HURN Huron Consulting Group Inc

• Revenues increased 6.8% to $223.6 million for Q2 2015 from $209.4 million in Q2 2014, and were $411.5 million for the first six months of 2015 compared to $420.1 million for the same period in 2014.
• Operating income increased 6.1% to $36.1 million for Q2 2015 from $34.0 million in Q2 2014, and was $44.9 million for the first six months of 2015 compared to $75.8 million for the same period in 2014.
• Adjusted EBITDA(5), a non-GAAP measure, increased 21.9% to $51.4 million in Q2 2015 from $42.2 million in Q2 2014, and was $71.8 million for the first six months of 2015 compared to $91.3 million for the same period in 2014.
• Diluted earnings per share for Q2 2015 was $0.83 compared to $0.86 in Q2 2014, and was $0.90 for the first six months of 2015 compared to $2.34 for the first six months of 2014.
• Adjusted diluted earnings per share(5), a non-GAAP measure, increased 20.0% to $1.14 in Q2 2015 from $0.95 in Q2 2014, and was $1.43 for the first six months of 2015 compared to $2.06 for the first six months of 2014.
• Company updates full year 2015 revenue guidance to a range of $870.0 million to $900.0 million.

Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced financial results for the second quarter ended June 30, 2015.

“We are pleased with our performance in the second quarter as each of our segments reported solid growth compared to first quarter results,” said James H. Roth, chief executive officer and president, Huron Consulting Group. “Revenue in our legacy healthcare practice gained momentum as work on some of our new engagements continued to progress. Among some of our larger hospital and health system clients, the complexity and level of coordination that is required to successfully achieve our targeted outcomes tend to lengthen the time from assessment through implementation, and we are better positioned for success when the timing and environment are right for our clients. Our updated revenue guidance range reflects the possibility that some healthcare revenues will be recognized in 2016. Accordingly, we have updated our annual revenue guidance to $870.0 to $900.0 million while we have narrowed our earnings guidance for adjusted EPS to the higher end of our initial range to $3.80 to $4.00.”

“Consistent with the strong underlying demand for our services, two of our segments, Education and Life Sciences and Business Advisory, reported record quarterly revenues, and our Legal segment continued to see improvement over recent results,” Roth added.

Second Quarter 2015 Results

Revenues for the second quarter of 2015 were $223.6 million, an increase of 6.8% compared to $209.4 million for the second quarter of 2014. The Company's second quarter 2015 operating income was $36.1 million, an increase of 6.1% compared to $34.0 million in the second quarter of 2014. Net income was $18.8 million, or $0.83 per diluted share, for the second quarter of 2015 compared to $19.9 million, or $0.86 per diluted share, for the same period last year.

Second quarter 2015 earnings before interest, taxes, depreciation and amortization ("EBITDA")(5) was $50.1 million, or 22.4% of revenues, compared to $41.6 million, or 19.9% of revenues, in the comparable quarter last year.

In addition to using EBITDA to evaluate the Company’s financial performance, management uses non-GAAP financial measures, which exclude the effect of the following items (in thousands):

  Three Months Ended June 30, 2015   2014 Amortization of intangible assets $ 8,573 $ 2,912 Restructuring charges $ 597 $ 1,034 Litigation and other (gains) losses $ 750 $ (440 ) Non-cash interest on convertible notes $ 1,775 $ — Tax effect $ (4,596 ) $ (1,402 )

Adjusted EBITDA(5) was $51.4 million, or 23.0% of revenues, in the second quarter of 2015, compared to $42.2 million, or 20.1% of revenues, in the comparable quarter last year. Adjusted net income(5) was $25.9 million, or $1.14 per diluted share, for the second quarter of 2015, compared to $22.0 million, or $0.95 per diluted share, for the comparable period in 2014.

