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
July 27, 2017
Date of Report (Date of earliest event reported)
_____________________
Huron Consulting Group Inc.
(Exact name of registrant as specified in its charter)
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)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
Emerging growth company | o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o | |
Item 2.02. Results of Operations and Financial Condition.
On July 27, 2017, Huron Consulting Group Inc. (the “Company”) posted supplementary financial information on its website for the first and second quarter 2017, six months ended June 30, 2017, quarterly and annual 2016, and annual 2015 segment and consolidated operating results and other operating data to reflect the second quarter 2017 reorganization of the Company’s internal financial reporting structure. The Company reorganized its internal financial reporting structure by moving the Life Sciences practice from the Education and Life Sciences segment to the Business Advisory segment. The remaining Education and Life Sciences segment is now referred to as the Education segment. The Company will continue to operate under three reportable segments: Healthcare, Education, and Business Advisory.
The revised presentation does not have any effect on the Company’s previously reported consolidated statements of earnings and other comprehensive income, balance sheets, stockholders' equity, or cash flows.
A copy of the supplementary financial information is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
The information required by this Item 7.01 is set forth in Item 2.02 above, which is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit Number | Description | |
99.1 | Supplementary financial information | |
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.
Huron Consulting Group Inc. | |||
(Registrant) | |||
Date: | July 27, 2017 | /s/ John D. Kelly | |
John D. Kelly | |||
Executive Vice President, Chief Financial Officer and Treasurer | |||
Exhibit 99.1
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Huron Consulting Group Inc. (the "Company") is posting this supplementary financial information on its website for the first and second quarter 2017, six months ended June 30, 2017, quarterly and annual 2016, and annual 2015 segment and consolidated operating results and other operating data to reflect the second quarter 2017 reorganization of the Company’s internal financial reporting structure. The Company reorganized its internal financial reporting structure by moving the Life Sciences practice from the Education and Life Sciences segment to the Business Advisory segment. The remaining Education and Life Sciences segment is now referred to as the Education segment. The Company will continue to operate under three reportable segments: Healthcare, Education, and Business Advisory.
The revised presentation does not have any effect on the Company’s previously reported consolidated statements of earnings and other comprehensive income, balance sheets, stockholders' equity, or cash flows.
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Segment and Consolidated Operating Results (in thousands): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Healthcare: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 446,887 | $ | 114,018 | $ | 106,088 | $ | 103,425 | $ | 101,381 | $ | 424,912 | $ | 98,452 | $ | 83,227 | $ | 181,679 | ||||||||||||||||||
Operating income | $ | 169,560 | $ | 39,006 | $ | 41,399 | $ | 38,824 | $ | 28,674 | $ | 147,903 | $ | 34,150 | $ | 23,652 | $ | 57,802 | ||||||||||||||||||
Segment operating income as a percentage of segment revenues | 37.9 | % | 34.2 | % | 39.0 | % | 37.5 | % | 28.3 | % | 34.8 | % | 34.7 | % | 28.4 | % | 31.8 | % | ||||||||||||||||||
Education: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 134,009 | $ | 35,873 | $ | 37,322 | $ | 38,621 | $ | 38,001 | $ | 149,817 | $ | 42,281 | $ | 43,926 | $ | 86,207 | ||||||||||||||||||
Operating income | $ | 32,246 | $ | 9,096 | $ | 11,482 | $ | 10,896 | $ | 6,836 | $ | 38,310 | $ | 11,515 | $ | 12,495 | $ | 24,010 | ||||||||||||||||||
