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Press Releases
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| Developments in Corporate Finance/Restructuring Practice |
Updates Developments in Corporate Finance/Restructuring Practice;
Provides Preliminary Review of Fourth-Quarter 2003 Results
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Annapolis, MD
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January 28, 2004
FTI Consulting, Inc. (NYSE: FCN), the premier
provider of corporate finance/restructuring, forensic accounting, economic consulting, and trial
services, today announced the expected departure of a number of senior professionals in its
Corporate Finance/Restructuring practice which is expected to result in a reduction of revenues
and earnings from that practice.
FTI has previously commented on an anticipated decline in revenues and earnings from the
Corporate Finance/Restructuring practice for the year ended December 31, 2004. The
unanticipated departure of a number of senior managing directors associated with the former
FTI/Policano & Manzo practice is expected to lead to a further reduction of current revenue
generating engagements, which reductions were not considered and reflected in FTI's prior
earnings guidance. The practice of the departing professionals and other senior professionals and
staff in that practice had been expected to contribute in 2004 up to 21% of FTI's earnings before
interest, taxes, depreciation and amortization of property and equipment, which is included in
selling, general and administrative expenses, and amortization of other intangible assets, which is
reflected as a separate line item in FTI’s consolidated statements of income (EBITDA).
Even with the unanticipated loss of these individuals, FTI remains one of the largest
restructuring advisory firms in the United States and remains committed to its Corporate
Finance/Restructuring Practice. Working with the remaining senior managing directors
(including Michael Policano and Robert Manzo), FTI is putting in place action plans designed to
minimize the impact of lost clients and staff. While the loss of engagements will impact future
results of operations, FTI is still assessing the client relationships involved and at this time is not
in a position to update its earnings guidance. FTI intends to update its guidance to reflect the
impact of the recent departures when it has adequately assessed all available information. |
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