Delaware
|
000-50976
|
01-0666114
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
of
incorporation or organization)
|
File
Number)
|
Identification
Number)
|
(d)
|
Exhibits
|
|
99.1
|
Press
release, dated February 22,
2007
|
Huron
Consulting Group Inc.
|
|||
(Registrant)
|
|||
Date:
|
February 22,
2007
|
/s/
Gary L. Burge
|
|
Gary
L. Burge
|
|||
Vice
President,
|
|||
Chief
Financial Officer and
Treasurer
|
Exhibit
Number
|
Description
|
|
99.1
|
Press
release, dated February 22, 2007
|
· |
Revenues
of $83.4 million for Q4 2006 increased 50.0% from $55.6 million
in Q4
2005.
|
· |
Full
year 2006 revenues of $288.6 million increased 39.3% from full
year 2005
revenues of $207.2 million.
|
· |
Diluted
earnings per share for Q4 2006 was $0.46 compared to $0.27
in Q4
2005.
|
· |
Diluted
earnings per share for the full year 2006 was $1.54 compared
to $1.05 for
the full year 2005.
|
· |
Revenue-generating
professional headcount increased 33.2% to 842 at the end of
2006 compared
to 632 at the end of 2005.
|
Three
months ended
December 31,
|
Twelve
months ended
December 31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues
and reimbursable expenses:
|
|||||||||||||
Revenues
|
$
|
83,438
|
$
|
55,627
|
$
|
288,588
|
$
|
207,213
|
|||||
Reimbursable
expenses
|
13,279
|
4,848
|
33,330
|
18,749
|
|||||||||
Total
revenues and reimbursable expenses
|
96,717
|
60,475
|
321,918
|
225,962
|
|||||||||
Direct
costs and reimbursable expenses
(exclusive
of depreciation and amortization shown in
operating expenses):
|
|||||||||||||
Direct
costs
|
47,170
|
32,474
|
163,569
|
117,768
|
|||||||||
Intangible
assets amortization
|
24
|
247
|
2,207
|
1,314
|
|||||||||
Reimbursable
expenses
|
13,266
|
4,917
|
33,506
|
18,982
|
|||||||||
Total
direct costs and reimbursable expenses
|
60,460
|
37,638
|
199,282
|
138,064
|
|||||||||
Operating
expenses:
|
|||||||||||||
Selling,
general and administrative
|
18,648
|
13,432
|
65,926
|
51,035
|
|||||||||
Depreciation
and amortization
|
3,203
|
1,421
|
9,201
|
5,282
|
|||||||||
Total
operating expenses
|
21,851
|
14,853
|
75,127
|
56,317
|
|||||||||
Operating
income
|
14,406
|
7,984
|
47,509
|
31,581
|
|||||||||
Other
income (expense):
|
|||||||||||||
Interest
income (expense), net
|
(338
|
)
|
159
|
(703
|
)
|
472
|
|||||||
Other
income (expense)
|
16
|
(1
|
)
|
16
|
(37
|
)
|
|||||||
Total
other income (expense)
|
(322
|
)
|
158
|
(687
|
)
|
435
|
|||||||
Income
before provision for income taxes
|
14,084
|
8,142
|
46,822
|
32,016
|
|||||||||
Provision
for income taxes
|
6,056
|
3,623
|
20,133
|
14,247
|
|||||||||
Net
income
|
$
|
8,028
|
$
|
4,519
|
$
|
26,689
|
$
|
17,769
|
|||||
Earnings
per share:
|
|||||||||||||
Basic
|
$
|
0.48
|
$
|
0.28
|
$
|
1.63
|
$
|
1.13
|
|||||
Diluted
|
$
|
0.46
|
$
|
0.27
|
$
|
1.54
|
$
|
1.05
|
|||||
Weighted
average shares used in calculating earnings per share:
|
|||||||||||||
Basic
|
16,616
|
15,990
|
16,359
|
15,741
|
|||||||||
Diluted
|
17,607
|
17,027
|
17,317
|
16,858
|
|||||||||
December
31,
2006
|
December 31,
2005
|
||||||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
16,572
|
$
|
31,820
|
|||
Receivables
from clients, net
|
41,848
|
29,164
|
|||||
Unbilled
services, net
|
22,627
|
18,187
|
|||||
Income
tax receivable
|
3,637
|
232
|
|||||
Deferred
income taxes
|
15,290
|
12,553
|
|||||
Other
current assets
|
6,435
|
5,799
|
|||||
Total
current assets
|
106,409
|
97,755
|
|||||
Property
and equipment, net
|
27,742
|
13,162
|
|||||
Deferred
income taxes
|
5,433
|
2,154
|
|||||
Deposits
and other assets
|
2,294
|
1,147
|
|||||
Intangible
assets, net
|
4,238
|
844
|
|||||
Goodwill
|
53,328
|
14,637
|
|||||
