Navigant Consulting, Inc. (NYSE:NCI):
-
Revenue before reimbursements totaled $157.3 million, down 17% from
second quarter 2008 and down 6% from first quarter 2009
-
Earnings per share, adjusted to exclude the net income impact of
severance and other operating costs, of $0.14 compared to $0.26 a year
ago and $0.16 in first quarter of 2009; GAAP earnings per share of
$0.07 compared to $0.21 a year ago and $0.11 in first quarter of 2009
-
Ongoing expense management efforts providing significant offset
against adverse revenue impacts of economic environment—full year
impact expected to be double previously anticipated levels
-
Recently completed business assessment yields focused growth strategy
in Dispute and Forensic Services, Healthcare and Energy markets
-
Liquidity remains solid, with June 30, 2009 debt levels down over
$20.0 million from March 31, 2009 and down almost $70.0 million from a
year ago
-
2009 earnings per share, adjusted to exclude the net income impact of
severance and other operating costs, now estimated to be in the range
of $0.60 and $0.70 per share
Navigant Consulting, Inc. (NYSE:NCI), a global consulting firm providing
dispute, investigative, operational, risk management and financial and
regulatory advisory solutions, today announced financial results for the
second quarter ended June 30, 2009.
“Market conditions for our services during the second quarter continued
to reflect extended sales cycles in combination with caution on the part
of clients in advancing large engagement and discretionary spend
matters. While we see stabilization in those trends, the economy has
continued to have an adverse impact on our business,” stated William M.
Goodyear, Chairman and Chief Executive Officer. “Expense management
efforts undertaken during the first half of the year have produced
sizeable savings, but we continue to feel pressure on our revenue base
from the weak operating environment. Our efforts for the balance of 2009
remain sharply focused on managing our business operations aggressively
against this market environment while simultaneously deepening our
market-facing activities and positioning the company to outperform
during the next stage of the recovery cycle. We have great confidence in
our professionals and in the growth opportunities for Navigant.”
Second Quarter 2009 Results
The Company’s second quarter 2009 results are summarized as follows:
|
|
|
Total Company Second Quarter 2009 Financial Results (1)
|
|
|
|
Q2 2009
|
|
Q2 2008
|
|
% Change
|
|
Q1 2009
|
|
% Change
|
|
Revenue Before Reimbursements ($000)
|
|
$
|
157,332
|
|
$
|
189,385
|
|
-16.9%
|
|
$
|
167,212
|
|
-5.9%
|
|
Total Revenues ($000)
|
|
$
|
173,556
|
|
$
|
211,408
|
|
-17.9%
|
|
$
|
182,362
|
|
-4.8%
|
|
Adjusted EBITDA ($000)
|
|
$
|
21,852
|
|
$
|
34,462
|
|
-36.6%
|
|
$
|
22,052
|
|
-0.9%
|
|
EBITDA ($000)
|
|
$
|
17,627
|
|
$
|
32,507
|
|
-45.8%
|
|
$
|
21,752
|
|
-19.0%
|
|
Net Income ($000)
|
|
$
|
3,385
|
|
$
|
9,986
|
|
-66.1%
|
|
$
|
5,433
|
|
-37.7%
|
|
Earnings Per Share
|
|
$
|
0.07
|
|
$
|
0.21
|
|
-66.7%
|
|
$
|
0.11
|
|
-36.4%
|
|
Adjusted Earnings Per Share
|
|
$
|
0.12
|
|
$
|
0.24
|
|
-50.0%
|
|
$
|
0.12
|
|
0.0%
|
|
Average Billable FTEs
|
|
|
1,832
|
|
|
1,916
|
|
-4.4%
|
|
|
1,941
|
|
-5.6%
|
|
End of Period Billable FTEs
|
|
|
1,778
|
|
|
1,928
|
|
-7.8%
|
|
|
1,920
|
|
-7.4%
|
|
Consultant Utilization (1,850 base)
|
|
|
73%
|
|
|
79%
|
|
-7.6%
|
|
|
75%
|
|
-2.7%
|
|
Average Bill Rate (excluding success fees)
|
|
$
|
250
|
|
$
|
266
|
|
-6.0%
|
|
$
|
252
|
|
-0.8%
|
|
DSO
|
|
|
91
|
|
|
85
|
|
7.1%
|
|
|
87
|
|
4.6%
|
(1) See the attached financial schedules for a reconciliation of
Adjusted EBITDA, Adjusted Earnings per Share, and earnings per share,
adjusted to exclude the net income impact of severance and other
operating costs, to the closest GAAP measure.
Revenues before reimbursement (RBR) totaled $157.3 million in the second
quarter of 2009 compared to $189.4 million in the year ago quarter and
$167.2 million in the first quarter of 2009. Second quarter adjusted
EBITDA of $21.9 million was basically flat with the first quarter, and
was down from $34.5 million in the second quarter of 2008. Total debt at
June 30, 2009 declined over $20.0 million from March 31, 2009 and was
down almost $70.0 million from year ago levels on continued solid cash
flow and working capital management.
Second quarter utilization was 73% compared to 75% in the first quarter
of 2009, and 79% during the comparable 2008 period. Average bill rate
for the second quarter declined slightly to $250 from first quarter’s
$252 and is down from $266 in the second quarter of 2008, continuing to
reflect bill rate pressure and adverse currency impacts compared to the
prior year. Average billable full time equivalent staffing levels
declined to 1,832 for the second quarter of 2009 from 1,941 for the
first quarter of 2009 and 1,916 a year ago, reflecting the staffing
reductions discussed last quarter. Second quarter severance costs
totaled $1.3 million compared to $3.0 million in the first quarter of
2009 and consultant attrition for the second quarter of 2009 declined to
4%, resulting in trailing 12 month attrition of 15%, compared with 22%
in the second quarter of 2008.
