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8-K - FORM 8-K - NAVIGANT CONSULTING INC | c60985e8vk.htm |
EX-99.1 - EX-99.1 - NAVIGANT CONSULTING INC | c60985exv99w1.htm |
Exhibit 99.2
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
METRICS SUMMARY
(UNAUDITED)
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 managements 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 | ||||||||||||||||||||||||||||||||||||||||||||
All numbers in $000s except Per Share, DSO, People data and | 2010 | 2010 | 2009 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||||||
percentages | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | ||||||||||||||||||||||||||||||||||
Revenues Before Reimbursements |
$ | 153,222 | $ | 154,617 | $ | 153,870 | $ | 461,709 | $ | 153,051 | $ | 159,153 | $ | 157,332 | $ | 167,212 | $ | 636,748 | $ | 727,062 | ||||||||||||||||||||||||
Reimbursements |
21,625 | 17,706 | 19,680 | 59,011 | 20,907 | 18,210 | 16,224 | 15,150 | 70,491 | 83,578 | ||||||||||||||||||||||||||||||||||
Total Revenues |
174,847 | 172,323 | 173,550 | 520,720 | 173,958 | 177,363 | 173,556 | 182,362 | 707,239 | 810,640 | ||||||||||||||||||||||||||||||||||
Y/Y Growth rate |
-1 | % | -1 | % | -5 | % | N/A | -10 | % | -10 | % | -18 | % | -12 | % | -13 | % | 6 | % | |||||||||||||||||||||||||
Q/Q Growth rate |
1 | % | -1 | % | 0 | % | N/A | -2 | % | 2 | % | -5 | % | -6 | % | N/A | N/A | |||||||||||||||||||||||||||
Geographic Revenues as % of Total |
||||||||||||||||||||||||||||||||||||||||||||
U.S. Operations |
88 | % | 86 | % | 84 | % | 84 | % | 82 | % | 84 | % | 84 | % | 86 | % | 84 | % | 83 | % | ||||||||||||||||||||||||
Non U.S. Operations |
12 | % | 14 | % | 16 | % | 16 | % | 18 | % | 16 | % | 16 | % | 14 | % | 16 | % | 17 | % | ||||||||||||||||||||||||
Cost of Services Before Reimbursements |
102,368 | 102,128 | 102,230 | 306,726 | 103,766 | 100,545 | 101,967 | 110,267 | 416,545 | 444,035 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
67 | % | 66 | % | 66 | % | 66 | % | 68 | % | 63 | % | 65 | % | 66 | % | 65 | % | 61 | % | ||||||||||||||||||||||||
General & Administrative Expenses |
30,789 | 29,089 | 30,460 | 90,338 | 28,142 | 32,500 | 33,513 | 34,893 | 129,048 | 155,378 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
20 | % | 19 | % | 20 | % | 20 | % | 18 | % | 20 | % | 21 | % | 21 | % | 20 | % | 21 | % | ||||||||||||||||||||||||
EBITDA (1) |
20,965 | 23,400 | 21,180 | 65,545 | 19,013 | 25,238 | 17,627 | 21,752 | 83,630 | 124,976 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
14 | % | 15 | % | 14 | % | 14 | % | 12 | % | 16 | % | 11 | % | 13 | % | 13 | % | 17 | % | ||||||||||||||||||||||||
Adjusted EBITDA (excluding office consolidation and severance expense) (1) |
21,448 | 24,407 | 22,016 | 67,871 | 25,448 | 27,653 | 23,192 | 25,059 | 101,352 | 131,909 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
14 | % | 16 | % | 14 | % | 15 | % | 17 | % | 17 | % | 15 | % | 15 | % | 16 | % | 18 | % | ||||||||||||||||||||||||
Operating Income |
14,269 | 16,885 | 14,583 | 45,737 | 11,603 | 17,716 | 9,528 | 12,884 | 51,731 | 88,754 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
9 | % | 11 | % | 9 | % | 10 | % | 8 | % | 11 | % | 6 | % | 8 | % | 8 | % | 12 | % | ||||||||||||||||||||||||
Net Income |
9,223 | 7,828 | 6,447 | 23,498 | 4,789 | 8,340 | 3,385 | 5,433 | 21,947 | 40,057 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
6 | % | 5 | % | 4 | % | 5 | % | 3 | % | 5 | % | 2 | % | 3 | % | 3 | % | 6 | % | ||||||||||||||||||||||||
