Management services provider
Navigant Consulting Inc.
) reported strong first quarter 2013 results with a net income of
$13.8 million or 27 cents per share compared with $11.6 million
or 22 cents in the year-earlier quarter. Earnings per share for
the reported quarter increased 23% year over year and also
exceeded the Zacks Consensus Estimate by 3 cents.
Total revenue was up 3.9% year over year to $214.8 million, while
revenues before reimbursements (RBR) marginally increased to
$187.3 million. EBITDA (earnings before interest, tax,
depreciation and amortization) for the reported quarter rose
11.9% to $30.1 million from $26.9 million in the year-ago
quarter. Adjusted EBITDA was up 8% year over year to $29.9
million, due to increased operating profit from three segments
and a 9% reduction in general and administrative expenses,
partially offset by a decline in operating profit from the
Disputes, Investigations & Economics segment.
segment's revenues rose 20.2% year over year to $49.2 million in
first quarter 2013, driven by strong demand in the field of
healthcare as well as life science practices. The
segment revenues grew 19.1% to $29.5 million, aided by increased
energy-efficient engagements, a newly found large reserve for
economically viable domestic shale gas, rise in environmental
pressures and uncertainty of regulatory outcomes.
Disputes, Investigations & Economics
segment revenues decreased 14.0% year over year to $83.5 million,
primarily due to the divestiture of the Economics business.
Financial, Risk & Compliance Advisory
segment registered a 20.0% year-over-year rise in revenues to
$52.6 million, propelled by several large mortgage servicing
At quarter-end, Navigant had $2.9 million in cash and cash
equivalents. Free cash flow increased 66% year over year to $21.8
million (excluding $15.6 million received from the divesture of a
portion of the Economics practice), while long-term debt was down
$22.4 million or 12% from year-earlier levels. In addition,
Navigant had approximately $205 million available under its
The company repurchased 513,200 shares during first quarter 2013
for $6.2 million at an average price of $12.07 per share.
For full year 2013, Navigant reiterated its earlier guidance of
total revenue in the range of $820 million to $880 million.
Adjusted earnings per share are expected in the range of 95 cents
We remain encouraged by the healthy earnings projection of
Navigant, which currently retains a Zacks Rank #2 (Buy). Other
players in the industry include
Franklin Covey Co.
Huron Consulting Group Inc.
), each carrying a Zacks Rank #2 (Buy).
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