UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
_____________________
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
February 20,
2008
Date of
Report (Date of earliest event reported)
_____________________
Huron
Consulting Group Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware |
000-50976 |
01-0666114 |
|
(State
or other jurisdiction |
(Commission |
(IRS
Employer |
|
of
incorporation or organization) |
File
Number) |
Identification
Number) |
550
West Van Buren Street
Chicago,
Illinois
60607
(Address
of principal executive offices)
(Zip
Code)
(312)
583-8700
(Registrant’s
telephone number, including area code)
_____________________
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02. Results
of Operations and Financial Condition.
On
February 20, 2008, Huron Consulting Group Inc. issued a press release
announcing its financial results for the quarter and year ended
December 31, 2007. A copy of the press release is furnished as Exhibit 99.1
to this Current Report on Form 8-K and is incorporated in this report as if
fully set forth herein.
Item
9.01. Financial
Statements and Exhibits.
|
(d) |
Exhibits | |
|
99.1 Press
release, dated February 20, 2008 |
- 1 -
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
Huron
Consulting Group Inc. | |||
|
(Registrant) | |||
|
Date: |
February
20, 2008 |
/s/
Gary L. Burge | |
|
Gary
L. Burge | |||
|
Vice
President, | |||
|
Chief
Financial Officer and Treasurer |
- 2
- -
EXHIBIT
INDEX
|
Exhibit
Number |
Description | |
|
99.1
|
Press
release, dated February 20, 2008
|
[Huron
Consulting Group Logo]
News
FOR
IMMEDIATE RELEASE
February
20, 2008
Huron
Consulting Group Reports
Fourth
Quarter and Full Year 2007 Financial Results
| · |
Revenues
of $136.0 million for Q4 2007 increased 63.0% from $83.4 million in Q4
2006. |
| · |
Full
year 2007 revenues of $504.3 million increased 74.7% from full year 2006
revenues of $288.6 million. |
| · |
Diluted
earnings per share for Q4 2007 were $0.63 compared to $0.46 in Q4
2006. |
| · |
Diluted
earnings per share for the full year 2007 were $2.32 compared to $1.54 for
the full year 2006. |
| · |
Average
number of full-time billable consultants(1)
totaled 1,199 for Q4 2007 compared to 777 for Q4 2006. Average number of
full-time equivalent professionals(4)
totaled 616 for Q4 2007 compared to 343 in the same period last
year. |
CHICAGO -
February 20, 2008 - Huron Consulting Group Inc. (NASDAQ: HURN), a leading
provider of financial and operational consulting services, today announced
financial results for the fourth quarter and full year ended December 31,
2007.
"We are
pleased by Huron's strong growth in 2007 and we continued to see increased
demand across our service offerings. We made significant progress in continuing
to build a business model that will meet the evolving needs of the marketplace.
Through strategic acquisitions and organic growth, Huron was able to attract and
retain top talent focused on superior client service,” said Gary E. Holdren,
chairman and chief executive officer, Huron Consulting Group.
"We
remain optimistic and excited about the demand for our services entering 2008.
Our Health and Education Consulting and Legal Consulting segments were major
contributors to our strong results in 2007. Our portfolio of healthcare
offerings has done very well, and we expect great things in that area in 2008.
Our innovative approach to the legal marketplace was significantly bolstered by
the introduction of the V3locityTM
e-discovery solution in early 2008. In Financial Consulting, we are providing
full service solutions to the office of the CFO and their direct reports. Our
complement of finance and accounting experts combined with our on-demand
resources are being well received in the marketplace. Our Strategy practice is
thriving, and we are prepared to meet the anticipated increase in restructuring
activity this year. Huron can help clients steer through the current climate of
challenge and uncertainty,” said Holdren.
Fourth
Quarter 2007 Results
Revenues
of $136.0 million for the fourth quarter of 2007 increased 63.0% from $83.4
million for the fourth quarter of 2006. The Company's fourth quarter 2007
operating income increased 61.3% to $23.2 million compared to $14.4 million in
the fourth quarter of 2006. Net income was $11.5 million, or $0.63 per diluted
share, for the fourth quarter of 2007 compared to $8.0 million, or $0.46 per
diluted share, for the same period last year. Financial results for the fourth
quarter of 2007 included $1.2 million of rapid amortization on intangible
assets. There was no rapid amortization during the fourth quarter of
2006.
