Earnings per Share Match All-Time High; Guidance Confirmed
ANNAPOLIS, Md., April 26 /PRNewswire/ -- FTI Consulting, Inc. (Amex: FCN),
today reported record results for the quarter ended March 31, 2001. All
results are unaudited. Comparisons with last year refer to the comparable
period in the prior year, including pro forma financial results for the first
quarter of the prior year that contain the results of Policano & Manzo L.L.C.
(P&M), for January 2000, the month prior to its acquisition by FTI, and
exclude extraordinary items.
For the quarter, revenues increased 24 percent to $41.5 million, compared
with $33.5 million in the prior year. Net income was $3.8 million, an
increase of 73 percent over the $2.2 million income in the prior year.
Earnings per share exceeded analysts' consensus estimates by 10 percent and
matched the record $0.32 per share achieved in the prior year despite a
74 percent increase in the number of diluted share equivalents. As previously
reported, earnings per share for the first quarter of 2000 were unusually
high, primarily due to the extraordinary demand for the services of the
company's Financial Consulting Division and the temporary over-utilization of
employees to meet that demand in the short term. Since that time, FTI has
increased the work force in the division to address the continuing demand at
more realistic and sustainable utilization rates.
Earnings per share for the first quarter of 2001 were based on 12.0
million weighted average diluted shares outstanding compared with 6.9 million
weighted average diluted shares outstanding during the comparable quarter.
The increase was attributable primarily to the issuance of 4.03 million
additional shares of common stock in an underwritten public offering in
October 2000. A greater number of common stock equivalents caused by a
significant increase in the average price of FTI stock during the quarter also
reduced earnings by $0.01 per share.
Earnings before interest, taxes and depreciation and amortization (EBITDA)
were also an all-time high for the company, increasing by 18 percent to
$10.3 million for the first quarter of 2001, compared with $8.7 million in the
first quarter of 2000. Cash flow provided by operations for the quarter was
$2.1 million, a $3.3 million improvement compared with a $1.2 million use in
operations in the comparable quarter of the prior year. Cash generated was
used to pay down debt, and to date since the beginning of the year, the
company has reduced debt from $60.5 million to $56.4 million.
Commenting on these results, FTI Chairman and Chief Executive Officer Jack
Dunn said, "Needless to say, we are thrilled by the record results achieved in
the quarter and the continuing strong demand for our financial consulting
services. These results are outstanding given that we were able to equal last
year's record performance and beat analysts' expectations with the equivalent
of 74 percent more shares outstanding. We are also especially gratified that
these results are translating into increased shareholder value."
With regard to the company's three operating segments, two also achieved
record financial milestones during the quarter. Financial Consulting's
revenues for the quarter were a record $24.2 million compared with
$15.0 million last year, an increase of 61 percent. Segment profit was also a
record at $9.7 million compared with $6.7 million last year, an increase of 45
percent. For Applied Sciences, revenues were a record $10.2 million compared
with $10.0 million last year, while segment profit was $1.7 million compared
with $2.0 million last year. This decline was due primarily to differences in
sales mix from the unusually profitable first quarter of the prior year. For
Litigation Consulting, revenues were $7.1 million compared with $8.5 million
in the prior year, and segment profit was $1.0 million compared with
$2.2 million in the prior year. As stated previously, management continues to
monitor this business closely. Improving results toward the end of the
quarter provided some encouragement that the steps taken by division
management to contain costs while developing the New York market may be
beginning to produce results.
In reviewing the quarter, FTI President Stewart Kahn said, "These results
are truly gratifying because they were a team effort by all of our dedicated
employees. While Financial Consulting under the direction of Barry Monheit,
Bob Manzo and Mike Policano capitalized on its position as a number one
provider in a dynamic market place, Applied Sciences under the leadership of
Glenn Baker not only produced record revenues, it combined this steady,
dependable financial performance with additional services that help cement its
reputation as the leader in its field. At the same time, Litigation
Consulting under Pat Brady and Dan Winter took significant steps that we are
confident will result in improved financial performance. I am proud of the
contributions of all of our fine professionals."
Outlook for 2001 Confirmed
The company believes that its stated goal of generating 15 percent or
greater growth in revenues and earnings per share for the full year 2001 is
achievable, even with the effect of the significantly increased number of
shares outstanding.
First-Quarter Conference Call
FTI will hold a conference call to discuss first-quarter results and
management's outlook for the remainder of 2001 at 11:00 a.m. EDT today. 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 that 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.
