(State or other jurisdiction

of incorporation)

(IRS Employer

Identification No.)

/s/ THEODORE I. PINCUS

Exhibit No.

Description

Operator:

Good afternoon. My name is (Wendy) and I will be your conference operator today.

Julie Prozeller:

Thank you operator. Good afternoon. Following this morning’s conference calls it came to our attention that several of you were unable to get into the queue to ask your questions. So we wanted to hold this additional question and answer session to answer all of your questions. We apologize for any convenience and thank you for joining us this afternoon.

Jack Dunn:

Thank you again. I don’t know if anyone out there is old enough to remember (Jack Parr) but to quote him as I was saying we think we had a pretty darn good quarter seasonally. And every other way for the third quarter our excitement is very high about our new acquisition and about our prospects in each of our divisions and segments going forward in the fourth quarter.

Operator:

Yes sir, at this time I would like to remind everyone if you would like to ask a question, press star then the number 1 on your telephone keypad. If you are on a speakerphone and wish to ask a question, please pick up your handset and press star 1 on your telephone keypad.

Andrew Fones:

Yes hi, that’s Andrew Fones.

Jack Dunn:

Hi.

Andrew Fones:

Yes, my first question I wanted to ask. You mentioned that we should see about 17 to 21 cents of impact from the restructuring, you know, an annual impact. So should we think about how that should come in through the course of the year next year.

Jack Dunn:

Well, I think you should see it as phased as you might imagine in the first part of the period including the forth quarter and probably until the first quarter of next year. We will still be having the effects of our integration costs. We’ll be taking hard looks at Sarbanes Oxley and making sure that now that we have a worldwide platform that we have the internal controls and everything in place to take of that.

Andrew Fones:

Okay. And then could you walk us through how the impact of the restructuring will plan this well over ‘07?

Jack Dunn:

Yes. We look at the restructuring charge, the amount of money that we set there that will be - that should take effect, you know, with a few dribs and drabs but we’re looking for the impact of that in the fourth quarter. Since the majority of that was reduction in comp and operating expenses we will look to that to be evenly paced over the year. So that would be evenly over the quarters.

Andrew Fones:

Okay thanks. And then could you give us a couple of examples of - you mentioned being numerous when from the FD business since you completed the acquisition. I was wondering if you could give us some examples of that and walk us through how that acquisition is going to impact future of your existing business lines, thanks.

Jack Dunn:

Yes, I can’t give you specific case names. As you know that’s not our style, but we in the options backdating area where there’s a conjoining of the critical factual issues in credibility’s and financials combined with a strong importance to communicate that message. That’s an area where we’ve had some success.

Andrew Fones:

By healthcare you mean your corporate finances?

Jack Dunn:

No I mean the economic consulting group.

Andrew Fones:

Okay. Thanks a lot.

Jack Dunn:

Yes.

Operator:

Your next question comes from the line of Aaron Watts with Deutsche Bank.

Aaron Watts:

Good afternoon gentlemen.

Jack Dunn:

Hi Aaron.

Aaron Watts:

Couldn’t get enough of us this morning huh. Just a couple of quick questions from me and I apologize if you kind of walked through this before. But am I right in understanding the reason why we didn’t see better sort of year over year gains in the economic consulting business on the bottom lines is that mainly due to the timing issues with the rule changes that were happening?

Jack Dunn:

No, because we had good growth or acceptable growth not as much as we had thought in the revenue line which was a factor caused by the kind of the interruption of those cases. What you saw there were a couple of different things.

Aaron Watts:

Okay great that’s helpful. And maybe more of a conceptual question for you but a few different ideas flowing through this one, you had a lot going on, a lot on your plate before the acquisitions you’ve made over the last few months. Can you just talk about maybe how you are maintaining sort of a handle on bringing on board FD and the other couple of acquisitions you’ve announced in the last month?

Jack Dunn:

Well, the good news is that all the entities that have joined us would be what you call self sufficient. One of the first rules in their own right there perfectly, you know, excellent operating entities within themselves. If it stops there, however, that wouldn’t justify the efforts required of them because the real reward is in the successful integration in those.

Aaron Watts:

Okay, that’s great.

