Navigant Consulting 8-K Navigant Reports Second Quarter 2018 Financial Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

For more information, contact:

Kyle Bland Navigant Investor Relations 312.573.5624 kyle.bland@navigant.com Belia Ortega Navigant Corporate Communications 312.583.2640 belia.ortega@navigant.com

NAVIGANT REPORTS SECOND QUARTER 2018 FINANCIAL RESULTS

CHICAGO, Aug. 2, 2018 –Navigant (NYSE: NCI) today reported financial results for the quarter ended June 30, 2018.

Second quarter 2018 highlights:

• Combined revenues and revenues before reimbursements (RBR), which includes results from continuing and discontinued operations, were $275.7 and $252.4 million, respectively, both up 7% compared to second quarter 2017; revenues and RBR from continuing operations were $184.7 million and $165.2 million, respectively, up 4% and 3% compared to the prior year period

• Net income (Combined) was $28.8 million, or $0.62 per share, compared to $8.8 million, or $0.18 per share, for second quarter 2017; net income from continuing operations of $6.1 million, or $0.13 per share, was up $3.5 million from the prior year period

• Combined Adjusted Earnings per Share (EPS) of $0.49 increased $0.25 compared to second quarter 2017; Adjusted EPS from continuing operations was $0.17, up $0.09 compared to the prior year period

• Management provides 2018 financial guidance targets from continuing operations, as well as a preliminary view of 2019 performance, both of which reflect the pending divestiture of the Disputes, Forensics and Legal Technology (DFLT) segment and the Transaction Advisory Services (TAS) practice (collectively “SaleCo”, which comprises discontinued operations) to Ankura Consulting Group, LLC (Ankura)

“Our strong second quarter operating results reflect continued robust demand for consulting services across many areas of our business,” said Julie Howard, chairman and CEO of Navigant. “In the quarter, our Energy and FSAC segments produced solid year-over-year RBR improvements which more than offset continued softness in some parts of our Healthcare segment. The quarter also benefitted from positive results in our legacy DFLT and TAS practices, which, with the pending divestiture of these businesses, have been classified as discontinued operations in our results.”

Howard continued, “With a successful first half of 2018 behind us, including some significant strategic milestones, we look forward to moving into the second half of the year and 2019 with a sharp focus on continued execution of our key strategic initiatives. These include ensuring a smooth transition of SaleCo to Ankura, executing on our target of up to $175 million of capital return to shareholders over the next 12 months, rightsizing our G&A spend to better align with our new organizational footprint and continuing pursuit of organic and inorganic growth opportunities to augment our industry expertise and technological capabilities. We expect that continued successful execution will produce strong, long-term value for shareholders as we write the next chapter for Navigant.”

SECOND QUARTER 2018 FINANCIAL RESULTS

	For the quarter ended June 30,
(Dollars in millions, excluding per share data)	2018		2017		Increase / (Decrease)
Combined Results(1)(2)
Revenue	$	275.7	$	256.8	$	18.9
RBR	$	252.4	$	235.2	$	17.2
Net Income	$	28.8	$	8.8	$	20.0
Adjusted EBITDA	$	39.7	$	29.2	$	10.5
Adjusted Earnings per Share	$	0.49	$	0.24	$	0.25
Continuing Operations
Revenue	$	184.7	$	177.7	$	7.0
RBR	$	165.2	$	160.1	$	5.1
Net Income	$	6.1	$	2.6	$	3.5
Adjusted EBITDA(2)	$	17.6	$	14.6	$	3.0
Adjusted Earnings per Share(2)	$	0.17	$	0.08	$	0.09

(1) Combined results include continuing and discontinued operations

(2) See definition and reconciliation ofnon-GAAP measures elsewhere in this release

Navigant reported second quarter 2018 Combined revenues and RBR of $275.7 million and $252.4 million, respectively, up 7% compared to the second quarter 2017, reflecting improved demand in two of the Company’s three continuing segments, as well as increased revenue from discontinued operations driven largely by higher mass-tort claims volumes. Revenues and RBR from continuing operations were $184.7 million and $165.2 million, respectively, up 4% and 3% compared to the prior year period.

