WASHINGTON, July 28, 2016 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE:FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today released its financial results for the quarter ended June 30, 2016.

For the quarter, revenues increased 2.5 percent to $460.1 million compared to $449.1 million in the prior year quarter. Excluding the estimated negative impact of foreign currency translation (“FX”), revenues increased 3.7 percent compared to the prior year quarter. Net income increased 22.3 percent to $26.5 million compared to $21.7 million in the prior year quarter. Fully diluted earnings per share (“EPS”) were $0.64 compared to $0.52 in the prior year quarter. Second quarter 2016 EPS included a special charge of $1.7 million related to headcount reductions in the health solutions practice within the Forensic and Litigation Consulting segment, which reduced EPS by $0.02, and a $3.0 million FX revaluation gain, which benefitted EPS by $0.05. EPS in the prior year quarter included a reduction of contingent consideration liabilities, which increased EPS by $0.02. Adjusted EPS and Adjusted EBITDA, which exclude the contingent consideration gain and special charges, were $0.66 and $56.6 million, respectively, compared to $0.50 and $55.8 million, respectively, in the prior year quarter. Adjusted EBITDA was 12.3 percent of revenues compared to 12.4 percent of revenues in the prior year quarter.

Adjusted EPS and Adjusted EBITDA are non-GAAP measures defined elsewhere in this press release and are reconciled to GAAP measures in the accompanying financial tables.

Commenting on these results, Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, said, “I am pleased to announce that we had another strong quarter. Together with our exceptional first quarter, these two quarters constitute the best first half ever in the history of the Company from a revenue, EPS and Adjusted EPS basis.”

Mr. Gunby added, “Our goal by the end of 2016 is to have each of our businesses in the position where we are confident that they are real engines for growth, on multi-year basis. I believe we are on track to achieving this goal, which gives us a lot of optimism about where the Company can continue to go over the next years.”

Cash Position
Net cash generated by operating activities for the quarter was $73.7 million compared to net cash generated by operating activities of $20.6 million in the prior year quarter. Cash and cash equivalents were $182.7 million at June 30, 2016 compared to $240.0 million at June 30, 2015.

Second Quarter Segment Results

Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment increased $23.0 million, or 21.1 percent to $132.1 million in the quarter, compared to $109.1 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $24.5 million, or 22.5 percent compared to the prior year quarter. The increase in revenues was driven primarily by higher demand for distressed services in North America and higher demand across all service offerings in the Europe, Middle East and Africa (“EMEA”) region. Adjusted Segment EBITDA was $32.0 million, or 24.2 percent of segment revenues, compared to $22.0 million, or 20.2 percent of segment revenues in the prior year quarter. The increase in Adjusted Segment EBITDA margin was driven by higher realized rates and improved utilization in EMEA, which was partially offset by lower utilization in non-distressed services in North America.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment decreased $7.9 million, or 6.3 percent to $118.2 million in the quarter, compared to $126.1 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues decreased $6.7 million, or 5.3 percent compared to the prior year quarter. The decrease in revenues was driven by lower demand and success fees in the segment’s health solutions practice, which was partially offset by increased demand in the global risk and investigations practice (“GRIP”). Adjusted Segment EBITDA was $15.2 million, or 12.9 percent of segment revenues, compared to $20.0 million, or 15.8 percent of segment revenues in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was due to lower utilization and success fees in the segment’s health solutions practice, which was partially offset by higher average realization in GRIP and lower selling, general and administrative (“SG&A”) expenses.

Economic Consulting
Revenues in the Economic Consulting segment increased $9.3 million, or 8.6 percent to $118.0 million in the quarter, compared to $108.7 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $10.4 million, or 9.6 percent compared to the prior year quarter. The increase in revenues was driven by higher demand for the segment’s financial economics services in North America and non-merger and acquisition (“M&A”)-related antitrust and intellectual property services in North America and EMEA. Adjusted Segment EBITDA was $15.4 million, or 13.0 percent of segment revenues, compared to $15.3 million, or 14.1 percent of segment revenues in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was due to higher bad debt expense and overhead support costs.

Technology
Revenues in the Technology segment decreased $19.9 million, or 32.3 percent to $41.9 million in the quarter, compared to $61.8 million in the prior year quarter. The decrease in revenues was driven by declines in M&A-related “second request” activity and reduced demand for cross-border investigations. Adjusted Segment EBITDA was $5.0 million, or 12.0 percent of segment revenues, compared to $12.2 million, or 19.7 percent of segment revenues in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was due to lower demand for managed review services, lower realized pricing for consulting services based on the mix of clients and higher SG&A, including increased research and development investment, as a percentage of revenues.

Strategic Communications
Revenues in the Strategic Communications segment increased $6.6 million, or 15.1 percent to $49.9 million in the quarter, compared to $43.4 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $7.6 million, or 17.6 percent compared to the prior year quarter. The increase in revenue was primarily driven by higher project-based revenues from public affairs and financial communications engagements in North America and EMEA. Adjusted Segment EBITDA was $8.4 million, or 16.9 percent of segment revenues, compared to $5.6 million, or 13.0 percent of segment revenues in the prior year quarter. The increase in Adjusted Segment EBITDA margin was due to the mix of higher margin large project engagements, improved utilization across North America and lower SG&A expenses as a percent of revenues.

Updated 2016 Guidance
The Company now estimates that revenues for 2016 will be between $1.80 billion and $1.87 billion. The Company reaffirmed its 2016 guidance for Adjusted EPS of between $2.15 and $2.45.

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 4,600 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management, strategic communications and restructuring. The Company generated $1.78 billion in revenues during fiscal year 2015. More information can be found at www.fticonsulting.com.