Press Release

THIRD QUARTER 2024 HIGHLIGHTS

• Revenues before reimbursable expenses⁽¹⁾ increased $11.9 million, or 3.3%, to $370.0 million in Q3 2024 from $358.2 million in Q3 2023. 
  
   
• Net income increased $5.6 million, or 26.2%, to $27.1 million in Q3 2024, compared to $21.5 million in Q3 2023. 
  
   
• Adjusted EBITDA⁽⁹⁾, a non-GAAP measure, increased $6.9 million, or 14.3%, to $54.9 million in Q3 2024 from $48.0 million in Q3 2023. 
  
   
• Diluted earnings per share increased $0.37, or 33.6%, to $1.47 in Q3 2024, compared to $1.10 in Q3 2023. 
  
   
• Adjusted diluted earnings per share⁽⁹⁾, a non-GAAP measure, increased $0.29, or 20.9%, to $1.68 in Q3 2024 from $1.39 in Q3 2023. 
  
   
• Net cash provided by operating activities was $85.2 million in Q3 2024, compared to $68.8 million in Q3 2023.

YEAR-TO-DATE 2024 HIGHLIGHTS

• Revenues before reimbursable expenses⁽¹⁾ increased $74.8 million, or 7.3%, to $1.10 billion for the first nine months of 2024 from $1.02 billion for the same prior year period. 
  
   
• Net income increased $23.0 million, or 38.5%, to $82.6 million for the first nine months of 2024, compared to $59.6 million for the same prior year period. Results for the first nine months of 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter in which Huron was the plaintiff. 
  
   
• Adjusted EBITDA⁽⁹⁾, a non-GAAP measure, increased $18.4 million, or 14.6%, to $144.4 million for the first nine months of 2024 from $126.0 million for the same prior year period. 
  
   
• Diluted earnings per share increased $1.38, or 45.2%, to $4.43 for the first nine months of 2024, compared to $3.05 for the same prior year period. Results for the first nine months of 2024 include the litigation settlement gain related to a completed legal matter in which Huron was the plaintiff, which had a favorable $0.59 impact on diluted earnings per share for the period. 
  
   
• Adjusted diluted earnings per share⁽⁹⁾, a non-GAAP measure, increased $0.93, or 25.5%, to $4.57 for the first nine months of 2024 from $3.64 for the same prior year period. 
  
   
• Huron returned $104.0 million to shareholders by repurchasing 1.1 million shares of the company's common stock in the first nine months of 2024, representing 5.8% of the company's common stock outstanding as of December 31, 2023. 
  
   
• Huron narrowed the range of expected revenues before reimbursable expenses to $1.47 billion to $1.49 billion while maintaining its previous midpoint of guidance; and increased its adjusted diluted earnings per share⁽⁹⁾ expectations to a range of $6.00 to $6.20.

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⁽¹⁾ In the third quarter of 2024, the Company revised the line item descriptions of revenues to rename revenues as revenues before reimbursable expenses and to rename total revenues and reimbursable expenses as total revenues. The change in line item description had no impact on the line item totals for any period.

CHICAGO--(BUSINESS WIRE)--Oct. 29, 2024-- Global professional services firm Huron (NASDAQ: HURN) today announced financial results for the quarter ended September 30, 2024.

“Revenue growth in the third quarter of 2024 was 3%, which was achieved in light of the strong growth achieved across all three operating segments in the same period a year ago. Our Healthcare and Education segments have grown over each comparative quarter since the first quarter of 2021, and in the third quarter of 2024, our Commercial segment achieved strong sequential growth over the second quarter of 2024,” said Mark Hussey, chief executive officer and president of Huron. “We continue to execute against our margin enhancement initiatives, which produced strong third quarter and year-to-date margin percentage and earnings per share expansion.”

“Strong sales conversion across all three operating segments in the third quarter positions us well to deliver on our annual revenue and earnings guidance while laying the foundation for continued solid growth in 2025,” added Hussey.

THIRD QUARTER 2024 RESULTS

Revenues before reimbursable expenses increased $11.9 million, or 3.3%, to $370.0 million for the third quarter of 2024, compared to $358.2 million for the third quarter of 2023. The increase in revenues before reimbursable expenses was driven by an increase in demand for Education's Consulting and Managed Services and Digital capabilities, as well as continued strength in demand for Healthcare's Digital capability, reflecting the company's focus on accelerating growth in the healthcare and education industries. These increases in demand were partially offset by a decrease in demand for Commercial's Consulting and Managed Services capability.

Net income increased $5.6 million, or 26.2%, to $27.1 million, or 7.2% of total revenues, for the third quarter of 2024, compared to $21.5 million, or 5.9% of total revenues, for the same quarter last year. Diluted earnings per share increased $0.37, or 33.6%, to $1.47 for the third quarter of 2024, compared to $1.10 for the third quarter of 2023.

Third quarter 2024 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁹⁾ increased $8.3 million, or 19.4%, to $50.9 million, compared to $42.6 million in the same prior year period.

In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).

