FTI Consulting Reports Third Quarter 2016 Financial Results

Third Quarter Revenues of $438.0 Million

Third Quarter Fully Diluted EPS and Adjusted EPS of $0.52

WASHINGTON, Oct. 27, 2016 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE:FCN) (the “Company”) today released its financial results for the third quarter ended September 30, 2016.

For the quarter, revenues decreased 3.8 percent to $438.0 million compared to $455.5 million in the prior year quarter. Excluding the estimated negative impact of foreign currency translation (“FX”), revenues declined by 2.0 percent. Net income increased 110.4 percent to $21.7 million compared to $10.3 million in the prior year quarter. Adjusted EBITDA of $47.2 million, or 10.8 percent of revenues, declined from $56.1 million, or 12.3 percent of revenues, in the prior year quarter. Fully diluted earnings per share (“EPS”) and Adjusted EPS were $0.52 compared to EPS of $0.25 and Adjusted EPS of $0.53 in the prior year quarter. EPS in the prior year quarter included a $19.6 million charge or a $0.28 per share loss related to the early extinguishment of debt.

Net cash provided by operating activities for the quarter was $70.9 million compared to $74.0 million in the prior year quarter. Cash and cash equivalents were $225.2 million at September 30, 2016, compared to $105.0 million at September 30, 2015. Total debt was $475.0 million at September 30, 2016, down from $520.0 million at September 30, 2015.

Commenting on these results, Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, said, “We are pleased with the ongoing progress our businesses are making towards becoming, on a multi-year basis, real engines for growth. During the third quarter, our billable headcount grew 3.9 percent from the second quarter of 2016 as we continue to attract the best professionals across the globe and extend our offerings into new adjacencies and geographies.”

Third Quarter Segment Results

Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment decreased $2.9 million, or 2.5 percent, to $110.6 million in the quarter compared to $113.5 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues decreased $1.0 million, or 0.9 percent, compared to the prior year quarter. Adjusted Segment EBITDA was $17.8 million, or 16.1 percent of segment revenues, compared to $26.7 million, or 23.5 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA Margin was primarily due to lower utilization and higher costs related to the ramp up of experienced hires.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment decreased $1.1 million, or 1.0 percent, to $115.0 million in the quarter compared to $116.2 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues were comparable to the prior year quarter. Higher success fees were offset by lower demand in the segment’s health solutions practice. Adjusted Segment EBITDA was $16.6 million, or 14.4 percent of segment revenues, compared to $13.4 million, or 11.5 percent of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA Margin was driven by higher success fees in the segment’s health solutions practice.

Economic Consulting
Revenues in the Economic Consulting segment increased $7.9 million, or 6.9 percent, to $122.5 million in the quarter compared to $114.5 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $10.8 million, or 9.4 percent, compared to the prior year quarter. The increase in revenues was primarily due to higher demand and higher average realization in non-merger and acquisition (“M&A”)-related antitrust services in North America, which were partially offset by lower average realization for financial economics services in North America. Adjusted Segment EBITDA was $18.4 million, or 15.0 percent of segment revenues, compared to $16.7 million, or 14.5 percent of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA Margin was due to improved utilization in North America, which was partially offset by lower utilization in Europe, the Middle East and Africa (“EMEA”).

Technology
Revenues in the Technology segment decreased $11.5 million, or 20.7 percent, to $44.1 million in the quarter compared to $55.6 million in the prior year quarter. The decrease in revenues was driven by a decline in M&A-related “second request” activity and reduced demand for litigation services. Adjusted Segment EBITDA was $7.4 million, or 16.8 percent of segment revenues, compared to $10.8 million, or 19.5 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA Margin was due to lower demand and realized pricing for managed review services.

Strategic Communications
Revenues in the Strategic Communications segment decreased $9.9 million, or 17.7 percent, to $45.8 million in the quarter compared to $55.7 million in the prior year quarter. Excluding the estimated impact of FX, revenues decreased $7.8 million, or 14.0 percent, compared to the prior year quarter. The decrease in revenues was primarily due to $8.5 million in lower pass-through revenues compared to the prior year quarter. Adjusted Segment EBITDA was $7.5 million, or 16.4 percent of segment revenues, compared to $8.7 million, or 15.6 percent of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA Margin was primarily due to the impact of lower net pass-through revenue. Excluding this impact, Adjusted Segment EBITDA Margin declined 2.3 percentage points due to higher costs related to the ramp up of new hires.

