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8-K - FORM 8-K - NAVIGANT CONSULTING INC | d429351d8k.htm |
Exhibit 99.1
For additional information contact:
Jennifer Moreno Reddick
Investor Relations
312.573.5634
jennifer.morenoreddick@navigant.com
NAVIGANT REPORTS THIRD QUARTER 2012 RESULTS
| Third quarter 2012 revenues before reimbursements (RBR) of $181 million were consistent compared to third quarter 2011 while year-to-date 2012 RBR increased 5% over the prior year to $549 million. |
| Third quarter 2012 GAAP earnings per share (EPS) of $0.22 and adjusted EPS of $0.23 each increased 10% over third quarter 2011. |
| 456,000 shares of common stock were repurchased during third quarter 2012 while long-term debt declined $18 million from the end of third quarter 2011. |
| Navigant narrows its financial outlook for full year 2012 within the original guidance range. |
| EVP and CFO Thomas Nardi announces plans to retire in first quarter 2013. |
CHICAGO, October 30, 2012 Navigant (NYSE:NCI) today announced financial results for the third quarter ended September 30, 2012.
We delivered a solid quarter financially, with higher earnings and strong cash flow that enabled us to make growth investments, continue to pay down debt and repurchase shares, commented Julie Howard, Chief Executive Officer. While certain aspects of the disputes and investigations market remain inconsistent, an environment that we anticipate will persist throughout the fourth quarter, we continue to experience active demand in other practice areas and anticipate a strong finish to the year. We are on track to achieve financial results within our original 2012 target range and I am optimistic about our 2013 prospects and our ability to continue to progress our long-term strategy.
Third Quarter 2012 Results
Total Company Third Quarter and Year-To-Date 2012 Financial Results (1) |
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Q3 2012 | Q3 2011 | Change | YTD September 2012 |
YTD September 2011 |
Change | |||||||||||||||||||
RBR ($000) |
$ | 181,128 | $ | 181,821 | -0.4 | % | $ | 549,037 | $ | 524,718 | 4.6 | % | ||||||||||||
Total Revenues ($000) |
$ | 208,063 | $ | 204,472 | 1.8 | % | $ | 619,284 | $ | 587,679 | 5.4 | % | ||||||||||||
EBITDA ($000) |
$ | 25,650 | $ | 25,749 | -0.4 | % | $ | 75,331 | $ | 73,457 | 2.6 | % | ||||||||||||
Adjusted EBITDA ($000) |
$ | 26,288 | $ | 26,346 | -0.2 | % | $ | 78,389 | $ | 75,533 | 3.8 | % | ||||||||||||
Net Income ($000) |
$ | 11,444 | $ | 10,536 | 8.6 | % | $ | 32,642 | $ | 30,074 | 8.5 | % | ||||||||||||
Earnings Per Share |
$ | 0.22 | $ | 0.20 | 10.0 | % | $ | 0.63 | $ | 0.59 | 6.8 | % | ||||||||||||
Adjusted Earnings Per Share |
$ | 0.23 | $ | 0.21 | 9.5 | % | $ | 0.67 | $ | 0.61 | 9.8 | % | ||||||||||||
Average Billable Full Time Equivalents (FTEs) |
1,919 | 1,838 | 4.4 | % | 1,902 | 1,795 | 6.0 | % | ||||||||||||||||
End of Period Billable FTEs |
1,944 | 1,854 | 4.9 | % | 1,944 | 1,854 | 4.9 | % | ||||||||||||||||
Consultant Utilization (1,850 base) (2) |
73 | % | 76 | % | -3.9 | % | 74 | % | 78 | % | -5.1 | % | ||||||||||||
Average Bill Rate (excluding performance based fees) |
$ | 279 | $ | 282 | -1.1 | % | $ | 283 | $ | 282 | 0.4 | % | ||||||||||||
Days Sales Outstanding (DSO) |
85 | 81 | 4.9 | % | 85 | 81 | 4.9 | % |
1) | EBITDA, adjusted EBITDA and adjusted earnings per share are non GAAP financial measures. See the attached financial schedules for a reconciliation of EBITDA, adjusted EBITDA and adjusted earnings per share to the most directly comparable GAAP financial measures. |
2) | Prior period utilization and bill rate figures have been restated to reflect consulting personnel only and do not include technology personnel (i.e., those who provide client services but do not record time to specific client engagements). |
Navigant reported third quarter 2012 RBR that was on par with both the prior year (which benefitted from $9 million in performance-based fees) and the prior quarter while up 5% year-to-date over 2011. Third quarter 2012 RBR attributed to Technology, Data & Process services increased 62% due, in large part, to ongoing work on data intensive financial services litigation matters. Third quarter 2012 adjusted EBITDA was flat compared to the prior year while adjusted EBITDA for the first nine months of 2012 was up 4% over the prior year period to $78 million. Third quarter 2012 adjusted EPS increased 10% over the prior year on both a quarterly and a year-to-date basis. Navigants third quarter 2012 average billable FTEs continued to climb steadily, up 4% from third quarter 2011 and up 6% year-to-date from 2011, primarily due to growth in the Companys Healthcare, Energy and Technology Solutions practice areas. Cash flow remained strong during the third quarter 2012 and was used to fund two investments within Navigants Healthcare and Energy segments. Total long-term debt as of September 30, 2012 declined $18 million from the prior year.
