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

November 3, 2010
Date of Report (Date of earliest event reported)

Huron Consulting Group Inc.

Delaware		000-50976		01-0666114
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		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 November 3, 2010, Huron Consulting Group Inc. (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 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.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release, dated November 3, 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 November 3, 2010

Exhibit 99.1

FOR IMMEDIATE RELEASE
November 3, 2010

Huron Consulting Group Announces Third Quarter 2010 Financial Results

	•		Revenues of $145.4 million for Q3 2010 compared to $149.0 million in Q3 2009.
	•		Diluted earnings per share from continuing operations for Q3 2010 was $0.53 compared to a loss of $2.04 in Q3 2009.
	•		Average number of full-time billable consultants(2) totaled 1,050 for Q3 2010 compared to 1,092 for Q3 2009. Average number of full-time equivalent professionals(5) totaled 1,042 for Q3 2010 compared to 858 in the same period last year.
	•		Company reiterates full year 2010 revenue guidance in a range of $540.0 million to $550.0 million and provides additional details.

CHICAGO — November 3, 2010 — Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced its financial results for the third quarter ended September 30, 2010.

“Huron’s results for the quarter were in line with our expectations. Our results were driven by the solid performance of service offerings in our Legal Consulting segment and in our hospital operations practice,” said James H. Roth, chief executive officer, Huron Consulting Group. “While 2010 has proven to be a challenging year, we have taken several important actions to narrow the Company’s focus, and we remain confident of the opportunities across our growth businesses.”

“Within our Health and Education Consulting segment, hospitals continue to assess the impact of healthcare reform and research institutions are facing continued financial pressures to manage costs due to the challenging economy. We expect that these factors will create increasing demand for this segment in 2011. We are also encouraged by continued momentum across all of our segments, and specifically in our Legal Consulting segment, where we help large corporations improve efficiency and reduce costs associated with large-scale litigation. We will enter 2011 with a set of practices that are profitable, have strong market positions, and offer growth prospects consistent with our longer-term expectations for this Company,” Roth said.

Third Quarter 2010 Results
The following information is reported on a “continuing operations” basis unless otherwise noted. Please see below for a discussion of Huron’s discontinued operations.

Revenues for the third quarter of 2010 were $145.4 million compared to $149.0 million for the third quarter of 2009. The Company’s third quarter 2010 operating income was $24.6 million compared to a loss of $57.7 million in the third quarter of 2009. Net income from continuing operations was $11.1 million, or $0.53 per diluted share, for the third quarter of 2010 compared to a loss of $41.3 million, or $2.04 per share, for the same period last year. Net income, including discontinued operations, was $7.5 million, or $0.36 per diluted share, for the third quarter of 2010 compared to a loss of $64.0 million, or $3.16 per share, for the same period last year. The Company’s financial results for the third

quarter of 2009 were impacted by a goodwill impairment charge of $106 million, of which $67 million related to continuing operations and $39 million related to discontinued operations.

Third quarter 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁶⁾ was $30.1 million, compared to a loss of $51.2 million in the comparable quarter last year.

In evaluating the Company’s financial performance, management uses non-GAAP financial measures, which exclude the effect of the following items (in thousands):

		Three Months Ended
		September 30,
		2010				2009
Amortization of intangible assets		$	1,845			$	2,250
Non-cash compensation(1)		$	—			$	1,004
Restatement related expenses		$	1,056			$	13,042
Restructuring charges		$	295			$	1,942
Impairment charge on goodwill		$	—			$	67,034

Adjusted EBITDA⁽⁶⁾ was $31.5 million, or 21.6% of revenues, in the third quarter of 2010, compared to $31.8 million, or 21.4% of revenues, in the comparable quarter last year. Non-GAAP Adjusted Net Income⁽⁶⁾ was $13.0 million, or $0.62 per diluted share, for the third quarter of 2010 compared to $9.4 million, or $0.46 per diluted share, for the comparable period in 2009.

