FTI Consulting reported Q2/18 revenues of $512.1 million, an increase of $67.4 million, or 15.2%, compared to revenues of $444.7 million in the prior year quarter. Excluding the estimated positive impact from foreign currency translation (FX), revenues increased by $61.6 million, or 13.8%, compared to the prior year quarter.
The company attributed the increase in revenues to higher demand within the Corporate Finance & Restructuring, Forensic and Litigation Consulting, Strategic Communications and Economic Consulting segments.
Net income of $43.6 million in Q2/18 compared to a net loss of $5.2 million in the prior year quarter, which included a pre-tax special charge of $30.1 million related to headcount and real estate actions. The increase in net income was largely due to higher operating profits and a lower effective income tax rate compared to the prior year quarter.
Revenues in the Corporate Finance and Restructuring segment increased $23.9 million, or 20.3%, to $141.4 million in the quarter compared to $117.5 million in the prior year quarter. The increase in revenues was due to higher demand for restructuring services coupled with higher realization for restructuring and business transformation services in the North American and European, Middle Eastern and African regions. Adjusted segment EBITDA was $35.8 million, or 25.3% of segment revenues, compared to $20 million, or 17.1% of segment revenues, in the prior year quarter. The increase in adjusted segment EBITDA was primarily due to higher revenues with improved utilization.
“We are very pleased with our record first half of 2018. Critically, that success supports our commitment to invest in our people by promoting internally and attracting superb professionals to our firm, which, in turn, allows us to further enhance our ability to help our clients navigate many of the largest and most complex issues in the world,’ said Steven H. Gunby, president and CEO of FTI, said,
