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Press release from PR Newswire

FTI Consulting Reports Fourth Quarter and Full Year 2012 Results

Thursday, February 28, 2013

FTI Consulting Reports Fourth Quarter and Full Year 2012 Results07:30 EST Thursday, February 28, 2013- Record Fourth Quarter Revenues of $399.3 Million - Fourth Quarter Adjusted EPS of $0.67 (excluding goodwill impairment charge) - Full Year Adjusted EPS of $2.30 (excluding goodwill impairment charge) - 2013 Guidance for Revenues of $1.63 to $1.70 Billion and Diluted EPS of $2.40 to $2.60WEST PALM BEACH, Fla., Feb. 28, 2013 /PRNewswire/ -- FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value (the "Company"), today released its financial results for the fourth quarter and full year ended December 31, 2012.For the quarter, revenues increased 2.2 percent to a fourth quarter record of $399.3 million. On a GAAP basis, fully diluted loss per share was ($2.15) for the quarter, including a non-cash goodwill impairment charge of $110.4 million which reduced fully diluted EPS by $2.75 per share. The impairment charge has no impact on the Company's liquidity, cash flow, borrowing capability or operations. Adjusted earnings per share ("EPS") were $0.67, and Adjusted EBITDA was $68.1 million, or 17.1 percent of revenues. Adjusted EPS, Adjusted EBITDA and Adjusted Segment EBITDA are non-GAAP measures defined elsewhere in this press release and are reconciled to GAAP measures in the financial tables that accompany this press release.Commenting on these results, Jack Dunn, FTI President and Chief Executive Officer said, "Our fourth quarter results provide a promising foundation for the launch of our 31st year.  We saw quarterly growth in three of our businesses and enjoyed solid operating performance and strong cash flow. December was the strongest cash collection month in our history and, coupled with the successful refinancing of our long term debt, provides us with a powerful balance sheet and financial position going forward.""For 2013, we will continue our focus on organic growth and cash flow.  We will use our cash to continue our stock repurchase program and pursue tuck-in acquisitions where we can enhance our industry expertise, service capability or geographic scale. We see excellent prospects for our industry initiatives, particularly in Telecommunications, Media and Technology; Energy; Healthcare; Insurance; and Global Risk and Investigations. In Economic Consulting our roster of potential merger and acquisition matters is approaching the highest levels in firm history. If this is truly the harbinger of a revitalized M&A market in 2013, nothing could be better across our entire firm."Cash and Capital Management  Cash collections during the quarter were $461.0 million, including a record $180.5 million in December, compared to revenues in the quarter of $399.3 million. Cash and cash equivalents were $156.8 million at December 31, 2012.In the fourth quarter, the Company repurchased 923,379 shares of its common stock for an aggregate amount of approximately $30 million or an average price of $32.51 per share. This brought total stock repurchases under the Company's June 2012 $250 million stock repurchase program to 1,681,029 shares for approximately $50 million or an average price of $29.76 per share.In the quarter, the Company completed a series of debt refinancing transactions which increased access to capital and extended debt maturities at lower interest rates. In July the Company also retired its 3 3/4% convertible senior subordinated notes using $73.9 million of internally generated funds reducing total outstanding debt by that amount as of December 31, 2012.  At December 31, 2012 the Company had no borrowings outstanding under its $350 million senior secured bank credit facility.Fourth Quarter Segment ResultsCorporate Finance/Restructuring  Revenues in the Corporate Finance/Restructuring segment increased 13.7 percent to $123.2 million from $108.4 million last year. Revenues were driven by strong results in North America including improved realization on certain client matters, higher success fees and revenue increases from the Asia Pacific region, largely resulting from the acquisition of an Australian restructuring business. Adjusted Segment EBITDA was $28.0 million, or 22.7 percent of segment revenues, compared with $38.5 million, or 35.5 percent of segment revenues, in the prior year quarter. Adjusted Segment EBITDA for the quarter was reduced by a one-time transfer tax payment of $2.4 million related to the acquisition of the Australian restructuring business in 2012.  