FCN - Earnings call transcript Q2 2018

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Operator

Good day, everyone, and welcome to the FTI Consulting Second Quarter of 2018 Earnings Conference Call.

As a reminder, today's call is being recorded. And now for opening remarks and introductions, I will turn the call over to Mollie Hawkes, Managing Director of Investor Relations at FTI Consulting. Please go ahead, ma'am.

Mollie Hawkes

Good morning. Consulting XXXX to this earnings FTI second the morning. the of quarter results to conference discuss call Company's Welcome as reported your Management which formal with questions. take will remarks, begin we'll after

XXXX include uncertainties. to Before begin, that call Exchange the the XXA I Securities of like Securities XXXX of forward-looking we XX remind Act of within statements the that of would this and everyone conference Section involve of risks meaning may and Act Section

goals, objectives, intentions strategies, events, statements matters. performance, financial include matters plans, Forward-looking not including performance, and or concerning future that revenues, plans acquisitions, trends, historical, future and results other statements related future and results information business statements future financial or regarding other other are our share estimates expectations, repurchases, to of

not other Safe of forward-looking as the contemplated statement those our factors the may heading XXXX, of filed discussion other differ Risk events undue available in as is the the cause December by earnings for ended the other disclosures Web-site or updated. copy Factors release a this date risks at call on review well actual Harbor XX, to any www.fticonsulting.com, forward-looking should not be on that will Form morning, reliance results For a only issued Information of from which press Investors and of year this under our in speak of in filings statements, investors are SEC. as and with XX-K place the our cautioned and Forward-Looking to and which statements, earnings

EBITDA, earnings net total segment certain non-GAAP total per discuss diluted EBITDA measures, operating adjusted and income, we cash margin, adjusted as EBITDA, adjusted call, free flow. such the will During share, income, adjusted adjusted segment financial

investors issued morning, as of our For these a comparable which that measures, we reconciliations. release accompanying well GAAP financial other to the measures this discussion financial non-GAAP most review and reconciliation the should the tables measures these and as non-GAAP press directly of include

Relations there Web-site today's been they the PDF management Of Web-site. been that remarks, two said, earnings our data, These are note, not To ensure posted to of section financial of our morning updated are the Investor are the quarter and this during XXXX your an second results. our quarterly historical Web-site. posted directly of items have our earnings reference. have to our operating prepared to Lastly, as and speak Excel and and presentation a which consistent, have include to of will historically, for presentation I provide Investor Investor details available Relations section these Relations as disclosures same our slides quarterly our on include

Steven Chief With At turn these Executive will and Executive way, formalities Officer. Officer, our Chief Steve President joined call the Ajay Chief today Financial Gunby, the and I I am out Sabherwal, of our by to time, this over Officer; and President Gunby. our

Steven H. Gunby

and Thank you, all for you Mollie, us morning. this joining thank

$X.XX other all almost per organic. translated, being quarter alone. earnings second than GAAP had increased you and As share. record saw I have anything delivered results Revenues quarter XX% year-over-year, of with each surprisingly, adjusted not that That into revenue share, growth per totaled the share growth earnings in per time hard again revenues. the many a release that once spectacular. this of this morning, I'm sure we calling press We record in

of of revenues XXXX. XXXX. turn record quarter, half for first Those This Revenues the first combined first increased in for adjusted half to XX% with Company. of first half the delivered EPS outstanding in compared the a for quarter, the resulted first of the XXXX $X.XX half

go amount what very think I in that's here through detail, a we you Ajay and on a of go through minutes before, topics is I before morning. eager of points both beyond deeper that the we a leaning numbers the that discuss fair a go take the couple that is them we about and Ajay to forward, But lot to could critically couple I thought So, numbers, on this time that here believe terrific, bit numbers of some heard talk will points are and a are spend you've to us of he take important.

