FTI Consulting Inc (FCN) 2002 Q3 法說會逐字稿

Good morning. My name is Lee and I will be your conference facilitator today. At this time, I would like to welcome everyone to the FTI Consulting third quarter conference call. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press * and the number 1 on your telephone keypad. If you would like to withdraw the question press the pound key. Thank you. You may begin your conference.

Good morning and welcome to the third quarter conference call. Everyone should have a copy of the press release sent out last night. If not, call 312-640-6688 and we will re-send the information. I want to remind everyone this conference call may include forward-looking statements involving uncertainties and risks. There can be no assurance actual results will not be different from our expectations. The company experienced fluctuating revenues in prior periods and expects this may occur from time to time in the future. As a result with possible fluctuation, the company's actual results may differ from our projections. Other factors that could cause differences include pace and timing of acquisitions, the company's ability to realize cost savings and efficiencies, competitive and general economic conditions and other risks described in the company's filings with the Securities and Exchange Commission. Management would like to remind that the company filed registration statement with the SEC to sell common stock and operating under quiet period. Therefore, management may not be able to address all questions. Speaking today I have Jack Dunn, Chairman and Chief Executive Officer of FTI Consulting. I will turn over to Jack Dunn.

Thank you. I am here with Stewart Kahn and Ted Pincus. I would like to welcome everybody to our conference call for the third quarter, which was a very exciting quarter for FTI. Two lessons that I have tried to follow in most things in my career are to one, be careful of what you wish and work for. Two, appreciate it and then make the most of it when you get it. For the last four years we at FTI have been working hard but carefully and discipline to build for shareholders world class financial restructuring and litigation-related consulting firm. It is early and we don't want to be accused of spiking the ball on the five-yard line, I believe third quarter results indicate for the first time what is really possible as we begin to appreciate the platform we are putting together. I believe that these are the first results of the metamorphosis of FTI from smaller practices into a well-integrated organization with complimentary services, critical mass, strong leadership and network of multi-disciplined offices functioning in a coordinated and cohesive effort. We put together a brand name and our people are working as one across the board. I think those are the results we are beginning to see.

Our people are appreciating it. There is a new spirit of what is possible as we leverage our senior relationships to open doors for our disciplines across the board. Our stockholders are appreciating it with increases in sales, profits and most importantly cash flow as results for the quarter produced $16 million in cash flow from operations. Finally and most importantly, it is always the clients and our clients are appreciating it. The skill sets and resources we can bring to bear for them in sensitive, difficult and confidential matters, I believe are unparalleled in the marketplace.

Look at the marketplace, Sarbanes-Oxley awareness for all public companies, new records set for companies restating financial statements, securities litigation at all-time high and high yield in debt markets that each quarter are expected to improve and every quarter surprise us with the names and size of the problems that arise. I think it is time for us to make the most of what we put together, to build and exploit the brand name we are creating with some of the best practices in the nation coming together under one roof. That is what management will concentrate on for the remainder of this year and the future is taking advantage of the resources we put together in a marketplace that continues to expand. Over to Stew and Ted to talk about the third quarter.

Thank you, Jack. We will not read the press releases. We haven't in the past. I thought I would touch on a few things like the integration results with the PWC acquisition. First, basically everybody is already on the same accounting system and billing system. And we are capturing everybody's time on our existing prior systems. It is a great credit to our people who did the work to get everybody all brought into that.

In terms of integration, we acquired a group that had about 400 people, probably, in 15 offices around the country. Some offices have been moved into our offices. Some of the other offices will be consolidated with our offices in major cities. In fact, on a go forward basis, we hope to be able to and we haven't sat down and figured out the dollars yet in response to the questions, but we hope to be able to save operating costs versus the transition cost that we anticipated.

In terms of working with the people, the folks are working together extremely well. We had very good quality people in our organization and we acquired a group of very good quality people. Together, they're working on such complicated things as doing the forensic accounting investigation in connection with frauds and bankruptcy cases, working side by side with our new BRS brethren and our folks from prior Policano & Manzo group.

As to the Applied Sciences division, I would say that hasn't moved along as quickly as we had hoped. We continue to have discussions with management. We still hope that we might be able to consummate a transaction with them. However, if not, our plan B would be to see if we can find and set up a marketing program and find strategic people to buy that business. We still think it is a good business. We just think, given its operating profile and client list, it does tend to come in conflict with some of the debtor side work and bank restructuring work that we get asked to work on.

