Holmes Report 03 Mar 2013 // 12:00AM GMT
NEW YORK—FTI Consulting has reported growth of around 2.2 percent in its strategic communications business (the former Financial Dynamics) during the fourth quarter of 2012, although PR revenues for the full year were down by about 7 percent, from $200.9 million in 2011 to $187.76 million in 2012.
Fourth quarter revenues increased 2.2 percent to $50.3 million from $49.2 million in the prior year quarter. Pre-tax profit was $8.7 million, for a margin of 17.4 percent, up from 15.3 percent of segment revenues in the prior year quarter.
In a statement, FTI said there had been growth in areas such as shareholder activism and that there were signs that capital markets activity—merger and acquisitions and IPOs—were beginning to make a comeback. There was additional growth in the energy and life sciences sectors and the government affairs practice.
Commenting of the group’s overall performance—which also saw 2.2 percent growth in the fourth quarter—FTI president and chief executive Jack Dunn said, "Our fourth quarter results provide a promising foundation for the launch of our 31st year. We saw quarterly growth in three of our businesses and enjoyed solid operating performance and strong cash flow. December was the strongest cash collection month in our history and, coupled with the successful refinancing of our long term debt, provides us with a powerful balance sheet and financial position going forward.”