Industry
FTI Consulting, Inc. Announces Record Quarterly Revenues of $133.2 Million
Auteur : prnewswire.com
Du : 01/11/2005
FTI Consulting, Inc.
(NYSE: FCN), a premier provider of problem-solving consulting and technology
services to major corporations, financial institutions and law firms, today
reported its results for the third quarter of 2005. FTI has also filed t
Third-Quarter 2005 Results
For the quarter, revenues were a quarterly record of $133.2 million, an
increase of 27.6 percent from $104.4 million for the third quarter of 2004.
Income from operations before one-time charges rose 27.2 percent to $26.2
million from $20.6 million in the comparable quarter last year. Earnings per
share increased 19.2 percent to $0.31 on a diluted basis before one-time
charges compared with $0.26 last year.
Commenting on the quarter, Jack Dunn, FTI's President and Chief Executive
Officer said: "We are pleased to report that our third quarter this year
produced all-time record quarterly revenues and strong growth in earnings
before one time charges. Traditionally our slowest quarter, this year we saw
strong performance in our forensic accounting and financial investigations
practice related, among other things, to insurance and hedge fund
investigations, as well as increased economic consulting in the telecom and
energy areas related to merger and acquisition activity on the one hand and
litigation and strategy on the other.
"In anticipation of these efforts continuing, during the quarter we
invested almost $1.0 million in compensation and recruiting fees to grow our
headcount at the short-term expense of earnings per share. During the quarter
we added 78 revenue producing professionals, including 11 Senior Managing
Directors, and affiliated with three new high-profile PhD economists. We would
expect the return from these people to increase over the next several
quarters.
"Looking forward we expect forensic accounting and financial
investigations activity to remain strong, telecom activity to shift into a
strategic and litigation phase as companies adjust to new realities in the
post mega-merger environment, and the energy business to continue to be
vibrant as large energy sensitive companies such as producers, utilities and
consumers face the challenges of a higher price environment. In addition, our
forensic/litigation/technology segment should see impact from Hurricane
Katrina related work and our announced roles in such high profile
restructuring matters as Asarco and Northwest Airlines, as well as continuing
work in Delphi should have a positive impact on results for the corporate
finance/restructuring practice in the fourth quarter."
As previously reported, earnings for the third quarter of 2005 were
impacted by several one-time charges totaling approximately $0.04 per share.
These charges included a non-cash charge of approximately $1.7 million, or
approximately $0.03 per diluted share, for the write-off of deferred financing
costs associated with the early extinguishment of the company's $142.5 million
term loan in connections with its $350.0 million debt offering in August 2005,
and approximately $900,000, or approximately $0.01 per diluted share in
connection with its sub-lease for 30 months of a portion of its New York City
facility.
Earnings from operations before interest, taxes, depreciation and
amortization before one-time charges (Adjusted EBITDA, see note below)
increased 28.9 percent to $31.2 million, 23.4 percent of revenues, compared
with EBITDA of $24.2 million, or 23.2 percent of revenues, in the third
quarter of the prior year.
Cash flow provided by operations for the third quarter of 2005 was
$27.5 million compared with $29.7 million provided in the third quarter of
2004, a decrease of 7.4 percent. Total long-term debt at September 30, 2005
was $350.0 million. No amounts were outstanding under the company's revolving
credit agreement. The company repurchased 5.2 million shares of common stock
during the third quarter in connection with its $350.0 million debt offerings.
At September 30, 2005, the remaining amount authorized under the company's
current share repurchase program was approximately $40 million.
Total headcount at September 30, 2005 was 1,291, and revenue-generating
headcount was 966. Utilization of revenue-generating personnel measurable by
billable hours was approximately 76 percent for the third quarter, and average
rate per hour for the quarter was approximately $331. Utilization was
relatively strong in the third quarter at all staff levels, the mix of which
contributed to the modest decline in the average rate per hour.
