FTI Consulting Inc (FCN) 2025 Q1 法說會逐字稿

Good morning, everyone, and welcome to the FTI Consulting First Quarter 2025 Earnings Conference Call. (Operator instruction) Please note that this event is being recorded. At this time, I'd like to turn the conference call over to Mollie Hawkes, Head of Investor Relations. Please go ahead.

大家早安，歡迎參加 FTI Consulting 2025 年第一季財報電話會議。（操作員指令）請注意，此事件正在被記錄。現在，我想將電話會議交給投資人關係主管 Mollie Hawkes。請繼續。

Good morning. Welcome to the FTI Consulting conference call to discuss the company's first quarter 2025 earnings results as reported this morning. Management will begin with formal remarks, after which they will take your questions.

早安.歡迎參加 FTI Consulting 電話會議，討論今天上午報告的公司 2025 年第一季獲利結果。管理層將首先發表正式講話，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 the Private Securities Litigation Reform Act, including the company's outlook and expectations for the full year 2025 based on management's current beliefs and expectations. These forward-looking statements include risks and uncertainties, assumptions and estimates and other factors that could cause actual results to differ materially from such statements.

在我們開始之前，我想提醒大家，本次電話會議可能包含《私人證券訴訟改革法案》所定義的前瞻性陳述，包括公司基於管理層當前的信念和預期對 2025 年全年的展望和預期。這些前瞻性陳述包括風險和不確定性、假設和估計以及可能導致實際結果與此類陳述有重大差異的其他因素。

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 annual report on Form 10-K for the year ended December 31, 2024, or our quarterly reports on Form 10-Q and in our other filings with the SEC.

有關可能導致實際結果或事件與前瞻性陳述中預期不同的風險和其他因素的討論，投資者應查閱今天上午發布的收益新聞稿中的安全港聲明，該聲明的副本可在我們的網站 www.fticonsulting.com 上找到，以及我們截至 2024 年 12 月 31 日的年度報告 10-K-Q表和我們向美國證券交易委員會提交的其他文件中「風險因素」和「前瞻性資訊」標題下的其他揭露內容。

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. FTI Consulting assumes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

敬請投資人不要過度依賴任何前瞻性陳述，這些陳述僅代表本次收益電話會議之日的觀點，不會更新。FTI Consulting 不承擔更新這些前瞻性聲明的義務，無論是否出現新資訊、未來事件或其他原因，除非適用法律要求。

During the call, we will discuss certain non-GAAP financial measures. A discussion of any non-GAAP financial measures addressed on this call and reconciliations to the most directly comparable GAAP measures are included in the press release and the accompanying financial tables that we issued this morning.

在電話會議中，我們將討論某些非公認會計準則財務指標。我們今天早上發布的新聞稿和隨附的財務表中包含了本次電話會議上討論的任何非 GAAP 財務指標以及與最直接可比較的 GAAP 指標的對帳。

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 upgraded to include our first quarter 2025 results.

最後，有兩條內容已發佈到我們網站的投資者關係部分，供您參考。其中包括季度收益報告以及我們的歷史財務和營運數據的 Excel 和 PDF，這些數據已升級為包括我們的 2025 年第一季業績。

With these formalities out of the way, I am 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.

這些手續都辦完了，今天我們總裁兼執行長 Steven Gunby 也和我們一起出席了會議；以及我們的財務長 Ajay Sabherwal。現在，我將把電話轉給我們的總裁兼執行長史蒂夫岡比 (Steve Gunby)。

Thank you, Mollie. Welcome, everyone. Thank you all for joining us today. As I hope you saw this morning, we reported a strong first quarter. The first quarter did benefit, as Ajay will detail some onetime items. But even adjusting for anything one might think of as anomalous; it was a solid quarter. Though as we all know, there are lots of puts and takes in the world right now, lots of uncertainty. The start of this year is overall quite consistent with what our expectations were in February when we gave you guidance for the year.

謝謝你，莫莉。歡迎大家。感謝大家今天的參與。我希望您今天早上看到，我們報告了強勁的第一季業績。第一季確實受益，Ajay 將詳細介紹一些一次性項目。但即使對任何人們可能認為異常的現象進行調整；這是一個穩健的季度。儘管我們都知道，現在世界上存在著許多變數和不確定性。今年的開局總體上與我們二月份給出年度指導時的預期相當一致。

Ajay will, as usual, go through the details of this quarter in his typical structured fashion. Given the complexity of the world today with all the various theories of where the markets and client needs might go, I thought -- we thought it might be worthwhile for me to go a little deeper than I normally go on the individual businesses and share some qualitative observations both on the performances of each of those businesses so far this year, but also on some of the different theories of what their outlooks could be.

與往常一樣，Ajay 將以其典型的結構化方式詳細介紹本季的情況。鑑於當今世界的複雜性以及關於市場和客戶需求走向的各種理論，我認為——我們認為我有必要比平常更深入地了解各個企業，並分享一些定性觀察，不僅針對今年迄今為止每個企業的表現，也針對它們前景的一些不同理論。

So I'll be a little longer than usual. I hope you'll forgive me that. I want to start with FLC this quarter. I hope you saw just how fabulous a quarter FLC had. I think the EBITDA this quarter was roughly comparable to what we probably average for half a year for that business over the last few years.

所以我會比平常多待一會兒。我希望你能原諒我。我想從本季開始使用 FLC。我希望您能夠看到 FLC 本季的表現有多出色。我認為本季的 EBITDA 大致與過去幾年該業務半年的平均值相當。

The driver of those results is that the teams there have been winning and delivering on some incredibly major roles. I would love on this call to talk about a lot of the specifics. Unfortunately, many of those assignments are confidential because of the nature of the work. But the roles the teams are playing are important. They're critical. They're powerful. And for us, they're brand building. At least the one the people who know the work we're doing. As I've talked about a number of times, we've always had terrific people in FLC. The issue we've sometimes face in that business is that an insufficient amount of the world knew how great our people were.

這些成果的驅動力在於那裡的團隊一直在贏得勝利並承擔起一些極其重要的角色。我很樂意在這次電話會議上討論很多具體問題。不幸的是，由於工作性質，許多任務都是保密的。但球隊所扮演的角色很重要。它們很關鍵。他們很強大。對我們來說，它們正在進行品牌建設。至少是那些知道我們正在做的工作的人。正如我多次談到的，FLC 一直擁有非常出色的人才。我們在這個行業中有時會面臨的問題是，世界上還沒有足夠的人知道我們的人民有多偉大。

I actually think the world at large still doesn't know that fully. But over the last while, with a new set of energy across the various leadership levels as well as somewhat higher level of aggressiveness by many of our SMBs. We now have a bit more of the world understanding the quality of our people and the quality of what we can do.

我實際上認為全世界還未完全了解這一點。但最近一段時間，各個領導層都煥發了新的活力，而且我們許多中小企業的進取心也有所提高。現在，世界更了解了我們人民的素質和我們所能做的事情的品質。

And that is true across a range of the business, whether it's the power of the deep technical expertise we have in some sub areas like cyber, anti-money laundering, anti-consumer fraud, export controls and sanctions or others, where the core data analytics and brands accounting capabilities, that often underpin much of the work with the strength of some of the other businesses, disputes businesses, like construction and project and assets business or disputes business more generally. Our experience is that as increasing parts of the world start to really understand the depth of that expertise as well as the commitment level of the people in those loops. We increasingly get those important large jobs. Jobs that are often critical to the future of our clients.

這在我們各個業務領域都是如此，無論是我們在網路、反洗錢、反消費者詐欺、出口管制和製裁等子領域擁有的深厚技術專長，還是其他領域，核心數據分析和品牌會計能力往往與其他一些業務、爭議業務（如建築和項目和資產業務或更普遍的爭議業務）的優勢一起，為大部分工作奠定了基礎。我們的經驗是，世界上越來越多的地區開始真正理解這種專業知識的深度以及這些圈子裡人們的承諾程度。我們越來越多地獲得那些重要的大型工作。這些工作對於我們客戶的未來來說往往至關重要。

There's, of course, some serendipity of that, and there's also some serendipity to when those projects end and therefore, zigs and zags. But my sense is through the zigs and zags over the past few years, we have continued to increase that visibility. And you can see in the quarter this results this quarter, just how powerful that can be. Let me turn from the quarter to a more forward setting [cyber] thoughts. The power of our team, the increased visibility, that doesn't go away. But of course, individual major assignments can. And importance for this business as we talked about last quarter, this is a business that can be affected by policies in Washington. Particularly when you think about our strengths and things like anti-consumer fraud or anti-money laundering or FCPA areas where regulatory posture is potentially changing.

