FTI Consulting, Inc. Posts Record Sales, Net Income and EBITDA For First Quarter

Earnings per Share Match All-Time High; Guidance Confirmed



Apr 26, 2001, 01:00 ET from FTI Consulting, Inc.

    ANNAPOLIS, Md., April 26 /PRNewswire/ -- FTI Consulting, Inc. (Amex:   FCN),
 today reported record results for the quarter ended March 31, 2001.  All
 results are unaudited.  Comparisons with last year refer to the comparable
 period in the prior year, including pro forma financial results for the first
 quarter of the prior year that contain the results of Policano & Manzo L.L.C.
 (P&M), for January 2000, the month prior to its acquisition by FTI, and
 exclude extraordinary items.
     For the quarter, revenues increased 24 percent to $41.5 million, compared
 with $33.5 million in the prior year.  Net income was $3.8 million, an
 increase of 73 percent over the $2.2 million income in the prior year.
 Earnings per share exceeded analysts' consensus estimates by 10 percent and
 matched the record $0.32 per share achieved in the prior year despite a
 74 percent increase in the number of diluted share equivalents. As previously
 reported, earnings per share for the first quarter of 2000 were unusually
 high, primarily due to the extraordinary demand for the services of the
 company's Financial Consulting Division and the temporary over-utilization of
 employees to meet that demand in the short term.  Since that time, FTI has
 increased the work force in the division to address the continuing demand at
 more realistic and sustainable utilization rates.
     Earnings per share for the first quarter of 2001 were based on 12.0
 million weighted average diluted shares outstanding compared with 6.9 million
 weighted average diluted shares outstanding during the comparable quarter.
 The increase was attributable primarily to the issuance of 4.03 million
 additional shares of common stock in an underwritten public offering in
 October 2000.  A greater number of common stock equivalents caused by a
 significant increase in the average price of FTI stock during the quarter also
 reduced earnings by $0.01 per share.
     Earnings before interest, taxes and depreciation and amortization (EBITDA)
 were also an all-time high for the company, increasing by 18 percent to
 $10.3 million for the first quarter of 2001, compared with $8.7 million in the
 first quarter of 2000.  Cash flow provided by operations for the quarter was
 $2.1 million, a $3.3 million improvement compared with a $1.2 million use in
 operations in the comparable quarter of the prior year.  Cash generated was
 used to pay down debt, and to date since the beginning of the year, the
 company has reduced debt from $60.5 million to $56.4 million.
     Commenting on these results, FTI Chairman and Chief Executive Officer Jack
 Dunn said, "Needless to say, we are thrilled by the record results achieved in
 the quarter and the continuing strong demand for our financial consulting
 services.  These results are outstanding given that we were able to equal last
 year's record performance and beat analysts' expectations with the equivalent
 of 74 percent more shares outstanding.  We are also especially gratified that
 these results are translating into increased shareholder value."
     With regard to the company's three operating segments, two also achieved
 record financial milestones during the quarter.  Financial Consulting's
 revenues for the quarter were a record $24.2 million compared with
 $15.0 million last year, an increase of 61 percent.  Segment profit was also a
 record at $9.7 million compared with $6.7 million last year, an increase of 45
 percent.  For Applied Sciences, revenues were a record $10.2 million compared
 with $10.0 million last year, while segment profit was $1.7 million compared
 with $2.0 million last year.  This decline was due primarily to differences in
 sales mix from the unusually profitable first quarter of the prior year.  For
 Litigation Consulting, revenues were $7.1 million compared with $8.5 million
 in the prior year, and segment profit was $1.0 million compared with
 $2.2 million in the prior year.  As stated previously, management continues to
 monitor this business closely.  Improving results toward the end of the
 quarter provided some encouragement that the steps taken by division
 management to contain costs while developing the New York market may be
 beginning to produce results.
     In reviewing the quarter, FTI President Stewart Kahn said, "These results
 are truly gratifying because they were a team effort by all of our dedicated
 employees.  While Financial Consulting under the direction of Barry Monheit,
 Bob Manzo and Mike Policano capitalized on its position as a number one
 provider in a dynamic market place, Applied Sciences under the leadership of
 Glenn Baker not only produced record revenues, it combined this steady,
 dependable financial performance with additional services that help cement its
 reputation as the leader in its field.  At the same time, Litigation
 Consulting under Pat Brady and Dan Winter took significant steps that we are
 confident will result in improved financial performance.  I am proud of the
 contributions of all of our fine professionals."
 
