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FTI Consulting Reports Third Quarter 2015 Results

  • Third Quarter Revenues of $455.5 Million
  • Third Quarter Adjusted EPS of $0.53; Fully Diluted EPS of $0.25
  • Company Updates Revenue Guidance for 2015 of between $1.74 Billion and $1.78 Billion and Adjusted EPS Guidance of between $1.80 and $1.95

WASHINGTON, Oct. 29, 2015 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE:FCN) (the “Company”), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today released its financial results for the quarter ended September 30, 2015.

For the quarter, revenues increased 1.0 percent to $455.5 million compared to $451.2 million in the prior year quarter. Excluding the estimated negative impact of foreign currency translation (“FX”), revenues increased 4.1 percent compared to the prior year quarter. Fully diluted earnings per share (“EPS”) were $0.25 compared to $0.55 in the prior year quarter. EPS in the quarter includes a $19.6 million loss on early extinguishment of debt, which decreased EPS by $0.28. EPS in the prior year quarter included a special charge of $5.3 million, which decreased EPS by $0.08. Adjusted EPS and Adjusted EBITDA, which exclude the loss on extinguishment of debt and special charges, were $0.53 and $56.1 million, respectively, compared to $0.63 and $63.4 million, respectively, in the prior year quarter. Adjusted EBITDA was 12.3 percent of revenues as compared to 14.1 percent of revenues in the prior year quarter.

Adjusted EPS, Adjusted EBITDA and Adjusted Segment EBITDA are non-GAAP measures defined elsewhere in this press release and are reconciled to GAAP measures in the accompanying financial tables.

Commenting on these results, Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, said, “While we had a solid quarter, persistent headwinds facing three of our core businesses have caused us to downgrade our expectations for 2015 and our aspirational targets for 2016. Notwithstanding those headwinds, however, I am pleased that we continue to anticipate double-digit EPS growth.”

Cash Position

Net cash provided by operating activities for the quarter was $74.0 million compared to net cash provided by operating activities of $97.6 million in the prior year quarter. Cash and cash equivalents were $105.0 million at September 30, 2015 compared to $178.8 million at September 30, 2014.

Third Quarter Segment Results

Corporate Finance & Restructuring

Revenues in the Corporate Finance & Restructuring (f/k/a Corporate Finance/Restructuring) segment increased $13.4 million or 13.4 percent to $113.5 million in the quarter compared to $100.0 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $17.8 million or 17.8 percent compared to the prior year quarter. The increase in revenues was driven by higher demand for distressed service offerings in North America. Adjusted Segment EBITDA was $26.7 million, or 23.5 percent of segment revenues, compared to $15.5 million, or 15.5 percent of segment revenues in the prior year quarter. The increase in Adjusted Segment EBITDA margin was due to the higher demand for distressed service offerings, which contributed to improvements in staff leverage and utilization.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment decreased $5.6 million or 4.6 percent to $116.2 million in the quarter compared to $121.7 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues decreased $2.8 million or 2.3 percent. The decrease in revenues was driven by lower demand in the global disputes and investigations practices, which was partially offset by higher demand in the financial and enterprise data analytics practice and success fees in the health solutions practice. Adjusted Segment EBITDA was $13.4 million, or 11.5 percent of segment revenues, compared to $22.3 million, or 18.3 percent of segment revenues in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was due to lower demand in the global disputes and investigations practices coupled with the ramp up of hiring in certain core practices and higher bad debt expenses compared to recoveries in the prior year quarter. These decreases were partially offset by the increase in success fees.

Economic Consulting

Revenues in the Economic Consulting segment decreased $6.0 million or 4.9 percent to $114.5 million in the quarter compared to $120.5 million in the prior year quarter. Revenues increased $1.7 million, or 1.4 percent, from an acquisition as compared to the same prior year period. Excluding the estimated negative impact of FX, revenues declined organically $5.0 million or 4.2 percent. The decline in organic revenues was driven by decreased demand in non-mergers and acquisitions (“M&A”) related antitrust and financial economics services, which was partially offset by higher demand for M&A and international arbitration services. Adjusted Segment EBITDA was $16.7 million, or 14.5 percent of segment revenues, compared to $18.4 million, or 15.3 percent of segment revenues in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was impacted by lower revenue realization in the international arbitration, regulatory and valuation practices in the Europe, Middle East and Africa (“EMEA”) region. Lower utilization in the antitrust and financial economics practices were offset by lower variable compensation.

