Earnings: Allied Capital, FTI Consulting, GTSI, Hughes, and Interstate

From staff and wire reports

*Allied Capital of the District posted a loss for the first quarter of $40.7 million (25 cents a share), compared with a profit of $133.1 million (87 cents) in the comparable period a year earlier, as the fund's investments in certain kinds of debt soured.
Allied Capital lends to and invests in medium-sized businesses looking for cash to grow or overhaul their businesses.
The company attributed the loss to $113.4 million in investment losses, mainly from lower values of collateralized loans and other types of debt. Allied Capital said these losses can swing from quarter to quarter and do not necessarily depict a trend.
The company booked investment income of $69.5 million, a 76 percent increase from the first quarter last year. The value of Allied Capital's portfolio at the end of the first quarter was $4.6 billion, down from $4.78 billion at the beginning of the year.

*FTI Consulting said its first-quarter profit more than doubled, rising to $31.3 million (59 cents), as fallout from the subprime mortgage mess spurred strong revenue growth across all business segments. Revenue for the Baltimore company jumped 35 percent, to $307.1 million.
Revenue from the company's technology segment grew 71 percent, to $56.5 million, while sales from its corporate finance and restructuring division increased 28 percent, to $79.3 million. Revenue in this segment was driven by increasing demand from sectors affected by the housing downturn, such as building materials, retail, consumer durables and insurers, FTI said. There was also strong demand from the health care sector for both consulting and restructuring services.
Strategic communications revenue grew 43 percent and economic consulting revenue gained 41 percent due to credit and liquidity issues and strategic merger-and-acquisition assignments.
"The global credit crisis in its various forms continued to be a significant driver of work across all of our business segments," said Jack Dunn, president and chief executive, in a statement. "Subprime issues remained unresolved and the housing market continued to erode, undermining consumer net worth and confidence."
The company closed seven acquisitions in the first quarter, and two additional acquisitions in the first week of April, adding more than 400 employees. Going forward, the company said it has a full acquisition pipeline and will continue to "aggressively" pursue acquisitions throughout 2008.

*GTSI of Chantilly said its loss narrowed to $5.1 million (52 cents) from $6.9 million (73 cents), and revenue fell 2.6 percent, to $142.8 million. The company said it paid off $10 million of subordinated debt and kept moving toward profitability.

*Broadband satellite company Hughes Communications said first-quarter profit fell 77 percent, to $656,000 (3 cents) on higher costs. The Germantown-based company paid $8.5 million into an employee retention plan relating to a 2005 acquisition. Sales rose to $237.2 million from $222.9 million.

*Interstate Hotels & Resorts said it swung to a first-quarter loss of $286,000 (1 cent) as the year-ago benefited from a unit sale. The Arlington company earned $15.9 million (50 cents) in the year-earlier quarter.
The hotel management company said revenue declined 7 percent, to $190 million, on a drop in management fee revenue and other revenue from managed properties.
Year-ago results included a $17 million gain from the January 2007 sale of its BridgeStreet Corporate Housing subsidiary.

By Terri Rupar  |  May 7, 2008; 11:23 AM ET  | Category:  Earnings
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