FCN - Earnings call transcript Q3 2021

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Operator

Good day, everyone, and welcome to the FTI Consulting Third Quarter 2021 Earnings Conference Call.

As a reminder, today's call is being recorded. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. Instructions]. [Operator the conference introduction, Vice over Investor for to would President remarks Relations. the turn to opening now I and like of And Mollie Hawkes, ahead. go Please

Mollie Hawkes

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

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

relating Forward-looking trends, practices, results revenues, to programs, including acquisitions, statements regarding share or events, new information policies, performance, other future historical, other concerning laws future to and future include changes of laws plans, estimates and objectives, our results other goals, intentions including expectations, financial foreign tax repurchases, are and statements U.S. performance, financial business matters strategies, and not and or statements matters. that or regulations, plans future

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

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

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

Relations of X to and a financial Lastly, include XXXX presentation which for section there have your of PDF morning that our have been of are data, reference. operating this our Excel posted These website items results. and historical Investor the include quarter our to been earnings and third an updated quarterly

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

So...

Steven Gunby

wouldn't It muted. if somebody event a COVID wasn't be

you, Thank way. and morning, pointing thank our good for the of out Molly, all And out that and us. you get to you glad joining thank I'm So for everyone,

was morning quarter. details to already am see released But that the and and me Ajay, a is quarter. you of of of most you of is course, time the at of saying you loved end beginning spectacular that the guessing I now, materials on this hope the continue the this As at sight. well COVID, at this as that of and be some to I light you tunnel hoping noticed your all ones give we're I'm safe. COVID are during of to the scourge this end within based least going the

I some that some stress a will reflect he and deferrals recurring, tax revenue careful, like ways benefits, earnings it the large transient lower on in you great businesses being things it of a be us I strength to et count things this onetime help rate, our clients FX, but their that of another challenges, can't not be we've And people however, up quarter to day line. these we'll want onetime a and recognized build of that their important turned quarters, doing confirmation business not every greatest that stuff But are Ajay, Now cases, company, even me, I quarter. clear, that, for it's a far normalizing all hope many all of as in It's go strength number to quarter. things is to is cetera. you, not what our more fabulous this can navigate, fundamental or but of in is only our as into of which me tell, a in opportunities. greatest a great to straight this businesses allow

growth. jumping an in great the opportunity each quarter, in losing And many talked and or saw to company big even as invest on some zigs invest, P&L As the on a short but the can have hurt jumping a whole of term, to an due we supports times, we in conditions to way We're our that. opportunity about that future this of market of have or winning a zags businesses huge can the and job.

And so year look slowdown that is from cases certainly quarter, you in benefited from restructuring it most legacy the in to world. the continues some off around market big widespread a way, our business or earlier. during way at although a If of we big business, a face

restructuring I anybody permanently. gone away has this believe thinks market Now don't

Tech, notably business, performance in the incredible the quarter. some of that of this ignited that but the the continuing to zag. fuel invest the half we're second Similarly, weakened that's first activity So in request in year,

We trajectory confidence more of trajectory. business is have multiyear the multiyear the people that enormous that that and that important, of in team driving

to We continued that face So increased slowdown, our business year-over-year. that of in hire. we have, headcount in XX.X% the

just we will the That's continue investing support where declined. up, committed of term, compared business And have to revenue weakness. and do something the have an FLC, EBITDA year, we we've the great adjusted to the over we do. that to of even had pockets last though in to strength medium example even So went

the For zags, do them and borders be which zigs restrictions have our been ability are the that remain travel have doesn't what incredibly zags same certain same zags come period but of around does the of time, least us many over mean but if brand. vibrant. right and zigs only the engines, our they and growth are we market. we've growth make any proud. line. example, mean time, extended bad are think what zags. and support deliver and pretty closed is any or to allow extended, in engines, But data Asia because things, times quarter around to of all attract you assignments business build over great reach some zags therefore, they businesses at we us though fully I deliver powerful upward the growth powerful think extended many and our are each an I major engines. on zig affected in propped of do year, clients and period things, they upward And even us said are an their zigs Even of people services sloping can become the if to has the zags They that it zags, me and and the They zigs now believe They right can't allow sloping It vital both I not line. to and although

