Navigant Consulting 8-K Navigant Reports Second Quarter 2014 Financial Results

Exhibit 99.1

NAVIGANT REPORTS SECOND QUARTER 2014 FINANCIAL RESULTS

CHICAGO, July 29, 2014 –Navigant (NYSE:NCI) today announced financial results for the second quarter ended June 30, 2014. Results for the quarter include the partial period contribution from Cymetrix Corporation, a revenue cycle management firm providing services to hospital and healthcare networks, acquired on May 14, 2014.

Financial Summary and Highlights:

• Second quarter 2014 revenues before reimbursements (RBR) of $186.5 million and total revenues of $208.1 million.

• Net loss per share from continuing operations of $1.55 reflecting a non-cash goodwill impairment of $122.0 million ($86.9 million or $1.78 per share on an after-tax basis).

• Adjusted earnings per share (EPS) of $0.22 and adjusted EBITDA of $27.4 million, both of which exclude the impact of the non-cash goodwill impairment and other items.

• Repurchased 404,508 shares of common stock in second quarter 2014 at an average cost of $17.39 per share.

• Reiterates financial outlook for 2014.

Navigant reported second quarter 2014 RBR of $186.5 million compared to $187.1 million for second quarter 2013. Total revenues for the Company were $208.1 million for second quarter 2014 compared to $209.7 million for second quarter 2013. The Company reported a net loss from continuing operations for second quarter 2014 of $75.9 million, or $1.55 per share, reflecting a non-cash goodwill impairment of $122.0 million ($86.9 million or $1.78 per share on an after-tax basis) to reduce the carrying value of goodwill related to the Disputes, Investigations & Economics segment. Net income from continuing operations in the prior year quarter was $14.2 million, or $0.28 per share. Adjusted EPS was $0.22 for second quarter 2014 compared to $0.31 for second quarter 2013. Adjusted EBITDA was $27.4 million for second quarter 2014 compared to $34.5 million for the second quarter 2013.

Julie Howard, Chairman and Chief Executive Officer, commented, “During the quarter, better-than-expected performance from several regulatory compliance matters in the Financial, Risk & Compliance segment only partially offset lower organic growth in other areas, particularly in our Healthcare segment. However we still expect to deliver on our previously stated RBR expectations for the full year 2014, albeit with a different mix among business areas than previously anticipated. Longer term, we expect our Healthcare and Energy segments to reaccelerate organic growth as we benefit from favorable industry demand trends in these high-growth sectors and as we continue to pursue and develop solutions that offer more consistent, recurring revenue opportunities. During the quarter, we announced the acquisition of Cymetrix which represents an important step in this direction. This and other recent investments, along with the addition of senior hires throughout the organization, are expected to accelerate our growth plans but have impacted near-term profitability.”

Segment Financial Summary

	For the quarter ended June 30,
	2014			2013			Change
RBR ($000)
Disputes, Investigations & Economics	$	76,294		$	76,352			-0.1	%
Financial, Risk & Compliance		32,193			40,097			-19.7	%
Healthcare		54,446			46,814			16.3	%
Energy		23,571			23,803			-1.0	%
Total Company	$	186,504		$	187,066			-0.3	%
Total Revenues ($000)
Disputes, Investigations & Economics	$	82,444		$	82,828			-0.5	%
Financial, Risk & Compliance		38,224			46,939			-18.6	%
Healthcare		60,476			52,383			15.4	%
Energy		26,953			27,505			-2.0	%
Total Company	$	208,097		$	209,655			-0.7	%
Segment Operating Profit ($000)
Disputes, Investigations & Economics	$	26,213		$	25,393			3.2	%
Financial, Risk & Compliance		13,541			16,791			-19.4	%
Healthcare		15,475			18,110			-14.5	%
Energy		7,009			8,075			-13.2	%
Total Company	$	62,238		$	68,369			-9.0	%
Segment Operating Margin (% of RBR)
Disputes, Investigations & Economics		34.4	%		33.3	%
Financial, Risk & Compliance		42.1	%		41.9	%
Healthcare		28.4	%		38.7	%
Energy		29.7	%		33.9	%
Total Company		33.4	%		36.5	%

Healthcare RBR increased 16% year-over-year for second quarter 2014. Growth was driven by an increased contribution from Navigant’s revenue cycle management services, which include both the Cymetrix and Alleviant operations. The integration of the acquired Cymetrix operations is proceeding according to plan. On an organic basis, RBR was flat for the segment in the second quarter, year over year, primarily because two sizeable engagements that were completed in the second half of 2013 have not yet been replaced with similarly sized projects in 2014. Additionally, the U.S. Government’s postponement of the ICD-10 compliance date has caused some clients to cancel or delay their related engagements. Segment operating profit was 15% lower compared to second quarter 2013. Navigant expects a resumption of year-over-year organic growth in the Healthcare segment in the second half of 2014.

