UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Huron Consulting Group Inc.

Delaware		000-50976		01-0666114
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification Number)

550 West Van Buren Street
Chicago, Illinois
60607
(Address of principal executive offices)
(Zip Code)

(312) 583-8700
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition.

On July 28, 2010, Huron Consulting Group Inc. (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2010. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated in this report as if fully set forth herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release, dated July 28, 2010

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit
Number		Description
99.1		Press release, dated July 28, 2010

EXHIBIT 99.1

July 28, 2010

Huron Consulting Group Reports Second Quarter 2010 Financial Results

	•		Revenues were $143.7 million for Q2 2010 compared to $154.4 million in Q2 2009.
	•		Diluted earnings per share from continuing operations for Q2 2010 was $0.16 compared to $0.38 in Q2 2009.
	•		Adjusted diluted earnings per share from continuing operations(7), a non-GAAP measure, was $0.45 in Q2 2010 compared to $0.54 in Q2 2009.
	•		Average number of full-time billable consultants(3) totaled 1,217 for Q2 2010 compared to 1,427 for Q2 2009. Average number of full-time equivalent professionals(6) totaled 944 for Q2 2010 compared to 852 in the same period last year.
	•		Company narrowed full year 2010 revenue guidance to a range of $600.0 million to $620.0 million.

CHICAGO — July 28, 2010 — Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced financial results for the second quarter ended June 30, 2010.

“Huron’s performance was consistent with our expectations for the second quarter. We anticipate the second half of the year to be better than the first given discernable trends across all of our segments,” said James H. Roth, chief executive officer, Huron Consulting Group. “Within our healthcare practice, hospitals are just beginning to assess the impact of healthcare reform. We expect that this will be an increasing source of demand for our Health and Education Consulting segment. We are also encouraged by strong momentum in our Legal Consulting segment, as we help large corporations improve efficiency and reduce costs associated with large-scale litigation.”

“Entering the second half of the year, we have narrowed revenue guidance based on our current assessment of our segments and business outlook for the rest of the year. While the economy remains a challenge, we believe that Huron is well positioned for growth across our three segments,” added Roth.

Second Quarter 2010 Results

Revenues for the second quarter of 2010 were $143.7 million compared to $154.4 million for the second quarter of 2009, and $138.9 million in the first quarter of 2010. The Company’s second quarter 2010 operating income was $9.2 million compared to $17.9 million in the second quarter of 2009. Net income from continuing operations was $3.3 million, or $0.16 per diluted share, for the second quarter of 2010 compared to $7.8 million, or $0.38 per diluted share, for the same period last year and $2.9 million, or $0.14 per diluted share, in the first quarter of 2010. Net income was $2.4 million, or $0.12 per diluted share, for the second quarter of 2010 compared to $9.6 million, or $0.47 per diluted share, for the same period last year. Earnings in the current quarter were impacted by the settlement of a litigation matter, which resulted in a one-time pre-tax charge of $4.8 million, or $0.14 per diluted share, as well as the scope and timing of insurance reimbursement of certain restatement related costs.

Revenue in the current quarter included $1.1 million of revenues from the Legal Consulting segment that should have been recorded in the first quarter of 2010. Had this revenue been recorded in the first quarter of 2010, the second quarter of 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁷⁾ and Adjusted EBITDA⁽⁷⁾ would have decreased by $1.1 million and diluted earnings per share from continuing operations and adjusted diluted earnings per share from continuing operations⁽⁷⁾ would have decreased by $0.04 per diluted share, with corresponding increases in such amounts in the first quarter of 2010. This item had no impact on the 2010 year to date results.

Second quarter 2010 EBITDA⁽⁷⁾ was $15.0 million, or 10.4% of revenues, compared to $24.7 million, or 16.0% of revenues, in the comparable quarter last year.

