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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  
    2009     Full Year     2008     Full Year  
All numbers in $000s except Per Share, People data and                                                
percentages   Q4   Q3   Q2   Q1     2009     Q4   Q3   Q2   Q1     2008  
                     
Revenues Before Reimbursements
  $ 153,051     $ 159,153     $ 157,332     $ 167,212       $ 636,748       $ 174,475     $ 178,908     $ 189,385     $ 184,294       $ 727,062    
Reimbursements
    20,907       18,210       16,224       15,150       $ 70,491         19,526       19,184       22,023       22,845         83,578    
Total Revenues
    173,958       177,363       173,556       182,362       $ 707,239         194,001       198,092       211,408       207,139         810,640    
Y/Y Growth rate
    -10 %     -10 %     -18 %     -12 %       -13 %       -5 %     4 %     11 %     13 %       6 %  
Q/Q Growth rate
    -2 %     2 %     -5 %     -6 %       N/A         -2 %     -6 %     2 %     2 %       N/A    
 
                                                                                       
Geographic Revenues as % of Total
                                                                                       
U.S. Operations
    82 %     84 %     84 %     86 %       84 %       85 %     82 %     82 %     85 %       83 %  
Non U.S. Operations
    18 %     16 %     16 %     14 %       16 %       15 %     18 %     18 %     15 %       17 %  
 
                                                                                       
Cost of Services Before Reimbursements
    103,766       100,545       101,967       110,267         416,545         107,027       110,083       113,852       113,073         444,035    
% of Revenues Before Reimbursements
    68 %     63 %     65 %     66 %       65 %       61 %     62 %     60 %     61 %       61 %  
 
                                                                                       
General & Administrative Expenses
    28,142       32,500       33,513       34,893         129,048         34,877       41,417       41,071       38,013         155,378    
% of Revenues Before Reimbursements
    18 %     20 %     21 %     21 %       20 %       20 %     23 %     22 %     21 %       21 %  
 
                                                                                       
EBITDA (1)
    19,013       25,238       17,627       21,752         83,630         32,503       27,408       32,507       32,558         124,976    
% of Revenues Before Reimbursements
    12 %     16 %     11 %     13 %       13 %       19 %     15 %     17 %     18 %       17 %  
Adjusted EBITDA (excluding office consolidation and severance expense) (1)
    25,448       27,653       23,192       25,059         101,352         33,631       28,897       35,831       33,550         131,909    
% of Revenues Before Reimbursements
    17 %     17 %     15 %     15 %       16 %       19 %     16 %     19 %     18 %       18 %  
 
                                                                                       
Operating Income
    11,603       17,716       9,528       12,884         51,731         23,977       18,570       22,909       23,298         88,754    
% of Revenues Before Reimbursements
    8 %     11 %     6 %     8 %       8 %       14 %     10 %     12 %     13 %       12 %  
Net Income
    4,789       8,340       3,385       5,433         21,947         11,329       7,836       9,986       10,906         40,057    
% of Revenues Before Reimbursements
    3 %     5 %     2 %     3 %       3 %       6 %     4 %     5 %     6 %       6 %  
Y/Y Growth rate
    -58 %     6 %     -66 %     -50 %       -45 %       90 %     66 %     -12 %     -4 %       20 %  
Q/Q Growth rate
    -43 %     146 %     -38 %     -52 %       N/A         45 %     -22 %     -8 %     82 %       N/A    
 
                                                                                       
Net Income Per Diluted Share (EPS)
    0.10       0.17       0.07       0.11         0.44         0.23       0.16       0.21       0.23         0.83    
Adjusted Net Income Per Diluted Share (excluding the net income impact of office consolidation and severance expense) (2)
    0.18       0.20       0.14       0.16         0.68         0.25       0.19       0.26       0.26         0.95    
Shares used in computing income per diluted share
    50,018       49,954       49,756       49,449         49,795         49,145       48,895       48,257       46,838         48,285    
 
