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)

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 21, 2011, Huron Consulting Group Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 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 February 21, 2011

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 February 21, 2011

Exhibit 99.1

FOR IMMEDIATE RELEASE
February 21, 2011

Huron Consulting Group Announces
Fourth Quarter and Full Year 2010 Financial Results

Fourth Quarter Highlights and 2011 Guidance

	•		Revenues of $144.2 million for Q4 2010 increased from $141.9 million in Q4 2009.
	•		Net loss from continuing operations for Q4 2010, which was negatively impacted by a previously announced litigation settlement, was $4.9 million, or $0.23 per share(7), compared to income of $9.5 million, or $0.47 per diluted share(7), for Q4 2009. Non-GAAP Adjusted Net Income(6) was $8.4 million, or $0.40 per diluted share, for Q4 2010 compared to $13.6 million, or $0.67 per diluted share, for Q4 2009.
	•		Full-time billable consultant utilization rate(3) was 78.8% during Q4 2010 compared to 69.0% in Q4 2009.
	•		Average number of full-time billable consultants(2) was 1,101 for Q4 2010 compared to 1,085 for the same period last year. The average number of full-time equivalent professionals(5) increased 10.0% to 1,120 for Q4 2010 compared to 1,018 for the same period last year.
	•		Company anticipates full year 2011 revenues will be in a range of $580 million to $620 million.

CHICAGO — February 21, 2011 — Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced its financial results for the fourth quarter and full year ended December 31, 2010.

“Huron’s results for the quarter reflect solid performance in our Legal Consulting segment and in our Healthcare practice,” said James H. Roth, chief executive officer, Huron Consulting Group. “As our clients navigate the ongoing uncertainties in their businesses, they continue to rely on Huron expertise to help them achieve their market objectives. The strength of our client base and their continued reliance on Huron expertise is recognition of the competency of our personnel and our ability to provide value.”

“We have entered 2011 with optimism about the opportunities across all of our businesses. While the year is still young, we see encouraging signs in the marketplace. Within our Healthcare practice, our hospital clients continue to face challenges stemming from declining margins and uncertain implications associated with evolving healthcare reform. Within our Higher Education and Life Sciences practices, many institutions are facing similar financial pressures due to state and federal cutbacks. Following historical patterns, financial pressures and industry reform typically create opportunities for consulting firms. Our Legal Consulting practice, which had a very strong second half of 2010, is continuing to meet the demands of its global client base,” added Roth.

Fourth Quarter 2010 Results

The following information is reported on a “continuing operations” basis unless otherwise noted. Results also reflect the previously announced proposed settlement of the purported class action lawsuit, which resulted in a pre-tax charge of $12.6 million, or $0.36 per diluted share, in the fourth quarter of 2010.

Revenues for the fourth quarter of 2010 were $144.2 million compared to $141.9 million for the fourth quarter of 2009. The Company’s fourth quarter 2010 operating income was $1.3 million compared to $16.2 million in the fourth quarter of 2009. Net income from continuing operations was a loss of $4.9 million, or a loss of $0.23 per share, for the fourth quarter of 2010 compared to income of $9.5 million, or $0.47 per diluted share, for the same period last year. Net income, including discontinued operations, was a loss of $3.8 million, or a loss of $0.18 per share, for the fourth quarter of 2010 compared to income of $14.4 million, or $0.71 per diluted share, for the same period last year.

Fourth quarter 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁶⁾ was $7.3 million, compared to $22.6 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
		December 31,
		2010				2009
Amortization of intangible assets		$	2,520			$	2,303
Restatement related expenses		$	4,423			$	4,063
Restructuring charges		$	2,603			$	591
Litigation settlement, net		$	12,552			$	—

Adjusted EBITDA⁽⁶⁾ was $26.9 million, or 18.7% of revenues, in the fourth quarter of 2010, compared to $27.2 million, or 19.2% of revenues, in the comparable quarter last year. Non-GAAP Adjusted Net Income⁽⁶⁾ was $8.4 million, or $0.40 per diluted share, for the fourth quarter of 2010 compared to $13.6 million, or $0.67 per diluted share, for the comparable period in 2009.

