Navigant Consulting, Inc. Announces First Quarter Results -- Revenues And EBITDA in Line With Analysts' Expectations

First Quarter 2001 Highlights

- Quarterly revenues of $62.9 million and adjusted EBITDA of

$10.9 million, or 17.4% of revenues. Quarter over quarter revenue

growth of 6.5%.

- The Energy & Water business unit is taking advantage of consulting

opportunities that result from growing concerns in California and

throughout the country regarding energy deregulation and related energy

issues.

- The Financial & Claims business unit launches new subsidiary to

capitalize on long-standing expertise in data management and analysis

related to asbestos litigation.

- The Board of Directors approves new incentive compensation program for

senior professionals designed to further align shareholder and employee

interests.

- Additional repurchase of Company stock in the first quarter.

- Court gives final approval of class action litigation settlement.



Apr 25, 2001, 01:00 ET from Navigant Consulting, Inc.

    CHICAGO, April 25 /PRNewswire/ -- Navigant Consulting, Inc. (NYSE:   NCI)
 
     First Quarter 2001 Results
     Revenues from the Company's Financial & Claims and Energy & Water
 operations in the first quarter were $62.9 million, compared to $59.1 million
 in the fourth quarter of 2000, and $65.8 million in the first quarter of 2000.
 Adjusted EBITDA in the 2001 first quarter was $10.9 million, compared to
 $8.7 million in the fourth quarter of 2000 and $10.6 million in the comparable
 quarter of 2000.  Adjusted EBITDA is defined as EBITDA exclusive of the Value
 Sharing Retention Program (VSRP) cash compensation, non-cash stock
 compensation and amortization of Barrington acquisition costs.
     Cash EPS in the first quarter was $0.05 per share, as compared with
 $0.02 in the fourth quarter of 2000 and $0.11 per share in the first quarter
 of 2000.  Cash EPS before VSRP cash payments was $0.12 per share in the
 current quarter, $0.09 in the 2000 fourth quarter, and $0.11 per share in the
 first quarter of 2000.  VSRP cash payments, which aggregated $4.8 million in
 the current quarter and $4.7 million in the 2000 fourth quarter ($0.07 per
 share, net of tax in both quarters) will be completed in the third quarter of
 2001.
     The Company maintained attrition rates below the industry average during
 the first quarter, reflecting the favorable impact of our Value Sharing
 Retention Program introduced in the fall of 2000.  Annualized attrition was
 18.6% in the first quarter, compared with 15.6% in the fourth quarter of 2000
 and 26.8% in the first quarter of 2000.  Annualized attrition in the second
 and third quarters of 2000 was 35.6% and 32.4%, respectively.  Utilization
 rates for both practices trended upward as the quarter progressed.  First
 quarter utilization for the combined practices was 69%, as compared with 62%
 in the fourth quarter of 2000.
     The accounting impact of non-cash stock compensation expense was
 $2.4 million in the first quarter of 2001.  This charge resulted from the
 increase in the Company's stock price and the associated impact from the stock
 option, restricted stock and stock appreciation rights expense.
     William M. Goodyear, Chairman and Chief Executive Officer of Navigant
 Consulting, said: "Given the slowing economy, we are pleased to have met our
 revenue and EBITDA expectations in the first quarter.  We had positive monthly
 momentum in both utilization and revenue as the quarter progressed, and we
 expect this trend to continue."
 
     Energy & Water Business Unit
     The Energy & Water practice is heavily involved in efforts to forge a
 long-term solution to the California energy crisis, having been engaged by the
 California Department of Water Resources to assist in the evaluation of energy
 supply requirements and in procuring energy supplies for the State of
 California.  These efforts are being led by Ron Nichols, Senior Managing
 Director, with the support of our Sacramento office.  The Energy & Water
 practice is supporting this extraordinary assignment with capabilities from
 throughout its national practice.  "The breadth of the firm's capabilities
 enable us to assist the State of California on the extensive list of
 challenges it faces in resolving its energy crisis," noted Bob Yardley,
 Executive Managing Director of the Energy & Water practice.  "Furthermore, our
 experience in California will be invaluable to clients in all segments of the
 energy industry throughout the country and internationally.  There is an
 unquenchable thirst for intelligence, insight and lessons learned from the
 California experience on behalf of energy firms and policy makers."  The
 Energy & Water practice is uniquely positioned to capitalize on the changes
 sweeping the energy industry today.  The Company is providing transaction
 support, energy resource planning, risk management, assessment of adequacy and
 reliability of basic infrastructure, distributed generation, and energy supply
 contracting to a variety of clients.
     The Energy & Water practice also continued to make significant progress in
 efforts to extend its leadership position in generation asset transactions to
 other energy transactions.  We are conducting an auction for
 Sithe/Independence Power Partners, L.P. relating to the 1,040 MW Independence
 Station located in Scriba, New York.  The auction will include a 14-year
 tolling agreement for the entire output of the facility and a transmission
 congestion contract (TCC).  This auction represents the largest tolling
 agreement ever offered in the United States and represents the first TCC
 auction conducted by a private entity.  We are also assisting Niagara Mohawk
 in several transactions, including selling their wholesale and retail
 marketing affiliate, their energy services and distributed power business
 units.  In addition, during the first quarter, we extended our expertise to
 assist several clients in outsourcing their power procurement function to
 enable them to meet their ongoing power supply obligations.  John Reed,
 Executive Director in the Energy & Water practice, said: "We expect that there
 will be considerable opportunities over the next three to five years to assist
 our clients in optimizing their asset portfolios as the shape of deregulated
 energy markets becomes clearer and as our clients pursue growth strategies."
 