Jack Dunn:

One thing I might add also is with each of those companies one of the great things that has joined with them is great leadership. When you think about (Charles Watson) and (DeClan Kelly) at FD and (Paul Kerry) and other great professionals there we really have been very fortunate in beefing up really our capabilities to be a global company for the coming years.

Aaron Watts:

You read my mind with that answer. I was just about to ask, you know, obviously what might help the process along as having most of the personnel at least the leaders of these groups staying on board. You obviously answered that question just now. But is it safe to say that these leaders you just mentioned are going to be sticking around for awhile. Their contracts structured in a similar way we’re used to seeing it at FTI?

Jack Dunn:

They can - I can - if there is anything I’m sure that they’ll be staying around for awhile. One of the great aspects of the FD transaction was the fact that I think somewhere in the neighborhood of their top 140 people became shareholders in FTI.

Aaron Watts:

Okay. Thank you for all the color.

Jack Dunn:

Yes.

Operator:

Once again I would like to remind everyone if you would like to ask a question, press star then the number 1 on your telephone keypad. If you are on a speakerphone and wish to ask a question, please pick up your handset and then press star 1 on your telephone keypad.

Tobey Sommer:

Thanks. I had a question. In your prepared remarks earlier you’d mentioned utilization and bill rates kind of not as appropriate for some of the areas of the business now. To what extent do you plan on maybe shifting in the way your reporting or in the segments where it is appropriate you expect to continue to share that kind of detail with us?

Ted Pincus:

Tobey specifically in our technology business about 60% of that business now is not billed by the hour. It’s simply crossed the point where the utilization and the rate metrics are really not relevant to it at all.

Tobey Sommer:

Question just regarding the FD transaction. I was kind of looking back at it. I was wondering the extent to which, you know, being able to come out of the gate with one transaction that would achieve kind of a, you know, a global footprint to which that contributed to the attractiveness of FD as a property?

Jack Dunn:

Well it was a major fact. Not only are they broad geographically but they’re deep. They have, for example, I think we mentioned before that the top five IPO’s coming out of the Russian market. For example, Moscow they have handled for all five I believe.

Tobey Sommer:

Two additional questions. Wondering if the investigations that are kind of heard about in the news is it involving private equity? Is that something that could all turn into a demand stimulant? And then Ted I was wondering if you give us an update on your expectations for cash flow generation? Thank you.

Ted Pincus:

Jack you want to take…

Jack Dunn:

Let’s take the second one first.

Ted Pincus:

Tobey as you might imagine we are not especially pleased with our cash flow generation particularly in the third quarter. There are several factors that are contributing to it and we have some prognosis on that. The principal factor is that two of our fastest growing segments technology and economic have DSO characteristic in their industry that are simply longer than traditional for our forensic and for our corporate finance business. And we are adjusting to that ourselves our DSOs.

Jack Dunn:

As regard to your first question about the current to do about the private equity firms and the SEC letters that went out. We have had some activity in that area. I think it’s way to early to see where that’s going at this point. You know, in terms of the complicatedness of the, for example, the documentary phase of that and the evidence capturing. I’m not sure yet that we’ve determined whether that’s going to be as intense as it is and things like finite reinsurance and options backdating.

Tobey Sommer:

Thank you very much.

Operator:

Your next question comes from the line of Brett Manderfeld with Piper Jaffray.

Brett Manderfeld:

Hi guys. Ted I had more of a housekeeping question for you. Whether or not you’ve nailed down the incremental amortization expense on the FD acquisition as well as the other two smaller deals, if there any sense for incremental amortization? That’d be helpful.

Ted Pincus:

Tobey based on our experience we of course have put in estimates of that as we move forward into the fourth quarter. And it’s very complex. We use an independent valuation firm to do these analysis. It is possible but I can’t guarantee it that we will have the final results of that, you know, by the end of the fourth quarter.

Operator:

Your next question comes from the line of Jim Wilson with JMP Securities.

Jim Wilson:

Well thanks. I guess I got two or three questions if I can. But I guess Ted did, first for you volatility in the margins reported on from the economic

Jack Dunn:

Yes, I think we - if you look at the margins a lot of big things have changed this year was the addition of compass which traditionally has very good margins. And I think the other - probably the major factor there has been the two were practices we started off the corporate economic consulting plus the kind of the smaller tax and pricing practices that we had incubated that probably ate into those margins as we went along.