Fourth
quarter 2007 earnings before interest, taxes, depreciation and amortization
("EBITDA")(5)
increased 65.5% to $29.2 million, or 21.5% of revenues, compared to $17.6
million, or 21.1% of revenues, in the comparable quarter last year. Adjusted
EBITDA(5), which
excludes share-based compensation expense, rose 71.6% to $34.8 million, or 25.6%
of revenues, compared to $20.2 million, or 24.3% of revenues, in the comparable
quarter last year.
The
average number of full-time billable consultants(1)
increased 54.3% to 1,199 in the fourth quarter of 2007 compared to 777 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 full-time equivalent
professionals(4)
increased 79.6% to 616 in the fourth quarter of 2007 compared to 343 for the
comparable period in 2006. Full-time billable consultant utilization rate was
69.9% during the fourth quarter of 2007 compared with 77.9% during the same
period last year. Average billing rate per hour for full-time billable
consultants increased 5.4% to $275 for the fourth quarter of 2007 from $261 for
the fourth quarter of 2006.
Full
Year 2007 Results
Revenues
of $504.3 million for the full year ended December 31, 2007 increased 74.7% from
$288.6 million for the full year ended December 31, 2006. The Company's
operating income increased 76.3% to $83.7 million for the full year ended
December 31, 2007 compared to $47.5 million for the same period last year. Net
income was $41.9 million, or $2.32 per diluted share, for the full year ended
December 31, 2007 compared to $26.7 million, or $1.54 per diluted share, for the
comparable period last year. Financial results for the full year 2007 and 2006
included $7.9 million and $2.1 million, respectively, of rapid
amortization of intangible assets.
Full year
2007 EBITDA(5)
increased
84.9% to $108.9 million, or 21.6% of revenues, compared to $58.9 million, or
20.4% of revenues, in the comparable period 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
85.7% to $128.8 million, or 25.5% of revenues, compared to $69.3 million, or
24.0% of revenues, in the same period last year.
Huron's
full-time billable consultant utilization rate was 74.6% during the full year
2007 compared to 77.8% during the full year 2006. Average billing rate per hour
for full-time billable consultants increased 5.7% to $278 for the full year
2007, up from $263 for 2006.
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: Financial Consulting; Legal Consulting;
Health and Education Consulting; and Corporate Consulting.
Segment
results are included in the attached schedules and in Huron's Form 10-K filing
for the year ended December 31, 2007.
Acquisitions
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.
In July
2007, Huron acquired Callaway Partners, LLC, a professional services firm
focused on providing CFO solutions. Callaway specializes in project management
and staff augmentation for clients, including general accounting/finance
support, accounting and SEC reporting advisory services, internal audit,
Sarbanes-Oxley compliance and corporate tax solutions.
Outlook
for 2008
Based on
currently available information, the Company expects Q1 2008 revenues before
reimbursable expenses in a range of $142 million to $147 million, EBITDA in a
range of $28 million to $30 million, operating income in a range of $23 million
to $25 million, and between $0.66 and $0.70 in diluted earnings per
share.
The
Company anticipates full year 2008 revenues before reimbursable expenses in a
range of $640 million to $670 million, EBITDA in a range of $132 million to $138
million, operating income in a range of $111 million to $117 million, and
between $3.10 and $3.28 in diluted earnings per share.
Share-based
compensation expense of approximately $6 million and $28 million is included in
the Q1 2008 and full year 2008 estimates, respectively. Weighted average diluted
share counts for 2008 are estimated to be 18.4 million for Q1 2008 and 18.6
million for full year 2008.
Fourth
Quarter and Full Year 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 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 reported results for
2007 and 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 “continue.” 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
and billing rates, 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 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.
Media
Contact:
Jennifer
Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com
Investor
Contact:
Gary L.
Burge, Chief Financial Officer
312-583-8722
garyburge@huronconsultinggroup.com
###
HURON
CONSULTING GROUP INC.
