Navigant Consulting 8-K Navigant Consulting, Inc. Announces First Quarter 2009 Results

Exhibit 99.1

For more information contact:

Jennifer Moreno
Executive Director, Investor Relations
312.573.5634
jmoreno@navigantconsulting.com

NAVIGANT CONSULTING, INC. ANNOUNCES FIRST QUARTER 2009 RESULTS

• Revenue before reimbursements of $167 million, down 9% from first quarter 2008 and down 4% from fourth quarter 2008

• Adjusted earnings per share (excluding the net income impact of severance costs) of $0.16; GAAP earnings per share of $0.11

• Monthly improvements to financial results as the quarter progressed

• Previously announced cost reduction actions expected to exceed targets

• Estimated range for 2009 earnings per share, adjusted to exclude severance and other operating costs, remains unchanged (between $0.85 and $1.00)

CHICAGO, May 7, 2009 –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 first quarter ended March 31, 2009.

William M. Goodyear, Chairman and Chief Executive Officer, commented, “Difficult market conditions from the fourth quarter of 2008 carried into early 2009, however, we were encouraged by monthly sequential improvements as the quarter progressed. Our disputes and financial services teams were the primary areas ‘stalled’ by the economic climate. Within the disputes arena we have seen improving signs of recovery throughout the quarter from both our corporate and law firm clients and expect major litigation matters to ramp in the near term.”

Mr. Goodyear continued, “Our response to the challenges of the business climate has been swift and substantial. We took aggressive steps to reduce costs and to realign the Company’s staffing levels – actions that will have a significant impact as the year progresses and that position us to deliver solid earnings and cash flow for 2009. We continue to believe that we can achieve between $0.85 and $1.00 in earnings per share (adjusted to exclude severance and other operating costs) despite expectations for total revenues at the lower end of our previously discussed range of $750 million to $825 million in total revenue.”

First Quarter 2009 Results

The Company’s first quarter 2009 results are summarized as follows:

Total Company First Quarter 2009 Financial Results (1)

	Q1 2009			Q1 2008			% Change
Revenue Before Reimbursements ($000)	$	167,212		$	184,294			-9.3	%
Total Revenue ($000)	$	182,362		$	207,139			-12.0	%
Adjusted EBITDA ($000)	$	22,052		$	33,208			-33.6	%
EBITDA ($000)	$	21,752		$	32,558			-33.2	%
Net Income ($000)	$	5,433		$	10,906			-50.2	%
Earnings Per Share	$	0.11		$	0.23			-52.2	%
Adjusted Earnings Per Share	$	0.12		$	0.25			-52.0	%
Average Billable FTEs		1,941			1,913			1.5	%
End of Period Billable FTEs		1,920			1,896			1.3	%
Consultant Utilization (1,850 base)		75	%		83	%		-9.6	%
Average Bill Rate (excluding success fees)	$	252		$	254			-0.8	%
DSO		87			83			4.8	%

(1) See the attached financial schedules for a reconciliation of Adjusted EBITDA and Adjusted Earnings per Share to the closest GAAP measure.

Navigant’s first quarter 2009 total revenues decreased 12% from record levels in the first quarter of 2008 due to several factors including the weakened economy, longer lead times for client spending decisions, and uncertainties surrounding the regulatory environment and potential stimulus spending. As expected, currency movements and low reimbursements for the first quarter of 2009 significantly impacted total revenues. However, utilization was a solid 75% and the Company’s average bill rate remained steady at $252 despite pricing pressures. Consultant attrition significantly declined in the first quarter of 2009 to 8% resulting in annualized attrition of 17% as compared to 22% in the first quarter of 2008.

As announced on February 24, 2009, Navigant implemented a number of cost reduction actions intended to decrease the Company’s expense base and to rebalance its portfolio of talent against current demand. These actions included staff reductions, a salary freeze, and limits on discretionary spending and are expected to result in lower operating, general and administrative expenses for 2009. While the impact of these actions will not be fully realized until the second quarter, they began to take effect in the first quarter as operating and general and administrative costs, excluding severance and other operating costs, declined from 2008 levels. Combined with anticipated lower amortization and interest expense the Company expects that its cost reduction efforts will largely offset the adverse impact of a weaker revenue environment.

