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

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

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

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

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

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

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

Core Insights - FTI Consulting has appointed Mark Shinderman as a Senior Managing Director in the Corporate Finance & Restructuring segment, bringing over 35 years of restructuring experience [1][2]. Company Overview - FTI Consulting, Inc. is a global expert firm specializing in crisis and transformation, with over 8,300 employees across 34 countries and territories. The company reported revenues of $3.49 billion for the fiscal year 2023 [6]. Appointment Details - Mark Shinderman will focus on assisting clients with restructurings, insolvency situations, and bankruptcy litigation across various industries [3][4]. - His previous experience includes being a Partner at Milbank LLP and Munger, Tolles & Olson LLP, where he worked with companies in sectors such as apparel, biopharma, consumer products, e-commerce, energy, finance, healthcare, hospitality, media, real estate, retail, technology, and transportation [4]. Expert Commentary - Michael Eisenband, Global Segment Leader of Corporate Finance & Restructuring at FTI Consulting, highlighted Shinderman's expertise in navigating complex bankruptcy situations and his ability to identify commercially viable solutions for clients [4]. - Shinderman expressed enthusiasm about joining FTI Consulting, emphasizing the importance of addressing current business challenges, including tariffs, supply chain disruptions, geopolitical uncertainty, rising interest rates, taxes, and energy costs [5].

Core Insights - FTI Consulting has appointed Emily Golenberg and Mitali Sharma as Senior Managing Directors in the Transactions practice, enhancing its Corporate Finance & Restructuring segment [1][2] Group 1: Appointments and Expertise - Emily Golenberg and Mitali Sharma bring extensive experience in M&A advisory, complex transactions, growth strategy, turnaround services, and performance improvement [2] - Golenberg has over 15 years of M&A lifecycle experience, focusing on value preservation and business transformation across various industries including healthcare and technology [3][4] - Sharma has more than 20 years of experience in growth strategy and business transformation, serving industries such as advanced manufacturing and consumer health [5][6] Group 2: Strategic Importance - The appointments aim to bolster the Merger Integration & Carve-Outs offering, helping clients maximize deal value while minimizing disruption [2][7] - FTI Consulting emphasizes the need for businesses to understand market dynamics to succeed in transactions, especially in the face of regulatory pressures and cross-border complexities [3][7] Group 3: Company Overview - FTI Consulting is a leading global expert firm with over 8,300 employees across 34 countries, generating $3.49 billion in revenues in fiscal year 2023 [8]

Core Insights - FTI Consulting has appointed Emily Golenberg and Mitali Sharma as Senior Managing Directors in the Transactions practice within the Corporate Finance & Restructuring segment [1][2] Company Overview - FTI Consulting is a leading global expert firm specializing in crisis and transformation, with over 8,300 employees across 34 countries and territories [8] - The company generated $3.49 billion in revenues during the fiscal year 2023 [8] Appointees' Expertise - Emily Golenberg has over 15 years of M&A life cycle experience, focusing on value preservation, creation, and business transformation across various industries including healthcare, life sciences, and technology [3][4] - Mitali Sharma brings more than two decades of experience in growth strategy and business transformation, serving industries such as advanced manufacturing, high-tech, and consumer health [5][6] Strategic Importance - The appointments of Golenberg and Sharma enhance the Merger Integration & Carve-Outs offering, aimed at helping clients maximize deal value while minimizing disruption [2][7] - The firm emphasizes the need for businesses to adapt to unprecedented disruptions, including emerging technologies and geopolitical challenges, to better position themselves in the market [7]