For those of you who are curious, our litigation consulting business, which in 1996 when FTI first went public, was probably 75 percent of the business in 1996. By now on a run rate basis is well less than 10 percent of the business that we expect to have in the future. Notwithstanding that, it is doing well. It has done better in the third quarter than in the second quarter. Revenues were up a bit. It is also better year-over-year than last year. The income was also better than it was last year. So, we are pleased with the results and performance in that area and that group continuing to work real hard has accomplished a great deal.

I think at this point, we will turn over to Ted. We are trying to be relatively careful. As Jack and Lisa indicated, we are in registration, so we want to be careful about some of the information that we impart here rather than the registration statement in the process. With that, Ted.

OK. Let me give you the metrics we have given you and will not stop giving them to you. The company is now managed as one cohesive business rather than by segment. We have broken down many of the walls between the divisions to accomplish that and share the resources. So, what you will be getting is one overall set of metrics for the company taken as a whole going forward. Our head count excluding Applied Sciences and as Stew pointed out, that business is held for sale. We will be reporting on continuing operation basis, everything I will read to you is based on that. Headcount September 30 was 766 professionals, of which 614 were billable, approximately 80 percent of the staff were billable.

Our average rate and here I will share the month of September, which is really the more representative where we will be going forward. Our average rate for month of September was $327, the rate for the quarter would only have one month of the BRS acquisition in it. It is not as relevant. Utilization for the month of September, which is the representative month, was 88 percent. Again, for the company taken as a whole. As you know, our financial division prior to the acquisition of BRS was running 100 percent or better. BRS's acquisition brought that average down because they have a different business model. But, in turn, the month of September integrated extremely well. Honestly, our utilizations have gone up somewhat from their historical pattern so that we are running 88 percent in the month of September, taken as a whole.

In terms of our margins, again, we're working on what I will call the new paradigms. Remember, our gross margins in the past were targeted at 50 percent and EBITDA margins at 25 percent. As we go forward, they will be somewhat better. All of our businesses were running at or near the 50 percent. So, you can't expect our gross margin per se will be much better than 50, perhaps 51-ish or 52-ish, nothing dramatic. Clearly our SG&A will decline as percent of revenues for two reasons. One, the Applied Sciences business has been pulled out of the numbers. It had a higher percentage of SG&A to revenues than the financial businesses did. So, we would expect that our SG&A will probably be more in the perhaps 22 to 23 percent, bringing our EBITDA margins higher than the traditional 25 perhaps in the high 20s.

On our last conference call we forecast we would have capital expenditures of $8 million in 2002. Some of that incurring in the last quarter of the year as we start to build out offices that we are moving BRS people and ours into. We are at that run rate. We are at that run rate of about $8 million for the year. As Stew pointed out, we are in the middle of consolidating those offices and probably expect to have them consolidated by the spring time, approximately.

I think that - let me cover a few more things. On our cash flows, let me put something in perspective. On the day that we made the BRS acquisition, on that day, we took down $119 million of debt in addition to the $26 million we had at that time. So, we were in debt at that moment in time $145 million. We are in debt today, as I speak, $126 million. So, we have paid down $19 million of that debt from our cash flows from September 1st, until today.

Then, last, but not least, I suspect you may all have detailed questions about this. On our balance sheet, we have a new category on the liability side, for those who read the registration statement. You saw it. It was explained in the footnotes to the financial statements. A category called billings and excess of services provided. These basically represent a combination of retainer/client advances that are truly in advance of the corresponding receivables and work in process that show on the asset side of the business. The BRS group were clearly and will continue to be more aggressive in that regard than FTI was, even. So, the proper way to look at our days sales outstanding is to add accounts receivable and unbilled receivables on the asset side, subtract from them this category of billings in excess of services. If you did that on September 30, you would have net of approximately $38 million. While you would be unable to accurately compute DSOs from the information provided here, it is now in the mid to high 40 days on net basis, compared to the early - or should I say low 70, 72 to 73 days that FTI was running. So, clearly our new partners have excellent positive cash flow, as I said. Somewhat more aggressive than FTI. That would be the proper way to evaluate those DSOs at that point from our perspective.

We will open up for questions.