supported, is when is us, the to lot always shareholders. with. work. resilient your With That's and And of when I outside real Through It you, do work. quarter a is of There's the want this that, a a journey lot when of develop clients vibrant and I been up have experience It's ready privilege businesses. Now not exciting individuals whether temporarily firm confidence good on, to an you good. engines. over us quarter join according a It giving has great me promote individuals. experience that line, promoted regardless A aggressively our who just layoffs daily people they're of year. you on. also great they be invest you P&L. versus journey powerful. people And benefits great gives people's the when further. look, more obviously, to diverse powerful and make to The numbers people. businesses It businesses I to the we that to people. some have invest we firm, us to believe allows that, our fabulous you for a been upward not our team and or create stay us firm slow It when engine year and lot you, leading struggle global people grow. line It to through My strength do feel end to your and work. allows zags the that, can to in were versus available and powerful, have great It even doing create hope you ever the growth let become get us who your allows last for sloping because in we quarter. and to with where it's is That up to business. when assume, that us the sustainable, build also convenient rewarding. environment supported a It's My hire been drew effective are it's to talent particular a it exciting build the end that of important Fabulous allows eager it for you things people work equally it always and the is with to a conviction take turn you a you. incredibly feels happen development important I great you Ajay. that of And you great good in our and when businesses of they're for this to firm, we people is is zigs on.

Ajay Sabherwal

with Good you and results segment guidance and remarks, I company-wide Beginning third my through full quarter year. take Steve. will everybody. discuss our the for you, results. Thank morning, In our prepared

per remeasurement to with EPS we share the total EPS increase boosted we we prior morning, in adjusted XX excellent reported FX in XX% and including grew directors. billable EPS Adjusted in expectations. our related this increased $X.XX year and revenues, share, increase share quarter. GAAP EPS versus offset XQ of average head same expenses. And $XX to XX% weighted reporting quarter increase million Earnings primarily the the reflects in a of count, our higher a or per were of travel notes, noncash discussed, by $XX.X This lower $X.XX, resulting adding The of WASO, shares by Steve exceeded compares in professionals which continued income. SG&A GAAP which million The income making Overall, XX.X% in had an services quarter compared income of in compared quarter. segment compared we $X.X compensation, results, a in debt, FX $XXX in $X.XX investments of well interest special included EPS another SG&A million $XXX.X these senior $X.X SG&A was as count quarter. compared bad by boosted of also Revenue in million was managing revenues XXXX. $X.X $X.XX every in outside EPS to last As quarter $X.XX $X.XX In quarter. and to year-over-year, $XX.X impact Revenues XQ outstanding, of quarter prior net as revenues. or due of share. the per gains in gains higher losses this 'XX, expense and a net year third increase which in billable also XX.X% partially $X.XX which of of of reduced including higher Net which million to year $XXX.X and expense prior GAAP with noncash growth. per software the increase interest the entertainment The and head to for delighted respectively. our of expenses. increase prior in $XXX.X XQ by remeasurement revenues in charge adjusted compensation, expenses, million are the the million 'XX EPS GAAP million between X.X% year reduced XX.X% costs compared to of in million, were year difference 'XX SG&A 'XX. convertible quarter. and to GAAP XXX million, or XQ

million compared the Third XX.X% adjusted revenues $XX.X year EBITDA of XX.X% or revenues million XXXX or of quarter. prior in quarter $XXX.X of to

to the rate prior XX.X% quarter effective year XX.X% compared tax quarter. Our of third in

related allowance for quarter XX.X from the million of assets shares tax tax Our to on sustained 'XX. XQ XX.X in of the because rate in to diluted Australian tax Fully our adjustments profitability. release benefited discrete shares deferred WASO XQ million a valuation 'XX compared of

Our approximately quarter shares, average dilutive XXX,XXX as convertible included WASO, on this was notes of a price our EPS above threshold price. conversion past $XXX.XX share had the of impact $XXX.XX in

I increased As year X.X% count mentioned, quarter. professionals XXX by head head billable as campuses. increased to we or prior XXX welcomed by X.X% billable professionals from count professionals XXX Sequentially, the compared or university

EBITDA quarter. and services X.X% services. million, demand insights increase some leverage billable in or million including deferred higher demand increase prior which in year head to at transactions compensation, impact million segment $XX.X Now higher we continued offset Finance business level. revenues are decrease of across globally. junior EBITDA In in but the by quarter. transactions revenue, X% practices. at and segment segment and of year to as year-over-year a the to restructuring business increased well prior $XX.X in of for practices count third were as of the transformation The transformation realization due was increased revenues are will of the $XXX.X to only growing levels segment partially able XX due to -- our segment Restructuring, recognition SG&A we or I In professionals revenues the these quarter, The to Adjusted our practices, compared XX.X% especially expenses. grow also we adjusted Not the Corporate & of XX.X% revenues and compared for was share lower

