Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of
business consulting services, today announced financial results for the
first quarter ended March 31, 2013.
“Huron’s first quarter results were a solid start to 2013, primarily due
to the continuing challenges within our clients’ markets,” said James H.
Roth, chief executive officer and president, Huron Consulting Group.
“Uncertainties brought about by healthcare reform, reimbursement issues,
and the competitive environment facing most hospitals and academic
medical centers provide an opportune base for us to deliver value to our
provider clients. Colleges and universities are also facing a rapidly
changing competitive environment. Collectively, these factors give us
confidence that demand for our services will continue at a solid pace
throughout 2013.”
First Quarter 2013 Results
The following information is reported on a “continuing operations” basis
unless otherwise noted.
Revenues for the first quarter of 2013 were $164.0 million, an increase
of 18.3% compared to $138.6 million for the first quarter of 2012. The
Company's first quarter 2013 operating income was $21.3 million,
compared to $3.6 million in the first quarter of 2012. Net income from
continuing operations was $11.4 million, or $0.51 per diluted share, for
the first quarter of 2013 compared to $0.6 million, or $0.03 per diluted
share, for the same period last year. Net income was $11.3 million, or
$0.50 per diluted share, for the first quarter of 2013, compared to $0.9
million, or $0.04 per diluted share, for the same period last year.
First quarter 2013 earnings before interest, taxes, depreciation and
amortization ("EBITDA")(6) was $26.8 million, or
16.3% of revenues, compared to $9.4 million, or 6.8% of revenues, in the
comparable quarter last year.
In addition to using EBITDA to evaluate the Company’s financial
performance, management uses non-GAAP financial measures, which exclude
the effect of the following items (in thousands):
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Amortization of intangible assets
|
|
$
|
1,456
|
|
|
$
|
1,619
|
|
|
Restatement related expenses
|
|
$
|
—
|
|
|
$
|
1,505
|
|
|
Restructuring charges
|
|
$
|
—
|
|
|
$
|
830
|
|
|
Litigation settlement gain
|
|
$
|
(1,150
|
)
|
|
$
|
—
|
|
|
Tax effect
|
|
$
|
(122
|
)
|
|
$
|
(1,582
|
)
|
The Company recorded a $1.15 million litigation settlement gain during
the first quarter of 2013. The Company had previously recorded a $1.15
million charge in the second quarter of 2012 related to settlement
discussions in a lawsuit filed against Huron and others by Associates
Against Outlier Fraud. In March 2013, the court granted Huron’s motion
for summary judgment and dismissed the second amended complaint in its
entirety with prejudice. As a result, the Company reversed the $1.15
million charge taken in 2012. The plaintiff filed an appeal and the
Company filed a cross appeal of an earlier denial of a motion to dismiss
filed by Huron.
Adjusted EBITDA(6) was $25.6 million, or 15.6% of revenues,
in the first quarter of 2013, compared to $11.8 million, or 8.5% of
revenues, in the comparable quarter last year. Adjusted net income(6)
from continuing operations was $11.6 million, or $0.51 per diluted share
for the first quarter of 2013 compared to $3.0 million, or $0.13 per
diluted share, for the comparable period in 2012.
The average number of full-time billable consultants(1) was
1,501 in the first quarter of 2013 compared to 1,294 in the same quarter
last year. Full-time billable consultant utilization rate(2)
was 77.9% during the first quarter of 2013 compared with 77.8% during
the same period last year. Average billing rate per hour for full-time
billable consultants(3) was $212 for the first quarter of
2013 compared to $203 for the first quarter of 2012. The average number
of full-time equivalent professionals(4) totaled 1,186 in the
first quarter of 2013 compared to 989 for the comparable period in 2012.
Operating Segments
Huron’s results reflect a portfolio of service offerings focused on
helping clients address complex business challenges.
In the first quarter of 2013, the Company reorganized its internal
financial reporting structure. Under the new structure, the Company now
reports information as five operating segments: Huron Healthcare; Huron
Legal; Huron Education and Life Sciences; Huron Financial; and All Other.
The Company’s year-to-date revenues by operating segment are as follows:
Huron Healthcare (48%); Huron Legal (25%); Huron Education and Life
Sciences (22%); and Huron Financial (5%). Financial results by segment
are included in the attached schedules and in Huron's forthcoming Form
10-Q filing for the quarter ended March 31, 2013.
