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8-K - FORM 8-K - FTI CONSULTING, INCd380099d8k.htm

Exhibit 99.1

 

LOGO

FTI Consulting, Inc.

1101 K Street NW

Washington, DC 20005

+1.202.312.9100

Investor & Media Contact:

Mollie Hawkes

+1.617.747.1791

mollie.hawkes@fticonsulting.com

FTI Consulting Reports First Quarter 2017 Financial Results

  First Quarter Revenues of $446.3 Million

  First Quarter GAAP and Adjusted EPS of $0.34

  Company Revises 2017 Guidance

Washington, D.C., April 27, 2017 — FTI Consulting, Inc. (NYSE: FCN) today released its financial results for the quarter ended March 31, 2017.

For the quarter, revenues of $446.3 million declined $23.9 million, or 5.1%, compared to revenues of $470.3 million in the prior year quarter. Excluding the estimated negative impact of foreign currency translation (“FX”), revenues decreased $16.1 million, or 3.4%, compared to the prior year quarter. The decrease in revenues was primarily driven by lower demand for restructuring services in North America in the Corporate Finance & Restructuring segment. Net income of $14.0 million decreased 53.6% compared to $30.2 million in the prior year quarter. Adjusted EBITDA was $38.3 million, or 8.6% of revenues, compared to $68.9 million, or 14.6% of revenues, in the prior year quarter. The decline in Adjusted EBITDA was primarily due to lower revenues and, to a lesser extent, higher compensation and selling, general and administrative expenses.

Fully diluted earnings per share (“EPS”) and Adjusted EPS were $0.34 compared to EPS of $0.73 and Adjusted EPS of $0.83 in the prior year quarter. EPS in the prior year quarter included a $5.1 million special charge related to headcount actions taken to realign the Technology segment and a $1.0 million fair value increase to an acquisition contingent consideration liability, which together reduced EPS by $0.10.

Commenting on these results, Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, said, “Our first quarter results were disappointing, primarily because we experienced a decline in demand for our restructuring services in North America. We delivered sequential top and bottom line improvements in our Forensic and Litigation Consulting and Technology segments as we have begun to see our strategies take hold, and our Economic Consulting segment delivered record quarterly revenues. The strength of our franchise, the expertise of our professionals and our ability to win the most complex engagements, give me confidence that we will deliver sustained EPS growth over time, though our first quarter performance underscores that we have work to do to get the business to fully realize its potential.”


Cash Position and Capital Allocation

Net cash used in operating activities was $93.1 million at March 31, 2017, compared to $33.1 million at March 31, 2016. The year-over-year difference in operating cash flows is due to a decline in cash collected resulting from lower revenues compared to the prior year period and an increase in annual bonus payments. Cash and cash equivalents were $121.0 million at March 31, 2017, compared to $114.5 million at March 31, 2016.

During the quarter, the Company repurchased 879,585 shares of its common stock at an average price of $41.95 for a total of $36.9 million. As of March 31, 2017, approximately $44.5 million remained available under the Company’s $100.0 million share repurchase authorization.

Total debt of $407.0 million at March 31, 2017, compares to total debt of $507.0 million at March 31, 2016. Total debt, net of cash, was $286.0 million at March 31, 2017, down from $392.5 million at March 31, 2016.

First Quarter 2017 Segment Results

Corporate Finance & Restructuring

Revenues in the Corporate Finance & Restructuring segment decreased $21.3 million, or 16.7%, to $105.9 million in the quarter compared to $127.2 million in the prior year quarter. The decrease in revenues was primarily due to lower demand for restructuring services in North America. Adjusted Segment EBITDA was $10.3 million, or 9.7% of segment revenues, compared to $31.6 million, or 24.9% of segment revenues, in the prior year quarter. The decline in Adjusted Segment EBITDA was primarily due to lower utilization as a result of a decline in demand for restructuring services in North America.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment decreased $7.6 million, or 6.4%, to $111.4 million in the quarter compared to $119.0 million in the prior year quarter. The decrease in revenues was primarily due to lower demand and realized pricing for health solutions services and lower demand for global investigations services, which was partially offset by higher demand for construction solutions services. Adjusted Segment EBITDA was $13.5 million, or 12.1% of segment revenues, compared to $19.8 million, or 16.6% of segment revenues, in the prior year quarter. The decline in Adjusted Segment EBITDA was primarily due to lower revenues, which was partially offset by lower compensation resulting from headcount reductions taken in 2016.

