Huron Consulting Group Reports First Quarter 2007 Financial Results
- Revenues of $116.0 million for Q1 2007 increased 86.5% from $62.2 million in Q1 2006.
- Diluted earnings per share for Q1 2007 were $0.55 compared to $0.33 in Q1 2006.
CHICAGO - May 3, 2007 - Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of financial and operational consulting services, today announced financial results for the first quarter ended March 31, 2007.
"We are very pleased by Huron's strong growth in the quarter, and we continue to see increased demand across our service offerings," said Gary E. Holdren, chairman and chief executive officer, Huron Consulting Group. "We continue to be able to attract and retain top talent focused on superior client service. Huron is now approaching 1,000 revenue-generating professionals - a significant milestone for a company that will mark its 5-year anniversary this month."
"We remain very optimistic and excited about the marketplace demand during the rest of 2007. Huron is well-positioned for 2007 and longer-term growth," added Holdren.
First Quarter 2007 Results
Revenues of $116.0 million for the first quarter of 2007 increased 86.5% from $62.2 million for the first quarter of 2006. The Company's first quarter 2007 operating income increased 95.5% to $18.9 million compared to $9.7 million in the first quarter of 2006. Net income was $9.8 million, or $0.55 per diluted share, for the first quarter of 2007 compared to $5.6 million, or $0.33 per diluted share, for the comparable quarter last year. Financial results for the first quarter of 2007 included $2.2 million of rapid amortization of intangible assets.
First quarter 2007 earnings before interest, taxes, depreciation and amortization ("EBITDA") (5) increased 123.8% to $25.2 million, or 21.7% of revenues, compared to $11.3 million, or 18.1% of revenues, in the comparable quarter last year. Adjusted EBITDA (5), which excludes share-based compensation expense and costs associated with a secondary offering of the Company's common stock in the first quarter of 2006, increased 108.7% to $29.4 million in the first quarter of 2007, or 25.3% of revenues, compared to $14.1 million, or 22.7% of revenues, in the comparable quarter last year.
Headcount of revenue-generating professionals increased 53.9% to 979 at March 31, 2007, compared to 636 at March 31, 2006. Billable consultant utilization rate was 78.1% during the first quarter of 2007 compared with 77.5% during the same period last year. Average billing rate per hour increased 5.8% to $272 for the first quarter of 2007 from $257 for the first quarter of 2006.
New Operating Segments for 2007
Huron continues to demonstrate the success of its broad portfolio of service offerings with solid revenue growth based upon strong market demand.
In response to Huron's continued organic growth and acquisitions of complementary businesses, the Company has reorganized its practice areas and service lines to better meet market demand and serve clients. Under the new organizational structure, Huron has four operating segments as follows: Legal Financial Consulting; Legal Operational Consulting; Health and Education Consulting; and Corporate Consulting. Effective January 1, 2007, the Company began reporting financial results under the new operating segment structure.
Segment results are included in the attached schedules and in Huron's Form 10-Q filing for the quarter ended March 31, 2007.
Acquisitions of Wellspring Partners LTD and Glass & Associates, Inc.
In January 2007, Huron acquired Wellspring Partners LTD, a leading management consulting firm specializing in integrated performance improvement services for hospitals and health systems, and Glass & Associates, Inc., a leading turnaround and restructuring firm.
Outlook for 2007
Based on currently available information, the Company expects Q2 2007 revenues before reimbursable expenses in a range of $117.0 million to $121.0 million, EBITDA in a range of $25.0 million to $26.5 million, operating income in a range of $18.5 million to $20.0 million, and between $0.53 and $0.57 in diluted earnings per share.
The Company anticipates full year 2007 revenues before reimbursable expenses in a range of $482.0 million to $495.0 million, EBITDA in a range of $101.0 million to $106.0 million, operating income in a range of $77.0 million to $82.0 million, and between $2.24 and $2.37 in diluted earnings per share.
Share-based compensation expense of approximately $5.0 million and $19.5 million is included in the Q2 2007 and full year 2007 estimates, respectively. Weighted average diluted share counts for 2007 are estimated to be 18.0 million for Q2 2007 and 18.1 million for full year 2007.
First Quarter 2007 Webcast
The Company will host a webcast to discuss its financial results today at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). The webcast may be accessed at www.huronconsultinggroup.com. A rebroadcast will be available approximately two hours after the end of the webcast and for 90 days thereafter.
About Huron Consulting Group
Huron Consulting Group helps clients effectively address complex challenges that arise in litigation, disputes, investigations, regulatory compliance, procurement, financial distress, and other sources of significant conflict or change. The Company also helps clients deliver superior customer and capital market performance through integrated strategic, operational, and organizational change. Huron provides services to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.
Statements in this press release, which are not historical in nature and concern Huron Consulting Group's current expectations about the company's reported results for 2006 and future results in 2006 are "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," or "continue." These forward-looking statements reflect our current expectation about our future results, performance or achievements, including without limitation, that our business continues to grow at the current expectations with respect to, among other factors, utilization and billing rates and number of consultants; that we are able to expand our service offerings through our existing consultants and new hires; and that existing market conditions do not change from current expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Therefore you should not place undue reliance on these forward-looking statements. Please see "Risk Factors" in our Form 10-K and in other documents we file with the Securities and Exchange Commission for a complete description of the material risks we face.