Outlook for 2013
Based on currently available information, the Company affirmed guidance,
which was previously announced on February 20, 2013, for full year 2013
revenues before reimbursable expenses in a range of $655.0 million to
$685.0 million. The Company also anticipates EBITDA in a range of $118.5
million to $127.0 million, Adjusted EBITDA in a range of $120.5 million
to $129.0 million, GAAP diluted earnings per share in a range of $2.25
to $2.45, and non-GAAP adjusted diluted earnings per share in a range of
$2.45 to $2.65.
Management will provide a more detailed discussion of its outlook during
the Company’s earnings conference call webcast.
First Quarter 2013 Webcast
The Company will host a webcast to discuss its financial results today,
April 25, 2013, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time). The
conference call is being webcast by ThomsonReuters and can be accessed
at Huron Consulting Group’s website at http://ir.huronconsultinggroup.com.
A replay will be available approximately two hours after the conclusion
of the webcast and for 90 days thereafter.
About Huron Consulting Group
Huron Consulting Group helps clients in diverse industries improve
performance, reduce costs, leverage technology, process and review large
amounts of complex data, address regulatory changes, recover from
distress and stimulate growth. Our professionals employ their expertise
in administration, management, finance and operations to provide our
clients with specialized analyses and customized advice and solutions
that are tailored to address each client's particular challenges and
opportunities to deliver sustainable and measurable results. The Company
provides consulting services to a wide variety of both financially sound
and distressed organizations, including healthcare organizations,
leading academic institutions, Fortune 500 companies, governmental
entities and law firms. Huron has worked with more than 95 of the top
100 research universities, more than 400 corporate general counsel, and
more than 385 hospitals and academic medical centers. Learn more at www.huronconsultinggroup.com.
Use of Non-GAAP Financial Measures(6)
In evaluating the Company’s financial performance and outlook,
management uses EBITDA, Adjusted EBITDA, Adjusted EBITDA as a percentage
of revenues, adjusted net income from continuing operations and adjusted
diluted earnings per share from continuing operations, which are
non-GAAP measures. Management believes that such measures, as
supplements to operating income, net income from continuing operations
and diluted earnings per share from continuing operations and other GAAP
measures, are useful indicators for investors. These useful indicators
can help readers gain a meaningful understanding of our core operating
results and future prospects. Investors should recognize that these
non-GAAP measures might not be comparable to similarly titled measures
of other companies. These measures should be considered in addition to,
and not as a substitute for or superior to, any measure of performance,
cash flows or liquidity prepared in accordance with accounting
principles generally accepted in the United States.
Statements in this press release, including the information
incorporated by reference herein, that are not historical in nature,
including those concerning the Company’s current expectations about its
future requirements and needs, are “forward-looking” statements as
defined in Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are identified by words
such as “may,” “should,” “expects,” “provides,” “anticipates,”
“assumes,” “can,” “meets,” “could,” “intends,” “might,” “predicts,”
“seeks,” “would,” “believes,” “estimates,” “plans” or “continues.” These
forward-looking statements reflect our current expectation about our
future requirements and needs, results, levels of activity, performance,
or achievements, including, without limitation, current expectations
with respect to, among other factors, utilization rates, billing rates,
and the number of revenue-generating professionals; that we are able to
expand our service offerings; that we successfully integrate the
businesses we acquire; and that existing market conditions continue to
trend upward. These statements involve known and unknown risks,
uncertainties and other factors, including, among others, those
described under “Item 1A. Risk Factors” in our Annual Report on Form
10-K for the year ended December 31, 2012 that may cause actual results,
levels of activity, performance or achievements to be materially
different from any anticipated results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements. We disclaim any obligation to update or revise any
forward-looking statements as a result of new information or future
events, or for any other reason.
|
HURON CONSULTING GROUP INC.