Economic Consulting

Revenues in the Economic Consulting segment increased $8.5 million, or 6.5%, to $139.2 million in the quarter compared to $130.7 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $11.8 million, or 9.0%, compared to the prior year quarter. The increase in revenues was primarily due to higher demand for antitrust services in North America. Adjusted Segment EBITDA was $20.1 million, or 14.4% of segment revenues, compared to $21.3 million, or 16.3% of segment revenues, in the prior year quarter. The decline in Adjusted Segment EBITDA was primarily due to lower utilization, with higher headcount, in international arbitration and other litigation services in the Europe, Middle East and Africa (“EMEA”) region and an increase in bad debt expense. The decline was partially offset by higher antitrust services revenues in North America.

Technology

Revenues in the Technology segment decreased $2.2 million, or 4.5%, to $46.1 million in the quarter compared to $48.3 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues decreased $1.7 million, or 3.4%, compared to the prior year quarter. The decrease in revenues was primarily due to lower demand for cross-border investigations. Adjusted Segment EBITDA was $7.8 million, or 16.9% of segment revenues, compared to $7.8 million, or 16.2% of segment revenues, in the prior year quarter. Adjusted Segment EBITDA was consistent with the prior year quarter as the decrease in revenues was more than offset by lower compensation resulting from headcount reductions taken in 2016.


Strategic Communications

Revenues in the Strategic Communications segment decreased $1.4 million, or 3.1%, to $43.7 million in the quarter compared to $45.1 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $0.6 million, or 1.2%, compared to the prior year quarter. Excluding FX, the increase in revenues was primarily due to higher retainer-based revenues and an increase in project-based revenues in the EMEA region, particularly in public affairs. Adjusted Segment EBITDA was $4.3 million, or 9.7% of segment revenues, compared to $6.1 million, or 13.5% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was due to higher compensation related to an increase in billable professionals, a decline in project-based revenues in North America and the negative impact of FX.

2017 Guidance

Given the weaker than anticipated performance in the first quarter of 2017, the Company is revising its full year 2017 guidance. The Company now estimates that 2017 revenues will range between $1.775 billion and $1.875 billion. This compares to the previous revenue range of between $1.800 billion and $1.900 billion. The Company now estimates that 2017 EPS will range between $1.75 and $2.10, and Adjusted EPS will range between $1.90 and $2.20. This compares to the previous EPS range of between $1.95 and $2.30, and the Adjusted EPS range of between $2.10 and $2.40. The variance between EPS and Adjusted EPS guidance for 2017 is related to estimated lease cancellation charges of $0.10 to $0.15 per share for the move of the Company’s Washington, D.C., office to another Washington, D.C., office location. The Company’s guidance assumes the use during 2017 of the remaining $44.5 million of its $100.0 million share repurchase authorization, which will be dependent on fluctuations in the price per share of the Company’s common stock, the timing of stock repurchases, market conditions and other future events that may be beyond the Company’s control.

First Quarter 2017 Conference Call

FTI Consulting will host a conference call for analysts and investors to discuss first quarter 2017 financial results at 9:00 a.m. Eastern Time on April 27, 2017. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company’s investor relations website here.

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,700 employees located in 29 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $1.81 billion in revenues during fiscal year 2016. More information can be found at www.fticonsulting.com.

Use of Non-GAAP Measures

In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with GAAP. Certain of these measures are considered “non-GAAP financial measures” under the SEC rules. Specifically, we have referred to the following non-GAAP measures:

 

    Total Segment Operating Income

 

    Adjusted EBITDA

 

    Total Adjusted Segment EBITDA


Adjusted EBITDA Margin

Adjusted Net Income (Loss)

Adjusted Earnings per Diluted Share

We have included the definitions of Segment Operating Income (Loss) and Adjusted Segment EBITDA below in order to more fully define the components of certain non-GAAP financial measures presented in this earnings release. We define Segment Operating Income (Loss) as a segment’s share of Consolidated Operating Income (Loss). We define Total Segment Operating Income (Loss), which is a non-GAAP financial measure, 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. We define Adjusted Segment EBITDA as a segment’s share of Consolidated Operating Income (Loss) before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. We define Adjusted Segment EBITDA Margin as Adjusted Segment EBITDA as a percentage of a segment’s revenues.

