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FTI Consulting, Inc. Reports Record Results
--- Second Quarter Revenues of $360.5 Million, Net Income of $37.2 Million, EPS of $0.69, and EBITDA of $84.6 Million; all Records--- Raises 2009 EPS Guidance
WEST PALM BEACH, Fla., Aug 04, 2009 /PRNewswire-FirstCall via COMTEX/ -- FTI Consulting (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today reported its financial results for the second quarter ended June 30, 2009.

Second Quarter Results

Revenues for the second quarter of 2009 were $360.5 million, an increase of 6.8% compared to revenues of $337.7 million in the prior year period and $347.8 million in the 2009 first quarter. Net income was $37.2 million for the second quarter of 2009, compared to net income of $34.8 million in the prior year period. Diluted earnings per common share were $0.69, compared to $0.65 in the prior year period. EBITDA, as defined below, was $84.6 million, or 23.5% of revenues, compared to $77.6 million, or 23.0% of revenues, in the prior year period. Revenues, net income, diluted earnings per share and EBITDA were all-time quarterly records for the Company. At the end of the second quarter, the Company had 3,414 employees worldwide.

Excluding the effect on results of changes in the exchange rate of the U.S. dollar against non-U.S. currencies, revenues increased 10.3%, net income increased 10.5%, diluted EPS increased 10.2% and EBITDA increased 12.5% as compared to the 2008 second quarter.

Commenting on the quarter, Jack Dunn, FTI's president and chief executive officer, said, "FTI generated another strong performance in the second quarter despite a difficult global economy. The world continued to seek its way from the panic and paralysis that were prevalent during the credit crisis of last year to a more stable environment that allows for deliberate steps to develop strategies and plan for future opportunities and challenges. In this context we reported all-time record results, with solid performance from our existing businesses and growth from acquisitions propelling higher revenues, net income, earnings per share and EBITDA compared to both an extremely strong period a year ago and a very good first quarter. Our results were driven by the strength of our restructuring activities, higher activity in fraud investigations and regulated industries and increasing momentum in strategic M&A in certain of our practices. This is a tribute to the depth of our intellectual capital, our business model with its complementary practices and the diversity of our global platform, all of which contribute to our goal to do well across all market and economic cycles.

"In the quarter we continued to aggressively convert this excellent performance into cash. We generated $55 million of operating cash flow on the strength of higher net income and our focus on accounts receivable collection. This allowed us to exit the quarter with cash of $213 million, up from $158 million a quarter ago, which puts us in excellent financial position to invest in our business and expand our talent pool at a time when other consulting firms are retrenching. We are continuing to invest in key hires globally across our practices and further build out our platform and strengthen our presence in geographical markets outside the United States.

"We are pleased with the progress of our businesses and look forward to further growth and stronger year over year earnings comparisons in the second half of 2009. Based on our strong first half performance we are increasing our EPS guidance for the year. Even considering the usual seasonal impact of the summer months on our third quarter, we expect to experience rising momentum into the fourth quarter which accelerates through 2010."

Second Quarter Business Segment Results

Corporate Finance/Restructuring

Revenues in the Corporate Finance/Restructuring segment increased to a record $134.0 million from $96.1 million in the prior year period, driven by organic growth of 29.8%, and supplemented by the contributions of the acquisitions of CXO and our Toronto-based restructuring practice during the last 12 months. Sequentially, revenues increased from $127.5 million in the first quarter. Segment EBITDA increased 60.2% to $47.4 million, or 35.4% of segment revenues, compared to $29.6 million, or 30.8% of segment revenues, in the prior year period and $40.7 million, or 31.9%, in the first quarter. The segment continues to see historically high demand for restructuring services from a broad range of economic sectors, with particular strength in the second quarter in the automotive, real estate and energy/utility sectors, as well as ongoing activity in the retail, construction, leisure and financial services markets. The worldwide recession continued to generate demand for restructuring services, enabling the segment's European practice to more than double its revenue compared to the same period last year, and the recently-added Canadian/Latin American practice to quickly begin to make substantial contributions to the segment's revenue. To further meet global demand, the segment recently expanded its London-based European Corporate Finance practice with the launch of a restructuring business in Munich, Germany.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment were $65.5 million compared with $69.3 million in the prior year period and $66.9 million in the 2009 first quarter. Segment EBITDA increased 3.3% to $16.2 million, or 24.8% of segment revenues, compared to $15.7 million, or 22.7% of segment revenues, in the prior year period. Sequentially, segment EBITDA grew 3.3% from the first quarter of 2009, and segment EBITDA margins improved by 130 basis points. While the environment for generic litigation services remained soft, the segment benefited from several large global investigations cases and increasing emphasis on its specialized practices including intellectual property, construction, regulated industries and South American investigations.

