BALTIMORE, July 31 /PRNewswire-FirstCall/ -- FTI Consulting, Inc. , a premier provider of problem-solving consulting and technology services to major corporations, financial institutions and law firms, today reported its financial results for the second quarter ended June 30, 2006 and addressed guidance for the remainder of the year.
Second-Quarter Results
For the second quarter of 2006, revenues rose 29.0 percent to $159.8 million compared with $123.9 million for the second quarter of the prior year. Earnings per diluted share in the second quarter of 2006 were $0.32 after $0.04 of share-based compensation compared to $0.29 after $0.04 of share-based compensation for the second quarter of 2005, a 10.3 percent increase. Unless specifically stated, all financial information in this release includes share- based compensation expense for 2006 but does not include it for prior periods.
Earnings from operations before interest, taxes, depreciation and amortization (EBITDA) rose 8.9 percent to $34.2 million, 21.4 percent of revenues (22.9 percent prior to $2.4 million of share-based compensation), compared with EBITDA of $31.4 million, 25.4 percent of revenues, in the prior year. The company's income tax rate, including the effect of share-based compensation, was approximately 44.5 percent for the second quarter of 2006, compared to 42.0 percent last year.
Net income per diluted share during the second quarter of 2006 was impacted by higher amortization and net interest expense, principally due to the impact of front-end-loaded amortization of intangibles related to our Ringtail, Compass and Cambio acquisitions and lower interest income related to smaller cash balances due to the funding of working capital related to growth, including approximately $22.0 million subject to bankruptcy court approval, and the cash used in the re-signing of twenty-eight Senior Managing Directors in its Corporate Finance/Restructuring segment.
Commenting on the quarter, Jack Dunn, FTI's president and chief executive officer, said, "In the second quarter the Technology segment significantly exceeded our expectations and both the Forensic/Litigation and Economic segments saw solid performance, but not quite at the pace of the first quarter primarily as a result of the completion of a large assignment in the first quarter. Corporate Finance/Restructuring, however, continues to face a very challenging market for its turnaround and restructuring services. The overall performance of our company is a tribute to the balanced portfolio approach we have built and the steps we have taken over the last several years to diversify from primarily a restructuring firm just three years ago."
"Looking forward, we believe Technology will continue very strong and that the outlook for Forensic/Litigation Consulting and Economic Consulting remains very solid, with our new Global/Risk and Investigation Practice gaining significant momentum. We believe the turnaround and restructuring market will remain depressed and competitive here and abroad. Accordingly we will continue to focus on the effect of market conditions on the restructuring practice and are taking aggressive steps towards restoring our profit margins to historical levels. We remain committed to our goal of achieving $1 billion in revenue by 2009 with 25% EBITDA margins before share-based compensation."
Cash flow provided by operations was $7.8 million in the second quarter of 2006, net of cash of approximately $16.8 million issued as long-term forgivable loans in connection with the re-signing of twenty-eight Senior Managing Directors in its Corporate Finance/Restructuring segment. Cash flow provided by operations in the second quarter of 2005 was $31.5 million. At June 30, 2006, FTI had cash and cash equivalents of approximately $37.6 million, plus $9.0 million in cash held in escrow for the closing of the acquisition of International Risk, which closed in the first week of July. Total long-term debt at June 30, 2006 was $350.0 million, and no amounts were outstanding under the company's revolving credit agreement. The company repurchased 300,000 shares of common stock during the second quarter at an average price of $26.81 per share, and 300,000 shares at an average price of $28.33 in the first quarter, for an aggregate of approximately $16.5 million. At June 30, 2006, the remaining amount authorized under the company's current share repurchase program was approximately $33.5 million.
Total headcount at June 30, 2006 was 1,498, and revenue-generating headcount was 1,124. Utilization of revenue-generating personnel was approximately 74.2 percent for the second quarter, and average rate per hour for the quarter was approximately $338.
