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FTI Consulting, Inc. Reports 2010 Second Quarter Results
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- Second Quarter Revenues of $349 Million
- EPS of $0.52; Adjusted EBITDA of $65.5 Million
- Results Consistent With Preliminary Results Announced in Early July
- Announces Agreement in Principle to Acquire Asian Financial Advisory Firm
WEST PALM BEACH, Fla., Aug 05, 2010 /PRNewswire via COMTEX/ --
FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today reported its financial results for the second quarter ended June 30, 2010.
For the quarter, revenues decreased to $349.0 million from $360.5 million in the prior year period. Earnings per diluted share were $0.52 compared to $0.69 in the prior year period. Adjusted EBITDA was $65.5 million, or 18.8% of revenues, compared with $84.6 million, or 23.5% of revenues, in the prior year period. Adjusted EBITDA and Adjusted earnings per diluted share (which appear in the accompanying tables) are non-GAAP measures and are described in further detail below.
For the quarter, the Company generated $49.2 million in cash from operations. As of June 30, 2010, the Company had $123.3 million of cash and cash equivalents, compared to $80.9 million as of March 31, 2010. During July 2010, the Company repurchased approximately 336 thousand shares of its common stock.
Commenting on these results, Jack Dunn, FTI's president and chief executive officer said, "Our second quarter results were consistent with the preliminary figures we announced in early July. Across our businesses, we continue to experience the impact of an unevenly recovering economy. On the positive side, Economic Consulting and Strategic Communications each generated double digit growth in revenue and Adjusted Segment EBITDA. Forensic and Litigation Consulting also had nice growth despite a continuing soft environment for litigation. At the same time, concerns about the strength of the economic recovery, volatile financial markets and a lack of visibility into the impact of future tax and regulatory policies have undermined business confidence and dampened corporate decision making. The result has been soft demand for our pro-cyclical activities, such as capital markets and M&A, and a significant reduction in the pace of restructuring and bankruptcy activity that, while having stabilized in the quarter, is below the record levels experienced a year ago."
In a separate press release, FTI announced reaching an agreement in principle to acquire FS Asia Advisory Limited, a leading Hong Kong based financial advisory firm.
Second Quarter Segment Results
Corporate Finance/Restructuring
Revenues in the Corporate Finance/Restructuring segment were $111.1 million, compared with a record $134.0 million in the second quarter of the prior year. Adjusted Segment EBITDA was $26.0 million, or 23.4% of segment revenues, compared with $47.4 million, or 35.4% of segment revenues, in the prior year quarter. The decline was due to lower demand for restructuring services resulting from the improvement in high yield markets and the economy, and deferral of some creditor activity pending a clearer prospect for the economy.
Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased 5.8% to $80.8 million from $76.3 million in the second quarter of the prior year. Adjusted Segment EBITDA was $19.3 million, or 24.0% of segment revenues, compared to $20.9 million, or 27.3% of segment revenues, in the prior year's second quarter. The segment's core business continues to be affected by restrained corporate litigation budgets and uncertainty regarding regulatory enforcement activity. The segment saw growth in Regulated Industries - insurance, financial services, healthcare and pharmaceuticals -, and in Trial Services and Asia Pacific investigations, while revenue from the large financial fraud cases that began early last year declined. Adjusted Segment EBITDA margins declined year over year due to increased costs associated with employee hires in anticipation of higher demand for services in litigation and regulatory matters.
Economic Consulting
Revenues in the Economic Consulting segment increased by 13.0% to $64.6 million from $57.1 million in the second quarter of the prior year. Adjusted Segment EBITDA increased to $11.5 million, or 17.7% of segment revenues, compared to $10.3 million, or 18.1% of segment revenues, in the prior year quarter. Revenue growth was driven by strong activity in the Financial Economics and Network Industries practices, and continued maturation of European operations.
Technology
Revenues in the Technology segment were $42.8 million, compared to $48.5 million in the second quarter of the prior year. Adjusted Segment EBITDA was $15.9 million, or 37.1% of segment revenues, compared to $19.2 million, or 39.5% of segment revenues, in the prior year quarter. Revenue performance in the quarter reflected a decline in M&A 'second request' activity and unit based pricing partially offset by higher consulting revenue, including significant litigation activity.
