FTI Consulting, Inc. (FCN) reported adjusted net income of $19.8 million or 49 cents per share in the fourth quarter of 2013 versus $27.4 million or 67 cents a share in the prior-year quarter. Although the adjusted earnings decreased year over year, it comfortably beat the Zacks Consensus Estimate of 41 cents
The company reported GAAP net loss of $7.1 million or a loss of 18 cents per share in fourth quarter 2013 versus a net loss of $85.9 million or $2.15 per share in the year-ago quarter. Fourth quarter 2013 earnings were impacted by a special charge of $27.6 million primarily for severance and acceleration of expense related to compensation arrangements.
For full year 2013, the company reported adjusted net income of $96.4 million or $2.39 per share versus $95.4 million or $2.30 per share in the prior year. The adjusted earnings comfortably beat the Zacks Consensus Estimate of $2.29.
For full year 2013, the company reported GAAP net loss of $10.6 million or 27 cents per share versus a net loss of $37.0 million or 92 cents per share in the prior-year period. Full year 2013 earnings were impacted by goodwill impairment charge and special charges of $83.8 million and $38.4 million, respectively.
Total revenue increased 4.2% to $416.0 million in the reported quarter and exceeded the Zacks Consensus Estimate of $404 million. The surge in revenues was driven by revenue growth in the Economic Consulting segment and health solutions practice, followed by an increase in revenues in Forensic and Litigation Consulting and Technology.
Adjusted EBITDA stood at $53.0 million compared with $68.1 million in the prior-year quarter.
For full year 2013, revenue increased 4.8% year over year to $1,652 million. The revenues beat the Zacks Consensus Estimate of $1,618 million.
Segment Details
Corporate Finance/Restructuring segment revenues decreased 14.5% to $92.8 million in fourth quarter 2013. The decrease in revenues was primarily due to lower success fees and lower bankruptcy and restructuring revenues in North America.
Economic Consulting revenues improved 12.9% year on year to $108.1 million in the reported quarter. The upside was aided by strong demand for the segment's antitrust litigation services in North America and Europe, Middle East and Africa (EMEA), and international arbitration, regulatory and valuation practices in EMEA.
Forensic and Litigation Consulting segment revenues increased 18.0% year over year to $114.7 million, primarily driven by a success fee for the segment's health solutions as well as increased demand for the segment's global financial and enterprise data analytics.
Technology segment revenues were up 12.6% to $53.6 million. The increase in revenues was driven by higher services revenues primarily for investigations and other financial service matters.
Strategic Communications segment revenues decreased 6.8% year over year to $46.9 million in the quarter, driven by reduced pass-through revenues for certain EMEA and North America retained regions.
Liquidity
At year end, FTI Consulting had cash and cash equivalents of $205.8 million versus $156.8 million in the year ago period. Long-term debt stood at $711.0 million versus $717.0 million in the year ago period. Net cash provided by operating activities in the quarter was $193.3 million compared with $120.2 million in the year-ago period. During 2013, the company committed $71.1 million to repurchase and retire 1.957 million shares. The company invested $55.5 million on acquisitions.
Guidance
The company expects revenue and adjusted earnings per share in the range of $410.0 million to $425.0 million and 20 cents to 28 cents, respectively in first quarter 2014.
Share prices dipped as investors probably expected a more positive outlook from the company.
FTI Consulting currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include CBIZ, Inc. (CBZ), carrying a Zacks Rank #1 (Strong Buy), and Bureau Veritas SA (BVRDF) and Huron Consulting Group Inc. (HURN), both carrying a Zacks Rank #2 (Buy).
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