     Financial & Claims Business Unit
     On April 1, 2001, the Financial & Claims practice launched a newly formed
 subsidiary, Peterson Asbestos Claims Enterprise (PACE).  This subsidiary will
 provide analytical and administrative services to companies facing challenges
 associated with managing asbestos lawsuits.  In the past twelve months, the
 focus on asbestos litigation has intensified.  The volume of new asbestos
 cases and the number of defendants involved in litigation have materially
 increased.  In addition, several of the largest remaining defendants have
 filed for bankruptcy.  Peterson Consulting, the flagship legacy company of the
 Financial & Claims business unit, has been assisting companies for more than
 15 years understand, analyze and manage populations of asbestos claims,
 ranging from hundreds to hundreds of thousands of claims.  Doug Reichert,
 Executive Managing Director of the Financial & Claims practice, said:
 "Peterson is the preeminent industry leader in providing asbestos-related
 litigation and claims services.  Our new entity combines the asbestos and
 long-tail experience of the Peterson professionals with internet capabilities
 and modern IT systems to offer companies cost-effective solutions without
 sacrificing quality of information."
     As corporations' concern over the costs associated with the management and
 production of electronic documents in litigation grows, they are taking steps
 to ensure that they are prepared to effectively manage their electronic
 information.  Peterson Consulting has significant expertise in this field and
 is being retained to perform "Readiness Assessment" reviews.  Peterson has
 been engaged by a major energy company that has recently undergone significant
 structural change due to merger and acquisition transactions and related
 activities.  A Readiness Assessment includes the review of electronic
 information by the corporation's information systems, legal, records
 management and regulatory departments.  Peterson offers its clients innovative
 approaches to minimize the risk associated with dissimilar electronic data as
 a result of corporate mergers and acquisitions that has been accumulated over
 time.  In what is viewed as a solution to the proliferation of electronic
 data, Peterson is offering enterprise-wide strategic solutions and
 computerized tools to assist its corporate clients in automating records
 retention programs for electronic and paper documents as required by federal
 and state regulations.
     As previously announced, the acquisition of Barba-Arkhon International,
 Inc. was completed on March 1, 2001.  Barba-Arkhon is a leader in dispute
 resolution related to construction and government contracts.  The acquisition
 is complementary to our core service offerings and has been integrated into
 our Financial & Claims' construction and government contracts practice.
 
     Incentive Compensation Program Tied to Operating Performance
     To further enhance the alignment of shareholder and employee interests,
 the Compensation Committee of the Board of Directors recently approved a new
 incentive compensation plan for senior professionals that links variable pay
 to improved business unit and Company operating performance.  The plan was
 designed to support the Company's strategic goals to achieve upper quartile
 operating performance and to increase overall enterprise value.
     The new compensation plan creates an incentive pool that is funded based
 on sharing increasing percentages of improving EBITDA margin results.  Funding
 will begin with minimum sharing as the Company meets EBITDA targets, and
 increase in sharing as the operating performance of the business units reach
 upper quartile performance metrics.
     Julie Howard, Vice President and Human Capital Officer, said: "This is an
 exciting time for Navigant's employees, clients and shareholders.  With the
 restructuring efforts of 2000 behind us, and our deep expertise in several
 markets currently undergoing rapid transformation, we are positioned to
 achieve our strategic goals.  Our new incentive compensation program will
 increase shareholder value by supporting, measuring and rewarding operating
 performance improvements."
 
     Repurchase of Company Shares
     In the 2001 first quarter, the Company, pursuant to the authority granted
 by the Board of Directors to buy up to 5.0 million shares of common stock
 through December 31, 2001, continued to purchase the Company's common stock,
 buying 328,700 shares of its common stock at an average price of $6.65.  Since
 November 2000, the Company has purchased 1,400,200 shares of its stock at an
 average price of $4.15 per share.
 
     Court gives final approval of Class Action Litigation Settlement
     As previously announced, on March 22, 2001, the United States District
 Court for the Northern District of Illinois gave its final approval to the
 proposed settlement of the consolidated securities law class actions.  The
 settlement calls for the dismissal, with prejudice, of the consolidated class
 actions and a release of the Company and the Company's former and current
 officers and directors, among others.  The Company had previously contributed
 $16.5 million into escrow pending such approval.  No additional payments from
 the Company are required.
 
     Webcast of the Company's Announcement of First Quarter 2001 Results
     A live webcast of the Company's release of its first quarter results is
 available by visiting the Company's website at www.navigantconsulting.com .
 To access the call, click the Investor Relations button and then select
 Conference Calls.  This webcast will be available until 7:00 p.m., EDT,
 July 25, 2001.
 