Total
assets
|
$
|
199,444
|
$
|
129,699
|
|||
Liabilities
and stockholders’ equity
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
2,684
|
$
|
2,671
|
|||
Accrued
expenses
|
12,712
|
4,357
|
|||||
Accrued
payroll and related benefits
|
41,649
|
32,073
|
|||||
Income
tax payable
|
¾
|
491
|
|||||
Deferred
revenues
|
4,035
|
4,609
|
|||||
Borrowings
|
8,000
|
¾
|
|||||
Current
portion of notes payable and capital lease obligations
|
1,282
|
1,282
|
|||||
Total
current liabilities
|
70,362
|
45,483
|
|||||
Non-current
liabilities:
|
|||||||
Deferred
compensation and other liabilities
|
1,169
|
274
|
|||||
Notes
payable and capital lease obligations, net of current
portion
|
1,000
|
2,127
|
|||||
Deferred
lease incentives
|
10,333
|
6,283
|
|||||
Total
non-current liabilities
|
12,502
|
8,684
|
|||||
Commitments
and contingencies
|
¾
|
¾
|
|||||
Stockholders’
equity
|
|||||||
Common
stock; $0.01 par value; 500,000,000 shares authorized; 18,470,623
and
17,397,312 shares issued at
December 31, 2006 and 2005, respectively
|
178
|
174
|
|||||
Treasury
stock, at cost, 398,783 and 148,933 shares at December 31, 2006
and
2005, respectively
|
(9,396
|
)
|
(3,061
|
)
|
|||
Additional
paid-in capital
|
79,598
|
58,908
|
|||||
Retained
earnings
|
46,200
|
19,511
|
|||||
Total
stockholders’ equity
|
116,580
|
75,532
|
|||||
Total
liabilities and stockholders equity
|
$
|
199,444
|
$
|
129,699
|
Three
Months Ended
December 31,
|
Twelve
Months Ended
December 31,
|
||||||||||||
Segment
Operating Results (in thousands):
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Revenues
and reimbursable expenses:
|
|||||||||||||
Financial
Consulting
|
$
|
37,269
|
$
|
30,476
|
$
|
138,543
|
$
|
118,178
|
|||||
Operational
Consulting
|
46,169
|
25,151
|
150,045
|
89,035
|
|||||||||
Total
revenues
|
83,438
|
55,627
|
288,588
|
207,213
|
|||||||||
Total
reimbursable expenses
|
13,279
|
4,848
|
33,330
|
18,749
|
|||||||||
Total
revenues and reimbursable expenses
|
$
|
96,717
|
$
|
60,475
|
$
|
321,918
|
$
|
225,962
|
|||||
Operating
income:
|
|||||||||||||
Financial
Consulting
|
$
|
17,700
|
$
|
10,832
|
$
|
58,016
|
$
|
46,676
|
|||||
Operational
Consulting
|
14,577
|
9,181
|
51,985
|
31,680
|
|||||||||
Total
segment operating income
|
$
|
32,277
|
$
|
20,013
|
$
|
110,001
|
$
|
78,356
|
|||||
Other
Operating Data:
|
|||||||||||||
Number
of revenue-generating professionals (at
period end)
(1):
|
|||||||||||||
Financial
Consulting - Billable Consultants
|
344
|
306
|
|||||||||||
Operational
Consulting - Billable Consultants
|
450
|
326
|
|||||||||||
Operational
Consulting - Other Professionals
|
48
|
¾
|
|||||||||||
Total
|
842
|
632
|
|||||||||||
Average
number of revenue-generating professionals (for the period)
(1):
|
|||||||||||||
Financial
Consulting - Billable Consultants
|
337
|
306
|
316
|
286
|
|||||||||
Operational
Consulting - Billable Consultants
|
440
|
326
|
382
|
278
|
|||||||||
Operational
Consulting - Other Professionals
|
49
|
¾
|
18
|
¾
|
|||||||||
Total
|
826
|
632
|
716
|
564
|
|||||||||
Billable
consultant utilization rate (2):
|
|||||||||||||
Financial
Consulting
|
83.2
|
%
|
81.4
|
%
|
80.5
|
%
|
79.9
|
%
|
|||||
Operational
Consulting
|
73.9
|
%
|
73.8
|
%
|
75.6
|
%
|
73.1
|
%
|
|||||
Total
|
77.9
|
%
|
77.4
|
%
|
77.8
|
%
|
76.5
|
%
|
|||||
Average
billing rate per hour (3):
|
|||||||||||||
Financial
Consulting
|
$
|
282
|
$
|
270
|
$
|
282
|
$
|
275
|
|||||
Operational
Consulting
|
$
|
242
|
$
|
226
|
$
|
240
|
$
|
222
|
|||||
Total
|
$
|
261
|
$
|
249
|
$
|
260
|
$
|
249
|
(1) |
Revenue-generating
professionals consist of our billable consultants and other professionals.
