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

Huron Consulting Group Inc.

Delaware		000-50976		01-0666114
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification Number)

(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 April 29, 2010, Huron Consulting Group Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2010. 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.

The information furnished pursuant to this Item 2.02 and the attached Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits

99.1 Press release, dated April 29, 2010

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.

EXHIBIT INDEX

Exhibit
Number				Description
	99.1			Press release, dated April 29, 2010

Exhibit 99.1

FOR IMMEDIATE RELEASE
April 29, 2010

Huron Consulting Group Reports First Quarter 2010 Financial Results

	•		Revenues were $138.9 million for Q1 2010 compared to $151.1 million in Q1 2009.
	•		Diluted earnings per share from continuing operations for Q1 2010 was $0.14 compared to $0.28 in Q1 2009.
	•		Average number of full-time billable consultants(2) totaled 1,272 for Q1 2010 compared to 1,471 for Q1 2009, reflecting strategic and cost-reduction actions taken in 2009. Average number of full-time equivalent professionals(5) totaled 994 for Q1 2010 compared to 710 in the same period last year.
	•		Company reiterates full year 2010 revenue guidance in a range of $600.0 million to $640.0 million.

CHICAGO — April 29, 2010 — Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced financial results for the first quarter ended March 31, 2010.

“Huron performed in line with our expectations during the first quarter. In spite of the continued economic uncertainties, which we anticipated would make this a challenging quarter, we saw renewed strength in our Legal Consulting segment and some improvement in the factors impacting our Health and Education Consulting and Financial Consulting segments. We expect this will lead to improved results in subsequent quarters,” said James H. Roth, chief executive officer, Huron Consulting Group. “We remain confident that we are well positioned to increase our revenue across all three of our segments during the remainder of the year, consistent with the reaffirmation of our full year 2010 guidance.”

First Quarter 2010 Results

In evaluating the Company’s financial performance and consistent with previous periods, the Company has adopted the use of certain non-GAAP measures for a comparison to prior periods and for guidance as described below under “Use of Non-GAAP Financial Measures.”

Revenues for the first quarter of 2010 were $138.9 million compared to $151.1 million for the first quarter of 2009. The Company’s first quarter 2010 operating income was $7.8 million compared to $14.3 million in the first quarter of 2009. Net income from continuing operations was $2.9 million, or $0.14 per diluted share, for the first quarter of 2010 compared to $5.6 million, or $0.28 per diluted share, for the same period last year. Net income was $2.5 million, or $0.12 per diluted share, for the first quarter of 2010 compared to $7.1 million, or $0.35 per diluted share, for the same period last year.

First quarter 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁶⁾ decreased 38.0% to $13.4 million, or 9.6% of revenues, compared to $21.6 million, or 14.3% of revenues, in the comparable quarter last year. Adjusted EBITDA⁽⁶⁾, which excludes non-cash compensation expense⁽¹⁾ and restatement related expenses, was $14.1 million, or 10.2% of revenues, in the first quarter of 2010, compared to $25.0 million, or 16.5% of revenues, in the comparable quarter last year.

The average number of full-time billable consultants⁽²⁾ was 1,272 in the first quarter of 2010 compared to 1,471 in the same quarter last year. Full-time billable consultant utilization rate was 64.3% during the first quarter of 2010 compared with 68.7% during the same period last year. Average billing rate per hour for full-time billable consultants was $248 for the first quarter of 2010 compared to $253 for the first quarter of 2009. The average number of full-time equivalent professionals⁽⁵⁾ totaled 994 in the first quarter of 2010 compared to 710 for the comparable period in 2009.

Operating Segments

Huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges.

Effective January 1, 2010, the Company reorganized its practice areas and service lines to align Huron to better meet market demand and serve clients. Under the new organizational structure, Huron has three operating segments as follows: Health and Education Consulting, Legal Consulting and Financial Consulting, representing approximately 55%, 25% and 20% of the Company’s total revenues, respectively. Financial Consulting is the combination of the Company’s previously named Accounting & Financial Consulting and Corporate Consulting segments. The Financial Consulting segment primarily includes the Restructuring and Turnaround, Disputes and Investigations, Accounting Advisory, and Utilities businesses. The Health and Education Consulting and Legal Consulting segments remain unchanged.

