In October 2007, we closed on a public offering of 4,830,000 shares of the Company’s common stock,which included 630,000 shares sold pursuant to the exercise of the underwriter’s option to purchase additionalshares, at a price to the public of $50.00 per share, less the underwriting discount and commissions. The netproceeds of the offering were $231.4 million, after payment of the underwriting discounts, commissions andoffering expenses. We used the net proceeds from the offering for general corporate purposes, including thecontinuation of our strategic acquisition program.Year Ended December 31,<strong>2009</strong> 2008 2007 2006 2005(in thousands, except per share data)INCOME STATEMENT DATARevenues ............................. $1,399,946 $1,293,145 $1,001,270 $ 707,933 $539,545Operating ExpensesDirect cost of revenues ............... 767,387 708,783 552,347 389,089 291,592Selling, general and administrativeexpense ......................... 344,318 330,191 255,876 179,361 127,727Special charges ..................... — — — 22,972 —Amortization of other intangible assets . . 24,701 18,824 10,615 11,175 6,5341,136,406 1,057,798 818,838 602,597 425,853Operating income ...................... 263,540 235,347 182,432 105,336 113,692Interest income and other ............. 8,158 8,840 8,091 2,198 145Interest expense .................... (44,923) (45,105) (47,639) (32,441) (16,375)Litigation settlement (losses) gains,net ............................. 250 (661) (1,002) (187) (1,629)Income from continuing operations, beforeincome tax provision ................. 227,025 198,421 141,882 74,906 95,833Income tax provision ................ 83,999 77,515 55,548 35,744 40,277Net income ............................ $ 143,026 $ 120,906 $ 86,334 $ 39,162 $ 55,556Earnings per common share — basic ...... $ 2.86 $ 2.46 $ 2.01 $ 0.99 $ 1.36Earnings per common share — diluted .... $ 2.70 $ 2.26 $ 1.88 $ 0.97 $ 1.33Weighted average number of commonshares outstandingBasic ................................. 49,963 49,193 43,028 39,741 40,947Diluted ............................... 53,044 53,603 45,974 40,526 41,787December 31,<strong>2009</strong> 2008 2007 2006 2005(in thousands)BALANCE SHEET DATACash and cash equivalents ................ $ 118,872 $ 191,842 $ 360,463 $ 91,923 $153,383Working capital (1) ...................... 93,713 147,774 304,306 122,509 193,208Total assets ............................ 2,077,338 2,083,577 1,858,997 1,392,352 958,358Long-term debt and capital lease obligations,including current portion and fair valuehedge adjustments .................... 555,498 551,507 551,172 544,154 318,566Stockholders’ equity ..................... 1,104,214 1,127,557 978,274 577,100 471,526(1) Working capital is defined as current assets less current liabilities38
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONSThe following is a discussion and analysis of our consolidated financial condition, results of operations,liquidity and capital resources for each of the three years in the period ended December 31, <strong>2009</strong> and significantfactors that could affect our prospective financial condition and results of operations. You should read thisdiscussion together with our consolidated financial statements and notes included in “ — Item 8. FinancialStatements and Supplementary Data.” Historical results and any discussion of prospective results may notindicate our future performance. This section contains certain “forward-looking statements” within the meaningof federal securities laws that involve risks and uncertainties, including statements regarding our plans,objectives, goals, strategies and financial performance. Our actual results could differ materially from the resultsanticipated in these forward-looking statements.Business OverviewWe are a leading global business advisory firm dedicated to helping organizations protect and enhance theirenterprise value. We work closely with our clients to help them anticipate, understand, manage and overcomecomplex business matters arising from such factors as the economy, financial and credit markets, governmentalregulation and legislation and litigation. We assist clients in addressing a broad range of business challenges,such as restructuring (including bankruptcy), financing and credit issues and indebtedness, interim businessmanagement, forensic accounting and litigation services, mergers and acquisitions (M&A), antitrust andcompetition matters, electronic discovery, management and retrieval of electronically stored information,reputation management and strategic communications. We also provide services to help our clients to takeadvantage of economic, regulatory, financial and other business opportunities. Our experienced teams ofprofessionals include many individuals who are widely recognized as experts in their respective fields. Webelieve clients retain us because of our recognized expertise and capabilities in highly specialized areas as well asour reputation for satisfying client needs.We report financial results for the following five operating segments:Our Corporate Finance/Restructuring segment focuses on strategic, operational, financial and capitalneeds of businesses around the world and provides consulting and advisory services on a wide range of areas,including restructuring (including bankruptcy), financings, claims management, mergers and acquisitions(M&A), post-acquisition integration, valuations, tax issues and performance improvement.Our Forensic and Litigation <strong>Consulting</strong> segment provides law firms, companies, government clients andother interested parties with dispute advisory, investigations, forensic accounting, business intelligenceassessments and risk mitigation services.Our Economic <strong>Consulting</strong> segment provides law firms, companies, government entities and otherinterested parties with analysis of complex economic issues for use in legal and regulatory proceedings, strategicdecision making and public policy debates in the U.S. and around the world.Our Technology segment is a leading electronic discovery and information management software andservice provider. It provides products, services and consulting to companies, law firms, courts and governmentagencies worldwide. Its comprehensive suite of software and services help clients locate, review and produceelectronically stored information (ESI), including e-mail, computer files, voicemail, instant messaging, andfinancial and transactional data.Our Strategic Communications segment provides advice and consulting services relating to financialcommunications, brand communications, public affairs and reputation management and business consulting.39
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ITEM 9. CHANGES IN AND DISAGREEMENT
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PART IVITEM 15. EXHIBITS AND FINANC
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SIGNATURESPursuant to the requireme
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FTI Consulting Canada LLC .........
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The Board of DirectorsFTI Consultin
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Exhibit 31.2Certification of Princi
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Exhibit 32.2Certification of Princi
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CORPORATE TEAMJack B. Dunn, IVPresi