FTI Consulting Reports Record Second Quarter 2024 Financial Results

  • Second Quarter 2024 Revenues of $949.2 Million, Up 10% Compared to $864.6 Million in Prior Year Quarter
  • Second Quarter 2024 EPS of $2.34, Up 34% Compared to $1.75 in Prior Year Quarter
  • Company Raises Full Year 2024 Revenue and EPS Guidance Ranges to Reflect Record First Half of 2024

WASHINGTON, July 25, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the second quarter ended June 30, 2024.

Second quarter 2024 revenues of $949.2 million increased $84.6 million, or 9.8%, compared to revenues of $864.6 million in the prior year quarter. The increase in revenues was primarily due to higher demand in the Corporate Finance & Restructuring, Economic Consulting and Technology segments. Net income of $83.9 million compared to $62.4 million in the prior year quarter. The increase in net income was primarily due to higher revenues, a lower effective tax rate and a foreign currency remeasurement gain compared to a loss in the prior year quarter, which was partially offset by an increase in compensation and selling, general and administrative (“SG&A”) expenses compared to the prior year quarter. Adjusted EBITDA of $115.9 million, or 12.2% of revenues, compared to $100.2 million, or 11.6% of revenues, in the prior year quarter. Second quarter 2024 earnings per diluted share (“EPS”) of $2.34 compared to $1.75 in the prior year quarter.

Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, "Our terrific results this quarter and in the first quarter together delivered an exceptional first half of the year. To us, these results, in the face of complicated economic times, show the power of our multiyear commitment to continue to attract and support talented professionals who are committed to making a difference for our clients."

Cash Position and Capital Allocation

Net cash provided by operating activities of $135.2 million for the quarter ended June 30, 2024 compared to net cash used in operating activities of $11.0 million for the quarter ended June 30, 2023. The year-over-year increase in net cash provided by operating activities was primarily due to an increase in cash collections resulting from higher revenues, which was partially offset by higher operating expenses and an increase in compensation payments primarily related to higher variable compensation, annual salary increases and headcount growth compared to the prior year quarter.

Cash and cash equivalents of $226.4 million at June 30, 2024 compared to $203.5 million at June 30, 2023 and $244.0 million at March 31, 2024. Total debt, net of cash, of ($166.4) million at June 30, 2024 compared to $137.2 million at June 30, 2023 and ($39.0) million at March 31, 2024.

There were no share repurchases during the quarter ended June 30, 2024. As of June 30, 2024, approximately $460.7 million remained available for common stock repurchases under the Company’s stock repurchase program.

Second Quarter 2024 Segment Results

Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment increased $30.1 million, or 9.5%, to $348.0 million in the quarter compared to $317.9 million in the prior year quarter. The increase in revenues was primarily due to higher demand and realized bill rates for business transformation & strategy and transactions services, which was partially offset by lower restructuring revenues. Adjusted Segment EBITDA of $66.5 million, or 19.1% of segment revenues, compared to $45.5 million, or 14.3% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in variable compensation compared to the prior year quarter.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased $4.7 million, or 2.9%, to $169.5 million in the quarter compared to $164.8 million in the prior year quarter. Acquisition-related revenues contributed $1.9 million in the quarter. The increase in revenues was primarily due to higher demand for disputes services and higher realized bill rates for construction solutions services, which was partially offset by lower demand for investigations services. Adjusted Segment EBITDA of $15.0 million, or 8.8% of segment revenues, compared to $25.6 million, or 15.5% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to an increase in compensation and SG&A expenses, which more than offset the increase in revenues compared to the prior year quarter.

Economic Consulting
Revenues in the Economic Consulting segment increased $29.1 million, or 14.4%, to $230.9 million in the quarter compared to $201.8 million in the prior year quarter. The increase in revenues was primarily due to higher demand and realized bill rates for merger and acquisition (“M&A”)-related antitrust and financial economics services, which was partially offset by lower demand and realized bill rates for non-M&A-related antitrust services. Adjusted Segment EBITDA of $44.3 million, or 19.2% of segment revenues, compared to $35.5 million, or 17.6% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, which includes the impact of a 3.6% increase in billable headcount and higher variable compensation, as well as higher SG&A expenses compared to the prior year quarter.

