FTI sulting(FCN)2025-04-28 20:30Financial Performance - First quarter 2025 revenues were $898.3 million, a decrease of $30.3 million or 3.3% compared to $928.6 million in the prior year quarter[3]. - Net income for the first quarter 2025 was $61.8 million, down from $80.0 million in the prior year quarter, primarily due to lower revenues and a $25.3 million special charge[3]. - Adjusted EBITDA for the first quarter 2025 was $115.2 million, representing 12.8% of revenues, compared to $111.1 million or 12.0% of revenues in the prior year quarter[3]. - First quarter 2025 earnings per diluted share (EPS) were $1.74, down from $2.23 in the prior year quarter, with adjusted EPS of $2.29 compared to $2.23 in the prior year quarter[4]. - Operating income for Q1 2025 was $78,707 thousand, down 21.0% from $99,633 thousand in Q1 2024[31]. - Net income for Q1 2025 was $61,824 thousand, a decline of 22.7% compared to $79,965 thousand in Q1 2024[31]. - Adjusted net income for Q1 2025 was $81,320 thousand, remaining stable compared to $79,965 thousand in Q1 2024[32]. - Net income for Q1 2025 decreased to $61,824 from $79,965 in Q1 2024, representing a decline of approximately 22.7%[38]. Segment Performance - The Corporate Finance & Restructuring segment saw revenues decrease by $22.4 million or 6.1% to $343.6 million, with adjusted segment EBITDA of $55.9 million, or 16.3% of segment revenues[10]. - The Forensic and Litigation Consulting segment reported an 8.3% increase in revenues to $190.6 million, with adjusted segment EBITDA of $37.5 million, or 19.7% of segment revenues[11]. - The Economic Consulting segment experienced a revenue decline of $24.7 million or 12.1% to $179.9 million, with adjusted segment EBITDA of $14.4 million, or 8.0% of segment revenues[13]. - The Corporate Finance & Restructuring segment generated revenues of $343,645 thousand with an adjusted EBITDA margin of 16.3% in Q1 2025[35]. - The Forensic and Litigation Consulting segment reported revenues of $190,602 thousand with an adjusted EBITDA margin of 19.7% in Q1 2025[35]. Share Repurchase and Capital Management - The company repurchased 1,126,995 shares at an average price of $165.15 for a total cost of $186.1 million, with approximately $264.3 million remaining for future repurchases[7]. - The company announced a $400.0 million increase in share repurchase authorization, bringing the total authorization to $1.7 billion since the program's inception[9]. - The company repurchased common stock totaling $182,641 during the quarter, reflecting a new strategy in capital management[38]. Special Charges and Workforce Changes - A special charge of $25.3 million was recorded in the first quarter 2025, reflecting the termination of approximately 5% of the workforce, expected to yield annualized cost savings of about $85 million[16]. - The company incurred special charges of $25,295 thousand in Q1 2025, impacting net income and adjusted EPS[32]. Cash Flow and Balance Sheet - Net cash used in operating activities increased significantly to $(465,210) compared to $(274,818) in the prior year, indicating a rise of 69.1%[38]. - Cash and cash equivalents at the end of the period dropped to $151,121 from $243,960, a decrease of 38.1%[38]. - Total assets decreased to $3,347,702 thousand as of March 31, 2025, from $3,596,830 thousand as of December 31, 2024[29]. - Total liabilities decreased to $1,198,064 thousand as of March 31, 2025, from $1,338,540 thousand as of December 31, 2024[29]. - Total borrowings under the revolving line of credit amounted to $235,000, down from $280,000 in the previous year[38]. Other Financial Metrics - Depreciation of property and equipment was $10,145, slightly down from $10,424, showing a minor reduction of 2.7%[38]. - The provision for expected credit losses decreased to $7,214 from $11,420, a reduction of 36.5%[38]. - Accounts receivable, billed and unbilled, showed a negative change of $(74,890), compared to $(73,201) in the previous year[38]. - The effect of exchange rate changes on cash and cash equivalents resulted in a positive impact of $5,942, contrasting with a negative impact of $(3,635) last year[38]. - Net cash provided by (used in) investing activities was $(17,803), a significant decline from $20,606 in the prior year[38].