Strategic Communications
Revenues in the Strategic Communications segment increased 11.9% to $49.8 million from $44.6 million in the second quarter of the prior year. Organic growth in the segment was 9.1%. Adjusted Segment EBITDA was $8.6 million, or 17.3% of segment revenues, compared to $5.9 million, or 13.2% of segment revenues, in the prior year quarter. The segment experienced growth in project-based work despite the continued slow environment for discretionary corporate spending and moribund capital markets. The segment also experienced the third consecutive quarter of net annualized retainer wins. Adjusted Segment EBITDA margins improved significantly from the 2009 level due to the higher revenue levels and the positive impact of cost reduction initiatives undertaken in the second half of 2009.
Second Quarter Conference Call
FTI will hold a conference call for analysts and investors to discuss second quarter financial results at 9:00 AM Eastern Time on Thursday, August 5, 2010. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website, www.fticonsulting.com.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 3,300 employees located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at www.fticonsulting.com.
Use of Non-GAAP Measure
Note: We define Adjusted EBITDA as consolidated operating income before depreciation, amortization of intangible assets and special charges plus non-operating litigation settlements. We define Adjusted Segment EBITDA as the segment's share of consolidated operating income before depreciation, amortization of intangible assets and special charges plus non-operating litigation settlements. We define Adjusted earnings per diluted share (Adjusted EPS) as earnings per diluted share excluding the per share impact of the special charges that were incurred in that year. Although Adjusted EBITDA, Adjusted Segment EBITDA and Adjusted EPS are not measures of financial condition or performance determined in accordance with generally accepted accounting principles ("GAAP"), we believe that these measures can be a useful operating performance measure for evaluating our results of operations as compared from period to period and as compared to our competitors. EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in our industry. We use Adjusted EBITDA and Adjusted Segment EBITDA to evaluate and compare the operating performance of our segments and it is one of the primary measures used to determine employee incentive compensation.
Adjusted EBITDA, Adjusted Segment EBITDA and Adjusted EPS are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. These non-GAAP measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our statements of income. Reconciliations of operating profit to Adjusted EBITDA, segment operating profit to Adjusted Segment EBITDA and EPS to Adjusted EPS are included in the accompanying tables to today's press release.
Safe Harbor Statement
This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions and other matters, business trends and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," expects," anticipates," "projects, "plans," intends," "believes," "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved or that actual results will not differ from expectations. The Company has experienced fluctuating revenues, operating income and cash flow in some prior periods and expects this will occur from time to time in the future. The Company's actual results may differ from our expectations. Further, preliminary results are subject to normal year-end adjustments. Other factors that could cause such differences include the current global financial crisis and economic conditions, the crisis in and deterioration of the financial and real estate markets, the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the heading "Item 1A. Risk Factors" in the Company's most recent Form 10-K and in the Company's other filings with the Securities and Exchange Commission. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.