X.X% on our of in from million. the the engagements. growth transformation support worked again, recognition and prior number who business segment quarter our revenues and once a typically deferred $XX.X revenue. or sequential $XX.X as a quarter, professionals, On third segment restructuring increased benefited would transactions-related This junior assignments, increased basis, for million businesses transactions Adjusted continued EBITDA of

billable year. primarily XX% Revenues health segment XX.X% XX.X% prior weak of $XX.X higher increase million, higher well adjusted segment the in prior demand segment Turning which quarter. to The million revenues due the Sequentially, quarter lower $X.X and a decreased year EBITDA The to the expenses of Adjusted segment higher revenues our to EBITDA to to $XX.X EBITDA was disputes in to and includes solutions $X.X FLC. $XXX.X demand prior or solutions revenues services. of in was relative due SG&A revenues, growth as which million. health increase of Adjusted year investigations, to quarter. compensation, due was count in segment as increased partially million, in decreased or for investigations revenues services. primarily by higher X.X% for compared head compared offset million

increased prior revenues, higher non-M&A-related million, year and services XX.X% lower due antitrust M&A-related large revenues due The offset segment M&A-related Technology, The driven segment revenues for lower of million services, of governance demand The for primarily to X.X% which due quarter. quarter. matter the compared $XX.X the partially X.X%, year growth was the Adjusted partially adjusted antitrust a the quarter. compared which EBITDA Sequentially, in million prior by decreased million revenues includes to offset by revenues million to quarter. segment conclusion in increased billable EBITDA the for increase was XX.X% count. quarter. to XX.X% or of $XX.X increase impact which which adjusted demand or million higher was of the decreased the by primarily year prior or request the year partially of segment segment of revenues in economic in $XX.X which to due of prior a count. compared $XX.X higher quarter. Adjusted segment's compensation, and head to revenues was litigation, in compared was increase or revenues was in higher segment in Consulting million, In prior of compared year head by year to impact revenues services, demand M&A-related billable decrease offset XX.X% which $XXX.X our for to demand antitrust in due Economic the XX.X% XX.X% quarter. to of The of to XX.X% for prior primarily was EBITDA to segment of compensation, or higher EBITDA information $XX.X increase services services, segment financial $X.X investigation second demand Our includes the was compared

segment increase to prior EBITDA corporate increase due and $XX.X increased financial in of year segment The quarter. segment to revenues for sequentially. revenues. adjusted due segment in Sequentially, in continues primarily SG&A of segment the bolster or revenues or XX.X% EBITDA revenues million higher increased higher at $X The data particularly the senior and for services. capacity $XX higher segment levels of Technology decreased our Adjusted well XX.X%, quarter. demand governance declined privacy investments million compliance, revenues EBITDA as risk, sequentially. and prior as corporate services. increased public segment services. year Communications As to communications for was compared across talent, Adjusted segment higher demand million, due and Sequentially, in reputation M&A-related $X.X our compared million revenues million, $XX.X was expenses. in of XX.X% Adjusted globally primarily the primarily or affairs $XX.X due Strategic XX.X% million make information EBITDA to the revenues $X.X to to to reputation million to expertise Record decreased second request demand

XX, net million million million cash, which by generated of XXXX, compared We from $XXX.X of secured sheet third and position of $XXX.X the credit cash in million cash now borrowings from due cash XX, our cash the me sequentially $XXX.X discuss to to flow increased decrease operating flow cash items. $XX.X $X.X in balance $XXX.X activities revolving to generated key We equivalents in Let net million, quarter largely which million quarter. repayment an $XXX.X and and operating primarily increase of an a higher The to from and other on senior net XXXX. decreased expenses. of million facility. Total increase under June free XXXX. on The increase collected compensation-related an bank in in was debt debt, year-over-year negative partially of sequential was increase due cash costs was by revenues, offset resulting September

of Turning our expected light the of financial XXXX, year to of during we $X.XX our the previous $X.X XXXX low between guidance. billion In to revenues X $X.X of of our full billion. first billion record range for guidance end $X.X and billion performance between and are months raising revenues

