Delaware | 000-50976 | 01-0666114 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification Number) |
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)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
Emerging growth company | o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Exhibit Number | Description | |
99.1 | Supplementary financial information |
Huron Consulting Group Inc. | |||
(Registrant) | |||
Date: | July 27, 2017 | /s/ John D. Kelly | |
John D. Kelly | |||
Executive Vice President, Chief Financial Officer and Treasurer |
Segment and Consolidated Operating Results (in thousands): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Healthcare: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 446,887 | $ | 114,018 | $ | 106,088 | $ | 103,425 | $ | 101,381 | $ | 424,912 | $ | 98,452 | $ | 83,227 | $ | 181,679 | ||||||||||||||||||
Operating income | $ | 169,560 | $ | 39,006 | $ | 41,399 | $ | 38,824 | $ | 28,674 | $ | 147,903 | $ | 34,150 | $ | 23,652 | $ | 57,802 | ||||||||||||||||||
Segment operating income as a percentage of segment revenues | 37.9 | % | 34.2 | % | 39.0 | % | 37.5 | % | 28.3 | % | 34.8 | % | 34.7 | % | 28.4 | % | 31.8 | % | ||||||||||||||||||
Education: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 134,009 | $ | 35,873 | $ | 37,322 | $ | 38,621 | $ | 38,001 | $ | 149,817 | $ | 42,281 | $ | 43,926 | $ | 86,207 | ||||||||||||||||||
Operating income | $ | 32,246 | $ | 9,096 | $ | 11,482 | $ | 10,896 | $ | 6,836 | $ | 38,310 | $ | 11,515 | $ | 12,495 | $ | 24,010 | ||||||||||||||||||
Segment operating income as a percentage of segment revenues | 24.1 | % | 25.4 | % | 30.8 | % | 28.2 | % | 18.0 | % | 25.6 | % | 27.2 | % | 28.4 | % | 27.9 | % | ||||||||||||||||||
Business Advisory: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 116,892 | $ | 30,598 | $ | 40,849 | $ | 41,354 | $ | 38,742 | $ | 151,543 | $ | 48,116 | $ | 54,265 | $ | 102,381 | ||||||||||||||||||
Operating income | $ | 31,233 | $ | 3,811 | $ | 10,856 | $ | 8,608 | $ | 6,107 | $ | 29,382 | $ | 9,866 | $ | 12,192 | $ | 22,058 | ||||||||||||||||||
Segment operating income as a percentage of segment revenues | 26.7 | % | 12.5 | % | 26.6 | % | 20.8 | % | 15.8 | % | 19.4 | % | 20.5 | % | 22.5 | % | 21.5 | % | ||||||||||||||||||
All Other: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,222 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Operating income | $ | (1,718 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Segment operating income as a percentage of segment revenues | N/M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Total Company: | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 699,010 | $ | 180,489 | $ | 184,259 | $ | 183,400 | $ | 178,124 | $ | 726,272 | $ | 188,849 | $ | 181,418 | $ | 370,267 | ||||||||||||||||||
Reimbursable expenses | 70,013 | 16,561 | 18,982 | 19,093 | 17,076 | 71,712 | 16,950 | 20,930 | 37,880 | |||||||||||||||||||||||||||
Total revenues and reimbursable expenses | $ | 769,023 | $ | 197,050 | $ | 203,241 | $ | 202,493 | $ | 195,200 | $ | 797,984 | $ | 205,799 | $ | 202,348 | $ | 408,147 | ||||||||||||||||||