We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of debt. We believe that the non-GAAP financial measures, which exclude the effects of remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges, when considered together with our GAAP financial results and GAAP measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that these measures, considered along with corresponding GAAP measures, provide management and investors with additional information for comparison of our operating results with the operating results of other companies.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share (“Adjusted EPS”), which are non-GAAP financial measures, 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 non-GAAP financial measure, which excludes the effects of the remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of debt, when considered together with our GAAP financial results, provides management and investors with an additional understanding of our business operating results, including underlying trends.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Condensed Consolidated Statements of Comprehensive Income. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.


Safe Harbor Statement

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions, share repurchases 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 flows in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer, the mix of the geographic locations where our clients are located or where services are performed, adverse financial, real estate, fluctuations in the price per share of our common stock, other market and general economic conditions and other future events, which could impact each of our segments differently and could be outside of our control, the pace and timing of the consummation and integration of future acquisitions, the Company’s ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients, 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.

FINANCIAL TABLES FOLLOW

# # #


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

 

     Three Months Ended  
     March 31,  
     2017     2016  
     (unaudited)  

Revenues

   $ 446,344     $ 470,285  
  

 

 

   

 

 

 

Operating expenses

    

Direct cost of revenues

     309,072       305,636  

Selling, general and administrative expenses

     107,295       103,609  

Special charges

     —         5,061  

Acquisition-related contingent consideration

     395       1,134  

Amortization of other intangible assets

     2,493       2,606  
  

 

 

   

 

 

 
     419,255       418,046  
  

 

 

   

 

 

 

Operating income

     27,089       52,239  
  

 

 

   

 

 

 

Other income (expense)

    

Interest income and other

     605       2,557  

Interest expense

     (5,801     (6,229
  

 

 

   

 

 

 
     (5,196     (3,672
  

 

 

   

 

 

 

Income before income tax provision

     21,893       48,567  

Income tax provision

     7,877       18,386  
  

 

 

   

 

 

 

Net income

   $ 14,016     $ 30,181  
  

 

 

   

 

 

 

Earnings per common share—basic

   $ 0.35     $ 0.75  
  

 

 

   

 

 

 

Weighted average common shares outstanding—basic

     40,527       40,506  
  

 

 

   

 

 

 

Earnings per common share—diluted

   $ 0.34     $ 0.73  
  

 

 

   

 

 

 

Weighted average common shares outstanding—diluted

     41,245       41,148  
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

    

Foreign currency translation adjustments, net of tax expense of $0

   $ 7,370     $ (358
  

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax

     7,370       (358
  

 

 

   

 

 

 

Comprehensive income

   $ 21,386     $ 29,823  
  

 

 

   

 

 

 


FTI CONSULTING, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

 

     Three Months Ended March 31,  
     2017     2016  
     (unaudited)  

Net income

   $ 14,016     $ 30,181  

Add back:

    

Special charges

     —         5,061  

Tax impact of special charges

     —         (1,792

Remeasurement of acquisition-related contingent consideration

     166       980  

Tax impact of remeasurement of acquisition-related contingent consideration

     (65     (380
  

 

 

   

 

 

 

Adjusted Net Income

   $ 14,117     $ 34,050  
  

 

 

   

 

 

 

Earnings per common share – diluted

   $ 0.34     $ 0.73  

Add back:

    

Special charges

     —         0.12  

Tax impact of special charges

     —         (0.04

Remeasurement of acquisition-related contingent consideration(1)

     —         0.02  
  

 

 

   

 

 

 

Adjusted earnings per common share—diluted

   $ 0.34     $ 0.83  
  

 

 

   

 

 

 

Weighted average number of common shares outstanding—diluted

     41,245       41,148  
  

 

 

   

 

 

 

 

(1) Impact of remeasurement of acquisition-related contingent consideration on earnings per common share for three months ended March 31, 2017 and related tax impact for three months ended March 31, 2017 and 2016 round to $0.00 per share.

 

     Year Ended December 31, 2017  
     Low      High  

Guidance on estimated earnings per common share—diluted (GAAP)(1)

   $ 1.75      $ 2.10  

Estimated special charge for lease termination costs related the relocation of the Company’s office in Washington, D.C.