EPS EPS We to remeasurement not of full impact raising estimated and the for and per $X.XX consideration, quarter between $X.XX are of to $X.XX variance $X.XX $X are value year in share EPS of noncash per $X.XX of gain included XXXX convertible the to second of notes and includes share acquisition-related $X.XX $X.XX of XXXX expense and EPS. adjusted interest between contingent fair guidance adjusted our our which between XXXX and for the per EPS full year between The between related of XXXX related share $X.XX. adjusted and ranges adjusted and $X.XX guidance GAAP EPS and $X.XX GAAP EPS

considerations. after guidance record updated X by year-to-date performance shaped Our key our is

remains subdued. activity restructuring First,

grade first the January which rate remain further to an X.X% U.S. forecasting accommodative June in and markets that the of of stressed issuances June by speculative now compares XXXX, number XXXX remains Standard XXXX. As X.X% distressed -- in XXXX, low, in half is default the default and and will corporate Poor's XX-month rate X.X% in mode trailing fall & reaching credit

well will Second, at as year-to-date. has at global M&A demand which and continue Economic our that activity in this M&A Consulting no levels There certainty as transactions in activity, our record drives business Restructuring Technology Finance & is segments Corporate space. been

engagements when firm. large be Third, not they we a are And replaced. large immediately jobs end, may

X jobs Consulting, the or Technology Steve a we weaker today, down us quarter year. because quarters saw both & end As Economic the a large Fourth, significantly Restructuring at fourth and wind Finance across in quarter our and end seasonal of the for have several business the I is slowdown of businesses. last mentioned typically Corporate

our X close, I Before themes reiterate key that the company. want I to of underscore strength

XX% less areas results traditional continuing which in First, Consulting susceptible quarter, this footprint, steadily while have transformation Corporate quarter. represented our strength, business have XX% the revenues services, contributed last of grown XX% Business revenues which and have transaction added to segment Finance in Economic adjacencies of Non-M&A-related of show QX we our grown to last our and which the in of of benefit dominate to demonstrably that us total represent this compares antitrust also cycle. XX% year, our services year. to of making QX

us back. Australian X this managing and Middle business XX up with of senior represented Germany to has And East business our grown only And revenues senior directors X directors XX ramping XX% years Spain. from Our managing back. XX quarter years to in recently grown X from has EMEA

count communications. among financial we reputation of and leading and and world in economic investigations as staff, technology arbitration analysis, antitrust, data corporate arguably, experts in analytics-based our and restructuring, Second, the the such areas some

towards challenges opportunities. pace our your continues globally. change clients when And to many of sheet have world, growing the call us flexibility sustained they questions. investments strong make the business up let's greatest balance finally, surge Third, open around the we that, is to face With help give for And capacity our accelerating. their industries the our in to and the

Operator

The Instructions] from from of the question Nicholas [Operator Blair. William Andrew first line is

Andrew Nicholas

was to question going talent your right to My environment be first the on ability and source hiring now. just

a do? of helpful of an mean And wage senior Are about at that what where market having that exists. time understand? to really might here, head junior But at how the labor talent, be terms count the level? particularly to both in talent and remarks all you be add may is to easy pressures, tighter prepared would finding level of your a in willingness times few a mentioned You easy kind that

Steven Gunby

good mouth really word they the and gun, leaders, a it stuff world when leaders the reputation it's the is some it's of a the powerful. and particularly people kind one crack for additional isn't for talent that you that or Look, are well with say, this attract come But around be people are from we powerful, a issues there Yes. take integrated senior lot And place. built have chime attractive a of of that place, come. or is also competitors the is Ajay, have a we supply sustaining a great talent their and guess, to add. with we Maybe is we competitors is in has front, has try demand. I place, to the Are ability do No -- think mean, I you the frustrated if now. people but it perfect, to I'll with trust that a segment have is to to have issues. when cliche who put our of how I that over. to I benefit really And go. drive And we're Then and our with anything tongued talent, place are to well? on two great of as in a that when external try that that no, place seen And with matter existing word-of-mouth competitors on do moving people to us. check And I who silver be, really of think of friend not factors friends

year Those do but And want I we've were things. didn't do those know off over -- are "Wow, in guys so frustrated the those great some be part said, So you culture below to they are great of." there? if what off really invested say, we laid that And competitors that's picked talent are are sustaining. picked that them of because don't people I people and things lay people And some people laid a permanent we last up off they up, our people. and were

In addition have markets. labor to that, you

talent on downturns I talent. the it some think hiring less were effect junior of the in has business. in Last on that our have the most we of year, senior face does

And some of our competitors warrant.