FINANCIAL TABLES FOLLOW
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(in thousands, except per share data)
Six Months Ended
June 30,
--------
2010 2009
---- ----
(unaudited)
Revenues $699,073 $708,371
-------- --------
Operating expenses
Direct cost of revenues 406,491 386,593
Selling, general and administrative
expense 166,603 177,595
Special charges 30,245 -
Amortization of other intangible
assets 11,943 12,199
615,282 576,387
------- -------
Operating income 83,791 131,984
------ -------
Other income (expense)
Interest income and other 2,213 3,005
Interest expense (22,696) (22,043)
(20,483) (19,038)
------- -------
Income before income tax provision 63,308 112,946
Income tax provision 24,057 44,049
------ ------
Net income $39,251 $68,897
======= =======
Earnings per common share - basic $0.86 $1.37
===== =====
Weighted average common shares
outstanding -basic 45,828 50,278
====== ======
Earnings per common share - diluted $0.82 $1.29
Weighted average common shares
outstanding -diluted 48,153 53,424
====== ======
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009
(in thousands, except per share data)
Three Months Ended
June 30,
--------
2010 2009
---- ----
(unaudited)
Revenues $349,033 $360,525
-------- --------
Operating expenses
Direct cost of revenues 209,031 194,181
Selling, general and administrative
expense 82,202 88,842
Amortization of other intangible
assets 5,852 6,149
297,085 289,172
------- -------
Operating income 51,948 71,353
------ ------
Other income (expense)
Interest income and other (141) 702
Interest expense (11,378) (11,030)
(11,519) (10,328)
------- -------
Income before income tax provision 40,429 61,025
Income tax provision 15,363 23,800
------ ------
Net income $25,066 $37,225
======= =======
Earnings per common share - basic $0.55 $0.74
===== =====
Weighted average common shares
outstanding -basic 45,857 50,384
====== ======
Earnings per common share - diluted $0.52 $0.69
Weighted average common shares
outstanding -diluted 48,176 53,835
====== ======
FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(unaudited)
Adjusted
EBITDA
Revenues (1) Margin
-------- --------- ------
(in thousands)
--------------
Three Months Ended June
30, 2010
Corporate Finance/
Restructuring $111,095 $25,977 23.4%
Forensic and Litigation
Consulting 80,754 19,346 24.0%
Economic Consulting 64,552 11,453 17.7%
Technology 42,791 15,857 37.1%
Strategic Communications 49,841 8,635 17.3%
-----
$349,033 81,268 23.3%
========
Corporate (15,810)
-------
Adjusted EBITDA (1) $65,458 18.8%
=======
Six Months Ended June 30,
2010
Corporate Finance/
Restructuring $228,562 $60,696 26.6%
Forensic and Litigation
Consulting 159,432 39,130 24.5%
Economic Consulting 131,859 24,973 18.9%
Technology 86,164 33,118 38.4%
Strategic Communications 93,056 14,377 15.4%
------
$699,073 172,294 24.6%
========
Corporate (30,954)
-------
Adjusted EBITDA (1) $141,340 20.2%
========
Three Months Ended June
30, 2009
Corporate Finance/
Restructuring $133,970 $47,445 35.4%
Forensic and Litigation
Consulting (3) 76,346 20,856 27.3%
Economic Consulting 57,123 10,345 18.1%
Technology (3) 48,536 19,186 39.5%
Strategic Communications 44,550 5,879 13.2%
-----
$360,525 103,711 28.8%
========
Corporate (19,132)
-------
Adjusted EBITDA (1) $84,579 23.5%
=======
Six Months Ended June 30,
2009
Corporate Finance/
Restructuring $261,512 $88,166 33.7%
Forensic and Litigation
Consulting (3) 154,720 42,797 27.7%
Economic Consulting 111,959 20,664 18.5%
Technology (3) 92,859 32,284 34.8%
Strategic Communications 87,321 11,675 13.4%
------
$708,371 195,586 27.6%
========
Corporate (37,044)
-------
Adjusted EBITDA (1) $158,542 22.4%
========
Average Revenue-
Billable Generating
Utilization
(2) Rate (2) Headcount
-------------- ------- ---------
Three Months Ended June
30, 2010
Corporate Finance/
Restructuring 65% $438 683
Forensic and Litigation
Consulting 74% $337 784
Economic Consulting 77% $472 286
Technology N/M N/M 234
Strategic Communications N/M N/M 561
N/M N/M 2,548
=====
Corporate
Adjusted EBITDA (1)
Six Months Ended June 30,
2010
Corporate Finance/
Restructuring 67% $448 683
Forensic and Litigation
Consulting 76% $330 784
Economic Consulting 80% $470 286
Technology N/M N/M 234
Strategic Communications N/M N/M 561
N/M N/M 2,548
=====
Corporate
Adjusted EBITDA (1)
Three Months Ended June
30, 2009
Corporate Finance/
Restructuring 76% $437 736
Forensic and Litigation
Consulting (3) 76% $325 704
Economic Consulting 75% $456 290
Technology (3) N/M N/M 262
Strategic Communications N/M N/M 580
N/M N/M 2,572
=====
Corporate
Adjusted EBITDA (1)
Six Months Ended June 30,
2009
Corporate Finance/
Restructuring 80% $425 736
Forensic and Litigation
Consulting (3) 79% $324 704
Economic Consulting 76% $455 290
Technology (3) N/M N/M 262
Strategic Communications N/M N/M 580
N/M N/M 2,572
=====
Corporate
Adjusted EBITDA (1)
(1) We define Adjusted EBITDA as consolidated operating income before
depreciation, amortization of intangible assets and special charges
plus non-operating litigation settlements. We define Adjusted
Segment EBITDA as the segments' share of consolidated operating
income before depreciation, amortization of intangible assets and
special charges plus non-operating litigation settlements. Although
Adjusted EBITDA, and Adjusted Segment EBITDA are not measures of
financial condition or performance determined in accordance with
generally accepted accounting principles ("GAAP"), we believe that
these measures can be a useful operating performance measure for
evaluating our results of operations as compared from period to
period and as compared to our competitors. EBITDA is a common
alternative measure of operating performance used by investors,
financial analysts and rating agencies to value and compare the
financial performance of companies in our industry. We use Adjusted
EBITDA and Adjusted Segment EBITDA to evaluate and compare the
operating performance of our segments and it is one of the primary
measures used to determine employee incentive compensation.