2

The Financial, Risk & Compliance segment benefited from strong demand from financial institutions which are required to address heightened regulation and compliance requirements. The segment delivered better-than-anticipated RBR for second quarter 2014, resulting in a smaller than expected year-over-year RBR decline compared to second quarter 2013. The decline in year-over-year RBR reflects significant RBR from mortgage servicing review engagements in the second quarter of 2013 which were substantially completed in the first half of 2013 as well as the expected reduced RBR contribution from restructuring services in 2014. For the second quarter 2014, segment operating margin remained stable at 42% as segment operating profit declined 19% year-over-year, consistent with the expected decline in RBR.

RBR performance for the Energy segment in the second quarter 2014 was relatively consistent compared to second quarter 2013 RBR. Segment operating profit in the second quarter 2014 decreased 13% year over year due to investments in senior hires during 2014. Navigant expects to benefit over time from the recent investments in senior hires and ongoing alignment of resources with anticipated market trends. Additionally, Navigant is investing in the expansion of the segment’s capabilities more broadly into other growth areas, including oil and gas.

Stable RBR performance in the Disputes, Investigations & Economics segment for second quarter 2014 compared to 2013 reflected strong demand in the global construction sector and in the legal technology solutions area. These improvements were offset by lower RBR from the economics business and from international arbitration services which experienced a very strong environment in the prior year period. Segment operating profit increased 3% compared to the same period of 2013.

Goodwill Impairment

After performing its annual goodwill impairment test during the second quarter of 2014 and in connection with the preparation of its second quarter 2014 financial statements, the Company determined that a pre-tax goodwill impairment of $122.0 million related to its Disputes, Investigations & Economics segment was necessary. In making this determination, the Company considered historical financial performance, future projections for the segment and other considerations. The impairment is only partially deductible for income tax purposes, reducing the associated tax benefit of the impairment and resulting in the Company’s second quarter 2014 effective tax rate being significantly lower than historical rates. The goodwill impairment was non-cash in nature and did not affect the Company’s current liquidity, cash flows, borrowing capability or operations, nor did it impact the debt covenants under its credit agreement.

Cash Flow

Net cash provided by operating activities was $35.2 million for second quarter 2014 compared to $47.5 million for the same period in 2013. Free cash flow was $17.2 million for second quarter 2014 compared to $24.5 million for the same period in 2013. The decrease in free cash flow was primarily due to lower earnings in second quarter 2014 compared to 2013 and increased capital spending, primarily on technology infrastructure and software investments. DSO was 82 days as of June 30, 2014 compared to 79 days at June 30, 2013.

3

Bank debt was $188.8 million at June 30, 2014 compared to $128.1 million at June 30, 2013. The increase reflects additional borrowings to fund the Cymetrix acquisition. Leverage (bank debt divided by trailing twelve month adjusted EBITDA) increased to 1.71 at June 30, 2014 compared to 1.05 at June 30, 2013.

Navigant repurchased 404,508 shares of common stock during second quarter 2014 at an aggregate cost of $7.0 million and an average cost of $17.39 per share. As of June 30, 2014, $85.6 million remained on the Company’s share repurchase authorization.

Lucinda (Cindy) Baier, Executive Vice President and Chief Financial Officer, commented, “We are excited to add Cymetrix to our portfolio during the second quarter, and we are pleased with the initial progress of the integration. The financial flexibility resulting from our significant deleveraging over the past several years enabled us to use our credit facility to finance the acquisition of Cymetrix. Moving forward, we plan to make the necessary investments in additional infrastructure and technology to ensure a successful integration of the acquired operations while maintaining the ability to pursue additional growth initiatives. At the same time, our anticipated strong operating cash flows are expected to help reduce our leverage ratio to under 1.5 by the end of 2014 even as we continue to return cash to shareholders through our ongoing share repurchase program.”

