FTI Consulting, Inc. (FCN) Bundle
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 |
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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.