Huron Consulting Group Reports First Quarter 2008 Financial Results
- Revenues of $139.4 million for Q1 2008 increased 20.2% from $116.0 million in Q1 2007.
- Diluted earnings per share for Q1 2008 were $0.56 compared to $0.55 in Q1 2007.
- Average number of full-time billable consultants(1) totaled 1,237 for Q1 2008 compared to 919 for Q1 2007. Average number of full-time equivalent professionals(4) totaled 753 for Q1 2008 compared to 473 in the same period last year.
CHICAGO - May 6, 2008 - 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, 2008.
“We are confident that our balanced portfolio of offerings will continue to deliver results,” said Gary E. Holdren, chairman and chief executive officer, Huron Consulting Group. “Huron’s business remains fundamentally strong and is positioned to generate growth in the future. We continue to execute our business plan by identifying market demands, meeting the evolving needs of the marketplace, and helping clients solve complex business challenges.”
First Quarter 2008 Results
Revenues of $139.4 million for the first quarter of 2008 increased 20.2% from $116.0 million for the first quarter of 2007. The Company's first quarter 2008 operating income increased 9.1% to $20.6 million compared to $18.9 million in the first quarter of 2007. Net income was $10.2 million, or $0.56 per diluted share, for the first quarter of 2008 compared to $9.8 million, or $0.55 per diluted share, for the same period last year. Financial results for the first quarter of 2007 included $2.2 million of rapid amortization on intangible assets. There was no rapid amortization in the first quarter of 2008.
First quarter 2008 earnings before interest, taxes, depreciation and amortization ("EBITDA")(5)increased 2.4% to $25.8 million, or 18.5% of revenues, compared to $25.2 million, or 21.7% of revenues, in the comparable quarter last year. Adjusted EBITDA(5), which excludes share-based compensation expense, rose 9.5% to $32.2 million, or 23.1% of revenues, compared to $29.4 million, or 25.3% of revenues, in the comparable quarter last year.
The average number of full-time billable consultants(1) increased 34.6% to 1,237 in the first quarter of 2008 compared to 919 in the same quarter last year. Huron also has a number of variable, on-demand consultants, contract reviewers and other professionals who generate revenues based on number of hours worked and units produced, such as pages reviewed and data processed. The average number of these full-time equivalent professionals(4) increased 59.2% to 753 in the first quarter of 2008 compared to 473 for the comparable period in 2007. Full-time billable consultant utilization rate was 65.0% during the first quarter of 2008 compared with 78.1% during the same period last year. Average billing rate per hour for full-time billable consultants was $276 for the first quarter of 2008 compared to $271 for the first quarter of 2007.
Operating Segments Results
Huron continues to demonstrate the success of its broad portfolio of service offerings with solid revenue growth based upon strong market demand. The Company’s operating segments are as follows: Health and Education; Financial Consulting; Legal Consulting; and Corporate Consulting.
Segment results are included in the attached schedules and in Huron's Form 10-Q filing for the quarter ended March 31, 2008.
Outlook for 2008
Based on currently available information, the Company expects Q2 2008 revenues before reimbursable expenses in a range of $140 million to $145 million, EBITDA in a range of $23 million to $26 million, operating income in a range of $18 million to $21 million, and between $0.48 and $0.57 in diluted earnings per share.
The Company anticipates full year 2008 revenues before reimbursable expenses in a range of $590 million to $620 million, EBITDA in a range of $116 million to $127 million, operating income in a range of $95 million to $106 million, and between $2.57 and $2.88 in diluted earnings per share.
Share-based compensation expense of approximately $7 million and $28 million is included in the Q2 and full year 2008 estimates, respectively. Weighted average diluted share counts for 2008 are estimated to be 18.4 million for Q2 2008 and 18.5 million for full year 2008.
First Quarter 2008 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 conference call is being webcast by Thomson and can be accessed at Huron Consulting Group’s website at www.huronconsultinggroup.com/webcasts.aspx. A replay 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 that are not historical in nature and concern Huron Consulting Group's current expectations about the Company's future results in 2008 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 “continues.” 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 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 change from current expectations. 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 future results, levels of activity, 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 2007 Annual Report on 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.
Jennifer Frost Hennagir, Director
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Gary L. Burge, Vice President, Chief Financial Officer and Treasurer
P (312) 583-8722
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