The average number of full-time billable consultants(1) increased 2.4% to 1,826 in the second quarter of 2015 compared to 1,784 in the same quarter last year. Full-time billable consultant utilization rate(2) was 74.5% during the second quarter of 2015 compared to 77.8% during the same period last year. Average billing rate per hour for full-time billable consultants(3) was $239 for the second quarter of 2015 compared to $232 for the second quarter of 2014. The average number of full-time equivalent professionals(4) was 1,109 in the second quarter of 2015 compared to 1,157 for the comparable period in 2014.

Year-to-Date 2015 Results

Revenues for the first six months of 2015 were $411.5 million compared to $420.1 million for the first six months of 2014. The Company's operating income for the first six months of 2015 was $44.9 million compared to $75.8 million in the first six months of 2014. Net income was $20.3 million, or $0.90 per diluted share, for the first six months of 2015 compared to $54.0 million, or $2.34 per diluted share, for the same period last year.

EBITDA(5) was $69.1 million, or 16.8% of revenues, for the first six months of 2015, compared to $90.6 million, or 21.6% of revenues, for the same period in 2014.

In evaluating the Company’s financial performance, management uses non-GAAP financial measures, which exclude the effect of the following items (in thousands):

  Six Months Ended June 30, 2015   2014 Amortization of intangible assets $ 13,655 $ 5,430 Restructuring charges $ 2,187 $ 1,163 Litigation and other (gains) losses $ 524 $ (440 ) Non-cash interest on convertible notes $ 3,529 $ — Tax effect $ (7,819 ) $ (2,461 ) Net tax benefit related to “check-the-box” election $ — $ (10,244 )

Adjusted EBITDA(5) was $71.8 million, or 17.5% of revenues, in the first six months of 2015 compared to $91.3 million, or 21.7% of revenues, in the comparable period last year. Adjusted net income(5) was $32.4 million, or $1.43 per diluted share, for the first six months of 2015 compared to $47.5 million, or $2.06 per diluted share, for the comparable period in 2014.

The average number of full-time billable consultants(1) increased 5.0% to 1,839 in the first six months of 2015 compared to 1,751 in the same period last year. Full-time billable consultant utilization rate(2) was 73.2% during the first six months of 2015 compared with 76.0% during the same period last year. Average billing rate per hour for full-time billable consultants(3) was $229 for the first six months of 2015 compared to $240 for the same period last year. The average number of full-time equivalent professionals(4) was 1,049 in the first six months of 2015 compared to 1,333 in the comparable period of 2014.

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 revenues by operating segment as a percentage of total Company revenues are as follows: Huron Healthcare (53%); Huron Education and Life Sciences (20%); Huron Legal (18%); and Huron Business Advisory, which includes EPM & Analytics, (9%). Financial results by segment are included in the attached schedules and in Huron's forthcoming Form 10-Q filing for the quarter ended June 30, 2015.

Acquisitions

Effective January 1, 2015, Huron completed its acquisition of Sky Analytics, Inc., a Massachusetts-based provider of legal spend management software for corporate law departments.

On February 12, 2015, Huron completed its acquisition of Studer Group®, a premier professional services firm that assists healthcare providers to achieve cultural transformation to deliver and sustain exceptional improvement in clinical outcomes and financial results.

On July 1, 2015, Huron completed its acquisition of the India affiliate (Rittman Mead India) of Rittman Mead Consulting Ltd., a data and analytics consulting firm that specializes in the implementation of enterprise performance management (EPM) and analytics systems.

Outlook for 2015(6)

Based on currently available information, the Company updates guidance for full year 2015 revenues before reimbursable expenses to a range of $870.0 million to $900.0 million. The Company also narrowed its previously issued earnings guidance to the upper end and now anticipates EBITDA in a range of $172.2 million to $180.2 million, Adjusted EBITDA in a range of $176.0 million to $184.0 million, GAAP diluted earnings per share in a range of $2.75 to $2.95, and non-GAAP Adjusted diluted earnings per share in a range of $3.80 to $4.00.

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

Second Quarter 2015 Webcast

The Company will host a webcast to discuss its financial results today, July 28, 2015, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time). The conference call is being webcast by NASDAQ OMX and can be accessed at Huron Consulting Group’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(5)

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 believes that such measures, as supplements to operating income, net income, and diluted earnings per share, and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of the Company's core operating results and future prospects. 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.