The average number of full-time billable consultants⁽²⁾ was 1,050 in the third quarter of 2010 compared to 1,092 in the same quarter last year. Full-time billable consultant utilization rate⁽³⁾ was 77.4% during the third quarter of 2010 compared with 72.8% during the same period last year. Average billing rate per hour for full-time billable consultants⁽⁴⁾ was $249 for the third quarter of 2010 compared to $294 for the third quarter of 2009. The average number of full-time equivalent professionals⁽⁵⁾ increased 21.4% to 1,042 in the third quarter of 2010 from 858 in the comparable period in 2009.

Year-to-Date Results
The following information is reported on a “continuing operations” basis unless otherwise noted. Please see below for a discussion of Huron’s discontinued operations.

Revenues were $408.8 million for the first nine months of 2010 compared to $417.6 million for the same period last year. The Company’s operating income for the first nine months of 2010 was $41.6 million compared to a loss of $29.2 million in the first nine months of 2009. Net income from continuing operations was $17.2 million, or $0.83 per diluted share, for the first nine months of 2010 compared to a loss of $30.0 million, or $1.50 per share, for the same period last year. Net income, including discontinued operations, was $12.3 million, or $0.60 per diluted share, for the first nine months of 2010 compared to a loss of $47.3 million, or a loss $2.36 per share, for the same period last year. The Company’s financial results for the first nine months of 2009 were impacted by a goodwill impairment charge of $106 million, of which $67 million related to continuing operations and $39 million related to discontinued operations.

EBITDA⁽⁶⁾ was $58.4 million for the first nine months of 2010, compared to a loss of $8.8 million for the same period in 2009.

In evaluating the Company’s financial performance, management uses non-GAAP financial measures, which exclude the effect of the following items (in thousands):

		Nine Months Ended
		September 30,
		2010				2009
Amortization of intangible assets		$	5,603			$	7,600
Non-cash compensation(1)		$	—			$	7,500
Restatement related expenses		$	4,243			$	13,427
Restructuring charges		$	1,460			$	1,942
Impairment charge on goodwill		$	—			$	67,034
Litigation settlement		$	4,764			$	—
Other gain		$	—			$	(2,687	)

Adjusted EBITDA⁽⁶⁾ was $68.8 million, or 16.8% of revenues, in the first nine months of 2010 compared to $78.5 million, or 18.8% of revenues, in the comparable period last year. Non-GAAP Adjusted Net Income⁽⁶⁾ was $26.9 million, or $1.30 per diluted share, for the first nine months of 2010 compared to $29.0 million, or $1.41 per diluted share, for the comparable period in 2009.

The average number of full-time billable consultants⁽²⁾ was 1,054 in the first nine months of 2010 compared to 1,122 in the same period last year. Full-time billable consultant utilization rate⁽³⁾ was 72.2% during the first nine months of 2010 compared with 73.3% during the same period last year. Average billing rate per hour for full-time billable consultants⁽⁴⁾ was $243 in the first nine months of 2010 compared to $268 for the first nine months of 2009. The average number of full-time equivalent professionals⁽⁵⁾ increased 22.8% to 991 in the first nine months of 2010 from 807 in the comparable period of 2009.

Operating Segments
Huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges. The Company has three operating segments as follows: Health and Education Consulting, Legal Consulting, and Financial Consulting, representing 61%, 26% and 13% of year-to-date total revenues, respectively.

Financial results by segment are included in the attached schedules and in Huron’s Form 10-Q filing for the quarter ended September 30, 2010.

Discontinued Operations
As previously disclosed, the Company divested its Strategy business effective December 31, 2009 and wound down its Japan operations effective June 30, 2010. The Company also exited the Utilities consulting practice in the third quarter of 2010. Additionally, the Company announced on October 4, 2010 the divestiture of its Disputes & Investigations (D&I) practice, a part of its Financial Consulting segment, effective September 30, 2010.

The results for the above mentioned Financial Consulting segment businesses are reported as discontinued operations for the periods presented.

Acquisition
On November 2, 2010, the Company announced the acquisition of Click Commerce, Inc. in the Health and Education Consulting segment. Click Commerce, Inc. is a provider of software-based solutions and professional services for the business of research to leading academic medical centers and research institutions. The purchase

further enhances the Company’s higher education and healthcare research technology solutions for clients. Terms of the acquisition were not disclosed.

