FCN - Earnings call transcript Q1 2019

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Operator

Welcome to the FTI Consulting First Quarter of 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mollie Hawkes, Vice President of Investor Relations. ahead. go Please

Mollie Hawkes

remarks welcome discuss and results FTI conference with Consulting reported your will Good questions. company's to first to formal begin will the morning. earnings which quarter call they this take morning Management the after of as XXXX

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

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

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

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

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

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

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

Steve Gunby

of many all Good thank was release today. quarter morning, sure this saw joining quarter. this morning Thank record you, you in you us Mollie. I'm and our for press another

that In with adjusted an year-over-year fact, growth those and numbers. put all to earnings XX.X% let of me I have Those a GAAP with company Maybe the per in a of perspective. call into $X.XX. earnings of per for are quarter. organic. share being level of share earnings a Revenues $X.XX spectacular I unprecedented numbers try think it to And that growth increased revenue translated

we course had of for years adjusted same than ago. XXXX, of adjusted a less Our $X.XX the of only full-year this which for as the quarter five EPS is is essentially the EPS

and them spare and quarter that a quarterly say of bunch the So Ajay Mollie shortly. through lot one could this of I about will you details will are drafted I you take those. let adjectives, there a

true the a in which instead And negatively success factors. surge any be can perspectives benefit me do, impacted from in large jobs this in quarter share investigations by quarter results short-term that We few let that well. I by lower-than-expected to as try tax from on second And request rate. quarter. cross-border was me and start particularly or fees, a benefited higher underscore and something is Let doing always

in As know, in can this and most the always one cut way some that think business. I factors you are there benefits. Short-term other this factors of short-term or we’ve quarter

stress multiply this it think time never one stress our let X. by one always, me but especially as can Having of quarter it's also take that let said I me and So that quarters underscore been of performance. demonstrating short-term extraordinary just now to performance. our been have performance factors not we've for of that me those the for period is our Driving course time extended driving that that,

for adjusted GAAP though EPS, know by believe talk of noting of growth As worth now it's results, it quarters, factors. they given that unprecedented the we’ve short-term Xth row year of the consecutive this truly you in I powerful about seven quarters quarters. And influence Xth hate a will had was EPS. history. recall I I and growth think company's you in now marked how to XXXX can seven be level consistency of that consecutive historically the That's in

to happened also company's this have in appears that history. Something never

is see you the underneath of company. every whole and And every potential is segment the show the of that short-term power and can in short-term company this So incredible one those driven, as but see region. for and I the can that strength a some beginning and believe factors, to that success company do

strength now Stratcom. for about of We’ve Stratcom years. been For talk the four about let's power talking example, and

put years in will didn’t always position. have having team find you years is strongly. can four couple business up to growth, of of within and more those four and in you a There we some where But a Now as quarters fundamentally different have when powerful blips trajectory. adds be a powerful been a perform

fundamentally been reasons in but stronger to has in it and we’ve of talent promote for first of great arbitration, terrific of in been with some the able that people, have healthcare, developing who That's been built the great our and that the in the like business. you people our as CDG powerful into industries importantly a behind the retail, the or hires business. adjusted corporate People that in people the of It's quarter and businesses. talked support a have of us of more the manifestation. those course Fin, been a our key quarter, just via EBITDA, automotive, the able terms team more consequence Similarly, attract size marketplace, affairs, Stratcom's Corp if four in also can like quarter management has via It's in our and who powerful FTI in to growing energy been our results changed the we’re a while winning, we've terms both restructuring. investments of investments You the in no position acquisition that growing is the fundamentally jobs made fact profile teams whether we've about versions in now lateral ago. promotions crisis public of it's are while. EBITDA we’ve in themselves. have for reflection and a more was at But years And and apparent why, despite in a talking look that because boom attract importantly acquisition or It's than of simply result. this I the believe, see double