Adjusted EBITDA and Adjusted Segment EBITDA are not defined in the
same manner by all companies and may not be comparable to other
similarly titled measures of other companies unless the definition
is the same. These non-GAAP measures should be considered in
addition to, but not as a substitute for or superior to, the
information contained in our statements of income. See also our
reconciliation of non-GAAP financial measures.
(2) The majority of the Technology and Strategic Communications
segments' revenues are not generated on an hourly basis.
Accordingly,
utilization and average billable rate metrics are not presented as
they are not meaningful. Utilization where presented is based on a
2,032 hour year.
(3) Effective January 1, 2010, we implemented a change in our
organizational structure that resulted in the movement of our
Financial and Enterprise Data Analytics subpractice from our
Technology segment to our Forensic and Litigation Consulting
segment. This change has been reflected in our segment reporting for
all periods.
FTI CONSULTING, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months
Ended Six Months Ended
June 30, June 30,
-------- --------
2010 2009 2010 2009
---- ---- ---- ----
Net income $25,066 $37,225 $39,251 $68,897
======= ======= ======= =======
Earnings per common share
-diluted $0.52 $0.69 $0.82 $1.29
===== ===== ===== =====
Add back: Special charges,
net of taxes of $12,176 $- $- $18,069 $-
Adjusted net income before
special charges $25,066 $37,225 $57,320 $68,897
======= ======= ======= =======
Adjusted earnings per
common share -diluted
before special charges (1) $0.52 $0.69 $1.19 $1.29
===== ===== ===== =====
(1) We define adjusted earnings per diluted share ("Adjusted EPS")
as earnings per diluted share excluding the per share impact of the
special charges.
RECONCILIATION OF OPERATING INCOME AND NET INCOME TO EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(in thousands)
(unaudited)
Forensic
and
Corporate Litigation
Three Months Ended June 30, Finance / Consulting Economic
2010 Restructuring (2) Consulting
------------- ------------- ----------
Net income
Interest income and other
Interest expense
Income tax provision
Operating income $23,567 $17,537 $10,459
Depreciation 927 843 684
Amortization of other
intangible assets 1,483 966 310
Special charges - - -
Non-operating litigation
settlements - - -
--- --- ---
Adjusted EBITDA (1) 25,977 19,346 11,453
====== ====== ======
Six Months Ended June 30,
2010
Net income
Interest income and other
Interest expense
Income tax provision
Operating income $49,211 $29,937 $16,225
Depreciation 1,921 1,672 1,314
Amortization of other
intangible assets 2,975 1,961 620
Special charges 6,589 5,560 6,814
Non-operating litigation
settlements - - -
--- --- ---
Adjusted EBITDA (1) 60,696 39,130 24,973
====== ====== ======
Three Months Ended June 30,
2009
Net income
Interest income and other
Interest expense
Income tax provision
Operating income $45,042 $19,572 $9,373
Depreciation 815 671 420
Amortization of other
intangible assets 1,588 613 552
Special charges - - -
Non-operating litigation
settlements - - -
--- --- ---
Adjusted EBITDA (1) 47,445 20,856 10,345
====== ====== ======
Six Months Ended June 30,
2009
Net income
Interest income and other
Interest expense
Income tax provision
Operating income $83,417 $40,169 $18,740
Depreciation 1,579 1,331 827
Amortization of other
intangible assets 3,170 1,297 1,097
Special charges - - -
Non-operating litigation
settlements - - -
--- --- ---
Adjusted EBITDA (1) 88,166 42,797 20,664
====== ====== ======
Strategic
Three Months Ended June 30, Technology Communi-
2010 (2) cations Corp HQ Total
------------- --------- ------- -----