Cost of services before reimbursable expenses and G&A expenses both
declined significantly from year ago levels reflecting previously
discussed expense management actions. These costs totaled $135.5 million
in the second quarter of 2009, down $19.4 million, or 13%, from the
second quarter of 2008. Further staffing adjustments, lower performance
based compensation expense and further tightening of general and
administrative operating costs are expected to provide additional cost
savings during the second half of 2009. The impact of these actions is
expected to provide approximately $50.0 million in savings for full year
2009 compared to 2008, approximately double the amount previously
anticipated. Other operating costs of $4.6 million were recorded in the
second quarter of 2009, primarily related to the planned relocation of
our New York office.
The Company’s year-to-date 2009 results are summarized as follows:
|
|
|
Year-to-Date 2009 Financial Results (1)
|
|
|
|
YTD 2009
|
|
YTD 2008
|
|
% Change
|
|
Revenue Before Reimbursements ($000)
|
|
$
|
324,544
|
|
$
|
373,679
|
|
-13.1%
|
|
Total Revenues ($000)
|
|
$
|
355,918
|
|
$
|
418,547
|
|
-15.0%
|
|
Adjusted EBITDA ($000)
|
|
$
|
43,904
|
|
$
|
67,670
|
|
-35.1%
|
|
EBITDA ($000)
|
|
$
|
39,379
|
|
$
|
65,065
|
|
-39.5%
|
|
Net Income ($000)
|
|
$
|
8,818
|
|
$
|
20,892
|
|
-57.8%
|
|
Earnings Per Share
|
|
$
|
0.18
|
|
$
|
0.44
|
|
-59.1%
|
|
Adjusted Earnings Per Share
|
|
$
|
0.24
|
|
$
|
0.49
|
|
-51.0%
|
(1) See the attached financial schedules for a reconciliation of
Adjusted EBITDA, Adjusted Earnings per Share, and earnings per share,
adjusted to exclude the net income impact of severance and other
operating costs, to the closest GAAP measure.
On a year to date basis, revenues before reimbursements totaled $324.5
million compared to $373.7 million for the first six months of 2008,
down 13%. Adverse currency impacts accounted for $13.0 million of the
decline. Adjusted EBITDA for the first six months of 2009 totaled $43.9
million compared to $67.7 million for the first six months of 2008.
Business Segment Highlights
Second quarter 2009 financial results for the Company’s four business
segments are summarized as follows:
|
|
|
Business Segment Second Quarter 2009 Financial Results
|
|
|
|
Q2 2009
|
|
Q2 2008
|
|
% Change
|
|
Q1 2009
|
|
% Change
|
|
Business Segment Revenues ($000)
|
|
|
|
|
|
|
|
|
|
|
|
North American Dispute and Investigative Services
|
|
$
|
72,225
|
|
$
|
88,602
|
|
-18.5%
|
|
$
|
72,630
|
|
-0.6%
|
|
North American Business Consulting Services
|
|
|
69,356
|
|
|
92,045
|
|
-24.6%
|
|
|
79,639
|
|
-12.9%
|
|
International Consulting Operations
|
|
|
17,820
|
|
|
23,098
|
|
-22.9%
|
|
|
16,046
|
|
11.1%
|
|
Economic Consulting Services
|
|
|
14,155
|
|
|
7,663
|
|
84.7%
|
|
|
14,047
|
|
0.8%
|
|
Total Company
|
|
$
|
173,556
|
|
$
|
211,408
|
|
-17.9%
|
|
$
|
182,362
|
|
-4.8%
|
|
Business Segment Revenues before Reimbursements ($000)
|
|
|
|
|
|
|
|
|
|
|
|
North American Dispute and Investigative Services
|
|
$
|
65,810
|
|
$
|
79,305
|
|
-17.0%
|
|
$
|
67,247
|
|
-2.1%
|
|
North American Business Consulting Services
|
|
|
63,566
|
|
|
82,030
|
|
-22.5%
|
|
|
72,772
|
|
-12.7%
|
|
International Consulting Operations
|
|
|
14,698
|
|
|
20,701
|
|
-29.0%
|
|
|
14,306
|
|
2.7%
|
|
Economic Consulting Services
|
|
|
13,258
|
|
|
7,349
|
|
80.4%
|
|
|
12,887
|
|
2.9%
|
|
Total Company
|
|
$
|
157,332
|
|
$
|
189,385
|
|
-16.9%
|
|
$
|
167,212
|
|
-5.9%
|
|
Segment Operating Profit ($000) (2)
|
|
|
|
|
|
|
|
|
|
|
|
North American Dispute and Investigative Services
|
|
$
|
25,681
|
|
$
|
33,753
|
|
-23.9%
|
|
$
|
25,450
|
|
0.9%
|
|
North American Business Consulting Services
|
|
|
23,356
|
|
|
33,993
|
|
-31.3%
|
|
|
26,391
|
|
-11.5%
|
|
International Consulting Operations
|
|
|
4,070
|
|
|
8,179
|
|
-50.2%
|
|
|
4,021
|
|
1.2%
|
|
Economic Consulting Services
|
|
|
4,888
|
|
|
2,948
|
|
65.8%
|
|
|
4,644
|
|
5.3%
|
|
Total Company
|
|
$
|
57,995
|
|
$
|
78,873
|
|
-26.5%
|
|
$
|
60,506
|
|
-4.2%
|
(2) For further detail see the Q2 2009 Metrics Datasheet posted at www.navigantconsulting.com/investor_relations.
