Navigant Consulting 8-K Navigant Consulting, Inc. Reports Second Quarter 2010 Results

Exhibit 99.2

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
METRICS SUMMARY
(UNAUDITED)

DISCLAIMER:

The Company strongly encourages investors to read its annual and quarterly filings with the Securities and Exchange Commission (the “SEC Filings”), including the financial statements and description of risk factors therein. Although certain information included in this chart is intended to be identical to information in the SEC Filings, in the event of a conflict between information included in the SEC Filings and in this chart, the SEC Filings should be relied upon. Other information included in this chart represents financial metrics compiled by the Company for internal use in analyzing certain aspects of its business (the “Internal Metrics”). The Internal Metrics represent management’s good faith estimates as of the date of this chart, and the Company makes no guarantee as to either their accuracy or completeness. The Company does not undertake any obligation to update this chart to reflect new information, future events or otherwise.

TOTAL COMPANY

	2010						2010			2009												2009			2008
All numbers in $000s except Per Share, DSO, People data and
percentages	Q2			Q1			Full Year			Q4			Q3			Q2			Q1			Full Year			Full Year
Revenues Before Reimbursements	$	154,617		$	153,870		$	308,487		$	153,051		$	159,153		$	157,332		$	167,212		$	636,748		$	727,062
Reimbursements		17,706			19,680			37,386			20,907			18,210			16,224			15,150			70,491			83,578
Total Revenues		172,323			173,550			345,873			173,958			177,363			173,556			182,362			707,239			810,640
Y/Y Growth rate		-1	%		-5	%		N/A			-10	%		-10	%		-18	%		-12	%		-13	%		6	%
Q/Q Growth rate		-1	%		0	%		N/A			-2	%		2	%		-5	%		-6	%		N/A			N/A
Geographic Revenues as % of Total
U.S. Operations		86	%		84	%		84	%		82	%		84	%		84	%		86	%		84	%		83	%
Non U.S. Operations		14	%		16	%		16	%		18	%		16	%		16	%		14	%		16	%		17	%
Cost of Services Before Reimbursements		102,128			102,230			204,358			103,766			100,545			101,967			110,267			416,545			444,035
% of Revenues Before Reimbursements		66	%		66	%		66	%		68	%		63	%		65	%		66	%		65	%		61	%
General & Administrative Expenses		29,089			30,460			59,549			28,142			32,500			33,513			34,893			129,048			155,378
% of Revenues Before Reimbursements		19	%		20	%		19	%		18	%		20	%		21	%		21	%		20	%		21	%
EBITDA (1)		23,400			21,180			44,580			19,013			25,238			17,627			21,752			83,630			124,976
% of Revenues Before Reimbursements		15	%		14	%		14	%		12	%		16	%		11	%		13	%		13	%		17	%
Adjusted EBITDA (excluding office consolidation and severance expense) (1)		24,407			22,016			46,423			25,448			27,653			23,192			25,059			101,352			131,909
% of Revenues Before Reimbursements		16	%		14	%		15	%		17	%		17	%		15	%		15	%		16	%		18	%
Operating Income		16,885			14,583			31,468			11,603			17,716			9,528			12,884			51,731			88,754
% of Revenues Before Reimbursements		11	%		9	%		10	%		8	%		11	%		6	%		8	%		8	%		12	%
Net Income		7,828			6,447			14,275			4,789			8,340			3,385			5,433			21,947			40,057
% of Revenues Before Reimbursements		5	%		4	%		5	%		3	%		5	%		2	%		3	%		3	%		6	%
Y/Y Growth rate		131	%		19	%		N/A			-58	%		6	%		-66	%		-50	%		-45	%		20	%
Q/Q Growth rate		21	%		35	%		N/A			-43	%		146	%		-38	%		-52	%		N/A			N/A
Net Income Per Diluted Share (EPS)		0.16			0.13			0.28			0.10			0.17			0.07			0.11			0.44			0.83
Adjusted Net Income Per Diluted Share (excluding the net income impact of office consolidation and severance expense) (2)		0.17			0.14			0.32			0.18			0.20			0.14			0.16			0.68			0.95
Shares used in computing income per diluted share		50,264			50,096			50,180			50,018			49,954			49,756			49,449			49,795			48,285
Balance Sheet
Cash and cash equivalents		3,000			361			3,000			49,144			13,342			5,132			6,743			49,144			23,134
Trade accounts receivable, net		162,227			174,690			162,227			163,608			185,129			187,201			188,824			163,608			170,464
Days sales outstanding (DSO)		79			83			N/A			78			87			91			87			N/A			N/A
Debt		202,549			197,275			202,549			219,375			222,326			239,717			260,522			219,375			232,479
Share-based compensation expense related to consulting personnel		1,040			801			1,841			869			955			1,333			1,926			5,083			9,087
Employee Data (Period End) (3)
Billable		1,668			1,661			1,668			1,666			1,716			1,778			1,920			1,666			1,931
Non-billable		522			518			522			511			514			535			573			511			577
Total		2,190			2,179			2,190			2,177			2,230			2,313			2,493			2,177			2,508

