FTI CONSULTING, INC. (NYSE:FCN) Files An 8-K Results of Operations and Financial Condition
ITEM2.02.
Results of Operations and Financial Condition |
On April27, 2017, FTI Consulting, Inc. (FTI Consulting) announced
financial results for the first quarter ended March31, 2017 and
updated guidance for the year ending December31, 2017. A copy of
the press release (including accompanying financial tables) (the
Press Release) is attached as Exhibit 99.1 to this Current Report
on Form 8-K and hereby is incorporated by reference herein.
ITEM7.01. | Regulation FD Disclosure |
In the Press Release, FTI Consulting uses information derived
from consolidated and segment financial information that may not
be presented in its financial statements or prepared in
accordance with U.S. generally accepted accounting principles
(GAAP). Certain of these measures are not presented in accordance
with GAAP (Non-GAAP) under the rules promulgated by the
Securities and Exchange Commission. Specifically, FTI Consulting
has referred to the following non-GAAP measures:
Total Segment Operating Income |
Adjusted EBITDA |
Total Adjusted Segment EBITDA |
Adjusted EBITDA Margin |
Adjusted Net Income (Loss) |
Adjusted Earnings per Diluted Share |
FTI Consulting has included the definitions of Segment Operating
Income (Loss) and Adjusted Segment EBITDA, which are financial
measures presented in accordance with GAAP, in order to more
fully define the components of certain financial measures not
presented in accordance with GAAP (Non-GAAP). FTI Consulting
evaluates the performance of its operating segments based on
Adjusted Segment EBITDA, and Segment Operating Income (Loss) is a
component of the definition of Adjusted Segment EBITDA. FTI
Consulting defines Segment Operating Income (Loss) as a segments
share of consolidated operating income (loss). FTI Consulting
defines Total Segment Operating Income (Loss), which is a
Non-GAAP financial measure, as the total of Segment Operating
Income (Loss) for all segments, which excludes unallocated
corporate expenses. FTI Consulting uses Segment Operating Income
(Loss) for the purpose of calculating Adjusted Segment EBITDA.
FTI Consulting defines Adjusted Segment EBITDA as a segments
share of consolidated operating income (loss) before
depreciation, amortization of intangible assets, remeasurement of
acquisition-related contingent consideration, special charges and
goodwill impairment charges. FTI Consulting uses Adjusted Segment
EBITDA as a basis to internally evaluate the financial
performance of its segments because FTI Consulting believes it
reflects current core operating performance and provides an
indicator of the segments ability to generate cash. FTI
Consulting defines Adjusted Segment EBITDA Margin as Adjusted
Segment EBITDA as a percentage of a segments revenues.
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FTI Consulting defines Total Adjusted Segment EBITDA, which is a
Non-GAAP financial measure, as the total of Adjusted Segment
EBITDA for all segments, which excludes unallocated corporate
expenses. FTI Consulting defines Adjusted EBITDA, which is a
Non-GAAP financial measure, as consolidated net income before
income tax provision, other non-operating income (expense),
depreciation, amortization of intangible assets, remeasurement of
acquisition-related contingent consideration, special charges,
goodwill impairment charges and losses on early extinguishment of
debt. FTI Consulting believes that the Non-GAAP financial
measures, which exclude the effects of remeasurement of
acquisition-related contingent consideration, special charges and
goodwill impairment charges, when considered together with its
GAAP financial results and GAAP financial measures, provide
management and investors with a more complete understanding of
FTI Consultings operating results, including underlying trends.
In addition, EBITDA is a common alternative measure of operating
performance used by many of FTI Consultings competitors. It is
used by investors, financial analysts, rating agencies and others
to value and compare the financial performance of companies in
FTI Consultings industry. Therefore, FTI Consulting also believes
that these measures, considered along with corresponding GAAP
measures, provide management and investors with additional
information for comparison of its operating results with the
operating results of other companies.
FTI Consulting defines Adjusted Net Income and Adjusted Earnings
per Diluted Share (Adjusted EPS), which are Non-GAAP financial
measures, as net income and earnings per diluted share,
respectively, excluding the impact of remeasurement of
acquisition-related contingent consideration, special charges,
goodwill impairment charges and losses on early extinguishment of
debt. FTI Consulting uses Adjusted Net Income for the purpose of
calculating Adjusted EPS. Management of FTI Consulting uses
Adjusted EPS to assess total company operating performance on a
consistent basis. FTI Consulting believes that this Non-GAAP
financial measure, which excludes the effects of the
remeasurement of acquisition-related contingent consideration,
special charges, goodwill impairment charges and losses on early
extinguishment of debt, when considered together with its GAAP
financial results, provides management and investors with an
additional understanding of its business operating results,
including underlying trends.
Non-GAAP financial measures are not defined in the same manner by
all companies and may not be comparable with other similarly
titled measures of other companies. Non-GAAP financial measures
should be considered in addition to, but not as a substitute for
or superior to, the information contained in FTI Consultings
Condensed Consolidated Statements of Comprehensive Income.
Reconciliations of GAAP to Non-GAAP financial measures to the
most directly comparable GAAP financial measures are included in
the accompanying tables to the Press Release.
The information included herein, including Exhibit 99.1 furnished
herewith, shall not be deemed to be filed for purposes of
Section18 of the Securities Exchange Act of 1934, as amended (the
Exchange Act), or otherwise subject to the liabilities of that
section, nor shall it be incorporated by reference into any
filing to the Securities Act of 1933, as amended, or the Exchange
Act, regardless of any incorporation by reference language in any
such filing, except as expressly set forth by specific reference
in such filing.
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ITEM9.01. | Financial Statements and Exhibits |
(d) | Exhibits |
99.1 | Press Release dated April27, 2017, of FTI Consulting, Inc. |
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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. FTI CONSULTING, INC. (NYSE:FCN) Recent Trading Information
FTI CONSULTING, INC. (NYSE:FCN) closed its last trading session up +0.37 at 35.18 with 628,509 shares trading hands.