Navigant reports first quarter 2017 financial results
Chicago--(business wire)--navigant (nyse: nci) today announced financial results for the first quarter ended march 31, 2017. financial summary and highlights: first quarter 2017 revenues before reimbursements (rbr) of $236.2 million increased 6%, with 4% organic growth, compared to first quarter 2016 first quarter 2017 total revenues of $257.8 million increased 5% compared to first quarter 2016 first quarter 2017 net income was $11.1 million, or $0.23 per share, compared to $12.6 million, or $0.26 per share, for first quarter 2016 first quarter 2017 adjusted earnings per share (eps) of $0.27 was flat compared to first quarter 2016 refinanced $400 million revolving credit facility extending maturity date to march 2022 under favorable terms extended share repurchase authorization through dec. 31, 2019 with an approved limit of $100 million reiterated 2017 outlook “during the quarter, navigant continued to achieve organic growth following a very strong 2016. as anticipated, contributions from our segments varied specific to client and industry demands in the face of an uncertain regulatory environment in some of our core industry sectors,” said julie howard, navigant chairman and ceo. “looking ahead, we are focused on the consistent execution of our growth strategy. with our diverse portfolio of service offerings and our disciplined management approach, we remain confident in our ability to deliver on our financial and operating goals for 2017.” navigant reported first quarter 2017 rbr of $236.2 million, a 6% increase (4% organic growth), compared to $223.5 million for first quarter 2016. total revenues increased 5% to $257.8 million for first quarter 2017 compared to $245.3 million for first quarter 2016. net income for first quarter 2017 was $11.1 million, or $0.23 per share, compared to $12.6 million, or $0.26 per share, in the prior year first quarter. adjusted eps was $0.27 for first quarter 2017, flat compared to first quarter 2016. first quarter 2017 adjusted ebitda was $31.5 million, a 3% increase, compared to $30.6 million for the same period in 2016. segment financial summary for the quarter ended march 31, healthcare segment rbr increased 11% for first quarter 2017 compared to the respective period in 2016, mostly on an organic basis. growth was driven by continued demand from providers for large, strategy-led transformation projects, in addition to demand from life sciences companies for commercialization solutions. segment operating profit was up 16% in first quarter 2017 compared to the respective period of 2016. energy segment rbr increased 21% for first quarter 2017 on a year-over-year basis, led by contributions from the ecofys acquisition announced in november 2016. segment operating profit was up 32% in first quarter 2017 compared to first quarter 2016. financial services advisory and compliance segment rbr for first quarter 2017 decreased 2% compared to the prior year quarter, primarily driven by the conclusion of some engagements and lighter-than-normal volume in compliance and controls services for some of our core financial institution clients. segment operating profit was down 14% in first quarter 2017 compared to the respective period of 2016. disputes, forensics & legal technology first quarter 2017 segment rbr decreased 1% year-over-year (flat on a foreign currency neutral basis), which is relatively stable compared to prior quarter results. the segment experienced continued demand for our global expertise in complex industrial, infrastructure and commercial project matters, an increase in the volume of legal technology engagements, and an increase in performance-based fees associated with mass tort claims. segment operating profit was down 8% in first quarter 2017 compared to the respective period of 2016. cash flow net cash used in operating activities for first quarter 2017 was $23.0 million compared to $26.6 million for first quarter 2016. free cash flow decreased to $13.3 million for first quarter 2017 compared to $21.0 million for the same period in 2016, primarily driven by increased capital expenditures due to the relocation of our chicago headquarters. days sales outstanding was 86 days as of march 31, 2017, up eight days compared to march 31, 2016. bank debt was $178.3 million at march 31, 2017, compared to $211.5 million at march 31, 2016 and $135.0 million at dec. 31, 2016. leverage (bank debt divided by trailing twelve month adjusted ebitda) was 1.25 at march 31, 2017, compared to 1.72 at march 31, 2016 and 0.95 at dec. 31, 2016. the increase in the debt leverage as of march 31, 2017 compared to the previous quarter was driven by 2016 annual incentive compensation payments. also, during the quarter, navigant entered into a new credit agreement, refinancing its $400-million revolving credit facility and extending the maturity date of the facility to march 2022. navigant repurchased 207,298 shares of common stock during first quarter 2017 at an aggregate cost of $5.0 million and an average cost of $23.93 per share. effective may 1, 2017, our board of directors increased the amount available under the company’s stock repurchase authorization to $100 million and extended the authorization through dec. 31, 2019. 2017 outlook navigant reiterated its 2017 financial outlook. as previously disclosed, full year 2017 rbr is expected to range between $975 million and $1.010 billion while 2017 total revenues are estimated to be between $1.075 billion and $1.115 billion. adjusted ebitda for the full year 2017 is expected to range between $145 and $156 million and adjusted eps for the full year 2017 is estimated to be between $1.29 and $1.36. 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. no reconciliation of navigant’s 2017 adjusted ebitda guidance and 2017 adjusted eps guidance, both of which exclude the impact and tax-effected impact of severance expense and other operating costs (benefit), respectively, is included in the financial schedules attached to this press release. navigant is not able to accurately forecast the excluded items at the level of precision that would be required to be included in the most directly comparable gaap financial measure without unreasonable efforts. conference call details navigant will host a conference call to discuss the company’s first quarter 2017 results at 10 a.m. eastern time (9 a.m. central time) on wednesday, may 3, 2017. the conference call may be accessed via the navigant website (investors.navigant.com) or by dialing 888.455.9733 (630.395.0358 for international callers) and referencing pass code “nci.” an archived version of the webcast will also be available via the navigant website. a report of financial and related supplemental information is also available via the navigant website. about navigant navigant consulting, inc. (nyse: nci) is a specialized, global professional services firm that helps clients take control of their future. navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage, and/or protect their business interests. with a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the firm primarily serves clients in the healthcare, energy, and financial services industries. across a range of advisory, consulting, outsourcing, and technology/analytics services, navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. more information about navigant can be found at navigant.com. statements included in this press release which are not historical in nature are forward-looking statements as defined in the private securities litigation reform act of 1995. forward-looking statements may generally be identified by words such as “anticipate,” “believe,” “may,” “could,” “intend,” “estimate,” “expect,” “plan,” “outlook” 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 execution of the company’s long-term growth objectives 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; operational risks associated with new or expanded service areas, including business process management services; impairments; changes in accounting standards or tax rates, laws or regulations; management of professional staff, including dependence on key personnel, recruiting, retention, 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 and the company’s ability to attract new business; brand equity; competition; accurate pricing of engagements, particularly fixed fee and multi-year engagements; clients’ financial condition and their ability to make payments to the company; risks inherent with litigation; higher risk client assignments; government contracting; professional liability; information security; the adequacy of our business, financial and information systems and technology; maintenance of effective internal controls; potential legislative and regulatory changes; continued and sufficient access to capital; compliance with covenants in our credit agreement; interest rate risk; and market and general economic and political conditions. further information on these and other potential factors that could affect the company’s financial results are included under the “risk factors” section of the company’s annual report on form 10-k for the year ended december 31, 2016, and elsewhere in the company’s filings with the securities and exchange commission (sec), which are available on the sec’s website or at investors.navigant.com. 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. selected data (unaudited) ebitda, adjusted ebitda, adjusted net income and adjusted earnings per share (2) for the quarter ended march 31, free cash flow (4) leverage ratio (5) organic growth (6)