     0.15        0.10  
  

 

 

    

 

 

 

Guidance on estimated adjusted earnings per common share (Non-GAAP)(1)

   $ 1.90      $ 2.20  
  

 

 

    

 

 

 

 

(1) The forward-looking guidance on estimated 2017 earnings per diluted share (“EPS”) and adjusted earnings per common share-diluted (“Adjusted EPS”) do not reflect other gains and losses (all of which would be excluded from Adjusted EPS) related to future impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and/or losses on early extinguishment of debt, as these items are dependent on future events that are uncertain and difficult to predict.


FTI CONSULTING, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

 

     Segment      Adjusted     Adjusted EBITDA          

Average

Billable

     Revenue-
Generating
 
     Revenues      EBITDA     Margin     Utilization     Rate      Headcount  
     (in thousands)                        (at period end)  

Three Months Ended March 31, 2017 (unaudited)

 

        

Corporate Finance & Restructuring

   $ 105,901      $ 10,325       9.7     59   $ 377        900  

Forensic and Litigation Consulting

     111,406        13,521       12.1     60   $ 330        1,110  

Economic Consulting

     139,221        20,110       14.4     72   $ 554        660  

Technology(1)

     46,087        7,804       16.9     N/M       N/M        296  

Strategic Communications(1)

     43,729        4,257       9.7     N/M       N/M        657  
  

 

 

    

 

 

   

 

 

        

 

 

 
   $ 446,344      $ 56,017       12.6          3,623  
  

 

 

    

 

 

   

 

 

        

 

 

 

Unallocated Corporate

        (17,698         
     

 

 

          

Adjusted EBITDA

      $ 38,319       8.6       
     

 

 

          

Three Months Ended March 31, 2016 (unaudited)

              

Corporate Finance & Restructuring

   $ 127,156      $ 31,603       24.9     74   $ 384        857  

Forensic and Litigation Consulting

     119,004        19,808       16.6     64   $ 333        1,132  

Economic Consulting

     130,731        21,319       16.3     79   $ 531        607  

Technology(1)

     48,281        7,823       16.2     N/M       N/M        313  

Strategic Communications(1)

     45,113        6,108       13.5     N/M       N/M        601  
  

 

 

    

 

 

   

 

 

        

 

 

 
   $ 470,285      $ 86,661       18.4          3,510  
  

 

 

    

 

 

   

 

 

        

 

 

 

Unallocated Corporate

        (17,804         
     

 

 

          

Adjusted EBITDA

      $ 68,857       14.6       
     

 

 

          

N/M—Not Meaningful

 

(1) The majority of the Technology and Strategic Communications segments’ revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.


FTI CONSULTING, INC.

RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA

(in thousands)

 

     Corporate
Finance &
Restructuring
     Forensic and
Litigation
Consulting
     Economic
Consulting
     Technology     Strategic
Communications
     Unallocated
Corporate
    Total  

Three Months Ended March 31, 2017 (unaudited)

                  

Net income

                   $ 14,016  

Interest income and other

                     (605

Interest expense

                     5,801  

Income tax provision

                     7,877  
                  

 

 

 

Operating income

   $ 8,749      $ 11,924      $ 18,502      $ 4,440     $ 2,527      $ (19,053   $ 27,089  

Depreciation and amortization

     781        1,173        1,454        3,206       602        1,355       8,571  

Amortization of other intangible assets

     795        424        154        158       962        —         2,493  

Remeasurement of acquisition-related contingent consideration

     —          —          —          —         166        —         166  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 10,325      $ 13,521      $ 20,110      $ 7,804     $ 4,257      $ (17,698   $ 38,319  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
     Corporate
Finance &
Restructuring
     Forensic and
Litigation
Consulting
     Economic
Consulting
     Technology     Strategic
Communications
     Unallocated
Corporate
    Total  

Three Months Ended March 31, 2016 (unaudited)

                  

Net income

 

                $ 30,181  

Interest income and other

                     (2,557

Interest expense

                     6,229  

Income tax provision

                     18,386  
                  

 

 

 

Operating income (loss)

   $ 30,076      $ 18,213      $ 20,211      $ (1,180   $ 3,665      $ (18,746   $ 52,239  

