FTI Consulting Inc (FCN) 2023 Q2 法說會逐字稿

Welcome to the FTI Consulting Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Mollie Hawkes, Head of Investor Relations. Please go ahead.

歡迎參加 FTI Consulting 2023 年第二季度收益電話會議。 （操作員說明）請注意，該事件正在被記錄。我現在想將會議交給投資者關係主管莫莉·霍克斯 (Mollie Hawkes)。請繼續。

Good morning. Welcome to the FTI Consulting conference call to discuss the company's second quarter 2023 earnings results as reported this morning. Management will begin with formal remarks, after which they will take your questions.

早上好。歡迎參加 FTI Consulting 電話會議，討論該公司今天上午公佈的 2023 年第二季度盈利結果。管理層將以正式發言開始，然後回答您的問題。

Before we begin, I would like to remind everyone that this conference call may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 of the Securities Exchange Act of 1934 that involve risks and uncertainties.

在開始之前，我想提醒大家，本次電話會議可能包含 1933 年《證券法》第 27A 條和 1934 年《證券交易法》第 21 條含義內的前瞻性陳述，這些陳述涉及風險和不確定性。

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to financial performance, acquisitions, share repurchases, business trends, ESG-related matters and other information or other matters that are not historical, including statements regarding estimates of our future financial results and other matters.

前瞻性陳述包括有關計劃、目的、目的、戰略、未來事件、未來收入、未來業績和業績、與財務業績、收購、股票回購、業務趨勢、ESG相關事項和其他相關的預期、計劃或意圖的陳述。非歷史信息或其他事項，包括有關我們未來財務業績估計和其他事項的聲明。

For a discussion of risks and other factors that may cause actual results or events to differ from those contemplated by forward-looking statements, investors should review the safe harbor statement in the earnings press release issued this morning, a copy of which is available on our website at www.fticonsulting.com, as well as other disclosures under the headings of Risk Factors and Forward-Looking Information in our quarterly report on Form 10-Q for the quarter ended June 30, 2023, our annual report on Form 10-K for the year ended December 31, 2022, and in our filings with the SEC. Investors are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this earnings call and will not be updated.

對於可能導致實際結果或事件與前瞻性陳述預期不同的風險和其他因素的討論，投資者應查看今天上午發布的收益新聞稿中的安全港聲明，其副本可在我們的網站上找到。網站 www.fticonsulting.com，以及我們截至 2023 年 6 月 30 日的季度 10-Q 表格季度報告、10-K 表格年度報告中風險因素和前瞻性信息標題下的其他披露截至 2022 年 12 月 31 日的年度以及我們向 SEC 提交的文件中。請投資者不要過分依賴任何前瞻性聲明，這些聲明僅代表本次財報電話會議之日的情況，並且不會更新。

During the call, we will discuss certain non-GAAP financial measures such as total segment operating income, adjusted EBITDA, total adjusted segment EBITDA, adjusted earnings per diluted share, adjusted net income, adjusted EBITDA margin and free cash flow. For a discussion of these and other non-GAAP financial measures as well as our reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures, investors should review the press release and the accompanying financial tables that we issued this morning, which include the reconciliations.

在電話會議期間，我們將討論某些非公認會計準則財務指標，例如部門總營業收入、調整後 EBITDA、調整後部門 EBITDA 總額、調整後稀釋每股收益、調整後淨利潤、調整後 EBITDA 利潤率和自由現金流。為了討論這些和其他非公認會計原則財務指標以及我們對非公認會計原則財務指標與最直接可比的公認會計原則指標的調節，投資者應查看我們今天上午發布的新聞稿和隨附的財務表格，其中包括和解。

Lastly, there are 2 items that have been posted to the Investor Relations section of our website for your reference. These include a quarterly earnings presentation and an Excel and PDF of our historical financial and operating data, which have been updated to include our second quarter 2023 results.

最後，我們網站的投資者關係部分發布了兩條信息供您參考。其中包括季度收益演示以及我們歷史財務和運營數據的 Excel 和 PDF，這些數據已更新為包括我們 2023 年第二季度的業績。

Of note, during today's prepared remarks, management will not speak directly to the quarterly earnings presentation posted to the Investor Relations section of our website. To ensure our disclosures are consistent, they provide the same details as they have historically and, as I've said, are available on the Investor Relations section of our website.

值得注意的是，在今天準備好的講話中，管理層不會直接談論我們網站投資者關係部分發布的季度收益報告。為了確保我們披露的內容一致，它們提供了與歷史相同的詳細信息，並且正如我所說，可以在我們網站的投資者關係部分找到。

With these formalities out of the way, I'm joined today by Steven Gunby, our President and Chief Executive Officer; and Ajay Sabherwal, our Chief Financial Officer. At this time, I will turn the call over to our President and Chief Executive Officer, Steve Gunby.

完成這些手續後，今天我們的總裁兼首席執行官史蒂文·岡比 (Steven Gunby) 也加入了我的行列。以及我們的首席財務官 Ajay Sabherwal。此時，我將把電話轉給我們的總裁兼首席執行官史蒂夫·岡比。

Thank you, Mollie. Welcome, everyone, and thank you once again for joining us this morning. I'm sure many of us on this call saw the earnings announcement this morning. Ajay will take you through the performance in more detail. Let me try upfront to share a few perspectives on the results.

謝謝你，莫莉。歡迎大家，再次感謝你們今天早上加入我們。我確信今天早上參加這次電話會議的許多人都看到了收益公告。 Ajay將帶您更詳細地了解表演。讓我先嘗試分享一些對結果的看法。

The first is the terrific strength we continue to show in terms of revenue growth, in particular, in terms of organic revenue growth, as well as the terrific strength we are showing in terms of attracting and retaining top professionals. We've talked about these in the past. I'm going to underscore them again both today and the consistency we have shown in delivering on both of them in the last few years, in the face of COVID and booms and busts in the market.

首先是我們在收入增長方面繼續展現出的強大實力，特別是在有機收入增長方面，以及我們在吸引和留住頂尖專業人士方面展現出的強大實力。我們過去已經討論過這些。今天我將再次強調它們，以及我們在過去幾年中面對新冠疫情和市場繁榮與蕭條時在實現這兩個目標方面所表現出的一致性。

The consistency we have shown in terms of both organic revenue growth and in terms of attracting and retaining top talent are the 2 elements that I think ultimately have been the core of our success. So I'll emphasize that. But I'm also going to talk about a second point, which is the fact that we have not met our earnings expectations for the first half of the year. In fact, we missed our expectations sufficiently that we are lowering our full year guidance.

我們在有機收入增長以及吸引和留住頂尖人才方面所表現出的一致性是我認為最終成為我們成功的核心的兩個要素。所以我要強調這一點。但我還要講第二點，就是我們上半年的盈利預期沒有達到。事實上，我們遠遠低於我們的預期，以至於我們正在降低全年指導。

The third point I'd like to share some thoughts on is how do those 2 points come together. Yes, in terms of how they come together for the year, but perhaps more important, what it means for the multiyear trajectory that this company has been on, and as I'll come back to, I believe we continue to be on. So let me talk to those 3 points, and then Ajay will take you through the details of the quarter. And then as usual, we look forward to opening the floor for your questions.

我想分享的第三點是這兩點如何結合在一起。是的，就他們今年如何走到一起而言，但也許更重要的是，這對這家公司多年來一直走的軌跡意味著什麼，正如我將回到的那樣，我相信我們將繼續走下去。那麼讓我談談這 3 點，然後 Ajay 將帶您了解本季度的細節。然後像往常一樣，我們期待著開始提問。

In terms of the first point, I want to underscore that strength of our top line results. Year-over-year, our -- this quarter, our revenues grew 15% organically. And for the year-to-date, it's 13% growth. And that is even before you normalize for FX. And as you might expect, given that level of overall strength, the contributions to our revenue growth were multifaceted. Every segment delivered year-over-year revenue growth in the quarter and in the first half of the year. Ajay will talk to each of the segments, so let me just highlight 2 here.

就第一點而言，我想強調我們頂線業績的實力。與去年同期相比，本季度我們的收入有機增長了 15%。今年迄今為止，增長了 13%。這甚至是在外匯正常化之前。正如您所料，鑑於整體實力水平，對我們收入增長的貢獻是多方面的。每個部門在本季度和上半年都實現了同比收入增長。 Ajay 將對每個部分進行討論，所以我在這裡只強調 2 個部分。

First, as I'm sure many of you have noticed, our Tech business continues to soar. That Tech team has now delivered multiple years of strength. And this year, it's notwithstanding muted M&A activity globally. We are winning major jobs in multiple places around the world with major corporations and with prominent law firms.

