NEW YORK, Jan. 24, 2018 /PRNewswire/ -- Engine Capital
LP (together with its affiliates, "Engine"), a shareholder of
Navigant Consulting, Inc. ("NCI" or the "Company") (NYSE: NCI),
with ownership of approximately 4.4% of the outstanding shares of
the Company, today announced that it has delivered a letter to
Navigant's Board of Directors.
Engine believes NCI is a good business with a strong brand, an
attractive long-term growth profile, a growing base of recurrent
revenue, and significant free cash flow generation. However,
despite these attractive features, the Company trades at a very low
absolute and relative valuation, with NCI trading at approximately
6.9x 2018E EBITDA1. Additionally, NCI's total
shareholder return has lagged its peers as well as every relevant
index over the last one, three and five-year timeframe.
Engine believes two avenues exist for the Board to significantly
increase shareholder value. One option is for NCI to remain a
standalone public company, but with an intense focus on improving
its margins, reducing its working capital, reducing its capital
expenditures, optimizing its balance sheet and capital allocation,
aligning executive compensation with the most relevant metrics for
shareholder value creation and strengthening its corporate
governance and board composition. The other option is to initiate a
review of the Company's strategic alternatives and explore what
buyers may be willing to pay for NCI in the current robust M&A
market. Engine believes that both paths would lead to significant
shareholder value creation.
Over the last couple of months, Engine has engaged in a dialogue
with the Board and management regarding these topics and was hoping
to reach an amicable resolution regarding a Board refreshment.
Given the Company's unwillingness to discuss a framework to achieve
that objective, we have decided to publicly outline our views on
NCI and the significant opportunities for value creation. It is
Engine's current intention to nominate director candidates at
Navigant's 2018 Annual Meeting.
Please click the following link to access the full letter:
https://mma.prnewswire.com/media/632708/Engine_Letter_to_NCI_Board.pdf
ABOUT ENGINE CAPITAL
Engine Capital is a value-oriented special situations fund that
invests both actively and passively in companies undergoing
change.
Investor contact:
Engine Capital, L.P.
Arnaud Ajdler
(212) 321-0048
aajdler@enginecap.com
1 Assumes 2018 EBITDA of $146.5 million and Q4 free cash flow generation
of $70 million including working
capital normalization
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SOURCE Engine Capital LP