Revenue before reimbursements in the second quarter of 2009 for the
Company’s Dispute and Investigative Services segment was $65.8 million,
down slightly from the first quarter 2009 and down 17% from very strong
levels in the second quarter of 2008. Results reflect a challenging
demand environment during the quarter, which was impacted by cost
pressure on clients contributing to the deferral of work on dispute and
investigative matters, as well as a delay in the anticipated increase in
regulatory investigative and enforcement activity. Notwithstanding the
challenging market, the Company continues to see market activity related
to ongoing credit crisis litigation, continuing commercial and
intellectual property disputes, as well as distressed real estate
services.
The Business Consulting Services segment experienced a decline in second
quarter revenue before reimbursements of 13% from the first quarter of
2009 and 23% from the second quarter 2008, reflecting ongoing softness
in utilization as a result of slowness in discretionary spend decisions
and client deferrals of strategic initiatives. Cost management efforts
during the first half of the year allowed the segment to partially
offset the revenue impact, with segment operating profit margins in the
second quarter improving slightly to 37% from 36% in the first quarter
of 2009. For the second half of the year the Company expects ongoing
pressure in the Financial Services market, while the Healthcare and
Energy markets should remain attractive given the combination of an
increasingly active regulatory environment together with the potential
impact of stimulus funding.
Navigant’s International Consulting Operations segment revenue before
reimbursements in the second quarter of 2009 was consistent with first
quarter 2009 results, but decreased 29% compared to the second quarter
of 2008, reflecting a $4.1 million adverse currency impact. For the
second half of the year, the Company expects strengthening activity in
the Global Construction and Financial Services markets.
Results from the Company’s Economic Consulting Services segment during
the second quarter of 2009 were up slightly from the first quarter of
2009. The team continues to see demand particularly related to
antitrust, valuation and structured finance matters.
A Company metrics summary including data by segment is available at www.navigantconsulting.com/investor_relations.
Navigant Strategic Refresh
Navigant recently completed a strategic assessment of its overall
portfolio of businesses and services and refined its strategy to enhance
the value it delivers to all stakeholders – clients, employees and
shareholders – and to position the Company for long-term growth and
success.
“Throughout this past year, we have applied critical thinking and
evaluation to the market potential of current and prospective businesses
and services, analyzing how we will grow profitably into the future,”
stated Julie Howard, President and Chief Operating Officer. “The
strategies that have been successful for Navigant in previous years are
being adapted to meet current and expected future business
opportunities, and through a sharpened and focused investment process,
will enable the Company to outperform during the next phase of the
recovery cycle.”
Key strategic goals include growing annual revenues to exceed $1.0
billion over the next 3-4 years, while achieving 18% - 22% EBITDA
margins; prioritizing the Firm’s capital and resources on large and
global opportunities and talent development particularly in the Dispute
and Forensic Services, Healthcare and Energy markets; and advancing the
Navigant brand as “best in class” for addressing clients most complex
and challenging business risks and opportunities.
2009 Outlook
“Due to the uncertainty surrounding the near term 2009 operating
environment, our outlook assumes continuation of current conditions for
the balance of the year,” stated Mr. Goodyear. “We will strive to exceed
these levels, and have high confidence in the future opportunities for
the Company.”
For the full year 2009, the Company currently expects annual revenues
before reimbursements between $630 and $670 million, with total revenues
between $690 and $730 million. Based on that revenue level, and the
second half impacts from updated cost reduction actions, earnings per
share, adjusted to exclude the net income impact of severance and other
operating costs, is currently estimated to be between $0.60 and $0.70
per share.
Second Quarter 2009 Earnings
Conference Call
Mr. Goodyear will host a conference call to discuss the Company’s
financial results at 10:00 a.m. Eastern Standard Time on Wednesday, July
22, 2009. The web cast may be accessed at www.navigantconsulting.com/investor_relations.
A replay of the web cast will be available for approximately 90 days.
About Navigant Consulting
Navigant Consulting, Inc. (NYSE: NCI) is a global consulting firm
providing dispute, investigative, operational, risk management and
financial and regulatory advisory solutions to government agencies,
legal counsel and large companies facing the challenges of uncertainty,
risk, distress and significant change. The Company focuses on industries
undergoing substantial regulatory or structural change and on the issues
driving these transformations. “Navigant” is a service mark of Navigant
International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated,
associated, or in any way connected with Navigant International, Inc.
and NCI’s use of “Navigant” is made under license from Navigant
International, Inc. More information about Navigant Consulting can be
found at www.navigantconsulting.com.
Except as set forth below, statements included in this press release
which are not historical in nature are forward-looking statements
as defined within the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words including
“goals,” “anticipates,” “believes,” “intends,” “estimates,” “expects”
and similar expressions. These statements are based upon
management’s current expectations as of the date of this press release.
The Company cautions readers that there may be events in the
future that the Company is not able to accurately predict or control and
the information contained in the forward-looking statements is
inherently uncertain and subject to a number of risks that could cause
actual results to differ materially from those indicated in the
forward-looking statements including, without limitation: the success of
the Company’s strategy implementation following its strategic business
assessment; the success of the Company’s cost reduction actions; the
success of the Company’s organizational changes; risks inherent
in international operations including foreign currency fluctuations;
ability to make acquisitions; pace, timing and integration of
acquisitions; impairment charges; management of professional staff,
including dependence on key personnel, recruiting, attrition and the
ability to successfully integrate new consultants into the Company’s
practices; utilization rates; conflicts of interest; potential loss of
clients; clients’ financial condition and their ability to make payments
to the Company; risks inherent with litigation; higher risk client
assignments; professional liability; potential legislative and
regulatory changes; continued access to capital; and general economic
conditions. Further information on these and other potential
factors that could affect the Company’s financial results is included in
the Company’s filings with the SEC under the “Risk Factors” section and
elsewhere in those filings. The Company cannot guarantee any
future results, levels of activity, performance or achievement and
undertakes no obligation to update any of its forward-looking statements
after the date of this press release.
