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

July 27, 2011
Date of Report (Date of earliest event reported)

Huron Consulting Group Inc.

(Exact name of registrant as specified in its charter)

Delaware		000-50976		01-0666114
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		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 July 27, 2011, Huron Consulting Group Inc. issued a press release announcing its financial results for the three and six months ended June 30, 2011. 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 July 27, 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 July 27, 2011

EXHIBIT 99.1

News

FOR IMMEDIATE RELEASE
July 27, 2011

Huron Consulting Group Announces
Second Quarter 2011 Financial Results

	•		Revenues increased 17.2% to $159.0 million for Q2 2011 compared to $135.7 million in Q2 2010; and increased sequentially from $143.0 million in Q1 2011.
	•		Diluted earnings per share from continuing operations for Q2 2011 rose 158.8% to $0.44 compared to $0.17 in Q2 2010.
	•		Adjusted diluted earnings per share from continuing operations(5), a non-GAAP measure, rose 23.4% to $0.58 in Q2 2011 compared to $0.47 in Q2 2010.
	•		Average number of full-time billable consultants(1) rose 12.0% to 1,171 for Q2 2011 compared to 1,046 for Q2 2010. Average number of full-time equivalent professionals(4) totaled 1,195 for Q2 2011 compared to 941 in the same period last year.
	•		Company narrows full year 2011 revenue guidance to a range of $600.0 million to $620.0 million.

CHICAGO — July 27, 2011 — Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced financial results for the second quarter ended June 30, 2011.

“Huron’s strong performance during the second quarter is reflective of how well our services are positioned in our key markets. Our great reputation in the health and education sectors enables us to be a leader in providing services to our hospital and university clients, who are dealing with significant and ongoing changes to their business environment. Our e-discovery business benefitted from our continued and successful focus on global corporations with complex document management needs,” said James H. Roth, chief executive officer and president, Huron Consulting Group. “The events driving our business are well-documented in the news every day, and we are confident that we are strategically prepared to assist our clients as their financial, operational, and regulatory environment continues to evolve.”

Second Quarter 2011 Results

Revenues for the second quarter of 2011 were $159.0 million, an increase of 17.2% compared to $135.7 million for the second quarter of 2010. The Company’s second quarter 2011 operating income was $22.8 million, an increase of 138.7% compared to $9.6 million in the second quarter of 2010. Net income from continuing operations rose 169.4% to $9.5 million, or diluted earnings per share of $0.44, for the second quarter of 2011 compared to $3.5 million, or $0.17 per diluted share, for the same period last year. Net income was $9.5 million, or $0.44 per diluted share, for the second quarter of 2011, an increase of 298.7% compared to $2.4 million, or $0.11 per diluted share, for the same period last year.

Second quarter 2011 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁵⁾ rose 87.0% to $28.6 million, or 18.0% of revenues, compared to $15.3 million, or 11.3% of revenues, 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
		June 30,
		2011				2010
Amortization of intangible assets		$	2,125			$	1,879
Restatement related expenses		$	1,785			$	2,428
Restructuring charges		$	461			$	1,165
Litigation settlement		$	508			$	4,764
Tax effect		$	(1,952	)		$	(4,094	)

Adjusted EBITDA⁽⁵⁾ rose 32.6% to $31.3 million, or 19.7% of revenues, in the second quarter of 2011, compared to $23.6 million, or 17.4% of revenues, in the comparable quarter last year. Adjusted Net Income⁽⁵⁾ from continuing operations was $12.4 million, or $0.58 per diluted share, for the second quarter of 2011 compared to $9.7 million, or $0.47 per diluted share, for the comparable period in 2010.

The average number of full-time billable consultants⁽¹⁾ was 1,171 in the second quarter of 2011 compared to 1,046 in the same quarter last year. Full-time billable consultant utilization rate was 71.9% during the second quarter of 2011 compared with 73.0% during the same period last year. Average billing rate per hour for full-time billable consultants was $269 for the second quarter of 2011 compared to $243 for the second quarter of 2010. The average number of full-time equivalent professionals⁽⁴⁾ totaled 1,195 in the second quarter of 2011 compared to 941 for the comparable period in 2010.