Billable consultants generate revenues primarily based on number
of hours
worked while our other professionals generate revenues based on
number of
hours worked and units produced, such as pages reviewed and data
processed. Revenue-generating professionals exclude interns and
independent contractors.
|
(2) |
We
calculate the utilization rate for our billable consultants by
dividing
the number of hours all our billable consultants worked on client
assignments during a period by the total available working hours
for all
of our billable consultants during the same period, assuming a
forty-hour
work week, less paid holidays and vacation
days.
|
(3) |
For
engagements where revenues are based on number of hours worked
by our
billable consultants, 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
December
31,
|
Twelve
months ended
December 31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues
|
$
|
83,438
|
$
|
55,627
|
$
|
288,588
|
$
|
207,213
|
|||||
Operating
income
|
$
|
14,406
|
$
|
7,984
|
$
|
47,509
|
$
|
31,581
|
|||||
Add
back:
|
|||||||||||||
Depreciation
and amortization
|
3,227
|
1,668
|
11,408
|
6,596
|
|||||||||
Earnings
before interest, taxes, depreciation and
amortization (EBITDA) (4)
|
17,633
|
9,652
|
58,917
|
38,177
|
|||||||||
Add
back:
|
|||||||||||||
Share-based
compensation
|
2,616
|
1,950
|
9,839
|
6,943
|
|||||||||
Secondary
offering costs
|
¾
|
90
|
567
|
474
|
|||||||||
Total
adjusted items
|
2,616
|
2,040
|
10,406
|
7,417
|
|||||||||
Adjusted
EBITDA (4)
|
$
|
20,249
|
$
|
11,692
|
$
|
69,323
|
$
|
45,594
|
|||||
Adjusted
EBITDA as a percentage of revenues
|
24.3
|
%
|
21.0
|
%
|
24.0
|
%
|
22.0
|
%
|
Three
months ended
December 31,
|
Twelve
months ended
December 31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
income
|
$
|
8,028
|
$
|
4,519
|
$
|
26,689
|
$
|
17,769
|
|||||
Diluted
earnings per share
|
$
|
0.46
|
$
|
0.27
|
$
|
1.54
|
$
|
1.05
|
|||||
Add
back secondary offering costs, net of tax
|
¾
|
90
|
567
|
474
|
|||||||||
Net
income before secondary offer costs (4)
|
$
|
8,028
|
$
|
4,609
|
$
|
27,256
|
18,243
|
||||||
Diluted
earnings per share before secondary offering
costs
(4)
|
$
|
0.46
|
$
|
0.27
|
$
|
1.57
|
$
|
1.08
|
|||||
Add
back other adjustments:
|
|||||||||||||
Write-off
of intangible asset (5)
|
¾
|
¾
|
¾
|
557
|
|||||||||
Amortization
of intangible assets
|
1,030
|
386
|
4,547
|
1,674
|
|||||||||
Share-based
compensation
|
2,616
|
1,950
|
9,839
|
6,943
|
|||||||||
Tax
effect
|
(1,491
|
)
|
(985
|
)
|
(5,884
|
)
|
(3,789
|
)
|
|||||
Total
adjustments, net of tax
|
2,155
|
1,351
|
8,502
|
5,385
|
|||||||||
Adjusted
net income (4)
|
$
|
10,183
|
$
|
5,960
|
$
|
35,758
|
$
|
23,628
|
|||||
Adjusted
diluted earnings per share (4)
|
$
|
0.58
|
$
|
0.35
|
$
|
2.06
|
$
|
1.40
|
(4) |
In
evaluating the Company’s financial performance, management uses earnings
before interest, taxes, depreciation and amortization (“EBITDA”), adjusted
EBITDA, net income before secondary offering costs, 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.
|
(5) | During the third quarter of 2005, one of the Company’s clients filed for bankruptcy. The client filed an application with the Bankruptcy Court to authorize the retention of the Company during the bankruptcy process. The Bankruptcy Court approved the Company’s retention. In connection with the retention, the Company wrote-off an intangible asset and recorded a charge of $0.6 million. |