當然，這其中有一些意外的驚喜，當這些項目結束時也有一些意外的驚喜，因此，就會出現曲折的情況。但我的感覺是，透過過去幾年的曲折努力，我們已經不斷提高這種知名度。你可以從本季的業績中看到，它有多強大。讓我從本季轉向更前瞻性的[網路]思考。我們團隊的力量、不斷增強的知名度是不會消失的。但當然，個別主要任務可以。正如我們在上個季度討論的那樣，這項業務的重要性在於，它可能會受到華盛頓政策的影響。特別是當你考慮到我們的優勢以及反消費者詐欺、反洗錢或反海外腐敗法等領域的監管態勢可能會改變時。

So regulatory shifts could have a considerable effect on this business as the year goes on. We are therefore, cautious about not assuming the current strength will get replicated through the end of the year. But important, given that capability, given the strength of our go-to-market strategies, it is not just this quarter that I am excited about. I am fundamentally about where the team is taking a medium-term and long-term trajectory of this business. So I took a little extra time on FLC because I really just think the team deserved it.

因此，隨著時間的推移，監管變化可能會對該業務產生相當大的影響。因此，我們謹慎地認為，目前的強勁勢頭不會在年底前延續。但重要的是，鑑於這種能力，鑑於我們進入市場策略的實力，我不僅僅是對這個季度感到興奮。我從根本上關心的是團隊對這項業務的中期和長期發展軌跡。所以我在 FLC 上花了一點額外的時間，因為我真的認為這個團隊值得這樣做。

I would try to be a little briefer on some of the other segments. But I want to go through both those sorts of general topics with everybody. So let me turn to Corp Fin. Here, our results are roughly in line with where we expected them to be at this point in the year, with of course, lots of puts and takes at the sub business level. The Corp Fin business, as I think you all know, can be sharply affected by macroeconomic factors. For example, whether the restructuring market or the M&A markets are up or down. We, of course, are not totally driven by those end market moves.

我想嘗試更簡要地介紹一下其他一些部分。但我想和大家一起討論這兩個一般性的話題。那麼讓我來談談 Corp Fin。在這裡，我們的結果與我們今年此時的預期大致一致，當然，在子業務層面也有很多投入和產出。我想大家都知道，公司金融業務很容易受到宏觀經濟因素的嚴重影響。例如重組市場、併購市場是漲還是跌。當然，我們並非完全受終端市場走勢的驅動。

We've shown I believe, over the last several years our ability to gain share through the cycles. We're not totally affected, but we're obviously -- we're not totally driven, but we're obviously intact. The restructuring market is booming this business is going to boom. And if the M&A market is booming, our transaction business is going to benefit.

我相信，過去幾年我們已經證明了我們有能力在周期中獲得份額。我們並沒有完全受到影響，但顯然——我們並沒有完全被驅使，但顯然我們安然無恙。重組市場正在蓬勃發展，這項業務將會蓬勃發展。如果併購市場蓬勃發展，我們的交易業務也會受益。

Right now, as I believe you know, either of these markets is going. So in this quarter, we were relying on our competitive strengths to power those businesses. Even though there weren't that many big restructuring jobs out there, we won a number of the few that, and we saw pockets of strength in markets such as Germany, and we were actually surprised that our transaction business was as strong as it was this quarter in markets. I think a lot of that had to do with the commercial aggressiveness of our teams there. Importantly, this quarter, we also made and we are making good progress in addressing a couple of the businesses that were drag on results in 2024.

現在，我相信您知道，這兩個市場都在發展。因此，在本季度，我們依靠我們的競爭優勢來推動這些業務。儘管當時沒有那麼多大型重組工作，但我們還是贏得了一些這樣的工作，而且我們在德國等市場看到了一些強勁的勢頭，實際上，我們對我們的交易業務在本季度的市場表現如此強勁感到驚訝。我認為這很大程度上與我們團隊的商業積極性有關。重要的是，本季我們在解決一些拖累 2024 年業績的業務問題上也取得了良好進展。

In part through targeted headcount actions we took this quarter which Ajay will speak to at least as much to some refocused commercial activity by the terrific talent in those sub businesses. So that's some comments on the quarter. Let me look forward.

部分原因是我們本季採取了有針對性的裁員行動，阿賈伊至少會談到這些子業務中的優秀人才重新聚焦的商業活動。這是對本季的一些評論。讓我期待一下。

Looking forward on this business and the macroeconomic factors, I think as we all hear every day, there's huge amounts of uncertainty on those macroeconomic factors. Lots of discussion of whether M&A is coming back or not. Where there's an increased chance of recession. I don't think anybody knows what is going to happen. Right now, from our perspective, no signs are so definitive that we are changing our expectations for the year.

展望這項業務和宏觀經濟因素，我認為正如我們每天聽到的那樣，這些宏觀經濟因素存在著巨大的不確定性。關於併購是否會回歸的討論很多。經濟衰退的可能性增加。我認為沒有人知道會發生什麼。目前，從我們的角度來看，沒有明確的跡象表明我們將改變對今年的預期。

Stepping away from the short term factors that can be material for the business. These short-term factors, of course, in no way change the tremendous tree that this business has been on or a tremendous conviction of the strength of this business in the medium term.

遠離那些對業務至關重要的短期因素。當然，這些短期因素絕對不會改變該業務的巨大發展前景，也不會改變我們對該業務中期實力的堅定信念。

Let me turn to tech, which is another business that can be particularly affected by macroeconomic factors. In this business as well as our [E-com] business, we had record M&A second request revenues in 2024. That's related to antitrust. So our sense is that this faces some real headwinds at least in that portion of the business. I was talking to -- so the other day, in just the last couple of months, I think the team had something like six potential second requests canceled, either because the deals were pulled, or because the regulatory authorities decided not to challenge.

讓我來談談科技，這是另一個特別容易受到宏觀經濟因素影響的產業。在這個業務以及我們的[電子商務]業務中，我們在 2024 年實現了創紀錄的併購第二次請求收入。這與反壟斷有關。因此，我們的感覺是，至少在業務的這一部分，這面臨著一些真正的阻力。前幾天我正在和團隊交談——就在過去的幾個月裡，我認為團隊有大約六個潛在的第二次請求被取消，要么是因為交易被取消，要么是因為監管機構決定不提出質疑。

So understandably, that team is worried about the potential near-term headwinds. Stepping back from that, however, that tech team has by any measure I can see had the fastest organic growth rate in the industry for a number of years. So if you think about it, if we faced headwinds, those headwinds are likely to be even stronger for some of our competitors, many of whom have serious debt loads.

因此可以理解，團隊擔心近期可能出現的逆風。然而，退一步來看，無論以何種標準衡量，我發現該技術團隊多年來一直保持著業界最快的有機成長率。所以如果你想想，如果我們面臨逆風，這些逆風對我們的一些競爭對手來說可能會更加強勁，其中許多競爭對手都背負著沉重的債務負擔。

In my experience, typically that would mean over the medium term, we will pick up talent we will gain even more share. So given that competitive strength, not just in M&A but also in investigations and litigation businesses, as well as our continued investments in key areas like crypto, digital assets and AI, and we remain very bullish on this business's medium-term trajectory. But to be clear, we also can't gain say the headwinds the team is facing this year in 2025.

根據我的經驗，這通常意味著從中期來看，我們將選拔人才，獲得更多的份額。因此，鑑於這種競爭實力，不僅在併購方面，而且在調查和訴訟業務方面，以及我們在加密、數位資產和人工智慧等關鍵領域的持續投資，我們仍然對該業務的中期發展軌跡非常樂觀。但要明確說明的是，我們也無法預測球隊在 2025 年今年將面臨的阻力。

In Econ Consulting, the set of departures we've seen Compass Lexecon below the senior level has ended up being roughly consistent with what we guessed what happened when we talked with you in February. It is, of course, an important hit. But to put it in perspective, the total departures represent less than 10% of our headcount in Econ and roughly put that business back to the headcount level it was 2 years ago. And the court still leaves us as the leading economic consulting firm globally. And I think the leading economic consulting firm globally [by far].

在 Econ Consulting，我們看到 Compass Lexecon 高層以下人員的離職情況與我們在二月份與您交談時猜測的情況大致一致。這當然是一次重要的打擊。但客觀來看，離職員工總數不到 Econ 公司員工總數的 10%，大致使該業務恢復到 2 年前的員工人數水準。法院仍然認定我們是全球領先的經濟諮詢公司。我認為全球領先的經濟顧問公司[迄今為止]。

And of course, from the overall company perspective, it represents less than 2% of the company's total headcount. As we talked about last time, however, the financial impact on the bottom line is more sizable than simply the headcount impact. The key reason is that when circumstances like this occur, even if you do a terrific job as the teams are doing to keep most of our people, we end up in many instances, adjusting compensation levels, and that's clearly happened here. So that's something I believe we talked about last time. There's been an additional development since last time, which I believe in the long term is a fabulous thing that is adding to the near-term financial pressure, which is that this business has since we last talked, focused an enormous amount of attention on replenishing talent. I think we've spent more tension on that in our competition side than ever in the business' history.

