WASHINGTON, Feb. 26, 2025 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced that Dr. Daniel F. Spulber has affiliated with its subsidiary Compass Lexecon. Dr. Spulber is a leading expert in antitrust and merger policy, platforms and two-sided markets, intellectual property, technology and innovation, and industrial organization. He is currently the Elinor Hobbs Distinguished Professor of International Business and Professor of Strategy at the Kellogg School of Management, Northwestern Uni ...

Core Insights - FTI Consulting has appointed three senior managing directors to enhance its Forensic and Litigation Consulting segment in Asia and Latin America [1][3][6] Group 1: Appointments and Experience - Michael Cullen has been appointed as a Senior Managing Director and Leader of Asia and Latin America, bringing over 25 years of experience in cross-border disputes and crisis management [1][3] - Rosie Hawes has been appointed as a Senior Managing Director and Head of Asia Business Intelligence, with more than 20 years of experience in business intelligence and investigations [1][4] - Andrew Macintosh has also been appointed as a Senior Managing Director, contributing over 20 years of experience in intelligence and crisis management across the Asia Pacific region [1][5] Group 2: Expertise and Impact - The combined experience of the new appointees exceeds 60 years, significantly enhancing FTI Consulting's capabilities in delivering tailored forensic and litigation solutions [2][6] - The appointments are expected to reinforce FTI Consulting's position as a trusted advisor in the forensic and litigation consulting market, particularly in navigating risks and managing investigations [6][7] - The expertise of the new leaders will help clients effectively manage crises and seize opportunities in the dynamic and diverse Asian market [6]

Core Insights - A significant majority (70%) of U.S. workers in remote or hybrid roles are likely to seek alternative employment if required to return to the office full time at their current salary [1][4][6] - The survey indicates that a third of office workers are excited about returning to the office, citing increased productivity and collaboration as key factors [3][4] - The current work arrangement significantly influences employee attitudes towards return-to-office (RTO) mandates, with remote workers showing the highest likelihood of seeking alternative employment [6][7] Employee Sentiment on RTO - Among fully remote workers, 74% would seek alternative employment if forced to return to the office full time, while 62% of hybrid workers would do the same [6] - Only 12% of fully remote workers are unwilling to come into the office at all, with 38% expressing excitement about returning [6] - 88% of remote workers are open to working in the office for part of the week, with preferences varying on the number of days [6] Factors Influencing RTO Acceptance - The industry plays a crucial role in shaping employee attitudes towards RTO, with 94% of architecture/engineering workers excited about returning, compared to only 51% in tech and telecom [5][6] - Employees in financial services (70%), retail (69%), and healthcare (67%) appreciate the camaraderie associated with office work [6] - Mid-sized company employees (2,500-10,000 employees) are most likely (46%) to seek alternative employment if required to return to the office full time, while large company employees (over 10,000 employees) are least likely (34%) [7] Demographic Insights - Geographically, employees in the Northeast and South (45% each) are more likely to seek alternative employment compared to those in the West (29%) [10] - Younger generations, particularly millennials and Gen Z, show a higher likelihood (45% each) of seeking alternative employment compared to baby boomers (31%) [10] - Workers with children under 18 are more excited about returning to the office (41%) than those without children (31%) [10]