2016 Guidance
The Company revised its 2016 guidance for revenues to be approximately $1.80 billion. This compares to the previous range of between $1.80 billion and $1.87 billion. The Company reaffirmed 2016 guidance for Adjusted EPS of between $2.15 and $2.45.

Third Quarter 2016 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss third quarter 2016 financial results at 9:00 a.m. Eastern Time on October 27, 2016. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website at www.fticonsulting.com.

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 4,600 employees located in 29 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $1.78 billion in revenues during fiscal year 2015. More information can be found at www.fticonsulting.com.

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

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

We define Adjusted Net Income and Adjusted Earnings per Diluted Share (“Adjusted EPS”), non-GAAP financial measures, as Net Income (Loss) and earnings per diluted share (“GAAP EPS”), respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of debt. We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total company operating performance on a consistent basis. We believe that this measure, when considered together with our GAAP financial results and GAAP financial measures, provides management and investors with a more complete understanding of our business operating results, including underlying trends, by excluding the effects of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of debt.

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

The financial tables accompanying this press release do not include a reconciliation of the Company’s 2016 Adjusted EPS guidance to an estimate of GAAP EPS. It is difficult to predict and estimate future remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and/or losses on early extinguishment of debt, as these items are dependent on future events that are uncertain. Accordingly, a reconciliation of our non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Safe Harbor Statement
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions and other matters, business trends and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes,” "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will be achieved, and the Company's actual results may differ materially from our expectations, beliefs and estimates. Further, preliminary results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flow in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer, the mix of the geographic locations where our clients are located or where services are performed, adverse financial, real estate or other market and general economic conditions, which could impact each of our segments differently, the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the headings "Item 1A Risk Factors" in the Company's most recent Form 10-K filed with the SEC and in the Company's other filings with the SEC, including the risks set forth under "Risks Related to Our Reportable Segments" and "Risks Related to Our Operations". We are under no duty to update any of the forward looking statements to conform such statements to actual results or events and do not intend to do so.

FINANCIAL TABLES FOLLOW

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	September 30,
	2016			2015

Revenues	$	438,042		$	455,470

Operating expenses
Direct cost of revenues		293,702			301,609
Selling, general and administrative expenses		106,220			105,058
Acquisition-related contingent consideration		201			159
Amortization of other intangible assets		2,845			2,900
		402,968			409,726

Operating income		35,074			45,744

Other income (expense)
Interest income and other		3,213			2,027
Interest expense		(6,304	)		(11,696	)
Loss on early extinguishment of debt		-			(19,589	)
		(3,091	)		(29,258	)

Income before income tax provision		31,983			16,486

Income tax provision		10,292			6,177

Net income	$	21,691		$	10,309

Earnings per common share - basic	$	0.53		$	0.25
Weighted average common shares outstanding - basic		41,239			41,094

Earnings per common share - diluted	$	0.52		$	0.25
Weighted average common shares outstanding - diluted		42,065			41,982


Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax $0	$	(4,478	)	$	(17,229	)
Total other comprehensive loss, net of tax		(4,478	)		(17,229	)
Comprehensive income (loss)	$	17,213		$	(6,920	)

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
(unaudited)

	Nine Months Ended
	September 30,
	2016			2015

Revenues	$	1,368,474		$	1,336,945

Operating expenses
Direct cost of revenues		902,532			872,108
Selling, general and administrative expenses		318,074			316,317
Special charges		6,811			-
Acquisition-related contingent consideration		1,541			(1,145	)
Amortization of other intangible assets		8,041			8,919
		1,236,999			1,196,199

Operating income		131,475			140,746

Other income (expense)
Interest income and other		9,895			2,840
Interest expense		(18,836	)		(36,537	)
Loss on extinguishment of debt		-			(19,589	)
		(8,941	)		(53,286	)

Income before income tax provision		122,534			87,460

Income tax provision		44,115			31,756

Net income	$	78,419		$	55,704

Earnings per common share - basic	$	1.92		$	1.37
Weighted average common shares outstanding - basic		40,856			40,771

Earnings per common share - diluted	$	1.88		$	1.34
Weighted average common shares outstanding - diluted		41,605			41,682


Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax $0	$	(23,645	)	$	(24,412	)
Total other comprehensive loss, net of tax		(23,645	)		(24,412	)
Comprehensive income	$	54,774		$	31,292

FTI CONSULTING, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015

Net income	$	21,691	$	10,309	$	78,419	$	55,704
Add back:
Special charges, net of tax⁽¹⁾		-		-		4,328		-
Loss on extinguishment of debt, net of tax ⁽²⁾		-		11,881		-		11,881
Remeasurement of acquisition-related contingent consideration, net of tax ⁽³⁾		-		-		600		(1,005	)
Adjusted Net Income	$	21,691	$	22,190	$	83,347	$	66,580

Earnings per common share – diluted	$	0.52	$	0.25	$	1.88	$	1.34
Add back:
Special charges, net of tax ⁽¹⁾		-		-		0.10		-
Loss on extinguishment of debt, net of tax⁽²⁾		-		0.28		-		0.28
Remeasurement of acquisition-related contingent consideration, net of tax ⁽³⁾		-		-		0.02		(0.02	)
Adjusted earnings per common share - diluted	$	0.52	$	0.53	$	2.00	$	1.60

Weighted average number of common shares outstanding – diluted		42,065		41,982		41,605		41,682


(1) The tax effect takes into account the tax treatment and related tax rates that apply to each adjustment in the applicable tax jurisdiction. As a result, the effective tax rate for the adjustments related to special charges for the nine months ended September 30, 2016 was 36.5%. The tax expense related to the adjustments for special charges for the nine months ended September 30, 2016 was $2.5 million or $0.06 impact on Adjusted EPS. There were no special charges for the three and nine months ended September 30, 2015.

(2) The tax effect takes into account the tax treatment and related tax rates that apply to each adjustment in the applicable tax jurisdiction. As a result, the effective tax rate for the loss on early extinguishment of debt for the three and nine months ended September 30, 2015 was 39.3%. The tax expense related to the loss on early extinguishment of debt for the three and nine months ended September 30, 2015 was $7.7 million, or a $0.18 impact on Adjusted EPS. There were no adjustments related to the early extinguishment of debt in the three or nine months ended September 30, 2016.

(3) The tax effect takes into account the tax treatment and related tax rates that apply to each adjustment in the applicable tax jurisdiction. As a result, the effective tax rate for the adjustments related to the remeasurement of acquisition-related contingent consideration for the nine months ended September 30, 2016 and 2015 were 38.8% and 40%, respectively. The tax expense related to the adjustment for the remeasurement of acquisition-related contingent consideration for the nine months ended September 30, 2016 and 2015 were $0.4 million or $0.01 impact on adjusted EPS and $0.7 million or a $0.02 impact on Adjusted EPS, respectively. There were no adjustments related to the remeasurement of acquisition-related contingent consideration in the three months ended September 30, 2016 and 2015.

FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(unaudited)
												Average		Revenue-
	Segment		Adjusted			Adjusted EBITDA						Billable		Generating
	Revenues		EBITDA			Margin			Utilization			Rate		Headcount
	(in thousands)													(at period end)
Three Months Ended September 30, 2016
Corporate Finance & Restructuring	$	110,617	$	17,762			16.1	%		61	%	$	379	904
Forensic and Litigation Consulting		115,045		16,554			14.4	%		57	%	$	330	1,145
Economic Consulting		122,480		18,354			15.0	%		69	%	$	534	647
Technology ⁽¹⁾		44,072		7,398			16.8	%	N/M			N/M		298
Strategic Communications⁽¹⁾		45,828		7,509			16.4	%	N/M			N/M		624
	$	438,042		67,577			15.4	%						3,618
Unallocated Corporate				(20,348	)
Adjusted EBITDA			$	47,229			10.8	%

Nine Months Ended September 30, 2016
Corporate Finance & Restructuring	$	369,915	$	81,406			22.0	%		68	%	$	388	904
Forensic and Litigation Consulting		352,242		51,552			14.6	%		60	%	$	329	1,145
Economic Consulting		371,217		55,054			14.8	%		74	%	$	516	647
Technology ⁽¹⁾		134,235		20,256			15.1	%	N/M			N/M		298
Strategic Communications⁽¹⁾		140,865		22,057			15.7	%	N/M			N/M		624
	$	1,368,474		230,325			16.8	%						3,618
Unallocated Corporate				(57,659	)
Adjusted EBITDA			$	172,666			12.6	%

