Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Huron Announces Second Quarter 2021 Financial Results


Global professional services firm Huron (NASDAQ: HURN) today announced financial results from continuing operations for the second quarter ended June 30, 2021.

"Second quarter revenues grew 6% year over year and 13% sequentially, reflecting the strength of recovery in the Healthcare and Education segments," said James H. Roth, chief executive officer, Huron. "We anticipate the tailwinds that we experienced in the second quarter will continue across all segments, including in Business Advisory, further demonstrating that our pre-pandemic growth trajectory has returned and establishing a foundation for strong growth through the remainder of 2021."

COVID-19 IMPACT
The worldwide spread of the coronavirus (COVID-19) has created significant volatility, uncertainty and disruption to the global economy. The company continues to closely monitor the impact of the pandemic on all aspects of its business, including how it will impact its clients, employees and business partners. In most of 2020 and the first quarter of 2021, the COVID-19 pandemic negatively impacted sales and elongated the sales cycle for new opportunities for certain services, particularly within the company's Healthcare and Education segments as some clients reprioritized or delayed certain projects. Conversely, the pandemic strengthened demand for the company's cloud-based technology and analytics solutions and certain services provided to organizations in transition within the company's Business Advisory segment.

During the first half of 2021, the company saw an increase in its sales pipeline and the pace of signings, particularly within its Healthcare and Education businesses. While overall demand for services in the first quarter of 2021 was negatively impacted by the COVID-19 pandemic, the overall demand for the company's services strengthened in the second quarter of 2021 and the company expects strong revenue growth in the second half of 2021 compared to the second half of 2020.

SECOND QUARTER 2021 RESULTS FROM CONTINUING OPERATIONS
Revenues increased $12.3 million, or 5.6%, to $230.1 million for the second quarter of 2021 from $217.9 million for the second quarter of 2020.

Net income from continuing operations was $12.8 million for the second quarter of 2021 compared to $13.6 million for the same quarter last year. Diluted earnings per share from continuing operations was $0.59 for the second quarter of 2021 compared to $0.61 for the second quarter of 2020.

Second quarter 2021 earnings before interest, taxes, depreciation and amortization ("EBITDA")(8) was $24.8 million compared to $27.4 million in the same prior year period.

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,

 

2021

 

2020

Amortization of intangible assets

$

2,289

 

 

$

3,194

 

Restructuring and other charges

$

861

 

 

$

109

 

Transaction-related expenses

$

(29

)

 

$

?

 

Tax effect of adjustments

$

(827

)

 

$

(1,940

)

Foreign currency transaction gains, net

$

(48

)

$

(81

Adjusted EBITDA(8) was $25.6 million, or 11.1% of revenues, in the second quarter of 2021, compared to $27.5 million, or 12.6% of revenues, in the same prior year period. Adjusted net income from continuing operations(8) was $15.1 million, or $0.69 per diluted share, for the second quarter of 2021, compared to $14.9 million, or $0.68 per diluted share, for the same prior year period.

The average number of billable consultants(2) increased 1.5% to 2,628 in the second quarter of 2021 from 2,588 in the same quarter last year. Billable consultant utilization rate(3) was 73.3% during the second quarter of 2021 compared to 72.4% during the same period last year. Average billing rate per hour for our billable consultants(4) was $206 for the second quarter of 2021 compared to $200 for the same prior year period. The average number of full-time equivalent professionals(6) was 257 in the second quarter of 2021 compared to 271 for the same period in 2020. The average number of Healthcare Managed Services employees(7) was 431 in the second quarter of 2021 compared to 94 for the same period in 2020. This operating data has been revised from previously reported amounts as the company began assessing its operating performance by the following three employee types in the second quarter of 2021: billable consultants, full-time equivalents, and Healthcare Managed Services employees.

YEAR-TO-DATE 2021 RESULTS FROM CONTINUING OPERATIONS
Revenues were $433.3 million for the first six months of 2021 compared to $440.5 million for the first six months of 2020.

Net income from continuing operations was $18.2 million for the first six months of 2021, compared to a net loss from continuing operations of $28.7 million for the first six months of 2020. Diluted earnings per share from continuing operations was $0.82 for the first six months of 2021, compared to diluted loss per share from continuing operations of $1.31 for the first six months of 2020. Results for the first six months of 2020 reflect non-cash pretax charges totaling $59.8 million to reduce the carrying value of goodwill in the company's Strategy and Innovation and Life Sciences reporting units within the Business Advisory segment.