CONSOLIDATED
STATEMENTS OF INCOME
(In
thousands, except per share amounts)
(Unaudited)
|
Three
months ended
December 31, |
Twelve
months ended
December 31, |
||||||||||||
|
2007 |
2006 |
2007 |
2006 |
||||||||||
|
Revenues
and reimbursable expenses: |
|||||||||||||
|
Revenues |
$ |
135,966 |
$ |
83,438 |
$ |
504,292 |
$ |
288,588 |
|||||
|
Reimbursable
expenses |
11,430 |
13,279 |
43,661 |
33,330 |
|||||||||
|
Total
revenues and reimbursable expenses |
147,396 |
96,717 |
547,953 |
321,918 |
|||||||||
|
Direct
costs and reimbursable expenses (exclusive
of depreciation
and amortization
shown
in operating expenses): |
|||||||||||||
|
Direct
costs |
79,739 |
47,170 |
293,387 |
163,569 |
|||||||||
|
Intangible
assets amortization |
1,241 |
24 |
7,993 |
2,207 |
|||||||||
|
Reimbursable
expenses |
11,410 |
13,266 |
43,449 |
33,506 |
|||||||||
|
Total
direct costs and reimbursable expenses |
92,390 |
60,460 |
344,829 |
199,282 |
|||||||||
|
Operating
expenses: |
|||||||||||||
|
Selling,
general and administrative |
27,068 |
18,648 |
102,176 |
65,926 |
|||||||||
|
Depreciation
and amortization |
4,705 |
3,203 |
17,207 |
9,201 |
|||||||||
|
Total
operating expenses |
31,773 |
21,851 |
119,383 |
75,127 |
|||||||||
|
Operating
income |
23,233 |
14,406 |
83,741 |
47,509 |
|||||||||
|
Other
income (expense): |
|||||||||||||
|
Interest
expense, net |
(2,392 |
) |
(338 |
) |
(8,263 |
) |
(703 |
) | |||||
|
Other
income (expense) |
(117 |
) |
16 |
19 |
16 |
||||||||
|
Total
other expense |
(2,509 |
) |
(322 |
) |
(8,244 |
) |
(687 |
) | |||||
|
Income
before provision for income taxes |
20,724 |
14,084 |
75,497 |
46,822 |
|||||||||
|
Provision
for income taxes |
9,222 |
6,056 |
33,596 |
20,133 |
|||||||||
|
Net
income |
$ |
11,502 |
$ |
8,028 |
$ |
41,901 |
$ |
26,689 |
|||||
|
Earnings
per share: |
|||||||||||||
|
Basic |
$ |
0.67 |
$ |
0.48 |
$ |
2.47 |
$ |
1.63 |
|||||
|
Diluted |
$ |
0.63 |
$ |
0.46 |
$ |
2.32 |
$ |
1.54 |
|||||
|
Weighted
average shares used in calculating earnings per share: |
|||||||||||||
|
Basic |
17,169 |
16,616 |
16,944 |
16,359 |
|||||||||
|
Diluted |
18,228 |
17,607 |
18,033 |
17,317 |
|||||||||
HURON
CONSULTING GROUP INC.