Year-to-Date Results

Revenues for the first six months of 2011 rose 14.7% to $302.0 million compared to $263.4 million for the first half of 2010. The Company’s operating income for the first six months of 2011 was $34.5 million, an increase of 102.7% compared to $17.0 million in the first six months of 2010. Net income from continuing operations was $13.4 million, or $0.63 per diluted share, for the first six months of 2011 compared to $6.2 million, or $0.30 per diluted share, for the same period last year. Net income was $13.5 million, or $0.63 per diluted share, for the first half of 2011 compared to $4.9 million, or $0.24 per diluted share, for the same period last year.

EBITDA⁽⁵⁾ was $46.0 million, or 15.2% of revenues, for the first half of 2011, compared to $28.2 million, or 10.7% of revenues, for the same period in 2010.

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

		Six Months Ended
		June 30,
		2011				2010
Amortization of intangible assets		$	4,401			$	3,757
Restatement related expenses		$	3,025			$	3,187
Restructuring charges		$	985			$	1,165
Litigation settlement		$	1,096			$	4,764
Tax effect		$	(3,803	)		$	(5,149	)

Adjusted EBITDA⁽⁵⁾ was $51.1 million, or 16.9% of revenues, in the first six months of 2011 compared to $37.4 million, or 14.2% of revenues, in the comparable period last year.

Adjusted net income from continuing operations⁽⁵⁾ was $19.1 million, or $0.90 per diluted share, for the first half of 2011 compared to $13.9 million, or $0.67 per diluted share, for the comparable period in 2010.

Reconciliations of the aforementioned non-GAAP financial measures to comparable GAAP measures are provided in the financial schedules accompanying this news release.

The average number of full-time billable consultants⁽¹⁾ was 1,153 in the first half of 2011 compared to 1,056 in the same period last year. Full-time billable consultant utilization rate was 74.9% during the first half of 2011 compared with 69.7% during the same period last year. Average billing rate per hour for full-time billable consultants was $246 for the first half of 2011 compared to $240 for the first half of 2010. The average number of full-time equivalent professionals⁽⁴⁾ increased 21.6% to 1,138 in the first half of 2011 from 936 in the comparable period of 2010.

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: Health and Education Consulting; Legal Consulting; and Financial Consulting, representing 65.2%, 25.6%, and 9.2% of year-to-date total revenues, respectively.

Financial results by segment are included in the attached schedules and in Huron’s forthcoming Form 10-Q filing for the quarter ended June 30, 2011.

Outlook for 2011

Based on currently available information, the Company narrowed guidance for full year 2011, including revenues before reimbursable expenses, to a range of $600.0 million to $620.0 million. The Company also anticipates EBITDA in a range of $97.5 million to $103.5 million, Adjusted EBITDA in a range of $105.5 million to $111.5 million, GAAP diluted earnings per share in a range of $1.60 to $1.75, and non-GAAP adjusted diluted earnings per share in a range of $2.05 to $2.20.

Second Quarter 2011 Webcast

The Company will host a webcast to discuss its financial results tomorrow, July 28, 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⁽⁵⁾

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, net income from continuing operations and diluted earnings 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 requirements and needs, 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,” “provides,” “anticipates,” “assumes,” “can,” “meets,” “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, and (iii) 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 requirements and needs, 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 continue to trend upward. These statements involve known and unknown risks, uncertainties

and other factors, including, among others, those described under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the full year ended December 31, 2010 and in our Quarterly Report on Form 10-Q for the period ended June 30, 2011 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:

