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
February 21, 2013
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 of incorporation) |
(Commission File Number) |
(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:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | 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, 2013 Huron Consulting Group Inc. (the “Company”) posted supplementary financial information on its website to reflect the quarterly and annual 2012 and 2011 segment and consolidated operating results and other operating data including the effect of the reorganization of the Company’s internal financial reporting structure which took place in the first quarter of 2013. Under the new structure, the Company will begin reporting information as five operating segments: Huron Healthcare; Huron Education and Life Sciences; Huron Legal; Huron Financial; and an all other category.
Beginning in 2013, the current Health and Education Consulting segment will become two separate segments: Huron Healthcare and Huron Education and Life Sciences. These practices continue to share a significant number of academic medical center clients and will continue to closely collaborate in the market. The Legal Consulting segment will be referred to as Huron Legal and the Financial Consulting segment will be referred to as Huron Financial. The structure of the Legal Consulting and Financial Consulting segments remains unchanged. In addition, certain immaterial practices which were historically part of our Health and Education Consulting segment will be combined and disclosed in an all other category.
The revised presentation does not have any effect on the Company’s previously reported consolidated statements of earnings and other comprehensive income, balance sheets, or cash flows.
A copy of the supplementary financial information is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02 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 7.01. | Regulation FD Disclosure. |
The information required by this Item 7.01 is set forth in Item 2.02 above, which is incorporated herein by reference.
| 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: | February 21, 2013 | /s/ C. Mark Hussey | ||||
| C. Mark Hussey | ||||||
| Executive Vice President, Chief | ||||||
| Financial Officer and Treasurer | ||||||
Exhibit 99.1
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, 2012 |
June 30, 2012 |
September 30, 2012 |
December 31, 2012 |
December 31, 2012 |
|||||||||||||||
| Huron Healthcare: |
||||||||||||||||||||
| Revenues |
$ | 63,465 | $ | 62,707 | $ | 74,999 | $ | 87,591 | $ | 288,762 | ||||||||||
| Operating income |
$ | 15,838 | $ | 20,072 | $ | 33,868 | $ | 41,086 | $ | 110,864 | ||||||||||
| Segment operating income as a percent of segment revenues |
25.0 | % | 32.0 | % | 45.2 | % | 46.9 | % | 38.4 | % | ||||||||||
| Huron Education and Life Sciences: |
||||||||||||||||||||
| Revenues |
$ | 27,676 | $ | 31,834 | $ | 33,863 | $ | 36,054 | $ | 129,427 | ||||||||||
| Operating income |
$ | 6,458 | $ | 9,187 | $ | 12,406 | $ | 10,232 | $ | 38,283 | ||||||||||
| Segment operating income as a percent of segment revenues |
23.3 | % | 28.9 | % | 36.6 | % | 28.4 | % | 29.6 | % | ||||||||||
| Huron Legal: |
||||||||||||||||||||
| Revenues |
$ | 41,383 | $ | 45,907 | $ | 46,153 | $ | 51,475 | $ | 184,918 | ||||||||||
| Operating income |
$ | 9,511 | $ | 12,499 | $ | 11,479 | $ | 10,828 | $ | 44,317 | ||||||||||
| Segment operating income as a percent of segment revenues |
23.0 | % | 27.2 | % | 24.9 | % | 21.0 | % | 24.0 | % | ||||||||||
| Huron Financial: |
