Navigant (NYSE: NCI) today announced financial results for the
fourth quarter and full year ended December 31, 2014. The Company
also introduced its business and financial outlook for 2015.
Financial Summary and Highlights:
- Fourth quarter 2014 revenues before
reimbursements (RBR) increased 12% year-over-year to $199.5
million, and total revenues increased 9% year-over-year to $223.6
million; net income from continuing operations was $12.3 million or
$0.25 per share; adjusted earnings per share (EPS) increased 12%
year-over-year to $0.28, and adjusted EBITDA increased 1%
year-over-year to $30.2 million.
- Fourth quarter 2014 RBR results
included organic growth of 2% year-over-year, highlighted by an
increase in organic growth in three out of four segments.
- Full year 2014 RBR increased 4%
year-over-year to $766.6 million, and total revenues increased 3%
year-over-year to $859.6 million; net loss from continuing
operations was $36.9 million, or $0.76 per share, which included a
goodwill impairment charge of $122.0 million recorded in second
quarter 2014; adjusted EPS was $1.02, and adjusted EBITDA was
$116.2 million.
- Bank debt lowered to $109.8 million
during fourth quarter 2014, which decreased leverage (bank debt
divided by trailing twelve month adjusted EBITDA) to 0.94 on a
sequential basis from the 2014 third quarter.
- 449,191 shares of common stock
repurchased in fourth quarter 2014 at an average cost of $14.44 per
share for a total of approximately 1.7 million shares repurchased
in 2014 at an average cost of $16.50 per share.
Navigant reported fourth quarter 2014 RBR of $199.5 million, a
12% increase compared to $177.8 million for fourth quarter 2013,
with year-over-year RBR growth in three segments. Total revenues
increased 9% to $223.6 million for fourth quarter 2014 compared to
$204.8 million for fourth quarter 2013. Net income from continuing
operations for fourth quarter 2014 was $12.3 million, or $0.25 per
share, compared to $14.2 million, or $0.28 per share, in the prior
year quarter. The effective income tax rate was 38% for fourth
quarter 2014 compared to 45% in the prior year quarter. Adjusted
EPS increased 12% to $0.28 for fourth quarter 2014 compared to
$0.25 for fourth quarter 2013. Adjusted EBITDA increased 1% to
$30.2 million for fourth quarter 2014 compared to $29.8 million for
the same period in 2013.
RBR for full year 2014 improved 4% on a year-over-year basis to
$766.6 million compared to $734.4 million for 2013. Total revenues
also improved 3% on a year-over-year basis to $859.6 million for
full year 2014 compared to $835.6 million for the prior year. Net
loss from continuing operations for full year 2014 was $36.9
million, or $0.76 per share, which included a goodwill impairment
charge of $122.0 million recorded in second quarter 2014, compared
to net income from continuing operations of $55.1 million, or $1.08
per share, in the prior year. Adjusted EPS for full year 2014 was
$1.02 compared to $1.06 for 2013. Adjusted EBITDA was $116.2
million for full year 2014 compared to $124.1 million in 2013.
Adjusted EBITDA margin (adjusted EBITDA as a percentage of RBR) was
15% for full year 2014.
Julie Howard, Chairman and Chief Executive
Officer, commented, “Fourth quarter results were as expected
with year-over-year growth in three of our four reporting segments.
As we reflect on 2014, we are pleased with the trends in our
organic growth performance over the course of the year.
Additionally, we have high expectations as we enter 2015 about our
prospects to build on the strong foundation and combination of
specialized consulting, technology solutions and business process
management services we now have in place.”
Howard continued, “We expect the anticipated market trends,
industry reforms and regulatory environments facing our clients
will lead to increasing demand for our complementary mix of
expertise and solutions that address business risk, business
performance and business transformation.”