                                                                                       
Balance Sheet
                                                                                       
Cash and cash equivalents
    49,144       13,342       5,132       6,743         49,144         23,134       10,530       10,320       7,632         23,134    
Trade accounts receivable, net
    163,608       185,129       187,201       188,824         163,608         170,464       197,877       219,868       206,567         170,464    
Days sales outstanding (DSO) (3)
    78       87       91       87         N/A         73       84       85       83         N/A    
Debt
    219,375       222,326       239,717       260,522         219,375         232,479       272,979       309,037       267,767         232,479    
 
                                                                                       
Share-based compensation expense related to consulting personnel
    869       955       1,333       1,926         5,083         1,697       2,476       2,399       2,515         9,087    
 
                                                                                       
Employee Data (Period End) (4)
                                                                                       
Billable
    1,666       1,716       1,778       1,920         1,666         1,931       1,952       1,928       1,896         1,931    
Non-billable
    511       514       535       573         511         577       574       571       547         577    
Total
    2,177       2,230       2,313       2,493         2,177         2,508       2,526       2,499       2,443         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)   Q2 2008 DSO is calculated on a proforma basis as if the Chicago Partners acquisition had occurred April 1, 2008.
 
(4)   Employee Data represents FTE employees (adjusted for part-time status). Non-billable employee data prior to Q4 2008 has been restated on an FTE basis.

Page 1 of 3


 

                                                                                         
SEGMENT INFORMATION  
    2009     Full Year     2008     Full Year  
All numbers in $000s except Per Share, People data and                                                
percentages   Q4   Q3   Q2   Q1     2009     Q4   Q3   Q2   Q1     2008  
                     
Business Segment Revenues
                                                                                       
North American Dispute and Investigative Services
  $ 69,954     $ 72,578     $ 72,225     $ 72,630       $ 287,387       $ 78,790     $ 79,836     $ 88,602     $ 91,002       $ 338,230    
% of Total Revenues
    40 %     41 %     42 %     40 %       41 %       41 %     40 %     42 %     44 %       42 %  
North American Business Consulting Services
    71,874       70,738       69,356       79,639         291,607         84,703       82,902       92,045       96,341         355,991    
% of Total Revenues
    42 %     40 %     40 %     44 %       41 %       44 %     42 %     44 %     47 %       44 %  
International Consulting Operations
    19,531       19,423       17,820       16,046         72,820         15,804       20,828       23,098       19,796         79,526    
% of Total Revenues
    11 %     11 %     10 %     9 %       10 %       8 %     11 %     11 %     10 %       10 %  
Economic Consulting Services
    12,599       14,624       14,155       14,047         55,425         14,704       14,526       7,663       n/a         36,893    
% of Total Revenues
    7 %     8 %     8 %     8 %       8 %       8 %     7 %     4 %     n/a         5 %  
 
                                                                                       
Business Segment Revenue Before Reimbursements
                                                                                       
North American Dispute and Investigative Services
    62,976       65,859       65,810       67,247         261,892         71,359       72,363       79,305       83,823         306,850    
% of Revenues Before Reimbursements
    41 %     41 %     42 %     40 %       41 %       41 %     40 %     42 %     45 %       42 %  
North American Business Consulting Services
    63,041       63,884       63,566       72,772         263,263         75,131       74,048       82,030       83,468         314,677    
% of Revenues Before Reimbursements
    42 %     40 %     40 %     44 %       41 %       43 %     41 %     43 %     45 %       43 %  
International Consulting Operations
    15,571       15,532       14,698       14,306         60,107         13,778       18,311       20,701       17,003         69,793    
% of Revenues Before Reimbursements
    10 %     10 %     9 %     9 %       10 %       8 %     10 %     11 %     9 %       10 %  
Economic Consulting Services
    11,463       13,878       13,258       12,887         51,486         14,207       14,186       7,349       n/a         35,742    
% of Revenues Before Reimbursements
    7 %     9 %     8 %     8 %       8 %       8 %     8 %     4 %     n/a         5 %  
 
                                                                                       
Segment Operating Profit(5)
                                                                                       
