GlobeNewswire Inc | Jul 29, 2021 07:30AM EDT

July 29, 2021

-- Second Quarter 2021 Revenues of $711.5 Million, Up 17.0% Compared to $607.9 Million in Prior Year Quarter -- Second Quarter 2021 EPS of $1.77, Up 39.4% Compared to $1.27 in Prior Year Quarter; Second Quarter 2021 Adjusted EPS of $1.74, Up 31.8% Compared to $1.32 in Prior Year Quarter -- Company Raises Full Year 2021 Guidance Ranges for Revenues and EPS and Raises Lower End of Guidance Range for Full Year 2021 Adjusted EPS

WASHINGTON, July 29, 2021 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the quarter ended June 30, 2021.

Second quarter 2021 revenues of $711.5million increased $103.6million, or 17.0%, compared to revenues of $607.9million in the prior year quarter. Excluding the estimated positive impact from foreign currency translation ("FX"), revenues increased $78.9 million, or 13.0%, compared to the prior year quarter. Acquisition-related revenues contributed $19.1 million in the quarter. Excluding the estimated positive impact of FX and acquisition-related revenues, revenues increased $59.8 million, or 9.8%, compared to the prior year quarter, primarily due to higher demand in the Forensic and Litigation Consulting, Technology and Economic Consulting segments. Net income of $62.8 million compared to $48.2 million in the prior year quarter. The increase in net income was primarily due to higher operating profits in the Forensic and Litigation Consulting, Technology and Economic Consulting segments, which was partially offset by lower operating profits in the Corporate Finance & Restructuring segment compared to the prior year quarter.

Adjusted EBITDA of $92.3 million, or 13.0% of revenues, compared to $75.8million, or 12.5% of revenues, in the prior year quarter. The increase in Adjusted EBITDA was due to higher revenues, which was partially offset by higher compensation, primarily related to a 10.1% increase in billable headcount and higher variable compensation, as well as an increase in selling, general and administrative ("SG&A") expenses compared to the prior year quarter.

Second quarter 2021 diluted earnings per share ("EPS") of $1.77 compared to $1.27 in the prior year quarter. Second quarter 2021 EPS included a $3.1 million fair value remeasurement of acquisition-related contingent consideration, which increased EPS by $0.09 and $2.4 millionof non-cash interest expense related to the Company's2.0% convertible senior notes due 2023 ("2023 Convertible Notes"), which decreased EPS by$0.06. Second quarter 2021 Adjusted EPS of $1.74, which excludes the fair value remeasurement and non-cash interest expense, compared to Adjusted EPS of $1.32 in the prior year quarter.

Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, Our continued strong results reflect our multi-year commitment to attract, develop and support the best professionals and thereby invest behind our leading positions and emerging adjacencies. That powerful trajectory leaves me ever more convinced of our ability going forward to help our clients with an ever-increasing share of their most significant challenges and opportunities.

Cash Position and Capital AllocationNet cash provided by operating activities of $125.6million for the quarter ended June 30, 2021 compared to $153.0million for the quarter ended June 30, 2020. The year-over-year decrease in net cash provided by operating activities was largely due to an increase in salaries, primarily related to headcount growth, which was partially offset by an increase in cash collected compared to the prior year quarter.

Cash and cash equivalents of $256.9 million at June 30, 2021 compared to $304.2 million at June 30, 2020 and $233.4 million at March 31, 2021. Total debt, net of cash, of $159.4 million at June 30, 2021 compared to $47.0million at June 30, 2020 and $252.8 million at March 31, 2021. The sequential decrease in total debt, net of cash, was primarily due to repayment of borrowings under the Companys senior secured bank revolving credit facility.

There were no share repurchases during the quarter ended June 30, 2021. As of June 30, 2021, approximately $167.1million remained available for common stock repurchases under the Companys stock repurchase authorization.

Second Quarter 2021 Segment Results

Corporate Finance & RestructuringRevenues in the Corporate Finance & Restructuring segment decreased $15.0 million, or 6.1%, to $231.0 million in the quarter, compared to $246.0 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues decreased $24.9million, or 10.1%, compared to the prior year quarter. Acquisition-related revenues contributed $17.0 million in the quarter. Excluding the estimated positive impact from FX and acquisition-related revenues, revenues decreased $41.9 million, or 17.0%, due to lower demand for restructuring services, which was partially offset by higher demand for transactions and business transformation services compared to the prior year quarter. Adjusted Segment EBITDA of $40.2 million, or 17.4% of segment revenues, compared to $76.3 million, or 31.0% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was due to lower revenues and higher compensation, primarily related to a 19.8% increase in billable headcount compared to the prior year quarter.

