8-K

FTI CONSULTING, INC (FCN)

8-K 2023-10-30 For: 2023-10-26
View Original
Added on April 07, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2023

FTI CONSULTING, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland 001-14875 52-1261113
(State or Other Jurisdiction<br> <br>of Incorporation) (Commission<br> <br>File Number) (I.R.S. Employer<br> <br>Identification No.)
555 12th Street NW, Washington, D.C. 20004
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(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (202) 312-9100

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br> <br>Symbols(s) Name of each Exchange<br> <br>on which Registered
Common Stock, par value $0.01 per share FCN New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01. Other Events.

On October 26, 2023, FTI Consulting, Inc. (“FTI Consulting”) announced that it has modified the composition of our reportable segments to reflect changes in how we operate our business. Effective July 1, 2023, FTI Consulting transferred 127 billable professionals in our health solutions practice within our Forensic and Litigation Consulting (“FLC”) segment who focus on business transformation services in the healthcare and life sciences sector to the business transformation & strategy practice within our Corporate Finance & Restructuring (“Corporate Finance”) segment. This change aligns this group of professionals with the broader business transformation capabilities within the Corporate Finance segment. Eighty-three billable professionals who focus on advisory and managed care services within the heath solutions practice remained in the FLC segment. FTI Consulting is issuing this Current Report on Form 8-K in order to provide investors with unaudited segment selected summary financial information and segment selected operating data for the Corporate Finance and FLC segments that reflect the modified composition of our reportable segments described above.

The unaudited segment selected summary financial information and operating data included in Exhibit 99.1 to this Current Report on Form 8-K, incorporated herein by reference, provides recast unaudited summary financial information and other select operating data for the Corporate Finance and FLC segments for the previously reported years ended December 31, 2020, December 31, 2021 and December 31, 2022, and the previously reported quarters in each such year and the first and second quarters for the year ending December 31, 2023 to conform to the current period presentation reflected in FTI Consulting’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.

The information included in this Form 8-K does not amend or restate FTI Consulting’s previously reported consolidated financial statements for any period and is presented for information purposes only. It does not change FTI Consulting’s previously reported historical financial information other than as required to reflect the modified composition of the Corporate Finance and FLC reporting segments as described above. This information should be read in conjunction with FTI Consulting’s quarterly report on Form 10-Q for the quarter ended September 30, 2023 filed with the Securities and Exchange Commission on October 26, 2023.

Item 9.01(d). Exhibits
Exhibit<br>No. Description
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99.1 Recast Segment Selected Information of FTI Consulting, Inc.
104 The Cover Page from FTI Consulting’s Current Report on Form 8-K dated October 26, 2023, formatted in Inline XBRL.

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, FTI Consulting, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FTI CONSULTING, INC.
Dated: October 30, 2023 By: /s/ CURTIS P. LU
Name: Curtis P. Lu
Title: General Counsel

