Navigant Consulting Inc. (NYSE:NCI) Q2 2017 Earnings Conference Call - Final Transcript
Jul 31, 2017 • 10:00 am ET
Good morning and Welcome to Navigant's Second Quarter 2017 Earnings Conference Call. At this time I'd would like to inform all participants their lines will be on listen only until the question and answer portion of the call This call is being recorded. If you have any objections, you may disconnect at this time. I would like to introduce Ms. Jennifer Moreno Reddick, Interim Director of Investor Relations for Navigant.
Ms. Moreno Reddick, you may begin.
Good morning and welcome to Navigant's Second Quarter 2017 Earnings Conference Call. We have posted our earnings release as well as supplemental information about the quarter on the Investor Relations section of our website. Before I turn the call over to Julie Howard, Navigant's Chairman and Chief Executive Officer, I would like to highlight the disclosure at the end of our earnings release for information about any forward-looking statements that may be made or discussed on this call.
Please review this information and the reconciliations in the schedules attached to the press release along with the risk factors included in the company's 2016 annual report for potential factors which could affect the company's financial results and cause our actual results to differ materially from those contained in or implied by any forward-looking statements.
I will now turn the call over to Julie Howard.
Good morning and welcome to our second quarter 2017 earnings results call. Thank you for taking time to join us today. I am going to provide some color on our second quarter performance and will then turn the call over to Stephen Lieberman, our Chief Financial Officer, to review our financial results in greater detail and walk you through our revised guidance.
We look forward to the Q&A portion of the call today, so that we can respond to your specific questions. Stephen, Lee Spirer and I will be available during Q&A. For the benefit of this call, I will assume that you have reviewed our Q2 press release. Clearly, we had an unexpected and disappointing quarter with respect to our performance which was below our plan and expectations and those of our investor base.
Several unrelated shifts in the demand environment coalesced in this quarter, creating revenue pressures in each of our segments. At a high level, uncertainty in regulatory focus coupled with inactivity stemming from shifting priorities driven by the US administration along with the normal quarterly ups and downs of our project-based work caused delays in both the sales cycle and the implementation time line of numerous projects.
While we did experience growth in two of our segments, Healthcare and Energy, these factors impacted all of our four business segments relative to our expectations. Demand for our services started out weaker early in the quarter, but improved throughout the quarter. We took immediate performance improvement actions, including staff reductions in our businesses and a variety of cost-reduction measures to better align our expense base to revenue potential.
Our performance improvement actions were necessary, but we were also careful to