Navigant (NYSE: NCI) today announced financial results for the
second quarter ended June 30, 2015.
Financial Summary and Highlights:
- Second quarter 2015 revenues before
reimbursements (RBR) increased 13% year-over-year to $211.0
million, and total revenues increased 12% year-over-year to $233.4
million.
- Second quarter 2015 RBR results
included organic growth of 8% year-over-year, with contributions
from three out of four segments.
- Net income from continuing operations
was $7.8 million or $0.16 per share; adjusted earnings per share
(EPS) increased 18% year-over-year to $0.26, and adjusted EBITDA
increased 10% year-over-year to $30.1 million.
- 421,872 shares of common stock
repurchased in second quarter 2015 at an average cost of $14.13 per
share.
- Confirms financial outlook for
2015.
Navigant reported second quarter 2015 RBR of $211.0 million, a
13% increase compared to $186.5 million for second quarter 2014,
with year-over-year RBR organic growth in three out of four
segments. Total revenues increased 12% to $233.4 million for second
quarter 2015 compared to $208.1 million for second quarter 2014.
Net income from continuing operations for second quarter 2015 was
$7.8 million, or $0.16 per share, compared to a net loss of $75.9
million, or $1.55 per share, in the second quarter 2014, which
included a non-cash goodwill impairment of $122.0 million ($86.9
million or $1.78 per share on an after-tax basis.) Adjusted EPS
increased 18% to $0.26 for second quarter 2015 compared to $0.22
for second quarter 2014. Adjusted EBITDA increased 10% to $30.1
million for second quarter 2015 compared to $27.4 million for the
same period in 2014.
Julie Howard, Chairman and Chief Executive
Officer, commented, “I am very pleased with our strong results
for the second quarter, notably with the achievement of an organic
RBR growth rate of 8%, driven by our Healthcare, Energy and
Disputes, Investigations and Economics segments.”
Howard continued, “We believe that combining revenue growth and
operating efficiency are essential for creating long-term value for
our shareholders. Consistent with this objective, during the
quarter, we took certain actions, as previously discussed, to
streamline our operations to improve profitability. These actions
combined with our strong year-to-date results have kept us in line
to deliver on the guidance we set forth at the beginning of the
year.”
Segment Financial
Summary
For the quarter ended June 30,
2015 2014
Change RBR ($000) Disputes,
Investigations & Economics $ 81,116 $ 76,294 6.3 % Financial,
Risk & Compliance 29,509 32,193 -8.3 % Healthcare 74,245 54,446
36.4 % Energy 26,153
23,571 11.0 % Total Company
$ 211,023 $ 186,504
13.1 %
Total Revenues ($000) Disputes, Investigations
& Economics $ 87,515 $ 82,444 6.2 % Financial, Risk &
Compliance 34,439 38,224 -9.9 % Healthcare 80,652 60,476 33.4 %
Energy 30,833
26,953 14.4 % Total Company $
233,439 $ 208,097 12.2 %
Segment Operating Profit ($000) Disputes, Investigations
& Economics $ 25,721 $ 26,213 -1.9 % Financial, Risk &
Compliance 11,201 13,541 -17.3 % Healthcare 24,726 15,475 59.8 %
Energy 7,513 7,009
7.2 % Total Company $ 69,161
$ 62,238 11.1 %
Segment Operating Margin (% of RBR) Disputes, Investigations
& Economics 31.7 % 34.4 % Financial, Risk & Compliance 38.0
% 42.1 % Healthcare 33.3 % 28.4 % Energy 28.7
% 29.7 % Total Company
32.8 % 33.4 %
RBR for the Healthcare segment increased 36% year-over-year for
second quarter 2015 with 14% organic RBR growth for the period.
Overall RBR growth for the segment was driven primarily by business
process management services and increased demand for our life
sciences consulting expertise. Segment operating profit margin
increased to 33% compared to 28% in the same period last year,
driven by better operating leverage within the segment.