Adjusted Segment EBITDA in the prior year quarter included a revaluation gain of $9.0 million as compared to $1.4 million in the current year quarter.  Excluding revaluation gains and the $2.4 million transfer tax, Adjusted Segment EBITDA was $29.0 million compared to $29.4 million in the prior year quarter.Economic Consulting  Revenues in the Economic Consulting segment increased 6.9 percent to $95.7 million from $89.6 million in the prior year quarter. Revenues were driven by strong activity in merger/acquisition reviews, antitrust litigation, financial economics, international arbitration and regulatory consulting engagements particularly in the energy, telecommunications and transportation industries. Adjusted Segment EBITDA was $21.5 million, or 22.4 percent of segment revenues, compared to $16.4 million, or 18.3 percent of segment revenues, in the prior year quarter reflecting operating leverage from higher demand and better realization coupled with lower variable compensation costs. Forensic and Litigation Consulting  Revenues in the Forensic and Litigation Consulting segment decreased 8.2 percent to $82.6 million from $90.0 million in the prior year quarter. The segment's global risk and investigations practice in Latin America continued to grow, while the North America region continued to face challenging markets. Adjusted Segment EBITDA was $9.8 million in the quarter, or 11.9 percent of segment revenues, compared to $16.1 million, or 17.9 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA margin was primarily due to reduced revenues coupled with a ramp up in hiring in the back half of the year for our Governance, Risk and Compliance; Construction Solutions; and Global Risk and Investigations initiatives.Technology  Revenues in the Technology segment decreased 11.3 percent to $47.6 million from $53.6 million in the prior year quarter due to the winding down of certain large investigation and litigation related matters and lower pricing due to competitive factors and business mix. Adjusted Segment EBITDA was $15.5 million or 32.5 percent of segment revenues, compared to $18.6 million, or 34.8 percent of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA margin reflected the impact of lower revenues, partially offset by lower research and development costs.Strategic Communications  Revenues in the Strategic Communications segment increased 2.2 percent to $50.3 million from $49.2 million in the prior year quarter.  Adjusted Segment EBITDA was $8.7 million, or 17.4 percent of segment revenues, compared to $7.5 million, or 15.3 percent of segment revenues in the prior year quarter. Among areas of growth were matters involving shareholder activism and the beginnings of capital markets activity. In addition, the segment's expertise has proved a catalyst for our industry initiatives in energy, life sciences and government affairs. The goodwill impairment charge of $110.4 million noted above is related to prior investments made in this segment.2013 Guidance  Based on current market conditions and the factors described above, the Company estimates that revenues for 2013 will be between $1.63 billion and $1.70 billion and diluted Adjusted EPS will be between $2.40 and $2.60. This guidance assumes no acquisitions.Fourth Quarter Conference Call  FTI Consulting will hold a conference call for analysts and investors to discuss fourth quarter financial results at 9:00 AM Eastern Time on February 28, 2013. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website at www.fticonsulting.com.About FTI Consulting  FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With 3,915 employees located in 24 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management, strategic communications and restructuring. The Company generated $1.58 billion in revenues during fiscal year 2012. More information can be found at www.fticonsulting.com.Use of Non-GAAP Measures  Note: We define Adjusted EBITDA as net income before income tax provision, other income (expense), depreciation, amortization of intangible assets, goodwill impairment charge and special charges. We define Adjusted Segment EBITDA as a segment's share of consolidated operating income before depreciation, amortization of intangible assets, goodwill impairment charge and special charges. We define Adjusted Net Income and Adjusted EPS as net income and earnings per diluted share, respectively, excluding the net impact of any goodwill impairment charge, any special charges and any loss on early extinguishment of debt that were incurred in that period. Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted EPS and Adjusted Net Income are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. These non-GAAP 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 (Loss). We believe that these measures can be useful operating performance measures for evaluating our results of operations as compared from period-to-period and as compared to our competitors. EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in our industry. We use Adjusted EBITDA and Adjusted Segment EBITDA to evaluate and compare the operating performance of our segments. Reconciliations of GAAP to Non-GAAP financial measures are included in the accompanying tables to 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 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 management's expectations, beliefs and estimates will be achieved, and the Company's actual results may differ 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 flow 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, adverse financial, real estate or other market and general economic conditions, which could impact each of our segments differently, the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the heading "Item 1A Risk Factors" in the Company's most recent Form 10-K and in the Company's other filings with the Securities and Exchange Commission, including the risks set forth under "Risks Related to Our Operating Segments" and "Risks Related to Our Operations". 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.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)FOR THE YEAR ENDED DECEMBER 31, 2012 AND 2011(in thousands, except per share data)(unaudited)Year EndedDecember 31,20122011Revenues$            1,576,871$           1,566,768Operating expensesDirect cost of revenues980,532956,908Selling, general and administrative expense378,016373,295Special charges29,55715,212Acquisition-related contingent consideration(3,064)(6,465)Amortization of other intangible assets22,40722,371Goodwill impairment charge110,387-1,517,8351,361,321Operating income59,036205,447Other income (expense)Interest income and other5,6596,304Interest expense(56,731)(58,624)Loss on early extinguishment of debt(4,850)-(55,922)(52,320)Income before income tax provision3,114153,127Income tax provision40,10049,224Net income (loss)$               (36,986)$              103,903Earnings (loss)  per common share - basic$                   (0.92)$                    2.53Weighted average common shares outstanding - basic40,31641,131Earnings (loss) per common share - diluted$                   (0.92)$                    2.39Weighted average common shares outstanding - diluted40,31643,473Other comprehensive income (loss), net of tax:Foreign currency translation adjustments, including tax expense   (benefit) of $654 and ($1,568) in 2012 and 2011, respectively$                 15,023$                (2,902)Other comprehensive income (loss), net of tax15,023(2,902)Comprehensive income (loss)$               (21,963)$              101,001 FTI CONSULTING, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)FOR THE THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011(in thousands, except per share data)(unaudited)Three Months EndedDecember 31,20122011Revenues$               399,345$              390,713Operating expensesDirect cost of revenues245,080233,005Selling, general and administrative expense94,05892,932Special charges--Acquisition-related contingent consideration(483)(9,004)Amortization of other intangible assets5,6345,576Goodwill impairment charge110,387-454,676322,509Operating income (loss)(55,331)68,204Other income (expense)Interest income and other1,156895Interest expense(13,124)(14,495)Loss on early extinguishment of debt(4,850)-(16,818)(13,600)Income (loss) before income tax provision(72,149)54,604Income tax provision13,72814,723Net income (loss)$               (85,877)$                39,881Earnings (loss)  per common share - basic$                   (2.15)$                    1.00Weighted average common shares outstanding - basic39,91339,932Earnings (loss) per common share - diluted$                   (2.15)$                    0.93Weighted average common shares outstanding - diluted39,91342,857Other comprehensive income (loss), net of tax:Foreign currency translation adjustments, including tax expense   of $654 and $0 in 2012 and 2011, respectively$                      403$                (3,684)Other comprehensive income (loss), net of tax403(3,684)Comprehensive income (loss)$               (85,474)$                36,197 FTI CONSULTING, INC.OPERATING RESULTS BY BUSINESS SEGMENT  Average  Revenue-Adjusted Billable GeneratingRevenuesEBITDA (1)MarginUtilizationRateHeadcount  (in thousands)  Three Months Ended December 31, 2012Corporate