Segment Financial
Summary
For the quarter ended For the full year ended
December 31, December 31, 2014 2013
Change 2014 2013 Change
RBR
($000) Disputes, Investigations & Economics $
77,382 $ 72,852 6.2% $ 309,570 $ 301,545 2.7% Financial, Risk &
Compliance 34,643 37,691 -8.1% 135,498 155,656 -13.0% Healthcare
61,672 44,298 39.2% 223,817 182,783 22.4% Energy
25,761 22,948 12.3% 97,667
94,449 3.4% Total Company $ 199,458
$ 177,789 12.2% $ 766,552 $ 734,433
4.4%
Total Revenues ($000) Disputes, Investigations
& Economics $ 83,227 $ 78,700 5.8% $ 333,273 $ 326,130 2.2%
Financial, Risk & Compliance 41,537 47,180 -12.0% 162,637
190,116 -14.5% Healthcare 68,218 49,920 36.7% 248,095 205,215 20.9%
Energy 30,651 29,024 5.6%
115,612 114,124 1.3% Total Company
$ 223,633 $ 204,824 9.2% $ 859,617
$ 835,585 2.9%
Segment Operating Profit ($000)
Disputes, Investigations & Economics $ 26,271 $ 22,880 14.8% $
104,466 $ 99,828 4.6% Financial, Risk & Compliance 14,674
14,590 0.6% 58,929 62,487 -5.7% Healthcare 16,874 15,815 6.7%
65,104 67,696 -3.8% Energy 8,245 7,441
10.8% 30,507 31,280 -2.5%
Total Company $ 66,064 $ 60,726 8.8% $
259,006 $ 261,291 -0.9%
Segment Operating Margin
(% of RBR) Disputes, Investigations & Economics 33.9% 31.4%
33.7% 33.1% Financial, Risk & Compliance 42.4% 38.7% 43.5%
40.1% Healthcare 27.4% 35.7% 29.1% 37.0% Energy 32.0%
32.4% 31.2%
33.1% Total Company 33.1%
34.2% 33.8% 35.6%
RBR for the Healthcare segment increased 39% year-over-year for
fourth quarter 2014 with 1% organic RBR growth for the period. RBR
growth was driven primarily by business process management
services, which includes the Cymetrix operations acquired in May
2014. Segment operating profit margin was 27% versus 36% in the
same period last year, mainly due to the lower margin profile of
the business process management services operations. For full year
2014, RBR increased 22% year-over-year, also primarily driven by
the business process management services operations. Segment
operating profit margin was 29% in 2014 compared to 37% in 2013, as
a result of the lower margin profile of the business process
management services operations in addition to costs of maintaining
consulting capabilities despite lower than anticipated levels of
RBR.
The Financial, Risk & Compliance segment RBR for fourth
quarter 2014 decreased 8% compared to the prior year quarter.
Growth driven by continued demand from large financial institutions
was offset by a previously anticipated reduction in RBR from
restructuring-related services. Growth of more profitable
engagements led to a 1% increase in fourth quarter 2014 segment
operating profit year-over-year. For full year 2014, an RBR
decrease of 13% and a segment operating profit decrease of 6%,
respectively, were substantially less than anticipated as compared
to 2013. Segment performance for the year reflects the expected
reduced contribution from mortgage servicing review engagements and
restructuring-related services, partially offset by new compliance
work from large financial institutions.
The Energy segment RBR for fourth quarter 2014 increased 12%,
which was entirely organic, compared to fourth quarter 2013. The
segment benefitted from investments made in senior hires earlier in
the year in addition to the continued demand for energy efficiency
and demand-side energy management services. Fourth quarter 2014
segment operating profit increased 11% year-over-year. Full year
2014 RBR increased 3%, which was entirely organic, versus the prior
year. Segment operating profit for full year 2014 declined 2%
compared to 2013, mainly due to investments in senior hires during
the first half of 2014.
The Disputes, Investigations & Economics segment fourth
quarter 2014 RBR increased 6% year-over-year, which was nearly all
organic. The increase was driven primarily by higher demand for our
legal technology solutions and general litigation, and increased
activity in global construction, which included a success fee of
$1.9 million, partially offset by a lower contribution from
economics engagements. Segment operating profit increased 15% in
fourth quarter 2014 compared to the same period of 2013. Full year
2014 RBR increased 3% compared to 2013. Segment operating profit
for 2014 increased 5% compared to 2013.