Y/Y Growth rate |
11 | % | 131 | % | 19 | % | N/A | -58 | % | 6 | % | -66 | % | -50 | % | -45 | % | 20 | % | |||||||||||||||||||||||||
Q/Q Growth rate |
18 | % | 21 | % | 35 | % | N/A | -43 | % | 146 | % | -38 | % | -52 | % | N/A | N/A | |||||||||||||||||||||||||||
Net Income Per Diluted Share (EPS) |
0.18 | 0.16 | 0.13 | 0.47 | 0.10 | 0.17 | 0.07 | 0.11 | 0.44 | 0.83 | ||||||||||||||||||||||||||||||||||
Adjusted Net Income Per Diluted Share (excluding the net income impact of
office consolidation, severance expense and non recurring foreign tax
elections) (2) |
0.16 | 0.17 | 0.14 | 0.46 | 0.18 | 0.20 | 0.14 | 0.16 | 0.68 | 0.95 | ||||||||||||||||||||||||||||||||||
Shares used in computing income per diluted share |
50,518 | 50,264 | 50,096 | 50,292 | 50,018 | 49,954 | 49,756 | 49,449 | 49,795 | 48,285 | ||||||||||||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
5,383 | 3,000 | 361 | 5,383 | 49,144 | 13,342 | 5,132 | 6,743 | 49,144 | 23,134 | ||||||||||||||||||||||||||||||||||
Trade accounts receivable, net |
178,881 | 162,227 | 174,690 | 178,881 | 163,608 | 185,129 | 187,201 | 188,824 | 163,608 | 170,464 | ||||||||||||||||||||||||||||||||||
Days sales outstanding (DSO) |
86 | 79 | 83 | N/A | 78 | 87 | 91 | 87 | N/A | N/A | ||||||||||||||||||||||||||||||||||
Debt |
199,370 | 202,549 | 197,275 | 199,370 | 219,375 | 222,326 | 239,717 | 260,522 | 219,375 | 232,479 | ||||||||||||||||||||||||||||||||||
Share-based compensation expense related to consulting personnel |
980 | 1,040 | 801 | 2,821 | 869 | 955 | 1,333 | 1,926 | 5,083 | 9,087 | ||||||||||||||||||||||||||||||||||
Employee Data (Period End) (3) |
||||||||||||||||||||||||||||||||||||||||||||
Billable |
1,652 | 1,668 | 1,661 | 1,652 | 1,666 | 1,716 | 1,778 | 1,920 | 1,666 | 1,931 | ||||||||||||||||||||||||||||||||||
Non-billable |
508 | 522 | 518 | 508 | 511 | 514 | 535 | 573 | 511 | 577 | ||||||||||||||||||||||||||||||||||
Total |
2,160 | 2,190 | 2,179 | 2,160 | 2,177 | 2,230 | 2,313 | 2,493 | 2,177 | 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 other operating costs and benefits, severance expense and non recurring foreign tax elections. | |
(3) | Employee Data represents FTE employees (adjusted for part-time status). |
SEGMENT INFORMATION (4) | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 2010 | 2009 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||
All numbers in $000s except Per Share, People data and percentages | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | ||||||||||||||||||||||||||||||||||
Business Segment Revenues |
||||||||||||||||||||||||||||||||||||||||||||
Dispute and Investigative Services |
71,279 | 63,867 | 67,894 | $ | 203,040 | 72,160 | 76,010 | 76,758 | 77,496 | $ | 302,424 | $ | 356,524 | |||||||||||||||||||||||||||||||
% of Total Revenues |
41 | % | 37 | % | 39 | % | 39 | % | 41 | % | 43 | % | 44 | % | 43 | % | 43 | % | 43 | % | ||||||||||||||||||||||||
Business Consulting Services |
68,894 | 71,756 | 66,250 | 206,900 | 67,419 | 65,450 | 63,393 | 73,516 | 269,778 | 329,550 | ||||||||||||||||||||||||||||||||||
% of Total Revenues |
39 | % | 42 | % | 38 | % | 40 | % | 39 | % | 37 | % | 37 | % | 40 | % | 38 | % | 41 | % | ||||||||||||||||||||||||
International Consulting |
16,443 | 18,078 | 20,797 | 55,318 | 21,780 | 21,279 | 19,250 | 17,303 | 79,612 | 87,673 | ||||||||||||||||||||||||||||||||||
% of Total Revenues |
9 | % | 10 | % | 12 | % | 11 | % | 13 | % | 12 | % | 11 | % | 9 | % | 11 | % | 11 | % | ||||||||||||||||||||||||
Economic Consulting |