I would like to remind everyone in order to ask a question, please press * and 1 on your telephone keypad. We will pause for just a moment to compile the Q and A roster. Your first question is from Adam Waldo-ph from Lehman Brothers.

Good morning, Jack, Stew and Ted. Congratulations. Two quick questions you didn't cover. Can you give us a rough sense for revenue and EBITDA contribution in the quarter from the BRS acquisition?

What it was during the quarter was just the month of September. And I can tell you that their business, the BRS business, had a different seasonal pattern than our business did. So, the month of July and August, which are not available at this point in time publicly, the two months immediately prior to our acquisition, have a different seasonal pattern than existing business. I can't give you the exact numbers.

Adam, from a business standpoint, we took this business and our Policano & Manzo and merged them as of September 1st. In fact, we are running them as one group and sharing people and we can't actually track specifically the revenues and the income from just BRS on a go forward basis.

Because you are jointing staffing products literally from day one, Stew?

Right. We had one New York office which had 30 or 50 P&N people and how has 150 people. OK. And there isn't any way - we knew that was going to be a slight handicap in terms of information on a go forward basis, but it sure is a better way to run the business.

Sure. Absolutely, you have their utilization rates up a shade. The other question would just be on the office count, give us a sense for where you quarter in terms of combined network and infrastructure going out a quarter or two. Is that something you can comment on given you are in registration?

Adam, after separating from Applied Sciences , we will have 15 practice offices, plus our headquarters in Annapolis.

For the combined enterprise?

Right.

However, some of those are really small and may wind up on a go-forward basis, just being places for people to hang their hats. We even have probably still have a Camper office with 2 people in it or something like that.

Not bad in winter.

Next question is from David Gold-ph with Sidoti & Co-ph.

Good morning. Can we get an update on integration and just basically how far along the course you think things are with BRS and how much more we have to go? If you look on a percentage basis and timeframe for when you think - I know things were put together with P&M, but do you consider that close to 100 percent or where aside from the office moves and all that stuff?

We are six weeks into it. In terms of operation and office moves, I can - it is public information. We have the BRS D.C. office is already in cohabitation with our D.C. office. The L.A. office is moving I think by the end of the year. Chicago and New York are on the schedule for the end of January. We have build-outs we have to do and things we have to move. Then, there are about seven or eight offices around the country, some of the smaller offices, like Charlotte, Pittsburgh, Cleveland, that are slated to move out of PWC offices. We don't have offices there, so they are not moving into our office, but separate space.

In terms of operating management, though, the New York office now is headed up by both Debbie Smith from the PWC Group and Chris Kerns from the P&M group. They are sharing staff across projects. We have a number of BRS folks working on P&M products. We have a number of P&M folks selling products where we ultimately put BRS folks on them. So, we feel like we are running as one business, there's an executive committee, with three people running it that are from both the practices. I think it does feel to me like it is being run as single business.

In terms of staffing and marketing, joint efforts are under way. In terms of kind of looking at infrastructure with the people in terms of compensation systems, that is very much underway. I think you will see exciting results from that, exciting not only for shareholders, but exciting for the new people that have joined us in terms of their ability to take responsibility and to recognize the proper incentive from that. We are excited. From a practical point of view, it is also integrated already.

On that basis, going forward aside from the build-outs do you expect integration costs?

One other category in addition to build-outs. While they reside in PWC's offices they access us through the web, but not directly from computers in their offices. We have to convert their equipment when they move in from Lotus to Outlook platform. This was all anticipated in the pro formas and S-3 and much of that has not been incurred, obviously because the office moves are first and starting.

Got you. Finally, have you guys been tracking or watching attrition since the integration? Has there been any or much turnover from the PWC Group?

We are delighted to say no. There is company-wide, no unusual attrition. In terms of PWC Partner group, 49 of the former partners from PWC joined us and all 49 are with us and actively working and happily at it . The normal attrition rate for PWC group, nothing unusual about their PWC's attrition in September or October. It's about their normal run rate based upon historical statistics. And there has been, I believe, no attrition in the P&M group, nor of great consequence in the rest of the company.

OK. Fantastic. Congratulations on a great quarter. Thanks.

Next question from Arny-ph (inaudible) with CJS Securities.

On the combined basis, what are your goals for utilization? Will you be able to get it 100 percent level?