Financial results by segment are included in the attached schedules and in Huron’s Form 10-Q filing for the quarter ended March 31, 2010. Segment information includes 2009 results reported under the new segment structure, which became effective January 1, 2010.

Discontinued Operations

During the fourth quarter of 2009, the Company completed the sale of its Strategy (Galt) business, which was a component of the Financial Consulting segment. Additionally, the Company has executed a non-binding term sheet with a prospective buyer and currently expects to complete the sale of the Japan operations, which is also a component of the Financial Consulting segment, in the second quarter of 2010. Results for these businesses are reported as discontinued operations for the periods presented.

Outlook for 2010

The Company reiterates guidance for full year 2010 from continuing operations, including revenues before reimbursable expenses in a range of $600.0 million to $640.0 million. The Company also continues to expect EBITDA⁽⁶⁾ in a range of $98.5 million to $106.0 million, Adjusted EBITDA⁽⁶⁾ in a range of $107.0 million to $114.5 million, GAAP diluted earnings per share from continuing operations in a range of $1.55 to $1.75, and non-GAAP adjusted diluted earnings per share⁽⁶⁾ in a range of $2.00 to $2.20.

Beginning in 2010, the Company no longer excludes share-based compensation from non-GAAP and EBITDA calculations.

First Quarter 2010 Webcast

The Company will host a webcast to discuss its financial results today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). The conference call is being webcast by Thomson and can be accessed at Huron Consulting Group’s website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.

About Huron Consulting Group

Huron Consulting Group helps clients in diverse industries improve performance, comply with complex regulations, resolve disputes, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including leading academic institutions, healthcare organizations, Fortune 500 companies, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.

Use of Non-GAAP Financial Measures⁽⁶⁾

In evaluating the Company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, adjusted net income and adjusted diluted earnings per share, which are non-GAAP measures. Management believes that such measures, as supplements to net income and diluted earnings per share and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of our core operating results and future prospects without the effect of non-cash or other one-time items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and to repay debt. 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. The reconciliation of these measures to the most comparable GAAP measures are included in the attached schedules.

Statements in this press release, including the information incorporated by reference herein, that are not historical in nature, including those concerning the Company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “plans,” “anticipates,” “assumes,” “can,” “considers,” “could,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates” or “continues”. Risks, uncertainties and assumptions that could impact the Company’s forward-looking statements relate, among other things, to (i) the restatement, (ii) the Securities and Exchange Commission (“SEC”) investigation with respect to the restatement and the related purported private shareholder class action lawsuit and derivative lawsuits, (iii) the SEC investigation and related Company inquiry into the allocation of time within a certain practice group, (iv) the request by the United States Attorney’s Office (“USAO”) for the Northern District of Illinois for certain documents and (v) the cost reduction program implemented in the third quarter of 2009. In addition, 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 the 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 continue to deteriorate substantially. 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 anticipated results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. See “Risk Factors” in our 2009 Annual Report on Form 10-K for a description of the material risks we face.

Media Contact:
Jennifer Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com

Investor Contact:
James K. Rojas, Chief Financial Officer
or
Ellen Wong
312-583-8722
investor@huronconsultinggroup.com