In of competitors off junior fact, were our people. some laying

So junior going easy was you're the market in you're transactions, talent. fighting if an for talent all go Today, the to get it junior world.

the world world that year transactions. is that on underhired the transactions and of finding on last busy some You're also

it's front, much that tougher. much tougher. It's on So

problems, time those you phenomenon not out sometimes XXXX, of the your you're no, this is long there, be professional services based is are, on that you exactly on phenomenon best people and short-term history And you're because In getting strongest your phenomenon we have pay constantly able over how environment paying quantify to and of should, will over a But a short-term raises, that particularly one that much making terms with those you're that wages, not just but that sure yes, the match if developed on while. a means make if adjustments. to that go is are I have but top that's paid. for where is scale out monitor here. experience My people can't and in sure somebody you made that make we've adjustments and some price.

And so those are the things here. monitor Does help, Andrew? we that

Andrew Nicholas

you that. and questions all topics. I Yes, really hit the appreciate

Steven Gunby

me really preps hard. Mollie

Andrew Nicholas

question Well, Technology follow-up another then. just hopefully, segment. one be and second on would My this is the

to underlying opportunities would that be kind times or of business, about where You for Can that was the you just about talking geographic time opportunities, digits. I growth, mentioned you're for some helpful investments business there. whether double more up ramping Head perspective or spend opportunities up it's few seeing individual count a from a think understand?

Steven Gunby

that. Yes. Look, thank you for

things -- on. me are there a of going different Let couple

this the were the into we part think is And forever, people we dedicated almost in we dying numbers anything, year way -- hiring do we right requests really themselves a right? first a were to or wasn't will year. our were while. sustainable. -- And So break. way The people of core themselves throw but half hiring for the them this these the people not needed half utilization and a first weird. people I of killing in under now protect look that the will you all they're because in second utilization can't were the of work, people get at But publish with

was that the So always most great more know the strategy. that. fundamental We complicated years you the jobs. business we just forces, few a and ago, some is reputation, changed I particularly But of had think this a for underperforming

and we something people services, discovery who of most leader. different that commodity global know always from the and we're I complicated are think business, about for the jobs jobs related the for the end complicated leader. most this E are There's

know, people historical you the technology much tech if because platforms we called And ourselves only with our said As other market. more in we prevalent, will became tracked us work hurt that with we we as work

to And in leadership, changed best I industry. so we our growth the strategy. people to the growing. share they ago, us, is -- of our we organic a always say, that footprint the and And now we probably X, And far incredible. is believe That's I law engine than X our by experience. starting bigger we own a Since try we related a that. now to did. What And changed the as different we had turnover years is capability call wow. do have we've on people we're day, The been right believe firms in people

And is of point have to even lots what a our to a revenue that the second growing. X I should It can think year And as it long the in we have think business. in even, in for zigs a The the around is and by footprint corporates that problem hit world. I don't U.S. quarter-to-quarter. is vary on percent can in starting given that our we Our I go. there's share specifics to U.S. your well of on zags as to where vary the of from factor way a given the we're a but request, in think closer released you lot.

and zags. have you zigs so And

going based to If to the you you're and your underinvest in on hire be people. short zags, you're always going

that that we team talent, the find this hire and when we're and believe Sofia to clear Does support they and very it going should made I've the business. to help? when so they And

Andrew Nicholas

Very Yes. helpful.

Operator

Sam is of Berenberg. question from the line Next from England

Sam England

are one that's could And are which about areas for pipeline couple the the strong the quarters? business The a this you had bit strongest of I looking to talk was particularly, year? linked M&A been the work that of first next obviously

Steven Gunby

Sam, I'll you Well, back you, the in where? here U.S. Are or answer you But are are in let where that. Ajay London?

Sam England

I travel London. in can't will back. hopefully, restrictions next Still month, remain. get things But The still change.

Steven Gunby

Yes.

nice finally, to think your I voice. well, hear

that, Ajay? address So you to want

Ajay Sabherwal

about transformation likely this said in we well. haven't Sure. next do of we me there's want two I is, given to transactions But there, in Remember, is is, Sam, business -- terms, the wrong it's to pace guidance market be aspects to that. and for business and but like it's that continuing quite particular not And go Don't transactions. our it transformation is sense. at M&A forever, year, get sort general robust.

