Exhibit 99.1
Navigant Consulting, Inc. Announces Second Quarter 2005 Results
CHICAGO--(BUSINESS WIRE)--July 22, 2005--Navigant Consulting, Inc.
(NYSE:NCI):
-- Quarterly revenues increased 13 percent, year over year, to
$139.5 million, from $123.8 million in the second quarter of
2004. Six-month revenues increased 21 percent, to $274.1
million, compared to $226.5 during the first six months of
2004.
-- EBITDA for the quarter increased 27 percent to $26.5 million,
from $21.0 million in the second quarter of 2004. EBITDA
margin as a percentage of revenues before reimbursements
increased to 22 percent, compared with 19 percent in the
second quarter of 2004. EBITDA for the six months ended June
30, 2005 increased 41 percent to $52.2 million, from $37.0
million for the comparable period in 2004.
-- Earnings per share increased 14 percent to $0.24 in the second
quarter, compared to $0.21 in the second quarter of 2004.
First half 2005 EPS increased 32 percent, to $0.49, from $0.37
in the first six months of 2004.
Navigant Consulting, Inc. (NYSE:NCI), a specialized consulting
firm providing dispute, financial, regulatory and operational advisory
services primarily to companies in regulated industries, government
agencies and legal counsel, today announced financial results for the
2005 second quarter.
"The second quarter results were consistent with our June 8
revised guidance and reflect the completion of a solid 2005 first half
performance for the Company," stated William M. Goodyear, Chairman and
Chief Executive Officer. "The Company's growth was balanced across a
number of the practices, as our Dispute Regulatory & Investigations
practices continued their excellent year-to-date performance.
Likewise, the Financial & Insurance and Healthcare practices both had
a solid second quarter."
Second Quarter 2005 Financial Results
Revenues for the second quarter of 2005 were $139.5 million, a 13
percent increase compared to second quarter 2004 revenues of $123.8
million, and an increase over first quarter 2005 revenues of $134.6
million. EBITDA in the second quarter of 2005 was $26.5 million, an
increase of 27 percent from $21.0 million for the second quarter of
2004, and up from first quarter 2005 EBITDA of $25.7 million.
EBITDA as a percentage of revenues before reimbursements continued
to increase, up to 22 percent for the second quarter of 2005, compared
to 21 percent in the first quarter 2005 and 19 percent in the second
quarter 2004. Net income per diluted share was $0.24 in the second
quarter of 2005, a 14 percent increase compared to the $0.21 per share
in the comparable period in 2004, and down slightly from $0.25 per
share in the first quarter of 2005.
Six-Month Financial Results
Revenues for the six months ended June 30, 2005 were $274.1
million, a 21 percent increase compared to 2004 six-month revenues of
$226.5 million. EBITDA for the six-month period of 2005 was $52.2
million, up 41 percent from $37.0 million for the comparable 2004
period. EPS for the 2005 six months was $0.49 per share, compared to
$0.37 per share for the same period in 2004, a 32 percent year over
year increase.
Business Metrics
Billable consultant headcount, full time equivalents (FTE), on
June 30, 2005 was 1,557, a slight increase from 1,544 as of the end of
the first quarter, and up from 1,293 at June 30, 2004. Company-wide
consultant utilization in the second quarter was 69 percent, compared
to 72 percent in the first quarter of 2005 and 75 percent in the
second quarter of 2004.
"During the second quarter, we remained active in the recruitment
of senior talent in a number of our growing service and industry
sectors," stated Julie M. Howard, Executive Vice President and Chief
Operating Officer. "At the same time, we are managing the firm through
a balanced evaluation of our skills and qualifications opposite the
markets we serve, and the efforts of that review are reflected in our
headcount and utilization metrics. I would anticipate those efforts to
continue through the third quarter."
Annualized revenue per consultant in the second quarter of 2005
was $359,000, consistent with the 2005 first quarter of $358,000.
Annualized attrition was 17 percent during the second quarter of 2005.
Days sales outstanding as of June 30, 2005 were 81 days, compared to
82 days at the end of the 2004 second quarter. The Company ended the
second quarter with $43.8 million in borrowings under its $175 million
unsecured, multi-bank credit facility.
Acquisition of A.W. Hutchison & Associates
As announced on July 18, the Company acquired A.W. Hutchison &
Associates, LLC (AWH). Recognized internationally as a leader in the
field of construction management analysis and dispute resolution, the
AWH team augments and extends Navigant Consulting's construction
services practice, adding risk management services as well as
architectural technical expertise. The investment also enhances the
national footprint of NCI's construction team, adding strong teams in
the Southeast and Southern California.
Webcast of the Company's Announcement of Second Quarter 2005
Results
A webcast of management's presentation of the Company's second
quarter financial results will be available on the Company's website,
www.navigantconsulting.com. To access the call, click the Investor
Relations section and select "Conference Calls." This webcast will be
available until 5:00 p.m., ET, October 24, 2005.