首先，我相信你們很多人都已經註意到，我們的科技業務持續飆升。該技術團隊現已展現出多年的實力。今年，儘管全球併購活動低迷。我們正在世界各地的大公司和著名律師事務所贏得重要工作機會。

The second business I'd like to point out is FLC. As many of you know, we have been investing in FLC for a while. And we've seen it underperform our expectations in some quarters and, importantly, in last year as a whole. To me, it is terrific to see FLC beginning to show the tremendous potential it has, particularly this quarter with strong performances actually in the first half of the year from our investigations sub-business and data analytics businesses. So those are 2 -- just 2 examples. Ajay, in a little bit, you will talk to the others. Because across the board, every segment this quarter and this year delivered growth.

我想指出的第二個業務是FLC。正如你們許多人所知，我們投資 FLC 一段時間了。我們發現它在某些季度的表現低於我們的預期，更重要的是，在去年全年。對我來說，很高興看到 FLC 開始展示其巨大潛力，特別是本季度，我們的調查子業務和數據分析業務實際上在上半年表現強勁。這就是 2 個——只是 2 個例子。阿傑，過一會兒你就會和其他人說話了。因為總體而言，本季度和今年的每個細分市場都實現了增長。

So let me turn to what I guess is the key question I would have if I were listening to this. With that level of revenue growth, how can you not also show earnings growth? So let me take a few minutes on that question. And let me do that via giving you an example of one of our best businesses, Corp Fin, and use that as an example, not only of Corp Fin, but to illustrate the more broader disconnect or apparent disconnect.

因此，讓我談談我認為如果我聽到這個問題我會提出的關鍵問題。有了這樣的收入增長水平，你怎麼能不顯示盈利增長呢？讓我花幾分鐘時間來回答這個問題。讓我通過給你們舉一個我們最好的企業之一——金融公司（Corp Fin）的例子來做到這一點，並用它作為一個例子，不僅是公司金融公司的例子，而且是為了說明更廣泛的脫節或明顯的脫節。

I think for most people on this call, you know that Corp Fin is an incredible business of ours. And in the first half of the year, it had a terrific performance, 13% revenue growth. But in the face of the 13% revenue growth, our adjusted EBITDA actually declined 3%. So how does that happen? There are several reasons.

我想對於參加這次電話會議的大多數人來說，您都知道 Corp Fin 是我們一家令人難以置信的企業。而上半年，它的業績非常出色，收入增長了13%。但面對13%的收入增長，我們調整後的EBITDA實際上下降了3%。那麼這是怎麼發生的呢？有幾個原因。

First, our total head count was up 14%, higher than the 13% revenue for the same period. In general, if your revenue is up less than your head count, you, of course, see pressure on margins. But that pressure these days gets accentuated because of inflation. We are no longer in an environment of 2% or less inflation in the U.S. or globally. In the U.S., over 3 years, I suspect there's been about 20% inflation cumulatively. This year, depending on what metric or whose forecast you use, it might be about 5%.

首先，我們的總人數增加了 14%，高於同期 13% 的收入增幅。一般來說，如果您的收入增長低於員工人數，您當然會看到利潤壓力。但如今，由於通貨膨脹，這種壓力變得更大。我們不再處於美國或全球通脹率 2% 或更低的環境中。在美國，三年多來，我懷疑累計通脹率約為20%。今年，根據您使用的指標或預測，該比例可能約為 5%。

So in Corp Fin, our total cost structure, including billable and nonbillable costs, was not up 14% in line of head count, but because of inflation, it was up 17% which, of course, is quite a bit higher than 13%. And as a consequence, our adjusted segment EBITDA didn't grow.

因此，在 Corp Fin 中，我們的總成本結構（包括可計費和不可計費成本）按人數計算並沒有上漲 14%，但由於通貨膨脹，它上漲了 17%，當然，比 13% 高出很多。 。因此，我們調整後的部門 EBITDA 沒有增長。

If you look beyond inflation, what else has surprised us during the year? One is that we've had lower attrition. We expected attrition to be a couple of points higher this quarter. If it had been, our head count, instead of being up 14%, would have been up 12% or 13%, and that would have closed the gap somewhat. So we can point out attrition, and I think many companies are pointing out attrition.

如果除了通貨膨脹之外，這一年還有哪些讓我們感到驚訝的事情？一是我們的人員流失率較低。我們預計本季度的員工流失率會高出幾個百分點。如果是這樣的話，我們的員工數量不會增加 14%，而是會增加 12% 或 13%，這樣差距就會有所縮小。所以我們可以指出員工流失，我認為很多公司都在指出員工流失。

I want to also be clear, we hired people this quarter and this half year because we found terrific talent to join the Corp Fin business. And when we find terrific talent, we hire, at least as long as we believe in the business, and we certainly do here. So we continued to hire. And as you know, when you hire senior people, it typically is not profitable initially.

我還想澄清的是，我們本季度和這半年聘用了人員，因為我們找到了加入公司金融業務的優秀人才。當我們發現出色的人才時，我們就會聘用，至少只要我們相信我們的業務，我們在這裡也是如此。所以我們繼續招聘。如您所知，當您僱用高級人才時，最初通常不會盈利。

The third point is a slightly different one, which is as strong as the revenues were in this quarter and this first half of the year for Corp Fin, we actually expected even stronger revenues. If you think back a year ago or when the budgets were being set in the fall and most of us thinking about what we were thinking about in the economy and bankruptcy forecasts, I think most people expected a faster pace of bankruptcies this year in multiple places around the world.

第三點略有不同，與本季度和上半年 Corp Fin 的收入一樣強勁，我們實際上預計收入會更加強勁。如果你回想一年前，或者當秋季制定預算時，我們大多數人都在思考我們在經濟和破產預測中的想法，我認為大多數人預計今年多個地方的破產速度會加快世界各地。

Some folks, who are outside observers, expected a boom. We didn't expect a boom, but we certainly did expect strengthening in multiple places around the world. Now we are seeing strength in some places around the world. But we're certainly not seeing a boom and we're not seeing strength every place, and we have some weaknesses in different places.

一些外部觀察人士預計會出現繁榮。我們並沒有預料到會出現繁榮，但我們確實預計全球多個地方都會出現增長。現在我們在世界一些地方看到了力量。但我們肯定沒有看到繁榮，也沒有看到每個地方都有優勢，而且我們在不同的地方都存在一些弱點。

And just to put in perspective how sensitive the Corp Fin results are to a few points change in revenue, if, instead of 13% revenue gain, we had had 17% revenue gain, our Corp Fin adjusted segment EBITDA, instead of being down 3%, would have been up 15%. So I shared the Corp Fin example because it's, of course, the largest of our segments, and it's important to understand what happened there. But it also illustrates a general set of principles that happened in various places around the firm.

只是為了了解 Corp Fin 的結果對收入的幾個點變化有多敏感，如果我們的收入增長不是 13%，而是 17%，我們的 Corp Fin 調整後的部門 EBITDA，而不是下降 3 %，本來會上漲15%。所以我分享了 Corp Fin 的例子，因為它當然是我們最大的細分市場，了解那裡發生的事情很重要。但它也說明了公司各個地方發生的一套通用原則。

At the company level, we grew revenues 15% this quarter and 13% year-to-date, but our cost structure actually grew faster. And though the weighting of the various reasons changes when you look at different subsegments and different regions, essentially, that story reflects the 3 themes I just highlighted in the Corp Fin example. The first is lower attrition. The second that even in places where we were slow, when we found terrific talent, we jumped on it. And the third is some places, not every place but some places, we did have a revenue shortfall, not versus last year but versus our expectations.

在公司層面，本季度我們的收入增長了 15%，今年迄今增長了 13%，但我們的成本結構實際上增長更快。儘管當你查看不同的細分市場和不同地區時，各種原因的權重會發生變化，但本質上，這個故事反映了我剛剛在公司金融示例中強調的 3 個主題。首先是人員流失率較低。第二，即使在我們進展緩慢的地方，當我們發現了出色的人才時，我們也會立即加入。第三是有些地方，不是每個地方，而是有些地方，我們確實出現了收入短缺，不是與去年相比，而是與我們的預期相比。

So those 3 reasons are the basis for why. Even though, as Ajay will say, it was a solid quarter, actually a terrific quarter in terms of revenue, the adjusted EBITDA and EPS for the first half of this year were us disappointing.