Technology

Revenues in the Technology segment increased 5.5% to a record $59.4 million, compared to $56.3 million in the prior year period. Segment revenues grew 6.3% on a sequential basis from the first quarter of 2009. Segment EBITDA was $23.8 million, compared to $21.2 million in the prior year period. Segment EBITDA was 40.1% of segment revenues, compared to 37.7% in the prior year period. On a sequential basis, segment EBITDA grew 23.2% from the first quarter of 2009, and segment EBITDA margins improved by 550 basis points. Large fraud investigations, bankruptcy and M&A second requests were significant contributors to second quarter revenue, as were product liability cases, although to a much smaller degree than in the prior year. The strong margins in the quarter resulted from increased revenue, particularly in software sales that carry greater margins, and certain expense control measures. These improvements more than offset a substantially greater investment in research and development.

Economic Consulting

Revenues in the Economic Consulting segment increased 6.2% to a record $57.1 million, compared to $53.8 million in the prior year period. On a sequential basis, segment revenues increased 4.2% from the first quarter of 2009. Segment EBITDA was $10.3 million, or 18.1% of segment revenues, compared to $14.0 million, or 26.0% of segment revenues, in the prior year period. The segment was active in regulatory issues in pharmaceuticals, railroads and telecommunications. The 26 professionals recently hired in the segment's new practices in the U.K., Canada, New York and Los Angeles have begun to gain traction in their respective regions, and have been experiencing rapidly rising utilization and revenue contributions. While the rate of retention on new securities and commercial financial engagements in the segment began to accelerate in the second quarter, utilization has been hampered by the slow commencement of work.

Strategic Communications

Revenues in the Strategic Communications segment were $44.6 million, compared to $62.2 million in the prior year period. Segment EBITDA was $5.9 million, or 13.2% of segment revenues, compared to $16.4 million, or 26.4% of revenues, in the prior year period. Weakness in foreign currencies relative to a year ago reduced revenues by $6.3 million and segment EBITDA by $1.7 million, respectively. The segment continued to be negatively impacted by both the significantly lower level of capital markets activity, which reduced revenues from M&A- and IPO-related work, the global economic recession, which has caused clients to reduce their spending on discretionary communications programs, and the impact of the stronger U.S. Dollar as compared to a year ago. The segment began to stabilize in the second quarter and grew sequentially by 4.2% compared to the first quarter. Most recently, the segment is beginning to experience increasing activity in capital market related activities including possible IPO's in Asia and strategic M&A assignments.

2009 Guidance Update

Based on current market conditions, the Company is increasing its 2009 guidance for fully diluted EPS to a range of $2.65 to $2.75. The Company is reaffirming its previous guidance for 2009 revenues of between $1.45 billion and $1.55 billion.

Second Quarter Conference Call

FTI will hold a conference call for analysts and investors to discuss second quarter financial results at 8:30 a.m. Eastern time on Tuesday, August 4, 2009. 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, 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 3,400 employees located in most major business centers in the world, we work closely with clients every day 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 www.fticonsulting.com.

Use of Non-GAAP Measure

Note: We define EBITDA as operating income before depreciation and amortization of intangible assets plus non-operating litigation settlements. We use EBITDA in evaluating financial performance. Although EBITDA is not a measure of financial condition or performance determined in accordance with GAAP we believe that it can be a useful operating performance measure for evaluating our results of operation as compared from period to period and as compared to our competitors. EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in our industry. We use EBITDA to evaluate and compare the operating performance of our segments and it is one of the primary measures used to determine employee bonuses. We also use EBITDA to value the businesses we acquire or anticipate acquiring. Reconciliations of EBITDA to Net Income and segment EBITDA to segment operating profit are included in the accompanying tables to today's press release. EBITDA is 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. This non-GAAP measure should be considered in addition to, but not as a substitute for or superior to, the information contained in our statements of income.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 that 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 projections will result or be achieved or that actual results will not differ from expectations. The Company has experienced fluctuating revenues, operating income and cash flow in some prior periods and expects this will occur from time to time in the future. The Company's actual results may differ from our expectations. Further, preliminary results are subject to normal year-end adjustments. Other factors that could cause such differences include the current global financial crisis and economic conditions, the crisis in and deterioration of the financial and real estate markets, 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. 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.