About Huron Consulting Group

Huron Consulting Group helps clients in diverse industries improve performance, transform the enterprise, reduce costs, leverage technology, process and review large amounts of complex data, address regulatory changes, recover from distress and stimulate growth. Our professionals employ their expertise in finance, operations, strategy, analytics, and technology to provide our clients with specialized analyses and customized advice and solutions that are tailored to address each client's particular challenges and opportunities to deliver sustainable and measurable results. The Company provides consulting services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, leading academic institutions, Fortune 500 companies, governmental entities and law firms. Huron has worked with more than 450 health systems, hospitals, and academic medical centers; more than 400 corporate general counsel; and more than 400 universities and research institutions. 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 requirements and needs, 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” or “continues.” These forward-looking statements reflect our current expectations about our 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 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 our Annual Report on Form 10-K for the year ended December 31, 2014, 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. We disclaim 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 EARNINGS (In thousands, except per share amounts) (Unaudited)     Three Months Ended Six Months Ended June 30, June 30, 2015   2014 2015   2014 Revenues and reimbursable expenses: Revenues $ 223,644 $ 209,405 $ 411,497 $ 420,136 Reimbursable expenses 21,389   21,141   38,544   40,244   Total revenues and reimbursable expenses 245,033 230,546 450,041 460,380 Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses): Direct costs 125,490 124,289 250,491 247,899 Amortization of intangible assets and software development costs 4,969 1,290 7,481 2,391 Reimbursable expenses 21,470   20,899   38,723   40,330   Total direct costs and reimbursable expenses 151,929   146,478   296,695   290,620   Operating expenses and other operating (gains) losses: Selling, general and administrative expenses 46,665 43,184 88,998 80,872 Restructuring charges 597 1,034 2,187 1,163 Litigation and other (gains) losses 750 (440 ) 524 (440 ) Depreciation and amortization 9,000   6,267   16,777   12,323   Total operating expenses and other operating (gains) losses 57,012   50,045   108,486   93,918   Operating income 36,092 34,023 44,860 75,842 Other income (expense), net: Interest expense, net of interest income (4,764 ) (1,594 ) (9,158 ) (2,965 ) Other income (expense), net 167   169   (560 ) 345   Total other expense, net (4,597 ) (1,425 ) (9,718 ) (2,620 ) Income before income tax expense 31,495 32,598 35,142 73,222 Income tax expense 12,662   12,685   14,807   19,183   Net income $ 18,833   $ 19,913   $ 20,335   $ 54,039   Earnings per share: Basic $ 0.85 $ 0.88 $ 0.92 $ 2.39 Diluted $ 0.83 $ 0.86 $ 0.90 $ 2.34 Weighted average shares used in calculating earnings per share: Basic 22,220 22,645 22,174 22,617 Diluted 22,654 23,098 22,628 23,092 HURON CONSULTING GROUP INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited)     June 30, December 31, 2015 2014 Assets Current assets: Cash and cash equivalents $ 16,828 $ 256,872 Receivables from clients, net 118,013 98,640 Unbilled services, net 96,248 91,392 Income tax receivable 5,067 8,125 Deferred income taxes, net 13,481 14,772 Prepaid expenses and other current assets 20,598   16,358   Total current assets 270,235 486,159 Property and equipment, net 49,098 44,677 Long-term investment 22,050 12,250 Other non-current assets 25,589 20,998 Intangible assets, net 110,428 24,684 Goodwill 807,107   567,146   Total assets $ 1,284,507   $ 1,155,914   Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 8,773 $ 11,085 Accrued expenses 21,606 17,315 Accrued payroll and related benefits 58,932 106,488 Current maturities of long-term debt — 28,750 Deferred revenues 23,828   12,738   Total current liabilities 113,139 176,376 Non-current liabilities: Deferred compensation and other liabilities 16,526 10,838 Long-term debt, net of current portion 467,630 327,852 Deferred lease incentives 13,308 13,359 Deferred income taxes, net 47,893   26,855   Total non-current liabilities 545,357 378,904 Commitments and contingencies Stockholders’ equity Common stock; $0.01 par value; 500,000,000 shares authorized; 25,135,647 and 24,976,395 shares issued at June 30, 2015 and December 31, 2014, respectively 243 241 Treasury stock, at cost, 2,189,815 and 2,097,173 shares at June 30, 2015 and December 31, 2014, respectively (100,205 ) (94,074 ) Additional paid-in capital 449,091 442,308 Retained earnings 275,149 254,814 Accumulated other comprehensive income (loss) 1,733   (2,655 ) Total stockholders’ equity 626,011   600,634   Total liabilities and stockholders’ equity $ 1,284,507   $ 1,155,914   HURON CONSULTING GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)   Six Months Ended June 30, 2015   2014 Cash flows from operating activities: Net income $ 20,335 $ 54,039

