Management services provider
FTI Consulting, Inc.
) reported net income of $23.7 million or 58 cents per share in
first quarter 2013 versus $18.4 million or 43 cents per share in
the year-ago quarter. The healthy year-over-year increase in
earnings is primarily attributable to a strong performance by the
Economic Consulting group, accretive acquisitions, and stringent
cost-cutting measures. The reported earnings exceeded the Zacks
Consensus Estimate of 52 cents.
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Excluding non-recurring items, adjusted earnings for the reported
quarter were 59 cents per share compared to 43 cents in the
Total revenue in the reported quarter increased 3.0% year over
year to a record first quarter high of $407.2 million. Adjusted
EBITDA stood at $59.3 million compared to $54.0 million in the
Effective first quarter 2013, FTI Consulting restructured its
reportable segments to better reflect changes in its business
operations. The company combined healthcare practices from both
its Corporate Finance/Restructuring and Forensic and Litigation
Consulting segments under a single organizational structure
within the Forensic and Litigation Consulting reportable segment.
segment reported revenues of $99.1 million, up 2.3% year over
year. The increase in revenues was buoyed by acquisition of an
Australian restructuring business and higher demand for
telecommunications, media and technology practice services.
revenues improved 15.1% to $115.2 million in the quarter. The
upside was aided by robust demand and higher average bill rates
across the board, including financial economics, antitrust,
European international arbitration, regulatory and valuation
Forensic and Litigation Consulting
segment revenue decreased 2.8% to $100.7 million due to lower
demand for global financial and enterprise data analytics and
core North American services.
segment revenue was down 6.0% to $46.7 million, due to winding
down of large investigation and litigation matters and lower
pricing for consulting and services.
segment revenues increased 1.0% year over year to $45.5 million
in the quarter, driven by higher project income in North America
and Europe, Middle East and Africa.
At quarter-end, FTI Consulting had cash and cash equivalents of
$100.7 million with long-term debt of $717.0 million. In the
reported quarter, the company repurchased 826,800 shares for
$28.8 million. Additionally, the company completed a series of
acquisitions aggregating $14.7 million.
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.
FTI Consulting currently has a Zacks Rank #3 (Hold). Other
players in the industry worth reckoning include
Huron Consulting Group Inc.
Towers Watson & Co.
), each having a Zacks Rank #2 (Buy).