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Business Segment Highlights
Business Segment Third Quarter and Year-To-Date 2012 Financial Results (3) |
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Q3 2012 | Q3 2011 | Change | YTD September 2012 |
YTD September 2011 |
Change | |||||||||||||||||||
Business Segment RBR ($000) |
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Disputes, Investigations & Economics |
$ | 82,325 | $ | 85,723 | -4.0 | % | $ | 254,894 | $ | 256,660 | -0.7 | % | ||||||||||||
Financial, Risk & Compliance Advisory |
39,194 | 39,850 | -1.6 | % | 119,224 | 103,819 | 14.8 | % | ||||||||||||||||
Healthcare |
36,701 | 34,023 | 7.9 | % | 109,265 | 99,620 | 9.7 | % | ||||||||||||||||
Energy |
22,908 | 22,225 | 3.1 | % | 65,654 | 64,619 | 1.6 | % | ||||||||||||||||
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Total Company |
$ | 181,128 | $ | 181,821 | -0.4 | % | $ | 549,037 | $ | 524,718 | 4.6 | % | ||||||||||||
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Business Segment Revenues ($000) |
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Disputes, Investigations & Economics |
$ | 88,984 | $ | 93,559 | -4.9 | % | $ | 272,967 | $ | 280,504 | -2.7 | % | ||||||||||||
Financial, Risk & Compliance Advisory |
50,295 | 45,447 | 10.7 | % | 146,970 | 119,012 | 23.5 | % | ||||||||||||||||
Healthcare |
40,957 | 38,656 | 6.0 | % | 122,722 | 111,926 | 9.6 | % | ||||||||||||||||
Energy |
27,827 | 26,810 | 3.8 | % | 76,625 | 76,237 | 0.5 | % | ||||||||||||||||
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Total Company |
$ | 208,063 | $ | 204,472 | 1.8 | % | $ | 619,284 | $ | 587,679 | 5.4 | % | ||||||||||||
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Segment Operating Profit ($000) |
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Disputes, Investigations & Economics |
$ | 29,000 | $ | 31,669 | -8.4 | % | $ | 91,163 | $ | 92,168 | -1.1 | % | ||||||||||||
Financial, Risk & Compliance Advisory |
12,830 | 11,531 | 11.3 | % | 41,987 | 32,909 | 27.6 | % | ||||||||||||||||
Healthcare |
12,315 | 10,610 | 16.1 | % | 35,248 | 30,983 | 13.8 | % | ||||||||||||||||
Energy |
7,837 | 8,644 | -9.3 | % | 22,566 | 24,702 | -8.6 | % | ||||||||||||||||
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Total Company |
$ | 61,982 | $ | 62,454 | -0.8 | % | $ | 190,964 | $ | 180,762 | 5.6 | % | ||||||||||||
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3) | A metrics summary including data by segment is available at www.navigant.com/investor relations. |
Third quarter 2012 RBR in the Disputes, Investigations & Economics segment declined 4% from third quarter 2011 while year-to-date 2012 segment RBR declined 1% from the prior year period. Overall demand for services across the segment stabilized in third quarter 2012, with particular strength in the segments Technology Solutions business as well as in the financial services sector, where credit crisis related litigation continues to evolve. Other parts of the disputes market are more sluggish and general economic conditions have kept clients focused on controlling costs. Although this environment is expected to continue in the near term, the segment is well positioned to capitalize on emerging opportunities in 2013.