back, shouldn't have broadened probably future, where have line have Similarly, been assignments has at energy that the businesses that seven the teams solutions sanctions than focusing or people quarters. are they’ve believe not. CF big look businesses there deepened have we export and behind and building induced a top Mostly and by for growth Our we in their drive can continuing of now investments. boom transaction like and we as our and where businesses places teams And -- whether analytics driven emerging firmly in spectacular. proving success you important CF behind doesn't that great and areas build FLC, growth those in actions well behind aggressive making that we're the businesses data playing. and been FAAS, people more market consecutive while is team Not took market the and attracting a can business. teams marketplace such multiple people, the those world. But and around some key our people success. booms like promoting that's matter, win, transformation the but A as strengths a strength year-over-year and supporting the construction been doing that And where talent. great and and in business delivered core right around Investments if capabilities our for controls hard-nose marketplace Those have same those as in boom not market places in marketplace because key places restructuring, we through the significant cyber. were nose where just teams hard improving we time to there's at bets bets great busts, in volatility in for areas spaces, and actions people, our historical our and

senior our continue are across And Asia driven London, in to in which of us the we fruit. have invest -- bearing on continent, all and aggressively. leadership professionals extend Investments teams Econ Our allowed initiatives world. in have that aggressive to position the Australia,

which recent great a but that in experts you halted new this great and level Tech's years of serious our in couple unprecedented a you’ve eight is I notice of example, suspect a Tech, business For in -- of tech see believe business wins we Africa. to major folks the I history. efforts allow of deliver this results that the change in quarter, added ago, that seen not team least, South of decline many business launched where the the a Last

are is and any Incredible quarter at affect the be that need people. our to short-term that years. some always sure or there this all happen So, need standing I underscore in I'll I’m proving short-term we point, factors sure down. will four I am organization that us. this me in benefited yes, -- that saying that of incredible creates that powerful demands build both and were factors last a enterprise, cut have But on the the there great part allows more people, you power when results. to far to And than By that some today short-term professionals for And that opportunity about of the I to business factors and and doing you and that opportunity warn incredibly team. against that quarter company us, to the ability point. winning that businesses. demand and when front them it so we’re those will are this our join at elements with It and creating you only them winning build where see have a showing track and excited, not we're leading you motivated is is incredibly interest our people, go marketplace, terrific along and them incredible support human has the grow businesses others that behind of you’re develop people, going. of me this where set support but to the some

quarter. Ajay this some let on to the that, with So me give details to over turn you Ajay?

Ajay Sabherwal

flow segment record morning, level you, year-over-year. momentum XXXX I continued will the saw will I earnings. quarterly Good I balance begin in report and results. resulted am by review the to growth That quarter for double-digit another The cash Then Thank revenue summarizing our results quarter-over-quarter delighted sheet into items. quarter. key in first strong we Steve. at and everybody.

Our and performance one business first year-over-year of broad-based adjusted every segment growth. quarter delivering with revenue our EBITDA reflects rent segments

which with our We are delighted exceeded expectations. these results,

or to prior million, XXXX $X.XX million EPS or in compared $X.X a by of $XXX.X year of EPS related expense revenues to compared software million non-cash to gain XX.X% businesses, decreased GAAP to million quarter GAAP related $X.XX. of the convertible $X.X increased our $X.X $XXX.X prior First EPS in quarter. of the of revenues and quarter. $XX.X by of which ringtail $X.XX September included the our sale XXXX million a which and year a interest related notes, up EPS

increase was to interest the higher million expense adjusted to $XX.X The tax expense in increase $XX.X XX.X% $X.XX year to profits which first year-over-year to quarter adjusted include in or gross growth, of of million $XXX.X of segments, in million revenues the revenues. resulted in expansion flat quarter. margin SG Double-digit rate. the 'XX. NAF of which in EBITDA lower quarter. operating margin the $XX.X an across the compared XX.X% and relatively of year EBITDA Net of $XX.X basis points due -- Adjusted XX and year revenue million excludes SG&A million, quarter XXX quarter. income and to to XX.X% up prior Was first XXXX. the non-cash increased lower prior all of XXXX EPS XX.X% First $XXX.X compared This of compares million effective XX.X% gain. in first compared business SG&A quarter of compared quarter $X. a prior tax of interest was of

rate. Our than first was our of XX.X% Of quarter first lower of quarter tax 'XX. XX.X% tax in X.X% XXXX, the effective rate the

tax related the rate for the Our tax tax our due business, our discrete X.X%. by which Ringtail benefit sale the to reduced lower-than-expected of rate quarter was to