2014 Outlook

Navigant reiterated its full year 2014 outlook of RBR in the range of $772 and $816 million with 2014 total revenues estimated in the range of $848 and $892 million. Adjusted EBITDA is expected to range between $120 and $130 million and adjusted EPS is estimated to be between $0.94 and $1.06.

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.

4

Conference Call Details

Julie Howard and Cindy Baier will host a conference call to discuss the Company’s second quarter 2014 results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Tuesday, July 29, 2014. The conference call may be accessed via the Navigant website(www.navigant.com/investor_relations) or by dialing 888.469.1095 (517.308.9064 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. Enhanced by senior level engagement with clients, Navigant professionals provide services that extend from expert and advisory work through implementation and outsourcing. 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 atwww.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 revenue cycle management; 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 atwww.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.

For additional information contact:

Paul Longhini

Investor Relations

312.583.5836

plonghini@navigant.com

###

5

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In thousands, except per share data (1))

(Unaudited)

	For the quarter ended June 30,						For the six months ended June 30,
	2014			2013			2014			2013
Revenues:
Revenues before reimbursements	$	186,504		$	187,066		$	361,560		$	370,200
Reimbursements		21,593			22,589			44,285			48,954
Total revenues		208,097			209,655			405,845			419,154
Costs of services:
Cost of services before reimbursable expenses		126,792			122,360			246,920			245,412
Reimbursable expenses		21,593			22,589			44,285			48,954
Total costs of services		148,385			144,949			291,205			294,366
General and administrative expenses		34,237			32,556			67,339			65,122
Depreciation expense		4,953			4,100			9,262			7,830
Amortization expense		1,633			1,713			2,995			3,411
Other operating costs (benefit):
Contingent acquisition liability adjustments, net		(2,444	)		—			(3,604	)		—
Office consolidation, net		—			290			—			498
Gain on disposition of assets		—			—			—			(1,715	)
Goodwill impairment		122,045			—			122,045			—
Other impairment		204			—			204			—
Operating income (loss)		(100,916	)		26,047			(83,601	)		49,642
Interest expense		1,397			1,172			2,235			2,397
Interest income		(71	)		(112	)		(160	)		(275	)
Other (income) expense, net		186			6			268			(142	)
Income (loss) from continuing operations before income tax (benefit) expense		(102,428	)		24,981			(85,944	)		47,662
Income tax (benefit) expense		(26,569	)		10,732			(20,455	)		20,298
Net income (loss) from continuing operations		(75,859	)		14,249			(65,489	)		27,364
Income (loss) from discontinued operations, net of tax		—			(299	)		509			384
Net income (loss)	$	(75,859	)	$	13,950		$	(64,980	)	$	27,748
Basic per share data
Net income (loss) from continuing operations	$	(1.55	)	$	0.28		$	(1.34	)	$	0.55
Income (loss) from discontinued operations, net of tax	$	—		$	(0.01	)	$	0.01		$	0.01
Net income (loss) (1)	$	(1.55	)	$	0.28		$	(1.33	)	$	0.55
Shares used in computing basic per share data		48,971			50,041			48,917			50,168
Diluted per share data
Net income (loss) from continuing operations	$	(1.55	)	$	0.28		$	(1.34	)	$	0.53
Income (loss) from discontinued operations, net of tax	$	—		$	(0.01	)	$	0.01		$	0.01
Net income (loss)	$	(1.55	)	$	0.27		$	(1.33	)	$	0.54
Shares used in computing diluted per share data (2)		48,971			51,022			48,917			51,191

6

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AND SELECTED DATA

(In thousands, except DSO data)