EBITDA(8) was $40.0 million for the first six months of 2021, compared to a loss before interest, taxes, depreciation and amortization of $16.3 million for the same prior year period.

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,

 

2021

 

2020

Amortization of intangible assets

$

4,688

 

 

$

6,403

 

Restructuring and other charges

$

1,489

 

 

$

2,567

 

Litigation and other losses (gains), net

$

42

 

 

$

(150

)

Goodwill impairment charges

$

?

 

 

$

59,816

 

Loss on sale of business

$

?

 

 

$

102

 

Transaction-related expenses

$

141

 

 

$

?

 

Tax effect of adjustments

$

(1,685

)

 

$

(15,349

)

Foreign currency transaction losses, net

$

355

 

 

$

439

 

Adjusted EBITDA(8) was $42.1 million, or 9.7% of revenues, for the first six months of 2021 compared to $46.5 million, or 10.6% of revenues, for the first six months of 2020. Adjusted net income from continuing operations(8) was $22.9 million, or $1.03 per diluted share, for the first six months of 2021 compared to $24.7 million, or $1.11 per diluted share, for the first six months of 2020.

The average number of billable consultants(2) increased 1.5% to 2,629 for the first six months of 2021 from 2,591 for the same prior year period. Billable consultant utilization rate(3) was 71.1% during the first six months of 2021 compared to 72.7% for the same prior year period. Average billing rate per hour for billable consultants(4) was $202 for the first six months of 2021 compared to $200 for the first six months of 2020. The average number of full-time equivalent professionals(6) was 241 for the first six months of 2021 compared to 269 for the same prior year period. The average number of Healthcare Managed Services employees(7) was 270 in the first half of 2021 compared to 93 for the same period in 2020. This operating data has been revised from previously reported amounts as the company began assessing its operating performance by the following three employee types in the second quarter of 2021: billable consultants, full-time equivalents, and Healthcare Managed Services employees.

OPERATING SEGMENTS
Huron's results reflect a portfolio of service offerings focused on helping clients address complex business challenges.

The company's year-to-date 2021 revenues by operating segment as a percentage of total company revenues are as follows: Healthcare (42%); Business Advisory (33%); and Education (25%). Financial results by segment are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended June 30, 2021.

OUTLOOK FOR 2021
Based on currently available information, the company increased and narrowed guidance for full year 2021 revenues before reimbursable expenses in a range of $875.0 million to $905.0 million. The company anticipates adjusted EBITDA as a percentage of revenues in a range of 10.8% to 11.3% and non-GAAP adjusted diluted earnings per share in a range of $2.40 to $2.70.

Management will provide a more detailed discussion of its outlook during the company's earnings conference call webcast.

SECOND QUARTER 2021 WEBCAST
The company will host a webcast to discuss its financial results today, July 29, 2021, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time). The conference call is being webcast by NASDAQ 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 from continuing operations, and adjusted diluted earnings per share from continuing operations, 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 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 non-GAAP 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 consultancy that collaborates with clients to drive strategic growth, ignite innovation and navigate constant change. Through a combination of strategy, expertise and creativity, we help clients accelerate operational, digital and cultural transformation, enabling the change they need 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," "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: the impact of the COVID-19 pandemic on the economy, our clients and client demand for our services, and our ability to sell and provide services, including the measures taken by governmental authorities and businesses in response to the pandemic, which may cause or contribute to other risks and uncertainties that we face; failure to achieve expected utilization rates, billing rates and the 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, 2020 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,

 

2021

 

2020

 

2021

 

2020

Revenues and reimbursable expenses:

 

 

 

 

 

 

 

Revenues

$

230,126

 

 

$

217,857

 

 

$

433,339

 

 

$

440,476

 

Reimbursable expenses

3,252

 

 

2,970

 

 

5,186

 

 

22,273

 

Total revenues and reimbursable expenses

233,378

 

 

220,827

 

 

438,525

 

 

462,749

 

Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):

 

 

 

 

 

 

 

Direct costs

161,526

 

 

149,514

 

 

309,641

 

 

305,762

 

Amortization of intangible assets and software development costs

910

 

 

1,334

 

 

1,835

 

 

2,635

 

Reimbursable expenses

3,316

 

 

2,866

 

 

5,319

 

 

22,255

 

Total direct costs and reimbursable expenses

165,752

 

 

153,714

 

 

316,795

 

 

330,652

 

Operating expenses and other losses (gains), net:

 

 

 

 

 

 

 

Selling, general and administrative expenses

45,190

 

 

44,857

 

 

84,956

 

 

88,303

 

Restructuring charges

861

 

 

109

 

 

1,489

 

 

1,718

 

Litigation and other losses (gains)

?

