Wednesday, Navigant Consulting, Inc. (NCI) reported a significant decline in profit for the second quarter, reflecting lower revenues impacted by the prevailing economic environment and charges related to office consolidation.
Net income for the second quarter declined 66.7% to $3.38 million or $0.07 per share from $9.99 million or $0.21 per share in the previous year.
On an adjusted basis, net income for the quarter was $6.14 million or $0.12 per share, compared to $11.52 million or $0.24 per share a year ago. Adjusted results for the quarter include office consolidation costs of $4.6 million and severance costs of $1.3 million.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 17.9% to $173.56 million from $211.41 million last year. Analysts expected the company to report revenues of $183.21 million for the second quarter.
Segment wise, revenue from North American Dispute and Investigative Services declined to $65.81 million from $79.30 million. Revenue from North American Business Consulting Services declined to $69.36 million from $92.04 million. International Consulting Operations revenue declined to $17.82 million from $23.10 million. Revenue from Economic Consulting Services increased to $13.26 million from $7.35 million a year ago.
Earnings before interest, taxes, depreciation and amortization for the quarter was $17.63 million, compared to $32.51 million last year.
For the six-month period, net income declined to $8.82 million or $0.18 per share from $20.89 million or $0.44 per share in the same period of the previous year. Total revenues for the period declined to $355.92 million from $418.55 million last year.
Looking forward, the company adjusted its prior guidance and now expects annual revenues before reimbursements between $630 and $670 million, with total revenues between $690 and $730 million. Previously, the company gave a revenue estimate for the full year in the range of $750 million and $825 million.
Based on the revenue level and the second half impacts from updated cost reduction actions, earnings per share, adjusted to exclude the net income impact of severance and other operating costs, is now estimated to be between $0.60 and $0.70 per share. Previously, earnings per share were estimated to be between $0.85 and $1.00 for the fiscal 2009.
Analysts are expecting the company to report earnings of $0.86 per share on revenues of $754.60 million for fiscal 2009.
NCI is currently trading at $12.30, down 11.31% on the NYSE.
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