||||||||||||||||||||
| Revenues |
$ | 5,849 | $ | 4,283 | $ | 6,689 | $ | 5,198 | $ | 22,019 | ||||||||||
| Operating income (loss) |
$ | 233 | $ | (337 | ) | $ | 1,763 | $ | 229 | $ | 1,888 | |||||||||
| Segment operating income (loss) as a percent of segment revenues |
4.0 | % | (7.9 | %) | 26.4 | % | 4.4 | % | 8.6 | % | ||||||||||
| All Other: |
||||||||||||||||||||
| Revenues |
$ | 264 | $ | (60 | ) | $ | 184 | $ | 447 | $ | 835 | |||||||||
| Operating loss |
$ | (799 | ) | $ | (744 | ) | $ | (428 | ) | $ | (314 | ) | $ | (2,285 | ) | |||||
| Segment operating loss as a percent of segment revenues |
N/M | N/M | N/M | N/M | N/M | |||||||||||||||
| Total Company: |
||||||||||||||||||||
| Revenues |
$ | 138,637 | $ | 144,671 | $ | 161,888 | $ | 180,765 | $ | 625,961 | ||||||||||
| Reimbursable expenses |
13,796 | 14,554 | 13,470 | 13,944 | 55,764 | |||||||||||||||
|
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|||||||||||
| Total revenues and reimbursable expenses |
$ | 152,433 | $ | 159,225 | $ | 175,358 | $ | 194,709 | $ | 681,725 | ||||||||||
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| Statement of earnings reconciliation: |
||||||||||||||||||||
| Segment operating income |
$ | 31,241 | $ | 40,677 | $ | 59,088 | $ | 62,061 | $ | 193,067 | ||||||||||
| Charges not allocated at the segment level: |
||||||||||||||||||||
| Other selling, general and administrative expenses |
22,951 | 21,923 | 20,562 | 22,576 | 88,012 | |||||||||||||||
| Depreciation and amortization expense |
4,653 | 4,053 | 4,879 | 4,944 | 18,529 | |||||||||||||||
| Goodwill impairment charge (1) |
— | — | 13,083 | — | 13,083 | |||||||||||||||
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|
|||||||||||
| Total operating income |
3,637 | 14,701 | 20,564 | 34,541 | 73,443 | |||||||||||||||
| Other expense, net |
1,533 | 2,178 | 2,176 | 1,908 | 7,795 | |||||||||||||||
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| Income from continuing operations before income tax expense |
$ | 2,104 | $ | 12,523 | $ | 18,388 | $ | 32,633 | $ | 65,648 | ||||||||||
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| Other Operating Data (excluding All Other): |
||||||||||||||||||||
| Number of full-time billable consultants (at period end) (2): |
||||||||||||||||||||
| Huron Healthcare |
755 | 757 | 778 | 801 | 801 | |||||||||||||||
| Huron Education and Life Sciences |
328 | 373 | 406 | 413 | 413 | |||||||||||||||
| Huron Legal |
118 | 129 | 134 | 139 | 139 | |||||||||||||||
| Huron Financial |
67 | 69 | 65 | 62 | 62 | |||||||||||||||
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| Total |
1,268 | 1,328 | 1,383 | 1,415 | 1,415 | |||||||||||||||
| Average number of full-time billable consultants (for the period) (2): |
||||||||||||||||||||
| Huron Healthcare |
738 | 753 | 768 | 801 | 764 | |||||||||||||||
| Huron Education and Life Sciences |
322 | 348 | 387 | 413 | 368 | |||||||||||||||
| Huron Legal |
116 | 123 | 128 | 136 | 126 | |||||||||||||||
| Huron Financial |
68 | 69 | 67 | 64 | 67 | |||||||||||||||
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| Total |
1,244 | 1,293 | 1,350 | 1,414 | 1,325 | |||||||||||||||
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||||||||
| Other Operating Data (excluding All Other): |
March 31, 2012 |
June 30, 2012 |
September 30, 2012 |
December 31, 2012 |
December 31, 2012 |
|||||||||||||||
| Full-time billable consultant utilization rate (3): |
||||||||||||||||||||
| Huron Healthcare |
83.7 | % | 78.8 | % | 77.4 | % | 81.2 | % | 80.3 | % | ||||||||||
| Huron Education and Life Sciences |