所以這三個原因是原因的基礎。儘管正如 Ajay 所說，這是一個穩健的季度，實際上就收入而言是一個出色的季度，但今年上半年調整後的 EBITDA 和 EPS 卻令我們失望。

I hope that clarifies. Ajay will go through some more details on some of the other segments. So let me take a moment to turn to maybe what I think is the most important third point, which is where does that leave us? And the guidance gives you some sense of where it leaves us for the year, but where does it leave us more generally with respect to the medium and long term?

我希望這能澄清。 Ajay 將詳細介紹其他一些部分。因此，讓我花點時間談談我認為最重要的第三點，即我們將走向何方？該指引讓您對今年的情況有所了解，但就中長期而言，更普遍的情況是什麼？

Look, am I disappointed to lower guidance for the year? I, of course, absolutely, am. I hate lowering guidance. Having said that, it is hard for me to look at what I just talked about and say any of what we just talked about changes the fundamental positive long-term trajectory that this company has been on and what I believe will stay on.

看，我對降低今年的指導感到失望嗎？我，當然，絕對是。我討厭降低指導。話雖如此，我很難回顧我剛才談到的內容，並說我們剛才談到的任何內容都改變了這家公司一直以來以及我相信將繼續下去的基本積極的長期軌跡。

In the face of this economic environment, we grew revenues -- in the face of this economic environment and the global situations we face, we grew revenues and not a little, we grew revenues 13% year-to-date. And yes, we had lower attrition. And in the face of that, we found great talent that was available in the market, so we invested. And we did invest some places even where the current utilization is less than our ultimate aspirations. And of course, some of those moves hit you in the short term in terms of the economics.

面對這種經濟環境，我們的收入增長了——面對這種經濟環境和我們面臨的全球形勢，我們的收入增長了，而且不是一點點，今年迄今為止，我們的收入增長了 13%。是的，我們的員工流失率較低。面對這種情況，我們發現市場上有優秀的人才，所以我們進行了投資。我們確實投資了一些地方，即使目前的利用率低於我們的最終願望。當然，其中一些舉措會在短期內對經濟產生影響。

But for me, it's hard to see how any of those factors, great people wanting to join you, investing behind great talent, growing top line revenue is anything other than incredibly positive in terms of the potential for this company. We have been able to drive revenue growth not only this year, but over the past -- or the prior 5 years, through so many different circumstances. Through COVID; through boom times in restructuring, but also downtimes in restructuring; through active M&A markets and slow M&A markets in a way that has allowed us to average double-digit organic growth.

但對我來說，很難看出這些因素中的任何一個，優秀的人才想加入你，投資於優秀的人才，不斷增長的收入，對於這家公司的潛力來說，除了令人難以置信的積極因素之外，還有其他任何因素。我們不僅今年能夠推動收入增長，而且在過去或之前的五年裡，經歷了許多不同的情況，我們都能夠推動收入增長。通過新冠疫情；經歷過重組的繁榮時期，也經歷過重組的低谷；通過活躍的併購市場和緩慢的併購市場，我們能夠實現平均兩位數的有機增長。

To me, that has allowed this company to rediscover the most important formula in professional services. If you attract great people who do highly valuable work for clients and who will care about doing highly valuable work for clients, then you support those great people. And if you're willing to invest behind them in significant areas of client need, as a firm, you grow, you prosper, you attract other great people, and you get into the virtuous loop of professional services.

對我來說，這讓這家公司重新發現了專業服務中最重要的公式。如果你吸引了那些為客戶做高價值工作並且關心為客戶做高價值工作的優秀人才，那麼你就會支持這些優秀人才。如果您願意在客戶需求的重要領域進行投資，作為一家公司，您就會成長、繁榮、吸引其他優秀人才，並進入專業服務的良性循環。

So if you ask me, am I disappointed by the earnings this year? Of course, I am. Am I disappointed by the revenue performance? No. Am I disappointed by the way we are serving our clients and getting ever better at serving our clients on their most important needs? No way. Am I thrilled about the way we were able to attract great talent? I absolutely am. These last few points to me are, by far, the best indicators of the bright future that this company has.

那麼如果你問我，我對今年的盈利感到失望嗎？我當然是。我對收入表現感到失望嗎？不。我是否對我們為客戶提供服務以及更好地滿足客戶最重要需求的方式感到失望？決不。我對我們吸引優秀人才的方式感到興奮嗎？我絕對是。到目前為止，對我來說，最後幾點是這家公司擁有光明未來的最佳指標。

With that, let me turn this over to Ajay to take you through the quarter in more details.

接下來，讓我將這個問題交給 Ajay，讓您更詳細地了解本季度。

Thank you, Steve. Good morning, everybody. In my prepared remarks, I will take you through our company-wide and segment results and discuss guidance for the full year.

謝謝你，史蒂夫。大家早上好。在我準備好的發言中，我將向您介紹我們全公司和部門的業績，並討論全年的指導。

Beginning with our second quarter results. In summary, we had a solid quarter with record revenues. At the company level, we delivered 14.5% revenue growth, with all segments growing year-over-year. Our net income increased 21.3% and adjusted EBITDA increased 31.6%. We achieved those financial results while continuing to add talent globally with billable head count growing 11.3% year-over-year.

從我們的第二季度業績開始。總而言之，我們度過了一個穩健的季度，收入創歷史新高。在公司層面，我們實現了 14.5% 的收入增長，所有細分市場均同比增長。我們的淨利潤增長 21.3%，調整後 EBITDA 增長 31.6%。我們在取得這些財務業績的同時，繼續在全球範圍內增加人才，計費人數同比增長 11.3%。

Though solid, our results for the first half were weaker than our internal expectations. As Steve mentioned, midway through the year, we are lowering the top end of our revenue guidance and lowering our EPS guidance range. I will discuss factors shaping this revised guidance towards the end of my prepared remarks.

儘管穩健，但我們上半年的業績仍低於我們的內部預期。正如史蒂夫提到的，在今年年中，我們正在降低收入指導的上限並降低每股收益指導範圍。在我準備好的發言的最後，我將討論影響這一修訂後的指導的因素。

Turning to our second quarter 2023 results in more detail. Revenues of $864.6 million increased $109.6 million compared to $755 million in the prior-year quarter. Earnings per share of $1.75, compared to $1.43 in the prior-year quarter. Net income of $62.4 million, compared to $51.4 million in the prior-year quarter. This increase was due to higher revenues, which was partially offset by an increase in direct compensation costs, higher SG&A expenses, a higher effective tax rate and an unfavorable impact from FX.

更詳細地討論我們 2023 年第二季度的業績。收入為 8.646 億美元，較去年同期的 7.55 億美元增加了 1.096 億美元。每股收益為 1.75 美元，去年同期為 1.43 美元。淨利潤為 6240 萬美元，去年同期為 5140 萬美元。這一增長是由於收入增加所致，但部分被直接補償成本增加、SG&A 費用增加、有效稅率提高以及外彙的不利影響所抵消。

SG&A expenses of $186.4 million were 21.6% of revenues. This compares to SG&A of $167.9 million, or 22.2% of revenues, in the second quarter of 2022. The year-over-year increase in SG&A expenses was primarily due to compensation and outside services expenses. Second quarter 2023 adjusted EBITDA of $100.2 million, or 11.6% of revenues, compared to $76.2 million, or 10.1% of revenues, in the prior-year quarter.

SG&A 費用為 1.864 億美元，佔收入的 21.6%。相比之下，2022 年第二季度的銷售及管理費用為 1.679 億美元，佔收入的 22.2%。銷售及管理費用同比增長主要是由於薪酬和外部服務費用。 2023 年第二季度調整後 EBITDA 為 1.002 億美元，佔收入的 11.6%，而上年同期為 7620 萬美元，佔收入的 10.1%。

Our second quarter effective tax rate of 26.7%, compared to 20.6% in the prior-year quarter. The higher effective tax rate was primarily due to a lower discrete tax adjustment related to share-based compensation from fewer shares vesting and an increase in foreign taxes. We expect our effective tax rate for full year 2023 to be between 25% and 26%, which includes our first half 2023 tax rate of 25.5%.

