Delaware
|
000-50976
|
01-0666114
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
of
incorporation or organization)
|
File
Number)
|
Identification
Number)
|
(c) |
Exhibits
|
Huron
Consulting Group Inc.
|
|||
(Registrant)
|
|||
Date:
|
August 8,
2006
|
/s/
Gary L. Burge
|
|
Gary
L. Burge
|
|||
Vice
President,
|
|||
Chief
Financial Officer and
Treasurer
|
Exhibit
Number
|
Description
|
|
99.1
|
Press
release, dated August 8, 2006
|
· |
Revenues
of $67.8 million
for Q2 2006 increased 34.2% from $50.5 million in Q2
2005.
|
· |
Revenues
of $130.0 million for the six months ended June 30, 2006 increased
33.6%
from $97.3 million in the same period last year.
|
· |
GAAP
diluted earnings per share for Q2 2006 were $0.36 compared to $0.28
in Q2
2005.
|
· |
Billable
consultant headcount totaled 670 at June 30, 2006 compared to 557
at June
30, 2005.
|
Three
months ended
June 30,
|
Six
months ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues
and reimbursable expenses:
|
|||||||||||||
Revenues
|
$
|
67,769
|
$
|
50,517
|
$
|
129,956
|
$
|
97,277
|
|||||
Reimbursable
expenses
|
6,691
|
4,691
|
12,130
|
9,061
|
|||||||||
Total
revenues and reimbursable expenses
|
74,460
|
55,208
|
142,086
|
106,338
|
|||||||||
Direct
costs and reimbursable expenses (exclusive
of depreciation and amortization shown
in operating expenses): |
|||||||||||||
Direct
costs
|
37,436
|
28,754
|
73,426
|
54,698
|
|||||||||
Intangible
assets amortization
|
1,640
|
385
|
1,716
|
385
|
|||||||||
Reimbursable
expenses
|
6,795
|
4,704
|
12,333
|
9,091
|
|||||||||
Total
direct costs and reimbursable expenses
|
45,871
|
33,843
|
87,475
|
64,174
|
|||||||||
Operating
expenses:
|
|||||||||||||
Selling,
general and administrative
|
15,713
|
12,106
|
30,554
|
23,829
|
|||||||||
Depreciation
and amortization
|
1,569
|
1,109
|
3,077
|
1,956
|
|||||||||
Total
operating expenses
|
17,282
|
13,215
|
33,631
|
25,785
|
|||||||||
Operating
income
|
11,307
|
8,150
|
20,980
|
16,379
|
|||||||||
Other
income:
|
|||||||||||||
Interest
income (expense), net
|
(193
|
)
|
64
|
39
|
229
|
||||||||
Other
income
|
¾
|
¾
|
¾
|
1
|
|||||||||
Total
other income
|
(193
|
)
|
64
|
39
|
230
|
||||||||
Income
before provision for income taxes
|
11,114
|
8,214
|
21,019
|
16,609
|
|||||||||
Provision
for income taxes
|
4,834
|
3,557
|
9,143
|
7,125
|
|||||||||
Net
income
|
$
|
6,280
|
$
|
4,657
|
$
|
11,876
|
$
|
9,484
|
|||||
Earnings
per share:
|
|||||||||||||
Basic
|
$
|
0.39
|
$
|
0.30
|
$
|
0.73
|
$
|
0.61
|
|||||
Diluted
|
$
|
0.36
|
$
|
0.28
|
$
|
0.69
|
$
|
0.57
|
|||||
Weighted
average shares used in calculating earnings
per share:
|
|||||||||||||
Basic
|
16,309
|
15,646
|
16,194
|
15,597
|
|||||||||
Diluted
|
17,244
|
16,773
|
17,120
|
16,725
|
|||||||||
June 30,
2006
|
December 31,
2005
|
||||||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
3,381
|
$
|
31,820
|
|||
Receivables
from clients, net
|
38,472
|
29,164
|
|||||
Unbilled
services, net
|
23,242
|
18,187
|
|||||
Income
tax receivable
|
3,092
|
232
|
|||||
Deferred
income taxes
|
14,747
|
12,553
|
|||||
Other
current assets
|
5,211
|
5,799
|
|||||
Total
current assets
|
88,145
|
97,755
|
|||||
Property
and equipment, net
|
23,504
|
13,162
|
|||||
Deferred
income taxes
|
3,951
|
2,154
|
|||||
Deposits
and other assets
|
1,273
|
1,147
|
|||||
Intangible
assets, net
|
3,085
|
844
|
|||||
Goodwill
