2013: A Year in Review
In 2013, revenues of $1.65 billion were 4.8 percent higher than in 2012. Acquisitions contributed $48.2 million and represented 3.1 percent of the year-over-year revenue growth. Our Adjusted EBITDA was $259.1 million, or 15.7 percent of revenues, and Adjusted EPS were $2.39.
Financial Position, Capital Management & Capital Allocation
Net cash provided by operating activities for 2013 was $193.3 million compared to $120.2 million in the prior year period. Cash and cash equivalents were $205.8 million at December 31, 2013.
In 2013, we maintained our balanced capital allocation strategy, which includes the pursuit of high-quality acquisitions, making capital investments to support our long-term growth objectives and returning value to stockholders through share repurchases. During the year, we purchased and retired 1.96 million shares of our common stock for a total cost of $71.1 million and invested $51.0 million on six tuck-in acquisitions.
Business in general is increasingly becoming more complicated and more global and FTI Consulting recognizes that clients need support to navigate through these complexities. FTI Consulting’s broad practice offering, global reach, industry expertise and expert model, is designed to meet these needs.
In 2013, the Company invested $51.0 million on six tuck-in acquisitions. Each of these acquisitions expanded our service offering, geographic footprint or industry expertise.
- On February 7, 2013, we acquired Alliance Construction Consultants, providers of claims consulting, CPM scheduling, quantity surveying and project controls services to sectors of the construction industry.
- On March 19, 2013, we acquired C2 Group, a highly regarded bipartisan government relations and lobbying firm based in Washington, D.C.
- On April 4, 2013, we acquired Taylor Woodings, an Australian specialist corporate advisory firm with offices in Sydney, Melbourne, Perth and Brisbane.
- On May 1, 2013, we acquired Princeton Economics Group, a prominent economic consulting firm based in Princeton, New Jersey. As a part of the transaction, we secured access to the services of three world renowned economists.
- On November 4, 2013, we acquired affiliates of WD Scott Limited, providers of insurance management consulting services with professionals in Dublin, London and New York.
- On December 18, 2013, we acquired Risk Solutions International LLC, an independent provider of solutions to operational risks.
On December 16, 2013, the Company’s Board of Directors announced Steven H. Gunby as the next President and Chief Executive Officer of FTI Consulting. Mr. Gunby assumed the positions of President and Chief Executive Officer of FTI Consulting and joined the Board of Directors on January 20, 2014.
Mr. Gunby brings more than 30 years of strategic, operational and performance improvement experience in global management consulting to multi-national corporations. He has deep expertise in building long-term client relationships and growing a highly regarded consulting firm. Mr. Gunby joined FTI Consulting from The Boston Consulting Group, Inc. (“BCG”), where he had been employed since 1983, and had been a senior partner and managing director since 1993. He previously led BCG’s global Transformation & Large Scale Change Practice and BCG’s operations in the Americas.
In connection with these changes, the Company also announced that the Board of Directors adopted a revised governance model in which it has an independent Chairman of the Board. On December 13, 2013, the Board accepted Dennis Shaughnessy’s resignation as a director, to be effective upon his retirement as Executive Chairman of the Board following the Board’s December 17, 2013 meeting. The Board appointed director Gerard E. Holthaus, previously the Presiding Director, to become the independent Chairman of the Board effective December 17, 2013.