GlobeNewswire Inc | Jul 30, 2020 07:30AM EDT

July 30, 2020

-- Second Quarter 2020 Revenues of $607.9 Million, Up 0.3% Compared to $606.1 Million in Prior Year Quarter -- Second Quarter 2020 EPS of $1.27, Down 24.9% Compared to $1.69 in Prior Year Quarter; Second Quarter 2020 Adjusted EPS of $1.32, Down 23.7% Compared to $1.73 in Prior Year Quarter -- Announces $200.0 Million Increase in Share Repurchase Authorization and Reaffirms 2020 Guidance

WASHINGTON, July 30, 2020 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the quarter ended June30, 2020.

Second quarter 2020 revenues of $607.9 million increased $1.7 million, or 0.3%, compared to revenues of $606.1 million in the prior year quarter. Excluding the estimated negative impact from foreign currency translation ("FX"), revenues increased $9.3 million, or 1.6%, compared to the prior year quarter. The increase in revenues was driven by higher demand in the Corporate Finance & Restructuring business segment, which was nearly offset by lower demand in the Forensic and Litigation Consulting and Technology business segments compared to the prior year quarter. Net income of $48.2 million compared to $64.6 million in the prior year quarter. The decrease in net income was due to higher compensation, primarily related to an 18.2% increase in billable headcount and higher variable compensation, which was partially offset by a decline in selling, general and administrative ("SG&A") expenses and a lower tax rate compared to the prior year quarter. Adjusted EBITDA of $75.8 million, or 12.5% of revenues, compared to $97.2 million, or 16.0% of revenues, in the prior year quarter.

Second quarter 2020 fully diluted earnings per share ("EPS") of $1.27 compared to $1.69 in the prior year quarter. Second quarter 2020 EPS included $2.3 millionof non-cash interest expense related to the Company's2.0% convertible senior notes due 2023 ("2023 Convertible Notes"), which decreased EPS by$0.05. Second quarter 2019 EPS included$2.1millionof non-cash interest expense related to the Company's2023 Convertible Notes, which decreased EPS by$0.04. Second quarter 2020 Adjusted EPS of $1.32, which excludes the non-cash interest expense, compared to Adjusted EPS of $1.73 in the prior year quarter.

Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, Our strong results this quarter reflect the powerful sets of initiatives we have undertaken over the last few years to strengthen our core positions, extend into new adjacencies and anticipate our clients needs, together with the extraordinary efforts of our teams to collaborate with our clients as they face their greatest challenges and opportunities.

Cash Position and Capital AllocationNet cash provided by operating activities of $153.0 million for the quarter ended June30, 2020 compared to $47.6 million for the quarter ended June30, 2019. The year-over-year increase in net cash provided by operating activities was largely due to an increase in cash collected and lower non-compensation-related operating expenses compared to the prior year quarter, which was partially offset by an increase in salaries, primarily related to the increase in headcount.

Cash and cash equivalents of $304.2 million at June30, 2020 compared to $189.1 million at June30, 2019 and $223.1 million at March31, 2020.Total debt, net of cash, of $47.0 million at June30, 2020 compared to $147.1 million at June30, 2019 and $143.2 million at March31, 2020.The sequential decrease in total debt, net of cash, was primarily due to net cash provided by operating activities, which was partially offset by cash used for share repurchases.

During the quarter, the Company repurchased 470,853 shares of its common stock at an average price per share of $108.41 for a total cost of $51.0 million. As of June30, 2020, approximately $65.3 million remained available for stock repurchases under the Companys $500.0 million stock repurchase authorization. OnJuly 28, 2020, the Company's Board of Directors authorized an additional$200.0 millionto repurchase shares of FTI Consultings outstanding common stock pursuant to its stock repurchase program. After giving effect to share repurchases through such date and the increased authorization,FTI Consultinghas approximately$249.5 millionremaining available for common stock repurchases under the program. No time limit was established for the completion of the program, and the program may be suspended, discontinued or replaced by the Board at any time without prior notice.

Under the program,FTI Consultingmay repurchase shares in open-market purchases or any other method in accordance with applicable securities laws and regulations. The specific timing and amount of repurchases will be determined by FTI Consultings management, in its discretion, and will vary based on market conditions, securities law limitations and other factors. The repurchases may be funded using available cash on hand or a combination of cash and available borrowings under FTI Consultings senior secured revolving bank credit facility.

