Welcome to the FTI Consulting Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Mollie Hawkes, Head of Investor Relations. Please go ahead.

Good morning. Welcome to the FTI Consulting conference call to discuss the company's second quarter 2023 earnings results as reported this morning. Management will begin with formal remarks, after which they will take your questions. Before we begin, I would like to remind everyone that this conference call may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 of the Securities Exchange Act of 1934 that involve risks and uncertainties. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to financial performance, acquisitions, share repurchases, business trends, ESG-related matters and other information or other matters that are not historical, including statements regarding estimates of our future financial results and other matters. For a discussion of risks and other factors that may cause actual results or events to differ from those contemplated by forward-looking statements, investors should review the Safe Harbor statement in the earnings press release issued this morning, a copy of which is available on our website at www.fticonsulting.com, as well as other disclosures under the headings of Risk Factors and Forward-Looking Information in our quarterly report on Form 10-Q for the quarter ended June 30, 2023, our annual report on Form 10-K for the year ended December 31, 2022, and in our filings with the SEC. Investors are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this earnings call and will not be updated. During the call, we will discuss certain non-GAAP financial measures such as total segment operating income, adjusted EBITDA, total adjusted segment EBITDA, adjusted earnings per diluted share, adjusted net income, adjusted EBITDA margin and free cash flow. For a discussion of these and other non-GAAP financial measures as well as our reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures, investors should review the press release and the accompanying financial tables that we issued this morning, which include the reconciliations. Lastly, there are two items that have been posted to the Investor Relations section of our website for your reference. These include a quarterly earnings presentation and an Excel and PDF of our historical financial and operating data, which have been updated to include our second quarter 2023 results. Of note, during today's prepared remarks, management will not speak directly to the quarterly earnings presentation posted to the Investor Relations section of our website. To ensure our disclosures are consistent, they provide the same details as they have historically and, as I've said, are available on the Investor Relations section of our website. With these formalities out of the way, I'm joined today by Steven Gunby, our President and Chief Executive Officer; and Ajay Sabherwal, our Chief Financial Officer. At this time, I will turn the call over to our President and Chief Executive Officer, Steve Gunby.

Thank you, Mollie. Welcome, everyone, and thank you for joining us this morning. I'm sure many of you saw the earnings announcement today. Ajay will provide more detailed insights into our performance. I want to share a few thoughts on our results. Firstly, we continue to demonstrate strong revenue growth, especially in organic revenue growth, and we are effectively attracting and retaining top professionals. We've discussed this before, and I want to reiterate the consistency we've exhibited in these areas over the years despite challenges like COVID and market fluctuations. The steady organic revenue growth and our ability to attract and keep talent are crucial to our success. However, I must also address that we haven't met our earnings expectations for the first half of the year, leading us to lower our full-year guidance. Next, I will discuss how these two points interconnect. This is significant not only for our current outlook but also for the company's long-term trajectory, which I believe remains positive. Therefore, I will cover these three points, and after that, Ajay will delve into the details of the quarter. Starting with the strength of our top-line results, our revenues grew 15% organically year-over-year, and for the year-to-date, it's a 13% growth, not even factoring in foreign exchange. Given this overall strength, our revenue growth came from multiple segments. Every segment showed year-over-year revenue growth this quarter and in the first half of the year. Ajay will detail each segment, but I want to highlight two areas. First, our Tech business remains robust, having delivered multiple years of strong performance despite a slowdown in global M&A activity. We are winning significant projects globally with major corporations and law firms. The second area I'd like to mention is FLC. We have invested in FLC for some time, and while it has underperformed in the past, it's now showing strong potential, particularly this quarter and in the first half of the year, especially from our investigations and data analytics divisions. Now, turning to a key question: given our strong revenue growth, why isn't there also earnings growth? Let me illustrate this using one of our top-performing businesses, Corp Fin. In the first half of the year, Corp Fin achieved impressive revenue growth of 13%, yet our adjusted EBITDA declined by 3%. How is this possible? There are several reasons. First, our total headcount increased by 14%, outpacing the 13% revenue growth. Typically, if revenue growth is slower than headcount growth, margins will be under pressure, which is exacerbated by inflation. Currently, we are seeing inflation rates that are significantly higher than we have previously experienced. Our cost structure, including both billable and non-billable costs, rose by 17% due to inflation, thus not aligning with the revenue growth. Secondly, we experienced lower-than-expected attrition rates this quarter. If attrition had been a few points higher, our headcount growth could have been reduced, easing the margin pressure. We had hired this quarter because we found exceptional talent, which is a positive sign, but hiring senior talent typically does not contribute to profitability right away. Lastly, while Corp Fin’s revenues were strong, we anticipated even higher figures based on budget expectations set a year ago, which projected a quicker increase in bankruptcies globally. While we did see growth in some regions, it was not as widespread as predicted, leading to a revenue shortfall compared to our expectations. To summarize, despite a 15% revenue growth this quarter and 13% year-to-date, our costs rose even faster, leading to disappointing adjusted EBITDA and EPS for the first half of the year. Ajay will discuss further details on other segments soon. Now, regarding our future, although I am certainly disappointed to lower our guidance for the year, I believe the fundamentals of our long-term trajectory remain intact. In this challenging economic climate, we successfully grew revenues by 13% year-to-date and found great talent to invest in, which positions us well for the future. We have demonstrated resilience over the past five years, navigating through various challenges, including COVID and fluctuating markets, and maintaining double-digit organic growth. If we continue to attract talented individuals who provide valuable services to clients and support them effectively, we will achieve growth and attract more talented professionals, creating a virtuous cycle in our company. So, while I am disappointed with this year's earnings, I remain optimistic about our revenue performance and how we are serving our clients. I am thrilled with our ability to attract great talent, which bodes well for our future. With that, I will hand it over to Ajay to provide more detail about the quarter.