The average number of full-time billable consultants⁽²⁾ was 1,101 in the fourth quarter of 2010 compared to 1,085 in the same quarter last year. Full-time billable consultant utilization rate⁽³⁾ was 78.8% during the fourth quarter of 2010 compared with 69.0% during the same period last year. Average billing rate per hour for full-time billable consultants⁽⁴⁾ was $239 for the fourth quarter of 2010 compared to $285 for the fourth quarter of 2009. The average number of full-time equivalent professionals⁽⁵⁾ increased 10.0% to 1,120 in the fourth quarter of 2010 from 1,018 in the comparable period in 2009.

Full Year 2010 Results

The following information is reported on a “continuing operations” basis unless otherwise noted. Results also reflect the previously announced proposed settlement of the purported class action lawsuit, which resulted in a pre-tax charge of $12.6 million, or $0.36 per diluted share, for the full year 2010.

Revenues were $553.0 million for the full year 2010 compared to $559.5 million for the full year 2009. The Company’s operating income for the full year 2010 was $43.0 million compared to a loss of $13.0 million for the full year 2009. Net income from continuing operations was $12.4 million, or $0.60 per diluted share, for the full year 2010 compared to a loss of $20.5 million, or a loss $1.02 per share, for the same period last year. Net income, including discontinued operations, was $8.5 million, or $0.41 per diluted share, for the full year 2010 compared to a loss of $32.9 million, or a loss $1.63 per share, for the same period last year.

EBITDA⁽⁶⁾ was $65.7 million for the full year 2010, compared to $13.8 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):

		Twelve Months
		Ended
		December 31,
		2010				2009
Amortization of intangible assets		$	8,123			$	9,903
Non-cash compensation(1)		$	—			$	7,500
Restatement related expenses		$	8,666			$	17,490
Restructuring charges		$	4,063			$	2,533
Impairment charge on goodwill		$	—			$	67,034
Litigation settlements, net		$	17,316			$	—
Other gain		$	—			$	(2,687	)

Adjusted EBITDA⁽⁶⁾ was $95.7 million, or 17.3% of revenues, for the full year 2010 compared to $105.7 million, or 18.9% of revenues, in the comparable period last year. Non-GAAP Adjusted Net Income⁽⁶⁾ was $35.3 million, or $1.70 per diluted share, for the full year 2010 compared to $42.6 million, or $2.08 per diluted share, for the comparable period in 2009.

The average number of full-time billable consultants⁽²⁾ was 1,068 for the full year 2010 compared to 1,113 in the same period last year. Full-time billable consultant utilization rate⁽³⁾ was 73.9% for the full year 2010 compared with 72.3% during the same period last year. Average billing rate per hour for full-time billable consultants⁽⁴⁾ was $242 for the full year 2010 compared to $270 for the full year 2009. The average number of full-time equivalent professionals⁽⁵⁾ increased 19.5% to 1,025 for the full year 2010 from 858 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 full year 2010 total revenues, respectively.

Financial results by segment are included in the attached schedules and in Huron’s Form 10-K filing for the year ended December 31, 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 divested its Disputes & Investigations 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.

Acquisitions

In November 2010, the Company acquired Click Commerce, Inc. and TRILANTIC International Limited in the Health and Education Consulting and Legal Consulting segments, respectively.

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. TRILANTIC is an e-discovery business providing technology solutions to clients in Europe and the Middle East.

Outlook for 2011

Based on currently available information, the Company provided guidance for full year 2011 revenues before reimbursable expenses in a range of $580.0 million to $620.0 million. The Company also anticipates EBITDA^(8,10) in a range of $94.5 million to $104.5 million, Adjusted EBITDA^(8,10) in a range of $101.5 million to $111.5 million, GAAP diluted earnings per share in a range of $1.45 to $1.70, and non-GAAP adjusted diluted earnings per share^(8,10) in a range of $1.85 to $2.10.

Management will provide a more detailed discussion of its outlook during the Company’s earnings conference call webcast.