Net income $25,066
Interest income and other 141
Interest expense 11,378
Income tax provision 15,363
------
Operating income $10,991 $6,550 $(17,156) 51,948
Depreciation 3,033 825 1,346 7,658
Amortization of other
intangible assets 1,833 1,260 - 5,852
Special charges - - - -
Non-operating litigation
settlements - - - -
--- --- ---
Adjusted EBITDA (1) 15,857 8,635 (15,810) 65,458
====== ===== ======= ======
Six Months Ended June 30,
2010
Net income $39,251
Interest income and other (2,213)
Interest expense 22,696
Income tax provision 24,057
------
Operating income $18,293 $8,897 $(38,772) 83,791
Depreciation 6,083 1,648 2,723 15,361
Amortization of other
intangible assets 3,815 2,572 - 11,943
Special charges 4,927 1,260 5,095 30,245
Non-operating litigation
settlements - - - -
--- --- ---
Adjusted EBITDA (1) 33,118 14,377 (30,954) 141,340
====== ====== ======= =======
Three Months Ended June 30,
2009
Net income $37,225
Interest income and other (702)
Interest expense 11,030
Income tax provision 23,800
------
Operating income $14,283 $3,742 $(20,659) 71,353
Depreciation 2,846 798 1,527 7,077
Amortization of other
intangible assets 2,057 1,339 - 6,149
Special charges - - - -
Non-operating litigation
settlements - - - -
--- --- ---
Adjusted EBITDA (1) 19,186 5,879 (19,132) 84,579
====== ===== ======= ======
Six Months Ended June 30,
2009
Net income $68,897
Interest income and other (3,005)
Interest expense 22,043
Income tax provision 44,049
------
Operating income $22,450 $7,618 $(40,410) 131,984
Depreciation 5,706 1,550 3,116 14,109
Amortization of other
intangible assets 4,128 2,507 - 12,199
Special charges - - - -
Non-operating litigation
settlements - - 250 250
--- --- ---
Adjusted EBITDA (1) 32,284 11,675 (37,044) 158,542
====== ====== ======= =======
(1) We define Adjusted EBITDA as consolidated operating income before
depreciation, amortization of intangible assets and special charges
plus non-operating litigation settlements. We define Adjusted
Segment EBITDA as the segments' share of consolidated operating
income before depreciation, amortization of intangible assets and
special charges plus non-operating litigation settlements. Although
Adjusted EBITDA, and Adjusted Segment EBITDA are not measures of
financial condition or performance determined in accordance with
generally accepted accounting principles ("GAAP"), we believe that
these measures can be a useful operating performance measure for
evaluating our results of operations as compared from period to
period and as compared to our competitors. EBITDA is a common
alternative measure of operating performance used by investors,
financial analysts and rating agencies to value and compare the
financial performance of companies in our industry. We use Adjusted
EBITDA and Adjusted Segment EBITDA to evaluate and compare the
operating performance of our segments and it is one of the primary
measures used to determine employee incentive compensation.
Adjusted EBITDA and Adjusted Segment EBITDA are not defined in the
same manner by all companies and may not be comparable to other
similarly titled measures of other companies unless the definition
is the same. These non-GAAP measures should be considered in
addition to, but not as a substitute for or superior to, the
information contained in our statements of income. See also our
reconciliation of non-GAAP financial measures.
(2) Effective January 1, 2010, we implemented a change in our
organizational structure that resulted in the movement of our
Financial and Enterprise Data Analytics subpractice from our
Technology segment to our Forensic and Litigation Consulting
segment. This change has been reflected in our segment reporting for
all periods.