The Financial, Risk & Compliance segment RBR for second
quarter 2015 decreased 8% compared to the prior year quarter,
reflecting lower volume of work from an ongoing large financial
institution client, partially offset by continued strong demand for
regulatory and compliance consulting engagements for major
financial institutions. Second quarter 2015 segment
operating profit was down 17% year-over-year as a result of lower
RBR and our decision to maintain capabilities in the segment based
on expected market demand for this segment’s consulting
services. In addition, segment operating profit was
further impacted by a change in the use of flexible resources.
The Energy segment RBR for second quarter 2015 increased 11%
compared to second quarter 2014, all of which represented organic
growth. The RBR growth in the quarter was driven by continued
demand for the segment’s services from both the public and private
sector, as well as increased client penetration from the segment’s
key client accounts program. Second quarter 2015 segment operating
profit was up 7% compared to the same period last year, as higher
RBR was partially offset by higher compensation and benefits
expenses associated with investments to expand the segment’s
capabilities.
The Disputes, Investigations & Economics segment RBR for
second quarter 2015 increased 6% year-over-year, primarily on an
organic basis. The increase was driven by continued demand for our
global construction and financial services disputes expertise. In
addition, healthcare disputes and legal technology solutions
contributed to the segment’s results for the second quarter 2015,
partially offset by a lower contribution from forensic
investigations and economic consulting engagements. Segment
operating profit decreased 2% in second quarter 2015 compared to
the same period of 2014, as higher RBR was offset by higher costs,
mainly due to severance expense and costs incurred to better align
resources.
Cash Flow
Free cash flow was $11.6 million for second quarter 2015
compared to $17.2 million for the same period in 2014, reflecting
increased capital investment spending. Days Sales Outstanding (DSO)
was 80 days as of June 30, 2015, down 2 days compared to June 30,
2014.
Bank debt was $171.4 million at June 30, 2015 compared to $188.8
million at June 30, 2014. Leverage (bank debt divided by trailing
twelve month adjusted EBITDA) was 1.37 at June 30, 2015 compared to
1.71 at June 30, 2014.
Navigant repurchased 421,872 shares of common stock during
second quarter 2015 at an aggregate cost of $6.0 million and an
average cost of $14.13 per share. Effective July 1, 2015, our board
of directors increased the amount authorized under the Company’s
stock repurchase authorization to $100 million and extended the
authorization through December 31, 2017.
2015 Outlook
Navigant confirmed its 2015 financial outlook. As previously
disclosed, 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 for full year 2015 is
expected to range between $115 and $125 million and adjusted EPS
for full year 2015 is estimated to be between $0.90 and $1.00.
Non-GAAP Financial Information and Key
Operating Metrics
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.
As used in this press release, organic growth represents RBR
adjusted to include the impact of acquisitions as if the Company
owned them from the beginning of each comparable period and
adjusted to exclude the impact of foreign currency exchange rate
fluctuations. Our definition of organic growth may not be
comparable to similarly titled metrics at other companies.
Management believes that organic growth reflects the growth of our
existing business and is, therefore, useful in analyzing the
Company’s financial condition and results of operations.
Conference Call Details
Navigant will host a conference call to discuss the Company’s
second quarter 2015 results at 10:00 a.m. Eastern Time (9:00 a.m.