我們第二季度的有效稅率為 26.7%，而去年同期為 20.6%。有效稅率較高主要是由於與股權激勵相關的離散稅收調整較低，股份歸屬減少以及外國稅收增加。我們預計 2023 年全年的有效稅率將在 25% 至 26% 之間，其中包括 2023 年上半年 25.5% 的稅率。

Weighted average shares outstanding, or WASO, for Q2 of 35.7 million shares, compared to 35.9 million shares in the prior-year quarter. Our convertible notes that mature on August 15, 2023, had a potential dilutive impact on EPS of approximately 1.4 million shares for the quarter, included in WASO, as our average share price of $189.03 this past quarter was above the $101.38 conversion threshold price. As a reminder, on January 1, 2022, we elected to settle the principal amounts of the notes in cash. And during the second quarter of 2023, we disclosed that we have elected to settle the premium in shares.

第二季度的加權平均流通股（WASO）為 3570 萬股，而去年同期為 3590 萬股。我們於 2023 年 8 月 15 日到期的可轉換票據對本季度約 140 萬股每股收益（包括在 WASO 中）產生了潛在的攤薄影響，因為上個季度我們的平均股價為 189.03 美元，高於 101.38 美元的轉換門檻價格。謹此提醒，2022 年 1 月 1 日，我們選擇以現金結算票據本金。在 2023 年第二季度，我們披露，我們選擇以股票方式結算溢價。

Billable head count increased by 634 professionals, or 11.3%, compared to the prior-year quarter. Nonbillable head count increased by 171 professionals, or 11.8%, for the same period. Sequentially, billable head count increased by 45 professionals, nonbillable head count increased by 14 professionals.

與去年同期相比，可計費專業人員數量增加了 634 名專業人員，即 11.3%。同期，非計費人員數量增加了 171 名專業人員，即 11.8%。隨後，可計費人員數量增加了 45 名專業人員，不可計費人員數量增加了 14 名專業人員。

Now I will share some insights at the segment level. In Corporate Finance & Restructuring, revenues of $300.4 million increased 8.4% compared to the prior-year quarter. The increase in revenues was primarily due to higher demand for restructuring and business transformation services, which was partially offset by lower demand for transaction services.

現在我將分享一些細分層面的見解。在企業融資和重組方面，收入為 3.004 億美元，比去年同期增長 8.4%。收入的增長主要是由於對重組和業務轉型服務的需求增加，但部分被交易服務需求的減少所抵消。

Adjusted segment EBITDA of $50 million, or 16.7% of segment revenues, compared to $55 million, or 19.8% of segment revenues, in the prior-year quarter. The decrease in adjusted segment EBITDA was primarily due to higher compensation, which includes the impact of a 15.5% increase in billable head count and higher SG&A expenses.

調整後部門 EBITDA 為 5000 萬美元，佔部門收入的 16.7%，而上年同期為 5500 萬美元，佔部門收入的 19.8%。調整後部門 EBITDA 的下降主要是由於薪酬上漲，其中包括計費人數增加 15.5% 以及 SG&A 費用增加的影響。

Restructuring revenues grew 32% year-over-year as we successfully helped clients in a variety of verticals such as health care, utilities, software and services, media and entertainment and airlines. Business transformation revenues grew 8% year-over-year and transaction revenues decreased 19%. The share of restructuring revenues increased from 40% in Q2 of 2022 to 49% in Q2 of 2023. The share of business transformation and transaction revenues declined from 60% in Q2 of 2022 to 51% in Q2 of 2023.

由於我們成功地幫助醫療保健、公用事業、軟件和服務、媒體和娛樂以及航空公司等各個垂直領域的客戶，重組收入同比增長 32%。業務轉型收入同比增長 8%，交易收入下降 19%。重組收入佔比從2022年第二季度的40%增加到2023年第二季度的49%。業務轉型和交易收入佔比從2022年第二季度的60%下降到2023年第二季度的51%。

On a sequential basis, revenues increased $0.5 million or 0.2%. Growth in restructuring revenues slowed to 4% while transaction revenues increased 9% from the low level we saw in Q1 2023. This growth was offset by a 13% sequential decline in business transformation revenues as there was a slowdown in activity with several significant matters. Adjusted segment EBITDA decreased $5 million as increased compensation, which includes the impact of annual salary increases, and a 2% increase in billable head count more than offset the increase in revenues.

環比增長 50 萬美元，即 0.2%。重組收入增長放緩至 4%，而交易收入較 2023 年第一季度的低水平增長 9%。這一增長被業務轉型收入環比下降 13% 所抵消，原因是幾項重大事項的活動放緩。調整後的部門 EBITDA 減少了 500 萬美元，原因是薪酬增加，其中包括年薪增長的影響，以及計費人數增加 2%，足以抵消收入的增加。

Turning to FLC. Revenues of $182.2 million increased 10.9% compared to the prior-year quarter. The increase in revenues was primarily due to higher demand and realized bill rates for investigations and data and analytics services. Adjusted segment EBITDA of $21.1 million, or 11.6% of segment revenues, compared to $16.7 million, or 10.2% of segment revenues, in the prior-year quarter. The increase in adjusted segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, higher contractor expenses and an increase in SG&A expenses.

轉向 FLC。收入為 1.822 億美元，較去年同期增長 10.9%。收入的增長主要是由於調查、數據和分析服務的需求增加和已實現的賬單費率增加。調整後分部 EBITDA 為 2110 萬美元，佔分部收入的 11.6%，而去年同期為 1670 萬美元，佔分部收入的 10.2%。調整後部門 EBITDA 的增加主要是由於收入增加，但部分被薪酬增加、承包商費用增加和 SG&A 費用增加所抵消。

Sequentially, revenues increased $8.8 million, or 5.1%, primarily due to increased demand for investigations and health solutions services, which was partially offset by lower demand for data and analytics services. Adjusted segment EBITDA increased by $2.5 million.

隨後，收入增加了 880 萬美元，即 5.1%，主要是由於對調查和健康解決方案服務的需求增加，但部分被數據和分析服務需求的減少所抵消。調整後的部門 EBITDA 增加了 250 萬美元。

Our Economic Consulting segment's revenues of $201.8 million increased 23% compared to the prior-year quarter. The increase in revenues was primarily due to higher realized bill rates, primarily from the recognition of revenues previously deferred and higher demand for non-M&A-related antitrust, M&A-related antitrust and international arbitration services.

我們的經濟諮詢部門的收入為 2.018 億美元，比去年同期增長 23%。收入的增長主要是由於已實現票據費率的提高（主要來自先前遞延收入的確認）以及對非併購相關反壟斷、併購相關反壟斷和國際仲裁服務的更高需求。

Adjusted segment EBITDA of $35.5 million, or 17.6% of segment revenues, compared to $21.6 million, or 13.2% of segment revenues, in the prior-year quarter. The increase in adjusted segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, primarily related to higher variable compensation and an 11.1% increase in billable head count as well as higher SG&A expenses.

調整後分部 EBITDA 為 3550 萬美元，佔分部收入的 17.6%，而去年同期為 2160 萬美元，佔分部收入的 13.2%。調整後部門 EBITDA 的增加主要是由於收入增加，但部分被薪酬增加所抵消，主要與可變薪酬增加、計費人數增加 11.1% 以及 SG&A 費用增加有關。

Sequentially, revenues increased $32.2 million, or 19%, and adjusted segment EBITDA increased by $21.3 million. Revenue growth was led by our non-M&A-related antitrust, M&A-related antitrust and international arbitration services.

隨後，收入增加了 3220 萬美元，即 19%，調整後的部門 EBITDA 增加了 2130 萬美元。收入增長主要由我們的非併購相關反壟斷、併購相關反壟斷和國際仲裁服務帶動。

As I mentioned on our Q1 earnings call, last quarter, we experienced more than typical deferral of revenues from conditions for revenue recognition not being met. This quarter, we experienced more than typical reversals of deferred revenue, including 1 large matter in which we recorded $7.6 million in revenues from prior periods, which benefited adjusted segment EBITDA by $5.3 million.

正如我在上季度第一季度財報電話會議上提到的那樣，我們經歷了比典型的因收入確認條件未得到滿足而導致的收入遞延。本季度，我們經歷了多於典型的遞延收入逆轉，其中包括一項重大事項，其中我們記錄了前期收入 760 萬美元，這使調整後的部門 EBITDA 受益 530 萬美元。

In Technology, revenues of $97.4 million increased by 25.3% compared to the prior-year quarter. The increase in revenues was primarily due to higher demand for investigations and litigation services, which was partially offset by lower demand for information governance, privacy and security services. Adjusted segment EBITDA of $20.1 million, or 20.6% of segment revenues, compared to $8.4 million, or 10.8% of segment revenues, in the prior-year quarter.