Forensic and Litigation ConsultingRevenues in the Forensic and Litigation Consulting segment increased $44.4 million, or 41.7%, to $150.7 million in the quarter, compared to $106.4 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $41.3 million, or 38.8%. Acquisition-related revenues contributed $2.1 million in the quarter. Excluding the estimated positive impact from FX and acquisition-related revenues, revenues increased $39.2 million, or 36.9%, primarily due to higher demand for investigations and disputes services. Adjusted Segment EBITDA of $18.0 million, or 11.9% of segment revenues, compared to a loss of $9.0 million in the prior year quarter. The increase in Adjusted Segment EBITDA was due to higher revenues, which was partially offset by higher compensation related to an increase in variable compensation and a 5.5% increase in billable headcount compared to the prior year quarter.

Economic ConsultingRevenues in the Economic Consulting segment increased $31.8 million, or 21.0%, to $183.3 million in the quarter, compared to $151.5 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $25.3 million, or 16.7%, primarily due to higher demand for non-merger and acquisition ("M&A")-related antitrust and financial economics services, which was partially offset by lower realized rates and demand for M&A-related antitrust services compared to the prior year quarter. Adjusted Segment EBITDA of $30.7 million, or 16.7% of segment revenues, compared to $21.7 million, or 14.3% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was due to higher revenues, which was partially offset by higher compensation related to an increase in variable compensation and a 9.1% increase in billable headcount compared to the prior year quarter.

TechnologyRevenues in the Technology segment increased $31.6 million, or 67.0%, to $78.6 million in the quarter, compared to $47.1 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $29.9million, or 63.4%, primarily due to higher demand for cross-border investigations, litigation and M&A-related second request services compared to the prior year quarter. Adjusted Segment EBITDA of $18.5 million, or 23.5% of segment revenues, compared to $6.4 million, or 13.7% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was due to higher revenues, which was partially offset by an increase in compensation and higher SG&A expenses compared to the prior year quarter.

Strategic CommunicationsRevenues in the Strategic Communications segment increased $10.9 million, or 19.2%, to $67.8 million in the quarter, compared to $56.9 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $7.3 million, or 12.9%, primarily due to higher demand for corporate reputation and public affairs services compared to the prior year quarter. Adjusted Segment EBITDA of $13.5 million, or 19.9% of segment revenues, compared to $10.0 million, or 17.6% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was due to higher revenues, which was partially offset by an increase in compensation and higher SG&A expenses compared to the prior year quarter.

2021 GuidanceAfter a record first half of 2021, the Company is raising its full year 2021 guidance ranges for revenues and EPS, and raising the lower end of its Adjusted EPS guidance range for full year 2021. The Company now estimates that revenues will range between $2.700 billion and $2.800 billion. This compares to the previous range of between $2.575 billion and $2.700 billion. The Company now estimates that EPS will range between $5.89 and $6.39. This compares to the previous range of between $5.60 and $6.30. The Company now estimates that Adjusted EPS will range between $6.00 and $6.50. This compares to the previous range of between $5.80 and $6.50. The $0.11 per share variance between EPS and Adjusted EPS guidance for full year 2021 includes estimated non-cash interest expense of $0.20 per share related to the Company's 2023 Convertible Notes and the second quarter 2021 $0.09 per share gain related to the fair value remeasurement of acquisition-related contingent consideration.

Second Quarter 2021 Conference CallFTI Consulting will host a conference call for analysts and investors to discuss second quarter 2021 financial results at 9:00 a.m. Eastern Time on Thursday, July29, 2021. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Companys investor relations website here.

About FTI ConsultingFTI 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 6,400 employees located in 29 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. More information can be found at www.fticonsulting.com.

Non-GAAP Financial MeasuresIn the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures")under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures:

-- Total Segment Operating Income -- Adjusted EBITDA -- Total Adjusted Segment EBITDA -- Adjusted EBITDA Margin -- Adjusted Net Income -- Adjusted Earnings per Diluted Share -- Free Cash Flow

We have included the definitions of Segment Operating Income (Loss) and Adjusted Segment EBITDA, which are GAAP financial measures, below in order to more fully define the components of certain non-GAAP financial measures presented in this press release. We define Segment Operating Income (Loss) as a segments share of consolidated operating income. We define Total Segment Operating Income, which is a non-GAAP financial measure, 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 Segment EBITDA as a segments share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects current core operating performance and provides an indicator of the segments ability to generate cash.