70.8 | % | 73.2 | % | 73.9 | % | 74.3 | % | 73.1 | % | ||||||||||
| Huron Legal |
70.7 | % | 68.7 | % | 66.9 | % | 63.7 | % | 67.4 | % | ||||||||||
| Huron Financial |
59.6 | % | 49.3 | % | 56.9 | % | 59.9 | % | 56.3 | % | ||||||||||
| Total |
77.8 | % | 74.8 | % | 74.4 | % | 76.6 | % | 75.9 | % | ||||||||||
| Full-time billable consultant average billing rate per hour (4): |
||||||||||||||||||||
| Huron Healthcare |
$ | 195 | $ | 203 | $ | 251 | $ | 271 | $ | 230 | ||||||||||
| Huron Education and Life Sciences |
$ | 212 | $ | 212 | $ | 214 | $ | 210 | $ | 212 | ||||||||||
| Huron Legal |
$ | 234 | $ | 239 | $ | 265 | $ | 220 | $ | 240 | ||||||||||
| Huron Financial |
$ | 275 | $ | 275 | $ | 368 | $ | 291 | $ | 302 | ||||||||||
| Total |
$ | 206 | $ | 211 | $ | 246 | $ | 251 | $ | 229 | ||||||||||
| Revenue per full-time billable consultant (in thousands): |
||||||||||||||||||||
| Huron Healthcare |
$ | 76 | $ | 73 | $ | 90 | $ | 100 | $ | 339 | ||||||||||
| Huron Education and Life Sciences |
$ | 73 | $ | 77 | $ | 74 | $ | 71 | $ | 295 | ||||||||||
| Huron Legal |
$ | 80 | $ | 78 | $ | 81 | $ | 60 | $ | 299 | ||||||||||
| Huron Financial |
$ | 81 | $ | 61 | $ | 96 | $ | 80 | $ | 318 | ||||||||||
| Total |
$ | 76 | $ | 74 | $ | 85 | $ | 87 | $ | 322 | ||||||||||
| Average number of full-time equivalents (for the period) (5): |
||||||||||||||||||||
| Huron Healthcare |
112 | 112 | 111 | 110 | 111 | |||||||||||||||
| Huron Education and Life Sciences |
28 | 30 | 33 | 43 | 33 | |||||||||||||||
| Huron Legal |
897 | 954 | 1,082 | 1,298 | 1,054 | |||||||||||||||
| Huron Financial |
2 | 1 | 3 | 1 | 2 | |||||||||||||||
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| Total |
1,039 | 1,097 | 1,229 | 1,452 | 1,200 | |||||||||||||||
| Revenue per full-time equivalents (in thousands): |
||||||||||||||||||||
| Huron Healthcare |
$ | 67 | $ | 69 | $ | 56 | $ | 67 | $ | 259 | ||||||||||
| Huron Education and Life Sciences |
$ | 147 | $ | 171 | $ | 165 | $ | 160 | $ | 643 | ||||||||||
| Huron Legal |
$ | 36 | $ | 38 | $ | 33 | $ | 33 | $ | 140 | ||||||||||
| Huron Financial (6) |
$ | 187 | $ | 41 | $ | 77 | $ | 52 | $ | 350 | ||||||||||
| Total |
$ | 42 | $ | 45 | $ | 39 | $ | 39 | $ | 165 | ||||||||||
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, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
December 31, 2011 |
|||||||||||||||
| Huron Healthcare: |
||||||||||||||||||||
| Revenues |
$ | 59,213 | $ | 73,589 | $ | 72,518 | $ | 75,064 | $ | 280,384 | ||||||||||
| Operating income |
$ | 18,790 | $ | 29,967 | $ | 27,845 | $ | 29,393 | $ | 105,995 | ||||||||||
| Segment operating income as a percent of segment revenues |
31.7 | % | 40.7 | % | 38.4 | % | 39.2 | % | 37.8 | % | ||||||||||
| Huron Education and Life Sciences: |
||||||||||||||||||||
| Revenues |
$ | 29,254 | $ | 30,106 | $ | 28,241 | $ | 27,727 | $ | 115,328 | ||||||||||
| Operating income |
$ | 8,825 | $ | 9,142 | $ | 8,074 | $ | 7,010 | $ | 33,051 | ||||||||||
| Segment operating income as a percent of segment revenues |
30.2 | % | 30.4 | % | 28.6 | % | 25.3 | % | 28.7 | % | ||||||||||
| Huron Legal: |
||||||||||||||||||||
| Revenues |
$ | 37,317 | $ | 39,972 | $ | 43,501 | $ | 51,565 | $ | 172,355 | ||||||||||
| Operating income |
$ | 9,595 | $ | 9,629 | $ | 12,779 | $ | 11,210 | $ | 43,213 | ||||||||||
| Segment operating income as a percent of segment revenues |
25.7 | % | 24.1 | % | 29.4 | % | 21.7 | % | 25.1 | % | ||||||||||
| Huron Financial: |
||||||||||||||||||||
| Revenues |
$ | 9,646 | $ | 8,998 | $ | 8,588 | $ | 7,679 | $ | 34,911 | ||||||||||
| Operating income |