In the Financial, Risk & Compliance Advisory segment, third quarter 2012 RBR declined 2% from third quarter 2011 while year-to-date 2012 segment RBR increased 15% over the prior year period. Revenue ramp on mortgage servicing related engagements has been ongoing in 2012 and is expected to continue in 2013. This revenue growth was offset by lower revenues from the Global Investigations & Compliance business which is experiencing long lead times in the sales process for new anti-money laundering and anti-bribery and corruption matters. Additionally, third quarter 2011 segment results benefitted from sizeable performance-based fees from the Restructuring practice.
3
The Healthcare segment again delivered strong results as third quarter 2012 RBR increased 8% over third quarter 2011 and year-to-date 2012 RBR increased 10% over that of 2011. Within the evolving U.S. healthcare landscape, financial pressures amongst provider and payer organizations are leading to operational changes requiring a growing number of strategic assessments. The payer environment has also been particularly active as commercial and state entities seek to assess and implement new payment models. Additionally, the Healthcare segments Life Sciences team is realizing year-over-year revenue growth as it expands its global reach.
Third quarter 2012 Energy segment RBR increased 3% from third quarter 2011 and, on a year-to-date basis, 2012 RBR increased 2% over the prior year period. Revenue growth has been primarily driven by energy efficiency related engagements where Navigant is implementing, monitoring and measuring the effectiveness of demand side management programs in utilities across the U.S. Market research and subscription services are another, more recent area of revenue growth for the Energy segment.
CFO Nardi to Retire
Navigant today announced that Thomas Nardi, Executive Vice President and Chief Financial Officer, plans to retire in first quarter 2013. Tom has been a key contributor over the past four years and will be missed as a valued member of our executive leadership team, commented Howard. He is a high caliber CFO and has demonstrated strong financial leadership during a challenging economic cycle for the Company. Tom will continue to work with us through our year-end earnings process and will help ensure a seamless transition to our new CFO.
Nardi stated, It has been a privilege to work with a strong management team during a period of significant economic pressure and strategic realignment and I believe that Navigant is well positioned to successfully execute its strategy. I appreciate the opportunities and challenges provided to me and look forward to watching Navigants trajectory of success in the years to come.
Navigant has initiated a search for a new Chief Financial Officer.
2012 Outlook
Navigant narrowed its full year 2012 outlook within its original guidance range as discussed on February 2, 2012. Total 2012 revenues are estimated to range from $830 to $845 million and RBR is estimated to be between $730 and $745 million. 2012 adjusted EBITDA is estimated to range from $103 to $110 million, while adjusted EPS is estimated to be between $0.88 and $0.95.
4
Conference Call Details
Howard will host a conference call to discuss the Companys third quarter 2012 results at 10:00 a.m. Eastern Time on Tuesday, October 30, 2012. The conference call may be accessed via the Navigant website (www.navigant.com/investor relations) or by dialing 888.593.8430 (312.470.7390 for international callers) and referencing pass code NCI. A replay of the web cast will be available for approximately 90 days.
About Navigant
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes, Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries. More information about Navigant can be found at www.navigant.com.
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 outlook, plans, goals, anticipates, believes, intends, estimates, expects and similar expressions. These statements are based upon managements current expectations and speak only as of the date of this press release. The Company cautions readers that there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those contained in or implied by the forward-looking statements including, without limitation: the success of the Companys organizational changes; 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 Companys 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 market and general economic conditions. Further information on these and other potential factors that could affect the Companys financial results are included under the Risk Factors section and elsewhere in the Companys filings with the Securities and Exchange Commission (SEC), which are available on the SECs website or at www.navigant.com/investor relations. The Company cannot guarantee any future results, levels of activity, performance or achievement and undertakes no obligation to update any of its forward-looking statements.