Thank you, Steve. Good morning, everybody. In my prepared remarks, I will take you through our company-wide and segment results and discuss guidance for the full year. Beginning with our second quarter results. In summary, we had a solid quarter with record revenues. At the company level, we delivered 14.5% revenue growth, with all segments growing year-over-year. Our net income increased 21.3% and adjusted EBITDA increased 31.6%. We achieved those financial results while continuing to add talent globally with billable headcount growing 11.3% year-over-year. Though solid, our results for the first half were weaker than our internal expectations. As Steve mentioned, midway through the year, we are lowering the top end of our revenue guidance and lowering our EPS guidance range. I will discuss factors shaping this revised guidance towards the end of my prepared remarks. Turning to our second quarter 2023 results in more detail. Revenues of $864.6 million increased $109.6 million compared to $755 million in the prior-year quarter. Earnings per share of $1.75, compared to $1.43 in the prior-year quarter. Net income of $62.4 million, compared to $51.4 million in the prior-year quarter. This increase was due to higher revenues, which was partially offset by an increase in direct compensation costs, higher SG&A expenses, a higher effective tax rate and an unfavorable impact from FX. SG&A expenses of $186.4 million were 21.6% of revenues. This compares to SG&A of $167.9 million, or 22.2% of revenues, in the second quarter of 2022. The year-over-year increase in SG&A expenses was primarily due to compensation and outside services expenses. Second quarter 2023 adjusted EBITDA of $100.2 million, or 11.6% of revenues, compared to $76.2 million, or 10.1% of revenues, in the prior-year quarter. Our second quarter effective tax rate of 26.7%, compared to 20.6% in the prior-year quarter. The higher effective tax rate was primarily due to a lower discrete tax adjustment related to share-based compensation from fewer shares vesting and an increase in foreign taxes. We expect our effective tax rate for the full year 2023 to be between 25% and 26%, which includes our first half 2023 tax rate of 25.5%. Weighted average shares outstanding, or WASO, for Q2 of 35.7 million shares, compared to 35.9 million shares in the prior-year quarter. Our convertible notes that mature on August 15, 2023, had a potential dilutive impact on EPS of approximately 1.4 million shares for the quarter, included in WASO, as our average share price of $189.03 this past quarter was above the $101.38 conversion threshold price. As a reminder, on January 1, 2022, we elected to settle the principal amounts of the notes in cash. And during the second quarter of 2023, we disclosed that we have elected to settle the premium in shares. Billable headcount increased by 634 professionals, or 11.3%, compared to the prior year quarter. Non-billable headcount increased by 171 professionals, or 11.8%, for the same period. Sequentially, billable headcount increased by 45 professionals, non-billable headcount increased by 14 professionals. Now I will share some insights at the segment level. In Corporate Finance & Restructuring, revenues of $300.4 million increased 8.4% compared to the prior-year quarter. The increase in revenues was primarily due to higher demand for restructuring and business transformation services, which was partially offset by lower demand for transaction services. Adjusted segment EBITDA of $50 million, or 16.7% of segment revenues, compared to $55 million, or 19.8% of segment revenues, in the prior-year quarter. The decrease in adjusted segment EBITDA was primarily due to higher compensation, which includes the impact of a 15.5% increase in billable headcount and higher SG&A expenses. Restructuring revenues grew 32% year-over-year as we successfully helped clients in a variety of verticals such as healthcare, utilities, software and services, media and entertainment and airlines. Business transformation revenues grew 8% year-over-year and transaction revenues decreased 19%. The share of