Fourth Quarter and Full Year 2010 Webcast

The Company will host a webcast to discuss its financial results tomorrow, February 22, 2011, 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, Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations, which are non-GAAP measures. Management believes that such measures, as supplements to operating income (loss), net income (loss) from continuing operations and diluted earnings (loss) per share from continuing operations 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 investigation with respect to the restatement and the related purported private shareholder class action lawsuit and derivative lawsuits, (iii) the request by the

United States Attorney’s Office for the Northern District of Illinois for certain documents, (iv) final approval of the proposed settlement of the purported class action lawsuit related to the restatement, and (v) the share price of the shares of our common stock included as a portion of the settlement consideration at the time of issuance. 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; that existing market conditions continue to trend upward; that we will receive final approval of the proposed settlement of the purported class action lawsuit related to the restatement; and the share price of the shares of our common stock included as a portion of the settlement consideration at the time of issuance. These statements involve known and unknown risks, uncertainties and other factors, including, among others, those described under “Item 1A. Risk Factors” in our forthcoming 2010 Annual Report on Form 10-K for the full year ended December 31, 2010 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.

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								Twelve Months Ended
		December 31,								December 31,
		2010				2009				2010				2009
Revenues and reimbursable expenses:
Revenues		$	144,169			$	141,884			$	553,007			$	559,458
Reimbursable expenses			14,744				10,740				51,593				47,632
Total revenues and reimbursable expenses			158,913				152,624				604,600				607,090
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			88,424				85,149				343,618				342,816
Intangible assets amortization			1,466				961				4,125				4,695
Reimbursable expenses			14,551				10,750				51,466				47,646
Total direct costs and reimbursable expenses			104,441				96,860				399,209				395,157
Operating expenses:
Selling, general and administrative			29,036				29,481				113,786				118,424
Restructuring charges			2,603				591				4,063				2,533
Restatement related expenses			4,423				4,063				8,666				17,490
Litigation settlements, net			12,552				—				17,316				—
Depreciation and amortization			4,531				5,443				18,605				22,116
Impairment charge on goodwill			—				—				—				67,034
Total operating expenses			53,145				39,578				162,436				227,597
Other gain			—				—				—				2,687
Operating income (loss)			1,327				16,186				42,955				(12,977	)
Other income (expense):
Interest expense, net of interest income			(3,854	)			(3,246	)			(14,402	)			(12,256	)
Other income			219				693				262				1,883
Total other expense			(3,635	)			(2,553	)			(14,140	)			(10,373	)
(Loss) income from continuing operations before income tax expense			(2,308	)			13,633				28,815				(23,350	)
Income tax expense (benefit)			2,559				4,126				16,434				(2,839	)
Net (loss) income from continuing operations			(4,867	)			9,507				12,381				(20,511	)
Income (loss) from discontinued operations (including gain on disposal of $1.2 million during the twelve months ended December 31, 2010 and loss on disposal of $0.4 million during the three and twelve months ended December 31, 2009), net of tax			1,053				4,892				(3,856	)			(12,362	)
Net (loss) income		$	(3,814	)		$	14,399			$	8,525			$	(32,873	)
Net earnings (loss) per basic share:
(Loss) income from continuing operations		$	(0.23	)		$	0.47			$	0.60			$	(1.02	)
Income (loss) from discontinued operations, net of tax		$	0.05			$	0.24			$	(0.19	)		$	(0.61	)
Net (loss) income		$	(0.18	)		$	0.71			$	0.41			$	(1.63	)
Net earnings (loss) per diluted share:
(Loss) income from continuing operations		$	(0.23	)		$	0.47			$	0.60			$	(1.02	)
Income (loss) from discontinued operations, net of tax		$	0.05			$	0.24			$	(0.19	)		$	(0.61	)
Net (loss) income		$	(0.18	)		$	0.71			$	0.41			$	(1.63	)
Weighted average shares used in calculating earnings (loss) per share:
Basic			20,728				20,271				20,546				20,114
Diluted			20,728				20,419				20,774				20,114

