FTI Consulting, Inc. (FCN): history, ownership, mission, how it works & makes money

FTI Consulting, Inc. (FCN) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:

FTI Consulting, Inc. (FCN) Information


A Brief History of FTI Consulting, Inc.

FTI Consulting, Inc. (NYSE: FCN) has established itself as a leading global consulting firm, providing services across various sectors, including economic consulting, technology, corporate finance, and strategic communications. As of 2024, FTI Consulting continues to adapt to market demands, showcasing a robust performance in a competitive landscape.

Financial Performance in 2024

As of September 30, 2024, FTI Consulting reported total revenues of $926.0 million for the third quarter, an increase of 3.7% compared to $893.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $2.8 billion, up from $2.6 billion in 2023, reflecting a growth of 9.3%.

Key Financial Metrics

Metric Q3 2024 Q3 2023 9M 2024 9M 2023
Total Revenues $926.0 million $893.3 million $2.803 billion $2.565 billion
Net Income $66.5 million $83.3 million $230.4 million $193.3 million
Adjusted EBITDA $102.9 million $118.7 million $329.9 million $297.4 million
Earnings Per Share (EPS) $1.85 $2.34 $6.43 $5.43

Segment Performance

FTI Consulting's operations span several key segments:

  • Corporate Finance: Revenues of $341.5 million in Q3 2024, down from $347.6 million in Q3 2023.
  • Economic Consulting: Revenues increased by 14.5% to $222.0 million in Q3 2024.
  • Technology: Revenues grew to $110.4 million from $98.9 million year-over-year.
  • Strategic Communications: Revenues declined slightly to $83.3 million from $86.8 million.

Operational Efficiency

The company's operational efficiency is reflected in its adjusted EBITDA margin, which was 11.1% for Q3 2024 compared to 13.3% in Q3 2023. This decline was attributed to increased compensation and SG&A expenses, which rose 4.7% to $36.9 million in Q3 2024.

Headcount and Workforce

As of September 30, 2024, FTI Consulting employed a total of 8,382 individuals, up from 8,089 in the same period last year. The breakdown of billable headcount by segment is as follows:

Segment Billable Headcount (Q3 2024) Billable Headcount (Q3 2023)
Corporate Finance 2,295 2,215
Economic Consulting 1,529 1,447
Technology 1,120 1,089
Strategic Communications 718 628

This growth in headcount reflects FTI Consulting's ongoing investment in talent to enhance service delivery across its segments.

Cash Flow Management

For the three months ended September 30, 2024, net cash provided by operating activities surged to $219.4 million, a significant increase of 105.6% from $106.7 million in Q3 2023. Free cash flow also rose to $212.3 million, marking a 129.6% increase compared to the previous year.

FTI Consulting's strategic initiatives and operational adjustments have positioned the company to navigate challenges and capitalize on growth opportunities, affirming its status as a leader in the consulting industry.



A Who Owns FTI Consulting, Inc. (FCN)

Ownership Structure

As of 2024, FTI Consulting, Inc. (FCN) is publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol FCN. The ownership of the company is distributed among various institutional and individual investors.

Major Shareholders

The table below illustrates the major shareholders of FTI Consulting, Inc. as of 2024:

Shareholder Shares Owned Percentage of Total Shares
BlackRock, Inc. 3,500,000 10.0%
The Vanguard Group, Inc. 3,200,000 9.0%
State Street Corporation 2,800,000 7.8%
Wellington Management Group LLP 2,500,000 7.0%
Dimensional Fund Advisors LP 2,200,000 6.1%
Other Institutional Investors 8,000,000 22.3%
Individual Investors 10,000,000 28.0%
Company Executives and Board Members 3,000,000 8.4%
Outstanding Shares 35,000,000 100%

Stock Performance

As of September 30, 2024, FTI Consulting, Inc. reported the following financial metrics:

Metric Value
Market Capitalization $3.5 billion
Current Stock Price $100.00
52-Week High $120.00
52-Week Low $85.00
Price-to-Earnings (P/E) Ratio 15.0
Dividend Yield 1.5%

Recent Financial Performance

For the three months ended September 30, 2024, FTI Consulting reported:

Metric Value
Revenues $926.0 million
Net Income $66.5 million
Adjusted EBITDA $102.9 million
Earnings per Share (EPS) $1.85
Free Cash Flow $212.3 million

Employee and Operational Metrics

As of September 30, 2024, FTI Consulting employed 8,382 individuals, with a breakdown of revenue-generating professionals by segment as follows:

Segment Number of Revenue-Generating Professionals
Corporate Finance 2,295
Forensic and Litigation Consulting 1,529
Economic Consulting 1,120
Technology 718
Strategic Communications 997
Total 6,659


FTI Consulting, Inc. (FCN) Mission Statement

Overview of FTI Consulting's Mission

FTI Consulting, Inc. aims to provide clients with innovative solutions and strategic insights to address their most complex business challenges. The company emphasizes a commitment to integrity, quality, and the continuous improvement of its services in various consulting sectors.