Second-Quarter Business Segment Results
Forensic and Litigation Consulting
Revenues increased 16.8 percent to $45.1 million in the second quarter from $38.6 million for the same period in the prior year. Segment EBITDA was $13.3 million, 29.6 percent of revenues, an increase of 1.5 percent from $13.1 million, 34.0 percent of revenues, for the same period in the prior year. The prior year's revenues and segment EBITDA have been adjusted to exclude the company's new Technology Consulting segment. The Technology Consulting segment, which is discussed separately below, began reporting as a separate segment in 2006.
Technology Consulting
Revenues increased 117.2 percent to $29.1 million in the second quarter from $13.4 million in the same period in the prior year. Segment EBITDA was $12.0 million, 41.1 percent of revenues, an increase of 106.9 percent from $5.8 million, 43.3 percent of revenues, for the same period in the prior year.
Corporate Finance/Restructuring
Revenues were $49.9 million for the second quarter of 2006, compared with $44.3 million for the second quarter of 2005, an increase of 12.6 percent. Segment EBITDA was $10.1 million, 20.3 percent of revenues, a decrease of 26.8 percent from $13.8 million, 31.2 percent of revenues, for the same period in the prior year.
Economic Consulting
Revenues were $35.6 million in the second quarter of 2006, increasing 29.5 percent from $27.5 million in the second quarter of 2005. Segment EBITDA was $9.5 million, 26.8 percent of revenues, an increase of 37.7 percent from $6.9 million, 24.9 percent of revenues, for the same period in the prior year.
Six-Month Results
For the first half of 2006, revenues rose 36.8 percent to $329.0 million compared with $240.5 million for the first half of the prior year. Earnings per diluted share for the first half of 2006 were $0.62 after $0.10 of share- based compensation compared to $0.54 after $0.08 of share-based compensation for the first half of 2005, a 14.8 percent increase. First-half 2006 results include approximately $5.5 million of pre-tax share-based compensation expense, $0.10 per share after taxes, compared with $3.6 million and $0.08, respectively, of pro forma share-based compensation expense for the same period in the prior year as if Statement No.123(R) had been adopted at the beginning of 2005.
Earnings from operations before interest, taxes, depreciation and amortization (EBITDA) rose 17.1 percent to $67.8 million, 20.6 percent of revenues (22.2 percent prior to $5.4 million of share-based compensation), compared with EBITDA of $57.9 million, 24.1 percent of revenues, in the prior year. The company's income tax rate, including the effect of share-based compensation, was approximately 45.0 percent for the first half of 2006 compared to 42.0 percent last year.
Forensic and Litigation Consulting revenues increased 24.3 percent to $95.2 million in the first half from $76.6 million for the same period in the prior year. Segment EBITDA was $26.4 million, 27.7 percent of revenues, an increase of 8.6 percent from $24.3 million, 31.7 percent of revenues, for the same period in the prior year. The prior year's revenues and segment EBITDA have been adjusted to exclude the company's new Technology Consulting segment. The Technology Consulting segment, which is discussed separately below, began reporting as a separate segment in 2006.
Technology Consulting revenues increased 123.5 percent to $56.1 million in the first half from $25.1 million in the same period in the prior year. Segment EBITDA was $22.9 million, 40.9 percent of revenues, an increase of 138.5 percent from $9.6 million 38.1 percent of revenues, for the same period in the prior year.
Corporate Finance/Restructuring revenues were $104.0 million for the first half of 2006, compared with $85.8 million for the first half of 2005, an increase of 21.2 percent. Segment EBITDA was $24.4 million, 23.4 percent of revenues, a decrease of 10.3 percent from $27.2 million, 31.7 percent of revenues, for the same period in the prior year.
Economic Consulting revenues were $73.7 million in the first half of 2006, increasing 39.1 percent from $53.0 million in the first half of 2005. Segment EBITDA was $18.2 million, 24.8 percent of revenues, an increase of 43.3 percent from $12.7 million, 23.9 percent of revenues, for the same period in the prior year.