Third-Quarter 2005 Business Segment Results
Forensic/Litigation/Technology
Revenues increased 25.5 percent to $55.2 million in the third quarter from
$44.0 million last year. Approximately $19.6 million in revenues were
generated by the company's combined technology operations as compared to $11.3
million in the prior year. Segment EBITDA was $16.8 million, or 30.4 percent
of revenues, an increase of 43.6 percent from $11.7 million in the prior year,
or 26.6 percent of revenues.
Corporate Finance/Restructuring
Revenues were $49.6 million for the third quarter, a 22.8 percent increase
from $40.4 million recorded in the third quarter of 2004. Segment EBITDA was
$14.1 million, or 28.4 percent of revenues, an increase of 4.4 percent from
$13.5 million in the prior year, or 33.4 percent of revenues.
Economic Consulting
Revenues in the economic consulting segment were $28.4 million in the
third quarter of 2005, increasing 42.0 percent from $20.0 million last year.
Segment EBITDA was $7.2 million, or 25.4 percent of revenues, an increase of
111.8 percent from $3.4 million, or 16.8 percent of revenues, in the prior
year.
Nine-Month Results
For the nine months of 2005, revenues were $373.7 million, an increase of
16.0 percent compared with $322.1 million for the first nine months of 2004.
Income from operations before one-time charges rose 19.8 percent to $77.4
million from $64.6 million last year. Earnings per share before one-time
charges increased 15.7 percent to $0.93 on a diluted basis compared with $0.83
for the same period last year.
Earnings from operations before interest, taxes, depreciation and
amortization before one-time charges (Adjusted EBITDA, see note below)
increased 18.0 percent to $89.0 million, or 23.8 percent of revenues, compared
with EBITDA of $75.4 million, or 23.4 percent of revenues, in the first nine
months of the prior year. Cash flow provided by operations for the first nine
months of 2005 increased to $43.5 million, compared with $30.2 million in the
first nine months of 2004.
Forensic/Litigation/Technology revenues increased 17.2 percent to
$156.9 million in the first nine months of 2005 from $133.9 million in the
first nine months of 2004. Approximately $50.9 million in revenues were
generated by our combined technology operations as compared to $32.3 million
in the prior year. Segment EBITDA was $50.6 million, or 32.2 percent of
revenues, an increase of 30.7 percent from $38.7 million, or 28.9 percent of
revenues, in the prior year.
Corporate Finance/Restructuring revenues were $135.4 million for the first
nine months of 2005, an increase of 9.8 percent from $123.3 million recorded
in the first nine months of 2004. Segment EBITDA was $41.3 million, or 30.5
percent of revenues, an increase of 6.4 percent from $38.8 million, or 31.5
percent of revenues, in the prior year.
Economic Consulting revenues were $81.4 million in the first nine months
of 2005, increasing 25.2 percent from $65.0 million in the first nine months
of 2004. Segment EBITDA was $19.9 million, or 24.4 percent of revenues, an
increase of 41.1 percent from $14.1 million, or 21.7 percent of revenues, in
the prior year.
Outlook for Remainder of 2005
Based on results for the first nine months of the year, FTI's outlook for
the remainder of 2005 is as follows: revenues are anticipated to range from
$503.0 million to $512.0 million for the full year; earnings per diluted share
are expected to range from $1.28 to $1.35 before one-time charges; EBITDA is
expected to range from $121.0 million to $126.0 million and cash flow from
operations is expected to range between $75.0 million and $85.0 million. To
achieve the high-ends of these ranges will require the company to earn certain
success fees in the fourth quarter, the timing of which is often difficult to
predict.
The company believes its average bill rate per hour will range from
$337 to $340 and utilization will range from approximately 80 to 81 percent
(on a 2,032 hours base), respectively. The updated outlook by segment for
2005 reflects, among other things, some shift in segment results due to the
continued success of FTI's cross-selling and cross-utilization programs. While
such programs may impact individual segment results, they have no effect on
total enterprise revenues and profitability. A table reflecting the outlook
for each of FTI's three business segments is attached.
Third-Quarter Conference Call
FTI will hold a conference call to discuss third-quarter results and
management's outlook for the remainder of 2005 at 11:00 a.m. Eastern time on
Tuesday, November 1, 2005. The call can be accessed live and will be
available for replay over the Internet by logging onto the company's website,
http://www.fticonsulting.com, for 90 days.
