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
May 2, 2014
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:
| ¨ | 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 May 2, 2014 Huron Consulting Group Inc. (the “Company”) posted supplementary financial information on its website to reflect the quarterly and annual 2013 segment and consolidated operating results and other operating data including the effect of the first quarter 2014 reorganization of our Enterprise Performance Management (“EPM”) practice (formerly referred to as Blue Stone International, a business which we acquired during the fourth quarter of 2013) from the Huron Education and Life Sciences segment to the Huron Business Advisory segment.
The revised presentation does not have any effect on the Company’s previously reported consolidated statements of earnings and other comprehensive income, balance sheets, stockholders’ equity, 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: May 2, 2014 | /s/ C. Mark Hussey | |||||
| C. Mark Hussey | ||||||
| Executive Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer | ||||||
Exhibit 99.1
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Huron Consulting Group Inc. (the “Company”) is posting this supplementary financial information on its website to reflect the quarterly and annual 2013 segment and consolidated operating results and other operating data including the effect of the first quarter 2014 reorganization of our Enterprise Performance Management (“EPM”) practice (formerly referred to as Blue Stone International, a business which we acquired during the fourth quarter of 2013) from the Huron Education and Life Sciences segment to the Huron Business Advisory segment.
The revised presentation does not have any effect on the Company’s previously reported consolidated statements of earnings and other comprehensive income, balance sheets, stockholders’ equity, or cash flows.
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, 2013 |
June 30, 2013 |
September 30, 2013 |
December 31, 2013 |
December 31, 2013 |
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| Huron Healthcare: |
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| Revenues |
$ | 78,745 | $ | 78,946 | $ | 86,957 | $ | 114,118 | $ | 358,766 | ||||||||||
| Operating income |
$ | 31,161 | $ | 29,507 | $ | 30,772 | $ | 50,430 | $ | 141,870 | ||||||||||
| Segment operating income as a percentage of segment revenues |
39.6 | % | 37.4 | % | 35.4 | % | 44.2 | % | 39.5 | % | ||||||||||
| Huron Legal: |
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| Revenues |
$ | 40,944 | $ | 45,089 | $ | 45,263 | $ | 51,098 | $ | 182,394 | ||||||||||
| Operating income |
$ | 2,938 | $ | 10,793 | $ | 15,138 | $ | 13,095 | $ | 41,964 | ||||||||||
| Segment operating income as a percentage of segment revenues |
7.2 | % | 23.9 | % | 33.4 | % | 25.6 | % | 23.0 | % | ||||||||||
| Huron Education and Life Sciences: |
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| Revenues |
$ | 35,726 | $ | 37,134 | $ | 34,806 | $ | 35,944 | $ | 143,610 | ||||||||||
| Operating income |
$ | 9,352 | $ | 11,547 | $ | 7,773 | $ | 7,293 | $ | 35,965 | ||||||||||
| Segment operating income as a percentage of segment revenues |
26.2 | % | 31.1 | % | 22.3 | % | 20.3 | % | 25.0 | % | ||||||||||
| Huron Business Advisory: |
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| Revenues |
$ | 8,582 | $ | 9,263 | $ | 7,223 | $ | 9,600 | $ | 34,668 | ||||||||||
| Operating income (loss) |
$ | 3,379 | $ | 3,952 | $ | 664 | $ | (783 | ) | $ | 7,212 | |||||||||
| Segment operating income (loss) as a percentage of segment revenues |
39.4 | % | 42.7 | % | 9.2 | % | (8.2 | )% | 20.8 | % | ||||||||||
| All Other: |
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| Revenues |
$ | 39 | $ | (25 | ) | $ | 486 | $ | 584 | $ | 1,084 | |||||||||
| Operating loss |
$ | (172 | ) | $ | (244 | ) | $ | (285 | ) | $ | (555 | ) | $ | (1,256 | ) | |||||
| Segment operating loss as a percentage of segment revenues |
N/M | N/M | N/M | N/M | N/M | |||||||||||||||
| Total Company: |
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| Revenues |
$ | 164,036 | $ | 170,407 | $ | 174,735 | $ | 211,344 | $ | 720,522 | ||||||||||
| Reimbursable expenses |
15,336 | 18,123 | 17,542 | 16,266 | 67,267 | |||||||||||||||
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| Total revenues and reimbursable expenses |
$ | 179,372 | $ | 188,530 | $ | 192,277 | $ | 227,610 | $ | 787,789 | ||||||||||
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| Statement of earnings reconciliation: |
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| Segment operating income |
$ | 46,658 | $ | 55,555 | $ | 54,062 | $ | 69,480 | $ | 225,755 | ||||||||||
| Items not allocated at the segment level: |
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| Other operating expenses and gains |
20,536 | 20,129 | 17,975 | 26,700 | 85,340 | |||||||||||||||
| Depreciation and amortization expense |
4,779 | 4,877 | 4,968 | 5,886 | 20,510 | |||||||||||||||
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| Total operating income |
21,343 | 30,549 | 31,119 | 36,894 | 119,905 | |||||||||||||||