2

EX-99.1

Exhibit 99.1

FTI CONSULTING, INC.<br>SEGMENT SELECTED FINANCIAL DATA<br>(Unaudited)  <br>(All numbers in 000s, except for percentages) <br><br><br><br><br><br>****
SEGMENT Q1 2023 FY2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 FY2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020
CORPORATE FINANCE & RESTRUCTURING
Revenues 317,912 **** $ 315,652 **** $ 1,147,118 **** $ 305,314 **** $ 282,029 **** $ 294,735 **** $ 265,040 **** $ 979,350 **** $ 243,144 **** $ 258,826 **** $ 241,016 **** $ 236,364 **** $ 940,375 **** $ 227,429 **** $ 243,807 **** $ 252,174 **** $ 216,965 ****
% of Total Revenues 36.7 % 39.1 % 37.9 % 39.4 % 36.3 % 39.0 % 36.6 % 35.3 % 35.9 % 36.9 % 33.9 % 34.4 % 38.2 % 36.3 % 39.2 % 41.5 % 35.8 %
Adjusted Segment EBITDA 45,510 **** $ 51,847 **** $ 214,809 **** $ 49,126 **** $ 53,519 **** $ 58,154 **** $ 54,010 **** $ 158,019 **** $ 23,755 **** $ 54,354 **** $ 40,924 **** $ 38,986 **** $ 216,439 **** $ 35,018 **** $ 56,469 **** $ 75,374 **** $ 49,578 ****
Adjusted Segment EBITDA Margin 14.3 % 16.4 % 18.7 % 16.1 % 19.0 % 19.7 % 20.4 % 16.1 % 9.8 % 21.0 % 17.0 % 16.5 % 23.0 % 15.4 % 23.2 % 29.9 % 22.9 %
FORENSIC AND LITIGATION CONSULTING
Revenues 164,760 **** $ 157,739 **** $ 579,933 **** $ 147,879 **** $ 143,289 **** $ 146,580 **** $ 142,185 **** $ 544,454 **** $ 126,334 **** $ 136,759 **** $ 140,701 **** $ 140,660 **** $ 470,084 **** $ 119,573 **** $ 111,912 **** $ 100,218 **** $ 138,381 ****
% of Total Revenues 19.1 % 19.6 % 19.1 % 19.1 % 18.5 % 19.5 % 19.7 % 19.6 % 18.7 % 19.4 % 19.8 % 20.6 % 19.1 % 19.0 % 18.0 % 16.5 % 22.9 %
Adjusted Segment EBITDA 25,598 **** $ 21,784 **** $ 63,573 **** $ 17,109 **** $ 16,175 **** $ 13,503 **** $ 16,786 **** $ 70,008 **** $ 6,970 **** $ 17,901 **** $ 17,252 **** $ 27,885 **** $ 33,765 **** $ 8,009 **** $ 13,337 **** $ (8,157 ) $ 20,576 ****
Adjusted Segment EBITDA Margin 15.5 % 13.8 % 11.0 % 11.6 % 11.3 % 9.2 % 11.8 % 12.9 % 5.5 % 13.1 % 12.3 % 19.8 % 7.2 % 6.7 % 11.9 % (8.1 )% 14.9 %
FTI CONSULTING, INC.<br>SELECTED OPERATING DATA<br>(Unaudited)
SEGMENT Q1 2023 FY2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 FY2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020
CORPORATE FINANCE & RESTRUCTURING
Revenue-Generating Headcount (as of period 2,170 2,152 2,100 2,100 2,050 1,898 1,887 1,822 1,822 1,814 1,726 1,777 1,738 1,738 1,690 1,434 1,322
Average Billable Rate (1) 482 $ 478 $ 456 $ 478 $ 445 $ 459 $ 440 $ 449 $ 441 $ 457 $ 445 $ 454 $ 465 $ 470 $ 455 $ 488 $ 447
Utilization (2) 58 % 59 % 60 % 56 % 61 % 62 % 62 % 58 % 55 % 61 % 59 % 59 % 62 % 52 % 63 % 70 % 67 %
FORENSIC AND LITIGATION CONSULTING
Revenue-Generating Headcount (as of period 1,441 1,427 1,430 1,430 1,464 1,380 1,383 1,376 1,376 1,366 1,305 1,274 1,260 1,260 1,289 1,254 1,319
Average Billable Rate (1) 388 $ 375 $ 359 $ 370 $ 360 $ 354 $ 350 $ 348 $ 349 $ 351 $ 338 $ 352 $ 332 $ 336 $ 333 $ 323 $ 334
Utilization (2) 58 % 57 % 54 % 53 % 53 % 56 % 56 % 56 % 50 % 55 % 61 % 60 % 51 % 52 % 49 % 46 % 58 %
(1)  For engagements<br>where revenues are based on number of hours worked by our billable professionals and fixed-fee arrangements, average billable rate per hour is calculated by dividing revenues (excluding revenues from success<br>fees, pass-through revenues and outside consultants) for a period by the number of hours worked on client assignments during the same period.<br>(2)  We calculate the utilization rate for our<br>billable professionals by dividing the number of hours that all of our billable professionals worked on client assignments during a period by the total available working hours for all of our billable professionals during the same period. Available<br>hours are determined by the standard hours worked by each employee, adjusted for part-time hours, U.S. standard work weeks and local country holidays. Available working hours include vacation and professional training days but exclude holidays.<br>Utilization rates are presented for our segments that primarily bill clients on an hourly basis.  <br>FTI CONSULTING, INC.<br>RECONCILIATION OF SEGMENT OPERATING INCOME (LOSS) TO ADJUSTED SEGMENT EBITDA<br>(Unaudited) <br><br><br><br><br><br>****
(All numbers in 000s)
Q1 2023 FY2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 FY2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 FY2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020
CORPORATE FINANCE & RESTRUCTURING
Segment Operating Income 42,116 **** $ 47,976 **** $ 197,424 **** $ 43,008 **** $ 49,865 **** $ 54,079 **** $ 50,472 **** $ 148,179 **** $ 20,567 **** $ 50,999 **** $ 40,811 **** $ 35,802 **** $ 204,465 **** $ 31,749 **** $ 52,580 **** $ 72,880 **** $ 47,256 ****
Depreciation and amortization 2,284 1,959 6,965 1,734 1,745 1,768 1,718 5,485 1,347 1,482 1,359 1,297 4,654 1,405 1,151 1,079 1,019
Amortization of intangible assets 1,110 1,912 7,976 1,940 1,909 2,307 1,820 7,485 1,841 1,873 1,884 1,887 6,455 1,864 1,873 1,415 1,303
Special charges 2,444 2,444 865 865
contingent consideration (3,130 ) (3,130 )
Adjusted Segment EBITDA 45,510 **** $ 51,847 **** $ 214,809 **** $ 49,126 **** $ 53,519 **** $ 58,154 **** $ 54,010 **** $ 158,019 **** $ 23,755 **** $ 54,354 **** $ 40,924 **** $ 38,986 **** $ 216,439 **** $ 35,018 **** $ 56,469 **** $ 75,374 **** $ 49,578 ****
FORENSIC AND LITIGATION CONSULTING
Segment Operating Income (Loss) 23,885 **** $ 20,288 **** $ 52,693 **** $ 11,047 **** $ 14,653 **** $ 11,870 **** $ 15,123 **** $ 64,229 **** $ 5,524 **** $ 16,418 **** $ 15,784 **** $ 26,503 **** $ 24,463 **** $ 6,479 **** $ 8,521 **** $ (9,451 ) $ 18,914 ****
Depreciation and amortization 1,490 1,312 5,289 1,206 1,280 1,388 1,415 4,885 1,199 1,234 1,244 1,208 5,022 1,357 1,165 1,124 1,376
Amortization of intangible assets 223 184 977 242 242 245 248 894 247 249 224 174 800 173 171 170 286
Special charges 4,614 4,614 3,480 3,480
Adjusted Segment EBITDA 25,598 **** $ 21,784 **** $ 63,573 **** $ 17,109 **** $ 16,175 **** $ 13,503 **** $ 16,786 **** $ 70,008 **** $ 6,970 **** $ 17,901 **** $ 17,252 **** $ 27,885 **** $ 33,765 **** $ 8,009 **** $ 13,337 **** $ (8,157 ) $ 20,576 ****

All values are in US Dollars.