(NYSE: FCN), a premier provider of problem-solving consulting and technology
services to major corporations, financial institutions and law firms, today
reported its results for the third quarter of 2005. FTI has also filed t
Third-Quarter 2005 Results
For the quarter, revenues were a quarterly record of $133.2 million, an
increase of 27.6 percent from $104.4 million for the third quarter of 2004.
Income from operations before one-time charges rose 27.2 percent to $26.2
million from $20.6 million in the comparable quarter last year. Earnings per
share increased 19.2 percent to $0.31 on a diluted basis before one-time
charges compared with $0.26 last year.
Commenting on the quarter, Jack Dunn, FTI's President and Chief Executive
Officer said: "We are pleased to report that our third quarter this year
produced all-time record quarterly revenues and strong growth in earnings
before one time charges. Traditionally our slowest quarter, this year we saw
strong performance in our forensic accounting and financial investigations
practice related, among other things, to insurance and hedge fund
investigations, as well as increased economic consulting in the telecom and
energy areas related to merger and acquisition activity on the one hand and
litigation and strategy on the other.
"In anticipation of these efforts continuing, during the quarter we
invested almost $1.0 million in compensation and recruiting fees to grow our
headcount at the short-term expense of earnings per share. During the quarter
we added 78 revenue producing professionals, including 11 Senior Managing
Directors, and affiliated with three new high-profile PhD economists. We would
expect the return from these people to increase over the next several
quarters.
"Looking forward we expect forensic accounting and financial
investigations activity to remain strong, telecom activity to shift into a
strategic and litigation phase as companies adjust to new realities in the
post mega-merger environment, and the energy business to continue to be
vibrant as large energy sensitive companies such as producers, utilities and
consumers face the challenges of a higher price environment. In addition, our
forensic/litigation/technology segment should see impact from Hurricane
Katrina related work and our announced roles in such high profile
restructuring matters as Asarco and Northwest Airlines, as well as continuing
work in Delphi should have a positive impact on results for the corporate
finance/restructuring practice in the fourth quarter."
As previously reported, earnings for the third quarter of 2005 were
impacted by several one-time charges totaling approximately $0.04 per share.
These charges included a non-cash charge of approximately $1.7 million, or
approximately $0.03 per diluted share, for the write-off of deferred financing
costs associated with the early extinguishment of the company's $142.5 million
term loan in connections with its $350.0 million debt offering in August 2005,
and approximately $900,000, or approximately $0.01 per diluted share in
connection with its sub-lease for 30 months of a portion of its New York City
facility.
Earnings from operations before interest, taxes, depreciation and
amortization before one-time charges (Adjusted EBITDA, see note below)
increased 28.9 percent to $31.2 million, 23.4 percent of revenues, compared
with EBITDA of $24.2 million, or 23.2 percent of revenues, in the third
quarter of the prior year.
Cash flow provided by operations for the third quarter of 2005 was
$27.5 million compared with $29.7 million provided in the third quarter of
2004, a decrease of 7.4 percent. Total long-term debt at September 30, 2005
was $350.0 million. No amounts were outstanding under the company's revolving
credit agreement. The company repurchased 5.2 million shares of common stock
during the third quarter in connection with its $350.0 million debt offerings.
At September 30, 2005, the remaining amount authorized under the company's
current share repurchase program was approximately $40 million.
Total headcount at September 30, 2005 was 1,291, and revenue-generating
headcount was 966. Utilization of revenue-generating personnel measurable by
billable hours was approximately 76 percent for the third quarter, and average
rate per hour for the quarter was approximately $331. Utilization was
relatively strong in the third quarter at all staff levels, the mix of which
contributed to the modest decline in the average rate per hour.
Third-Quarter 2005 Business Segment Results
Forensic/Litigation/Technology
Revenues increased 25.5 percent to $55.2 million in the third quarter from
$44.0 million last year. Approximately $19.6 million in revenues were
generated by the company's combined technology operations as compared to $11.3
million in the prior year. Segment EBITDA was $16.8 million, or 30.4 percent
of revenues, an increase of 43.6 percent from $11.7 million in the prior year,
or 26.6 percent of revenues.