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5
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
For the quarters ended September 30, |
For the nine months ended September 30, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: |
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Revenues before reimbursements |
$ | 181,128 | $ | 181,821 | $ | 549,037 | $ | 524,718 | ||||||||
Reimbursements |
26,935 | 22,651 | 70,247 | 62,961 | ||||||||||||
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Total revenues |
208,063 | 204,472 | 619,284 | 587,679 | ||||||||||||
Costs of services: |
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Cost of services before reimbursable expenses |
122,392 | 123,209 | 368,595 | 354,846 | ||||||||||||
Reimbursable expenses |
26,935 | 22,651 | 70,247 | 62,961 | ||||||||||||
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Total costs of services |
149,327 | 145,860 | 438,842 | 417,807 | ||||||||||||
General and administrative expenses |
33,086 | 32,863 | 104,491 | 96,415 | ||||||||||||
Depreciation expense |
3,618 | 3,481 | 10,874 | 10,064 | ||||||||||||
Amortization expense |
1,504 | 2,234 | 4,879 | 6,698 | ||||||||||||
Other operating costs: |
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Contingent acquisition liability adjustment |
| | 620 | | ||||||||||||
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Operating income |
20,528 | 20,034 | 59,578 | 56,695 | ||||||||||||
Interest expense |
1,297 | 1,907 | 4,186 | 5,658 | ||||||||||||
Interest income |
(167 | ) | (396 | ) | (586 | ) | (1,192 | ) | ||||||||
Other expense (income), net |
95 | (206 | ) | 56 | (170 | ) | ||||||||||
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Income before income tax expense |
19,303 | 18,729 | 55,922 | 52,399 | ||||||||||||
Income tax expense |
7,859 | 8,193 | 23,280 | 22,325 | ||||||||||||
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Net income |
$ | 11,444 | $ | 10,536 | $ | 32,642 | $ | 30,074 | ||||||||
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Basic net income per share |
$ | 0.22 | $ | 0.21 | $ | 0.64 | $ | 0.59 | ||||||||
Shares used in computing net income per basic share |
50,863 | 51,109 | 51,002 | 50,702 | ||||||||||||
Diluted net income per share |
$ | 0.22 | $ | 0.20 | $ | 0.63 | $ | 0.59 | ||||||||
Shares used in computing net income per diluted share |
51,460 | 51,487 | 51,647 | 51,263 |
6
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AND SELECTED DATA
(In thousands, except DSO data)
September 30, 2012 |
December 31, 2011 |
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(Unaudited) | ||||||||
ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 1,239 | $ | 2,969 | ||||
Accounts receivable, net |
209,594 | 179,041 | ||||||
Prepaid expenses and other current assets |
27,066 | 22,766 | ||||||
Deferred income tax assets |
13,757 | 16,229 | ||||||
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Total current assets |
251,656 | 221,005 | ||||||
Non-current assets: |
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Property and equipment, net |
45,542 | 41,138 | ||||||
Intangible assets, net |
12,430 | 16,825 | ||||||
Goodwill |
583,459 | 570,280 | ||||||
Other assets |
32,226 | 25,953 | ||||||
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Total assets |
$ | 925,313 | $ | 875,201 | ||||
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LIABILITIES AND STOCKHOLDERS EQUITY |
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Current liabilities: |
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Accounts payable |
$ | 18,867 | $ | 16,261 | ||||
Accrued liabilities |
11,561 | 8,432 | ||||||
Accrued compensation-related costs |
65,096 | 95,451 | ||||||
Income tax payable |
897 | 3,558 | ||||||
Other current liabilities |
37,578 | 32,622 | ||||||
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Total current liabilities |
133,999 | 156,324 | ||||||
Non-current liabilities: |
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Deferred income tax liabilities |
64,945 | 52,964 | ||||||
Other non-current liabilities |
23,272 | 20,445 | ||||||
Bank debt non-current |
155,538 | 131,790 | ||||||
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Total non-current liabilities |
243,755 | 205,199 | ||||||
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Total liabilities |
377,754 | 361,523 | ||||||
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Stockholders equity: |
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Common stock |
62 | 61 | ||||||
Additional paid-in capital |
579,366 | 567,627 | ||||||
Treasury stock |
(212,585 | ) | (197,602 | ) | ||||
Retained earnings |
189,015 | 156,373 | ||||||
Accumulated other comprehensive loss |
(8,299 | ) | (12,781 | ) | ||||
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Total stockholders equity |
547,559 | 513,678 | ||||||