Depreciation and amortization

     722        1,079        925        3,784       519        942       7,971  

Amortization of other intangible assets

     805        516        183        158       944        —         2,606  

Special charges

     —          —          —          5,061       —          —         5,061  

Remeasurement of acquisition-related contingent consideration

     —          —          —          —         980        —         980  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 31,603      $ 19,808      $ 21,319      $ 7,823     $ 6,108      $ (17,804   $ 68,857  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

     Three Months Ended  
     March 31,  
     2017     2016  
     (unaudited)  

Operating activities

    

Net income

   $ 14,016     $ 30,181  

Adjustments to reconcile net income to net cash used in operating activities:

    

Depreciation and amortization

     8,571       7,971  

Amortization and impairment of other intangible assets

     2,493       2,606  

Acquisition-related contingent consideration

     395       1,134  

Provision for doubtful accounts

     3,551       437  

Non-cash share-based compensation

     7,281       6,158  

Non-cash interest expense

     496       497  

Other

     12       (81

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

    

Accounts receivable, billed and unbilled

     (52,489     (52,047

Notes receivable

     7,153       3,853  

Prepaid expenses and other assets

     553       3,824  

Accounts payable, accrued expenses and other

     287       5,619  

Income taxes

     3,650       17,561  

Accrued compensation

     (92,561     (65,511

Billings in excess of services provided

     3,505       4,699  
  

 

 

   

 

 

 

Net cash used in operating activities

     (93,087     (33,099
  

 

 

   

 

 

 

Investing activities

    

Purchases of property and equipment

     (5,831     (6,362

Other

     127       34  
  

 

 

   

 

 

 

Net cash used in investing activities

     (5,704     (6,328
  

 

 

   

 

 

 

Financing activities

    

Borrowings under revolving line of credit, net

     37,000       7,000  

Deposits

     3,069       2,590  

Purchase and retirement of common stock

     (36,918     (2,903

Net issuance of common stock under equity compensation plans

     (812     (1,371

Other

     —         (135
  

 

 

   

 

 

 

Net cash provided by financing activities

     2,339       5,181  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     1,253       (1,063
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (95,199     (35,309

Cash and cash equivalents, beginning of period

     216,158       149,760  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 120,959     $ 114,451  
  

 

 

   

 

 

 


FTI CONSULTING, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

     March 31,     December 31,  
     2017     2016  
     (unaudited)        

Assets

    

Current assets

    

Cash and cash equivalents

   $ 120,959     $ 216,158  

Accounts receivable:

    

Billed receivables

     383,268       365,385  

Unbilled receivables

     330,062       288,331  

Allowance for doubtful accounts and unbilled services

     (187,150     (178,819
  

 

 

   

 

 

 

Accounts receivable, net

     526,180       474,897  

Current portion of notes receivable

     29,314       31,864  

Prepaid expenses and other current assets

     60,683       60,252  
  

 

 

   

 

 

 

Total current assets

     737,136       783,171  

Property and equipment, net of accumulated depreciation

     59,474       61,856  

Goodwill

     1,183,627       1,180,001  

Other intangible assets, net of amortization

     49,895       52,120  

Notes receivable, net of current portion

     100,288       104,524  

Other assets

     42,142       43,696  
  

 

 

   

 

 

 

Total assets

   $ 2,172,562     $ 2,225,368  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities

    

Accounts payable, accrued expenses and other

   $ 87,411     $ 87,320  

Accrued compensation

     172,593       261,500  

Billings in excess of services provided

     33,324       29,635  
  

 

 

   

 

 

 

Total current liabilities

     293,328       378,455  

Long-term debt, net

     402,717       365,528  

Deferred income taxes

     177,339       173,799  

Other liabilities

     102,649       100,228  
  

 

 

   

 

 

 

Total liabilities

     976,033       1,018,010  
  

 

 

   

 

 

 

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 — 41,321 (2017) and 42,037 (2016)

     413       420  

Additional paid-in capital

     387,797       416,816  

Retained earnings

     951,828       941,001  

Accumulated other comprehensive loss

     (143,509     (150,879
  

 

 

   

 

 

 

Total stockholders’ equity

     1,196,529       1,207,358  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,172,562     $ 2,225,368