In evaluating the Company’s financial performance, management uses non-GAAP financial measures, which exclude the effect of the following items (in thousands):

		Three Months Ended
		June 30,
		2010				2009
Amortization of intangible assets		$	1,890			$	2,396
Non-cash compensation		$	—			$	3,050
Restatement related expenses		$	2,428			$	385
Restructuring charges		$	1,165			$	—
Litigation settlement		$	4,764			$	—
Other gain		$	—			$	(2,687	)

Adjusted EBITDA⁽⁷⁾ was $23.3 million, or 16.2% of revenues, in the second quarter of 2010, compared to $25.4 million, or 16.5% of revenues, in the comparable quarter last year, and $14.1 million, or 10.2% of revenues, in the first quarter of 2010.

Non-GAAP adjusted net income from continuing operations⁽⁷⁾ was $9.4 million, or $0.45 per diluted share, for the second quarter of 2010 compared to $11.0 million, or $0.54 per diluted share, for the second quarter in 2009.

Reconciliations of the aforementioned non-GAAP financial measures to comparable GAAP measures are provided in the financial schedules accompanying this news release.

The average number of full-time billable consultants⁽³⁾ was 1,217 in the second quarter of 2010 compared to 1,427 in the same quarter last year. Full-time billable consultant utilization rate⁽⁴⁾ was 69.2% during the second quarter of 2010 compared with 68.7% during the same period last year. Average billing rate per hour for full-time billable consultants⁽⁵⁾ was $245 for the second quarter of 2010 compared to $259 for the second quarter of 2009. The average number of full-time equivalent professionals⁽⁶⁾ increased 10.8% to 944 in the second quarter of 2010 from 852 in the comparable period of 2009.

Year-to-Date Results

Revenues for the first six months of 2010 were $282.6 million compared to $305.6 million for the first half of 2009. The Company’s operating income for the first six months of 2010 was $17.1 million compared to $32.2 million in the first six months of 2009. Net income from continuing operations was $6.2 million, or $0.30 per diluted share, for the first six months of 2010 compared to $13.5 million, or $0.66 per diluted share, for the same period last year. Net income was $4.9 million, or $0.24 per diluted share, for the first half of 2010 compared to $16.7 million, or $0.82 per diluted share, for the same period last year.

EBITDA⁽⁷⁾ was $28.3 million, or 10.0% of revenues, for the first half of 2010, compared to $46.2 million, or 15.1% of revenues, for the same period in 2009.

In evaluating the Company’s financial performance, management uses non-GAAP financial measures, which exclude the effect of the following items (in thousands):

		Six Months Ended
		June 30,
		2010				2009
Amortization of intangible assets		$	3,784			$	5,392
Non-cash compensation		$	—			$	6,496
Restatement related expenses		$	3,187			$	385
Restructuring charges		$	1,165			$	—
Litigation settlement		$	4,764			$	—
Other gain		$	—			$	(2,687	)

Adjusted EBITDA⁽⁷⁾ was $37.4 million, or 13.2% of revenues, in the first six months of 2010 compared to $50.4 million, or 16.5% of revenues, in the comparable period last year.

Non-GAAP adjusted net income from continuing operations⁽⁷⁾ was $13.9 million, or $0.68 per diluted share, for the first half of 2010 compared to $21.8 million, or $1.07 per diluted share, for the comparable period in 2009.

Reconciliations of the aforementioned non-GAAP financial measures to comparable GAAP measures are provided in the financial schedules accompanying this news release.

The average number of full-time billable consultants⁽³⁾ was 1,237 in the first half of 2010 compared to 1,443 in the same period last year. Full-time billable consultant utilization rate⁽⁴⁾ was 66.7% during the first half of 2010 compared with 68.7% during the same period last year. Average billing rate per hour for full-time billable consultants⁽⁵⁾ was $243 for the first half of 2010 compared to $256 for the first half of 2009. The average number of full-time equivalent professionals⁽⁶⁾ increased 20.4% to 939 in the first half of 2010 from 780 in the comparable period of 2009.