$ | 2,970 | $ | 2,768 | $ | 2,824 | $ | 1,366 | $ | 9,928 | ||||||||||
| Segment operating income as a percent of segment revenues |
30.8 | % | 30.8 | % | 32.9 | % | 17.8 | % | 28.4 | % | ||||||||||
| All Other : |
||||||||||||||||||||
| Revenues |
$ | 1,191 | $ | 405 | $ | 731 | $ | 1,009 | $ | 3,336 | ||||||||||
| Operating loss |
$ | (1,724 | ) | $ | (2,246 | ) | $ | (687 | ) | $ | (1,565 | ) | $ | (6,222 | ) | |||||
| Segment operating loss as a percent of segment revenues |
N/M | N/M | N/M | N/M | N/M | |||||||||||||||
| Total Company: |
||||||||||||||||||||
| Revenues |
$ | 136,621 | $ | 153,070 | $ | 153,579 | $ | 163,044 | $ | 606,314 | ||||||||||
| Reimbursable expenses |
11,924 | 13,216 | 13,140 | 13,300 | 51,580 | |||||||||||||||
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| Total revenues and reimbursable expenses |
$ | 148,545 | $ | 166,286 | $ | 166,719 | $ | 176,344 | $ | 657,894 | ||||||||||
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| Statement of earnings reconciliation: |
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| Segment operating income |
$ | 38,456 | $ | 49,260 | $ | 50,835 | $ | 47,414 | $ | 185,965 | ||||||||||
| Charges not allocated at the segment level: |
||||||||||||||||||||
| Other selling, general and administrative expenses |
23,395 | 22,625 | 20,151 | 23,850 | 90,021 | |||||||||||||||
| Depreciation and amortization expense |
4,246 | 4,336 | 5,007 | 4,935 | 18,524 | |||||||||||||||
| Goodwill impairment charge (1) |
— | — | 21,973 | — | 21,973 | |||||||||||||||
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| Total operating income |
10,815 | 22,299 | 3,704 | 18,629 | 55,447 | |||||||||||||||
| Other expense, net |
3,468 | 3,600 | 3,333 | 1,936 | 12,337 | |||||||||||||||
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| Income from continuing operations before income tax expense |
$ | 7,347 | $ | 18,699 | $ | 371 | $ | 16,693 | $ | 43,110 | ||||||||||
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| Other Operating Data (excluding All Other): |
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| Number of full-time billable consultants (at period end) (2): |
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| Huron Healthcare |
631 | 651 | 707 | 714 | 714 | |||||||||||||||
| Huron Education and Life Sciences |
282 | 282 | 304 | 313 | 313 | |||||||||||||||
| Huron Legal |
131 | 115 | 107 | 113 | 113 | |||||||||||||||
| Huron Financial |
75 | 75 | 73 | 73 | 73 | |||||||||||||||
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| Total |
1,119 | 1,123 | 1,191 | 1,213 | 1,213 | |||||||||||||||
| Average number of full-time billable consultants (for the period) (2): |
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| Huron Healthcare |
607 | 637 | 679 | 716 | 657 | |||||||||||||||
| Huron Education and Life Sciences |
281 | 283 | 295 | 309 | 292 | |||||||||||||||
| Huron Legal |
121 | 123 | 112 | 111 | 117 | |||||||||||||||
| Huron Financial |
77 | 75 | 74 | 74 | 75 | |||||||||||||||
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| Total |
1,086 | 1,118 | 1,160 | 1,210 | 1,141 | |||||||||||||||
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||||||||
| Other Operating Data (excluding All Other): |
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
December 31, 2011 |
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| Full-time billable consultant utilization rate (3): |
||||||||||||||||||||
| Huron Healthcare |
87.1 | % | 74.9 | % | 81.1 | % | 79.8 | % | 80.6 | % | ||||||||||
| Huron Education and Life Sciences |
73.9 | % | 74.9 | % | 73.3 | % | 68.9 | % | 72.7 | % | ||||||||||