###

HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

		Three months ended
		March 31,
		2010				2009
Revenues and reimbursable expenses:
Revenues		$	138,893			$	151,130
Reimbursable expenses			12,673				13,412
Total revenues and reimbursable expenses			151,566				164,542
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			94,608				96,254
Intangible assets amortization			886				1,686
Reimbursable expenses			12,724				13,438
Total direct costs and reimbursable expenses			108,218				111,378
Operating expenses:
Selling, general and administrative			30,115				33,293
Restatement related expenses			759				—
Depreciation and amortization			4,644				5,572
Total operating expenses			35,518				38,865
Operating income			7,830				14,299
Other income (expense):
Interest expense, net of interest income			(2,955	)			(2,734	)
Other income (expense)			246				(473	)
Total other expense			(2,709	)			(3,207	)
Income from continuing operations before income tax expense			5,121				11,092
Income tax expense			2,205				5,478
Net income from continuing operations			2,916				5,614
(Loss) income from discontinued operations, net of tax			(402	)			1,462
Net income		$	2,514			$	7,076
Net earnings (loss) per basic share:
Income from continuing operations		$	0.14			$	0.29
(Loss) income from discontinued operations, net of tax		$	(0.02	)		$	0.07
Net income		$	0.12			$	0.36
Net earnings (loss) per diluted share:
Income from continuing operations		$	0.14			$	0.28
(Loss) income from discontinued operations, net of tax		$	(0.02	)		$	0.07
Net income		$	0.12			$	0.35
Weighted average shares used in calculating earnings (loss) per share:
Basic			20,296				19,528
Diluted			20,496				20,252

HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)

		March 31,				December 31,
		2010				2009
Assets
Current assets:
Cash and cash equivalents		$	893			$	5,715
Receivables from clients, net			73,520				90,543
Unbilled services, net			48,919				37,558
Income tax receivable			25,555				18,911
Deferred income taxes			8,032				16,338
Prepaid expenses and other current assets			14,981				19,437
Current assets of discontinued operations			4,514				4,281
Total current assets			176,414				192,783
Property and equipment, net			36,009				39,147
Deferred income taxes			19,552				21,298
Other non-current assets			17,088				14,383
Intangible assets, net			20,488				22,406
Goodwill			464,270				464,169
Non-current assets of discontinued operations			—				29
Total assets		$	733,821			$	754,215
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	13,962			$	7,150
Accrued expenses			30,900				29,201
Accrued payroll and related benefits			23,138				71,473
Accrued consideration for business acquisitions			—				63,188
Income tax payable			601				874
Deferred revenues			14,733				13,764
Current portion of capital lease obligations			202				278
Current liabilities of discontinued operations			2,568				7,065
Total current liabilities			86,104				192,993
Non-current liabilities:
Deferred compensation and other liabilities			6,938				6,131
Capital lease obligations, net of current portion			5				5
Bank borrowings			301,000				219,000
Deferred lease incentives			8,442				8,681
Non-current liabilities of discontinued operations			427				416
Total non-current liabilities			316,812				234,233
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,100,312 and 22,624,515 shares issued at March 31, 2010 and December 31, 2009, respectively			217				213
Treasury stock, at cost, 1,073,390 and 995,409 shares at March 31, 2010 and December 31, 2009, respectively			(54,459	)			(51,561	)
Additional paid-in capital			340,618				335,272
Retained earnings			46,372				43,858
Accumulated other comprehensive loss			(1,843	)			(793	)
Total stockholders’ equity			330,905				326,989
Total liabilities and stockholders’ equity		$	733,821			$	754,215

HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

		Three months ended
		March 31,
		2010				2009
Cash flows from operating activities:
Net income		$	2,514			$	7,076
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization			5,597				7,445
Share-based compensation			5,965				6,638
Non-cash compensation			—				3,762
Allowances for doubtful accounts and unbilled services			(1,078	)			(1,261	)
Deferred income taxes			10,382				2,931
Changes in operating assets and liabilities, net of businesses acquired:
Decrease in receivables from clients			15,342				630
Increase in unbilled services			(8,703	)			(4,564	)
Increase in current income tax receivable / payable, net			(7,014	)			(49	)
Increase in other assets			(2,445	)			(503	)
Increase in accounts payable and accrued liabilities			9,213				532
Decrease in accrued payroll and related benefits			(52,784	)			(18,838	)
Increase (decrease) in deferred revenues			966				(1,747	)
Net cash (used in) provided by operating activities			(22,045	)			2,052
Cash flows from investing activities:
Purchases of property and equipment, net			(566	)			(3,598	)
Net investment in life insurance policies			(171	)			(154	)
Purchases of businesses			(63,277	)			(46,203	)
Sale of business			3,692				—
Net cash used in investing activities			(60,322	)			(49,955	)
Cash flows from financing activities:
Proceeds from exercise of stock options			17				43
Shares redeemed for employee tax withholdings			(1,111	)			(1,548	)
Tax (expense) benefit from share-based compensation			(2,265	)			3,963
Proceeds from borrowings under credit facility			162,000				100,500
Repayments on credit facility			(80,000	)			(59,000	)
Payments of capital lease obligations			(76	)			(98	)
Net cash provided by financing activities			78,565				43,860
Effect of exchange rate changes on cash			(789	)			(497	)
Net decrease in cash and cash equivalents			(4,591	)			(4,540	)
Cash and cash equivalents at beginning of the period			6,459				14,106
Cash and cash equivalents at end of the period(*)		$	1,868			$	9,566