Central Time) on Tuesday, July 28, 2015. The conference call may be
accessed via the Navigant website
(www.navigant.com/investor_relations) or by dialing 888.455.9733
(630.395.0358 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 Consulting, Inc. (NYSE: NCI) is an independent
specialized, global professional services firm that combines deep
industry knowledge with technical expertise to enable companies to
defend, protect and create value. With a focus on industries and
clients facing transformational change and significant regulatory
and legal issues, the Firm serves clients primarily in the
healthcare, energy and financial services sectors which represent
highly complex market and regulatory environments. Professional
service offerings include strategic, financial, operational,
technology, risk management, compliance, investigative solutions,
dispute resolutions services and business process management
services. The Firm provides services to companies, legal counsel
and governmental agencies. The business is organized in four
reporting segments – Disputes, Investigations & Economics;
Financial, Risk & Compliance; Healthcare; and Energy. 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
six months ended June 30, June 30, 2015
2014
2015
2014 Revenues: Revenues before reimbursements $
211,023 $ 186,504 $ 412,179 $ 361,560 Reimbursements 22,416
21,593 44,431
44,285 Total revenues 233,439 208,097 456,610 405,845
Costs of services: Cost of services before reimbursable expenses
145,367 126,792 283,968 246,920 Reimbursable expenses 22,416
21,593 44,431
44,285 Total costs of services 167,783 148,385
328,399 291,205 General and administrative expenses 39,068 34,237
74,733 67,339 Depreciation expense 5,724 4,953 11,079 9,262
Amortization expense 2,297 1,633 4,566 2,995 Other operating costs
(benefit): Contingent acquisition liability adjustments, net 2,308
(2,444 ) (12,625 ) (3,604 ) Office consolidation, net 1,804 - 2,740
- Goodwill impairment - 122,045 - 122,045 Other impairment
98 204 98
204 Operating income (loss) 14,357 (100,916 ) 47,620 (83,601
) Interest expense 1,238 1,397 2,970 2,235 Interest income (46 )
(71 ) (101 ) (160 ) Other (income) expense, net 176
186 (152 ) 268
Income (loss) from continuing operations before income tax
(benefit) expense 12,989 (102,428 ) 44,903 (85,944 ) Income tax
(benefit) expense 5,162 (26,569 )
11,933 (20,455 ) Net income (loss) from
continuing operations 7,827 (75,859 ) 32,970 (65,489 ) Income from
discontinued operations, net of tax - -
- 509 Net income (loss) $
7,827 $ (75,859 ) $ 32,970 $ (64,980 )
Basic per share data Net income (loss) from
continuing operations $ 0.16 $ (1.55 ) $ 0.68 $ (1.34 ) Income from
discontinued operations, net of tax $ - $ - $
- $ 0.01 Net income (loss) (1) $ 0.16
$ (1.55 ) $ 0.68 $ (1.33 ) Shares used in
computing basic per share data 48,150 48,971 48,137 48,917
Diluted per share data Net income (loss) from continuing operations
$ 0.16 $ (1.55 ) $ 0.67 $ (1.34 ) Income from discontinued
operations, net of tax $ - $ - $ -
$ 0.01 Net income (loss) (1) $ 0.16 $
(1.55 ) $ 0.67 $ (1.33 ) Shares used in computing
diluted per share data (2) 49,310 48,971 49,369 48,917
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS AND SELECTED DATA (In thousands, except DSO
data) June 30, December
31, 2015 2014 (Unaudited)
ASSETS Current assets: Cash and cash equivalents $ 3,854 $ 2,648
Accounts receivable, net 223,717 187,652 Prepaid expenses and other
current assets 28,923 27,142 Deferred income tax assets
13,683 13,455 Total current
assets 270,177 230,897 Non-current assets: Property and equipment,
net 72,496 60,617 Intangible assets, net 28,929 26,502 Goodwill
582,836 568,091 Other assets 19,547
17,386 Total assets $ 973,985 $
903,493 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $ 11,951 $ 11,735 Accrued liabilities
12,208 11,311 Accrued compensation-related costs 60,118 83,061
Income tax payable 3,132 1,763 Other current liabilities
40,402 52,526 Total current
liabilities 127,811 160,396 Non-current liabilities: Deferred