Finance/Restructuring$                 123,200$                        27,96322.7%64%$          465836Forensic and Litigation Consulting 82,5709,82711.9%67%$          402813Economic Consulting95,74021,45922.4%80%$          489474Technology  (2)47,55115,46432.5%N/MN/M277Strategic Communications  (2)50,2848,74217.4%N/MN/M593$                 399,34583,45520.9%2,993   Corporate (15,321)Adjusted EBITDA(1)$                        68,13417.1%Year Ended December 31, 2012Corporate Finance/Restructuring$                 459,231$                      108,96623.7%71%$          416836Forensic and Litigation Consulting 343,07452,74315.4%68%$          370813Economic Consulting391,62277,46119.8%81%$          493474Technology  (2)195,19457,20329.3%N/MN/M277Strategic Communications  (2)187,75025,01913.3%N/MN/M593$              1,576,871321,39220.4%2,993   Corporate (70,401)Adjusted EBITDA(1)$                      250,99115.9%Three Months Ended December 31, 2011Corporate Finance/Restructuring$                 108,352$                        38,46635.5%72%$          438692Forensic and Litigation Consulting89,98116,13417.9%68%$          325852Economic Consulting89,58016,39418.3%83%$          472433Technology  (2)53,60118,64934.8%N/MN/M290Strategic Communications  (2)49,1997,53215.3%N/MN/M582$                 390,71397,17524.9%2,849   Corporate (16,320)Adjusted EBITDA(1)$                        80,85520.7%Year Ended December 31, 2011Corporate Finance/Restructuring$                 427,813$                        97,63822.8%70%$          427692Forensic and Litigation Consulting365,32669,18018.9%69%$          330852Economic Consulting353,98167,02818.9%85%$          482433Technology  (2)218,73877,01135.2%N/MN/M290Strategic Communications  (2)200,91026,80113.3%N/MN/M582$              1,566,768337,65821.6%2,849   Corporate (66,046)Adjusted EBITDA(1)$                      271,61217.3%(1) We define Adjusted EBITDA as net income before income tax provision, other income (expense), depreciation, amortization of intangible assets, special charges and goodwill impairment charge.  Amounts presented in the Adjusted EBITDA column for each segment reflect the segments' respective Adjusted Segment EBITDA.  We define Adjusted Segment EBITDA as the segments' share of consolidated operating income before depreciation, amortization of intangible assets,  special charges and goodwill impairment charge.  Although Adjusted EBITDA and Adjusted Segment EBITDA are not measures of financial condition or performance determined in accordance with generally accepted accounting principles ("GAAP"), we believe that these measures can be a useful operating performance measure for evaluating our results of operations as compared from period to period and as compared to our competitors.  Adjusted EBITDA and Adjusted Segment EBITDA are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. These non-GAAP 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. See also our reconciliation of non-GAAP financial measures. (2) 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.RECONCILIATION OF NON-GAAP FINANCIAL MEASURESFOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2012 AND 2011(unaudited)Three Months Ended December 31,Year Ended December 31,2012201120122011Net income (loss)$           (85,877)$              39,881$           (36,986)$           103,903Add back:Special charges, net of tax effect (1)--19,1159,285Goodwill impairment charge(2)110,387110,387-Loss on early extinguishment of debt, net of tax(3)2,910-2,910-Adjusted Net Income$             27,420$              39,881$             95,426$           113,188Earnings (loss) per common share ? diluted$               (2.15)$                  0.93$               (0.92)$                 2.39Add back:Special charges, net of tax effect (1)--0.470.21Goodwill impairment charge(2)2.77-2.74-Loss on early extinguishment of debt, net of tax(3)0.07-0.07-Impact of denominator for diluted adjusted earnings per common share (4)(0.02)-(0.06)-Adjusted earnings per common share ? diluted $                 0.67$                  0.93$                 2.30$                 2.60Weighted average number of common shares outstanding ? diluted(4)40,99042,85741,57843,473(1) The tax effect takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). As a result, the effective tax rates for the adjustments for the years ended December 31, 2012 and 2011 were 35.3% and 39.0%, respectively. The tax expense related to the adjustments for the years ended December 31, 2012 and 2011 were $10.4 million or $0.26 impact on adjusted earnings per diluted share and $5.9 million or $0.14 impact on diluted earnings per share, respectively. (2)The goodwill impairment charge is non-deductible for income tax purposes and resulted in no tax benefit for the year ended December 31, 2012.