 

 

?

 

 

42

 

 

(150

)

Depreciation and amortization

5,446

 

 

6,193

 

 

10,874

 

 

12,307

 

Goodwill impairment charges

?

 

 

?

 

 

?

 

 

59,816

 

Total operating expenses and other losses (gains), net

51,497

 

 

51,159

 

 

97,361

 

 

161,994

 

Operating income (loss)

16,129

 

 

15,954

 

 

24,369

 

 

(29,897

)

Other income (expense), net:

 

 

 

 

 

 

 

Interest expense, net of interest income

(2,029

)

 

(2,916

)

 

(3,748

)

 

(5,257

)

Other income (expense), net

2,151

 

 

3,948

 

 

2,571

 

 

(1,348

)

Total other income (expense), net

122

 

 

1,032

 

 

(1,177

)

 

(6,605

)

Income (loss) from continuing operations before taxes

16,251

 

 

16,986

 

 

23,192

 

 

(36,502

)

Income tax expense (benefit)

3,454

 

 

3,414

 

 

4,990

 

 

(7,801

)

Net income (loss) from continuing operations

12,797

 

 

13,572

 

 

18,202

 

 

(28,701

)

Loss from discontinued operations, net of tax

?

 

 

(25

)

 

?

 

 

(60

)

Net income (loss)

$

12,797

 

 

$

13,547

 

 

$

18,202

 

 

$

(28,761

)

Net earnings (loss) per basic share:

 

 

 

 

 

 

 

Net income (loss) from continuing operations

$

0.59

 

 

$

0.62

 

 

$

0.84

 

 

$

(1.31

)

Loss from discontinued operations, net of tax

?

 

 

?

 

 

?

 

 

(0.01

)

Net income (loss)

$

0.59

 

 

$

0.62

 

 

$

0.84

 

 

$

(1.32

)

Net earnings (loss) per diluted share:

 

 

 

 

 

 

 

Net income (loss) from continuing operations

$

0.59

 

 

$

0.61

 

 

$

0.82

 

 

$

(1.31

)

Loss from discontinued operations, net of tax

?

 

 

?

 

 

?

 

 

(0.01

)

Net income (loss)

$

0.59

 

 

$

0.61

 

 

$

0.82

 

 

$

(1.32

)

Weighted average shares used in calculating earnings (loss) per share:

 

 

 

 

 

 

 

Basic

21,555

 

 

21,869

 

 

21,743

 

 

21,848

 

Diluted

21,871

 

 

22,116

 

 

22,105

 

 

21,848

 

Comprehensive income (loss):

 

 

 

 

 

 

 

Net income (loss)

$

12,797

 

 

$

13,547

 

 

$

18,202

 

 

$

(28,761

)

Foreign currency translation adjustments, net of tax

82

 

 

104

 

 

482

 

 

(675

)

Unrealized gain (loss) on investment, net of tax

1,422

 

 

(5,678

)

 

(3,226

)

 

(5,936

)

Unrealized gain (loss) on cash flow hedging instruments, net of tax

218

 

 

(1,705

)

 

1,647

 

 

(3,390

)

Other comprehensive income (loss)

1,722

 

 

(7,279

)

 

(1,097

)

 

(10,001

)

Comprehensive income (loss)

$

14,519

 

 

$

6,268

 

 

$

17,105

 

 

$

(38,762

)

HURON CONSULTING GROUP INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

June 30,
2021

 

December 31,
2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

12,982

 

 

$

67,177

 

Receivables from clients, net

116,091

 

 

87,687

 

Unbilled services, net

90,119

 

 

53,959

 

Income tax receivable

1,811

 

 