Technology

Revenues in the Technology segment decreased $6.8 million or 10.9 percent to $55.6 million in the quarter compared to $62.4 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues decreased $5.9 million, or 9.4 percent. The decline in revenues was impacted by a decline in consulting and a decline in other services related to financial services and cross-border investigations, which were partially offset by higher M&A-related “second request” work. Adjusted Segment EBITDA was $10.8 million, or 19.5 percent of segment revenues, compared to $17.8 million, or 28.6 percent of segment revenues in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was due to lower utilization and realized pricing related to client mix and reduced licensing revenues.

Strategic Communications

Revenues in the Strategic Communications segment increased $9.2 million or 19.7 percent to $55.7 million in the quarter compared to $46.6 million in the prior year quarter. Excluding the estimated negative impact of FX, revenues increased $12.4 million or 26.7 percent with $9.3 million of higher pass-through income and higher M&A and public affairs project revenues in EMEA and North America. Adjusted Segment EBITDA was $8.7 million, or 15.6 percent of segment revenues, compared to $6.6 million, or 14.2 percent of segment revenues in the prior year quarter. The increase in Adjusted Segment EBITDA margin was due to an increase in higher priced project revenues combined with improved staff leverage.

2015 Guidance Update

The Company now estimates that revenue for 2015 will be between $1.74 billion and $1.78 billion and Adjusted EPS will be between $1.80 and $1.95.

Third Quarter 2015 Conference Call

FTI Consulting will host a conference call for analysts and investors to discuss third quarter 2015 financial results at 9:00 a.m. Eastern Time on October 29, 2015. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website at www.fticonsulting.com.

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 4,400 employees located in 26 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management, strategic communications and restructuring. The company generated $1.76 billion in revenues during fiscal year 2014. More information can be found at www.fticonsulting.com.

Use of Non-GAAP Measures

Note: We define Segment Operating Income (Loss) as a segment’s share of consolidated operating income (Loss). We define Total Segment Operating Income (Loss) as the total of Segment Operating Income (Loss) for all segments, which excludes unallocated corporate expenses. We use Segment Operating Income (Loss) for the purpose of calculating Adjusted Segment EBITDA. We define Adjusted EBITDA as consolidated net income (loss) 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. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income (loss) before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We define Adjusted Segment EBITDA margin as Adjusted Segment EBITDA as a percentage of a segment’s share of revenue. We use Adjusted Segment EBITDA to internally evaluate the financial performance of our segments because we believe it is a useful supplemental measure which reflects current core operating performance and provides an indicator of the segment’s ability to generate cash. We also believe that these measures, when considered together with our GAAP financial results, provide management and investors with a more complete understanding of our operating results, including underlying trends, by excluding the effects of remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. In addition, EBITDA and Adjusted EBITDA are common alternative measures of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that these measures, considered along with corresponding GAAP measures, provide management and investors with additional information for comparison of our operating results to the operating results of other companies.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share (“Adjusted EPS”) as net income (loss) 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. We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that this measure, when considered together with our GAAP financial results, provides management and investors with a more complete understanding of our business operating results, including underlying trends, by excluding the effects of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges and losses on early extinguishment of debt. Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable to 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 our Consolidated Statements of Comprehensive Income. Reconciliations of GAAP to non-GAAP financial measures are included in the financial tables accompanying this press release.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions and other matters, business trends and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes,” "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections 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 be achieved, and the Company's actual results may differ materially from our expectations, beliefs and estimates. Further, preliminary results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flow in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer, the mix of the geographic locations where our clients are locoh yes ated or where services are performed, adverse financial, real estate or other market and general economic conditions, which could impact each of our segments differently, the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the heading "Item 1A Risk Factors" in the Company's most recent Form 10-K filed with the SEC and in the Company's other filings with the SEC, 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.

FINANCIAL TABLES FOLLOW



FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED September 30, 2015 AND 2014
(in thousands, except per share data)
(unaudited)
Three Months Ended
September 30,
2015 2014
Revenues$ 455,470 $ 451,178
Operating expenses
Direct cost of revenues 301,609 293,244
Selling, general and administrative expenses 105,058 102,461
Special charges - 5,347
Acquisition-related contingent consideration 159 257
Amortization of other intangible assets 2,900 3,398
409,726 404,707
Operating income 45,744 46,471
Other income (expense)
Interest income and other 2,027 1,014
Interest expense (11,696) (12,634)
Loss on early extinguishment of debt (19,589) -
(29,258) (11,620)
Income before income tax provision 16,486 34,851
Income tax provision 6,177 12,329
Net income $ 10,309 $ 22,522
Earnings per common share - basic$ 0.25 $ 0.57
Earnings per common share - diluted$ 0.25 $ 0.55
Weighted average common shares outstanding - basic 41,094 39,789
Weighted average common shares outstanding - diluted 41,982 40,819
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax of $0$ (17,229) $ (22,542)
Total other comprehensive loss, net of tax (17,229) (22,542)
Comprehensive loss$ (6,920) $ (20)