Ted Pincus:

Yes, at least.

Jack Dunn:

So we would look for most of those margins to be improving.

Jim Wilson:

And then your comment on the earlier call related to construction practices. The terms construction is often used different ways. Could you kind of clarify what elements of construction is it domestic and international and where you see the opportunities to probably draw that business?

Jack Dunn:

BKS has a premiere reputation in helping builders of large facilities such as refineries and major construction throughout the world. Several of them spend probably two weeks a month in Paris, London around the world looking at major construction projects.

Jim Wilson:

Okay. And balance of domestic versus international as you see it going forward?

Jack Dunn:

I think probably for our combined practice we would love to see a mix of somewhere in the neighborhood of 30% outside the U.S. and maybe 70% in the U.S. One of the things that will help kind of sort that out is FD has a major practice as part of its group that does construction and real estate. We’re hoping that that’ll be a good entrée for us to expand our activities in Europe.

Jim Wilson:

Okay great.

Jack Dunn:

They work with the major developers there in terms of getting approval for projects. So we get really a chance to be at the ground floor of the planning of this thing which means that during the construction phase and mapping that we should have an opportunity to get good entrees.

Jim Wilson:

And then this final one. Ted on the discussion of amortization and the expenses that would be a net neutral for Q4 I know you don’t have ‘07 guidance as a total but could you describe how would any of those expenses should effect ‘07 in the sense or is the dollar amount of them going to start to be less as of Q1 or about the same or, you know, what should be note that would be...

Ted Pincus:

You know, Jim without getting into real technical details there’s three key areas of intangibles are what they call backlog, customer relationships and the noncompetes.

Jim Wilson:

Okay. All right thanks.

Operator:

Your next question comes from the line of Bill Southerland with Boenning & Scattergood Incorporated.

Jack Dunn:

Boenning and Scattergood. Hi Bill.

Ted Pincus:

Hi Bill.

Bill Southerland:

Close enough guys.

Jack Dunn:

I got it right.

Bill Southerland:

And thanks for all the treats. I missed the first call so I appreciate this and I apologize up front if this is asking something that’s been discussed. But can talk – you talked about the economic consulting practice as far as their – the margin variance, could we just go through the other three groups only because it looks like year over year. You know, it’s 300 bips or 400 bips kind of variance. And I just like to get the color behind that. Both up and down, you know, for variance it’s better this year corporate finance is lower than last year, and technology is a little lower than last year.

Jack Dunn:

Of course, in terms of the corporate financial restructuring we went through the reduction and forced to primarily address the issues that were raised by the UK practice that we’ve built that was a drain of as much as a million to $1.5 million a month.

Bill Southerland:

Yes.

Jack Dunn:

So that going forward we are again building practices there and transaction support in (palladium partners) the interim management practice. Typically those practices would not be as profitable in the ramp up stage would be the core practice when it was roaring at its height. That being said, you know, we have seen activity in the core practice and obviously in the automotive and in the whole home building area.

Ted Pincus:

Right and also Bill, you know, on any given quarter you can also have what I call normal seasonal variations. For example, if you look at technology for nine months both 2006 and 2005 they were exactly the same margin of 39.8.

Bill Southerland:

Yes. So okay it just picking buckets at this point.

Ted Pincus:

That’s all.

Bill Southerland:

Okay. On the cash flow question, what’s your – I guess Ted what do you think is the progress we should expect as far as, you know, that coming back is something you guys are more satisfied with?

Ted Pincus:

Well, I think what we are seeing is there’s two segments are growing we’re seeing a migration to DSO but that is expected to stabilize by the end of the fourth quarter. So then we do expect the fourth quarter itself to be a very good cash collection quarter cash flow from operations therefore.

Jack Dunn:

Yes I think as somebody alluded to earlier we had an awful lot on our plate this quarter. I think senior management then Dom could speak to this but I think we have nothing better on our plate in the next quarter in the next several quarters and to get our money.