Business Segment Highlights

First quarter 2009 financial results for the Company’s four business segments are summarized as follows:

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Business Segment First Quarter 2009 Financial Results

	Ql 2009		Ql 2008		% Change
Business Segment Total Revenue ($000)
North American Dispute and Investigative Services	$	72,630	$	91,002		-20.2	%
North American Business Consulting Services		79,639		96,341		-17.3	%
International Consulting Operations		16,046		19,796		-18.9	%
Economic Consulting Services		14,047		n/a		n/a
Total Company	$	182,362	$	207,139		-12.0	%
Business Segment Revenue before Reimbursements ($000)
North American Dispute and Investigative Services	$	67,247	$	83,823		-19.8	%
North American Business Consulting Services		72,772		83,468		-12.8	%
International Consulting Operations		14,306		17,003		-15.9	%
Economic Consulting Services		12,887		n/a		n/a
Total Company	$	167,212	$	184,294		-9.3	%
Segment Operating Profit ($000) (2)
North American Dispute and Investigative Services	$	25,450	$	35,023		-27.3	%
North American Business Consulting Services		26,391		33,330		-20.8	%
International Consulting Operations		4,021		5,383		-25.3	%
Economic Consulting Services		4,644		n/a		n/a
Total Company	$	60,506	$	73,736		-17.9	%

(2) For further detail see the Q1 2009 Metrics Datasheet posted at www.navigantconsulting.com/investor_relations.

Revenue before reimbursements in the Company’s Dispute and Investigative Services segment was down 20% from a record first quarter 2008 and down 6% from fourth quarter 2008, reflecting a general lag in the initiation of sold dispute engagements as well as a continuing lack of large investigative assignments. While both corporate and law firm clients are exercising restraint in the staging of work sold, major litigation in the areas of capital markets disputes, bankruptcy, white collar crime and international arbitration are active and substantial for the Company.

The Business Consulting Services segment experienced a decline in revenue before reimbursements of 13% from first quarter 2008 and 3% from fourth quarter 2008, predominantly reflecting a realignment of the segment’s financial services team in an effort to rebalance capabilities and expertise against market demand. The Company maintains a core talent base in financial services to capture opportunities emerging from financial and regulatory risk. The segment’s healthcare and energy teams remain strong and continued growth is expected against a backdrop of stimulus funding and regulatory focus. The corporate finance group continues to be very active on hedge fund restructurings and real estate asset matters.

Navigant’s International Consulting Operations segment revenue before reimbursements decreased 16% from first quarter 2008 due solely to the decline in the sterling exchange rate. However, the segment’s revenue before reimbursements increased 4% from fourth quarter 2008 reflecting ongoing strong performance on large, global infrastructure disputes and a small acquisition in investment management capabilities.

The Company’s Economic Consulting Services segment was acquired in May 2008 and has demonstrated ongoing strong performance reflecting demand for the team’s experts in antitrust, securities, and labor and employment matters. Revenue before reimbursements of $12.9 million in the first quarter of 2009 was generally consistent with plan and reflected a 9% decline from a record fourth quarter 2008.

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A Company metrics summary including data by segment is available at www.navigantconsulting.com/investor_relations.

2009 Outlook

Navigant confirmed its prior 2009 guidance issued on February 24, 2009. Total revenues are expected to fall at the lower end of the range of $750 million to $825 million. Earnings per share are estimated to be between $0.85 and $1.00, excluding severance and other operating costs.

“We continue to remain focused on serving clients and protecting profitability,” stated Mr. Goodyear. “I am confident in our ability to proactively manage costs while capitalizing on the market opportunities emerging from intensifying global regulatory and economic pressures. As 2009 progresses we expect to be favorably impacted by improving demand drivers in the dispute channel together with growth in the energy, healthcare and corporate finance markets.”

First 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 Thursday, May 7, 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 “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 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.