|
35,501
|
14,637
|
|||||
Total
assets
|
$
|
155,459
|
$
|
129,699
|
|||
Liabilities
and stockholders’ equity
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
2,944
|
$
|
2,671
|
|||
Accrued
expenses
|
9,846
|
4,357
|
|||||
Accrued
payroll and related benefits
|
23,318
|
32,073
|
|||||
Income
tax payable
|
¾
|
491
|
|||||
Deferred
revenues
|
5,180
|
4,609
|
|||||
Borrowings
|
6,500
|
¾
|
|||||
Current
portion of notes payable and capital lease obligations
|
1,141
|
1,282
|
|||||
Total
current liabilities
|
48,929
|
45,483
|
|||||
Non-current
liabilities:
|
|||||||
Accrued
expenses and other liabilities
|
604
|
274
|
|||||
Notes
payable and capital lease obligations, net of current
portion
|
1,132
|
2,127
|
|||||
Deferred
lease incentives
|
10,175
|
6,283
|
|||||
Total
non-current liabilities
|
11,911
|
8,684
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders’
equity
|
|||||||
Common
stock; $0.01 par value; 500,000,000 shares authorized; 17,720,301
and
17,397,312 shares issued at June 30, 2006 and December 31, 2005,
respectively
|
177
|
174
|
|||||
Treasury
stock, at cost, 294,341 and 148,933 shares at June 30, 2006 and
December 31, 2005, respectively
|
(6,029
|
)
|
(3,061
|
)
|
|||
Additional
paid-in capital
|
69,084
|
58,908
|
|||||
Retained
earnings
|
31,387
|
19,511
|
|||||
Total
stockholders’ equity
|
94,619
|
75,532
|
|||||
Total
liabilities and stockholders equity
|
$
|
155,459
|
$
|
129,699
|
Three
Months Ended
June 30,
|
Six
Months Ended
June 30,
|
||||||||||||
Segment
Operating Results (in thousands):
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Revenues
and reimbursable expenses:
|
|||||||||||||
Financial
Consulting
|
$
|
31,432
|
$
|
29,890
|
$
|
66,629
|
$
|
54,443
|
|||||
Operational
Consulting
|
36,337
|
20,627
|
63,327
|
42,834
|
|||||||||
Total
revenues
|
67,769
|
50,517
|
129,956
|
97,277
|
|||||||||
Total
reimbursable expenses
|
6,691
|
4,691
|
12,130
|
9,061
|
|||||||||
Total
revenues and reimbursable expenses
|
$
|
74,460
|
$
|
55,208
|
$
|
142,086
|
$
|
106,338
|
|||||
Operating
income:
|
|||||||||||||
Financial
Consulting
|
$
|
12,648
|
$
|
12,457
|
$
|
26,094
|
$
|
22,444
|
|||||
Operational
Consulting
|
12,801
|
7,237
|
22,730
|
15,988
|
|||||||||
Total
segment operating income
|
$
|
25,449
|
$
|
19,694
|
$
|
48,824
|
$
|
38,432
|
|||||
Other
Operating Data:
|
|||||||||||||
Number
of consultants (at period end)
(1):
|
|||||||||||||
Financial
Consulting
|
300
|
284
|
|||||||||||
Operational
Consulting
|
370
|
273
|
|||||||||||
Total
|
670
|
557
|
|||||||||||
Average
number of consultants (for the period):
|
|||||||||||||
Financial
Consulting
|
300
|
270
|
304
|
270
|
|||||||||
Operational
Consulting
|
355
|
256
|
344
|
243
|
|||||||||
Total
|
655
|
526
|
648
|
513
|
|||||||||
Utilization
rate (2):
|
|||||||||||||
Financial
Consulting
|
74.1
|
%
|
80.4
|
%
|
79.0
|
%
|
77.5
|
%
|
|||||
Operational
Consulting
|
78.7
|
%
|
71.6
|
%
|
75.5
|
%
|
75.0
|
%
|
|||||
Total
|
76.7
|
%
|
76.1
|
%
|
77.1
|
%
|
76.3
|
%
|
|||||
Average
billing rate per hour (3):
|
|||||||||||||
Financial
Consulting
|
$
|
294
|
$
|
282
|
$
|
285
|
$
|
278
|
|||||
Operational
Consulting
|
$
|
247
|
$
|
223
|
$
|
240
|
$
|
226
|
|||||
Total
|
$
|
267
|
$
|
254
|
$
|
261
|
$
|
252
|
(1) |
Consultants
consist of our billable professionals, excluding interns and independent
contractors.