Guidance Raised for Remainder of 2006
Based on results for the second quarter of 2006 and market conditions, FTI has raised its outlook for the remainder of 2006. Revenues are now anticipated to increase to a range of $647.0 million to $663.0 million. Earnings per diluted share are now anticipated to range from $1.26 to $1.35, including the impact of expensing stock options in accordance with FASB Statement No.123(R). FTI presently anticipates pre-tax share-based compensation of approximately $12.0-$13.0 million, approximately $0.21-$0.22 per diluted share for 2006, although the anticipated amounts can not be predicted with certainty because they will depend on the levels and timing of share-based compensation that may be issued in connection with the company's hiring, performance evaluation and retention programs and potential acquisitions, as well as the price of the company's stock. For comparative purposes, earnings per diluted share for 2005 on a pro forma basis would have been reduced by approximately $0.18 per share if 123(R) had been adopted at the beginning of 2005. EBITDA, including the expensing of stock options, is now expected to range from $138.0 million to $144.0 million.
Average bill rates in 2006 are now expected to be approximately $338 per hour and utilization to be approximately 77 percent (on a 2,032 hours base). Revenue-generating headcount at the end of 2006 is anticipated to range from 1,133 to 1,157.
The accompanying table indicates anticipated results and applicable business metrics by the company's four business segments for 2006 and is presented including the estimated impact of expensing stock options.
Second-Quarter Conference Call
FTI will hold a conference call to discuss second-quarter financial results at 11:00 a.m. Eastern time on Tuesday, August 1, 2006. 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, http://www.fticonsulting.com/.
About FTI Consulting
FTI is a premier provider of problem-solving consulting and technology services to major corporations, financial institutions and law firms when confronting critical issues that shape their future and the future of their clients, such as financial and operational improvement, major litigation, complex investigations, mergers and acquisitions and regulatory issues. FTI has 25 offices in major U.S. cities, and offices in Europe, Asia and Australia. FTI's total workforce of more than 1,400 employees includes numerous PhDs, MBAs, CPAs, CIRAs and CFEs, who are committed to delivering the highest level of service to clients.
Note: Although EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, FTI believes that it is a useful operating performance measure for evaluating its results of operations from period to period and as compared to its 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 its industry. FTI uses EBITDA to evaluate and compare the operating performance of its segments and it is one of the primary measures used to determine employee bonuses. FTI also uses EBITDA to value businesses it acquires or anticipates acquiring. A reconciliation of EBITDA to net earnings and EBITDA is included in the accompanying tables to this press release when reasonably available. Information relating to stock option issuances and stock prices during 2006 cannot be predicted and are not quantifiable with certainty at this time. In addition, the impact of accounting under FASB Statement 123(R) with respect to 2006 stock option issuances is not determinable with certainty at this time. Such information is not available without an unreasonable effort or otherwise. 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. In addition, because the calculation of EBITDA in the maintenance covenants contained in FTI's credit facilities is based on accounting policies in use, consistently applied from the time the indebtedness was incurred, EBITDA as a supplemental financial measure is also indicative of the company's capacity to service debt and thereby provides additional useful information to investors regarding the company's financial condition and results of operations. EBITDA for purposes of those covenants is not calculated in the same manner as it is calculated in the accompanying table.