CONSOLIDATED
BALANCE SHEETS
(In
thousands, except share and per share amounts)
(Unaudited)
|
December
31,
2007 |
December
31,
2006 |
||||||
Assets |
|||||||
Current
assets: |
|||||||
Cash
and cash equivalents |
$ |
2,993 |
$ |
16,572 |
|||
Receivables
from clients, net |
86,867 |
41,848 |
|||||
Unbilled
services, net |
28,245 |
22,627 |
|||||
Income
tax receivable |
13,492 |
3,637 |
|||||
Deferred
income taxes |
13,680 |
15,290 |
|||||
|
Other
current assets |
10,435 |
6,435 |
|||||
Total
current assets |
155,712 |
106,409 |
|||||
Property
and equipment,
net |
38,147 |
27,742 |
|||||
Deferred
income taxes |
3,628 |
5,433 |
|||||
Deposits
and other assets |
8,737 |
2,294 |
|||||
Intangible
assets, net |
13,936 |
4,238 |
|||||
|
Goodwill |
223,053 |
53,328 |
|||||
|
Total
assets |
$ |
443,213 |
$ |
199,444 |
|||
Liabilities
and stockholders’ equity |
|||||||
Current
liabilities: |
|||||||
Accounts
payable |
$ |
5,823 |
$ |
2,684 |
|||
Accrued
expenses |
17,748 |
12,712 |
|||||
Accrued
payroll and related benefits |
58,279 |
41,649 |
|||||
Accrued
consideration for business acquisitions |
32,422 |
¾ |
|||||
Income
tax payable |
1,342 |
¾ |
|||||
Deferred
revenues |
5,278 |
4,035 |
|||||
Bank
borrowings |
¾ |
8,000 |
|||||
|
Current
portion of notes payable and capital lease obligations |
1,309 |
1,282 |
|||||
Total
current liabilities |
122,201 |
70,362 |
|||||
Non-current
liabilities: |
|||||||
Deferred
compensation and other liabilities |
3,795 |
1,169 |
|||||
Notes
payable and capital lease obligations, net of current portion |
234 |
1,000 |
|||||
Bank
borrowings |
123,500 |
¾ |
|||||
|
Deferred
lease incentives |
9,699 |
10,333 |
|||||
Total
non-current liabilities |
137,228 |
12,502 |
|||||
Commitments
and contingencies |
¾ |
¾ |
|||||
Stockholders’
equity |
|||||||
Common
stock; $0.01 par value; 500,000,000 shares authorized; 19,279,176
and
18,470,623 shares issued at December 31, 2007 and
2006,
respectively |
182 |
178 |
|||||
Treasury
stock, at cost, 589,755 and 398,783 shares at December 31,
2007 and 2006,
respectively |
(20,703 |
) |
(9,396 |
) | |||
Additional
paid-in capital |
116,148 |
79,598 |
|||||
Retained
earnings |
88,101 |
46,200 |
|||||
|
Accumulated
other comprehensive income |
56 |
¾ |
|||||
|
Total
stockholders’ equity |
183,784 |
116,580 |
|||||
|
Total
liabilities and stockholders’ equity |
$ |
443,213 |
$ |
199,444 |
|||
HURON
CONSULTING GROUP INC.
SEGMENT
OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
|
Three
Months Ended
December 31, |
Percent
Increase (Decrease) |
|||||||||
|
Segment
and Consolidated Operating Results (in
thousands): |
2007 |
2006 |
||||||||
Revenues
and reimbursable expenses: |
||||||||||
Financial
Consulting |
$ |
46,749 |
$ |
30,572 |
52.9 |
% | ||||
Legal
Consulting |
20,437 |
18,034 |
13.3 |
% | ||||||
Health
and Education Consulting |
50,010 |
23,880 |
109.4 |
% | ||||||
|
Corporate
Consulting |
18,770 |
10,952 |
71.4 |
% | ||||||
Total
revenues |
135,966 |
83,438 |
63.0 |
% | ||||||