Second quarter 2018 Combined Adjusted EBITDA was $39.7 million, up 36% from the prior year period as higher revenue with improved margins drove increased performance for both continuing and discontinued operations. Second quarter 2018 Adjusted EBITDA from continuing operations of $17.6 million was up 21% compared to the prior year period and includes a disproportionate share of general and administrative (G&A) costs based on discontinued operations accounting rules. When excluding bad debt, G&A costs for continuing operations as a percent of RBR was 20.5%, a 110bps improvement compared to the second quarter 2017.

Second quarter 2018 Combined net income of $28.8 million was up $20.0 million or 228% compared to second quarter 2017 driven by the operating performance discussed above, as well as lower taxes due to the impact of the Tax Cuts and Jobs Act in the current year period. Additionally, due to ourheld-for-sale presentation, the Company recognized a $7.9 million tax benefit in the quarter related to the recognition of goodwill tax basis on a portion of the assets that were moved to discontinued operations. GAAP EPS and Adjusted EPS (Combined) were $0.62 and $0.49, respectively, for second quarter 2018, $0.44 and $0.25 higher, respectively, than the prior year period. On a continuing operations basis, GAAP EPS and Adjusted EPS were $0.13 and $0.17, respectively, for second quarter 2018, $0.08 and $0.09 higher, respectively, than the prior year period.

CASH FLOW AND BALANCE SHEET

Second quarter 2018 net cash provided by operating activities was $53.5 million compared to $19.6 million for second quarter 2017, driven primarily by improved operating performance and lower working capital in the current year period. Days Sales Outstanding on June 30, 2018, on a Combined and continuing operations basis, was 84 days and 72 days, respectively, both a1-day improvement compared to December 31, 2017. Free Cash Flow, which as defined excludes working capital, increased to $29.1 million for second quarter 2018 compared to $13.5 million in second quarter 2017, primarily due to improved operating performance and lower capital expenditures in the current year period.

Bank debt outstanding on June 30, 2018 was $147.0 million, up $14.1 million compared to $132.9 million outstanding on December 31, 2017. Leverage (bank debt divided by trailing twelve months Combined Adjusted EBITDA) was 1.09 times at June 30, 2018.

Navigant continued executing its share repurchase program with an additional 342 thousand shares of common stock repurchased during the second quarter 2018 at an aggregate cost of $7.5 million and an average price of $21.92 per share. As of June 30, 2018, the Company had $172.0 million remaining under its stock repurchase authorization, which was refreshed on May 10, 2018 and expires on December 31, 2020.

SECOND QUARTER 2018 SEGMENT RESULTS

	For the quarter ended June 30,
(Dollars in millions, numbers may not foot due to rounding)	2018			2017			Increase / (Decrease)
RBR
Healthcare	$	91.6		$	98.0		$	(6.4	)
Energy		36.6			31.7			4.9
Financial Services Advisory and Compliance		37.0			30.3			6.7
Continuing Operations	$	165.2		$	160.1		$	5.1
Revenues
Healthcare	$	100.3		$	107.3		$	(7.0	)
Energy		44.2			36.5			7.7
Financial Services Advisory and Compliance		40.3			33.8			6.5
Continuing Operations	$	184.7		$	177.7		$	7.0
Segment Operating Profit
Healthcare	$	27.4		$	28.9		$	(1.5	)
Energy		12.7			8.5			4.2
Financial Services Advisory and Compliance		13.4			11.7			1.7
Continuing Operations	$	53.4		$	49.1		$	4.3
Segment Operating Margin (% of RBR)
Healthcare		29.9	%		29.5	%		0.4	%
Energy		34.6	%		26.8	%		7.8	%
Financial Services Advisory and Compliance		36.2	%		38.5	%		-2.3	%
Continuing Operations		32.3	%		30.7	%		1.6	%

Healthcare segment RBR of $91.6 million decreased 7% for the second quarter 2018 compared to the same prior year period. Consistent with the last several quarters, the demand environment for certain of our consulting services remained depressed and impacted revenue performance in the quarter. Segment operating profit of $27.4 million declined $1.5 million in second quarter 2018 compared to the second quarter 2017 due to lower revenue but improved $7.0 million, or 34%, compared to the first quarter 2018 as headcount and other costs actions taken in the first quarter 2018, in both consulting and managed services, contributed to improved margin performance.