18,231 | 18,622 | 18,609 | 55,462 | 12,599 | 14,624 | 14,155 | 14,047 | 55,425 | 36,893 | ||||||||||||||||||||||||||||||||||
% of Total Revenues |
10 | % | 11 | % | 11 | % | 11 | % | 7 | % | 8 | % | 8 | % | 8 | % | 8 | % | 5 | % | ||||||||||||||||||||||||
Total Company |
$ | 174,847 | $ | 172,323 | $ | 173,550 | $ | 520,720 | $ | 173,958 | $ | 177,363 | $ | 173,556 | $ | 182,362 | $ | 707,239 | $ | 810,640 | ||||||||||||||||||||||||
Business Segment Revenues Before Reimbursements |
||||||||||||||||||||||||||||||||||||||||||||
Dispute and Investigative Services |
64,997 | 59,737 | 63,338 | 188,072 | 65,359 | 69,260 | 70,124 | 71,903 | 276,646 | 324,458 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
42 | % | 39 | % | 41 | % | 41 | % | 43 | % | 43 | % | 45 | % | 43 | % | 44 | % | 44 | % | ||||||||||||||||||||||||
Business Consulting Services |
58,406 | 63,430 | 57,399 | 179,235 | 58,717 | 58,749 | 57,883 | 66,906 | 242,255 | 290,257 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
38 | % | 41 | % | 37 | % | 39 | % | 38 | % | 37 | % | 37 | % | 40 | % | 38 | % | 40 | % | ||||||||||||||||||||||||
International Consulting |
13,231 | 14,484 | 16,145 | 43,860 | 17,512 | 17,266 | 16,067 | 15,516 | 66,361 | 76,605 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
9 | % | 9 | % | 11 | % | 9 | % | 11 | % | 11 | % | 10 | % | 9 | % | 10 | % | 11 | % | ||||||||||||||||||||||||
Economic Consulting |
16,588 | 16,966 | 16,988 | 50,542 | 11,463 | 13,878 | 13,258 | 12,887 | 51,486 | 35,742 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
11 | % | 11 | % | 11 | % | 11 | % | 8 | % | 9 | % | 8 | % | 8 | % | 8 | % | 5 | % | ||||||||||||||||||||||||
Total Company |
$ | 153,222 | $ | 154,617 | $ | 153,870 | $ | 461,709 | $ | 153,051 | $ | 159,153 | $ | 157,332 | $ | 167,212 | $ | 636,748 | $ | 727,062 | ||||||||||||||||||||||||
Segment Operating Profit (5) |
||||||||||||||||||||||||||||||||||||||||||||
Dispute and Investigative Services |
26,738 | 21,585 | 25,408 | 73,731 | 25,966 | 30,025 | 28,369 | 28,234 | 112,594 | 143,870 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
41 | % | 36 | % | 40 | % | 39 | % | 40 | % | 43 | % | 40 | % | 39 | % | 41 | % | 44 | % | ||||||||||||||||||||||||
Business Consulting Services |
19,817 | 23,148 | 19,017 | 61,982 | 18,881 | 21,763 | 20,332 | 23,452 | 84,428 | 115,280 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
34 | % | 36 | % | 33 | % | 35 | % | 32 | % | 37 | % | 35 | % | 35 | % | 35 | % | 40 | % | ||||||||||||||||||||||||
International Consulting |
1,680 | 3,663 | 3,740 | 9,083 | 2,661 | 4,793 | 4,406 | 4,176 | 16,036 | 22,606 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
13 | % | 25 | % | 23 | % | 21 | % | 15 | % | 28 | % | 27 | % | 27 | % | 24 | % | 30 | % | ||||||||||||||||||||||||
Economic Consulting |
5,585 | 6,273 | 6,296 | 18,154 | 3,402 | 5,239 | 4,888 | 4,644 | 18,173 | 14,121 | ||||||||||||||||||||||||||||||||||
% of Revenues Before Reimbursements |
34 | % | 37 | % | 37 | % | 36 | % | 30 | % | 38 | % | 37 | % | 36 | % | 35 | % | 40 | % | ||||||||||||||||||||||||
Total Company |
$ | 53,820 | $ | 54,669 | $ | 54,461 | $ | 162,950 | $ | 50,910 | $ | 61,820 | $ | 57,995 | $ | 60,506 | $ | 231,231 | $ | 295,877 | ||||||||||||||||||||||||
% of Revenues Before Reimbursements |
35 | % | 35 | % | 35 | % | 35 | % | 33 | % | 39 | % | 37 | % | 36 | % | 36 | % | 41 | % | ||||||||||||||||||||||||
Other Operating Data |
||||||||||||||||||||||||||||||||||||||||||||
Average Billable Full Time Equivalent Headcount |