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many several can't you those overshadowed in be why are are is to of meaningful the indicators are progress, satisfying get we but but more get are level committed measures fundamental also most of much our walk we am moving. short-term of are through, a are the can are my not one more basis they on quarter of of these, They short-term have in even positive factors, face walk sense how volatility. of success, overshadowed. just having. forward. fun the on not years, at much or negative ones, public be I you of happen a ongoing long-term been sometimes to headline-grabbing success markers Over most harder progress. the are deliver through the Company assignments. opinion booming by measures thing the access this on, not succeeding, These the but you they I markets, even simply can going to amazed truer of do, and in of of is the They any by help they they just basis. that we of quarter, are but Some markers ones deeper number but an you have success. be numbers. lasting for qualitative, given no for a But the They sustained people, private, them Ajay, don't public, are some have to all ones with In the

Ajay Sabherwal

Restructuring, I Steve. year. that, segments. Steve as the record sequential certain our quarter-over-quarter you, Economic quarter in segment morning, I quarterly sheet our will for our and quarter In said, cash I at or summary, Litigation second and Communications, another Then Revenues Good segments, growth Forensic results. Strategic Thank Consulting Corporate was the will led and level of and grew start solid everybody. After key the summarizing review each Consulting will guidance items. flow Finance by discuss & results by quarter. FLC, in and balance

resulted improved in higher Finance increasing year-over-year. XX.X% And our utilization, margins. and surged, segments, in EBITDA adjusted FLC and growth Our revenue Corporate our consequently, particularly

with are these We delighted results.

the the loss $XXX.X $XXX.X diluted the were EPS, to $X.XX $X.XX earnings XXXX compared of million share million quarter XXXX. million Moving compared in quarter. of XQ in of to revenues second fully in up year XQ for or on share, were revenues or to Fully XXXX $XX.X quarter, diluted per XX.X% prior details per of

this year special XXXX to a quarter. the resulted during not $X.XX. a reminder, took which charge was the did reminder, EPS Adjusted quarter, last in EPS we second $X.XX that charges, As were year reduced EPS, in which estate real have by which and in during of $X.XX, XQ EPS quarter. as in a we headcount quarter also actions excludes by Adjusted that impacted prior compared special

Second the profits, the prior charge, XXXX million. included pre-tax net of which year in just particularly $XX.X a prior was to the year loss and million charge quarter, $XX.X largely in mentioned quarter. special year the effective to The rate to quarter special compared of XXXX the income million a higher of net net quarter, included income I to $X.X tax operating lower XQ income increase due compared which compared prior

revenues or Second for year of million XXXX million recruiting to This and to SG&A of of the in XX.X% X.X% of costs. to revenues revenues quarter of XX% quarter due increase of primarily XXXX quarter. was adjusted compares million of prior EBITDA second compared $XXX.X SG&A higher revenues. or The higher $XX.X XQ $XXX.X million or of of XX.X% XXXX. was in the compensation $XX.X incentive

second in the impact the of for XX.X% XX.X% prior of XXXX, rate excluded the quarter year to in XXXX tax effective of Our of second which quarter quarter. compared the the special charges

the the in in the second and effective certain U.S. the reform tax laws. changes Our during year certain benefit to tax related discrete than items rate quarter of QX was due to of prior the recorded tax impact tax state lower favorable

to the was fewer headcount was by expect had and For the the Of XX we down by professionals. our rate be total quarter XX%. prior headcount professionals balance also XX down XX. billable fewer we Sequentially, effective XX year non-billable at between quarter. Total XXXX, tax of the from and of this, XX% end

headcount to year balance and the as during onboard expect both hires. hires our increase usual senior of We we campus the

realization higher Now, quarter. the EMEA. $XXX.X some in demand I level. year was quarter Corporate increased the business or revenues services, to segment share in million $XXX.X Restructuring, America higher due at restructuring million to In million for and transformation Finance will with revenues and The to prior & in XX.X% $XX.X coupled compared in North services increase the insights for restructuring

retail engagements, and we company assignments, sides. the some largest both on and on including quarter, restructuring services creditor the financial During major worked of the

primarily segment $XX million strength, integration revenues revenues XX.X% Adjusted percentage practice increase or in the to XX.X% The X work. was or EBITDA improvement, performance million Office quarter. improvement in to also segment of compared carve-out, led the $XX.X by merger year-over-year of was delivered Our revenues point segment adjusted and in prior CFO, year higher continued and EBITDA segment a of utilization. business transformation due

the FLC, as in to quarter. The year Revenues in segment prior XX.X% million million compared we adjusted revenues to revenues the EBITDA. to the utilization. of FLC million and $X.X in adjusted revenues significant increased quarterly or $XX.X increased investigative record quarter revenues $XXX.X sequential primarily in basis, continued increase XX.X% by as or and On Turning improvement $XXX.X reported from investigation of bottom and million improved a compared primarily global practice. particular higher strength mandates. segment strong Adjusted segment or was our X.X%, or services segment for in contributions line percentage in from $XX our improved XX.X% realization revenues well or strength The again year solutions EBITDA $XX.X to was revenues driven prior demand segment point was increase construction quarter. million top X.X%, segment large, in EBITDA $X.X business, EBITDA a million due investigations adjusted with to and and million reflecting X our

$X.X and increase million to strong increased $XX.X segment million XX.X% compared year in with affairs the revenues continued X.X% revenues managed revenues EBITDA increase compared quarter. was primarily revenues public offset revenues. In costs Our X.X% quarter, or Economic offset be financial the review or retainer-based high-profile of we engaged year Adjusted was lower was our to arbitration XX.X% million the million mandates. of in compensation demand $X.X $XX.X quarter by services revenues have of Consulting X.X%. around The was in segment million partially and headcount. or higher revenues, which international by sequential due in increase higher an increased on primarily $XX.X XX.X% issues, compared in due segment million billable also the Adjusted revenues doubled in by of EBITDA quarter. million increase was compensation and segment the partially of managed than consistent uptick prior delivering in demand of for of the to revenues related U.K. revenues prior services practices, demand quarter to Sequentially, by revenues communications primarily Strategic million adjusted In or in in reported increase segment of activity $XX.X year EBITDA segment of $X.X year compared and offerings. prior for The the the Adjusted revenues growth governance, quarter. information revenues of an year million to demand services. was segment million request privacy variable to quarter, compared in project The due on $XXX million by in financial revenues we million The prior project-driven EMEA the a higher segment increase result in $XX million demand revenues The improved or the increased due financial as $XX.X hosting From in particular, in and $XX.X Brussels. second or million for increased revenues and the to Revenues and prior and record largely U.S., of from or sequential the our year-over-year XX.X% prior was to increase primarily increase higher consulting improvements to in security to adjusted in EBITDA we driven levels perspective, geographic was affairs review global, an the where for to to the absolute quarter. EBITDA up segment compared and was increased our and demand continued our impressive financial digital realization and variable increased services. compared This in primarily both increase a and public increase antitrust or $XXX.X similar Sequentially, transactions $X.X and segment XX.X%. variable our segment review was costs or economics to North and in higher a year XX.X% services, prior demand communications in costs. The or related was quarter, million quarter. increase in Technology, services. due Adjusted to prior quarter, services reported increase consulting which to benefited segment revenues of in for American primarily M&A-related or higher revenues The lower this each compensation to higher forensics from $XX.X was managed lower both offset for revenues Communications the year year our was million an share in to was prior EBITDA $X.X revenues revenues compared The to primarily of quarter. increase year, year result our to the activity quarter. in quarterly services. in to in EMEA. for year segment of a XX.X% offset million to more segment $X.X revenues revenue XX.X% revenue prior the basis quarter. delivered nearly dollar double-digit with equal first regions representing was compared $X.X

and now sheet we cash of free million and quarter. cash $XX.X of free Using flow debt. million our in flow discuss and operating cash key flow the me balance from down balances, cash items. cash are generated Let $XX.X We paying activities net

million $XX June compared at XXXX quarter, of During $XXX by XXXX, we $XXX.X balances March was to our and million the of of XX XXXX. at June XX $XXX.X at XX Total debt, net of million. cash, reduced revolver million

we our our between guidance adjusted EPS billion, $X.XX Turning XXXX range the $X.XXX and now for expect And from increase year, range range and $X.XXX $XX XXXX to of $X.XX, billion between EPS revenues to original between $X.XX. reflecting of expected and prior up billion range guidance and guidance our an between $X.XX $X.XX from billion. and will now $X.XX are million

current reflects year the full second revenues best of Our and our in XXXX. guidance of updated half profitability judgment the for