Energy segment RBR for second quarter 2018 of $36.6 million increased 15% compared to second quarter 2017 and was up 9% sequentially. Continued strong demand in the U.S. and abroad for expertise around areas such as energy efficiency programs and grid modernization helped drive the revenue improvement. Segment operating profit of $12.7 million for the quarter was up 49% compared to the second quarter 2017 due to increased revenue and lower headcount driven by 2017 cost management actions.

Financial Services Advisory and Compliance segment RBR finished at $37.0 million, up 22% compared to second quarter 2017. Continued growth across the segment was driven by increased activity in financial crime, sanctions, and operational efficiency engagements across a number of our largest clients. Segment operating profit of $13.4 million increased 15% as revenue gains were achieved on slightly lower utilization.

2018 GUIDANCE – CONTINUING OPERATIONS

Management provides 2018 guidance for continuing operations:

• Revenues estimated to be between $740 million and $765 million

• RBR expected to range between $660 million and $685 million

• Adjusted EBITDA expected to range between $52 million and $59 million

• Adjusted EPS estimated to be between $0.40 and $0.50 per share

PRELIMINARY 2019 VIEW – CONTINUING OPERATIONS

Management provides a preliminary view of targeted organic 2019 financial performance for continuing operations:

• RBR growth estimated to be approximately 9% to 12% (compared to full-year 2018)

• Adjusted EBITDA expected to range between $85 million and $95 million

• Adjusted EPS growth estimated to be approximately 120% (compared to full-year 2018)

This “Preliminary 2019 View” is a view of possible 2019 performance and is provided without the benefit of knowledge of the Company’s performance during the last six months of 2018 or the completion of management’s budgeting process for 2019.

CONFERENCE CALL DETAILS

Navigant will host a conference call to discuss the Company’s second quarter 2018 results at 9 a.m. Eastern Time (8 a.m. Central Time) later this morning, Thursday, Aug. 2, 2018. The conference call may be accessed via the Navigant website (investors.navigant.com) or by dialing 888.455.9733 (630.395.0358 for international callers) and referencing pass code “NCI.” Presentation materials for the webcast, as well as a report of financial and related supplemental information will available on the Navigant website, as will an archived replay of the earnings conference call.

NON-GAAP FINANCIAL INFORMATION

This press release includes certainnon-GAAP financial measures as defined by the Securities and Exchange Commission. Reconciliations of thesenon-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.

Navigant has provided guidance regarding Adjusted EBITDA and Adjusted Earnings Per Share both of which exclude the impact of severance expense and other operating costs (benefit), as applicable. Navigant is not able to accurately forecast the excluded items at the level of precision that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.

BASIS OF PRESENTATION

Due to the pending sale of the Disputes, Forensics and Legal Technology segment and, the Transaction Advisory Services practice, formerly part of Financial Services Advisory and Compliance segment, the Company has classified these businesses (collectively referred to as “SaleCo”) as discontinued operations with the assets and liabilities being presented asheld-for-sale. Prior period comparisons have been adjusted to reflect this reporting change.

DEFINITIONS

• Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Share (EPS)Adjusted EBITDA is EBITDA – earnings before interest, taxes, depreciation, and amortization – excluding the impact of severance expense and other operating costs (benefit), as applicable. Adjusted Net Income and Adjusted Earnings per Share exclude the net income and per share net income impact of severance expense, other operating costs (benefit), the benefit recognized in the fourth quarter 2017 related to the 2017 Tax Cuts and Jobs Act, and the benefit recognized in the second quarter 2018 related to the recognition of goodwill tax basis on a portion of the assets that were moved to discontinued operations (which impacted discontinued operations only), as applicable. While other operating costs (benefit) are generallynon-recurring in nature, severance expense and certain other operating costs are not considered to benon-recurring, infrequent or unusual to our business. Management believes that thesenon-GAAP financial measures provide investors with enhanced comparability of Navigant’s results of operations across periods. Seenon-GAAP reconciliations for more details.

• Free Cash Flowis calculated as net cash provided by (used in) operations excluding the change in asset, liabilities and allowance for doubtful accounts less cash payment for property, equipment and deferred acquisition liabilities. Free Cash Flow does not represent cash available for spending as it excludes certain contractual obligations such as debt repayment. However, management believes that Free Cash Flow provides investors with an indicator of cash available foron-going business operations and long-term value creation. Seenon-GAAP reconciliations for more details.