     Outlook for 2001 Confirmed
     The company believes that its stated goal of generating 15 percent or
 greater growth in revenues and earnings per share for the full year 2001 is
 achievable, even with the effect of the significantly increased number of
 shares outstanding.
 
     First-Quarter Conference Call
     FTI will hold a conference call to discuss first-quarter results and
 management's outlook for the remainder of 2001 at 11:00 a.m. EDT today.  The
 call can be accessed live and will be available for replay over the Internet
 via www.vcall.com .
 
     About FTI Consulting
     FTI Consulting is a multi-disciplined consulting firm with leading
 practices in the areas of bankruptcy and financial restructuring, litigation
 consulting and engineering/scientific investigation.  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 that 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.
 
     For further information regarding FTI Consulting, Inc. free of charge via
 fax, dial 1-800-PRO-INFO and enter "FCN"
 
     FTI is on the Internet at www.fticonsulting.com and at www.ftiwarroom.net
 
 
     FTI CONSULTING, INC.
     CONDENSED STATEMENTS OF INCOME
     AND PRO FORMA CONDENSED STATEMENT OF INCOME
     FOR THE FIRST QUARTERS ENDED MARCH 31, 2001 AND 2000
     (in thousands of dollars, except share and per-share data)
 
                                                       Quarter Ended
                                               Actual    Pro Forma     Actual
                                             3/31/2001   3/31/2000   3/31/2000
                                                       (unaudited)
 
     Revenues                                 $41,475     $33,451     $31,013
 
     Direct cost of revenues                   21,806      16,282      15,375
     Selling, general and administrative
      expenses                                 10,308       9,063       8,914
     Amortization of goodwill                   1,250       1,233       1,016
     Total costs and expenses                  33,364      26,578      25,305
 
     Income from operations                     8,111       6,873       5,708
 
     Interest expense, net                      1,443       2,932       2,352
 
     Income before extraordinary items and
      taxes                                     6,668       3,941       3,356
 
     Income taxes                               2,834       1,734       1,476
 
     Income before extraordinary items          3,834       2,207       1,880
 
     Extraordinary item:
       Loss on early extinguishment of
        debt, net of taxes                          -         869         869
 
     Net income                                $3,834      $1,338      $1,011
 
     Income before extraordinary item,
        per common share, basic                 $0.36       $0.35       $0.32
     Net income per common share, basic         $0.36       $0.21       $0.17
     Weighted average shares for basic         10,622       6,385       5,854
 
     Income before extraordinary item,
       per common share, diluted                $0.32       $0.32       $0.29
     Net income per common share, diluted       $0.32       $0.19       $0.16
     Weighted average shares for diluted       12,034       6,931       6,400
 
     EBITDA                                   $10,277      $8,742      $7,357
 
     (a) Pro forma gives effect to the acquisition of P&M as of
         January 1, 2000
 
 
     FTI CONSULTING, INC.
     REVENUES AND EBITDA BY DIVISION
     FOR THE THREE MONTHS ENDED MARCH 31, 2001
     AND 2000 AND PRO FORMA THREE MONTHS
      ENDED MARCH 31, 2000
     (in thousands of dollars)
 
                                                     Quarter Ended
                                             Actual    Pro Forma     Actual
                                           3/31/2001   3/31/2000   3/31/2000
                                                      (unaudited)
     Revenues
 
        Financial Consulting                  $24,213     $14,957     $12,519
 
        Litigation Consulting                   7,052       8,510       8,510
 
        Applied Sciences                       10,210       9,984       9,984
 
     Total Revenues                           $41,475     $33,451     $31,013
 
     EBITDA, before corporate charges
 
        Financial Consulting                   $9,691      $6,724      $5,339
 
        Litigation Consulting                     958       2,155       2,155
 
        Applied Sciences                        1,742       1,958       1,958
 
     Total EBITDA, before corporate charges   $12,391     $10,837      $9,452
 
 
     (a) Pro forma gives effect to the acquisition of P&M as of
         January 1, 2000.
 