     About Navigant Consulting
     Navigant Consulting, Inc. ( 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 Barba-Arkhon International, 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.
     Statements included in this press release, which are not historical in
 nature, are intended to be, and are hereby identified as, "forward-looking
 statements" for purposes of the safe harbor provided by Section 21E of the
 Securities Exchange Act of 1934, as amended by Public Law 104-67.  Forward-
 looking statements may be identified by words including "anticipate,"
 "believe," "intends," "estimates," "expect" and similar expressions.   The
 Company cautions readers that forward-looking statements, including without
 limitation, those relating to the Company's future business prospects,
 revenues, working capital, liquidity, income and margins, are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from those indicated in the forward-looking statements, due to
 several important factors, including those identified from time to time in the
 Company's reports filed with the SEC.   Such risk factors include, but are not
 limited to: acquisitions and acquisitions under consideration, follow-on
 offerings, revenues and financial estimates, significant client assignments,
 recruiting and new business solicitation efforts, judicial proceedings,
 regulatory changes and general economic conditions.
 
 
                             NAVIGANT CONSULTING, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             For the three months ended 3/31/01, 12/31/00 and 03/31/00
           (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                   Three months ended
                                             March 31,  December 31, March 31,
                                                2001        2000        2000
 
     Revenues                                 $62,877     $59,062     $65,842
     Cost of services                          38,330      37,264      40,198
          Gross margin                         24,547      21,798      25,644
     General and administrative expenses       13,621      13,110      15,019
     Adjusted EBITDA  (Note 1)                 10,926       8,688      10,625
 
     Depreciation                               1,577       1,800       1,771
     Amortization                               1,270       1,091       1,130
     Value Sharing Retention Program
      (VSRP) - cash compensation                4,752       4,681           0
     Non-cash stock based compensation
      expense                                   2,418          69         184
     Barrington acquisition costs               1,203       1,203       1,562
     Non-recurring costs                          380         572           0
          Operating income (loss)                (674)       (728)      5,978
     Other income                                 463         462          44
          Pre-tax income (loss)                  (211)       (266)      6,022
     Income tax expense                           437         258       2,935
          Net income (loss) from
           continuing operations                 (648)       (524)      3,087
     Net income (loss) from discontinued
      operations, net of tax                        0       1,178      (7,267)
          Net income (loss)                     ($648)       $654     ($4,180)
 
 
     Adjusted EBITDA per share                  $0.26       $0.22       $0.26
 
     Cash EPS  - continuing operations
      (Note 2)                                  $0.05       $0.02       $0.11
     Cash EPS  - continuing ops. (before
      VSRP - cash compensation)                 $0.12       $0.09       $0.11
 
     EPS - continuing operations               ($0.02)     ($0.01)      $0.07
 
          Basic shares                         38,441      39,847      41,119
          Diluted shares                       41,332      39,862      41,170
 
     Selected operating data
     (% of Revenues)
     Gross margin                               39.0%       36.9%       38.9%
     General and administrative expenses        21.7%       22.2%       22.8%
     Adjusted EBITDA                            17.4%       14.7%       16.1%
 
 
     Note 1 - Adjusted EBITDA is defined as EBITDA excluding value sharing
              retention program (VSRP) cash compensation, non-cash stock
              compensation, Barrington acquisition costs, and other non
              recurring costs.
 
     Note 2 - Cash earnings per share excludes amortization of goodwill and
              other intangible assets and non-cash, stock-based compensation
              expense.
 
 
                             NAVIGANT CONSULTING, INC.
                         PRO FORMA STATEMENT OF OPERATIONS
             For the three months ended 03/31/01, 12/31/00 and 03/31/00
            (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                                     Pro forma
                                               Three                  three
                                               months       Pro       months
                                               ended       forma      ended
                                               03/31/01    adjs.      03/31/01
 
     Revenues                                 $62,877         $0     $62,877
     Cost of services                          38,330          0      38,330
          Gross margin                         24,547          0      24,547
     General and administrative expenses       13,621          0      13,621
     Adjusted EBITDA                           10,926          0      10,926
 
     Depreciation                               1,577          0       1,577
     Amortization                               1,270          0       1,270
     VSRP - cash compensation                   4,752     (4,752)          0
     Non-cash stock based compensation          2,418     (2,418)          0
     Barrington acquisition costs               1,203     (1,203)          0
     Non-recurring costs                          380       (380)          0
          Operating income (loss)                (674)     8,753       8,079
     Other income (expense)                       463          0         463
          Pre-tax income (loss)                  (211)     8,753       8,542
     Income taxes                                 437      3,501       3,938
     Net income (loss) from continuing
      operations                                 (648)     5,252       4,604
 
     Net income (loss) from discontinued
      operations, net of tax                        0                      0
          Net income (loss)                     ($648)                $4,604
 
          Adjusted EBITDA per share             $0.26                  $0.26
 
          Cash EPS  - continuing
           operations                           $0.05                  $0.14
 
          EPS -  continuing operations         ($0.02)                 $0.11
 
          Basic shares                         38,441                 38,441
          Diluted shares                       41,332                 41,332
 
     Selected operating data
     (% of Revenues)
     Gross margin                               39.0%                  39.0%
     General and administrative expenses        21.7%                  21.7%
     Adjusted EBITDA                            17.4%                  17.4%
     Operating income (loss)                    -1.1%                  12.8%
     Net income (loss) from continuing
      operations
                                                -1.0%                   7.3%
     Net income (loss)                          -1.0%                   7.3%
 