Cash Flow
Free cash flow was $12.7 million for fourth quarter 2014
compared to $15.2 million for the same period in 2013. Full year
2014 free cash flow was $72.4 million compared to $78.8 million for
2013. Days Sales Outstanding (DSO) was 69 days as of December 31,
2014, up 4 days compared to December 31, 2013, reflecting the very
strong cash collections in fourth quarter 2013.
Bank debt was $109.8 million at December 31, 2014 compared to
$56.7 million at December 31, 2013. Leverage (bank debt divided by
trailing twelve month adjusted EBITDA) was 0.94 at December 31,
2014 compared to 0.46 at December 31, 2013. However, 2014 fourth
quarter debt levels declined sequentially from the 2014 second and
third quarters following additional borrowings to fund the Cymetrix
acquisition in second quarter 2014.
Navigant repurchased 449,191 shares of common stock during
fourth quarter 2014 at an aggregate cost of $6.5 million and an
average cost of $14.44 per share. For the full year, the Company
repurchased approximately 1.7 million shares at an aggregate cost
of $27.3 million and an average cost of $16.50 per share. As of
December 31, 2014, $72.7 million was available under the Company’s
share repurchase authorization.
“We made significant progress in advancing our growth strategy
during 2014,” said Lucinda (Cindy) Baier, Executive Vice President
and Chief Financial Officer. “In particular, we completed strategic
acquisitions and made organic investments to both complement and
enhance our core businesses. As always, we remained intensely
focused on strong capital management while investing in our future.
Looking ahead, we are focused on generating improved organic
revenue growth in 2015 and further positioning the company for
success over the long term.”
2015 Outlook
Navigant is introducing its 2015 financial outlook. Full year
2015 RBR is expected to range between $815 and $845 million while
2015 total revenues are estimated to be between $900 and $930
million. Adjusted EBITDA is expected to range between $115 and $125
million and adjusted EPS is estimated to be between $0.90 and
$1.00.
Non-GAAP Financial
Information
This press release includes certain non-GAAP financial measures
as defined by the Securities and Exchange Commission.
Reconciliations of these non-GAAP financial measures to the most
directly comparable financial measure calculated and presented in
accordance with generally accepted accounting principles (GAAP) are
included in the financial schedules attached to this press release.
This information should be considered as supplemental in nature and
not as a substitute for, or superior to, any measure of performance
prepared in accordance with GAAP.
Conference Call Details
Julie Howard and Cindy Baier will host a conference call to
discuss the Company’s fourth quarter and full year 2014 results at
10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Thursday,
February 12, 2015. The conference call may be accessed via the
Navigant website (www.navigant.com/investor_relations) or by
dialing 888.989.6515 (630.395.0130 for international callers) and
referencing pass code “NCI.” An archived version of the webcast
will also be available via the Navigant website. A report of
financial and related supplemental information is also available
via the Navigant website.
About Navigant
Navigant (NYSE: NCI) is a specialized, global professional
services firm dedicated to assisting clients in creating and
protecting value in the face of critical business risks and
opportunities. Through senior level engagement with clients,
Navigant professionals deliver expert and advisory work through
implementation and business process management services. The firm
combines deep technical expertise in Disputes and Investigations,
Economics, Financial Advisory and Management Consulting, with
business pragmatism to address clients’ needs in highly regulated
industries, including Construction, Energy, Financial Services and
Healthcare. More information about Navigant can be found at
navigant.com.
