Hewitt Associates, Inc. F4Q08 (Qtr End 9/30/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-11-14 12:17:13.0

Tags: Call Transcript, Hewitt Associates Inc., Earnings, Citigroup Inc., Taxes, Benefits, Operational Accounting, Free Trade, Financial Planning, Finance, Human Resources, Seeking Alpha, Call Transcript, Hewitt Associates Inc., Earnings, Citigroup Inc., Taxes, Benefits, Operational Accounting, Free Trade, Financial Planning, Finance, Human Resources, Seeking Alpha, Hewitt Associates LLC

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Ashwin Shirvaikar - Citigroup Investment.

Ashwin Shirvaikar - Citigroup Investment

I'm trying to get to a normalized free cash flow estimate going forward if possible, so if you could help me with a couple of items like, you know, what kind of benefit do you expect to see from the cost actions you've taken, what's your D&A, what's your CapEx, if you could put some numbers on those?

John J. Park

Well, Ashwin, we gave you some indication of what we expect for next year, and as a practice I don't think I want to go much further than that in the outgoing years on CapEx.

What I will tell you, to add a little bit of flavor, is that I think we're probably back up to CapEx levels that are more normal to the business. I think that last year was unusually low - or, I'm sorry, FY 2007 was unusually low because we were really resetting our strategy and we really held back on making any significant capital investments at the time. And there was a bit of a hiatus in terms of new contract activity.

I think we're now back to being very bullish on new Benefit Outsourcing contracts, selectively signing some MPHRO contracts, and getting back to what's a more normal level of investment in our information technology infrastructure.

And I'd say in terms of depreciation and amortization, we have seen a fairly steady falloff of D&A over the past couple of years. That's going to happen, but at a more moderate rate than what you've seen recently.

And I think tax payments will continue to be up or down based upon the timing of refunds and payments. It's a very difficult thing to forecast, but I don't see anything unusual happening with our tax payments over a longer term period.

Operator

Your next question comes from Shlomo Rosenbaum - Stifel Nicolaus & Company, Inc.

Shlomo Rosenbaum - Stifel Nicolaus & Company, Inc.

I just want to ask two things. Number one, in the Benefit Outsourcing business, on the margins you talked about some large complex projects that were sort of weighing on the margins. I want to know if it was complexity that you guys had anticipated or are there any challenges on the implementations? That's one side. And the other side is was there anything unusual on the Consulting business that made the revenue growth be that high? It's really higher than any of your competitors in this space and you seem to be doing a very good job there.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement