• Revenue before reimbursements (RBR) for fourth quarter 2009 totaled $153 million compared to $174 million in fourth quarter 2008 and $159 million in third quarter 2009. For the full year 2009 RBR totaled $637 million, down 12% from $727 million in 2008.
• Adjusted earnings per share (adjusted to exclude the net income impact from severance and other operating costs) was $0.18 in fourth quarter 2009 compared to $0.25 for fourth quarter 2008. GAAP earnings per share totaled $0.10 in fourth quarter 2009 compared to $0.23 in fourth quarter 2008.
• Utilization remained solid throughout fourth quarter 2009 and averaged 76%, consistent with third quarter 2009 and compared to 77% in fourth quarter 2008.
• Average bill rate for fourth quarter 2009 was $260, up slightly from $257 in fourth quarter 2008 and $255 in third quarter 2009.
• Cost reduction efforts initiated in early 2009 exceeded original savings estimates and debt, net of cash, at December 31, 2009 declined almost $40 million from December 31, 2008.

Navigant Consulting, Inc. (NYSE:NCI), a global consulting firm providing dispute, investigative, operational, risk management and financial and regulatory advisory solutions, today announced financial results for the fourth quarter and full year ended December 31, 2009.

"Navigant delivered solid fourth quarter operating and financial results that were in line with our expectations," stated William M. Goodyear, Chairman and Chief Executive Officer. "The gradual improvement that we began to see in the third quarter continued through year end across the majority of our practices. Despite the challenging economic environment of 2009, we successfully intensified our client focus, realigned our cost structure, posted improved operating results as the year progressed, and finished the year with excellent liquidity. As importantly, we identified disputes, economics, healthcare and energy as key areas for long term growth and subsequently sharpened our investment focus within these practices."

Fourth Quarter and Full Year 2009 Results

The Company's fourth quarter and full year 2009 results are summarized as follows:

(1) See the attached financial schedules for a reconciliation of EBITDA, Adjusted EBITDA and Adjusted Earnings per Share, excluding the net income impact of severance and other operating costs, to the closest GAAP measure.

Navigant's fourth quarter 2009 RBR totaled $153 million, down from $174 million in the fourth quarter of 2008 and from $159 million in the third quarter 2009. Utilization remained a steady 76% while average bill rate increased to $260 for the quarter. Navigant's average billable full time equivalent (FTE) headcount was 1,685, down 13% from fourth quarter 2008, reflecting actions taken to realign staffing levels with reduced demand as a result of the recessionary environment.

For the full year, the Company's 2009 RBR decreased 12% as discretionary spending declined in industries such as financial services and insurance, and a slow down occurred in general litigation and investigations. Navigant's redeployment of several non strategic service lines following the Company's strategic review also impacted 2009 revenue in the second half of the year. Adverse currency movements affected year over year comparisons by approximately $14 million. However, aggressive cost management efforts, including staffing reductions made throughout the year, enabled the Company to stabilize margins. 2009 severance expense totaled $4.3 million in the fourth quarter and $10.2 million in the full year 2009, compared to $1.1 million and $4.3 million in the respective periods for 2008. General and administrative expenses decreased 17% to $129 million in 2009, while cost of services (excluding reimbursables) decreased 6% to $417 million in 2009. Bad debt expense declined sharply in the fourth quarter due to strong year end collections, falling to $0.8 million from $3.1 million in fourth quarter 2008. Full year 2009 bad debt expense declined approximately $5 million from 2008 levels.

Business Segment Highlights

Fourth quarter and full year 2009 financial results for the Company's four business segments are summarized as follows:

(2) For further details see the Q4 2009 Metrics Summary posted at www.navigantconsulting.com/investor_relations.

The Company's Dispute and Investigative Services segment reported RBR of $63 million for fourth quarter 2009, a decline of 4% from third quarter 2009, and 12% below fourth quarter 2008 levels. Average billable FTEs for the segment were 663 for fourth quarter 2009 compared to 779 for fourth quarter 2008. While segment results for the year reflected market softness, there are encouraging signs that demand is strengthening and that uncertainty in the Company's legal, economic and regulatory channels may be abating. The precise timing of market improvements remains undefined as general litigation makes its way through the investigative and dispute process.

Navigant's Business Consulting Services segment achieved RBR of $63 million for fourth quarter 2009, down slightly from third quarter 2009, and down 16% from fourth quarter 2008. Average billable FTEs for the segment were 723 for fourth quarter 2009, down 148 from fourth quarter 2008. Opportunities associated with healthcare reform continue to drive demand as the industry seeks expertise to improve profitability and address increasing regulatory pressures regarding compliance. Additionally, the energy practice continues to benefit from demand for services related to energy efficiency, Smart Grid and renewable energy. Lastly, Navigant's restructuring and valuations teams had strong year end performances and continued to favorably impact segment results.

RBR for Navigant's International Consulting Operations segment held steady at $16 million for fourth quarter 2009 compared to third quarter 2009, and improved 13% from fourth quarter 2008. A slightly favorable exchange rate impacted fourth quarter comparisons, as did ongoing solid momentum in the international financial services and construction disputes arenas. Segment operating profit declined to 15% in the fourth quarter primarily due to high severance charges for the period. Overall, the broader international disputes environment showed indications of improvement as more parties began to actively pursue formal disputes.

The Company's Economic Consulting Services segment reported RBR of $11 million for fourth quarter 2009, a decline of 17% from third quarter 2009 and 19% below fourth quarter 2008 levels. Full year 2009 RBR was $51 million compared to partial year RBR of $36 million in 2008 (the Economic Consulting Services segment was formed in May 2008 with the acquisition of Chicago Partners). Fourth quarter 2009 declines were the result of the wind down of several large ongoing matters in concert with delays experienced in the initiation of new projects. Consistent with the gradually improving disputes environment, several new cases have resulted in a growing pipeline at the beginning of 2010.

A Company metrics summary including data by segment is available at www.navigantconsulting.com/investor_relations.

Acquisitions of Summit Blue Consulting and Empiris, LLC

On January 11, 2010 Navigant announced the acquisition of Summit Blue Consulting, a Boulder, Colorado based energy industry consulting firm specializing in energy efficiency, demand-side management, Smart Grid, and renewable energy. Additionally, on January 25, 2010 Navigant announced the acquisition of Empiris, LLC, a leading Washington, D.C. based economics consulting firm. "The Summit Blue and Empiris teams make outstanding additions to Navigant's existing portfolio of energy and economics services and clearly support the execution of our strategic plans," stated Mr. Goodyear.

2010 Outlook

"We certainly enter 2010 with more confidence than we felt one year ago," stated Mr. Goodyear. "But we must acknowledge that the economy and the markets remain under significant stress. While we were not satisfied with our financial performance in 2009, we took the actions needed to preserve an acceptable level of profitability while maintaining the key capabilities of the firm. We moved from defense to offense during the latter part of 2009 and expect those efforts to increasingly be reflected in our results as 2010 and 2011 progress. We expect to grow EPS and EBITDA in 2010, we are well positioned to serve priority markets, and we have the financial flexibility to pursue our growth initiatives."

Fourth Quarter and Full Year 2009 Earnings Conference Call

Mr. Goodyear will host a conference call to discuss the Company's 2009 financial results and 2010 outlook at 10:00 a.m. Eastern Time on Thursday, February 18, 2010. The web cast may be accessed at www.navigantconsulting.com/investor_relations. A replay of the web cast will be available for approximately 60 days.

About Navigant Consulting

Navigant Consulting, Inc. (NYSE: NCI) is a global consulting firm providing dispute, investigative, operational, risk management and financial and regulatory advisory solutions to government agencies, legal counsel and large companies facing the challenges of uncertainty, risk, distress and significant change. The Company focuses on industries undergoing substantial regulatory or structural change and on the issues driving these transformations. "Navigant" is a service mark of Navigant International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc. and NCI's use of "Navigant" is made under license from Navigant International, Inc. More information about Navigant Consulting can be found at www.navigantconsulting.com.

Except as set forth below, statements included in this press release which are not historical in natureare forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995.Forward-looking statements may be identified by words including "goals," "anticipates," "believes," "intends," "estimates," "expects" and similar expressions.These statements are based upon management's current expectations as of the date of this press release.The Companycautions 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 indicated in the forward-looking statements including, without limitation: the success and timing of the Company's strategy implementation following its strategic business assessment; the success of the Company's organizational changes and cost reduction actions; risks inherent in international operations including foreign currency fluctuations; ability to make acquisitions; pace, timing and integration of acquisitions; impairment charges; management of professional staff, including dependence on key personnel, recruiting, attrition and the ability to successfully integrate new consultants into the Company's practices; utilization rates; conflicts of interest; potential loss of clients; clients' financial condition and their ability to make payments to the Company; risks inherent with litigation; higher risk client assignments; professional liability; potential legislative and regulatory changes; continued access to capital; and general economic conditions.Further information on these and other potential factors that could affect the Company's financial results are included in the Company's filings with the SEC under the "Risk Factors" section and elsewhere in those filings.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 after the date of this press release.

SOURCE: Navigant Consulting, Inc.

Navigant Consulting, Inc.
Jennifer Moreno
Executive Director, Investor Relations
312.573.5634
jmoreno@navigantconsulting.com