FTI Consulting, Inc. Reports 2009 Third Quarter Results

- Revenues of $348.6 Million, Net Income of $37.6 Million, EPS of $0.70 and EBITDA of $77.9 Million; All Third Quarter Records

WEST PALM BEACH, Fla., Nov. 4 /PRNewswire-FirstCall/ -- FTI Consulting (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today reported its financial results for the third quarter ended September 30, 2009.

Third Quarter Results

For the third quarter of 2009 compared to the prior year period, revenues increased 7.1% to $348.6 million from $325.5 million; net income increased 42.5% to $37.6 million from $26.4 million; diluted earnings per common share, or diluted EPS, increased 45.8% to $0.70 from $0.48 and EBITDA, a non-GAAP financial measure as defined below, increased 19.4% to $77.9 million, or 22.3% of revenues, from $65.2 million, or 20.0% of revenues.

Excluding the effect of changes in foreign currency exchange rates, revenues increased 9.0%, as compared to the 2008 third quarter. Net income and EPS included the one-time effects of a non-taxable gain of $2.3 million in connection with the purchase of the outstanding 50% interest in our Strategic Communications segment's German joint venture and certain tax benefits that reduced the Company's effective tax rate for the quarter to 33.2%. Operating cash flow for the third quarter of 2009 was $119.7 million, or $68.2 million greater than the operating cash flow generated in the third quarter of 2008. Cash and short-term investments was $313.6 million as of September 30, 2009.

Commenting on the quarter, Jack Dunn, FTI's president and chief executive officer, said, "Our record third quarter performance continues to demonstrate the power of our balanced portfolio in a variety of economic cycles and the recognition of our ability to address the critical issues confronting businesses around the world. We increased revenues and profits to record third quarter levels and continued to make strategic investments in our businesses. Restructuring activity remained strong, which benefited our Corporate Finance/Restructuring segment. Our Economics segment also reported record revenue as we began to see signs of improved litigation driven activity and the partial thawing of capital markets with associated M&A transactions.

Mr. Dunn continued, "Our cash flow generation enabled us to further invest in our key practices to prepare for market share growth as others retrench. We extended our breadth of global capabilities with launches of a Forensic and Litigation Consulting practice in Paris, a restructuring advisory practice in Munich and the buy-out of the joint venture partner in our strategic communications operation in Frankfurt. Through key hires we continued to expand our International Arbitration, Forensic and Litigation Consulting and Corporate Finance/Restructuring practices. Our Technology segment enhanced its product leadership with the introduction of Ringtail QuickCull, which enables corporations to increase the efficiency of e-discovery by culling and analyzing data on-premise, and extends our reach through multiple long term agreements. On Monday, we announced the expansion of our Forensic and Litigation Consulting practice with the addition of a number of highly regarded SEC investigation professionals thereby solidifying our leadership in this important field.

Mr. Dunn concluded, "With our most challenging seasonal quarter behind us, we are optimistic about our future. In 2010, we expect to continue to work on the large number of cases that resulted from the challenging economic environment while concurrently benefiting from the early stages of an expansion. Given that the majority of our business segments benefit from a growing economy, we are confident in our ability to deliver our target organic revenue growth rate of 10% to 12% next year. It is with this confidence that our Board has approved increasing our stock buyback program authorization to $500 million. We intend to fund the initial stock buyback with our cash on hand and to continue with internally generated cash flow."

Third Quarter Business Segment Results

Corporate Finance/Restructuring

Revenues in the Corporate Finance/Restructuring segment increased 39.2% to $127.8 million from $91.8 million in the prior year. Segment EBITDA increased 71.2% to $43.6 million, or 34.1% of segment revenues, from $25.5 million, or 27.7% of segment revenues, in the prior year. The segment continued to be active in restructuring assignments in a broad range of industries being impacted by the global recession, including financial services, automotive, utility/energy, media and telecommunications. Segment growth was also enhanced by continued strong contributions from its global expansion into markets outside the U.S., notably the U.K., Canada and Latin America. Profitability in the segment was strong, as the robust demand drove higher chargeable hours and billing rates, and increased revenue allowed for operating leverage.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment were $65.0 million, compared with $65.8 million in the prior year. Segment EBITDA was $14.9 million, or 22.9% of segment revenues, essentially the same as in the prior year period. Activities related to several large financial fraud investigations, the segment's intellectual property and domain expertise industry practices were strong while levels of more routine commercial litigation and investigations remained soft as the challenging global economic environment continued to restrain discretionary spending.

