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8-K - FORM 8-K - NAVIGANT CONSULTING INCc59409e8vk.htm
EX-99.2 - EX-99.2 - NAVIGANT CONSULTING INCc59409exv99w2.htm
Exhibit 99.1
(NAVIGANT LOGO)
For more information contact:
Jennifer Moreno
Executive Director, Investor Relations
312.573.5634
jmoreno@navigantconsulting.com
NAVIGANT CONSULTING, INC. REPORTS SECOND QUARTER 2010 RESULTS
    Earnings per share of $0.16 on a GAAP basis, up from $0.13 in first quarter 2010 and $0.07 in second quarter 2009. Adjusted earnings per share (excluding the net income impact from office consolidation and severance expenses) of $0.17, up from $0.14 in both first quarter 2010 and second quarter 2009.
 
    Revenue before reimbursements (RBR) of $155 million, up slightly from $154 million in first quarter 2010 and down slightly from $157 million in second quarter 2009.
 
    Utilization of 73%, down from 77% in first quarter 2010 while consistent with second quarter 2009. Average bill rate of $266, up from $264 in first quarter 2010 and up from $250 in second quarter 2009.
 
    Strong cash flow funded sizeable second quarter growth investments; debt outstanding totaled $203 million as of June 30, 2010 compared to $197 million as of March 31, 2010.
 
    Previously discussed 2010 outlook affirmed.
CHICAGO, July 29, 2010 — Navigant Consulting, Inc. (NYSE:NCI), a global consulting firm providing dispute, investigative, operational, risk management and financial and regulatory advisory solutions, today announced financial results for the second quarter ended June 30, 2010.
“Over the course of the second quarter we made significant progress toward advancing our strategic agenda, as evidenced by the acquisition of Daylight Forensic & Advisory and the addition of senior practitioner talent in several of our key growth areas,” stated William M. Goodyear, Chairman and Chief Executive Officer. “Despite the continuing challenging business environment, our second quarter financial results improved over both first quarter and last year. Additionally, strong cash flow aided by outstanding working capital management enabled us to maintain comfortable debt levels during the quarter while at the same time adding significant new capabilities to the Company.”
Second Quarter 2010 Results
The Company’s second quarter 2010 results are summarized as follows:

 


 

Total Company Second Quarter Financial Results (1)
                                         
    Q2 2010   Q2 2009   Change   Q1 2010   Change
Revenue Before Reimbursements ($000)
  $ 154,617     $ 157,332       -1.7 %   $ 153,870       0.5 %
Total Revenue ($000)
  $ 172,323     $ 173,556       -0.7 %   $ 173,550       -0.7 %
Adjusted EBITDA excluding office consolidation and severance expenses ($000)
  $ 24,407     $ 23,192       5.2 %   $ 22,016       10.9 %
EBITDA ($000)
  $ 23,400     $ 17,627       32.8 %   $ 21,180       10.5 %
Net Income ($000)
  $ 7,828     $ 3,385       131.3 %   $ 6,447       21.4 %
Earnings Per Share
  $ 0.16     $ 0.07       128.6 %   $ 0.13       23.1 %
Adjusted Earnings Per Share excluding the net income impact from office consolidation and severance expenses
  $ 0.17     $ 0.14       21.4 %   $ 0.14       21.4 %
Average Billable FTEs
    1,660       1,832       -9.4 %     1,679       -1.1 %
End of Period Billable FTEs
    1,668       1,778       -6.2 %     1,661       0.4 %
Consultant Utilization (1,850 base)
    73 %     73 %     0.0 %     77 %     -5.2 %
Average Bill Rate (excluding success fees)
  $ 266     $ 250       6.4 %   $ 264       0.8 %
DSO
    79       91       -13.2 %     83       -4.8 %
 