Segment operating income as a percentage of segment revenues | 24.1 | % | 25.4 | % | 30.8 | % | 28.2 | % | 18.0 | % | 25.6 | % | 27.2 | % | 28.4 | % | 27.9 | % | ||||||||||||||||||
Business Advisory: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 116,892 | $ | 30,598 | $ | 40,849 | $ | 41,354 | $ | 38,742 | $ | 151,543 | $ | 48,116 | $ | 54,265 | $ | 102,381 | ||||||||||||||||||
Operating income | $ | 31,233 | $ | 3,811 | $ | 10,856 | $ | 8,608 | $ | 6,107 | $ | 29,382 | $ | 9,866 | $ | 12,192 | $ | 22,058 | ||||||||||||||||||
Segment operating income as a percentage of segment revenues | 26.7 | % | 12.5 | % | 26.6 | % | 20.8 | % | 15.8 | % | 19.4 | % | 20.5 | % | 22.5 | % | 21.5 | % | ||||||||||||||||||
All Other: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,222 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Operating income | $ | (1,718 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Segment operating income as a percentage of segment revenues | N/M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Total Company: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 699,010 | $ | 180,489 | $ | 184,259 | $ | 183,400 | $ | 178,124 | $ | 726,272 | $ | 188,849 | $ | 181,418 | $ | 370,267 | ||||||||||||||||||
Reimbursable expenses | 70,013 | 16,561 | 18,982 | 19,093 | 17,076 | 71,712 | 16,950 | 20,930 | 37,880 | |||||||||||||||||||||||||||
Total revenues and reimbursable expenses | $ | 769,023 | $ | 197,050 | $ | 203,241 | $ | 202,493 | $ | 195,200 | $ | 797,984 | $ | 205,799 | $ | 202,348 | $ | 408,147 | ||||||||||||||||||
Segment operating income | $ | 231,321 | $ | 51,913 | $ | 63,737 | $ | 58,328 | $ | 41,617 | $ | 215,595 | $ | 55,531 | $ | 48,339 | $ | 103,870 | ||||||||||||||||||
Items not allocated at the segment level: | ||||||||||||||||||||||||||||||||||||
Other operating expenses | 112,164 | 30,123 | 27,970 | 26,502 | 27,257 | 111,852 | 32,463 | 30,732 | 63,195 | |||||||||||||||||||||||||||
Segment and Consolidated Operating Results (in thousands): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Litigation and other gains (losses), net | (9,476 | ) | — | — | 494 | (2,484 | ) | (1,990 | ) | — | (1,102 | ) | (1,102 | ) | ||||||||||||||||||||||
Depreciation and amortization | 25,135 | 7,414 | 7,558 | 8,092 | 8,435 | 31,499 | 8,919 | 9,684 | 18,603 | |||||||||||||||||||||||||||
Goodwill impairment charge (1) | — | — | — | — | — | — | — | 209,600 | 209,600 | |||||||||||||||||||||||||||
Total operating income (loss) | 103,498 | 14,376 | 28,209 | 23,240 | 8,409 | 74,234 | 14,149 | (200,575 | ) | (186,426 | ) | |||||||||||||||||||||||||
Other expense, net | 19,933 | 3,500 | 3,847 | 3,687 | 4,043 | 15,077 | 3,246 | 3,411 | 6,657 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | $ | 83,565 | $ | 10,876 | $ | 24,362 | $ | 19,553 | $ | 4,366 | $ | 59,157 | $ | 10,903 | $ | (203,986 | ) | $ | (193,083 | ) | ||||||||||||||||
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Other Operating Data (excluding All Other): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Number of full-time billable consultants (at period end) (2): | ||||||||||||||||||||||||||||||||||||
Healthcare | 1,037 | 1,023 | 952 | 1,010 | 888 | 888 | 857 | 750 | 750 | |||||||||||||||||||||||||||
Education | 387 | 417 | 428 | 466 | 468 | 468 | 478 | 519 | 519 | |||||||||||||||||||||||||||
Business Advisory | 397 | 402 | 516 | 545 | 547 | 547 | 680 | 737 | 737 | |||||||||||||||||||||||||||
Total | 1,821 | 1,842 | 1,896 | 2,021 | 1,903 | 1,903 | 2,015 | 2,006 | 2,006 | |||||||||||||||||||||||||||
Average number of full-time billable consultants (for the period) (2): | ||||||||||||||||||||||||||||||||||||
Healthcare | 1,085 | 1,026 | 1,005 | 984 | 976 | 998 | 867 | 807 | 837 | |||||||||||||||||||||||||||
Education | 351 | 410 | 421 | 447 | 470 | 437 | 471 | 494 | 483 | |||||||||||||||||||||||||||
Other Operating Data (excluding All Other): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Business Advisory | 334 | 393 | 472 | 530 | 552 | 486 | 627 | 725 | 675 | |||||||||||||||||||||||||||
Total | 1,770 | 1,829 | 1,898 | 1,961 | 1,998 | 1,921 | 1,965 | 2,026 | 1,995 | |||||||||||||||||||||||||||
Full-time billable consultant utilization rate (3): | ||||||||||||||||||||||||||||||||||||