Three Months Ended September 30, 2015
Corporate Finance & Restructuring	$	113,487	$	26,662			23.5	%		69	%	$	390	830
Forensic and Litigation Consulting		116,158		13,406			11.5	%		60	%	$	318	1,209
Economic Consulting		114,541		16,654			14.5	%		71	%	$	523	594
Technology ⁽¹⁾		55,568		10,813			19.5	%	N/M			N/M		354
Strategic Communications⁽¹⁾		55,716		8,717			15.6	%	N/M			N/M		594
	$	455,470		76,252			16.7	%						3,581
Unallocated Corporate				(20,150	)
Adjusted EBITDA			$	56,102			12.3	%

Nine Months Ended September 30, 2015
Corporate Finance & Restructuring	$	328,812	$	71,174			21.6	%		71	%	$	382	830
Forensic and Litigation Consulting		365,554		55,456			15.2	%		65	%	$	315	1,209
Economic Consulting		329,320		43,502			13.2	%		72	%	$	506	594
Technology ⁽¹⁾		172,048		33,052			19.2	%	N/M			N/M		354
Strategic Communications⁽¹⁾		141,211		20,100			14.2	%	N/M			N/M		594
	$	1,336,945		223,284			16.7	%						3,581
Unallocated Corporate				(52,725	)
Adjusted EBITDA			$	170,559			12.8	%


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

RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA
(in thousands)
(unaudited)

Three Months Ended September 30, 2016	Corporate Finance & Restructuring			Forensic and Litigation Consulting		Economic Consulting			Technology		Strategic Communications		Corp HQ			Total

Net income																$	21,691
Interest income and other																	(3,213	)
Interest expense																	6,304
Income tax provision																	10,292
Operating income	$	16,182		$	14,867	$	16,888		$	2,869	$	6,006	$	(21,738	)	$	35,074
Depreciation and amortization		698			1,203		1,312			4,121		586		1,390			9,310
Amortization of other intangible assets		882			484		154			408		917		-			2,845
Adjusted EBITDA	$	17,762		$	16,554	$	18,354		$	7,398	$	7,509	$	(20,348	)	$	47,229

Nine Months Ended September 30, 2016	Corporate Finance & Restructuring			Forensic and Litigation Consulting		Economic Consulting			Technology		Strategic Communications		Corp HQ			Total

Net income																$	78,419
Interest income and other																	(9,895	)
Interest expense																	18,836
Income tax provision																	44,115
Operating income	$	76,740		$	45,005	$	51,390		$	2,569	$	16,661	$	(60,890	)	$	131,475
Depreciation and amortization		2,175			3,278		3,172			11,901		1,602		3,231			25,359
Amortization of other intangible assets		2,491			1,519		492			725		2,814		-			8,041
Special charges		-			1,750		-			5,061		-		-			6,811
Remeasurement of acquisition-related contingent consideration		-			-		-			-		980		-			980
Adjusted EBITDA	$	81,406		$	51,552	$	55,054		$	20,256	$	22,057	$	(57,659	)	$	172,666


Three Months Ended September 30, 2015	Corporate Finance & Restructuring			Forensic and Litigation Consulting		Economic Consulting			Technology		Strategic Communications		Corp HQ			Total

Net income																$	10,309
Interest income and other																	(2,027	)
Interest expense																	11,696
Loss on early extinguishment of debt																	19,589
Income tax provision																	6,177
Operating income	$	25,112		$	11,944	$	15,498		$	6,830	$	7,235	$	(20,875	)	$	45,744
Depreciation and amortization		677			925		848			3,784		499		725			7,458
Amortization of other intangible assets		873			537		308			199		983		-			2,900
Adjusted EBITDA	$	26,662		$	13,406	$	16,654		$	10,813	$	8,717	$	(20,150	)	$	56,102

Nine Months Ended September 30, 2015	Corporate Finance & Restructuring			Forensic and Litigation Consulting		Economic Consulting			Technology		Strategic Communications		Corp HQ			Total