We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income 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, gain or loss on sale of a business and losses on early extinguishment of debt. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure 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 non-GAAP financial measures, considered along with corresponding GAAP financial measures, provide management and investors with additional information for comparison of our operating results with the operating results of other companies. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and EPS, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt, non-cash interest expense on convertible notes and the gain or loss on sale of a business. 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 these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with an additional understanding of our business operating results, including underlying trends.

We define Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by (used in) operating activities less cash payments for purchases of property and equipment. We believe this non-GAAP financial measure, when considered together with our GAAP financial results, provides management and investors with an additional understanding of the Companys ability to generate cash for ongoing business operations and other capital deployment.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with 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 Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows. Reconciliations of these non-GAAP financial measures to the most directly comparable 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, share repurchases 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 managements expectations, beliefs and estimates will be achieved, and the Company's actual results may differ materially from our expectations, beliefs and estimates. Further, unaudited quarterly results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flows 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 located or where services are performed; fluctuations in the price per share of our common stock; adverse financial, real estate or other market and general economic conditions; the impact of the COVID-19 pandemic and related events that are beyond our control, which could affect our segments, practices and the geographic regions in which we conduct business differently and adversely; and other future events, which could impact each of our segments, practices and the geographic regions in which we conduct business differently and could be outside of our control; the pace and timing of the consummation and integration of future acquisitions; the Companys ability to realize cost savings and efficiencies; competitive and general economic conditions; retention of staff and clients; new laws and regulations or changes thereto; and other risks described under the heading "Item 1A, Risk Factors" in the Companys Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC, and in the Companys other filings with the SEC. 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 BALANCE SHEETS(in thousands, except per share amounts)

June 30, December 31, 2021 2020 (Unaudited) Assets Current assets Cash and cash equivalents $ 256,875 $ 294,953 Accounts receivable, net 846,121 711,357 Current portion of notes receivable 32,093 35,253 Prepaid expenses and other current assets 78,373 88,144 Total current assets 1,213,462 1,129,707 Property and equipment, net 117,477 101,642 Operating lease assets 223,618 156,645 Goodwill 1,240,057 1,234,879 Intangible assets, net 37,653 41,550 Notes receivable, net 55,675 61,121 Other assets 50,485 51,819 Total assets $ 2,938,427 $ 2,777,363 Liabilities and Stockholders' Equity Current liabilities Accounts payable, accrued expenses and other $ 156,736 $ 170,066 Accrued compensation 368,882 455,933 Billings in excess of services provided 36,944 44,172 Total current liabilities 562,562 670,171 Long-term debt, net 391,581 286,131 Noncurrent operating lease liabilities 230,133 161,677 Deferred income taxes 169,009 158,342 Other liabilities 95,932 100,861 Total liabilities 1,449,217 1,377,182 Stockholders' equity Preferred stock, $0.01 par value; shares ? ? authorized ? 5,000; none outstandingCommon stock, $0.01 par value; sharesauthorized ? 75,000; shares issued and 343 345 outstanding ? 34,282 (2021) and 34,481 (2020)Additional paid-in capital 4,270 ? Retained earnings 1,590,467 1,506,271 Accumulated other comprehensive loss (105,870 ) (106,435 ) Total stockholders' equity 1,489,210 1,400,181 Total liabilities and stockholders' equity $ 2,938,427 $ 2,777,363

FTI CONSULTING, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(in thousands, except per share data)

Three Months Ended June 30, 2021 2020 (Unaudited)Revenues $ 711,486 $ 607,852 Operating expenses Direct cost of revenues 490,722 413,011 Selling, general and administrative expenses 133,930 126,928 Amortization of intangible assets 2,854 2,314 627,506 542,253 Operating income 83,980 65,599 Other income (expense) Interest income and other (912 ) 2,202 Interest expense (5,294 ) (5,157 ) (6,206 ) (2,955 ) Income before income tax provision 77,774 62,644 Income tax provision 14,992 14,470 Net income $ 62,782 $ 48,174 Earnings per common share ? basic $ 1.88 $ 1.33 Weighted average common shares outstanding ? basic 33,458 36,169 Earnings per common share ? diluted $ 1.77 $ 1.27 Weighted average common shares outstanding ? 35,374 37,852 dilutedOther comprehensive income, net of tax Foreign currency translation adjustments, net of $ 5,807 $ 9,568 tax expense of $0Total other comprehensive income, net of tax 5,807 9,568 Comprehensive income $ 68,589 $ 57,742

