Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of
business consulting services, today announced preliminary unaudited
financial results for the full year ended December 31, 2013.
Based on preliminary unaudited financial results, the Company expects
full year 2013 revenues before reimbursable expenses in a range of
$718.0 million to $720.5 million, operating income in a range of $118.0
million to $120.0 million, and diluted earnings per share from
continuing operations of $2.88 to $2.92. The Company also expects
adjusted earnings before interest, taxes, depreciation and amortization
(“EBITDA”)(1), a non-GAAP measure, in a range of $136.5
million to $138.5 million, and non-GAAP adjusted diluted earnings per
share(1) in a range of $2.92 to $2.96.
The preliminary unaudited results significantly exceeded the high end of
the Company’s guidance primarily as a result of higher than expected
performance-based fees in the Huron
Healthcare segment. The increased performance-based fees, net of
employee bonuses attributable to these higher revenues, accounted for a
significant amount of the earnings in excess of the high end of the
guidance range. In addition, the Company’s preliminary unaudited results
benefited from a lower projected effective income tax rate, which is now
anticipated to be approximately 41.5% to 42.0%.
“We are pleased with the strong ending to 2013,” said James
H. Roth, chief executive officer and president, Huron
Consulting Group. “The strength of our business and our underlying
financial performance reflect an increasing sense of urgency among our
client base to improve operationally and to become better positioned
strategically. We are encouraged by solid demand across all of our
business segments.”
“Fourth quarter performance-based fees were realized at levels higher
than we had anticipated,” said Roth. “The results reflect the
substantial value that our professionals deliver to our clients. Higher
than expected performance-based fees occur only when we exceed client
commitments. We are proud to be working with some of the best hospitals
and academic medical centers in the country as we help them address a
tenuous strategic and operational environment.”
“Excluding the impact of the Company’s recent acquisitions of Blue Stone
International and The Frankel Group, we anticipate that our 2014 revenue
guidance, when released, will reflect mid-to-upper single digit revenue
growth off of a base slightly greater than the high end of our
previously announced 2013 revenue guidance of $700 million,” added Roth.
The Company will announce final fourth quarter and full year 2013
financial results and full year 2014 earnings guidance on February 25,
2014. Results may vary from preliminary estimates after the completion
of customary year-end processes and reviews.
Webcast to Discuss Preliminary Unaudited Results for 2013
The Company will host a webcast for analysts and investors to discuss
its preliminary unaudited financial results for 2013 tomorrow, January
22, 2014, at 8:00 a.m. Eastern Time (7:00 a.m. Central Time). The
conference call is being webcast by NASDAQ OMX and can be accessed at
Huron Consulting Group’s website at http://ir.huronconsultinggroup.com.
A replay will be available approximately two hours after the conclusion
of the webcast and for 90 days thereafter.
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Reconciliation of Preliminary Net Income from Continuing
Operations to
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Preliminary Adjusted Earnings before Interest, Taxes,
Depreciation and Amortization (1)
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(In millions)
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(Unaudited)
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Year Ended
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December 31, 2013
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Low
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High
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Preliminary revenues
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$
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718.0
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$
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720.5
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Preliminary net income from continuing operations
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$
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65.5
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$
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66.5
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Add back:
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Income tax expense
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46.2
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47.2
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Interest and other expenses
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6.3
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6.3
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Depreciation and amortization
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23.6
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23.6
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Preliminary earnings before interest, taxes, depreciation and
amortization (EBITDA) (1)
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$
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141.6
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$
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143.6
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Add back:
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Restructuring charges
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0.8
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0.8
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Litigation settlement gain
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(5.9
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)
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(5.9
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)
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Preliminary adjusted EBITDA (1)
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$
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136.5
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$
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138.5
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Preliminary adjusted EBITDA as a percentage of revenues (1)
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19.0
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%
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19.2
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%
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Reconciliation of Preliminary Net Income from Continuing
Operations to
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Preliminary Adjusted Net Income from Continuing Operations (1)
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(In millions, except earnings per share)
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(Unaudited)
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Year Ended
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December 31, 2013
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Low
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High
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Preliminary net income from continuing operations
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$
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65.5
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$
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66.5
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Preliminary diluted earnings per share from continuing operations
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$
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2.88
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$
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2.92
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Add back:
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Amortization of intangible assets
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6.8
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6.8
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Restructuring charges
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0.8
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0.8
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Litigation settlement gain
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(5.9
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)
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(5.9
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)
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Tax effect
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(0.7
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)
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(0.7
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)
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Total adjustments, net of tax
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1.0
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1.0
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Preliminary adjusted net income from continuing operations (1)
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$
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66.5
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$
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67.5
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Preliminary adjusted diluted earnings per share from continuing
operations (1)
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$
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2.92
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$
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2.96
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(1)
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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.
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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, operations, strategy and
technology 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 90 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.
Statements in this press release 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,” “will,” “meets,” “could,” “likely,” “intends,”
“might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans”
or “continues.” These forward-looking statements reflect our current
expectations 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.
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