||||||||||||||||||||||||||||||||||||||||||||
Dispute and Investigative Services |
627 | 642 | 647 | 639 | 701 | 716 | 764 | 810 | 747 | 820 | ||||||||||||||||||||||||||||||||||
Business Consulting Services |
703 | 699 | 706 | 703 | 668 | 699 | 735 | 804 | 727 | 836 | ||||||||||||||||||||||||||||||||||
International Consulting |
189 | 200 | 212 | 200 | 211 | 215 | 233 | 226 | 221 | 208 | ||||||||||||||||||||||||||||||||||
Economic Consulting |
136 | 119 | 114 | 123 | 105 | 104 | 100 | 101 | 102 | 62 | ||||||||||||||||||||||||||||||||||
Total Company |
1,655 | 1,660 | 1,679 | 1,665 | 1,685 | 1,734 | 1,832 | 1,941 | 1,797 | 1,926 | ||||||||||||||||||||||||||||||||||
Average Bill Rate (excluding success fees) |
||||||||||||||||||||||||||||||||||||||||||||
Dispute and Investigative Services |
296 | 300 | 292 | 297 | 282 | 280 | 276 | 278 | 279 | 284 | ||||||||||||||||||||||||||||||||||
Business Consulting Services |
219 | 217 | 218 | 234 | 223 | 215 | 210 | 219 | 216 | 223 | ||||||||||||||||||||||||||||||||||
International Consulting |
280 | 259 | 263 | 265 | 267 | 259 | 239 | 233 | 248 | 294 | ||||||||||||||||||||||||||||||||||
Economic Consulting |
375 | 385 | 367 | 375 | 342 | 347 | 344 | 343 | 344 | 332 | ||||||||||||||||||||||||||||||||||
Total Company |
267 | 266 | 264 | 272 | 260 | 255 | 250 | 252 | 254 | 260 | ||||||||||||||||||||||||||||||||||
Average Utilization (based off 1,850 hrs) |
||||||||||||||||||||||||||||||||||||||||||||
Dispute and Investigative Services |
72 | % | 69 | % | 75 | % | 72 | % | 75 | % | 74 | % | 72 | % | 73 | % | 74 | % | 78 | % | ||||||||||||||||||||||||
Business Consulting Services |
79 | % | 81 | % | 80 | % | 80 | % | 79 | % | 79 | % | 75 | % | 77 | % | 77 | % | 80 | % | ||||||||||||||||||||||||
International Consulting |
54 | % | 60 | % | 65 | % | 59 | % | 67 | % | 68 | % | 61 | % | 67 | % | 66 | % | 69 | % | ||||||||||||||||||||||||
Economic Consulting |
69 | % | 76 | % | 90 | % | 78 | % | 76 | % | 81 | % | 87 | % | 85 | % | 82 | % | 96 | % | ||||||||||||||||||||||||
Total Company |
73 | % | 73 | % | 77 | % | 74 | % | 76 | % | 76 | % | 73 | % | 75 | % | 75 | % | 79 | % |
(4) | During the first quarter of 2010, we made organizational changes in our business which resulted in the formation of additional operating segments and the repositioning of certain service offerings between the segments. Prior year comparative segment data has been restated to be consistent with the current presentation. | |
(5) | Segment Operating Profit is a measure of profit used by management and excludes certain expense amounts not allocated to the specific reporting segments. |
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(UNAUDITED)
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 Companys 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 costs and benefits
due to its real estate initiatives including the impact of closing certain offices and changes in
market conditions associated with expected sublease proceeds. During the quarter ended September
30, 2010, the Company recorded a non recurring benefit from a tax election related to certain of
its foreign entities. Adjusted EBITDA and adjusted operating income excludes the impact of
severance and office consolidation costs and benefits and adjusted earnings per share excludes the
net income impact of severance, office consolidation costs and benefits and the non recurring
benefit from a tax election related to certain of its foreign entities in all periods presented.