Technology

Revenues in the Technology segment were $48.7 million, compared to $55.4 million in the prior year. Segment EBITDA was $15.2 million, or 31.3% of segment revenues, compared to $15.4 million, or 27.8% of segment revenues, in the prior year. Revenues in the quarter decreased year-over-year as increased contributions from large investigation cases were offset by declines in revenues from product liability engagements and continued pricing pressure in the segment's On Demand business. Segment EBITDA declined only slightly as improved operating efficiencies and cost controls offset the decline in revenues and contributed to the year-over-year EBITDA margin increase.

Economic Consulting

Revenues in the Economic Consulting segment increased 5.6% to a record $59.6 million from $56.4 million in the prior year. Segment EBITDA was $14.0 million, or 23.4% of segment revenues, compared to $15.8 million, or 27.9% of segment revenues, in the prior year. The revenue increase resulted from continued growth in the segment's new offices in New York, Los Angeles and London, and improving activity in strategic M&A and financial dispute matters during the quarter. EBITDA margins declined year-over-year due to the cost of expansion into new markets and a 19% increase in professional headcount to meet anticipated rising demand.

Strategic Communications

Revenues in the Strategic Communications segment were $47.5 million, compared to $56.1 million in the prior year. Segment EBITDA was $6.6 million, or 13.8% of segment revenues, compared to $12.4 million, or 22.1% of revenues, in the prior year. As the segment with the largest exposure to foreign currency, unfavorable exchange rates reduced revenues for the quarter by $3.0 million. The segment continued to be challenged by a dramatically slower volume of M&A transactions compared to last year and the continued impact of the global recession causing fee pressures from retained clients. Segment EBITDA declined year-over-year due to the lower revenues, as the segment has retained most of its professionals to meet an expected increase in demand.

Share Repurchase Authorized

Today our Board of Directors authorized a new two year stock repurchase program of up to $500 million. The Company intends to execute a $250 million accelerated stock buyback with Goldman, Sachs & Co. as soon as practicable.

Third Quarter Conference Call

FTI will hold a conference call for analysts and investors to discuss third quarter financial results at 5:00 PM Eastern time on Wednesday, November 4, 2009. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website, www.fticonsulting.com.

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 3,500 employees located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at www.fticonsulting.com.

Use of Non-GAAP Measure

Note: We define EBITDA as operating income before depreciation and amortization of intangible assets plus non-operating litigation settlements. We use EBITDA in evaluating financial performance. Although EBITDA is not a measure of financial condition or performance determined in accordance with GAAP we believe that it can be a useful operating performance measure for evaluating our results of operation as compared from period to period and as compared to our competitors. EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in our industry. We use EBITDA to evaluate and compare the operating performance of our segments and it is one of the primary measures used to determine employee bonuses. We also use EBITDA to value the businesses we acquire or anticipate acquiring. Reconciliations of EBITDA to Net Income and segment EBITDA to segment operating profit are included in the accompanying tables to today's press release. EBITDA is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. This non-GAAP measure should be considered in addition to, but not as a substitute for or superior to, the information contained in our statements of income.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions and other matters, business trends and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved or that actual results will not differ from expectations. The Company has experienced fluctuating revenues, operating income and cash flow in some prior periods and expects this will occur from time to time in the future. The Company's actual results may differ from our expectations. Further, preliminary results are subject to normal year-end adjustments. Other factors that could cause such differences include the current global financial crisis and economic conditions, the crisis in and deterioration of the financial and real estate markets, the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the heading "Item 1A. Risk Factors" in the Company's most recent Form 10-K and in the Company's other filings with the Securities and Exchange Commission. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.