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)

		Three Months Ended								Percent
		March 31,								Increase
		2010				2009				(Decrease)
Segment and Consolidated Operating Results (in thousands):
Health and Education Consulting:
Revenues		$	76,914			$	92,022				(16.4	%)
Operating income (1)		$	21,066			$	33,640				(37.4	%)
Segment operating income as a percent of segment revenues			27.4	%			36.6	%
Legal Consulting:
Revenues		$	33,105			$	22,868				44.8	%
Operating income		$	7,419			$	3,241				128.9	%
Segment operating income as a percent of segment revenues			22.4	%			14.2	%
Financial Consulting:
Revenues		$	28,874			$	36,240				(20.3	%)
Operating income (1)		$	4,723			$	5,598				(15.6	%)
Segment operating income as a percent of segment revenues			16.4	%			15.4	%
Total Company:
Revenues		$	138,893			$	151,130				(8.1	%)
Reimbursable expenses			12,673				13,412				(5.5	%)
Total revenues and reimbursable expenses		$	151,566			$	164,542				(7.9	%)
Statement of operations reconciliation:
Segment operating income		$	33,208			$	42,479				(21.8	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses			20,734				22,608				(8.3	%)
Depreciation and amortization expense			4,644				5,572				(16.7	%)
Total operating income			7,830				14,299				(45.2	%)
Other expense, net			(2,709	)			(3,207	)			(15.5	%)
Income from continuing operations before income tax expense		$	5,121			$	11,092				(53.8	%)
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			847				895				(5.4	%)
Legal Consulting			127				161				(21.1	%)
Financial Consulting			261				399				(34.6	%)
Total			1,235				1,455				(15.1	%)
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			861				902
Legal Consulting			137				162
Financial Consulting			274				407
Total			1,272				1,471
Full-time billable consultant utilization rate (3):
Health and Education Consulting			68.1	%			78.0	%
Legal Consulting			55.2	%			53.7	%
Financial Consulting			56.9	%			54.2	%
Total			64.3	%			68.7	%

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

		Three Months Ended
		March 31,
		2010				2009
Other Operating Data:
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	237			$	246
Legal Consulting		$	266			$	233
Financial Consulting		$	283			$	282
Total		$	248			$	253
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	76			$	92
Legal Consulting		$	64			$	57
Financial Consulting		$	76			$	72
Total		$	74			$	82
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			141				97
Legal Consulting			727				503
Financial Consulting			126				110
Total			994				710
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	84			$	95
Legal Consulting		$	33			$	27
Financial Consulting		$	65			$	64
Total		$	44			$	42

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)