Corporate Finance/Restructuring
Revenues were $49.6 million for the third quarter, a 22.8 percent increase
from $40.4 million recorded in the third quarter of 2004. Segment EBITDA was
$14.1 million, or 28.4 percent of revenues, an increase of 4.4 percent from
$13.5 million in the prior year, or 33.4 percent of revenues.
Economic Consulting
Revenues in the economic consulting segment were $28.4 million in the
third quarter of 2005, increasing 42.0 percent from $20.0 million last year.
Segment EBITDA was $7.2 million, or 25.4 percent of revenues, an increase of
111.8 percent from $3.4 million, or 16.8 percent of revenues, in the prior
year.
Nine-Month Results
For the nine months of 2005, revenues were $373.7 million, an increase of
16.0 percent compared with $322.1 million for the first nine months of 2004.
Income from operations before one-time charges rose 19.8 percent to $77.4
million from $64.6 million last year. Earnings per share before one-time
charges increased 15.7 percent to $0.93 on a diluted basis compared with $0.83
for the same period last year.
Earnings from operations before interest, taxes, depreciation and
amortization before one-time charges (Adjusted EBITDA, see note below)
increased 18.0 percent to $89.0 million, or 23.8 percent of revenues, compared
with EBITDA of $75.4 million, or 23.4 percent of revenues, in the first nine
months of the prior year. Cash flow provided by operations for the first nine
months of 2005 increased to $43.5 million, compared with $30.2 million in the
first nine months of 2004.
Forensic/Litigation/Technology revenues increased 17.2 percent to
$156.9 million in the first nine months of 2005 from $133.9 million in the
first nine months of 2004. Approximately $50.9 million in revenues were
generated by our combined technology operations as compared to $32.3 million
in the prior year. Segment EBITDA was $50.6 million, or 32.2 percent of
revenues, an increase of 30.7 percent from $38.7 million, or 28.9 percent of
revenues, in the prior year.
Corporate Finance/Restructuring revenues were $135.4 million for the first
nine months of 2005, an increase of 9.8 percent from $123.3 million recorded
in the first nine months of 2004. Segment EBITDA was $41.3 million, or 30.5
percent of revenues, an increase of 6.4 percent from $38.8 million, or 31.5
percent of revenues, in the prior year.
Economic Consulting revenues were $81.4 million in the first nine months
of 2005, increasing 25.2 percent from $65.0 million in the first nine months
of 2004. Segment EBITDA was $19.9 million, or 24.4 percent of revenues, an
increase of 41.1 percent from $14.1 million, or 21.7 percent of revenues, in
the prior year.
Outlook for Remainder of 2005
Based on results for the first nine months of the year, FTI's outlook for
the remainder of 2005 is as follows: revenues are anticipated to range from
$503.0 million to $512.0 million for the full year; earnings per diluted share
are expected to range from $1.28 to $1.35 before one-time charges; EBITDA is
expected to range from $121.0 million to $126.0 million and cash flow from
operations is expected to range between $75.0 million and $85.0 million. To
achieve the high-ends of these ranges will require the company to earn certain
success fees in the fourth quarter, the timing of which is often difficult to
predict.
The company believes its average bill rate per hour will range from
$337 to $340 and utilization will range from approximately 80 to 81 percent
(on a 2,032 hours base), respectively. The updated outlook by segment for
2005 reflects, among other things, some shift in segment results due to the
continued success of FTI's cross-selling and cross-utilization programs. While
such programs may impact individual segment results, they have no effect on
total enterprise revenues and profitability. A table reflecting the outlook
for each of FTI's three business segments is attached.
Third-Quarter Conference Call
FTI will hold a conference call to discuss third-quarter results and
management's outlook for the remainder of 2005 at 11:00 a.m. Eastern time on
Tuesday, November 1, 2005. The call can be accessed live and will be
available for replay over the Internet by logging onto the company's website,
http://www.fticonsulting.com, for 90 days.