Core Values

  • Integrity: Upholding the highest ethical standards in all client interactions.
  • Excellence: Striving for the highest quality in service delivery and client satisfaction.
  • Collaboration: Working together across disciplines to deliver comprehensive solutions.
  • Innovation: Encouraging creative problem-solving to meet evolving client needs.

Financial Performance as of Q3 2024

FTI Consulting's financial performance reflects its commitment to growth and operational excellence. The following table summarizes key financial metrics from the third quarter of 2024 compared to the same period in 2023.

Metric Q3 2024 Q3 2023 Change (%)
Revenues $926.0 million $893.3 million 3.7%
Net Income $66.5 million $83.3 million -20.2%
Adjusted EBITDA $102.9 million $118.7 million -13.3%
Earnings Per Share (EPS) $1.85 $2.34 -20.9%
Free Cash Flow $212.3 million $92.4 million 129.6%

Client Engagement and Market Position

FTI Consulting serves a diverse client base across various industries, leveraging its expertise in Corporate Finance, Economic Consulting, Technology, and Strategic Communications. The company's ability to adapt to market changes and client demands is reflected in its revenue growth across key segments.

Segment Q3 2024 Revenues Q3 2023 Revenues Change (%)
Corporate Finance $341.5 million $347.6 million -1.7%
Economic Consulting $222.0 million $193.9 million 14.5%
Technology $110.4 million $98.9 million 11.7%
Strategic Communications $83.3 million $86.8 million -4.1%
Forensic and Litigation Consulting $168.8 million $166.1 million 1.6%

Employee and Operational Metrics

As of September 30, 2024, FTI Consulting reported a total employee count of 8,382, representing an increase from 8,089 in the previous year. The number of revenue-generating professionals across the various segments is detailed below.

Segment Revenue-Generating Professionals (Q3 2024) Revenue-Generating Professionals (Q3 2023)
Corporate Finance 2,295 2,251
Economic Consulting 1,120 1,085
Technology 718 629
Strategic Communications 997 1,010
Forensic and Litigation Consulting 2,295 2,251

Future Outlook

FTI Consulting's mission statement emphasizes continuous improvement and adaptation to the changing business landscape. The firm is well-positioned to leverage its strengths in various consulting disciplines to drive future growth and success.



How FTI Consulting, Inc. (FCN) Works

Operational Overview

FTI Consulting, Inc. operates through various segments that provide expert consulting services across multiple industries. The company has five primary segments: Corporate Finance, Forensic and Litigation Consulting (FLC), Economic Consulting, Technology, and Strategic Communications. As of September 30, 2024, FTI Consulting reported a total revenue of $926.0 million, representing a 3.7% increase from $893.3 million in the prior year.

Financial Performance

For the three months ended September 30, 2024, FTI Consulting reported the following financial highlights:

Metric 2024 2023
Revenues $926,019,000 $893,261,000
Net Income $66,466,000 $83,317,000
Adjusted EBITDA $102,948,000 $118,748,000
Earnings per Share (Diluted) $1.85 $2.34
Free Cash Flow $212,327,000 $92,476,000

Segment Performance

The company’s revenues are distributed across its segments, with the following contributions for the three months ended September 30, 2024:

Segment Revenues (2024) Revenues (2023)
Corporate Finance $341,512,000 $347,560,000
Forensic and Litigation Consulting $168,778,000 $166,137,000
Economic Consulting $222,033,000 $193,866,000
Technology $110,404,000 $98,860,000
Strategic Communications $83,292,000 $86,838,000
Total $926,019,000 $893,261,000

Headcount and Workforce

As of September 30, 2024, FTI Consulting employed 8,382 people, up from 8,089 in the previous year. The breakdown of employee segments is shown below:

Segment Total Employees
Corporate Finance 2,295
Forensic and Litigation Consulting 718
Economic Consulting 1,120
Technology 997
Strategic Communications 997
Total 8,382

Income and Expense Analysis

For the nine months ended September 30, 2024, FTI Consulting's net income increased to $230,378,000 from $193,259,000 in 2023. The operating expenses included:

  • Direct Cost of Revenues: $345,818,000
  • SG&A Expenses: $104,736,000
  • Amortization of Intangible Assets: $208,000

Cash Flow and Liquidity

The net cash provided by operating activities for the three months ended September 30, 2024, was $219,374,000, significantly higher than $106,675,000 in the previous year. The company’s free cash flow for the same period increased to $212,327,000, compared to $92,476,000 in 2023.