                             FTI CONSULTING, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
            FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
                    (in thousands, except per share data)
            -----------------------------------------------------

                                                    Nine Months Ended
                                                      September 30,
                                                ------------------------
                                                   2009       2008(1)(2)
                                                ----------   -----------
                                                       (unaudited)

    Revenues                                    $1,057,008      $970,269
                                                ----------      --------

    Operating expenses
      Direct cost of revenues                      579,797       537,703
      Selling, general and administrative
       expense                                     262,571       241,989
      Amortization of other intangible assets       18,370        13,019
                                                    ------        ------
                                                   860,738       792,711
                                                   -------       -------

    Operating income                               196,270       177,558
                                                   -------       -------

    Other income (expense)
      Interest income and other                      6,085         7,536
      Interest expense                             (33,477)      (33,848)
      Litigation settlement gains (losses), net        250          (711)
                                                       ---          ----
                                                   (27,142)      (27,023)
                                                   -------       -------

    Income before income tax provision             169,128       150,535

    Income tax provision                            62,675        59,778
                                                    ------        ------

    Net income                                    $106,453       $90,757
                                                  ========       =======


    Earnings  per common share - basic               $2.11         $1.85
                                                     =====         =====
    Weighted average common shares
     outstanding - basic                            50,419        49,009
                                                    ======        ======

    Earnings per common share - diluted              $1.99         $1.69
                                                     =====         =====
    Weighted average common shares
     outstanding - diluted                          53,584        53,640
                                                    ======        ======

    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1)
        which addresses the accounting for convertible debt instruments
        that may be settled in cash upon conversion. Our 3 3/4% Convertible
        Senior Notes due 2012 issued in August 2005 are subject to
        FSP APB 14-1. The adoption of FSP APB 14-1 requires retrospective
        application of its effects to all previous years. The adoption of
        FSP APB 14-1 resulted in a $3.0 million increase in interest expense,
        a $1.2 million decrease in income tax provision, a $1.8 million
        decrease in net income and a $0.04 decrease in basic and fully
        diluted earnings per share for the nine months ended
        September 30, 2008 as compared to the amounts previously reported.

    (2) These amounts are revised based upon our completion of an internal
        re-examination of our historical practices regarding our accounting
        for acquisition-related earnout payments. In connection with this
        re-examination, we concluded that we had reported immaterial errors
        in prior period financial statements. Further information related
        to these immaterial errors can be found in the Current Report on
        Form 8-K as filed by the Company with the Securities and Exchange
        Commission on August 10, 2009. This press release should be read in
        conjunction with such previously filed reports. The impact of the
        correction of these errors resulted in a decrease in net income of
        $1.7 million and a decrease in  basic and fully diluted earnings
        per share of $0.03 for the nine months ended September 30, 2008.


                            FTI CONSULTING, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
           FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
                   (in thousands, except per share data)
           -------------------------------------------------------

                                                  Three Months Ended
                                                     September 30,
                                                ----------------------
                                                  2009     2008(1)(2)
                                                --------  ------------
                                                      (unaudited)

    Revenues                                    $348,637      $325,497
                                                --------      --------

    Operating expenses
      Direct cost of revenues                    193,204       175,309
      Selling, general and administrative
       expense                                    84,976        91,513
      Amortization of other intangible assets      6,171         5,664
                                                   -----         -----
                                                 284,351       272,486
                                                 -------       -------

    Operating income                              64,286        53,011
                                                  ------        ------

    Other income (expense)
      Interest income and other                    3,330         1,942
      Interest expense                           (11,434)      (10,942)
      Litigation settlement gains (losses), net        -          (275)
                                                     ---          ----
                                                  (8,104)       (9,275)
                                                  ------        ------

    Income before income tax provision            56,182        43,736

    Income tax provision                          18,626        17,383
                                                  ------        ------

    Net income                                   $37,556       $26,353
                                                 =======       =======


    Earnings  per common share - basic             $0.74         $0.53
                                                   =====         =====
    Weighted average common shares
     outstanding - basic                          50,696        49,541
                                                  ======        ======

    Earnings per common share - diluted            $0.70         $0.48
                                                   =====         =====
    Weighted average common shares
     outstanding - diluted                        53,896        54,460
                                                  ======        ======

    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1)
        which addresses the accounting for convertible debt instruments
        that may be settled in cash upon conversion. Our 3 3/4% Convertible
        Senior Notes due 2012 issued in August 2005 are subject to
        FSP APB 14-1. The adoption of FSP APB 14-1 requires retrospective
        application of its effects to all previous years. The adoption of
        FSP APB 14-1 resulted in a $1.0 million increase in interest expense,
        a $0.4 million decrease in income tax provision, a $0.6 million
        decrease in net income and a $.02 decrease in basic and fully
        diluted earnings per share for the quarter ended September 30, 2008
        as compared to the amounts previously reported.