I wouldn't think so, Arny-ph. We are not simply changing their business model to ours. We have broader business model and their business model is typically larger staffs on larger debtor type assignments more so than we had. That does not lend itself to making their utilizations the same as ours. We would expect, which is what we are seeing, blend of the two utilization rates, tempered by improvement clearly. The 88 percent that we reported to you earlier for the month of September is a terrific improvement from adding two numbers together and dividing by two.

Also includes the litigation consulting business, where historically the utilization rate is lower.

Regarding headcount, year-end targets for headcount going forward, how many more professionals do you anticipate adding?

I don't think we are ready to talk about the future too much. That would be inappropriate at the moment.

The paradigm has been fourth quarter and first quarter were big hiring times. You have to look at this as hiring of 400 new people with improvements in utilization being the equivalent of new hires. We are excited about that shift at this moment and that is where we ought to concentrate our time at the moment.

Good. One last conceptual question. Seeing you generate so much cash essentially in the quarter, with one month of BRS you could be overcapitalized for the follow-on offer.

Wait, it happened in July and August before we bought them. OK.

We are prepared to be overcapitalized.

Could you tell us about your long-term strategy for the cash?

Sure. We very much were looking forward to being a company that had EBITDA in the 100 million dollar range or more. We believe that, given some of our performance, certainly now the fact we have senior relationships into many of the consulting firms and areas in the U.S., as well as abroad, that - and given what is happening in terms of the consulting areas because of Sarbanes-Oxley and a different view of conflicts, it is tremendous opportunity to carefully and with discipline pick and choose among opportunities to grow and expand our skill sets. That's what we will be very much looking forward to doing over the next couple of years with the cash flow we generate. The reason we did or have registered for the public offering is to have some additional dry powder to be able to take advantage of those opportunities if and when they arise. We firmly believe they will arise.

Very good. Thank you very much. Great quarter and good problems to have.

Your next question is from Nick Trotman from Adams, Harkness & Hill.

Hi, thanks. Looks like the billings in excess of service provided was down sequentially. I'm assuming that is a seasonal pattern and I was hoping you could talk more about the seasonality.

Down from registration, statement?

That would have created lower receivables on the date of acquisition than if the acquisition happened on June 30th, if I understand the question correctly.

)) ANALYST: From the registration statement, the deferred revenue at BRS was about $45 million.

Let me go back to something I said earlier. You have to net the three numbers. For example, the accounting principle that FTI consistently follows of netting retainers against receivables and where they are clearly off-setable against each other continues. Some of the way PWC reported that billings in excess of have been reclassified under our accounting principles. So some has moved to be net against receivables and work in progress. So, this is a fairly detailed accounting, sufficed to say and I kid with this, but it is true. No dollar of revenue is ever recognized before its time. We have much lower DSOs than we have had before and expect to continue that way. Truly only fair way to evaluate is to net all three numbers together.

Could you comment on the seasonality in the business? Is it different than your own or typically see strong first half?

We think it will be perhaps the third quarter even lighter than our third quarter is traditionally. But, we hope to make some changes to the operating model to smooth some of that out. Traditionally for us as a company, our first two quarters are about the same level of activity in third quarter, usually lower and the fourth quarter steps up to new operating level for the following year. Historical results appear to be a deeper trough in the third quarter. We'll know better getting through the budget process.

OK. All right and can you comment on your outlook for next year or is that not...

On our last conference call, we talked about we had expected the net of the acquisition of BRS and the disposition of Applied Sciences to be approximately 30 to - 35 to 40 percent accretive. It is reasonable now to assume that has not stuck between 5 and 10 percentage points. From the pre-acquisition predisposition guidance that we gave, let me give you an example, a theoretical example. Our fourth quarter for the year, the consensus way back in the days before the acquisition was in low 30s, 31 to 33 cents. When we gave that 35 to 40 percent guidance, many raised it to the low 40s, maybe 40 or 45. I think it is fair to say it will now be 5 to 10 percent higher than that in our estimation and probably continue that way through 2003. That is about as much as we feel comfortable in saying. yes, as it relates to original 35 to 40 guidance. One thing I will have to add. That is net of the offering if and when it will be successful.

OK. All right. That's helpful. Great quarter. Thanks.

Your next question is from (inaudible) with Janney Montgomery Scott.

