FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today announced preliminary estimated revenues and EPS for the second quarter of 2010 and updated guidance for the full year 2010.
Complete results for the second quarter are expected to be released the week of August 2, 2010 and may vary from preliminary estimates after completion of normal closing processes, procedures and reviews.
For the second quarter of 2010, revenues are anticipated to be approximately $350 million, compared to $360.5 million in the prior year period. Earnings per diluted share are anticipated to be approximately $0.50 to $0.55, compared to $0.69 in the prior year period.
Based on current market conditions, the Company estimates that revenues for the year 2010 will be between $1.40 billion and $1.45 billion, and EPS Before Special Charges (a non-GAAP measure) will be between $2.50 and $2.80.
Commenting on these preliminary results, Jack Dunn, FTI's president and chief executive officer said, "Our original business outlook for 2010 anticipated an improving economy and demand environment for our practices that are 'pro cyclical'. We saw increasing capital markets activity, particularly in the mergers and acquisitions ('M&A') arena which benefits all our practices and a credit market that, while more liquid, would remain a challenge to small and middle market debtors.
"Currently, we are experiencing encouraging results in our 'pro cyclical' practices. Economic Consulting grew by approximately 15 per cent in the second quarter compared to last year; Strategic Communications grew by approximately 11 per cent; and Forensic and Litigation Consulting grew approximately 5 per cent, a solid performance given very difficult comparisons to last year when several major investigations were generating significant revenue.
"However, with preliminary June results, it became apparent that, based on current economic conditions, progress in these segments would not be at the pace originally anticipated, and that the markets for bankruptcy, restructuring and M&A are significantly slower than we anticipated. Revenues in Corporate Finance/ Restructuring, our largest segment, decreased by approximately 18 per cent compared to the record results last year. Technology revenues declined approximately 14 per cent in the quarter from record levels a year ago as price pressure continued in the hosting and processing parts of the business and M&A 'second request' business lagged.
"In the original guidance we provided in February for 2010, we noted the difficulty in predicting an economy that supported robust equity and debt markets in the face of continuing high worldwide unemployment and fragile markets for local, municipal and even sovereign debt. In our revised guidance, the lower end of the range assumes a continuation of current business conditions across our segments, while the high end assumes a stabilization of restructuring activity combined with acceleration in the growth of our 'pro cyclical' practices.
"Our financial position continues to be strong; we exited the quarter with approximately $125 million in cash and cash equivalents and no borrowings under our line of credit."
Conference Call to Discuss Preliminary Second Quarter Results and Updated Guidance
FTI will hold a conference call for analysts and investors to discuss its preliminary second quarter 2010 results and updated 2010 guidance at 9:00 AM Eastern Time on Wednesday, July 7, 2010. 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, 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 3,400 employees located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at www.fticonsulting.com.
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