    (2) These amounts are revised based upon our completion of an internal
        re-examination of our historical practices regarding our accounting
        for acquisition-related earnout payments. In connection with this
        re-examination, we concluded that we had reported immaterial errors
        in prior period financial statements. Further information related to
        these immaterial errors can be found in the Current Report on
        Form 8-K as filed by the Company with the Securities and Exchange
        Commission on August 10, 2009. This press release should be read in
        conjunction with such previously filed reports. The impact of the
        correction of these errors resulted in a decrease in net income of
        $0.6 million and a decrease in  basic and fully diluted earnings per
        share of $0.01 for the three months ended September 30, 2008.


                                 FTI CONSULTING, INC.
                        OPERATING RESULTS BY BUSINESS SEGMENT
                                     (Unaudited)
                        -------------------------------------

                                 Revenues  EBITDA (1)  Margin  Utilization(3)
                                 --------  ----------  ------  --------------
                                    (in thousands)
    -------------------          --------------------
    Three Months Ended
     September 30, 2009

      Corporate Finance/
       Restructuring             $127,808    $43,584    34.1%        68%
      Forensic and Litigation
       Consulting                  65,040     14,867    22.9%        73%
      Strategic Communications     47,493      6,557    13.8%       N/M
      Technology                   48,708     15,230    31.3%       N/M
      Economic Consulting          59,588     13,957    23.4%        73%
                                   ------     ------
                                 $348,637     94,195    27.0%       N/M
                                 ========
       Corporate                             (16,324)
                                             -------
     EBITDA (1)                              $77,871    22.3%
                                             =======

    -------------------
    Nine Months Ended
     September 30, 2009

      Corporate Finance/
       Restructuring             $389,320   $131,750    33.8%        76%
      Forensic and Litigation
       Consulting                 197,392     46,818    23.7%        74%
      Strategic Communications    134,814     18,232    13.5%       N/M
      Technology                  163,935     58,360    35.6%       N/M
      Economic Consulting         171,547     34,621    20.2%        75%
                                  -------     ------
                               $1,057,008    289,781    27.4%       N/M
                               ==========
       Corporate                             (53,368)
                                             -------
      EBITDA (1)                            $236,413    22.4%
                                            ========

    -------------------
    Three Months Ended
     September 30, 2008

      Corporate Finance/
       Restructuring              $91,818    $25,463    27.7%        72%
      Forensic and Litigation
       Consulting                  65,786     14,932    22.7%        68%
      Strategic Communications     56,099     12,405    22.1%       N/M
      Technology                   55,385     15,371    27.8%       N/M
      Economic Consulting          56,409     15,751    27.9%        86%
                                   ------     ------
                                 $325,497     83,922    25.8%       N/M
                                 ========
       Corporate                             (18,709)
                                             -------
      EBITDA (1) (2)                         $65,213    20.0%
                                             =======

    -------------------
    Nine Months Ended
     September 30, 2008

      Corporate Finance/
       Restructuring             $267,224    $76,997    28.8%        76%
      Forensic and Litigation
       Consulting                 195,351     45,305    23.2%        72%
      Strategic Communications    172,910     39,674    22.9%       N/M
      Technology                  168,195     59,906    35.6%       N/M
      Economic Consulting         166,589     43,054    25.8%        86%
                                  -------     ------
                                 $970,269    264,936    27.3%       N/M
                                 ========
       Corporate                             (55,971)
                                             -------
      EBITDA (1) (2)                        $208,965    21.5%
                                            ========




                                  Average     Revenue-
                                  Billable   Generating
                                  Rate (3)    Headcount
                                  --------    ---------

    -------------------
    Three Months Ended
     September 30, 2009

      Corporate Finance/
       Restructuring                $455            776
      Forensic and Litigation
       Consulting                   $329            656
      Strategic Communications       N/M            547
      Technology                     N/M            350
      Economic Consulting           $460            302
                                                    ---
                                     N/M          2,631
                                                  =====
       Corporate
     EBITDA (1)

    -------------------
    Nine Months Ended
     September 30, 2009

      Corporate Finance/
       Restructuring                $436            776
      Forensic and Litigation
       Consulting                   $337            656
      Strategic Communications       N/M            547
      Technology                     N/M            350
      Economic Consulting           $457            302
                                                    ---
                                     N/M          2,631
                                                  =====
       Corporate
      EBITDA (1)

    -------------------
    Three Months Ended
     September 30, 2008
      Corporate Finance/
       Restructuring                $439            646
      Forensic and Litigation
       Consulting                   $332            668
      Strategic Communications       N/M            599
      Technology                     N/M            357
      Economic Consulting           $444            253
                                                    ---
                                     N/M          2,523
                                                  =====
       Corporate
      EBITDA (1) (2)