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2013
|
|
2012
|
|
Revenues and reimbursable expenses:
|
|
|
|
|
|
Revenues
|
|
$
|
164,036
|
|
|
$
|
138,637
|
|
|
Reimbursable expenses
|
|
|
15,336
|
|
|
|
13,796
|
|
|
Total revenues and reimbursable expenses
|
|
|
179,372
|
|
|
|
152,433
|
|
|
Direct costs and reimbursable expenses (exclusive of
depreciation
|
|
|
|
|
|
and amortization shown in operating expenses):
|
|
|
|
|
|
Direct costs
|
|
|
106,128
|
|
|
|
96,781
|
|
|
Amortization of intangible assets and software development costs
|
|
|
658
|
|
|
|
1,142
|
|
|
Reimbursable expenses
|
|
|
15,351
|
|
|
|
13,818
|
|
|
Total direct costs and reimbursable expenses
|
|
|
122,137
|
|
|
|
111,741
|
|
|
Operating expenses:
|
|
|
|
|
|
Selling, general and administrative
|
|
|
32,263
|
|
|
|
30,067
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
830
|
|
|
Restatement related expenses
|
|
|
-
|
|
|
|
1,505
|
|
|
Litigation settlement gain
|
|
|
(1,150
|
)
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
4,779
|
|
|
|
4,653
|
|
|
Total operating expenses
|
|
|
35,892
|
|
|
|
37,055
|
|
|
Operating income
|
|
|
21,343
|
|
|
|
3,637
|
|
|
Other income (expense), net:
|
|
|
|
|
|
Interest expense, net of interest income
|
|
|
(1,863
|
)
|
|
|
(1,866
|
)
|
|
Other income, net
|
|
|
13
|
|
|
|
333
|
|
|
Total other expense, net
|
|
|
(1,850
|
)
|
|
|
(1,533
|
)
|
|
Income from continuing operations before income tax expense
|
|
|
19,493
|
|
|
|
2,104
|
|
|
Income tax expense
|
|
|
8,124
|
|
|
|
1,517
|
|
|
Net income from continuing operations
|
|
|
11,369
|
|
|
|
587
|
|
|
(Loss) income from discontinued operations, net of tax
|
|
|
(32
|
)
|
|
|
269
|
|
|
Net income
|
|
$
|
11,337
|
|
|
$
|
856
|
|
|
|
|
|
|
|
|
Net earnings per basic share:
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
0.51
|
|
|
$
|
0.03
|
|
|
Income from discontinued operations, net of tax
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
Net income
|
|
$
|
0.51
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
Net earnings per diluted share:
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
0.51
|
|
|
$
|
0.03
|
|
|
Income from discontinued operations, net of tax
|
|
$
|
(0.01
|
)
|
|
$
|
0.01
|
|
|
Net income
|
|
$
|
0.50
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating earnings per share:
|
|
|
|
|
|
Basic
|
|
|
22,139
|
|
|
|
21,775
|
|
|
Diluted
|
|
|
22,487
|
|
|
|
22,164
|
|
|
HURON CONSULTING GROUP INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
2013
|
|
December 31,
2012
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
5,749
|
|
|
$
|
25,162
|
|
|
Receivables from clients, net
|
|
|
101,549
|
|
|
|
97,510
|
|
|
Unbilled services, net
|
|
|
59,123
|
|
|
|
47,232
|
|
|
Income tax receivable
|
|
|
1,003
|
|
|
|
192
|
|
|
Deferred income taxes, net
|
|
|
9,631
|
|
|
|
14,751
|
|
|
Prepaid expenses and other current assets
|
|
|
13,914
|
|
|
|
15,525
|
|
|
Total current assets
|
|
|
190,969
|
|
|
|
200,372
|
|
|
Property and equipment, net
|
|
|
33,269
|
|
|
|
33,805
|
|
|
Other non-current assets
|
|
|
15,584
|
|
|
|
15,322
|
|
|
Intangible assets, net
|
|
|
17,337
|
|
|
|
18,879
|
|
|
Goodwill
|
|
|
518,916
|
|
|
|
519,522
|
|
|
Total assets
|
|
$
|
776,075
|
|
|
$
|
787,900
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,978
|
|
|
$
|
8,461
|
|
|
Accrued expenses
|
|
|
15,786
|
|
|
|
17,692
|
|
|
Accrued payroll and related benefits
|
|
|
32,869
|
|
|
|
61,672
|
|
|
Bank borrowings, current portion
|
|
|
25,000
|
|
|
|
-
|
|
|
Accrued consideration for business acquisitions, current portion
|
|
|
5,586
|
|
|
|
5,640
|
|
|
Income tax payable
|
|
|
165
|
|
|
|
7,872
|
|
|
Deferred revenues
|
|
|
15,345
|
|
|
|
15,388
|
|
|
Total current liabilities