Statements included in this press release which are not
historical in nature are forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may generally be identified by words
such as “anticipate,” “believe,” “intend,” “estimate,” “expect,”
“plan,” “outlook” and similar expressions. These statements are
based upon management’s current expectations and speak only 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 contained in or implied by the
forward-looking statements including, without limitation: the
success of the Company’s organizational changes and margin
improvement initiatives; risks inherent in international
operations, including foreign currency fluctuations; ability to
make acquisitions and divestitures; pace, timing and integration of
acquisitions and separation of divestitures; operational risks
associated with new or expanded service areas, including business
process management services; impairments; 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 or large
engagements; 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 market and general economic conditions. Further information on
these and other potential factors that could affect the Company’s
financial results are included under the “Risk Factors” section and
elsewhere in the Company’s filings with the Securities and Exchange
Commission (SEC), which are available on the SEC’s website or at
www.navigant.com/investor_relations.
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.
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In thousands,
except per share data (1)) (Unaudited)
For the quarter ended For the year
ended December 31, December 31, 2014
2013 2014 2013 Revenues:
Revenues before reimbursements $ 199,458 $ 177,789 $ 766,552 $
734,433 Reimbursements 24,175 27,035
93,065 101,152 Total
revenues 223,633 204,824 859,617 835,585 Costs of services: Cost of
services before reimbursable expenses 136,378 120,390 519,157
487,967 Reimbursable expenses 24,175
27,035 93,065 101,152
Total costs of services 160,553 147,425 612,222 589,119 General and
administrative expenses 34,651 28,043 136,057 127,079 Depreciation
expense 5,202 4,228 19,580 16,180 Amortization expense 1,291 1,600
5,959 6,826 Other operating costs (benefit): Contingent acquisition
liability adjustments, net (554 ) (3,399 ) (4,992 ) (5,399 ) Office
consolidation, net 725 - 725 348 Gain on disposition of assets (541
) - (541 ) (1,715 ) Goodwill impairment - - 122,045 - Other
impairment 1,139 - 1,343
- Operating income (loss) 21,167 26,927
(32,781 ) 103,147 Interest expense 1,741 942 5,918 4,433 Interest
income (58 ) (92 ) (274 ) (463 ) Other (income) expense, net
(378 ) 218 (167 ) 175
Income (loss) from continuing operations before income tax
(benefit) expense 19,862 25,859 (38,258 ) 99,002 Income tax
(benefit) expense 7,541 11,640
(1,351 ) 43,890 Net income (loss) from
continuing operations 12,321 14,219 (36,907 ) 55,112 Income (loss)
from discontinued operations, net of tax -
- 509 (2,919 ) Net income
(loss) $ 12,321 $ 14,219 $ (36,398 ) $
52,193 Basic per share data Net income (loss)
from continuing operations $ 0.25 $ 0.29 $ (0.76 ) $ 1.11 Income
(loss) from discontinued operations, net of tax $ - $
- $ 0.01 $ (0.06 ) Net income (loss) (1) $
0.25 $ 0.29 $ (0.75 ) $ 1.05
Shares used in computing basic per share data 48,393 49,174 48,741
49,771 Diluted per share data Net income (loss) from
continuing operations $ 0.25 $ 0.28 $ (0.76 ) $ 1.08 Income (loss)
from discontinued operations, net of tax $ - $ -
$ 0.01 $ (0.06 ) Net income (loss) $ 0.25
$ 0.28 $ (0.75 ) $ 1.02 Shares
used in computing diluted per share data (2) 49,542 50,603 48,741
50,951
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AND SELECTED DATA (In
thousands, except DSO data) December 31,
December 31, 2014 2013
(Unaudited) ASSETS Current assets: Cash and cash equivalents
$ 2,648 $ 1,968 Accounts receivable, net 187,652 167,066 Prepaid
expenses and other current assets 27,142 24,554 Deferred income tax
assets 13,455 17,314 Total
current assets 230,897 210,902 Non-current assets: Property and
equipment, net 60,617 44,338 Intangible assets, net 26,502 10,778
Goodwill 568,091 615,343 Other assets 17,386
22,836 Total assets $ 903,493 $ 904,197
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $ 11,735 $ 13,415 Accrued liabilities
11,311 12,691 Accrued compensation-related costs 83,061 78,610
Income tax payable 1,763 1,137 Other current liabilities
52,526 32,009 Total current liabilities
