FTI CONSULTING, INC. (NYSE:FCN) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05.
During the second quarter ended June30, 2017, FTI Consulting, Inc. (the “Company” or “FTI Consulting”) continued to evaluate components of its workforce and related expenses, to ensure investment is better aligned with external market demands and reduce overhead costs by streamlining certain infrastructure functions. This process resulted in the Company terminating approximately 4% of the Company’s more than 4,700 employees and closing or vacating leased space in several small international offices during the quarter. All affected employees were notified by June30, 2017, and will be released subject to defined notice periods.
The Company estimates that the termination costs associated with these personnel reductions will be approximately $16.0 million, and other costs will be approximately $2.0 million, which include costs related to closing or vacating leased space in several small international offices. The combined pre-tax income charge of approximately $18.0 million will be recorded in the second quarter of 2017, all of which is estimated to be cash.
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended, that are based upon management’s beliefs, as well as assumptions made by and information currently available to management, including, without limitation, statements related to the estimated charges for the reduction in personnel, certain office closures and related overhead, including related estimated cash expenditures, and the timing for the completion of the reduction in personnel and related expenses. All statements other than statements of historical fact included in this Current Report on Form 8-K, in particular identified by words such as “approximately,” “estimates,” “ensures,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” and variations of such words or similar expressions, constitute forward-looking statements. All forward-looking statements are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and estimates 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 estimates will result or be achieved or that actual results will not differ from estimates or expectations. Other factors that could cause such differences include adverse financial and general economic conditions, FTI Consulting’s ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of clients, the timing and collection of revenue, and other risks described under the heading “Item 1A. Risk Factors” in FTI Consulting’s most recent Form 10-K and in FTI Consulting’s other filings with the Securities and Exchange Commission, including the risks set forth under “Risks Related to Our Reportable Segments” and “Risks Related to Our Operations”. 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.
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About FTI CONSULTING, INC. (NYSE:FCN)
FTI Consulting, Inc. (FTI Consulting) is a business advisory firm. The Company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications. Its Corporate Finance & Restructuring segment focuses on strategic, operational, financial and capital needs of businesses around the world. Its Forensic and Litigation Consulting segment provides law firms, companies, government clients and other interested parties with dispute advisory, investigations, data analytics and risk mitigation services, as well as interim management and performance improvement services for its health solutions practice clients. Its Economic Consulting segment provides law firms, companies, government entities and other interested parties with analysis of complex economic issues for use in legal, regulatory and international arbitration proceedings, strategic decision making and public policy debates.