Technology
Revenues in the Technology segment increased $18.4 million, or 18.9%, to $115.9 million in the quarter compared to $97.4 million in the prior year quarter. The increase in revenues was primarily due to higher demand for M&A-related “second request” services, which was partially offset by lower demand for investigations services. Adjusted Segment EBITDA of $20.9 million, or 18.1% of segment revenues, compared to $20.1 million, or 20.6% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was largely offset by an increase in compensation, which includes higher as-needed consultant costs and the impact of a 12.4% increase in billable headcount, as well as higher SG&A expenses compared to the prior year quarter.

Strategic Communications
Revenues in the Strategic Communications segment increased $2.3 million, or 2.8%, to $84.9 million in the quarter compared to $82.7 million in the prior year quarter. The increase in revenues was primarily driven by a $1.7 million increase in pass-through revenues. Excluding pass-through revenues, revenues increased $0.6 million, or 0.7%, primarily driven by an increase in public affairs revenues, which was partially offset by lower corporate reputation revenues. Adjusted Segment EBITDA of $11.6 million, or 13.7% of segment revenues, compared to $12.3 million, or 14.8% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to an increase in SG&A expenses, which more than offset the increase in revenues compared to the prior year quarter.

2024 Guidance
After a record first half of 2024, the Company is raising its full year 2024 guidance ranges for revenues and EPS. The Company now estimates that revenues for full year 2024 will range between $3.700 billion and $3.790 billion, which compares to the prior range of between $3.650 billion and $3.790 billion. The Company now estimates EPS for full year 2024 will range between $8.10 and $8.60, which compares to the prior range of between $7.75 and $8.50. The Company does not currently expect Adjusted EPS to differ from EPS.

Second Quarter 2024 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss second quarter 2024 financial results at 9:00 a.m. Eastern Time on Thursday, July 25, 2024. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company’s investor relations website here.

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 8,000 employees located in 33 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated $3.49 billion in revenues during fiscal year 2023. More information can be found at www.fticonsulting.com.

Non-GAAP Financial Measures
In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures") under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures:

  • Total Segment Operating Income
  • Adjusted EBITDA
  • Total Adjusted Segment EBITDA
  • Adjusted EBITDA Margin
  • Adjusted Net Income
  • Adjusted Earnings per Diluted Share

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

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

We define Adjusted Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and EPS, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt, non-cash interest expense on convertible notes and the gain or loss on sale of a business. 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 these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with an additional understanding of our business operating results, including underlying trends.

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

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-looking statements include statements concerning our plans, initiatives, projections, prospects, policies, processes and practices, objectives, goals, commitments, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions, share repurchases and other matters, business trends, new or changes to laws and regulations, including U.S. and foreign tax laws, environmental, social and governance ("ESG")-related issues, climate change-related matters, scientific and technological developments, including relating to new and emerging technologies, such as Artificial Intelligence and machine learning, 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," "commits," "aspires," "forecasts," "future," "goal," "seeks" 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 plans, expectations, intentions, aspirations, beliefs, goals, estimates, forecasts and projections will result or be achieved. Our actual financial results, performance or achievements and outcomes could differ materially from those expressed in, or implied by, any forward-looking statements. Further, unaudited quarterly results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flows in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer; the mix of the geographic locations where our clients are located or where services are performed; fluctuations in the price per share of our common stock; adverse financial, real estate or other market and general economic conditions; the impact of public health crises and related events that are beyond our control, which could affect our segments, practices and the geographic regions in which we conduct business differently and adversely; and other future events, which could impact each of our segments, practices and the geographic regions in which we conduct business differently and could be outside of our control; the pace and timing of the consummation and integration of future acquisitions; the Company’s ability to realize cost savings and efficiencies; competitive and general economic conditions; retention of staff and clients; new laws and regulations or changes thereto; and other risks described under the heading "Item 1A, Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024 and in the Company’s other filings with the SEC. 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.
555 12th Street NW Washington, DC 20004
+1.202.312.9100