restructuring revenues increased from 40% in Q2 of 2022 to 49% in Q2 of 2023. The share of business transformation and transaction revenues declined from 60% in Q2 of 2022 to 51% in Q2 of 2023. On a sequential basis, revenues increased $0.5 million or 0.2%. Growth in restructuring revenues slowed to 4% while transaction revenues increased 9% from the low level we saw in Q1 2023. This growth was offset by a 13% sequential decline in business transformation revenues as there was a slowdown in activity with several significant matters. Adjusted segment EBITDA decreased $5 million as increased compensation, which includes the impact of annual salary increases, and a 2% increase in billable headcount more than offset the increase in revenues. Turning to FLC. Revenues of $182.2 million increased 10.9% compared to the prior-year quarter. The increase in revenues was primarily due to higher demand and realized bill rates for investigations and data and analytics services. Adjusted segment EBITDA of $21.1 million, or 11.6% of segment revenues, compared to $16.7 million, or 10.2% 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, higher contractor expenses and an increase in SG&A expenses. Sequentially, revenues increased $8.8 million, or 5.1%, primarily due to increased demand for investigations and health solutions services, which was partially offset by lower demand for data and analytics services. Adjusted segment EBITDA increased by $2.5 million. Our Economic Consulting segment's revenues of $201.8 million increased 23% compared to the prior-year quarter. The increase in revenues was primarily due to higher realized bill rates, primarily from the recognition of revenues previously deferred and higher demand for non-M&A-related antitrust, M&A-related antitrust and international arbitration services. Adjusted segment EBITDA of $35.5 million, or 17.6% of segment revenues, compared to $21.6 million, or 13.2% 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, primarily related to higher variable compensation and an 11.1% increase in billable head count, as well as higher SG&A expenses. Sequentially, revenues increased $32.2 million, or 19%, and adjusted segment EBITDA increased by $21.3 million. Revenue growth was led by our non-M&A-related antitrust, M&A-related antitrust and international arbitration services. As I mentioned on our Q1 earnings call, last quarter, we experienced more than typical deferral of revenues from conditions for revenue recognition not being met. This quarter, we experienced more than typical reversals of deferred revenue, including one large matter in which we recorded $7.6 million in revenues from prior periods, which benefited adjusted segment EBITDA by $5.3 million. In Technology, revenues of $97.4 million increased by 25.3% compared to the prior year quarter. The increase in revenues was primarily due to higher demand for investigations and litigation services, which was partially offset by lower demand for information governance, privacy and security services. Adjusted segment EBITDA of $20.1 million, or 20.6% of segment revenues, compared to $8.4 million, or 10.8% 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 a 16.2% increase in billable headcount. Sequentially, revenues increased $6.8 million, or 7.5%, primarily due to increased demand for investigations and litigation services. Adjusted segment EBITDA increased by $4.7 million. Revenues in Strategic Communications segment of $82.7 million increased 15% 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 $12.3 million, or 14.8% of segment revenues, compared to $11.5 million, or 16% 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 a 13.1% increase in billable headcount and higher SG&A expenses. Sequentially, revenues increased $9.6 million, or 13.1%, primarily due to higher demand for public affairs and corporate reputation services as we assisted clients across a broad range of industries. Adjusted segment EBITDA increased by $2.7 million. Let me now discuss key cash flow and balance sheet items. Net cash used in operating activities of $11 million compared