在技​​術領域，收入為 9740 萬美元，比去年同期增長 25.3%。收入的增長主要是由於對調查和訴訟服務的需求增加，但部分被信息治理、隱私和安全服務需求的減少所抵消。調整後部門 EBITDA 為 2010 萬美元，佔部門收入的 20.6%，而去年同期為 840 萬美元，佔部門收入的 10.8%。

The increase in adjusted segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, which includes the impact of a 16.2% increase in billable head count. Sequentially, revenues increased $6.8 million, or 7.5%, primarily due to increased demand for investigations and litigation services. Adjusted segment EBITDA increased by $4.7 million.

調整後部門 EBITDA 的增長主要是由於收入增加，但部分被薪酬增長所抵消，其中包括可計費員工數量增加 16.2% 的影響。隨後，收入增加了 680 萬美元，即 7.5%，主要是由於調查和訴訟服務的需求增加。調整後的部門 EBITDA 增加了 470 萬美元。

Revenues in Strategic Communications segment of $82.7 million increased 15% compared to the prior-year quarter. The increase in revenues was primarily due to higher demand for corporate reputation and public affairs services. Adjusted segment EBITDA of $12.3 million, or 14.8% of segment revenues, compared to $11.5 million, or 16% of segment revenues, in the prior-year quarter. The increase in adjusted segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, which includes the impact of a 13.1% increase in billable head count and higher SG&A expenses.

戰略傳播部門的收入為 8270 萬美元，比去年同期增長 15%。收入的增長主要是由於對企業聲譽和公共事務服務的需求增加。調整後分部 EBITDA 為 1230 萬美元，佔分部收入的 14.8%，而去年同期為 1150 萬美元，佔分部收入的 16%。調整後部門 EBITDA 的增長主要是由於收入增加，但部分被薪酬增長所抵消，其中包括可計費員工數量增加 13.1% 和 SG&A 費用增加的影響。

Sequentially, revenues increased $9.6 million, or 13.1%, primarily due to higher demand for public affairs and corporate reputation services as we assisted clients across a broad range of industries. Adjusted segment EBITDA increased by $2.7 million.

隨後，收入增加了 960 萬美元，即 13.1%，這主要是由於我們為各行各業的客戶提供協助，對公共事務和企業聲譽服務的需求增加。調整後的部門 EBITDA 增加了 270 萬美元。

Let me now discuss key cash flow and balance sheet items. Net cash used in operating activities of $11 million compared to $35 million of net cash provided by operating activities for the second quarter of 2022. The year-over-year increase in net cash used in operating activities was primarily due to an increase in salaries, largely related to head count growth and higher operating expenses and income tax payments, which was partially offset by an increase in cash collections. Cash collections in the quarter did not keep pace with the growth in revenues, in part due to a transition of billing during the quarter to our new ERP system.

現在讓我討論關鍵的現金流和資產負債表項目。經營活動使用的現金淨額為 1100 萬美元，而 2022 年第二季度經營活動提供的淨現金為 3500 萬美元。經營活動使用的現金淨額同比增加主要是由於工資增加，主要與員工人數增長以及運營費用和所得稅繳納增加有關，但現金收入的增加部分抵消了這一影響。本季度的現金收款未能跟上收入的增長，部分原因是本季度的計費方式轉換為我們的新 ERP 系統。

Free cash flow was an outflow of $22 million in the quarter. Total debt net of cash of $137.2 million on June 30, 2023, compared to $60.5 million on June 30, 2022, and $122.7 million at March 31, 2023.

本季度自由現金流流出 2200 萬美元。截至2023年6月30日，扣除現金的債務總額為1.372億美元，而2022年6月30日的債務總額為6050萬美元，截至2023年3月31日的債務總額為1.227億美元。

Turning to guidance. Even with the recognition of significant prior deferred revenue in our Economic Consulting segment, relative to our expectations, our results this quarter did not adequately offset a weaker-than-expected first quarter. And with 2 quarters behind us, we are now lowering our guidance for the year.

轉向指導。即使我們的經濟諮詢部門之前確認了大量遞延收入，但相對於我們的預期，我們本季度的業績並沒有充分抵消第一季度弱於預期的影響。兩個季度過去了，我們現在降低了今年的指導。

We now expect revenues will range between $3.33 billion and $3.4 billion, taking the top end of our range down from our previous range of between $3.33 billion and $3.47 billion. We now expect EPS to range between $6.50 and $7.20, which is down from our previous range of between $6.80 and $7.70. While we are lowering the top end of our revenue range, our EPS range for the year -- and our EPS range for the year, the midpoint of our updated guidance ranges for revenue and EPS still imply a stronger second half of 2023 compared to the first half of the year.

我們現在預計收入將在 33.3 億美元到 34 億美元之間，將我們範圍的上限從之前的 33.3 億美元到 34.7 億美元之間降低。我們現在預計 EPS 範圍為 6.50 美元至 7.20 美元，低於我們之前的 6.80 美元至 7.70 美元範圍。雖然我們降低了收入範圍的上限、今年的每股收益範圍以及今年的每股收益範圍，但更新後的收入和每股收益指導範圍的中點仍然意味著 2023 年下半年將比去年同期更加強勁。今年上半年。

Our updated guidance is shaped by 5 key factors. First, we are operating against a backdrop of uncertain economic forecasts. Credit is now becoming more available, thereby possibly slowing the pace of restructuring growth, though not yet loose enough for corporations to become less hesitant on M&A. As I said in my earlier remarks, sequential growth in restructuring from Q1 2023 to Q2 2023 was 4%, which is down from 6% growth from Q4 2022 to Q1 2023 and down from 18% growth from 3Q 2022 to 4Q 2022. We are reflecting this slowed restructuring growth trajectory in our guidance.

我們更新的指導意見由 5 個關鍵因素決定。首先，我們是在經濟預測不確定的背景下開展業務的。現在信貸變得越來越容易獲得，從而可能會減緩重組增長的步伐，儘管還沒有寬鬆到足以讓企業在併購方面變得不那麼猶豫。正如我在之前的講話中所說，從 2023 年第一季度到 2023 年第二季度，重組的環比增長率為 4%，低於 2022 年第四季度到 2023 年第一季度的 6% 增長率，也低於 2022 年第三季度到 2022 年第四季度的 18% 增長率。我們的指導反映了這種放緩的重組增長軌跡。

Second, we continue to face cost pressures from both inflation and the impact in the short term of having more head count than we anticipated from lower staff attrition among other things. Total attrition of 6.7% in the first half of 2023 compares with 9.9% in the first half of 2022.

其次，我們繼續面臨通脹帶來的成本壓力，以及員工流失率下降等因素造成的短期員工數量超出我們預期的影響。 2023 年上半年的總流失率為 6.7%，而 2022 年上半年為 9.9%。

Third, we are moderating hiring in practices with low utilization while still remaining steadfast in our commitment to attract talented professionals, even if it negatively impacts our earnings in the short term. In the fall, we are set to welcome 320 graduates from campus, and we are seeing opportunities to hire superb senior talent across the globe.

第三，我們正在減少利用率低的做法的招聘，同時仍然堅定地致力於吸引有才華的專業人士，即使這會在短期內對我們的收入產生負面影響。今年秋天，我們將迎來 320 名校園畢業生，並且我們看到了在全球範圍內聘用優秀高級人才的機會。

Fourth, we expect SG&A in the second half of the year to be lower than in the first half of the year. We had several client and partner meetings in the first half that will not recur in the second. Offsetting that, annual salary increases were effective across the company on the 1st of April.

第四，我們預計下半年的銷售及管理費用將低於上半年。上半年我們舉行了幾次客戶和合作夥伴會議，下半年不會再舉行。抵消這一影響的是，年薪增長於 4 月 1 日在全公司範圍內生效。

And finally, typically, the fourth quarter is a weaker quarter for us because of both an increase in time off during the holidays for our employees and a seasonal business slowdown.

最後，通常情況下，第四季度對我們來說是一個疲軟的季度，因為我們的員工假期期間的休假時間增加，而且季節性業務放緩。

Before I close, I want to emphasize a few key themes that I believe distinguish our company. First, it is a striking testimonial for our practitioners and their relationships and the relevance of their expertise in these times that all our segments reported record revenues this quarter. Second, both in our core and adjacent practices, we are finding opportunities to grow globally.