Revenue Performance - Full year 2024 revenues reached $3.699 billion, an increase of $209.4 million or 6.0% compared to $3.489 billion in the prior year[3] - Fourth quarter 2024 revenues were $894.9 million, down 3% from $924.7 million in the prior year quarter[6] - Total revenues for the year ended December 31, 2024, increased to $3,698,652, up from $3,489,242 in 2023, representing a growth of approximately 6%[37] - Total revenues for the year ended December 31, 2024, were $3,698,652, an increase of 6.0% from $3,489,242 in 2023[45] Net Income and Earnings - Full year 2024 net income was $280.1 million, up from $274.9 million in the prior year, driven by higher revenues and lower income taxes[3] - Net income for the three months ended December 31, 2024, was $49,710, compared to $81,633 in the same period of 2023, reflecting a decrease of about 39%[35] - Adjusted net income for the year ended December 31, 2024, was $286,461, compared to $274,892 in 2023, indicating an increase of approximately 4%[38] - Earnings per common share — diluted for the year ended December 31, 2024, was $7.81, compared to $7.71 in 2023, showing a growth of about 1%[37] Adjusted EBITDA - Adjusted EBITDA for full year 2024 was $403.7 million, or 10.9% of revenues, compared to $424.8 million, or 12.2% of revenues, in the prior year[3] - Adjusted EBITDA for the year ended December 31, 2024, was $403,685, representing a decrease of 5.0% from $424,799 in 2023[45] Special Charges - Fourth quarter 2024 EPS was $1.38, a decrease from $2.28 in the prior year quarter, impacted by an $8.2 million special charge[11] - Estimated combined special charges for the first quarter of 2025 and fourth quarter of 2024 are approximately $25 million, reflecting the termination of about 4% of the workforce[18] - Special charges for the year ended December 31, 2024, amounted to $8,230, compared to none in 2023[37] Cash and Cash Equivalents - Cash and cash equivalents at December 31, 2024, were $660.5 million, up from $328.7 million at December 31, 2023[8] - The company’s cash and cash equivalents increased to $660,493 in 2024 from $303,222 in 2023, representing a significant increase of about 118%[33] - Cash and cash equivalents at the end of the period increased to $660,493 for the year ended December 31, 2024, compared to $303,222 at the end of 2023[47] Assets and Liabilities - The company reported total assets of $3,596,830 as of December 31, 2024, an increase from $3,325,878 in 2023, marking a growth of approximately 8%[33] - Current liabilities increased to $931,759 in 2024 from $892,769 in 2023, reflecting an increase of about 4%[33] Segment Performance - The Corporate Finance & Restructuring segment saw a revenue decrease of $29.8 million, or 8.2%, to $335.7 million in the fourth quarter[12] - Forensic and Litigation Consulting segment revenues increased by $10.4 million, or 6.3%, to $175.9 million in the fourth quarter[14] - The Corporate Finance & Restructuring segment generated revenues of $1,391,206 for the year ended December 31, 2024, with an adjusted EBITDA of $244,356, yielding a margin of 17.6%[45] - The Economic Consulting segment reported revenues of $863,557 for the year ended December 31, 2024, with an adjusted EBITDA of $109,498, achieving a margin of 12.7%[45] - The Forensic and Litigation Consulting segment's adjusted EBITDA margin was 12.6% for the year ended December 31, 2024, with revenues of $690,211[45] Guidance - The company expects full year 2025 revenues to range between $3.660 billion and $3.810 billion[19] - The company provided guidance for estimated earnings per common share — diluted (GAAP) for the year ended December 31, 2025, ranging from $7.44 to $8.24[40] Operating Activities - Net cash provided by operating activities for the year ended December 31, 2024, was $395,097, significantly higher than $224,461 in 2023[47] Depreciation - The company reported a total depreciation of property and equipment of $43,910 for the year ended December 31, 2024, compared to $41,079 in 2023[47] Billable Rates - The average billable rate for the Corporate Finance & Restructuring segment was $527, with a billable headcount of 2,286 as of December 31, 2024[45]

Core Insights - FTI Consulting has appointed Jo Hewitt as a Senior Managing Director in its Corporate Finance & Restructuring segment, enhancing its capabilities in restructuring and insolvency solutions [1][2]. Company Overview - FTI Consulting is a leading global expert firm specializing in crisis and transformation, with over 8,300 employees across 34 countries as of December 31, 2024 [6]. - The company reported revenues of $3.69 billion for the fiscal year 2024 [6]. Appointment Details - Jo Hewitt brings over 20 years of experience in UK and cross-border insolvencies and restructurings, reinforcing FTI Consulting's reputation for innovative solutions [2][3]. - In her new role, she will represent companies and investors in restructuring situations and serve in insolvency appointments [2]. Expertise and Background - Hewitt has previously held significant positions, including Managing Director at Alvarez & Marsal, where she led the European Restructuring Plan practice, and Director at EY [4]. - She has extensive experience advising distressed organizations across various industries, including real estate, financial services, infrastructure, and healthcare [3]. Strategic Importance - The addition of Hewitt is seen as pivotal for FTI Consulting's future success, consolidating its market-leading position in restructuring and insolvency [3]. - Her expertise in UK restructuring plans and cross-border transactions will enhance the firm's offerings in these areas [3].