to $35 million of net cash provided by operating activities for the second quarter of 2022. The year-over-year increase in net cash used in operating activities was primarily due to an increase in salaries, largely related to headcount growth and higher operating expenses and income tax payments, which was partially offset by an increase in cash collections. Cash collections in the quarter did not keep pace with the growth in revenues, in part due to a transition of billing during the quarter to our new ERP system. Free cash flow was an outflow of $22 million in the quarter. Total debt net of cash of $137.2 million on June 30, 2023, compared to $60.5 million on June 30, 2022, and $122.7 million at March 31, 2023. Turning to guidance. Even with the recognition of significant prior deferred revenue in our Economic Consulting segment, relative to our expectations, our results this quarter did not adequately offset a weaker-than-expected first quarter. And with two quarters behind us, we are now lowering our guidance for the year. We now expect revenues will range between $3.33 billion and $3.4 billion, taking the top end of our range down from our previous range of between $3.33 billion and $3.47 billion. We now expect EPS to range between $6.50 and $7.20, which is down from our previous range of between $6.80 and $7.70. While we are lowering the top end of our revenue range, the midpoint of our updated guidance ranges for revenue and EPS still imply a stronger second half of 2023 compared to the first half of the year. Our updated guidance is shaped by five key factors. First, we are operating against a backdrop of uncertain economic forecasts. Credit is now becoming more available, thereby possibly slowing the pace of restructuring growth, though not yet loose enough for corporations to become less hesitant on M&A. As I said in my earlier remarks, sequential growth in restructuring from Q1 2023 to Q2 2023 was 4%, which is down from 6% growth from Q4 2022 to Q1 2023 and down from 18% growth from 3Q 2022 to 4Q 2022. We are reflecting this slowed restructuring growth trajectory in our guidance. Second, we continue to face cost pressures from both inflation and the impact in the short term of having more headcount than we anticipated from lower staff attrition among other things. Total attrition of 6.7% in the first half of 2023 compares with 9.9% in the first half of 2022. Third, we are moderating hiring in practices with low utilization while still remaining steadfast in our commitment to attract talented professionals, even if it negatively impacts our earnings in the short term. In the fall, we are set to welcome 320 graduates from campus, and we are seeing opportunities to hire superb senior talent across the globe. Fourth, we expect SG&A in the second half of the year to be lower than in the first half of the year. We had several client and partner meetings in the first half that will not recur in the second. Offsetting that, annual salary increases were effective across the company on April 1. And finally, typically, the fourth quarter is a weaker quarter for us because of both an increase in time off during the holidays for our employees and a seasonal business slowdown. Before I close, I want to emphasize a few key themes that I believe distinguish our company. First, it is a striking testimonial for our practitioners and their relationships and the relevance of their expertise in these times that all our segments reported record revenues this quarter. Second, both in our core and adjacent practices, we are finding opportunities to grow globally. Third, we view our low attrition and the quality and quantity of professionals coming to us as verification that FTI is a great place to work. Verification that has also been validated by external recognition from Forbes and Consulting Magazine, among others. And finally, our balance sheet remains exceptionally strong, and we have the ability to boost shareholder value through share buybacks, organic growth and acquisitions when we see the right ones. With that, let's open up the call for your questions.