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 24,431 15,071 Share-based compensation 11,776 10,273 Amortization of debt discount and issuance costs 4,663 677 Allowances for doubtful accounts and unbilled services (1,034 ) (281 ) Deferred income taxes 3,191 5,816 Changes in operating assets and liabilities, net of acquisitions: (Increase) decrease in receivables from clients (7,550 ) (4,679 ) (Increase) decrease in unbilled services (824 ) (37,220 ) (Increase) decrease in current income tax receivable / payable, net 3,106 (13,966 ) (Increase) decrease in other assets (4,125 ) 3,812 Increase (decrease) in accounts payable and accrued liabilities 2,863 10,517 Increase (decrease) in accrued payroll and related benefits (47,114 ) (32,764 ) Increase (decrease) in deferred revenues 8,613   904  

Net cash provided by operating activities

18,331   12,199   Cash flows from investing activities: Purchases of property and equipment, net (9,869 ) (11,433 ) Investment in life insurance policies (5,127 ) (797 ) Purchases of businesses (331,990 ) (51,391 ) Purchases of convertible debt investment (3,138 ) — Capitalization of internally developed software costs (398 ) — Proceeds from note receivable —   328   Net cash used in investing activities (350,522 ) (63,293 ) Cash flows from financing activities: Proceeds from exercise of stock options — 779 Shares redeemed for employee tax withholdings (4,650 ) (3,140 ) Tax benefit from share-based compensation 2,823 4,602 Share repurchases (13,498 ) (9,539 ) Proceeds from borrowings under credit facility 256,500 74,000 Repayments on credit facility (149,000 ) (64,000 ) Payments for debt issue costs — (41 ) Payments for capital lease obligations (34 ) (42 ) Deferred acquisition payment —   (471 ) Net cash provided by financing activities 92,141   2,148   Effect of exchange rate changes on cash 6 33 Net decrease in cash and cash equivalents (240,044 ) (48,913 ) Cash and cash equivalents at beginning of the period 256,872   58,131   Cash and cash equivalents at end of the period $ 16,828   $ 9,218   HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (Unaudited)     Three Months EndedJune 30,

PercentIncrease(Decrease)

