CHICAGO, Sept. 20, 2001 – Navigant Consulting, Inc. today quantified the estimated financial impact on the Company’s third quarter results of operations in light of last week’s terrorist attacks.
William M. Goodyear, Chairman and Chief Executive Officer of Navigant Consulting, Inc. said: “Before the tragic events in New York and Washington, D.C., the Company anticipated third quarter results to be in line with previous guidance of approximately $58 million in revenues and adjusted EBITDA margins of 14%-15%. We now estimate that the effects of business interruptions will negatively impact September’s adjusted EBITDA between $1.3 million and $1.8 million.
This results from the temporary closure of the Company’s and its clients’ offices, reduced availability of air travel, alternate travel expense incurred by staff, and the resulting negative impact on professional staff utilization. We would expect these factors to continue to some extent at least for several more weeks.”
The Company indicated that it is still evaluating the longer term effects on its business. Previously communicated fourth quarter guidance is not being revised at this time.
Backlog is modestly improved from second quarter end levels. To date, the Company has had no contract cancellations as a result of last week’s events. In addition, the Company expects that several practice areas may be favorably impacted, including its insurance and business interruption service lines.
The Company reconfirmed the continuation of its previously announced stock repurchase program.
About Navigant Consulting
Navigant Consulting, Inc. ( http://www.navigantconsulting.com ) is a globally-focused management consulting firm providing consulting services to Fortune 500 companies, government agencies, law firms, and regulated and network industries.
The Company is comprised of two business units – Energy & Water and Financial & Claims. The Energy & Water practice provides consulting services to the energy and electric, gas, and water utility industries, focusing on M&A/divestiture financial advisory services, reliability regulatory and optimization reviews, electric generation and transmission assessments, including energy market assessments, and energy regulatory-related litigation support.
The Financial & Claims unit, consisting of Peterson Consulting, The Barrington Consulting Group, PENTA Advisory Services and Chambers Associates, Inc., provides consultation to clients facing the challenges of litigation, bankruptcy, claims, regulation and change in analyzing complex accounting, finance, economic, engineering, system and information management and retrieval, outsourcing and technology issues. “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.