Steve of we and and to when piece about. zags there space, cause where that place, it's impossible large are can -- also the antitrust things In antitrust quite And pie. area Restructuring next almost assignment the we That's very not we in. the still that's large large we is talked firm. M&A, kicks it's large are continued quarter zigs in ending. take our the get M&A a the subdued. do will M&A a And that. about will those this growth. where And It's to M&A predicting So in contrary talked business In the

Sam England

Okay. of next allocation. and position And sort capital was the then had the I Great. around question cash

down. seen come obviously the You've leverage

You do the any buybacks didn't quarter. in

how year into XXXX? are of capital rest the thinking allocation and the for you So about

Ajay Sabherwal

of in obviously the proud but we're flow, very cash in little the free bonuses frame. throw we our note, April I pay to want a time our first, March, bonuses. Most of So cautionary typically

slightly at is cycle. you down QX. and there our us a even period in to and QX a of QX -- any over typical cash That's if So in down in bleed QX look trends lot cash extended in quarterly terms of see and time, you adding

our not from So this cycle. is different typical

significant happens March, frame. a April time So cash outlay the in

So I mentioned first. that

us single capital priority organic terms the biggest listen, of is In allocation, for growth.

the growth, exist, whatever need to for opportunities wherewithal the organic do do we to have absolutely. We where

like about I you're So months, that's $XXX. bought we of in period back for we right bought Over stock one. XX last dilution. back mean at stock. don't months, of But over back we this time, last of the average quarter buying -- have any extended million just not XX price the $XXX an

done those small plans We sense well acquisitions in a future. over extended tuck-in period foreseeable where do. to some So clearly, that And we don't as dividend for dilution of make have any at an do look the we've time.

Sam England

just one the And Okay. more at then Great. end. maybe

there You the the at just accelerate done are the business. Australia any that you you've wondering, you Australia? like was in you and think in moment mentioned you're markets where underweight other growth think could like the growth I

Steven Gunby

Yes.

the in of one the the non-restructuring have engine U.S. think and we children out But our the believe on this seriously, pressure my how a I'm talk restructuring strength they That's growth at at a to of they and do to I U.S. it. And powerful anymore. and don't entire restructuring business it even because you I businesses now this point, that about market, tech it excited -- is this the market say, really if muted not growth -- non-transaction one to favorite engines were forth. restructuring it's business look would was was little business, the if in I every bloody their have was globally, the company. conditions, facetious. I'm if so shown mean, now company, them figure in It putting point, you I

in every have conversations strategy significant of every quarterly and place. segment we like, I every we strategy region. episodic sort things, And to have growth addition with are exploring So opportunities a

-- Now it's is BCG. thing professional the used services the tricky be a in to issue not I like

for go in and machines, hire If problem XXX yards after The talent. to assembles you wafer somebody decide to which and that in to is machines puts market tie paper strategy you put strategy services long the going a to are this company in, you somebody do to board a be is effort on. you buy professional the

in do Botswana. opportunity no you think market So there's a matter what

you Botswana, any for best you can't in the talent business. there go get If can't

and every are we calling don't or how we geography and flavor? conversations wanting the inextricably them with a market least do us conversations I have and us linked only a give Does about there's think feel every region those help or which external one. so at opportunities Or think lateral you help MD segment. have And can to are people? have something? where So good do we we every promoted in hires combination, the superstar join lead we around who but -- in that least a at there's just

Sam England

Yes, that's great.

Operator

line & question of Sidoti from the Marc Next from Company. is Riddick

Marc Riddick

if your So the around of you've things you was the talent. to prepared remarks wondering something is that this utilizing back -- I one mentioned go follow in past. And some of could mentioned you that in your

have working So different more I different could to put in I wondering flexibility if interesting behind of in you was it's kind the of able areas. segments, little folks because a think being that

in past? then about would And your something a could in junior in areas. how be a I that little Is done as be talent from you what often? And different fairly the think that maybe development being helpful specifically mentioned the is long it utilized if I would to you've though you is, talk was much that doing seems maybe some run. standpoint, you're that able wondering more than something bit be other of

wondering if part talk your was use more I about that, a bit now? of you of little that talent So right

Steven Gunby

expertise-based generically I It's least join people of the basically It's at want it. year from first you for came who was a want or modeling BCG. a junior is an some such the That with level. and or have of else X for flowed number us. not at before at company that Look, and when I people years That's lot this X not is hired years people I wherever their my across do experience place career. talented of a .This their Thank where restructuring question. dimensionalize good to is Yes. question. firm for doing it hiring And been in term. a first mid-level kind to expertise we no