This press release includes "forward-looking" statements that involve uncertainties and risks. There can be no assurance that actual results will not differ from the company's expectations. The company has experienced fluctuating revenues, operating income and cash flow in some prior periods and expects this may occur from time to time in the future. As a result of these possible fluctuations, the company's actual results may differ from our projections. Further, preliminary results are subject to normal year-end adjustments. Other factors that could cause such differences include pace and timing of additional 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 in the company's 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 SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(in thousands, except per share data)
Six Months Ended
June 30, June 30,
2006 2005
(unaudited)
Revenues $329,024 $240,531
Direct cost of revenues 185,342 129,537
Selling, general and administrative
expense 81,836 57,443
Amortization of other intangible
assets 5,759 2,357
272,937 189,337
Operating income 56,087 51,194
Other income (expense)
Interest and other expense, net (10,413) (3,865)
Litigation settlements (269) (1,012)
Income before income tax provision 45,405 46,317
Income tax provision 20,451 19,453
Net income $24,954 $26,864
Earnings per common share - basic $0.64 $0.63
Weighted average common shares
outstanding - basic 39,260 42,565
Earnings per common share - diluted $0.62 $0.62
Weighted average common shares
outstanding - diluted 40,104 43,035
Supplemental Financial Data
Six Months Ended
June 30, June 30,
2006 2005
EBITDA Reconciliation: (in thousands)
EBITDA(1) $67,751 $57,851
Litigation settlements 269 1,012
Depreciation and other amortization (6,174) (5,312)
Amortization of other intangible assets (5,759) (2,357)
Operating income 56,087 51,194
Litigation settlements (269) (1,012)
Interest expense, net (10,413) (3,865)
Income tax provision (20,451) (19,453)
Net income $24,954 $26,864
(1) We define EBITDA (earnings before net interest, taxes, depreciation
and amortization) as net income before income taxes, net interest
expense, depreciation and amortization which may not be similar to
EBITDA measures of other companies. EBITDA is not a measurement under
accounting principles generally accepted in the United States and
should be considered in addition to, but not as a substitute for, the
information contained in our statements of income. We believe that
EBITDA is useful to investors because it is an indicator of the
strength and performance of our ongoing business operations, including
our ability to fund capital expenditures and service debt. While
depreciation and amortization are considered operating costs under
generally accepted accounting principles, these expenses primarily
represent the non-cash current period allocation of costs associated
with long-lived assets acquired or constructed in prior periods.
EBITDA is a common alternative performance measure used by investors,
analysts and credit rating agencies to evaluate and compare the
operating performance and value of companies within our industry.
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(in thousands, except per share data)
Three Months Ended
June 30, June 30,
2006 2005
(unaudited)
Revenues $159,760 $123,917
Direct cost of revenues 90,083 65,192
Selling, general and administrative expense 38,610 29,290
Amortization of other intangible assets 2,805 1,608
131,498 96,090
Operating income 28,262 27,827
Other income (expense)
Interest and other expense, net (5,451) (2,310)
Litigation settlements (5) (708)
Income before income tax provision 22,806 24,809
Income tax provision 10,139 10,420
Net income $12,667 $14,389
Earnings per common share - basic $0.32 $0.34
Weighted average common shares
outstanding - basic 39,114 42,808
Earnings per common share - diluted $0.32 $0.33
Weighted average common shares
outstanding - diluted 39,885 43,326
Supplemental Financial Data
Three Months Ended
June 30, June 30,
2006 2005
EBITDA Reconciliation: (in thousands)
EBITDA(1) $34,187 $31,438
Litigation settlements 5 708
Depreciation and other amortization (3,125) (2,711)
Amortization of other intangible assets (2,805) (1,608)
Operating income 28,262 27,827
Litigation settlements (5) (708)
Interest expense, net (5,451) (2,310)
Income tax provision (10,139) (10,420)
Net income $12,667 $14,389
(1) We define EBITDA (earnings before net interest, taxes, depreciation
and amortization) as net income before income taxes, net interest
expense, depreciation and amortization which may not be similar to
EBITDA measures of other companies. EBITDA is not a measurement under
accounting principles generally accepted in the United States and
should be considered in addition to, but not as a substitute for, the
information contained in our statements of income. We believe that
EBITDA is useful to investors because it is an indicator of the
strength and performance of our ongoing business operations, including
our ability to fund capital expenditures and service debt. While
depreciation and amortization are considered operating costs under
generally accepted accounting principles, these expenses primarily
represent the non-cash current period allocation of costs associated
with long-lived assets acquired or constructed in prior periods.
EBITDA is a common alternative performance measure used by investors,
analysts and credit rating agencies to evaluate and compare the
operating performance and value of companies within our industry.
