

 

 

Net income

   $ 39,881      $ 8,855   
  

 

 

   

 

 

 

Earnings per common share - basic

   $ 1.00      $ 0.20   
  

 

 

   

 

 

 

Weighted average common shares outstanding - basic

     39,932        45,110   
  

 

 

   

 

 

 

Earnings per common share - diluted

   $ 0.93      $ 0.19   
  

 

 

   

 

 

 

Weighted average common shares outstanding - diluted

     42,857        46,972   
  

 

 

   

 

 

 

 

(1) These amounts are revised based upon our completion of a re-examination of our historical practices regarding our accounting for compensation expense related to our Senior Managing Director Incentive Compensation Program and related agreements. In connection with this evaluation, we concluded that we had reported immaterial errors in prior period financial statements. Further information related to these immaterial errors can be found in the Current Report on Form 8-K as filed by the Company with the Securities and Exchange Commission on November 2, 2011. This press release should be read in conjunction with such previously filed Form 8-K. The impact of the correction of these errors resulted in a decrease in net income of $1.8 million and a decrease in basic and fully-diluted earnings per share of $0.04 for the three months ended December 31, 2010.


FTI CONSULTING, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

(unaudited)

 

      Three Months Ended
December 31,
     Year Ended
December 31,
 
     2011      2010 (2)      2011      2010 (2)  

Net income

   $ 39,881       $ 8,855       $ 103,903       $ 65,984   

Add backs:

           

Special charges, net of tax

     —           15,553         9,285         32,733   

Loss on early extinguishment of debt, net of tax

     —           —           —           3,019   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income (1)

   $ 39,881       $ 24,408       $ 113,188       $ 101,736   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per common share - diluted

   $ 0.93       $ 0.19       $ 2.39       $ 1.38   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted earnings per common share - diluted (1)

   $ 0.93       $ 0.52       $ 2.60       $ 2.13   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average number of common shares outstanding - diluted

     42,857         46,972         43,473         47,664   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

We define adjusted net income and adjusted earnings per diluted share as net income and earnings per diluted share, respectively, excluding the impact of the special charges and loss on early extinguishment of debt that were incurred in that period, and their related income tax effects.

(2) 

These amounts are revised based upon our completion of a re-examination of our historical practices regarding our accounting for compensation expense related to our Senior Managing Director Incentive Compensation Program and related agreements. In connection with this evaluation, we concluded that we had reported immaterial errors in prior period financial statements. Further information related to these immaterial errors can be found in the Current Report on Form 8-K as filed by the Company with the Securities and Exchange Commission on November 2, 2011. This press release should be read in conjunction with such previously filed Form 8-K.


RECONCILIATION OF OPERATING INCOME AND NET INCOME TO ADJUSTED EBITDA

(in thousands)

(unaudited)

 

Three Months Ended December 31, 2011    Corporate
Finance /
Restructuring
     Forensic and
Litigation
Consulting
    Economic
Consulting
    Technology      Strategic
Communi-
cations
    Corp HQ     Total  

Net income

                 $ 39,881   

Interest income and other

                   (895

Interest expense

                   14,495   

Income tax provision

                   14,723   
                

 

 

 

Operating income

   $ 36,153       $ 14,723      $ 15,326      $ 13,891       $ 5,615      $ (17,504   $ 68,204   

Depreciation and amortization

     863         844        669        2,761         754        1,184        7,075   

Amortization of other intangible assets

     1,450         567        399        1,997         1,163        —          5,576   

Special charges

     —           —          —          —           —          —          —     
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 38,466       $ 16,134      $ 16,394      $ 18,649       $ 7,532      $ (16,320   $ 80,855   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
Year Ended December 31, 2011                                             

Net income

                 $ 103,903   

Interest income and other

                   (6,304

Interest expense

                   58,624   

Income tax provision

                   49,224   
                

 

 

 

Operating income

   $ 78,923       $ 62,499      $ 60,890      $ 57,917       $ 19,066      $ (73,848   $ 205,447   

Depreciation and amortization

     3,480         3,423        2,552        11,168         2,997        4,962        28,582   

Amortization of other intangible assets

     5,795         2,419        1,493        7,926         4,738        —          22,371   