|
|
|
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended June 30,
|
|
For the six months ended June 30,
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before reimbursements
|
|
$157,332
|
|
|
$189,385
|
|
|
$324,544
|
|
|
$373,679
|
|
|
Reimbursements
|
|
16,224
|
|
|
22,023
|
|
|
31,374
|
|
|
44,868
|
|
|
|
Total revenues
|
|
173,556
|
|
|
211,408
|
|
|
355,918
|
|
|
418,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services before reimbursable expenses
|
|
101,967
|
|
|
113,852
|
|
|
212,234
|
|
|
226,925
|
|
|
Reimbursable expenses
|
|
16,224
|
|
|
22,023
|
|
|
31,374
|
|
|
44,868
|
|
|
|
Total costs of services
|
|
118,191
|
|
|
135,875
|
|
|
243,608
|
|
|
271,793
|
|
|
General and administrative expenses
|
|
33,513
|
|
|
41,071
|
|
|
68,406
|
|
|
79,084
|
|
|
Depreciation expense
|
|
4,320
|
|
|
4,381
|
|
|
8,960
|
|
|
8,546
|
|
|
Amortization expense
|
|
3,392
|
|
|
4,597
|
|
|
7,012
|
|
|
8,824
|
|
|
Other operating costs:
|
|
|
|
|
|
|
|
|
|
|
Office consolidation
|
|
4,612
|
|
|
2,575
|
|
|
5,520
|
|
|
4,093
|
|
|
|
Operating income
|
|
9,528
|
|
|
22,909
|
|
|
22,412
|
|
|
46,207
|
|
|
Interest expense
|
|
3,952
|
|
|
5,618
|
|
|
7,920
|
|
|
10,220
|
|
|
Interest income
|
|
(312
|
)
|
|
(225
|
)
|
|
(608
|
)
|
|
(497
|
)
|
|
Other income, net
|
|
(87
|
)
|
|
(68
|
)
|
|
(408
|
)
|
|
(63
|
)
|
|
|
Income before income tax expense
|
|
5,975
|
|
|
17,584
|
|
|
15,508
|
|
|
36,547
|
|
|
Income tax expense
|
|
2,590
|
|
|
7,598
|
|
|
6,690
|
|
|
15,655
|
|
|
|
Net income
|
|
$3,385
|
|
|
$9,986
|
|
|
$8,818
|
|
|
$20,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share
|
|
$0.07
|
|
|
$0.21
|
|
|
$0.18
|
|
|
$0.45
|
|
|
Shares used in computing income per basic share
|
|
48,213
|
|
|
46,511
|
|
|
47,828
|
|
|
46,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share
|
|
$0.07
|
|
|
$0.21
|
|
|
$0.18
|
|
|
$0.44
|
|
|
Shares used in computing income per diluted share
|
|
49,756
|
|
|
48,257
|
|
|
49,604
|
|
|
47,548
|
|
|
|
|
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended June 30, 2009
|
|
For the quarter ended June 30, 2008
|
|
|
|
|
|
Adjusted
|
|
Adjustments
|
|
Reported
|
|
Adjusted
|
|
Adjustments
|
|
Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before reimbursements
|
|
$157,332
|
|
|
|
|
$157,332
|
|
|
$189,385
|
|
|
|
|
$189,385
|
|
|
Reimbursements
|
|
|
16,224
|
|
|
|
|
|
16,224
|
|
|
|
22,023
|
|
|
|
|
|
22,023
|
|
|
|
|
Total revenues
|
|
|
173,556
|
|
|
|
|
|
173,556
|
|
|
|
211,408
|
|
|
|
|
|
211,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services before reimbursable expenses
|
|
|
101,967
|
|
|
|
|
|
101,967
|
|
|
|
113,852
|
|
|
|
|
|
113,852
|
|
|
Reimbursable expenses
|
|
|
16,224
|
|
|
|
|
|
16,224
|
|
|
|
22,023
|
|
|
|
|
|
22,023
|
|
|
|
|
Total costs of services
|
|
|
118,191
|
|
|
|
|
|
118,191
|
|
|
|
135,875
|
|
|
|
|
|
135,875
|
|
|
General and administrative expenses
|
|
|
33,513
|
|
|
|
|
|
33,513
|
|
|
|
41,071
|
|
|
|
|
|
41,071
|
|
|
Depreciation expense
|
|
|
4,320
|
|
|
|
|
|
4,320
|
|
|
|
4,381
|
|
|
|
|
|
4,381
|
|
|
Amortization expense
|
|
|
3,392
|
|
|
|
|
|
3,392
|
|
|
|
4,597
|
|
|
|
|
|
4,597
|
|
|
Other operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office consolidation
|
|
|
-
|
|
|
$4,612
|
|
|
|
4,612
|
|
|
|
-
|
|
|
$2,575
|
|
|
|
2,575
|
|
|
|
|
Operating income
|
|
|
14,140
|
|
|
|
(4,612
|
)
|
|
|
9,528
|
|
|
|
25,484
|
|
|
|
(2,575
|
)
|
|
|
22,909
|
|
|
Interest expense
|
|
|
3,952
|
|
|
|
|
|
3,952
|
|
|
|
5,618
|
|
|
|
|
|
5,618
|
|
|
Interest income
|
|
|
(312
|
)
|
|
|
|
|
(312
|
)
|
|
|
(225
|
)
|
|
|
|
|
(225
|
)
|
|
Other income, net
|
|
|
(87
|
)
|
|
|
|
|
(87
|
)
|
|
|
(68
|
)
|
|
|
|
|
(68
|
)
|
|
|
|
Income before income tax expense
|
|
|
10,587
|
|
|
|
(4,612
|
)
|
|
|
5,975
|
|
|
|
20,159
|
|
|
|
(2,575
|
)
|
|
|
17,584
|
|
|
Income tax expense
|
|
|
4,450
|
|
|
|
(1,860
|
)
|
|
|
2,590
|
|
|
|
8,636
|
|
|
|
(1,038
|
)
|
|
|
7,598
|
|
|
|
|
Net income
|
|
$6,137
|
|
|
|
($2,752
|
)
|
|
$3,385
|
|
|
$11,523
|
|
|