Outlook for 2010
The Company reiterates full year 2010 revenue guidance in a range of $540 million to $550 million. The Company also anticipates EBITDA⁽¹⁰⁾ in a range of $78 million to $81 million, Adjusted EBITDA⁽¹⁰⁾ in a range of $92 million to $95 million, diluted earnings per share from continuing operations⁽⁸⁾ in a range of $1.08 to $1.18, and non-GAAP adjusted diluted earnings per share from continuing operations⁽¹⁰⁾ in a range of $1.70 to $1.80.

As previously announced, beginning in 2010, the Company no longer excludes share-based compensation from its non-GAAP financial measures.

Third Quarter 2010 Webcast
The Company will host a webcast to discuss its financial results tomorrow, November 4, 2010, 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, reduce costs, 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^(6,10)
In evaluating the Company’s financial performance and outlook, management uses EBITDA, loss before interest, taxes, depreciation and amortization, 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 operating income (loss), net income (loss) and diluted earnings (loss) 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.

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, and (iv) the request by the United States Attorney’s Office (“USAO”) for the Northern District of Illinois for certain documents. 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 and in our Quarterly Report on Form 10-Q for the period ended September 30, 2010 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 September 30,								Nine months ended September 30,
		2010				2009				2010				2009
Revenues and reimbursable expenses:
Revenues		$	145,442			$	149,013			$	408,838			$	417,574
Reimbursable expenses			12,860				12,731				36,849				36,892
Total revenues and reimbursable expenses			158,302				161,744				445,687				454,466
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			87,250				91,012				255,194				257,667
Intangible assets amortization			886				961				2,659				3,734
Reimbursable expenses			12,920				12,718				36,915				36,896
Total direct costs and reimbursable expenses			101,056				104,691				294,768				298,297
Operating expenses:
Selling, general and administrative			26,658				27,202				84,750				88,943
Restructuring charges			295				1,942				1,460				1,942
Restatement related expenses			1,056				13,042				4,243				13,427
Litigation settlement			—				—				4,764				—
Depreciation and amortization			4,608				5,484				14,074				16,673
Impairment charge on goodwill			—				67,034				—				67,034
Total operating expenses			32,617				114,704				109,291				188,019
Other gain			—				—				—				2,687
Operating income (loss)			24,629				(57,651	)			41,628				(29,163	)
Other income (expense):
Interest expense, net of interest income			(4,040	)			(3,256	)			(10,548	)			(9,010	)
Other income			261				1,020				43				1,190
Total other expense			(3,779	)			(2,236	)			(10,505	)			(7,820	)
Income (loss) from continuing operations before income tax expense			20,850				(59,887	)			31,123				(36,983	)
Income tax expense (benefit)			9,797				(18,541	)			13,875				(6,965	)
Net income (loss) from continuing operations			11,053				(41,346	)			17,248				(30,018	)
Loss from discontinued operations (including gain on disposal of $1.2 million for the three and nine months ended September 30, 2010), net of tax			(3,603	)			(22,648	)			(4,909	)			(17,254	)
Net income (loss)		$	7,450			$	(63,994	)		$	12,339			$	(47,272	)
Net earnings (loss) per basic share:
Income (loss) from continuing operations		$	0.54			$	(2.04	)		$	0.84			$	(1.50	)
Loss from discontinued operations, net of tax		$	(0.18	)		$	(1.12	)		$	(0.24	)		$	(0.86	)
Net income (loss)		$	0.36			$	(3.16	)		$	0.60			$	(2.36	)
Net earnings (loss) per diluted share:
Income (loss) from continuing operations		$	0.53			$	(2.04	)		$	0.83			$	(1.50	)
Loss from discontinued operations, net of tax		$	(0.17	)		$	(1.12	)		$	(0.23	)		$	(0.86	)
Net income (loss)		$	0.36			$	(3.16	)		$	0.60			$	(2.36	)
Weighted average shares used in calculating earnings (loss) per share:
Basic			20,619				20,239				20,484				20,061
Diluted			20,849				20,239				20,702				20,061

