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 12, 2010

Date of Report (Date of earliest event reported)

Huron Consulting Group Inc.

(Exact name of registrant as specified in its charter)

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

 

 

On November 12, 2010, Huron Consulting Group Inc. (the “Company”) posted supplementary financial information on its website to reflect the quarterly and annual 2009 results of operations and segment operating metrics excluding the effect of the discontinued operations of the business as of September 30, 2010. A copy of the supplementary financial information 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.

This Current Report on Form 8-K also corrects certain previously disclosed operating data related to the Financial Consulting segment and the total Company with respect to the full-time billable consultant average billing rate, the revenue per full-time billable consultant and the revenue per full-time equivalents for the three and nine months ended September 30, 2009. Total revenues for the Financial Consulting segment and the total Company remain unchanged, however the mix of revenue attributable to full-time billable consultants and full-time equivalents decreased $1.1 million and increased $1.1 million in the three months ended September 30, 2009, respectively. The mix of revenue attributable to full-time billable consultants and full-time equivalents decreased $2.3 million and increased $2.3 million in the nine months ended September 30, 2009, respectively, thereby resulting in a change to the aforementioned operating metrics for the three and nine months ended September 30, 2009.

As a result of the correction of the revenue mix discussed above, the corrected operating metrics are as follows:

		Financial Consulting Segment												Total Company
		Three months ended September 30,												Three months ended September 30,
										2009												2009
						2009				Previously								2009				Previously
		2010				Revised				Reported				2010				Revised				Reported
Full-time billable consultant average billing rate per hour		$	324			$	329			$	359			$	249			$	291			$	294
Revenue per full-time billable consultant (in thousands)		$	129			$	133			$	145			$	90			$	101			$	102
Revenue per full-time equivalents (in thousands)		$	68			$	71			$	60			$	49			$	45			$	44

		Financial Consulting Segment												Total Company
		Nine months ended September 30,												Nine months ended September 30,
										2009												2009
						2009				Previously								2009				Previously
		2010				Revised				Reported				2010				Revised				Reported
Full-time billable consultant average billing rate per hour		$	308			$	309			$	331			$	243			$	266			$	268
Revenue per full-time billable consultant (in thousands)		$	377			$	366			$	392			$	250			$	280			$	283
Revenue per full-time equivalents (in thousands)		$	204			$	193			$	168			$	147			$	127			$	125

Additionally, the following revenue discussions for the Financial Consulting segment and the total Company are impacted by the foregoing corrections and are corrected as follows.

Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009

Of the overall $3.6 million decrease in total Company revenues, $16.2 million was attributable to our full-time billable consultants, partially offset by a $12.6 million increase attributable to our full-time equivalents. The $16.2 million decrease in full-time billable consultant revenues was primarily attributable to a decrease in the demand for our services coupled with a continued weakened economy that has resulted in a decrease in discretionary spending by our clients as well as delayed decisions by clients on new client engagements. Our average billing rate decreased in the quarter compared to the same period in the prior year, however utilization increased due to the decrease in our billable headcount. The $12.6 million increase in full-time equivalent revenues resulted from increased demand for our variable, on-demand consultants in each of our segments.

Of the overall $1.5 million decrease in Financial Consulting revenues, $1.4 million was attributable to our full-time billable consultants and $0.1 million was attributable to our full-time equivalents. The $1.4 million decrease in full-time billable consultant revenues was primarily due to a decrease in demand for our consulting services. The $0.1 million decrease in full-time equivalent revenues resulted from a slight decrease in demand for our variable, on-demand consultants.

Nine Months Ended September 30, 2010 Compared to Nine Months Ended September 30, 2009

Of the overall $8.8 million decrease in total Company revenues, $51.3 million was attributable to our full-time billable consultants, partially offset by a $42.5 million increase attributable to our full-time equivalents. The $51.3 million decrease in full-time billable consultant revenues was primarily attributable to a decrease in the demand for our services coupled with a continued weakened economy that has resulted in a decrease in discretionary spending by our clients as well as delayed decisions by clients on new client engagements. Our average billing rate and utilization decreased in the first nine months of 2010 compared to same period in the prior year. The $42.5 million increase in full-time equivalent revenues primarily resulted from increased demand for our variable, on-demand consultants in each of our segments.