And antitrust on the so expertise. expertise we or a is an accounting than different investigations for a to expertise do just there's you do to matter -- of lot testify to a mean clearance and forensic on testify different need I

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the And that you're love And so that's is committed something this to. people we're it. right, way

next would The there in through as to you're as in you what with case COVID a on help they're other you Australia is, if horrible, can time London, that's I thing right? somebody look, change. long is person happened door is not And everything learn learn you Teams. willing even say they're the because as but as things, they're doing Zoom deal if that or close the

world to And good to sometimes when a you for leave think couldn't in wants Australia virtually everybody And could around your for but are many way, also, staff. better leveraging, is motivating COVID, And you the in during Australia so cross to those point, I things. a both for skills you team we've started which know at effective junior XX-year-old but temporarily. least.

but speak go, we're progress sure far point, on not that it. as you I'm as your we progress. to making we're Marc? making we're I'm So glad noticed can And it. yes, Does

Marc Riddick

maybe an And just here sort as far there? what as you just update allow see? I one what you you and into folks to if of to and might Or little on on could so that the crystal least give been us was of as ball you speed look it up of maybe at far where can with office sort to returning It quick maybe sort bring like then wondering feel does. follow-up. you are has will

Steven Gunby

ones. there are the Two yes. Yes, ball and crystal you right here and mentioned phrases

So hugely world. different the look, around it's

Western they had if Western think offices. almost around you left I know in cases in the anybody let of the from I Australia, mean Australia wouldn't They no Australia. other let world. won't don't And never time. also now into anybody extended know, I for they Western than from Australia periods Western

back are Western masks rather -- offices there's are was people our X,XXX So in their lockdown. then communicate the folks or masks in cases I getting lockdown, The a are our with back there. office mask offices and were wear was Eastern there people the Asia, around think and was on this, XX% masks. people effective now or back I to I'd offices. -- peak more in like about John colleague, lockdown Australia, mask say with offices back sometimes year. I'm Australia go last the changed Australia they're of time I different. It world -- without the Kong, just U.S., in in have changes Teams back people D.C., it's vaccinated. we in started conferences our Asia. I But surge. people actually, I with a -- if and Other to people in my near rest think And were -- to the it's people the in the many the go their it say, -- no And mandates. are in or there in where everybody of most on talked different isolating, places wearing which I'd offices Asia, the think And with Zoom. during think of back were nowhere in in but And of I of if if focused XX% you mean, Hong serious in office to most in are a not that's I for

X shut And I -- it offices back back connect, so And although contrast, there that was people the were get weeks London and recently. was In people weeks to or office ago, that day, the level I and I remember far along. went in Germany, as I were it eager down. like number think XXX the electric. -- to there energy nobody until almost was over X in ago it's was can't not -- the

my for Seattle, been and -- X monolithic to in And mean every in So in I even back for I COVID, anyway we're everybody desk long leaves office before the to I going us to travel we not people I think to the ever was Seattle journey. To go Staff a block have we day don't And forward. don't has clients. think years. normal. people their point, a it's because normal won't Chief going always culture

people safety direction So to and live -- as it them need we COVID and with I actually do all of that as won't set you a great, looking safety in but Zoom that, And think moving but is reconnection do get perceived of that. that better, need but chatting activity person. we allow. or somebody is only in a we're When rediscover allows sudden even

hit first My all those could time, miss. have My being says we crystal so crystal optimistic. little sorts of the yes, says, ball is, for ball And a things. it's another variant, or

than immunity this winter. much surge you winter. assume once not surge I I through being a vaccinated number think frankly, be to I can we get And the it of we have guess would people caught had it's up. a last levels people lesser of going this this level and vaccinated, have go

crystal help in my we're crossing that But least? I'm here. activity. that ball direction fingers at So a is the right moving Does that

Marc Riddick

so. much Very

Operator

of is the line question Next Sommer Securities. Tobey Truist from from

Tobey Sommer

than you if of posture. where were that irrespective active aspect wondering regulatory comment regulatory sort what's to the actions, less period are the kind I for know several perspective there driven administration the an businesses could eventual -- fronts more activity I be previous your of But of that Biden by transition that? does on can your a like there be expectations regulatory Where of administration. there's was on on

