FTI Consulting Inc. Q3 2009 Earnings Call Transcript

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2009-11-04 18:05:57.0

Tags: Acquisition, Deutsche Bank AG, Cash Flow, Call Transcript, FTI Consulting Inc., Earnings, Buyback, Mergers & Acquisitions, Corporate Law, Operational Accounting, Personal Finance, Investment, Finance, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Paul Ginocchio - Deutsche Bank.

Paul Ginocchio - Deutsche Bank

If you go into a little more detail on the technology side that’s would be most helpful to get my indication. How much was that product liability case? What was the change from segment to decrease size on that and maybe give us a little more color? Then you didn’t make any details by your full year guidance, should we assume it’s still in place? Thanks.

Dennis Shaughnessy

The liability case is the largest case we’ve ever had and it’s slowly started burning off in this year and significantly dropped Q2 to Q3. So it was a sizable number, but we don’t want to go into an individual case by case, but it was significant. We feel very comfortable with our earnings guidance that we put out. So we have no change to that. Clearly we were underneath the assumption that a lot of you made on revenues and we’ll have to hustle to make our revenue number, but we feel extremely comfortable on the evenings.

Paul Ginocchio - Deutsche Bank

I think it’s implying it, I think around $0.71 for the fourth quarter to midpoint?

Dennis Shaughnessy

Again, we are very comfortable with the range that we gave you.

Paul Ginocchio - Deutsche Bank

Finally if I can sneak in, with the buyback does that mean your Q acquisitions will come??

Jack Dunn

The question with ?The buyback would we anticipate fewer acquisitions?? I think the answer to that is no. We have substantial cash flow. We have a credit line of $175 million. If we find, we don’t buy things that typically aren’t accretive and don’t have substantial cash flow and we’re assured by our banking sources on that kind of deal and a combination between our equity and being able to use the additional debt because we would buy thing that have cash flow, that we would be able to continue our acquisition program, absolutely.

Dennis Shaughnessy

Before recommending it to the Board, we did extensive market checks and our availability. The credit markets availability to us and we feel extremely comfortable that the buyback will not inhibit our acquisition policy.

Operator

Your next question comes from Tobey Sommer - Suntrust Robinson Humphrey.

Tobey Sommer - Suntrust Robinson Humphrey

I appreciate the commentary that you made around 2010 and being able to resume your organic growth targets. I was wondering if you could comment about perhaps the different opportunity within the segments not in terms of guidance, but maybe rank order which ones are the best and which ones maybe a little bit of a question mark as to how things will turn out? Thank you.

 

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