Dom DiNapoli:

Well and, you know, specifically what we’re doing is we’re having calls with the practice leaders where we’ve known down to the SMD level for those SMDs that are responsible to collect some of the larger outstanding receivables and working with them to help them, you know, be more persuasive with their negotiations with our clients.

Bill Southerland:

Okay that’s good. And then on the forgivable loans going forward is it going to be more impact on that front?

Jack Dunn:

Yes, we have as, you know we were thrilled with the ability to sign up 28 of our SMDs from the restructuring corporate finance practice. And as we go forward we would expect there would be another 15 to 20 people who would be in that elite partner group that would be participants in the program as we go forward.

Dom DiNapoli:

In addition as we hire new senior employees we give the loans are often a part of the compensation that they get to move them from their existing employment to FTI.

Bill Southerland:

So it will – so I have a understanding of how it goes then it’ll level out. It’ll lower numbers that’s based on growth of new SMDs?

Ted Pincus:

Except for per another chunk expected in the first quarter 2007 as Jack mentioned to bring another 15 to 20 or so SMDs from our other business segments into the program.

Bill Southerland:

Oh, that’s going to be Q1, okay.

Ted Pincus:

Yes. Probably Q1. It won’t be Q4.

Bill Southerland:

Okay. And then last question and Ted where are you as far as the revenue – can you describe the revenue breakdown a little bit for us, you know, professional service versus life...

Ted Pincus:

Bill we’ve actually crossed the point now where about 60% of the revenues of that business is not based on hourly business rates by people.

Bill Southerland:

Yes.

Ted Pincus:

It is the licensing; it is the fee charges, the through-put, the conversion data, the ASP hosting, about 60% now. That’s why those particular metrics are no longer meaningful for that segment.

Bill Southerland:

And is it not to cut it too fine, but that 60% it’s not weighted toward perpetual licenses. Don’t you have much of a waiting for it?

Ted Pincus:

Oh yes and to everything I just mentioned from the licensing to the hosting to the access charges to the seats that are available to their law firms and the clients.

Bill Southerland:

Ted I was just sort of getting a since or asking for a since of waiting? Is it much more away from the perpetual license sale?

Ted Pincus:

I’m not sure I understand your question Bill.

Bill Southerland:

Well perpetual license – you know that’s a classic one time licensing for software application as opposed to software of services or AFC.

Ted Pincus:

Actually our programs are on an annual basis.

Jack Dunn:

Yes, we don’t really have a one-time license. It’s not that situation.

Bill Southerland:

Yes, I didn’t think it was Jack I just wanted to check.

Jack Dunn:

I’m just sorry we misunderstood your question.

Bill Southerland:

Okay. Well, thanks guys we’ll see you later.

Jack Dunn:

Thank you Bill.

Operator:

Once again if you would like to ask a question, please press star then the number 1 on your telephone keypad. If you’re on a speakerphone and wish to ask a question, please pick up your handset and then press star 1 on your telephone keypad.

Larry Rader:

Good afternoon.

Jack Dunn:

Hi Larry.

Larry Rader:

Hi. Question. Executives are worth more than specialists yes no?

Jack Dunn:

I’m not sure what you’re referring to. Executives are worth more than specialists. If you mean the highest paid people in our company tend to be people who are serving clients. Is that your question Larry?

Larry Rader:

Yes.

Jack Dunn:

Yes, we look forward to having many people who make more than the executives do because each one of them is contributing to the personally, if I’d be very personal, putting bread on my table. So I would say in terms of looking at our total compensation some of the highest paid people are the professionals especially the economists. And then I think our other experts are extremely well compensated...

Larry Rader:

And those are locked in, you know, in a very strong manner.

Jack Dunn:

We have of our - yes we have long term contracts with all of what we would consider to be our partner level people.

Larry Rader:

Perfect. Thanks so much.

Jack Dunn:

Yes. Thank you, Larry.

Operator:

Your next question comes from the line of Andrew Fones with UBS.

Andrew Fones:

Yes hi, I had a couple of follow-ups. First, what you expect the effective tax rate to be in Q4 in ‘07 including the FD acquisition?