Segment and Consolidated Operating Results (in thousands): 2015   2014 Huron Healthcare: Revenues $ 118,506 $ 100,967 17.4% Operating income $ 45,531 $ 38,475 18.3% Segment operating income as a percentage of segment revenues 38.4 % 38.1 % Huron Education and Life Sciences: Revenues $ 42,939 $ 37,747 13.8% Operating income $ 13,174 $ 11,633 13.2% Segment operating income as a percentage of segment revenues 30.7 % 30.8 % Huron Legal: Revenues $ 39,626 $ 53,296 (25.6)% Operating income $ 10,285 $ 15,790 (34.9)% Segment operating income as a percentage of segment revenues 26.0 % 29.6 % Huron Business Advisory: Revenues $ 22,186 $ 16,574 33.9% Operating income $ 6,684 $ 5,129 30.3% Segment operating income as a percentage of segment revenues 30.1 % 30.9 % All Other: Revenues $ 387 $ 821 (52.9)% Operating loss $ (530 ) $ (520 ) 1.9% Segment operating loss as a percentage of segment revenues N/M N/M Total Company: Revenues $ 223,644 $ 209,405 6.8% Reimbursable expenses 21,389   21,141   1.2% Total revenues and reimbursable expenses $ 245,033   $ 230,546   6.3% Statements of Earnings reconciliation: Segment operating income $ 75,144 $ 70,507 6.6% Items not allocated at the segment level: Other operating expenses and gains 30,052 30,217 (0.5)% Depreciation and amortization expense 9,000   6,267   43.6% Total operating income 36,092 34,023 6.1% Other expense, net 4,597   1,425   222.6% Income before income tax expense $ 31,495   $ 32,598   (3.4)% Other Operating Data (excluding All Other): Number of full-time billable consultants (at period end) (1): Huron Healthcare 1,087 1,114 (2.4)% Huron Education and Life Sciences 428 407 5.2% Huron Legal 98 124 (21.0)% Huron Business Advisory 204   172   18.6% Total 1,817 1,817 —% Average number of full-time billable consultants (for the period) (1): Huron Healthcare 1,090 1,071 Huron Education and Life Sciences 427 415 Huron Legal 103 129 Huron Business Advisory 206   169   Total 1,826 1,784 HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED) (Unaudited)   Three Months Ended June 30, Other Operating Data (continued): 2015   2014 Full-time billable consultant utilization rate (2): Huron Healthcare 75.8 % 81.7 % Huron Education and Life Sciences 76.0 % 71.8 % Huron Legal 53.0 % 68.0 % Huron Business Advisory 75.1 % 75.3 % Total 74.5 % 77.8 % Full-time billable consultant average billing rate per hour (3): Huron Healthcare $ 230 $ 229 Huron Education and Life Sciences $ 237 $ 225 Huron Legal $ 243 $ 251 Huron Business Advisory $ 292 $ 257 Total $ 239 $ 232 Revenue per full-time billable consultant (in thousands): Huron Healthcare $ 82 $ 88 Huron Education and Life Sciences $ 86 $ 75 Huron Legal $ 59 $ 80 Huron Business Advisory $ 104 $ 94 Total $ 84 $ 85 Average number of full-time equivalents (for the period) (4): Huron Healthcare 188 58 Huron Education and Life Sciences 33 44 Huron Legal 880 1,048 Huron Business Advisory 8   7   Total 1,109 1,157 Revenue per full-time equivalent (in thousands): Huron Healthcare $ 156 $ 115 Huron Education and Life Sciences $ 183 $ 146 Huron Legal $ 38 $ 41 Huron Business Advisory $ 95 $ 104 Total $ 63 $ 49

HURON CONSULTING GROUP INC.

SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA

(Unaudited)

    Six Months EndedJune 30,

PercentIncrease(Decrease)