C. Mark Hussey
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								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
Revenues and reimbursable expenses:
Revenues		$	159,035			$	135,654			$	302,020			$	263,396
Reimbursable expenses			14,470				12,490				27,572				23,989
Total revenues and reimbursable expenses			173,505				148,144				329,592				287,385
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs			95,503				83,033				188,562				167,944
Intangible assets amortization			1,369				887				2,802				1,773
Reimbursable expenses			14,573				12,443				27,815				23,995
Total direct costs and reimbursable expenses			111,445				96,363				219,179				193,712
Operating expenses:
Selling, general and administrative			32,086				29,024				62,144				58,092
Restructuring charge			461				1,165				985				1,165
Restatement related expenses			1,785				2,428				3,025				3,187
Litigation settlement, net			508				4,764				1,096				4,764
Depreciation and amortization			4,394				4,839				8,699				9,466
Total operating expenses			39,234				42,220				75,949				76,674
Operating income			22,826				9,561				34,464				16,999
Other income (expense):
Interest (expense), net of interest income			(3,535	)			(3,553	)			(7,107	)			(6,508	)
Other income (expense)			(65	)			(464	)			39				(218	)
Total other expense			(3,600	)			(4,017	)			(7,068	)			(6,726	)
Income from continuing operations before income tax expense			19,226				5,544				27,396				10,273
Income tax expense			9,760				2,030				13,969				4,078
Net income from continuing operations			9,466				3,514				13,427				6,195
Income (loss) from discontinued operations, net of tax			3				(1,139	)			98				(1,306	)
Net income		$	9,469			$	2,375			$	13,525			$	4,889
Net earnings (loss) per basic share:
Income from continuing operations		$	0.45			$	0.17			$	0.64			$	0.30
Loss from discontinued operations, net of tax		$	—			$	(0.05	)		$	—			$	(0.06	)
Net income		$	0.45			$	0.12			$	0.64			$	0.24
Net earnings (loss) per diluted share:
Income from continuing operations		$	0.44			$	0.17			$	0.63			$	0.30
Loss from discontinued operations, net of tax		$	—			$	(0.06	)		$	—			$	(0.06	)
Net income		$	0.44			$	0.11			$	0.63			$	0.24
Weighted average shares used in calculating earnings (loss) per share:
Basic			21,190				20,534				21,058				20,416
Diluted			21,476				20,756				21,316				20,627

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

		June 30,				December 31,
		2011				2010
Assets
Current assets:
Cash and cash equivalents		$	3,258			$	6,271
Receivables from clients, net			86,045				91,389
Unbilled services, net			49,335				33,076
Income tax receivable			8,514				4,896
Deferred income taxes			10,223				19,853
Insurance recovery receivable			—				27,000
Prepaid expenses and other current assets			13,623				15,653
Current assets of discontinued operations			—				2,476
Total current assets			170,998				200,614
Property and equipment, net			33,222				32,935
Deferred income taxes			7,176				12,440
Other non-current assets			13,968				10,575
Intangible assets, net			21,890				26,205
Goodwill			506,764				506,214
Total assets		$	754,018			$	788,983
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	10,320			$	8,310
Accrued expenses			33,299				28,849
Accrued payroll and related benefits			32,816				45,184
Accrued consideration for business acquisitions, current portion			2,914				25,013
Accrued litigation settlement			—				39,552
Income tax payable			112				451
Deferred revenues			22,771				18,069
Current portion of capital lease obligations			25				32
Current liabilities of discontinued operations			—				699
Total current liabilities			102,257				166,159
Non-current liabilities:
Deferred compensation and other liabilities			5,476				6,282
Accrued consideration for business acquisitions, net of current portion			2,914				3,847
Capital lease obligations, net of current portion			5				—
Bank borrowings			254,000				257,000
Deferred lease incentives			6,562				7,323
Total non-current liabilities			268,957				274,452
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 24,178,734 and 23,221,287 shares issued at June 30, 2011 and December 31, 2010, respectively			232				222
Treasury stock, at cost, 1,547,025 and 1,343,201 shares at June 30, 2011 and December 31, 2010, respectively			(72,388	)			(65,675	)
Additional paid-in capital			390,102				363,402
Retained earnings			65,908				52,383
Accumulated other comprehensive loss			(1,050	)			(1,960	)
Total stockholders’ equity			382,804				348,372
Total liabilities and stockholders’ equity		$	754,018			$	788,983