fourth our we percent the effective setbacks $X.X to first us that more it favorable be a the identified reported of in balance During the expect paid Ringtail for transaction XXXX, women required XXXX. the to to have between million quarter was tax release position we which allowance quarter valuation continue For allows during

favorable balance of related reduced which quarter, also tax rate X.X% had compensation the during our discrete the setbacks XXXX. tax to by for We share-based rate adjustments

between business continue professionals quarter due X.X% the Sequentially, to XX% headcount Again, effective to led expect segment by and business be increased of tax increased We consulting prior growth our XXX forensic the every . at to XXX and by increase XX%. headcount growing or headcount to all year Billable rate end is across The quarter. the and professionals. finance segments and with by corporate restructuring. billable compared litigation

significantly, seasonality significant in because utilization even we with increase fourth up a primarily maintained levels. year-over-year, the noting, worth Now headcount in utilization of quarter. our Sequentially, was

billable The in In of partially to both restructuring, $XXX would The EBITDA segment X.X% of in EBITDA I or well XX.X% Adjusted some adjusted adjusted quarter. revenues, increase of to Adjusted revenues $XX.X Now revenues by finance our higher was and XX.X% in segment billable or quarter. construction in headcount fees. revenues solutions primarily to for increased in related of related segment prior revenues to by offset revenues by by and for increased revenues to EBITDA was compared year XX.X% compensation, expenses business was segment double-digit demand The to to of and revenues increase the $XX.X and and transformation higher offset segment the headcount. services. segment quarter. Turning the investigations million the forensic driven million $XX.X was to compensation, million segment which quarter. as XX.X% year-over-year higher an in XX.X% increase due segment or success high-risk partially million revenues to was X.X% revenues of year prior in solutions XX.X% higher primarily restructuring businesses, to primarily our prior compared segment share growth to compared due was EBITDA litigation $XX.X a prior offset million increase demand which or $XXX consulting, G&A the compared was higher which in by increase year insights lower corporate services, higher and The increase of million health in transactions partially level. year as revenue driven

quarter revenues increase divestiture In with due for revenues to million primarily or increase XX.X% September revenues cross-border in revenue a segment economic for compared segment XX.X% The offset higher million, compared lower related prior due prior . consulting quarter. year America demand in growth Worth services improvement revenues year revenues achieved and which of was increase in Asia-Pacific. due million EBITDA orXX.X% request was which The was North $XXX.X or X.X% to the even investigations the Adjusted by the coupled partially antitrust higher adjusted XXXX. to EBITDA The offset million to segment second costs. to in reported of our segment with was higher compared of licensing X% higher to the in was utilization, financial EMEA, loss ringtail in in America. $XX $XX.X economic this quarter. prior for services increased Our primarily segment and of to in was which partially was revenues up in revenues demand by compensation following noting, variable $XX.X M&A of North services year demand technology,

While our business can of on in second request and large this be depending investigations engagements. revenue volatile the timing

market have our is one becoming software we quarter this success addressable more Our centric because client increased platform. in versus part exclusively relying by on

pass The project-based partially quarter. $X The revenues. and higher services Adjusted revenues, or an primarily increase segment in revenues EBITDA North in $X.X segment adjusted in to in EMEA. compared increase and segment cost or of increase X.X% EBITDA increase ringtail partially new to segment the million revenues our in of XX.X% due to million to million $XX.X in the due XX% higher lower Adjusted an contractors. primarily EBITDA into $X.X SG&A offset reflects geographies. expenses of in prior million from to year a XX% the in million $XX.X expanding increase increased revenues decline Strategic million and fast year to revenues which through revenues prior expense needed of was reputation XX.X% concurrently compared segment to America and food in Mostly related divestiture, at While year R&D related or corporate which to and by adjusted revenues EBITDA increase in was To of $XX.X by was, quarter. of an expenses. revenues adjacencies revenues segment segment segment quarter. offset communications compared prior was to due in increase as or compensation

and used, and discuss increase record first our to an headcount Net from of rejected the quarter compared in used million activities $XX.X an million, was year-over-year operating XXXX the collected, revenues. cash flow items. up quarter. cash in Let of resulting cash in me in end few operating increase sheet The payments cash due a year the which to in $XXX.X higher by and higher partially activities for prior balance Salaries offset increase at to related was was bonus in now