 
                             NAVIGANT CONSULTING, INC.
                         PRO FORMA STATEMENT OF OPERATIONS
             For the three months ended 03/31/01, 12/31/00 and 03/31/00
            (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                                     Pro forma
                                               Three                   three
                                               months       Pro        months
                                               ended       forma       ended
                                              12/31/00     adjs.      12/31/00
 
     Revenues                                 $59,062         $0     $59,062
     Cost of services                          37,264          0      37,264
          Gross margin                         21,798          0      21,798
     General and administrative expenses       13,110          0      13,110
     Adjusted EBITDA                            8,688          0       8,688
 
     Depreciation                               1,800          0       1,800
     Amortization                               1,091          0       1,091
     VSRP - cash compensation                   4,681     (4,681)          0
     Non-cash stock based compensation             69        (69)          0
     Barrington acquisition costs               1,203     (1,203)          0
     Non-recurring costs                          572       (572)          0
          Operating income (loss)                (728)     6,525       5,797
     Other income (expense)                       462        (39)        423
          Pre-tax income (loss)                  (266)     6,564       6,298
     Income taxes                                 258      2,626       2,884
     Net income (loss) from continuing
      operations                                 (524)     3,938       3,414
 
     Net income (loss) from discontinued
      operations, net of tax                    1,178                  1,178
          Net income (loss)                      $654                 $4,592
 
          Adjusted EBITDA per share             $0.22                  $0.22
 
          Cash EPS  - continuing
           operations                           $0.02                  $0.11
 
          EPS -  continuing operations         ($0.01)                 $0.09
 
          Basic shares                         39,847                 39,847
          Diluted shares                       39,862                 39,862
 
     Selected operating data
     (% of Revenues)
     Gross margin                               36.9%                  36.9%
     General and administrative expenses        22.2%                  22.2%
     Adjusted EBITDA                            14.7%                  14.7%
     Operating income (loss)                    -1.2%                   9.8%
     Net income (loss) from continuing
      operations
                                                -0.9%                   5.8%
     Net income (loss)                           1.1%                   7.8%
 
 
                             NAVIGANT CONSULTING, INC.
                         PRO FORMA STATEMENT OF OPERATIONS
             For the three months ended 03/31/01, 12/31/00 and 03/31/00
            (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                                     Pro forma
                                              Three                    three
                                              months         Pro       months
                                              ended         forma      ended
                                             03/31/00       adjs.     03/31/00
 
     Revenues                                 $65,842         $0     $65,842
     Cost of services                          40,198          0      40,198
          Gross margin                         25,644          0      25,644
     General and administrative expenses       15,019          0      15,019
     Adjusted EBITDA                           10,625          0      10,625
 
     Depreciation                               1,771          0       1,771
     Amortization                               1,130          0       1,130
     VSRP - cash compensation                       0          0           0
     Non-cash stock based compensation            184       (184)          0
     Barrington acquisition costs               1,562     (1,562)          0
     Non-recurring costs                            0          0           0
          Operating income (loss)               5,978      1,746       7,724
     Other income (expense)                        44          0          44
          Pre-tax income (loss)                 6,022      1,746       7,768
     Income taxes                               2,935        698       3,633
     Net income (loss) from continuing
      operations                                3,087      1,048       4,135
 
     Net income (loss) from discontinued
      operations, net of tax                   (7,267)                (7,267)
          Net income (loss)                   ($4,180)               ($3,132)
 
          Adjusted EBITDA per share             $0.26                  $0.26
 
          Cash EPS  - continuing
           operations                           $0.11                  $0.13
 
          EPS -  continuing operations          $0.07                  $0.10
 
 
          Basic shares                         41,119                 41,119
          Diluted shares                       41,170                 41,170
 
     Selected operating data
     (% of Revenues)
     Gross margin                               38.9%                  38.9%
     General and administrative expenses        22.8%                  22.8%
     Adjusted EBITDA                            16.1%                  16.1%
     Operating income (loss)                     9.1%                  11.7%
     Net income (loss) from continuing
      operations
                                                 4.7%                   6.3%
     Net income (loss)                          -6.3%                  -4.8%
 
 
                             NAVIGANT CONSULTING, INC.
         CONDENSED CONSOLIDATED BALANCE SHEETS AND SELECTED OPERATING DATA
                          (In thousands, except DSO data)
                                    (Unaudited)
 
 
                                       March 31,  Dec. 31,  Sept. 30,  June 30,
     Assets                               2001      2000      2000      2000
 
     Cash and cash equivalents           $30,120   $48,798   $34,798    $2,149
     Trade accounts receivable            55,621    55,012    68,380    69,971
     Prepaid and other assets              8,655     7,603    17,274    12,001
     Net assets of discontinued
      operations held for disposition          0         0     4,249    63,557
          Total current assets            94,396   111,413   124,701   147,678
 
     Property and equipment, net          19,526    19,328    20,835    20,573
     Intangible assets, net               34,829    27,523    26,633    29,088
     Other non-current assets, net         5,166     5,218     5,447     5,193
          Total assets                  $153,917  $163,482  $177,616  $202,532
 
