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Exhibit 99.1

 

 

LOGO

NAVIGANT REPORTS SECOND QUARTER 2016 FINANCIAL RESULTS

CHICAGO, July 26, 2016 – Navigant (NYSE: NCI) today announced financial results for the second quarter ended June 30, 2016.

Financial Summary and Highlights:

 

    Second quarter 2016 revenues before reimbursements (RBR) increased 13%, with 10% organic growth, over second quarter 2015

 

    Second quarter 2016 net income was $14.8 million, or $0.30 per share, compared to $7.8 million, or $0.16 per share, in second quarter 2015

 

    Second quarter 2016 adjusted earnings per share (EPS) of $0.33, up 27% compared to second quarter 2015

 

    Second quarter 2016 adjusted EBITDA of $37.2 million, up 23% over second quarter 2015

 

    Affirms 2016 financial outlook

Navigant reported second quarter 2016 RBR of $238.5 million, a 13% increase (10% organic growth), compared to $211.0 million for second quarter 2015. Total revenues increased 12% to $261.7 million for second quarter 2016 compared to $233.4 million for second quarter 2015. Net income for second quarter 2016 was $14.8 million, or $0.30 per share, compared to $7.8 million, or $0.16 per share, in the prior year second quarter. Adjusted EPS was $0.33 for second quarter 2016, up 27% compared to second quarter 2015. Second quarter 2016 adjusted EBITDA was $37.2 million, a 23% increase, compared to $30.1 million for the same period in 2015. Adjusted EBITDA margin (adjusted EBITDA as a percent of RBR) for second quarter 2016 increased to 15.6% compared to 14.3% in second quarter 2015.

“Navigant’s 2016 second quarter results reflected continued strong market demand for the breadth and depth of our expertise,” commented Julie Howard, Chairman and Chief Executive Officer. “The strength of our portfolio and our consistent execution drove double-digit revenue and earnings per share growth. The alignment of our professionals’ expertise to the issues facing the rapidly transforming industries Navigant serves gives me great optimism about the trajectory of our business results throughout the rest of the year.”


Segment Financial Summary

 

     For the quarter ended
June 30,
       
     2016     2015     Change  

RBR ($000)

      

Healthcare

   $ 89,876      $ 74,245        21.1

Energy

     29,295        26,153        12.0

Financial Services Advisory and Compliance

     39,994        29,509        35.5

Disputes, Forensics & Legal Technology

     79,320        81,116        -2.2
  

 

 

   

 

 

   

 

 

 

Total Company

   $ 238,485      $ 211,023        13.0
  

 

 

   

 

 

   

 

 

 

Total Revenues ($000)

      

Healthcare

   $ 98,386      $ 80,652        22.0

Energy

     32,855        30,833        6.6

Financial Services Advisory and Compliance

     45,360        34,439        31.7

Disputes, Forensics & Legal Technology

     85,082        87,515        -2.8
  

 

 

   

 

 

   

 

 

 

Total Company

   $ 261,683      $ 233,439        12.1
  

 

 

   

 

 

   

 

 

 

Segment Operating Profit ($000)

      

Healthcare

   $ 29,362      $ 24,726        18.7

Energy

     8,402        7,513        11.8

Financial Services Advisory and Compliance

     17,511        11,201        56.3

Disputes, Forensics & Legal Technology

     28,963        25,721        12.6
  

 

 

   

 

 

   

 

 

 

Total Company

   $ 84,238      $ 69,161        21.8
  

 

 

   

 

 

   

 

 

 

Segment Operating Margin (% of RBR)

      

Healthcare

     32.7     33.3  

Energy

     28.7     28.7  

Financial Services Advisory and Compliance

     43.8     38.0  

Disputes, Forensics & Legal Technology

     36.5     31.7  
  

 

 

   

 

 

   

Total Company

     35.3     32.8  
  

 

 

   

 

 

   

Second quarter 2016 RBR for the Healthcare segment increased 21% year-over-year, with more than half of that growth organic. Segment RBR for the quarter also increased 10% sequentially from first quarter 2016. The performance was driven by strong demand for large, strategy-led transformation projects and revenue cycle consulting engagements. Segment operating profit for second quarter 2016 was up 19% compared to the same period in 2015.