    -------------------
    Nine Months Ended
     September 30, 2008
      Corporate Finance/
       Restructuring                $433            646
      Forensic and Litigation
       Consulting                   $332            668
      Strategic Communications       N/M            599
      Technology                     N/M            357
      Economic Consulting           $447            253
                                                    ---
                                     N/M          2,523
                                                  =====
       Corporate
      EBITDA (1) (2)


    (1) We define EBITDA as operating income before depreciation and
        amortization of intangible assets plus non-operating litigation
        settlements. Although EBITDA is not a measure of financial condition
        or performance determined in accordance with generally accepted
        accounting principles (GAAP), we believe that it can be a useful
        operating performance measure for evaluating our results of
        operations as compared from period to period and as compared to our
        competitors. EBITDA is a common alternative measure of operating
        performance used by investors, financial analysts and credit rating
        agencies to value and compare the financial performance of companies
        in our industry. We use EBITDA to evaluate and compare the operating
        performance of our segments and it is one of the primary measures used
        to determine employee bonuses. We also use EBITDA to value the
        businesses we acquire or anticipate acquiring. EBITDA is not defined
        in the same manner by all companies and may not be comparable to
        other similarly titled measures of other companies unless the
        definition is the same. This non-GAAP measure should be considered
        in addition to, but not as a substitute for or superior to, the
        information contained in our statements of income. See also our
        reconciliation of Non-GAAP financial measures.

    (2) These amounts are revised based upon our completion of an internal
        re-examination of our historical practices regarding our accounting
        for acquisition-related earnout payments. In connection with this
        re-examination, we concluded that we had reported immaterial errors
        in prior period financial statements. Further information related
        to these immaterial errors can be found in the Current Report on
        Form 8-K as filed by the Company with the Securities and  Exchange
        Commission on August 10, 2009. This press release should be read in
        conjunction with such previously filed reports.

    (3) The majority of the Technology and Strategic Communications segments'
        revenues are not generated on an hourly basis.  Accordingly,
        utilization and average billable rate metrics are not presented as
        they are not meaningful. Utilization where presented is based on a
        2,032 hour year.


       RECONCILIATION OF OPERATING INCOME AND NET INCOME TO EARNINGS BEFORE
                  INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
                                   (Unaudited)
       --------------------------------------------------------------------

                         Corporate    Forensic and    Strategic
                         Finance /     Litigation      Communi-
                       Restructuring   Consulting      cations     Technology
                       -------------  ------------    ----------   ----------

    Three Months Ended
     September 30, 2009

    Net income
      Interest income and
       other
      Interest expense
      Litigation
       settlement losses
      Income tax
       provision
    Operating income         $41,058       $13,656         $4,267     $10,179
      Depreciation               934           582            949       2,993
      Amortization
       of other
       intangible
       assets                  1,592           629          1,341       2,058
      Litigation
       settlement
       gains                       -             -              -           -
                                 ---           ---            ---         ---
    EBITDA (1)                43,584        14,867          6,557      15,230
                              ======        ======          =====      ======


    Nine Months Ended
     September 30, 2009

    Net income
      Interest income and
       other
      Interest expense
      Litigation settlement
       losses
      Income tax provision
    Operating income        $124,475       $43,164        $11,885     $43,290
      Depreciation             2,513         1,728          2,499       8,884
      Amortization
       of other
       intangible
       assets                  4,762         1,926          3,848       6,186
      Litigation
       settlement
       gains                       -             -              -           -
                                 ---           ---            ---         ---
    EBITDA (1)               131,750        46,818         18,232      58,360
                             =======        ======         ======      ======


    Three Months Ended
     September 30, 2008(2)(3)

    Net income
      Interest income and
       other
      Interest expense
      Litigation settlement
       losses
      Income tax provision
    Operating income         $23,904       $13,521        $10,163     $10,519
      Depreciation               693           621            955       2,752
      Amortization
       of other
       intangible
       assets                    866           790          1,337       2,100
      Litigation
       settlement
       losses                      -             -            (50)          -
                                 ---           ---            ---         ---
    EBITDA (1)                25,463        14,932         12,405      15,371
                              ======        ======         ======      ======


    Nine Months Ended
     September 30, 2008(2)(3)