|
Total
reimbursable expenses |
11,430 |
13,279 |
(13.9 |
%) | ||||||
|
Total
revenues and reimbursable expenses |
$ |
147,396 |
$ |
96,717 |
52.4 |
% | ||||
Operating
income: |
||||||||||
Financial
Consulting |
$ |
17,761 |
$ |
14,382 |
23.5 |
% | ||||
Legal
Consulting |
5,876 |
5,447 |
7.9 |
% | ||||||
Health
and Education Consulting |
21,285 |
7,060 |
201.5 |
% | ||||||
|
Corporate
Consulting |
2,809 |
4,640 |
(39.5 |
%) | ||||||
Total
segment operating income |
47,731 |
31,529 |
51.4 |
% | ||||||
|
Operating
expenses not allocated to segments |
24,498 |
17,123 |
43.1 |
% | ||||||
|
Total
operating income |
$ |
23,233 |
$ |
14,406 |
61.3 |
% | ||||
|
Other
Operating Data: |
||||||||||
Number
of full-time billable consultants (at period end)
(1): |
||||||||||
Financial
Consulting |
367 |
268 |
36.9 |
% | ||||||
Legal
Consulting |
173 |
121 |
43.0 |
% | ||||||
Health
and Education Consulting |
439 |
274 |
60.2 |
% | ||||||
|
Corporate
Consulting |
230 |
131 |
75.6 |
% | ||||||
Total |
1,209 |
794 |
52.3 |
% | ||||||
Average
number of full-time billable consultants (for the period)
(1): |
||||||||||
Financial
Consulting |
368 |
260 |
41.5 |
% | ||||||
Legal
Consulting |
171 |
120 |
42.5 |
% | ||||||
Health
and Education Consulting |
433 |
265 |
63.4 |
% | ||||||
|
Corporate
Consulting |
227 |
132 |
72.0 |
% | ||||||
Total |
1,199 |
777 |
54.3 |
% | ||||||
Full-time
billable consultant utilization rate (2): |
||||||||||
Financial
Consulting |
68.4 |
% |
85.6 |
% |
||||||
Legal
Consulting |
66.7 |
% |
72.5 |
% |
||||||
Health
and Education Consulting |
78.7 |
% |
77.0 |
% |
||||||
Corporate
Consulting |
58.1 |
% |
69.4 |
% |
||||||
Total |
69.9 |
% |
77.9 |
% |
||||||
Full-time
billable consultant average billing rate per hour (3): |
||||||||||
Financial
Consulting |
$ |
274 |
$ |
282 |
||||||
Legal
Consulting |
$ |
232 |
$ |
238 |
||||||
Health
and Education Consulting |
$ |
283 |
$ |
239 |
||||||
Corporate
Consulting |
$ |
289 |
$ |
280 |
||||||
Total |
$ |
275 |
$ |
261 |
||||||
Revenue
per full-time billable consultant (in thousands): |
||||||||||
Financial
Consulting |
$ |
83 |
$ |
112 |
||||||
Legal
Consulting |
$ |
65 |
$ |
69 |
||||||
Health
and Education Consulting |
$ |
103 |
$ |
85 |
||||||
Corporate
Consulting |
$ |
79 |
$ |
82 |
||||||
Total |
$ |
87 |
$ |
91 |
||||||
|
Average
number of full-time equivalents (for the period) (4): |
||||||||||
|
Financial
Consulting |
281 |
9 |
N/M |
|||||||
|
Legal
Consulting |
272 |
320 |
(15.0 |
%) | ||||||
|
Health
and Education Consulting |
51 |
12 |
325.0 |
% | ||||||
|
Corporate
Consulting |
12 |
2 |
500.0 |
% | ||||||
|
Total |
616 |
343 |
79.6 |
% | ||||||
|
Revenue
per full-time equivalents (in thousands): |
||||||||||
|
Financial
Consulting |
$ |
58 |
$ |
147 |
||||||
|
Legal
Consulting |
$ |
34 |
$ |
31 |
||||||
|
Health
and Education Consulting |
$ |
108 |
$ |
104 |
||||||
|
Corporate
Consulting |
$ |
76 |
$ |
56 |
||||||
|
Total |
$ |
52 |
$ |
36 |
HURON
CONSULTING GROUP INC.