For further information regarding FTI Consulting, Inc. free of charge via
fax, dial 1-800-PRO-INFO and enter "FCN"
FTI is on the Internet at http://www.fticonsulting.com and at http://www.ftiwarroom.net
FTI CONSULTING, INC.
CONDENSED STATEMENTS OF INCOME
AND PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE FIRST QUARTERS ENDED MARCH 31, 2001 AND 2000
(in thousands of dollars, except share and per-share data)
Quarter Ended
Actual Pro Forma Actual
3/31/2001 3/31/2000 3/31/2000
(unaudited)
Revenues $41,475 $33,451 $31,013
Direct cost of revenues 21,806 16,282 15,375
Selling, general and administrative
expenses 10,308 9,063 8,914
Amortization of goodwill 1,250 1,233 1,016
Total costs and expenses 33,364 26,578 25,305
Income from operations 8,111 6,873 5,708
Interest expense, net 1,443 2,932 2,352
Income before extraordinary items and
taxes 6,668 3,941 3,356
Income taxes 2,834 1,734 1,476
Income before extraordinary items 3,834 2,207 1,880
Extraordinary item:
Loss on early extinguishment of
debt, net of taxes - 869 869
Net income $3,834 $1,338 $1,011
Income before extraordinary item,
per common share, basic $0.36 $0.35 $0.32
Net income per common share, basic $0.36 $0.21 $0.17
Weighted average shares for basic 10,622 6,385 5,854
Income before extraordinary item,
per common share, diluted $0.32 $0.32 $0.29
Net income per common share, diluted $0.32 $0.19 $0.16
Weighted average shares for diluted 12,034 6,931 6,400
EBITDA $10,277 $8,742 $7,357
(a) Pro forma gives effect to the acquisition of P&M as of
January 1, 2000
FTI CONSULTING, INC.
REVENUES AND EBITDA BY DIVISION
FOR THE THREE MONTHS ENDED MARCH 31, 2001
AND 2000 AND PRO FORMA THREE MONTHS
ENDED MARCH 31, 2000
(in thousands of dollars)
Quarter Ended
Actual Pro Forma Actual
3/31/2001 3/31/2000 3/31/2000
(unaudited)
Revenues
Financial Consulting $24,213 $14,957 $12,519
Litigation Consulting 7,052 8,510 8,510
Applied Sciences 10,210 9,984 9,984
Total Revenues $41,475 $33,451 $31,013
EBITDA, before corporate charges
Financial Consulting $9,691 $6,724 $5,339
Litigation Consulting 958 2,155 2,155
Applied Sciences 1,742 1,958 1,958
Total EBITDA, before corporate charges $12,391 $10,837 $9,452
(a) Pro forma gives effect to the acquisition of P&M as of
January 1, 2000.
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2000 AND MARCH 31, 2001
(in thousands of dollars, except share data)
December 31 March 31,
2000 2001
audited unaudited
Assets
Current assets
Cash and cash equivalents $3,235 $2,528
Accounts receivable, less allowances 20,380 19,118
Unbilled receivable, less allowances 11,952 15,604
Other current assets 4,270 3,093
Total current assets 39,837 40,343
Property and equipment, net 13,155 13,053
Goodwill 91,971 91,326
Other assets 1,168 911
Total Assets $146,131 $145,633
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $14,841 $10,673
Income taxes payable 500 1,877
Current portion of long-term debt 4,333 4,333
Total current liabilities 19,674 16,883
Long-term debt, less current portion 56,167 54,083
Deferred income taxes and other liabilities 1,666 2,411
Stockholders' equity
Preferred stock, $.01 par value;
4,000,000 shares authorized, none
outstanding - -
Common stock, $.01 par value;
16,000,000 shares authorized, 10,567,477 and
10,625,814 shares issued and outstanding
in 2000, and March 31, 2001, respectively 106 106
Additional paid-in capital 53,951 54,457
Retained earnings 14,567 18,400
Accumulated other comprehensive income (707)
Total stockholders' equity 68,624 72,256
Total Liabilities and Stockholders'
Equity $146,131 $145,633
SOURCE FTI Consulting, Inc.
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Related links:
http://www.fticonsulting.com
CONTACT:
Jack Dunn, Chairman & CEO of FTI Consulting,
410-224-1483, or General Inquiries, Marilyn Windsor,
312-640-6692, Analyst Inquiries, Doug Broderick, 312-640-6780, or
Media Inquiries, Tim Grace, 312-274-2240, all of The Financial
Relations Board BSMG Worldwide
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