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE Nine MONTHS ENDED September 30, 2015 AND 2014
(in thousands, except per share data)
(unaudited)
Nine Months Ended
September 30,
2015 2014
Revenues$ 1,336,945 $ 1,331,054
Operating expenses
Direct cost of revenues 872,108 863,068
Selling, general and administrative expenses 316,317 317,880
Special charges - 14,711
Acquisition-related contingent consideration (1,145) (1,591)
Amortization of other intangible assets 8,919 11,466
1,196,199 1,205,534
Operating income 140,746 125,520
Other income (expense)
Interest income and other 2,840 3,465
Interest expense (36,537) (38,197)
Loss on early extinguishment of debt (19,589) -
(53,286) (34,732)
Income before income tax provision 87,460 90,788
Income tax provision 31,756 32,902
Net income $ 55,704 $ 57,886
Earnings per common share - basic$ 1.37 $ 1.46
Earnings per common share - diluted$ 1.34 $ 1.43
Weighted average common shares outstanding - basic 40,771 39,637
Weighted average common shares outstanding - diluted 41,682 40,608
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax of $0$ (24,412) $ (10,120)
Total other comprehensive loss, net of tax (24,412) (10,120)
Comprehensive income $ 31,292 $ 47,766

FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
Average Revenue-
Adjusted Billable Generating
Revenues EBITDA Margin Utilization Rate Headcount
(in thousands) (at period end)
Three Months Ended September 30, 2015
Corporate Finance/Restructuring $ 113,487 $ 26,662 23.5% 69% $ 390 830
Forensic and Litigation Consulting 116,158 13,406 11.5% 60% $ 318 1,209
Economic Consulting 114,541 16,654 14.5% 71% $ 523 594
Technology (1) 55,568 10,813 19.5% N/M N/M 354
Strategic Communications (1) 55,716 8,717 15.6% N/M N/M 594
$ 455,470 76,252 16.7% 3,581
Selling, general and administrative expenses (20,150)
Adjusted EBITDA $ 56,102 12.3%
Nine Months Ended September 30, 2015
Corporate Finance/Restructuring $ 328,812 $ 71,174 21.6% 71% $ 382 830
Forensic and Litigation Consulting 365,554 55,456 15.2% 65% $ 315 1,209
Economic Consulting 329,320 43,502 13.2% 72% $ 506 594
Technology (1) 172,048 33,052 19.2% N/M N/M 354
Strategic Communications (1) 141,211 20,100 14.2% N/M N/M 594
$ 1,336,945 223,284 16.7% 3,581
Corporate (52,725)
Adjusted EBITDA $ 170,559 12.8%
Three Months Ended September 30, 2014
Corporate Finance/Restructuring $ 100,041 $ 15,534 15.5% 70% $ 396 722
Forensic and Litigation Consulting 121,732 22,260 18.3% 68% $ 323 1,135
Economic Consulting 120,494 18,426 15.3% 77% $ 535 551
Technology (1) 62,359 17,835 28.6% N/M N/M 335
Strategic Communications (1) 46,552 6,605 14.2% N/M N/M 549
$ 451,178 80,660 17.9% 3,292
Corporate (17,265)
Adjusted EBITDA $ 63,395 14.1%
Nine Months Ended September 30, 2014
Corporate Finance/Restructuring $ 298,043 $ 45,618 15.3% 71% $ 388 722
Forensic and Litigation Consulting 362,242 71,025 19.6% 71% $ 323 1,135
Economic Consulting 344,572 49,499 14.4% 77% $ 517 551
Technology (1) 183,142 50,287 27.5% N/M N/M 335
Strategic Communications (1) 143,055 15,168 10.6% N/M N/M 549
$ 1,331,054 231,597 17.4% 3,292
Corporate (57,103)
Adjusted EBITDA $ 174,494 13.1%


(1) The majority of the Technology and Strategic Communications segments' revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.