5,121

 

Prepaid expenses and other current assets

14,642

 

 

16,569

 

Total current assets

235,645

 

 

230,513

 

Property and equipment, net

31,271

 

 

29,093

 

Deferred income taxes, net

4,745

 

 

4,191

 

Long-term investments

66,639

 

 

71,030

 

Operating lease right-of-use assets

36,575

 

 

39,360

 

Other non-current assets

64,488

 

 

62,068

 

Intangible assets, net

18,957

 

 

20,483

 

Goodwill

597,552

 

 

594,237

 

Total assets

$

1,055,872

 

 

$

1,050,975

 

Liabilities and stockholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

6,318

 

 

$

648

 

Accrued expenses and other current liabilities

19,822

 

 

14,874

 

Accrued payroll and related benefits

90,158

 

 

133,830

 

Current maturities of long-term debt

551

 

 

499

 

Current maturities of operating lease liabilities

9,598

 

 

8,771

 

Deferred revenues

19,182

 

 

28,247

 

Total current liabilities

145,629

 

 

186,869

 

Non-current liabilities:

 

 

 

Deferred compensation and other liabilities

46,843

 

 

47,131

 

Long-term debt, net of current portion

267,502

 

 

202,780

 

Operating lease liabilities, net of current portion

57,324

 

 

61,825

 

Deferred income taxes, net

436

 

 

428

 

Total non-current liabilities

372,105

 

 

312,164

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Common stock; $0.01 par value; 500,000,000 shares authorized; 24,877,563 and 25,346,916 shares issued at June 30, 2021 and December 31, 2020, respectively

243

 

 

246

 

Treasury stock, at cost, 2,445,818 and 2,584,119 shares at June 30, 2021 and December 31, 2020, respectively

(135,364

)

 

(129,886

)

Additional paid-in capital

429,084

 

 

454,512

 

Retained earnings

232,211

 

 

214,009

 

Accumulated other comprehensive income

11,964

 

 

13,061

 

Total stockholders' equity

538,138

 

 

551,942

 

Total liabilities and stockholders' equity

$

1,055,872

 

 

$

1,050,975

 

HURON CONSULTING GROUP INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended

June 30,

 

2021

 

2020

Cash flows from operating activities:

 

 

 

Net income (loss)

$

18,202

 

 

$

(28,761

)

Adjustments to reconcile net income (loss) to cash flows from operating activities:

 

 

 

Depreciation and amortization

12,923

 

 

14,942

 

Non-cash lease expense

3,301

 

 

3,880

 

Share-based compensation

11,566

 

 

14,527

 

Amortization of debt discount and issuance costs

397

 

 

397

 

Goodwill impairment charges

?

 

 

59,816

 

Allowances for doubtful accounts

?

 

 

512

 

Deferred income taxes

(48

)

 

(15,515

)

Loss on sale of business

?

 

 

102

 

Change in fair value of contingent consideration liabilities

42

 

 

?

 

Other, net

(236

)

 

?

 

Changes in operating assets and liabilities, net of acquisition and divestiture:

 

 

 

(Increase) decrease in receivables from clients, net

(27,749

)

 

(339

)

(Increase) decrease in unbilled services, net

(36,088

)

 

(3,059

)

(Increase) decrease in current income tax receivable / payable, net

3,366

 

 

6,546

 

(Increase) decrease in other assets

(1,117

)

 

(1,674

)

Increase (decrease) in accounts payable and other liabilities

5,038

 

 

(2,787

)

Increase (decrease) in accrued payroll and related benefits

(42,487

)

 

(53,420

)

Increase (decrease) in deferred revenues

(9,080

)

 

6,638

 

Net cash provided by (used in) operating activities

(61,970

)

 

1,805

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment, net

(5,439

)

 

(4,417

)

Purchase of investment securities

?

 

 

(13,000

)

Investment in life insurance policies

(77

)

 

(1,540

)

Purchase of business

(5,886

)

 

?

 

Capitalization of internally developed software costs

(2,508

)

 

(5,184

)

Proceeds from sale of property and equipment

158

 

 

?