(1)	EBITDA and Adjusted EBITDA are non-GAAP financial measures. See accompanying schedule for reconciliation to operating income.
(2)	Adjusted EPS is a non-GAAP financial measure and excludes the net income impact from office consolidation and severance expense as provided in the accompanying schedule.
(3)	Employee Data represents FTE employees (adjusted for part-time status).

SEGMENT INFORMATION (4)

	2010						2010			2009												2009			2008
All numbers in $000s except Per
Share, People data and percentages	Q2			Q1			Full Year			Q4			Q3			Q2			Q1			Full Year			Full Year
Business Segment Revenues
Dispute and Investigative Services		63,867			67,894		$	131,761			72,160			76,010			76,758			77,496		$	302,424		$	356,524
% of Total Revenues		37	%		39	%		38	%		41	%		43	%		44	%		43	%		43	%		43	%
Business Consulting Services		71,756			66,250			138,006			67,419			65,450			63,393			73,516			269,778			329,550
% of Total Revenues		42	%		38	%		40	%		39	%		37	%		37	%		40	%		38	%		41	%
International Consulting		18,078			20,797			38,875			21,780			21,279			19,250			17,303			79,612			87,673
% of Total Revenues		10	%		12	%		11	%		13	%		12	%		11	%		9	%		11	%		11	%
Economic Consulting		18,622			18,609			37,231			12,599			14,624			14,155			14,047			55,425			36,893
% of Total Revenues		11	%		11	%		11	%		7	%		8	%		8	%		8	%		8	%		5	%
Total Company	$	172,323		$	173,550		$	345,873		$	173,958		$	177,363		$	173,556		$	182,362		$	707,239		$	810,640
Business Segment Revenue Before Reimbursements
Dispute and Investigative Services		59,737			63,338			123,075			65,359			69,260			70,124			71,903			276,646			324,458
% of Revenues Before Reimbursements		39	%		41	%		40	%		43	%		43	%		45	%		43	%		44	%		44	%
Business Consulting Services		63,430			57,399			120,829			58,717			58,749			57,883			66,906			242,255			290,257
% of Revenues Before Reimbursements		41	%		37	%		39	%		38	%		37	%		37	%		40	%		38	%		40	%
International Consulting		14,484			16,145			30,629			17,512			17,266			16,067			15,516			66,361			76,605
% of Revenues Before Reimbursements		9	%		11	%		10	%		11	%		11	%		10	%		9	%		10	%		11	%
Economic Consulting		16,966			16,988			33,954			11,463			13,878			13,258			12,887			51,486			35,742
% of Revenues Before Reimbursements		11	%		11	%		11	%		8	%		9	%		8	%		8	%		8	%		5	%
Total Company	$	154,617		$	153,870		$	308,487		$	153,051		$	159,153		$	157,332		$	167,212		$	636,748		$	727,062
Segment Operating Profit (5)
Dispute and Investigative Services		21,585			25,408			46,993			25,966			30,025			28,369			28,234			112,594			143,870
% of Revenues Before Reimbursements		36	%		40	%		38	%		40	%		43	%		40	%		39	%		41	%		44	%
Business Consulting Services		23,148			19,017			42,165			18,881			21,763			20,332			23,452			84,428			115,280
% of Revenues Before Reimbursements		36	%		33	%		35	%		32	%		37	%		35	%		35	%		35	%		40	%
International Consulting		3,663			3,740			7,403			2,661			4,793			4,406			4,176			16,036			22,606
% of Revenues Before Reimbursements		25	%		23	%		24	%		15	%		28	%		27	%		27	%		24	%		30	%
Economic Consulting		6,273			6,296			12,569			3,402			5,239			4,888			4,644			18,173			14,121
% of Revenues Before Reimbursements		37	%		37	%		37	%		30	%		38	%		37	%		36	%		35	%		40	%
Total Company	$	54,669		$	54,461		$	109,130		$	50,910		$	61,820		$	57,995		$	60,506		$	231,231		$	295,877
% of Revenues Before Reimbursements		35	%		35	%		35	%		33	%		39	%		37	%		36	%		36	%		41	%
Other Operating Data
Average Billable Full Time Equivalent Headcount
Dispute and Investigative Services		642			647			644			701			716			764			810			747			820
Business Consulting Services		699			706			702			668			699			735			804			727			836
International Consulting		200			212			206			211			215			233			226			221			208
Economic Consulting		119			114			117			105			104			100			101			102			62
Total Company		1,660			1,679			1,669			1,685			1,734			1,832			1,941			1,797			1,926
Average Bill Rate (excluding success fees)
Dispute and Investigative Services		300			292			295			282			280			276			278			279			284
Business Consulting Services		217			218			217			223			215			210			219			216			223
International Consulting		259			263			261			267			259			239			233			248			294
Economic Consulting		385			367			376			342			347			344			343			344			332
Total Company		266			264			264			260			255			250			252			254			260
Average Utilization (based off 1,850 hrs)
Dispute and Investigative Services		69	%		75	%		72	%		75	%		74	%		72	%		73	%		74	%		78	%
Business Consulting Services		81	%		80	%		81	%		79	%		79	%		75	%		77	%		77	%		80	%
International Consulting		60	%		65	%		62	%		67	%		68	%		61	%		67	%		66	%		69	%
Economic Consulting		76	%		90	%		82	%		76	%		81	%		87	%		85	%		82	%		96	%
Total Company		73	%		77	%		75	%		76	%		76	%		73	%		75	%		75	%		79	%

(4)	During the first quarter of 2010, we made organizational changes in our business which resulted in the formation of additional operating segments and the repositioning of certain service offerings between the segments. Prior year comparative segment data has been restated to be consistent with the current presentation.
(5)	Segment Operating Profit is a measure of profit used by management and excludes certain expense amounts not allocated to the specific reporting segments.

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(UNAUDITED)

Non-GAAP Financial Information

This metrics summary includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to the Company’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this metrics summary. During 2009, the Company incurred significant severance expense as staffing levels were adjusted to market demand and Navigant executed its strategic refresh initiative involving the redeployment of certain resources. The Company also continues to be impacted by office consolidation expense due to its real estate initiatives including the impact of closing certain offices and changes in market conditions associated with expected sublease proceeds. Adjusted EBITDA exclude the impact of severance and office consolidation expense and adjusted earnings per share excludes the net income impact of severance and office consolidation expense in all periods presented. Severance and office consolidation expense are not considered to be non-recurring, infrequent or unusual to our business, however, management believes providing investors with this information gives additional insights into Navigant’s operating performance. While management believes that these non-GAAP financial measures are useful in evaluating Navigant’s operations, this information should be considered as supplemental in nature and not as a substitute for or superior to, any measure prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA

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 provides 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 interest, debt service, taxes and capital expenditures. Investors should recognize that EBITDA might not be comparable to similarly-titled measures of other companies. Adjusted EBITDA excludes the impact of severance and office consolidation expense as discussed above. This measure 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.