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

		December 31,
		2010				2009
Assets
Current assets:
Cash and cash equivalents		$	6,271			$	5,715
Receivables from clients, net			91,389				75,845
Unbilled services, net			33,076				34,441
Income tax receivable			4,896				18,911
Deferred income taxes			19,853				16,338
Insurance recovery receivable			27,000				—
Prepaid expenses and other current assets			15,653				19,078
Current assets of discontinued operations			2,476				22,455
Total current assets			200,614				192,783
Property and equipment, net			32,935				39,133
Deferred income taxes			12,440				21,298
Other non-current assets			10,575				14,134
Intangible assets, net			26,205				22,406
Goodwill			506,214				464,169
Non-current assets of discontinued operations			—				292
Total assets		$	788,983			$	754,215
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	8,310			$	7,150
Accrued expenses			28,849				29,185
Accrued payroll and related benefits			45,184				69,758
Accrued consideration for business acquisitions, current portion			25,013				63,188
Accrued litigation settlement			39,552				—
Income tax payable			451				874
Deferred revenues			18,069				13,155
Current portion of capital lease obligations			32				278
Current liabilities of discontinued operations			699				9,405
Total current liabilities			166,159				192,993
Non-current liabilities:
Deferred compensation and other liabilities			6,282				6,131
Accrued consideration for business acquisitions, net of current portion			3,847				—
Capital lease obligations, net of current portion			—				5
Bank borrowings			257,000				219,000
Deferred lease incentives			7,323				8,681
Non-current liabilities of discontinued operations			—				416
Total non-current liabilities			274,452				234,233
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,221,287 and 22,624,515 shares issued at December 31, 2010 and 2009, respectively			222				213
Treasury stock, at cost, 1,343,201 and 995,409 shares at December 31, 2010 and 2009, respectively			(65,675	)			(51,561	)
Additional paid-in capital			363,402				335,272
Retained earnings			52,383				43,858
Accumulated other comprehensive loss			(1,960	)			(793	)
Total stockholders’ equity			348,372				326,989
Total liabilities and stockholders’ equity		$	788,983			$	754,215

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

		Twelve Months Ended
		December 31,
		2010				2009
Cash flows from operating activities:
Net income (loss)		$	8,525			$	(32,873	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			22,861				28,333
Share-based compensation			20,682				19,904
Non-cash compensation			—				8,333
Allowances for doubtful accounts and unbilled services			350				1,993
Deferred income taxes			(863	)			(27,892	)
Loss on disposal of property and equipment			208				—
Gain on sale of business			(1,232	)			—
Non-cash portion of litigation settlement			12,552
Impairment charge on goodwill			—				106,000
Write-down of goodwill and intangibles related to sale of business			—				3,425
Other gains			—				(3,286	)
Changes in operating assets and liabilities, net of businesses acquired:
(Increase) decrease in receivables from clients			(554	)			(2,597	)
Decrease (increase) in unbilled services			6,210				2,503
Decrease (increase) in current income tax receivable / payable, net			13,106				(15,957	)
Decrease (increase) in other assets			2,274				(622	)
(Decrease) increase in accounts payable and accrued liabilities			(3,665	)			6,928
(Decrease) increase in accrued payroll and related benefits			(33,439	)			28,335
Increase (decrease) in deferred revenues			3,036				(8,601	)
Net cash provided by operating activities			50,051				113,926
Cash flows from investing activities:
Purchases of property and equipment, net			(8,500	)			(12,616	)
Net surrender of (investment in) life insurance policies			687				(395	)
Purchases of businesses, net of cash acquired			(87,946	)			(51,550	)
Sales of businesses			7,942				—
Net cash used in investing activities			(87,817	)			(64,561	)
Cash flows from financing activities:
Proceeds from exercise of stock options			73				162
Shares redeemed for employee tax withholdings			(1,550	)			(3,304	)
Tax benefit from share-based compensation			1,291				7,952
Proceeds from borrowings under credit facility			363,500				246,000
Repayments on credit facility			(325,500	)			(307,000	)
Principal payments of notes payable and capital lease obligations			(257	)			(370	)
Net cash provided by (used in) financing activities			37,557				(56,560	)
Effect of exchange rate changes on cash			97				(452	)
Net (decrease) increase in cash and cash equivalents			(112	)			(7,647	)
Cash and cash equivalents at beginning of the period			6,459				14,106
Cash and cash equivalents at end of the period (*)		$	6,347			$	6,459

