WEST PALM BEACH, FL: FTI Consulting's strategic communications unit reported a 6.8% year-over-year revenue decrease to $46.9 million in the fourth quarter of 2013.
For the full year, strategic comms revenues were down 0.8% to $186.2 million, compared with the previous year.
Earnings in the strategic comms group dropped due to reduced pass-through and project revenues in the EMEA and North America regions, according to the earnings report.
Mark McCall, senior MD and Americas head of the FTI strategic communications practice, said the segment “experienced strong performance in several key areas of the business, including industry verticals such as healthcare, energy, and natural resources, as well as in key practice areas such as public affairs and employee engagement.”
“Given our strength in financial communications, poor fourth-quarter deal flow in Europe and North America had a negative effect on revenue,” he said, via email.
McCall said that the firm has added a number of executives since the beginning of this year, including former Rep. Robert “Bud” Cramer and litigation communications expert Tilden Katz.
By comparison, Q4 revenue for the forensic and litigation consulting unit at FTI increased 18% year-over-year to $114.7 million, while revenue in the economic consulting group grew 12.9% to $108.1 million. The corporate finance and restructuring group's revenue dropped 14.5% to $92.8 million in Q4, while that of the technology segment increased 12.6% to $53.6 million, compared with the prior year.
The agency's total fourth-quarter revenue was up 4.2% to nearly $416 million, year-over-year, while its full-year revenue increased 4.8% to $1.7 billion.
The company saw fourth-quarter operating income of $11.4 million, an improvement from an operating loss of $55.3 million in the same period of 2012. Its net loss in the quarter was $7.1 million, compared with a net loss of $85.9 million in Q4 2012.
For full-year 2013, operating income was $81.4 million, up nearly 38% compared with 2012. The firm's net loss of $10.6 million was an improvement from 2012's $36.9 million net loss.
FTI predicted that first-quarter 2014 revenue will fall between $410 million and $425 million, assuming there are no acquisitions or share repurchases, according to the earnings report.
This story was updated on February 20 at 2:26 pm with comment from McCall.