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

	For the quarter ended March 31,
	2009			2008
Revenue before reimbursements	$	167,212		$	184,294
Reimbursements		15,150			22,845
Total revenues		182,362			207,139
Cost of services before reimbursable expenses		110,267			113,073
Reimbursable expenses		15,150			22,845
Total costs of services		125,417			135,918
General and administrative expenses		34,893			38,013
Depreciation expense		4,640			4,165
Amortization expense		3,620			4,227
Other operating costs:
Office consolidation		908			1,518
Operating income		12,884			23,298
Interest expense		3,968			4,602
Interest income		(296	)		(272	)
Other income, net		(321	)		5
Income before income tax expense		9,533			18,963
Income tax expense		4,100			8,057
Net income	$	5,433		$	10,906
Basic income per share	$	0.11		$	0.24
Shares used in computing income per basic share		47,443			46,099
Diluted income per share	$	0.11		$	0.23
Shares used in computing income per diluted share		49,449			46,838

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

	For the quarter ended March 31, 2009									For the quarter ended March 31, 2008
	Adjusted			Adjustments			Reported			Adjusted			Adjustments			Reported
Revenue before reimbursements	$	167,212					$	167,212		$	184,294					$	184,294
Reimbursements		15,150						15,150			22,845						22,845
Total revenues		182,362			—			182,362			207,139			—			207,139
Cost of services before reimbursable expenses		110,267						110,267			113,073						113,073
Reimbursable expenses		15,150						15,150			22,845						22,845
Total costs of services		125,417			—			125,417			135,918			—			135,918
General and administrative expenses		34,893						34,893			38,013						38,013
Depreciation expense		4,640						4,640			4,165						4,165
Amortization expense		3,620						3,620			4,227						4,227
Other operating costs:
Office consolidation		—			908			908			—			1,518			1,518
Operating income		13,792			(908	)		12,884			24,816			(1,518	)		23,298
Interest expense		3,968						3,968			4,602						4,602
Interest income		(296	)					(296	)		(272	)					(272	)
Other income, net		(321	)					(321	)		5						5
Income before income tax expense		10,441			(908	)		9,533			20,481			(1,518	)		18,963
Income tax expense		4,466			(366	)		4,100			8,669			(612	)		8,057
Net income	$	5,975		$	(542	)	$	5,433		$	11,812		$	(906	)	$	10,906
Diluted income per share (EPS) (3)	$	0.12					$	0.11		$	0.25					$	0.23
Shares used in computing income per diluted share
		49,449						49,449			46,838						46,838
Percentage of revenues before reimbursements :
Cost of services before reimbursable expenses		66	%					66	%		61	%					61	%
Reimbursable expenses		9	%					9	%		12	%					12	%
General and administrative expenses		21	%					21	%		21	%					21	%
EBITDA (4)		13	%					13	%		18	%					18	%
Operating income		8	%					8	%		13	%					13	%
Net income		4	%					3	%		6	%					6	%
EBITDA (4) reconciliation:
EBITDA (4)	$	22,052		$	(300	)	$	21,752		$	33,208		$	(650	)	$	32,558
Depreciation		4,640						4,640			4,165						4,165
Accelerated Depreciation — Office consolidation		—			(608	)		608			—			(868	)		868
Amortization		3,620						3,620			4,227						4,227
Operating income	$	13,792		$	(908	)(1)	$	12,884		$	24,816		$	(1,518	) (2)	$	23,298

(1)	During the first quarter of 2009 the Company recorded office consolidation costs of $0.9 million associated with real estate rationalization, including office closure costs, leasehold improvement write downs and accelerated depreciation on leasehold improvements.
(2)	During the first quarter of 2008 the Company recorded office consolidation costs of $1.5 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 $3.0 million and $0.3 million during the first 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 $1.8 million and $0.2 million during the first quarters of 2009 and 2008 respectively.

	For the quarter ended March 31,
	2009			2008
Severance costs	$	3,007		$	342
Tax benefit of severance costs at 40%		(1,203	)		(137	)
Net income impact of severance costs	$	1,804		$	205
Shares used in computing income per diluted share		49,449			46,838
Diluted income per share impact of severance costs	$	0.04		$	0.00
Adjusted net income	$	5,975		$	11,812
Net income impact of severance costs		1,804			205
Adjusted net income, excluding the net income impact of severance costs	$	7,779		$	12,017
Shares used in computing income per diluted share		49,449			46,838
Adjusted diluted income per share, excluding the impact of severance costs	$	0.16		$	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.