We will now begin the question-and-answer session. Today's first question comes from Andrew Nicholas with William Blair. Please go ahead.

Hi, good morning. Thanks for taking my questions. I wanted to first ask on the cost side. I think you both mentioned inflation pressuring cost as it's costing more, obviously, to hire people and keep people. I'm wondering if there's any kind of mismatch there as it relates to bill rates also going up. Is that pressuring the first half more so than you would expect it to pressure second half or even looking ahead to '24? Or are you having a harder time than expected passing through that dynamic to the bill rate side?

Let me address that. We're a complex business with many components operating in different regions globally. Last year, we struggled a bit with raising billing rates, but I don't think that's the main reason for this year's shortfall. There are several areas where we're not achieving expected realizations, and a significant factor has been lower utilization. For instance, our restructuring business hasn't performed as well. It's not that we failed to raise rates in line with inflation or that there's a lack of understanding in achieving realization, but lower utilization negatively impacts revenue. It's a combination of these factors. While last year we were indeed slow to raise rates and had less commitment to realization than necessary, I'm not certain that's the main driver of the shortfall in the first half of this year.

Understood. That's helpful. And then I wanted to ask on guidance. It sounds like you're lowering your expectation for the pace of restructuring growth, which makes sense. I'm wondering if there is kind of an offsetting increased assumption on the M&A front, if we do kind of thread the needle in terms of a soft landing here or what level of conservatism is there in terms of larger deal activity? It seems like the transaction practice picked up a bit of an easier first quarter comp. Just wondering kind of how you're seeing that or if the back half not only is expecting slower restructuring growth but also still relatively modest acceleration on that front.

Andrew, that's exactly it. At the midpoint, we are expecting exactly what you said. Slower restructuring growth and moderate growth in transactions. And there's a range around that midpoint.

Good morning. And thank you for taking my questions.

Good morning, James.

So we just received proposed antitrust guidelines in the U.S. as well as some changes to Hart-Scott-Rodino. How do you see these as a catalyst for your business broadly? And maybe if you could just help us understand in which segments you think you might benefit. And then outside of the U.S., just any update on the antitrust dialogue and how that should or should not affect your business?

Let me start with a general statement, and then I'll check if Ajay wants to provide more details. I believe we have the top group of antitrust experts globally, and I think we're ahead by a significant margin in most regions. Any developments in antitrust, whether it's private litigation, public litigation, or investigations by regulatory bodies, drive demand because the stakes are very high. Many would have expected our E-Con business to slow this year due to a weaker M&A market. While our E-Con business had a slow start and faced some deferrals, it remains strong. As regulatory changes continue, there is a tendency for increased demand for the best professionals in the world, which we have.

Okay. That's very clear. Thank you, Steve. You touched on E-Con consulting a little bit. There's obviously a tremendous sequential growth in the business this quarter, which is great. Is this the right normalized level to build off going forward? Or were there any sort of one-time factors in there related to deferred revenue for the first quarter? I'm just trying to figure out what we should put in our models going forward there.

Well, there clearly were one-time factors. Let me have Ajay talk to you about that, but that's an important point.

James, a better approach would be to sum the first two quarters and divide by two. This is on the revenue side. That will serve as your launch pad going into the third quarter.

Okay. That's extremely clear. And my last one is just around the U.S. presidential election. We're entering into an election year in the U.S. next year. And historically, you have had a step down in revenue in Forensic and Litigation Consulting around those events. Maybe you could just speak to what you think this coming election could mean for the business growth for next year?

James, I really can't say for certain. What I can share is that in my past experience leading a significant part of BCG, we often discussed external markets when the company wasn't performing well. However, once we began to do better, that conversation shifted. While external markets do have an impact on us, I don't think the 2008 election results are applicable today. When we bring in talented individuals who are keeping an eye on the markets, there may be slow periods due to unexpected events. We've had concerns about how Brexit might impact Europe, for example. In my view, what shapes our future over a 12 to 18 month span is what we should concentrate on. Otherwise, we risk constantly trying to predict uncertain outcomes of elections or nominations, which can be quite unreliable. Instead, we focus on ensuring we have the right services for our clients and how potential changes in the election might align us with their needs. If we face short-term disruptions, we adapt to that. I wish I could provide a clearer answer, James, but that’s how I see it.

Thank you. Good morning. Will there be G&A leverage in '23? And if not, when?

We expect lower G&A in the second half compared to the first half, along with higher revenue growth at the midpoint. Therefore, we anticipate G&A leverage in the second half.

And would that be true for 2023 versus '22? Just on an annualized basis rather than just looking at the discrete guidance period of half the year?

I'm not certain about the comparison between '23 and '22; I need to contemplate that further. SG&A has increased, which reflects some inflationary pressures. Costs for flights and hotels have risen significantly. Regarding the pay increases, which are certainly warranted, those cannot be transferred to the clients. So, we are facing those challenges, but I believe conditions are improving.