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(in thousands)
June 30, June 30,
2006 2005
Operating activities
Net income $24,954 $26,864
Adjustments to reconcile net income
to net cash (used in) provided by
operating activities
Depreciation and other amortization 6,174 5,312
Amortization of other intangible assets 5,759 2,357
Provision for doubtful accounts 3,647 792
Non-cash stock-based compensation expense 6,671 906
Non-cash interest and other 380 1,652
Changes in operating assets and liabilities
Accounts receivable, billed and unbilled (31,235) (25,022)
Notes receivable (26,843) 1,216
Prepaid expenses and other assets (2,113) (1,155)
Accounts payable, accrued expenses and
other 5,602 96
Income taxes payable (2,268) 2,841
Accrued compensation (21,431) 689
Billings in excess of services provided 656 (574)
Net cash (used in) provided by operating
activities (30,047) 15,974
Investing activities
Payments for acquisition of businesses,
including contingent payments and
acquisition costs (50,201) (46,651)
Purchases of property and equipment (8,659) (8,992)
Proceeds from note receivable due from
purchasers of former subsidiary - 5,525
Cash placed in escrow to acquire business (9,000) -
Change in other assets 345 (65)
Net cash used in investing activities (67,515) (50,183)
Financing activities
Purchase and retirement of common stock (23,376) (7,707)
Borrowings under long-term credit facility - 50,000
Payments of long-term debt - (12,500)
Borrowings under revolving line of credit - 33,500
Payments of revolving line of credit - (33,500)
Issuance of common stock under equity
compensation plans 4,306 2,635
Income tax benefit from stock option exercises 805 -
Payments of debt financing fees, capital lease
obligations and other 26 (820)
Net cash (used in) provided by financing
activities (18,239) 31,608
Net decrease in cash and cash equivalents (115,801) (2,601)
Cash and cash equivalents, beginning
of period 153,383 25,704
Cash and cash equivalents, end of period $37,582 $23,103
FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
Revenue
Gener-
ating
Utili- Average Head
Revenues EBITDA(1) Margin zation Rate count
(in thousands)
Three Months Ended
June 30, 2006
Corporate Finance/
Restructuring $49,914 $10,126 20.3% 74% $398 342
Forensic and Litigation
Consulting 45,112 13,337 29.6% 75% $296 340
Economic Consulting 35,627 9,541 26.8% 77% $379 214
Technology 29,107 11,970 41.1% 70% $249 228
$159,760 44,974 28.2% 74% $338 1,124
Corporate expenses (10,787)
EBITDA(1) $34,187 21.4%
Six Months Ended
June 30, 2006
Corporate Finance/
Restructuring $104,004 $24,386 23.4% 77% $396 342
Forensic and
Litigation
Consulting 95,225 26,350 27.7% 79% $293 340
Economic Consulting 73,703 18,246 24.8% 81% $375 214
Technology 56,092 22,924 40.9% 77% $256 228
$329,024 91,906 27.9% 79% $337 1,124
Corporate expenses (24,155)
EBITDA(1) $67,751 20.6%
Three Months Ended
June 30, 2005
Corporate Finance/
Restructuring $44,342 $13,817 31.2% 84% $397 310
Forensic and
Litigation
Consulting 38,602 13,124 34.0% 76% $295 308
Economic Consulting 27,544 6,866 24.9% 86% $379 155
Technology 13,429 5,809 43.3% 74% $242 115
$123,917 39,616 32.0% 81% $340 888
Corporate expenses (8,178)
EBITDA(1) $31,438 25.4%
Six Months Ended
June 30, 2005
Corporate Finance/
Restructuring $85,836 $27,197 31.7% 84% $404 310
Forensic and
Litigation
Consulting 76,644 24,298 31.7% 78% $288 308
Economic Consulting 52,968 12,669 23.9% 86% $381 155
Technology 25,083 9,560 38.1% 76% $241 115
$240,531 73,724 30.7% 81% $339 888
Corporate expenses (15,873)
EBITDA(1) $57,851 24.1%
(1) We define EBITDA (earnings before net interest, taxes, depreciation
and amortization) as net income before income taxes, net interest
expense, depreciation and amortization which may not be similar to
EBITDA measures of other companies. EBITDA is not a measurement under
accounting principles generally accepted in the United States and
should be considered in addition to, but not as a substitute for, the
information contained in our statements of income. We believe that
EBITDA is useful to investors because it is an indicator of the
strength and performance of our ongoing business operations, including
our ability to fund capital expenditures and service debt. While
depreciation and amortization are considered operating costs under
generally accepted accounting principles, these expenses primarily
represent the non-cash current period allocation of costs associated
with long-lived assets acquired or constructed in prior periods.