Adjusted EBITDA⁽⁹⁾ increased $6.9 million, or 14.3%, to $54.9 million, or 14.8% of revenues before reimbursable expenses⁽⁹⁾, in the third quarter of 2024, compared to $48.0 million, or 13.4% of revenues before reimbursable expenses⁽⁹⁾, in the same quarter last year. Adjusted net income⁽⁹⁾ increased $3.9 million, or 14.3%, to $31.1 million, or $1.68 per diluted share, for the third quarter of 2024, compared to $27.2 million, or $1.39 per diluted share, for the same quarter in 2023.

The number of revenue-generating professionals⁽²⁾ increased 10.4% to 5,896 as of September 30, 2024 from 5,341 as of September 30, 2023. The utilization rate⁽⁸⁾ of the company's Consulting capability was 73.6% during the third quarter of 2024, compared to 77.3% during the same period last year. The utilization rate⁽⁸⁾ for the company's Digital capability increased to 77.2% during the third quarter of 2024, compared to 75.4% during the same period last year.

YEAR-TO-DATE 2024 RESULTS

Revenues before reimbursable expenses increased $74.8 million, or 7.3%, to $1.10 billion for the first nine months of 2024, compared to $1.02 billion for the first nine months of 2023. The increase in revenues before reimbursable expenses was driven by continued strength in demand for both our Consulting and Managed Services capability and Digital capability within Healthcare and Education, reflecting the company's focus on accelerating growth in the healthcare and education industries. These increases were partially offset by a decrease in demand for Commercial's Digital and Consulting and Managed Services capabilities.

Net income increased $23.0 million, or 38.5%, to $82.6 million, or 7.4% of total revenues, for the first nine months of 2024, compared to $59.6 million, or 5.7% of total revenues, for the same prior year period. Results for the first nine months of 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter in which Huron was the plaintiff. Diluted earnings per share increased $1.38, or 45.2%, to $4.43 for the first nine months of 2024, compared to $3.05 for the same prior year period. The litigation settlement gain recognized in the second quarter of 2024 had a favorable $0.59 impact on diluted earnings per share for the nine months ended September 30, 2024.

EBITDA⁽⁹⁾ for the first nine months of 2024 increased $29.6 million, or 25.5%, to $146.1 million, compared to $116.5 million in the same prior year period. Results for the first nine months of 2024 include a pre-tax $15.0 million litigation settlement gain related to the completed legal matter in which Huron was the plaintiff.

In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands):

Adjusted EBITDA⁽⁹⁾, which excludes the 2024 litigation settlement gain, increased $18.4 million, or 14.6%, to $144.4 million, or 13.2% of revenues before reimbursable expenses⁽⁹⁾, for the first nine months of 2024, compared to $126.0 million, or 12.3% of revenues before reimbursable expenses⁽⁹⁾, in the same prior year period. Adjusted net income⁽⁹⁾ increased $14.1 million, or 19.8%, to $85.3 million, or $4.57 per diluted share, for the first nine months of 2024, compared to $71.2 million, or $3.64 per diluted share, for the same prior year period.

The number of revenue-generating professionals⁽²⁾ increased 10.4% to 5,896 as of September 30, 2024 from 5,341 as of September 30, 2023. The utilization rate⁽⁸⁾ of the company's Consulting capability was 72.5% for the first nine months of 2024, compared to 76.5% during the same period last year. The utilization rate⁽⁸⁾ for the company's Digital capability increased to 75.4% for the first nine months of 2024, compared to 73.7% during the same period last year.

Additionally, Huron returned $104.0 million to shareholders in the first nine months of 2024 by repurchasing 1,067,545 shares of the company's common stock, representing 5.8% of the company's common stock outstanding as of December 31, 2023.

OPERATING INDUSTRIES

The company’s year-to-date 2024 revenues before reimbursable expenses by operating segment as a percentage of total company revenues before reimbursable expenses are as follows: Healthcare (50%); Education (32%); and Commercial (18%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended September 30, 2024.

OUTLOOK FOR 2024

Based on currently available information, the company is narrowing guidance for full year 2024 revenues before reimbursable expenses to a range of $1.47 billion to $1.49 billion while maintaining its previous midpoint of guidance. The company also anticipates adjusted EBITDA as a percentage of revenues before reimbursable expenses⁽⁹⁾ in a range of 13.0% to 13.5%, and is increasing adjusted diluted earnings per share⁽⁹⁾ guidance to a range of $6.00 to $6.20.

THIRD QUARTER 2024 WEBCAST

The company will host a webcast to discuss its financial results today, October 29, 2024, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron'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.

USE OF NON-GAAP FINANCIAL MEASURES⁽⁹⁾

In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's 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 the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes 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.

Management has provided its outlook regarding adjusted EBITDA and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.

ABOUT HURON

Huron is a global professional services firm that collaborates with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses and their people to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. 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 results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, 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,” “continues,” “goals,” “guidance,” or “outlook” or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn in market conditions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under “Item 1A. Risk Factors” in Huron's Annual Report on Form 10-K for the year ended December 31, 2023 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. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029303264/en/

MEDIA CONTACT 
Allie Bovis 
abovis@hcg.com 

INVESTOR CONTACT 
John D. Kelly 
investor@hcg.com

Source: Huron