	June 30, 2014			December 31, 2013
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	9,852		$	1,968
Accounts receivable, net		205,527			167,066
Prepaid expenses and other current assets		26,633			24,554
Deferred income tax assets		14,550			17,314
Total current assets		256,562			210,902
Non-current assets:
Property and equipment, net		57,149			44,338
Intangible assets, net		27,776			10,778
Goodwill		571,863			615,343
Other assets		20,984			22,836
Total assets	$	934,334		$	904,197
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	11,087		$	13,415
Accrued liabilities		11,006			12,691
Accrued compensation-related costs		59,002			78,610
Income tax payable		—			1,137
Other current liabilities		28,990			32,009
Total current liabilities		110,085			137,862
Non-current liabilities:
Deferred income tax liabilities		71,240			86,571
Other non-current liabilities		38,888			26,016
Bank debt non-current		188,825			56,673
Total non-current liabilities		298,953			169,260
Total liabilities		409,038			307,122
Stockholders’ equity:
Common stock		63			63
Additional paid-in capital		606,606			598,724
Treasury stock		(262,522	)		(247,106	)
Retained earnings		189,755			254,735
Accumulated other comprehensive loss		(8,606	)		(9,341	)
Total stockholders’ equity		525,296			597,075
Total liabilities and stockholders’ equity	$	934,334		$	904,197
Selected Data
Days sales outstanding, net (DSO)		82			65

7

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	For the quarter ended June 30,						For the six months ended June 30,
	2014			2013			2014			2013
Cash flows from operating activities:
Net income (loss)	$	(75,859	)	$	13,950		$	(64,980	)	$	27,748
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation expense		4,953			4,100			9,262			7,830
Accelerated depreciation—office consolidation		—			290			—			498
Amortization expense		1,633			1,713			2,995			3,411
Amortization expense—client-facing software		178			78			242			151
Share-based compensation expense		2,522			2,874			5,236			5,419
Accretion of interest expense		490			234			654			453
Deferred income taxes		(31,638	)		4,951			(24,395	)		11,973
Allowance for doubtful accounts receivable		1,904			972			2,784			1,227
Contingent acquisition liability adjustments, net		(2,444	)		—			(3,604	)		—
Gain on disposition of assets		—			—			—			(1,715	)
Gain on disposition of discontinued operations		—			—			(509	)		—
Goodwill impairment		122,045			—			122,045			—
Other impairment		204			—			204			—
Changes in assets and liabilities (net of acquisitions and dispositions):
Accounts receivable		(8,943	)		680			(29,293	)		(16,264	)
Prepaid expenses and other assets		2,864			5,728			141			7,125
Accounts payable		(1,765	)		(5,629	)		(4,216	)		(5,559	)
Accrued liabilities		(472	)		1,460			(1,695	)		87
Accrued compensation-related costs		19,703			20,644			(21,619	)		(21,428	)
Income taxes payable		239			132			(837	)		(5,412	)
Other liabilities		(370	)		(4,692	)		(4,879	)		21
Net cash (used in) provided by operating activities		35,244			47,485			(12,464	)		15,565
Cash flows from investing activities:
Purchases of property and equipment		(4,450	)		(2,075	)		(10,942	)		(5,755	)
Acquisitions of businesses, net of cash acquired		(83,334	)		—			(84,834	)		—
Proceeds from dispositions, net of selling costs		—			—			824			15,607
Payments of acquisition liabilities		(443	)		(348	)		(443	)		(348	)
Capitalized client-facing software		(36	)		(633	)		(864	)		(2,001	)
Net cash (used in) provided by investing activities		(88,263	)		(3,056	)		(96,259	)		7,503
Cash flows from financing activities:
Issuances of common stock		516			1,074			1,535			2,145
Repurchase of common stock		(7,036	)		(7,451	)		(14,427	)		(13,645	)
Payments of contingent acquisition liabilities		—			(1,287	)		(107	)		(3,287	)
Repayments to banks		(88,497	)		(101,764	)		(156,895	)		(204,444	)
Borrowings from banks		156,420			65,224			288,774			199,338
Other, net		(1,272	)		(507	)		(2,281	)		(1,452	)
Net cash (used in) provided by financing activities		60,131			(44,711	)		116,599			(21,345	)
Effect of exchange rate changes on cash and cash equivalents		2			(69	)		8			(187	)
Net increase in cash and cash equivalents		7,114			(351	)		7,884			1,536
Cash and cash equivalents at beginning of the period		2,738			2,939			1,968			1,052
Cash and cash equivalents at end of the period	$	9,852		$	2,588		$	9,852		$	2,588

8

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 adjusted Earnings Per Share (4)	For the quarter ended June 30,						For the six months ended June 30,
	2014			2013			2014			2013
Severance expense	$	1,972		$	2,372		$	2,477		$	3,806
Income tax benefit (5)		(758	)		(798	)		(957	)		(1,223	)
Impact of severance expense, net of tax	$	1,214		$	1,574		$	1,520		$	2,583
Other operating benefit—contingent acquisition liability adjustment	$	(2,444	)	$	—		$	(3,604	)	$	—
Income tax expense (5)		985			—			1,453			—
Impact of other operating benefit—contingent acquisition liability adjustment, net of tax	$	(1,459	)	$	—		$	(2,151	)	$	—
Other operating costs —office consolidation	$	—		$	290		$	—		$	498
Income tax benefit (5)		—			(117	)		—			(201	)
Impact of other operating costs—office consolidation, net of tax	$	—		$	173		$	—		$	297
Other operating benefit—gain on disposition of assets	$	—		$	—		$	—		$	(1,715	)
Income tax expense (5)		—			—			—			692
Impact of other operating benefit—gain on disposition of assets, net of tax	$	—		$	—		$	—		$	(1,023	)
Other operating costs—goodwill impairment	$	122,045		$	—		$	122,045		$	—
Income tax benefit (5)		(35,111	)		—			(35,111	)		—
Impact of other operating costs—goodwill impairment, net of tax	$	86,934		$	—		$	86,934		$	—
Other operating costs—other impairment	$	204		$	—		$	204		$	—
Income tax benefit (5)		(82	)		—			(82	)		—
Impact of other operating costs—other impairment, net of tax	$	122		$	—		$	122		$	—
EBITDA reconciliation:
Operating income (loss)	$	(100,916	)	$	26,047		$	(83,601	)	$	49,642
Depreciation expense		4,953			4,100			9,262			7,830
Accelerated depreciation—office consolidation		—			290			—			498
Amortization expense		1,633			1,713			2,995			3,411
EBITDA	$	(94,330	)	$	32,150		$	(71,344	)	$	61,381
Severance expense		1,972			2,372			2,477			3,806
Other operating benefit—contingent acquisition liability adjustment		(2,444	)		—			(3,604	)		—
Other operating benefit—gain on disposition of assets		—			—			—			(1,715	)
Other operating costs—goodwill impairment		122,045			—			122,045			—
Other operating costs—other impairment		204			—			204			—
Adjusted EBITDA	$	27,447		$	34,522		$	49,778		$	63,472
Net income (loss) from continuing operations	$	(75,859	)	$	14,249		$	(65,489	)	$	27,364
Impact of severance expense, net of tax		1,214			1,574			1,520			2,583
Impact of other operating benefit—contingent acquisition liability adjustment, net of tax		(1,459	)		—			(2,151	)		—
Impact of other operating costs—office consolidation, net of tax		—			173			—			297
Impact of other operating benefit—gain on disposition of assets, net of tax		—			—			—			(1,023	)
Impact of other operating costs—goodwill impairment, net of tax		86,934			—			86,934			—
Impact of other operating costs—other impairment, net of tax		122			—			122			—
Adjusted net income	$	10,952		$	15,996		$	20,936		$	29,221
Shares used in computing adjusted per diluted share data (6)		50,078			51,022			50,257			51,191
Adjusted earnings per share	$	0.22		$	0.31		$	0.42		$	0.57
Free Cash Flow (7)	For the quarter ended June 30,						For the six months ended June 30,
	2014			2013			2014			2013
Net cash (used in) provided by operating activities	$	35,244		$	47,485		$	(12,464	)	$	15,565
Changes in assets and liabilities		(11,256	)		(18,323	)		62,398			41,430
Allowance for doubtful accounts receivable		(1,904	)		(972	)		(2,784	)		(1,227	)
Purchases of property and equipment		(4,450	)		(2,075	)		(10,942	)		(5,755	)
Payments of acquisition liabilities		(443	)		(348	)		(443	)		(348	)
Payments of contingent acquisition liabilities		—			(1,287	)		(107	)		(3,287	)
Free Cash Flow	$	17,191		$	24,480		$	35,658		$	46,378

Leverage Ratio (8)	At June 30,
	2014		2013
Adjusted EBITDA for prior twelve-month period	$	110,379	$	122,446
Bank debt	$	188,825	$	128,064
Leverage ratio		1.71		1.05

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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) 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 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.

(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.

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