當然，從整個公司的角度來看，這部分員工只占公司總員工人數的不到 2%。然而，正如我們上次討論的那樣，對底線的財務影響比單純的員工人數影響更為嚴重。關鍵原因是，當這種情況發生時，即使你像團隊一樣出色地留住了大多數員工，在很多情況下，我們最終還是會調整薪酬水平，而這顯然已經發生了。我相信這是我們上次討論過的事情。自上次以來，又有了新的進展，我相信從長遠來看這是一件好事，但會增加短期的財務壓力，那就是自從我們上次談話以來，這項業務已經將大量的注意力集中在補充人才上。我認為我們在競爭方面所付出的努力比行業歷史上任何時候都要多。

And important, we've had enormous success in that endeavor. We have already been able to track an unbelievable set of academic affiliates and new arrivals, many more and unbelievable talent more than we expected a couple of months ago, and these are folks that bringing expertise across anti-trust, we have some additions to our financial business and across key industries, which just health care, finance, TMT, digital assets, AI. If you look at their website, and I encourage you to do so and see the resumes, you'll see these are people with tremendous academic credentials. But in addition, in many cases, they have served previously in senior roles in government, including the FTC, the FCC and the SEC.

重要的是，我們在這項努力中取得了巨大的成功。我們已經能夠追蹤一群令人難以置信的學術附屬機構和新來者，他們的數量比我們幾個月前預期的要多得多，而且人才數量也多得令人難以置信，這些人帶來了反壟斷領域的專業知識，我們的金融業務和關鍵行業也得到了補充，包括醫療保健、金融、TMT、數位資產和人工智慧。如果你看看他們的網站，我鼓勵你這樣做並查看簡歷，你會發現這些人擁有豐富的學術資歷。此外，在許多情況下，他們之前曾在政府擔任高級職務，包括聯邦貿易委員會、聯邦通信委員會和證券交易委員會。

And I was speculating with one person. I think in line of this group, there might even be a couple of people who did the potential each of these [Novo] prices. So I hope you got from my tone of voice that I got excited about those additions. I step back from these additions, what they do is they enhance what has always been the case, my powerful confidence, my strong confidence in the medium-term prospects of this business. This is a great essence with terrific [inaudible].

我和一個人一起猜測。我認為在這個群體中，甚至可能有幾個人對這些 [Novo] 的每一個價格都進行了潛在的評估。所以我希望你能從我的語氣中聽出我對這些補充感到興奮。我不再談論這些附加內容，它們的作用是增強我一直以來的強大信心，對這個業務的中期前景的強大信心。這是一款非常棒的精華[聽不清楚]。

And so we have enormous confidence in where this business will be in the medium term. What we need to say our guess is the near-term P&L that will be at least as hard to speculate about in February, not a bit more.

因此，我們對這項業務的中期發展充滿信心。我們需要說的是，我們的猜測是，短期損益至少在二月同樣難以推測，而不是更難。

Finally, our Stratcom business. Look, I think, as you know, our Stratcom business has had some struggles for the last couple of years. Not fundamental struggles, not struggles in competitive position or bottom line results, the struggles getting back to the sort of growth that have been proud to show for a number of years. I think that this quarter suggests we've been beginning to get back on track. We still have a ways to go to bring that growth back up to our aspirations, but we're seeing good progress as people are focused on supporting our clients and this system, the legal, political and regulatory uncertainty.

最後，我們的 Stratcom 業務。聽著，我認為，如你所知，我們的 Stratcom 業務在過去幾年裡遇到了一些困難。這並不是根本性的鬥爭，也不是競爭地位或底線結果的鬥爭，而是要努力恢復多年來引以為傲的成長勢頭。我認為本季表明我們已經開始回到正軌。我們還有很長的路要走才能使成長恢復到我們的期望，但我們看到良好的進展，因為人們專注於支持我們的客戶和這個系統，以及法律、政治和監管的不確定性。

That strengthening Stratcom was expected, we have confidence in the team. Overall, our performance this quarter was in line with what we're hoping to see from Stratcom at this point of the year, and it simply reinforces our strong confidence that the business is medium prospects are strong.

加強 Stratcom 是意料之中的事，我們對這個團隊充滿信心。總體而言，本季的業績與我們對 Stratcom 今年此時的期望一致，這增強了我們對業務中等前景強勁的信心。

I hope -- look, I want a lot more detail through individual segments that I often do, I think given the uncertainty in the world, Ajay and I thought it would make sense. But of course, then there's a question of when you step back from the individual segments, where does it all add up to? I think the answer with respect to this year is probably an answer now coming into this call because it's the answer that almost every company you're saying today, what it means with respect to this year is uncertainty. And if you look at our guidance range, you realize that within our guidance range is a scenario where even in the face of the Compass Lexecon disruption, we end up with a solid year. But it also encompasses a very real scenario for the very first time in my tenure were down in adjusted EPS.

我希望——看，我希望透過我經常做的各個片段獲得更多細節，我認為考慮到世界上的不確定性，阿杰和我認為這是有意義的。但當然，接下來的問題是，當你退出各個部分時，所有這些加起來會是什麼？我認為關於今年的答案可能是現在這個電話會議的答案，因為今天幾乎每家公司都給出了同樣的答案，就今年而言，這意味著不確定性。如果你看一下我們的指導範圍，你就會意識到，在我們的指導範圍內，即使面臨 Compass Lexecon 中斷，我們最終也能實現穩健的一年。但它也包含一個非常現實的情況，即在我任職期間，調整後的每股盈餘首次出現下降。

So there's lots of uncertainty throughout the year. Important with that uncertainty does not do is shake my conviction about the powerful future this company has. Sure, we have challenges, and we are headwinds in the market. Over the last 10 years, we have faced lots of challenges. There have been tremendous variability in market conditions, periods of buzz and various markets.

因此全年都存在著許多不確定性。重要的是，這種不確定性不會動搖我對這家公司強大未來的信心。當然，我們面臨挑戰，市場上也存在逆風。過去10年，我們面臨許多挑戰。市場狀況、繁榮時期和各個市場都存在著巨大的變化。

If you remember right, there was a period where our testifiers couldn't testify because the courts were closed and there's times when competitors have been crazily aggressive.

如果您沒記錯的話，有一段時間我們的證人無法作證，因為法院關閉了，有時競爭對手會變得非常激進。

As a consequence, we've had tremendous zigs and zags in individual businesses and in geographies and even substantial zigs and zags for the company as a whole in multiple quarters. But we have also talked about the fact that it proves the reason that we remain committed to doing the right things for this business. Monitoring the market forces and adjusting where we have to, but underlying that, focusing on what matters in professional services, taking dedicated people, great people, supporting those people who have a drive to make a difference for their clients and make a drive -- make a difference for the people who are underlying who work for them and mentor those people.

結果，我們在各個業務和地區都經歷了巨大的曲折，甚至整個公司在多個季度也經歷了巨大的曲折。但我們也談到了這樣一個事實，它證明了我們仍然致力於為這項業務做正確的事情的原因。監控市場力量並進行必要的調整，但在此基礎上，專注於專業服務中的重要事項，招募敬業的人才，優秀的人才，支持那些有動力為客戶帶來改變的人，並為那些為他們工作的人帶來改變並指導這些人。

If you do that, you still have zigs and zags and portions of the business and perhaps overall, but through those zigs and zags, you attract and retain and develop many more great people than you ever lose. You build capability, you increase your relevance for the clients on their most important issues and as a consequence, those zigs and zags surround a powerfully upward sloping line for our clients, for our shareholders and for our people. We have talked about that as a philosophy. We've talked about that as a theory.

如果你這樣做，你的業務部分甚至整體上仍然會經歷曲折，但透過這些曲折，你會吸引、留住和培養比你失去的多得多的優秀人才。你建立了能力，你提高了在客戶最重要問題上的相關性，結果，這些曲折為我們的客戶、我們的股東和我們的員工形成了一條強勁向上的傾斜線。我們已經將其作為一種哲學來討論。我們已經將其作為一種理論進行了討論。

I believe the date of the 10 years have turned that theory into a proven proposition. We will maintain that commitment. Include that commitment, I believe this company will continue to deliver our future that is extraordinarily bright.

我相信這十年的時間已經將這個理論變成了一個被證明的命題。我們將堅守這項承諾。加上這項承諾，我相信這家公司將繼續為我們帶來無比光明的未來。

With that, let me turn the call over to Ajay to conclude the details of the quarter.

說完這些，讓我把電話轉給阿賈伊來總結本季的細節。

Thank you, Steve. Good morning, everybody. In my prepared remarks, I will take you through our company-wide and segment results for the quarter. First quarter of 2025 revenues of $898.3 million decreased $30.3 million or 3.3% compared to the first quarter of last year. Sequentially, compared to Q4 of last year, our revenues were up slightly.

謝謝你，史蒂夫。大家早安。在我的準備好的發言中，我將向大家介紹本季我們公司整體和各部門的業績。2025 年第一季的營收為 8.983 億美元，與去年第一季相比減少了 3,030 萬美元，即 3.3%。與去年第四季相比，我們的收入略有成長。

GAAP earnings per share of $1.74 compared to $2.23 in the prior year quarter. Adjusted EPS of $2.29 compared to $2.23 in the prior year quarter. The difference between our GAAP and adjusted EPS for the quarter reflects a $25.3 million first quarter special charge related to severance and other employee-related costs which reduced GAAP EPS by $0.55.