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

		Three Months Ended								Percent
		December 31,								Increase
Segment and Consolidated Operating Results (in thousands):		2010				2009				(Decrease)
Health and Education Consulting:
Revenues		$	88,541			$	90,676				(2.4	%)
Operating income		$	30,472			$	34,549				(11.8	%)
Segment operating income as a percent of segment revenues			34.4	%			38.1	%
Legal Consulting:
Revenues		$	39,789			$	31,401				26.7	%
Operating income		$	10,836			$	5,719				89.5	%
Segment operating income as a percent of segment revenues			27.2	%			18.2	%
Financial Consulting:
Revenues		$	15,839			$	19,807				(20.0	%)
Operating income		$	5,062			$	7,196				(29.7	%)
Segment operating income as a percent of segment revenues			32.0	%			36.3	%
Total Company:
Revenues		$	144,169			$	141,884				1.6	%
Reimbursable expenses			14,744				10,740				37.3	%
Total revenues and reimbursable expenses		$	158,913			$	152,624				4.1	%
Statement of operations reconciliation:
Segment operating income		$	46,370			$	47,464				(2.3	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses			40,512				25,835				56.8	%
Depreciation and amortization expense			4,531				5,443				(16.8	%)
Total operating income			1,327				16,186				(91.8	%)
Other expense, net			3,635				2,553				42.4	%
Income (loss) from continuing operations before income tax expense		$	(2,308	)		$	13,633				(116.9	%)
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			907				857				5.8	%
Legal Consulting			122				141				(13.5	%)
Financial Consulting			86				87				(1.1	%)
Total			1,115				1,085				2.8	%
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			890				854
Legal Consulting			123				140
Financial Consulting			88				91
Total			1,101				1,085
Full-time billable consultant utilization rate (3):
Health and Education Consulting			80.3	%			72.4	%
Legal Consulting			65.2	%			54.6	%
Financial Consulting			82.4	%			58.6	%
Total			78.8	%			69.0	%

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

		Three Months Ended
		December 31,
Other Operating Data:		2010				2009
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	234			$	287
Legal Consulting		$	212			$	192
Financial Consulting		$	312			$	375
Total		$	239			$	285
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	84			$	94
Legal Consulting		$	55			$	45
Financial Consulting		$	118			$	118
Total		$	83			$	90
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			154				132
Legal Consulting			881				750
Financial Consulting			85				136
Total			1,120				1,018
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	92			$	76
Legal Consulting		$	37			$	34
Financial Consulting		$	64			$	67
Total		$	47			$	43

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

		Twelve Months Ended								Percent
		December 31,								Increase
Segment and Consolidated Operating Results (in thousands):		2010				2009				(Decrease)
Health and Education Consulting:
Revenues		$	338,288			$	373,881				(9.5	%)
Operating income (1)		$	112,339			$	141,295				(20.5	%)
Segment operating income as a percent of segment revenues			33.2	%			37.8	%
Legal Consulting:
Revenues		$	144,730			$	114,824				26.0	%
Operating income		$	39,254			$	22,035				78.1	%
Segment operating income as a percent of segment revenues			27.1	%			19.2	%
Financial Consulting:
Revenues		$	69,989			$	70,753				(1.1	%)
Operating income (1)		$	20,323			$	17,205				18.1	%
Segment operating income as a percent of segment revenues			29.0	%			24.3	%
Total Company:
Revenues		$	553,007			$	559,458				(1.2	%)
Reimbursable expenses			51,593				47,632				8.3	%
Total revenues and reimbursable expenses		$	604,600			$	607,090				(0.4	%)
Statement of operations reconciliation:
Segment operating income		$	171,916			$	180,535				(4.8	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses			110,356				104,362				5.7	%
Depreciation and amortization expense			18,605				22,116				(15.9	%)
Impairment charge on goodwill			—				67,034				(100.0	%)
Total operating income (loss)			42,955				(12,977	)			N/M
Other expense, net			14,140				10,373				36.3	%
Income (loss) from continuing operations before income tax expense		$	28,815			$	(23,350	)			N/M
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting			907				857				5.8	%
Legal Consulting			122				141				(13.5	%)
Financial Consulting			86				87				(1.1	%)
Total			1,115				1,085				2.8	%
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting			858				875
Legal Consulting			128				148
Financial Consulting			82				90
Total			1,068				1,113
Full-time billable consultant utilization rate (3):
Health and Education Consulting			75.3	%			75.3	%
Legal Consulting			62.9	%			57.1	%
Financial Consulting			75.4	%			68.8	%
Total			73.9	%			72.3	%

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

		Twelve Months Ended
		December 31,
Other Operating Data:		2010				2009
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting		$	239			$	272
Legal Consulting		$	206			$	207
Financial Consulting		$	309			$	323
Total		$	242			$	270
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	333			$	385
Legal Consulting		$	221			$	216
Financial Consulting		$	503			$	486
Total		$	332			$	370
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting			152				111
Legal Consulting			765				644
Financial Consulting			108				103
Total			1,025				858
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	348			$	335
Legal Consulting		$	152			$	129
Financial Consulting		$	266			$	262
Total		$	193			$	171