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

FINANCIAL TABLES FOLLOW

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
 
 June 30, December 31,
  2024   2023 
 (Unaudited)  
Assets   
Current assets   
Cash and cash equivalents$226,428  $303,222 
Accounts receivable, net 1,190,521   1,102,142 
Current portion of notes receivable 45,145   30,997 
Prepaid expenses and other current assets 107,117   119,092 
Total current assets 1,569,211   1,555,453 
Property and equipment, net 152,307   159,662 
Operating lease assets 202,511   208,910 
Goodwill 1,230,932   1,234,569 
Intangible assets, net 18,377   18,285 
Notes receivable, net 106,201   75,431 
Other assets 78,105   73,568 
Total assets$3,357,644  $3,325,878 
Liabilities and Stockholders’ Equity   
Current liabilities   
Accounts payable, accrued expenses and other$182,667  $223,758 
Accrued compensation 463,669   601,074 
Billings in excess of services provided 67,558   67,937 
Total current liabilities 713,894   892,769 
Long-term debt 60,000    
Noncurrent operating lease liabilities 214,517   223,774 
Deferred income taxes 136,374   140,976 
Other liabilities 83,479   86,939 
Total liabilities 1,208,264   1,344,458 
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 — 35,902 (2024) and 35,521 (2023)
 359   355 
Additional paid-in capital 33,955   16,760 
Retained earnings 2,278,677   2,114,765 
Accumulated other comprehensive loss (163,611)  (150,460)
Total stockholders’ equity 2,149,380   1,981,420 
Total liabilities and stockholders’ equity$3,357,644  $3,325,878 
 


FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
 
 Three Months Ended
June 30,
  2024   2023 
 (Unaudited)
Revenues$949,156  $864,591 
Operating expenses   
Direct cost of revenues 637,749   588,094 
Selling, general and administrative expenses 206,235   186,371 
Amortization of intangible assets 1,080   1,417 
  845,064   775,882 
Operating income 104,092   88,709 
Other income (expense)   
Interest income and other 1,909   (584)
Interest expense (3,319)  (3,022)
  (1,410)  (3,606)
Income before income tax provision 102,682   85,103 
Income tax provision 18,735   22,708 
Net income$83,947  $62,395 
Earnings per common share ― basic$2.38  $1.87 
Weighted average common shares outstanding ― basic 35,221   33,359 
Earnings per common share ― diluted$2.34  $1.75 
Weighted average common shares outstanding ― diluted 35,845   35,650 
Other comprehensive income (loss), net of tax   
Foreign currency translation adjustments, net of tax expense of $—$(1,718) $6,396 
Total other comprehensive income (loss), net of tax (1,718)  6,396 
Comprehensive income$82,229  $68,791 
 


FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
 
 Six Months Ended
June 30,
  2024   2023 
 (Unaudited)
Revenues$1,877,709  $1,671,297 
Operating expenses   
Direct cost of revenues 1,263,783   1,141,603 
Selling, general and administrative expenses 408,105   370,584 
Amortization of intangible assets 2,096   3,599 
  1,673,984   1,515,786 
Operating income 203,725   155,511 
Other income (expense)   
Interest income and other 3,490   (1,926)
Interest expense (5,038)  (5,961)
  (1,548)  (7,887)
Income before income tax provision 202,177   147,624 
Income tax provision 38,265   37,682 
Net income$163,912  $109,942 
Earnings per common share ― basic$4.67  $3.30 
Weighted average common shares outstanding ― basic 35,099   33,331 
Earnings per common share ― diluted$4.58  $3.09 
Weighted average common shares outstanding ― diluted 35,816   35,566 
Other comprehensive income (loss), net of tax   
Foreign currency translation adjustments, net of tax expense of $—$(13,151) $16,246 
Total other comprehensive income (loss), net of tax (13,151)  16,246 
Comprehensive income$150,761  $126,188 
 


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA
(in thousands)
 