Operating Segments

Huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges. The Company has three operating segments as follows: Health and Education Consulting, Legal Consulting, and Financial Consulting, representing approximately 57%, 24% and 19% of year-to-date total revenues, respectively.

Financial results by segment are included in the attached schedules and in Huron’s Form 10-Q filing for the quarter ended June 30, 2010.

Discontinued Operations

As previously disclosed, as part of Huron’s strategy to focus on its core businesses, in December 2009 the Company’s Board of Directors approved a plan to divest its Strategy (Galt) business and its Japan operations, both of which are within the Financial Consulting segment. The Company completed the sale of its Strategy business on December 31, 2009. During the second quarter of 2010, the discussions with a prospective buyer of the Company’s Japan operations ended without a sale. As a result, the Board approved a plan to wind down the Japan operations effective June 30, 2010. The results for both of these businesses are reported as discontinued operations for the periods presented.

Outlook for 2010

The Company narrowed guidance for full year 2010 from continuing operations, including revenues before reimbursable expenses to a range of $600.0 million to $620.0 million. The Company also anticipates EBITDA⁽¹⁰⁾ in a range of $91.0 million to $95.0 million, Adjusted EBITDA⁽¹⁰⁾ in a range of $107.0 million to $111.0 million, diluted earnings per share from continuing operations in a range of $1.43 to $1.53, and non-GAAP adjusted diluted earnings per share⁽¹⁰⁾ from continuing operations in a range of $2.10 to $2.20.

As previously announced, beginning in 2010, the Company no longer excludes share-based compensation from its non-GAAP financial measures.

Second Quarter 2010 Webcast

The Company will host a webcast to discuss its financial results tomorrow, July 29 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). The conference call is being webcast by Thomson 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, comply with complex regulations, resolve disputes, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including leading academic institutions, healthcare organizations, Fortune 500 companies, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.

Use of Non-GAAP Financial Measures⁽⁷⁾

In evaluating the Company’s financial performance and outlook, 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. Management believes that such measures, as supplements to 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 the Company’s core operating results and future prospects without the effect of non-cash or other one-time items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and to repay debt. 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. The reconciliation of these measures to the most comparable GAAP measures are included in the attached schedules.

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 results, 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,” “plans,” “anticipates,” “assumes,” “can,” “considers,” “could,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates” or “continues”. Risks, uncertainties and assumptions that could impact the Company’s forward-looking statements relate, among other things, to (i) the restatement, (ii) the Securities and Exchange Commission (“SEC”) investigation with respect to the restatement and the related purported private shareholder class action lawsuit and derivative lawsuits, (iii) the SEC investigation and related Company inquiry into the allocation of time within a certain practice group, (iv) the request by the United States Attorney’s Office (“USAO”) for the Northern District of Illinois for certain documents and (v) the cost reduction program implemented in the third quarter of 2009. In addition, these forward-looking statements reflect our current expectation about our future results, levels of activity, performance, or achievements, including, without limitation, that our business continues to grow at the 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, including those in the credit markets, do not continue to deteriorate substantially. These statements involve known and unknown risks, uncertainties and other factors 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. See “Risk Factors” in our 2009 Annual Report on Form 10-K and in our Quarterly Report on Form 10-Q for the period ended June 30, 2010 for a description of the material risks we face.

Media Contact:
Jennifer Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com

Investor Contact:
James K. Rojas, Chief Financial Officer
or
Ellen Wong
312-583-8722
investor@huronconsultinggroup.com