    Net income (loss)
      Interest income and
       other
      Interest expense
      Litigation settlement
       losses
      Income tax provision
    Operating income         $72,745       $41,318        $33,703     $49,656
      Depreciation             1,880         1,885          2,313       7,560
      Amortization
       of other
       intangible
       assets                  2,372         2,102          3,909       2,925
      Litigation
       settlement
       losses                      -             -           (251)       (235)
                                 ---           ---           ----        ----
    EBITDA (1)                76,997        45,305         39,674      59,906
                              ======        ======         ======      ======




                           Economic
                          Consulting       Corp HQ          Total
                          ----------       -------          -----

    Three Months Ended
     September 30, 2009

    Net income                                            $37,556
      Interest income and
       other                                               (3,330)
      Interest expense                                     11,434
      Litigation settlement
       losses                                                   -
      Income tax provision                                 18,626
                                                           ------
    Operating income         $12,925      $(17,799)        64,286
      Depreciation               481         1,475          7,414
      Amortization
       of other
       intangible
       assets                    551             -          6,171
      Litigation
       settlement
       gains                       -             -              -
                                 ---           ---            ---
    EBITDA (1)                13,957       (16,324)        77,871
                              ======       =======         ======


    Nine Months Ended
     September 30, 2009

    Net income                                           $106,453
      Interest income and
       other                                               (6,085)
      Interest expense                                     33,477
      Litigation settlement
       losses                                                (250)
      Income tax provision                                 62,675
                                                           ------
    Operating income         $31,665      $(58,209)       196,270
      Depreciation             1,308         4,591         21,523
      Amortization
       of other
       intangible
       assets                  1,648             -         18,370
      Litigation
       settlement
       gains                       -           250            250
                                 ---           ---            ---
    EBITDA (1)                34,621       (53,368)       236,413
                              ======       =======        =======


    Three Months Ended
     September 30, 2008(2)(3)

    Net income                                            $26,353
      Interest income and
       other                                               (1,942)
      Interest expense                                     10,942
      Litigation settlement
       losses                                                 275
      Income tax provision                                 17,383
                                                           ------
    Operating income         $14,798      $(19,894)        53,011
      Depreciation               382         1,410          6,813
      Amortization
       of other
       intangible
       assets                    571             -          5,664
      Litigation
       settlement
       losses                      -          (225)          (275)
                                 ---          ----           ----
    EBITDA (1)                15,751       (18,709)        65,213
                              ======       =======         ======


    Nine Months Ended
     September 30, 2008(2)(3)

    Net income (loss)                                     $90,757
      Interest income and
       other                                               (7,536)
      Interest expense                                     33,848
      Litigation settlement
       losses                                                 711
      Income tax provision                                 59,778
                                                           ------
    Operating income         $40,096      $(59,960)       177,558
      Depreciation             1,247         4,214         19,099
      Amortization
       of other
       intangible
       assets                  1,711             -         13,019
      Litigation
       settlement
       losses                      -          (225)          (711)
                                 ---          ----           ----
    EBITDA (1)                43,054       (55,971)       208,965
                              ======       =======        =======

    (1) We define EBITDA as operating income before depreciation and
        amortization of intangible assets plus non-operating litigation
        settlements. Although EBITDA is not a measure of financial condition
        or performance determined in accordance with generally accepted
        accounting principles (GAAP), we believe that it can be a useful
        operating performance measure for evaluating our results of
        operations as compared from period to period and as compared to
        our competitors. EBITDA is a common alternative measure of operating
        performance used by investors, financial analysts and credit rating
        agencies to value and compare the financial performance of companies
        in our industry. We use EBITDA to evaluate and compare the operating
        performance of our segments and it is one of the primary measures
        used to determine employee bonuses. We also use EBITDA to value
        the businesses we acquire or anticipate acquiring. EBITDA is not
        defined in the same manner by all companies and may not be comparable
        to other similarly titled measures of other companies unless the
        definition is the same. This non-GAAP measure should be considered
        in addition to, but not as a substitute for or superior to, the
        information contained in our statements of income.