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

		Six Months Ended
		June 30,
		2011				2010
Cash flows from operating activities:
Net income		$	13,525			$	4,889
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			11,501				11,341
Share-based compensation			9,694				12,060
Allowances for doubtful accounts and unbilled services			1,685				481
Deferred income taxes			13,023				737
Gain on disposal of property and equipment			(46	)			—
Non-cash portion of litigation settlement			1,096				—
Changes in operating assets and liabilities, net of businesses acquired:
Decrease in receivables from clients			7,941				6,397
Increase in unbilled services			(18,933	)			(7,459	)
(Increase) decrease in current income tax receivable, net			(4,247	)			6,737
Decrease (increase) in other assets			717				(1,742	)
Increase in accounts payable and accrued liabilities			516				911
Decrease in accrued payroll and related benefits			(9,122	)			(47,728	)
Increase (decrease) in deferred revenues			4,700				(624	)
Net cash provided by (used in) operating activities			32,050				(14,000	)
Cash flows from investing activities:
Purchases of property and equipment, net			(6,193	)			(2,489	)
Net (investment in) surrender of life insurance policies			(618	)			651
Purchases of businesses			(23,881	)			(63,229	)
Sale of business			—				3,692
Net cash used in investing activities			(30,692	)			(61,375	)
Cash flows from financing activities:
Proceeds from exercise of stock options			219				39
Shares redeemed for employee tax withholdings			(2,531	)			(1,299	)
Tax benefit from share-based compensation			200				360
Proceeds from borrowings under credit facility			168,500				232,000
Repayments on credit facility			(171,500	)			(158,000	)
Payments of capital lease obligations			(45	)			(148	)
Net cash (used in) provided by financing activities			(5,157	)			72,952
Effect of exchange rate changes on cash			710				(63	)
Net decrease in cash and cash equivalents			(3,089	)			(2,486	)
Cash and cash equivalents at beginning of the period (*)			6,347				6,459
Cash and cash equivalents at end of the period (**)		$	3,258			$	3,973
Supplemental disclosure of cash flow information:
Non-cash financing activities:
Issuance of common stock in connection with settlement of class action lawsuit		$	13,648			$	—

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

		Three Months Ended								Percent
		June 30,								Increase
Segment and Consolidated Operating Results (in thousands):		2011				2010				(Decrease)
Health and Education Consulting:
Revenues		$	105,860			$	83,782				26.4	%
Operating income		$	37,764			$	28,799				31.1	%
Segment operating income as a percent of segment revenues			35.7	%			34.4	%
Legal Consulting:
Revenues		$	39,972			$	33,951				17.7	%
Operating income		$	9,629			$	9,302				3.5	%
Segment operating income as a percent of segment revenues			24.1	%			27.4	%
Financial Consulting:
Revenues		$	13,203			$	17,921				(26.3	%)
Operating income		$	2,454			$	4,961				(50.5	%)
Segment operating income as a percent of segment revenues			18.6	%			27.7	%
Total Company:
Revenues		$	159,035			$	135,654				17.2	%
Reimbursable expenses			14,470				12,490				15.9	%
Total revenues and reimbursable expenses		$	173,505			$	148,144				17.1	%
Statement of operations reconciliation:
Segment operating income		$	49,847			$	43,062				15.8	%
Charges not allocated at the segment level:
Other selling, general and administrative expenses			22,627				28,662				(21.1	%)
Depreciation and amortization expense			4,394				4,839				(9.2	%)
Total operating income			22,826				9,561				138.7	%
Other expense, net			3,600				4,017				(10.4	%)
Income from continuing operations before income tax expense		$	19,226			$	5,544				246.8	%
Other Operating Data:
Number of full-time billable consultants (at period end) (1):
Health and Education Consulting			977				826				18.3	%
Legal Consulting			115				127				(9.4	%)
Financial Consulting			80				82				(2.4	%)
Total			1,172				1,035				13.2	%
Average number of full-time billable consultants (for the period) (1):
Health and Education Consulting			966				835
Legal Consulting			123				128
Financial Consulting			82				83
Total			1,171				1,046
Full-time billable consultant utilization rate (2):
Health and Education Consulting			73.7	%			74.3	%
Legal Consulting			54.9	%			63.3	%
Financial Consulting			73.2	%			73.9	%
Total			71.9	%			73.0	%