以美國通用會計準則計算的每股收益為 1.74 美元，去年同期為 2.23 美元。調整後每股收益為 2.29 美元，而去年同期為 2.23 美元。本季我們的 GAAP 和調整後 EPS 之間的差異反映了第一季與遣散費和其他員工相關成本相關的 2,530 萬美元特殊費用，這使得 GAAP EPS 減少了 0.55 美元。

Net income of $61.8 million compared to $80 million in the prior year quarter. The decrease in net income was largely driven by lower revenues and the special charge, which was partially offset by a decrease in SG&A and direct cost. Direct costs of $608.9 million compared to $626 million in the prior year quarter. The decrease in direct costs was primarily due to lower variable compensation and contractor costs, which was partially offset by higher benefits and salaries. SG&A of $184.3 million or 20.5% of revenues compared to SG&A of $201.9 million or 21.7% of revenues in the first quarter of 2024.

淨收入為 6,180 萬美元，而去年同期為 8,000 萬美元。淨收入的下降主要是由於收入下降和特殊費用，但銷售、一般及行政費用和直接成本的下降部分抵消了這一下降。直接成本為 6.089 億美元，而去年同期為 6.26 億美元。直接成本的減少主要是由於浮動薪資和承包商成本的降低，但福利和工資的增加部分抵消了這一減少。銷售、一般及行政費用為 1.843 億美元，佔營收的 20.5%，而 2024 年第一季的銷售、一般及行政費用為 2.019 億美元，佔營收的 21.7%。

The decrease in SG&A was primarily due to a benefit from litigation settlements in Q1 and lower bad debt. First quarter 2025 adjusted EBITDA of $115.2 million or 12.8% of revenues compared to $111.1 million or 12% of revenues in the prior year quarter.

銷售、一般及行政費用的下降主要由於第一季訴訟和解帶來的收益以及壞帳減少。2025 年第一季調整後 EBITDA 為 1.152 億美元，佔營收的 12.8%，而去年同期為 1.111 億美元，佔營收的 12%。

Our first quarter 2025 effective tax rate of 23.3% compared to 19.6% in the prior year quarter. The prior year quarter tax rate was exceptionally low because of large option exercises in Q1 of last year and the resulting discrete tax adjustment. For full year 2025, we continue to expect our effective tax rate to be between 23% and 25%. Weighted average shares outstanding or so for Q1 of 35.5 million shares compared to 35.8 million shares in the prior year quarter. Billable head count increased by 0.5% compared to the prior year quarter, with the largest increases in Corporate Finance & Restructuring, Forensic and Litigation Consulting and Technology which was partially offset by headcount declines in Economic Consulting and Strategic Communications.

我們 2025 年第一季的有效稅率為 23.3%，而去年同期為 19.6%。由於去年第一季大量選擇權行使以及隨之而來的單獨稅收調整，去年同期的稅率異常低。對於 2025 年全年，我們繼續預期有效稅率將在 23% 至 25% 之間。第一季加權平均流通股數約為 3,550 萬股，去年同期為 3,580 萬股。與去年同期相比，可計費員工數量增加了 0.5%，其中企業融資與重組、法務與訴訟諮詢和技術部門的增幅最大，但經濟諮詢和戰略傳播部門的員工數量下降部分抵消了這一增幅。

Non-billable headcount increased by 1.2% year-over-year. Sequentially, billable headcount decreased by 3.6% and non-billable headcount decreased by 1.8%. The sequential decreases in headcount were primarily due to headcount actions taken across our business to better align with demand and the departures Steve mentioned in our Economic Consulting segment.

非計費員工數量較去年同期成長1.2%。與上一季相比，計費員工數量減少了 3.6%，非計費員工數量減少了 1.8%。員工人數連續下降主要是由於我們整個業務部門採取了人員調配措施，以更好地滿足需求，以及史蒂夫在我們的經濟諮詢部門提到的人員離職。

Now turning to our performance at the segment level. In Corporate Finance & Restructuring, revenues of $343.6 million decreased 6.1% compared to our record first quarter 24 revenues. The decrease in revenues was primarily due to lower demand and realized bill rates for transformation and strategy and restructuring services, which was partially offset by higher realized bill rates for transaction services and an increase in success fees. In the quarter, restructuring represented 46% of segment revenues. Transformation and strategy represented 29% of segment revenues and transactions represented 25% of segment revenues.

現在來談談我們在細分層面的表現。在企業融資和重組方面，營收為 3.436 億美元，與第一季創紀錄的 24 億美元收入相比下降了 6.1%。收入下降主要是由於轉型和策略及重組服務的需求和實現的帳單利率下降，但交易服務實現的帳單利率上升和成功費增加部分抵消了這一下降。本季度，重組佔部門收入的 46%。轉型和策略佔分部收入的29%，交易占分部收入的25%。

This compares to a split of 47% for restructuring, 31% for transformation and strategy and 22% for transactions in the prior year quarter. Adjusted segment EBITDA of $55.9 million or 16.3% of segment revenues compared to $75.2 million or 20.6% of segment revenues in the prior year quarter. The decrease in adjusted segment EBITDA was primarily due to lower revenues, which was partially offset by lower compensation. Sequentially, Corporate Finance & Restructuring revenues increased 2.4% as 19.5% growth in transactions. More than offset a 3.9% decline in transformation and strategy and a 1.5% decline in restructuring.

相較之下，去年同期重組佔比為 47%，轉型和策略佔比為 31%，交易比例為 22%。調整後分部 EBITDA 為 5,590 萬美元，佔分部營收的 16.3%，而去年同期為 7,520 萬美元，佔分部營收的 20.6%。調整後部門 EBITDA 的下降主要是由於收入下降，但薪資下降部分抵消了這一下降。連續，企業融資和重組收入成長 2.4%，交易量成長 19.5%。足以抵消轉型和策略方面 3.9% 的下降以及重組方面 1.5% 的下降。

Adjusted segment EBITDA increased $11.2 million sequentially, primarily due to higher revenues and lower compensation. Turning to Forensic and Litigation Consulting or FLC. Record revenues of $190.6 million increased 8.3%. Acquisition-related revenues contributed $1.3 million in the quarter. Excluding acquisition-related revenues, the increase in revenues was primarily due to higher realized bill rates for risk and investigation services and higher realized bill rates and demand for data and analytics services. We are supporting incident response, readiness and regulatory compliance in cybersecurity, investigations in consumer finance and anti-money laundering in financial services. And we design and implement compensed programs related to export controls and sanctions.

調整後部門 EBITDA 環比增加 1,120 萬美元，主要由於收入增加和薪資減少。轉向法務和訴訟諮詢或 FLC。創紀錄的收入達到 1.906 億美元，成長了 8.3%。本季收購相關收入貢獻了 130 萬美元。除收購相關收入外，收入的成長主要歸因於風險和調查服務的實際帳單利率上升以及數據和分析服務的實際帳單利率和需求上升。我們支持網路安全領域的事件回應、準備和法規遵循、消費金融領域的調查以及金融服務領域的反洗錢。我們設計並實施與出口管制和製裁相關的補償計劃。

Adjusted segment EBITDA of $37.5 million or 19.7% of segment revenues compared to $33.7 million or 19.1% of 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 and SG&A expenses. Sequentially, FLC revenues increased 8.4%, primarily due to higher risk in investigations and construction solutions revenues. Adjusted segment EBITDA increased by $19.5 million sequentially, primarily due to higher revenues and lower SG&A expenses.

調整後分部 EBITDA 為 3,750 萬美元，佔分部營收的 19.7%，而去年同期為 3,370 萬美元，佔營收的 19.1%。調整後分部 EBITDA 的成長主要歸因於收入增加，但薪資和銷售、一般及行政費用的增加部分抵消了這一增長。與上一季相比，FLC 收入成長了 8.4%，這主要歸因於調查和建築解決方案收入的風險增加。調整後部門 EBITDA 環比增加 1,950 萬美元，主要由於收入增加和銷售、一般及行政費用降低。

In Economic Consulting, revenues of $179.9 million decreased 12.1%. The decrease in revenues was primarily due to lower demand for M&A-related anti-trust, financial economics and non-M&A related antitrust services, which was partially offset by higher realized bill rates. The departures and the competetion practice in Compass Lexecon and the resulting uncertainty for that practice impacted revenue adversely as did the reduction in the number of large mergers and acquisitions. Adjusted segment EBITDA of $14.4 million or 8% of segment revenues compared to $14.2 million or 6.9% of segment revenues in the prior year quarter. The increase in adjusted segment EBITDA was primarily due to lower compensation, which includes the impact from a 6.6% decline in billable head count and lower bad debt expense, which more than offset the decline in revenues.