Financial Data and Key Metrics Changes - Revenues for 2024 were $3.7 billion, a 6% increase from $3.49 billion in 2023 [55] - GAAP earnings per share (EPS) rose to $7.81 from $7.71 in the prior year, while adjusted EPS increased to $7.99 from $7.71 [55] - Adjusted EBITDA for 2024 was $403.7 million, or 10.9% of revenues, down from $424.8 million, or 12.2% of revenues in 2023 [56][57] - Net income grew to $280.1 million from $274.9 million in 2023, primarily due to a lower tax rate [57] Business Line Data and Key Metrics Changes - Corporate Finance and Restructuring revenues decreased by 8.2% year-over-year to $335.7 million, with restructuring representing 47% of segment revenues [67][68] - Forensic and Litigation Consulting (FLC) revenues increased by 6.3% to $175.9 million, driven by higher demand for data and analytics services [70] - Economic Consulting revenues were flat at $200.1 million, with adjusted segment EBITDA dropping significantly due to higher bad debt [73] - Technology segment revenues decreased by 10.2% to $90.6 million, primarily due to lower demand for M&A-related services [75] Market Data and Key Metrics Changes - The fourth quarter saw a slowdown in M&A-related business activity, impacting revenues across several segments [25][26] - Economic pressures in markets like the UK affected several business lines, contributing to the overall revenue decline [26] Company Strategy and Development Direction - The company remains focused on long-term growth despite facing headwinds in 2025, emphasizing the importance of building a stronger business [11][12] - Management is committed to investing in talent acquisition, even amidst near-term financial pressures, to ensure future growth [22][44] - The company anticipates a slow growth trajectory entering 2025 but expects demand to pick up in restructuring and transformation-related businesses [84] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding 2025, citing significant headwinds including senior departures in the US competition practice and a low tax rate comparison [21][42] - Despite challenges, management remains optimistic about the company's long-term trajectory and ability to navigate market fluctuations [48][54] Other Important Information - The company reported a special charge of $8.2 million in Q4 2024 related to severance and other employee-related costs, impacting GAAP EPS [56] - Free cash flow for 2024 was $360.2 million, up from $174.9 million in 2023, indicating improved cash generation [80] Q&A Session Summary Question: Impact of senior departures on 2025 outlook - Management indicated that the $35 million figure mentioned is a reference point for potential impacts, but there is significant uncertainty around the exact effects [96][98] Question: Headcount growth plans for 2025 - Management expects to hire more senior professionals than those leaving, maintaining a focus on growth despite current challenges [106][108] Question: M&A trends and market outlook - Management noted uncertainty regarding government policies but expressed optimism for a potential pickup in M&A activity as the year progresses [112]

FTI Consulting, Inc. (NYSE:FCN) Q4 2024 Results Conference Call February 20, 2025 9:00 AM ET Company Participants Mollie Hawkes - Head of Investor Relations Steve Gunby - President and Chief Executive Officer Ajay Sabherwal - Chief Financial Officer Conference Call Participants Andrew Nicholas - William Blair Tobey Sommer - Truist James Yaro - Goldman Sachs Operator Welcome to the FTI Consulting Fourth Quarter and Full Year 2024 Earnings Conference Call. All participants will be in a listen-only mode. Shoul ...

