Consulting Expects Q2 Rev $395M-$401M vs. $379.2M Est; EPS $0.54-$0.59 vs. $0.57 Est
FTI Consulting, Inc. (NYSE: FCN) today announced preliminary estimates of revenues and earnings for the second quarter of 2011. Revenues are expected to be in the range of $395 million to $401 million, and adjusted earnings per diluted share (a non-GAAP measure) are expected to be in the range of $0.54 to $0.59, which excludes a special charge that will be recorded in the second quarter which is estimated to be $17 million on a pre-tax basis. The special charge reduces earnings per diluted share by $0.24. Estimated earnings per diluted share (which includes the special charge) are expected to be in the range of $0.30 to $0.35.
The special charge relates to actions taken by the Company during the second quarter to reduce executive management related overhead in connection with the recent restructuring of the Company on a global basis and to align the Company's workforce with expected market trends. The Company expects that these actions will result in savings of approximately $9 million over the remainder of 2011. The cash portion of the special charge is approximately $10 million with the balance relating to non-cash costs primarily resulting from terminating certain employees who are entitled to acceleration of non-cash compensation.
Jack Dunn, President and Chief Executive Officer of FTI Consulting, Inc. commented, "These changes were made to strengthen and streamline our business as we head into the second half of the year. We look forward to announcing detailed second quarter results as well as providing an update to our guidance on August 4, 2011."
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