(1)   See the attached financial schedules for a reconciliation of EBITDA, Adjusted EBITDA and Adjusted Earnings per Share, excluding the net income impact from office consolidation and severance expenses, to the closest GAAP measure.
Navigant’s second quarter 2010 RBR was $155 million, up slightly from $154 million in first quarter 2010 and down slightly from $157 million in second quarter 2009. The Company’s energy, healthcare and economics practices each achieved notable year over year growth, which was partially offset by the impact of previously discussed wind downs and practitioner departures. Continued softness in the disputes environment in the second quarter also adversely impacted year over year comparisons. Companywide utilization for second quarter 2010 was 73%, down from 77% in first quarter 2010 while consistent with second quarter 2009 utilization of 73%. Average bill rate was $266 for second quarter 2010 compared to $264 for first quarter 2010 and $250 for second quarter 2009. Second quarter 2010 bill rate improvements were driven by rate increases in certain markets as well as the engagement and consulting mix for the period. Period end companywide headcount was up slightly from first quarter 2010 and is expected to continue to increase modestly over the remaining two quarters of the year.
Navigant continued its ongoing focus on cost management as reflected by the Company’s second quarter results. Cost of services (before reimbursements) was $102 million for second quarter 2010, on par with second quarter 2009. General and administrative expenses were $29 million for second quarter 2010, down 13% from $34 million for the same period in 2009. Continuing improvements in operating leverage were driven by lower facility, operations, compensation and bad debt costs. Days sales outstanding also improved year over year to 79 at June 30, 2010 from 91 at June 30, 2009.
Business Segment Highlights
Second quarter 2010 financial results for the Company’s four business segments are summarized as follows:

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Business Segment Second Quarter Financial Results (2)
                                         
    Q2 2010     Q2 2009     Change     Q1 2010     Change  
Business Segment Revenues ($000)
                                       
Dispute and Investigative Services
  $ 63,867     $ 76,758       -16.8 %   $ 67,894       -5.9 %
Business Consulting Services
    71,756       63,393       13.2 %     66,250       8.3 %
International Consulting
    18,078       19,250       -6.1 %     20,797       -13.1 %
Economic Consulting
    18,622       14,155       31.6 %     18,609       0.1 %
 
                             
Total Company
  $ 172,323     $ 173,556       -0.7 %   $ 173,550       -0.7 %
 
                             
Business Segment Revenues before Reimbursements ($000)
                                       
Dispute and Investigative Services
  $ 59,737     $ 70,124       -14.8 %   $ 63,338       -5.7 %
Business Consulting Services
    63,430       57,883       9.6 %     57,399       10.5 %
International Consulting
    14,484       16,067       -9.9 %     16,145       -10.3 %
Economic Consulting
    16,966       13,258       28.0 %     16,988       -0.1 %
 
                             
Total Company
  $ 154,617     $ 157,332       -1.7 %   $ 153,870       0.5 %
 
                             
Segment Operating Profit ($000)
                                       
Dispute and Investigative Services
  $ 21,585     $ 28,369       -23.9 %   $ 25,408       -15.0 %
Business Consulting Services
    23,148       20,332       13.9 %     19,017       21.7 %
International Consulting
    3,663       4,406       -16.9 %     3,740       -2.1 %
Economic Consulting
    6,273       4,888       28.3 %     6,296       -0.4 %
 
                             
Total Company
  $ 54,669     $ 57,995       -5.7 %   $ 54,461       0.4 %
 
                             
 
(2)   In first quarter 2010 the Company repositioned certain service offerings within its four reporting segments. Prior year comparative segment data has been restated to be consistent with the current presentation. A company metrics summary including data by segment is available at www.navigantconsulting.com/investor_relations.
Navigant’s Dispute and Investigative Services segment reported RBR of $60 million for second quarter 2010, down 6% from first quarter 2010 and down 15% from second quarter 2009. Attrition and headcount reductions impacted the segment during the first half of 2010 and, as a result, second quarter 2010 average billable FTEs declined 16% from the year ago period. Despite continued solid credit crisis related work, large scale investigations, construction disputes and general litigation continue to be slower than anticipated. The Company’s recent acquisition of Daylight Forensic & Advisory, completed on May 14, 2010, has been integrated into the firm and is exceeding original expectations.
Navigant’s Business Consulting Services segment delivered a strong performance in second quarter 2010 with RBR of $63 million, up 11% from first quarter 2010 and up 10% from second quarter 2009. Utilization was 81% for second quarter 2010 compared to 75% for the year ago period, while average bill rate was $217 for second quarter 2010 compared to $210 for second quarter 2009. The segment’s healthcare and energy teams represented 72% of second quarter 2010 Business Consulting Services revenues, compared to 68% for second quarter 2009. Navigant’s healthcare team experienced broad based demand for its services, fueled by concerns related to the impact of healthcare reform and providers seeking to improve cost structures. Navigant’s energy expertise is also being sought as renewables, energy efficiency and Smart Grid related projects continue to increase in importance to the marketplace. Additionally, the Company’s restructuring and valuations teams performed very well during the period.
Navigant’s International Consulting segment reported RBR of $14 million for second quarter 2010, down 10% from both first quarter 2010 and second quarter 2009. While second quarter 2010 average bill rate improved to $259 from $239 one year ago, average billable FTEs declined to 200 in second quarter 2010 from 233 in second quarter 2009. Declines in segment results for second quarter 2010 generally resulted from the impacts of a weakened European economy combined with the wind down of certain large infrastructure engagements in the construction practice.