經濟諮詢業務收入為 1.799 億美元，下降了 12.1%。收入下降主要是由於對併購相關的反壟斷、金融經濟和非併購相關的反壟斷服務的需求下降，但部分被更高的實際票據利率所抵消。Compass Lexecon 的人員離職和競爭行為以及由此產生的不確定性對收入產生了不利影響，大型併購數量的減少也對收入產生了不利影響。調整後分部 EBITDA 為 1,440 萬美元，佔分部營收的 8%，而去年同期為 1,420 萬美元，佔分部營收的 6.9%。調整後部門 EBITDA 的成長主要由於薪資降低，其中包括可計費員工人數下降 6.6% 和壞帳費用降低的影響，這些影響超過了收入的下降。

Sequentially, Economic Consulting revenues decreased 12.7%, primarily due to lower demand for M&A-related antitrust services and lower realized bill rates for non-M&A related antitrust services. EBITDA decreased $1.4 million sequentially primarily due to lower revenues which was partially offset by a decline in compensation, which includes an 8.2% decline in billable head count and lower bad debt. Technologies revenues of $97.2 million decreased 3.5%. The decrease in revenues was primarily due to lower demand for M&A-related second request services, which was partially offset by higher demand for investigation services. djusted segment EBITDA of $11.6 million or 11.9% of segment revenues compared to $14.6 million or 14.5% of segment revenues in the prior year quarter.

經濟諮詢收入季減 12.7%，主要原因是併購相關反托拉斯服務的需求下降，以及非併購相關反托拉斯服務的實際票據利率下降。EBITDA 環比減少 140 萬美元，主要原因是收入減少，但薪資下降（包括可計費員工人數下降 8.2% 和壞帳減少）部分抵消了這一影響。技術收入為 9,720 萬美元，下降 3.5%。收入下降主要是由於對併購相關的第二次請求服務的需求下降，但對調查服務的需求增加部分抵消了這一下降。調整後分部 EBITDA 為 1,160 萬美元，佔分部營收的 11.9%，而去年同期為 1,460 萬美元，佔分部營收的 14.5%。

The decrease in adjusted segment EBITDA was primarily due to lower revenues, which was partially offset by lower bad debt. Sequentially, Technology revenues increased 7.2%, primarily due to higher M&A-related second request services. Adjusted segment EBITDA increased $5 million sequentially, primarily due to higher revenues. Worth noting, our technology team had several M&A related second request matters that largely began and subsequently concluded in Q1, and we do not expect the sequential increase in M&A-related activity in Q1 to continue in Q2, given the broader market slowdown Steve spoke to. Worth noting, the Federal premerger notification program administered under the Hart-Scott-Rodino Act, recorded just 89 transactions in March 2025, marking the lowest monthly filing total in nearly 5 years. To put this in perspective, this compares to a monthly average of 188 transactions in the prior 12-month period.

調整後分部 EBITDA 的下降主要是由於收入下降，但壞帳減少部分抵消了這一下降。與上一季相比，技術收入成長了 7.2%，這主要得益於與併購相關的二次請求服務的增加。調整後部門 EBITDA 環比增加 500 萬美元，主要由於收入增加。值得注意的是，我們的技術團隊有幾個與併購相關的第二次請求事宜，這些事宜大部分在第一季度開始並隨後結束，鑑於史蒂夫所說的更廣泛的市場放緩，我們預計第一季度與併購相關的活動的連續增長不會在第二季度繼續。值得注意的是，根據《哈特-斯科特-羅迪諾法案》管理的聯邦併購前通知計劃在 2025 年 3 月僅記錄了 89 筆交易，創下近 5 年來的最低月度申請總數。為了更清楚地說明這一點，我們可以將其與前 12 個月每月平均 188 筆交易進行比較。

Strategic Communications record revenues of $87 million increased 7.2%. The increase in revenues was primarily due to a $3.5 million increase in pass-through revenues and higher demand for corporate reputation services as we support clients with important cybersecurity, regulatory advocacy and crisis communications needs. Adjusted segment EBITDA of $12.9 million or 14.8% of segment revenues compared to $12.4 million or 15.3% 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 higher pass-through expenses and an increase in compensation. Sequentially, Strategic Communications revenues were up 0.5%, primarily driven by an increase in pass-through revenues. Adjusted segment EBITDA decreased $0.9 million primarily due to higher pass-through expenses, which were partially offset by lower direct compensation and SG&A expenses.

戰略傳播部門創紀錄地實現了 8,700 萬美元的收入，成長了 7.2%。收入的成長主要是由於轉嫁收入增加了 350 萬美元，以及對企業聲譽服務的需求增加，因為我們為客戶提供重要的網路安全、監管倡議和危機溝通需求。調整後分部 EBITDA 為 1,290 萬美元，佔分部營收的 14.8%，而去年同期為 1,240 萬美元，佔分部營收的 15.3%。調整後分部 EBITDA 的成長主要歸因於收入增加，但被轉嫁費用增加和薪資增加部分抵銷。策略傳播收入季增 0.5%，主要受轉嫁收入成長的推動。調整後部門 EBITDA 減少 90 萬美元，主要原因是轉嫁費用增加，但直接薪資和銷售、一般及行政費用減少部分抵銷了這項減少。

Let me now discuss a few cash flow and balance sheet items. As is typical, we pay the bulk of our annual bonuses in the first quarter. Net cash used in operating activities of $465.2 million compared to $274.8 million used in the prior year quarter. The year-over-year increase in net cash used in operating activities was primarily due to an increase in forgivable loan issuances, higher variable compensation and a decrease in cash collections. Noteworthy this quarter, we funded $162 million in forgivable loans net of repayments, to both retain professionals and attract new academic affiliates, mostly in our Economic Consulting segment.

現在讓我討論一些現金流和資產負債表項目。通常情況下，我們會在第一季發放大部分年度獎金。經營活動所用淨現金為 4.652 億美元，去年同期為 2.748 億美元。經營活動所用淨現金年增率主要是由於可免除貸款發放量增加、浮動薪酬增加、現金收款減少。值得注意的是，本季我們提供了 1.62 億美元的可免除貸款（扣除還款額），用於留住專業人士並吸引新的學術機構，主要在我們的經濟諮詢部門。

During the quarter, we repurchased 1,126,995 shares at an average price per share of $165.15 for a total cost of $186.1 million. Subsequent to quarter end, and as of April 22, 2025, we have repurchased a further 602,549 shares at an average price per share of $159.33.

本季度，我們以每股 165.15 美元的平均價格回購了 1,126,995 股，總成本為 1.861 億美元。季度結束後，截至 2025 年 4 月 22 日，我們以每股 159.33 美元的平均價格回購了 602,549 股。

You may have noticed that our Board of Directors has authorized an additional $400 million for share repurchases. As of April 22, 2025, we had approximately $568.3 million remaining available for share repurchases under the program, including the additional amount approved by our Board. Turning to guidance. As is typical, we will re-evaluate guidance once we have another quarter our belt at the end of the second quarter to see if any changes are warranted. Now though an aggregate, this quarter, we beat our earnings expectations. Let me share some of the considerations that impact our projections.

您可能已經注意到，我們的董事會已批准額外 4 億美元用於股票回購。截至 2025 年 4 月 22 日，我們仍有約 5.683 億美元可用於該計劃下的股票回購，其中包括董事會批准的額外金額。轉向指導。按照慣例，當我們在第二季末又完成一個季度後，我們將重新評估指導意見，看看是否有必要進行任何更改。從總體來看，本季我們的獲利超出了預期。讓我分享一些影響我們預測的考量。

First, our SG&A was exceptionally low this quarter. primarily due to legal settlements, we expect SG&A to be approximately $15 million to $20 million higher in each of the next two quarters than it was in Q1. Second, as I mentioned, we funded a $162 million in forgivable loans net of repayments this quarter, most of which were at the end of the quarter. Amortization of these loans typically occurs over 3 years to 6 years, and we will begin -- and will begin to significantly impact adjusted EBITDA in Q2. Third, our Forensic and Litigation Consulting segment had a record quarter and has strength going into the second quarter.

首先，本季我們的銷售、一般及行政費用異常低。主要是由於法律和解，我們預計未來兩季的銷售、一般及行政費用將比第一季高出約 1,500 萬至 2,000 萬美元。其次，正如我所提到的，本季我們提供了 1.62 億美元的可免除貸款（扣除還款），其中大部分是在本季末償還的。這些貸款的攤銷通常需要 3 至 6 年的時間，我們將開始——並將在第二季開始對調整後的 EBITDA 產生重大影響。第三，我們的法務和訴訟諮詢部門本季業績創下紀錄，並在第二季保持強勁成長。

However, regulatory scrutiny is a key driver of this business. And to the extent that scrutiny declines amidst the changing regulatory posture in the United States, that could have a negative impact on our business going forward.

然而，監管審查是這項業務的關鍵驅動力。隨著美國監管態勢的變化，審查強度可能會減弱，這可能會對我們未來的業務產生負面影響。

Fourth, as you know, there is considerable uncertainty in the M&A market. According to Reuters, US deal volume fell 13% year-over-year and only one mega deal over $10 billion was announced in Q1. To the extent that M&A remains subdued, it may result in continued lower demand for our related services in Economic Consulting and Technology and lower demand for our transaction services in Corporate Finance & restructuring. Fifth and quantitatively, very recently, we have seen a pickup in restructuring matters in the United States stemming in part from tariff induced stress. However, it is still early to say just how significant this pickup may be.