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

		Three Months Ended
		June 30,
Other Operating Data:		2011				2010
Full-time billable consultant average billing rate per hour (3):
Health and Education Consulting		$	269			$	240
Legal Consulting		$	231			$	208
Financial Consulting		$	307			$	303
Total		$	269			$	243
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	97			$	85
Legal Consulting		$	55			$	59
Financial Consulting		$	108			$	125
Total		$	94			$	85
Average number of full-time equivalents (for the period) (4):
Health and Education Consulting			146				157
Legal Consulting			973				676
Financial Consulting			76				108
Total			1,195				941
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	82			$	83
Legal Consulting		$	34			$	39
Financial Consulting		$	57			$	70
Total		$	41			$	50

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

		Six Months Ended								Percent
		June 30,								Increase
Segment and Consolidated Operating Results (in thousands):		2011				2010				(Decrease)
Health and Education Consulting:
Revenues		$	196,891			$	160,696				22.5	%
Operating income		$	64,131			$	49,865				28.6	%
Segment operating income as a percent of segment revenues			32.6	%			31.0	%
Legal Consulting:
Revenues		$	77,289			$	67,056				15.3	%
Operating income		$	19,224			$	16,721				15.0	%
Segment operating income as a percent of segment revenues			24.9	%			24.9	%
Financial Consulting:
Revenues		$	27,840			$	35,644				(21.9	%)
Operating income		$	5,829			$	9,479				(38.5	%)
Segment operating income as a percent of segment revenues			20.9	%			26.6	%
Total Company:
Revenues		$	302,020			$	263,396				14.7	%
Reimbursable expenses			27,572				23,989				14.9	%
Total revenues and reimbursable expenses		$	329,592			$	287,385				14.7	%
Statement of operations reconciliation:
Segment operating income		$	89,184			$	76,065				17.2	%
Charges not allocated at the segment level:
Other selling, general and administrative expenses			46,021				49,600				(7.2	%)
Depreciation and amortization expense			8,699				9,466				(8.1	%)
Total operating income			34,464				16,999				102.7	%
Other expense, net			7,068				6,726				5.1	%
Income from continuing operations before income tax expense		$	27,396			$	10,273				166.7	%
Other Operating Data:
Number of full-time billable consultants (at period end) (1):
Health and Education Consulting			977				826				18.3	%
Legal Consulting			115				127				(9.4	%)
Financial Consulting			80				82				(2.4	%)
Total			1,172				1,035				13.2	%
Average number of full-time billable consultants (for the period) (1):
Health and Education Consulting			949				841
Legal Consulting			120				133
Financial Consulting			84				82
Total			1,153				1,056
Full-time billable consultant utilization rate (2):
Health and Education Consulting			77.3	%			71.2	%
Legal Consulting			55.4	%			59.1	%
Financial Consulting			73.3	%			70.8	%
Total			74.9	%			69.7	%

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

		Six Months Ended
		June 30,
Other Operating Data:		2011				2010
Full-time billable consultant average billing rate per hour (3):
Health and Education Consulting		$	241			$	238
Legal Consulting		$	233			$	200
Financial Consulting		$	317			$	300
Total		$	246			$	240
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting		$	181			$	162
Legal Consulting		$	110			$	104
Financial Consulting		$	230			$	241
Total		$	177			$	160
Average number of full-time equivalents (for the period) (4):
Health and Education Consulting			148				149
Legal Consulting			919				671
Financial Consulting			71				116
Total			1,138				936
Revenue per full-time equivalents (in thousands):
Health and Education Consulting		$	169			$	167
Legal Consulting		$	70			$	79
Financial Consulting		$	120			$	137
Total		$	86			$	100