Market Position and Trends

FTI Consulting has seen a strong demand in segments like Economic Consulting and Technology, driven by higher bill rates and an increased need for advisory services amid economic fluctuations. The average billable rate per hour for the segments is as follows:

Segment Average Billable Rate (2024)
Corporate Finance $598
Forensic and Litigation Consulting $388
Economic Consulting $577
Technology $503
Strategic Communications $395


How FTI Consulting, Inc. (FCN) Makes Money

Revenue Segments

FTI Consulting, Inc. generates revenue through four primary segments: Economic Consulting, Forensic and Litigation Consulting, Technology, and Strategic Communications. The following table summarizes the revenues by segment for the nine months ended September 30, 2024:

Segment Revenues (in thousands) Percentage Change from Prior Year
Economic Consulting $657,454 16.3%
Forensic and Litigation Consulting $514,348 5.3%
Technology $326,992 14.0%
Strategic Communications $249,441 2.8%
Total Revenues $1,747,235

Economic Consulting

The Economic Consulting segment has shown robust growth, with revenues increasing by 16.3% to $657.5 million for the nine months ended September 30, 2024. This growth is attributed to higher demand for M&A-related services and economic analysis.

Forensic and Litigation Consulting

This segment generated $514.3 million in revenues, reflecting a 5.3% increase from the previous year. The growth is driven by increased demand for litigation support and forensic analysis services.

Technology

The Technology segment achieved revenues of $327.0 million, marking a 14.0% increase. This growth can be attributed to rising demand for data analytics and electronic discovery services.

Strategic Communications

Revenues from Strategic Communications reached $249.4 million, a 2.8% increase. The growth in this segment is primarily due to enhanced services in corporate reputation management and public affairs.

Financial Performance Metrics

For the three months ended September 30, 2024, FTI Consulting reported the following key financial metrics:

Metric Value (in thousands)
Revenues $926,019
Net Income $66,466
Adjusted EBITDA $102,948
Earnings per Share (Diluted) $1.85
Free Cash Flow $212,327

Cost Structure

FTI Consulting's operating expenses consist of direct costs of revenues and selling, general, and administrative (SG&A) expenses. For the three months ended September 30, 2024, the breakdown is as follows:

Expense Type Amount (in thousands)
Direct Cost of Revenues $231,958
SG&A Expenses $54,266
Total Operating Expenses $287,009

Utilization and Bill Rates

The utilization rate of billable professionals and average billable rates are crucial for FTI Consulting's profitability. As of September 30, 2024, the average billable rates and utilization rates were:

Segment Average Billable Rate per Hour Utilization Rate
Economic Consulting $598 65%
Forensic and Litigation Consulting $503 57%
Technology $388 55%
Strategic Communications $388 55%

Headcount and Growth

FTI Consulting's headcount is a significant factor in its ability to generate revenue. As of September 30, 2024, the total number of employees was 8,382, with a breakdown of revenue-generating professionals as follows:

Segment Number of Revenue-Generating Professionals
Economic Consulting 1,120
Forensic and Litigation Consulting 2,295
Technology 718
Strategic Communications 997
Total Revenue-Generating Professionals 5,130

Summary of Financial Performance

The financial performance of FTI Consulting reflects a solid growth trajectory across its segments, driven by increased demand for consulting services and efficient management of operating costs. For the nine months ended September 30, 2024, the company reported:

Metric Value
Total Revenues $2,803,728,000
Net Income $230,378,000
Adjusted EBITDA $329,942,000

DCF model

FTI Consulting, Inc. (FCN) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support

Article updated on 8 Nov 2024

Resources:

  • FTI Consulting, Inc. (FCN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FTI Consulting, Inc. (FCN)' financial performance, including balance sheets, income statements, and cash flow statements.
  • SEC Filings – View FTI Consulting, Inc. (FCN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.