Energy segment RBR increased 12% for the second quarter 2016 compared to the equivalent period in 2015, all of which represented organic growth. RBR was also up 9% on a sequential basis from first quarter 2016. RBR growth for the quarter reflected strength across the segment’s portfolio of solutions, in addition to ongoing penetration of key client accounts. Second quarter 2016 segment operating profit was also up 12% compared to the same period in 2015.

 

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Financial Services Advisory and Compliance segment RBR for second quarter 2016 increased 36%, all on an organic basis, compared to the prior year second quarter. In addition, RBR was up 19% compared to first quarter 2016. Growth was driven primarily by continued demand for financial crimes expertise and an increase in compliance and controls engagements for major financial institutions. RBR growth and higher consultant utilization led to a robust 56% increase in second quarter 2016 segment operating profit year-over-year.

Disputes, Forensics & Legal Technology segment RBR decreased 2% for second quarter 2016 compared to both the second quarter 2015 and the first quarter 2016, primarily driven by declines in demand and increased competition for legal technology solutions. This decline was generally offset by strong demand for our global expertise in large infrastructure and construction dispute matters as well as increased regulatory, compliance and dispute demand within the healthcare and life sciences sectors. Despite a decline in RBR, segment operating profit was up 13% in second quarter 2016 compared to the respective period of 2015, reflecting actions to better align resources and the recognition of performance-based revenue associated with mass tort claims work.

Cash Flow

Second quarter 2016 net cash provided by operating activities was $34.2 million, compared to $29.1 million for second quarter 2015, as a result of improved earnings. Free cash flow increased to $24.4 million for second quarter 2016 compared to $11.6 million for the same period in 2015, primarily driven by a decrease in capital investment spending and acquisition-related payments. Days Sales Outstanding was 81 days as of June 30, 2016, up one day compared to June 30, 2015.

Bank debt was $189.8 million at June 30, 2016, compared to $171.4 million at June 30, 2015 and $211.5 million at March 31, 2016. Leverage (bank debt divided by trailing twelve month adjusted EBITDA) was 1.46 at June 30, 2016, compared to 1.37 at June 30, 2015 and 1.72 at March 31, 2016. The year-over-year increase was mainly due to additional borrowings to fund the McKinnis acquisition in December 2015.

Navigant repurchased 427,499 shares of common stock during second quarter 2016 at an aggregate cost of $6.8 million and an average cost of $15.81 per share. As of June 30, 2016, approximately $75.0 million remained available under the Company’s share repurchase authorization.

2016 Outlook

Our 2016 outlook for RBR, total revenues and adjusted EBITDA remains unchanged. Full year 2016 RBR is expected to range between $900 and $940 million while 2016 total revenues are estimated to be between $960 million and $1.01 billion. Adjusted EBITDA for full year 2016 is expected to range between $132 and $145 million. Adjusted EPS for full year 2016 is projected to be at the higher end of the range of $1.05 to $1.15.

 

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Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles (GAAP) are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

No reconciliation of Navigant’s 2016 adjusted EBITDA guidance and 2016 adjusted EPS guidance, both of which exclude the impact and tax-effected impact of severance expense and other operating costs (benefit), respectively, is included in the financial schedules attached to this press release. Navigant is not able to accurately forecast the excluded items at the level of precision that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.

Conference Call Details

Navigant will host a conference call to discuss the Company’s second quarter 2016 results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Tuesday, July 26, 2016. The conference call may be accessed via the Navigant website (www.navigant.com/investor_relations) or by dialing 888.455.9733 (630.395.0358 for international callers) and referencing pass code “NCI.” An archived version of the webcast will also be available via the Navigant website. A report of financial and related supplemental information is also available via the Navigant website.

