Tim McHugh's questions to Neo-Concept International Group Holdings (NCI) leadership • Q1 2019
Question
Tim McHugh sought clarification on the adjusted EPS calculation, specifically how the minority interest from the HSS joint venture was treated. He also asked about the magnitude of performance fees in the managed services business to understand the normalized trend, and questioned the reason for the sequential decline in the Energy segment's consultant headcount.
Answer
CFO Stephen Lieberman confirmed the adjusted EPS figure includes 100% of HSS operations, consistent with guidance, and explained how to back out the minority interest. He noted that while Q1 performance fees were exceptionally strong, the $1 million portion was a timing issue from 2018 and such high levels shouldn't be expected quarterly. CEO Julie Howard and Lieberman clarified the headcount change was a reclassification of analytics professionals into a new central group, not a reduction in staff.