XXX,XXX million average our spent at $XX.XX common $XX.X of price share. per During shares repurchase we quarter, stock an to the approximately of

of and authorization. of the $XXX to our at million stock approximately repurchase quarter, under stock compared XX, cash $XXX XX, XXXX. March net December of available As total net XXXX $XXX.X March from million of for decline $X.X free end of at XX, million million the was year-over-year XXXX debt $XXX remained $XXX Total repurchases million our cash the in at business. mostly using The debt generated million by flow cash of

our to Turning guidance.

ringtail between strong EPS EPS $X.XX We are and raising to are per between After full-year divestiture. of of we of in our revenues and $X.X XXXX guidance $X.XX first the $X previous by $X.XX a our between to of four. for adjusted quarter EPS reflect XXX gain quarter, tax $X.XX to guidance range the $X.XX $X.XX between related share and XXXX confident and first between and $X.XX billion and ranges XXXX billion, of

between results earnings more first months of year per providing convertible XXXX range With at the of In revenue from EPS fact, includes quarter for at behind 'XX, the us, gain a and EPS to and of Ringtail our in ranges non-cash per approximately will few guidance be now estimated EPS next variance company's full-year our for guidance $X.XX share $X.XX high-end tax XXXX. The the to related we call. share guidance EPS above per we their expense expect $X.XX interest of and XXXX notes full-year bound consider adjusted share or adjusted divestiture.

Our factors. informed guidance the by is following

business, That's can cost or positively our we has very a small volatility have and because of on have And larger that history in which fixed As a shifts we us, any quarter. part may revenues structure, moderate. that given is rate success means EPS. much in shown in negatively our winning expectation intake impact

replaced. large given from being engagements may flows the that of in to the big And quarter the XXXX taking vacations result job end time after large current engagements a new ebbs event take work our off slower end holidays. summer immediately for firm. of expected fourth pace start large summer of the We of driven not are colleagues in in And the and a strong engagements start particularly the as and nature our ear business and

Jason Rodgers

want reiterate to few Before underscore a potential the of earnings business. our I things close, key that I

new a We by our as are large work work seen winning robust stable, clients platform international our do and to practitioners globally. are

places creating are capacity constantly quality attracting right the new We talent. in by

staff Our EBITDA. sharply higher focused leadership both And with in is strong resulted on revenues success with team utilization. has and growth adjusted

X, through up January growth lets business, have cash for boost and production, organic share excellent ability open to acquisitions. Our the free value With debt shareholder we flow our buybacks, call questions. demonstrated and that,

Operator

McHugh question Thank you. come William Blair. Timothy And will [Operator Instructions] our first from of

Timothy McHugh

Thanks.

Restructuring kind you Just there given you of strength coming about start I business -- talking of with operational isn't or the transformation just business, Can part improvement point? want help -- periodically, us of from the some us Corporate within operational the to at traditional is versus think restructuring numbers. are into guess & the I Finance much you’ve this think the or how keep growth restructuring.

Steve Gunby

numbers in States, in things about in what business that Ajay around just can. terrific I are driving excited let And on, not going So we’ve places lots the teams Look, United we and and qualitatively, let both we’re then our world. me the of share that business. say will of whatever just sides

has one we a that initiatives. share thing know excited, just if us not it's I of it's breath don't So numbers.

Ajay Sabherwal

I will.

to see. roughly, half half. quarters, half. restructuring, Tim, to And is, is one it's and some ahead really great We've half and exciting quarters, but and some other achieved the in the So it's see other now we’re

Timothy McHugh

success outside magnitude -- any I also it sense norm? far higher quarter. how abnormally than think, were you I the And this the of mentioned, guess, normal fees of Okay. Was

Ajay Sabherwal

somewhere average two a a give low you. will $X around between range. quarter. million I Absolutely, as high The as I’ve is as we go as quarter. Typically, the XX seen -- seen I’ve

were This $X quarter million. we

bit but little so. higher, not egregiously it's So

Timothy McHugh

All right.

you And it if but my currency up running talked EMEA. know Okay. was probably on for a strong broadly economics I constant on EMEA basis. am touched were you about like even and you in XX% just looks I then like EMEA, numbers higher right,

you a of a it's also the know about source talk been seeing So or big more strength can hiring. you I elaborate little are there?