Special charges

     9,440         839        2,093        —           —          2,840        15,212   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 97,638       $ 69,180      $ 67,028      $ 77,011       $ 26,801      $ (66,046   $ 271,612   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
Three Months Ended December 31, 2010 (2)                                             

Net income

                 $ 8,855   

Interest income and other

                   317   

Interest expense

                   15,663   

Income tax provision

                   6,765   
                

 

 

 

Operating income

   $ 20,364       $ 17,192      $ 12,101      $ 2,025       $ (2,387   $ (17,695   $ 31,600   

Depreciation and amortization

     940         853        549        2,872         774        1,208        7,196   

Amortization of other intangible assets

     1,593         723        296        1,832         1,237        —          5,681   

Special charges

     3,877         (534     (147     10,986         7,784        (191     21,775   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 26,774       $ 18,234      $ 12,799      $ 17,715       $ 7,408      $ (16,678   $ 66,252   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
Year Ended December 31, 2010 (2)                                             

Net income

                 $ 65,984   

Interest income and other

                   (4,423

Interest expense

                   50,263   

Loss on early extinguishment of debt

                   5,161   

Income tax provision

                   41,407   
                

 

 

 

Operating income

   $ 88,499       $ 64,121      $ 39,180      $ 27,569       $ 11,602      $ (72,579   $ 158,392   

Depreciation and amortization

     3,736         3,325        2,418        13,397         3,226        5,232        31,334   

Amortization of other intangible assets

     6,463         3,653        1,216        7,479         5,099        —          23,910   

Special charges

     9,936         4,821        6,667        15,913         9,044        4,750        51,131   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (1)

   $ 108,634       $ 75,920      $ 49,481      $ 64,358       $ 28,971      $ (62,597   $ 264,767   
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(1) We define Adjusted EBITDA as consolidated operating income before depreciation, amortization of intangible assets, and special charges. Amounts presented in the Adjusted EBITDA column for each segment reflect the segments’ respective Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as the segments' share of consolidated operating income before depreciation, amortization of intangible assets, and special charges. Although Adjusted EBITDA and Adjusted Segment EBITDA are not measures of financial condition or performance determined in accordance with generally accepted accounting principles ("GAAP"), we believe that these measures can be a useful operating performance measure for evaluating our results of operations as compared from period to period and as compared to our competitors. We use Adjusted EBITDA and Adjusted Segment EBITDA to evaluate and compare the operating performance of our segments.

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 unless the definition is the same. These non-GAAP measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Statements of Income. See also our reconciliation of non-GAAP financial measures.

 

(2) These amounts are revised based upon our completion of a re-examination of our historical practices regarding our accounting for compensation expense related to our Senior Managing Director Incentive Compensation Program and related agreements. In connection with this evaluation, we concluded that we had reported immaterial errors in prior period financial statements. Further information related to these immaterial errors can be found in the Current Report on Form 8-K as filed by the Company with the Securities and Exchange Commission on November 2, 2011. This press release should be read in conjunction with such previously filed Form 8-K.


FTI CONSULTING, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED December 31, 2011 and 2010

(in thousands)

 

     Year Ended December 31,  
     2011     2010 (1)  

Operating activities

    

Net income

   $ 103,903      $ 65,984   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     28,582        31,334   

Amortization and impairment of other intangible assets

     22,371        47,666   

Acquisition-related contingent consideration

     (6,465     1,190   

Provision for doubtful accounts

     12,586        10,720   

Non-cash share-based compensation

     37,352        35,246   

Excess tax benefits from share-based compensation

     (1,597     (204

Non-cash interest expense

     8,439        12,670   

Other

     (471     482   

Changes in operating assets and liabilities, net of effects from acquisitions:

    

Accounts receivable, billed and unbilled

     (94,178     (18,881

Notes receivable

     (3,781     (22,159

Prepaid expenses and other assets

     3,933        1,136   

Accounts payable, accrued expenses and other

     11,472        18,611   

Income taxes

     22,227        8,033   

Accrued compensation

     38,073        9,357   

Billings in excess of services provided

     (8,618     (6,131
  

 

 

   

 

 

 

Net cash provided by operating activities

     173,828        195,054   
  

 

 

   

 

 

 

Investing activities

    

Payments for acquisition of businesses, net of cash received

     (62,346     (63,086

Purchases of property and equipment

     (31,091     (22,600

Proceeds from sale or maturity of short-term investments

     —          15,000   

Other

     (211     (400
  

 