     Liabilities and Stockholders'
      equity
     Short-term debt                          $0        $0    $8,950    $5,600
     Current liabilities                  37,173    47,757    38,207    57,336
     Other liabilities                     1,500         0     5,732     5,223
     Stockholders' equity                115,244   115,725   124,727   134,373
     Total liabilities and
      stockholders' equity              $153,917  $163,482  $177,616  $202,532
 
 
     Selected Data
     Days sales outstanding, net (DSO)    80 days   84 days  100 days  108 days
 
 
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SOURCE Navigant Consulting, Inc.
    CHICAGO, April 25 /PRNewswire/ -- Navigant Consulting, Inc. (NYSE:   NCI)
 
     First Quarter 2001 Results
     Revenues from the Company's Financial & Claims and Energy & Water
 operations in the first quarter were $62.9 million, compared to $59.1 million
 in the fourth quarter of 2000, and $65.8 million in the first quarter of 2000.
 Adjusted EBITDA in the 2001 first quarter was $10.9 million, compared to
 $8.7 million in the fourth quarter of 2000 and $10.6 million in the comparable
 quarter of 2000.  Adjusted EBITDA is defined as EBITDA exclusive of the Value
 Sharing Retention Program (VSRP) cash compensation, non-cash stock
 compensation and amortization of Barrington acquisition costs.
     Cash EPS in the first quarter was $0.05 per share, as compared with
 $0.02 in the fourth quarter of 2000 and $0.11 per share in the first quarter
 of 2000.  Cash EPS before VSRP cash payments was $0.12 per share in the
 current quarter, $0.09 in the 2000 fourth quarter, and $0.11 per share in the
 first quarter of 2000.  VSRP cash payments, which aggregated $4.8 million in
 the current quarter and $4.7 million in the 2000 fourth quarter ($0.07 per
 share, net of tax in both quarters) will be completed in the third quarter of
 2001.
     The Company maintained attrition rates below the industry average during
 the first quarter, reflecting the favorable impact of our Value Sharing
 Retention Program introduced in the fall of 2000.  Annualized attrition was
 18.6% in the first quarter, compared with 15.6% in the fourth quarter of 2000
 and 26.8% in the first quarter of 2000.  Annualized attrition in the second
 and third quarters of 2000 was 35.6% and 32.4%, respectively.  Utilization
 rates for both practices trended upward as the quarter progressed.  First
 quarter utilization for the combined practices was 69%, as compared with 62%
 in the fourth quarter of 2000.
     The accounting impact of non-cash stock compensation expense was
 $2.4 million in the first quarter of 2001.  This charge resulted from the
 increase in the Company's stock price and the associated impact from the stock
 option, restricted stock and stock appreciation rights expense.
     William M. Goodyear, Chairman and Chief Executive Officer of Navigant
 Consulting, said: "Given the slowing economy, we are pleased to have met our
 revenue and EBITDA expectations in the first quarter.  We had positive monthly
 momentum in both utilization and revenue as the quarter progressed, and we
 expect this trend to continue."
 
     Energy & Water Business Unit
     The Energy & Water practice is heavily involved in efforts to forge a
 long-term solution to the California energy crisis, having been engaged by the
 California Department of Water Resources to assist in the evaluation of energy
 supply requirements and in procuring energy supplies for the State of
 California.  These efforts are being led by Ron Nichols, Senior Managing
 Director, with the support of our Sacramento office.  The Energy & Water
 practice is supporting this extraordinary assignment with capabilities from
 throughout its national practice.  "The breadth of the firm's capabilities
 enable us to assist the State of California on the extensive list of
 challenges it faces in resolving its energy crisis," noted Bob Yardley,
 Executive Managing Director of the Energy & Water practice.  "Furthermore, our
 experience in California will be invaluable to clients in all segments of the
 energy industry throughout the country and internationally.  There is an
 unquenchable thirst for intelligence, insight and lessons learned from the
 California experience on behalf of energy firms and policy makers."  The
 Energy & Water practice is uniquely positioned to capitalize on the changes
 sweeping the energy industry today.  The Company is providing transaction
 support, energy resource planning, risk management, assessment of adequacy and
 reliability of basic infrastructure, distributed generation, and energy supply
 contracting to a variety of clients.
     The Energy & Water practice also continued to make significant progress in
 efforts to extend its leadership position in generation asset transactions to
 other energy transactions.  We are conducting an auction for
 Sithe/Independence Power Partners, L.P. relating to the 1,040 MW Independence
 Station located in Scriba, New York.  The auction will include a 14-year
 tolling agreement for the entire output of the facility and a transmission
 congestion contract (TCC).  This auction represents the largest tolling
 agreement ever offered in the United States and represents the first TCC
 auction conducted by a private entity.  We are also assisting Niagara Mohawk
 in several transactions, including selling their wholesale and retail
 marketing affiliate, their energy services and distributed power business
 units.  In addition, during the first quarter, we extended our expertise to
 assist several clients in outsourcing their power procurement function to
 enable them to meet their ongoing power supply obligations.  John Reed,
 Executive Director in the Energy & Water practice, said: "We expect that there
 will be considerable opportunities over the next three to five years to assist
 our clients in optimizing their asset portfolios as the shape of deregulated
 energy markets becomes clearer and as our clients pursue growth strategies."
 