在結束之前，我想強調一些我認為使我們公司與眾不同的關鍵主題。首先，我們所有部門本季度的收入均創歷史新高，這對我們的從業者及其關係以及他們的專業知識在當今時代的相關性來說是一個引人注目的證明。其次，在我們的核心和相關實踐中，我們都在尋找全球增長的機會。

Third, we view our low attrition and the quality and quantity of professionals coming to us as verification that FTI is a great place to work. Verification that has also been validated by external recognition from Forbes and Consulting Magazine, among others. And finally, our balance sheet remains exceptionally strong, and we have the ability to boost shareholder value through share buybacks, organic growth and acquisitions when we see the right ones.

第三，我們認為，我們的低員工流失率以及來到我們這裡的專業人員的質量和數量證明了 FTI 是一個理想的工作場所。該驗證還得到了《福布斯》和《諮詢雜誌》等外部認可的驗證。最後，我們的資產負債表仍然異常強勁，當我們看到合適的時機時，我們有能力通過股票回購、有機增長和收購來提高股東價值。

With that, let's open up the call for your questions.

接下來，讓我們開始詢問您的問題。

(Operator Instructions) Today's first question comes from Andrew Nicholas with William Blair.

（操作員說明）今天的第一個問題來自安德魯·尼古拉斯和威廉·布萊爾。

I wanted to first ask on the cost side. I think you both mentioned inflation pressuring cost as it's costing more, obviously, to hire people and keep people. I'm wondering if there's any kind of mismatch there as it relates to bill rates also going up. Is that pressuring the first half more so than you would expect it to pressure second half or even looking ahead to '24? Or are you having a harder time than expected passing through that dynamic through on the bill rate side?

我想先問一下成本方面的問題。我想你們都提到了通脹壓力成本，因為顯然，僱傭和留住員工的成本更高。我想知道是否存在任何類型的不匹配，因為它與賬單利率也上漲有關。這對上半場的壓力是否比你預期的對下半場甚至24年的壓力更大？或者您在賬單利率方面的動態變化是否比預期更困難？

Let me take a crack at that. Look, I think, obviously, we're a complicated business with a ton of subparts in different parts around the world. I would have said last year, we had trouble -- we were a little slow to raise bill rates. I don't think that's the main factor of the shortfall this year.

讓我來嘗試一下。我認為，顯然，我們是一家複雜的企業，在世界各地都有大量的子部門。我去年就說過，我們遇到了麻煩——我們提高賬單利率的速度有點慢。我認為這不是今年短缺的主要原因。

There have been a couple of places where we're not getting the realization. I think a lot of it actually has been utilization has been lower. Like for example, our restructuring business hasn't been as strong. It's not that we didn't raise the rates and commensurate with inflation. It's not that they don't know how to get realization there. But if you lower utilization, that shows up on the revenue line.

有幾個地方我們還沒有意識到。我認為其中很多實際上利用率較低。例如，我們的重組業務並不那麼強勁。這並不是說我們沒有提高利率並與通貨膨脹相適應。並不是他們不知道如何在那裡獲得自覺。但如果你降低利用率，就會顯示在收入線上。

It's obviously a mixture of all 3. But last year, I would have said we were slow to raise rates and then there was a little less commitment to realization than there should have been. I'm not sure that's the primary cause of the shortfall in the first half of the year.

顯然這是這三者的混合體。但去年，我會說我們加息緩慢，而且對實現的承諾比應有的要少一些。我不確定這是上半年短缺的主要原因。

Understood. That's helpful. And then I wanted to ask on guidance. It sounds like you're lowering your expectation for the pace of restructuring growth, which makes sense. I'm wondering if there is kind of an offsetting increased assumption on the M&A front, if we do kind of thread the needle in terms of a soft landing here or what level of kind of conservatism is there in terms of larger deal activity?

明白了。這很有幫助。然後我想請教指導。聽起來您正在降低對重組增長速度的預期，這是有道理的。我想知道併購方面是否存在某種抵消性的增加假設，我們是否確實在軟著陸方面有所作為，或者在更大的交易活動方面存在何種程度的保守主義？

It seems like the transaction practice picked up a bit of an easier first quarter comp. Just wondering kind of how you're seeing that or if the back half not only is expecting slower restructuring growth but also still relatively modest acceleration on that front.

第一季度的交易情況似乎有所好轉。只是想知道您如何看待這一點，或者後半部分是否不僅預期重組增長放緩，而且在這方面的加速仍然相對溫和。

Andrew, that's exactly it. At the midpoint, we are expecting exactly what you said. Slower restructuring growth and moderate growth in transactions. And there's a range around that midpoint.

安德魯，就是這樣。到了中間，我們正期待著你所說的那樣。重組增速放緩，交易溫和增長。中點附近有一個範圍。

The next question comes from James Yaro with Goldman Sachs.

下一個問題來自高盛的詹姆斯·亞羅。

So we just received proposed antitrust guidelines in the U.S. as well as some changes to Hart-Scott-Rodino. How do you see these as a catalyst for your business broadly? And maybe if you could just help us understand in which segments you think you might benefit. And then outside of the U.S., just any update on the antitrust dialogue and how that should or should not affect your business?

因此，我們剛剛收到了美國擬議的反壟斷指南以及對哈特-斯科特-羅迪諾的一些修改。您如何看待這些作為您業務的廣泛催化劑？也許您可以幫助我們了解您認為您可能會受益的哪些細分市場。然後在美國之外，反壟斷對話的任何最新情況以及這應該或不應該如何影響您的業務？

Look, let me make a general statement and then I'll see if Ajay wants to go into more details. Look, I think we have -- I think it's fair to say we have, around the world, the leading group of antitrust experts of any firm, and I think by a significant margin, at least most places around the world. So any sort of dynamics in the world of antitrust, whether it's private litigation, public litigation or just investigations by regulatory authorities, stimulates demand because the stakes of these things are incredibly high.

聽著，讓我做一個一般性的陳述，然後我看看 Ajay 是否願意透露更多細節。聽著，我認為我們擁有——我認為可以公平地說，我們在世界各地擁有任何公司中領先的反壟斷專家團隊，而且我認為，至少在世界上大多數地方，我們擁有顯著的優勢。因此，反壟斷領域的任何動態，無論是私人訴訟、公開訴訟還是監管機構的調查，都會刺激需求，因為這些事情的風險非常高。

So I think many people would have thought our Econ business would have been slower this year because of the M&A market is not as robust. I mean our Econ business, it had a slow start to the year and it had some deferrals and all that sort of stuff, but we are -- we have a terrific Econ business. And I think as all these regulatory changes continue, it just tends to -- in general -- the specifics are always different by the individual specific country litigation -- legislation. In general, it just stimulates more and more demand for the best professionals in the world, which is ours.

所以我想很多人會認為我們的經濟業務今年會放緩，因為併購市場不那麼強勁。我的意思是我們的經濟業務，今年開局緩慢，有一些延期和諸如此類的事情，但我們——我們有很棒的經濟業務。我認為，隨著所有這些監管變化的繼續，一般來說，具體情況總是因各個特定國家的訴訟而有所不同——立法。總的來說，它只會刺激對世界上最優秀的專業人士（也就是我們的專業人士）的需求越來越多。

Okay. That's very clear. You touched on Econ consulting a little bit. There's obviously a tremendous sequential growth in the business this quarter, which is great. Is this the right normalized level to build off going forward? Or were there any sort of onetime factors in there related to deferred revenue for the first quarter? I'm just trying to figure out what we should put in our models going forward there.

好的。這非常清楚。您稍微談到了經濟諮詢。顯然，本季度的業務出現了巨大的環比增長，這非常棒。這是未來建立的正確標準化水平嗎？或者其中是否存在任何與第一季度遞延收入相關的一次性因素？我只是想弄清楚我們應該在模型中添加什麼內容。

Well, there clearly were onetime factors. Let me have Ajay talk to you about that, but that's an important point.

嗯，顯然有一些一次性因素。讓我讓 Ajay 和你談談這個，但這是很重要的一點。

James, the better way to do it is add the first 2 quarters and divide by 2. That's -- on the revenue side. That's the launch pad that you should have going into the third quarter.