| Other expense, net |
1,850 | 1,858 | 1,427 | 1,131 | 6,266 | |||||||||||||||
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| Income from continuing operations before income tax expense |
$ | 19,493 | $ | 28,691 | $ | 29,692 | $ | 35,763 | $ | 113,639 | ||||||||||
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| Other Operating Data (excluding All Other): |
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| Number of full-time billable consultants (at period end) (1): |
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| Huron Healthcare |
870 | 916 | 942 | 966 | 966 | |||||||||||||||
| Huron Legal |
151 | 145 | 143 | 141 | 141 | |||||||||||||||
| Huron Education and Life Sciences |
436 | 434 | 425 | 413 | 413 | |||||||||||||||
| Huron Business Advisory |
62 | 63 | 62 | 155 | 155 | |||||||||||||||
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| Total |
1,519 | 1,558 | 1,572 | 1,675 | 1,675 | |||||||||||||||
| Average number of full-time billable consultants (for the period) (1): |
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| Huron Healthcare |
863 | 883 | 926 | 954 | 907 | |||||||||||||||
| Huron Legal |
146 | 149 | 146 | 142 | 146 | |||||||||||||||
| Huron Education and Life Sciences |
430 | 438 | 425 | 417 | 427 | |||||||||||||||
| Huron Business Advisory |
62 | 62 | 62 | 155 | 85 | |||||||||||||||
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| Total |
1,501 | 1,532 | 1,559 | 1,668 | 1,565 | |||||||||||||||
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, 2013 |
June 30, 2013 |
September 30, 2013 |
December 31, 2013 |
December 31, 2013 |
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| Full-time billable consultant utilization rate (2): |
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| Huron Healthcare |
85.6 | % | 84.7 | % | 80.2 | % | 81.5 | % | 83.0 | % | ||||||||||
| Huron Legal (5) |
52.0 | % | 60.0 | % | 62.3 | % | 69.6 | % | 60.8 | % | ||||||||||
| Huron Education and Life Sciences |
70.0 | % | 65.8 | % | 64.4 | % | 66.0 | % | 66.6 | % | ||||||||||
| Huron Business Advisory (6) |
84.7 | % | 82.9 | % | 73.6 | % | 63.3 | % | 72.7 | % | ||||||||||
| Total |
77.9 | % | 76.9 | % | 73.9 | % | 75.0 | % | 75.9 | % | ||||||||||
| Full-time billable consultant average billing rate per hour (3): |
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| Huron Healthcare (5) |
$ | 205 | $ | 199 | $ | 230 | $ | 297 | $ | 233 | ||||||||||
| Huron Legal |
$ | 222 | $ | 221 | $ | 271 | $ | 271 | $ | 248 | ||||||||||
| Huron Education and Life Sciences |
$ | 206 | $ | 223 | $ | 215 | $ | 222 | $ | 216 | ||||||||||
| Huron Business Advisory (6) |
$ | 331 | $ | 348 | $ | 331 | $ | 204 | $ | 285 | ||||||||||
| Total |
$ | 212 | $ | 213 | $ | 234 | $ | 272 | $ | 233 | ||||||||||
| Revenue per full-time billable consultant (in thousands): |
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| Huron Healthcare (5) |
$ | 85 | $ | 82 | $ | 87 | $ | 114 | $ | 369 | ||||||||||
| Huron Legal |
$ | 53 | $ | 60 | $ | 77 | $ | 82 | $ | 272 | ||||||||||
| Huron Education and Life Sciences |
$ | 70 | $ | 70 | $ | 64 | $ | 68 | $ | 272 | ||||||||||
| Huron Business Advisory (6) |
$ | 135 | $ | 140 | $ | 112 | $ | 60 | $ | 392 | ||||||||||
| Total(5) |
$ | 79 | $ | 79 | $ | 81 | $ | 95 | $ | 335 | ||||||||||
| Average number of full-time equivalents (for the period) (4): |
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| Huron Healthcare |
56 | 54 | 53 | 51 | 53 | |||||||||||||||
| Huron Legal |
1,089 | 982 | 963 | 1,216 | 1,062 | |||||||||||||||
| Huron Education and Life Sciences |
39 | 48 | 47 | 43 | 44 | |||||||||||||||
| Huron Business Advisory |
2 | 3 | 3 | 2 | 2 | |||||||||||||||
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| Total (5) |
1,186 | 1,087 | 1,066 | 1,312 | 1,161 | |||||||||||||||
| Revenue per full-time equivalent (in thousands): |
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| Huron Healthcare (5) |
$ | 104 | $ | 116 | $ | 123 | $ | 107 | $ | 449 | ||||||||||
| Huron Legal |
$ | 31 | $ | 37 | $ | 35 | $ | 32 | $ | 135 | ||||||||||
| Huron Education and Life Sciences |
$ | 151 | $ | 132 | $ | 159 | $ | 178 | $ | 620 | ||||||||||
| Huron Business Advisory |
$ | 149 | $ | 173 | $ | 106 | $ | 102 | $ | 530 | ||||||||||
| Total |
$ | 38 | $ | 45 | $ | 45 | $ | 40 | $ | 168 | ||||||||||
| (1) | Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked. |
| (2) | 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. |
| (3) | 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. |
| (4) | Consists of consultants who work variable schedules as needed by our clients, as well as contract reviewers and other professionals who 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. |
| (5) | Individual quarters do not sum or average, as appropriate, to the respective full year amount due to rounding. |
| (6) | Full year operating metrics are calculated using the appropriate full year data. As the results of the EPM practice, which we acquired on October 1, 2013, are only included in our fourth quarter results, full year operating metrics cannot be calculated using a simple average or summation of the four individual quarters presented. |
N/M – Not Meaningful