Navigant Reports First Quarter 2013 Results

  Navigant Reports First Quarter 2013 Results

  *Revenues before reimbursements were $187.3 million compared to $186.4
    million in first quarter 2012.
  *Adjusted EBITDA increased 8% to $29.9 million. Adjusted EBITDA margins
    improved 100 basis points to 15.9%.
  *23% year over year EPS increase to $0.27. Adjusted EPS of $0.27 increased
    17%.
  *Repurchased 513,200 shares of common stock at an average price of $12.07
    per share.
  *Navigant reaffirms 2013 outlook.

Business Wire

CHICAGO -- April 25, 2013

Navigant (NYSE:NCI) announced financial results for the first quarter ended
March 31, 2013.

Navigant reported first quarter 2013 revenues before reimbursements (RBR) of
$187.3 million, as double-digit segment RBR growth from Healthcare, Energy and
Financial, Risk & Compliance Advisory (FRCA), offset a decrease from the
Disputes, Investigations & Economics (DI&E) segment.

First quarter 2013 Adjusted EBITDA of $29.9 million was up 8% year-over-year
due to increased segment operating profit from three segments and a 9%
reduction in general and administrative expenses, offset by a decline in DI&E
segment operating profit. Adjusted EBITDA Margin (Adjusted EBITDA as a
percentage of RBR) increased to 15.9% for first quarter 2013, compared to
14.9% during first quarter 2012.

Net Income for first quarter 2013 was $13.8 million, compared to $11.6 million
in the prior year first quarter, an increase of 18.5%. Effective income tax
rate was 41.5% for first quarter 2013 compared to 42.6% for first quarter
2012.

Earnings per share (EPS) were $0.27 for first quarter 2013, compared to $0.22
for the same quarter last year, an increase of 23%. Adjusted EPS were $0.27
for the quarter, compared to $0.23 for first quarter last year, an increase of
17%. GAAP EPS and Adjusted EPS were the same for first quarter 2013 because
the $0.02 per share effect of the gain from the sale of a portion of the
Economics practice was fully offset by the costs of office consolidation and
severance.

“Our market strategy continues to differentiate Navigant as our experts are
sought after to simplify and solve critical challenges and address the
transformational changes shaping the Energy, Financial Services and Healthcare
sectors. As we continue to invest in and capitalize on these market
opportunities, we deliver consistent cash flow to reduce debt, repurchase
shares and grow the Company” commented Julie Howard, Chief Executive Officer.
“Our first quarter results reflect our strong market position and our
increased efforts to deliver enhanced profit contribution. We modestly
improved our RBR performance against a very strong first quarter last year,
while markedly increasing Adjusted EBITDA, Adjusted EBITDA margin and Adjusted
EPS.”

Segment Financial Highlights

Business Segment First Quarter Financial Results                 
                                      Q1 2013      Q1 2012      Change
RBR ($000)                                                      
Disputes, Investigations & Economics    $ 76,975      $ 91,219      -15.6 %
Financial, Risk & Compliance Advisory     41,764        37,230      12.2  %
Healthcare                                43,583        36,542      19.3  %
Energy                                  24,935     21,389    16.6  %
Total Company                          $ 187,257   $ 186,380   0.5   %
Total Revenues ($000)
Disputes, Investigations & Economics    $ 83,458      $ 97,089      -14.0 %
Financial, Risk & Compliance Advisory     52,603        43,828      20.0  %
Healthcare                                49,191        40,926      20.2  %
Energy                                  29,521     24,778    19.1  %
Total Company                          $ 214,773   $ 206,621   3.9   %
Segment Operating Profit ($000)
Disputes, Investigations & Economics    $ 25,817      $ 34,168      -24.4 %
Financial, Risk & Compliance Advisory     14,995        13,755      9.0   %
Healthcare                                15,804        11,470      37.8  %
Energy                                  8,796      7,254     21.3  %
Total Company                          $ 65,412    $ 66,647    -1.9  %
Segment Operating Margin (% of RBR)
Disputes, Investigations & Economics      33.5    %     37.5    %   -3.9  %
Financial, Risk & Compliance Advisory     35.9    %     36.9    %   -1.0  %
Healthcare                                36.3    %     31.4    %   4.9   %
Energy                                  35.3    %   33.9    %  1.4   %
Total Company                           34.9    %   35.8    %  -0.8  %
                                                                          

Healthcare delivered a 19.3% increase in RBR for first quarter 2013 compared
to the same quarter of 2012. Approximately 50% of the increase was organically
driven growth. These results continue to reflect the demand for Navigant’s
expertise in this reform environment, delivered through the strategic
combination of deep industry knowledge in the provider, payer, physician
management and life sciences markets. First quarter 2013 segment operating
profit increased 37.8% compared to first quarter 2012 due to a combination of
RBR growth and effective cost controls.

