Navigant Back In Black For 3Q

Navigant International today reported net income of $5.7 million for the third quarter ending Sept. 30, improving on its $5.3 million loss in the third quarter of 2001. The Denver-based agency saw revenues climb 2.6 percent year over year, to $92.4 million, while it cut operating expenses to $49.7 million, from $57.4 million. Navigant officials said the company also concentrated on paying down significant debt in the third quarter.

According to Edward Adams, chairman and CEO, "The past 12 months have been a challenging period for the travel industry, one that has tested both our transaction-based business model and our ability to manage the operating costs of our business to the current environment."

Navigant in a press statement said that September 2002 transactions "paced lower as a percentage of 2000 levels than July and August transactions," and that "transactions for existing clients remain at about 80 percent of 2000 levels." Early indications for October keep pace with this percentage. According to Adams, retention of its "highly managed" customers is at 97 percent. The company cited "the resiliency of our operating structure and our highly diversified customer base" in helping it emerge with a profit. Navigant said it is "on track" to earn about $9.5 million in the December quarter, despite slightly lower-than-expected revenues.