     Financial & Claims Business Unit
     On April 1, 2001, the Financial & Claims practice launched a newly formed
 subsidiary, Peterson Asbestos Claims Enterprise (PACE).  This subsidiary will
 provide analytical and administrative services to companies facing challenges
 associated with managing asbestos lawsuits.  In the past twelve months, the
 focus on asbestos litigation has intensified.  The volume of new asbestos
 cases and the number of defendants involved in litigation have materially
 increased.  In addition, several of the largest remaining defendants have
 filed for bankruptcy.  Peterson Consulting, the flagship legacy company of the
 Financial & Claims business unit, has been assisting companies for more than
 15 years understand, analyze and manage populations of asbestos claims,
 ranging from hundreds to hundreds of thousands of claims.  Doug Reichert,
 Executive Managing Director of the Financial & Claims practice, said:
 "Peterson is the preeminent industry leader in providing asbestos-related
 litigation and claims services.  Our new entity combines the asbestos and
 long-tail experience of the Peterson professionals with internet capabilities
 and modern IT systems to offer companies cost-effective solutions without
 sacrificing quality of information."
     As corporations' concern over the costs associated with the management and
 production of electronic documents in litigation grows, they are taking steps
 to ensure that they are prepared to effectively manage their electronic
 information.  Peterson Consulting has significant expertise in this field and
 is being retained to perform "Readiness Assessment" reviews.  Peterson has
 been engaged by a major energy company that has recently undergone significant
 structural change due to merger and acquisition transactions and related
 activities.  A Readiness Assessment includes the review of electronic
 information by the corporation's information systems, legal, records
 management and regulatory departments.  Peterson offers its clients innovative
 approaches to minimize the risk associated with dissimilar electronic data as
 a result of corporate mergers and acquisitions that has been accumulated over
 time.  In what is viewed as a solution to the proliferation of electronic
 data, Peterson is offering enterprise-wide strategic solutions and
 computerized tools to assist its corporate clients in automating records
 retention programs for electronic and paper documents as required by federal
 and state regulations.
     As previously announced, the acquisition of Barba-Arkhon International,
 Inc. was completed on March 1, 2001.  Barba-Arkhon is a leader in dispute
 resolution related to construction and government contracts.  The acquisition
 is complementary to our core service offerings and has been integrated into
 our Financial & Claims' construction and government contracts practice.
 
     Incentive Compensation Program Tied to Operating Performance
     To further enhance the alignment of shareholder and employee interests,
 the Compensation Committee of the Board of Directors recently approved a new
 incentive compensation plan for senior professionals that links variable pay
 to improved business unit and Company operating performance.  The plan was
 designed to support the Company's strategic goals to achieve upper quartile
 operating performance and to increase overall enterprise value.
     The new compensation plan creates an incentive pool that is funded based
 on sharing increasing percentages of improving EBITDA margin results.  Funding
 will begin with minimum sharing as the Company meets EBITDA targets, and
 increase in sharing as the operating performance of the business units reach
 upper quartile performance metrics.
     Julie Howard, Vice President and Human Capital Officer, said: "This is an
 exciting time for Navigant's employees, clients and shareholders.  With the
 restructuring efforts of 2000 behind us, and our deep expertise in several
 markets currently undergoing rapid transformation, we are positioned to
 achieve our strategic goals.  Our new incentive compensation program will
 increase shareholder value by supporting, measuring and rewarding operating
 performance improvements."
 
     Repurchase of Company Shares
     In the 2001 first quarter, the Company, pursuant to the authority granted
 by the Board of Directors to buy up to 5.0 million shares of common stock
 through December 31, 2001, continued to purchase the Company's common stock,
 buying 328,700 shares of its common stock at an average price of $6.65.  Since
 November 2000, the Company has purchased 1,400,200 shares of its stock at an
 average price of $4.15 per share.
 
     Court gives final approval of Class Action Litigation Settlement
     As previously announced, on March 22, 2001, the United States District
 Court for the Northern District of Illinois gave its final approval to the
 proposed settlement of the consolidated securities law class actions.  The
 settlement calls for the dismissal, with prejudice, of the consolidated class
 actions and a release of the Company and the Company's former and current
 officers and directors, among others.  The Company had previously contributed
 $16.5 million into escrow pending such approval.  No additional payments from
 the Company are required.
 
     Webcast of the Company's Announcement of First Quarter 2001 Results
     A live webcast of the Company's release of its first quarter results is
 available by visiting the Company's website at www.navigantconsulting.com .
 To access the call, click the Investor Relations button and then select
 Conference Calls.  This webcast will be available until 7:00 p.m., EDT,
 July 25, 2001.
 
     About Navigant Consulting
     Navigant Consulting, Inc. ( 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 Barba-Arkhon International, 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.
     Statements included in this press release, which are not historical in
 nature, are intended to be, and are hereby identified as, "forward-looking
 statements" for purposes of the safe harbor provided by Section 21E of the
 Securities Exchange Act of 1934, as amended by Public Law 104-67.  Forward-
 looking statements may be identified by words including "anticipate,"
 "believe," "intends," "estimates," "expect" and similar expressions.   The
 Company cautions readers that forward-looking statements, including without
 limitation, those relating to the Company's future business prospects,
 revenues, working capital, liquidity, income and margins, are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from those indicated in the forward-looking statements, due to
 several important factors, including those identified from time to time in the
 Company's reports filed with the SEC.   Such risk factors include, but are not
 limited to: acquisitions and acquisitions under consideration, follow-on
 offerings, revenues and financial estimates, significant client assignments,
 recruiting and new business solicitation efforts, judicial proceedings,
 regulatory changes and general economic conditions.
 