(3) The tax effect takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). As a result, the effective tax rate for the adjustments for the three months and year ended December 31, 2012 were 40.0%. The tax expense related to the adjustments for the three months and year ended December 31, 2012 was $1.9 million or $0.05 impact on adjusted earnings per diluted share.  (4) For the three months and year ended December 31, 2012, the Company reported a net loss.  For such periods, the basic weighted average common shares outstanding equals the diluted weighted average common shares outstanding for purposes of calculating U.S. GAAP earnings per share because potentially dilutive securities would be antidilutive. For non-GAAP purposes, the per share and share amounts presented herein reflect the impact of the inclusion of share-based awards and convertible notes that are considered dilutive based on the impact of the add backs included in Adjusted Net Income above.RECONCILIATION OF NET INCOME (LOSS) AND OPERATING INCOME (LOSS) TO ADJUSTED EBITDA(in thousands)Three Months Ended December 31, 2012Corporate Finance / RestructuringForensic and Litigation ConsultingEconomic ConsultingTechnology Strategic Communi- cationsCorp HQTotalNet income (loss)$           (85,877)Interest income and other(1,156)Interest expense13,124Income tax provision13,728Loss on early extinguishment of debt4,850Operating income (loss)$               25,482$               8,449$             20,311$             10,239$         (103,459)$           (16,353)$           (55,331)Depreciation and amortization8969037323,2396421,0327,444Amortization of other intangible assets1,5854754161,9861,172-5,634Special charges-------Goodwill impairment charge----110,387-110,387Adjusted EBITDA (1)$               27,963$               9,827$             21,459$             15,464$               8,742$           (15,321)$             68,134Year Ended December 31, 2012Net income (loss)$           (36,986)Interest income and other(5,659)Interest expense56,731Income tax provision40,100Loss on early extinguishment of debt4,850Operating income  (loss)$               87,367$             39,412$             71,992$             33,642$           (97,298)$           (76,079)59,036Depreciation and amortization3,4243,7152,86312,5012,5554,54629,604Amortization of other intangible assets6,2391,9441,6157,9464,663-22,407Special charges11,9367,6729913,1144,7121,13229,557Goodwill impairment charge-110,387110,387Adjusted EBITDA (1)108,96652,74377,46157,20325,019(70,401)250,991Three Months Ended December 31, 2011Net income $             39,881Interest income and other(895)Interest expense14,495Income tax provision14,723Loss on early extinguishment of debt-Operating income $               36,153$             14,723$             15,326$             13,891$               5,615$           (17,504)68,204Depreciation and amortization8638446692,7617541,1847,075Amortization of other intangible assets1,4505673991,9971,163-5,576Special charges-------Goodwill impairment charge-------Adjusted EBITDA (1)38,46616,13416,39418,6497,532(16,320)80,855Year Ended December 31, 2011Net income $           103,903Interest income and other(6,304)Interest expense58,624Income tax provision49,224Loss on early extinguishment of debt-Operating income $               78,923$             62,499$             60,890$             57,917$             19,066$           (73,848)205,447Depreciation and amortization3,4803,4232,55211,1682,9974,96228,582Amortization of other intangible assets5,7952,4191,4937,9264,738-22,371Special charges9,4408392,093--2,84015,212Goodwill impairment charge-------Adjusted EBITDA (1)97,63869,18067,02877,01126,801(66,046)271,612 (1) We define Adjusted EBITDA as net income before income tax provision, other income (expense), depreciation, amortization of intangible asset, special charge, loss on extinguishment of debt and goodwill impairment charge.  Amounts presented in the Adjusted EBITDA column for each segment reflect the segments' respective Adjusted Segment EBITDA.  We define Adjusted Segment EBITDA as the segments' share of consolidated operating income before depreciation, amortization of intangible assets, special charge and goodwill impairment charge.  Although Adjusted EBITDA and Adjusted Segment EBITDA are not measures of financial condition or performance determined in accordance with generally accepted accounting principles ("GAAP"), we believe that these measures can be a useful operating performance measure for evaluating our results of operations as compared from period to period and as compared to our competitors.  