	2010						2010			2009												2009			2008
	Q2			Q1			Full Year			Q4			Q3			Q2			Q1			Full Year			Full Year
Operating Income	$	16,885		$	14,583		$	31,468		$	11,603		$	17,716		$	9,528		$	12,884		$	51,731		$	88,754
Depreciation		3,553			3,801			7,354			4,288			4,352			4,320			4,640			17,600			17,302
Accelerated depreciation - office closures      included in other operating costs		—			—			—			175			115			387			608			1,285			2,534
Amortization		2,962			2,796			5,758			2,947			3,055			3,392			3,620			13,014			16,386
EBITDA		23,400			21,180			44,580			19,013			25,238			17,627			21,752			83,630			124,976
Add:
Office consolidation (excluding depreciation above)		—			—			—			2,130			870			4,225			300			7,525			2,673
Severance expense		1,007			836			1,843			4,305			1,545			1,340			3,007			10,197			4,260
Adjusted EBITDA (excluding office consolidation and severance expense)		24,407			22,016			46,423			25,448			27,653			23,192			25,059			101,352			131,909
General and administrative expenses		29,089			30,460			59,549			28,142			32,500			33,513			34,893			129,048			155,378
Long term compensation expense related to consulting personnel (including share based compensation)		2,180			2,821			5,001			1,625			3,212			2,630			3,561			11,028			12,850
Severance expense added above		(1,007	)		(836	)		(1,843	)		(4,305	)		(1,545	)		(1,340	)		(3,007	)		(10,197	)		(4,260	)
Total Segment Operating Profit	$	54,669		$	54,461		$	109,130		$	50,910		$	61,820		$	57,995		$	60,506		$	231,231		$	295,877

Adjusted earnings per share (adjusted to exclude the net income impact from office consolidation and severance expense)

The Company discloses adjusted earnings per share to exclude the net income impact from severance and office consolidation expense as discussed above. Management believes the adjusted earnings per share information provides additional insights into Navigant’s ongoing operating performance. This measure 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.

	2010						2010			2009												2009			2008
	Q2			Q1			Full Year			Q4			Q3			Q2			Q1			Full Year			Full Year
Office consolidation expense	$	—		$	—		$	—		$	2,305		$	985		$	4,612		$	908		$	8,810		$	5,207
Tax benefit (6)		—			—			—			(930	)		(397	)		(1,860	)		(366	)		(3,553	)		(2,100	)
Net income impact of office consolidation expense	$	—		$	—		$	—		$	1,375		$	588		$	2,752		$	542		$	5,257		$	3,107
Shares used in computing income per diluted share		50,264			50,096			50,180			50,018			49,954			49,756			49,449			49,795			48,285
Diluted income per share impact of office consolidation expense	$	—		$	—		$	—		$	0.03		$	0.01		$	0.06		$	0.01		$	0.11		$	0.06
Severance expense	$	1,007		$	836		$	1,843		$	4,305		$	1,545		$	1,340		$	3,007		$	10,197		$	4,260
Tax benefit(6)		(371	)		(322	)		(693	)		(1,442	)		(480	)		(497	)		(1,170	)		(3,589	)		(1,512	)
Net income impact of severance expense	$	636		$	514		$	1,150		$	2,863		$	1,065		$	843		$	1,837		$	6,608		$	2,748
Shares used in computing income per diluted share		50,264			50,096			50,180			50,018			49,954			49,756			49,449			49,795			48,285
Diluted income per share impact of severance expense	$	0.01		$	0.01		$	0.02		$	0.06		$	0.02		$	0.02		$	0.04		$	0.13		$	0.06
Net income	$	7,828		$	6,447		$	14,275		$	4,789		$	8,340		$	3,385		$	5,433		$	21,947		$	40,057
Net income impact of office consolidation expense		—			—			—			1,375			588			2,752			542			5,257			3,107
Net income impact of severance expense		636			514			1,150			2,863			1,065			843			1,837			6,608			2,748
Adjusted net income, excluding the net income impact of office consolidation and severance expense	$	8,464		$	6,961		$	15,425		$	9,027		$	9,993		$	6,980		$	7,812		$	33,812		$	45,912
Shares used in computing income per diluted share		50,264			50,096			50,180			50,018			49,954			49,756			49,449			49,795			48,285
Adjusted earnings per share, excluding the net income impact of office consolidation and severance expense	$	0.17		$	0.14		$	0.31		$	0.18		$	0.20		$	0.14		$	0.16		$	0.68		$	0.95

(6) Effective tax benefit has been determined based on specific tax jurisdiction.