EBITDA is a common alternative performance measure used by investors,
analysts and credit rating agencies to evaluate and compare the
operating performance and value of companies within our industry.
FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2006 AND DECEMBER 31, 2005
(in thousands, except per share amounts)
June 30, December 31,
2006 2005
Assets
Current assets
Cash and cash equivalents $37,582 $153,383
Accounts receivable
Billed 106,716 87,947
Unbilled 71,445 56,871
Allowance for doubtful accounts
and unbilled services (18,154) (17,330)
160,007 127,488
Notes receivable 6,271 2,713
Prepaid expense and other current assets 13,264 8,147
Deferred income taxes 9,425 6,404
Total current assets 226,549 298,135
Property and equipment, net 31,349 29,302
Goodwill, net 637,985 576,612
Other intangible assets, net 23,195 21,454
Cash held in escrow 9,000 -
Notes receivable, net of current portion 29,801 6,516
Other assets 26,798 27,445
Total assets $984,677 $959,464
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable, accrued expenses
and other $20,460 $21,762
Accrued compensation 50,733 72,688
Billings in excess of services provided 11,150 10,477
Total current liabilities 82,343 104,927
Long-term debt, less current portion 346,458 348,431
Deferred income taxes 38,491 33,568
Deferred rent and other liabilities 21,136 18,269
Stockholders' equity
Preferred stock, $0.01 par value;
5,000 shares authorized, none
outstanding - -
Common stock, $0.01 par value; 75,000
shares authorized; 39,878 shares
issued and outstanding in 2006 and
39,009 shares issued and outstanding
in 2005 399 390
Additional paid-in capital 243,983 238,055
Unearned compensation - (11,089)
Retained earnings 251,867 226,913
Total stockholders' equity 496,249 454,269
Total liabilities and stockholders'
equity $984,677 $959,464
FTI CONSULTING, INC.
REVISED OUTLOOK RANGE FOR 2006 BY BUSINESS SEGMENT
Revenue
Gener-
Aver- ating
Utili- age Head-
Revenues EBITDA(1) Margin zation Rate count
(in thousands) (2) (2)
Outlook Range for 2006
From ($1.26 per share)
Forensic and Litigation $184,000 $56,000 30.4% 76% $296 330
Technology Consulting(2) $108,000 43,000 39.8% 72% $249 240
Corporate Finance/
Restructuring $210,000 47,000 22.4% 75% $398 343
Economic Consulting $145,000 40,000 27.6% 79% $379 220
$647,000 186,000 28.7% 76% $338 1,133
Corporate expenses 48,000 7.4%
EBITDA(1) $138,000 21.3%
To ($1.35 per share)
Forensic and Litigation $187,000 $57,000 30.5% 77% $293 340
Technology Consulting(2) $112,000 46,000 41.1% 72% $256 244
Corporate Finance/
Restructuring $216,000 49,000 22.7% 77% $396 343
Economic Consulting $148,000 42,000 28.4% 80% $375 230
$663,000 194,000 29.3% 77% $337 1,157
Corporate expenses 50,000 7.5%
EBITDA(1) $144,000 21.7%
(1) We define EBITDA (earnings before net interest, taxes, depreciation
and amortization) as operating income before depreciation and
amortization which may not be similar to EBITDA measures of other
companies. EBITDA is not a measurement under accounting principles
generally accepted in the United States and should be considered in
addition to, but not as a substitute for, the information contained in
our statement of operations. We believe that EBITDA is useful to
investors because it is an indicator of the strength and performance
of our ongoing business operations, including our ability to fund
capital expenditures and service debt. While depreciation and
amortization are considered operating costs under generally accepted
accounting principles, these expenses primarily represent the non-cash
current period allocation of costs associated with long-lived assets
acquired or constructed in prior periods. EBITDA is a common
alternative performance measure used by investors, analysts and credit
rating agencies to evaluate and compare the operating performance and
value of companies within our industry.
(2) Utilization and Average Rate metrics do not apply to significant
portions of the Technology Consulting segment