Core Insights - FTI Consulting reported revenue of $894.92 million for Q4 2024, a year-over-year decline of 3.2%, with EPS of $1.56 compared to $2.28 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $909.6 million, resulting in a surprise of -1.61%, while the EPS also missed the consensus estimate of $1.67 by -6.59% [1] Revenue Breakdown - Technology segment revenues were $90.65 million, below the average estimate of $108.60 million, reflecting a year-over-year decline of 10.2% [4] - Strategic Communications revenues were $86.60 million, slightly above the estimated $82.36 million, showing no change compared to the previous year [4] - Corporate Finance & Restructuring revenues were $335.71 million, slightly below the estimated $338.61 million, representing an 8.2% decline year-over-year [4] - Economic Consulting revenues were $206.10 million, below the average estimate of $212.48 million, with no year-over-year change [4] - Forensic and Litigation Consulting revenues were $175.86 million, exceeding the estimated $167.16 million, marking a year-over-year increase of 6.3% [4] Stock Performance - FTI Consulting shares have returned -1.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - FTI Consulting reported quarterly earnings of $1.56 per share, missing the Zacks Consensus Estimate of $1.67 per share, and down from $2.28 per share a year ago, representing an earnings surprise of -6.59% [1] - The company posted revenues of $894.92 million for the quarter, missing the Zacks Consensus Estimate by 1.61%, and down from $924.68 million year-over-year [2] - FTI Consulting shares have lost about 0.5% since the beginning of the year, while the S&P 500 has gained 4.5% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $1.88 on revenues of $915.03 million, and for the current fiscal year, it is $8.63 on revenues of $3.87 billion [7] - The Zacks Industry Rank indicates that the Consulting Services industry is currently in the bottom 10% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Financial Performance - Revenues for the year ended December 31, 2024, increased by $209.4 million, or 6.0%, to $3,698.7 million compared to $3,489.2 million in 2023[199] - Net income for the year ended December 31, 2024, increased by $5.2 million, or 1.9%, to $280.1 million compared to $274.9 million in 2023[202] - Adjusted EBITDA for the year ended December 31, 2024, decreased by $21.1 million, or 5.0%, to $403.7 million, with an Adjusted EBITDA Margin of 10.9% compared to 12.2% in 2023[203] - Earnings per diluted share for the year ended December 31, 2024, increased by $0.10 to $7.81, while Adjusted EPS increased by $0.28 to $7.99[204] - Total revenues for the year ended December 31, 2024, increased to $3,698.7 million, up 6.0% from $3,489.2 million in 2023[211] - Net income for 2024 was $280.1 million, a slight increase of 1.0% compared to $274.9 million in 2023[211] - Adjusted EBITDA for 2024 decreased to $403.7 million, down 4.9% from $424.8 million in 2023[212] Cash Flow and Expenses - Net cash provided by operating activities for the year ended December 31, 2024, increased by $170.6 million to $395.1 million compared to $224.5 million in 2023[205] - Free Cash Flow for the year ended December 31, 2024, was $360.2 million, up from $174.9 million in 2023[206] - Unallocated corporate expenses rose by $22.2 million, or 17.7%, to $147.6 million, primarily due to investments in AI capabilities and higher compensation expenses[217] - SG&A expenses increased by $4.8 million, or 6.7%, to $76.4 million, representing 22.7% of revenues compared to 21.8% in 2023[247] - Net cash used in investing activities decreased by $63.7 million, or 86.2%, to $10.2 million, primarily due to reduced capital expenditures[256] - Net cash used in financing activities decreased by $339.3 million, or 95.7%, to $15.4 million, reflecting the repayment of $315.8 million in Convertible Notes in 2023[257] Employee and Headcount - The total number of employees increased by 4.8% to 8,374 in 2024 from 7,990 in 2023[199] - The total headcount increased by 384, or 4.8%, from 7,990 as of December 31, 2023, to 8,374 as of December 31, 2024[209] - The company expects to record a special charge of approximately $17 million in Q1 2025 due to targeted headcount reductions[208] Segment Performance - Revenues for the Corporate Finance segment increased by $44.5 million, or 3.3%, to $1,391.2 million for the year ended December 31, 2024[227] - Gross profit for the Corporate Finance segment increased by $21.8 million, or 5.0%, to $453.8 million, with a gross profit margin of 32.6%[228] - Revenues for the Forensic and Litigation Consulting segment increased by $36.1 million, or 5.5%, to $690.2 million, with acquisition-related revenues contributing $6.8 million[231] - Gross profit for the Forensic and Litigation Consulting segment increased by $8.4 million, or 3.9%, to $225.2 million, with a gross profit margin of 32.6%[232] - Revenues for the Economic Consulting segment increased by $92.2 million, or 12.0%, to $863.6 million, driven by higher demand for M&A-related services[235] - Gross profit for the Economic Consulting segment increased by $16.5 million, or 7.5%, to $235.1 million, with a gross profit margin of 27.2%[236] - Revenues for the Technology segment increased by $29.8 million, or 7.7%, to $417.6 million, primarily due to higher demand for M&A-related services[240] Interest and Taxation - Interest income increased by $15.2 million to a gain of $10.4 million in 2024, compared to a loss of $4.9 million in 2023[218] - Interest expense decreased by $7.4 million, or 51.5%, to $7.0 million in 2024, down from $14.3 million in 2023[220] - The effective tax rate decreased to 20.2% in 2024 from 23.3% in 2023, contributing to a $12.8 million reduction in the income tax provision[221] Shareholder Actions - The company repurchased 51,717 shares at an average price of $197.53, totaling $10.2 million, with $450.4 million remaining under the Repurchase Program as of December 31, 2024[207] - The company repurchased $10.2 million in common stock during 2024, with $450.4 million remaining under the Repurchase Program[264] Market Risks and Foreign Exchange - The company is exposed to market risk primarily from changes in interest rates and foreign exchange rates[281] - The largest foreign exchange exposure relates to unsettled intercompany payables and receivables, which are regularly reviewed[283] - The total unrealized changes in net investments of foreign subsidiaries for the year ended December 31, 2024 amounted to a loss of $26.112 million, compared to a gain of $26.262 million in 2023[285] - The unfavorable impact of exchange rate changes on cash and cash equivalents was $12.3 million for 2024, compared to a favorable impact of $15.6 million in 2023[258] Impairment and Valuation - The company performed annual impairment tests for each reporting unit in 2024, indicating no impairment existed[279] - No impairment charges for intangible assets were recorded in 2024[280] - The company evaluates goodwill and indefinite-lived intangible assets for impairment annually, considering macroeconomic conditions and overall financial performance[277] - The cash flows used in the income approach for impairment evaluation are based on recent forecasts and budgets, discounted using a weighted average cost of capital[278]