160,396 137,862 Non-current liabilities: Deferred income tax
liabilities 76,329 86,571 Other non-current liabilities 14,387
26,016 Bank debt non-current 109,790
56,673 Total non-current liabilities 200,506
169,260 Total liabilities 360,902
307,122 Stockholders' equity: Common
stock 64 63 Additional paid-in capital 611,882 598,724 Treasury
stock (275,608 ) (247,106 ) Retained earnings 218,337 254,735
Accumulated other comprehensive loss (12,084 )
(9,341 ) Total stockholders' equity 542,591
597,075 Total liabilities and stockholders' equity $
903,493 $ 904,197
Selected
Data
Days sales outstanding, net (DSO) 69 65
NAVIGANT
CONSULTING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
CASH FLOWS (In thousands) (Unaudited)
For the quarter ended For the year
ended December 31, December 31, 2014
2013 2014 2013
Cash flows from operating activities: Net income (loss) $ 12,321 $
14,219 $ (36,398 ) $ 52,193 Adjustments to reconcile net income
(loss) to net cash provided by operating activities: Depreciation
expense 5,202 4,228 19,580 16,180 Accelerated depreciation - office
consolidation - - - 498 Amortization expense 1,291 1,600 5,959
6,826 Amortization expense - client-facing software 393 222 1,218
459 Share-based compensation expense 2,150 2,885 9,316 11,079
Accretion of interest expense 786 266 2,351 942 Deferred income
taxes 3,150 5,671 (18,052 ) 18,421 Allowance for doubtful accounts
receivable 700 (2,024 ) 5,009 (107 ) Contingent acquisition
liability adjustments, net (554 ) (3,399 ) (4,992 ) (5,399 ) Gain
on disposition of assets (541 ) - (541 ) (1,715 ) (Gain) loss on
disposition of discontinued operations - - (509 ) 3,675 Goodwill
impairment - - 122,045 - Other impairment 1,139 - 1,343 - Changes
in assets and liabilities (net of acquisitions and dispositions):
Accounts receivable 23,678 42,158 (14,844 ) 19,604 Prepaid expenses
and other assets 475 2,160 (303 ) 12,260 Accounts payable 898
(1,249 ) (2,123 ) (4,623 ) Accrued liabilities (191 ) (3,767 )
(1,316 ) (382 ) Accrued compensation-related costs 13,621 11,038
2,712 (3,470 ) Income taxes payable (3,928 ) (6,690 ) 2,185 (6,386
) Other liabilities 2,614 1,813
(2,543 ) (286 ) Net cash provided by
operating activities 63,204 69,131 90,097 119,769 Cash flows
from investing activities: Purchases of property and equipment
(8,441 ) (5,510 ) (23,506 ) (14,217 ) Acquisitions of businesses,
net of cash acquired - - (89,180 ) (2,989 ) Proceeds from
dispositions, net of selling costs 1,500 - 2,324 16,973 Payments of
acquisition liabilities (3,850 ) (5,028 ) (4,960 ) (6,866 )
Capitalized client-facing software (17 ) (793
) (881 ) (3,285 ) Net cash used in
investing activities (10,808 ) (11,331 ) (116,203 ) (10,384 )
Cash flows from financing activities: Issuances of common
stock 402 524 2,833 3,144 Repurchase of common stock (6,487 )
(6,004 ) (27,284 ) (28,325 ) Payments of contingent acquisition
liabilities (357 ) - (464 ) (3,287 ) Repayments to banks (92,173 )
(115,718 ) (323,374 ) (382,045 ) Borrowings from banks 44,892
62,033 377,839 304,499 Payments of debt issuance costs - (62 ) -
(731 ) Other, net (194 ) (141 ) (2,668
) (1,692 ) Net cash (used in) provided by financing
activities (53,917 ) (59,368 ) 26,882
(108,437 ) Effect of exchange rate
changes on cash and cash equivalents (83 ) 17
(96 ) (32 ) Net increase (decrease) in
cash and cash equivalents (1,604 ) (1,551 ) 680 916 Cash and cash
equivalents at beginning of the period 4,252
3,519 1,968 1,052
Cash and cash equivalents at end of the period $ 2,648
$ 1,968 $ 2,648 $ 1,968
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES (3) (In thousands, except per
share data) (Unaudited) This press release
includes certain non-GAAP financial measures as defined by the
Securities and Exchange Commission. Below are the reconciliations
of these non-GAAP financial measures to the most directly
comparable financial measure calculated and presented in accordance
with generally accepted accounting principles (GAAP). This
information should be considered as supplemental in nature and not
as a substitute for, or superior to, any measure of performance
prepared in accordance with GAAP. Management uses these non-GAAP
financial measures in addition to GAAP financial measures to assess
the Company's operations and financial results and believes they
are useful indicators of operating performance and the Company's
ability to generate cash flows from operations that are available
for interest, debt service, taxes and capital expenditures.