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Navigant’s Economic Consulting segment achieved RBR of $17 million for second quarter 2010, matching its record first quarter 2010 and up 28% from second quarter 2009. Average bill rate was $385 for second quarter 2010, an increase of 12% from the same period in 2009. Reflecting both the acquisition of Washington, D.C. based Empiris on January 20, 2010 and recent senior level recruiting efforts within the segment, average billable FTEs grew to 119 in second quarter 2010 from 100 in second quarter 2009 and are expected to grow further as the year progresses. Recent senior hires have enabled the segment to expand their expertise in areas such as intellectual property disputes, pharmaceuticals, telecommunications and technology. Ongoing strength in structured finance related litigation matters positively affected second quarter results.
2010 Outlook
Navigant affirmed its 2010 guidance ranges as originally issued on February, 18, 2010. Revenue is estimated to be between $700 and $750 million, and adjusted earnings per share (excluding the net income impact from office consolidation and severance expenses) is estimated to range between $0.75 and $0.85.
“Our outlook continues to assume a stronger second half of the year that reflects Navigant’s existing momentum in its key practice areas, traction from first half senior hire investments and building contributions from our recent acquisitions,” commented Mr. Goodyear. “Although we are not immune to choppy economic conditions, we feel confident that continued improvements are attainable for the firm over the balance of 2010 and into 2011.”
Second Quarter 2010 Earnings Conference Call
Mr. Goodyear will host a conference call to discuss the Company’s second quarter 2010 financial results and full year 2010 outlook at 10:00 a.m. Eastern Time on Thursday, July 29, 2010. The web cast may be accessed at www.navigantconsulting.com/investor_relations. A replay of the web cast will be available for approximately 90 days.
About Navigant Consulting
Navigant Consulting, Inc. (NYSE: NCI) is a global consulting firm providing dispute, investigative, operational, risk management and financial and regulatory advisory solutions 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 and on the issues driving these transformations. “Navigantis 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 forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including “plans,” “goals,” “anticipates,” “believes,” “intends,” “estimates,” “expects” and similar expressions. These statements are based upon management’s current expectations 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 indicated in the forward-looking statements including, without limitation: the success and timing of the Company’s strategy implementation of the Company’s strategic business assessment; the success of the Company’s organizational changes and cost reduction actions; risks inherent in international operations, including foreign currency fluctuations; ability to make acquisitions; pace, timing and integration of acquisitions; impairment charges; 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; 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 general economic conditions. Further information on these and other potential factors that could affect the Company’s

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financial results are included in the Company’s filings with the SEC under the “Risk Factors” section and elsewhere in those filings. 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 after the date of this press release.
###

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
                                 
    For the quarters ended June 30,   For the six months ended June 30,
    2010   2009   2010   2009
         
Revenues:
                               
Revenues before reimbursements
  $ 154,617     $ 157,332     $ 308,487     $ 324,544  
Reimbursements
    17,706       16,224       37,386       31,374  
         
Total revenues
    172,323       173,556       345,873       355,918  
Cost of Services:
                               
Cost of services before reimbursable expenses
    102,128       101,967       204,358       212,234  
Reimbursable expenses
    17,706       16,224       37,386       31,374  
         
Total costs of services
    119,834       118,191       241,744       243,608  
General and administrative expenses
    29,089       33,513       59,549       68,406  
Depreciation expense
    3,553       4,320       7,354       8,960  
Amortization expense
    2,962       3,392       5,758       7,012  
Other operating costs:
                               
Office consolidation
          4,612             5,520  
         
Operating income
    16,885       9,528       31,468       22,412  
Interest expense
    3,508       3,952       6,986       7,920  
Interest income
    (311 )     (312 )     (624 )     (608 )
Other (income) expense, net
    (44 )     (87 )     61       (408 )
         
Income before income tax expense
    13,732       5,975       25,045       15,508  
Income tax expense
    5,904       2,590       10,770       6,690  
         