• Combinedresults include both continuing operations and discontinued operations. Management believes this information provides investors with a better indication of year-over-year comparability to the Company’s results before the classification of SaleCo as discontinued operations. Seenon-GAAP reconciliations for more details.

ABOUT NAVIGANT

Navigant Consulting, Inc. (NYSE: NCI) (“the Company”) is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage, and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the firm primarily serves clients in the healthcare, energy, and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found atnavigant.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,” “may,” “could,” “intend,” “estimate,” “expect,” “plan,” “outlook,” “preliminary” 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 consummation of the divestiture transaction with Ankura Consulting Group, LLC; risk of unanticipated costs, liabilities and adverse impact on business operations arising from the Company’s provision of post-divestiture transition services and support in connection with the SaleCo transaction; the execution of the Company’s long-term growth objectives 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; changes in accounting standards or tax rates, laws or regulations; management of professional staff, including dependence on key personnel, recruiting, retention, 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 and the Company’s ability to attract new business; brand equity; competition; accurate pricing of engagements, particularly fixed fee and multi-year engagements; clients’ financial condition and their ability to make payments to the Company; risks inherent with litigation; higher risk client assignments; government contracting; professional liability; information security; the adequacy of our business, financial and information systems and technology; maintenance of effective internal controls; potential legislative and regulatory changes; continued and sufficient access to capital; compliance with covenants in our credit agreement; interest rate risk; and market and general economic and political conditions. Further information on these and other potential factors that could affect the Company’s financial results are included under the “Risk Factors” section of the Company’s Annual Report on Form10-K for the year ended December 31, 2017, and elsewhere in the Company’s filings with the Securities and Exchange Commission (SEC), which are available on the SEC’s website or atinvestors.navigant.com. In addition, with regard to the “Preliminary 2019 View” included in this press release, the Company cautions that this view of possible 2019 performance is provided without the benefit of knowledge of the Company’s performance during the last six months of 2018 or the completion of management’s budgeting process for 2019. 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.

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

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

(Unaudited)

	For the quarter ended June 30,							For the six months ended June 30,
	2018			2017				2018			2017
Revenues:
Revenues before reimbursements	$	165,224		$	160,076			$	326,669		$	315,784
Reimbursements		19,489			17,594				36,112			35,737
Total revenues		184,713			177,670				362,781			351,521
Cost of services before reimbursable expenses		113,121			113,333				230,057			223,217
Reimbursable expenses		19,489			17,594				36,112			35,737
							��
Total cost of services		132,610			130,927				266,169			258,954
General and administrative expenses		34,912			34,663				71,991			71,035
Depreciation expense		4,943			5,530				9,940			10,815
Amortization expense		1,665			2,108				3,417			4,316
Other operating costs:
Contingent acquisition liability adjustments, net		—			—				—			1,199
Other costs		2,295			—				3,278			107
Operating income		8,288			4,442				7,986			5,095
Interest expense		911			783				1,739			1,431
Interest income		(77	)		(80	)			(196	)		(111	)
Other (income) expense, net		(183	)		599				178			382
Income from continuing operations before income tax expense		7,637			3,140				6,265			3,393
Income tax expense		1,509			577				1,734			243
Net income from continuing operations		6,128			2,563				4,531			3,150
Income from discontinued operations, net of tax		22,698			6,234				36,148			16,743
Net income	$	28,826		$	8,797			$	40,679		$	19,893
Basic net income per share data
Net income from continuing operations	$	0.14		$	0.05			$	0.10		$	0.07
Income from discontinued operations, net of tax	$	0.50		$	0.13			$	0.80		$	0.36
Net income	$	0.64		$	0.19			$	0.90		$	0.42
Shares used in computing basic per share data		45,106			47,113				45,113			47,023
Diluted net income per share data
Net income from continuing operations	$	0.13		$	0.05			$	0.10		$	0.06
Income from discontinued operations, net of tax	$	0.49		$	0.13			$	0.77		$	0.34
Net income	$	0.62		$	0.18			$	0.87		$	0.41
Shares used in computing diluted per share data		46,549			48,696				46,692			48,833

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AND SELECTED DATA

(In thousands, except DSO data)