 

Net cash used in investing activities

(13,752

)

 

(24,141

)

Cash flows from financing activities:

 

 

 

Proceeds from exercise of stock options

422

 

 

646

 

Shares redeemed for employee tax withholdings

(8,651

)

 

(7,217

)

Share repurchases

(35,243

)

 

(22,115

)

Proceeds from bank borrowings

139,000

 

 

283,000

 

Repayments of bank borrowings

(74,270

)

 

(160,263

)

Net cash provided by financing activities

21,258

 

 

94,051

 

Effect of exchange rate changes on cash

269

 

 

(107

)

Net increase (decrease) in cash and cash equivalents

(54,195

)

 

71,608

 

Cash and cash equivalents at beginning of the period

67,177

 

 

11,604

 

Cash and cash equivalents at end of the period

$

12,982

 

 

$

83,212

 

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

 

In conjunction with the company's continuous evaluation of the appropriate level of disaggregation of revenues as the company's business evolves and in consideration of a group hire of approximately 300 employees in the company's Healthcare Managed Services solution within its Healthcare segment in the second quarter of 2021, the company began assessing its operating performance by the following three employee types: billable consultants, full-time equivalents, and Healthcare Managed Services employees. The disaggregation of revenues by employee type previously reported for the three and six months ended June 30, 2020 was revised below to reflect this change. This change has no impact on the company's consolidated total revenues or total revenues by segment.

 

 

 

Three Months Ended

June 30,

 

Percent

Increase

(Decrease)

Segment and Consolidated Operating Results (in thousands):

 

2021

 

2020

 

Healthcare:

 

 

 

 

 

 

Revenues

 

$

101,357

 

 

$

85,356

 

 

18.7

%

Operating income

 

$

27,624

 

 

$

21,171

 

 

30.5

%

Segment operating income as a percentage of segment revenues

 

27.3

%

 

24.8

%

 

 

Business Advisory:

 

 

 

 

 

 

Revenues

 

$

70,908

 

 

$

70,470

 

 

0.6

%

Operating income

 

$

14,315

 

 

$

16,684

 

 

(14.2)

%

Segment operating income as a percentage of segment revenues

 

20.2

%

 

23.7

%

 

 

Education:

 

 

 

 

 

 

Revenues

 

$

57,861

 

 

$

62,031

 

 

(6.7)

%

Operating income

 

$

13,770

 

 

$

16,128

 

 

(14.6)

%

Segment operating income as a percentage of segment revenues

 

23.8

%

 

26.0

%

 

 

Total Company:

 

 

 

 

 

 

Revenues

 

$

230,126

 

 

$

217,857

 

 

5.6

%

Reimbursable expenses

 

3,252

 

 

2,970

 

 

9.5

%

Total revenues and reimbursable expenses

 

$

233,378

 

 

$

220,827

 

 

5.7

%

Statements of Operations reconciliation:

 

 

 

 

 

 

Segment operating income

 

$

55,709

 

 

$

53,983

 

 

3.2

%

Items not allocated at the segment level:

 

 

 

 

 

 

Other operating expenses

 

34,325

 

 

31,638

 

 

8.5

%

Depreciation and amortization

 

5,255

 

 

6,391

 

 

(17.8)

%

Total operating income

 

16,129

 

 

15,954

 

 

1.1

%

Other income, net

 

122

 

 

1,032

 

 

(88.2)

%

Income from continuing operations before taxes

 

$

16,251

 

 

$

16,986

 

 

(4.3)

%

Other Operating Data:

 

 

 

 

 

 

Number of billable consultants (at period end) (2):

 

 

 

 

 

 

Healthcare

 

779

 

 

855

 

 

(8.9)

%

Business Advisory

 

1,093

 

 

943

 

 

15.9

%

Education

 

746

 

 

780

 

 

(4.4)

%

Total

 

2,618

 

 

2,578

 

 

1.6

%

Average number of billable consultants (for the period) (2):

 

 

 

 

 

 

Healthcare

 

798

 

 

876

 

 

 

Business Advisory

 

1,094

 

 

925

 

 

 

Education

 

736

 

 

787

 

 

 

Total

 

2,628

 

 

2,588

 

 

 

HURON CONSULTING GROUP INC.

SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)

(Unaudited)

 

 

 

Three Months Ended
June 30,

Other Operating Data (continued):

 

2021

 

2020

Billable consultant utilization rate (3):

 

 

 

 

Healthcare

 

75.7

%

 

67.6

%

Business Advisory

 

70.4

%

 

75.8

%

Education

 

75.2

%

 

73.4

%

Total

 

73.3

%

 

72.4

%

Billable consultant average billing rate per hour (4):

 

 

 

 

Healthcare

 

$

251

 

 

$

208

 

Business Advisory (5)

 

$

185

 

 

$

201

 

Education

 

$

189

 

 

$

191

 

Total (5)

 

$

206

 

 

$

200

 

Revenue per billable consultant (in thousands):

 

 

 

 

Healthcare

 

$

84

 

 

$

63

 

Business Advisory

 

$

60

 

 

$

73

 

Education

 

$

67

 

 

$

68

 

Total

 

$

69

 

 

$

68

 

Average number of full-time equivalents (for the period) (6):

 

 

 

 

Healthcare

 

162

 

 

186

 

Business Advisory

 

55

 

 

25

 

Education

 

40

 

 

60

 

Total

 

257

 

 

271

 

Revenue per full-time equivalent (in thousands):

 

 

 

 

Healthcare

 

$

127

 

 

$

123

 

Business Advisory

 

$

88

 

 

$

128

 

Education

 

$

214

 

 

$

147

 

Total

 

$

132

 

 

$

129

 

Healthcare Managed Services Employees(7):

 

 

 

 

Total revenues (in thousands)

 

$

14,049

 

 

$

7,285

 

Average number of Healthcare Managed Services employees (for the period)

 

431

 

 

94

 

HURON CONSULTING GROUP INC.

SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)

(Unaudited)

 

 

 

Six Months Ended

June 30,

 

Percent

Increase

(Decrease)

Segment and Consolidated Operating Results (in thousands):

 

2021

 

2020

 

Healthcare:

 

 

 

 

 

 

Revenues

 

$

181,079

 

 

$

180,934

 

 

0.1

%

Operating income

 

$

48,108

 

 

$

45,221

 

 

6.4

%

Segment operating income as a percentage of segment revenues

 

26.6

%

 

25.0

%

 

 

Business Advisory:

 

 

 

 

 

 

Revenues

 

$

143,775

 

 

$

135,375

 

 

6.2

%

Operating income

 

$

27,392

 

 

$

26,526

 

 

3.3

%

Segment operating income as a percentage of segment revenues

 

19.1

%

 

19.6

%

 

 

Education:

 

 

 

 

 

 

Revenues

 

$

108,485

 

 

$

124,167

 

 

(12.6

)%

Operating income

 

$

22,423

 

 

$

29,244

 

 

(23.3

)%

Segment operating income as a percentage of segment revenues

 

20.7

%

 

23.6

%

 

 

Total Company:

 

 

 

 

 

 

Revenues

 

$

433,339

 

 

$

440,476

 

 

(1.6

)%

Reimbursable expenses

 

5,186

 

 

22,273

 

 

(76.7

)%

Total revenues and reimbursable expenses

 

$

438,525

 

 

$

462,749

 

 

(5.2

)%

Statements of Operations reconciliation:

 

 

 

 

 

 

Segment operating income

 

$

97,923

 

 

$

100,991

 

 

(3.0

)%

Items not allocated at the segment level:

 

 

 

 

 

 

Other operating expenses

 

63,162

 

 

58,784

 

 

7.4

%

Litigation and other losses (gains)

 

42

 

 

(150

)

 

(128.0

)%

Depreciation and amortization

 

10,350

 

 

12,438

 

 

(16.8

)%

Goodwill impairment charges (1)

 

?

 

 

59,816

 

 

N/M

Total operating income (loss)

 

24,369

 

 

(29,897

)

 

N/M

Other expense, net

 

(1,177

)

 

(6,605

)

 

(82.2

)%

Income (loss) from continuing operations before taxes

 

$

23,192

 

 

$

(36,502

)

 

N/M

Other Operating Data:

 

 

 

 

 

 

Number of billable consultants (at period end) (2):

 

 

 

 

 

 

Healthcare

 

779

 

 

855

 

 

(8.9

)%

Business Advisory

 

1,093

 

 

943

 

 

15.9

%

Education

 

746

 

 

780

 

 

(4.4

)%

Total

 

2,618

 

 

2,578

 

 

1.6

%

Average number of billable consultants (for the period) (2):

 

 

 

 

 

 

Healthcare

 

808

 

 

887

 

 

 

Business Advisory

 

1,087

 

 

922

 

 

 

Education

 

734

 

 

782

 

 

 

Total

 

2,629

 

 

2,591

 

 

 

HURON CONSULTING GROUP INC.

SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)

(Unaudited)

 

 

 

Six Months Ended

June 30,

Other Operating Data (continued):

 

2021

 

2020

Billable consultant utilization rate (3):

 

 

 

 

Healthcare

 

71.7

%

 

69.6

%

Business Advisory

 

69.5

%

 

73.7

%

Education

 

72.7

%

 

74.8

%

Total

 

71.1

%

 

72.7

%

Billable consultant average billing rate per hour (4):

 

 

 

 

Healthcare

 

$

233

 

 

$

212

 

Business Advisory (5)

 

$

194

 

 

$

199

 

Education

 

$

182

 

 

$

189

 

Total (5)

 

$

202

 

 

$

200

 

Revenue per billable consultant (in thousands):

 

 

 

 

Healthcare

 

$

147

 

 

$

132

 

Business Advisory

 

$

125

 

 

$

140

 

Education

 

$

125

 

 

$

136

 

Total

 

$

132

 

 

$

136

 

Average number of full-time equivalents (for the period) (6):

 

 

 

 

Healthcare

 

158

 

 

187

 

Business Advisory

 

45

 

 

22

 

Education

 

38

 

 

60

 

Total

 

241

 

 

269

 

Revenue per full-time equivalent (in thousands):

 

 

 

 

Healthcare

 

$

257

 

 

$

261

 

Business Advisory

 

$

176

 

 

$

275

 

Education

 

$

441

 

 

$

292

 

Total

 

$

271

 

 

$

269

 

Healthcare Managed Services Employees(7):

 

 

 

 

Total revenues (in thousands)

 

$

21,797

 

 

$

15,069

 

Average number of Healthcare Managed Services employees (for the period)

 

270

 

 

93

 

___________________________

(1)

The non-cash goodwill impairment charges are 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 consulting professionals who provide consulting services and generate revenues based on the number of hours worked.

(3)

Utilization rate for billable consultants is calculated by dividing the number of hours billable consultants worked on client assignments during a period by the total available working hours for 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 billable consultants is calculated by dividing revenues for a period by the number of hours worked on client assignments during the same period.

(5)

The Business Advisory segment includes operations of Huron Eurasia India. Absent the impact of Huron Eurasia India, the average billing rate per hour for the Business Advisory segment would have been $201 and $220 for the three months ended June 30, 2021 and 2020, respectively; and $211 and $222 for the six months ended June 30, 2021 and 2020, respectively.

 

Absent the impact of Huron Eurasia India, Huron's consolidated average billing rate per hour would have been $213 and $207 for the three months ended June 30, 2021 and 2020, respectively; and $209 and $208 for the six months ended June 30, 2021 and 2020, respectively.

(6)

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.

(7)

Consists of employees who manage and provide revenue cycle billing, collections, insurance verification and change integrity services to our healthcare clients.

N/M - Not Meaningful 

HURON CONSULTING GROUP INC.

RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS

TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (8)

(In thousands)

(Unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2021

 

2020

 

2021

 

2020

Revenues

$

230,126

 

 

$

217,857

 

 

$

433,339

 

 

$

440,476

 

Net income (loss) from continuing operations

$

12,797

 

 

$

13,572

 

 

$

18,202

 

 

$

(28,701

)

Add back:

 

 

 

 

 

 

 

Income tax expense (benefit)

3,454

 

 

3,414

 

 

4,990

 

 

(7,801

)

Interest expense, net of interest income

2,029

 

 

2,916

 

 

3,748

 

 

5,257

 

Depreciation and amortization

6,555

 

 

7,527

 

 

13,106

 

 

14,942

 

Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) (8)

24,835

 

 

27,429

 

 

40,046

 

 

(16,303

)

Add back:

 

 

 

 

 

 

 

Restructuring and other charges

861

 

 

109

 

 

1,489

 

 

2,567

 

Litigation and other losses (gains)

?

 

 

?

 

 

42

 

 

(150

)

Goodwill impairment charges

?