                              FTI CONSULTING, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                 FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
                      (in thousands, except per share data)
                      -------------------------------------

                                                          Six Months Ended
                                                              June 30,
                                                              --------
                                                             2009  2008 (1)
                                                             ----  --------
                                                             (unaudited)

    Revenues                                             $708,371  $644,772
                                                         --------  --------

    Operating expenses
      Direct cost of revenues                             386,593   360,687
      Selling, general and administrative expense         177,595   150,345
      Amortization of other intangible assets              12,199     7,355
                                                           ------     -----
                                                          576,387   518,387
                                                          -------   -------

    Operating income                                      131,984   126,385
                                                          -------   -------

    Other income (expense)
      Interest income and other                             2,755     5,400
      Interest expense                                    (22,043)  (22,906)
      Litigation settlement gains (losses), net               250      (436)
                                                              ---      ----
                                                          (19,038)  (17,942)
                                                          -------   -------

    Income before income tax provision                    112,946   108,443

    Income tax provision                                   44,049    42,935
                                                           ------    ------

    Net income                                            $68,897   $65,508
                                                          =======   =======


    Earnings  per common share - basic                      $1.37     $1.34
                                                            =====     =====
    Weighted average common shares outstanding - basic     50,278    48,740
                                                           ======    ======

    Earnings per common share - diluted                     $1.29     $1.23
                                                            =====     =====
    Weighted average common shares outstanding - diluted   53,424    53,212
                                                           ======    ======

    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt instruments that may be
        settled in cash upon conversion. Our 3-3/4% Convertible Senior Notes
        due 2012 issued in August 2005 are subject to FSP APB 14-1. The
        adoption of FSP APB 14-1 requires retrospective application of its
        effects to all previous years. The adoption of FSP APB 14-1 resulted
        in a $2.0 million increase in interest expense, a $0.8 decrease in
        income tax provision, a $1.2 million decrease in net income and a
        decrease in basic and fully diluted earnings per share of $.03 and
        $.02, respectively, for the six months ended June 30, 2008 as
        compared to the amounts previously reported.



                              FTI CONSULTING, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                FOR THE THREE MONTHS ENDED JUNE 30, 2009 AND 2008
                      (in thousands, except per share data)
                      -------------------------------------

                                                         Three Months Ended
                                                              June 30,
                                                              --------
                                                             2009  2008 (1)
                                                             ----  --------
                                                             (unaudited)

    Revenues                                             $360,525  $337,670
                                                         --------  --------

    Operating expenses
      Direct cost of revenues                             194,181   188,166
      Selling, general and administrative expense          88,842    77,773
      Amortization of other intangible assets               6,149     4,457
                                                            -----     -----
                                                          289,172   270,396
                                                          -------   -------

    Operating income                                       71,353    67,274
                                                           ------    ------

    Other income (expense)
      Interest income and other                               702     2,089
      Interest expense                                    (11,030)  (11,307)
      Litigation settlement gains (losses), net                 -      (435)
                                                                -      ----
                                                          (10,328)   (9,653)
                                                          -------    ------

    Income before income tax provision                     61,025    57,621

    Income tax provision                                   23,800    22,813
                                                           ------    ------

    Net income                                            $37,225   $34,808
                                                          =======   =======


    Earnings  per common share - basic                      $0.74     $0.71
                                                            =====     =====
    Weighted average common shares outstanding - basic     50,384    49,155
                                                           ======    ======

    Earnings per common share - diluted                     $0.69     $0.65
                                                            =====     =====
    Weighted average common shares outstanding - diluted   53,835    53,700
                                                           ======    ======

    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt instruments that may be
        settled in cash upon conversion. Our 3-3/4% Convertible Senior Notes
        due 2012 issued in August 2005 are subject to FSP APB 14-1. The
        adoption of FSP APB 14-1 requires retrospective application of its
        effects to all previous years. The adoption of FSP APB 14-1 resulted
        in a $1.0 million increase in interest expense, a $0.4 decrease in
        income tax provision, a $0.6 million decrease in net income and a
        $.01 decrease in basic and fully diluted earnings per share
        for the quarter ended June 30, 2008 as compared to the amounts
        previously reported.