Segment and Consolidated Operating Results (in thousands): 2015   2014 Huron Healthcare: Revenues $ 216,510 $ 208,515 3.8% Operating income $ 74,511 $ 89,695 (16.9)% Segment operating income as a percentage of segment revenues 34.4 % 43.0 % Huron Education and Life Sciences: Revenues $ 82,836 $ 71,323 16.1% Operating income $ 24,954 $ 18,080 38.0% Segment operating income as a percentage of segment revenues 30.1 % 25.3 % Huron Legal: Revenues $ 73,053 $ 108,271 (32.5)% Operating income $ 13,877 $ 28,278 (50.9)% Segment operating income as a percentage of segment revenues 19.0 % 26.1 % Huron Business Advisory: Revenues $ 37,924 $ 29,956 26.6% Operating income $ 8,283 $ 7,684 7.8% Segment operating income as a percentage of segment revenues 21.8 % 25.7 % All Other: Revenues $ 1,174 $ 2,071 (43.3)% Operating loss $ (1,522 ) $ (978 ) 55.6% Segment operating loss as a percentage of segment revenues N/M N/M Total Company: Revenues $ 411,497 $ 420,136 (2.1)% Reimbursable expenses 38,544   40,244   (4.2)% Total revenues and reimbursable expenses $ 450,041   $ 460,380   (2.2)% Statements of Earnings reconciliation: Segment operating income $ 120,103 $ 142,759 (15.9)% Items not allocated at the segment level: Other operating expenses and gains 58,466 54,594 7.1% Depreciation and amortization expense 16,777   12,323   36.1% Total operating income 44,860 75,842 (40.9)% Other expense, net 9,718   2,620   270.9% Income before income tax expense $ 35,142   $ 73,222   (52.0)% Other Operating Data (excluding All Other): Number of full-time billable consultants (at period end) (1): Huron Healthcare 1,087 1,114 (2.4)% Huron Education and Life Sciences 428 407 5.2% Huron Legal 98 124 (21.0)% Huron Business Advisory 204   172   18.6% Total 1,817 1,817 —% Average number of full-time billable consultants (for the period) (1): Huron Healthcare 1,099 1,028 Huron Education and Life Sciences 425 424 Huron Legal 109 134 Huron Business Advisory 206   165   Total 1,839 1,751 HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED) (Unaudited)   Six Months Ended June 30, Other Operating Data (continued): 2015   2014 Full-time billable consultant utilization rate (2):   Huron Healthcare 74.1 % 80.4 % Huron Education and Life Sciences 76.2 % 70.0 % Huron Legal 52.9 % 66.2 % Huron Business Advisory 72.4 % 72.0 % Total 73.2 % 76.0 % Full-time billable consultant average billing rate per hour (3): Huron Healthcare $ 221 $ 249 Huron Education and Life Sciences $ 231 $ 213 Huron Legal $ 246 $ 241 Huron Business Advisory $ 261 $ 248 Total $ 229 $ 240 Revenue per full-time billable consultant (in thousands): Huron Healthcare $ 153 $ 190 Huron Education and Life Sciences $ 168 $ 140 Huron Legal $ 119 $ 146 Huron Business Advisory $ 179 $ 173 Total $ 157 $ 173 Average number of full-time equivalents (for the period) (4): Huron Healthcare 159 55 Huron Education and Life Sciences 35 42 Huron Legal 849 1,229 Huron Business Advisory 6   7   Total 1,049 1,333 Revenue per full-time equivalent (in thousands): Huron Healthcare $ 302 $ 243 Huron Education and Life Sciences $ 330 $ 285 Huron Legal $ 71 $ 72 Huron Business Advisory $ 184 $ 187 Total $ 115 $ 86   (1)   Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked. (2) Utilization rate for our full-time billable consultants is calculated by dividing the number of hours all 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. (3) Average billing rate per hour for our full-time billable consultants is calculated by dividing revenues for a period by the number of hours worked on client assignments during the same period. (4) Consists of consultants who work variable schedules as needed by our clients, as well as other professionals who generate revenues primarily based on number of hours worked and units produced, such as pages reviewed and data processed. Also includes our cultural transformation consultants from the Studer Group acquisition, which include coaches and their support staff, and full-time employees who provide software support and maintenance services to our clients.

N/M - Not meaningful

HURON CONSULTING GROUP INC. RECONCILIATION OF NET INCOME TO

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (5)

(In thousands) (Unaudited)     Three Months Ended Six Months Ended June 30, June 30, 2015   2014 2015   2014 Revenues $ 223,644   $ 209,405   $ 411,497   $ 420,136   Net income $ 18,833 $ 19,913 $ 20,335 $ 54,039 Add back: Income tax expense 12,662 12,685 14,807 19,183 Interest and other expenses 4,597 1,425 9,718 2,620 Depreciation and amortization 13,969   7,557   24,258   14,714   Earnings before interest, taxes, depreciation and amortization (EBITDA) (5) 50,061 41,580 69,118 90,556 Add back: Restructuring charges 597 1,034 2,187 1,163 Litigation and other (gains) losses 750   (440 ) 524   (440 ) Adjusted EBITDA (5) $ 51,408   $ 42,174   $ 71,829   $ 91,279   Adjusted EBITDA as a percentage of revenues (5) 23.0 % 20.1 % 17.5 % 21.7 %