|
($1,537
|
)
|
|
$9,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share (EPS) (3)
|
|
$0.12
|
|
|
|
|
$0.07
|
|
|
$0.24
|
|
|
|
|
$0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income per diluted share
|
|
|
49,756
|
|
|
|
|
|
49,756
|
|
|
|
48,257
|
|
|
|
|
|
48,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of revenues before reimbursements :
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services before reimbursable expenses
|
|
|
65
|
%
|
|
|
|
|
65
|
%
|
|
|
60
|
%
|
|
|
|
|
60
|
%
|
|
Reimbursable expenses
|
|
|
10
|
%
|
|
|
|
|
10
|
%
|
|
|
12
|
%
|
|
|
|
|
12
|
%
|
|
General and administrative expenses
|
|
|
21
|
%
|
|
|
|
|
21
|
%
|
|
|
22
|
%
|
|
|
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (4)
|
|
|
14
|
%
|
|
|
|
|
11
|
%
|
|
|
18
|
%
|
|
|
|
|
17
|
%
|
|
Operating income
|
|
|
9
|
%
|
|
|
|
|
6
|
%
|
|
|
13
|
%
|
|
|
|
|
12
|
%
|
|
Net income
|
|
|
4
|
%
|
|
|
|
|
2
|
%
|
|
|
6
|
%
|
|
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (4) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (4)
|
|
$21,852
|
|
|
|
($4,225
|
)
|
|
$17,627
|
|
|
$34,462
|
|
|
|
($1,955
|
)
|
|
$32,507
|
|
|
|
|
Depreciation
|
|
|
4,320
|
|
|
|
|
|
4,320
|
|
|
|
4,381
|
|
|
|
|
|
4,381
|
|
|
|
|
Accelerated Depreciation - Office consolidation
|
|
|
-
|
|
|
|
(387
|
)
|
|
|
387
|
|
|
|
-
|
|
|
|
(620
|
)
|
|
|
620
|
|
|
|
|
Amortization
|
|
|
3,392
|
|
|
|
|
|
3,392
|
|
|
|
4,597
|
|
|
|
|
|
4,597
|
|
|
|
|
Operating income
|
|
$14,140
|
|
|
|
($4,612
|
)
|
(1)
|
$9,528
|
|
|
$25,484
|
|
|
|
($2,575
|
)
|
(2)
|
$22,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
During the second quarter of 2009 the Company recorded office
consolidation costs of $4.6 million associated with real estate
rationalization, including office closure costs, leasehold
improvement write downs and accelerated depreciation on leasehold
improvements.
|
|
|
|
|
|
(2)
|
|
During the second quarter of 2008 the Company recorded office
consolidation costs of $2.6 million associated with real estate
rationalization, including office closure costs, leasehold
improvement write downs and accelerated depreciation on leasehold
improvements
|
|
|
|
|
|
(3)
|
|
The Company recorded severance costs of $1.3 million and $1.4
million during the second quarters of 2009 and 2008 respectively.
After reducing the severance costs to reflect the tax benefit on
such costs of approximately 40%, the net income impact of the
severance costs were $0.8 million during the second quarters of 2009
and 2008.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
Severance costs
|
|
$
|
1,340
|
|
|
$
|
1,369
|
|
|
|
|
|
|
|
|
|
|
Tax benefit of severance costs at 40%
|
|
|
(536
|
)
|
|
|
(548
|
)
|
|
|
|
|
|
|
|
|
|
Net income impact of severance costs
|
|
$
|
804
|
|
|
$
|
821
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income per diluted share
|
|
|
49,756
|
|
|
|
48,257
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share impact of severance costs
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
$
|
6,137
|
|
|
$
|
11,523
|
|
|
|
|
|
|
|
|
|
|
Net income impact of severance costs
|
|
|
804
|
|
|
|
821
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, excluding the net income impact of severance
costs
|
|
$
|
6,941
|
|
|
$
|
12,344
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income per diluted share
|
|
|
49,756
|
|
|
|
48,257
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted income per share, excluding the impact of severance
costs
|
|
$
|
0.14
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
EBITDA (earnings before interest, taxes, depreciation and
amortization) is not a measure of financial performance under
generally accepted accounting principles (GAAP). The Company
believes EBITDA is useful supplemental information for investors to
evaluate financial performance. This data is also used by the
Company for assessment of its operating and financial results, in
addition to operating income, net income and other GAAP measures.