###

HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
		2010				2009				2010				2009
Revenues and reimbursable expenses:
Revenues		$	143,708			$	154,446			$	282,601			$	305,576
Reimbursable expenses			12,900				12,111				25,573				25,523
Total revenues and reimbursable expenses			156,608				166,557				308,174				331,099
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			90,228				99,057				184,836				195,311
Intangible assets amortization			887				1,087				1,773				2,773
Reimbursable expenses			12,854				12,104				25,578				25,542
Total direct costs and reimbursable expenses			103,969				112,248				212,187				223,626
Operating expenses:
Selling, general and administrative			30,206				33,036				60,321				66,329
Restructuring charges			1,165				—				1,165				—
Restatement related expenses			2,428				385				3,187				385
Litigation settlement			4,764				—				4,764				—
Depreciation and amortization			4,851				5,659				9,495				11,231
Total operating expenses			43,414				39,080				78,932				77,945
Other gain			—				2,687				—				2,687
Operating income			9,225				17,916				17,055				32,215
Other income (expense):
Interest expense, net of interest income			(3,553	)			(3,020	)			(6,508	)			(5,754	)
Other income (expense)			(467	)			642				(221	)			169
Total other expense			(4,020	)			(2,378	)			(6,729	)			(5,585	)
Income from continuing operations before income tax expense			5,205				15,538				10,326				26,630
Income tax expense			1,937				7,693				4,142				13,171
Net income from continuing operations			3,268				7,845				6,184				13,459
(Loss) income from discontinued operations, net of tax			(893	)			1,801				(1,295	)			3,263
Net income		$	2,375			$	9,646			$	4,889			$	16,722
Net earnings (loss) per basic share:
Income from continuing operations		$	0.16			$	0.40			$	0.30			$	0.69
(Loss) income from discontinued operations, net of tax		$	(0.04	)		$	0.09			$	(0.06	)		$	0.16
Net income		$	0.12			$	0.49			$	0.24			$	0.85
Net earnings (loss) per diluted share:
Income from continuing operations		$	0.16			$	0.38			$	0.30			$	0.66
(Loss) income from discontinued operations, net of tax		$	(0.04	)		$	0.09			$	(0.06	)		$	0.16
Net income		$	0.12			$	0.47			$	0.24			$	0.82
Weighted average shares used in calculating earnings (loss) per share:
Basic			20,534				19,752				20,416				19,641
Diluted			20,756				20,405				20,627				20,329

HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)

		June 30,				December 31,
		2010				2009
Assets
Current assets:
Cash and cash equivalents		$	3,088			$	5,715
Receivables from clients, net			82,748				90,543
Unbilled services, net			46,368				37,558
Income tax receivable			10,947				18,911
Deferred income taxes			13,850				16,338
Prepaid expenses and other current assets			17,173				19,437
Current assets of discontinued operations			5,037				4,281
Total current assets			179,211				192,783
Property and equipment, net			34,079				39,147
Deferred income taxes			20,218				21,298
Other non-current assets			12,272				14,383
Intangible assets, net			18,598				22,406
Goodwill			464,225				464,169
Non-current assets of discontinued operations			—				29
Total assets		$	728,603			$	754,215
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	11,705			$	7,150
Accrued expenses			25,955				29,201
Accrued payroll and related benefits			28,564				71,473
Accrued consideration for business acquisitions			—				63,188
Income tax payable			4				874
Deferred revenues			13,144				13,764
Current portion of capital lease obligations			135				278
Current liabilities of discontinued operations			2,058				7,065
Total current liabilities			81,565				192,993
Non-current liabilities:
Deferred compensation and other liabilities			6,766				6,131
Capital lease obligations, net of current portion			—				5
Bank borrowings			293,000				219,000
Deferred lease incentives			8,191				8,681
Non-current liabilities of discontinued operations			152				416
Total non-current liabilities			308,109				234,233
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,189,602 and 22,624,515 shares issued at June 30, 2010 and December 31, 2009, respectively			218				213
Treasury stock, at cost, 1,119,907 and 995,409 shares at June 30, 2010 and December 31, 2009, respectively			(56,044	)			(51,561	)
Additional paid-in capital			347,703				335,272
Retained earnings			48,747				43,858
Accumulated other comprehensive loss			(1,695	)			(793	)
Total stockholders’ equity			338,929				326,989
Total liabilities and stockholders’ equity		$	728,603			$	754,215

HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

		Six months ended
		June 30,
		2010				2009
Cash flows from operating activities:
Net income		$	4,889			$	16,722
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization			11,341				14,380
Share-based compensation			12,060				13,438
Non-cash compensation			—				7,107
Allowances for doubtful accounts and unbilled services			481				2,451
Deferred income taxes			737				579
Other gain			—				(2,686	)
Changes in operating assets and liabilities, net of businesses acquired:
Decrease (increase) in receivables from clients			6,397				(2	)
Increase in unbilled services			(7,459	)			(13,682	)
Decrease in current income tax receivable / payable, net			6,737				1,773
(Increase) decrease in other assets			(1,742	)			582
Increase in accounts payable and accrued liabilities			911				2,935
Decrease in accrued payroll and related benefits			(47,728	)			(7,397	)
Decrease in deferred revenues			(624	)			(6,459	)
Net cash (used in) provided by operating activities			(14,000	)			29,741
Cash flows from investing activities:
Purchases of property and equipment, net			(2,489	)			(8,427	)
Net surrender of (investment in) life insurance policies			651				(808	)
Purchases of businesses			(63,229	)			(47,065	)
Sale of business			3,692				—
Net cash used in investing activities			(61,375	)			(56,300	)
Cash flows from financing activities:
Proceeds from exercise of stock options			39				116
Shares redeemed for employee tax withholdings			(1,299	)			(1,921	)
Tax benefit from share-based compensation			360				5,551
Proceeds from borrowings under credit facility			232,000				164,500
Repayments on credit facility			(158,000	)			(149,500	)
Payments of capital lease obligations			(148	)			(191	)
Net cash provided by financing activities			72,952				18,555
Effect of exchange rate changes on cash			(63	)			(475	)
Net decrease in cash and cash equivalents			(2,486	)			(8,479	)
Cash and cash equivalents at beginning of the period			6,459				14,106
Cash and cash equivalents at end of the period(*)		$	3,973			$	5,627

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)

		Three Months Ended								Percent
		June 30,								Increase
Segment and Consolidated Operating Results (in thousands):		2010				2009				(Decrease)
Health and Education Consulting:
Revenues		$	83,782			$	91,469				(8.4	%)
Operating income (1)		$	28,799			$	34,430				(16.4	%)
Segment operating income as a percent of segment revenues			34.4	%			37.6	%
Legal Consulting (2):
Revenues		$	33,951			$	31,241				8.7	%
Operating income		$	9,302			$	7,715				20.6	%
Segment operating income as a percent of segment revenues			27.4	%			24.7	%
Financial Consulting:
Revenues		$	25,975			$	31,736				(18.2	%)
Operating income (1)		$	4,708			$	3,899				20.7	%
Segment operating income as a percent of segment revenues			18.1	%			12.3	%
Total Company:
Revenues		$	143,708			$	154,446				(7.0	%)
Reimbursable expenses			12,900				12,111				6.5	%
Total revenues and reimbursable expenses		$	156,608			$	166,557				(6.0	%)
Statement of operations reconciliation:
Segment operating income		$	42,809			$	46,044				(7.0	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses			28,733				22,469				27.9	%
Depreciation and amortization expense			4,851				5,659				(14.3	%)
Total operating income			9,225				17,916				(48.5	%)
Other expense, net			4,020				2,378				69.0	%
Income from continuing operations before income tax expense		$	5,205			$	15,538				(66.5	%)
Other Operating Data:
Number of full-time billable consultants (at period end) (3):
Health and Education Consulting			826				868				(4.8	%)
Legal Consulting			127				141				(9.9	%)
Financial Consulting			244				363				(32.8	%)
Total			1,197				1,372				(12.8	%)
Average number of full-time billable consultants (for the period) (3):
Health and Education Consulting			835				887
Legal Consulting			128				152
Financial Consulting			254				388
Total			1,217				1,427
Full-time billable consultant utilization rate (4):
Health and Education Consulting			74.3	%			75.3	%
Legal Consulting			63.3	%			61.9	%
Financial Consulting			54.8	%			56.4	%
Total			69.2	%			68.7	%