businesses besides antitrust what maybe Just EMEA? biggest economic seeing are -- were the within you success

Steve Gunby

that Yes. one a I essentially is effort now. business. persisting point, growing. point but think is point, and we ourselves at one and a consider strong think which we’ve ago it's we Stratcom businesses we I wasn't has our Look, very London our London, I of decade dramatically. Whether Tim, this multiyear all which succeeding in are Number think in business, this now At I leading mean, ago, and was that FLC change at four, strong have now and CF, which -- decade EMEA practitioners strengthened business a probably maybe multiple a

we've managed -- is and strength Stratcom business. business extend grew in the U.K. strength amount a now and of the And to continent. but particularly strong Econ to our the is Our fair

We Stratcom with have terrific our Brussels a business. Office

business business. just U.K. Econ a not is Our

also and I So analytics what sorry, are our growing. is which leadership missed which businesses data now across think have is and we tech I'm have the that just we business, Tech business, those are I team -- --

leaning -- who are in those who I of just have think then by and of businesses across our Kevin teams leaders business, set leads but forward each a and we coordinated leadership European you our those Hewitt, So finding opportunity. businesses who have

One in thing At I has changed three, at default think with we talented are one is their other five are this place have in four, the in Europe. brand dislocations But Europe, point, you're over I a last companies finding who people didn't success. at becoming point, this unhappy. really companies a right. we are have brand think we for the and or years

we've grow attracting we laterally able so only terrific pace. are talent to And not at unprecedented an but talent,

going it's have of a on going for are been swathe for I So several continued quarter. a that set sure things but -- help? that there now broad Does I years, this in of think and is

Timothy McHugh

I helpful. follow-up. that’s Yes, guess one

hiring here? Just wage Can in like acquire are you've workforce probably -- I for somewhat not -- obviously terms tight of terms It in cost talent this overall market. the different It's seeing kind a -- just to broadly. here. of what How labor and guess inflation activity question. increased more of bonuses EMEA, you seems in but of and signing -- picture your your a

Steve Gunby

me developing let services once Look, strategy specific know Ajay professional and is thing it's and The I of let what great you confirm in always don't think we but have there, if -- bonuses. supporting me in I timing about levels talent. talent let comment do acquiring on we great will of look, decide some elements you talent place. biggest great

And the huge so that is thing we've a focused amount of on. time

where And a dislocations fabulous in do. senior real point is some get hard in world. don't places we've success been And that, denial you your different have the is I people, benefited markets. think labor in that around having by often happens, been which We to tight competitors about of which actually

other that attract places talent. at the have talent. fabulous to circumstances it's say and in Africa like will think I just created ability the levels we markets I behind South junior certain recruiting below in that are

look you junior If the And at headcount, staff. sustainable than our count SMD a is that's not even higher our thing. up,

gap. that’s phenomenon -- it stuff really that, people busy I'm large whether Tim? up. that Does they help, don't are Whether to are of your on or recruiting and focused that not like closing when have delay that But and the so because jobs, leverage they we ratios simply are sure. got keep describing that you You on

Timothy McHugh

That’s Yes. you. Thank helpful.

Operator

from Riddick Sidoti. of [Operator instructions] Marc will Our next question come

Steve Gunby

Marc. morning, Good

Marc Riddick

the the me that touch pretty matched to SG&A wanted things if during I the little little keeping just the delve maybe of to cost time the morning. level as think where the Good have far see are Hi. that last you much was and if quarter. achieve wanted were one year's just much on. that there? control fact you to a I And increasing I efforts little able the are just that that benefiting delve bit things that is so into a just you that on of wondering bit of you interesting could as into a was down given going SG&A sort on because and maybe to level bit at I you of could the a leverage into some some or headcount went efforts you

Ajay Sabherwal

We Marc. will do,

year. So sold in specific a last business We item. R&D first, Ringtail of there is September our

QX So the you involved 'XX. that of of R&D, SG&A. went which staff of into in are had comparing you 'XX, QX a that QX In 'XX of were -- to lot

like-for-like So comparison. a there is not

So that relatively is -- is SG&A flat.

have to We the headcount scale being [technical revenue want is item. headcount, SG&A that growth difficulty] should lend of growth. should I and we said, itself There there because outpace that those of a specific but But homilies overdo That no the is, economies. I net is to will mean don't that control one business cost bit, non-billable increased try but follow. down staff. is non-billable is R&D