|
|
|
101,729
|
|
|
|
116,725
|
|
|
Non-current liabilities:
|
|
|
|
|
|
Deferred compensation and other liabilities
|
|
|
7,140
|
|
|
|
6,973
|
|
|
Bank borrowings, net of current portion
|
|
|
177,500
|
|
|
|
192,500
|
|
|
Deferred lease incentives
|
|
|
6,874
|
|
|
|
6,936
|
|
|
Deferred income taxes
|
|
|
15,784
|
|
|
|
14,560
|
|
|
Accrued consideration for business acquisitions, net of current
portion
|
|
|
4,956
|
|
|
|
4,885
|
|
|
Total non-current liabilities
|
|
|
212,254
|
|
|
|
225,854
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
Common stock; $0.01 par value; 500,000,000 shares authorized;
|
|
|
|
|
|
25,184,665 and 24,793,327 shares issued at March 31, 2013
|
|
|
|
|
|
and December 31, 2012, respectively
|
|
|
243
|
|
|
|
240
|
|
|
Treasury stock, at cost, 1,893,745 and 1,880,809 shares at
|
|
|
|
|
|
March 31, 2013 and December 31, 2012, respectively
|
|
|
(84,137
|
)
|
|
|
(83,715
|
)
|
|
Additional paid-in capital
|
|
|
427,607
|
|
|
|
420,825
|
|
|
Retained earnings
|
|
|
120,667
|
|
|
|
109,330
|
|
|
Accumulated other comprehensive loss
|
|
|
(2,288
|
)
|
|
|
(1,359
|
)
|
|
Total stockholders’ equity
|
|
|
462,092
|
|
|
|
445,321
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
776,075
|
|
|
$
|
787,900
|
|
|
HURON CONSULTING GROUP INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2013
|
|
2012
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
11,337
|
|
|
$
|
856
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
5,437
|
|
|
|
6,621
|
|
|
Share-based compensation
|
|
|
4,635
|
|
|
|
4,842
|
|
|
Allowances for doubtful accounts and unbilled services
|
|
|
6,953
|
|
|
|
2,246
|
|
|
Deferred income taxes
|
|
|
6,083
|
|
|
|
3,344
|
|
|
Changes in operating assets and liabilities, net of businesses
acquired:
|
|
|
|
|
|
(Increase) decrease in receivables from clients
|
|
|
(4,742
|
)
|
|
|
2,133
|
|
|
(Increase) decrease in unbilled services
|
|
|
(18,423
|
)
|
|
|
4,456
|
|
|
(Increase) decrease in current income tax receivable / payable, net
|
|
|
(8,513
|
)
|
|
|
2,379
|
|
|
(Increase) decrease in other assets
|
|
|
2,459
|
|
|
|
1,853
|
|
|
Increase (decrease) in accounts payable and accrued liabilities
|
|
|
(3,000
|
)
|
|
|
3,492
|
|
|
Increase (decrease) in accrued payroll and related benefits
|
|
|
(27,018
|
)
|
|
|
(36,795
|
)
|
|
Increase (decrease) in deferred revenues
|
|
|
(34
|
)
|
|
|
(7,978
|
)
|
|
Net cash used in operating activities
|
|
|
(24,826
|
)
|
|
|
(12,551
|
)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment, net
|
|
|
(3,576
|
)
|
|
|
(5,267
|
)
|
|
Net investment in life insurance policies
|
|
|
(507
|
)
|
|
|
(361
|
)
|
|
Purchases of businesses, net of cash acquired
|
|
|
-
|
|
|
|
(31,298
|
)
|
|
Capitalization of internally developed software
|
|
|
(692
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(4,775
|
)
|
|
|
(36,926
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
27
|
|
|
|
29
|
|
|
Shares redeemed for employee tax withholdings
|
|
|
(565
|
)
|
|
|
(3,710
|
)
|
|
Tax benefit from share-based compensation
|
|
|
803
|
|
|
|
1,116
|
|
|
Proceeds from borrowings under credit facility
|
|
|
22,000
|
|
|
|
93,000
|
|
|
Repayments on credit facility
|
|
|
(12,000
|
)
|
|
|
(42,500
|
)
|
|
Payments of capital lease obligations
|
|
|
-
|
|
|
|
(5
|
)
|
|
Net cash provided by financing activities
|
|
|
10,265
|
|
|
|
47,930
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(77
|
)
|
|
|
430
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(19,413
|
)
|
|
|
(1,117
|
)
|
|
Cash and cash equivalents at beginning of the period
|
|
|
25,162
|
|
|
|
5,080
|
|
|
Cash and cash equivalents at end of the period
|
|
$
|
5,749
|
|
|
$
|
3,963
|
|
|
HURON CONSULTING GROUP INC.