 
                             NAVIGANT CONSULTING, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             For the three months ended 3/31/01, 12/31/00 and 03/31/00
           (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                   Three months ended
                                             March 31,  December 31, March 31,
                                                2001        2000        2000
 
     Revenues                                 $62,877     $59,062     $65,842
     Cost of services                          38,330      37,264      40,198
          Gross margin                         24,547      21,798      25,644
     General and administrative expenses       13,621      13,110      15,019
     Adjusted EBITDA  (Note 1)                 10,926       8,688      10,625
 
     Depreciation                               1,577       1,800       1,771
     Amortization                               1,270       1,091       1,130
     Value Sharing Retention Program
      (VSRP) - cash compensation                4,752       4,681           0
     Non-cash stock based compensation
      expense                                   2,418          69         184
     Barrington acquisition costs               1,203       1,203       1,562
     Non-recurring costs                          380         572           0
          Operating income (loss)                (674)       (728)      5,978
     Other income                                 463         462          44
          Pre-tax income (loss)                  (211)       (266)      6,022
     Income tax expense                           437         258       2,935
          Net income (loss) from
           continuing operations                 (648)       (524)      3,087
     Net income (loss) from discontinued
      operations, net of tax                        0       1,178      (7,267)
          Net income (loss)                     ($648)       $654     ($4,180)
 
 
     Adjusted EBITDA per share                  $0.26       $0.22       $0.26
 
     Cash EPS  - continuing operations
      (Note 2)                                  $0.05       $0.02       $0.11
     Cash EPS  - continuing ops. (before
      VSRP - cash compensation)                 $0.12       $0.09       $0.11
 
     EPS - continuing operations               ($0.02)     ($0.01)      $0.07
 
          Basic shares                         38,441      39,847      41,119
          Diluted shares                       41,332      39,862      41,170
 
     Selected operating data
     (% of Revenues)
     Gross margin                               39.0%       36.9%       38.9%
     General and administrative expenses        21.7%       22.2%       22.8%
     Adjusted EBITDA                            17.4%       14.7%       16.1%
 
 
     Note 1 - Adjusted EBITDA is defined as EBITDA excluding value sharing
              retention program (VSRP) cash compensation, non-cash stock
              compensation, Barrington acquisition costs, and other non
              recurring costs.
 
     Note 2 - Cash earnings per share excludes amortization of goodwill and
              other intangible assets and non-cash, stock-based compensation
              expense.
 
 
                             NAVIGANT CONSULTING, INC.
                         PRO FORMA STATEMENT OF OPERATIONS
             For the three months ended 03/31/01, 12/31/00 and 03/31/00
            (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                                     Pro forma
                                               Three                  three
                                               months       Pro       months
                                               ended       forma      ended
                                               03/31/01    adjs.      03/31/01
 
     Revenues                                 $62,877         $0     $62,877
     Cost of services                          38,330          0      38,330
          Gross margin                         24,547          0      24,547
     General and administrative expenses       13,621          0      13,621
     Adjusted EBITDA                           10,926          0      10,926
 
     Depreciation                               1,577          0       1,577
     Amortization                               1,270          0       1,270
     VSRP - cash compensation                   4,752     (4,752)          0
     Non-cash stock based compensation          2,418     (2,418)          0
     Barrington acquisition costs               1,203     (1,203)          0
     Non-recurring costs                          380       (380)          0
          Operating income (loss)                (674)     8,753       8,079
     Other income (expense)                       463          0         463
          Pre-tax income (loss)                  (211)     8,753       8,542
     Income taxes                                 437      3,501       3,938
     Net income (loss) from continuing
      operations                                 (648)     5,252       4,604
 
     Net income (loss) from discontinued
      operations, net of tax                        0                      0
          Net income (loss)                     ($648)                $4,604
 
          Adjusted EBITDA per share             $0.26                  $0.26
 
          Cash EPS  - continuing
           operations                           $0.05                  $0.14
 
          EPS -  continuing operations         ($0.02)                 $0.11
 
          Basic shares                         38,441                 38,441
          Diluted shares                       41,332                 41,332
 
     Selected operating data
     (% of Revenues)
     Gross margin                               39.0%                  39.0%
     General and administrative expenses        21.7%                  21.7%
     Adjusted EBITDA                            17.4%                  17.4%
     Operating income (loss)                    -1.1%                  12.8%
     Net income (loss) from continuing
      operations
                                                -1.0%                   7.3%
     Net income (loss)                          -1.0%                   7.3%
 
 
                             NAVIGANT CONSULTING, INC.
                         PRO FORMA STATEMENT OF OPERATIONS
             For the three months ended 03/31/01, 12/31/00 and 03/31/00
            (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                                     Pro forma
                                               Three                   three
                                               months       Pro        months
                                               ended       forma       ended
                                              12/31/00     adjs.      12/31/00
 
