FTI Consulting, Inc (FCN) reported adjusted net income of $29.2 million or 72 cents per share in the third quarter of 2013, up from $24.5 million or 60 cents a share in the prior-year quarter. The adjusted earnings comfortably beat the Zacks Consensus Estimate of 48 cents.
The company reported GAAP net loss of $50.6 million or loss of $1.29 per share in third quarter 2013 versus net income of $22.7 million or 55 cents per share in the year-ago quarter. The decrease in GAAP earnings was driven by non-cash goodwill charges related to strategic communications segment and other non recurring charges.
Total revenue in the reported quarter increased 7.4% year over year to $414.6 million. The revenues beat the Zacks Consensus Estimate of $402 million. Adjusted EBITDA stood at $72.5 million compared with $62.3 million in the prior-year quarter.
Corporate Finance/Restructuring segment reported revenues of $94.0 million in third quarter 2013 versus $93.1 million in the year-ago quarter. The marginal increase in revenues was buoyed by acquisitions, partially offset by decline in bankruptcy and restructuring revenues in the North America regions.
Economic Consulting revenues improved 17.3% year on year to $113.1 million in the reported quarter. The upside was aided by strong demand for the segment's antitrust litigation services in North America and Europe, Middle East and Africa (:EMEA), and international arbitration, regulatory and valuation practices in EMEA.
Forensic and Litigation Consulting segment revenues increased 12.5% year over year to $113.1 million, primarily driven by a success fee in the North America investigations practice and increased demand in the health solutions practice.
Technology segment revenues were up 1.8% to $51.2 million. The increase in revenues was driven by higher services revenues primarily for investigations.
Strategic Communications segment revenues decreased 5.4% year over year to $43.3 million in the quarter, driven by reduced pass-through revenues for certain EMEA and North America retained engagements and weak mergers and acquisitions activity in the Asia Pacific region.
At quarter-end, FTI Consulting had cash and cash equivalents of $147.9 million with long-term debt of $711.0 million. Net cash provided by operating activities in the quarter was $84.4 million compared with $70.9 million in the prior-year quarter. During the quarter, the company used approximately $20.0 million to repurchase and retire 595,225 shares of the company.
Based on current market conditions, the company reiterated earlier guidance of revenue and adjusted EPS in the range of $1.62 billion to $1.65 billion and $2.10 to $2.20 respectively.
FTI Consulting has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering now in the industry include CoreLogic, Inc (CLGX), carrying a Zacks Rank #1 (Strong Buy), and CBIZ, Inc. (CBZ) and Corporate Executive Board Co (CEB), both carrying a Zacks Rank #2 (Buy).
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