Of the overall $3.3 million increase in Financial Consulting revenues, $5.3 million was attributable to our full-time equivalents, which was partially offset by a $2.0 million decrease attributable to our full-time billable consultants. The $5.3 million increase in full-time equivalent revenues resulted from an increase in demand for our variable, on-demand consultants. The $2.0 million decrease in full-time billable consultant revenues was primarily due to a decrease in demand for our consulting services.

The information furnished pursuant to this Item 7.01 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			Supplementary financial information

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:		November 12, 2010				/s/ James K. Rojas
						James K. Rojas
						Vice President, Chief Financial Officer
						and Treasurer

Exhibit 99.1

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

		Quarter ended																Year ended
		March 31,				June 30,				September 30,				December 31,				December 31,
		2009				2009				2009				2009				2009
Revenues and reimbursable expenses:
Revenues		$	132,379			$	136,182			$	149,013			$	141,884			$	559,458
Reimbursable expenses			12,447				11,714				12,731				10,740				47,632
Total revenues and reimbursable expenses			144,826				147,896				161,744				152,624				607,090
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			81,834				84,821				91,012				85,149				342,816
Intangible assets amortization			1,686				1,087				961				961				4,695
Reimbursable expenses			12,476				11,702				12,718				10,750				47,646
Total direct costs and reimbursable expenses			95,996				97,610				104,691				96,860				395,157
Operating expenses:
Selling, general and administrative			30,808				30,933				27,202				29,481				118,424
Restructuring charges			—				—				1,942				591				2,533
Restatement related expenses			—				385				13,042				4,063				17,490
Depreciation and amortization			5,551				5,638				5,484				5,443				22,116
Impairment charge on goodwill			—				—				67,034				—				67,034
Total operating expenses			36,359				36,956				114,704				39,578				227,597
Other gain			—				2,687				—				—				2,687
Operating income (loss)			12,471				16,017				(57,651	)			16,186				(12,977	)
Other income (expense):
Interest expense, net of interest income			(2,734	)			(3,020	)			(3,256	)			(3,246	)			(12,256	)
Other income (expense)			(473	)			643				1,020				693				1,883
Total other expense			(3,207	)			(2,377	)			(2,236	)			(2,553	)			(10,373	)
Income (loss) from continuing operations before income tax expense			9,264				13,640				(59,887	)			13,633				(23,350	)
Income tax expense (benefit)			4,686				6,890				(18,541	)			4,126				(2,839	)
Net income (loss) from continuing operations			4,578				6,750				(41,346	)			9,507				(20,511	)
Income (loss) from discontinued operations (including loss on disposal of $0.4 million for the three and twelve months ended December 31, 2009), net of tax			2,498				2,896				(22,648	)			4,892				(12,362	)
Net income (loss)		$	7,076			$	9,646			$	(63,994	)		$	14,399			$	(32,873	)
Net earnings (loss) per basic share:
Income (loss) from continuing operations		$	0.23			$	0.34			$	(2.04	)		$	0.47			$	(1.02	)
Income (loss) from discontinued operations, net of tax		$	0.13			$	0.15			$	(1.12	)		$	0.24			$	(0.61	)
Net income (loss)		$	0.36			$	0.49			$	(3.16	)		$	0.71			$	(1.63	)
Net earnings (loss) per diluted share:
Income (loss) from continuing operations		$	0.23			$	0.33			$	(2.04	)		$	0.47			$	(1.02	)
Income (loss) from discontinued operations, net of tax		$	0.12			$	0.14			$	(1.12	)		$	0.24			$	(0.61	)
Net income (loss)		$	0.35			$	0.47			$	(3.16	)		$	0.71			$	(1.63	)
Weighted average shares used in calculating earnings (loss) per share:
Basic			19,528				19,752				20,239				20,271				20,114
Diluted			20,252				20,405				20,239				20,419				20,114