第四，如大家所知，併購市場存在相當大的不確定性。根據路透社報道，美國第一季交易量年減13%，僅宣布了一筆超過100億美元的大型交易。如果併購活動持續低迷，可能會導致我們在經濟諮詢和技術方面的相關服務需求持續下降，以及我們在企業融資和重組方面的交易服務需求下降。第五，從數量來看，最近我們看到美國重組事宜增加，部分原因是關稅引發的壓力。然而，現在判斷這種回升有多重要還為時過早。

Sixth, we expect that the headcount actions we took will result in cost saving of approximately $85 million in salary and benefits on an annualized basis. Offsetting a substantial portion of these savings, we have some terrific investment opportunities, and we have already invested considerably this year including announcing 31 SMD hires across the business. In addition to the 21 academic affiliates we've announced in Compass Lexecon so far this year. We expect to continue investing in areas where we see exceptional opportunities to hire talent, which typically has a negative impact on adjusted EBITDA at least through the first year after hiring.

第六，我們預計，我們採取的裁員行動將導致每年節省約 8,500 萬美元的薪資和福利成本。為了抵​​消這些儲蓄的很大一部分，我們有一些極好的投資機會，今年我們已經進行了大量投資，包括宣佈在整個公司範圍內招聘 31 名 SMD。除了今年迄今為止我們在 Compass Lexecon 上宣布的 21 個學術附屬機構之外。我們預計將繼續在那些我們認為有特殊人才招募機會的領域進行投資，這通常會對調整後的 EBITDA 產生負面影響，至少在招募後的第一年是如此。

Before I close, I want to reiterate five key themes that I believe underscore the attractiveness of our business. First, this is a time of incredible disruption for our clients, and we are actively engaged in helping our clients in areas such as cybersecurity, export controls and sanctions, regulatory advocacy, cryptocurrency and digital assets. Second, we are the leading restructuring practice in the world and we are better positioned than ever before to help our clients globally. Third, despite the headwinds this year, I believe that our Economic Consulting Group as a whole remains the best in the world and as Steve mentioned, we believe the practice has been further strengthened by the addition of new academic affiliates in Compass Lexecon this year.

在結束之前，我想重申五個關鍵主題，我認為這五個關鍵主題凸顯了我們業務的吸引力。首先，對於我們的客戶來說，這是一個令人難以置信的顛覆時期，我們積極致力於在網路安全、出口管制和製裁、監管倡導、加密貨幣和數位資產等領域為客戶提供幫助。其次，我們是全球領先的重組機構，我們比以往任何時候都更有能力為全球客戶提供協助。第三，儘管今年面臨許多不利因素，但我相信我們的經濟諮詢集團整體上仍然是世界上最好的，正如史蒂夫提到的，我們相信，今年 Compass Lexecon 新增學術分支機構的做法將得到進一步加強。

Fourth, our enviable balance sheet allowed us to opportunistically repurchase 1.7 million shares through April 22 of this year, and we have the ability to create further shareholder value to organic headcount growth, share buybacks and acquisitions when we see the right ones. Finally, while remaining focused on utilization, the number of talented people who want to join us is up across the board and we continue to make investments in talent in areas such as antitrust, financial economics, transformation and strategy, health care, financial services and investigations and in geographies across the globe.

第四，我們令人羨慕的資產負債表使我們能夠在今年 4 月 22 日之前及時回購 170 萬股股票，並且我們有能力在合適的時機透過有機員工成長、股票回購和收購為股東創造進一步的價值。最後，在繼續注重利用率的同時，希望加入我們的人才數量也在全面上升，我們將繼續在反壟斷、金融經濟、轉型和策略、醫療保健、金融服務和調查等領域以及全球各地進行人才投資。

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

現在，讓我們開始回答你們的提問。

Ladies and gentlemen, at this time we'll begin the question-and-answer session. (Operator Instructions) Our first question today comes from James Yarrow from Goldman Sachs. Please go ahead with your question.

女士們、先生們，現在我們開始問答環節。（操作員指示）我們今天的第一個問題來自高盛的詹姆斯·亞羅。請繼續提問。

Good morning and thanks for taking my question, Steve and Ajay. Steve, just starting here on the tariff and the impacts on your business. Could you maybe speak a little bit on which of the businesses as part of FTI Consulting that could be affected either positively or negatively by tariffs. And have you started to see any of these potential impacts thus far? I know it's early, but just an early read there.

早安，感謝史蒂夫和阿傑回答我的問題。史蒂夫，我剛開始談論關稅及其對您的業務的影響。您能否簡單談談 FTI Consulting 旗下哪些業務可能會受到關稅的正面或負面影響？到目前為止，您是否已經開始看到這些潛在影響了？我知道現在還早，但只是提前讀一下。

Yes. Look, I think whenever you have something a major policy change, one of the issues are the first order consequences then the second and then the third order consequences. I don't think -- first of all, I don't even think everybody's absolutely certain about where the tariff thing is going to end up, let alone the first order, second order and third order consequences. So we're in a speculation mode, speculative mode as everybody is on exactly.

是的。你看，我認為每當有重大政策變化時，其中一個問題就是第一順序後果，然後是第二順序後果，然後是第三順序後果。我認為——首先，我甚至不認為每個人都完全確定關稅問題最終會如何發展，更不用說其一階、二階和三階後果了。因此，我們處於推測模式，正如每個人都處於的推測模式。

But you see things happening. Export controls and sanctions, our focus involved in that. Or are just busy as all can be. Supply chain people who are helping try to think about things like that. There's national security issues being discussed based on some of this. There are some strategy questions. Our Stratcom people are being asked to help with communications issues and so forth.

但你看到事情正在發生。出口管制和製裁是我們的重點。或者只是非常忙碌。提供幫助的供應鏈人員嘗試思考這樣的事情。基於此，我們正在討論國家安全問題。有一些策略問題。我們的戰略司令部人員被要求協助解決通訊問題等等。

The big wildcard is restructuring. If you're somebody who is -- who's totally dependent on cost of goods sold coming out of China right now, you have some stress on you. And so that, I think, is behind a couple of the more recent things that we -- that Ajay was referring to. So there's a lot of stuff wasn't the driver of most of the first quarter, I would say, but you see a lot of discussion and activity going on right now around a lot of different areas.

最大的不確定因素是重組。如果你現在完全依賴中國出口商品的銷售成本，那麼你就會面臨一些壓力。所以，我認為這就是阿傑提到的最近發生的幾件事的原因。所以我想說，有很多因素並不是第一季大部分時間的驅動因素，但你會看到現在很多不同領域都在進行大量討論和活動。

Does that help, James?

這有幫助嗎，詹姆斯？

That's really helpful, thanks Steve. Maybe just another one related to policy. And I know it's still early, but we've had a little bit more time on this one than we have had on tariffs. But perhaps you could just talk about the impact of Dodge thus far on the business and perhaps with a particular focus on the Forensic and Litigation Consulting business.

這真的很有幫助，謝謝史蒂夫。也許只是另一個與政策相關的問題。我知道現在還為時過早，但我們在這個問題上花的時間比在關稅問題上多一點。但也許您可以談談道奇迄今為止對業務的影響，並特別關注法務和訴訟諮詢業務。

So far I would say, we have not seen an effect of that. I think and I'm extracting from those specifically those initiatives as we talk about, if the thrust of this administration is to cut back regulatory enforcement on a number of key areas, that can have a pretty big effect on us. We have been one of the leaders in anti-consumer fraud issues. We have a big practice in FCPA. We have a big practice in anti-money laundering to the extent those policies gets rolled out either because of conscious decisions or because of headcount reductions, then that can have a substantial impact on us.

我想說，到目前為止，我們還沒有看到其效果。我認為，特別是從我們討論的那些舉措中可以看出，如果本屆政府的重點是削減一些關鍵領域的監管執法，那麼這將對我們產生相當大的影響。我們一直是反消費者詐欺問題的領導者之一。我們在《反海外腐敗法》方面有大量實務經驗。我們在反洗錢方面有著大量的實踐，這些政策的推出，無論是由於有意識的決定還是由於裁員，都會對我們產生重大影響。

But as you saw in FLC, which is the most likely to be affected business, right now, FLC has been booming. So I think we are pretty carefully monitoring those. We think it could have a pretty substantial effect if those are maintained, and that's what we tried to telegraph here. But as of now, we can't find a huge effect on our business. You disagree or is that pretty much [clear].

但正如你所看到的，FLC 是最有可能受到影響的業務，目前，FLC 一直在蓬勃發展。所以我認為我們正在非常仔細地監控這些。我們認為，如果這些能夠維持下去，可能會產生相當大的影響，這就是我們在這裡試圖傳達的訊息。但截至目前，我們還沒有發現對我們的業務造成巨大的影響。你不同意，或者那差不多[清除]。

Does that help, James?