Second Quarter 2020 Segment Results

Corporate Finance & RestructuringRevenues in the Corporate Finance & Restructuring segment increased $56.0 million, or 29.5%, to$246.0 million in the quarter compared to $190.0 million in the prior year quarter. Excluding the estimated negative impact from FX, revenues increased $58.3 million, or 30.7%, compared to the prior year quarter. The increase in revenues was primarily due to higher demand and realization for restructuring services, which was partially offset by a decline in success fees and lower revenues related to business transformation and transaction services compared to the prior year quarter. Acquisition-related revenues contributed$12.4 million compared to the prior year quarter. Adjusted Segment EBITDA of $76.3 million, or 31.0% of segment revenues, compared to $50.5 million, or 26.6% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was due to higher revenues, which was partially offset by higher compensation, primarily related to a 34.7% increase in billable headcount and higher variable compensation.

Forensic and Litigation ConsultingRevenues in the Forensic and Litigation Consulting segment decreased $39.5 million, or 27.1%, to $106.4 million in the quarter compared to $145.9 million in the prior year quarter. Excluding the estimated negative impact from FX, revenues decreased $37.5 million, or 25.7%, compared to the prior year quarter. The decrease in revenues was primarily due to lower demand for investigations and disputes services. Adjusted Segment EBITDA of a loss of $9.0 million compared to $28.2 million, or 19.4% 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 9.4% increase in billable headcount, which was partially offset by a decline in SG&A expenses.

Economic ConsultingRevenues in the Economic Consulting segment decreased $4.0 million, or 2.6%, to $151.5 million in the quarter compared to $155.5 million in the prior year quarter. Excluding the estimated negative impact from FX, revenues decreased $2.5 million, or 1.6%, compared to the prior year quarter. The decrease in revenues was largely due to lower demand for financial economics and non-merger and acquisition ("M&A")-related antitrust services, as well as lower realization for non-M&A-related antitrust and international arbitration services, which was partially offset by higher demand for M&A-related antitrust services. Adjusted Segment EBITDA of $21.7 million, or 14.3% of segment revenues, compared to $23.3 million, or 15.0% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to lower revenues and an increase in bad debt expenses, which was partially offset by lower variable compensation.

TechnologyRevenues in the Technology segment decreased $8.5 million, or 15.4%, to $47.1 million in the quarter compared to $55.6 million in the prior year quarter. Excluding the estimated negative impact from FX, revenues decreased $8.0 million, or 14.4%, compared to the prior year quarter. The decrease in revenues was primarily due to lower demand for litigation and global cross-border investigation services, as well as lower revenues related to the completion of transition services associated with the September 2018 sale of the Companys Ringtail e-discovery software and related business. Adjusted Segment EBITDA of $6.4 million, or 13.7% of segment revenues, compared to $12.9 million, or 23.1% 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 19.5% increase in billable headcount.

Strategic CommunicationsRevenues in the Strategic Communications segment decreased $2.2 million, or 3.8%, to $56.9 million in the quarter compared to $59.1 million in the prior year quarter. Excluding the estimated negative impact from FX, revenues decreased $1.0 million, or 1.7%, compared to the prior year quarter. This decrease in revenues was primarily due to a $1.9 million decline in pass-through revenues. Adjusted Segment EBITDA of $10.0 million, or 17.6% of segment revenues, compared to $10.5 million, or 17.7% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was due to higher compensation, primarily related to a 13.2% increase in billable headcount, which was partially offset by a decline in SG&A expenses.

2020 GuidanceThe Company is reaffirming its full year 2020 revenue guidance of between$2.450 billionand$2.550 billion. The Company is also reaffirming its full year 2020 EPS guidance of between$5.32and$5.82 and full year 2020 Adjusted EPS guidance of between$5.50 and$6.00. The variance between EPS and Adjusted EPS guidance for full year 2020 includes an estimated non-cash interest expense of$0.18per share related to the Company's2023 Convertible Notes.