                                 FTI CONSULTING, INC.
                        OPERATING RESULTS BY BUSINESS SEGMENT
                                     (Unaudited)
                                     -----------

                                                  Utiliz-  Average   Revenue-
                                 EBITDA            ation   Billable Generating
                       Revenues    (1)    Margin    (2)    Rate (2)  Headcount
                       --------  -------  ------  -------  --------  ---------
                        (in thousands)
    ------------------ -----------------
    Three Months Ended
     June 30, 2009
      Corporate
       Finance/
       Restructuring   $133,970  $47,445    35.4%    76%      $437      736
      Forensic and
       Litigation
       Consulting        65,502   16,238    24.8%    73%      $347      618
      Strategic
       Communications    44,550    5,879    13.2%   N/M        N/M      580
      Technology         59,380   23,804    40.1%   N/M        N/M      348
      Economic
       Consulting        57,123   10,345    18.1%    75%      $456      290
                         ------   ------                                ---
                       $360,525  103,711    28.8%   N/M        N/M    2,572
                       ========                                       =====
       Corporate                 (19,132)
                                 -------
     EBITDA (1)                  $84,579    23.5%
                                 =======

    ----------------
    Six Months Ended
     June 30, 2009
      Corporate
       Finance/
       Restructuring   $261,512  $88,166    33.7%    80%      $427      736
      Forensic and
       Litigation
       Consulting       132,352   31,951    24.1%    75%      $341      618
      Strategic
       Communications    87,321   11,675    13.4%   N/M        N/M      580
      Technology        115,227   43,130    37.4%   N/M        N/M      348
      Economic
       Consulting       111,959   20,664    18.5%    76%      $455      290
                        -------   ------                                ---
                       $708,371  195,586    27.6%   N/M        N/M    2,572
                       ========                                       =====
       Corporate                 (37,044)
                                 -------
      EBITDA (1)                $158,542    22.4%
                                ========

    ------------------
    Three Months Ended
     June 30, 2008
      Corporate
       Finance/
       Restructuring    $96,123  $29,624    30.8%    75%      $429      599
      Forensic and
       Litigation
       Consulting        69,310   15,717    22.7%    73%      $331      627
      Strategic
       Communications    62,197   16,428    26.4%   N/M        N/M      563
      Technology         56,275   21,213    37.7%   N/M        N/M      335
      Economic
       Consulting        53,765   13,987    26.0%    83%      $450      243
                         ------   ------                                ---
                       $337,670   96,969    28.7%   N/M        N/M    2,367
                       ========                                       =====
       Corporate                 (19,413)
                                 -------
      EBITDA (1)                 $77,556    23.0%
                                 =======

    ----------------
    Six Months Ended
     June 30, 2008
      Corporate
       Finance/
       Restructuring   $175,406  $51,534    29.4%    78%      $428      599
      Forensic and
       Litigation
       Consulting       129,565   30,373    23.4%    74%      $332      627
      Strategic
       Communications   116,811   29,107    24.9%   N/M        N/M      563
      Technology        112,810   44,535    39.5%   N/M        N/M      335
      Economic
       Consulting       110,180   27,303    24.8%    86%      $449      243
                        -------   ------                                ---
                       $644,772  182,852    28.4%   N/M        N/M    2,367
                       ========                                       =====
       Corporate                 (37,262)
                                 -------
      EBITDA (1)                $145,590    22.6%
                                ========

    (1) We define EBITDA as operating income before depreciation and
        amortization of intangible assets plus non-operating litigation
        settlements. Although EBITDA is not a measure of financial condition
        or performance determined in accordance with generally accepted
        accounting principles (GAAP), we believe that it 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. EBITDA is a common alternative measure of operating
        performance used by investors, financial analysts and credit rating
        agencies to value and compare the financial performance of companies
        in our industry. We use EBITDA to evaluate and compare the operating
        performance of our segments and it is one of the primary measures
        used to determine employee bonuses. We also use EBITDA to value the
        businesses we acquire or anticipate acquiring. EBITDA is 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. This non-GAAP measure 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) The majority of the Technology and Strategic Communications segments'
        revenues are not generated on an hourly basis.  Accordingly,
        utilization and average billable rate metrics are not presented as
        they are not meaningful. Utilization where presented is based on a
        2,032 hour year.