(Unaudited)

	June 30, 2018			December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	11,140		$	8,449
Accounts receivable, net and contract assets		164,741			165,838
Prepaid expenses and other current assets		19,988			21,006
Assets held for sale		366,892			361,030
Total current assets		562,761			556,323
Non-current assets:
Property and equipment, net		68,554			71,432
Intangible assets, net		17,126			20,172
Goodwill		422,547			422,959
Other assets		7,115			9,378
Total assets	$	1,078,103		$	1,080,264
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	7,146		$	8,404
Accrued liabilities		11,928			9,734
Accrued compensation-related costs		41,255			58,515
Income tax payable		4,158			3,199
Other current liabilities		23,170			30,550
Liabilities held for sale		69,065			86,384
Total current liabilities		156,722			196,786
Non-current liabilities:
Deferred income tax liabilities		38,239			36,598
Othernon-current liabilities		25,935			26,602
Bank debtnon-current		147,005			132,944
Totalnon-current liabilities		211,179			196,144
Total liabilities		367,901			392,930
Stockholders’ equity:
Common stock		59			58
Additionalpaid-in capital		662,416			659,825
Treasury stock		(243,213	)		(224,366	)
Retained earnings		311,825			270,995
Accumulated other comprehensive loss		(20,885	)		(19,178	)
Total stockholders’ equity		710,202			687,334
Total liabilities and stockholders’ equity	$	1,078,103		$	1,080,264
Selected Data
Days sales outstanding, net (DSO) – continuing operations		72			73
Days sales outstanding, net (DSO) – Combined		84			85

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,
	2018			2017			2018			2017
Cash flows from operating activities:
Net income	$	28,826		$	8,797		$	40,679		$	19,893
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation expense		6,768			7,826			13,613			15,299
Amortization expense		1,772			2,219			3,628			4,538
Share-based compensation expense		2,089			4,380			5,466			7,402
Deferred income taxes		(6,601	)		6,893			(5,633	)		8,232
Allowance for doubtful accounts receivable		3,764			1,171			6,894			1,175
Payments of contingent acquisition liabilities in excess of initial fair value		(1,062	)		(1,700	)		(1,186	)		(1,700	)
Contingent acquisition liability adjustments, net		—			—			—			1,199
Other, net		94			826			1,225			1,477
Changes in assets and liabilities (net of acquisitions):
Accounts receivable, net and contract assets		5,423			(2,731	)		(18,192	)		(7,010	)
Prepaid expenses and other assets		3,088			(9,161	)		2,372			(10,358	)
Accounts payable		593			(2,290	)		(1,507	)		(2,371	)
Accrued liabilities		1,886			799			4,086			1,383
Accrued compensation-related costs		9,334			7,386			(27,124	)		(41,870	)
Income taxes payable		(602	)		(5,962	)		2,324			(1,609	)
Other liabilities		(1,829	)		1,152			(7,949	)		964
Net cash provided by (used in) operating activities		53,543			19,605			18,696			(3,356	)
Cash flows from investing activities:
Purchases of property and equipment		(1,705	)		(7,100	)		(7,455	)		(20,889	)
Other, net		(19	)		(42	)		(19	)		(158	)
Net cash used in investing activities		(1,724	)		(7,142	)		(7,474	)		(21,047	)
Cash flows from financing activities:
Issuances of common stock		936			729			2,174			2,643
Repurchases of common stock		(7,490	)		(8,993	)		(18,847	)		(13,954	)
Payments of contingent acquisition liabilities		(1,090	)		(8,630	)		(1,170	)		(8,630	)
Repayments to banks		(93,335	)		(95,669	)		(172,479	)		(246,469	)
Borrowings from banks		57,571			100,789			187,248			294,591
Payments of debt issuance costs		—			(35	)		—			(1,201	)
Other, net		(3,532	)		(3,500	)		(5,048	)		(4,827	)
Net cash provided by (used in) financing activities		(46,940	)		(15,309	)		(8,122	)		22,153
Effect of exchange rate changes on cash and cash equivalents		(385	)		270			(409	)		515
Net increase (decrease) in cash and cash equivalents		4,494			(2,576	)		2,691			(1,735	)
Cash and cash equivalents at beginning of the period		6,646			9,132			8,449			8,291
Cash and cash equivalents at end of the period	$	11,140		$	6,556		$	11,140		$	6,556