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

		Quarter ended																Year ended
Segment and Consolidated Operating Results (in thousands):		March 31, 2009				June 30, 2009				September 30, 2009				December 31, 2009				December 31, 2009
Health and Education Consulting:
Revenues		$	92,022			$	91,469			$	99,714			$	90,676			$	373,881
Operating income		$	33,640			$	34,430			$	38,676			$	34,549			$	141,295
Segment operating income as a percent of segment revenues			36.6	%			37.6	%			38.8	%			38.1	%			37.8	%
Legal Consulting:
Revenues		$	22,868			$	31,241			$	29,314			$	31,401			$	114,824
Operating income		$	3,241			$	7,715			$	5,360			$	5,719			$	22,035
Segment operating income as a percent of segment revenues			14.2	%			24.7	%			18.3	%			18.2	%			19.2	%
Financial Consulting:
Revenues		$	17,489			$	13,472			$	19,985			$	19,807			$	70,753
Operating income		$	3,670			$	1,918			$	4,421			$	7,196			$	17,205
Segment operating income as a percent of segment revenues			21.0	%			14.2	%			22.1	%			36.3	%			24.3	%
Total Company:
Revenues		$	132,379			$	136,182			$	149,013			$	141,884			$	559,458
Reimbursable expenses			12,447				11,714				12,731				10,740				47,632
Total revenues and reimbursable expenses		$	144,826			$	147,896			$	161,744			$	152,624			$	607,090
Statement of operations reconciliation:
Segment operating income		$	40,551			$	44,063			$	48,457			$	47,464			$	180,535
Charges not allocated at the segment level:
Other selling, general and administrative expenses			22,529				22,408				33,590				25,835				104,362
Depreciation and amortization expense			5,551				5,638				5,484				5,443				22,116
Impairment charge on goodwill			—				—				67,034				—				67,034
Total operating income (loss)			12,471				16,017				(57,651	)			16,186				(12,977	)
Other expense, net			3,207				2,377				2,236				2,553				10,373
Income (loss) from continuing operations before income tax expense		$	9,264			$	13,640			$	(59,887	)		$	13,633			$	(23,350	)
Other Operating Data:
Number of full-time billable consultants (at period end)(1):
Health and Education Consulting			895				868				844				857				857
Legal Consulting			161				141				134				141				141
Financial Consulting			87				89				94				87				87
Total			1,143				1,098				1,072				1,085				1,085
Average number of full-time billable consultants (for the period) (1):
Health and Education Consulting			902				887				858				854				875
Legal Consulting			162				152				140				140				148
Financial Consulting			92				88				94				91				90
Total			1,156				1,127				1,092				1,085				1,113
Full-time billable consultant utilization rate (2):
Health and Education Consulting			78.0	%			75.3	%			75.1	%			72.4	%			75.3	%
Legal Consulting			53.7	%			61.9	%			58.0	%			54.6	%			57.1	%
Financial Consulting			71.3	%			70.4	%			74.1	%			58.6	%			68.8	%
Total			74.1	%			73.1	%			72.8	%			69.0	%			72.3	%

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

		Quarter ended																Year ended
Other Operating Data:		March 31, 2009				June 30, 2009				September 30, 2009				December 31, 2009				December 31, 2009
Full-time billable consultant average billing rate per hour (3):
Health and Education Consulting		$	246			$	262			$	299			$	287			$	272
Legal Consulting		$	233			$	212			$	188			$	192			$	207
Financial Consulting		$	312			$	283			$	329			$	375			$	323
Total		$	250			$	258			$	291			$	285			$	270
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	92			$	93			$	106			$	94			$	385
Legal Consulting		$	57			$	61			$	51			$	45			$	216
Financial Consulting		$	117			$	110			$	133			$	118			$	486
Total		$	89			$	90			$	101			$	90			$	370
Average number of full-time equivalents (for the period) (4):
Health and Education Consulting			97				109				107				132				111
Legal Consulting			503				678				645				750				644
Financial Consulting			108				64				106				136				103
Total			708				851				858				1,018				858
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	95			$	81			$	85			$	76			$	335
Legal Consulting		$	27			$	32			$	34			$	34			$	129
Financial Consulting		$	62			$	59			$	71			$	67			$	262
Total		$	42			$	41			$	45			$	43			$	171