FTI Consulting Reports Record Fourth Quarter and Full Year 2023 Financial Results

• Fourth Quarter 2023 Revenues of $924.7 Million, Up 19% Compared to $774.4 Million in Prior Year Quarter; Excluding Estimated Positive Impact of FX, Fourth Quarter 2023 Revenues Up 18% Compared to Prior Year Quarter
  
• Fourth Quarter 2023 EPS of $2.28, Up 71% Compared to $1.33 in Prior Year Quarter; Fourth Quarter 2023 Adjusted EPS of $2.28, Up 50% Compared to $1.52 in Prior Year Quarter
• Full Year 2023 Revenues of $3.489 Billion, Up 15% Compared to $3.029 Billion in Prior Year
• Full Year 2023 EPS of $7.71, Up 17% Compared to $6.58 in Prior Year; Full Year 2023 Adjusted EPS of $7.71, Up 14% Compared to $6.77 in Prior Year
• Introduces 2024 Guidance
  

WASHINGTON, Feb. 22, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the full year and fourth quarter ended December 31, 2023.

For the full year 2023, revenues of $3.489 billion increased $460.3 million, or 15.2%, compared to revenues of $3.029 billion in the prior year. The increase in revenues was due to higher demand across all business segments. Net income of $274.9 million compared to $235.5 million in the prior year. The increase in net income was primarily due to higher revenues, which was partially offset by higher compensation, a 17.2% increase in selling, general and administrative ("SG&A") expenses and higher income taxes compared to the prior year. Adjusted EBITDA of $424.8 million, or 12.2% of revenues, compared to $357.6 million, or 11.8% of revenues, in the prior year.

Full year 2023 earnings per diluted share ("EPS") of $7.71 compared to $6.58 in the prior year. Full year 2022 EPS included an $8.3 million special charge related to severance and other employee-related costs, which reduced EPS by $0.19. Full year 2023 Adjusted EPS of $7.71 compared to Adjusted EPS of $6.77 in the prior year.

Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, "In 2023, we continued our sustained, multi-year growth trajectory and once again delivered record revenues and earnings. These results reflect our continued ability to win in the two markets that matter most: the market for making a difference for clients and the market for great talent. That progress leaves me ever more confident about the future of our firm."

Cash Position and Capital Allocation

Net cash provided by operating activities of $224.5 million for the year ended December 31, 2023 compared to $188.8 million for the year ended December 31, 2022. The year-over-year increase in net cash provided by operating activities was primarily due to higher cash collections resulting from increased revenues. The increase was partially offset by higher compensation expenses, primarily related to headcount growth, an increase in other operating expenses and higher use of working capital required for growth.

Cash and cash equivalents and short-term investments of $328.7 million at December 31, 2023 compared to $491.7 million at December 31, 2022 and $225.6 million at September 30, 2023. Total debt, net of cash and short-term investments, of ($328.7) million at December 31, 2023 compared to ($175.5) million at December 31, 2022 and $59.4 million at September 30, 2023. The sequential decrease in total debt, net of cash and short-term investments, was primarily due to an increase in cash provided by operating activities.

There were no share repurchases during the quarter ended December 31, 2023. In full year 2023, the Company repurchased 112,139 shares of its common stock at an average price per share of $158.70 for a total cost of $17.8 million. As of December 31, 2023, approximately $460.7 million remained available for common stock repurchases under the Company’s stock repurchase program.

Fourth Quarter 2023 Results

Fourth quarter 2023 revenues of $924.7 million increased $150.3 million, or 19.4%, compared to revenues of $774.4 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $139.0 million, or 18.0%, compared to the prior year quarter. The increase in revenues was due to higher demand across all business segments. Net income of $81.6 million compared to $47.5 million in the prior year quarter. The increase in net income was primarily due to higher revenues, which was partially offset by higher compensation and SG&A expenses compared to the prior year quarter. Adjusted EBITDA of $127.4 million, or 13.8% of revenues, compared to $92.0 million, or 11.9% of revenues, in the prior year quarter.

Fourth quarter 2023 EPS of $2.28 compared to $1.33 in the prior year quarter. Fourth quarter 2022 EPS included the aforementioned $8.3 million special charge, which decreased EPS by $0.19. Fourth quarter 2023 Adjusted EPS of $2.28 compared to Adjusted EPS of $1.52 in the prior year quarter.