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

		Three Months Ended
		June 30,
Other Operating Data:		2010				2009
Full-time billable consultant average billing rate per hour (5):
Health and Education Consulting		$	240			$	262
Legal Consulting		$	208			$	212
Financial Consulting		$	291			$	270
Total		$	245			$	259
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	85			$	93
Legal Consulting		$	59			$	61
Financial Consulting		$	72			$	71
Total		$	79			$	84
Average number of full-time equivalents (for the period) (6):
Health and Education Consulting			157				109
Legal Consulting			676				678
Financial Consulting			111				65
Total			944				852
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	83			$	81
Legal Consulting		$	39			$	32
Financial Consulting		$	69			$	63
Total		$	50			$	41

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)

		Six Months Ended								Percent
		June 30,								Increase
Segment and Consolidated Operating Results (in thousands):		2010				2009				(Decrease)
Health and Education Consulting:
Revenues		$	160,696			$	183,491				(12.4	%)
Operating income (1)		$	49,865			$	68,070				(26.7	%)
Segment operating income as a percent of segment revenues			31.0	%			37.1	%
Legal Consulting:
Revenues		$	67,056			$	54,109				23.9	%
Operating income		$	16,721			$	10,956				52.6	%
Segment operating income as a percent of segment revenues			24.9	%			20.2	%
Financial Consulting:
Revenues		$	54,849			$	67,976				(19.3	%)
Operating income (1)		$	9,431			$	9,497				(0.7	%)
Segment operating income as a percent of segment revenues			17.2	%			14.0	%
Total Company:
Revenues		$	282,601			$	305,576				(7.5	%)
Reimbursable expenses			25,573				25,523				0.2	%
Total revenues and reimbursable expenses		$	308,174			$	331,099				(6.9	%)
Statement of operations reconciliation:
Segment operating income		$	76,017			$	88,523				(14.1	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses			49,467				45,077				9.7	%
Depreciation and amortization expense			9,495				11,231				(15.5	%)
Total operating income			17,055				32,215				(47.1	%)
Other expense, net			6,729				5,585				20.5	%
Income from continuing operations before income tax expense		$	10,326			$	26,630				(61.2	%)
Other Operating Data:
Number of full-time billable consultants (at period end) (3):
Health and Education Consulting			826				868				(4.8	%)
Legal Consulting			127				141				(9.9	%)
Financial Consulting			244				363				(32.8	%)
Total			1,197				1,372				(12.8	%)
Average number of full-time billable consultants (for the period) (3):
Health and Education Consulting			841				892
Legal Consulting			133				155
Financial Consulting			263				396
Total			1,237				1,443
Full-time billable consultant utilization rate (4):
Health and Education Consulting			71.2	%			76.7	%
Legal Consulting			59.1	%			57.7	%
Financial Consulting			55.9	%			55.3	%
Total			66.7	%			68.7	%

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

		Six Months Ended
		June 30,
Other Operating Data:		2010				2009
Full-time billable consultant average billing rate per hour (5):
Health and Education Consulting		$	238			$	254
Legal Consulting		$	200			$	222
Financial Consulting		$	287			$	276
Total		$	243			$	256
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	162			$	185
Legal Consulting		$	104			$	120
Financial Consulting		$	148			$	144
Total		$	152			$	167
Average number of full-time equivalents (for the period) (6):
Health and Education Consulting			149				102
Legal Consulting			671				591
Financial Consulting			119				87
Total			939				780
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	167			$	177
Legal Consulting		$	79			$	60
Financial Consulting		$	133			$	127
Total		$	100			$	83

		Three Months Ended				Six Months Ended
		June 30, 2009				June 30, 2009
Health and Education Consulting		$	2,238			$	4,872
Financial Consulting			812				1,624
Total		$	3,050			$	6,496