 
 
     FTI CONSULTING, INC.
     CONDENSED CONSOLIDATED BALANCE SHEET
     DECEMBER 31, 2000 AND MARCH 31, 2001
     (in thousands of dollars, except share data)
 
                                                  December 31        March 31,
                                                     2000              2001
                                                    audited          unaudited
 
     Assets
     Current assets
        Cash and cash equivalents                    $3,235            $2,528
        Accounts receivable, less allowances         20,380            19,118
        Unbilled receivable, less allowances         11,952            15,604
        Other current assets                          4,270             3,093
     Total current assets                            39,837            40,343
 
     Property and equipment, net                     13,155            13,053
 
     Goodwill                                        91,971            91,326
     Other assets                                     1,168               911
 
     Total Assets                                  $146,131          $145,633
 
     Liabilities and Stockholders' Equity
     Current liabilities
        Accounts payable and accrued expenses       $14,841           $10,673
        Income taxes payable                            500             1,877
        Current portion of long-term debt             4,333             4,333
     Total current liabilities                       19,674            16,883
 
     Long-term debt, less current portion            56,167            54,083
     Deferred income taxes and other liabilities      1,666             2,411
 
     Stockholders' equity
     Preferred stock, $.01 par value;
      4,000,000 shares authorized, none
      outstanding                                         -                 -
     Common stock, $.01 par value;
      16,000,000 shares authorized, 10,567,477 and
      10,625,814 shares issued and outstanding
      in 2000, and March 31, 2001, respectively         106               106
     Additional paid-in capital                      53,951            54,457
     Retained earnings                               14,567            18,400
     Accumulated other comprehensive income                              (707)
     Total stockholders' equity                      68,624            72,256
 
     Total Liabilities and Stockholders'
      Equity                                       $146,131          $145,633
 