Severance expense and office consolidation costs and benefits 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 Navigants operating performance. While
management believes that these non-GAAP financial measures are useful in evaluating Navigants
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 Companys 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 costs and benefits 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.
2010 | 2010 | 2009 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | |||||||||||||||||||||||||||||||||||
Operating Income |
$ | 14,269 | $ | 16,885 | $ | 14,583 | $ | 45,737 | $ | 11,603 | $ | 17,716 | $ | 9,528 | $ | 12,884 | $ | 51,731 | $ | 88,754 | ||||||||||||||||||||||||
Depreciation |
3,528 | 3,553 | 3,801 | 10,882 | 4,288 | 4,352 | 4,320 | 4,640 | 17,600 | 17,302 | ||||||||||||||||||||||||||||||||||
Accelerated depreciation office closures included in other operating costs and benefit |
| | | | 175 | 115 | 387 | 608 | 1,285 | 2,534 | ||||||||||||||||||||||||||||||||||
Amortization |
3,168 | 2,962 | 2,796 | 8,926 | 2,947 | 3,055 | 3,392 | 3,620 | 13,014 | 16,386 | ||||||||||||||||||||||||||||||||||
EBITDA |
20,965 | 23,400 | 21,180 | 65,545 | 19,013 | 25,238 | 17,627 | 21,752 | 83,630 | 124,976 | ||||||||||||||||||||||||||||||||||
Add: |
||||||||||||||||||||||||||||||||||||||||||||
Other operating costs (benefit) office consolidation (excluding depreciation above) |
(900 | ) | | | (900 | ) | 2,130 | 870 | 4,225 | 300 | 7,525 | 2,673 | ||||||||||||||||||||||||||||||||
Severance expense |
1,383 | 1,007 | 836 | 3,226 | 4,305 | 1,545 | 1,340 | 3,007 | 10,197 | 4,260 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (excluding office consolidation and severance expense) |
21,448 | 24,407 | 22,016 | 67,871 | 25,448 | 27,653 | 23,192 | 25,059 | 101,352 | 131,909 | ||||||||||||||||||||||||||||||||||
General and administrative expenses |
30,789 | 29,089 | 30,460 | 90,338 | 28,142 | 32,500 | 33,513 | 34,893 | 129,048 | 155,378 | ||||||||||||||||||||||||||||||||||
Long term compensation expense related to consulting personnel (including share based compensation) |
2,966 | 2,180 | 2,821 | 7,967 | 1,625 | 3,212 | 2,630 | 3,561 | 11,028 | 12,850 | ||||||||||||||||||||||||||||||||||
Severance expense added above |
(1,383 | ) | (1,007 | ) | (836 | ) | (3,226 | ) | (4,305 | ) | (1,545 | ) | (1,340 | ) | (3,007 | ) | (10,197 | ) | (4,260 | ) | ||||||||||||||||||||||||
Total Segment Operating Profit |
$ | 53,820 | $ | 54,669 | $ | 54,461 | $ | 162,950 | $ | 50,910 | $ | 61,820 | $ | 57,995 | $ | 60,506 | $ | 231,231 | $ | 295,877 |
Adjusted earnings per share (adjusted to exclude the net income impact from office
consolidation costs and benefits, severance expense and non recurring foreign tax elections)
The Company discloses adjusted earnings per share to exclude the net income impact from office
consolidation costs and benefits, severance expense and non recurring foreign tax elections as
discussed above. Management believes the adjusted earnings per share information provides
additional insights into Navigants 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.
