Navigant Consulting Inc. ( NCI ) reported strong
fourth-quarter 2012 results with net income of $13.5 million or 26
cents per share compared with $11.1 million or 21 cents in the
year-earlier quarter. Excluding one-time items, adjusted earnings
per share came in at 31 cents versus 22 cents in the year-ago
quarter, representing a 40.9% year-over-year increase. Adjusted
earnings for the reported quarter exceeded the Zacks Consensus
Estimate by 7 cents.
For full year 2012, the company reported net income of $46.2
million or 90 cents per share compared to $41.1 million or 80 cents
in the previous year. Excluding one-time items, adjusted earnings
per share for 2012 stood at 98 cents compared to 84 cents in the
preceding year.
Navigant's total revenue grew 14.4% year over year to $225.4
million in the reported quarter. Revenues before reimbursements
(RBR) climbed 13.7% year over year to $194.3 million with healthy
revenue growth across all business segments. Consultant utilization
rate in the quarter was 75% versus 74% in the year-ago
period.
For full year 2012, total revenue increased 7.6% year over year to
$844.6 million, while RBR climbed 6.9% to $743.4 million. However,
consultant utilization rate for the year dipped 2.6% to 75%.
Segment Performance
The Healthcare segment's revenue rose 18.8% year
over year to $47.4 million in fourth quarter 2012, driven by strong
demand in the field of healthcare as well as life science
practices. The Energy segment revenue grew 12.2%
to $29.3 million, aided by increased energy efficient engagements
and rise in market research and subscription offerings.
Disputes, Investigations & Economics segment
revenue increased 1.2% year over year to $91.5 million on higher
utilization in the Economics business, improved performance in
Europe and margin improvement initiatives.
Financial, Risk & Compliance Advisory
registered a year-over-year rise of 40.7% to $57.2 million in the
reported quarter, propelled by several large mortgage servicing
review engagements.
Liquidity
At year-end 2012, Navigant had $1.1 million of cash and cash
equivalents compared to $3.0 million in the year-ago period.
Long-term debt at the end of the year stood at $134 million. The
company repurchased 582,000 shares during fourth quarter 2012 at an
average price of $10.66 per share, bringing its tally for the year
to 1.6 million shares.
Outlook
For full year 2013, Navigant expects total revenue to be in the
range of $820 million to $880 million with solid growth in
Healthcare and Energy segments. Adjusted earnings per share are
expected in the range of 95 cents to $1.10.
We remain encouraged by the healthy earnings projection of
Navigant, which competes with the industry giants such as
CoreLogic, Inc. ( CLGX ), CRA
International Inc. ( CRAI ), and
Corporate Executive Board Co. ( CEB ), each carrying a
Zacks Rank #1 (Strong Buy). Navigant also currently retains a Zacks
Rank #1.
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