About Navigant

Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on industries and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services markets. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.

Statements included in this press release which are not historical in nature are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by words such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “plan,” “outlook” and similar expressions. These statements are based upon management’s current expectations and speak only as of the date of this press release. The Company cautions 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

 

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number of risks that could cause actual results to differ materially from those contained in or implied by the forward-looking statements including, without limitation: the execution of the Company’s long-term growth objectives and margin improvement initiatives; risks inherent in international operations, including foreign currency fluctuations; ability to make acquisitions and divestitures; pace, timing and integration of acquisitions and separation of divestitures; operational risks associated with new or expanded service areas, including business process management services; impairments; changes in accounting standards; management of professional staff, including dependence on key personnel, recruiting, retention, attrition and the ability to successfully integrate new consultants into the Company’s practices; utilization rates; conflicts of interest; potential loss of clients or large engagements and the Company’s ability to attract new business; competition; accurate pricing of engagements, particularly fixed fee and multi-year engagements; clients’ financial condition and their ability to make payments to the Company; risks inherent with litigation; higher risk client assignments; professional liability; information security controls; potential legislative and regulatory changes; continued access to capital; and market and general economic and political conditions. Further information on these and other potential factors that could affect the Company’s financial results are included under the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and elsewhere in the Company’s filings with the Securities and Exchange Commission (SEC), which are available on the SEC’s website or at www.navigant.com/investor_relations. 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.

For additional information contact:

Aaron Miles

Navigant Investor Relations

312.583.5820

aaron.miles@navigant.com

Megan Maupin

Navigant Corporate Communications

312.583.5703

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5


NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data(1))

(Unaudited)

 

     For the quarter ended
June 30,
    For the six months ended
June 30,
 
     2016     2015     2016     2015  

Revenues:

        

Revenues before reimbursements

   $ 238,485      $ 211,023      $ 461,960      $ 412,179   

Reimbursements

     23,198        22,416        45,010        44,431   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     261,683        233,439        506,970        456,610   

Cost of services:

        

Cost of services before reimbursable expenses

     157,966        145,367        311,906        283,968   

Reimbursable expenses

     23,198        22,416        45,010        44,431   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of services

     181,164        167,783        356,916        328,399   

General and administrative expenses

     44,507        39,068        84,338        74,733   

Depreciation expense

     7,015        5,724        13,537        11,079   

Amortization expense

     2,891        2,297        5,812        4,566   

Other operating costs (benefit):

        

Contingent acquisition liability adjustments, net

     850        2,308        850        (12,625

Office consolidation, net

     174        1,804        174        2,740   

Other impairment

     —          98        —          98   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     25,082        14,357        45,343        47,620   

Interest expense

     1,429        1,238        2,689        2,970   

Interest income

     (36     (46     (75     (101

Other (income) expense, net

     (444     176        (784     (152
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax expense

     24,133        12,989        43,513        44,903   

Income tax expense

     9,356        5,162        16,094        11,933   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 14,777      $ 7,827      $ 27,419      $ 32,970   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic per share data

        

Net income

   $ 0.31      $ 0.16      $ 0.58      $ 0.68   

Shares used in computing basic per share data

     47,550        48,150        47,488        48,137   

Diluted per share data

        

Net income

   $ 0.30      $ 0.16      $ 0.56      $ 0.67   

Shares used in computing diluted per share data

     48,841        49,310        48,936        49,369   

 

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS AND SELECTED DATA

(In thousands, except DSO data)

 

     June 30,
2016
    December 31,
2015
 
     (unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 3,310      $ 8,895   

Accounts receivable, net

     254,395        216,660   

Prepaid expenses and other current assets

     31,745        29,729   
  

 

 

   

 

 

 

Total current assets

     289,450        255,284   

Non-current assets:

    

Property and equipment, net

     73,816        76,717   

Intangible assets, net

     32,617        38,160   

Goodwill

     620,136        623,204   

Other assets

     21,098        22,531   
  

 

 

   

 

 

 

Total assets

   $ 1,037,117      $ 1,015,896   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 11,984      $ 9,497   

Accrued liabilities

     11,340        10,719   

Accrued compensation-related costs

     68,619        91,577   

Income tax payable

     8,300        —     

Other current liabilities

     34,742        32,147   
  

 

 

   

 

 

 

Total current liabilities

     134,985        143,940   

Non-current liabilities:

    

Deferred income tax liabilities

     80,308        75,719   

Other non-current liabilities

     19,706        28,956   

Bank debt non-current

     189,757        173,743   
  

 

 

   

 

 

 

Total non-current liabilities

     289,771        278,418   
  

 

 

   

 

 

 

Total liabilities

     424,756        422,358   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock

     57        64   

Additional paid-in capital

     636,506        627,976   

Treasury stock

     (169,327     (296,624

Retained earnings

     165,789        278,682   

Accumulated other comprehensive loss

     (20,664     (16,560
  

 

 

   

 

 

 

Total stockholders’ equity

     612,361        593,538   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,037,117      $ 1,015,896   
  

 

 

   

 

 

 

Selected Data (unaudited)

    

Days sales outstanding, net (DSO)

     81        76   

 

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     For the quarter ended
June 30,
    For the six months ended
June 30,
 
     2016     2015     2016     2015  

Cash flows from operating activities:

        

Net income

   $ 14,777      $ 7,827      $ 27,419      $ 32,970   

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

        

Depreciation expense

     7,048        5,863        13,570        11,218   

Amortization expense

     2,891        2,297        5,812        4,566   

Amortization expense - client-facing software

     174        233        353        486   

Share-based compensation expense

     3,995        3,420        6,524        5,524   

Accretion of interest expense

     177        272        355        1,135   

Deferred income taxes

     98        1,073        1,131        4,686   

Allowance for doubtful accounts receivable

     2,911        1,402        4,547        1,592   

Contingent acquisition liability adjustments, net

     850        2,308        850        (12,625

Other, net

     —          98        —          98   

Changes in assets and liabilities (net of acquisitions):

        

Accounts receivable

     (28,222     (12,313     (43,765     (36,747

Prepaid expenses and other assets

     1,149        409        (1,025     (2,361

Accounts payable

     2,000        (969     2,478        136   

Accrued liabilities

     205        (2,523     472        1,444   

Accrued compensation-related costs

     16,878        16,743        (22,788     (22,896

Income taxes payable

     7,004        (790     12,059        46   

Other liabilities

     2,277        3,799        (337     5,923   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     34,212        29,149        7,655        (4,805

Cash flows from investing activities:

        

Purchases of property and equipment

     (5,080     (10,284     (10,039     (23,197

Acquisitions of businesses, net of cash acquired

     —          —          (1,995     (21,379

Other acquisition payments

     —          —          (5,500     —     

Payments of acquisition liabilities

     (498     (1,530     (498     (1,530

Capitalized client-facing software

     (109     (309     (127     (346
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (5,687     (12,123     (18,159     (46,452

Cash flows from financing activities:

        

Issuances of common stock

     785        636        2,841        4,894   

Repurchases of common stock

     (6,757     (5,964     (13,023     (12,081

Repayments to banks

     (112,853     (67,119     (209,245     (138,703

Borrowings from banks

     92,482        58,249        227,239        199,643   

Other, net

     (2,121     (1,036     (2,779     (1,247
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (28,464     (15,234     5,033        52,506   
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (157     74        (114     (43
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (96     1,866        (5,585     1,206   

Cash and cash equivalents at beginning of the period

     3,406        1,988        8,895        2,648   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of the period