Good morning and congratulations, great quarter. Couple of questions. Seems like integration is going well. I want to come at it from the other side. What are the challenges you are facing as you go about integrating BRS particularly as it relates to lining compensation with your system before?

Well, there are many individual challenges. However, the facts are that basically the marketplace had driven the economics of the businesses pretty close to start with, the billing rates were pretty close prior to the acquisition. The compensation levels for most of the different categories of the different people were pretty close. The - so, while we do have a few challenges in a few places, frankly I don't think it will create dissention. We are not going to create something that gives us disruption in our existing employee base for the other folks. We are doing the best we can to harmonize all policies, even down to medical benefit and travel and entertainment and things like that. As part of the process, picking the best practices that either we maybe found through the acquisition or which we may have had.

What is interesting is that Dom DiNapoli and his crew, we have been having meetings and as long as several years ago they targeted this as the place they wanted to be. They knew us relatively well. When you have company-wide doing 88 percent utilization or in the high 80s, there isn't a lot of administrative time. There aren't a lot of duplications. They don't have their own human resources department. They don't have their own departments. There is not a lot of tension caused by turf wars over this or that and administrative fiefdoms and those things. We get a big advantage there. With people being busy and the business being at wonderful place in profitability, if anything being enhance for us as individuals, that is a good atmosphere to grow a business and perform integration of the two practices. It was that way with Policano & Manzo two years ago. I think that will keep us in good stead because the outlook for that dynamic continues into this quarter and well into the future if you look at anybody's estimate of the restructuring business.

That helps. Jack, could you comment on how the practices of the other big four auditing firms are doing, similar practices in terms of competitive threat to you guys?

I think...

We bought one of them.

Sure. Of the others, I think they are fine folks. Probably, if you look, Ernst and Young probably has the biggest critical mass. We see them in the market place.

After us.

After us, as competitors. We and they would be on short list for the larger matters out there. From the competitive landscape, I think I think say enough how important it is the critical mass we have. We have a lot of dry powder now to increase our penetration in the marketplace without looking at another acquisition in this area. We really have a unique and very excellent market position right now with what we have.

On that note, how do you attack the market going forward given you are much bigger today. How does that change in terms of marketing efforts with assimilation of BRS going forward?

We are really just touching the surface of letting a broader marketplace know who we are. BRS had a wonderful reputation in their area and we did in ours. Putting the two together, we have a huge opportunity in terms of establishing that presence as a brand name, which is something we will do in the next several months. We have combined with quiet periods and all the rest, been slow to do that. That is something the marketing side is very important.

The ability with that presence now to market our collateral services and, one reason why it is so critical we view ourselves as not segments but unified product offering, we have ability now with expertises they have in telecom and utilities and the one we have in securities, to expand using senior relationships across our clients who need the services. Now is the chance to market those all across what used to be 115 cases, now 300 cases.

In terms of your non-restructuring practices, can you give us a feel how they ramped up over the last nine months, particularly in crisis management area, which seems to be doing very well.

No, that's done nicely. We have a number of good assignments in that area. We also, electronic evidence practice has grown very well. Corporate finance practice is still getting its broker/dealer license and all the rest of the things and moving out. So, we expect to see something from them in the near future. Our economic consulting guys are doing fine. Our facility fellows likewise are getting to gain traction. The securities practices are doing well. Our energy folks are beginning to get traction down in Houston, also.

How much is the non-restructuring business now as percentage of revenue with the BRS acquisition in the fold?

You don't have to apologize, Mike. It is information - we are not disclosing and breaking down segments and all these people are interchangeable. We can't - some of the PWC folks were actually people who spent their time doing non-restructuring work like litigation consulting work and expert testimony work. We can't break that information apart accurately. We don't intend to do that on go forward basis.

OK. Makes sense. Congratulations.

Your next question comes from Steve Ditimal from Trilogy Capital.

Hi, can you hear me okay? Let me switch my headset off. OK. Could you just speak about the backlog, unless I missed that already.

The fundamental businesses that we are in are restructuring business and the litigation support business, are long lived cases. I mean, they are assignments that last anywhere from couple of months to a couple of years. On average, most of the typical restructuring assignments are like 18 month assignments. We don't create or price out of backlog per se. We don't disclose backlog. But, we think we've got a lot of people who are very busy.

