Navigant Consulting (NCI) has reported a 12.23 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $11.10 million, or $0.23 a share in the quarter, compared with $12.64 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.01 million, or $0.27 a share compared with $13.19 million or $0.27 a share, a year ago.
Revenue during the quarter grew 5.12 percent to $257.84 million from $245.29 million in the previous year period. Gross margin for the quarter contracted 75 basis points over the previous year period to 27.60 percent. Total expenses were 92.80 percent of quarterly revenues, up from 91.74 percent for the same period last year. That has resulted in a contraction of 106 basis points in operating margin to 7.20 percent.
Operating income for the quarter was $18.58 million, compared with $20.26 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.46 million compared with $30.56 million in the prior year period. At the same time, adjusted EBITDA margin contracted 26 basis points in the quarter to 12.20 percent from 12.46 percent in the last year period.
"During the quarter, Navigant continued to achieve organic growth following a very strong 2016. As anticipated, contributions from our segments varied specific to client and industry demands in the face of an uncertain regulatory environment in some of our core industry sectors," said Julie Howard, Navigant chairman and chief executive officer. "Looking ahead, we are focused on the consistent execution of our growth strategy. With our diverse portfolio of service offerings and our disciplined management approach, we remain confident in our ability to deliver on our financial and operating goals for 2017."
For financial year 2017, Navigant Consulting expects revenue to be in the range of $1,075 million to $1,115 million. The company projects diluted earnings per share to be in the range of $1.29 to $1.36 on adjusted basis.
Operating cash flow remains negative
Navigant Consulting has spent $22.96 million cash to meet operating activities during the quarter as against cash outgo of $26.56 million in the last year period.
The company has spent $13.90 million cash to meet investing activities during the quarter as against cash outgo of $12.47 million in the last year period.
Cash flow from financing activities was $37.46 million for the quarter, up 11.84 percent or $3.97 million, when compared with the last year period.
Cash and cash equivalents stood at $9.13 million as on Mar. 31, 2017, up 168.12 percent or $5.73 million from $3.41 million on Mar. 31, 2016.
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