Investors should recognize that these non-GAAP financial measures
may not be comparable to similarly-titled measures of other
companies.
EBITDA, adjusted
EBITDA, adjusted Net Income and
For the quarter ended For the year
ended
adjusted Earnings
Per Share (4)
December 31, December 31, 2014
2013 2014 2013 Severance expense $
1,733 $ 421 $ 4,885 $ 4,686 Income tax benefit (5)
(617 ) (170 ) (1,821 )
(1,558 ) Impact of severance expense, net of tax $ 1,116
$ 251 $ 3,064 $ 3,128
Other operating benefit - contingent acquisition liability
adjustment, net $ (554 ) $ (3,399 ) $ (4,992 ) $ (5,399 ) Income
tax expense (5) 224 1,371
2,014 2,178 Impact of other operating
benefit - contingent acquisition liability adjustment, net, net of
tax $ (330 ) $ (2,028 ) $ (2,978 ) $ (3,221 )
Other operating costs - office consolidation $ 725 $ - $ 725 $ 348
Income tax expense (5) (292 ) -
(292 ) (141 ) Impact of other operating costs -
office consolidation, net of tax $ 433 $ - $
433 $ 207 Other operating benefit -
gain on disposition of assets $ (541 ) $ - $ (541 ) $ (1,715 )
Income tax expense (5) 218 -
218 692 Impact of other
operating benefit - gain on disposition of assets, net of tax $
(323 ) $ - $ (323 ) $ (1,023 ) Other
operating costs - goodwill impairment $ - $ - $ 122,045 $ - Income
tax benefit (5) - -
(35,111 ) - Impact of other operating costs -
goodwill impairment, net of tax $ - $ - $
86,934 $ - Other operating costs -
other impairment $ 1,139 $ - $ 1,343 $ - Income tax benefit (5)
(459 ) - (541 ) -
Impact of other operating costs - other impairment, net of
tax $ 680 $ - $ 802 $ -
EBITDA reconciliation: Operating income (loss) $ 21,167 $
26,927 $ (32,781 ) $ 103,147 Depreciation expense 5,202 4,228
19,580 16,180 Accelerated depreciation - office consolidation - - -
498 Amortization expense 1,291 1,600
5,959 6,826 EBITDA $
27,660 $ 32,755 $ (7,242 ) $ 126,651 Severance expense 1,733 421
4,885 4,686 Other operating benefit - contingent acquisition
liability adjustment, net (554 ) (3,399 ) (4,992 ) (5,399 ) Other
operating costs (benefit) - office consolidation 725 - 725 (150 )
Other operating benefit - gain on disposition of assets (541 ) -
(541 ) (1,715 ) Other operating costs - goodwill impairment - -
122,045 - Other operating costs - other impairment 1,139
- 1,343 -
Adjusted EBITDA $ 30,162 $ 29,777 $
116,223 $ 124,073 Net income (loss)
from continuing operations $ 12,321 $ 14,219 $ (36,907 ) $ 55,112
Impact of severance expense, net of tax 1,116 251 3,064 3,128
Impact of other operating benefit - contingent acquisition
liability adjustment, net, net of tax (330 ) (2,028 ) (2,978 )
(3,221 ) Impact of other operating costs - office consolidation,
net of tax 433 - 433 207 Impact of other operating benefit - gain
on disposition of assets, net of tax (323 ) - (323 ) (1,023 )
Impact of other operating costs - goodwill impairment, net of tax -
- 86,934 - Impact of other operating costs - other impairment, net
of tax 680 - 802
- Adjusted net income $ 13,897 $
12,442 $ 51,025 $ 54,203 Shares used in
computing adjusted per diluted share data (6) 49,542 50,603 49,976
50,951 Adjusted earnings per share $ 0.28 $ 0.25
$ 1.02 $ 1.06
For the quarter
ended For the year ended
Free Cash Flow
(7)
December 31, December 31, 2014
2013 2014 2013 Net cash provided by
operating activities $ 63,204 $ 69,131 $ 90,097 $ 119,769 Changes