Management believes EBITDA is a useful indicator of the Company’s
financial and operating performance and its ability to generate cash
flows from operations that are available for taxes and capital
expenditures. Investors should recognize that EBITDA might not be
comparable to similarly-titled measures of other companies. This
measure should be considered in addition to, and not as a substitute
for or superior to, any measure of performance prepared in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2009
|
|
For the six months ended June 30, 2008
|
|
|
|
|
|
Adjusted
|
|
Adjustments
|
|
Reported
|
|
Adjusted
|
|
Adjustments
|
|
Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue before reimbursements
|
|
$324,544
|
|
|
|
|
$324,544
|
|
|
$373,679
|
|
|
|
|
$373,679
|
|
|
Reimbursements
|
|
|
31,374
|
|
|
|
|
|
31,374
|
|
|
|
44,868
|
|
|
|
|
|
44,868
|
|
|
|
|
Total revenues
|
|
|
355,918
|
|
|
|
|
|
355,918
|
|
|
|
418,547
|
|
|
|
|
|
418,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services before reimbursable expenses
|
|
|
212,234
|
|
|
|
|
|
212,234
|
|
|
|
226,925
|
|
|
|
|
|
226,925
|
|
|
Reimbursable expenses
|
|
|
31,374
|
|
|
|
|
|
31,374
|
|
|
|
44,868
|
|
|
|
|
|
44,868
|
|
|
|
|
Total costs of services
|
|
|
243,608
|
|
|
|
|
|
243,608
|
|
|
|
271,793
|
|
|
|
|
|
271,793
|
|
|
General and administrative expenses
|
|
|
68,406
|
|
|
|
|
|
68,406
|
|
|
|
79,084
|
|
|
|
|
|
79,084
|
|
|
Depreciation expense
|
|
|
8,960
|
|
|
|
|
|
8,960
|
|
|
|
8,546
|
|
|
|
|
|
8,546
|
|
|
Amortization expense
|
|
|
7,012
|
|
|
|
|
|
7,012
|
|
|
|
8,824
|
|
|
|
|
|
8,824
|
|
|
Other operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office consolidation
|
|
|
-
|
|
|
$5,520
|
|
|
|
5,520
|
|
|
|
-
|
|
|
$4,093
|
|
|
|
4,093
|
|
|
|
|
Operating income
|
|
|
27,932
|
|
|
|
(5,520
|
)
|
|
|
22,412
|
|
|
|
50,300
|
|
|
|
(4,093
|
)
|
|
|
46,207
|
|
|
Interest expense
|
|
|
7,920
|
|
|
|
|
|
7,920
|
|
|
|
10,220
|
|
|
|
|
|
10,220
|
|
|
Interest income
|
|
|
(608
|
)
|
|
|
|
|
(608
|
)
|
|
|
(497
|
)
|
|
|
|
|
(497
|
)
|
|
Other income, net
|
|
|
(408
|
)
|
|
|
|
|
(408
|
)
|
|
|
(63
|
)
|
|
|
|
|
(63
|
)
|
|
|
|
Income before income tax expense
|
|
|
21,028
|
|
|
|
(5,520
|
)
|
|
|
15,508
|
|
|
|
40,640
|
|
|
|
(4,093
|
)
|
|
|
36,547
|
|
|
Income tax expense
|
|
|
8,916
|
|
|
|
(2,226
|
)
|
|
|
6,690
|
|
|
|
17,306
|
|
|
|
(1,651
|
)
|
|
|
15,655
|
|
|
|
|
Net income
|
|
$12,112
|
|
|
|
($3,294
|
)
|
|
$8,818
|
|
|
$23,334
|
|
|
|
($2,442
|
)
|
|
$20,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share (EPS) (3)
|
|
$0.24
|
|
|
|
|
$0.18
|
|
|
$0.49
|
|
|
|
|
$0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income per diluted share
|
|
|
49,604
|
|
|
|
|
|
49,604
|
|
|
|
47,548
|
|
|
|
|
|
47,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of revenues before reimbursements :
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services before reimbursable expenses
|
|
|
65
|
%
|
|
|
|
|
65
|
%
|
|
|
61
|
%
|
|
|
|
|
61
|
%
|
|
Reimbursable expenses
|
|
|
10
|
%
|
|
|
|
|
10
|
%
|
|
|
12
|
%
|
|
|
|
|
12
|
%
|
|
General and administrative expenses
|
|
|
21
|
%
|
|
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (4)
|
|
|
14
|
%
|
|
|
|
|
12
|
%
|
|
|
18
|
%
|
|
|
|
|
17
|
%
|
|
Operating income
|
|
|
9
|
%
|
|
|
|
|
7
|
%
|
|
|
13
|
%
|
|
|
|
|
12
|
%
|
|
Net income
|
|
|
4
|
%
|
|
|
|
|
3
|
%
|
|
|
6
|
%
|
|
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (4) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (4)
|
|
$43,904
|
|
|
|
($4,525
|
)
|
|
$39,379
|
|
|
$67,670
|
|
|
|
($2,605
|
)
|
|
$65,065
|
|
|
|
|
Depreciation
|
|
|
8,960
|
|
|
|
|
|
8,960
|
|
|
|
8,546
|
|
|
|
|
|
8,546
|
|
|
|
|
Accelerated Depreciation - Office consolidation
|
|
|
-
|
|
|
|
(995
|
)
|
|
|
995
|
|
|
|
-
|
|
|
|
(1,488
|
)
|
|
|
1,488
|
|
|
|
|
Amortization
|
|
|
7,012
|
|
|
|
|
|
7,012
|
|
|
|
8,824
|
|
|
|
|
|
8,824
|
|
|
|
|
Operating income
|
|
$27,932
|
|
|
|
($5,520
|
)
|
(1)
|
$22,412
|
|
|
$50,300
|
|
|
|
($4,093
|
)
|
(2)
|
$46,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
During the six months ended for 2009 the Company recorded office
consolidation costs of $5.5 million associated with real estate
rationalization, including office closure costs, leasehold
improvement write downs and accelerated depreciation on leasehold
improvements.
|
|
|
|
|
|
(2)
|
|
During the six months ended for 2008 the Company recorded office
consolidation costs of $4.1 million associated with real estate
rationalization, including office closure costs, leasehold
improvement write downs and accelerated depreciation on leasehold
improvements
|
|
|
|
|
|
(3)
|
|
The Company recorded severance costs of $4.3 million and $1.7
million during the six months ended for 2009 and 2008 respectively.
After reducing the severance costs to reflect the tax benefit on
such costs of approximately 40%, the net income impact of the
severance costs were $2.6 million and $1.0 million during the six
months ended for 2009 and 2008 respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
Severance costs
|
|
$
|
4,347
|
|
|
$
|
1,711
|
|
|
|
|
|
|
|
|
|
|
Tax benefit of severance costs at 40%
|
|
|
(1,739
|
)
|
|
|
(684
|
)
|
|
|
|
|
|
|
|
|
|
Net income impact of severance costs
|
|
$
|
2,608
|
|
|
$
|
1,027
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income per diluted share
|
|
|
49,604
|
|
|
|
47,548
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share impact of severance costs
|
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
$
|
12,112
|
|
|
$
|
23,334
|
|
|
|
|
|
|
|
|
|
|
Net income impact of severance costs
|
|
|
2,608
|
|
|
|
1,027
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, excluding the net income impact of severance
costs
|
|
$
|
14,720
|
|
|
$
|
24,361
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income per diluted share
|
|
|
49,604
|
|
|
|
47,548
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted income per share, excluding the impact of severance
costs
|
|
$
|
0.30
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
EBITDA (earnings before interest, taxes, depreciation and
amortization) is not a measure of financial performance under
generally accepted accounting principles (GAAP). The Company
believes EBITDA is useful supplemental information for investors to
evaluate financial performance. This data is also used by the
Company for assessment of its operating and financial results, in
addition to operating income, net income and other GAAP measures.
Management believes EBITDA is a useful indicator of the Company’s
financial and operating performance and its ability to generate cash
flows from operations that are available for taxes and capital
expenditures. Investors should recognize that EBITDA might not be
comparable to similarly-titled measures of other companies. This
measure should be considered in addition to, and not as a substitute
for or superior to, any measure of performance prepared in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS AND SELECTED DATA
|
|
(In thousands, except DSO data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
March 31,
|
|
Current assets:
|
|
2009
|
|
2008
|
|
2008
|
|
2009
|
|
Cash and cash equivalents
|
|
$
|
5,132
|
|
|
$
|
10,320
|
|
|
$
|
23,134
|
|
|
$
|
6,743
|
|
|
Accounts receivable, net
|
|
|
187,201
|
|
|
|
219,868
|
|
|
|
170,464
|
|
|
|
188,824
|
|
|
Prepaid expenses and other current assets
|
|
|
15,617
|
|
|
|
17,071
|
|
|
|
13,455
|
|
|
|
19,414
|
|
|
Deferred income tax assets
|
|
|
19,367
|
|
|
|
19,026
|
|
|
|
21,494
|
|
|
|
15,504
|
|
|
Total current assets
|
|
|
227,317
|
|
|
|
266,285
|
|
|
|
228,547
|
|
|
|
230,485
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
47,045
|
|
|
|
49,473
|
|
|
|
45,151
|
|
|
|
45,532
|
|
|
Intangible assets, net
|
|
|
33,956
|
|
|
|
52,903
|
|
|
|
38,108
|
|
|
|
34,109
|
|
|
Goodwill
|
|
|
475,777
|
|
|
|
483,343
|
|
|
|
463,058
|
|
|
|
463,176
|
|
|
Other assets
|
|
|
15,592
|
|
|
|
19,867
|
|
|
|
17,529
|
|
|
|
16,095
|
|
|
Total assets
|
|
$
|
799,687
|
|
|
$
|
871,871
|
|
|
$
|
792,393
|
|
|
$
|
789,397
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,545
|
|
|
$
|
9,297
|
|
|
$
|
8,511
|
|
|
$
|
10,634
|
|
|
Accrued liabilities
|
|
|
9,404
|
|
|
|
12,316
|
|
|
|
10,086
|
|
|
|
9,731
|
|
|
Accrued compensation-related costs
|
|
|
43,602
|
|
|
|
55,402
|
|
|
|
72,701
|
|
|
|
40,806
|
|
|
Income taxes payable
|
|
|
557
|
|
|
|
7,941
|
|
|
|
1,371
|
|
|
|
-
|
|
|
Notes payable
|
|
|
4,170
|
|
|
|
6,343
|
|
|
|
4,173
|
|
|
|
3,587
|
|
|
Term loan - current
|
|
|
2,250
|
|
|
|
2,250
|
|
|
|
2,250
|
|
|
|
2,250
|
|
|
Other current liabilities
|
|
|
37,106
|
|
|
|
39,094
|
|
|
|
31,467
|
|
|
|
28,601
|
|
|
Total current liabilities
|
|
|
106,634
|
|
|
|
132,643
|
|
|
|
130,559
|
|
|
|
95,609
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
Deferred income tax liabilities
|
|
|
30,121
|
|
|
|
29,071
|
|
|
|
28,511
|
|
|
|
26,687
|
|
|
Other non-current liabilities
|
|
|
25,022
|
|
|
|
31,989
|
|
|
|
37,336
|
|
|
|
36,589
|
|
|
Notes payable
|
|
|
-
|
|
|
|
4,844
|
|
|
|
-
|
|
|
|
-
|
|
|
Term loan non-current
|
|
|
218,250
|
|
|
|
220,500
|
|
|
|
219,375
|
|
|
|
218,813
|
|
|
Bank debt non-current
|
|
|
19,217
|
|
|
|