FTI CONSULTING, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE THREE AND Nine MONTHS ENDED September 30, 2015 AND 2014
(in thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2015 2014 2015 2014
Net income $ 10,309 $ 22,522 $ 55,704 $ 57,886
Add back:
Special charges, net of tax effect (1) - 3,154 - 8,676
Remeasurement of acquisition-related contingent consideration, net of tax effect (2) - - (1,005) (1,514)
Loss on early extinguishment of debt, net of tax effect (3) 11,881 - 11,881 -
Adjusted net income $ 22,190 $ 25,676 $ 66,580 $ 65,048
Earnings per common share – diluted $ 0.25 $ 0.55 $ 1.34 $ 1.43
Add back:
Special charges, net of tax effect (1) - 0.08 - 0.21
Remeasurement of acquisition-related contingent consideration, net of tax effect (2) - - (0.02) (0.04)
Loss on early extinguishment of debt, net of tax effect (3) 0.28 - 0.28 -
Adjusted EPS – diluted $ 0.53 $ 0.63 $ 1.60 $ 1.60
Weighted average number of common shares outstanding – diluted 41,982 40,819 41,682 40,608


(1) The tax effect takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). As a result, the effective tax rate for the adjustments related to special charges for the three and nine months ended September 30, 2014 was 41.0%. The tax expense related to the adjustment for special charges for the three and nine months ended September 30, 2014 was $2.2 million, or a $0.05 impact on diluted earnings per share, and $6.0 million, or a $0.15 impact on diluted earnings per share, respectively. During the three and nine months ended, September 30, 2015, there were no special charges.
(2) The tax effect takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). As a result, the effective tax rates for the adjustments related to the remeasurement of acquisition-related contingent consideration for the nine months ended September 30, 2015 was 40.0%. The tax expense related to the remeasurement of acquisition-related contingent consideration for the nine months ended September 30, 2015 was $0.7 million, or a $0.02 impact on diluted earnings per share. The effective tax rates for the adjustments related to the remeasurement of acquisition-related contingent consideration for the nine months ended September 30, 2014 was 36.5%. The tax expense related to the remeasurement of acquisition-related contingent consideration for the nine months ended September 30, 2014 was $0.9 million, or a $0.02 impact on diluted earnings per share. There were no adjustments related to the remeasurement of acquisition-related contingent consideration for the three months ended September 30, 2015 and 2014.
(3) The tax effect takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). As a result, the effective tax rates for the loss on early extinguishment of debt for the three and nine months ended September 30, 2015 was 39.3%. The tax expense related to the loss on early extinguishment of debt for the three and nine months ended September 30, 2015 was $7.7 million, or a $0.18 impact on diluted earnings per share. During the three and nine months ended, September 30, 2014, there was no loss on early extinguishment of debt.


RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA
(in thousands)
Three Months Ended September 30, 2015 Corporate Finance / Restructuring Forensic and
Litigation Consulting
Economic Consulting Technology Strategic Communications Corp HQ Total
Net income $ 10,309
Interest income and other (2,027)
Interest expense 11,696
Loss on extinguishment of debt 19,589
Income tax provision 6,177
Operating income $ 25,112 $ 11,944 $ 15,498 $ 6,830 $ 7,235 $ (20,875) $ 45,744
Depreciation and amortization 677 925 848 3,784 499 725 7,458
Amortization of other intangible assets 873 537 308 199 983 - 2,900
Adjusted EBITDA $ 26,662 $ 13,406 $ 16,654 $ 10,813 $ 8,717 $ (20,150) $ 56,102
Nine Months Ended September 30, 2015
Net income $ 55,704
Interest income and other (2,840)
Interest expense 36,537
Loss on extinguishment of debt 19,589
Income tax provision 31,756
Operating income $ 67,782 $ 50,894 $ 40,076 $ 21,493 $ 15,558 $ (55,057) $ 140,746
Depreciation and amortization 2,141 2,862 2,686 10,969 1,579 2,332 22,569
Amortization of other intangible assets 2,742 1,700 924 590 2,963 - 8,919
Remeasurement of acquisition-related contingent consideration (1,491) - (184) - - - (1,675)
Adjusted EBITDA $ 71,174 $ 55,456 $ 43,502 $ 33,052 $ 20,100 $ (52,725) $ 170,559
Three Months Ended September 30, 2014 Corporate Finance / Restructuring Forensic and
Litigation Consulting
Economic Consulting Technology Strategic Communications Corp HQ Total
Net income $ 22,522
Interest income and other (1,014)
Interest expense 12,634
Income tax provision 12,329
Operating income $ 13,406 $ 20,276 $ 17,245 $ 13,741 $ 4,875 $ (23,072) $ 46,471
Depreciation and amortization 869 1,023 934 3,857 610 886 8,179
Amortization of other intangible assets 1,175 653 235 218 1,117 - 3,398
Special charges 84 308 12 19 3 4,921 5,347
Adjusted EBITDA $ 15,534 $ 22,260 $ 18,426 $ 17,835 $ 6,605 $ (17,265) $ 63,395
Nine Months Ended September 30, 2014
Net income $ 57,886
Interest income and other (3,465)
Interest expense 38,197
Income tax provision 32,902
Operating income $ 39,081 $ 66,517 $ 46,515 $ 37,712 $ 9,910 $ (74,215) $ 125,520
Depreciation and amortization 2,514 3,057 2,996 11,902 1,884 2,827 25,180
Amortization of other intangible assets 4,601 2,077 763 654 3,371 - 11,466
Special charges 84 308 12 19 3 14,285 14,711
Remeasurement of acquisition-related contingent consideration (662) (934) (787) - - - (2,383)
Adjusted EBITDA $ 45,618 $ 71,025 $ 49,499 $ 50,287 $ 15,168 $ (57,103) $ 174,494

