FTI sulting(US:FCN)2025-02-20 21:28Financial 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]