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FTI Consulting (FCN)

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 6,300 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $2.46 billion in revenues during fiscal year 2020.

Company profile

Ticker
FCN
Exchange
CEO
Steven Gunby
Employees
Incorporated
Fiscal year end
Former names
FORENSIC TECHNOLOGIES INTERNATIONAL CORP, FTI CONSULTING INC
SEC CIK
Subsidiaries
Andersch AG • Andersch digital GmbH • Andersch Management GmbH • Compass Lexecon (Belgium) SRL • Compass Lexecon Economic Consulting (Beijing) Co., Ltd. • Compass Lexecon LLC • [fka LI Acquisition Company • Compass Lexecon Spain S.r.l. • Compass Lexecon SRL • FD MWA Holdings Inc. ...
IRS number
521261113

FCN stock data

Analyst ratings and price targets

Last 3 months

Calendar

28 Jul 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 255.73M 255.73M 255.73M 255.73M 255.73M 255.73M
Cash burn (monthly) 5.14M 95.42K (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 7.46M 138.59K n/a n/a n/a n/a
Cash remaining 248.27M 255.59M n/a n/a n/a n/a
Runway (months of cash) 48.3 2678.7 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
6 Jun 22 Gerard E Holthaus Common Stock Gift Dispose G No No 0 1,000 0 68,977
2 Jun 22 Costamagna Claudio Common Stock Payment of exercise Dispose F No No 169.68 401 68.04K 46,818
1 Jun 22 Nicole S Jones Common Stock Grant Acquire A No No 0 1,492 0 1,809
1 Jun 22 Bacon Brenda J Common Stock Grant Acquire A No No 0 1,492 0 16,834
1 Jun 22 Gerard E Holthaus Common Stock Grant Acquire A No No 0 1,492 0 69,977
13F holders Current Prev Q Change
Total holders 326 2 +16200.0%
Opened positions 324 0 NEW
Closed positions 0 315 EXIT
Increased positions 1 1
Reduced positions 1 1
13F shares Current Prev Q Change
Total value 5.49B 1.23B +347.2%
Total shares 34.9M 8M +336.3%
Total puts 3.8K 0 NEW
Total calls 16K 0 NEW
Total put/call ratio 0.2
Largest owners Shares Value Change
Mawer Investment Management 4.44M $697.6M +2.8%
Kayne Anderson Rudnick Investment Management 3.59M $564.06M -2.5%
Vanguard 3.17M $498.15M NEW
BLK Blackrock 2.82M $443.71M NEW
Black Creek Investment Management 1.41M $222.18M NEW
ATAC Neuberger Berman 1.23M $193.26M NEW
Dimensional Fund Advisors 1.05M $165.27M NEW
Capital International Investors 973.41K $153.04M NEW
STT State Street 948.93K $149.19M NEW
Brown Advisory 845.8K $132.95M NEW
Largest transactions Shares Bought/sold Change
Vanguard 3.17M +3.17M NEW
BLK Blackrock 2.82M +2.82M NEW
Black Creek Investment Management 1.41M +1.41M NEW
ATAC Neuberger Berman 1.23M +1.23M NEW
Dimensional Fund Advisors 1.05M +1.05M NEW
Capital International Investors 973.41K +973.41K NEW
STT State Street 948.93K +948.93K NEW
Brown Advisory 845.8K +845.8K NEW
Fuller & Thaler Asset Management 743.01K +743.01K NEW
Fiduciary Management 596.62K +596.62K NEW

