FTI Consulting, Inc. has released its 10-K report, providing an overview of the company's business activities and financial performance. The company offers business advisory services globally, operating through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. FTI Consulting serves a wide range of industries, including aerospace and defense, healthcare, financial services, and technology.
In the fiscal year ended December 31, 2023, FTI Consulting reported total revenues of $3.49 billion, representing a 15.2% increase from the previous year. The company also achieved a net income of $274.9 million, marking a 16.7% rise from the prior year. Additionally, adjusted EBITDA reached $424.8 million, reflecting an 18.8% increase. The company's total number of employees grew by 4.6% to 7,990.
FTI Consulting recorded no special charges in 2023, while in 2022, it incurred special charges of $8.3 million related to employee severance and other costs associated with headcount reductions. The increase in net income was primarily driven by higher revenues, partially offset by an increase in billable compensation expenses and higher selling, general, and administrative expenses.
The company's financial results were influenced by factors such as the number, size, and type of engagements secured, the rate per hour or fixed charges for services, and the utilization rates of revenue-generating professionals. FTI Consulting's business performance was also impacted by the timing of revenue recognition related to performance-based contingencies and the geographic locations of its clients.
FTI Consulting utilizes non-GAAP financial measures, including Total Segment Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings per Diluted Share, and Free Cash Flow, to provide a more comprehensive understanding of its operating results. These measures are used by management and investors to assess the company's financial performance and compare it with industry peers. The market has reacted to these announcements by moving the company's shares 16.6% to a price of $221.65. For more information, read the company's full 10-K submission here.