詹姆斯，更好的方法是將前兩個季度相加，然後除以 2。這就是收入方面。這就是進入第三季度的啟動平台。

Okay. That's extremely clear. And my last one is just around the U.S. presidential election. We're entering into an election year in the U.S. next year. And historically, you have had a step down in revenue in Forensic and Litigation Consulting around those events. Maybe you could just speak to what you think this coming election could mean for the business growth for next year?

好的。這非常清楚。我的最後一篇文章是在美國總統大選前後進行的。明年美國將進入選舉年。從歷史上看，圍繞這些事件，您在法證和訴訟諮詢方面的收入有所下降。也許您可以談談您認為即將到來的選舉對明年的業務增長意味著什麼？

James, look, I have no idea. What I have found -- let me say this. I used to run -- lead a big chunk of BCG. When BCG was not performing, we talked a lot about the external markets. When we started performing, we stopped talking about the external markets. And it doesn't mean markets can't affect us. But -- I don't know that the election results from 2008 actually have relevance today.

詹姆斯，聽著，我不知道。我發現了什麼——讓我說一下。我曾經領導過 BCG 的很大一部分。當BCG表現不佳時，我們談論了很多關於外部市場的事情。當我們開始表演時，我們不再談論外部市場。這並不意味著市場不能影響我們。但是——我不知道 2008 年的選舉結果今天是否真的具有相關性。

When we attract great people and they monitor the markets, we can have slow periods because of dislocating events. And we worried, how's Brexit going to cause a low mark in the Europe and all these sorts of things. I think my experience is, over time, we determine our future over any 12 to 18 months, and that's kind of what we focus on. Otherwise, you spend your entire time trying to look at crystal balls when -- I don't know what your crystal ball is about who's going to get elected or even who's going to get nominated, right?

當我們吸引優秀人才並讓他們監控市場時，我們可能會因為混亂的事件而陷入低迷時期。我們擔心，英國脫歐將如何導致歐洲的低分以及諸如此類的事情。我認為我的經驗是，隨著時間的推移，我們會在 12 到 18 個月內決定我們的未來，這就是我們關注的重點。否則，你會花全部時間試圖觀察水晶球——我不知道你的水晶球是關於誰將當選，甚至誰將獲得提名，對嗎？

It's just two, third order and fourth order. We spend our time saying we feel like we have the right propositions for our clients, how could the world change on election so we're positioning ourselves against the right needs for the clients and making sure people are out in the market. And then we -- if there's short-term dislocations, we live with it. I wish I had a better answer, James, but that's our -- that's my crack at it.

只不過是二階，三階和四階。我們花很多時間說，我們覺得我們為客戶提供了正確的建議，世界會如何因選舉而改變，因此我們根據客戶的正確需求來定位自己，並確保人們進入市場。然後，如果出現短期混亂，我們會忍受。我希望我有一個更好的答案，詹姆斯，但這就是我們的——這就是我的解決辦法。

The next question comes from Tobey Sommer with Truist Securities.

下一個問題來自 Truist Securities 的 Tobey Sommer。

Will there be G&A leverage in '23? And if not, when?

23 年會有 G&A 槓桿嗎？如果沒有，什麼時候？

Answer is we do expect lower G&A in the second half than the first half, which -- and we do expect higher revenue growth at the midpoint. So yes, we do expect G&A leverage in the second half.

答案是，我們確實預計下半年的一般費用將低於上半年，而且我們確實預計中期的收入增長會更高。所以，是的，我們確實預計下半年會出現一般行政費用槓桿。

And would that be true for 2023 versus '22? Just on an annualized basis rather than just looking at the discrete guidance period of half the year?

2023 年與 22 年相比，情況是否如此？只是按年化計算而不是只看半年的離散指導期？

I'm not sure whether for '23 to '22. I'll have to think about that a little bit more. SG&A has been up. And that's where you see some of those inflationary pressures. Those flights cost -- the same flight costs a lot more and the same hotel costs a lot more. And in terms of the pay increases, which are very justified, you can't pass those on to the clients. So you do have those. But I think it's turning.

我不確定 23 到 22 是否如此。我得再考慮一下。 SG&A 已經上漲。這就是你看到一些通脹壓力的地方。這些航班的費用——同樣的航班要貴得多，同樣的酒店也要貴得多。就加薪而言，這是非常合理的，但你不能將其轉嫁給客戶。所以你確實有這些。但我認為情況正在發生轉變。

Let me just add something on that. Look, I think there are SG&A costs like flights and so forth. A lot of our SG&A costs are driven by our billable head count. You add a lot more billable head count. Open a new office, you have new real estate, you have new computers, you have travel and all that sort of stuff.

讓我補充一些內容。聽著，我認為還有 SG&A 成本，例如機票等。我們的許多 SG&A 成本是由我們的計費人員數量決定的。您增加了更多的計費人員數量。開設一個新辦公室，你有新的房地產，你有新的電腦，你有旅行和所有類似的東西。

Whether our SG&A gets leveraged is a lot historically -- there used to be a rule of thumb in professional services. If your revenue goes up faster than your head count, then you've gotten leverage on your SG&A, unless you're managing it stupidly, over an extended period of time and the reverse. The issue today is your revenue has to go up faster than head count plus inflation in order to actually have a big leverage point. And the issue this year is not that our SG&A went out of control. We had some expenditures on things, which we chose to do.

我們的銷售、管理及行政費用（SG&A）是否得到利用是有歷史依據的——專業服務曾經有一條經驗法則。如果你的收入增長速度快於員工人數的增長速度，那麼你就可以利用你的SG&A，除非你在很長一段時間內愚蠢地管理它，反之亦然。今天的問題是，你的收入增長速度必須快於員工人數加上通貨膨脹，才能真正擁有很大的槓桿點。今年的問題並不是我們的銷售、管理及行政費用失控。我們在一些事情上有一些支出，這是我們選擇做的。

It's that we expect -- we had head count growth, and we didn't get as much revenue growth. And once we can get the revenue growth ahead of our billable head count and inflation, we will get a lot of leverage, but we have to get there. And I think we have uncertainty about the second half of the year revenue, which we put a guidance around. Does that help, Tobey?

這正是我們所期望的——我們的員工數量有所增長，但我們的收入增長卻沒有那麼多。一旦我們能夠在可計費人數和通貨膨脹之前實現收入增長，我們將獲得很大的槓桿作用，但我們必須實現這一目標。我認為我們對下半年的收入存在不確定性，我們對此提出了指導。這有幫助嗎，托比？

It prompts a follow-up, Steve. Does that mean revenue needs to grow at rates including inflation above head count growth? So this year, for example, using your own numbers, that would be 5 points. Is that right?

它提示了後續行動，史蒂夫。這是否意味著收入需要以高於員工人數增長（包括通貨膨脹）的速度增長？例如，今年，使用您自己的數字，那就是 5 分。是對的嗎？

I think -- look, I think there are millions of specific things that the accountants will tell you can trump all this on a short-term basis, right? I mean you got exchange rates and you got dadada, dadada, dadada. And so I haven't looked at that, Ajay probably has, in detail. I think over any multiyear period, in order to get a lot of leverage out of SG&A, you want your revenue to grow faster than billable head count plus inflation. And that's a truism that actually has flied through many professional services companies for very long periods of time. Does that help?

我認為——聽著，我認為會計師會告訴你數以百萬計的具體事情可以在短期內勝過這一切，對嗎？我的意思是你有匯率，你有爸爸，爸爸，爸爸。所以我還沒有詳細地看過這個，阿傑可能看過。我認為在任何多年期間，為了從 SG&A 中獲得大量槓桿，您希望您的收入增長速度快於可計費人數加上通貨膨脹的速度。這是一條不言而喻的真理，實際上已經在許多專業服務公司中流傳了很長一段時間。這有幫助嗎？

It does, but maybe you could dig into what are the things internally you are toggling that are your control, that are under your discretion differently in response to the changing conditions? So either slowing office growth. I understand you're going to hire billable head count, particularly senior people who can generate revenue when they're available. But you could hire less junior staff to improve your utilization. So describe some of those toggles if you could.

確實如此，但也許您可以深入研究一下您內部正在切換的哪些東西是您可以控制的，哪些是您根據不斷變化的條件而自行決定的？因此，要么減緩寫字樓增長。據我所知，您將僱用可計費的員工，特別是在有空時可以產生收入的高級人員。但您可以僱用更少的初級員工來提高利用率。如果可以的話，請描述其中一些切換。

Yes. Let me start by describing what we're not doing, right? I mean, look, if we were in duress, really company duress, we could pull the plug on the 300-some-odd new hires that are supposed to show up in -- from September -- in September, right? I mean -- and I guess some people do, where they postpone all the things. We're not doing that. It burns your brand on campus. It hurts junior people. It has a temporary benefit to our P&L, and it's a temporary benefit to your P&L.

