FTI Continuing Discussions for Sale of Applied Sciences Division
ANNAPOLIS, Md., Sept. 3 /PRNewswire-FirstCall/ -- FTI Consulting, Inc.
(NYSE: FCN), the premier national provider of turnaround, bankruptcy and
litigation-related consulting services, today announced that it has completed
the acquisition of the U.S. Business Recovery Services Division (BRS) of
PricewaterhouseCoopers.
BRS is the leading provider of bankruptcy, turnaround and business
restructuring services to corporations in the United States. Headquartered in
New York, BRS has more than 350 people housed in 15 offices across the U.S.
with significant practices in New York, Dallas, Los Angeles, Chicago and
Atlanta. For its fiscal year ended June 30, 2002, BRS had revenues of
approximately $170.0 million on a stand-alone basis and pro forma income from
operations of approximately $50.0 million, net of estimates for integration
costs and the amortization of identifiable intangible assets other than
goodwill resulting from a preliminary allocation of the purchase price.
The purchase price plus other acquisition costs included approximately
$143.0 million of cash and 3.0 million shares of FTI common stock. The cash
portion of the purchase price was financed by FTI from its existing cash, a
new senior bank term loan of $74.0 million, and $45.0 million from a new
$100.0 million revolving credit line.
FTI is also continuing discussions for the sale of its Applied Sciences
Division with a group led by the division's president. Proceeds from any sale
would be used to reduce the debt incurred in connection with the acquisition
of BRS, and results of the Applied Sciences Division will be reflected as a
discontinued operation beginning with the third quarter of 2002. As
previously disclosed, the net effect of the acquisition of BRS and the planned
sale of Applied Sciences is expected to be significantly accretive to FTI's
earnings per share from continuing operations and to earnings per share.
FTI said that the integration of the BRS operations with its existing
bankruptcy, turnaround and restructuring practice was already well underway.
The combined operations will conduct business under the FTI Consulting name.
Jack Dunn, FTI's chairman and chief executive officer, stated, "Completing
this acquisition and joining Dom DiNapoli and his group with the FTI team
headed by Bob Manzo and Mike Policano is the beginning of the next exciting
chapter in the FTI story. We see considerable future organic and other growth
opportunities for the company and have significantly expanded our resources
and ability to realize them."
Stewart Kahn, president and chief operating officer of FTI, commented,
"The acquisition of BRS has dramatically enhanced our ability to provide our
full range of services to even more clients and thereby maximize our
opportunities for growth. We also look forward to a meaningful reciprocal
client-referral relationship with Applied Sciences as it begins the process of
separating from us."
About FTI Consulting
FTI Consulting is a multi-disciplined consulting firm with leading
practices in the areas of bankruptcy, financial restructuring and litigation
consulting. 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 .
SOURCE FTI Consulting, Inc.
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CONTACT:
Jack Dunn, Chairman & CEO of FTI Consulting,
+1-410-224-1483; or Marilyn Windsor, General Inquiries,
+1-702-515-1260, or Lisa Fortuna, Analyst Inquiries,
+1-312-640-6779, or Tim Grace, Media Inquiries, +1-312-640-6667,
all of FRB Weber Shandwick for FTI Consulting, Inc.
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