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ⁽⁷⁾
(In thousands)
(Unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
		2010				2009				2010				2009
Revenues		$	143,708			$	154,446			$	282,601			$	305,576
Net income from continuing operations		$	3,268			$	7,845			$	6,184			$	13,459
Add back:
Income tax expense			1,937				7,693				4,142				13,171
Interest and other expenses			4,020				2,378				6,729				5,585
Depreciation and amortization			5,738				6,746				11,268				14,004
Earnings before interest, taxes, depreciation and amortization (EBITDA) (7)			14,963				24,662				28,323				46,219
Add back:
Non-cash compensation (1)			—				3,050				—				6,496
Restatement related expenses			2,428				385				3,187				385
Restructuring charges			1,165				—				1,165				—
Litigation settlement			4,764				—				4,764				—
Other gain			—				(2,687	)			—				(2,687	)
Adjusted EBITDA (7)		$	23,320			$	25,410			$	37,439			$	50,413
Adjusted EBITDA as a percentage of revenues (7)			16.2	%			16.5	%			13.2	%			16.5	%

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS ⁽⁷⁾
(In thousands)
(Unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
		2010				2009				2010				2009
Net income from continuing operations		$	3,268			$	7,845			$	6,184			$	13,459
Weighted average shares — diluted			20,756				20,405				20,627				20,329
Diluted earnings per share from continuing operations		$	0.16			$	0.38			$	0.30			$	0.66
Add back:
Amortization of intangible assets			1,890				2,396				3,784				5,392
Non-cash compensation (1)			—				3,050				—				6,496
Restatement related expenses			2,428				385				3,187				385
Restructuring charges			1,165				—				1,165				—
Litigation settlement			4,764				—				4,764				—
Other gain			—				(2,687	)			—				(2,687	)
Tax effect			(4,072	)			(39	)			(5,160	)			(1,267	)
Total adjustments, net of tax			6,175				3,105				7,740				8,319
Adjusted net income from continuing operations (7)		$	9,443			$	10,950			$	13,924			$	21,778
Weighted average shares — diluted			20,756				20,405				20,627				20,329
Adjusted diluted earnings per share from continuing operations (7)		$	0.45			$	0.54			$	0.68			$	1.07

HURON CONSULTING GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES FOR FULL YEAR 2010 OUTLOOK

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS ⁽⁸⁾ TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ^{(8) (10)}
(In millions)
(Unaudited)

		Year Ending
		December 31, 2010
		Guidance Range
		Low				High
Projected revenues — GAAP		$	600.0			$	620.0
Projected net income from continuing operations — GAAP (8)		$	30.0			$	32.0
Add back:
Income tax expense			24.0				26.0
Interest and other expenses			14.5				14.5
Depreciation and amortization			22.5				22.5
Projected earnings before interest, taxes, depreciation and amortization (EBITDA) (8) (10)			91.0				95.0
Add back:
Restructuring and restatement related expenses (9)			11.2				11.2
Litigation settlement			4.8				4.8
Projected adjusted EBITDA (8) (10)		$	107.0			$	111.0
Projected adjusted EBITDA as a percentage of projected revenues (10)			17.8	%			17.9	%

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS ⁽⁸⁾
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS ^{(8) (10)}
(In millions)
(Unaudited)

		Year Ending
		December 31, 2010
		Guidance Range
		Low				High
Projected net income from continuing operations — GAAP (8)		$	30.0			$	32.0
Projected diluted earnings per share from continuing operations — GAAP (8)		$	1.43			$	1.53
Add back:
Amortization of intangible assets			7.5				7.5
Restructuring and restatement related expenses (9)			11.2				11.2
Litigation settlement			4.8				4.8
Tax effect			(9.4	)			(9.4	)
Total adjustments, net of tax			14.1				14.1
Projected adjusted net income from continuing operations (8) (10)		$	44.1			$	46.1
Projected adjusted diluted earnings per share from continuing operations (8) (10)		$	2.10			$	2.20