Fourth Quarter 2023 Segment Results

Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment increased $60.2 million, or 19.7%, to $365.6 million in the quarter compared to $305.3 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $57.2 million, or 18.7%, compared to the prior year quarter. The increase in revenues was primarily due to higher demand for business transformation & strategy and restructuring services. Adjusted Segment EBITDA of $65.4 million, or 17.9% of segment revenues, compared to $49.1 million, or 16.1% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by higher compensation, which includes the impact of a 5.5% increase in billable headcount and higher contractor costs, as well as an increase in SG&A expenses compared to the prior year quarter.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased $17.6 million, or 11.9%, to $165.5 million in the quarter compared to $147.9 million in the prior year quarter. The increase in revenues was primarily due to higher demand for investigations and construction solutions services. Adjusted Segment EBITDA of $19.2 million, or 11.6% of segment revenues, compared to $17.1 million, or 11.6% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation and higher SG&A expenses compared to the prior year quarter.

Economic Consulting
Revenues in the Economic Consulting segment increased $34.1 million, or 19.8%, to $206.1 million in the quarter compared to $172.0 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $30.3 million, or 17.6%, compared to the prior year quarter. The increase in revenues was primarily due to an increase in financial economics, non-merger and acquisition (“M&A”)-related antitrust and international arbitration revenues, which was partially offset by a decline in M&A-related antitrust revenues. Adjusted Segment EBITDA of $38.3 million, or 18.6% of segment revenues, compared to $27.3 million, or 15.9% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, which includes the impact of an 8.1% increase in billable headcount, and higher SG&A expenses compared to the prior year quarter.

Technology
Revenues in the Technology segment increased $24.1 million, or 31.4%, to $100.9 million in the quarter compared to $76.8 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $23.1 million, or 30.1%, compared to the prior year quarter. The increase in revenues was primarily due to higher demand for M&A-related “second request” and litigation services. Adjusted Segment EBITDA of $12.4 million, or 12.3% of segment revenues, compared to $11.8 million, or 15.3% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was largely offset by higher as-needed consultant costs, an increase in compensation, which includes the impact of a 12.9% increase in billable headcount, and higher SG&A expenses compared to the prior year quarter.

Strategic Communications
Revenues in the Strategic Communications segment increased $14.2 million, or 19.6%, to $86.6 million in the quarter compared to $72.4 million in the prior year quarter. Excluding the estimated positive impact from FX, revenues increased $12.2 million, or 16.9%, compared to the prior year quarter. The increase in revenues was primarily due to higher demand for corporate reputation and public affairs services. Adjusted Segment EBITDA of $15.6 million, or 18.0% of segment revenues, compared to $10.5 million, or 14.5% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation and higher SG&A expenses compared to the prior year quarter.

2024 Guidance
The Company estimates that revenues for full year 2024 will range between $3.650 billion and $3.790 billion. The Company estimates that EPS for full year 2024 will range between $7.75 and $8.50. The Company does not currently expect Adjusted EPS to differ from EPS.

Fourth Quarter and Full Year 2023 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss fourth quarter and full year 2023 financial results at 9:00 a.m. Eastern Time on Thursday, February 22, 2024. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company’s investor relations website here.

About FTI Consulting
FTI 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 7,900 employees located in 31 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $3.5 billion in revenues during fiscal year 2023. More information can be found at www.fticonsulting.com.

Non-GAAP Financial Measures
In 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

We have included the definitions of Segment Operating Income 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 as a segment’s 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 for all segments, which excludes unallocated corporate expenses. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA. We define Adjusted Segment EBITDA as a segment’s 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 segment’s 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.

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, initiatives, projections, prospects, policies, processes and practices, objectives, goals, commitments, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions, share repurchases and other matters, business trends, new or changes to laws and regulations, including U.S. and foreign tax laws, environmental, social and governance ("ESG")-related issues, climate change-related matters, scientific and technological developments, including relating to new and emerging technologies, such as Artificial Intelligence and machine learning, 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," "commits," "aspires," "forecasts," "future," "goal," "seeks" 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 management’s plans, expectations, intentions, aspirations, beliefs, goals, estimates, forecasts and projections will result or be achieved. Our actual financial results, performance or achievements and outcomes could differ materially from those expressed in, or implied by, any forward-looking statements. 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 public health crises 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 Company’s 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024 and in the Company’s 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.
555 12th Street NW
Washington, DC 20004
+1.202.312.9100

Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791
[e-mail]