這有幫助嗎，詹姆斯？

Excellent, thank you. And then just one last one for me. I just wanted to make sure that I understand your comments on guidance. So is the guidance for this year that you gave at the fourth quarter 2024 earnings call, still applicable? Or are you saying that it has been suspended and you'll give us an update at the second quarter earnings call?

非常好，謝謝。對我來說，還有最後一個。我只是想確保我理解您對指導的評論。那麼，您在 2024 年第四季財報電話會議上給出的今年的指導仍然適用嗎？或者您是說它已被暫停，您將在第二季度收益電話會議上向我們提供最新消息？

It is still applicable, James, and we will give you an update at the second quarter earnings call.

它仍然適用，詹姆斯，我們將在第二季財報電話會議上向您提供最新消息。

Excellent, thank you so much.

非常好，非常感謝。

Next question comes from Tobey Sommer from Truist.

下一個問題來自 Truist 的 Tobey Sommer。

Please go ahead with your question.

請繼續提問。

Thank you. I'd like to start on the economic segment. Now that you -- more time has passed, can you size the revenue -- annualized revenue headwind from the departures? And maybe give us a framework for what you think the long-term margin profile of the business looks like because there clearly are some moving parts that are difficult to assess from the outside.

謝謝。我想先從經濟部分開始。現在，時間已經過去很久了，您能否估算出員工離職對年度收入造成的不利影響？也許您可以給我們一個框架，說明您認為該業務的長期利潤狀況，因為顯然有一些活動部件很難從外部進行評估。

Let me talk conceptually about the margin, and then I'll let Ajay decide whether how much details we give on the revenue side on the stuff. Look, the business is going to have a major impact on the EBITDA. There's no question about it. I speculated in certain numbers last time. I think, if anything, the effect is going to be higher, not because the number of departures is radically different than we were speculating against last time and maybe a little bit because some of the retention programs that we put in place or the people we kept, there can be different people asking, going after your people, and we spent a little bit more than I think we expected on that.

讓我從概念上談談利潤，然後我會讓阿傑決定我們是否在收入方面提供多少細節。看，這項業務將對 EBITDA 產生重大影響。毫無疑問。我上次推測了某些數字。我認為，如果有的話，效果會更高，這並不是因為離職人數與我們上次預測的有很大不同，而可能是因為我們實施的一些保留計劃或我們保留的人員，可能會有不同的人要求、追隨你的員工，我們在這方面的花費比我們預期的要多一點。

But actually also because of a good thing, which was we've attracted a lot of new affiliates. And that is a great thing for the medium term, but almost always in this company new strong people cost you money in the first year. Either some of the folks we're attracting are new in their career and they're up and coming, and we're helping it to track them with a view that the hockey stick is pretty substantial over the next few years. But even with the people who are established testifiers bringing theoretically big books of business, sometimes the book of business doesn't transfer immediately for a variety of reasons. And so you spend a fair amount of money these forgivable loans that Ajay referred to and then you spend the beginning now and some of the revenue comes later.

但其實也是因為一件好事，那就是我們吸引了許多新的加盟主。從中期來看，這是一件好事，但這家公司幾乎總是會在第一年就花你的錢。我們吸引的一些人要么是職業生涯的新人，要么是正在崛起的人，我們正在幫助追踪他們，以期在未來幾年內曲棍球棒會相當可觀。但即使那些資深證人帶來了理論上龐大的業務記錄，有時由於各種原因，業務記錄也不會立即轉移。因此，您將花費相當多的錢來償還阿賈伊提到的可免除貸款，然後您現在開始花錢，部分收入稍後才會到達。

That's why we're underscoring this. I mean we're not underscoring this because we think this is life threatening to the business, to the contrary I think this is the best group of economists in the world, and I think the people we're attracting just reinforces that. But the financial hit to the bottom line is substantial. I think last time I speculated it could be $35 million versus last year.

這就是我們強調這一點的原因。我的意思是，我們強調這一點並不是因為我們認為這會對企業造成生命威脅，相反，我認為這是世界上最好的經濟學家群體，我認為我們所吸引的人才恰恰強化了這一點。但這對公司利潤帶來的財務打擊是巨大的。我記得上次我推測這個數字可能是 3,500 萬美元，而去年則是 3,500 萬美元。

I think the number is likely to be higher than that. I don't think we have so much detail that we can get more specific than that. Okay? So that's on the bottom line impact. Ajay, I don't know how much detail we give on the revenue.

我認為這個數字可能會更高。我認為我們掌握的細節不多，因此無法獲得更具體的資訊。好的？這就是對底線的影響。Ajay，我不知道我們提供多少有關收入的詳細資訊。

So Tobey, you already see the impact in revenue this quarter. So you already see that. In terms of the cost side in the short term, the next few quarters have been very explicit on the incremental, at least forgivable loans given through this quarter. And I said, they're mostly at the end of the quarter. We've said the amortization happens over 3 years to 6 years, you can average it and calculate the quarterly impact.

所以托比，你已經看到了本季營收的影響。所以你已經看到了。就短期成本而言，未來幾季將非常明確地增加本季提供的至少是可免除的貸款。我說，它們大多處於季度末。我們說過攤銷發生在 3 到 6 年內，您可以取平均值併計算季度影響。

So you have the revenue, that's the incremental piece is the forgivable loans. You already saw the headcount coming off in the first quarter with the ensuing savings there. So you have all the piece parts already. And our guidance that is in place has a range of outcomes that Steve mentioned is already incorporated in that range.

所以你有收入，這就是增量部分，即可免除的貸款。您已經看到第一季員工人數的減少以及隨之而來的節省。因此您已經擁有了所有零件。我們現有的指導方針包含一系列史蒂夫提到的結果，這些結果已經納入其中。

Okay. So the new hires, sometimes the matters or the rep comes later, is the -- does the first quarter capture the -- all of the revenue that sort of was attached to the departing employees?

好的。因此，對於新員工，有時這些事項或代表會晚些到來，那麼第一季是否能記錄離職員工帶來的所有收入？

So let's be clear about that. Most of people departed towards the end of the quarter. So no, it doesn't. I mean now we also had market slowdowns and other factors in that first quarter but no, the revenue impact of the parted employees really starts to show up more in the second and third quarter. But the first quarter also had some other headwinds in it. So it's hard to know.

所以讓我們明確這一點。大多數人在本季末離開。所以，事實並非如此。我的意思是，第一季我們也遇到了市場放緩和其他因素，但員工離職對收入的影響在第二季和第三季才真正開始顯現出來。但第一季也面臨一些其他不利因素。所以很難知道。

And there is obviously a disruptive practice. So to that extent, yes, as I said explicitly in my remarks, it's a combination of factors, the markets, departures, which, as Steve said, happened towards end but also the disruption in the practice and clearly, the new hires come over time.

這顯然是一種破壞性做法。所以從這個程度上來說，是的，正如我在發言中明確表示的那樣，這是多種因素的綜合作用，包括市場、員工離職（正如史蒂夫所說，這些都發生在公司末期），但同時也包括業務的中斷，而且顯然，新員工的加入也是隨著時間的推移而發生的。

Thank you. Could you talk about trends in your health care business within FLC, what have you experienced there in the quarter? And what's the outlook for the year?

謝謝。您能談談 FLC 內部醫療保健業務的趨勢嗎？本季您經歷了什麼？今年的前景如何？

Yes, it's been good, but it's been good. I mean we have a good practice with a couple of different health care practices, performance improvement within CF and then the more regulatory-oriented one in FLC, and it's been a good -- they both had good businesses this quarter. I don't know what else you want to say about that.

是的，這很好，但已經很好了。我的意思是，我們在幾種不同的醫療保健實踐方面都有良好的實踐，CF 內部的績效改進以及 FLC 中更注重監管的實踐，這很好——他們本季度的業務都很好。我不知道您對此還想說些什麼。

Yes. And particularly so, Tobey, because last year, they were some what weak. So the year-over-year comparisons show up more, which is what we talked about.

是的。托比，尤其如此，因為去年他們的表現有些弱。因此，同比變化更加明顯，這也是我們所討論的。

Even if I could ask a follow-up on the regulatory question. I can't predict what the changes will be and what the effects will be going forward. But could you size for us the parts of the business or maybe proportion of business that is regulator-led investigations and the like?

即使我可以就監管問題進行後續詢問。我無法預測未來會發生哪些變化以及會產生哪些影響。但是，您能否為我們估算一下監管機構主導的調查等業務的各個部分或業務比例？

That's a difficult one to answer. At the end of the day, regulators are -- every investigation has some regulatory aspect of it. But whether it is -- the speculation is it the federal or is it the state regulation, which one would take precedence. Of course, we're only talking United States. There's also regulators in Europe and other geographies. So that one is impossible one for me to answer. All I can tell you is that our practitioners, whilst we have struck a cautious stone for obvious reasons, our practitioners in the business remain very positive.