Adjusted EBITDA and Adjusted Segment EBITDA are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.  These non-GAAP 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 .   FTI CONSULTING, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2012 AND 2011(in thousands)(unaudited)Year Ended December 31,20122011Operating activitiesNet income (loss)$          (36,986)$         103,903Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization33,91928,582Amortization and impairment of other intangible assets22,58622,371Goodwill impairment charge110,387-Acquisition-related contingent consideration(3,064)(6,465)Provision for doubtful accounts 14,17912,586Non-cash share-based compensation 29,36137,352Excess tax benefits from share-based compensation(515)(1,597)Non-cash interest expense and loss on extinguishment of debt9,8248,439Other27(471)Changes in operating assets and liabilities, net of effects from acquisitions:Accounts receivable, billed and unbilled(3,691)(94,178)Notes receivable(25,730)(3,781)Prepaid expenses and other assets(1,895)3,933Accounts payable, accrued expenses and other(12,458)11,472Income taxes (6,816)22,227Accrued compensation(21,074)38,073Billings in excess of services provided12,134(8,618)                           Net cash provided by operating activities120,188173,828Investing activitiesPayments for acquisition of businesses, net of cash received (62,893)(62,346)Purchases of property and equipment(27,759)(31,091)Other246(211)                          Net cash used in investing activities(90,406)(93,648)Financing activitiesBorrowings under revolving line of credit75,00025,000Payments of revolving line of credit(75,000)(25,000)Payments of long-term debt and capital lease obligations(377,859)(6,994)Issuance of debt securities, net292,608-Payments of debt financing fees(2,848)-Cash received for settlement of interest rate swaps-5,596Purchase and retirement of common stock(50,032)(209,400)Net issuance of common stock under equity compensation plans1,59811,109Excess tax benefit from share-based compensation 5151,597Other(2,228)(637)                          Net cash used in financing activities(138,246)(198,729)Effect of exchange rate changes on cash and cash equivalents826(1,598)Net decrease in cash and cash equivalents(107,638)(120,147)Cash and cash equivalents, beginning of period264,423384,570Cash and cash equivalents, end of period$         156,785$         264,423 FTI CONSULTING, INC.CONSOLIDATED BALANCE SHEETSAT DECEMBER 31, 2012 AND DECEMBER 31, 2011(in thousands, except per share amounts)December 31,December 31,20122011AssetsCurrent assets   Cash and cash equivalents$          156,785$          264,423   Restricted cash1,19010,213   Accounts receivable:       Billed receivables314,491335,758       Unbilled receivables208,797173,440       Allowance for doubtful accounts and unbilled services(94,048)(80,096)          Accounts receivable, net429,240429,102   Current portion of notes receivable33,19426,687   Prepaid expenses and other current assets50,35140,529   Current portion of deferred tax assets3,615-Total current assets674,375770,954Property and equipment, net of accumulated depreciation68,19274,448Goodwill1,260,0351,309,358Other intangible assets, net of amortization104,181118,889Notes receivable, net of current portion101,62381,748Other assets67,04655,687Total assets$       2,275,452$       2,411,084Liabilities and Stockholders' EquityCurrent liabilities    Accounts payable, accrued expenses and other$            98,109$          132,773Accrued compensation168,392180,366Current portion of long-term debt and capital lease obligations6,021153,381    Billings in excess of services provided31,67519,063    Deferred income taxes-12,254Total current liabilities304,197497,837Long-term debt and capital lease obligations, net of current portion717,024643,579Deferred income taxes105,75188,071Other liabilities80,24875,395Total liabilities1,207,2201,304,882Stockholders' equityPreferred stock, $0.01 par value; shares authorized ?5,000; none outstanding--Common stock, $0.01 par value; shares authorized ?75,000; shares issued and     outstanding ?40,775 (2012) and 41,484 (2011)408415Additional paid-in capital367,978383,978Retained earnings741,215778,201Accumulated other comprehensive loss(41,369)(56,392)Total stockholders' equity1,068,2321,106,202Total liabilities and stockholders' equity$       2,275,452$       2,411,084  SOURCE FTI Consulting, Inc.For further information: Investor & Media Contact: Mollie Hawkes, +1-617-747-1791, mollie.hawkes@fticonsulting.com