       RECONCILIATION OF OPERATING INCOME AND NET INCOME TO EARNINGS BEFORE
                  INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
                                    (Unaudited)
                                    -----------

    Three Months Ended   Corporate    Forensic and    Strategic
     June 30, 2009       Finance /     Litigation      Communi-
                       Restructuring   Consulting      cations    Technology
                      --------------  ------------   ----------   ----------

    Net income
      Interest income
       and other
      Interest expense
      Litigation
       Settlement losses
      Income tax provision
    Operating income         $45,042       $15,050         $3,742     $18,805
      Depreciation               815           575            798       2,942
      Amortization of other
       intangible assets       1,588           613          1,339       2,057
      Litigation
       settlement gains            -             -              -           -
                                   -             -              -           -
    EBITDA (1)                47,445        16,238          5,879      23,804
                              ======        ======          =====      ======


    Six Months Ended
     June 30, 2009

    Net income
      Interest income
       and other
      Interest expense
      Litigation settlement
       losses
      Income tax provision
    Operating income         $83,417       $29,508         $7,618     $33,111
      Depreciation             1,579         1,146          1,550       5,891
      Amortization of other
       intangible assets       3,170         1,297          2,507       4,128
      Litigation
       settlement losses           -             -              -           -
                                   -             -              -           -
    EBITDA (1)                88,166        31,951         11,675      43,130
                              ======        ======         ======      ======


    Three Months Ended
     June 30, 2008 (2)

    Net income
      Interest income
       and other
      Interest expense
      Litigation settlement
       losses
      Income tax provision
    Operating income         $27,492       $14,278        $14,572     $18,720
      Depreciation               666           640            696       2,466
      Amortization of other
       intangible assets       1,466           799          1,360         262
      Litigation settlement
       losses                      -             -           (200)       (235)
                                   -             -           ----        ----
    EBITDA (1)                29,624        15,717         16,428      21,213
                              ======        ======         ======      ======


    Six Months Ended
     June 30, 2008 (2)

    Net income (loss)
      Interest income
       and other
      Interest expense
      Litigation settlement
       losses
      Income tax provision
    Operating income         $48,841       $27,797        $25,378     $39,137
      Depreciation             1,187         1,264          1,358       4,808
      Amortization of other
       intangible assets       1,506         1,312          2,572         825
      Litigation settlement
       losses                      -             -           (201)       (235)
                                   -             -           ----        ----
    EBITDA (1)                51,534        30,373         29,107      44,535
                              ======        ======         ======      ======



    Three Months Ended              Economic
     June 30, 2009                 Consulting     Corp HQ         Total
                                   -----------    -------         -----

    Net income                                                    $37,225
      Interest income and other                                      (702)
      Interest expense                                             11,030
      Litigation settlement losses                                      -
      Income tax provision                                         23,800
                                                                   ------
    Operating income                  $9,373      $(20,659)        71,353
      Depreciation                       420         1,527          7,077
      Amortization of other
       intangible assets                 552             -          6,149
      Litigation settlement gains          -             -              -
                                           -             -              -
    EBITDA (1)                        10,345       (19,132)        84,579
                                      ======       =======         ======


    Six Months Ended June 30, 2009

    Net income                                                    $68,897
      Interest income and other                                    (2,755)
      Interest expense                                             22,043
      Litigation settlement losses                                   (250)
      Income tax provision                                         44,049
                                                                   ------
    Operating income                 $18,740      $(40,410)       131,984
      Depreciation                       827         3,116         14,109
      Amortization of other
       intangible assets               1,097             -         12,199
      Litigation settlement losses         -           250            250
                                           -           ---            ---
    EBITDA (1)                        20,664       (37,044)       158,542
                                      ======       =======        =======


    Three Months Ended June 30, 2008 (2)