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (5)

(In thousands) (Unaudited)     Three Months Ended Six Months Ended June 30, June 30, 2015   2014 2015   2014 Net income $ 18,833   $ 19,913   $ 20,335   $ 54,039   Weighted average shares – diluted 22,654 23,098 22,628 23,092 Diluted earnings per share $ 0.83   $ 0.86   $ 0.90   $ 2.34   Add back: Amortization of intangible assets 8,573 2,912 13,655 5,430 Restructuring charges 597 1,034 2,187 1,163 Litigation and other (gains) losses 750 (440 ) 524 (440 ) Non-cash interest on convertible notes 1,775 — 3,529 — Tax effect (4,596 ) (1,402 ) (7,819 ) (2,461 ) Net tax benefit related to “check-the-box” election —   —   —   (10,244 ) Total adjustments, net of tax 7,099   2,104   12,076   (6,552 ) Adjusted net income (5) $ 25,932   $ 22,017   $ 32,411   $ 47,487   Adjusted diluted earnings per share (5) $ 1.14   $ 0.95   $ 1.43   $ 2.06   (5)   In evaluating the Company’s financial performance, 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. Our management uses these non-GAAP financial measures to gain an understanding of our 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 our ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing our business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. We believe 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. HURON CONSULTING GROUP INC. RECONCILIATION OF NON-GAAP MEASURES FOR FULL YEAR 2015 OUTLOOK   RECONCILIATION OF NET INCOME TO

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (6)

(In millions) (Unaudited)   Year Ending December 31, 2015 Guidance Range Low   High Projected revenues - GAAP $ 870.0   $ 900.0   Projected net income - GAAP $ 61.5 $ 66.5 Add back: Income tax expense 42.0 45.0 Interest and other expenses 18.0 18.0 Depreciation and amortization 50.7   50.7   Projected earnings before interest, taxes, depreciation and amortization (EBITDA) (6) 172.2 180.2 Add back: Restructuring charges 4.0 4.0 Other gain (0.2 ) (0.2 ) Projected adjusted EBITDA (6) $ 176.0   $ 184.0   Projected adjusted EBITDA as a percentage of projected revenues (6) 20.2 % 20.4 % RECONCILIATION OF NET INCOME

TO ADJUSTED NET INCOME (6)

(In millions) (Unaudited)   Year Ending December 31, 2015 Guidance Range Low   High Projected net income - GAAP $ 61.5   $ 66.5   Projected diluted earnings per share - GAAP $ 2.75   $ 2.95   Add back: Amortization of intangible assets 30.2 30.2 Restructuring charges 4.0 4.0 Other gain (0.2 ) (0.2 ) Non-cash interest on convertible notes 7.0 7.0 Tax effect (16.5 ) (16.5 ) Total adjustments, net of tax 24.5 24.5 Projected adjusted net income (6) $ 86.0   $ 91.0   Projected adjusted diluted earnings per share (6) $ 3.80   $ 4.00   (6)   In evaluating the Company’s outlook, management uses Projected EBITDA, Projected adjusted EBITDA, Projected adjusted EBITDA as a percentage of revenues, Projected adjusted net income, and Projected adjusted diluted earnings per share, which are non-GAAP measures. Management believes that the use of such measures, as supplements to Projected net income and Projected diluted earnings per share, and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of the Company’s core operating results and future prospects without the effect of non-cash or other one-time items. 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.

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Huron Consulting Group Inc.Media Contact:Jenna Nichols, 312-880-5693jnichols@huronconsultinggroup.comorInvestor Contact:C. Mark Hussey or John Kelly, 312-583-8722investor@huronconsultinggroup.com