|
|
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Percent
Increase
(Decrease)
|
|
Segment and Consolidated Operating Results (in thousands):
|
|
2013
|
|
2012
|
|
|
Huron Healthcare:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
78,745
|
|
|
$
|
63,465
|
|
|
24.1
|
%
|
|
Operating income
|
|
$
|
31,161
|
|
|
$
|
15,838
|
|
|
96.7
|
%
|
|
Segment operating income as a percent of segment revenues
|
|
|
39.6
|
%
|
|
|
25.0
|
%
|
|
|
|
Huron Legal:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
40,944
|
|
|
$
|
41,383
|
|
|
(1.1
|
%)
|
|
Operating income
|
|
$
|
2,938
|
|
|
$
|
9,511
|
|
|
(69.1
|
%)
|
|
Segment operating income as a percent of segment revenues
|
|
|
7.2
|
%
|
|
|
23.0
|
%
|
|
|
|
Huron Education and Life Sciences:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
35,726
|
|
|
$
|
27,676
|
|
|
29.1
|
%
|
|
Operating income
|
|
$
|
9,352
|
|
|
$
|
6,458
|
|
|
44.8
|
%
|
|
Segment operating income as a percent of segment revenues
|
|
|
26.2
|
%
|
|
|
23.3
|
%
|
|
|
|
Huron Financial:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
8,582
|
|
|
$
|
5,849
|
|
|
46.7
|
%
|
|
Operating income
|
|
$
|
3,379
|
|
|
$
|
233
|
|
|
N/M
|
|
|
Segment operating income as a percent of segment revenues
|
|
|
39.4
|
%
|
|
|
4.0
|
%
|
|
|
|
All Other:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
39
|
|
|
$
|
264
|
|
|
(85.2
|
%)
|
|
Operating loss
|
|
$
|
(172
|
)
|
|
$
|
(799
|
)
|
|
(78.5
|
%)
|
|
Segment operating loss as a percent of segment revenues
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
Total Company:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
164,036
|
|
|
$
|
138,637
|
|
|
18.3
|
%
|
|
Reimbursable expenses
|
|
|
15,336
|
|
|
|
13,796
|
|
|
11.2
|
%
|
|
Total revenues and reimbursable expenses
|
|
$
|
179,372
|
|
|
$
|
152,433
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
Statement of Earnings reconciliation:
|
|
|
|
|
|
|
|
Segment operating income
|
|
$
|
46,658
|
|
|
$
|
31,241
|
|
|
49.3
|
%
|
|
Charges not allocated at the segment level:
|
|
|
|
|
|
|
|
Other selling, general and administrative expenses
|
|
|
20,536
|
|
|
|
22,951
|
|
|
(10.5
|
%)
|
|
Depreciation and amortization expense
|
|
|
4,779
|
|
|
|
4,653
|
|
|
2.7
|
%
|
|
Total operating income
|
|
|
21,343
|
|
|
|
3,637
|
|
|
486.8
|
%
|
|
Other expense, net
|
|
|
1,850
|
|
|
|
1,533
|
|
|
20.7
|
%
|
|
Income from continuing operations before income tax expense
|
|
$
|
19,493
|
|
|
$
|
2,104
|
|
|
826.5
|
%
|
|
|
|
|
|
|
|
|
|
Other Operating Data (excluding All Other):
|
|
|
|
|
|
|
|
Number of full-time billable consultants (at period end)
(1):
|
|
|
|
|
|
|
|
Huron Healthcare (5) |
|
|
870
|
|
|
|
809
|
|
|
7.5
|
%
|
|
Huron Legal