   $ 3,310      $ 3,854      $ 3,310      $ 3,854   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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NAVIGANT CONSULTING, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data and percentages)

(Unaudited)

This press release includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission. Below are the reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles (GAAP). This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP. Management uses these non-GAAP financial measures in addition to GAAP financial measures to assess the Company’s operations and financial results and believes they are useful indicators of operating performance and the Company’s ability to generate cash flows from operations that are available for interest, debt service, taxes and capital expenditures. Investors should recognize that these non-GAAP financial measures may not be comparable to similarly-titled measures of other companies.

 

EBITDA, adjusted EBITDA, adjusted Net Income and adjusted Earnings Per
Share (2)
   For the quarter ended
June 30,
          For the six months ended
June 30,
       
     2016     2015           2016     2015        

Severance expense

   $ 1,140      $ 3,553        $ 1,997      $ 5,056     

Income tax benefit (3)

     (430     (1,232       (740     (1,752  
  

 

 

   

 

 

     

 

 

   

 

 

   

Tax-effected impact of severance expense

   $ 710      $ 2,321        $ 1,257      $ 3,304     
  

 

 

   

 

 

     

 

 

   

 

 

   

Other operating costs (benefit) - contingent acquisition liability adjustment, net

   $ 850      $ 2,308        $ 850      $ (12,625  

Income tax benefit (3)(4)

     (341     (907       (341     (1,090  
  

 

 

   

 

 

     

 

 

   

 

 

   

Tax-effected impact of other operating costs (benefit) - contingent acquisition liability adjustment, net

   $ 509      $ 1,401        $ 509      $ (13,715  
  

 

 

   

 

 

     

 

 

   

 

 

   

Other operating costs - office consolidation, net

   $ 174      $ 1,804        $ 174      $ 2,740     

Income tax benefit (3)

     (70     (729       (70     (1,108  
  

 

 

   

 

 

     

 

 

   

 

 

   

Tax-effected impact of other operating costs - office consolidation, net

   $ 104      $ 1,075        $ 104      $ 1,632     
  

 

 

   

 

 

     

 

 

   

 

 

   

Other operating costs - other impairment

   $ —        $ 98        $ —        $ 98     

Income tax benefit (5)

     —          (40       —          (40  
  

 

 

   

 

 

     

 

 

   

 

 

   

Tax-effected impact of other operating costs - other impairment

   $ —        $ 58        $ —        $ 58     
  

 

 

   

 

 

     

 

 

   

 

 

   

EBITDA reconciliation:

            

Net Income

   $ 14,777      $ 7,827        $ 27,419      $ 32,970     

Interest expense

     1,429        1,238          2,689        2,970     

Interest income

     (36     (46       (75     (101  

Other (income) expense, net

     (444     176          (784     (152  

Income tax expense

     9,356        5,162          16,094        11,933     

Depreciation expense

     7,015        5,724          13,537        11,079     

Accelerated depreciation - office consolidation

     33        139          33        139     

Amortization expense

     2,891        2,297          5,812        4,566     
  

 

 

   

 

 

     

 

 

   

 

 

   

EBITDA

   $ 35,021      $ 22,517        $ 64,725      $ 63,404     

Severance expense

     1,140        3,553          1,997        5,056     

Other operating costs (benefit) - contingent acquisition liability adjustment, net

     850        2,308          850        (12,625  

Other operating costs - office consolidation, net

     141        1,665          141        2,601     

Other operating costs - other impairment

     —          98          —          98     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted EBITDA

   $ 37,152      $ 30,141        $ 67,713      $ 58,534     
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income

   $ 14,777      $ 7,827        $ 27,419      $ 32,970     

Tax-effected impact of severance expense

     710        2,321          1,257        3,304     

Tax-effected impact of other operating costs (benefit) - contingent acquisition liability adjustment, net