Second Quarter 2020 Conference CallFTI Consulting will host a conference call for analysts and investors to discuss second quarter 2020 financial results at 9:00 a.m. Eastern Time on Thursday, July30, 2020. 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 5,800 employees located in 27 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 $2.35 billion in revenues during fiscal year 2019. More information can be found at www.fticonsulting.com.

Use of Non-GAAP 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 measures are considered "non-GAAP financial measures"under the U.S. 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 Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues.

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 Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and earnings per diluted share ("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 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 Companys 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 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, 2019, filed with the SEC on February 25, 2020 and the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on April 30, 2020, including the risks set forth under "Risks Related to Our Reportable Segments" and "Risks Related to Our Operations," 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, 2020 2019 (unaudited) Assets Current assets Cash and cash equivalents $ 304,206 $ 369,373 Accounts receivable: Billed receivables 578,722 540,584 Unbilled receivables 435,234 418,288 Allowances for doubtful accounts and unbilled (299,038 ) (265,500 )servicesAccounts receivable, net 714,918 693,372 Current portion of notes receivable 32,279 35,106 Prepaid expenses and other current assets 75,938 80,810 Total current assets 1,127,341 1,178,661 Property and equipment, net 91,753 93,672 Operating lease assets 152,245 159,777 Goodwill 1,196,162 1,202,767 Other intangible assets, net 33,588 38,432 Notes receivable, net 64,646 69,033 Other assets 39,172 40,800 Total assets $ 2,704,907 $ 2,783,142 Liabilities and Stockholders' Equity Current liabilities Accounts payable, accrued expenses and other $ 163,162 $ 158,936 Accrued compensation 314,018 416,903 Billings in excess of services provided 40,288 36,698 Total current liabilities 517,468 612,537 Long-term debt, net 315,808 275,609 Noncurrent operating lease liabilities 161,753 176,378 Deferred income taxes 155,293 151,352 Other liabilities 75,482 78,124 Total liabilities 1,225,804 1,294,000 Stockholders' equity Preferred stock, $0.01 par value; shares ? ? authorized ? 5,000; noneoutstandingCommon stock, $0.01 par value; sharesauthorized ? 75,000;shares issued and 367 374 outstanding ? 36,710 (2020) and 37,390 (2019)Additional paid-in capital 122,743 216,162 Retained earnings 1,518,374 1,413,453 Accumulated other comprehensive loss (162,381 ) (140,847 )Total stockholders' equity 1,479,103 1,489,142 Total liabilities and stockholders' equity $ 2,704,907 $ 2,783,142

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

Three Months Ended June 30, 2020 2019 (unaudited)Revenues $ 607,852 $ 606,119 Operating expenses Direct cost of revenues 413,011 386,266 Selling, general and administrative expenses 126,928 129,906 Amortization of other intangible assets 2,314 1,852 542,253 518,024 Operating income 65,599 88,095 Other income (expense) Interest income and other 2,202 2,609 Interest expense (5,157 ) (4,793 ) (2,955 ) (2,184 )Income before income tax provision 62,644 85,911 Income tax provision 14,470 21,313 Net income $ 48,174 $ 64,598 Earnings per common share ? basic $ 1.33 $ 1.75 Weighted average common shares outstanding ? basic 36,169 36,960 Earnings per common share ? diluted $ 1.27 $ 1.69 Weighted average common shares outstanding ? diluted 37,852 38,168 Other comprehensive income (loss), net of tax Foreign currency translation adjustments, net of tax $ 9,568 $ (4,815 )expense of $0Total other comprehensive income (loss), net of tax 9,568 (4,815 )Comprehensive income $ 57,742 $ 59,783

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

Six Months Ended June 30, 2020 2019 (unaudited)Revenues $ 1,212,445 $ 1,157,393 Operating expenses Direct cost of revenues 815,258 735,332 Selling, general and administrative expenses 253,887 243,091 Amortization of other intangible assets 4,645 3,713 1,073,790 982,136 Operating income 138,655 175,257 Other income (expense) Interest income and other 7,219 2,768 Interest expense (10,018 ) (9,539 ) (2,799 ) (6,771 )Income before income tax provision 135,856 168,486 Income tax provision 30,935 41,243 Net income $ 104,921 $ 127,243 Earnings per common share ? basic $ 2.89 $ 3.44 Weighted average common shares outstanding ? basic 36,292 36,970 Earnings per common share ? diluted $ 2.76 $ 3.33 Weighted average common shares outstanding ? 38,021 38,193 dilutedOther comprehensive income (loss), net of tax Foreign currency translation adjustments, net of $ (21,534 ) $ 408 tax expense of $0Total other comprehensive income (loss), net of (21,534 ) 408 taxComprehensive income $ 83,387 $ 127,651