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 and 2009
(in thousands)
Six Months Ended
June 30,
--------
2010 2009
---- ----
(unaudited)
Operating
activities
Net income $39,251 $68,897
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation and
amortization 15,361 14,109
Amortization of
other intangible
assets 11,943 12,199
Provision for
doubtful accounts 4,618 12,212
Non-cash share-
based compensation 14,651 13,349
Excess tax benefits
from share-based
compensation (625) (2,761)
Non-cash interest
expense 3,599 3,698
Other (315) 1,308
Changes in
operating assets
and liabilities,
net of effects
from acquisitions:
Accounts
receivable, billed
and unbilled (34,895) (47,807)
Notes receivable (17,789) (19,511)
Prepaid expenses
and other assets (2,240) 2,976
Accounts payable,
accrued expenses
and other 11,262 (15,836)
Income taxes (4,339) 14,151
Accrued
compensation (18,671) (12,625)
Billings in excess
of services
provided 144 (679)
Net cash provided
by operating
activities 21,955 43,680
------ ------
Investing
activities
Payments for
acquisition of
businesses,
including
contingent
payments,
net of cash
received (22,834) (34,580)
Purchases of
property and
equipment (11,632) (11,687)
Proceeds from
maturity of short-
term investment 15,000 -
Other (475) 307
---- ---
Net cash used in
investing
activities (19,941) (45,960)
------- -------
Financing
activities
Borrowings under
revolving line of
credit 20,000 -
Payments of
revolving line of
credit (20,000) -
Payments of long-
term debt and
capital lease
obligations (465) (551)
Cash received for
settlement of
interest rate
swaps - 2,288
Issuance of common
stock under equity
compensation plans 4,235 13,098
Excess of tax
benefits from
share-based
compensation 625 2,761
Other 442 -
Net cash provided
by financing
activities 4,837 17,596
----- ------
Effect of exchange
rate changes on
cash and cash
equivalents (2,469) 5,934
------ -----
Net increase in
cash and cash
equivalents 4,382 21,250
Cash and cash
equivalents,
beginning of
period 118,872 191,842
------- -------
Cash and cash
equivalents, end
of period $123,254 $213,092
======== ========
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
(in thousands, except per share amounts)
December
June 30, 31,
2010 2009
---- ----
Assets (unaudited)
Current assets
Cash and cash equivalents $123,254 $118,872
Accounts receivable:
Billed receivables 249,511 241,911
Unbilled receivables 129,061 104,959
Allowance for doubtful accounts and
unbilled services (62,926) (59,328)
------- -------
Accounts receivable, net 315,646 287,542
Notes receivable 24,945 20,853
Prepaid expenses and other current assets 33,158 45,157
Income taxes receivable 31,192 7,015
Deferred income taxes 4,476 20,476
----- ------
Total current assets 532,671 499,915
Property and equipment, net of accumulated
depreciation 77,744 80,678
Goodwill 1,197,763 1,195,949
Other intangible assets, net of
amortization 161,254 175,962
Notes receivable, net of current portion 81,669 69,213
Other assets 53,639 55,621
------ ------
Total assets $2,104,740 $2,077,338
========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable, accrued expenses and
other $71,239 $81,193
Accrued compensation 116,480 152,807
Current portion of long-term debt and
capital lease obligations 144,705 138,101
Billings in excess of services provided 33,995 34,101
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Total current liabilities 366,419 406,202
Long-term debt and capital lease
obligations, net of current portion 417,124 417,397
Deferred income taxes 112,261 95,704
Other liabilities 61,017 53,821
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Total liabilities 956,821 973,124
Stockholders' equity
Preferred stock, $0.01 par value; shares
authorized - 5,000; none outstanding - -
Common stock, $0.01 par value; shares
authorized - 75,000; shares issued and
outstanding - 47,150 (2010) and 46,985
(2009) 472 470
Additional paid-in capital 559,244 535,754
Retained earnings 654,780 615,529
Accumulated other comprehensive loss (66,577) (47,539)
Total stockholders' equity 1,147,919 1,104,214
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Total liabilities and stockholders' equity $2,104,740 $2,077,338
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SOURCE FTI Consulting, Inc.