		Twelve Months Ended
		December 31, 2009
Health and Education Consulting		$	5,605
Financial Consulting			1,895
Total		$	7,500

N/M — Not meaningful

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								Twelve Months Ended
		December 31,								December 31,
		2010				2009				2010				2009
Revenues		$	144,169			$	141,884			$	553,007			$	559,458
Net income (loss) from continuing operations		$	(4,867	)		$	9,507			$	12,381			$	(20,511	)
Add back:
Income tax expense (benefit)			2,559				4,126				16,434				(2,839	)
Interest and other expenses			3,635				2,553				14,140				10,373
Depreciation and amortization			5,997				6,404				22,730				26,811
Earnings before interest, taxes, depreciation and amortization (EBITDA) (6)			7,324				22,590				65,685				13,834
Add back:
Non-cash compensation (1)			—				—				—				7,500
Restatement related expenses			4,423				4,063				8,666				17,490
Restructuring charges			2,603				591				4,063				2,533
Impairment charge on goodwill			—				—				—				67,034
Litigation settlements, net			12,552				—				17,316				—
Other gain			—				—				—				(2,687	)
Adjusted EBITDA (6)		$	26,902			$	27,244			$	95,730			$	105,704
Adjusted EBITDA as a percentage of revenues (6)			18.7	%			19.2	%			17.3	%			18.9	%

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

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2010				2009				2010				2009
Net income (loss) from continuing operations		$	(4,867	)		$	9,507			$	12,381			$	(20,511	)
Weighted average shares — diluted (7)			20,728				20,419				20,774				20,114
Diluted earnings (loss) per share from continuing operations		$	(0.23	)		$	0.47			$	0.60			$	(1.02	)
Add back:
Amortization of intangible assets			2,520				2,303				8,123				9,903
Non-cash compensation (1)			—				—				—				7,500
Restatement related expenses			4,423				4,063				8,666				17,490
Restructuring charges			2,603				591				4,063				2,533
Impairment charge on goodwill			—				—				—				67,034
Litigation settlements, net			12,552				—				17,316				—
Other gain			—				—				—				(2,687	)
Tax effect			(8,839	)			(2,852	)			(15,267	)			(38,652	)
Total adjustments, net of tax			13,259				4,105				22,901				63,121
Adjusted net income from continuing operations (6)		$	8,392			$	13,612			$	35,282			$	42,610
Weighted average shares — diluted			20,988				20,419				20,774				20,526
Adjusted diluted earnings per share from continuing operations (6)		$	0.40			$	0.67			$	1.70			$	2.08

HURON CONSULTING GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES FOR FULL YEAR 2011 OUTLOOK

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS ⁽⁸⁾ TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ^{(8) (10)}
(In millions)
(Unaudited)

		Year Ending
		December 31, 2011
		Guidance Range
		Low				High
Projected revenues — GAAP		$	580.0			$	620.0
Projected net income from continuing operations — GAAP (8)		$	32.0			$	37.5
Add back:
Income tax expense			26.0				30.5
Interest and other expenses			14.0				14.0
Depreciation and amortization			22.5				22.5
Projected earnings before interest, taxes, depreciation and amortization (EBITDA) (8) (10)			94.5				104.5
Add back:
Restructuring and restatement related expenses (9)			7.0				7.0
Projected adjusted EBITDA (8) (10)		$	101.5			$	111.5
Projected adjusted EBITDA as a percentage of projected revenues (10)			17.5	%			18.0	%

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS ⁽⁸⁾
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS ^{(8) (10)}
(In millions)
(Unaudited)

		Year Ending
		December 31, 2011
		Guidance Range
		Low				High
Projected net income from continuing operations — GAAP (8)		$	32.0			$	37.5
Projected diluted earnings per share from continuing operations — GAAP (8)		$	1.45			$	1.70
Add back:
Amortization of intangible assets			8.0				8.0
Restructuring and restatement related expenses (9)			7.0				7.0
Tax effect			(6.0	)			(6.0	)
Total adjustments, net of tax			9.0				9.0
Projected adjusted net income from continuing operations (8) (10)		$	41.0			$	46.5
Projected adjusted diluted earnings per share from continuing operations (8) (10)		$	1.85			$	2.10