SEGMENT
OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
|
Twelve
Months Ended
December 31, |
Percent
Increase |
|||||||||
|
Segment
and Consolidated Operating Results (in
thousands): |
2007 |
2006 |
||||||||
Revenues
and reimbursable expenses: |
||||||||||
Financial
Consulting |
$ |
156,013 |
$ |
109,220 |
42.8 |
% | ||||
Legal
Consulting |
89,849 |
47,774 |
88.1 |
% | ||||||
Health
and Education Consulting |
181,439 |
84,108 |
115.7 |
% | ||||||
|
Corporate
Consulting |
76,991 |
47,486 |
62.1 |
% | ||||||
Total
revenues |
504,292 |
288,588 |
74.7 |
% | ||||||
|
Total
reimbursable expenses |
43,661 |
33,330 |
31.0 |
% | ||||||
|
Total
revenues and reimbursable expenses |
$ |
547,953 |
$ |
321,918 |
70.2 |
% | ||||
Operating
income: |
||||||||||
Financial
Consulting |
$ |
60,873 |
$ |
50,304 |
21.0 |
% | ||||
Legal
Consulting |
28,293 |
13,884 |
103.8 |
% | ||||||
Health
and Education Consulting |
66,289 |
25,375 |
161.2 |
% | ||||||
|
Corporate
Consulting |
19,961 |
17,816 |
12.0 |
% | ||||||
Total
segment operating income |
175,416 |
107,379 |
63.4 |
% | ||||||
|
Operating
expenses not allocated to segments |
91,675 |
59,870 |
53.1 |
% | ||||||
|
Total
operating income |
$ |
83,741 |
$ |
47,509 |
76.3 |
% | ||||
|
Other
Operating Data: |
||||||||||
Number
of full-time billable consultants (at period end)
(1): |
||||||||||
Financial
Consulting |
367 |
268 |
36.9 |
% | ||||||
Legal
Consulting |
173 |
121 |
43.0 |
% | ||||||
Health
and Education Consulting |
439 |
274 |
60.2 |
% | ||||||
|
Corporate
Consulting |
230 |
131 |
75.6 |
% | ||||||
Total |
1,209 |
794 |
52.3 |
% | ||||||
Average
number of full-time billable consultants (for the period)
(1): |
||||||||||
Financial
Consulting |
315 |
239 |
31.8 |
% | ||||||
Legal
Consulting |
139 |
112 |
24.1 |
% | ||||||
Health
and Education Consulting |
381 |
231 |
64.9 |
% | ||||||
|
Corporate
Consulting |
191 |
117 |
63.2 |
% | ||||||
Total |
1,026 |
699 |
46.8 |
% | ||||||
Full-time
billable consultant utilization rate (2): |
||||||||||
Financial
Consulting |
73.7 |
% |
81.6 |
% |
||||||
Legal
Consulting |
73.4 |
% |
71.7 |
% |
||||||
Health
and Education Consulting |
79.4 |
% |
79.3 |
% |
||||||
Corporate
Consulting |
67.7 |
% |
72.7 |
% |
||||||
Total |
74.6 |
% |
77.8 |
% |
||||||
Full-time
billable consultant average billing rate per hour (3): |
||||||||||
Financial
Consulting |
$ |
290 |
$ |
285 |
||||||
Legal
Consulting |
$ |
240 |
$ |
232 |
||||||
Health
and Education Consulting |
$ |
271 |
$ |
231 |
||||||
Corporate
Consulting |
$ |
303 |
$ |
307 |
||||||
Total |
$ |
278 |
$ |
263 |
||||||
Revenue
per full-time billable consultant (in thousands): |
||||||||||
Financial
Consulting |
$ |
398 |
$ |
443 |
||||||
Legal
Consulting |
$ |
305 |
$ |
297 |
||||||
Health
and Education Consulting |
$ |
407 |
$ |
345 |
||||||
Corporate
Consulting |
$ |
390 |
$ |
403 |
||||||
Total |
$ |
387 |
$ |
381 |
||||||
Average
number of full-time equivalents (for the period) (4): |
||||||||||
Financial
Consulting |
125 |
7 |
N/M |
|||||||
Legal
Consulting |
338 |
120 |
181.7 |
% | ||||||
Health
and Education Consulting |
60 |
14 |
328.6 |
% | ||||||
|
Corporate
Consulting |
7 |
1 |
N/M |
|||||||
Total |
530 |
142 |
273.2 |
% | ||||||
Revenue
per full-time equivalents (in thousands): |
||||||||||
Financial
Consulting |
$ |
246 |
$ |
474 |
||||||
Legal
Consulting |
$ |
141 |
$ |
121 |
||||||
Health
and Education Consulting |
$ |
438 |
$ |
319 |
||||||
Corporate
Consulting |
$ |
344 |
$ |
282 |
||||||
Total |
$ |
202 |
$ |
159 |
||||||
———————
| (1) |
Consists
of our full-time professionals who provide consulting services and
generate revenues based on the number of hours
worked. |
| (2) |
Utilization
rate for our full-time billable consultants is calculated by dividing the
number of hours all our full-time billable consultants worked on client
assignments during a period by the total available working hours for all
of these consultants during the same period, assuming a forty-hour work
week, less paid holidays and vacation days. |
| (3) |
Average
billing rate per hour for our full-time billable consultants is calculated
by dividing revenues for a period by the number of hours worked on client
assignments during the same period. |
| (4) |
Consists
of our variable, on-demand consultants, contract reviewers and other
professionals who generate revenues primarily based on number of hours
worked, and units produced, such as pages reviewed and data
processed. |
| N/M |
Not
meaningful, change greater than 500%. |
HURON
CONSULTING GROUP INC.