    (2) As of January 1, 2009 we adopted FSP No. APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt that may be settled in
        cash upon conversion. Our 3 3/4% Convertible Senior Subordinated
        Notes due 2012 issued in August 2005 are subject to FSP APB 14-1.
        The adoption of FSP APB 14-1 requires retrospective application of
        its effects to all previous years.  The adoption of FSP APB 14-1
        resulted in a $1.0 million increase in interest expense, a
        $0.4 million decrease in income tax provision, and a $0.6 million
        decrease in net income for the quarter ended September 30, 2008 as
        compared to the amounts previously reported.  For the nine months
        ended September 30, 2008, the adoption of FSP APB 14-1 resulted in
        a $3.0 million increase in interest expense, a $1.2 million decrease
        in income tax provision, and a $1.8 million decrease in net income
        as compared to the amounts previously reported.

    (3) These amounts are revised based upon our completion of an internal
        re-examination of our historical practices regarding our accounting
        for acquisition-related earnout payments. In connection with this
        re-examination, we concluded that we had reported immaterial errors
        in prior period financial statements. Further information related
        to these immaterial errors can be found in the Current Report on
        Form 8-K as filed by the Company with the Securities and  Exchange
        Commission on August 10, 2009. This press release should be read
        in conjunction with such previously filed reports.


                            FTI CONSULTING, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
                               (in thousands)
           -----------------------------------------------------

                                                        Nine Months Ended
                                                           September 30,
                                                      ----------------------
                                                        2009     2008(1)(2)
                                                      --------  ------------
                                                            (unaudited)
    Operating activities
    Net income                                        $106,453       $90,757
    Adjustments to reconcile net income to net
     cash provided by operating activities:
      Depreciation                                      21,523        19,099
      Amortization of other intangible assets           18,370        13,019
      Provision for doubtful accounts                   15,040        13,107
      Non-cash share-based compensation                 18,439        21,392
      Excess tax benefits from share-based
       compensation                                     (3,647)       (5,653)
      Non-cash interest expense                          5,449         5,311
      Other                                             (1,801)        3,022
      Changes in operating assets and
       liabilities, net of effects from
       acquisitions:
        Accounts receivable, billed and unbilled       (30,120)      (81,898)
        Notes receivable                               (19,638)       (6,322)
        Prepaid expenses and other assets                3,451        (8,319)
        Accounts payable, accrued expenses and other   (16,218)       (4,382)
        Income taxes                                    30,761        20,812
        Accrued compensation                            18,017        25,224
        Billings in excess of services provided         (2,535)        1,279
                                                        ------         -----
                 Net cash provided by operating
                  activities                           163,544       106,448
                                                       -------       -------

    Investing activities
      Payments for acquisition of
       businesses, including contingent
       payments and acquisition costs, net of
       cash received                                   (38,152)     (313,402)
      Purchases of property and equipment              (17,975)      (24,385)
      Purchases of short-term investments              (35,717)            -
      Other                                                303           991
                                                           ---           ---
                 Net cash (used in) investing
                  activities                           (91,541)     (336,796)
                                                       -------      --------

    Financing activities
      Payments of short-term borrowings of
       acquired subsidiary                                   -        (2,275)
      Payments of long-term debt and capital
       lease obligations                               (13,459)       (7,511)
      Cash received for settlement of
       interest rate swaps                               2,288             -
      Net issuance of common stock under equity
       compensation plans                               15,671        22,476
      Excess tax benefit from share based
       compensation                                      3,647         5,653
      Other                                                 (4)         (171)
                                                            --          ----
                 Net cash provided by financing
                  activities                             8,143        18,172
                                                         -----        ------

    Effect of exchange rate changes and fair value
     adjustments on cash and cash equivalents            5,981        (2,110)
                                                         -----        ------

    Net increase (decrease) in cash and
     cash equivalents                                   86,127      (214,286)
    Cash and cash equivalents,
     beginning of period                               191,842       360,463
                                                       -------       -------
    Cash and cash equivalents, end of period          $277,969      $146,177
                                                      ========      ========


    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash Upon
        Conversion (Including Partial Cash Settlement)" (FSP APB 14-1) which
        addresses the accounting for convertible debt instruments that may
        be settled in cash upon conversion. Our 3 3/4% Convertible Senior
        Notes due 2012 issued in August 2005 are subject to FSP APB 14-1.
        The adoption of FSP APB 14-1 requires retrospective application of
        its effects to all previous years.

    (2) These amounts are revised based upon our completion of an internal
        re-examination of our historical practices regarding our accounting
        for acquisition-related earnout payments. In connection with this
        re-examination, we concluded that we had reported immaterial errors
        in prior period financial statements. Further information related to
        these immaterial errors can be found in the Current Report on
        Form 8-K as filed by the Company with the Securities and Exchange
        Commission on August 10, 2009. This press release should be read in
        conjunction with such previously filed reports.