Steven Gunby

a, give a hallway gathering to you year, this and hallway a -- I'll -- The there's chitchat look, transition. gatherings there's chitchat to of as Yes, I'll certainly, opposed on always the the give that answer. is, well, you definitive my

have more a their beginning get action, people there's takes you're a to and As and for administration. in people the because regulatory out confirmation of lull waiting administration are intends if move changing jobs the low in people there's and a to the to people actually job, low and people of there's do people or it Even are people. waiting appoint

think some is manifested also places, it yet that action. you in hasn't I there direction the belief there's described, a itself so regulatory that in And belief but a in

we're -- legal be still we're sometimes that The involved tail we of I is is And can -- action, a but very mean end often, not in, there at action. action. other issue right? can front we're regulatory regulatory it's this heavily the

mortgage-backed XX well. actions there's long often cases, after securities And crisis. on tail backed mortgage-based as securities doing regulatory still years You're the a

current most place give services. seen over that our people demand have does surge -- is sense, we as our will in believe of that And time, you I a say surge regulatory that. up in not do consistent a action Does for believe system Tobey? a Ajay, would in that a level that up. or I will show that that our answer But go the different you in So numbers that or

Tobey Sommer

does. It

kind and experience models by public highly significantly the are to within changed technology visible changes some companies, disintermediated respect anything at either kind more of newly pandemic somehow consulting the suppliers to ecosystem? being with willing technology cases, the risk e-discovery to more judges of has players of, With in significantly or and other utilize if business

Steven Gunby

about for generally or our specifically you're think talking I Well, business? look, E-discovery

Tobey Sommer

E-discovery aiming specifically, that yes. I aspect is and sort was where of

Steven Gunby

said a don't look, to industry. software We lot about Yes. some we clients. technology can that major a leveraging I Look spend there want be changes tools think, changes technology that in of want the to our software we agnostic be so And best that -- provider for in thinking be time industry. we were

We of other on some we lot. of nimble Relativity lot. goes those top We a So become use that stuff in technologies we We lot. use technology. technologies, each of a use use use a intelligent the very and

we point, lot we going the do time the of explosion. So happening in a are we the X the a button be to The judges not media the spend market, would see the stuff. At in that press disintermediation is say somehow world or a technology case matter is contrary, to a monitoring that what's different documents find all a and with data there's high automatically going of do end this for

complexity. intelligence of need of particularly wasn't Chat sort And being navigate tools. explosions yes, need complicated to better mean you divorce -- because that are some you you on through real relevant. sift the out the go can driven down better so different prices you that around nonsimple and the data. case, data have I all so and the tools the mean, And I getting of But can a what's are while. who through people, different still forms local figure on

next part question, at we're bullish pretty least? Does that say we that least would our at that your so about And while of the ahead. business, for talk to

Tobey Sommer

company and Yes, for you do recurring does. the opportunities yes. develop How to It at revenue streams? grow look

Ajay Sabherwal

came I telephone streams. Only problem is they're have So telephone revenue obviously, going and company downwards. a from recurring here companies

there fan I And recurring a revenue Consulting, in am of traditionally, no So streams. -- is but such thing.

the have client set to a sell You or services. to same a different different of client,

classically. take doesn't it So

we is recurring us that significant We Strategic example, our -- in time, in recurring of of extended But people. well. extent stream a those data example, our retainers. practice, are period you talented revenue a Communications lot for attorneys. main practice, revenue lot hire and through have the as streams, point for And of some to as that sir, technology there, And percentage an our -- our hosting the firms intermediate of revenue companies this call comes, could extremely for

practitioners revenue same again professional. attorney again folks of between that Our recurring different for that the stream. our call those have revenue stream recurring and is and That's That our our again and relationship that cases we

Steven Gunby

X "Oh Good my because that now, we it's here God, got months he our have from he of telephone has the been revenue when how relationships done right, and sure much said, is you first Ajay, look coming here, actually the from at those company." if okay Ajay? for But since

Ajay Sabherwal

Quite.

Steven Gunby

Did that questions? help? Any other

Operator

That last our was question.

Steven Gunby

not So an let as for you to thank our appreciate team to thank much because and again building really attention I each you, we say quarter it the say me this support exciting and quarters don't so that is. you is much enterprise, for from matter, for powerful it. And as of so but want

a and good everyone, thanks, So have

Operator

you has attending Ladies much, Thank for conference and very now this you gentlemen, today's sir. call concluded. presentation. Thank

You may now Thank lines. disconnect your you.

FTI Consulting (FCN) 28 Oct 212021 Q3 Earnings call transcript