|
|
|
151
|
|
|
|
118
|
|
|
28.0
|
%
|
|
Huron Education and Life Sciences
|
|
|
436
|
|
|
|
328
|
|
|
32.9
|
%
|
|
Huron Financial
|
|
|
62
|
|
|
|
67
|
|
|
(7.5
|
%)
|
|
Total
|
|
|
1,519
|
|
|
|
1,322
|
|
|
14.9
|
%
|
|
Average number of full-time billable consultants (for the period) (1):
|
|
|
|
|
|
|
|
Huron Healthcare (5) |
|
|
863
|
|
|
|
788
|
|
|
|
|
Huron Legal
|
|
|
146
|
|
|
|
116
|
|
|
|
|
Huron Education and Life Sciences
|
|
|
430
|
|
|
|
322
|
|
|
|
|
Huron Financial
|
|
|
62
|
|
|
|
68
|
|
|
|
|
Total
|
|
|
1,501
|
|
|
|
1,294
|
|
|
|
|
Full-time billable consultant utilization rate (2):
|
|
|
|
|
|
|
|
Huron Healthcare (5) |
|
|
85.6
|
%
|
|
|
83.2
|
%
|
|
|
|
Huron Legal
|
|
|
52.0
|
%
|
|
|
70.7
|
%
|
|
|
|
Huron Education and Life Sciences
|
|
|
70.0
|
%
|
|
|
70.8
|
%
|
|
|
|
Huron Financial
|
|
|
84.7
|
%
|
|
|
59.6
|
%
|
|
|
|
Total
|
|
|
77.9
|
%
|
|
|
77.8
|
%
|
|
|
|
HURON CONSULTING GROUP INC.
|
|
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Other Operating Data (continued):
|
|
2013
|
|
2012
|
|
Full-time billable consultant average billing rate per hour (3):
|
|
|
|
|
|
Huron Healthcare (5) |
|
$
|
205
|
|
$
|
192
|
|
Huron Legal
|
|
$
|
222
|
|
$
|
234
|
|
Huron Education and Life Sciences
|
|
$
|
206
|
|
$
|
212
|
|
Huron Financial
|
|
$
|
331
|
|
$
|
275
|
|
Total
|
|
$
|
212
|
|
$
|
203
|
|
Revenue per full-time billable consultant (in thousands):
|
|
|
|
|
|
Huron Healthcare (5) |
|
$
|
85
|
|
$
|
74
|
|
Huron Legal
|
|
$
|
53
|
|
$
|
80
|
|
Huron Education and Life Sciences
|
|
$
|
70
|
|
$
|
73
|
|
Huron Financial
|
|
$
|
135
|
|
$
|
81
|
|
Total
|
|
$
|
79
|
|
$
|
74
|
|
Average number of full-time equivalents (for the period) (4):
|
|
|
|
|
|
Huron Healthcare (5) |
|
|
56
|
|
|
62
|
|
Huron Legal
|
|
|
1,089
|
|
|
897
|
|
Huron Education and Life Sciences
|
|
|
39
|
|
|
28
|
|
Huron Financial
|
|
|
2
|
|
|
2
|
|
Total
|
|
|
1,186
|
|
|
989
|
|
Revenue per full-time equivalents (in thousands):
|
|
|
|
|
|
Huron Healthcare (5) |
|
$
|
104
|
|
$
|
88
|
|
Huron Legal
|
|
$
|
31
|
|
$
|
36
|
|
Huron Education and Life Sciences
|
|
$
|
151
|
|
$
|
145
|
|
Huron Financial
|
|
$
|
149
|
|
$
|
187
|
|
Total
|
|
$
|
38
|
|
$
|
43
|
|
(1)
|
|
Consists of our full-time professionals who provide consulting
services and generate revenues based on the number of hours worked.
|
|
|
|
|
|
(2)
|
|
Utilization rate for our full-time billable consultants is
calculated by dividing the number of hours all our full-time
billable consultants worked on client assignments during a period by
the total available working hours for all of these consultants
during the same period, assuming a forty-hour work week, less paid
holidays and vacation days.