in assets and liabilities (37,167 ) (45,463 ) 16,232 (16,717 )
Allowance for doubtful accounts receivable (700 ) 2,024 (5,009 )
107 Purchases of property and equipment (8,441 ) (5,510 ) (23,506 )
(14,217 ) Payments of acquisition liabilities (3,850 ) (5,028 )
(4,960 ) (6,866 ) Payments of contingent acquisition liabilities
(357 ) - (464 )
(3,287 ) Free Cash Flow $ 12,689 $ 15,154 $
72,390 $ 78,789
At
Leverage Ratio
(8)
December 31, 2014 2013 Adjusted EBITDA
for prior twelve-month period $ 116,223 $ 124,073 Bank debt $
109,790 $ 56,673 Leverage ratio 0.94 0.46 Footnotes (1) Per
share data may not sum due to rounding. (2) For the year ended
December 31, 2014, the Company reported a net loss. For that
period, the basic weighted average common shares outstanding equals
the diluted weighted average common shares outstanding for purposes
of calculating U.S. GAAP earnings per share because potentially
dilutive securities would be antidilutive. (3) During the year
ended December 31, 2013, the United Kingdom financial services
advisory business was sold. The results of operations from this
business are presented as discontinued operations. All non-GAAP
financial measures are presented on a continuing operations basis
unless otherwise noted. (4) EBITDA is earnings from continuing
operations before interest, taxes, depreciation and amortization.
Adjusted EBITDA excludes the impact of severance expense and other
operating costs (benefit). Adjusted net income and adjusted
earnings per share exclude the net income (loss) and per share net
income (loss) impact of discontinued operations, severance expense
and other operating costs (benefit). Severance expense and other
operating costs (benefit) are not considered to be non-recurring,
infrequent or unusual to our business. Management believes that
these measures provide investors with enhanced comparability of the
Company's results of operations across periods. (5) Effective
income tax expense (benefit) has been determined based on specific
tax jurisdiction. (6) For the year ended December 31, 2014, the
Company reported a net loss. For non-GAAP purposes, the per share
and share amounts presented here reflect the inclusion of
potentially dilutive shares based on the impact of the add backs
included in Adjusted Net Income. (7) Free cash flow is calculated
as net cash provided from operations excluding changes in assets
and liabilities and allowance for doubtful accounts receivable less
cash payments for property and equipment and deferred acquisition
related payments. Free cash flow does not represent discretionary
cash available for spending as it excludes certain contractual
obligations such as debt repayment. However, management believes
that it provides investors with an indicator of cash flows
available for on-going business operations and long term value
creation. (8) Leverage ratio is calculated as bank debt at the end
of the period divided by adjusted EBITDA for the prior twelve-month
period. Management believes that leverage ratio provides investors
with an indicator of the cash flows available to repay the
Company's debt obligations.
NavigantAaron MilesInvestor
Relations312-583-5820aaron.miles@navigant.com
Navigant Consulting (NYSE:NCI)
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From Feb 2024 to Mar 2024
Navigant Consulting (NYSE:NCI)
Historical Stock Chart
From Mar 2023 to Mar 2024