income tax liabilities 81,194 76,329 Other non-current liabilities
20,084 14,387 Bank debt non-current 171,386
109,790 Total non-current liabilities
272,664 200,506 Total
liabilities 400,475 360,902
Stockholders' equity: Common stock 64 64 Additional paid-in
capital 622,260 611,882 Treasury stock (287,684 ) (275,608 )
Retained earnings 251,307 218,337 Accumulated other comprehensive
loss (12,437 ) (12,084 ) Total
stockholders' equity 573,510
542,591 Total liabilities and stockholders' equity $ 973,985
$ 903,493
Selected
Data
Days sales outstanding, net (DSO) 80 69
NAVIGANT
CONSULTING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
CASH FLOWS (In thousands) (Unaudited)
For the quarter ended
For the six months ended June 30, June 30,
2015 2014 2015 2014
Cash flows from operating activities: Net income (loss) $
7,827 $ (75,859 ) $ 32,970 $ (64,980 ) Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: Depreciation expense 5,724 4,953 11,079 9,262
Accelerated depreciation - office consolidation 139 - 139 -
Amortization expense 2,297 1,633 4,566 2,995 Amortization expense -
client-facing software 233 178 486 242 Share-based compensation
expense 3,420 2,522 5,524 5,236 Accretion of interest expense 272
490 1,135 654 Deferred income taxes 1,073 (31,638 ) 4,686 (24,395 )
Allowance for doubtful accounts receivable 1,402 1,904 1,592 2,784
Contingent acquisition liability adjustments, net 2,308 (2,444 )
(12,625 ) (3,604 ) Gain on disposition of discontinued operations -
- - (509 ) Goodwill impairment - 122,045 - 122,045 Other impairment
98 204 98 204 Changes in assets and liabilities (net of
acquisitions and dispositions): Accounts receivable (12,313 )
(8,943 ) (36,747 ) (29,293 ) Prepaid expenses and other assets 409
2,864 (2,361 ) 141 Accounts payable (969 ) (1,765 ) 136 (4,216 )
Accrued liabilities (2,523 ) (472 ) 1,444 (1,695 ) Accrued
compensation-related costs 16,743 19,703 (22,896 ) (21,619 ) Income
taxes payable (790 ) 239 46 (837 ) Other liabilities 3,799
(370 ) 5,923
(4,879 ) Net cash provided by (used in) operating activities
29,149 35,244 (4,805 ) (12,464 ) Cash flows from investing
activities: Purchases of property and equipment (10,284 ) (4,450 )
(23,197 ) (10,942 ) Acquisitions of businesses, net of cash
acquired - (83,334 ) (21,379 ) (84,834 ) Proceeds from
dispositions, net of selling costs - - - 824 Payments of
acquisition liabilities (1,530 ) (443 ) (1,530 ) (443 ) Capitalized
client-facing software (309 ) (36 )
(346 ) (864 ) Net cash used in investing
activities (12,123 ) (88,263 ) (46,452 ) (96,259 ) Cash
flows from financing activities: Issuances of common stock 636 516
4,894 1,535 Repurchase of common stock (5,964 ) (7,036 ) (12,081 )
(14,427 ) Payments of contingent acquisition liabilities - - - (107
) Repayments to banks (67,119 ) (88,497 ) (138,703 ) (156,895 )
Borrowings from banks 58,249 156,420 199,643 288,774 Other, net
(1,036 ) (1,272 ) (1,247 )
(2,281 ) Net cash provided by (used in) financing activities
(15,234 ) 60,131 52,506
116,599 Effect of exchange rate changes
on cash and cash equivalents 74 2
(43 ) 8 Net increase in cash and
cash equivalents 1,866 7,114 1,206 7,884 Cash and cash equivalents
at beginning of the period 1,988 2,738
2,648 1,968 Cash and cash
equivalents at end of the period $ 3,854 $ 9,852
$ 3,854 $ 9,852
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 six months ended
adjusted Earnings
Per Share (4)
June 30, June 30, 2015 2014
2015 2014 Severance expense $ 3,553 $ 1,972 $
5,056 $ 2,477 Income tax benefit (5) (1,232 )
(758 ) (1,752 ) (957 ) Tax-effected impact of
severance expense $ 2,321 $ 1,214 $ 3,304
$ 1,520 Other operating cost (benefit)
- contingent acquisition liability adjustment, net $ 2,308 $ (2,444
) $ (12,625 ) $ (3,604 ) Income tax (benefit) expense (5)(6)(7)
(907 ) 985 (1,090 )
1,453 Tax-effected impact of other operating benefit
- contingent acquisition liability adjustment, net $ 1,401
$ (1,459 ) $ (13,715 ) $ (2,151 ) Other
operating costs - office consolidation, net $ 1,804 $ - $ 2,740 $ -
Income tax benefit (5) (729 ) -
(1,052 ) - Tax-effected impact of other