Net income																$	55,704
Interest income and other																	(2,840	)
Interest expense																	36,537
Loss on early extinguishment of debt																	19,589
Income tax provision																	31,756
Operating income	$	67,782		$	50,894	$	40,076		$	21,493	$	15,558	$	(55,057	)	$	140,746
Depreciation and amortization		2,141			2,862		2,686			10,969		1,579		2,332			22,569
Amortization of other intangible assets		2,742			1,700		924			590		2,963		-			8,919
Remeasurement of acquisition-related contingent consideration		(1,491	)		-		(184	)		-		-		-			(1,675	)
Adjusted EBITDA	$	71,174		$	55,456	$	43,502		$	33,052	$	20,100	$	(52,725	)	$	170,559

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Nine Months Ended
	September 30,
	2016			2015
Operating activities
Net income	$	78,419		$	55,704

Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		25,359			22,569
Amortization of other intangible assets		8,041			8,919
Acquisition-related contingent consideration		1,541			(1,145	)
Provision for doubtful accounts		5,903			10,364
Non-cash share-based compensation		13,381			14,356
Non-cash interest expense		1,489			2,029
Loss on early extinguishment of debt		-			19,589
Other		(1,159	)		(674	)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, billed and unbilled		(67,318	)		(84,411	)
Notes receivable		(3,674	)		(334	)
Prepaid expenses and other assets		(3,575	)		(4,396	)
Accounts payable, accrued expenses and other		10,900			10,158
Income taxes		28,204			15,371
Accrued compensation		4,486			(19,518	)
Billings in excess of services provided		9,578			(5,278	)
Net cash provided by operating activities		111,575			43,303

Investing activities
Payments for acquisition of businesses, net of cash received		(56	)		(575	)
Purchases of property and equipment		(22,855	)		(24,674	)
Other		74			94
Net cash used in investing activities		(22,837	)		(25,155	)

Financing activities
Borrowings (repayments) under revolving line of credit, net		(25,000	)		220,000
Payments of long-term debt		-			(425,671	)
Payments of debt issue costs		-			(3,701	)
Deposits		2,806			2,406
Purchase and retirement of common stock		(2,903	)		-
Net issuance of common stock under equity compensation plans		18,394			13,931
Other		357			124
Net cash used in financing activities		(6,346	)		(192,911	)

Effect of exchange rate changes on cash and cash equivalents		(6,968	)		(3,943	)

Net increase (decrease) in cash and cash equivalents		75,424			(178,706	)
Cash and cash equivalents, beginning of period		149,760			283,680
Cash and cash equivalents, end of period	$	225,184		$	104,974

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

	September 30,			December 31,
	2016			2015
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	225,184		$	149,760
Accounts receivable:
Billed receivables		416,960			405,000
Unbilled receivables		326,297			280,538
Allowance for doubtful accounts and unbilled services		(195,669	)		(185,754	)
Accounts receivable, net		547,588			499,784
Current portion of notes receivable		32,490			36,115
Prepaid expenses and other current assets		58,804			55,966
Total current assets		864,066			741,625
Property and equipment, net of accumulated depreciation		66,422			74,760
Goodwill		1,188,230			1,198,298
Other intangible assets, net of amortization		54,493			63,935
Notes receivable, net of current portion		112,364			106,882
Other assets		56,043			43,518
Total assets	$	2,341,618		$	2,229,018

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable, accrued expenses and other	$	97,144		$	89,845
Accrued compensation		229,611			227,783
Billings in excess of services provided		38,774			29,449
Total current liabilities		365,529			347,077
Long-term debt, net		470,339			494,772
Deferred income taxes		170,768			139,787
Other liabilities		103,397			99,779
Total liabilities		1,110,033			1,081,415

Stockholders' equity
Preferred stock, $0.01 par value; shares authorized ― 5,000; none outstanding		-			-
Common stock, $0.01 par value; shares authorized ― 75,000; shares issued and outstanding ― 42,367 (2016) and 41,234 (2015)		423			412
Additional paid-in capital		429,902			400,705
Retained earnings		933,900			855,481
Accumulated other comprehensive loss		(132,640	)		(108,995	)
Total stockholders' equity		1,231,585			1,147,603
Total liabilities and stockholders' equity	$	2,341,618		$	2,229,018

FTI Consulting, Inc.
1101 K Street NW
Washington, DC 20005
+1.202.312.9100

Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

FTI Consulting, Inc.

Press Releases

Investor Relations Contacts

Mollie Hawkes

Megan McLaughlin Hawkins