| Huron Legal |
55.9 | % | 54.9 | % | 64.1 | % | 68.1 | % | 60.5 | % | ||||||||||
| Huron Financial |
74.9 | % | 76.3 | % | 71.5 | % | 66.7 | % | 72.5 | % | ||||||||||
| Total |
79.5 | % | 73.0 | % | 76.9 | % | 75.1 | % | 76.1 | % | ||||||||||
| Full-time billable consultant average billing rate per hour (4): |
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| Huron Healthcare |
$ | 214 | $ | 292 | $ | 265 | $ | 272 | $ | 260 | ||||||||||
| Huron Education and Life Sciences |
$ | 219 | $ | 224 | $ | 218 | $ | 220 | $ | 220 | ||||||||||
| Huron Legal |
$ | 236 | $ | 231 | $ | 236 | $ | 248 | $ | 238 | ||||||||||
| Huron Financial |
$ | 341 | $ | 315 | $ | 327 | $ | 334 | $ | 329 | ||||||||||
| Total |
$ | 225 | $ | 271 | $ | 254 | $ | 260 | $ | 253 | ||||||||||
| Revenue per full-time billable consultant (in thousands): |
||||||||||||||||||||
| Huron Healthcare |
$ | 88 | $ | 107 | $ | 99 | $ | 95 | $ | 389 | ||||||||||
| Huron Education and Life Sciences |
$ | 79 | $ | 83 | $ | 78 | $ | 72 | $ | 312 | ||||||||||
| Huron Legal |
$ | 53 | $ | 55 | $ | 66 | $ | 73 | $ | 247 | ||||||||||
| Huron Financial |
$ | 124 | $ | 115 | $ | 111 | $ | 98 | $ | 448 | ||||||||||
| Total |
$ | 84 | $ | 96 | $ | 91 | $ | 88 | $ | 359 | ||||||||||
| Average number of full-time equivalents (for the period) (5): |
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| Huron Healthcare |
92 | 94 | 102 | 120 | 103 | |||||||||||||||
| Huron Education and Life Sciences |
55 | 50 | 43 | 39 | 45 | |||||||||||||||
| Huron Legal |
863 | 973 | 1,032 | 1,192 | 1,015 | |||||||||||||||
| Huron Financial |
1 | 3 | 2 | 2 | 2 | |||||||||||||||
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| Total |
1,011 | 1,120 | 1,179 | 1,353 | 1,165 | |||||||||||||||
| Revenue per full-time equivalents (in thousands): |
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| Huron Healthcare |
$ | 63 | $ | 55 | $ | 53 | $ | 58 | $ | 229 | ||||||||||
| Huron Education and Life Sciences |
$ | 128 | $ | 133 | $ | 122 | $ | 142 | $ | 525 | ||||||||||
| Huron Legal |
$ | 36 | $ | 34 | $ | 35 | $ | 36 | $ | 141 | ||||||||||
| Huron Financial |
$ | 111 | $ | 134 | $ | 205 | $ | 181 | $ | 631 | ||||||||||
| Total |
$ | 43 | $ | 41 | $ | 40 | $ | 41 | $ | 165 | ||||||||||
| (1) | The goodwill impairment charge is not allocated at the segment level because the underlying goodwill asset is reflective of our corporate investments in the segments. We do not include the impact of goodwill impairment charges in our evaluation of segment performance. |
| (2) | Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked. |
| (3) | Utilization rate for our full-time billable consultants is calculated by dividing the number of hours all our full-time billable consultants worked on client assignments during a period by the total available working hours for all of these consultants during the same period, assuming a forty-hour work week, less paid holidays and vacation days. |
| (4) | Average billing rate per hour for our full-time billable consultants is calculated by dividing revenues for a period by the number of hours worked on client assignments during the same period. |
| (5) | Consists of project consultants and contractors who work variable schedules as needed by our clients and generate revenues primarily based on number of hours worked and units produced, such as pages reviewed and data processed. Also includes full-time employees who provide software support and maintenance services to our clients. |
| (6) | Individual quarters do not sum to the respective full year amount due to rounding. |
N/M – Not Meaningful