|
(2) |
We
calculate the utilization rate for our consultants by dividing the
number
of hours all our consultants worked on client assignments during
a period
by the total available working hours for all of our consultants during
the
same period, assuming a forty-hour work week, less paid holidays
and
vacation days.
|
(3) |
Average
billing rate per hour is calculated by dividing revenues for a period
by
the number of hours worked on client assignments during the same
period.
|
Three
months ended
June
30,
|
Six
months ended
June
30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues
|
$
|
67,769
|
$
|
50,517
|
$
|
129,956
|
$
|
97,277
|
|||||
Operating
income
|
$
|
11,307
|
$
|
8,150
|
$
|
20,980
|
$
|
16,379
|
|||||
Add
back:
|
|||||||||||||
Depreciation
and amortization
|
3,209
|
1,494
|
4,793
|
2,341
|
|||||||||
Earnings
before interest, taxes, depreciation and
amortization (EBITDA) (4)
|
14,516
|
9,644
|
25,773
|
18,720
|
|||||||||
Add
back:
|
|||||||||||||
Share-based
compensation
|
2,459
|
1,696
|
4,722
|
3,106
|
|||||||||
Secondary
offering costs
|
¾
|
¾
|
567
|
¾
|
|||||||||
Total
adjusted items
|
2,459
|
1,696
|
5,289
|
3,106
|
|||||||||
Adjusted
EBITDA (4)
|
$
|
16,975
|
$
|
11,340
|
$
|
31,062
|
$
|
21,826
|
|||||
Adjusted
EBITDA as a percentage of revenues
|
25.0
|
%
|
22.4
|
%
|
23.9
|
%
|
22.4
|
%
|
Three
months ended
June
30,
|
Six
months ended
June
30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
income
|
$
|
6,280
|
$
|
4,657
|
$
|
11,876
|
$
|
9,484
|
|||||
Diluted
earnings per share
|
$
|
0.36
|
$
|
0.28
|
$
|
0.69
|
$
|
0.57
|
|||||
Add
back: Secondary offering costs, net of tax
|
¾
|
¾
|
567
|
¾
|
|||||||||
Net
income before secondary offering costs (4)
|
$
|
6,280
|
$
|
4,657
|
$
|
12,443
|
$
|
9,484
|
|||||
Diluted
earnings per share before secondary offering
costs (4)
|
$
|
0.36
|
$
|
0.28
|
$
|
0.73
|
$
|
0.57
|
|||||
Add
back other adjustments:
|
|||||||||||||
Amortization
of intangible assets
|
1,844
|
477
|
2,059
|
477
|
|||||||||
Share-based
compensation
|
2,459
|
1,696
|
4,722
|
3,106
|
|||||||||
Tax
effect
|
(1,764
|
)
|
(874
|
)
|
(2,780
|
)
|
(1,440
|
)
|
|||||
Total
adjustments, net of tax
|
2,539
|
1,299
|
4,001
|
2,143
|
|||||||||
Adjusted
net income before certain charges (4)
|
$
|
8,819
|
$
|
5,956
|
$
|
16,444
|
$
|
11,627
|
|||||
Adjusted
diluted earnings per share before certain
charges (4)
|
$
|
0.51
|
$
|
0.36
|
$
|
0.96
|
$
|
0.70
|
(4) |
In
evaluating the Company’s financial performance, management uses earnings
before interest, taxes, depreciation and amortization (“EBITDA”), adjusted
EBITDA and adjusted net income, which are non-GAAP measures. Management
believes that the use of such measures, as supplements to operating
income, net income and other GAAP measures, are useful indicators
of the
Company’s financial performance and its ability to generate cash flows
from operations that are available for taxes and capital expenditures.
Additionally, these measures exclude certain items to provide better
comparability from period to period. 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.
|