86,287
|
|
|
|
10,854
|
|
|
|
39,459
|
|
|
Total non-current liabilities
|
|
|
292,610
|
|
|
|
372,691
|
|
|
|
296,076
|
|
|
|
321,548
|
|
|
Total liabilities
|
|
|
399,244
|
|
|
|
505,334
|
|
|
|
426,635
|
|
|
|
417,157
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
|
60
|
|
|
|
58
|
|
|
|
59
|
|
|
|
59
|
|
|
Additional paid-in capital
|
|
|
556,036
|
|
|
|
549,549
|
|
|
|
555,737
|
|
|
|
557,267
|
|
|
Deferred stock issuance, net
|
|
|
-
|
|
|
|
1,853
|
|
|
|
985
|
|
|
|
699
|
|
|
Treasury stock
|
|
|
(218,798
|
)
|
|
|
(239,687
|
)
|
|
|
(231,071
|
)
|
|
|
(229,626
|
)
|
|
Retained earnings
|
|
|
78,057
|
|
|
|
50,074
|
|
|
|
69,239
|
|
|
|
74,672
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(14,912
|
)
|
|
|
4,690
|
|
|
|
(29,191
|
)
|
|
|
(30,831
|
)
|
|
Total stockholders' equity
|
|
|
400,443
|
|
|
|
366,537
|
|
|
|
365,758
|
|
|
|
372,240
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
799,687
|
|
|
$
|
871,871
|
|
|
$
|
792,393
|
|
|
$
|
789,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding, net (DSO) 1
|
|
|
91
|
|
|
|
85
|
|
|
|
73
|
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Net of deferred revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIGANT CONSULTING, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
Dollars in 000s (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$3,385
|
|
|
$9,986
|
|
|
$8,818
|
|
|
$20,892
|
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
used in operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
4,320
|
|
|
4,381
|
|
|
8,960
|
|
|
8,546
|
|
|
Depreciation expense - office consolidation
|
|
387
|
|
|
620
|
|
|
995
|
|
|
1,488
|
|
|
Amortization expense
|
|
3,392
|
|
|
4,597
|
|
|
7,012
|
|
|
8,824
|
|
|
Share-based compensation expense
|
|
1,959
|
|
|
3,044
|
|
|
4,465
|
|
|
6,577
|
|
|
Accretion of interest expense
|
|
221
|
|
|
167
|
|
|
499
|
|
|
343
|
|
|
Allowance for doubtful accounts receivable
|
|
4,356
|
|
|
7,399
|
|
|
8,110
|
|
|
9,470
|
|
|
Deferred income taxes
|
|
(1,306
|
)
|
|
(5,101
|
)
|
|
1,472
|
|
|
(4,579
|
)
|
|
Other, net
|
|
-
|
|
|
(28
|
)
|
|
-
|
|
|
(14
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
1,294
|
|
|
(4,891
|
)
|
|
(21,358
|
)
|
|
(24,325
|
)
|
|
Prepaid expenses and other assets
|
|
2,196
|
|
|
(14,981
|
)
|
|
(74
|
)
|
|
(19,017
|
)
|
|
Accounts payable
|
|
(1,223
|
)
|
|
540
|
|
|
932
|
|
|
1,525
|
|
|
Accrued liabilities
|
|
(257
|
)
|
|
582
|
|
|
(591
|
)
|
|
2,246
|
|
|
Accrued compensation-related costs
|
|
2,319
|
|
|
6,977
|
|
|
(29,523
|
)
|
|
(12,971
|
)
|
|
Income taxes payable
|
|
2,723
|
|
|
(1,616
|
)
|
|
902
|
|
|
2,758
|
|
|
Other liabilities
|
|
3,611
|
|
|
1,787
|
|
|
2,147
|
|
|
(2,331
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
27,377
|
|
|
13,463
|
|
|
(7,234
|
)
|
|
(568
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(6,644
|
)
|
|
(1,433
|
)
|
|
(12,352
|
)
|
|
(3,964
|
)
|
|
Acquisition of business
|
|
-
|
|
|
(50,000
|
)
|
|
(1,875
|
)
|
|
(50,000
|
)
|
|
Payments of acquisition liabilities
|
|
-
|
|
|
(2,000
|
)
|
|
(2,821
|
)
|
|
(3,154
|
)
|
|
Other, net
|
|
(69
|
)
|
|
(352
|
)
|
|
(109
|
)
|
|
(352
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(6,713
|
)
|
|
(53,785
|
)
|
|
(17,157
|
)
|
|
(57,470
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Issuances of common stock
|
|
645
|
|
|
1,515
|
|
|
2,317
|
|
|
4,078
|
|
|
Payments of notes payable
|
|
-
|
|
|
-
|
|
|
(355
|
)
|
|
(499
|
)
|
|
Borrowings from banks, net of repayments
|
|
(22,689
|
)
|
|
41,847
|
|
|
6,113
|
|
|
53,599
|
|
|
Payments of term loan installments
|
|
(563
|
)
|
|
(563
|
)
|
|
(1,125
|
)
|
|
(1,125
|
)
|
|
Other, net
|
|
(108
|
)
|
|
211
|
|
|
(814
|
)
|
|
649
|
|
|
Net cash provided by (used in) financing activities
|
|
(22,715
|
)
|
|
43,010
|
|
|
6,136
|
|
|
56,702
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
440
|
|
|
-
|
|
|
253
|
|
|
-
|
|
|
Net decrease in cash and cash equivalents
|
|
(1,611
|
)
|
|
2,688
|
|
|
(18,002
|
)
|
|
(1,336
|
)
|
|
Cash and cash equivalents at beginning of the period
|
|
6,743
|
|
|
7,632
|
|
|
23,134
|
|
|
11,656
|
|
|
Cash and cash equivalents at end of the period
|
|
$5,132
|
|
|
$10,320
|
|
|
$5,132
|
|
|
$10,320
|
|
Navigant Consulting, Inc.
Thomas A. Nardi
Executive Vice
President and Chief Financial Officer
312.573.5612
thomas.nardi@navigantconsulting.com
or
Andrew
J. Bosman
Executive Director, Marketing/Communications
312.573.5631
abosman@navigantconsulting.com