fixed line. these cost both the revenues reiterate have much bottom impact, on larger to said, as I structure calls, small Steve As shifts that means and and a each positive in quarter our negative,

nature summer specific take first time in in our half; half headcount a Steve historical cost of may both finally, holidays, an the fixed vacations of XXXX; join rate in expectation fall and current business from given hires slower the for and revised our of colleagues our of structure and intake that pace the of a off engagements hires being second job we considers large such businesses campuses moderation several the increased moderate; including guidance assumes are we the expecting Our on in also summer and big large after factors, new flows in said, quarter business, based success us the as engagements ebbs performance, are busy engagements work may event-driven primarily replaced. business that as onboard winning It immediately we and year-end result from number and of firm, particularly our and large our the end to fourth of senior a of as precedents. start not in the may a and

Before we remarks themes. I'd prepared open by the call some for like highlighting your end questions, key my to

the of their and Group. our this are relationships only people our through been promoted CDG attracted, we quality enhanced strength, and and by acquisitions including like the foremost, has and the core further people First have

bedrock disputes solutions, in construction adjacent affairs, and business business even more transformation, like security, competencies information as investigations cyber areas Second, are build improvement our practices and in we finding relevance core and globally. public governance,

we utilization, over Fourth, enhance strong have call to acquisitions, time. leadership share and we to places a but with that right our in have that, With that resulted valleys a open valleys we including where us committed for rising have capitalize cost gives and fixed questions. staff sheet mean organic growth our allocation repurchases, peaks while in the balance hiring win. have scale around shareholder value, reduction. investments, we nature to earnings, up economies let's is Third, Fifth, debt capital flexibility on your the will peaks a strategies in key believe multiple quarterly team to means and strength

Operator

[Operator Marc Sidoti. Instructions] question will Riddick, first Our come from

Marc Riddick

to of wanted over just go just a I things. quick couple

headcount. was the about some could remainder summer and You is additions for you're – year. are of sort did do senior magnitude other of mention there wondering looking the I that headcount you the of hires that if general thinking for a to you sort traditional

Steven H. Gunby

lot in having think phone Ajay answer that, Let we are as are as it very Obviously important me and the tight marketplace, to of the this that most have us. Marc. now we we do in place I will success ringing never that. our is say we assets let between my and a about we mean, join release people the It's to the people. things has the whether been one certainly – people join we I but much off excited have in have the time is ability the us, when we're with screens hook wanting leaders

people a while, way. hiring. out. place going is some are advantage that we are to going on a and of that's for you that. junior although you And of been rich a we lot year So, one in and the us other there exit growth looking in have a grow actually very lot It's on join a moves always staff, But taking on we and made market, last obscured because it then

our senior many we I'd on we've fair amount and hires were behind say of busy, we've hires fact, so catch-up so of recruiting a with grown been In agenda. junior

that answer. So, I can give you qualitative

I think Ajay? don't that the Ajay saying, is do kicking that'. Is me under table than more 'we right,

Ajay Sabherwal

sir, Thank you've you. think, adequately. answered question I the

Marc Riddick

it a wanted bit I being Also assignment front well. of Very give some a to of on some set the you're big now competing the of get assignments forces maybe sense different at beginning and was driving for of maybe that wanted to you, a you maybe I particularly firm, well, the touch wanted of to the the thoughts in on opportunity is very if than how year? that

Steven H. Gunby

amount fraud are than there the So, are which at is is in it it's to. happens of the I'm since or happen versus this year. great different there. status can't it's that have beginning sometimes ebb obvious, quarter in don't again of do big are deals a quarter phenomena out and position. and not control the it flow big most on, pretty most we the every and human recurring two but strengthen thing that a or focus variable. sub-part on. but chest-thumpers. of we I our is times, the One necessarily phenomena jobs, was great And phenomenon position? that our truth What go I they come can right, – I there's underlying that flows The there, mean, last biblical importantly, nature three the professionals. of sure true demand Big go is, to other our on competitive can think look, We competitive there bit. M&A fraud ebbs not of that we the the can business. that it's not In of be big things. We're we mean But try cases M&A,

also sure people professionals, So, work, what is trying some we're to it. talk don't we'll about of great just execute where but the do have occasionally make that we