Healthcare | 77.9 | % | 80.5 | % | 78.1 | % | 77.0 | % | 72.4 | % | 77.1 | % | 72.3 | % | 77.7 | % | 74.9 | % | ||||||||||||||||||
Education | 74.6 | % | 73.3 | % | 72.4 | % | 68.0 | % | 68.7 | % | 70.6 | % | 74.9 | % | 75.1 | % | 75.0 | % | ||||||||||||||||||
Business Advisory | 76.2 | % | 69.9 | % | 73.3 | % | 73.5 | % | 74.9 | % | 73.1 | % | 75.2 | % | 72.4 | % | 78.2 | % | ||||||||||||||||||
Total | 76.9 | % | 76.6 | % | 75.6 | % | 73.9 | % | 72.2 | % | 74.6 | % | 73.9 | % | 75.1 | % | 76.1 | % | ||||||||||||||||||
Full-time billable consultant average billing rate per hour (4): | ||||||||||||||||||||||||||||||||||||
Healthcare | $ | 217 | $ | 213 | $ | 211 | $ | 203 | $ | 215 | $ | 210 | $ | 228 | $ | 182 | $ | 205 | ||||||||||||||||||
Education | $ | 216 | $ | 214 | $ | 217 | $ | 220 | $ | 225 | $ | 219 | $ | 218 | $ | 219 | $ | 218 | ||||||||||||||||||
Business Advisory | $ | 245 | $ | 218 | $ | 228 | $ | 203 | $ | 188 | $ | 208 | $ | 199 | $ | 190 | $ | 194 | ||||||||||||||||||
Total | $ | 222 | $ | 214 | $ | 216 | $ | 207 | $ | 209 | $ | 212 | $ | 216 | $ | 194 | $ | 204 | ||||||||||||||||||
Revenue per full-time billable consultant (in thousands): | ||||||||||||||||||||||||||||||||||||
Healthcare | $ | 313 | $ | 82 | $ | 76 | $ | 73 | $ | 69 | $ | 300 | $ | 76 | $ | 65 | $ | 142 | ||||||||||||||||||
Education | $ | 317 | $ | 76 | $ | 76 | $ | 72 | $ | 69 | $ | 293 | $ | 78 | $ | 80 | $ | 157 | ||||||||||||||||||
Business Advisory | $ | 335 | $ | 75 | $ | 82 | $ | 72 | $ | 65 | $ | 293 | $ | 73 | $ | 72 | $ | 145 | ||||||||||||||||||
Total | $ | 318 | $ | 79 | $ | 78 | $ | 72 | $ | 68 | $ | 297 | $ | 76 | $ | 71 | $ | 147 | ||||||||||||||||||
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Other Operating Data (continued): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Average number of full-time equivalents (for the period) (5): | ||||||||||||||||||||||||||||||||||||
Healthcare | 179 | 199 | 198 | 204 | 212 | 203 | 216 | 215 | 215 | |||||||||||||||||||||||||||
Education | 39 | 37 | 36 | 40 | 41 | 38 | 40 | 34 | 37 | |||||||||||||||||||||||||||
Business Advisory | 12 | 9 | 21 | 25 | 24 | 20 | 20 | 17 | 18 | |||||||||||||||||||||||||||
Total | 230 | 245 | 255 | 269 | 277 | 261 | 276 | 266 | 270 | |||||||||||||||||||||||||||
Revenue per full-time equivalent (in thousands): | ||||||||||||||||||||||||||||||||||||
Healthcare | $ | 604 | $ | 151 | $ | 148 | $ | 156 | $ | 158 | $ | 614 | $ | 150 | $ | 143 | $ | 293 | ||||||||||||||||||
Education | $ | 587 | $ | 128 | $ | 149 | $ | 158 | $ | 137 | $ | 572 | $ | 146 | $ | 134 | $ | 281 | ||||||||||||||||||
Business Advisory (6) | $ | 418 | $ | 105 | $ | 98 | $ | 126 | $ | 116 | $ | 453 | $ | 105 | $ | 133 | $ | 236 | ||||||||||||||||||
Total | $ | 591 | $ | 146 | $ | 144 | $ | 154 | $ | 151 | $ | 596 | $ | 146 | $ | 141 | $ | 288 | ||||||||||||||||||
(1) | The non-cash goodwill impairment charge is not allocated at the segment level because the underlying goodwill asset is reflective of our corporate investment in the segments. We do not include the impact of goodwill impairment charges in our evaluation of segment performance. |
(2) | Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked. |
(3) | Utilization rate for our full-time billable consultants is calculated by dividing the number of hours all of 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. |
(4) | 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. |
(5) | Consists of cultural transformation consultants within our Studer Group solution, which include coaches and their support staff, consultants who work variable schedules as needed by our clients, and full-time employees who provide software support and maintenance services to our clients. |
(6) | Full year operating metrics are calculated using the appropriate full year data. As the results of operations of our acquisitions are only included in our consolidated results of operations from the date of acquisition, certain full year operating metrics cannot be calculated using a simple summation of the four individual quarters presented. |
Computational Note: In some instances, individual quarters may not sum or average, as appropriate, to the respective full year amount due to rounding.
N/M - Not Meaningful
N/A - Not Applicable