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

		Three months ended												Nine months ended
		March 31,				June 30,				September 30,				September 30,
		2010				2010				2010				2010
Revenues and reimbursable expenses:
Revenues		$	127,742			$	135,654			$	145,442			$	408,838
Reimbursable expenses			11,499				12,490				12,860				36,849
Total revenues and reimbursable expenses			139,241				148,144				158,302				445,687
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			84,911				83,033				87,250				255,194
Intangible assets amortization			886				887				886				2,659
Reimbursable expenses			11,552				12,443				12,920				36,915
Total direct costs and reimbursable expenses			97,349				96,363				101,056				294,768
Operating expenses:
Selling, general and administrative			29,068				29,024				26,658				84,750
Restructuring charges			—				1,165				295				1,460
Restatement related expenses			759				2,428				1,056				4,243
Litigation settlement			—				4,764				—				4,764
Depreciation and amortization			4,627				4,839				4,608				14,074
Total operating expenses			34,454				42,220				32,617				109,291
Operating income			7,438				9,561				24,629				41,628
Other income (expense):
Interest expense, net of interest income			(2,955	)			(3,553	)			(4,040	)			(10,548	)
Other income (expense)			246				(464	)			261				43
Total other expense			(2,709	)			(4,017	)			(3,779	)			(10,505	)
Income from continuing operations before income tax expense			4,729				5,544				20,850				31,123
Income tax expense			2,048				2,030				9,797				13,875
Net income from continuing operations			2,681				3,514				11,053				17,248
Loss from discontinued operations (including gain on disposal of $1.2 million for the three and nine months ended September 30, 2010), net of tax			(167	)			(1,139	)			(3,603	)			(4,909	)
Net income		$	2,514			$	2,375			$	7,450			$	12,339
Net earnings (loss) per basic share:
Income from continuing operations		$	0.13			$	0.17			$	0.54			$	0.84
Loss from discontinued operations, net of tax		$	(0.01	)		$	(0.05	)		$	(0.18	)		$	(0.24	)
Net income		$	0.12			$	0.12			$	0.36			$	0.60
Net earnings (loss) per diluted share:
Income from continuing operations		$	0.13			$	0.17			$	0.53			$	0.83
Loss from discontinued operations, net of tax		$	(0.01	)		$	(0.05	)		$	(0.17	)		$	(0.23	)
Net income		$	0.12			$	0.12			$	0.36			$	0.60
Weighted average shares used in calculating earnings (loss) per share:
Basic			20,296				20,534				20,619				20,484
Diluted			20,496				20,756				20,849				20,702

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

		September 30, 2010				December 31, 2009
Assets
Current assets:
Cash and cash equivalents		$	6,280			$	5,715
Receivables from clients, net			76,243				73,760
Unbilled services, net			50,242				32,530
Income tax receivable			8,746				18,911
Deferred income taxes			13,156				16,338
Prepaid expenses and other current assets			14,929				19,078
Current assets of discontinued operations			12,451				26,451
Total current assets			182,047				192,783
Property and equipment, net			32,415				39,133
Deferred income taxes			19,813				21,298
Other non-current assets			13,463				14,134
Intangible assets, net			16,759				22,406
Goodwill			468,287				464,169
Non-current assets of discontinued operations			—				292
Total assets		$	732,784			$	754,215
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	8,754			$	7,150
Accrued expenses			28,548				29,185
Accrued payroll and related benefits			38,147				69,758
Accrued consideration for business acquisitions, current portion			2,000				63,188
Income tax payable			272				874
Deferred revenues			15,625				13,155
Current portion of capital lease obligations			68				278
Current liabilities of discontinued operations			3,906				9,405
Total current liabilities			97,320				192,993
Non-current liabilities:
Deferred compensation and other liabilities			6,932				6,131
Accrued consideration for business acquisitions, net of current portion			2,000				—
Capital lease obligations, net of current portion			—				5
Bank borrowings			269,500				219,000
Deferred lease incentives			7,704				8,681
Non-current liabilities of discontinued operations			—				416
Total non-current liabilities			286,136				234,233
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,190,037 and 22,624,515 shares issued at September 30, 2010 and December 31, 2009, respectively			220				213
Treasury stock, at cost, 1,266,347 and 995,409 shares at September 30, 2010 and December 31, 2009, respectively			(62,144	)			(51,561	)
Additional paid-in capital			356,459				335,272
Retained earnings			56,197				43,858
Accumulated other comprehensive loss			(1,404	)			(793	)
Total stockholders’ equity			349,328				326,989
Total liabilities and stockholders’ equity		$	732,784			$	754,215