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AND SELECTED DATA
(In thousands, except DSO data)
(Unaudited)

	March 31,			December 31,			March 31,
	2009			2008			2008
Current assets:
Cash and cash equivalents	$	6,743		$	23,134		$	7,632
Accounts receivable, net		188,824			170,464			206,567
Prepaid expenses and other current assets		19,414			13,455			13,529
Deferred income tax assets		15,504			21,494			13,667
Total current assets		230,485			228,547			241,395
Property and equipment, net		45,532			45,151			52,129
Intangible assets, net		34,109			38,108			53,096
Goodwill		463,176			463,058			422,461
Other assets		16,095			17,529			8,373
Total assets	$	789,397		$	792,393		$	777,454
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,634		$	8,511		$	8,516
Accrued liabilities		9,731			10,086			12,418
Accrued compensation-related costs		40,806			72,701			42,120
Income taxes payable		—			1,371			9,559
Notes payable		3,587			4,173			6,342
Term loan — current		2,250			2,250			2,250
Other current liabilities		28,601			31,467			26,427
Total current liabilities		95,609			130,559			107,632
Non-current liabilities
Deferred income tax liabilities		26,687			28,511			26,723
Other non-current liabilities		36,589			37,336			23,888
Notes payable		—			—			4,843
Term loan non-current		218,813			219,375			221,063
Bank debt non-current		39,459			10,854			44,454
Total non-current liabilities		321,548			296,076			320,971
Total liabilities		417,157			426,635			428,603
Stockholders’ equity:
Preferred stock		—			—			—
Common stock		59			59			58
Additional paid-in capital		557,267			555,737			545,048
Deferred stock issuance, net		699			985			1,853
Treasury stock		(229,626	)		(231,071	)		(239,771	)
Retained earnings		74,672			69,239			40,088
Accumulated other comprehensive income (loss)		(30,831	)		(29,191	)		1,575
Total stockholders’ equity		372,240			365,758			348,851
Total liabilities and stockholders’ equity	$	789,397		$	792,393		$	777,454
Selected Data
Days sales outstanding, net (DSO)1		87			73			83

1) Net of deferred revenue.

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NAVIGANT CONSULTING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in 000s (except per share amounts)

	For the three months ended
	March 31,
	2009			2008
Cash flows from operating activities:
Net income	$	5,433		$	10,906
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense		4,640			4,165
Depreciation expense — office consolidation		608			868
Amortization expense		3,620			4,227
Share-based compensation expense		2,506			3,533
Accretion of interest expense		278			176
Allowance for doubtful accounts receivable		3,754			2,071
Deferred income taxes		2,778			522
Other, net		—			14
Changes in assets and liabilities:
Accounts receivable		(22,652	)		(19,434	)
Prepaid expenses and other assets		(2,270	)		(4,036	)
Accounts payable		2,155			985
Accrued liabilities		(334	)		1,664
Accrued compensation-related costs		(31,842	)		(19,948	)
Income taxes payable		(1,821	)		4,374
Other current liabilities		(1,464	)		(4,118	)
Net cash used in operating activities		(34,611	)		(14,031	)
Cash flows from investing activities:
Purchases of property and equipment		(5,708	)		(2,531	)
Acquisition of business		(1,875	)		—
Payments of acquisition liabilities		(2,821	)		(1,154	)
Other, net		(40	)		—
Net cash used in investing activities		(10,444	)		(3,685	)
Cash flows from financing activities:
Issuances of common stock		1,672			2,563
Payments of notes payable		(355	)		(499	)
Borrowings from banks, net of repayments		28,802			11,752
Payments of term loan installments		(562	)		(562	)
Other, net		(706	)		438
Net cash provided by financing activities		28,851			13,692
Effect of exchange rate changes on cash		(187	)		—
Net decrease in cash and cash equivalents		(16,391	)		(4,024	)
Cash and cash equivalents at beginning of the period		23,134			11,656
Cash and cash equivalents at end of the period	$	6,743		$	7,632

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