operating costs - office consolidation, net $ 1,075 $
- $ 1,688 $ - Other operating
costs - goodwill impairment $ - $ 122,045 $ - $ 122,045 Income tax
benefit (5) - (35,111 ) -
(35,111 ) Tax-effected impact of other operating
costs - goodwill impairment $ - $ 86,934 $ -
$ 86,934 Other operating costs - other
impairment $ 98 $ 204 $ 98 $ 204 Income tax benefit (5) (40
) (82 ) (40 ) (82 ) Tax-effected
impact of other operating costs - other impairment $ 58
$ 122 $ 58 $ 122 EBITDA
reconciliation: Operating income (loss) $ 14,357 $ (100,916 ) $
47,620 $ (83,601 ) Depreciation expense 5,724 4,953 11,079 9,262
Accelerated depreciation - office consolidation 139 - 139 -
Amortization expense 2,297 1,633
4,566 2,995 EBITDA $ 22,517 $
(94,330 ) $ 63,404 $ (71,344 ) Severance expense 3,553 1,972 5,056
2,477 Other operating cost (benefit) - contingent acquisition
liability adjustment, net 2,308 (2,444 ) (12,625 ) (3,604 ) Other
operating costs - office consolidation, net 1,665 - 2,601 - Other
operating costs - goodwill impairment - 122,045 - 122,045 Other
operating costs - other impairment 98
204 98 204 Adjusted
EBITDA $ 30,141 $ 27,447 $ 58,534
$ 49,778 Net income (loss) from continuing
operations $ 7,827 $ (75,859 ) $ 32,970 $ (65,489 )
Tax-effected impact of severance
expense
2,321 1,214 3,304 1,520 Tax-effected impact of other operating
benefit - contingent acquisition liability adjustment, net 1,401
(1,459 ) (13,715 ) (2,151 ) Tax-effected impact of other operating
costs - office consolidation, net 1,075 - 1,688 - Tax-effected
impact of other operating costs - goodwill impairment - 86,934 -
86,934 Tax-effected impact of other operating costs - other
impairment 58 122 58
122 Adjusted net income $ 12,682
$ 10,952 $ 24,305 $ 20,936
Shares used in computing adjusted per diluted share data (8) 49,310
50,078 49,369 50,257 Adjusted earnings per share $ 0.26
$ 0.22 $ 0.49 $ 0.42
For the quarter ended For the six months ended
Free Cash Flow
(9)
June 30, June 30, 2015 2014
2015 2014 Net cash provided by (used in)
operating activities $ 29,149 $ 35,244 $ (4,805 ) $ (12,464 )
Changes in assets and liabilities (4,356 ) (11,256 ) 54,455 62,398
Allowance for doubtful accounts receivable (1,402 ) (1,904 ) (1,592
) (2,784 ) Purchases of property and equipment (10,284 ) (4,450 )
(23,197 ) (10,942 ) Payments of acquisition liabilities (1,530 )
(443 ) (1,530 ) (443 ) Payments of contingent acquisition
liabilities - - -
(107 ) Free Cash Flow $ 11,577 $ 17,191
$ 23,331 $ 35,658
At
Leverage Ratio
(10)
June 30, 2015 2014 Adjusted EBITDA for
prior twelve-month period $ 124,979 $ 110,379 Bank debt $ 171,386 $
188,825 Leverage ratio 1.37 1.71 Footnotes (1) Per share
data may not sum due to rounding. (2) For the three and six
months ended June 30, 2014, the Company reported a net loss. For
those periods, 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)
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)
A portion of the deferred contingent acquisition liability
adjustment for the three and six months ended June 30, 2015 was
non-taxable in nature. (7) On May 15, 2015, we executed an
Amendment to Merger Agreement with the Cymetrix Sellers,
establishing a definitive amount for the obligation and eliminating
the contingent aspect of the Cymetrix acquisition liability. As a
result of this agreement, the company will no longer record an
interest expense for imputed interest resulting from the contingent
aspect of the acquisition liability . Based on this change, the
company re-evaluated the need for a deferred tax liability
associated with expected non-deductible imputed interest and
recorded an $826 thousand benefit to reverse the remaining tax
impact in the quarter ended June 30, 2015. (8) For the three
and six months ended June 30, 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. (9) 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. (10) 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150728005246/en/
NavigantAaron Miles, 312.583.5820Investor
Relationsaaron.miles@navigant.com
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