First quarter Energy RBR increased 16.6% over first quarter 2012 and segment
operating profit increased 21.3% for the same period. A newly found abundance
of economically recoverable domestic shale gas reserves, in combination with
increased environmental pressures and uncertainty of regulatory outcomes,
drives demand for Navigant’s expertise. The RBR increase was also associated
with growth in subscription-based and research services.

FRCA first quarter 2013 RBR increased 12.2% over first quarter 2012
principally reflecting large mortgage servicing review engagements which
ramped up during 2012. Three of these engagements were substantially completed
late in first quarter 2013 while a fourth is expected to wind down during the
second half of the year. Demand for restructuring services declined in first
quarter 2013 compared to the same prior year period, reflecting a soft market
generally for restructuring work as the economic environment continued to
improve.

RBR in DI&E declined 15.6% for first quarter 2013 compared to the same period
of 2012. Approximately 40% of the year-over-year decrease was associated with
the portion of the Economics practice that was divested during the quarter.
The decrease was also due to a large investigations engagement which peaked in
first quarter 2012. There was no engagement of a comparable size in first
quarter 2013. DI&E segment operating profit for first quarter 2013 decreased
when compared to prior year, principally due to the lower RBR partly offset by
lower compensation costs reflecting reduced headcount. The gain on disposition
of $1.7 million did not impact segment operating profit but was included in
other operating costs or benefits.

Debt and Cash Flow

Free cash flow was $21.8 million for first quarter 2013, an increase of 66%
compared to first quarter 2012, and excluded $15.6 million which was received
from the divesture of a portion of the Economics practice.

Debt at March 31, 2013 was down $22.4 million or 12% from year earlier levels,
reflecting strong cash flow. Leverage (Bank Debt divided by annual Adjusted
EBITDA) improved to 1.44 at March 31, 2013 compared to 1.78 a year ago. The
Company had approximately $205 million in additional borrowings available
under its credit facility.

Share Repurchase Activity

Navigant used $6.2 million to repurchase 513,200 shares of common stock during
first quarter 2013, at an average cost of $12.07 per share. This compares to
232,006 shares of common stock repurchased during first quarter 2012.

2013 Outlook

Navigant reaffirmed its 2013 outlook. Full year 2013 RBR is expected to range
between $740 and $800 million while total 2013 revenues are estimated to be
between $820 and $880 million. Adjusted EBITDA is anticipated to range between
$115 and $125 million, and Adjusted EPS is estimated to be between $0.95 and
$1.10.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by
the Securities and Exchange Commission. 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) are included in the financial schedules attached to this
press release. 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 financial
measures in addition to GAAP financial measures to assess the Company's
operations and financial results and believes they are useful indicators of
operating performance and the Company's ability to generate cash flows from
operations that are available for interest, debt service, taxes and capital
expenditures.

Conference Call Details

Julie Howard will host a conference call to discuss the Company’s first
quarter 2013 results at 10:00 a.m. Eastern Time on Thursday, April 25, 2013.
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. A report of financial
and related supplemental information is available at
www.navigant.com/investor_relations.

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 and
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 management’s 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 Company’s
organizational changes and margin improvement initiatives; risks inherent in
international operations, including foreign currency fluctuations; ability to
make acquisitions and divestitures; pace, timing and integration of
acquisitions and separation of divestitures; 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 or large engagements; 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 Company’s financial results are included under the “Risk
Factors” section and elsewhere in the Company’s filings with the Securities
and Exchange Commission (SEC), which are available on the SEC’s 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.

NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
                                                                
                                                     For the quarter ended
                                                     March 31,
                                                     2013         2012
Revenues:
Revenues before reimbursements                       $ 187,257     $ 186,380
Reimbursements                                        27,516     20,241  
Total revenues                                         214,773       206,621
Costs of services:
Cost of services before reimbursable expenses          126,364       123,960
Reimbursable expenses                                 27,516     20,241  
Total costs of services                                153,880       144,201
General and administrative expenses                    32,483        35,557
Depreciation expense                                   3,730         3,516
Amortization expense                                   1,698         1,725
Other operating costs (benefit):
Office consolidation                                   208           -
Gain on disposition of assets                         (1,715  )   -       
Operating income                                       24,489        21,622
Interest expense                                       1,225         1,463
Interest income                                        (163    )     (238    )
Other (income) expense, net                           (148    )   105     
Income before income tax expense                       23,575        20,292
Income tax expense                                    9,777      8,650   
Net income                                           $ 13,798    $ 11,642  
                                                                   
                                                                   
Basic net income per share                           $ 0.27        $ 0.23
                                                                             
Shares used in computing net income per basic          50,295        51,032
share
                                                                   
Diluted net income per share                         $ 0.27        $ 0.22
                                                                             
Shares used in computing net income per diluted        51,360        51,797
share

                                                         
NAVIGANT CONSULTING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AND SELECTED DATA
(In thousands, except DSO data)
                                                            
                                             March 31,      December 31,
                                             2013          2012
                                             (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                    $ 2,939        $ 1,052
Accounts receivable, net                       205,827        198,709
Prepaid expenses and other current assets      25,685         25,054
Deferred income tax assets                    12,533      17,821   
Total current assets                           246,984        242,636
Non-current assets:
Property and equipment, net                    43,414         45,342
Intangible assets, net                         14,252         16,123
Goodwill                                       607,143        619,932
Other assets                                  29,385      30,417   
Total assets                                 $ 941,178    $ 954,450  
                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                             $ 18,019       $ 18,042
Accrued liabilities                            10,980         11,557
Accrued compensation-related costs             39,958         84,813
Income tax payable                             1,475          7,129
Other current liabilities                     37,860      35,754   
Total current liabilities                      108,292        157,295
Non-current liabilities:
Deferred income tax liabilities                69,766         67,623
Other non-current liabilities                  34,071         35,606
Bank debt non-current                         164,656     134,183  
Total non-current liabilities                 268,493     237,412  
Total liabilities                             376,785     394,707  
Stockholders' equity:
Common stock                                   62             62
Additional paid-in capital                     586,515        582,363
Treasury stock                                 (224,477 )     (216,500 )
Retained earnings                              216,340        202,542
Accumulated other comprehensive loss          (14,047  )   (8,724   )
Total stockholders' equity                    564,393     559,743  
Total liabilities and stockholders' equity   $ 941,178    $ 954,450  
                                                            
Selected Data
Days sales outstanding, net (DSO)            77          72       


NAVIGANT CONSULTING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                                 
                                                                   
                                                    For the quarter ended
                                                    March 31,
                                                    2013          2012
                                                                   
Cash flows from operating activities:
Net income                                          $ 13,798       $ 11,642
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation expense                                  3,730          3,516
Accelerated depreciation - office consolidation       208            -
Amortization expense                                  1,698          1,725
Share-based compensation expense                      2,545          2,331
Accretion of interest expense                         219            140
Deferred income taxes                                 7,022          4,775
Allowance for doubtful accounts receivable            255            1,160
Gain on disposition of assets                         (1,715   )     -
Changes in assets and liabilities (net of
acquisitions and dispositions):
Accounts receivable, net                              (16,944  )     (17,730 )
Prepaid expenses and other assets                     1,470          1,395
Accounts payable                                      70             (1,361  )
Accrued liabilities                                   (1,373   )     1,098
Accrued compensation-related costs                    (42,072  )     (50,826 )
Income taxes payable                                  (5,544   )     (448    )
Other liabilities                                    4,713       (507    )
                                                                   
Net cash used in operating activities                 (31,920  )     (43,090 )
                                                                   
Cash flows from investing activities:
Purchases of property and equipment                   (3,680   )     (7,826  )
Proceeds from disposition, net of selling costs       15,607         -
Payments of acquisition liabilities                   -              (750    )
Other, net                                           (1,368   )   (612    )
                                                                   
