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]

FTI Consulting, Inc. (NYSE:FCN) Q4 2024 Results Conference Call February 20, 2025 9:00 AM ET Company Participants Mollie Hawkes - Head of Investor Relations Steve Gunby - President and Chief Executive Officer Ajay Sabherwal - Chief Financial Officer Conference Call Participants Andrew Nicholas - William Blair Tobey Sommer - Truist James Yaro - Goldman Sachs Operator Welcome to the FTI Consulting Fourth Quarter and Full Year 2024 Earnings Conference Call. All participants will be in a listen-only mode. Shoul ...

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]

Analysts on Wall Street project that FTI Consulting (FCN) will announce quarterly earnings of $1.67 per share in its forthcoming report, representing a decline of 26.8% year over year. Revenues are projected to reach $909.6 million, declining 1.6% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earnings ...