 

   

 

 

 

Net cash used in investing activities

     (93,648     (71,086
  

 

 

   

 

 

 

Financing activities

    

Borrowings under revolving line of credit

     25,000        20,000   

Payments of revolving line of credit

     (25,000     (20,000

Payments of long-term debt and capital lease obligations

     (6,994     (209,747

Issuance of debt securities

     —          390,445   

Payments of debt financing fees

     —          (3,054

Cash received for settlement of interest rate swaps

     5,596        —     

Purchase and retirement of common stock

     (209,400     (40,634

Net issuance of common stock under equity compensation plans

     11,109        6,196   

Excess of tax benefits from share-based compensation

     1,597        204   

Other

     (637     442   
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (198,729     143,852   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (1,598     (2,122
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (120,147     265,698   

Cash and cash equivalents, beginning of period

     384,570        118,872   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 264,423      $ 384,570   
  

 

 

   

 

 

 

 

(1) 

These amounts are revised based upon our completion of a re-examination of our historical practices regarding our accounting for compensation expense related to our Senior Managing Director Incentive Compensation Program and related agreements. In connection with this evaluation, we concluded that we had reported immaterial errors in prior period financial statements. Further information related to these immaterial errors can be found in the Current Report on Form 8-K as filed by the Company with the Securities and Exchange Commission on November 2, 2011. This press release should be read in conjunction with such previously filed Form 8-K.


FTI CONSULTING, INC.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2011 AND DECEMBER 31, 2010

(in thousands, except per share amounts)

 

     December 31,
2011
    December 31,
2010 (1)
 
Assets     

Current assets

    

Cash and cash equivalents

   $ 264,423      $ 384,570   

Restricted cash

     10,213        10,518   

Accounts receivable:

    

Billed receivables

     335,758        268,386   

Unbilled receivables

     173,440        120,896   

Allowance for doubtful accounts and unbilled services

     (80,096     (63,205
  

 

 

   

 

 

 

Accounts receivable, net

     429,102        326,077   

Current portion of notes receivable

     26,687        28,397   

Prepaid expenses and other current assets

     30,448        28,174   

Income taxes receivable

     10,081        13,246   
  

 

 

   

 

 

 

Total current assets

     770,954        790,982   

Property and equipment, net of accumulated depreciation

     74,448        73,238   

Goodwill

     1,309,358        1,269,447   

Other intangible assets, net of amortization

     118,889        134,970   

Notes receivable, net of current portion

     81,748        76,539   

Other assets

     55,687        60,312   
  

 

 

   

 

 

 

Total assets

   $ 2,411,084      $ 2,405,488   
  

 

 

   

 

 

 
Liabilities and Stockholders’ Equity     

Current liabilities

    

Accounts payable, accrued expenses and other

   $ 132,773      $ 105,864   

Accrued compensation

     180,366        143,971   

Current portion of long-term debt and capital lease obligations

     153,381        7,559   

Billings in excess of services provided

     19,063        27,836   


Deferred income taxes

     12,254        1,072   
  

 

 

   

 

 

 

Total current liabilities

     497,837        286,302   

Long-term debt and capital lease obligations, net of current portion

     643,579        785,563   

Deferred income taxes

     88,071        85,956   

Other liabilities

     75,395        80,061   
  

 

 

   

 

 

 

Total liabilities

     1,304,882        1,237,882   
  

 

 

   

 

 

 

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 outstanding — 41,484 (2011) and 46,144 (2010)

     415        461   

Additional paid-in capital

     383,977        546,336   

Retained earnings

     778,202        674,299   

Accumulated other comprehensive loss

     (56,392     (53,490
  

 

 

   

 

 

 

Total stockholders’ equity

     1,106,202        1,167,606   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,411,084      $ 2,405,488   
  

 

 

   

 

 

 

 

(1) 

These amounts are revised based upon our completion of a re-examination of our historical practices regarding our accounting for compensation expense related to our Senior Managing Director Incentive Compensation Program and related agreements. In connection with this evaluation, we concluded that we had reported immaterial errors in prior period financial statements. Further information related to these immaterial errors can be found in the Current Report on Form 8-K as filed by the Company with the Securities and Exchange Commission on November 2, 2011. This press release should be read in conjunction with such previously filed Form 8-K.