Achieves New Highs in Revenue, EBITDA, Net Income, EPS;
Posts Records for 12th Consecutive Quarter
ANNAPOLIS, Md., April 24 /PRNewswire-FirstCall/ -- FTI Consulting, Inc.
(NYSE: FCN), the premier national provider of turnaround, bankruptcy and
litigation-related consulting services, today reported record results for the
first quarter ended March 31, 2002. Continued strong performance by the
Financial Consulting and Applied Sciences Divisions led the company to its
twelfth straight quarter of record results.
For the quarter, revenues increased 22.2 percent to $50.7 million from
$41.5 million in the first quarter of last year. Income from operations grew
45.7 percent to $11.8 million from $8.1 million in the comparable quarter last
year. Net income was 73.7 percent higher than last year, growing to
$6.6 million from $3.8 million, and earnings per share grew 47.6 percent to
$0.31 on a fully diluted basis compared with $0.21 last year; the earnings per
share increase would have been 24.0 percent if FAS 142, Goodwill and Other
Intangible Assets, had been in effect in the first quarter of 2001. Earnings
before interest, taxes, depreciation and amortization (EBITDA) grew
25.2 percent to $12.9 million from $10.3 million in the 2001 period.
Records for Financial Consulting, Applied Sciences
Financial Consulting achieved record results during the period as revenues
grew 29.8 percent to $31.4 million from $24.2 million in the first quarter of
last year and EBITDA increased 28.9 percent to $12.5 million compared with
$9.7 million in the prior-year period. These results included the start up of
several new practice areas, including electronic evidence discovery, electric
utility regulatory consulting, intellectual property consulting and crisis
management.
Applied Sciences posted record revenue for the quarter, as revenues
increased 25.5 percent to $12.8 million from $10.2 million in the first
quarter of last year. Some of that growth came from restoration assignments
surrounding the site of the World Trade Center. These assignments were
substantially completed by the end of the quarter. EBITDA for the division
grew 52.9 percent, to $2.6 million from $1.7 million in the prior-year period.
Litigation Consulting revenues declined 8.5 percent to $6.5 million from
$7.1 million in last year's comparable quarter, but increased nearly 30
percent on a sequential basis from the fourth quarter of 2001. EBITDA
declined 10.7 percent to $856,000 from $958,000 on a comparable basis, but
improved more than 90 percent from the fourth quarter of 2001. This is the
first quarter since the 2001 second quarter that results improved
sequentially, reflecting the impact of steps taken to improve the
profitability of the business. The level of major trial activity that was
characteristic of the first quarter of 2001 and prior years still has not yet
resumed, however.
Commenting on the company's record performance, Jack Dunn, FTI's chairman
and chief executive officer, stated, "Typically, the first quarter sets the
tone for our outlook on the entire year. It is when we do the bulk of our
hiring and when our markets tell us in what areas our clients will need
assistance over the next 12 months. Comparatively, sequentially, by division
or for the company as a whole, we believe that this first quarter has set the
stage for a very promising year. With 50 new employees, four new practice
area initiatives in Financial Consulting that are gaining traction each day,
and healthy markets for each of our lines of business, we are very encouraged
at the prospects for meeting or exceeding our goals for 2002."
Stewart Kahn, president and chief operating officer of FTI, commented, "We
are continuing to see strong demand for our Financial Consulting services,
growth in Applied Sciences and an upturn in Litigation Consulting, and we
thank all of our people, who we believe are the best in the industry, for
their contributions to deliver these results and generate momentum for the
remainder of the year. We are already seeing the benefits from the new
practice areas added just this year and expect them to contribute to our 2002
performance."
Second-Quarter, Full-Year Outlook
The company firmly believes that its stated goals of generating 15 percent
to 20 percent or greater growth in revenues and 20 percent or greater growth
in earnings per share for the full year 2002 are achievable, and that the
general level of business activity experienced in the first quarter of 2002
appears to be continuing into the second quarter. Additionally, the company
is aggressively reviewing and pursuing external growth opportunities.
First-Quarter Conference Call
FTI will hold a conference call to discuss first-quarter results and
management's outlook for the rest of 2002 at 11:00 a.m. EDT on Thursday, April
25, 2002. The call can be accessed live and will be available for replay over
the Internet via http://www.vcall.com.
About FTI Consulting
FTI Consulting is a multi-disciplined consulting firm with leading
practices in the areas of bankruptcy and financial restructuring, litigation
consulting and engineering/scientific investigation. Modern corporations, as
well as those who advise and invest in them, face growing challenges on every
front. From a proliferation of "bet-the-company" litigation to increasingly
complicated relationships with lenders and investors in an ever-changing
global economy, U.S. companies are turning more and more to outside experts
and consultants to meet these complex issues. FTI is dedicated to helping
corporations, their advisors, lawyers, lenders and investors meet these
challenges by providing a broad array of the highest quality professional
practices from a single source.