Net income
  $ 7,828     $ 3,385     $ 14,275     $ 8,818  
         
 
                               
Basic net income per share
    $0.16     $ 0.07     $ 0.29     $ 0.18  
Shares used in computing income per basic share
    49,205       48,213       48,948       47,828  
 
                               
Diluted net income per share
    $0.16     $ 0.07     $ 0.28     $ 0.18  
Shares used in computing income per diluted share
    50,264       49,756       50,180       49,604  


 

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AND SELECTED DATA
(In thousands, except DSO data)
(Unaudited)
                         
    June 30,   June 30,   December 31,
    2010   2009   2009
     
ASSETS
                       
 
                       
Current assets:
                       
Cash and cash equivalents
  $ 3,000     $ 5,132     $ 49,144  
Accounts receivable, net
    162,227       187,201       163,608  
Prepaid expenses and other current assets
    19,243       15,617       16,374  
Deferred income tax assets
    13,130       19,367       19,052  
     
Total current assets
    197,600       227,317       248,178  
Non-current assets:
                       
Property and equipment, net
    40,459       47,045       42,975  
Intangible assets, net
    29,851       33,956       30,352  
Goodwill
    521,859       475,777       485,101  
Other assets
    22,605       15,592       13,639  
     
Total assets
  $ 812,374     $ 799,687     $ 820,245  
     
 
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                       
 
                       
Current liabilities:
                       
Accounts payable
  $ 9,640     $ 9,545     $ 8,203  
Accrued liabilities
    9,196       9,404       8,664  
Accrued compensation-related costs
    50,406       43,602       69,751  
Income taxes payable
          557        
Notes payable
          4,170        
Term loan current
    18,397       2,250       12,375  
Other current liabilities
    40,363       37,106       34,441  
     
Total current liabilities
    128,002       106,634       133,434  
Non-current liabilities:
                       
Deferred income taxes
    40,809       30,121       37,096  
Other non-current liabilities
    19,461       25,022       23,923  
Bank debt non-current
    24,094       19,217        
Term loan non-current
    160,058       218,250       207,000  
     
Total non-current liabilities
    244,422       292,610       268,019  
     
Total liabilities
    372,424       399,244       401,453  
     
Stockholders’ equity:
                       
Common stock
    60       60       60  
Additional paid-in capital
    560,282       556,036       559,368  
Treasury stock
    (209,936 )     (218,798 )     (218,798 )
Retained earnings
    105,461       78,057       91,186  
Accumulated other comprehensive loss
    (15,917 )     (14,912 )     (13,024 )
     
Total stockholders’ equity
    439,950       400,443       418,792  
     
Total liabilities and stockholders’ equity
  $ 812,374     $ 799,687     $ 820,245  
     
 
                       
Selected Data
                       
 
                       
Days sales outstanding, net (DSO)
    79       91       78  
 

 


 

NAVIGANT CONSULTING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except per share data)
(Unaudited)
                                 
    For the quarters ended   For the six months ended
    June 30,   June 30,
    2010   2009   2010   2009
         
Cash flows from operating activities:
                               
Net income
  $ 7,828     $ 3,385     $ 14,275     $ 8,818  
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
                               
Depreciation expense
    3,553       4,320       7,354       8,960  
Depreciation expense- office consolidation
          387             995  
Amortization expense
    2,962       3,392       5,758       7,012  
Share-based compensation expense
    1,963       1,959       2,938       4,465  
Accretion of interest expense
    196       221       401       499  
Deferred income taxes
    2,495       (1,306 )     7,814       1,472  
Allowance for doubtful accounts receivable
    2,354       4,356       3,938       8,110  
 
                               
Changes in assets and liabilities:
                               
Accounts receivable
    10,069       1,294       (3,541 )     (21,358 )
Prepaid expenses and other assets
    (8,530 )     2,196       (9,780 )     (74 )
Accounts payable
    406       (1,223 )     1,561       932  
Accrued liabilities
    (943 )     (257 )     1,203       (591 )
Accrued compensation-related costs
    11,296       2,319       (19,120 )     (29,523 )
Income taxes payable
    (1,173 )     2,723       (1,782 )     902  
Other liabilities
    (3,870 )     3,611       (3,370 )     2,147  
         
 
                               
Net cash provided by (used in) operating activities
    28,606       27,377       7,649       (7,234 )
 
                               
Cash flows from investing activities:
                               