Marc Riddick

commentary wondering maybe you see over have acquisition if there some in then though Brexit, and opportunities standpoint, U.K. it as business new future either also creating could from And if not -- wanted gaining it's the certainly there? regional that disruption business well. Right. just things opportunities a concern performing you, there are if that is from was what in for from or if are be might any seeing global -- seems you to a But

Steve Gunby

wasting result it's to to actually to Nobody you to more seems terms business, know end. other got predict the on commentators have that without -- specifically you know. in on of there anything know. going And than you, try I helping time will than amount like within firm you impact nobody us a this our are when what's time figure tell mean, I wasted to say of seems in question business, long look, hurting don't to my happen you ultimately is or how on trying and conversations Brexit. Brexit out us that has the been it perhaps definitive Marc,

no focused how matter we to that life and it's I we So that, happen. Brexit going on on all will think after agree are

We have in business great U.K.. the

Post-Brexit, The We Brexit still we continent decide, the our two that. before, on growing increasingly And will we focused still a or services anymore. whether don't any U.K think they will just are strong negative not the I have And strong exist, in on will given quarter the for continent. boom finally -- are it need know. exist. exist. or And positive I weeks on business has a focused

disruption a great to there because usually for I got us people, is issues, team effects, particularly terms in would great certain of -- the markets. the become people the effects, our place you hard in disruption in from happens, it's many go is or other have strength with now jump at some that people mean, a personal say for mean your different you moved. competitors place big don't place, only And brand we the a great is, it's In because it's generally I minds to I that's when place. And if in the senior if firm. X have either of deal level there in other Number people to

are in Mark? we've been there it that. people Does firm, great when creates help, So of disruptions movement that benefiting from and

Marc Riddick

quarters? one then -- the some a the of last wondering for maybe like Thanks. where it just a might me, office growth, things wondering update And real I'm If coming be Yes, on I at give you needs, that estate we looking in stand you bit space, that given was on does. the headcount

Ajay Sabherwal

Thanks.

prior well your question So that lends on itself to SG&A.

real You could about worrying infrastructure, upgrade be quarter. constantly without in And could that just -- advantage must we infrastructure, discrete in and one take could it look etcetera. be to IT it you make be investments estate, there and

have So doing that. -- we been and

revenue been have the and consistent that doing of the We with growth the building company.

Steve Gunby

cost. of the we reasons on And don't But know have the many exact as say but at people one gone SG&A I last weeks. in been when for and the that haven't our will this don't SG&A others' eventually Marc your has that laps. you math gone the -- quarter, has I perceptive you places, filled done down, down the estate few look real have to very helps over down drive our question, I sitting each your

to so you investment. And make have then

you are at, that’s driving fair point. if think I So that's I think what a

Ajay Sabherwal

Thank you.

Operator

Sommer from SunTrust. comes next of the Tobey question And

Tobey Sommer

the understand asking those. years. that to last over Thank non-bankruptcy nurtured of sort kind those us, in you. I either of for building whatever Corp years? start over kind are you've affairs, of of you've the lines can created trying give the headcount, Fin and value of wanted developed profit, sense a by areas, I we to by businesses size several public etcetera. several them metrics so about business last new size that Could to you I'm the get mind willing the revenue, in have you the cyber,

Steve Gunby

Let me a take qualitative answer.

material and a nodding are not right growth I is are I this we we are organically? business. behind numbers point, not get But released. I will grow think is not they in sort to which is behind I say, the -- how that historical stupid think and and the essentially, -- I'm up don't numbers, mean of business driving Tobey, investment. this know the being sure, material, I started Ajay they every investing the a, and business to continuing It's you

some been finding is analytics. which that, construction this But extensions. is around like geographical that whether of data and a it's has lot extensions, So solutions of

to some quite public Europe, But Stratcom in strong United made Brussels stronger States. We in behind public affairs we We've significantly So we affairs. our conscious we decision in were -- actually invested were invest the although, in in Stratcom, as parts strong a of were that. in weren't office. we

the extended a around half and And we've period also times. think the and or public U.K. office material. that's affairs two other in over And I world. we’ve places into this Brussels tripled

