FTI Consulting, Inc
) reported a loss of $2.15 per share in fourth quarter 2012
versus income of 93 cents in the year-ago quarter. Adjusted EPS
was 67 cents in the reported quarter, ahead of the Zacks
Consensus Estimate of 60 cents.
For 2012, GAAP loss was 92 cents versus income of $2.39 per share
in 2011. Adjusted EPS of $2.30 was ahead of the Zacks Consensus
Estimate of $2.20.
Total revenue in the reported quarter increased 2.2% year over
year to $399.3 million and was ahead of the Zacks Consensus
Estimate of $387.0 million. Revenue increased mostly due to
increase in revenues in the Economic Consulting segment,
Corporate Finance/Restructuring and Strategic Communications
For full year 2012, revenues stood at $1,576.9 million versus
$1,566.8 million in the previous year.
Adjusted EBITDA stood at $68.1 million in the quarter with
adjusted operating margin of 17.1%. Utilization for Corporate
Finance/Restructuring segment decreased to 64% from 72% in the
year-ago quarter, Economic Consulting dipped 80% from 83% and
Forensic and Litigation Consulting segment declined marginally to
67% from 68%.
Corporate Finance/Restructuring reported revenues of $123.2
million, up 13.7% year over year. The increases in revenues were
driven by acquisition of an Australian restructuring business,
strong results in North America, higher success fees and revenues
increases from the Asia Pacific region.
Economic Consulting revenues improved 6.9% to $95.7 million in
the quarter. The upside was aided by revenue growth in antitrust
litigation, financial economics, international arbitration and
regulatory consulting practices, particularly in the energy,
telecommunications and transportation industries
Forensic and Litigation Consulting revenue decreased 8.2% to
$82.6 million as North American practices remained weak.
Technology segment revenue was down 11.3% to $47.6 million, due
to winding down of large investigation and litigation matters.
Strategic Communications revenues increased 2.2% year over year
to $50.3 million in the quarter due to growth in capital market
As of Dec 31 2012, FTI Consulting's cash and cash equivalents
totaled $156.8 million.
In the reported quarter, the company repurchased 923,379 shares
at $32.51 each totaling $30 million. This brought the total tally
of stock repurchases under the company's $250 million stock
repurchase program to 1.6 million shares for approximately $50
million. As of Dec 31, 2012, long-term debt stood at $717.0
million versus $643.6 million in the year-ago period.
Additionally, the company completed a series of debt refinancing
transactions and extended debt maturities at lower interest
For 2013, the company continues to expect revenues in the range
of $1.63 billion and $1.70 billion and adjusted EPS between $2.40
The company expects Economic Consulting segment to perform well
in 2013 due to the potential merger and acquisition matters
coupled with progress for industry initiatives, in
Telecommunications, Media and Technology; Energy; Healthcare;
Insurance; and Global Risk and Investigations. Additionally the
company will continue its focus on organic growth and cash flow.
However, the company needs to be wary of its competitors, which
includes formidable names such as
CRA International Inc
FTI consulting currently has a Zacks Rank #3 (Hold). One of its
Towers Watson & Co
) carries a Zacks Rank #1 (Strong Buy).
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