    Net income                                                    $34,808
      Interest income and other                                    (2,089)
      Interest expense                                             11,307
      Litigation settlement losses                                    435
      Income tax provision                                         22,813
                                                                   ------
    Operating income                 $13,035      $(20,823)        67,274
      Depreciation                       382         1,410          6,260
      Amortization of other
       intangible assets                 570             -          4,457
      Litigation settlement losses         -             -           (435)
                                           -             -           ----
    EBITDA (1)                        13,987       (19,413)        77,556
                                      ======       =======         ======


    Six Months Ended June 30, 2008 (2)

    Net income (loss)                                             $65,508
      Interest income and other                                    (5,400)
      Interest expense                                             22,906
      Litigation settlement losses                                    436
      Income tax provision                                         42,935
                                                                   ------
    Operating income                 $25,298      $(40,066)       126,385
      Depreciation                       865         2,804         12,286
      Amortization of other
       intangible assets               1,140             -          7,355
      Litigation settlement losses         -             -           (436)
                                           -             -           ----
    EBITDA (1)                        27,303       (37,262)       145,590
                                      ======       =======        =======

    (1) We define EBITDA as operating income before depreciation and
        amortization of intangible assets plus non-operating litigation
        settlements. Although EBITDA is not a measure of financial condition
        or performance determined in accordance with generally accepted
        accounting principles (GAAP), we believe that it 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. EBITDA is a common alternative measure of operating
        performance used by investors, financial analysts and credit rating
        agencies to value and compare the financial performance of companies
        in our industry. We use EBITDA to evaluate and compare the operating
        performance of our segments and it is one of the primary measures
        used to determine employee bonuses. We also use EBITDA to value the
        businesses we acquire or anticipate acquiring. EBITDA is 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. This non-GAAP measure should be considered in
        addition to, but not as a substitute for or superior to, the
        information contained in our statements of income.

    (2) As of January 1, 2009 we adopted FSP No. APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt that may be settled in
        cash upon conversion. Our 3-3/4% Convertible Senior Subordinated Notes
        due 2012 issued in August 2005 are subject to FSP APB 14-1.  The
        adoption of FSP APB 14-1 requires retrospective application of its
        effects to all previous years.  The adoption of FSP APB 14-1 resulted
        in a $1.0 million increase in interest expense, a $0.4 million
        decrease in income tax provision, and a $0.6 million decrease in net
        income for the quarter ended June 30, 2008 as compared to the amounts
        previously reported.  For the six months ended June 30, 2008, the
        adoption of FSP APB 14-1 resulted in a $2.0 million increase in
        interest expense, a $0.8 million decrease in income tax provision, and
        a $1.2 million decrease in net income as compared to the amounts
        previously reported.



                               FTI CONSULTING, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
                                  (in thousands)
                                  --------------

                                                           Six Months Ended
                                                               June 30,
                                                               --------
                                                              2009  2008 (1)
                                                              ----  --------
                                                              (unaudited)
    Operating activities
    Net income                                             $68,897   $65,508
    Adjustments to reconcile net income to net cash
     provided by operating activities:
      Depreciation                                          14,109    12,286
      Amortization of other intangible assets               12,199     7,355
      Provision for doubtful accounts                       12,212     8,564
      Non-cash share-based compensation                     13,349    14,172
      Excess tax benefits from share-based compensation     (2,761)   (4,682)
      Non-cash interest expense                              3,698     3,517
      Other                                                  1,308      (188)
      Changes in operating assets and liabilities, net of
       effects from acquisitions:
        Accounts receivable, billed and unbilled           (47,807)  (63,513)
        Notes receivable                                   (19,511)   (7,158)
        Prepaid expenses and other assets                    3,796    (9,555)
        Accounts payable, accrued expenses and other       (15,836)    4,422
        Income taxes                                        14,151    27,640
        Accrued compensation                               (10,371)     (493)
        Billings in excess of services provided               (679)     (911)
                                                              ----      ----
                               Net cash provided by
                                operating activities        46,754    56,964
                                                            ------    ------

    Investing activities
      Payments for acquisition of businesses, including
       contingent payments and acquisition costs, net of
       cash received                                       (37,654) (225,183)
      Purchases of property and equipment                  (11,687)  (17,843)
      Other                                                    307    (1,059)
                                                               ---    ------
                              Net cash (used in) investing
                               activities                  (49,034) (244,085)
                                                           -------  --------