RECONCILIATION
OF OPERATING INCOME TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION (5)
(in
thousands)
|
Three
months ended
December 31, |
Twelve
months ended
December 31, |
||||||||||||
|
2007 |
2006 |
2007 |
2006 |
||||||||||
|
Revenues |
$ |
135,966 |
$ |
83,438 |
$ |
504,292 |
$ |
288,588 |
|||||
Operating
income |
$ |
23,233 |
$ |
14,406 |
$ |
83,741 |
$ |
47,509 |
|||||
Add
back: |
|||||||||||||
|
Depreciation
and amortization |
5,946 |
3,227 |
25,200 |
11,408 |
|||||||||
Earnings
before interest, taxes, depreciation and
amortization
(EBITDA) (5) |
29,179 |
17,633 |
108,941 |
58,917 |
|||||||||
Add
back: |
|||||||||||||
Share-based
compensation |
5,574 |
2,616 |
19,812 |
9,839 |
|||||||||
|
Secondary
offering costs |
¾ |
¾ |
¾ |
567 |
|||||||||
|
Total
adjusted items |
5,574 |
2,616 |
19,812 |
10,406 |
|||||||||
|
Adjusted
EBITDA (5) |
$ |
34,753 |
$ |
20,249 |
$ |
128,753 |
$ |
69,323 |
|||||
|
Adjusted
EBITDA as a percentage of revenues |
25.6 |
% |
24.3 |
% |
25.5 |
% |
24.0 |
% | |||||
RECONCILIATION
OF NET INCOME TO NET INCOME BEFORE SECONDARY OFFERING COSTS AND ADJUSTED NET
INCOME (5)
(in
thousands)
|
Three
months ended
December 31, |
Twelve
months ended
December 31, |
||||||||||||
|
2007 |
2006 |
2007 |
2006 |
||||||||||
|
Net
income |
$ |
11,502 |
$ |
8,028 |
$ |
41,901 |
$ |
26,689 |
|||||
|
Diluted
earnings per share |
$ |
0.63 |
$ |
0.46 |
$ |
2.32 |
$ |
1.54 |
|||||
|
Add
back: Secondary offering costs, net of tax |
¾ |
¾ |
¾ |
567 |
|||||||||
|
Net
income before secondary offering costs (5) |
$ |
11,502 |
$ |
8,028 |
$ |
41,901 |
$ |
27,256 |
|||||
|
Diluted
earnings per share before secondary
offering
costs (5) |
$ |
0.63 |
$ |
0.46 |
$ |
2.32 |
$ |
1.57 |
|||||
Add
back other adjustments: |
|||||||||||||
Amortization
of intangible assets |
2,881 |
1,030 |
14,328 |
4,547 |
|||||||||
Share-based
compensation |
5,574 |
2,616 |
19,812 |
9,839 |
|||||||||
|
Tax
effect |
(3,458 |
) |
(1,491 |
) |
(13,963 |
) |
(5,884 |
) | |||||
|
Total
adjustments, net of tax |
4,997 |
2,155 |
20,177 |
8,502 |
|||||||||
|
Adjusted
net income (5) |
$ |
16,499 |
$ |
10,183 |
$ |
62,078 |
$ |
35,758 |
|||||
|
Adjusted
diluted earnings per share (5) |
$ |
0.91 |
$ |
0.58 |
$ |
3.44 |
$ |
2.06 |
|||||
———————
| (5) |
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. |