 
Purchases of property and equipment
    (2,423 )     (6,644 )     (5,479 )     (12,352 )
Acquisitions of businesses, net of cash acquired
    (29,870 )           (33,870 )     (1,875 )
Payments of acquisition liabilities
                      (2,821 )
Other, net
          (69 )           (109 )
         
 
                               
Net cash used in investing activities
    (32,293 )     (6,713 )     (39,349 )     (17,157 )
 
                               
Cash flows from financing activities:
                               
Issuances of common stock
    872       645       1,533       2,317  
Payments of notes payable
                      (355 )
Borrowings from banks, net of repayments
    5,734       (22,689 )     25,049       6,113  
Payments of term loan
    (460 )     (563 )     (40,920 )     (1,125 )
Other, net
    271       (108 )     (119 )     (814 )
         
Net cash (used in) provided by financing activities
    6,417       (22,715 )     (14,457 )     6,136  
         
 
                               
Effect of exchange rate changes on cash
    (91 )     440       13       253  
         
Net decrease in cash and cash equivalents
    2,639       (1,611 )     (46,144 )     (18,002 )
Cash and cash equivalents at beginning of the period
    361       6,743       49,144       23,134  
         
Cash and cash equivalents at end of the period
  $ 3,000     $ 5,132     $ 3,000     $ 5,132  
         


 

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Non-GAAP Financial Information
This press release 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 press release. 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 and adjusted operating income excludes 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, Adjusted EBITDA, Adjusted operating income
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 and adjusted operating income 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.
                                 
    For the quarters ended June 30,   For the six months ended June 30,
    2010   2009   2010   2009
         
EBITDA reconciliation:
                               
Operating income
  $ 16,885     $ 9,528     $ 31,468     $ 22,412  
Depreciation
    3,553       4,320       7,354       8,960  
Accelerated depreciation — office consolidation
          387             995  
Amortization
    2,962       3,392       5,758       7,012  
         
EBITDA
  $ 23,400     $ 17,627     $ 44,580     $ 39,379  
         
 
                               
Adjusted EBITDA and operating income to exclude office consolidation and severance expense reconciliation to operating income:
                               
Operating income
  $ 16,885     $ 9,528     $ 31,468     $ 22,412  
Other operating costs — office consolidation
          4,612             5,520  
Severance expense
    1,007       1,340       1,843       4,347  
         
 
                               
Adjusted operating income to exclude office consolidation and severance expense
  $ 17,892     $ 15,480     $ 33,311     $ 32,279  
Depreciation
    3,553       4,320       7,354       8,960  
Amortization
    2,962       3,392       5,758       7,012  
         
Adjusted EBITDA, excluding office consolidation and severance expense
  $ 24,407     $ 23,192     $ 46,423     $ 48,251  
         
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.
                                 
    For the quarters ended June 30,   For the six months ended June 30,
    2010   2009   2010   2009
         
Office consolidation expense
  $     $ 4,612     $     $ 5,520  
Tax benefit (1)
          (1,860 )           (2,226 )
         
Net income impact of office consolidation expense
  $     $ 2,752     $     $ 3,294  
         
Shares used in computing income per diluted share
    50,264       49,756       50,180       49,604  
Diluted income per share impact of office consolidation expense
  $     $ 0.06     $     $ 0.07  
         
 
                               
Severance expense
  $ 1,007     $ 1,340     $ 1,843     $ 4,347  
Tax benefit (1)
    (371 )     (497 )     (693 )     (1,667 )
         
Net income impact of severance expense
  $ 636     $ 843     $ 1,150     $ 2,680  
         
Shares used in computing income per diluted share
    50,264       49,756       50,180       49,604  
Diluted income per share impact of severance expense
  $ 0.01     $ 0.02     $ 0.02     $ 0.05  
         
 
                               
Net income
  $ 7,828     $ 3,385     $ 14,275     $ 8,818  
Net income impact of office consolidation expense
          2,752             3,294  
Net income impact of severance expense
    636       843       1,150       2,680  
         
Adjusted net income, excluding the net income impact of office consolidation and severance expense
  $ 8,464     $ 6,980     $ 15,425     $ 14,792  
         
Shares used in computing income per diluted share
    50,264       49,756       50,180       49,604  
Adjusted earnings per share, excluding the net income impact of office consolidation and severance expense
  $ 0.17     $ 0.14     $ 0.31     $ 0.30  
         
 
(1)   Effective tax benefit has been determined based on specific tax jurisdiction.