This press release includes "forward-looking" statements that involve
uncertainties and risks. There can be no assurance that actual results will
not differ from the company's expectations. The company has experienced
fluctuating revenues, operating income and cash flow in some prior periods and
expects this may occur from time to time in the future. As a result of these
possible fluctuations, the company's actual results may differ from our
projections. Other factors that could cause such differences include pace and
timing of additional acquisitions, the company's ability to realize cost
savings and efficiencies, competitive and general economic conditions, and
other risks described in the company's filings with the Securities and
Exchange Commission.
FTI is on the Internet at http://www.fticonsulting.com
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(in thousands of dollars, except share and per-share data)
Three Months Ended
Actual Actual
03/31/2002 03/31/2001
(unaudited)
Revenues $50,680 $41,475
Direct cost of revenues 25,458 21,806
Selling, general and administrative
expenses 13,386 10,309
Amortization of goodwill - 1,250
Total costs and expenses 38,844 33,365
Income from operations 11,836 8,110
Interest expense, net 738 1,443
Income before taxes 11,098 6,667
Income taxes 4,494 2,834
Net income $6,604 $3,833
Earnings per common share, basic $0.33 $0.24
Weighted average shares for basic(A) 19,783 15,933
Earnings per common share, diluted $0.31 $0.21
Weighted average shares for
diluted(A) 21,353 18,051
EBITDA $12,922 $10,277
(A) Weighted average shares have been adjusted to reflect the
three-for-two stock split effected as a stock dividend paid to
shareholders of record on
January 2, 2002.
FTI CONSULTING, INC.
REVENUES AND EBITDA BY DIVISION
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(in thousands of dollars)
Three Months Ended
Actual Actual
03/31/2002 03/31/2001
(unaudited)
Revenues
Financial Consulting $31,380 $24,213
Applied Sciences 12,773 10,210
Litigation Consulting 6,527 7,052
Total Revenues $50,680 $41,475
EBITDA, before corporate charges
Financial Consulting $12,462 $9,691
Applied Sciences 2,588 1,742
Litigation Consulting 856 958
Total EBITDA, before corporate
charges $15,906 $12,391
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2001 AND MARCH 31, 2002
(in thousands of dollars, except share data)
December 31, March 31,
2001 2002
(audited) (unaudited)
Assets
Current assets
Cash and cash equivalents $12,856 $7,233
Accounts receivable, less allowances 20,435 23,631
Unbilled receivable, less allowances 12,154 17,157
Other current assets 5,476 5,253
Total current assets 50,921 53,274
Property and equipment, net 12,253 12,981
Goodwill, net 90,156 93,971
Other assets 1,023 1,013
Total Assets $154,353 $161,239
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and other accrued
expenses $17,692 $14,324
Deferred income taxes 130 130
Current portion of long-term debt 4,333 4,333
Total current liabilities 22,155 18,787
Long-term debt, less current portion 23,833 22,750
Deferred income taxes and other liabilities 3,229 3,138
Stockholders' equity
Preferred stock, $.01 par value;
5,000,000 shares authorized, none
outstanding - -
Common stock, $.01 par value;
45,000,000 shares authorized,
19,590,938 and 19,981,797 shares issued
and outstanding in 2001 and 2002,
respectively 196 200
Additional paid-in capital 75,416 79,968
Unearned Compensation (568) (520)
Retained earnings 31,036 37,640
Accumulated other comprehensive
income (loss) (944) (724)
Total stockholders' equity 105,136 116,564
Total Liabilities and Stockholders'
Equity $154,353 $161,239
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(in thousands of dollars)
March 31, March 31,
2002 2001
(unaudited) (unaudited)
Operating activities
Net income $6,604 $3,833
Adjustment to reconcile net income to
net cash (used in) provided by
operating activities:
Depreciation and other amortization 1,086 916
Amortization of goodwill - 1,250
Other 837 278
Changes in operating assets and liabilities:
Accounts receivable, billed and unbilled (8,885) (2,516)
Income taxes, current and deferred 2,434 2,694
Accrued compensation expense (4,335) (2,358)
Other current assets and liabilities (1,267) (2,002)
Net cash (used in) provided by
operating activities (3,526) 2,095
Investing activities
Purchase of property and equipment (1,752) (815)
Acquisition of subsidiaries and
contingent payments (3,815) (606)
Change in other assets - 202
Net cash used in investing activities (5,567) (1,219)
Financing activities
Issuance of common shares and
exercise of stock options 4,603 506
Repayments on long-term debt (1,083) (2,084)
Payment of financing fees (50) (5)
Net cash provided by (used in)
financing activities 3,470 (1,583)
Net decrease in cash and cash
equivalents (5,623) (707)
Cash and cash equivalents at
beginning of period 12,856 3,235
Cash and cash equivalents at end of
period $7,233 $2,528
SOURCE FTI Consulting, Inc.
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Related links:
http://www.fticonsulting.com
CONTACT:
Jack Dunn, Chairman & CEO of FTI Consulting,
+1-410-224-1483; or General Inquiries, Marilyn Windsor,
+1-702-515-1260, Analyst Inquiries, Lisa Fortuna,
+1-312-640-6779, or Media Inquiries, Tim Grace, +1-312-640-6667,
all of FRB Weber Shandwick
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