My question, a way for us to you know, track or sort of project either - whether - I see your problem about it is forward going. If you bill up 300 hours on a case this month, who knows what that will be next year. In the aggregate, you mentioned 300 cases. Is that a real number? Not - is that the number of cases you are working on?

I don't think.

Minimum, just bankruptcy turnaround.

Right. That may be the case at a point in time. You know, I guess the best way to project forward is to figure how many people do we have and what is our average bill rate and utilization and that kind of thing. Those people are going to want to be busy. They are going to find ways to be busy, particularly in this environment because if they haven't found ways, we will help them find ways. You know, we are not discretionary buyer like perhaps a systems integration type purchases. By virtue of that, when people come to us they usually are in pretty bad trouble and need help.

If you had said something like 300 case with average assets under you know, assets in possession of 20 billion or something, I mean, that would be - that could help us track it going forward.

We can give you bigger numbers than that, on Enron. And Worldcom and U.S. Air, I don't know how many assets, but it doesn't tell you a whole lot. I guess K-Mart and it goes on and on. I don't think that really tells you a lot. We are in pretty much all the biggest cases that come down. You know - whoever you read about today that has problems, we're libel to be already involved in that case or in that case by the time those problems mature.

Now, on previous calls I think you mentioned you were on Enron, are you on Enron?

Correct.

That is still not publishing operating financial results. They issued an 8-K for the June period, mostly receivables. Is there a time when investors will see revenues and expenses and EBITDA and things like that?

I couldn't tell you. If I did know, and it was about a client matter, we couldn't tell you the answer to that.

OK. How many partners do you have now?

I guess in the aggregate about 100, equivalent of 100 partner types around the country.

Market cap per partner is $9 million is that how you look at it?

No.

We have tried hard not to be a partnership here. What you will find here is business mix that is much more oriented toward senior people than towards traditional leverage model of a pyramid. It is more like a diamond. We have a lot of people who are experienced. The best reflection much that is bill rate for the average is over $300. We have never looked at it in terms of that.

OK. What is outlook for debt at the end of '03?

End of '03, well, barring any acquisitions subject to everything Jack said and on the assumption this offering would take place, it is entirely possible we would be debt free totally at end of '03.

OK. Great. Terrific. Thank you very much.

You have a follow-up question from Adam Waldo-ph with Lehman Brothers.

Jack, pick-up in private equity activity with de-conglomeration of the big four gathering pace. Can you give us a sense to the extent you are seeing new competitors in the market place that you haven't seen perhaps six months or a year ago? To the extent that is an issue for you at this point, give us a sense for how the win rate is progressing?

I guess we have viewed that as zero-sum gain. To the extent we see new competitors, the number of people and practitioners has stayed relatively the same. We haven't seen increase in that. We have seen some - for example, seen recently one competitor entered in a big way into the restructuring business. That is a competitor we have dealt with and known well for the last 10 years or more. We don't see a lot of new activity. We have seen some increasing activity in our ability to understand that folks may be spinning out and may be considering us as home and we continue to look at those opportunities as we can.

It gets to be - restructuring business is a hard business to do in small boutique shops. The litigation consulting forensic accounting stuff is maybe slightly easier, but in these days of Sarbanes-Oxley, when you are looking for, when audit committees are looking for solid organizations to give them concrete reports and to be able to stand behind those, I think as in many businesses, the phase now is that there is some competitive advantage to being bigger. That is an advantage we have because maybe one of the most interesting things is the interest in people of not being in partnerships given the stuff going on, but to looking for corporate entity as a way to do things. That is a real positive to us in being the one that stayed the course and now for hopefully for good have a little bit of profile in that regard.

So, would it be fair to say on an industry-wide basis, your sense is there is not new capacity being added in terms of service, but some reallocation of existing capacity as between firms and a few new private equity banked entrance?

Yeah, you said it eloquently. That is what we hope to see. We think as the hopefully the economy would change and get better, we would see actually people who would probably exit our business, which would give us a opportunity to increase the market penetration.

Thanks.

At this time, there are no further questions. Gentlemen, do you have further remarks?

Just again, it has been 14 good quarters to be together with everyone. We appreciate your continued interest in our company. We will continue to try to produce the kinds of results that keep us coming together happily every three months or so. Thank everybody for being on the call.

This concludes today's FTI Consulting third quarter conference call. You may now disconnect.