Three Months Ended June 30, 2024
(Unaudited)
 Corporate
Finance &
Restructuring
 Forensic and
Litigation Consulting
 Economic Consulting Technology  Strategic Communications Unallocated
Corporate
 Total
Net income             $83,947 
Interest income and other              (1,909)
Interest expense              3,319 
Income tax provision              18,735 
Operating income  $63,193 $13,100 $42,952 $17,137 $10,594 $(42,884) $104,092 
Depreciation and amortization  2,560  1,627  1,344  3,793  918  507   10,749 
Amortization of intangible assets  714  267      99     1,080 
Adjusted EBITDA $66,467 $14,994 $44,296 $20,930 $11,611 $(42,377) $115,921 
               


Six Months Ended June 30, 2024
(Unaudited)
 Corporate
Finance &
Restructuring
 Forensic and
Litigation Consulting
 Economic Consulting Technology Strategic Communications Unallocated
Corporate
 Total
Net income             $163,912 
Interest income and other              (3,490)
Interest expense              5,038 
Income tax provision              38,265 
Operating income $135,112 $45,067 $55,817 $28,076 $22,068 $(82,415) $203,725 
Depreciation and amortization  5,033  3,256  2,629  7,435  1,800  1,020   21,173 
Amortization of intangible assets  1,547  380      169     2,096 
Adjusted EBITDA $141,692 $48,703 $58,446 $35,511 $24,037 $(81,395) $226,994 
 


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA
(in thousands)
 
Three Months Ended June 30, 2023
(Unaudited)
 Corporate Finance & Restructuring (1) Forensic and Litigation Consulting (1) Economic Consulting Technology Strategic Communications Unallocated Corporate Total
Net income             $62,395 
Interest income and other              584 
Interest expense              3,022 
Income tax provision              22,708 
Operating income $42,116 $23,885 $34,024 $16,432 $11,278 $(39,026) $88,709 
Depreciation and amortization  2,284  1,490  1,499  3,655  901  275   10,104 
Amortization of intangible assets  1,110  223      84     1,417 
Adjusted EBITDA $45,510 $25,598 $35,523 $20,087 $12,263 $(38,751) $100,230 
               
Six Months Ended June 30, 2023
(Unaudited)
 Corporate Finance & Restructuring (1) Forensic and Litigation Consulting (1) Economic Consulting Technology Strategic Communications Unallocated Corporate Total
Net income             $109,942 
Interest income and other              1,926 
Interest expense              5,961 
Income tax provision              37,682 
Operating income $90,092 $44,173 $46,724 $28,322 $19,961 $(73,761) $155,511 
Depreciation and amortization  4,243  2,802  2,992  7,131  1,688  691   19,547 
Amortization of intangible assets  3,022  407      170     3,599 
Adjusted EBITDA $97,357 $47,382 $49,716 $35,453 $21,819 $(73,070) $178,657 
                        
(1) Effective July 1, 2023, prior period segment information for the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments has been recast in this press release to include the reclassification of the portion of the Company’s health solutions practice in the Forensic and Litigation Consulting segment to the Company’s business transformation & strategy practice within the Corporate Finance & Restructuring segment.
 


FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
 
 

Segment
Revenues
 Adjusted
EBITDA
 Adjusted EBITDA
Margin
 Utilization   Average
Billable
Rate
 Revenue-
Generating
Headcount
 
  (in thousands)        (at period end) 
Three Months Ended June 30, 2024 (Unaudited)            
Corporate Finance & Restructuring$347,971 $66,467  19.1% 60% $496 2,167 
Forensic and Litigation Consulting 169,496  14,994  8.8% 58% $390 1,457 
Economic Consulting 230,873  44,296  19.2% 70% $599 1,076 
Technology (1) 115,875  20,930  18.1% N/M N/M 662 
Strategic Communications (1) 84,941  11,611  13.7% N/M N/M 972 
 $949,156 $158,298  16.7%     6,334 
Unallocated Corporate   (42,377)         
Adjusted EBITDA  $115,921  12.2%       
             
Six Months Ended June 30, 2024
(Unaudited)
            
