FTI Consulting Inc (FCN, Financial) released its financial results for the third quarter ended September 30, 2023, on October 27, 2023. The company reported record revenues of $893.3 million, a 15.1% increase compared to $775.9 million in the prior year quarter. The increase in revenues was primarily due to higher demand in the Corporate Finance & Restructuring, Forensic and Litigation Consulting, Strategic Communications, and Technology segments. Net income for the quarter was $83.3 million, up from $77.3 million in Q3 2022.
Financial Highlights
FTI Consulting's Q3 2023 earnings per diluted share (EPS) was $2.34, compared to $2.15 in the prior year quarter. The company's adjusted EBITDA was $118.7 million, or 13.3% of revenues, compared to $99.0 million, or 12.8% of revenues, in the prior year quarter.
Net cash provided by operating activities for the quarter was $106.7 million, compared to $128.3 million for the same period in 2022. The decrease was primarily due to cash collections not keeping pace with the increase in revenues and not sufficiently offsetting the increase in salaries and other employee cash compensation, largely related to headcount growth, as well as higher operating expenses.
Segment Performance
Revenues in the Corporate Finance & Restructuring segment increased by 23.2% to $347.6 million, while the Forensic and Litigation Consulting segment saw a 15.9% increase in revenues to $166.1 million. The Economic Consulting segment reported a slight increase in revenues to $193.9 million, and the Technology segment saw a 16.4% increase in revenues to $98.9 million. The Strategic Communications segment reported a 19.9% increase in revenues to $86.8 million.
Outlook
FTI Consulting raised the lower end of its full year 2023 guidance ranges for revenues and EPS. The company now estimates revenues for full year 2023 will range between $3.350 billion and $3.400 billion, up from the prior range of between $3.330 billion and $3.400 billion. The company now estimates EPS for full year 2023 will range between $6.70 and $7.20, up from the prior range of between $6.50 and $7.20.
CEO Commentary
Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented on the results:
This quarter we, yet again, delivered record revenues and earnings, reflecting our multi-year commitment to attract and develop the best professionals and, in turn, support their commitment to deliver for our clients as they face their greatest opportunities and challenges."
Explore the complete 8-K earnings release (here) from FTI Consulting Inc for further details.