這是一個很難回答的問題。歸根結底，監管機構——每項調查都涉及一些監管方面。但無論是——猜測是聯邦法規還是州法規，哪一個會優先。當然，我們只談美國。歐洲和其他地區也有監管機構。所以這個問題我不可能回答。我只能告訴你們，儘管我們出於顯而易見的原因而採取了謹慎的態度，但我們業務中的從業者仍然非常積極。

Okay. Last one for me. Ajay, could you give us some color on the headcount actions, maybe color on the distribution segments, geographies, split between back office versus fee generators, that kind of thing? Thank you.

好的。對我來說是最後一個。Ajay，您能否向我們詳細介紹一下員工人數的變動，例如分銷部門、地理分佈、後台部門和費用產生部門之間的劃分等？謝謝。

Sure, sure. Look, it's all laid out in the 10-Q in terms of the breakdown by segment, and I don't remember all those numbers on top of my head. But what I will tell you, it's about 400-plus folks, between Q4 and Q1, it is spread across all levels. In fact, remarkably proportional to the mix we have in -- and on the billable side, it's remarkably evenly spread the same proportions as we have seniors versus juniors, perhaps a little bit more weighted on the senior side and a smaller on the non-billable side.

當然，當然。你看，10-Q 中已經按細分市場列出了所有內容，但我記不清所有這些數字了。但我要告訴你的是，在第四季和第一季之間，大約有 400 多人，分佈在各個層面。事實上，與我們現有的組合成顯著比例——在計費方面，它的比例非常均勻，就像老年人和年輕人的比例一樣，可能老年人的比例更大一些，而非計費方面的比例較小。

And it's across the globe. As you know, we have most of our people in the United States in EMEA. It's a little bit more in EMEA than in the United States, but otherwise, it's across the globe.

它遍布全球。如您所知，我們的大多數員工都在美國，並且位於歐洲、中東和非洲地區。在歐洲、中東和非洲地區，這數字比在美國略大，但除此之外，這個數字遍布全球。

Thank you.

謝謝。

Our next question comes from Andrew Nicholas from William Blair. Please go ahead with your question.

下一個問題來自威廉布萊爾公司的安德魯·尼古拉斯。請繼續提問。

Hi, good morning, thank you for taking my question. I wanted to ask first on under restructuring business. It sounds like you've seen a little bit of incremental stress that's been the past couple of weeks. The question I want to ask is just around kind of the bifurcation in that market between liability management and your traditional like chapter 11 bankruptcy activity. Is there any shift from what you can tell in preference for one route or the other right now and maybe understanding that it's difficult to predict the future, if you think the next couple of months or quarters, in this specific environment might skew one way versus the other relative to what you've seen in the past couple of years?

你好，早安，謝謝你回答我的問題。我想先詢問一下重組業務的情況。聽起來你已經看到了過去幾週來一點點的增量壓力。我想問的問題是關於該市場中負債管理和傳統的第 11 章破產活動之間的分歧。從您目前對某條路線的偏好來看，是否有任何轉變？也許您知道很難預測未來，如果您認為未來幾個月或幾個季度，在這種特定環境下，相對於過去幾年所看到的情況，可能會向某一方向傾斜？

So there's quite a few questions embedded in that one. I found an interesting statistic the other day that what S&P reported that last quarter, 42% of the bankruptcies were repeat bankruptcies. So liability management doesn't always work. In fact, that creates a market in the future for restructuring. We hope our clients do well.

這其中隱藏著不少問題。前幾天我發現一個有趣的統計數據，標準普爾報告稱，上個季度 42% 的破產是重複破產。因此，負債管理並不總是有效。事實上，這為未來的重組創造了一個市場。我們希望我們的客戶一切順利。

But typically taking on more debt, if you already have high leverage with unsecured -- in other unsecured positions doesn't necessarily get you out of trouble, and we can see evidence of that already. Where the fourth line is running through working capital with these tariffs? And because the working capital is getting increased with the tariffs and you don't get realized value. So how and if you're extremely over levered to begin with, how that can be sold through liability management beats me. So this is a serious challenge that is creating a demand. And we bring a whole slew of services from cost cutting to changing supply channels to transactions and in the ultimate analysis restructuring to the equation.

但通常情況下，如果你已經擁有高槓桿率的無擔保——其他無擔保頭寸並不一定能讓你擺脫困境，我們已經看到了這方面的證據。第四條線路透過這些關稅運作營運資金在哪裡？而且由於營運資本隨著關稅的增加而增加，因此您無法獲得實現的價值。因此，如果你一開始就嚴重過度槓桿，那麼如何透過負債管理來解決這個問題讓我很困惑。所以這是一個正在創造需求的嚴峻挑戰。我們提供一系列服務，從削減成本到改變供應管道、交易，以及最終的分析重組。

That's helpful, thank you. And then kind of going back to economic consulting, Ajay, you cited some statistics on HSR kind of deal counts and I apologize if you outlined this already, but just to clarify, is that primarily regulatory driven slow down or are there other kind of macro dynamics that already show up in that figure? Just trying to get a sense for overall backdrop, excluding some of the Compass Lexecon-specific headwinds

這很有幫助，謝謝。然後回到經濟諮詢，阿傑，你引用了一些關於高鐵交易數量的統計數據，如果你已經概述了這一點，我很抱歉，但只是為了澄清一下，這主要是監管驅動的放緩還是有其他類型的宏觀動態已經出現在該數字中？只是想了解整體背景，排除一些特定於指南針詞典的不利因素

No, no, no. It's -- the biggest backdrop is uncertainty. It's people freeze when they don't know, and it's the tariffs more than the regulatory people freeze when they don't know which way things are going to come down and that shows up in M&A. At least that's our supposition.

不，不，不。最大的背景就是不確定性。當人們不知道事情會如何發展時，他們就會變得不知所措，而當人們不知道事情會如何發展時，他們就會對關稅比監管機構更加不知所措，這在併購中得到了體現。至少這是我們的假設。

Great. And then maybe one last question. Obviously, dealing with some of the departures and in Compass Lexecon, there's specific headwinds within that segment. But I'm curious, are there any kind of ripple effects that you expect from some of the lost revenue there to other parts of your business? I know in the past, you've talked about having some success driving additional cross-sell between EC and technology or CFR and Stratcom. I'm just kind of curious outside of what's isolated to that segment, if there's anything that you'd say there. Thank you.

偉大的。也許還有最後一個問題。顯然，在處理一些離職問題以及在 Compass Lexecon 中，該領域存在特定的阻力。但我很好奇，您預計那裡的收入損失會對您業務的其他部分產生連鎖反應嗎？我知道，過去您曾談到在推動 EC 和技術或 CFR 和 Stratcom 之間的額外交叉銷售方面取得了一些成功。我只是有點好奇，除了該部分內容之外，您是否還有什麼要說的。謝謝。

So two things. First, those range of outcomes reach that one can reasonably foresee. Related to either Economic Consulting, specifically, our second and third order are in our guidance. So that's number one. Number two, this could be unique. They're not -- no, there is no such expectations of this cross order, but there could be some, but I wouldn't read too much into it.

所以有兩件事。首先，這些結果的範圍達到了人們可以合理預見的程度。具體來說，與經濟諮詢相關，我們的第二和第三個訂單都在我們的指導範圍內。這是第一點。第二，這可能是獨一無二的。他們不是——不，對這種交叉命令沒有這樣的期望，但可能會有一些，但我不會過多解讀。

Helpful, thanks again.

很有幫助，再次感謝。

There are no other questions. I just want to say thank you for your continued attention. Look, as we all know, the world is filled with uncertainty. And as we talked about individual businesses, the virus can be affected by those uncertainty negatively or positively. I'll just come back to a general point.

沒有其他問題。我只想感謝您一直以來的關注。眾所周知，世界充滿了不確定性。正如我們談論個別企業時那樣，病毒可能會受到這些不確定性的負面或正面影響。我只是回到一般性問題。

That's -- there's a unique constellation of uncertainties today, but the notion that our business has surged and sort through periods of uncertainty in the past is the thing I would come back to. And in fact, our company exists to help companies in the face of the deepest uncertainty. Does it mean you can't have a pause for a while or a big effect on one business or another, and you can always have cost issues as you're stabilizing the business that has some departures and stuff like that. Nothing about the current uncertainty changes my fundamental conviction of this company is closer to the beginning of its journey than the end. So looking forward to being on that journey with all of you. Thank you very much.

那就是——今天存在著一系列獨特的不確定性，但我要回顧的是，我們的業務在過去已經蓬勃發展，並度過了不確定的時期。事實上，我們公司的存在就是為了幫助企業應對最嚴重的不確定性。這是否意味著你不能暫停一段時間或對某項業務產生重大影響，而且在穩定業務的過程中，你總是會遇到成本問題，因為業務中存在一些人離職之類的問題。目前的不確定性絲毫沒有改變我的基本信念：這家公司即將迎來它的旅程的開始，而不是結束。我非常期待與大家一起踏上這段旅程。非常感謝。

And ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

女士們、先生們，今天的電話會議和演講就到此結束。我們非常感謝您的加入。現在您可以斷開線路了。