FTI CONSULTING, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)
	December 31,				December 31,
		2023				2022
Assets
Current assets
Cash and cash equivalents	$	303,222			$	491,688
Accounts receivable, net		1,102,142				896,153
Current portion of notes receivable		30,997				27,292
Prepaid expenses and other current assets		119,092				95,469
Total current assets		1,555,453				1,510,602
Property and equipment, net		159,662				153,466
Operating lease assets		208,910				203,764
Goodwill		1,234,569				1,227,593
Intangible assets, net		18,285				25,514
Notes receivable, net		75,431				55,978
Other assets		73,568				64,490
Total assets	$	3,325,878			$	3,241,407
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable, accrued expenses and other	$	223,758			$	173,953
Accrued compensation		601,074				541,892
Billings in excess of services provided		67,937				53,646
Total current liabilities		892,769				769,491
Long-term debt, net		—				315,172
Noncurrent operating lease liabilities		223,774				221,604
Deferred income taxes		140,976				162,374
Other liabilities		86,939				91,045
Total liabilities		1,344,458				1,559,686
Stockholders’ equity
Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding		—				—
Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding — 35,521 (2023) and 34,026 (2022)		355				340
Additional paid-in capital		16,760				—
Retained earnings		2,114,765				1,858,103
Accumulated other comprehensive loss		(150,460	)			(176,722	)
Total stockholders’ equity		1,981,420				1,681,721
Total liabilities and stockholders’ equity	$	3,325,878			$	3,241,407

FTI CONSULTING, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data)
	Three Months Ended December 31,
		2023				2022
	(Unaudited)
Revenues	$	924,684			$	774,431
Operating expenses
Direct cost of revenues		613,809				526,139
Selling, general and administrative expenses		194,634				164,973
Special charges		—				8,340
Amortization of intangible assets		1,220				2,323
		809,663				701,775
Operating income		115,021				72,656
Other income (expense)
Interest income and other		(8,088	)			(6,500	)
Interest expense		(3,896	)			(2,579	)
		(11,984	)			(9,079	)
Income before income tax provision		103,037				63,577
Income tax provision		21,404				16,079
Net income	$	81,633			$	47,498
Earnings per common share ― basic	$	2.34			$	1.42
Weighted average common shares outstanding ― basic		34,889				33,552
Earnings per common share ― diluted	$	2.28			$	1.33
Weighted average common shares outstanding ― diluted		35,778				35,658
Other comprehensive income, net of tax
Foreign currency translation adjustments, net of tax expense of $— and $—	$	28,244			$	47,463
Total other comprehensive income, net of tax		28,244				47,463
Comprehensive income	$	109,877			$	94,961

FTI CONSULTING, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data)
	Year Ended December 31,
		2023				2022
Revenues	$	3,489,242			$	3,028,908
Operating expenses
Direct cost of revenues		2,354,216				2,065,977
Selling, general and administrative expenses		751,306				641,070
Special charges		—				8,340
Amortization of intangible assets		6,159				9,643
		3,111,681				2,725,030
Operating income		377,561				303,878
Other income (expense)
Interest income and other		(4,867	)			3,918
Interest expense		(14,331	)			(10,047	)
		(19,198	)			(6,129	)
Income before income tax provision		358,363				297,749
Income tax provision		83,471				62,235
Net income	$	274,892			$	235,514
Earnings per common share ― basic	$	8.10			$	6.99
Weighted average common shares outstanding ― basic		33,924				33,693
Earnings per common share ― diluted	$	7.71			$	6.58
Weighted average common shares outstanding ― diluted		35,646				35,783
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net of tax expense of $— and $—	$	26,262			$	(47,882	)
Total other comprehensive income (loss), net of tax		26,262				(47,882	)
Comprehensive income	$	301,154			$	187,632

FTI CONSULTING, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, except per share data)
	Three Months Ended December 31,							Year Ended December 31,
		2023			2022				2023			2022
	(Unaudited)
Net income	$	81,633		$	47,498			$	274,892		$	235,514
Add back:
Special charges		—			8,340				—			8,340
Tax impact of special charges		—			(1,584	)			—			(1,584	)
Adjusted Net Income	$	81,633		$	54,254			$	274,892		$	242,270
Earnings per common share — diluted	$	2.28		$	1.33			$	7.71		$	6.58
Add back:
Special charges		—			0.23				—			0.23
Tax impact of special charges		—			(0.04	)			—			(0.04	)
Adjusted earnings per common share — diluted	$	2.28		$	1.52			$	7.71		$	6.77
Weighted average number of common shares outstanding ― diluted		35,778			35,658				35,646			35,783

