Restatement Filing Date
The Company intends to file the restated annual and quarterly financial statements for the Non-Reliance Periods (years ended
December 31, 2016, 2015 and 2014 and the quarters ended March 31, June 30, and September 30in 2015 and 2016 and the quarter ended March 31, 2017) during the first quarter of 2018.
Current Backlog Update
The Company's total estimated backlog at
September 30, 2017was $890 millioncompared to $895 millionat June 30, 2017. Twelve-month backlog was $320 millionat September 30, 2017and at June 30, 2017. Our estimated net bookings for the first nine months of 2017 was $351 millionequating to a book-to-bill ratio of 120%.
2017-2018 Guidance Update
Based on current market conditions and the current backlog amounts described above, the Company expects consulting fee revenue between
$385 millionand $400 millionfor 2017 and between $400 millionand $415 millionfor 2018.
Profit Improvement Plan (PIP) Update
The Company commenced the PIP in
May 2017following the sale of the Construction Claims Group. The Company initially identified gross, annualized pre-tax savings ranging from $27 millionto $38 million. To date, we have reduced our annual labor cost by approximately $17 millionthrough targeted and organizational changes, incurring pre-tax restructuring and other charges of approximately $4 millionthrough October 31, 2017for employee termination benefits and related costs. As a result of the reductions already implemented, the partial year gross savings through December 31, 2017will be approximately $8 million, with expected annual gross savings of approximately $32 millionin 2018 increasing to approximately $38 millionin 2019 and beyond. The Company continues to seek additional cost savings opportunities and expects to substantially complete the PIP during the second quarter of 2018.
As previously disclosed, and in connection with the accounting for the
Certain statements contained herein may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and it is our intent that any such statements be protected by the safe harbor created thereby. Except for historical information, the matters set forth herein including, but not limited to, any projections of revenues, earnings, profit improvement, cost savings or other financial items; any statements concerning our plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties. Although we believe that the expectations, estimates and assumptions reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results to differ materially from estimates or projections contained in our forward-looking statements are set forth in the Risk Factors section and elsewhere in the reports we have filed with the Securities and Exchange Commission, including that unfavorable global economic conditions may adversely impact our business, our backlog may not be fully realized as revenue, we may incur difficulties in implementing the PIP, our expenses may be higher than anticipated, and the review of the Company's accounting, accounting policies and internal control over financial reporting, and the preparation of and the audit or review, as applicable, of restated filings may take longer than currently anticipated or additional restatement adjustments may be identified. We do not intend, and undertake no obligation, to update any forward-looking statement.
Senior Vice President
One Commerce Square
SVP & Interim Chief Financial Officer
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