North American Dispute and Investigative Services
    24,446       28,068       25,681       25,450         103,645         30,106       32,558       33,753       35,023         131,440    
% of Revenues Before Reimbursements
    39 %     43 %     39 %     38 %       40 %       42 %     45 %     43 %     42 %       43 %  
North American Business Consulting Services
    20,795       24,408       23,356       26,391         94,950         31,695       28,047       33,993       33,330         127,065    
% of Revenues Before Reimbursements
    33 %     38 %     37 %     36 %       36 %       42 %     38 %     41 %     40 %       40 %  
International Consulting Operations
    2,267       4,105       4,070       4,021         14,463         3,562       6,127       8,179       5,383         23,251    
% of Revenues Before Reimbursements
    15 %     26 %     28 %     28 %       24 %       26 %     33 %     40 %     32 %       33 %  
Economic Consulting Services
    3,402       5,239       4,888       4,644         18,173         5,219       5,954       2,948       n/a         14,121    
% of Revenues Before Reimbursements
    30 %     38 %     37 %     36 %       35 %       37 %     42 %     40 %     n/a         40 %  
 
                                                                                       
                     
 
                                                                                       
Other Operating Data
                                                                                       
 
                                                                                       
Average Billable Full Time Equivalent Headcount
                                                                                       
North American Dispute and Investigative Services
    663       673       719       765         704         779       761       762       796         775    
North American Business Consulting Services
    723       756       797       868         786         871       886       914       940         904    
International Consulting Operations
    194       201       216       207         205         192       189       185       177         185    
Economic Consulting Services
    105       104       100       101         102         98       91       55       n/a         62    
Total Company
    1,685       1,734       1,832       1,941         1,797         1,940       1,927       1,916       1,913         1,926    
Average Bill Rate (excluding success fees)
                                                                                       
North American Dispute and Investigative Services
    289       286       281       283         284         275       291       299       292         290    
North American Business Consulting Services
    224       217       212       221         218         230       227       227       213         224    
International Consulting Operations
    252       247       230       223         237         250       292       294       293         280    
Economic Consulting Services
    342       347       344       343         344         335       337       319       n/a         332    
Total Company
    260       255       250       252         254         257       265       266       254         260    
Average Utilization (based off 1,850 hrs)
                                                                                       
North American Dispute and Investigative Services
    75 %     74 %     71 %     72 %       73 %       75 %     73 %     77 %     84 %       77 %  
North American Business Consulting Services
    79 %     79 %     75 %     77 %       77 %       78 %     78 %     80 %     84 %       80 %  
International Consulting Operations
    67 %     69 %     62 %     69 %       67 %       67 %     72 %     76 %     73 %       72 %  
Economic Consulting Services
    76 %     81 %     87 %     85 %       82 %       98 %     99 %     88 %     n/a         96 %  
Total Company
    76 %     76 %     73 %     75 %       75 %       77 %     76 %     79 %     83 %       79 %  
 
(5)   Segment Operating Profit is a measure of profit used by management and excludes certain expense amounts not allocated to the specific reporting segments.

Page 2 of 3


 

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.
                                                                                         
    2009     Full Year     2008     Full Year  
    Q4   Q3   Q2   Q1     2009     Q4   Q3   Q2   Q1     2008  
                     
Operating Income
  $ 11,603     $ 17,716     $ 9,528     $ 12,884       $ 51,731       $ 23,977     $ 18,570     $ 22,909     $ 23,298       $ 88,754    
Depreciation
    4,288       4,352       4,320       4,640         17,600         4,426       4,330       4,381       4,165         17,302    
Accelerated depreciation — office closures included in other operating costs
    175       115       387       608         1,285         493       553       620       868         2,534    
Amortization
    2,947       3,055       3,392       3,620         13,014         3,607       3,955       4,597       4,227         16,386    
                         
EBITDA
    19,013       25,238       17,627       21,752         83,630         32,503       27,408       32,507       32,558         124,976    
Add:
                                                                                       
Office consolidation (excluding depreciation above)
    2,130       870       4,225       300         7,525         68             1,955       650         2,673    
Severance expense
    4,305       1,545       1,340       3,007         10,197         1,060       1,489       1,369       342         4,260    
                         