Net cash provided by (used in) investing              10,559         (9,188  )
activities
                                                                   
Cash flows from financing activities:
Issuances of common stock                             1,071          1,066
Repurchase of common stock                            (6,194   )     (3,032  )
Payments of contingent acquisition liabilities        (2,000   )     (2,435  )
Repayments to banks                                   (102,680 )     (53,998 )
Borrowings from banks                                 134,114        108,823
Other, net                                           (945     )   (1,111  )
Net cash provided by financing activities            23,366      49,313  
                                                                   
Effect of exchange rate changes on cash and cash     (118     )   70      
equivalents
Net increase (decrease) in cash and cash              1,887          (2,895  )
equivalents
Cash and cash equivalents at beginning of the        1,052       2,969   
period
Cash and cash equivalents at end of the period      $ 2,939      $ 74      


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 Company's operations and financial
results and believes they are useful indicators of operating performance and
the Company's 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 (benefit). 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 (benefit). Severance expense and other operating costs
(benefit) 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 Company's 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 doubtful accounts
receivable less cash payments for property 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 flows available for on-going business
operations and long term value creation.

Leverage Ratio
Leverage ratio is calculated as bank debt at the end of the period divided by
adjusted EBITDA for the prior twelve-month period. Management believes that
leverage ratio provides investors with an indicator of the cash flows
available to repay the Company's debt obligations.
                                                          
EBITDA, adjusted EBITDA,       For the quarter ended
adjusted Net Income and
adjusted Earnings Per          March 31,
Share
                               2013                      2012
Severance expense              $     1,442                $    816
Income tax benefit (1)              (427       )            (298       )
Net income impact of           $     1,015              $    518        
severance expense
                                                          
Other operating costs -
accelerated depreciation       $     208                  $    -
- office consolidation
Income tax benefit (1)              (84        )            -          
Net income impact of
other operating costs -        $     124                $    -          
accelerated depreciation
- office consolidation
                                                          
Other operating benefit
- gain on disposition of       $     (1,715     )         $    -
assets
Income tax expense (1)              692                    -          
Net income impact of
other operating benefit        $     (1,023     )        $    -          
- gain on disposition of
assets
                                                          
EBITDA reconciliation:
Operating income               $     24,489               $    21,622
Depreciation expense                 3,730                     3,516
Accelerated depreciation             208                       -
- office consolidation
Amortization expense                1,698                  1,725      
EBITDA                         $     30,125               $    26,863
Severance expense                    1,442                     816
Other operating benefit
- gain on disposition of            (1,715     )            -          
assets
Adjusted EBITDA                $     29,852             $    27,679     
                                                          
                                                          
                                                          
Net income                     $     13,798               $    11,642
Net income impact of                 1,015                     518
severance expense
Net income impact of
other operating costs -              124                       -
accelerated depreciation
- office consolidation
Net income impact of
other operating benefit             (1,023     )            -          
- gain on disposition of
assets
Adjusted net income            $     13,914             $    12,160     
Shares used in computing
net income per diluted               51,360                    51,797
share
Adjusted earnings per          $     0.27               $    0.23       
share
                                                          
(1) Effective income tax
expense (benefit) has
been determined based on
specific tax
jurisdiction.
                                                          
                               For the quarter ended
Free Cash Flow                 March 31,
                               2013                      2012
Net cash used in               $     (31,920    )         $    (43,090    )
operating activities
Changes in assets and                59,680                    68,379
liabilities
Allowance for doubtful               (255       )              (1,160     )
accounts receivable
Purchases of property                (3,680     )              (7,826     )
and equipment
Payments of acquisition              -                         (750       )
liabilities
Payments of contingent              (2,000     )            (2,435     )
acquisition liabilities
Free Cash Flow                 $     21,825             $    13,118     
                                                          
                                                          
                                                          
Leverage Ratio                 March 31,
                               2013                      2012
Adjusted EBITDA for
prior twelve-month             $     114,339              $    105,240
period
Bank debt                      $     164,656              $    187,030
Leverage ratio                       1.44                      1.78

Contact:

Navigant
Paul Longhini
Investor Relations
312.583.5836
plonghini@navigant.com