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

RECONCILIATION OFNON-GAAP FINANCIAL MEASURES

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

(Unaudited)

Combined RBR, EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share (2)	For the quarter ended June 30,						For the six months ended June 30,
	2018			2017			2018			2017
Combined revenue reconciliation:
Revenue from continuing operations	$	184,713		$	177,670		$	362,781		$	351,521
Revenue from discontinued operations		91,013			79,176			177,465			163,162
Revenue (Combined)	$	275,726		$	256,846		$	540,246		$	514,683
Combined revenues before reimbursements (RBR) reconciliation:
RBR from continuing operations	$	165,224		$	160,076		$	326,669		$	315,784
RBR from discontinued operations		87,169			75,162			169,603			155,665
RBR (Combined)	$	252,393		$	235,238		$	496,272		$	471,449
Severance expense	$	374		$	2,509		$	2,157		$	3,643
Income tax benefit (3)		(99	)		(989	)		(574	)		(1,409	)
Tax-effected impact of severance expense	$	275		$	1,520		$	1,583		$	2,234
Other operating costs – contingent acquisition liability adjustment, net	$	—		$	—		$	—		$	1,199
Income tax benefit (3)		—			—			—			(481	)
Tax-effected impact of other operating costs – contingent acquisition liability adjustment, net	$	—		$	—		$	—		$	718
Other operating costs – other costs (4)	$	2,295		$	—		$	3,278		$	107
Income tax benefit (3)		(625	)		—			(893	)		(43	)
Tax-effected impact of other operating costs – other costs	$	1,670		$	—		$	2,385		$	64
Adjusted EBITDA reconciliation:
Net income from continuing operations	$	6,128		$	2,563		$	4,531		$	3,150
Interest expense		911			783			1,739			1,431
Interest income		(77	)		(80	)		(196	)		(111	)
Other (income) expense, net		(183	)		599			178			382
Income tax expense		1,509			577			1,734			243
Depreciation expense		4,943			5,530			9,940			10,815
Amortization expense		1,665			2,108			3,417			4,316
EBITDA	$	14,896		$	12,080		$	21,343		$	20,226
Severance expense		374			2,509			2,157			3,643
Other operating costs – contingent acquisition liability adjustment, net		—			—			—			1,199
Other operating costs – other costs		2,295			—			3,278			107
Adjusted EBITDA from continuing operations	$	17,565		$	14,589		$	26,778		$	25,175
Adjusted EBITDA from discontinued operations		22,171			14,587			42,868			35,460
Adjusted EBITDA (Combined)	$	39,736		$	29,176		$	69,646		$	60,635
Adjusted Net Income reconciliation:
Net income from continuing operations	$	6,128		$	2,563		$	4,531		$	3,150
Tax-effected impact of severance expense		275			1,520			1,583			2,234
Tax-effected impact of other operating costs – contingent acquisition liability adjustment, net		—			—			—			718
Tax-effected impact of other operating costs – other costs		1,670			—			2,385			64
Adjusted Net Income from continuing operations	$	8,073		$	4,083		$	8,499		$	6,166
Adjusted Net Income from discontinued operations		14,818			7,370			28,279			18,294
Adjusted Net Income (Combined)	$	22,891		$	11,453		$	36,778		$	24,460
Shares used in computing adjusted per diluted share data		46,549			48,696			46,692			48,833
Adjusted Earnings per Share from continuing operations	$	0.17		$	0.08		$	0.18		$	0.13
Adjusted Earnings per Share (Combined)	$	0.49		$	0.24		$	0.79		$	0.50

