Navigant (NYSE:NCI) today announced financial results for the second quarter ended June 30, 2013.
Navigant reported second quarter 2013 revenues before reimbursements (RBR) of $189.7 million, compared to $181.5 million for second quarter 2012, a 5% increase. RBR growth for the quarter was led by especially strong results from the Healthcare segment, with a 30% increase in RBR, and a 12% increase in RBR from the Energy segment. Total revenues were $213.1 million for the second quarter 2013, compared to $204.6 million for second quarter 2012, an increase of 4%.
Adjusted EBITDA of $34.1 million for second quarter 2013 rose 40% compared to $24.4 million for second quarter 2012, with Adjusted EBITDA margin (Adjusted EBITDA as a percentage of RBR) at 18% for second quarter 2013, compared to 13% for the same period in 2012. The improvement in margin was due to a 9% increase in segment operating profit and a 9% reduction in general and administrative expenses. The decrease in general and administrative expenses was due to reduced information technology costs, lower bad debt expense and lower facilities costs.
Net income for second quarter 2013 was $14.0 million, compared to $9.6 million in the prior year quarter, an increase of 46%. Effective income tax rate was 43% for second quarter 2013 compared to 41% for second quarter 2012.Earnings per share (EPS) were $0.27 for second quarter 2013, compared to $0.18 for second quarter 2012, a 50% increase. Adjusted EPS were $0.31 for second quarter 2013, compared to $0.21 for second quarter 2012, an increase of 48%. “We realized growth in revenues and a significant increase in profitability while making additional progress on our long-term strategic objectives in the period,” commented Julie Howard, Chief Executive Officer. “Healthcare and Energy, which represent higher growth markets, performed well, and the Financial, Risk & Compliance segment exceeded our expectations on the strength of the diversity of our offerings and our ability to quickly identify and transition resources to new work. Moving forward, we will continue to pursue opportunities that solidify Navigant’s leadership in the financial services, healthcare, and energy sectors while optimizing our portfolio for sustainable, profitable growth.”
Segment Financial Highlights
|For the quarter ended June 30,|
|Disputes, Investigations & Economics||$||76,352||$||81,350||-6.1||%|
|Financial, Risk & Compliance||42,738||42,800||-0.1||%|
|Total Revenues ($000)|
|Disputes, Investigations & Economics||$||82,828||$||86,894||-4.7||%|
|Financial, Risk & Compliance||50,376||52,847||-4.7||%|
|Segment Operating Profit ($000)|
|Disputes, Investigations & Economics||$||25,393||$||27,995||-9.3||%|
|Financial, Risk & Compliance||16,440||15,402||6.7||%|
|Segment Operating Margin (% of RBR)|
|Disputes, Investigations & Economics||33.3||%||34.4||%||-1.1||%|
|Financial, Risk & Compliance||38.5||%||36.0||%||2.5||%|