                            FTI CONSULTING, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
               AS OF SEPTEMBER 30, 2009 AND  DECEMBER 31, 2008
                  (in thousands, except per share amounts)
               -----------------------------------------------

                                              September 30,  December 31,
                                                   2009      2008(1)(2)
                                              -------------  ------------
                     Assets                           (unaudited)
    Current assets
      Cash and cash equivalents                  $277,969      $191,842
      Short term investments                       35,655             -
       Accounts receivable:
           Billed receivables                     254,601       237,009
           Unbilled receivables                   119,172        98,340
           Allowance for doubtful
            accounts and unbilled
            services                              (63,590)      (45,309)
                                                  -------       -------
          Accounts receivable, net                310,183       290,040
       Notes receivable                            20,472        15,145
       Prepaid expenses and other
        current assets                             28,376        34,989
       Deferred income taxes                       24,742        24,372
                                                   ------        ------
        Total current assets                      697,397       556,388

    Property and equipment, net of
     accumulated depreciation                      74,792        78,575
    Goodwill                                    1,173,552     1,143,461
    Other intangible assets, net of
     amortization                                 180,597       189,304
    Notes receivable, net of current
     portion                                       71,093        56,500
    Other assets                                   54,348        59,349
                                                   ------        ------

          Total assets                         $2,251,779    $2,083,577
                                               ==========    ==========

      Liabilities and Stockholders' Equity
    Current liabilities
        Accounts payable, accrued expenses
         and other                                $60,026      $108,905
      Accrued compensation                        149,409       135,922
      Current portion of long-term debt and
       capital lease obligations                  137,613       132,915
        Billings in excess of services
         provided                                  28,635        30,872
                                                   ------        ------
        Total current liabilities                 375,683       408,614

    Long-term debt and capital lease
     obligations, net of current portion          417,532       418,592
    Deferred income taxes                          98,255        83,777
    Other liabilities                              48,970        45,037
                                                   ------        ------
          Total liabilities                       940,440       956,020

    Stockholders' equity
      Preferred stock, $0.01 par value;
       5,000 shares authorized, none
       outstanding                                      -             -
      Common stock, $0.01 par value;
       75,000 shares authorized;
       75,000 shares issued and
       outstanding - 51,815 (2009)
       and 50,903 (2008)                              518           509
      Additional paid-in capital                  776,870       733,520
      Retained earnings                           578,956       472,503
      Accumulated other
       comprehensive income                       (45,005)      (78,975)
                                                  -------       -------
          Total stockholders' equity            1,311,339     1,127,557
                                                ---------     ---------

          Total liabilities and
           stockholders' equity                $2,251,779    $2,083,577
                                               ==========    ==========

    (1) As of January 1, 2009 we adopted FSP APB 14-1, "Accounting for
        Convertible Debt Instruments that May be Settled in Cash
        Upon Conversion (Including Partial Cash Settlement)"
        (FSP APB 14-1) which addresses the accounting for convertible debt
        instruments that may be settled in cash upon conversion.
        Our 3 3/4% Convertible Senior Notes due 2012 issued in August 2005
        are subject to FSP APB 14-1. The adoption of FSP APB 14-1 requires
        retrospective application of its effects to all previous years.
        The adoption of this FSP resulted in a $0.6 million decrease in
        other assets, a $18.0 decrease in the current portion of long-term
        debt, a $7.0 million increase in deferred income taxes, an $18.0
        million increase in additional paid in capital and a $7.6 million
        decrease in retained earnings from the amounts previously reported
        at December  31, 2008.

    (2) These amounts are revised based upon our completion of an internal
        re-examination of our historical practices regarding our
        accounting for acquisition-related earnout payments. In connection
        with this re-examination, we concluded that we had reported
        immaterial errors in prior period financial statements. Further
        information related to these immaterial errors can be found in the
        Current Report on Form 8-K as filed by the Company with the
        Securities and Exchange Commission on August 10, 2009. This
        press release should be read in conjunction with such previously
        filed reports.

SOURCE FTI Consulting, Inc.

Jack Dunn, President & CEO, FTI Consulting, +1-561-515-1900; Investors, Gordon McCoun, or Media, Andy Maas, both of FD, +1-212-850-5600

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