FTI CONSULTING, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(in thousands, except per share data)

Six Months Ended June 30, 2021 2020 (Unaudited)Revenues $ 1,397,763 $ 1,212,445 Operating expenses Direct cost of revenues 959,146 815,258 Selling, general and administrative expenses 260,476 253,887 Amortization of intangible assets 5,655 4,645 1,225,277 1,073,790 Operating income 172,486 138,655 Other income (expense) Interest income and other 122 7,219 Interest expense (10,091 ) (10,018 ) (9,969 ) (2,799 ) Income before income tax provision 162,517 135,856 Income tax provision 35,239 30,935 Net income $ 127,278 $ 104,921 Earnings per common share ? basic $ 3.80 $ 2.89 Weighted average common shares outstanding ? 33,470 36,292 basicEarnings per common share ? diluted $ 3.61 $ 2.76 Weighted average common shares outstanding ? 35,218 38,021 dilutedOther comprehensive income (loss), net of tax Foreign currency translation adjustments, net $ 565 $ (21,534 ) of tax expense of $0Total other comprehensive income (loss), net of 565 (21,534 ) taxComprehensive income $ 127,843 $ 83,387

FTI CONSULTING, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES(in thousands, except per share data)

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Unaudited) (Unaudited)Net income $ 62,782 $ 48,174 $ 127,278 $ 104,921 Add back: Remeasurement ofacquisition-related (3,130 ) ? (3,130 ) ? contingentconsiderationNon-cash interestexpense on 2,380 2,255 4,728 4,480 convertible notesTax impact ofnon-cash interest (619 ) (586 ) (1,229 ) (1,165 ) expense onconvertible notesAdjusted Net Income $ 61,413 $ 49,843 $ 127,647 $ 108,236 Earnings per common $ 1.77 $ 1.27 $ 3.61 $ 2.76 share ? dilutedAdd back: Remeasurement ofacquisition-related (0.09 ) ? (0.09 ) ? contingentconsiderationNon-cash interestexpense on 0.07 0.06 0.13 0.12 convertible notesTax impact ofnon-cash interest (0.01 ) (0.01 ) (0.03 ) (0.03 ) expense onconvertible notesAdjusted earningsper common share ? $ 1.74 $ 1.32 $ 3.62 $ 2.85 dilutedWeighted averagenumber of common 35,374 37,852 35,218 38,021 sharesoutstanding? diluted

FTI CONSULTING, INC.RECONCILIATION OF EPS GUIDANCE TO ADJUSTED EPS GUIDANCE

Year Ended December 31, 2021 Low HighGuidance on estimated earnings per common share ? $ 5.89 $ 6.39 diluted (GAAP) ^(1)Remeasurement of acquisition-related contingent (0.09 ) (0.09 ) considerationNon-cash interest expense on convertible notes, net 0.20 0.20 of taxGuidance on estimated adjusted earnings per common $ 6.00 $ 6.50 share (non-GAAP) ^(1)

_________________(1)The forward-looking guidance on estimated 2021 EPS and Adjusted EPS does not reflect other gains and losses (all of which would be excluded from Adjusted EPS) related to the future impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt, or gain or loss on sale of a business as these items are dependent on future events that are uncertain and difficult to predict. The forward-looking guidance excludes any shares of common stock potentially issuable upon conversion of the 2023 Convertible Notes from the calculation of EPS.