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

		Nine months ended September 30,
		2010				2009
Cash flows from operating activities:
Net income (loss)		$	12,339			$	(47,272	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			16,840				21,038
Share-based compensation			16,681				16,574
Non-cash compensation			—				8,333
Allowances for doubtful accounts and unbilled services			4,408				3,527
Deferred income taxes			2,704				(44,883	)
Loss on disposal of property and equipment			198				—
Gain on sale of business			(1,232	)			—
Impairment charge on goodwill			—				106,000
Other gain			—				(2,686	)
Changes in operating assets and liabilities, net of businesses acquired:
Decrease (increase) in receivables from clients			4,273				(21,620	)
Increase in unbilled services			(16,968	)			(24,167	)
Decrease in current income tax receivable / payable, net			8,778				5,306
Decrease in other assets			20				308
(Decrease) increase in accounts payable and accrued liabilities			(1,717	)			16,246
(Decrease) increase in accrued payroll and related benefits			(37,412	)			14,943
Increase (decrease) in deferred revenues			2,000				(3,879	)
Net cash provided by operating activities			10,912				47,768
Cash flows from investing activities:
Purchases of property and equipment, net			(4,691	)			(10,971	)
Net surrender of (investment in) life insurance policies			540				(1,424	)
Purchases of businesses			(65,230	)			(48,370	)
Sales of businesses			7,942				—
Net cash used in investing activities			(61,439	)			(60,765	)
Cash flows from financing activities:
Proceeds from exercise of stock options			40				160
Shares redeemed for employee tax withholdings			(1,379	)			(3,163	)
Tax benefit from share-based compensation			720				7,813
Proceeds from borrowings under credit facility			297,500				202,000
Repayments on credit facility			(247,000	)			(180,500	)
Payments of capital lease obligations			(215	)			(283	)
Net cash provided by financing activities			49,666				26,027
Effect of exchange rate changes on cash			1,147				(405	)
Net increase in cash and cash equivalents			286				12,625
Cash and cash equivalents at beginning of the period			6,459				14,106
Cash and cash equivalents at end of the period (*)		$	6,745			$	26,731

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

		Three Months Ended								Percent
		September 30,								Increase
Segment and Consolidated Operating Results (in thousands):		2010				2009				(Decrease)
Health and Education Consulting:
Revenues		$	89,051			$	99,714				(10.7	%)
Operating income (1)		$	32,002			$	38,676				(17.3	%)
Segment operating income as a percent of segment revenues			35.9	%			38.8	%
Legal Consulting:
Revenues		$	37,885			$	29,314				29.2	%
Operating income		$	11,697			$	5,360				118.2	%
Segment operating income as a percent of segment revenues			30.9	%			18.3	%
Financial Consulting:
Revenues		$	18,506			$	19,985				(7.4	%)
Operating income (1)		$	5,782			$	4,421				30.8	%
Segment operating income as a percent of segment revenues			31.2	%			22.1	%
Total Company:
Revenues		$	145,442			$	149,013				(2.4	%)
Reimbursable expenses			12,860				12,731				1.0	%
Total revenues and reimbursable expenses		$	158,302			$	161,744				(2.1	%)
Statement of operations reconciliation:
Segment operating income		$	49,481			$	48,457				2.1	%
Charges not allocated at the segment level:
Other selling, general and administrative expenses			20,244				33,590				(39.7	%)
Depreciation and amortization expense			4,608				5,484				(16.0	%)
Impairment charge on goodwill			—				67,034				N/M
Total operating income (loss)			24,629				(57,651	)			N/M
Other expense, net			3,779				2,236				69.0	%
Income (loss) from continuing operations before income tax expense		$	20,850			$	(59,887	)			N/M
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			860				844				1.9	%
Legal Consulting			122				134				(9.0	%)
Financial Consulting			89				94				(5.3	%)
Total			1,071				1,072				(0.1	%)
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			841				858
Legal Consulting			123				140
Financial Consulting			86				94
Total			1,050				1,092
Full-time billable consultant utilization rate (3):
Health and Education Consulting			78.6	%			75.1	%
Legal Consulting			69.2	%			58.0	%
Financial Consulting			77.3	%			74.1	%
Total			77.4	%			72.8	%