2010 | 2010 | 2009 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Full Year | |||||||||||||||||||||||||||||||||||
Other operating costs (benefit) office consolidation |
$ | (900 | ) | $ | | $ | | $ | (900 | ) | $ | 2,305 | $ | 985 | $ | 4,612 | $ | 908 | $ | 8,810 | $ | 5,207 | ||||||||||||||||||||||
Income tax (benefit) (6) |
363 | | | 363 | (930 | ) | (397 | ) | (1,860 | ) | (366 | ) | (3,553 | ) | (2,100 | ) | ||||||||||||||||||||||||||||
Net income impact of other operating costs (benefit) office consolidation |
$ | (537 | ) | $ | | $ | | $ | (537 | ) | $ | 1,375 | $ | 588 | $ | 2,752 | $ | 542 | $ | 5,257 | $ | 3,107 | ||||||||||||||||||||||
Shares used in computing income per diluted share |
50,518 | 50,264 | 50,096 | 50,292 | 50,018 | 49,954 | 49,756 | 49,449 | 49,795 | 48,285 | ||||||||||||||||||||||||||||||||||
Diluted income per share impact of other operating costs (benefit) office consolidation |
$ | (0.01 | ) | $ | | $ | | $ | (0.01 | ) | $ | 0.03 | $ | 0.01 | $ | 0.06 | $ | 0.01 | $ | 0.11 | $ | 0.06 | ||||||||||||||||||||||
Severance expense |
$ | 1,383 | $ | 1,007 | $ | 836 | $ | 3,226 | $ | 4,305 | $ | 1,545 | $ | 1,340 | $ | 3,007 | $ | 10,197 | $ | 4,260 | ||||||||||||||||||||||||
Income tax (benefit)(6) |
(415 | ) | (371 | ) | (322 | ) | (1,108 | ) | (1,442 | ) | (480 | ) | (497 | ) | (1,170 | ) | (3,589 | ) | (1,512 | ) | ||||||||||||||||||||||||
Net income impact of severance expense |
$ | 968 | $ | 636 | $ | 514 | $ | 2,118 | $ | 2,863 | $ | 1,065 | $ | 843 | $ | 1,837 | $ | 6,608 | $ | 2,748 | ||||||||||||||||||||||||
Shares used in computing income per diluted share |
50,518 | 50,264 | 50,096 | 50,292 | 50,018 | 49,954 | 49,756 | 49,449 | 49,795 | 48,285 | ||||||||||||||||||||||||||||||||||
Diluted income per share impact of severance expense |
$ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.06 | $ | 0.02 | $ | 0.02 | $ | 0.04 | $ | 0.13 | $ | 0.06 | ||||||||||||||||||||||||
Net income |
$ | 9,223 | $ | 7,828 | $ | 6,447 | $ | 23,498 | $ | 4,789 | $ | 8,340 | $ | 3,385 | $ | 5,433 | $ | 21,947 | $ | 40,057 | ||||||||||||||||||||||||
Net income impact of other operating costs (benefit) office consolidation |
(537 | ) | | | (537 | ) | 1,375 | 588 | 2,752 | 542 | 5,257 | 3,107 | ||||||||||||||||||||||||||||||||
Net income impact of severance expense |
968 | 636 | 514 | 2,118 | 2,863 | 1,065 | 843 | 1,837 | 6,608 | 2,748 | ||||||||||||||||||||||||||||||||||
Non recurring foreign tax elections |
(1,751 | ) | | | (1,751 | ) | ||||||||||||||||||||||||||||||||||||||
Adjusted net income, excluding the net income impact of office consolidation, severance
expense and non recurring foreign tax elections |
$ | 7,903 | $ | 8,464 | $ | 6,961 | $ | 23,328 | $ | 9,027 | $ | 9,993 | $ | 6,980 | $ | 7,812 | $ | 33,812 | $ | 45,912 | ||||||||||||||||||||||||
Shares used in computing income per diluted share |
50,518 | 50,264 | 50,096 | 50,292 | 50,018 | 49,954 | 49,756 | 49,449 | 49,795 | 48,285 | ||||||||||||||||||||||||||||||||||
Adjusted earnings per share, excluding the net income impact of office consolidation,
severance expense and non recurring foreign tax elections |
$ | 0.16 | $ | 0.17 | $ | 0.14 | $ | 0.46 | $ | 0.18 | $ | 0.20 | $ | 0.14 | $ | 0.16 | $ | 0.68 | $ | 0.95 | ||||||||||||||||||||||||
(6) | Effective income tax (benefit) has been determined based on specific tax jurisdiction. |