FTI CONSULTING, INC.RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA(in thousands)

Three Months Ended Corporate ForensicJune 30, 2021 Finance & and Economic Technology Strategic Unallocated Total(Unaudited) Restructuring Litigation Consulting Communications Corporate ConsultingNet income $ 62,782 Interest income and 912 otherInterest expense 5,294 Income tax 14,992 provisionOperating income $ 40,103 $ 16,492 $ 29,204 $ 15,340 $ 12,198 $ (29,357 ) $ 83,980 Depreciation and 1,317 1,286 1,495 3,178 558 770 8,604 amortizationAmortization of 1,884 224 ? ? 745 1 2,854 intangible assetsRemeasurement ofacquisition-related (3,130 ) ? ? ? ? ? (3,130 ) contingentconsiderationAdjusted EBITDA $ 40,174 $ 18,002 $ 30,699 $ 18,518 $ 13,501 $ (28,586 ) $ 92,308 Six Months Ended Corporate ForensicJune 30, 2021 Finance & and Economic Technology Strategic Unallocated Total(Unaudited) Restructuring Litigation Consulting Communications Corporate ConsultingNet income $ 127,278 Interest income and (122 ) otherInterest expense 10,091 Income tax 35,239 provisionOperating income $ 74,402 $ 44,498 $ 54,436 $ 33,899 $ 21,318 $ (56,067 ) $ 172,486 Depreciation and 2,570 2,538 2,842 6,217 1,097 1,501 16,765 amortizationAmortization of 3,771 398 ? ? 1,484 2 5,655 intangible assetsRemeasurement ofacquisition-related (3,130 ) ? ? ? ? ? (3,130 ) contingentconsiderationAdjusted EBITDA $ 77,613 $ 47,434 $ 57,278 $ 40,116 $ 23,899 $ (54,564 ) $ 191,776

FTI CONSULTING, INC.RECONCILIATION OF NET INCOME AND OPERATING INCOME (LOSS) TO ADJUSTED EBITDA(in thousands)

Three Months Corporate Forensic andEnded June Finance & Litigation Economic Technology Strategic Unallocated Total30, 2020 Restructuring Consulting Consulting Communications Corporate(Unaudited)Net income $ 48,174 Interestincome and (2,202 ) otherInterest 5,157 expenseIncome tax 14,470 provisionOperatingincome $ 73,811 $ (10,382 ) $ 20,216 $ 3,432 $ 8,798 $ (30,276 ) $ 65,599 (loss)Depreciationand 1,038 1,165 1,433 3,003 552 693 7,884 amortizationAmortizationof 1,415 170 45 ? 684 ? 2,314 intangibleassetsAdjusted $ 76,264 $ (9,047 ) $ 21,694 $ 6,435 $ 10,034 $ (29,583 ) $ 75,797 EBITDA Six Months Corporate Forensic andEnded June Finance & Litigation Economic Technology Strategic Unallocated Total30, 2020 Restructuring Consulting Consulting Communications Corporate(Unaudited)Net income $ 104,921 Interestincome and (7,219 ) otherInterest 10,018 expenseIncome tax 30,935 provisionOperating $ 120,475 $ 9,124 $ 31,612 $ 15,021 $ 16,290 $ (53,867 ) $ 138,655 incomeDepreciationand 2,017 2,581 2,703 5,898 1,138 1,370 15,707 amortizationAmortizationof 2,718 456 89 ? 1,382 ? 4,645 intangibleassetsAdjusted $ 125,210 $ 12,161 $ 34,404 $ 20,919 $ 18,810 $ (52,497 ) $ 159,007 EBITDA