Let me add something to that. A significant portion of our SG&A costs, such as flights, is influenced by our billable headcount. As we increase our billable headcount, open new offices, and acquire new real estate and equipment, our expenses rise accordingly. Historically, in professional services, if your revenue grows faster than your headcount, you've achieved leverage on your SG&A. However, today, to gain substantial leverage, your revenue needs to outpace both headcount and inflation. This year, our SG&A hasn't spiraled out of control; we've made some deliberate expenditures while experiencing headcount growth without corresponding revenue growth. Once our revenue increases more rapidly than our billable headcount and inflation, we will see significant leverage, but we need to reach that point. Currently, we face uncertainty regarding second half revenue, which we have provided guidance on. Does that clarify things, Tobey?

It does, but maybe you could dig into what are the things internally you are toggling that are under your control, that are under your discretion differently in response to the changing conditions? So either slowing office growth. I understand you're going to hire billable headcount, particularly senior people who can generate revenue when they're available. But you could hire less junior staff to improve your utilization. So describe some of those toggles if you could.

Let me begin by saying what we are not doing. If the company were truly in distress, we could choose to halt the more than 300 new hires scheduled for September. Some companies might opt for such measures, postponing various initiatives. We are not taking that route, as it can damage our reputation on campus and negatively affect junior employees. While it might provide a short-term financial boost, we believe it does not contribute to our long-term success. We trust that you have confidence in the company's discipline, and we are not interested in quick fixes that benefit us for just a quarter or two at the cost of the company's future. Interestingly, during challenging times, the best talent can often be found, and we are committed to seizing those opportunities, even when some areas may be underutilized. This does not mean we intend to operate parts of our business at low utilization rates indefinitely. If we find outstanding talent and have faith in our business model, we move forward with hiring. We are not reversing our core strategy, but we do make adjustments as needed. Regarding real estate, landlords have yet to align their rates with current market realities, which is why we are cautious about expanding our real estate footprint at this time. We are also hesitating to backfill positions in poorly performing areas unless we encounter exceptional candidates. We recognize our responsibility to deliver long-term value to our shareholders and act with that in mind. Ultimately, our goal is to achieve growth while maintaining the discipline that has contributed to our company's success, striking a balance between these factors. Does that clarify things for you, Tobey?

Sure. What was growth in Health Solutions? And what is the outlook?

We don't provide specific sub-practice numbers like that, Tobey.

I understand your point, but you mentioned that this segment is driving growth. While I don't expect an exact percentage, could you address the question without referring to specific numbers?

Yeah. As we said in our prepared remarks, we had growth in that sub-practice within the FLC segment.

Okay. In Tech, you cited a strong performance. Is that market share gains, market growth? And if market share gains, what do you think is fueling it?

I believe we are gaining market share in that business, and we have been for several years. At one time, we weren't performing as well, but the team changed the strategy, implemented a new plan, and marketed aggressively. It took time for law firms that had not worked with us recently to give us a chance again. When they do, they often realize that our service is not a commodity, leading to repeat business and increased market share within those firms. This trend is not limited to the U.S. but is also occurring globally. While market conditions do matter, this is not a strong M&A market, yet we are still securing many excellent opportunities. Overall, I would say we are capturing a significant amount of market share.

Okay, my final question is just a general check-in. Is the main concern that company performance over the next few quarters is in a transition period between a handoff and a restructuring cycle that hasn’t been strong, and we are waiting for a favorable M&A cycle? I believe Chairman Pawle mentioned that the Fed no longer expects a recession.

I think that's the concern. You can always create significant worries. If you want to depict the worst-case scenario, you could say the economy develops exactly as people hope. Not only do we avoid a recession, but interest rates return to their previous levels. Then everyone facing a big refinancing wave in '25 can refinance, and the bankruptcy market returns to its lows seen in '21 and '22. Those scenarios can be imagined. In such cases, I believe there would be an M&A boom, but timing could be an issue. We believe we have positions that will allow us to demonstrate growth in Corporate Finance and more broadly over an extended period. Your guess is as good as mine regarding whether we might struggle for a couple of quarters. I just don't have that clear of a forecast.

Thank you very much.

Ladies and gentlemen, the call has now concluded.

Let me say thank you to all of you for the continued attention and support, and we look forward to engaging with you all further down the road. Thank you.

Thank you for your participation. You may now disconnect your lines.