    Financing activities
      Payments of long-term debt and capital lease
       obligations                                            (551)   (7,239)
      Cash received for settlement of interest rate swaps    2,288         -
      Issuance of common stock under equity compensation
       plans                                                13,098    12,006
      Excess tax benefit from share based compensation       2,761     4,682
                                                             -----     -----
                              Net cash provided by
                               financing activities         17,596     9,449
                                                            ------     -----

    Effect of exchange rate changes and fair value
     adjustments on cash and cash equivalents                5,934      (217)
                                                             -----      ----

    Net increase (decrease) in cash and cash equivalents    21,250  (177,889)
    Cash and cash equivalents, beginning of period         191,842   360,463
                                                           -------   -------
    Cash and cash equivalents, end of period              $213,092  $182,574
                                                          ========  ========

     (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt instruments that may
        be settled in cash upon conversion. Our 3-3/4% Convertible Senior
        Notes due 2012 issued in August 2005 are subject to FSP APB 14-1. The
        adoption of FSP APB 14-1 requires retrospective application of its
        effects to all previous years.



                              FTI CONSULTING, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                   AS OF JUNE 30, 2009 AND  DECEMBER 31, 2008
                    (in thousands, except per share amounts)
                    ----------------------------------------

                                                       June 30, December 31,
                                                         2009    2008 (1)
                                                         ----    --------
                        Assets                            (unaudited)
    Current assets
       Cash and cash equivalents                     $213,092      $191,842
       Accounts receivable
           Billed                                     267,734       237,009
           Unbilled                                   127,200        98,340
           Allowance for doubtful accounts and
            unbilled services                         (64,581)      (45,309)
                                                      -------       -------
                                                      330,353       290,040
       Notes receivable                                20,238        15,145
       Prepaid expenses and other current assets       25,624        31,055
       Deferred income taxes                           24,607        24,372
                                                       ------        ------
        Total current assets                          613,914       552,454

    Property and equipment, net                        76,760        78,575
    Goodwill                                        1,177,325     1,151,388
    Other intangible assets, net                      184,318       189,304
    Notes receivable, net of current portion           72,099        56,500
    Other assets                                       53,645        59,349
                                                       ------        ------

          Total assets                             $2,178,061    $2,087,570
                                                   ==========    ==========

         Liabilities and Stockholders' Equity
    Current liabilities
        Accounts payable, accrued expenses and
         other                                        $45,099      $109,036
      Accrued compensation                            114,535       133,103
      Current portion of long-term debt and
       capital lease obligations                      149,347       132,915
        Billings in excess of services provided        30,569        30,872
                                                       ------        ------
        Total current liabilities                     339,550       405,926

    Long-term debt and capital lease obligations,
     net of current portion                           418,187       418,592
    Deferred income taxes                              92,725        83,777
    Other liabilities                                  49,780        45,037
                                                       ------        ------
          Total liabilities                           900,242       953,332

    Stockholders' equity
      Preferred stock, $0.01 par value; 5,000
       shares authorized, none outstanding                  -             -
      Common stock, $0.01 par value; 75,000
       shares authorized; 75,000 shares issued and
       outstanding - 51,695 (2009) and 50,934
       (2008)                                             517           509
      Additional paid-in capital                      768,173       735,180
      Retained earnings                               547,779       478,882
      Accumulated other comprehensive income          (38,650)      (80,333)
                                                      -------       -------
          Total stockholders' equity                1,277,819     1,134,238
                                                    ---------     ---------

          Total liabilities and stockholders'
           equity                                  $2,178,061    $2,087,570
                                                   ==========    ==========

    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt instruments that may
        be settled in cash upon conversion. Our 3-3/4% Convertible Senior
        Notes due 2012 issued in August 2005 are subject to FSP APB 14-1.
        The adoption of FSP APB 14-1 requires retrospective application of its
        effects to all previous years. The adoption of this FSP resulted in a
        $0.6 million decrease in other assets, a $18.0 decrease in the current
        portion of long-term debt, a $7.0 million increase in deferred income
        taxes, an $18.0 million increase in additional paid in capital
        and a $7.6 million decrease in retained earnings from the amounts
        previously reported at December  31, 2008.




SOURCE FTI Consulting, Inc.


http://www.fticonsulting.com
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