Segment operating income | $ | 231,321 | $ | 51,913 | $ | 63,737 | $ | 58,328 | $ | 41,617 | $ | 215,595 | $ | 55,531 | $ | 48,339 | $ | 103,870 | ||||||||||||||||||
Items not allocated at the segment level: | ||||||||||||||||||||||||||||||||||||
Other operating expenses | 112,164 | 30,123 | 27,970 | 26,502 | 27,257 | 111,852 | 32,463 | 30,732 | 63,195 |
Segment and Consolidated Operating Results (in thousands): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Litigation and other gains (losses), net | (9,476 | ) | — | — | 494 | (2,484 | ) | (1,990 | ) | — | (1,102 | ) | (1,102 | ) | ||||||||||||||||||||||
Depreciation and amortization | 25,135 | 7,414 | 7,558 | 8,092 | 8,435 | 31,499 | 8,919 | 9,684 | 18,603 | |||||||||||||||||||||||||||
Goodwill impairment charge (1) | — | — | — | — | — | — | — | 209,600 | 209,600 | |||||||||||||||||||||||||||
Total operating income (loss) | 103,498 | 14,376 | 28,209 | 23,240 | 8,409 | 74,234 | 14,149 | (200,575 | ) | (186,426 | ) | |||||||||||||||||||||||||
Other expense, net | 19,933 | 3,500 | 3,847 | 3,687 | 4,043 | 15,077 | 3,246 | 3,411 | 6,657 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense | $ | 83,565 | $ | 10,876 | $ | 24,362 | $ | 19,553 | $ | 4,366 | $ | 59,157 | $ | 10,903 | $ | (203,986 | ) | $ | (193,083 | ) |
Other Operating Data (excluding All Other): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Number of full-time billable consultants (at period end) (2): | ||||||||||||||||||||||||||||||||||||
Healthcare | 1,037 | 1,023 | 952 | 1,010 | 888 | 888 | 857 | 750 | 750 | |||||||||||||||||||||||||||
Education | 387 | 417 | 428 | 466 | 468 | 468 | 478 | 519 | 519 | |||||||||||||||||||||||||||
Business Advisory | 397 | 402 | 516 | 545 | 547 | 547 | 680 | 737 | 737 | |||||||||||||||||||||||||||
Total | 1,821 | 1,842 | 1,896 | 2,021 | 1,903 | 1,903 | 2,015 | 2,006 | 2,006 | |||||||||||||||||||||||||||
Average number of full-time billable consultants (for the period) (2): | ||||||||||||||||||||||||||||||||||||
Healthcare | 1,085 | 1,026 | 1,005 | 984 | 976 | 998 | 867 | 807 | 837 | |||||||||||||||||||||||||||
Education | 351 | 410 | 421 | 447 | 470 | 437 | 471 | 494 | 483 |
Other Operating Data (excluding All Other): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Business Advisory | 334 | 393 | 472 | 530 | 552 | 486 | 627 | 725 | 675 | |||||||||||||||||||||||||||
Total | 1,770 | 1,829 | 1,898 | 1,961 | 1,998 | 1,921 | 1,965 | 2,026 | 1,995 | |||||||||||||||||||||||||||
Full-time billable consultant utilization rate (3): | ||||||||||||||||||||||||||||||||||||
Healthcare | 77.9 | % | 80.5 | % | 78.1 | % | 77.0 | % | 72.4 | % | 77.1 | % | 72.3 | % | 77.7 | % | 74.9 | % | ||||||||||||||||||
Education | 74.6 | % | 73.3 | % | 72.4 | % | 68.0 | % | 68.7 | % | 70.6 | % | 74.9 | % | 75.1 | % | 75.0 | % | ||||||||||||||||||
Business Advisory | 76.2 | % | 69.9 | % | 73.3 | % | 73.5 | % | 74.9 | % | 73.1 | % | 75.2 | % | 72.4 | % | 78.2 | % | ||||||||||||||||||
Total | 76.9 | % | 76.6 | % | 75.6 | % | 73.9 | % | 72.2 | % | 74.6 | % | 73.9 | % | 75.1 | % | 76.1 | % | ||||||||||||||||||
Full-time billable consultant average billing rate per hour (4): | ||||||||||||||||||||||||||||||||||||