And for sometimes hard if because But mention, that's clients of other work. are us that's our Directors can't. okay issue sometimes, reports And major profiling people. to some the it's our to Boards will case and of confidential, you not

That's are about downs us ups than for We skill let and on ago. And know and the it, years cyber at allows guys adjacencies, the of job you've reinforcing discourage our to looks we we The a Marc, noise focused want encompass and hold bit? XX we've on. the more why our recognize of and clients is grow. but people aggressively working capabilities they us allows to professionals, business, a invest delivering do on clients the to occasionally a markets investigations we do trends. looking Corporate help little strength accountable need our or to we won into, the That's particular we're been Finance occasionally, that are on today for whether chest-thumping, what are which adjacencies because move what little focused performance ourselves that winning. through the stuff set of bit always So, not, us the more doing that quarterly behind didn't investigations, improvements. long-term does for mostly of

Marc Riddick

for been sort with as as wondering Thank debt you paydown sort one level-wise I where get reduction a update me, well, given the the give on of to on are quick last you you. And could just to shares back during if absolutely. quarter, debt Certainly, just the you've certainly then during comfort debt, an that but I one and into quarter. of buying the wanted update was

Ajay Sabherwal

the Marc, with gross you, obviously we no that it load the I'd debt frank is this Where as heading we net are Company and But on be comfortable reduction of no a But we basis to this parameters. X.X, even debt if of where levels. accommodate are place. But like debt were were more X.X, sort before, than basis zone higher wasn't comfort high stand. leverage. that we Company. to more we a on are comfortable is in can see even lower than flow free the even cash sort very clearly, those the with in where

Marc Riddick

very much. you Okay, excellent. Thank

Operator

SunTrust. Sommer, come will from Tobey question next Our

Tobey Sommer

for you about can, question first to maybe do year, how targets target grow please? you what larger events another understanding profile looks we to you have ask this an that to of speak so like not the projects, to really the an get described kind headcount because of fruition headcount coming over without for plan in that we term but additions half, over time, it's longer if the numerical because to growth difficult time, and could understanding the Wanted see

Steven H. Gunby

aspirations. and much our I'll friend – then to my to to it look, of here, to me course, add speak as need Tobey, heads growth as meet allows Ajay, we

I obscures but different finish – places to services, to bet And places the always place we where few businesses, have I in a every geography, the fix told more right across about you, every to XXX as That we believe had a business you where people as to last in exited we've mean, find we that right didn't and of offices on have have a look in one professional growth to been win, fact businesses years, I think also relook point apparent to look to where a sort out so we in, across to think first headcount at every we've business both we that fundamental closed, exit. told Brazil, visible steady-state not the been. add in, fundamental be is and we've and didn't we doing clear over stuff And mean, and we've growing we commitment we stuff I forth. had. to the you continuing we much external going numbers. are win I have what's our figure and so is to finish to

at that didn't – where can of see think probably restructuring, at over maybe you I look and a can we much go that can years. you the as segments last of look couple do couple force you

that in Fin even the Corp is last some restructurings years up XX% and different I over parts around was the think probably different world. of headcount, with two

there. and headcount attracting market. upside because We are is out so developing seize amounts there's the high market only that huge committed to We're in go of to growth market can the share people There's and you utilization. in

up this the show think the in past, in now a taken in we appears more some I is going work Tobey, much data. of we've probably as visible through actions than it to So, the way

Ajay Sabherwal

increase your what comes I first, certain from utilization, mean, echo point, a have beyond completely Steve. increased profitability I capacity. to the but you saying, your increase you're

So that's just math. the

math, sub-practice every not for Beyond fits size geography. it's all that every one area every and and

as is said, In it in areas. areas security, been as in handsomely did information in well the have It's QX by how affairs, seasonal cuts high governance. growing just it's because in many headcount attrition every cyber is various the obscured, have particular we public Steve We we year. been. And in in

These are to So, utilization. we're increased but there's exclusive. not question mutually no committed growth, also

Steven H. Gunby

helps That bit, little a Tobey?