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

Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019 (Unaudited) (Unaudited)Net income $ 48,174 $ 64,598 $ 104,921 $ 127,243 Add back: Non-cash interest expense 2,255 2,137 4,480 4,245 on convertible notesTax impact of non-cashinterest expense (586 ) (556 ) (1,165 ) (1,103 )onconvertible notesTax impact of gain on ? ? ? (2,097 )sale of business ^(1)Adjusted net income $ 49,843 $ 66,179 $ 108,236 $ 128,288 Earnings per common share $ 1.27 $ 1.69 $ 2.76 $ 3.33 ? dilutedAdd back: Non-cash interest expense 0.06 0.05 0.12 0.11 on convertible notesTax impact of non-cashinterest expense (0.01 ) (0.01 ) (0.03 ) (0.03 )onconvertible notesTax impact of gain on ? ? ? (0.05 )sale of business ^(1)Adjusted earnings per $ 1.32 $ 1.73 $ 2.85 $ 3.36 common share ? dilutedWeighted average numberof common shares 37,852 38,168 38,021 38,193 outstanding ? diluted

_______________________(1)For the six months ended June 30, 2019, represents a discrete tax adjustment resulting from a change in estimate related to the accounting for the sale of our Ringtail e-discovery software and related business.

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

Year Ended December 31, 2020 Low HighGuidance on estimated earnings per common share ? $ 5.32 $ 5.82 diluted (GAAP) ^(1)Non-cash interest expense on convertible notes, net of 0.18 0.18 taxGuidance on estimated adjusted earnings per common $ 5.50 $ 6.00 share (non-GAAP) ^(1)

_______________________(1) The forward-looking guidance on estimated 2020 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.

Three Months Corporate ForensicEnded June Finance & and Economic Technology Strategic Unallocated Total30, 2020 Restructuring Litigation Consulting Communications Corporate(unaudited) ConsultingNet 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 other 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 ForensicEnded June Finance & and Economic Technology Strategic Unallocated Total30, 2020 Restructuring Litigation Consulting Communications Corporate(unaudited) ConsultingNet 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 other 2,718 456 89 ? 1,382 ? 4,645 intangibleassetsAdjusted $ 125,210 $ 12,161 $ 34,404 $ 20,919 $ 18,810 $ (52,497 ) $ 159,007 EBITDA

Three Months Corporate ForensicEnded June Finance & and Economic Technology Strategic Unallocated Total30, 2019 Restructuring Litigation Consulting Communications Corporate(unaudited) ConsultingNet income $ 64,598 Interestincome and (2,609 )otherInterest 4,793 expenseIncome tax 21,313 provisionOperating $ 48,779 $ 26,779 $ 21,747 $ 10,550 $ 9,132 $ (28,892 ) $ 88,095 incomeDepreciationand 947 1,174 1,521 2,325 589 681 7,237 amortizationAmortizationof other 766 288 45 ? 753 ? 1,852 intangibleassetsAdjusted $ 50,492 $ 28,241 $ 23,313 $ 12,875 $ 10,474 $ (28,211 ) $ 97,184 EBITDA Six Months Corporate ForensicEnded June Finance & and Economic Technology Strategic Unallocated Total30, 2019 Restructuring Litigation Consulting Communications Corporate(unaudited) ConsultingNet income $ 127,243 Interestincome and (2,768 )otherInterest 9,539 expenseIncome tax 41,243 provisionOperating $ 84,463 $ 57,219 $ 44,236 $ 20,986 $ 19,348 $ (50,995 ) $ 175,257 incomeDepreciationand 1,857 2,260 3,028 4,612 1,163 1,383 14,303 amortizationAmortizationof other 1,533 579 89 ? 1,512 ? 3,713 intangibleassetsAdjusted $ 87,853 $ 60,058 $ 47,353 $ 25,598 $ 22,023 $ (49,612 ) $ 193,273 EBITDA

