FTI Consulting, Inc. (FCN) has reported 31.38 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $7.10 million, or $0.17 a share in the quarter, compared with $10.35 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.88 million, or $0.24 a share compared with $10.23 million or $0.24 a share, a year ago.
Revenue during the quarter went down marginally by 0.06 percent to $441.92 million from $442.20 million in the previous year period. Gross margin for the quarter contracted 206 basis points over the previous year period to 30.25 percent. Total expenses were 97.58 percent of quarterly revenues, up from 94.63 percent for the same period last year. That has resulted in a contraction of 296 basis points in operating margin to 2.42 percent.
Operating income for the quarter was $10.68 million, compared with $23.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $30.34 million compared with $35.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 109 basis points in the quarter to 6.87 percent from 7.96 percent in the last year period.
Commenting on these results, Steven H. Gunby, president and chief executive officer of FTI Consulting, said, "2016 was a superb year for FTI Consulting. We delivered record revenues in Economic Consulting and Corporate Finance & Restructuring, and had another year of strong performance in Strategic Communications. And our EMEA region is benefitting from our multi-year commitment to grow our global platform, delivering record revenues and continuing to grow headcount substantially."
For financial year 2017, Fti Consulting expects revenue to be in the range of $1,800 million to $1,900 million. The company projects diluted earnings per share to be in the range of $1.95 to $2.30. The company projects diluted earnings per share to be in the range of $2.10 to $2.40 on adjusted basis.
Operating cash flow improves significantly
FTI Consulting, Inc. has generated cash of $233.49 million from operating activities during the year, up 66.87 percent or $93.57 million, when compared with the last year.
The company has spent $30.13 million cash to meet investing activities during the year as against cash outgo of $31.74 million in the last year.
The company has spent $125.31 million cash to carry out financing activities during the year as against cash outgo of $235.96 million in the last year period.
Cash and cash equivalents stood at $216.16 million as on Dec. 31, 2016, up 44.34 percent or $66.40 million from $149.76 million on Dec. 31, 2015.
Working capital increases marginally
FTI Consulting, Inc. has recorded an increase in the working capital over the last year. It stood at $404.72 million as at Dec. 31, 2016, up 2.58 percent or $10.17 million from $394.55 million on Dec. 31, 2015. Current ratio was at 2.07 as on Dec. 31, 2016, down from 2.14 on Dec. 31, 2015.
Days sales outstanding went down to 53 days for the quarter compared with 56 days for the same period last year.
Debt comes down significantly
FTI Consulting, Inc. has recorded a decline in total debt over the last one year. It stood at $365.53 million as on Dec. 31, 2016, down 26.12 percent or $129.24 million from $494.77 million on Dec. 31, 2015. Fti Consulting has recorded a decline in long-term debt over the last one year. It stood at $365.53 million as on Dec. 31, 2016, down 26.12 percent or $129.24 million from $494.77 million on Dec. 31, 2015. Total debt was 16.43 percent of total assets as on Dec. 31, 2016, compared with 22.20 percent on Dec. 31, 2015. Debt to equity ratio was at 0.30 as on Dec. 31, 2016, down from 0.43 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.79 for the quarter from 3.81 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