Financial report summary

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Risks
  • The COVID-19 pandemic has had, and could continue to have, a negative impact on our financial results and it could potentially have a material adverse impact on our business, financial condition and results of operations, the extent of which is not predictable.
  • The COVID-19 pandemic has impacted, and could continue to impact, our segments and practices, the types of services they provide, and the regions in which we operate, differently.
  • The COVID-19 pandemic could heighten risks related to, or otherwise negatively impact the effectiveness of, cybersecurity, information technology, financial reporting and other corporate functions that the Company relies upon to operate.
  • The COVID-19 pandemic could adversely impact the health and welfare of our client-facing professionals, as well as our executive officers and other employees of our Company, which could have a material adverse effect on our ability to secure or perform client engagements and our results of operations.
  • Our revenues, operating income and cash flows are likely to fluctuate.
  • If we do not effectively manage the utilization of our professionals or billable rates, our financial results could decline.
  • Our segments may face risks of fee non-payment, clients may seek to renegotiate existing fees and contract arrangements, and clients may not accept billable rate or price increases, which could result in loss of clients, fee write-offs, reduced revenues and less profitable business.
  • Our Technology segment faces certain risks, including (i) industry consolidation and a highly competitive environment, (ii) downward pricing pressure, (iii) data breach, (iv) technology changes and obsolescence, and (v) failure to protect intellectual property ("IP") used by the segment, which individually or together could cause the financial results and prospects of this segment and the Company to decline.
  • We face certain risks relating to cybersecurity, the failure to protect the confidentiality of client information against misuse or disclosure, and the use or misuse of social media.
  • We may not manage our growth effectively, and our profitability may suffer.
  • Our operations involve financial and business risks that differ among the jurisdictions in which we operate.
  • Failure to comply with governmental, regulatory and legal requirements or with our company-wide Code of Ethics and Business Conduct, Anti-Corruption Policy, Policy on Inside Information and Insider Trading, and other policies could lead to governmental or legal proceedings that could expose us to significant liabilities and damage our reputation.
  • We may be required to recognize goodwill impairment charges, which could materially affect our financial results.
  • The compromise of confidential or proprietary information could damage our reputation, harm our businesses and adversely impact our financial results.
  • Governmental focus on data privacy and security has increased, and could continue to increase, our costs of operations.
  • Changes to corporate income tax rates, tax legislation, tax rules and regulations and tax treaties in the jurisdictions in which we conduct business may substantially negatively impact our effective tax rate and financial results of operations and increase our cash tax payment obligations.
  • We are exposed to certain physical and regulatory risks related to climate change, which could adversely affect our business, financial condition and results of operations.
  • Increasing scrutiny and changing expectations from governmental organizations, investors, clients and our colleagues with respect to our ESG-related practices and those of our clients may impose additional costs on us or expose us to new or additional risks.
  • Our business depends on our ability to use and access information systems, and modernize or replace such systems from time to time, and failure to effectively maintain such systems or modernize or replace systems could materially adversely affect our business and operations and harm our reputation.
  • Our failure to recruit and retain qualified professionals and manage headcount needs and utilization could negatively affect our financial results and our ability to staff client engagements, maintain relationships with clients and drive future growth.
  • We incur substantial costs to hire and retain our professionals, and we expect these costs to continue and to grow.
  • We rely heavily on our executive officers and the heads of our segments and industry and regional leaders for the success of our business, the loss of whom may negatively impact our business and operations.
  • Professionals may leave our Company to form or join competitors, and we may not have, or may choose not to pursue, legal recourse against such professionals.
  • Our failure to achieve and maintain a diverse and inclusive workforce may impair our ability to attract and retain qualified employees, win and maintain clients or attract investment, which could have a material adverse effect on our business and financial results, as well as reputational harm.
  • If we are unable to accept or continue client engagements due to real or perceived relationship issues, our revenues, growth, client engagements and prospects may be negatively affected.
  • Claims involving our services or adverse publicity could harm our overall professional reputation and our ability to compete and attract business or hire or retain qualified professionals.
  • We may incur significant costs and may lose engagements as a result of claims by our clients regarding our services.
  • Our clients may terminate our engagements with little or no notice and without penalty, which may result in unexpected declines in our utilization and revenues.
  • We may not have, or may choose not to pursue, legal remedies against clients that terminate their engagements.
  • Failure of our internal information technology systems controls may harm our overall professional reputation and disrupt our business operations.
  • If we fail to compete effectively, we may miss business opportunities or lose existing clients, and our revenues and profitability may decline.
  • We may face competition from parties who sell us their businesses and from professionals who cease working for us.
  • We may have difficulty integrating acquisitions or convincing clients to allow assignment of their engagements to us, which can increase costs of, and reduce the benefits we receive from, acquisitions.
  • We may have different systems of governance and management from a company we acquire or its parent, which could cause professionals who join us from an acquired company to leave us.
  • Our leverage could adversely affect our financial condition or operating flexibility if the Company fails to comply with operating covenants under applicable debt instruments.
  • We and our subsidiaries may incur significant additional indebtedness.
  • We may not be able to generate sufficient cash to service our indebtedness, and we may be forced to take actions to satisfy our payment obligations under our indebtedness, which may not be successful.
  • Our Credit Facility is guaranteed by substantially all of our domestic subsidiaries and will be required to be guaranteed by future domestic subsidiaries, including those that join us in connection with acquisitions.
  • We may not have the ability to raise the funds necessary to settle conversions of the 2023 Convertible Notes, repurchase the 2023 Convertible Notes upon a fundamental change or repay the 2023 Convertible Notes at the August 15, 2023 maturity date, and the agreements governing our other indebtedness contain, and our future debt agreements may contain, limitations on our ability to pay cash upon conversion or repurchase of the 2023 Convertible Notes.
  • The conditional conversion feature of the 2023 Convertible Notes, if triggered, may adversely affect our financial condition and operating results.
  • Our variable rate indebtedness will subject us to interest rate risk, which could cause our annual debt service obligations to increase significantly.
Management Discussion
  • FTI Consulting, Inc. ("FTI Consulting," "we," "us" or the "Company") is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. Individually, each of our segments and practices is staffed with experts recognized for the depth of their knowledge and a track record of making an impact. Collectively, FTI Consulting offers a comprehensive suite of services designed to assist clients across the business cycle, from proactive risk management to rapid response to unexpected events and dynamic environments.
  • Our Corporate Finance & Restructuring (“Corporate Finance”) segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world. Our clients include companies, boards of directors, investors, private equity sponsors, lenders, and other financing sources and creditor groups, as well as other parties-in-interest. We deliver a wide range of services centered around three core offerings: business transformation, transactions and turnaround & restructuring.
  • Our Forensic and Litigation Consulting (“FLC”) segment provides law firms, companies, government entities, private equity firms and other interested parties with a multidisciplinary and independent range of services in risk and investigations and disputes, including a focus on highly regulated industries such as our construction & environmental solutions and health solutions services. These services are supported by our data & analytics solutions, which help our clients analyze large, disparate sets of data related to their business operations and support our clients during regulatory inquiries and commercial disputes. We deliver a wide range of services centered around five core offerings: construction & environmental solutions, data & analytics, disputes, health solutions and risk and investigations.

Content analysis

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New words: talent
Removed: cost, improvement, judgment, leading, pending, position, York