是的。讓我首先描述一下我們沒有做什麼，對吧？我的意思是，看，如果我們受到脅迫，真正是公司的脅迫，我們可以終止 300 多名新員工的工作，這些新員工應該在 9 月份出現，對吧？我的意思是——我想有些人會這樣做，他們推遲了所有的事情。我們不會那樣做。它會在校園裡燒毀你的品牌。傷害了年輕的人。它對我們的損益有暫時的好處，對您的損益也有暫時的好處。

So what we're not doing is looking for short-term fixes that really help a couple of quarters and really don't help us. I mean we're hoping that all of you have enough confidence in our -- the discipline of this company that we shouldn't be doing short-term things that are -- that hurt the company in the long term in order to boost a quarter or two. And the opposite, as you say, which you're supportive of is, one of the weird things is that in complicated times often is when the best talent is available. And one of the things we've committed to is to jump on that, even sometimes where places are slow in utilization.

因此，我們沒有做的是尋找短期修復方案，這些修復方案確實對幾個季度有幫助，但實際上對我們沒有幫助。我的意思是，我們希望大家對我們公司的紀律有足夠的信心，我們不應該做短期的事情，這些事情會損害公司的長期利益，以促進公司的發展。一兩刻。相反，正如你所說，你所支持的是，奇怪的事情之一是，在復雜的時期往往是最優秀的人才可用的時候。我們承諾的一件事就是抓住這一點，即使有時地方利用率很慢。

And that doesn't mean we want to have sub-parts of our businesses at 48% utilized going -- forever going forward. But if you find the best talent available and you believe in the business, you jump on it. And so what we're not doing is doing a U-turn on the core strategy of the company. Now do we fine-tune things? Absolutely. Do we look at -- I mean my view is, yes, to your point about real estate, I think the landlords are not reflecting reality in terms of cutting rates at this point. So we're slow to expand real estate at this point in time.

這並不意味著我們希望我們的子業務部門的利用率保持在 48% 的水平——永遠持續下去。但如果你找到了最優秀的人才，並且你對這個行業充滿信心，你就會加入其中。因此，我們不會對公司的核心戰略進行180度大轉變。現在我們要進行微調嗎？絕對地。我們是否看看——我的意思是，我的觀點是，是的，就你關於房地產的觀點而言，我認為房東目前在降息方面沒有反映現實。因此，我們目前擴張房地產的速度很慢。

Are we slowing backfill hires in really slow businesses? Of course, we are, unless we find fabulous talent. So look, we understand we have a responsibility on a multiyear basis to deliver value for our shareholders. And we act accordingly to that. But the core of it is to deliver growth and have enough discipline without choking off what is the wonderful thing that has led to the success of this company. And so that's what we try to balance. Does that help, Tobey?

我們是否正在放緩那些發展緩慢的企業的招聘速度？當然，我們是，除非我們找到了出色的人才。因此，我們知道我們有責任在多年的基礎上為股東創造價值。我們將據此採取行動。但它的核心是實現增長並有足夠的紀律，而不是扼殺導致這家公司成功的美好事物。這就是我們試圖平衡的。這有幫助嗎，托比？

Sure. What was growth in Health Solutions? And what is the outlook?

當然。健康解決方案的增長情況如何？前景如何？

We don't provide specific sub-practice numbers like that, Tobey.

托比，我們不提供像這樣的具體子實踐編號。

Well, I understand, but you said -- when describing the segment, you said it was fueling growth. So I don't expect you to give a specific percentage, but could you speak to the question without numbers?

嗯，我理解，但你說 - 在描述該細分市場時，你說它正在推動增長。所以我不希望你給出具體的百分比，但是你能在沒有數字的情況下談論這個問題嗎？

We -- as we said in our prepared remarks, we had growth in that sub-practice within the FLC segment.

正如我們在準備好的發言中所說，我們在 FLC 領域的子實踐中取得了增長。

Okay. In Tech, you cited a strong performance. Is that market share gains, market growth? And if market share gains, what do you think is fueling it?

好的。在科技領域，您提到了強勁的表現。這是市場份額的增長、市場的增長嗎？如果市場份額增加，您認為是什麼推動了這一增長？

Look, there's no hard data, so I'm giving you my judgment, but my sense is we are gaining share in that business, and we have now been for years. I think you know -- at one point, we weren't soaring. The team changed the strategy, put in place a new strategy, went out and marketed aggressively. It took a while before law firms that hadn't worked with us for a while got -- gave us trial.

看，沒有確鑿的數據，所以我給你我的判斷，但我的感覺是我們正在獲得該業務的份額，而且我們已經這樣做了很多年。我想你知道——在某一時刻，我們並沒有飛升。該團隊改變了策略，制定了新策略，積極開展營銷活動。過了一段時間，那些已經有一段時間沒有與我們合作的律師事務所才開始對我們進行審判。

I think what they would tell you is that when the law firms give us a trial or the corporates give us a trial, they say, wow, this is not a commodity and we get rebuying. And we get rebuying and we increase market share within those individual law firms. And that's happening not just in the U.S. but in different places around the world.

我想他們會告訴你的是，當律師事務所給我們審判或公司給我們審判時，他們會說，哇，這不是商品，我們會重新購買。我們得到了重新購買，並增加了這些個體律師事務所的市場份額。這種情況不僅發生在美國，而且發生在世界各地。

Now do market forces matter? Sure. But this is not a boom M&A market, and we're continuing to win lots of terrific jobs. So I would say it's a lot of market share.

現在市場力量重要嗎？當然。但這並不是一個繁榮的併購市場，而且我們仍在繼續贏得大量出色的工作崗位。所以我想說這是很大的市場份額。

Okay. And last one for me is just kind of a gut check. Is the basic risk here that company performance over the next few quarters that were kind of in the shoulder period between a handoff and a restructuring cycle that kind of didn't -- wasn't really strong in waiting for a positive M&A cycle? I think Chairman Powell said the Fed no longer models a recession.

好的。最後一個對我來說只是一種直覺檢查。這裡的基本風險是，公司在未來幾個季度的業績處於交接和重組週期之間的過渡時期，在等待積極的併購週期方面並沒有真正強勁嗎？我認為鮑威爾主席說過美聯儲不再模擬衰退。

Look, I think that is the worry. I mean, look, if you want -- look, you can always paint incredible worries. You want to do the most significant worry, you say that the economy works out exactly as people hoped. Not only do we avoid a recession, but interest rates drop back to where they were in the past. And then everybody who has this big refinancing bubble in '25, just as they're totally able to refinance and you can -- and then the bankruptcy market goes back to the lows that were in, I guess, '21 and '22.

聽著，我想這就是擔憂。我的意思是，看，如果你願意——看，你總是可以描繪出令人難以置信的擔憂。你想做最重要的擔憂，你說經濟的發展完全符合人們的希望。我們不僅避免了經濟衰退，而且利率也回落到過去的水平。然後，每個在 25 年出現巨大再融資泡沫的人，就像他們完全能夠再融資一樣，你也可以——然後破產市場又回到了我猜想的 21 和 22 年的低點。

You can run those scenarios. Under those scenarios, I think there would be M&A boom, but could there be often timing? Look, we feel like -- we have positions that allow us over any extended period of time to show growth in Corp Fin and more globally over any extended period of time. Your guess is as good as me -- as mine whether you can get caught on the wrong end of that for a couple of quarters. You just -- I don't have that good a crystal ball.

您可以運行這些場景。在這種情況下，我認為將會出現併購熱潮，但這種情況是否經常發生？看，我們覺得——我們的職位使我們能夠在任何較長的時間內展示公司金融業務以及在任何較長的時間內在全球範圍內的增長。你的猜測和我一樣準確——和我一樣，你是否會在幾個季度內陷入錯誤的結局。你只是——我沒有那麼好的水晶球。

Ladies and gentlemen, the call has now concluded.

女士們、先生們，通話現已結束。

Let me say thank you to all of you for the continued attention and support, and we look forward to engaging with you all further down the road. Thank you.

感謝大家一直以來的關注和支持，我們期待著與大家進一步合作。謝謝。

Thank you for your participation. You may now disconnect your lines.

感謝您的參與。您現在可以斷開線路。