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Total liabilities and stockholders equity |
$ | 925,313 | $ | 875,201 | ||||
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Selected Data | ||||||||
Days sales outstanding, net (DSO) |
85 | 76 |
7
NAVIGANT CONSULTING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the quarters
ended September 30, |
For the nine months
ended September 30, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
Cash flows from operating activities: |
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Net income |
$ | 11,444 | $ | 10,536 | $ | 32,642 | $ | 30,074 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
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Depreciation expense |
3,618 | 3,481 | 10,874 | 10,064 | ||||||||||||
Amortization expense |
1,504 | 2,234 | 4,879 | 6,698 | ||||||||||||
Share-based compensation expense |
2,738 | 2,383 | 7,677 | 6,516 | ||||||||||||
Accretion of interest expense |
165 | 166 | 439 | 695 | ||||||||||||
Deferred income taxes |
1,571 | (704 | ) | 13,055 | 10,609 | |||||||||||
Allowance for doubtful accounts receivable |
1,057 | 2,248 | 4,110 | 5,276 | ||||||||||||
Contingent acquisition liability adjustments, net |
| | 620 | | ||||||||||||
Changes in assets and liabilities (net of acquisitions): |
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Accounts receivable |
(4,608 | ) | (9,839 | ) | (33,742 | ) | (23,801 | ) | ||||||||
Prepaid expenses and other assets |
(1,598 | ) | 4,698 | (6,794 | ) | (47 | ) | |||||||||
Accounts payable |
2,121 | 2,830 | 2,570 | 3,719 | ||||||||||||
Accrued liabilities |
911 | 849 | 3,032 | 632 | ||||||||||||
Accrued compensation-related costs |
7,027 | 15,712 | (30,517 | ) | 3,961 | |||||||||||
Income taxes payable |
1,043 | 5,050 | (1,809 | ) | 2,784 | |||||||||||
Other liabilities |
(1,887 | ) | 674 | 1,405 | (2,903 | ) | ||||||||||
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Net cash provided by operating activities |
25,106 | 40,318 | 8,441 | 54,277 | ||||||||||||
Cash flows from investing activities: |
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Purchases of property and equipment |
(3,532 | ) | (2,071 | ) | (14,511 | ) | (5,472 | ) | ||||||||
Acquisitions of businesses, net of cash acquired |
(2,588 | ) | (6,300 | ) | (2,588 | ) | (7,346 | ) | ||||||||
Payments of acquisition liabilities |
| | (1,106 | ) | (10,217 | ) | ||||||||||
Other, net |
(390 | ) | | (1,601 | ) | (225 | ) | |||||||||
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Net cash used in investing activities |
(6,510 | ) | (8,371 | ) | (19,806 | ) | (23,260 | ) | ||||||||
Cash flows from financing activities: |
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Issuances of common stock |
606 | 333 | 2,733 | 1,383 | ||||||||||||
Repurchase of common stock |
(5,407 | ) | | (12,667 | ) | | ||||||||||
Payments of contingent acquisition liabilities |
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Payment upon termination of credit agreement |
| | | (250,613 | ) | |||||||||||
Proceeds from credit agreement |
| | | 250,613 | ||||||||||||
Net (repayments to) borrowings from banks |
(12,778 | ) | (31,147 | ) | 23,222 | (24,715 | ) | |||||||||
Payments of term loan |
| | | (4,599 | ) | |||||||||||
Payments of debt issuance costs |
| | | (2,814 | ) | |||||||||||
Other, net |
69 | 133 | (970 | ) | (706 | ) | ||||||||||
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Net cash (used in) provided by financing activities |
(17,510 | ) | (30,681 | ) | 9,517 | (31,451 | ) | |||||||||
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Effect of exchange rate changes on cash and cash equivalents |
153 | (226 | ) | 118 | (123 | ) | ||||||||||
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Net increase (decrease) in cash and cash equivalents |
1,239 | 1,040 | (1,730 | ) | (557 | ) | ||||||||||
Cash and cash equivalents at beginning of the period |
| 384 | 2,969 | 1,981 | ||||||||||||
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Cash and cash equivalents at end of the period |
$ | 1,239 | $ | 1,424 | $ | 1,239 | $ | 1,424 | ||||||||
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8
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
This press release includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission. Below are the reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles (GAAP). This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP. Management uses these non-GAAP measures in addition to GAAP measures to assess the Companys operations and financial results and believes they are useful indicators of operating performance and the Companys ability to generate cash flows from operations that are available for interest, debt service, taxes and capital expenditures. Investors should recognize that these measures may not be comparable to similarly-titled measures of other companies.