FTI CONSULTING, INC.OPERATING RESULTS BY BUSINESS SEGMENT

Adjusted Adjusted Average Revenue- Segment EBITDA EBITDA Utilization Billable Generating Revenues Margin Rate Headcount (in thousands) (at period end)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 Three MonthsEnded June 30, 2019(unaudited)CorporateFinance & $ 190,003 $ 50,492 26.6 % 68 % $ 475 1,011 RestructuringForensic andLitigation 145,870 28,241 19.4 % 65 % $ 340 1,212 ConsultingEconomic 155,502 23,313 15.0 % 79 % $ 524 712 ConsultingTechnology ^ 55,632 12,875 23.1 % N/M N/M 323 (1)StrategicCommunications 59,112 10,474 17.7 % N/M N/M 672 ^(1) $ 606,119 $ 125,395 20.7 % 3,930 Unallocated (28,211 ) CorporateAdjusted $ 97,184 16.0 % EBITDA Six MonthsEnded June 30, 2019(unaudited)CorporateFinance & $ 350,969 $ 87,853 25.0 % 69 % $ 453 1,011 RestructuringForensic andLitigation 284,867 60,058 21.1 % 66 % $ 337 1,212 ConsultingEconomic 297,773 47,353 15.9 % 78 % $ 501 712 ConsultingTechnology ^ 106,968 25,598 23.9 % N/M N/M 323 (1)StrategicCommunications 116,816 22,023 18.9 % N/M N/M 672 ^(1) $ 1,157,393 $ 242,885 21.0 % 3,930 Unallocated (49,612 ) CorporateAdjusted $ 193,273 16.7 % 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, 2020 2020 2019 (unaudited)Operating activities Net income $ 104,921 $ 127,243 Adjustments to reconcile net income to net cash provided by (used in) operatingactivities:Depreciation and amortization 15,707 14,304 Amortization and impairment of other intangible 4,645 3,713 assetsAcquisition-related contingent consideration 1,120 186 Provision for doubtful accounts 11,624 6,260 Share-based compensation 12,147 10,207 Amortization of debt discount and issuance costs 5,987 5,748 Deferred income taxes 4,128 966 Other 13 225 Changes in operating assets and liabilities, net of effects from acquisitions:Accounts receivable, billed and unbilled (42,804 ) (186,854 )Notes receivable 5,993 8,343 Prepaid expenses and other assets 8,979 (1,953 )Accounts payable, accrued expenses and other 2,230 (11,606 )Income taxes (2,344 ) 23,458 Accrued compensation (107,217 ) (55,183 )Billings in excess of services provided 4,285 505 Net cash provided by (used in) operating 29,414 (54,438 )activitiesInvesting activities Purchases of property and equipment (13,899 ) (20,661 )Other 14 69 Net cash used in investing activities (13,885 ) (20,592 )Financing activities Borrowings under revolving line of credit 90,000 25,000 Repayments under revolving line of credit (55,000 ) (5,000 )Purchase and retirement of common stock (99,678 ) (66,893 )Net issuance of common stock under equity (6,523 ) 1,009 compensation plansPayments for business acquisition liabilities (3,948 ) (2,282 )Deposits and other 5,098 1,014 Net cash used in financing activities (70,051 ) (47,152 )Effect of exchange rate changes on cash and cash (10,645 ) (781 )equivalentsNet decrease in cash and cash equivalents (65,167 ) (122,963 )Cash and cash equivalents, beginning of period 369,373 312,069 Cash and cash equivalents, end of period $ 304,206 $ 189,106

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, 2020 2019 2020 2019 (in thousands) (in thousands)Net cash provided by(used in) operating $ 152,976 $ 47,648 $ 29,414 $ (54,438 )activitiesPurchases of property (5,663 ) (10,508 ) (13,899 ) (20,661 )and equipmentFree Cash Flow $ 147,313 $ 37,140 $ 15,515 $ (75,099 )

FTI Consulting, Inc.555 12th Street NW Washington, D.C. 20004+1.202.312.9100

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