 
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SOURCE FTI Consulting, Inc.
    ANNAPOLIS, Md., April 26 /PRNewswire/ -- FTI Consulting, Inc. (Amex:   FCN),
 today reported record results for the quarter ended March 31, 2001.  All
 results are unaudited.  Comparisons with last year refer to the comparable
 period in the prior year, including pro forma financial results for the first
 quarter of the prior year that contain the results of Policano & Manzo L.L.C.
 (P&M), for January 2000, the month prior to its acquisition by FTI, and
 exclude extraordinary items.
     For the quarter, revenues increased 24 percent to $41.5 million, compared
 with $33.5 million in the prior year.  Net income was $3.8 million, an
 increase of 73 percent over the $2.2 million income in the prior year.
 Earnings per share exceeded analysts' consensus estimates by 10 percent and
 matched the record $0.32 per share achieved in the prior year despite a
 74 percent increase in the number of diluted share equivalents. As previously
 reported, earnings per share for the first quarter of 2000 were unusually
 high, primarily due to the extraordinary demand for the services of the
 company's Financial Consulting Division and the temporary over-utilization of
 employees to meet that demand in the short term.  Since that time, FTI has
 increased the work force in the division to address the continuing demand at
 more realistic and sustainable utilization rates.
     Earnings per share for the first quarter of 2001 were based on 12.0
 million weighted average diluted shares outstanding compared with 6.9 million
 weighted average diluted shares outstanding during the comparable quarter.
 The increase was attributable primarily to the issuance of 4.03 million
 additional shares of common stock in an underwritten public offering in
 October 2000.  A greater number of common stock equivalents caused by a
 significant increase in the average price of FTI stock during the quarter also
 reduced earnings by $0.01 per share.
     Earnings before interest, taxes and depreciation and amortization (EBITDA)
 were also an all-time high for the company, increasing by 18 percent to
 $10.3 million for the first quarter of 2001, compared with $8.7 million in the
 first quarter of 2000.  Cash flow provided by operations for the quarter was
 $2.1 million, a $3.3 million improvement compared with a $1.2 million use in
 operations in the comparable quarter of the prior year.  Cash generated was
 used to pay down debt, and to date since the beginning of the year, the
 company has reduced debt from $60.5 million to $56.4 million.
     Commenting on these results, FTI Chairman and Chief Executive Officer Jack
 Dunn said, "Needless to say, we are thrilled by the record results achieved in
 the quarter and the continuing strong demand for our financial consulting
 services.  These results are outstanding given that we were able to equal last
 year's record performance and beat analysts' expectations with the equivalent
 of 74 percent more shares outstanding.  We are also especially gratified that
 these results are translating into increased shareholder value."
     With regard to the company's three operating segments, two also achieved
 record financial milestones during the quarter.  Financial Consulting's
 revenues for the quarter were a record $24.2 million compared with
 $15.0 million last year, an increase of 61 percent.  Segment profit was also a
 record at $9.7 million compared with $6.7 million last year, an increase of 45
 percent.  For Applied Sciences, revenues were a record $10.2 million compared
 with $10.0 million last year, while segment profit was $1.7 million compared
 with $2.0 million last year.  This decline was due primarily to differences in
 sales mix from the unusually profitable first quarter of the prior year.  For
 Litigation Consulting, revenues were $7.1 million compared with $8.5 million
 in the prior year, and segment profit was $1.0 million compared with
 $2.2 million in the prior year.  As stated previously, management continues to
 monitor this business closely.  Improving results toward the end of the
 quarter provided some encouragement that the steps taken by division
 management to contain costs while developing the New York market may be
 beginning to produce results.
     In reviewing the quarter, FTI President Stewart Kahn said, "These results
 are truly gratifying because they were a team effort by all of our dedicated
 employees.  While Financial Consulting under the direction of Barry Monheit,
 Bob Manzo and Mike Policano capitalized on its position as a number one
 provider in a dynamic market place, Applied Sciences under the leadership of
 Glenn Baker not only produced record revenues, it combined this steady,
 dependable financial performance with additional services that help cement its
 reputation as the leader in its field.  At the same time, Litigation
 Consulting under Pat Brady and Dan Winter took significant steps that we are
 confident will result in improved financial performance.  I am proud of the
 contributions of all of our fine professionals."
 
     Outlook for 2001 Confirmed
     The company believes that its stated goal of generating 15 percent or
 greater growth in revenues and earnings per share for the full year 2001 is
 achievable, even with the effect of the significantly increased number of
 shares outstanding.
 
     First-Quarter Conference Call
     FTI will hold a conference call to discuss first-quarter results and
 management's outlook for the remainder of 2001 at 11:00 a.m. EDT today.  The
 call can be accessed live and will be available for replay over the Internet
 via www.vcall.com .
 
     About FTI Consulting
     FTI Consulting is a multi-disciplined consulting firm with leading
 practices in the areas of bankruptcy and financial restructuring, litigation
 consulting and engineering/scientific investigation.  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 that 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.
 
     For further information regarding FTI Consulting, Inc. free of charge via
 fax, dial 1-800-PRO-INFO and enter "FCN"
 
     FTI is on the Internet at www.fticonsulting.com and at www.ftiwarroom.net
 
 
     FTI CONSULTING, INC.
     CONDENSED STATEMENTS OF INCOME
     AND PRO FORMA CONDENSED STATEMENT OF INCOME
     FOR THE FIRST QUARTERS ENDED MARCH 31, 2001 AND 2000
     (in thousands of dollars, except share and per-share data)
 
                                                       Quarter Ended
                                               Actual    Pro Forma     Actual
                                             3/31/2001   3/31/2000   3/31/2000
                                                       (unaudited)
 
     Revenues                                 $41,475     $33,451     $31,013
 
     Direct cost of revenues                   21,806      16,282      15,375
     Selling, general and administrative
      expenses                                 10,308       9,063       8,914
     Amortization of goodwill                   1,250       1,233       1,016
     Total costs and expenses                  33,364      26,578      25,305
 