Corporate Finance & Restructuring$713,981 $141,692  19.8% 61% $505 2,167 
Forensic and Litigation Consulting 345,570  48,703  14.1% 58% $398 1,457 
Economic Consulting 435,421  58,446  13.4% 69% $566 1,076 
Technology (1) 216,588  35,511  16.4% N/M N/M 662 
Strategic Communications (1) 166,149  24,037  14.5% N/M N/M 972 
 $1,877,709 $308,389  16.4%     6,334 
Unallocated Corporate   (81,395)         
Adjusted EBITDA  $226,994  12.1%       
             
Three Months Ended June 30, 2023 (Unaudited)            
Corporate Finance & Restructuring (2)$317,912 $45,510  14.3% 58% $482 2,170 
Forensic and Litigation Consulting (2) 164,760  25,598  15.5% 58% $388 1,441 
Economic Consulting 201,822  35,523  17.6% 69% $557 1,039 
Technology (1) 97,444  20,087  20.6% N/M N/M 589 
Strategic Communications (1) 82,653  12,263  14.8% N/M N/M 992 
 $864,591 $138,981  16.1%     6,231 
Unallocated Corporate   (38,751)         
Adjusted EBITDA  $100,230  11.6%       
             
Six Months Ended June 30, 2023
(Unaudited)
            
Corporate Finance & Restructuring (2)$633,564 $97,357  15.4% 59% $480 2,170 
Forensic and Litigation Consulting (2) 322,499  47,382  14.7% 58% $382 1,441 
Economic Consulting 371,417  49,716  13.4% 68% $520 1,039 
Technology (1) 188,062  35,453  18.9% N/M N/M 589 
Strategic Communications (1) 155,755  21,819  14.0% N/M N/M 992 
 $1,671,297 $251,727  15.1%     6,231 
Unallocated Corporate   (73,070)         
Adjusted EBITDA  $178,657  10.7%       
                   
N/M Not meaningful
(1) The majority of the Technology and Strategic Communications segments' revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.
(2)  Effective July 1, 2023, prior period segment information for the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments has been recast in this press release to include the reclassification of a portion of the Company’s health solutions practice in the Forensic and Litigation Consulting segment to the Company’s business transformation & strategy practice within the Corporate Finance & Restructuring segment.
 


FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
 Six Months Ended
June 30,
  2024   2023 
 (Unaudited)
Operating activities   
Net income$163,912  $109,942 
Adjustments to reconcile net income to net cash used in operating activities:   
Depreciation and amortization 21,173   19,547 
Amortization of intangible assets 2,096   3,599 
Provision for expected credit losses 19,923   11,188 
Share-based compensation 18,101   13,903 
Deferred income taxes (6,840)  (6,571)
Acquisition-related contingent consideration (1,157)  3,543 
Amortization of debt issuance costs and other 387   1,296 
Changes in operating assets and liabilities, net of effects from acquisitions:   
Accounts receivable, billed and unbilled (115,106)  (245,999)
Notes receivable (45,197)  (22,539)
Prepaid expenses and other assets (12,630)  (6,718)
Accounts payable, accrued expenses and other (8,934)  (159)
Income taxes (29,727)  (13,122)
Accrued compensation (145,509)  (130,625)
Billings in excess of services provided (84)  (2,485)
Net cash used in operating activities (139,592)  (265,200)
Investing activities   
Purchases of property and equipment and other (14,700)  (29,027)
Maturity of short-term investment 25,246    
Net cash provided by (used in) investing activities 10,546   (29,027)
Financing activities   
Borrowings under revolving line of credit 520,000   245,000 
Repayments under revolving line of credit (460,000)  (220,000)
Purchase and retirement of common stock    (20,982)
Share-based compensation tax withholdings (14,320)  (11,922)
Proceeds on stock option exercises 10,614   1,167 
Deposits and other 2,023   (2,206)
Net cash provided by (used in) financing activities 58,317   (8,943)
Effect of exchange rate changes on cash and cash equivalents (6,065)  15,021 
Net decrease in cash and cash equivalents (76,794)  (288,149)
Cash and cash equivalents, beginning of period 303,222   491,688 
Cash and cash equivalents, end of period$226,428  $203,539 
 

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07/25/2024 11:30 -0400

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