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

		Three Months Ended
		September 30,
Other Operating Data:		2010				2009
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	244			$	299
Legal Consulting		$	215			$	188
Financial Consulting		$	324			$	359
Total		$	249			$	294
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	89			$	106
Legal Consulting		$	63			$	51
Financial Consulting		$	129			$	145
Total		$	90			$	102
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			157				107
Legal Consulting			775				645
Financial Consulting			110				106
Total			1,042				858
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	88			$	85
Legal Consulting		$	39			$	34
Financial Consulting		$	68			$	60
Total		$	49			$	44

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

		Nine Months Ended								Percent
		September 30,								Increase
Segment and Consolidated Operating Results (in thousands):		2010				2009				(Decrease)
Health and Education Consulting:
Revenues		$	249,747			$	283,205				(11.8	%)
Operating income (1)		$	81,867			$	106,746				(23.3	%)
Segment operating income as a percent of segment revenues			32.8	%			37.7	%
Legal Consulting:
Revenues		$	104,941			$	83,423				25.8	%
Operating income		$	28,418			$	16,316				74.2	%
Segment operating income as a percent of segment revenues			27.1	%			19.6	%
Financial Consulting:
Revenues		$	54,150			$	50,946				6.3	%
Operating income (1)		$	15,261			$	10,009				52.5	%
Segment operating income as a percent of segment revenues			28.2	%			19.6	%
Total Company:
Revenues		$	408,838			$	417,574				(2.1	%)
Reimbursable expenses			36,849				36,892				(0.1	%)
Total revenues and reimbursable expenses		$	445,687			$	454,466				(1.9	%)
Statement of operations reconciliation:
Segment operating income		$	125,546			$	133,071				(5.7	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses			69,844				78,527				(11.1	%)
Depreciation and amortization expense			14,074				16,673				(15.6	%)
Impairment charge on goodwill			—				67,034				N/M
Total operating income (loss)			41,628				(29,163	)			N/M
Other expense, net			10,505				7,820				34.3	%
Income (loss) from continuing operations before income tax expense		$	31,123			$	(36,983	)			N/M
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			860				844				1.9	%
Legal Consulting			122				134				(9.0	%)
Financial Consulting			89				94				(5.3	%)
Total			1,071				1,072				(0.1	%)
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			843				881
Legal Consulting			129				151
Financial Consulting			82				90
Total			1,054				1,122
Full-time billable consultant utilization rate (3):
Health and Education Consulting			73.6	%			76.1	%
Legal Consulting			62.3	%			57.8	%
Financial Consulting			73.0	%			72.0	%
Total			72.2	%			73.3	%

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

		Nine Months Ended
		September 30,
Other Operating Data:		2010				2009
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	240			$	268
Legal Consulting		$	205			$	211
Financial Consulting		$	308			$	331
Total		$	243			$	268
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	250			$	291
Legal Consulting		$	167			$	170
Financial Consulting		$	377			$	392
Total		$	250			$	283
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			151				105
Legal Consulting			726				609
Financial Consulting			114				93
Total			991				807
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	256			$	258
Legal Consulting		$	115			$	95
Financial Consulting		$	204			$	168
Total		$	147			$	125