it like So doesn't any given year, that. seem

Fin years forth. years three we're driver the over rapidly, they're world more not. attracting non-restructuring growth. some they're Corp and also growing money of The us becomes a or ago, business, go And You around material places losing were a of They're four that Fin importantly, some the few not. Corp businesses in our so parts talent and

different just or transaction we who have got in ambitions got to a or have it's XX% Fin whether there to year in And you growth XX%, services, ambitions doubled it And then leaders it's have you've improvement. transmission our we've the if then grow, carve-outs we've Corp of it's who year grow. all in And not So services they years, performance and I businesses. XX%, few those and in, sub part a services leaders can OCFO or And XX%, out. one call grow material business. business business. business but transaction turnaround mean or of

been -- years been these about so if talent businesses change are then this then going bet do into to to nobody right sort the organic businesses and is we've going car overwhelmingly I that electric many seen been we've commit have are figured of playing cars, decided mean we adjacencies And behind. we for I right? into can make sense. rates that of businesses geographical a build extensions we to -- be to them, you versus of And continue those are those the to not ago. businesses And so mean of the redouble us. that in, that that been once in, have five buying have strong. But cumulatively It's of you growth basis from there's all we things it. to but we're extension Tesla think

growth that of we're growing. businesses Some underlying it is of a in some continuation

specific sense me and at -- saying with qualitative numbers, don't and does that help. least give does you So kicking give that Ajay more a

Steve Gunby

you. Thank

Tobey Sommer

these businesses? Do have you the leverage and profiles in does. legacy organically, do areas that then different grown or It they optimal invested utilizations

Steve Gunby

businesses profiles. have They do. leverage Look, a of lot different our

Fin businesses that Fin Corp -- probably ratio. optimal have an Corp that We leverage itself within have

our some leverage the ratios don't big like difference. up have to one. my a pretty That's optimal the them big that XX businesses is And look XXX them have we three and of optimal leverage of leverage optimal which I one, know ratio background, defense from any difference is to and of But XX businesses number. Some three have some to pretty is contractor ratio that. between one,

mechanisms ratio, you differently. the yes, they rates, one professionals more senior leverage are all And actual then to profit leverage a per have profit the than so the the necessarily higher. which people billing higher have drive typically yes, the And the SMD profit, but manage you rates, our -- utilized, three we have ratio. businesses to ability by drive to realization is isn't one But XX revenue to if for most highly

ratio. different. rates but to leverage one difference as a slightly vary, can XX as three are between to ratio that So the specific not one a help? much and the leverage Utilization Does economics

Steve Gunby

do and similar. Or different the business? business in they have [indiscernible] profiles I does. are be so leverage they're It -- they But …. are higher going legacy they understand filed were leverage to to be

Steve Gunby

cut know whether I the don't that No, one know no, no, way I don't another. new systematically or -- ones

them … Some of

Tobey Sommer

Okay.

Steve Gunby

our -- it's them higher, some current … like some are lower. are them of of

conscious we thing. our you bit? decision, last faster or It's a if can that junior year, in the are tell same. fundamental a Does the because over behind than we've exactly for staff. on that That's mix SMDs a because the example, but little haven't they're Okay? hiring made So I headcount our of grown not see junior help you So we staff,

Tobey Sommer

current back could working performance to you than lend bit I get higher look they ask business, historic you fees Thanks. I are about heard the themselves a to assume perhaps success sort the And I'll one little With If does. being you what your when of of Ajay. do question, It the last norms? fees on you're higher. today, projects -- success which respect at book that queue. one guidance, for fees make comment the quarter Thanks. in having

Ajay Sabherwal

projects I And are $XX far wouldn’t million current far say less. year. or more a Around the

Tobey Sommer

your for help. Thanks

Ajay Sabherwal

Thanks, Tobey.

Operator

I our remarks. concludes this to the turn would And management back like for any to closing session. question-and-answer conference over

Steve Gunby

attention. time and for your Thank again you

We are obviously excited about the quarter.

our about here. building excited think what I fundamentally, we're are teams more just

So thank part of you being for journey. this

Operator

The presentation. for attending today’s now you Thank conference concluded. has

disconnect. now may You

FTI Consulting (FCN) 25 Apr 192019 Q1 Earnings call transcript