Healthcare | $ | 217 | $ | 213 | $ | 211 | $ | 203 | $ | 215 | $ | 210 | $ | 228 | $ | 182 | $ | 205 | ||||||||||||||||||
Education | $ | 216 | $ | 214 | $ | 217 | $ | 220 | $ | 225 | $ | 219 | $ | 218 | $ | 219 | $ | 218 | ||||||||||||||||||
Business Advisory | $ | 245 | $ | 218 | $ | 228 | $ | 203 | $ | 188 | $ | 208 | $ | 199 | $ | 190 | $ | 194 | ||||||||||||||||||
Total | $ | 222 | $ | 214 | $ | 216 | $ | 207 | $ | 209 | $ | 212 | $ | 216 | $ | 194 | $ | 204 | ||||||||||||||||||
Revenue per full-time billable consultant (in thousands): | ||||||||||||||||||||||||||||||||||||
Healthcare | $ | 313 | $ | 82 | $ | 76 | $ | 73 | $ | 69 | $ | 300 | $ | 76 | $ | 65 | $ | 142 | ||||||||||||||||||
Education | $ | 317 | $ | 76 | $ | 76 | $ | 72 | $ | 69 | $ | 293 | $ | 78 | $ | 80 | $ | 157 | ||||||||||||||||||
Business Advisory | $ | 335 | $ | 75 | $ | 82 | $ | 72 | $ | 65 | $ | 293 | $ | 73 | $ | 72 | $ | 145 | ||||||||||||||||||
Total | $ | 318 | $ | 79 | $ | 78 | $ | 72 | $ | 68 | $ | 297 | $ | 76 | $ | 71 | $ | 147 |
Other Operating Data (continued): | Year Ended | Quarter Ended | Year Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Sept. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | ||||||||||||||||||||||||||||
Average number of full-time equivalents (for the period) (5): | ||||||||||||||||||||||||||||||||||||
Healthcare | 179 | 199 | 198 | 204 | 212 | 203 | 216 | 215 | 215 | |||||||||||||||||||||||||||
Education | 39 | 37 | 36 | 40 | 41 | 38 | 40 | 34 | 37 | |||||||||||||||||||||||||||
Business Advisory | 12 | 9 | 21 | 25 | 24 | 20 | 20 | 17 | 18 | |||||||||||||||||||||||||||
Total | 230 | 245 | 255 | 269 | 277 | 261 | 276 | 266 | 270 | |||||||||||||||||||||||||||
Revenue per full-time equivalent (in thousands): | ||||||||||||||||||||||||||||||||||||
Healthcare | $ | 604 | $ | 151 | $ | 148 | $ | 156 | $ | 158 | $ | 614 | $ | 150 | $ | 143 | $ | 293 | ||||||||||||||||||
Education | $ | 587 | $ | 128 | $ | 149 | $ | 158 | $ | 137 | $ | 572 | $ | 146 | $ | 134 | $ | 281 | ||||||||||||||||||
Business Advisory (6) | $ | 418 | $ | 105 | $ | 98 | $ | 126 | $ | 116 | $ | 453 | $ | 105 | $ | 133 | $ | 236 | ||||||||||||||||||
Total | $ | 591 | $ | 146 | $ | 144 | $ | 154 | $ | 151 | $ | 596 | $ | 146 | $ | 141 | $ | 288 |
(1) | The non-cash goodwill impairment charge is not allocated at the segment level because the underlying goodwill asset is reflective of our corporate investment 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 of 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 cultural transformation consultants within our Studer Group solution, which include coaches and their support staff, consultants who work variable schedules as needed by our clients, and full-time employees who provide software support and maintenance services to our clients. |
(6) | Full year operating metrics are calculated using the appropriate full year data. As the results of operations of our acquisitions are only included in our consolidated results of operations from the date of acquisition, certain full year operating metrics cannot be calculated using a simple summation of the four individual quarters presented. |