     Income from operations                     8,111       6,873       5,708
 
     Interest expense, net                      1,443       2,932       2,352
 
     Income before extraordinary items and
      taxes                                     6,668       3,941       3,356
 
     Income taxes                               2,834       1,734       1,476
 
     Income before extraordinary items          3,834       2,207       1,880
 
     Extraordinary item:
       Loss on early extinguishment of
        debt, net of taxes                          -         869         869
 
     Net income                                $3,834      $1,338      $1,011
 
     Income before extraordinary item,
        per common share, basic                 $0.36       $0.35       $0.32
     Net income per common share, basic         $0.36       $0.21       $0.17
     Weighted average shares for basic         10,622       6,385       5,854
 
     Income before extraordinary item,
       per common share, diluted                $0.32       $0.32       $0.29
     Net income per common share, diluted       $0.32       $0.19       $0.16
     Weighted average shares for diluted       12,034       6,931       6,400
 
     EBITDA                                   $10,277      $8,742      $7,357
 
     (a) Pro forma gives effect to the acquisition of P&M as of
         January 1, 2000
 
 
     FTI CONSULTING, INC.
     REVENUES AND EBITDA BY DIVISION
     FOR THE THREE MONTHS ENDED MARCH 31, 2001
     AND 2000 AND PRO FORMA THREE MONTHS
      ENDED MARCH 31, 2000
     (in thousands of dollars)
 
                                                     Quarter Ended
                                             Actual    Pro Forma     Actual
                                           3/31/2001   3/31/2000   3/31/2000
                                                      (unaudited)
     Revenues
 
        Financial Consulting                  $24,213     $14,957     $12,519
 
        Litigation Consulting                   7,052       8,510       8,510
 
        Applied Sciences                       10,210       9,984       9,984
 
     Total Revenues                           $41,475     $33,451     $31,013
 
     EBITDA, before corporate charges
 
        Financial Consulting                   $9,691      $6,724      $5,339
 
        Litigation Consulting                     958       2,155       2,155
 
        Applied Sciences                        1,742       1,958       1,958
 
     Total EBITDA, before corporate charges   $12,391     $10,837      $9,452
 
 
     (a) Pro forma gives effect to the acquisition of P&M as of
         January 1, 2000.
 
 
 
     FTI CONSULTING, INC.
     CONDENSED CONSOLIDATED BALANCE SHEET
     DECEMBER 31, 2000 AND MARCH 31, 2001
     (in thousands of dollars, except share data)
 
                                                  December 31        March 31,
                                                     2000              2001
                                                    audited          unaudited
 
     Assets
     Current assets
        Cash and cash equivalents                    $3,235            $2,528
        Accounts receivable, less allowances         20,380            19,118
        Unbilled receivable, less allowances         11,952            15,604
        Other current assets                          4,270             3,093
     Total current assets                            39,837            40,343
 
     Property and equipment, net                     13,155            13,053
 
     Goodwill                                        91,971            91,326
     Other assets                                     1,168               911
 
     Total Assets                                  $146,131          $145,633
 
     Liabilities and Stockholders' Equity
     Current liabilities
        Accounts payable and accrued expenses       $14,841           $10,673
        Income taxes payable                            500             1,877
        Current portion of long-term debt             4,333             4,333
     Total current liabilities                       19,674            16,883
 
     Long-term debt, less current portion            56,167            54,083
     Deferred income taxes and other liabilities      1,666             2,411
 
     Stockholders' equity
     Preferred stock, $.01 par value;
      4,000,000 shares authorized, none
      outstanding                                         -                 -
     Common stock, $.01 par value;
      16,000,000 shares authorized, 10,567,477 and
      10,625,814 shares issued and outstanding
      in 2000, and March 31, 2001, respectively         106               106
     Additional paid-in capital                      53,951            54,457
     Retained earnings                               14,567            18,400
     Accumulated other comprehensive income                              (707)
     Total stockholders' equity                      68,624            72,256
 
     Total Liabilities and Stockholders'
      Equity                                       $146,131          $145,633
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41602116
 
 
 SOURCE  FTI Consulting, Inc.