     509        1,401          509        (13,715  

Tax-effected impact of other operating costs - office consolidation, net

     104        1,075          104        1,632     

Tax-effected impact of other operating costs - other impairment

     —          58          —          58     
  

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted net income

   $ 16,100      $ 12,682        $ 29,289      $ 24,249     
  

 

 

   

 

 

     

 

 

   

 

 

   

Shares used in computing adjusted per diluted share data

     48,841        49,310          48,936        49,369     

Adjusted earnings per share

   $ 0.33      $ 0.26        $ 0.60      $ 0.49     
  

 

 

   

 

 

     

 

 

   

 

 

   

Free Cash Flow (5)

   For the quarter ended
June 30,
          For the six months ended
June 30,
       
     2016     2015           2016     2015        

Net cash provided by (used in) operating activities

   $ 34,212      $ 29,149        $ 7,655      $ (4,805  

Changes in assets and liabilities

     (1,291     (4,356       52,906        54,455     

Allowance for doubtful accounts receivable

     (2,911     (1,402       (4,547     (1,592  

Purchases of property and equipment

     (5,080     (10,284       (10,039     (23,197  

Payments of acquisition liabilities

     (498     (1,530       (498     (1,530  

Payments of contingent acquisition liabilities

     —          —            (49     —       
  

 

 

   

 

 

     

 

 

   

 

 

   

Free Cash Flow

   $ 24,432      $ 11,577        $ 45,428      $ 23,331     
  

 

 

   

 

 

     

 

 

   

 

 

   

Leverage Ratio (6)

   At June 30,                          
     2016     2015                          

Adjusted EBITDA for prior twelve-month period

   $ 130,121      $ 124,979           

Bank debt

   $ 189,757      $ 171,386           

Leverage ratio

     1.46        1.37           

Organic Growth (7)

   For the quarter ended
June 30,
          For the six months ended
June 30,
       
     2016     2015     Growth     2016     2015     Growth  

Revenues before reimbursements

   $ 238,485      $ 211,023        13.0   $ 461,960      $ 412,179        12.1

Pro forma acquisition adjustment

     —          6,350          —          14,561     

Currency impact

     714        —            1,737        —       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Organic RBR

   $ 239,199      $ 217,373        10.0   $ 463,697      $ 426,740        8.7

Footnotes

 

(1) Per share data may not sum due to rounding.
(2) EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA excludes the impact of severance expense and other operating costs (benefit). Adjusted net income and adjusted earnings per share exclude net income (loss) and per share net income (loss) impact of severance expense and other operating costs (benefit). Severance expense and other operating costs (benefit) are not considered to be non-recurring, infrequent or unusual to our business. Management believes that these measures provide investors with enhanced comparability of the Company’s results of operations across periods.
(3) Effective income tax expense (benefit) has been determined based on specific tax jurisdiction.
(4) A portion of the deferred contingent acquisition liability adjustment for the six months ended June 30, 2015 was non-taxable in nature.
(5) Free cash flow is calculated as net cash provided from operations excluding changes in assets and liabilities and allowance for doubtful accounts receivable less cash payments for property and equipment and deferred acquisition related payments. Free cash flow does not represent discretionary cash available for spending as it excludes certain contractual obligations such as debt repayment. However, management believes that it provides investors with an indicator of cash flows available for on-going business operations and long term value creation.
(6) Leverage ratio is calculated as bank debt at the end of the period divided by adjusted EBITDA for the prior twelve-month period. Management believes that leverage ratio provides investors with an indicator of the cash flows available to repay the Company’s debt obligations.
(7) Organic growth represents revenues before reimbursements adjusted to include the impact of our acquisitions as if we owned them from the beginning of each comparable period and adjusted to exclude the impact of foreign currency exchange rate fluctuations. Management believes that organic growth reflects the growth of our existing business and is, therefore, useful in analyzing the Company’s financial condition and results of operations.

 

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