FTI CONSULTING, INC.OPERATING RESULTS BY BUSINESS SEGMENT

Segment Adjusted Adjusted Average Revenue- Revenues EBITDA EBITDA Utilization Billable Generating Margin Rate Headcount (in thousands) (at period end)Three MonthsEnded June 30, 2021(Unaudited)CorporateFinance & $ 230,971 $ 40,174 17.4 % 59 % $ 456 1,632 RestructuringForensic andLitigation 150,746 18,002 11.9 % 60 % $ 344 1,399 ConsultingEconomic 183,306 30,699 16.7 % 75 % $ 524 884 ConsultingTechnology ^ 78,646 18,518 23.5 % N/M N/M 429 (1)StrategicCommunications 67,817 13,501 19.9 % N/M N/M 771 ^(1) $ 711,486 $ 120,894 17.0 % 5,115 Unallocated (28,586 ) CorporateAdjusted $ 92,308 13.0 % EBITDA Six MonthsEnded June 30, 2021(Unaudited)CorporateFinance & $ 457,174 $ 77,613 17.0 % 59 % $ 456 1,632 RestructuringForensic andLitigation 301,567 47,434 15.7 % 60 % $ 350 1,399 ConsultingEconomic 352,579 57,278 16.2 % 75 % $ 504 884 ConsultingTechnology ^ 158,105 40,116 25.4 % N/M N/M 429 (1)StrategicCommunications 128,338 23,899 18.6 % N/M N/M 771 ^(1) $ 1,397,763 $ 246,340 17.6 % 5,115 Unallocated (54,564 ) CorporateAdjusted $ 191,776 13.7 % EBITDA Three MonthsEnded June 30, 2020(Unaudited)CorporateFinance & $ 246,011 $ 76,264 31.0 % 71 % $ 494 1,362 RestructuringForensic andLitigation 106,381 (9,047 ) (8.5 )% 46 % $ 327 1,326 ConsultingEconomic 151,493 21,694 14.3 % 73 % $ 508 810 ConsultingTechnology ^ 47,084 6,435 13.7 % N/M N/M 386 (1)StrategicCommunications 56,883 10,034 17.6 % N/M N/M 761 ^(1) $ 607,852 $ 105,380 17.3 % 4,645 Unallocated (29,583 ) CorporateAdjusted $ 75,797 12.5 % EBITDA Six MonthsEnded June 30, 2020(Unaudited)CorporateFinance & $ 453,760 $ 125,210 27.6 % 70 % $ 473 1,362 RestructuringForensic andLitigation 253,978 12,161 4.8 % 52 % $ 332 1,326 ConsultingEconomic 283,631 34,404 12.1 % 70 % $ 478 810 ConsultingTechnology ^ 105,807 20,919 19.8 % N/M N/M 386 (1)StrategicCommunications 115,269 18,810 16.3 % N/M N/M 761 ^(1) $ 1,212,445 $ 211,504 17.4 % 4,645 Unallocated (52,497 ) CorporateAdjusted $ 159,007 13.1 % EBITDA

___________________N/M - Not meaningful(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.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Six Months Ended June 30, 2021 2020 (Unaudited)Operating activities Net income $ 127,278 $ 104,921 Adjustments to reconcile net income to net cash provided by (used in) operating activities:Depreciation and amortization 16,765 15,707 Amortization and impairment of intangible assets 5,655 4,645 Acquisition-related contingent consideration (1,130 ) 1,120 Provision for expected credit losses 8,236 11,624 Share-based compensation 12,190 12,147 Amortization of debt discount and issuance costs 5,685 6,000 and otherDeferred income taxes 9,802 4,128 Changes in operating assets and liabilities, net of effects from acquisitions:Accounts receivable, billed and unbilled (138,838 ) (42,804 ) Notes receivable 8,921 5,993 Prepaid expenses and other assets 6,728 8,979 Accounts payable, accrued expenses and other (13,518 ) 2,230 Income taxes 6,695 (2,344 ) Accrued compensation (88,024 ) (107,217 ) Billings in excess of services provided (7,471 ) 4,285 Net cash provided by (used in) operating (41,026 ) 29,414 activitiesInvesting activities Payments for acquisition of businesses, net of (9,833 ) ? cash receivedPurchases of property and equipment and other (27,696 ) (13,885 ) Net cash used in investing activities (37,529 ) (13,885 ) Financing activities Borrowings under revolving line of credit 292,500 90,000 Repayments under revolving line of credit (192,500 ) (55,000 ) Purchase and retirement of common stock (46,133 ) (99,678 ) Share-based compensation tax withholdings and (7,475 ) (6,523 ) otherPayments for business acquisition liabilities (7,496 ) (3,948 ) Deposits 602 5,098 Net cash provided by (used in) financing 39,498 (70,051 ) activitiesEffect of exchange rate changes on cash and cash 979 (10,645 ) equivalentsNet decrease in cash and cash equivalents (38,078 ) (65,167 ) Cash and cash equivalents, beginning of period 294,953 369,373 Cash and cash equivalents, end of period $ 256,875 $ 304,206

FTI CONSULTING, INC.RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW(in thousands)

Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020Net cashprovidedby (used $ 125,558 $ 152,976 $ (41,026 ) $ 29,414 in)operatingactivitiesPurchasesofproperty (19,724 ) (5,663 ) (27,725 ) (13,899 ) andequipmentFree Cash $ 105,834 $ 147,313 $ (68,751 ) $ 15,515 Flow

FTI Consulting, Inc.555 12th Street NWWashington, DC 20004+1.202.312.9100

Investor & Media Contact:Mollie Hawkes+1.617.747.1791mollie.hawkes@fticonsulting.com