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE Nine MONTHS ENDED September 30, 2015 AND 2014
(in thousands)
(unaudited)
Nine Months Ended
September 30,
2015 2014
Operating activities
Net income $ 55,704 $ 57,886
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 22,569 26,318
Amortization of other intangible assets 8,919 11,466
Selling, general and administrative expenses (1,145) (1,591)
Provision for doubtful accounts 10,364 11,896
Non-cash share-based compensation 14,356 18,930
Non-cash interest expense 2,029 2,020
Loss on early extinguishment of debt 19,589 -
Other (674) (358)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, billed and unbilled (84,411) (107,847)
Notes receivable (334) (18,266)
Prepaid expenses and other assets (4,396) 7,099
Accounts payable, accrued expenses and other 10,158 10,538
Income taxes 15,371 8,315
Accrued compensation (19,518) (16,958)
Billings in excess of services provided (5,278) 11,031
Net cash provided by operating activities 43,303 20,479
Investing activities
Payments for acquisition of businesses, net of cash received (575) (15,684)
Purchases of property and equipment (24,674) (31,797)
Other 94 69
Net cash used in investing activities (25,155) (47,412)
Financing activities
Borrowings under revolving line of credit, net 220,000 -
Payments of long-term debt (425,671) (6,014)
Payments of debt financing fees (3,701) -
Purchase and retirement of common stock - (4,367)
Net issuance of common stock under equity compensation plans 13,931 (29)
Deposits 2,406 12,956
Other 124 (1,036)
Net cash (used in) provided by financing activities (192,911) 1,510
Effect of exchange rate changes on cash and cash equivalents (3,943) (1,632)
Net decrease in cash and cash equivalents (178,706) (27,055)
Cash and cash equivalents, beginning of period 283,680 205,833
Cash and cash equivalents, end of period$ 104,974 $ 178,778

FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AT September 30, 2015 AND DECEMBER 31, 2014
(in thousands, except per share amounts)
September 30, December 31,
2015 2014
Assets(unaudited)
Current assets
Cash and cash equivalents$ 104,974 $ 283,680
Accounts receivable:
Billed receivables 426,947 381,464
Unbilled receivables 310,778 248,462
Allowance for doubtful accounts and unbilled services (183,325) (144,825)
Selling, general and administrative expenses 554,400 485,101
Current portion of notes receivable 35,097 27,208
Prepaid expenses and other current assets 55,166 60,852
Current portion of deferred tax assets 38,842 27,332
Total current assets 788,479 884,173
Property and equipment, net of accumulated depreciation 77,716 82,163
Goodwill 1,199,490 1,211,689
Other intangible assets, net of amortization 67,252 77,034
Notes receivable, net of current portion 112,711 122,149
Other assets 48,364 53,319
Total assets$ 2,294,012 $ 2,430,527
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable, accrued expenses and other$ 101,464 $ 99,494
Accrued compensation 203,492 220,959
Current portion of long-term debt - 11,000
Billings in excess of services provided 29,554 35,639
Total current liabilities 334,510 367,092
Long-term debt, net of current portion 520,000 700,000
Deferred income taxes 178,180 161,932
Other liabilities 98,919 98,757
Total liabilities 1,131,609 1,327,781
Stockholders' equity
Preferred stock, $0.01 par value; shares authorized ― 5,000; none outstanding - -
Common stock, $0.01 par value; shares authorized ― 75,000; shares issued and outstanding ― 41,887 (2015) and 41,181 (2014) 419 412
Additional paid-in capital 421,532 393,174
Retained earnings 845,132 789,428
Accumulated other comprehensive loss (104,680) (80,268)
Total stockholders' equity 1,162,403 1,102,746
Total liabilities and stockholders' equity$ 2,294,012 $ 2,430,527


Investor Contact: Abaigeal Healy +1.617.747.1727 abaigeal.healy@fticonsulting.com Media Contact: Nicole Madison +1.212.850.5647 nicole.madison@fticonsulting.com

Source:FTI Consulting, Inc.