 

 

?

 

 

?

 

 

59,816

 

Loss on sale of business

?

 

 

?

 

 

?

 

 

102

 

Transaction-related expenses

(29

)

 

?

 

 

141

 

 

?

 

Foreign currency transaction losses (gains), net

(48

)

 

(81

)

 

355

 

 

439

 

Adjusted EBITDA (8)

$

25,619

 

 

$

27,457

 

 

$

42,073

 

 

$

46,471

 

Adjusted EBITDA as a percentage of revenues (8)

11.1

%

 

12.6

%

 

9.7

%

 

10.6

%

HURON CONSULTING GROUP INC.

RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS

TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (8)

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2021

 

2020

 

2021

 

2020

Net income (loss) from continuing operations

$

12,797

 

 

$

13,572

 

 

$

18,202

 

 

$

(28,701)

 

Weighted average shares - diluted

21,871

 

 

22,116

 

 

22,105

 

 

21,848

 

Diluted earnings (loss) per share from continuing operations

$

0.59

 

 

$

0.61

 

 

$

0.82

 

 

$

(1.31)

 

Add back:

 

 

 

 

 

 

 

Amortization of intangible assets

2,289

 

 

3,194

 

 

4,688

 

 

6,403

 

Restructuring and other charges

861

 

 

109

 

 

1,489

 

 

2,567

 

Litigation and other losses (gains)

?

 

 

?

 

 

42

 

 

(150)

 

Goodwill impairment charges

?

 

 

?

 

 

?

 

 

59,816

 

Loss on sale of business

?

 

 

?

 

 

?

 

 

102

 

Transaction-related expenses

(29)

 

 

?

 

 

141

 

 

?

 

Tax effect of adjustments

(827)

 

 

(1,940)

 

 

(1,685)

 

 

(15,349)

 

Total adjustments, net of tax

2,294

 

 

1,363

 

 

4,675

 

 

53,389

 

Adjusted net income from continuing operations (8)

$

15,091

 

 

$

14,935

 

 

$

22,877

 

 

$

24,688

 

Adjusted weighted average shares - diluted (9)

21,871

 

 

22,116

 

 

22,105

 

 

22,223

 

Adjusted diluted earnings per share from continuing operations (8)

$

0.69

 

 

$

0.68

 

 

$

1.03

 

 

$

1.11

 

(8)

In evaluating the company's financial performance and outlook, management uses earnings (loss) before interest, taxes, depreciation and amortization ("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 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)

As the company reported a net loss for the six months ended June 30, 2020, GAAP diluted weighted average shares outstanding equals the basic weighted average shares outstanding for that period. The non-GAAP adjustments resulted in adjusted net income from continuing operations for the six months ended June 30, 2020. Therefore, dilutive common stock equivalents have been included in the calculation of adjusted diluted weighted average shares outstanding.

 


These press releases may also interest you

at 11:04
Leading biotech beauty brand, Codex Beauty Labs, has been granted two U.S. patents related to its newest skincare line, Antü®. This line of products helps to combat aging caused by a compromised skin barrier. Innovative, plant-based AntüComplex...

at 11:02
Rollick Inc., the leading relationship technology provider for the Marine, Powersports, and RV industries, and Lightspeed, the largest CRM and DMS provider in the recreation industry, today announced the launch of an industry-first partnership....

at 11:01
Housing demand in California tempered for the fourth consecutive month in August as home sales returned to pre-crisis levels, but the statewide median home price set another record high, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today....

at 11:00
FIREWEED ZINC LTD. ("Fireweed") is pleased to announce the results from the second drill hole at Boundary West for the 2021 Macmillan Pass zinc-lead-silver project drill program, Yukon, Canada. Highlights Three distinct zones of...

at 11:00
The Fonds immobilier de solidarité FTQ is teaming up once more with Cloriacité Investissements, this time on CLORIA Trois-Rivières, a commercial and residential rental project consisting of a 5-storey building with 120 apartments and commercial space...

at 11:00
In September, Wealth One Bank of Canada will reach a significant milestone by celebrating its fifth anniversary of operation. Wealth One Bank of Canada ("WealthONE" or the "Bank"), a federally chartered Schedule I Bank regulated by OSFI, and a member...



News published on 29 july 2021 at 16:10 and distributed by: