hurn-20240730
0001289848false00012898482024-07-302024-07-30


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 30, 2024
Date of Report (Date of earliest event reported)
_____________________
Huron Consulting Group Inc.
(Exact name of registrant as specified in its charter)
Delaware000-5097601-0666114
(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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareHURNNASDAQ Global Select Market
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
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.




Item 2.02.    Results of Operations and Financial Condition.
On July 30, 2024, Huron Consulting Group Inc. (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to 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
Exhibit
Number
Exhibit Description
99.1
101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)




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:July 30, 2024/s/    JOHN D. KELLY
John D. Kelly
Executive Vice President, Chief Financial Officer, and Treasurer


Document

Exhibit 99.1
https://cdn.kscope.io/c026170e2c19053dade8d96b19212f28-huron2022logo-sidebyside002a.jpg
NEWSMEDIA CONTACT
Allie Bovis
FOR IMMEDIATE RELEASEabovis@hcg.com
INVESTOR CONTACT
John D. Kelly
investor@hcg.com
Huron Announces Record Second Quarter 2024 Financial Results and Raises 2024 Earnings Guidance
SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS
Total revenues increased $24.9 million, or 7.2%, to a record $371.7 million in Q2 2024 from $346.8 million in Q2 2023.
Net income increased $12.8 million, or 51.7%, to $37.5 million in Q2 2024, compared to $24.7 million in Q2 2023. Results for Q2 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter for which Huron was the plaintiff.
Adjusted EBITDA(8), a non-GAAP measure, increased $7.2 million, or 14.9%, to $55.7 million in Q2 2024 from $48.5 million in Q2 2023.
Diluted earnings per share increased $0.76, or 59.8%, to $2.03 in Q2 2024, compared to $1.27 in Q2 2023. Results for Q2 2024 include the litigation settlement gain related to a completed legal matter for which Huron was the plaintiff, which had a favorable $0.60 impact on diluted earnings per share for the quarter.
Adjusted diluted earnings per share(8), a non-GAAP measure, increased $0.30, or 21.7%, to $1.68 in Q2 2024 from $1.38 in Q2 2023.
Net cash provided by operating activities was a record $107.2 million in Q2 2024, compared to $78.2 million in Q2 2023.
Huron returned $34.4 million to shareholders by repurchasing 0.4 million shares of the company's common stock in Q2 2024.
YEAR-TO-DATE 2024 HIGHLIGHTS AND 2024 GUIDANCE
Total revenues increased $63.0 million, or 9.5%, to $727.6 million for the first six months of 2024 from $664.7 million for the same prior year period.
Net income increased $17.4 million, or 45.5%, to $55.5 million for the first six months of 2024, compared to $38.1 million for the same prior year period. Results for the first six months of 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter for which Huron was the plaintiff.
Adjusted EBITDA(8), a non-GAAP measure, increased $11.5 million, or 14.8%, to $89.5 million for the first six months of 2024 from $78.0 million for the same prior year period.
Diluted earnings per share increased $1.01, or 51.8%, to $2.96 for the first six months of 2024, compared to $1.95 for the same prior year period. Results for the first six months of 2024 include the litigation settlement gain related to a completed legal matter for which Huron was the plaintiff, which had a favorable $0.59 impact on diluted earnings per share for the period.
Adjusted diluted earnings per share(8), a non-GAAP measure, increased $0.64, or 28.4%, to $2.89 for the first six months of 2024 from $2.25 for the same prior year period.


https://cdn.kscope.io/c026170e2c19053dade8d96b19212f28-huron2022logo-sidebyside002a.jpg
Huron returned $96.7 million to shareholders by repurchasing 1.0 million shares of the company's common stock in the first six months of 2024, representing 5.4% of the company's common stock outstanding as of December 31, 2023.
Huron updates its previous earnings guidance range for full year 2024, including increasing adjusted diluted earnings per share(8) expectations to a range of $5.85 to $6.15.
OTHER HIGHLIGHTS
Huron was named one of America’s Best Management Consulting Firms for 2024 by Forbes, one of America’s Best Mid-size Companies by Time magazine, and a Best Firm to Work For in 2024 by Consulting magazine.
Huron was recognized as a 2024 employer of choice by U.S. News and World Report (Best Companies to Work For) and Forbes (America’s Best Employers For Women).
CHICAGO - Jul 30, 2024 - Global professional services firm Huron (NASDAQ: HURN) today announced financial results for the quarter ended June 30, 2024.
“In the second quarter, we achieved record revenues, led by solid growth in our Healthcare and Education segments, and we continued to expand our margins. We are raising our full year 2024 earnings guidance, reflecting our first half performance and which continues our steady progress towards our financial goals,” said Mark Hussey, chief executive officer and president of Huron. "We also generated record cash flow in the second quarter, enabling us to reduce our debt by $62 million while repurchasing $34 million of our outstanding shares.”
“I am incredibly proud of our team for delivering performance that over the past ten quarters has outpaced our 2022 investor day financial objectives,” added Hussey. “Our strengths in the Healthcare and Education industries, along with our expansive Digital capabilities, position us well to continue addressing our clients’ needs and achieve our strategic and financial objectives.”
SECOND QUARTER 2024 RESULTS
Revenues increased $24.9 million, or 7.2%, to a record $371.7 million for the second quarter of 2024, compared to $346.8 million for the second quarter of 2023. The increase in revenues was driven by continued strength in demand for Healthcare's Consulting and Managed Services and Digital capabilities, as well as an increase in demand for Education's Consulting and Managed Services capability, reflecting the company's focus on accelerating growth in the healthcare and education industries. These increases were partially offset by a decrease in demand for Commercial's Digital capability.
Net income increased $12.8 million, or 51.7%, to $37.5 million for the second quarter of 2024, compared to $24.7 million for the same quarter last year. Results for the second quarter of 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter for which Huron was the plaintiff. Diluted earnings per share increased $0.76, or 59.8%, to $2.03 for the second quarter of 2024, compared to $1.27 for the second quarter of 2023. The litigation settlement gain recognized in the second quarter of 2024 had a favorable $0.60 impact on diluted earnings per share in the second quarter of 2024.
Second quarter 2024 earnings before interest, taxes, depreciation and amortization ("EBITDA")(8) increased $19.2 million, or 40.7%, to $66.3 million, compared to $47.1 million in the same prior year period. Results for the second quarter of 2024 include a pre-tax $15.0 million litigation settlement gain related to the completed legal matter for which Huron was the plaintiff.


https://cdn.kscope.io/c026170e2c19053dade8d96b19212f28-huron2022logo-sidebyside002a.jpg
In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).
Three Months Ended
June 30,
20242023
Amortization of intangible assets$1,627 $1,974 
Restructuring charges$2,056 $1,699 
2024 litigation settlement gain (9)
$(11,701)$— 
Other gains, net
$(917)$(623)
Transaction-related expenses$103 $— 
Tax effect of adjustments$2,296 $(808)
Foreign currency transaction losses (gains), net$(150)$288 
Adjusted EBITDA(8) increased $7.2 million, or 14.9%, to $55.7 million, or 15.0% of revenues, in the second quarter of 2024, compared to $48.5 million, or 14.0% of revenues, in the same quarter last year. Adjusted net income(8) increased $4.0 million, or 14.8%, to $30.9 million, or $1.68 per diluted share, for the second quarter of 2024, compared to $27.0 million, or $1.38 per diluted share, for the same quarter in 2023.
The number of revenue-generating professionals(1) increased 13.0% to 5,848 as of June 30, 2024 from 5,174 as of June 30, 2023. The utilization rate(7) of the company's Consulting capability was 73.7% during the second quarter of 2024, compared to 76.0% during the same period last year. The utilization rate(7) for the company's Digital capability increased to 75.0% during the second quarter of 2024, compared to 74.7% during the same period last year.
Additionally, Huron returned $34.4 million to shareholders in the second quarter of 2024 by repurchasing 376,493 shares of the company's common stock.
YEAR-TO-DATE 2024 RESULTS
Revenues increased $63.0 million, or 9.5%, to $727.6 million for the first six months of 2024, compared to $664.7 million for the first six months of 2023. The increase in revenues was driven by continued strength in demand for both our Consulting and Managed Services capability and Digital capability within Healthcare and Education, reflecting the company's focus on accelerating growth in the healthcare and education industries. These increases were partially offset by a decrease in demand for Commercial's Digital capability.
Net income increased $17.4 million, or 45.5%, to $55.5 million for the first six months of 2024, compared to $38.1 million for the same prior year period. Results for the first six months of 2024 include an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter for which Huron was the plaintiff. Diluted earnings per share increased $1.01, or 51.8%, to $2.96 for the first six months of 2024, compared to $1.95 for the same prior year period. The litigation settlement gain recognized in the second quarter of 2024 had a favorable $0.59 impact on diluted earnings per share for the six months ended June 30, 2024.
EBITDA(8) for the first six months of 2024 increased $21.4 million, or 28.9%, to $95.2 million, compared to $73.8 million in the same prior year period. Results for the first six months of 2024 include a pre-tax $15.0 million litigation settlement gain related to the completed legal matter for which Huron was the plaintiff.


https://cdn.kscope.io/c026170e2c19053dade8d96b19212f28-huron2022logo-sidebyside002a.jpg
In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands):
Six Months Ended
June 30,
20242023
Amortization of intangible assets$3,317 $4,205 
Restructuring charges$4,393 $3,983 
2024 litigation settlement gain (9)
$(11,701)$— 
Other losses (gains), net
$651 $(188)
Transaction-related expenses$1,600 $— 
Tax effect of adjustments$452 $(2,120)
Foreign currency transaction losses (gains), net$(615)$368 
Adjusted EBITDA(8) increased $11.5 million, or 14.8%, to $89.5 million, or 12.3% of revenues, for the first six months of 2024, compared to $78.0 million, or 11.7% of revenues, in the same prior year period. Adjusted net income(8) increased $10.2 million, or 23.2%, to $54.2 million, or $2.89 per diluted share, for the first six months of 2024, compared to $44.0 million, or $2.25 per diluted share, for the same prior year period.
The number of revenue-generating professionals(1) increased 13.0% to 5,848 as of June 30, 2024 from 5,174 as of June 30, 2023. The utilization rate(7) of the company's Consulting capability was 72.0% for the first six months of 2024, compared to 76.1% during the same period last year. The utilization rate(7) for the company's Digital capability increased to 74.6% for the first six months of 2024, compared to 72.8% during the same period last year.
Additionally, Huron returned $96.7 million to shareholders in the first six months of 2024 by repurchasing 1,001,191 shares of the company's common stock, representing 5.4% of the company's common stock outstanding as of December 31, 2023.
OPERATING INDUSTRIES
The company’s year-to-date 2024 revenues by operating segment as a percentage of total company revenues are as follows: Healthcare (51%); Education (32%); and Commercial (17%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended June 30, 2024.
OUTLOOK FOR 2024
Based on currently available information, the company is narrowing guidance for full year 2024 revenues before reimbursable expenses to a range of $1.46 billion to $1.50 billion. The company is increasing its guidance for full year 2024 adjusted EBITDA as a percentage of revenues(8) to a range of 13.0% to 13.5% and adjusted diluted earnings per share(8) to a range of $5.85 to $6.15.
SECOND QUARTER 2024 WEBCAST
The company will host a webcast to discuss its financial results today, July 30, 2024, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron'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.
USE OF NON-GAAP FINANCIAL MEASURES(8)
In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing


https://cdn.kscope.io/c026170e2c19053dade8d96b19212f28-huron2022logo-sidebyside002a.jpg
their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. 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.
Management has provided its outlook regarding adjusted EBITDA and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
ABOUT HURON
Huron is a global professional services firm that collaborates with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses and their people to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. Learn more at www.huronconsultinggroup.com.
Statements in this press release 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, 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,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “continues,” “goals,” “guidance,” or “outlook” or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn in market conditions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under “Item 1A. Risk Factors” in Huron's Annual Report on Form 10-K for the year ended December 31, 2023 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. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.





HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024202320242023
Revenues and reimbursable expenses:
Revenues$371,654 $346,759 $727,615 $664,654 
Reimbursable expenses9,363 8,140 16,787 16,630 
Total revenues and reimbursable expenses381,017 354,899 744,402 681,284 
Operating expenses:
Direct costs (exclusive of depreciation and amortization included below)248,605 235,198 501,908 463,581 
Reimbursable expenses9,427 8,121 17,011 16,745 
Selling, general and administrative expenses71,410 64,642 144,110 126,496 
Other gains, net(15,917)(623)(14,349)(188)
Restructuring charges2,056 1,699 4,393 3,983 
Depreciation and amortization6,033 6,143 12,005 12,517 
Total operating expenses321,614 315,180 665,078 623,134 
Operating income59,403 39,719 79,324 58,150 
Other income (expense), net:
Interest expense, net of interest income(7,954)(5,796)(13,094)(10,099)
Other income, net646 1,062 3,425 2,781 
Total other expense, net(7,308)(4,734)(9,669)(7,318)
Income before taxes52,095 34,985 69,655 50,832 
Income tax expense14,613 10,273 14,167 12,701 
Net income$37,482 $24,712 $55,488 $38,131 
Earnings per share:
Net income per basic share$2.10 $1.30 $3.08 $2.00 
Net income per diluted share$2.03 $1.27 $2.96 $1.95 
Weighted average shares used in calculating earnings per share:
Basic17,887 18,939 18,042 19,029 
Diluted18,454 19,486 18,741 19,598 
Comprehensive income (loss):
Net income$37,482 $24,712 $55,488 $38,131 
Foreign currency translation adjustments, net of tax(281)327 (1,003)379 
Unrealized gain (loss) on investment, net of tax(6,318)553 (7,765)4,426 
Unrealized gain (loss) on cash flow hedging instruments, net of tax(1,127)2,463 (54)134 
Other comprehensive income (loss)(7,726)3,343 (8,822)4,939 
Comprehensive income$29,756 $28,055 $46,666 $43,070 





HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
 
June 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents$17,646 $12,149 
Receivables from clients, net181,074 162,566 
Unbilled services, net188,075 190,869 
Income tax receivable8,342 6,385 
Prepaid expenses and other current assets40,399 28,491 
Total current assets435,536 400,460 
Property and equipment, net23,357 23,728 
Deferred income taxes, net2,325 2,288 
Long-term investments64,918 75,414 
Operating lease right-of-use assets22,409 24,131 
Other non-current assets105,799 92,336 
Intangible assets, net24,118 18,074 
Goodwill647,451 625,711 
Total assets$1,325,913 $1,262,142 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$9,740 $10,074 
Accrued expenses and other current liabilities26,495 33,087 
Accrued payroll and related benefits135,595 225,921 
Current maturities of long-term debt13,750 — 
Current maturities of operating lease liabilities11,588 11,032 
Deferred revenues28,583 22,461 
Total current liabilities225,751 302,575 
Non-current liabilities:
Deferred compensation and other liabilities40,038 35,665 
Long-term debt, net of current portion496,550 324,000 
Operating lease liabilities, net of current portion35,618 38,850 
Deferred income taxes, net27,378 28,160 
Total non-current liabilities599,584 426,675 
Commitments and contingencies
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 20,843,283 and 21,316,441 shares issued, respectively
208 212 
Treasury stock, at cost, 3,059,851 and 2,852,296 shares, respectively
(159,537)(142,136)
Additional paid-in capital175,387 236,962 
Retained earnings470,515 415,027 
Accumulated other comprehensive income14,005 22,827 
Total stockholders’ equity500,578 532,892 
Total liabilities and stockholders’ equity$1,325,913 $1,262,142 






HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited) 
Six Months Ended
June 30,
20242023
Cash flows from operating activities:
Net income$55,488 $38,131 
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization12,005 12,549 
Non-cash lease expense3,043 3,340 
Lease-related impairment charges2,293 2,086 
Share-based compensation25,284 23,151 
Amortization of debt discount and issuance costs508 382 
Allowances for doubtful accounts2,353 53 
Deferred income taxes1,942 1,755 
(Gain) loss on sale of property and equipment(101)
Change in fair value of contingent consideration liabilities(416)(233)
Changes in operating assets and liabilities, net of acquisitions and divestiture:
(Increase) decrease in receivables from clients, net(20,372)(4,440)
(Increase) decrease in unbilled services, net3,057 (32,567)
(Increase) decrease in current income tax receivable / payable, net(2,606)(6,141)
(Increase) decrease in other assets(14,942)(4,880)
Increase (decrease) in accounts payable and other liabilities(6,978)(5,594)
Increase (decrease) in accrued payroll and related benefits(86,400)(44,277)
Increase (decrease) in deferred revenues2,339 2,804 
Net cash used in operating activities(23,503)(13,880)
Cash flows from investing activities:
Purchases of property and equipment(3,665)(3,725)
Investments in life insurance policies(1,361)(2,188)
Distributions from life insurance policies— 2,956 
Purchases of businesses(20,769)38 
Capitalization of internally developed software costs(14,138)(12,998)
Proceeds from note receivable154 154 
Proceeds from sale of property and equipment102 — 
Net cash used in investing activities(39,677)(15,763)
Cash flows from financing activities:
Proceeds from exercises of stock options1,215 987 
Shares redeemed for employee tax withholdings(21,080)(9,728)
Share repurchases(97,264)(60,368)
Proceeds from bank borrowings618,500 230,000 
Repayments of bank borrowings(430,938)(125,000)
Payments for debt issuance costs(1,446)(58)
Deferred payments on business acquisition(261)(1,500)
Net cash provided by financing activities68,726 34,333 
Effect of exchange rate changes on cash(49)59 
Net increase in cash and cash equivalents5,497 4,749 
Cash and cash equivalents at beginning of the period12,149 11,834 
Cash and cash equivalents at end of the period$17,646 $16,583 





HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Three Months Ended
June 30,
Percent
Increase
(Decrease)
Six Months Ended
June 30,
Percent
Increase
(Decrease)
Segment and Consolidated Operating Results (in thousands):2024202320242023
Healthcare:
Revenues$190,098 $173,768 9.4%$370,840 $322,817 14.9%
Operating income$55,246 $49,151 12.4%$97,940 $81,406 20.3%
Segment operating margin29.1 %28.3 %26.4 %25.2 %
Education:
Revenues$122,753 $110,694 10.9%$234,336 $214,841 9.1%
Operating income$30,792 $27,397 12.4%$52,748 $50,562 4.3%
Segment operating margin25.1 %24.8 %22.5 %23.5 %
Commercial:
Revenues$58,803 $62,297 (5.6)%$122,439 $126,996 (3.6)%
Operating income$9,015 $10,472 (13.9)%$23,054 $24,539 (6.1)%
Segment operating margin15.3 %16.8 %18.8 %19.3 %
Total Huron:
Revenues$371,654 $346,759 7.2%$727,615 $664,654 9.5%
Reimbursable expenses9,363 8,140 15.0%16,787 16,630 0.9%
Total revenues and reimbursable expenses$381,017 $354,899 7.4%$744,402 $681,284 9.3%
Segment operating income$95,053 $87,020 9.2%$173,742 $156,507 11.0%
Items not allocated at the segment level:
Other operating expenses45,626 43,044 6.0%96,565 86,665 11.4%
Other gains, net(15,917)(623)N/M(14,349)(188)N/M
Restructuring charges
2,047 502 N/M4,280 2,786 53.6%
Depreciation and amortization3,894 4,378 (11.1)%7,922 9,094 (12.9)%
Operating income 59,403 39,719 49.6%79,324 58,150 36.4%
Other expense, net(7,308)(4,734)54.4%(9,669)(7,318)32.1%
Income before taxes$52,095 $34,985 48.9%$69,655 $50,832 37.0%
Other Operating Data:
Number of revenue-generating professionals by segment (at period end) (1)(2):
Healthcare2,339 1,852 26.3%2,339 1,852 26.3%
Education1,243 1,124 10.6%1,243 1,124 10.6%
Commercial (3)
2,266 2,198 3.1%2,266 2,198 3.1%
Total5,848 5,174 13.0%5,848 5,174 13.0%
Revenue by capability:
Consulting and Managed Services (4)(5)
$218,339 $197,255 10.7%$419,898 $374,449 12.1%
Digital153,315 149,504 2.5%307,717 290,205 6.0%
Total$371,654 $346,759 7.2%$727,615 $664,654 9.5%
Number of revenue-generating professionals by capability (at period end)(1):
Consulting and Managed Services (4)(6)
2,935 2,473 18.7%2,935 2,473 18.7%
Digital2,913 2,701 7.8%2,913 2,701 7.8%
Total5,848 5,174 13.0%5,848 5,174 13.0%
Utilization rate by capability (7):
Consulting73.7 %76.0 %72.0 %76.1 %
Digital75.0 %74.7 %74.6 %72.8 %





(1)    Consists of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the culture and organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our Healthcare managed services employees who provide revenue cycle billing, collections, insurance verification and change integrity services to clients.
(2)    During the first quarter of 2024, we reclassified certain revenue-generating professionals within our Digital capability from our Healthcare and Education segments to our Commercial segment as these professionals are able to provide services across all of our industries. This reclassification did not impact the total Digital capability headcount for any period. The prior period headcount has been revised for consistent presentation.
(3)    The majority of our revenue-generating professionals within our Commercial segment can provide services across all of our industries, including healthcare and education, and the related costs of these professionals are allocated to each of the segments.
(4)    During the first quarter of 2024, we reclassified one of the offerings within Education's Consulting capability to Education's Managed Services capability. Revenues generated by this offering during the quarters ended March 31, 2023, June 30, 2023, September 30, 2023, and December 31, 2023 were $2.8 million, $2.2 million, $2.4 million, and $2.7 million, respectively, and during the years ended December 31, 2022 and 2023 were $15.0 million and $10.1 million, respectively. The number of revenue-generating professionals within this offering as of December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023 were 54, 24, 24, 24 and 23, respectively.
This reclassification did not impact the aggregate revenues or headcount reported for the Education Consulting and Managed Services capability for any period, and the prior period Education Managed Services capability revenues and headcount in the following footnotes have been revised for consistent presentation.
(5)    Managed Services capability revenues within our Healthcare segment was $16.7 million and $17.3 million for the three months ended June 30, 2024 and 2023, respectively; and $34.2 million and $37.1 million for the six months ended June 30, 2024 and 2023, respectively.
Managed Services capability revenues within our Education segment was $6.8 million and $7.1 million for the three months ended June 30, 2024 and 2023, respectively; and $14.2 million and $14.5 million for the six months ended June 30, 2024 and 2023, respectively.
(6)    The number of Managed Services revenue-generating professionals within our Healthcare segment was 1,116 and 772 as of June 30, 2024 and 2023, respectively.
The number of Managed Services revenue-generating professionals within our Education segment was 128 and 130 as of June 30, 2024 and 2023, respectively.
(7)    Utilization rate is calculated by dividing the number of hours our billable consultants worked on client assignments during a period by the total available working hours for these billable consultants during the same period. Available working hours are determined by the standard hours worked by each billable consultant, adjusted for part-time hours, and U.S. standard work weeks. Available working hours exclude local country holidays and vacation days. Utilization rates are presented for our revenue-generating professionals who primarily bill on an hourly basis. We have not presented utilization rates for our Managed Services professionals as most of the revenues generated by these employees are not billed on an hourly basis.





HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME
TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (8)
(In thousands)
(Unaudited)
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2024202320242023
Revenues$371,654 $346,759 $727,615 $664,654 
Net income $37,482 $24,712 $55,488 $38,131 
Add back:
Income tax expense
14,613 10,273 14,167 12,701 
Interest expense, net of interest income7,954 5,796 13,094 10,099 
Depreciation and amortization6,244 6,330 12,425 12,883 
Earnings before interest, taxes, depreciation and amortization (EBITDA) (8)
66,293 47,111 95,174 73,814 
Add back:
Restructuring charges2,056 1,699 4,393 3,983 
2024 litigation settlement gain (9)
(11,701)— (11,701)— 
Other losses (gains), net
(917)(623)651 (188)
Transaction-related expenses103 — 1,600 — 
Foreign currency transaction losses (gains), net(150)288 (615)368 
Adjusted EBITDA (8)
$55,684 $48,475 $89,502 $77,977 
Adjusted EBITDA as a percentage of revenues (8)
15.0 %14.0 %12.3 %11.7 %

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (8)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
 2024202320242023
Net income$37,482 $24,712 $55,488 $38,131 
Weighted average shares - diluted18,454 19,486 18,741 19,598 
Diluted earnings per share$2.03 $1.27 $2.96 $1.95 
Add back:
Amortization of intangible assets1,627 1,974 3,317 4,205 
Restructuring charges2,056 1,699 4,393 3,983 
2024 litigation settlement gain (9)
(11,701)— (11,701)— 
Other losses (gains), net
(917)(623)651 (188)
Transaction-related expenses103 — 1,600 — 
Tax effect of adjustments2,296 (808)452 (2,120)
Total adjustments, net of tax(6,536)2,242 (1,288)5,880 
Adjusted net income (8)
$30,946 $26,954 $54,200 $44,011 
Adjusted weighted average shares - diluted18,454 19,486 18,741 19,598 
Adjusted diluted earnings per share (8)
$1.68 $1.38 $2.89 $2.25 

(8)    In evaluating the company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful





information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. 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.
(9)    The non-GAAP financial measures for the three and six months ended June 30, 2024 include an adjustment for the 2024 litigation settlement gain. In the second quarter of 2024, the company settled a litigation matter for which Huron was the plaintiff for $15.0 million, on a pre-tax basis. This $15.0 million settlement gain was recorded as a component of other gains, net on the consolidated statement of operations. The company has excluded from the non-GAAP measures $11.7 million, which is the value of the settlement gain that exceeds the third-party legal costs incurred during 2024 specific to this litigation matter, as this net gain is not indicative of the ongoing performance of Huron's business. Of the $3.3 million third-party legal costs incurred for this matter in the first half of 2024, $2.7 million was incurred in the first quarter and $0.6 million was incurred in the second quarter. Third-party legal expenses are recorded as a component of selling, general and administrative expenses on the statement of operations. Third-party legal costs incurred for this litigation matter during the three and six months ended June 30, 2023 were $0.4 million and $1.0 million, respectively.