		Three Months Ended
		March 31,				June 30,				September 30,				December
		2009				2009				2009				31, 2009
Segment and Consolidated Operating Results (in thousands):
Health and Education Consulting:
Revenues		$	92,022			$	91,469			$	99,714			$	90,676
Operating income		$	33,640			$	34,430			$	38,676			$	34,549
Segment operating income as a percent of segment revenues			36.6	%			37.6	%			38.8	%			38.1	%
Legal Consulting:
Revenues		$	22,868			$	31,241			$	29,314			$	31,401
Operating income		$	3,241			$	7,715			$	5,360			$	5,719
Segment operating income as a percent of segment revenues			14.2	%			24.7	%			18.3	%			18.2	%
Financial Consulting:
Revenues		$	36,240			$	31,736			$	36,983			$	35,036
Operating income		$	5,598			$	3,899			$	6,299			$	12,156
Segment operating income as a percent of segment revenues			15.4	%			12.3	%			17.0	%			34.7	%
Total Company:
Revenues		$	151,130			$	154,446			$	166,011			$	157,113
Reimbursable expenses			13,412				12,111				13,838				11,479
Total revenues and reimbursable expenses		$	164,542			$	166,557			$	179,849			$	168,592
Statement of operations reconciliation:
Segment operating income		$	42,479			$	46,044			$	50,335			$	52,424
Charges not allocated at the segment level:
Other selling, general and administrative expenses			22,608				22,469				33,674				25,892
Depreciation and amortization expense			5,572				5,659				5,502				5,459
Impairment charge on goodwill			—				—				67,034				—
Total operating income (loss)			14,299				17,916				(55,875	)			21,073
Other expense, net			(3,207	)			(2,377	)			(2,236	)			(2,553	)
Income (loss) from continuing operations before income tax expense		$	11,092			$	15,539			$	(58,111	)		$	18,520
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			895				868				844				857
Legal Consulting			161				141				134				141
Financial Consulting			399				363				343				286
Total			1,455				1,372				1,321				1,284
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			902				887				858				854
Legal Consulting			162				152				140				140
Financial Consulting			407				388				354				316
Total			1,471				1,427				1,352				1,310
Full-time billable consultant utilization rate (3):
Health and Education Consulting			78.0	%			75.3	%			75.1	%			72.4	%
Legal Consulting			53.7	%			61.9	%			58.0	%			54.6	%
Financial Consulting			54.2	%			56.4	%			61.6	%			55.9	%
Total			68.7	%			68.7	%			69.8	%			66.5	%

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

		Three Months Ended
		March 31,				June 30,				September 30,				December 31,
		2009				2009				2009				2009
Other Operating Data:
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	246			$	262			$	299			$	287
Legal Consulting		$	233			$	212			$	188			$	192
Financial Consulting		$	282			$	270			$	291			$	315
Total		$	253			$	259			$	288			$	285
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	92			$	93			$	106			$	94
Legal Consulting		$	57			$	61			$	51			$	45
Financial Consulting		$	72			$	71			$	83			$	81
Total		$	82			$	84			$	94			$	86
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			97				109				107				132
Legal Consulting			503				678				645				750
Financial Consulting			110				65				108				138
Total			710				852				860				1,020
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	95			$	81			$	85			$	76
Legal Consulting		$	27			$	32			$	34			$	34
Financial Consulting		$	64			$	63			$	71			$	68
Total		$	42			$	41			$	45			$	44

		Three Months Ended
		March 31, 2009
Health and Education Consulting		$	2,634
Financial Consulting			812
Total		$	3,446

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ⁽⁶⁾
(In thousands)
(Unaudited)

		Three months ended
		March 31,
		2010				2009
Revenues		$	138,893			$	151,130
Net income from continuing operations		$	2,916			$	5,614
Add back:
Income tax expense			2,205				5,478
Interest and other expenses			2,709				3,207
Depreciation and amortization			5,530				7,258
Earnings before interest, taxes, depreciation and amortization (EBITDA) (6)			13,360				21,557
Add back:
Non-cash compensation (1)			—				3,446
Restatement related expenses			759				—
Adjusted EBITDA (6)		$	14,119			$	25,003
Adjusted EBITDA as a percentage of revenues (6)			10.2	%			16.5	%

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME ⁽⁶⁾
(In thousands)
(Unaudited)

		Three months ended
		March 31,
		2010				2009
Net income from continuing operations		$	2,916			$	5,614
Weighted average shares — diluted			20,496				20,252
Diluted earnings per share from continuing operations		$	0.14			$	0.28
Add back:
Amortization of intangible assets			1,894				2,996
Non-cash compensation (1)			—				3,446
Restatement related expenses			759				—
Tax effect			(1,088	)			(1,228	)
Total adjustments, net of tax			1,565				5,214
Adjusted net income from continuing operations (6)		$	4,481			$	10,828
Weighted average shares — diluted			20,496				20,252
Adjusted diluted earnings per share (6)		$	0.22			$	0.53