FTI CONSULTING, INC. RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA (in thousands)
Three Months Ended December 31, 2023 (Unaudited)		Corporate Finance & Restructuring			Forensic and Litigation Consulting			Economic Consulting			Technology			Strategic Communications			Unallocated Corporate				Total
Net income																					$	81,633
Interest income and other																						8,088
Interest expense																						3,896
Income tax provision																						21,404
Operating income		$	61,779		$	17,415		$	36,801		$	8,393		$	14,703		$	(24,070	)		$	115,021
Depreciation and amortization			2,597			1,680			1,534			3,992			875			475				11,153
Amortization of intangible assets			1,010			152			—			—			58			—				1,220
Adjusted EBITDA		$	65,386		$	19,247		$	38,335		$	12,385		$	15,636		$	(23,595	)		$	127,394

Year Ended December 31, 2023		Corporate Finance & Restructuring			Forensic and Litigation Consulting			Economic Consulting			Technology			Strategic Communications			Unallocated Corporate				Total
Net income																					$	274,892
Interest income and other																						4,867
Interest expense																						14,331
Income tax provision																						83,471
Operating income		$	216,504		$	81,296		$	109,818		$	48,196		$	47,167		$	(125,420	)		$	377,561
Depreciation and amortization			9,254			6,030			5,989			14,515			3,445			1,846				41,079
Amortization of intangible assets			5,079			783			—			—			297			—				6,159
Adjusted EBITDA		$	230,837		$	88,109		$	115,807		$	62,711		$	50,909		$	(123,574	)		$	424,799

FTI CONSULTING, INC. RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED EBITDA (in thousands)
Three Months Ended December 31, 2022 (Unaudited)		Corporate Finance & Restructuring (1)			Forensic and Litigation Consulting (1)			Economic Consulting			Technology			Strategic Communications			Unallocated Corporate				Total
Net income																					$	47,498
Interest income and other																						6,500
Interest expense																						2,579
Income tax provision																						16,079
Operating income		$	43,008		$	11,047		$	26,122		$	8,425		$	9,360		$	(25,306	)		$	72,656
Depreciation and amortization			1,734			1,206			1,183			3,226			618			688				8,655
Amortization of intangible assets			1,940			242			—			—			141			—				2,323
Special charges			2,444			4,614			31			106			369			776				8,340
Adjusted EBITDA		$	49,126		$	17,109		$	27,336		$	11,757		$	10,488		$	(23,842	)		$	91,974
Year Ended December 31, 2022		Corporate Finance & Restructuring (1)			Forensic and Litigation Consulting (1)			Economic Consulting			Technology			Strategic Communications			Unallocated Corporate				Total
Net income																					$	235,514
Interest income and other																						(3,918	)
Interest expense																						10,047
Income tax provision																						62,235
Operating income		$	197,424		$	52,693		$	98,178		$	33,431		$	46,982		$	(124,830	)		$	303,878
Depreciation and amortization			6,965			5,289			4,881			13,161			2,580			2,821				35,697
Amortization of intangible assets			7,976			977			—			—			689			1				9,643
Special charges			2,444			4,614			31			106			369			776				8,340
Adjusted EBITDA		$	214,809		$	63,573		$	103,090		$	46,698		$	50,620		$	(121,232	)		$	357,558
(1)  Effective July 1, 2023, prior period segment information for the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments has been recast in this press release to include the reclassification of the portion of the Company’s health solutions practice in the Forensic and Litigation Consulting segment to the Company’s business transformation practice within the Corporate Finance & Restructuring segment.