Discontinued operations (5)	For the quarter ended June 30,									For the six months ended June 30,
	2018			2017						2018			2017
Severance expense from discontinued operations	$	95		$	1,877					$	111		$	2,528
Income tax benefit (3)		(25	)		(741	)					(30	)		(977	)
Tax-effected impact of severance expense from discontinued operations	$	70		$	1,136					$	81		$	1,551
Adjusted EBITDA from discontinued operations reconciliation:
Net income from discontinued operations	$	22,698		$	6,234					$	36,148		$	16,743
Interest expense		600			497						1,088			919
Interest income		(1	)		—						(1	)		(1	)
Other (income) expense, net		29			—						58			—
Income tax expense		(3,182	)		3,572						1,580			10,565
Depreciation expense		1,825			2,296						3,673			4,484
Amortization expense		107			111						211			222
EBITDA	$	22,076		$	12,710					$	42,757		$	32,932
Severance expense		95			1,877						111			2,528
Adjusted EBITDA from discontinued operations	$	22,171		$	14,587					$	42,868		$	35,460
Adjusted Net Income from discontinued operations reconciliation:
Net income from discontinued operations	$	22,698		$	6,234					$	36,148		$	16,743
Tax-effected impact of severance expense from discontinued operations		70			1,136						81			1,551
Deferred tax benefit related to recognition of goodwill tax basis (6)		(7,950	)		—						(7,950	)		—
Adjusted Net Income from discontinued operations	$	14,818		$	7,370					$	28,279		$	18,294
Free Cash Flow (7)	For the quarter ended June 30,									For the six months ended June 30,
	2018			2017						2018			2017
Net cash provided by (used in) operating activities	$	53,543		$	19,605					$	18,696		$	(3,356	)
Changes in assets and liabilities		(17,893	)		10,807						45,990			60,871
Allowance for doubtful accounts receivable		(3,764	)		(1,171	)					(6,894	)		(1,175	)
Purchases of property and equipment		(1,705	)		(7,100	)					(7,455	)		(20,889	)
Payments of contingent acquisition liabilities		(1,090	)		(8,630	)					(1,170	)		(8,630	)
Free Cash Flow	$	29,091		$	13,511					$	49,167		$	26,821
Leverage Ratio (8)	At June 30,
	2018			2017
Adjusted EBITDA (Combined) for prior twelve-month period	$	134,847		$	135,214
Bank debt	$	147,005		$	184,787
Leverage Ratio		1.09			1.37
Organic Growth (9)	For the quarter ended June 30,									For the six months ended June 30,
	2018			2017			Growth			2018			2017			Growth
Revenues before reimbursements	$	165,224		$	160,076			3.2	%	$	326,669		$	315,784			3.4	%
Pro forma acquisition adjustment		—			1,421						—			2,841
Currency impact		(1,049	)		—						(1,757	)		—
Organic RBR	$	164,175		$	161,497			1.7	%	$	324,912		$	318,625			2.0	%

Footnotes

(1) Per share data may not sum due to rounding.

(2) Combined results include both continuing operations and discontinued operations. EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA excludes the impact of severance expense and other operating costs (benefit), as applicable. Adjusted Net Income and Adjusted Earnings per Share exclude net income and per share net income impact of severance expense and other operating costs (benefit), the benefit recognized in the fourth quarter 2017 related to the 2017 Tax Cuts and Jobs Act, and the benefit recognized in the second quarter 2018 related to the recognition of goodwill tax basis on a portion of SaleCo assets that were moved to assets held for sale (which impacted discontinued operations only), as applicable. While other operating costs (benefit) are generallynon-recurring in nature, severance expense and certain other operating costs are not considered to benon-recurring, infrequent or unusual to our business. Management believes that thesenon-GAAP financial measures provide investors with enhanced comparability of Navigant’s results of operations across periods.

(3) Effective income tax expense has been determined based on specific tax jurisdiction.

(4) In 2018, the Company incurrednon-recurring legal costs relating to a shareholder proxy contest, as well asnon-recurring fees and expenses relating to the SaleCo transaction.

(5) On June 23, 2018, we entered into an agreement to sell all of the operations of the former Disputes, Forensics and Legal Technology segment and the Transaction Advisory Services group within the Financial Services Advisory and Compliance segment to Ankura Consulting Group, LLC. These businesses (“SaleCo”) have been classified as discontinued operations in our results.

(6) Due toheld-for-sale presentation triggered by the SaleCo transaction, the Company recognized a $7.9 million tax benefit related to the recognition of goodwill tax basis on a portion of the assets that were moved to assets held for sale.

(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 foron-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 (Combined) 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.

(9) Organic growth represents revenues before reimbursements from continuing operations adjusted to include the impact of our acquisitions as if we owned them from the beginning of each comparable period and adjusted to exclude the impact of foreign currency exchange rate fluctuations. 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.