About Navigant Consulting
Navigant Consulting, Inc. (NYSE:NCI) is a specialized independent
consulting firm providing dispute, financial, regulatory and
operational advisory services 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 including
healthcare, energy and financial and insurance services, 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 intended to be, and
are hereby identified as, "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. The Company cautions readers that forward-looking
statements, including without limitation, those relating to the
Company's future business prospects, revenues, working capital,
liquidity, income and margins, are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those indicated in the forward-looking statements, due to several
important factors, including those identified from time to time in the
Company's reports filed with the SEC. Such risk factors include, but
are not limited to: dependence on key personnel, acquisitions
consummated and acquisitions under consideration, recruiting,
attrition and the ability to successfully integrate new consultants
into the Company's practices, significant client assignments,
conflicts of interest, the ability to meet the challenges of rapid
growth and intense competition, professional liability, any
significant decline in the market value of the Company's securities
that would affect its ability to attract, retain and motivate its
consultants, possible legislative and regulatory changes, including
without limitation federal class action, asbestos and medical
malpractice reform legislation, and general economic conditions.
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share data)
(Unaudited)
For the three months ended
---------------------------
June 30, March 31, June 30,
2005 2005 2004
---------------------------
Revenues before reimbursements $121,621 $121,784 $108,488
Reimbursements 17,871 12,850 15,275
---------------------------
Total revenues $139,492 $134,634 $123,763
Cost of services before reimbursable
expenses 69,308 71,696 63,395
Reimbursable expenses 17,871 12,850 15,275
---------------------------
Cost of services 87,179 84,546 78,670
Stock-based compensation expense 2,341 2,429 1,996
Litigation and settlements - - 385
General and administrative expenses 23,442 21,946 21,741
---------------------------
Earnings before interest, taxes,
depreciation and amortization (EBITDA) 26,530 25,713 20,971
Depreciation 2,564 1,911 2,135
Amortization 1,857 1,460 597
---------------------------
Operating income 22,109 22,342 18,239
Other (expense), net (788) (325) (581)
---------------------------
Income before income tax expense 21,321 22,017 17,658
Income tax expense 8,954 9,248 7,162
---------------------------
Net income $12,367 $12,769 $10,496
===========================
Net income per diluted share $0.24 $0.25 $0.21
===========================
Shares used in computing net income per
diluted share 52,091 51,241 50,130
Percentage of revenues before
reimbursements:
- ------------------------------
Cost of services before reimbursable
expenses 57% 59% 58%
Reimbursable expenses 15% 11% 14%
General and administrative expenses 19% 18% 20%
EBITDA 22% 21% 19%
Operating income 18% 18% 17%
Net income 10% 10% 10%
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share data)
(Unaudited)
For the six months ended
---------------------------
June 30, 2005 June 30, 2004
---------------------------
Revenues before reimbursements $243,405 $200,924
Reimbursements 30,721 25,600
---------------------------
Total revenues $274,126 $226,524
Cost of services before reimbursable
expenses 141,004 116,107
Reimbursable expenses 30,721 25,600
---------------------------
Cost of services 171,725 141,707
Stock-based compensation expense 4,770 4,600
Restructuring costs - 891
Litigation and settlements - 385
General and administrative expenses 45,388 41,893
---------------------------
Earnings before interest, taxes,
depreciation and amortization (EBITDA) 52,243 37,048
Depreciation 4,475 4,049
Amortization 3,317 1,254
---------------------------
Operating income 44,451 31,745
Other (expense), net (1,113) (904)
---------------------------
Income before income tax expense 43,338 30,841
Income tax expense 18,202 12,567
---------------------------
Net income $25,136 $18,274
===========================
Net income per diluted share $0.49 $0.37
===========================
Shares used in computing net income per
diluted share 51,666 49,708
Percentage of revenues before
reimbursements:
- -----------------------------
Cost of services before reimbursable
expenses 58% 58%
Reimbursable expenses 13% 13%
General and administrative expenses 19% 21%
EBITDA 21% 18%
Operating income 18% 16%
Net income 10% 9%
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS AND SELECTED DATA
(In thousands, except DSO data)
(Unaudited)
June 30, March 31, December 31, June 30,
Assets 2005 2005 2004 2004
- ------ ------------------------------------------------
Cash and cash
equivalents $11,118 $8,035 $36,897 $7,260
Trade accounts
receivable, net 137,224 131,670 111,157 122,742
Prepaid and other
assets 13,417 15,877 18,304 16,131
------------------------------------------------
Total current assets 161,759 155,582 166,358 146,133
Property and
equipment, net 35,369 29,960 27,381 24,525
Intangible assets, net 278,850 270,578 224,845 208,356
Other non-current
assets, net 363 235 223 5,033
------------------------------------------------
Total assets $476,341 $456,355 $418,807 $384,047
================================================
Liabilities and
Stockholders' Equity
- ---------------------
Bank borrowings $43,800 $45,500 $0 $42,000
Current liabilities 80,533 78,072 117,885 87,386
Other liabilities 8,231 3,702 12,248 12,826
Stockholders' equity 343,777 329,081 288,674 241,835
------------------------------------------------
Total liabilities
and stockholders'
equity $476,341 $456,355 $418,807 $384,047
================================================
Selected Data
Days sales
outstanding, net
(DSO)(a) 81 days 80 days 71 days 82 days
================================================
(a) Includes deferred revenue.
CONTACT: Navigant Consulting, Inc.
Ben W. Perks, 312-573-5630
Andrew J. Bosman, 312-573-5631