FTI CONSULTING, INC. OPERATING RESULTS BY BUSINESS SEGMENT
	Segment Revenues			Adjusted EBITDA				Adjusted EBITDA Margin			Utilization			Average Billable Rate			Revenue- Generating Headcount
	(in thousands)																(at period end)
Three Months Ended December 31, 2023 (Unaudited)
Corporate Finance & Restructuring	$	365,554		$	65,386			17.9	%		61	%		$	503		2,215
Forensic and Litigation Consulting		165,469			19,247			11.6	%		56	%		$	391		1,447
Economic Consulting		206,091			38,335			18.6	%		65	%		$	586		1,089
Technology (1)		100,933			12,385			12.3	%		N/M			N/M			628
Strategic Communications (1)		86,637			15,636			18.0	%		N/M			N/M			971
	$	924,684		$	150,989			16.3	%								6,350
Unallocated Corporate					(23,595	)
Adjusted EBITDA				$	127,394			13.8	%
Year Ended December 31, 2023
Corporate Finance & Restructuring	$	1,346,678		$	230,837			17.1	%		60	%		$	494		2,215
Forensic and Litigation Consulting		654,105			88,109			13.5	%		57	%		$	386		1,447
Economic Consulting		771,374			115,807			15.0	%		67	%		$	547		1,089
Technology (1)		387,855			62,711			16.2	%		N/M			N/M			628
Strategic Communications (1)		329,230			50,909			15.5	%		N/M			N/M			971
	$	3,489,242		$	548,373			15.7	%								6,350
Unallocated Corporate					(123,574	)
Adjusted EBITDA				$	424,799			12.2	%
Three Months Ended December 31, 2022 (Unaudited)
Corporate Finance & Restructuring (2)	$	305,314		$	49,126			16.1	%		56	%		$	478		2,100
Forensic and Litigation Consulting (2)		147,879			17,109			11.6	%		53	%		$	370		1,430
Economic Consulting		172,007			27,336			15.9	%		63	%		$	522		1,007
Technology (1)		76,802			11,757			15.3	%		N/M			N/M			556
Strategic Communications (1)		72,429			10,488			14.5	%		N/M			N/M			970
	$	774,431		$	115,816			15.0	%								6,063
Unallocated Corporate					(23,842	)
Adjusted EBITDA				$	91,974			11.9	%
Year Ended December 31, 2022
Corporate Finance & Restructuring (2)	$	1,147,118		$	214,809			18.7	%		60	%		$	456		2,100
Forensic and Litigation Consulting (2)		579,933			63,573			11.0	%		54	%		$	359		1,430
Economic Consulting		695,208			103,090			14.8	%		68	%		$	508		1,007
Technology (1)		319,983			46,698			14.6	%		N/M			N/M			556
Strategic Communications (1)		286,666			50,620			17.7	%		N/M			N/M			970
	$	3,028,908		$	478,790			15.8	%								6,063
Unallocated Corporate					(121,232	)
Adjusted EBITDA				$	357,558			11.8	%
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.
(2)  Effective July 1, 2023, prior period segment information for the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments has been recast in this press release to include the reclassification of the portion of the Company’s health solutions practice in the Forensic and Litigation Consulting segment to the Company’s business transformation practice within the Corporate Finance & Restructuring segment.

FTI CONSULTING, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
			Year Ended December 31,
			2023				2022
Operating activities
Net income		$	274,892			$	235,514
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			41,079				35,898
Amortization of intangible assets			6,159				9,643
Acquisition-related contingent consideration			3,818				2,172
Provision for expected credit losses			35,149				19,684
Share-based compensation			29,534				25,414
Amortization of debt issuance costs and other			1,925				2,224
Deferred income taxes			(25,453	)			(10,456	)
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, billed and unbilled			(229,296	)			(182,667	)
Notes receivable			(22,919	)			(403	)
Prepaid expenses and other assets			7,606				459
Accounts payable, accrued expenses and other			8,687				8,430
Income taxes			29,335				(4,322	)
Accrued compensation			50,186				37,931
Billings in excess of services provided			13,759				9,273
	Net cash provided by operating activities		224,461				188,794
Investing activities
Payments for acquisition of businesses, net of cash received			—				(6,742	)
Purchases of property and equipment and other			(49,479	)			(53,319	)
Purchase of short-term investment			(24,356	)			—
	Net cash used in investing activities		(73,835	)			(60,061	)
Financing activities
Borrowings under revolving line of credit			835,000				165,000
Repayments under revolving line of credit			(835,000	)			(165,000	)
Payments of debt issuance costs			—				(3,993	)
Repayment of convertible notes			(315,763	)			—
Purchase and retirement of common stock			(20,982	)			(85,424	)
Share-based compensation tax withholdings and other			(15,078	)			(15,330	)
Payments for business acquisition liabilities			(3,651	)			(4,848	)
Deposits and other			811				3,583
	Net cash used in financing activities		(354,663	)			(106,012	)
Effect of exchange rate changes on cash and cash equivalents			15,571				(25,518	)
Net decrease in cash and cash equivalents			(188,466	)			(2,797	)
Cash and cash equivalents, beginning of period			491,688				494,485
Cash and cash equivalents, end of period		$	303,222			$	491,688