Adjusted EBITDA (excluding office consolidation and severance expense )
    25,448       27,653       23,192       25,059         101,352         33,631       28,897       35,831       33,550         131,909    
General and administrative expenses
    28,142       32,500       33,513       34,893         129,048         34,877       41,417       41,071       38,013         155,378    
Long term compensation expense related to consulting personnel (including share based compensation)
    1,625       3,212       2,630       3,561         11,028         3,134       3,861       3,340       2,515         12,850    
Severance expense added above
    (4,305 )     (1,545 )     (1,340 )     (3,007 )       (10,197 )       (1,060 )     (1,489 )     (1,369 )     (342 )       (4,260 )  
                         
Total Segment Operating Profit
  $ 50,910     $ 61,820     $ 57,995     $ 60,506       $ 231,231       $ 70,582     $ 72,686     $ 78,873     $ 73,736       $ 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.
                                                                                         
    2009     Full Year     2008     Full Year  
    Q4   Q3   Q2   Q1     2009     Q4   Q3   Q2   Q1     2008  
                     
Office consolidation expense
  $ 2,305     $ 985     $ 4,612     $ 908       $ 8,810       $ 561     $ 553     $ 2,575     $ 1,518       $ 5,207    
Tax benefit (1)
    (930 )     (397 )     (1,860 )     (366 )       (3,553 )       (226 )     (223 )     (1,038 )     (613 )       (2,100 )  
                         
Net income impact of office consolidation expense
  $ 1,375     $ 588     $ 2,752     $ 542       $ 5,257       $ 335     $ 330     $ 1,537     $ 905       $ 3,107    
                         
Shares used in computing income per diluted share
    50,018       49,954       49,756       49,449         49,795         49,145       48,895       48,257       46,838         48,285    
                         
Diluted income per share impact of office consolidation expense
  $ 0.03     $ 0.01     $ 0.06     $ 0.01       $ 0.11       $ 0.01     $ 0.01     $ 0.03     $ 0.02       $ 0.06    
                         
 
                                                                                       
Severance expense
  $ 4,305     $ 1,545     $ 1,340     $ 3,007       $ 10,197       $ 1,060     $ 1,489     $ 1,369     $ 342       $ 4,260    
Tax benefit(1)
    (1,442 )     (480 )     (497 )     (1,170 )       (3,589 )       (413 )     (463 )     (500 )     (136 )       (1,512 )  
                         
Net income impact of severance expense
  $ 2,863     $ 1,065     $ 843     $ 1,837       $ 6,608       $ 647     $ 1,026     $ 869     $ 206       $ 2,748    
                         
Shares used in computing income per diluted share
    50,018       49,954       49,756       49,449         49,795         49,145       48,895       48,257       46,838         48,285    
                         
Diluted income per share impact of severance expense
  $ 0.06     $ 0.02     $ 0.02     $ 0.04       $ 0.13       $ 0.01     $ 0.02     $ 0.02     $       $ 0.06    
                         
 
                                                                                       
Net income
  $ 4,789     $ 8,340     $ 3,385     $ 5,433       $ 21,947       $ 11,329     $ 7,836     $ 9,986     $ 10,906       $ 40,057    
Net income impact of office consolidation expense
    1,375       588       2,752       542       $ 5,257         335       330       1,537       905       $ 3,107    
Net income impact of severance expense
    2,863       1,065       843       1,837       $ 6,608         647       1,026       869       206       $ 2,748    
                         
Adjusted net income, excluding the net income impact of office consolidation and severance expense
  $ 9,027     $ 9,993     $ 6,980     $ 7,812       $ 33,812       $ 12,311     $ 9,192     $ 12,392     $ 12,017       $ 45,912    
                         
Shares used in computing income per diluted share
    50,018       49,954       49,756       49,449         49,795         49,145       48,895       48,257       46,838         48,285    
                         
Adjusted earnings per share, excluding the net income impact of office consolidation and severance expense
  $ 0.18     $ 0.20     $ 0.14     $ 0.16       $ 0.68       $ 0.25     $ 0.19     $ 0.26     $ 0.26       $ 0.95    
                         
 
(1)   Effective tax benefit has been determined based on specific tax jurisdiction.

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