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ⁽⁵⁾
(In thousands)
(Unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
		2011				2010				2011				2010
Revenues		$	159,035			$	135,654			$	302,020			$	263,396
Net income from continuing operations		$	9,466			$	3,514			$	13,427			$	6,195
Add back:
Income tax expense			9,760				2,030				13,969				4,078
Interest and other expenses			3,600				4,017				7,068				6,726
Depreciation and amortization			5,763				5,726				11,501				11,239
Earnings before interest, taxes, depreciation and amortization (EBITDA) (5)			28,589				15,287				45,965				28,238
Add back:
Restatement related expenses			1,785				2,428				3,025				3,187
Restructuring charges			461				1,165				985				1,165
Litigation settlement			508				4,764				1,096				4,764
Adjusted EBITDA (5)		$	31,343			$	23,644			$	51,071			$	37,354
Adjusted EBITDA as a percentage of revenues (5)			19.7	%			17.4	%			16.9	%			14.2	%

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS ⁽⁵⁾
(In thousands)
(Unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
		2011				2010				2011				2010
Net income from continuing operations		$	9,466			$	3,514			$	13,427			$	6,195
Weighted average shares — diluted			21,476				20,756				21,316				20,627
Diluted earnings per share from continuing operations		$	0.44			$	0.17			$	0.63			$	0.30
Add back:
Amortization of intangible assets			2,125				1,879				4,401				3,757
Restatement related expenses			1,785				2,428				3,025				3,187
Restructuring charges			461				1,165				985				1,165
Litigation settlement			508				4,764				1,096				4,764
Tax effect			(1,952	)			(4,094	)			(3,803	)			(5,149	)
Total adjustments, net of tax			2,927				6,142				5,704				7,724
Adjusted net income from continuing operations (5)		$	12,393			$	9,656			$	19,131			$	13,919
Adjusted diluted earnings per share from continuing operations (5)		$	0.58			$	0.47			$	0.90			$	0.67

HURON CONSULTING GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES FOR FULL YEAR 2011 OUTLOOK

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS ⁽⁶⁾ TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ^{(6) (8)}
(In millions)
(Unaudited)

		Year Ending
		December 31, 2011
		Guidance Range
		Low				High
Projected revenues — GAAP		$	600.0			$	620.0
Projected net income from continuing operations — GAAP (6)		$	34.5			$	37.5
Add back:
Income tax expense			28.0				31.0
Interest and other expenses			12.4				12.4
Depreciation and amortization			22.6				22.6
Projected earnings before interest, taxes, depreciation and amortization (EBITDA) (6) (8)			97.5				103.5
Add back:
Restructuring and restatement related expenses (7)			6.9				6.9
Litigation settlement			1.1				1.1
Projected adjusted EBITDA (6) (8)		$	105.5			$	111.5
Projected adjusted EBITDA as a percentage of projected revenues (8)			17.6	%			18.0	%

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS ⁽⁶⁾
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS ^{(6) (8)}
(In millions)
(Unaudited)

		Year Ending
		December 31, 2011
		Guidance Range
		Low				High
Projected net income from continuing operations — GAAP (6)		$	34.5			$	37.5
Projected diluted earnings per share from continuing operations — GAAP (6)		$	1.60			$	1.75
Add back:
Amortization of intangible assets			8.4				8.4
Restructuring and restatement related expenses (7)			6.9				6.9
Litigation settlement			1.1				1.1
Tax effect			(6.6	)			(6.6	)
Total adjustments, net of tax			9.8				9.8
Projected adjusted net income from continuing operations (6) (8).		$	44.3			$	47.3
Projected adjusted diluted earnings per share from continuing operations (6) (8)		$	2.05			$	2.20