Tobey Sommer

so the kind margins of delineate EBITDA masked for talked extra you some should about where kind utilization, that, me, Could the some get last of sustain me and years over a and numbers, in there. mud growing parts you of gross But of also ask those some to threw be about you Ajay, but being said, as which for we sustainability then do restructurings covers you let kind the of have you significantly had handle able several your we themselves? higher, utilization unsustainable. Yes, in for the prepared the pockets remarks, underneath headcount like and you water is which

Ajay Sabherwal

Yes.

question, again people Tobey. a in of Again we that's denominator great utilization, the so do. for So example. our math, don't Other subtract vacations,

vacations means, itself do by XXX%. have take a to that while, some So, get every in to you can't once people

Steven H. Gunby

to vacation. a planning not we're But take

Ajay Sabherwal

we that Number burn to out, one. going sub-practices are you're number above now those XX% areas. and people consistently that's in two, have So

Finance et Now we that is total our say doesn't Corporate mean given because some cetera. every practice which you is approaching the, there in in and FLC, have XX utilization, of

opportunistically in some areas sets headcount. also will and at of you levels those So, grow

and utilization. That's growth on it. focused are We increased

Steven H. Gunby

other is, are going I you people the is within for is the fungible. that a big not segment mean, the best not our disputes fungible. And in strategy, not thing is, or when everybody 'devise are do to a job testifiers problem who everybody on same business, are a even communication'

while they're a support right they have have job in. you So, you lose the next believe to if to till growth you a to group, big a for they and going comes utilization job, XX% grow, win, you're committed a particular

XX% at waiting the that for is of a now that a while are we're And clearly lot limit there's And a not the issue. helpful? ways was have until and our have some fact where for three other at still so, the where a we quite the But staff if XX running big months and jobs, running in at there's group job, XX% average have you that they clients and a some new were running lot level. now. not in not we That a should at level burning of the there That's limit, group been a right businesses that at to lot sort hides a can now different it's so Clearly It's lumpy staff. of XX%. we're revenues, in we XX% at have right now running for go. lot you're those sub-businesses was is to change sub-businesses of that is of at not now where sub-businesses, and year we our with our for whereas right We're ago.

Tobey Sommer

it That is. is helpful. Yes,

of to for I'll increases a Because reported back bill tell questions like Company us in me bill I'd could of imagine but and and changes. mix rate bill what higher in of you due underlying an the staff part that higher more like? I as get two in increases and on senior get year-over-year Just are a rate the rate, the rate want acquisitions the what then bill Thanks. Could your kind for queue. rate comment the realized whole? are for pipeline intrinsically just to underlying looks kind the the you And with carry quarter at rate, they appetite

Ajay Sabherwal

We So, the don't on last easy. question M&A. comment is

pipeline senior they the of our is and between to feel and compelled provide that see our much we to So, unless and comment rate, When underlying on what are don't only see terms busy question, using the what is a are we what when correlation but folks of do not and see, folks, you other I'm not busy, higher. you realization going bill rate. your bill utilization rate. I'm is acquisitions. higher you is, are provide misunderstanding one, in desired, But folks discounts There particularly

So, themes. these are consistent underlying themes and are

Steven H. Gunby

add now buy we just last even even I we come we jump because group to to zero you committed them to with with we who evaluating and acquisitions just along, that. grow because what you and acquisitions. that. on on in committed us acquisitions, together thought great, and committed think something to company will happening, of need industry are to. organically the CDG create want past. of of is reiterate more we remain professionals Fin there's along I that in acquisitions, great something what that's by we we probably ever mean, exploring do value, acquisitions But great than don't to year a thought we that's is are want to Restructuring, the the grow more are will had acquisitions, as it's CDG. we we When and your did or because way, because slow, it I and the didn't bought great Corp on, just that – We with come if and a What is acquisitions regardless boom

our wow, We Great the are by history original of and some of places, are jump growth. me cornerstone Company. opportunities them. at That not up them But as by services that grow that as dislocated I and people the then on help? them. going And responsive is is let out firms FTI is deviation That's developing people, other company, a will Does professional of there. great programmatic. the saying, along, by call committed that's come a their join to being think companies people, that and this acquisitions from we promoting great

Tobey Sommer

does. It Thank you.

