Managing Director, Investor Relations and Communications
Dear Fellow Stockholders,
2016 was a superb year for FTI Consulting. We delivered record revenues and double-digit GAAP and adjusted earnings per share gains for the second year in a row – the first time since 2009.
Our full year 2016 results were driven, in part, by record revenues in our Corporate Finance & Restructuring and Economic Consulting segments. Our strong competitive positions and leading professionals in these businesses allowed us to win the biggest assignments and take advantage of partial market surges.
Full year 2016 results were also driven by the third year in a row of improved performance in our Strategic Communications segment and growing contributions from our Europe, Middle East and Africa (“EMEA”) region, reflecting the success of multi-year investments in each of these businesses. Our Strategic Communications team has now moved a business that had three years of sustained declines in Adjusted Segment EBITDA to three years of sustained growth. In EMEA, the team delivered record revenues while growing headcount by 11% in 2016.
We also continued to conduct systematic, deep strategic looks at parts of our businesses that were not performing to their potential, taking a hard look at our Technology segment and the Health Solutions practice within our Forensic and Litigation Consulting segment. In both of these businesses, we put in place new leadership teams and took out costs while investing behind strategies that we believe will fundamentally improve their trajectories.
In 2016, we continued our commitment to disciplined capital allocation management. FTI Consulting has always been a strong cash generator, but, over the last three years, our actions have resulted in free cash flows that have more than doubled since 2014. These strong free cash flows allow for a combination of capital allocation strategies that we believe, combined with organic growth, will yield enhanced returns for our stockholders.
Our businesses, given how event driven they are, will always experience a substantial amount of volatility. But, most important, 2016 is further validation that this volatility can be and is around a strong, rising mean.
We are making serious progress in turning each of our businesses, and the business as a whole, into sustained growth engines. I look forward to continuing this progress, together, in 2017.
Steven H. Gunby
President & Chief Executive Officer