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

		Three												Nine Months
		Months Ended												Ended
		March 31,				June 30,				September 30,				September 30,
Segment and Consolidated Operating Results (in thousands):		2010				2010				2010				2010
Health and Education Consulting:
Revenues		$	76,914			$	83,782			$	89,051			$	249,747
Operating income		$	21,066			$	28,799			$	32,002			$	81,867
Segment operating income as a percent of segment revenues			27.4	%			34.4	%			35.9	%			32.8	%
Legal Consulting:
Revenues		$	33,105			$	33,951			$	37,885			$	104,941
Operating income		$	7,419			$	9,302			$	11,697			$	28,418
Segment operating income as a percent of segment revenues			22.4	%			27.4	%			30.9	%			27.1	%
Financial Consulting:
Revenues		$	17,723			$	17,921			$	18,506			$	54,150
Operating income		$	4,518			$	4,961			$	5,782			$	15,261
Segment operating income as a percent of segment revenues			25.5	%			27.7	%			31.2	%			28.2	%
Total Company:
Revenues		$	127,742			$	135,654			$	145,442			$	408,838
Reimbursable expenses			11,499				12,490				12,860				36,849
Total revenues and reimbursable expenses		$	139,241			$	148,144			$	158,302			$	445,687
Statement of operations reconciliation:
Segment operating income		$	33,003			$	43,062			$	49,481			$	125,546
Charges not allocated at the segment level:
Other selling, general and administrative expenses			20,938				28,662				20,244				69,844
Depreciation and amortization expense			4,627				4,839				4,608				14,074
Total operating income			7,438				9,561				24,629				41,628
Other expense, net			2,709				4,017				3,779				10,505
Income from continuing operations before income tax expense		$	4,729			$	5,544			$	20,850			$	31,123
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			847				826				860				860
Legal Consulting			127				127				122				122
Financial Consulting			82				82				89				89
Total			1,056				1,035				1,071				1,071
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			861				835				841				843
Legal Consulting			137				128				123				129
Financial Consulting			82				83				86				82
Total			1,080				1,046				1,050				1,054
Full-time billable consultant utilization rate (3):
Health and Education Consulting			68.1	%			74.3	%			78.6	%			73.6	%
Legal Consulting			55.2	%			63.3	%			69.2	%			62.3	%
Financial Consulting			67.8	%			73.9	%			77.3	%			73.0	%
Total			66.4	%			73.0	%			77.4	%			72.2	%

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

		Three												Nine Months
		Months Ended												Ended
		March 31,				June 30,				September 30,				September 30,
Other Operating Data:		2010				2010				2010				2010
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	237			$	240			$	244			$	240
Legal Consulting		$	190			$	208			$	215			$	205
Financial Consulting		$	296			$	303			$	324			$	308
Total		$	238			$	243			$	249			$	243
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	76			$	85			$	89			$	250
Legal Consulting		$	46			$	59			$	63			$	167
Financial Consulting		$	115			$	125			$	129			$	377
Total		$	75			$	85			$	90			$	250
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			141				157				157				151
Legal Consulting			727				676				775				726
Financial Consulting			124				108				110				114
Total			992				941				1,042				991
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	84			$	83			$	88			$	256
Legal Consulting		$	37			$	39			$	39			$	115
Financial Consulting		$	67			$	70			$	68			$	204
Total		$	47			$	50			$	49			$	147

		Three Months Ended				Nine Months Ended
		September 30, 2009				September 30, 2009
Health and Education Consulting		$	733			$	5,605
Financial Consulting			271				1,895
Total		$	1,004			$	7,500

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

		Three months ended								Nine months ended
		September 30,								September 30,
		2010				2009				2010				2009
Revenues		$	145,442			$	149,013			$	408,838			$	417,574
Net income (loss) from continuing operations		$	11,053			$	(41,346	)		$	17,248			$	(30,018	)
Add back:
Income tax expense (benefit)			9,797				(18,541	)			13,875				(6,965	)
Interest and other expenses			3,779				2,236				10,505				7,820
Depreciation and amortization			5,494				6,445				16,733				20,407
Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) (6)			30,123				(51,206	)			58,361				(8,756	)
Add back:
Non-cash compensation (1)			—				1,004				—				7,500
Restatement related expenses			1,056				13,042				4,243				13,427
Restructuring charges			295				1,942				1,460				1,942
Impairment charge on goodwill			—				67,034				—				67,034
Litigation settlement			—				—				4,764				—
Other gain			—				—				—				(2,687	)
Adjusted EBITDA (6)		$	31,474			$	31,816			$	68,828			$	78,460
Adjusted EBITDA as a percentage of revenues (6)			21.6	%			21.4	%			16.8	%			18.8	%