|
|
|
|
|
|
(3)
|
|
Average billing rate per hour for our full-time billable consultants
is calculated by dividing revenues for a period by the number of
hours worked on client assignments during the same period.
|
|
|
|
|
|
(4)
|
|
Consists of consultants who work variable schedules as needed by our
clients, as well as contract reviewers and other professionals who
generate revenues primarily based on number of hours worked and
units produced, such as pages reviewed and data processed. Also
includes full-time employees who provide software support and
maintenance services to our clients.
|
|
|
|
|
|
(5)
|
|
Effective January 1, 2013, a group within the Huron Healthcare
segment that provides post-implementation services that was
previously classified as full-time equivalents will be classified as
full-time billable consultants due to the evolving nature of the
services that they offer. Prior periods have been restated to
reflect this change.
|
|
|
|
|
|
N/M
|
|
– Not meaningful
|
|
HURON CONSULTING GROUP INC.
|
|
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO
|
|
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION (6)
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2013
|
|
2012
|
|
Revenues
|
|
$
|
164,036
|
|
|
$
|
138,637
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
11,369
|
|
|
$
|
587
|
|
|
Add back:
|
|
|
|
|
|
Income tax expense
|
|
|
8,124
|
|
|
|
1,517
|
|
|
Interest and other expenses
|
|
|
1,850
|
|
|
|
1,533
|
|
|
Depreciation and amortization
|
|
|
5,437
|
|
|
|
5,795
|
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA) (6) |
|
|
26,780
|
|
|
|
9,432
|
|
|
Add back:
|
|
|
|
|
|
Restatement related expenses
|
|
|
-
|
|
|
|
1,505
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
830
|
|
|
Litigation settlement gain
|
|
|
(1,150
|
)
|
|
|
-
|
|
|
Adjusted EBITDA (6) |
|
$
|
25,630
|
|
|
$
|
11,767
|
|
|
Adjusted EBITDA as a percentage of revenues (6) |
|
|
15.6
|
%
|
|
|
8.5
|
%
|
|
HURON CONSULTING GROUP INC.
|
|
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS
|
|
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (6)
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Net income from continuing operations
|
|
$
|
11,369
|
|
|
$
|
587
|
|
|
Weighted average shares - diluted
|
|
|
22,487
|
|
|
|
22,164
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.51
|
|
|
$
|
0.03
|
|
|
Add back:
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
1,456
|
|
|
|
1,619
|
|
|
Restatement related expenses
|
|
|
-
|
|
|
|
1,505
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
830
|
|
|
Litigation settlement gain
|
|
|
(1,150
|
)
|
|
|
-
|
|
|
Tax effect
|
|
|
(122
|
)
|
|
|
(1,582
|
)
|
|
Total adjustments, net of tax
|
|
|
184
|
|
|
|
2,372
|
|
|
Adjusted net income from continuing operations (6) |
|
$
|
11,553
|
|
|
$
|
2,959
|
|
|
Adjusted diluted earnings per share from continuing operations (6) |
|
$
|
0.51
|
|
|
$
|
0.13
|
|
|
(6)
|
|
In evaluating the Company’s financial performance, management uses
earnings before interest, taxes, depreciation and amortization
(“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of
revenues, adjusted net income from continuing operations, and
adjusted diluted earnings per share from continuing operations,
which are non-GAAP measures. Our management uses these non-GAAP
financial measures to gain an understanding of our comparative
operating performance (when comparing such results with previous
periods or forecasts). These non-GAAP financial measures are used by
management in their financial and operating decision making because
management believes they reflect our ongoing business in a manner
that allows for meaningful period-to-period comparisons. Management
also uses these non-GAAP financial measures when publicly providing
our business outlook, for internal management purposes, and as a
basis for evaluating potential acquisitions and dispositions. We
believe that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
Huron’s current operating performance and future prospects in the
same manner as management does, if they so choose, and in comparing
in a consistent manner Huron’s current financial results with
Huron’s past financial results. Investors should recognize that
these non-GAAP measures might not be comparable to similarly titled
measures of other companies. These measures should be considered in
addition to, and not as a substitute for or superior to, any measure
of performance, cash flows or liquidity prepared in accordance with
accounting principles generally accepted in the United States.
|