Ted Pincus:

At this point we expect our effected tax rate for ‘06 to be between 45.6% and 46.0% that includes the effective stock options. We will begin 2007 with approximately those same rates and then it will develop itself as customary as the year goes on.

Andrew Fones:

You said ‘07 should start out to about 46 level and then should be expect that to fall from there or remain the same.

Ted Pincus:

We don’t know. A lot of it depends on the exact jurisdiction in the US in which we do all work. So, for example, if we do a lot more work in Illinois and New York than we do in Texas and Florida those state rates have a significant effect on the overall rate. And the reverse is also true.

Andrew Fones:

Okay thanks. And then just to trying to pin you down just a little bit on the annual guidance. I think the range you’ve given implies now something like 33 to 42 cents of earning in Q4 could you talk to us a little bit about normal seasonality in Q4 and perhaps the EPS impact of the success fee you got in Q4 last year? Thanks.

Jack Dunn:

Of the - as we tried to emphasize the success fee last year was definitely a one-time fee. It was a vestige of business that we in effect is rare for us which is the ability to have the contingent interest in a litigation matter. It was just because we were a trustee in it and that was way the client wanted it set up. So there is none of that.

Ted Pincus:

But Andrew it was 9 cents if you simply looked at last year’s reported earnings. It was approximately 9 cents of that.

Andrew Fones:

Okay thanks. So I think you saw about a 5 cent increase excluding that fee. Was there anything else unusual in the quarter and would you say, you know, that would kind of be typical seasonality?

Jack Dunn:

On recalling back last year and I do not believe there was anything extraordinary in that quarter as well.

Ted Pincus:

No with any it appears success fees that we had expected in the fourth quarter actually ended up in the first quarter of 2006.

Andrew Fones:

Okay thanks. And just finally could you give us a little color on your kind of appetite for acquisitions at this point?

Jack Dunn:

We have once again are in the position of having gotten what we wished for. I think we always have some dry powder and some ability to access a tuck in acquisition here or there that would add to our domain expertise. But our job now as we mentioned is to integrate FD and to take advantage of BKS and G3 and to collect our money. So that’s where our management focus will be.

Andrew Fones:

Thanks.

Operator:

Your next question, excuse me your final question comes from the line of Tobey Sommer with SunTrust.

Tobey Sommer:

Thank you. I may try to sneak in more than one here. But the annual savings and operating income of $12 to $15 million. I just wanted to get a sense if what segments that’ll likely come from I’m assuming it’s mostly related to the London operation?

Ted Pincus:

Most of this will be in the restructuring business and some of it, however, is in economic in a smaller amount that is also in forensic.

Tobey Sommer:

Okay. And you may have hit this at the beginning of this call I’m not sure I got in a little bit late. In terms financial impact accretion from FD did you give an updated number there?

Ted Pincus:

Basically we still expect it to be neutral after amortization and integration cost for fourth quarter. And at our last conference call we indicated that we expected up to 15 cents per share accretion for 2007 and we did reconfirm that earlier today.

Tobey Sommer:

Okay.

Jack Dunn:

We also added in response to a question that we would that to ramp as the year goes on because it is entered as the company grows.

Tobey Sommer:

Okay fair enough. And then just a question on seasonality in the first quarter you typically have more taxes, et cetera. I just wondering if you could refresh our memories as to the seasonal impacts on profitability, particularly in the first quarter? Thank you.

Ted Pincus:

Well, what happens and it’s measurable and meaningful is because of the average compensation of our people almost our entire social security and 401k matches are absorbed as company expenses in the first quarter of the year.

Tobey Sommer:

Typically speaking what sort of a margin impact has that had historically?

Ted Pincus:

Sometimes about one percent.

Tobey Sommer:

Thank you very much. Have a good afternoon.

Ted Pincus:

Thank you.

Operator:

And there are no further questions at this time. Gentlemen are there any closing remarks?

Jack Dunn:

Well I just want to say that as I said this morning we look forward to speaking again with you soon perhaps just not as soon as we did this time. So we will look forward to talking with you after reporting our year end results. Thank you very much for being with us today. I’m sorry for the inconvenience on the technical glitch.

Operator:

This concludes today’s conference call. You may now disconnect.