Operator

McHugh, last William question from Tim Blair. will come Our

Timothy McHugh

quarter. a few little up wasn't just utilization with, I the quite guess following a first To as but questions bill actually the rate strong So, was as bit guess. I topic, it start on good

went revenue was up. than and headcount first even lower Your quarter yet

used they fair pricing you those, amount, significant the it's I seems So, talk what or is phrase there delta but I success guess fees, about I realization that that? and a you helps whether contributor, the explain like, can what's guess it know a the not, bridge, because were if

Ajay Sabherwal

success is below So, It's consistent, actually fee Tim. slightly average.

a below So, lot below not a but success success is – average, And no, more I'm the slightly quarter. for hope average, a this not fees hoping strategy. this mean is fees, I were

– are rate improvements strong and consistent bill strong as seeing We utilization some in our well.

the know looking first to been have question, at largely the from So, but two particular one I barring small quarter you're changes quarters other, drivers. consistent. don't are data which is the the those that prompting point

Timothy McHugh

Okay.

You to that this to compare just and metrics seasonally given timing higher, bonuses year your or about guess, turnover, of I can you so the at forth. about comment made overall kind last given second comment, of talk But being and the how the targets point? of they level quarter turnover a

Steven H. Gunby

had year didn't turnover think we places Remember, year, where took in we win. we some last Yes. some offices a last some right The lower forth. overall action we is than closed to and remember, so because you if

the before, seen But other than that's comparison. sure as I'm that not in in very with firms. at I've mentioned much ones lower services I So, professional line is relevant norms, general, I've is places do our historical this and you worry turnover job, turnover right burning it's the staff challenging a out. travel, job work, lot have that some – of little for is our bit look, mean, a not everybody. were a I our it's

lose to great people. don't You want

people sometimes far turnover so show to burn that but out, And proactively is anecdotally, them. you lose you that But address people actually, solve in in line. We're you trying if are rate trying great It numbers, much the when so we doesn't can tell lose to the and Does don't so help, up overworked, that people. we're Tim? that. more

Timothy McHugh

projects the change I big four, Yes, second the of recognize versus I won that seeing win if last by XXXX, I seen of projects, even, could kind does. to impact the the but what months, five of right, been months? And we last take three, can you bunch compared tomorrow, just then guess if have second new the you're the this look is what revenue of guess, guess comment about to big but projects you projects three I six half to ingestion you've we at that year a I half recognize the I how driven about if and guess, [indiscernible] thing tomorrow in big last

Ajay Sabherwal

be and try being helpful talked We without about me this. let So, specific.

in the built investigation have dispute triggers have cyber and adjacencies of a changing governance, in what nature have really affairs, business of the we an is we security, investigation the information but We or transformation, restructuring, public off disputes much. and bedrock to core have and more competencies our the That us therefore relationships and hit is we enabling adjacencies so the over those leveraging what our made those cover clients, built is applicable ball years. the for succeed

half change or particularly end historical anything on or for simply based a And from But second of occur Now, are whatnot that now, doing job year cliff or for of precedents six the on will really we some a the I not precipitated make moderation. guidance six years know is just or again. now could well. really, the from now, things months those whatnot. It's

no of empirical I observation that It's to. am over So, there's time. evidence thing specific pointing more

So, I that hope helps.

Timothy McHugh

all, thoughts other then if about the strategic last competitor anything talk opportunities of for competitor, question, you have following Navigant's Yes, just at kind as a environment perception competitor changes recruiting or there, Maybe well on okay. I your coming the guess guess. talent as of And it two obviously the or new I from I their that. marketplace any guess about bigger them business, a together, selling announcement of Dispute

Steven H. Gunby

wish them We luck.

competitors. of are brings and the wish We luck out best all We competition strong us. them in

Timothy McHugh

Thank right. you. all Okay,

Operator

much. at you in time Thank no have questions Speakers, queue. the very this further we

Steven H. Gunby

is but you time we in are more at by this underscore attention, time, a your firm I for and this Thank will one this and with pleased time Company. building we're everybody even great what more terrific what pleased and it's we're quarter a

So, thank you very much for support and your your attention.

Operator

Ladies this conference much. time now very this you at concluded. Thank and gentlemen, has

and You you. may lines a great phone week. the your disconnect have Thank of rest

FTI Consulting (FCN) 29 Jul 182018 Q2 Earnings call transcript