     Revenues                                 $59,062         $0     $59,062
     Cost of services                          37,264          0      37,264
          Gross margin                         21,798          0      21,798
     General and administrative expenses       13,110          0      13,110
     Adjusted EBITDA                            8,688          0       8,688
 
     Depreciation                               1,800          0       1,800
     Amortization                               1,091          0       1,091
     VSRP - cash compensation                   4,681     (4,681)          0
     Non-cash stock based compensation             69        (69)          0
     Barrington acquisition costs               1,203     (1,203)          0
     Non-recurring costs                          572       (572)          0
          Operating income (loss)                (728)     6,525       5,797
     Other income (expense)                       462        (39)        423
          Pre-tax income (loss)                  (266)     6,564       6,298
     Income taxes                                 258      2,626       2,884
     Net income (loss) from continuing
      operations                                 (524)     3,938       3,414
 
     Net income (loss) from discontinued
      operations, net of tax                    1,178                  1,178
          Net income (loss)                      $654                 $4,592
 
          Adjusted EBITDA per share             $0.22                  $0.22
 
          Cash EPS  - continuing
           operations                           $0.02                  $0.11
 
          EPS -  continuing operations         ($0.01)                 $0.09
 
          Basic shares                         39,847                 39,847
          Diluted shares                       39,862                 39,862
 
     Selected operating data
     (% of Revenues)
     Gross margin                               36.9%                  36.9%
     General and administrative expenses        22.2%                  22.2%
     Adjusted EBITDA                            14.7%                  14.7%
     Operating income (loss)                    -1.2%                   9.8%
     Net income (loss) from continuing
      operations
                                                -0.9%                   5.8%
     Net income (loss)                           1.1%                   7.8%
 
 
                             NAVIGANT CONSULTING, INC.
                         PRO FORMA STATEMENT OF OPERATIONS
             For the three months ended 03/31/01, 12/31/00 and 03/31/00
            (In thousands, except per share and selected operating data)
                                    (Unaudited)
 
                                                                     Pro forma
                                              Three                    three
                                              months         Pro       months
                                              ended         forma      ended
                                             03/31/00       adjs.     03/31/00
 
     Revenues                                 $65,842         $0     $65,842
     Cost of services                          40,198          0      40,198
          Gross margin                         25,644          0      25,644
     General and administrative expenses       15,019          0      15,019
     Adjusted EBITDA                           10,625          0      10,625
 
     Depreciation                               1,771          0       1,771
     Amortization                               1,130          0       1,130
     VSRP - cash compensation                       0          0           0
     Non-cash stock based compensation            184       (184)          0
     Barrington acquisition costs               1,562     (1,562)          0
     Non-recurring costs                            0          0           0
          Operating income (loss)               5,978      1,746       7,724
     Other income (expense)                        44          0          44
          Pre-tax income (loss)                 6,022      1,746       7,768
     Income taxes                               2,935        698       3,633
     Net income (loss) from continuing
      operations                                3,087      1,048       4,135
 
     Net income (loss) from discontinued
      operations, net of tax                   (7,267)                (7,267)
          Net income (loss)                   ($4,180)               ($3,132)
 
          Adjusted EBITDA per share             $0.26                  $0.26
 
          Cash EPS  - continuing
           operations                           $0.11                  $0.13
 
          EPS -  continuing operations          $0.07                  $0.10
 
 
          Basic shares                         41,119                 41,119
          Diluted shares                       41,170                 41,170
 
     Selected operating data
     (% of Revenues)
     Gross margin                               38.9%                  38.9%
     General and administrative expenses        22.8%                  22.8%
     Adjusted EBITDA                            16.1%                  16.1%
     Operating income (loss)                     9.1%                  11.7%
     Net income (loss) from continuing
      operations
                                                 4.7%                   6.3%
     Net income (loss)                          -6.3%                  -4.8%
 
 
                             NAVIGANT CONSULTING, INC.
         CONDENSED CONSOLIDATED BALANCE SHEETS AND SELECTED OPERATING DATA
                          (In thousands, except DSO data)
                                    (Unaudited)
 
 
                                       March 31,  Dec. 31,  Sept. 30,  June 30,
     Assets                               2001      2000      2000      2000
 
     Cash and cash equivalents           $30,120   $48,798   $34,798    $2,149
     Trade accounts receivable            55,621    55,012    68,380    69,971
     Prepaid and other assets              8,655     7,603    17,274    12,001
     Net assets of discontinued
      operations held for disposition          0         0     4,249    63,557
          Total current assets            94,396   111,413   124,701   147,678
 
     Property and equipment, net          19,526    19,328    20,835    20,573
     Intangible assets, net               34,829    27,523    26,633    29,088
     Other non-current assets, net         5,166     5,218     5,447     5,193
          Total assets                  $153,917  $163,482  $177,616  $202,532
 
     Liabilities and Stockholders'
      equity
     Short-term debt                          $0        $0    $8,950    $5,600
     Current liabilities                  37,173    47,757    38,207    57,336
     Other liabilities                     1,500         0     5,732     5,223
     Stockholders' equity                115,244   115,725   124,727   134,373
     Total liabilities and
      stockholders' equity              $153,917  $163,482  $177,616  $202,532
 
 
     Selected Data
     Days sales outstanding, net (DSO)    80 days   84 days  100 days  108 days
 
 
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 SOURCE  Navigant Consulting, Inc.