EBITDA, adjusted EBITDA, adjusted Net Income and adjusted Earnings per Share
EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA excludes the impact of severance expense and other operating costs. Adjusted net income and adjusted earnings per share exclude the net income and per share net income impact of severance expense and other operating costs. Severance expense and other operating costs are not considered to be non-recurring, infrequent or unusual to our business. Management believes that these measures provide investors with enhanced comparability of the Companys results of operations across periods.
Free Cash Flow
Free cash flow is calculated as net cash provided from operations excluding changes in assets and liabilities and allowance for uncollectible accounts receivable less cash payments for property, plant and equipment and deferred acquisition related payments. Free cash flow does not represent discretionary cash available for spending as it excludes certain contractual obligations such as debt repayment. However, management believes that it provides investors with an indicator of cash available for on-going business operations and long term value creation.
EBITDA, adjusted EBITDA, adjusted Net Income and adjusted Earnings Per Share |
For the quarters ended September 30, |
For the nine months ended September 30, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
Severance expense |
$ | 638 | $ | 597 | $ | 2,438 | $ | 2,076 | ||||||||
Income tax benefit (1) |
(238 | ) | (199 | ) | (846 | ) | (735 | ) | ||||||||
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Net income impact of severance expense |
$ | 400 | $ | 398 | $ | 1,592 | $ | 1,341 | ||||||||
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Other operating costs - contingent acquisition liability adjustment |
$ | | $ | | $ | 620 | $ | | ||||||||
Income tax benefit (1) |
| | (250 | ) | | |||||||||||
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Net income impact of other operating costs |
$ | | $ | | $ | 370 | $ | | ||||||||
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EBITDA reconciliation: |
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Operating income |
$ | 20,528 | $ | 20,034 | $ | 59,578 | $ | 56,695 | ||||||||
Depreciation |
3,618 | 3,481 | 10,874 | 10,064 | ||||||||||||
Amortization |
1,504 | 2,234 | 4,879 | 6,698 | ||||||||||||
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EBITDA |
$ | 25,650 | $ | 25,749 | $ | 75,331 | $ | 73,457 | ||||||||
Severance expense |
638 | 597 | 2,438 | 2,076 | ||||||||||||
Other operating costs - contingent acquisition liability adjustment |
| | 620 | | ||||||||||||
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Adjusted EBITDA |
$ | 26,288 | $ | 26,346 | $ | 78,389 | $ | 75,533 | ||||||||
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Net income |
$ | 11,444 | $ | 10,536 | $ | 32,642 | $ | 30,074 | ||||||||
Net income impact of severance expense |
400 | 398 | 1,592 | 1,341 | ||||||||||||
Net income impact of other operating costs - contingent acquisition liability adjustment |
| | 370 | | ||||||||||||
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Adjusted net income |
$ | 11,844 | $ | 10,934 | $ | 34,604 | $ | 31,415 | ||||||||
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Shares used in computing net income per diluted share |
51,460 | 51,487 | 51,647 | 51,263 | ||||||||||||
Adjusted earnings per share |
$ | 0.23 | $ | 0.21 | $ | 0.67 | $ | 0.61 | ||||||||
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(1) | Effective income tax (benefit) has been determined based on specific tax jurisdiction. |
Free Cash Flow |
For the quarters
ended September 30, |
For the nine months
ended September 30, |
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2012 | 2011 | 2012 | 2011 | |||||||||||||
Net cash provided by operating activities |
$ | 25,106 | $ | 40,318 | $ | 8,441 | $ | 54,277 | ||||||||
Changes in assets and liabilities |
(3,009 | ) | (19,974 | ) | 65,855 | 15,655 | ||||||||||
Allowance for uncollectible accounts receivable |
(1,057 | ) | (2,248 | ) | (4,110 | ) | (5,276 | ) | ||||||||
Purchases of property and equipment |
(3,532 | ) | (2,071 | ) | (14,511 | ) | (5,472 | ) | ||||||||
Payments of acquisition liabilities |
| | (1,106 | ) | (10,217 | ) | ||||||||||
Payments of contingent acquisition liabilities |
| | (2,801 | ) | | |||||||||||
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Free Cash Flow |
$ | 17,508 | $ | 16,025 | $ | 51,768 | $ | 48,967 | ||||||||
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9