- Revenues increased 4.6% to $188.8
million in Q1 2017 compared to $180.5 million in Q1 2016.
- Net income from continuing operations
was $5.2 million in Q1 2017 compared to $6.9 million in Q1
2016.
- Adjusted EBITDA(5), a non-GAAP measure,
was $27.1 million in Q1 2017 compared to $26.6 million in Q1
2016.
- Diluted earnings per share from
continuing operations was $0.24 in Q1 2017 compared to $0.32 in Q1
2016.
- Adjusted diluted earnings per share
from continuing operations(5), a non-GAAP measure, was $0.55 in Q1
2017 compared to $0.62 in Q1 2016.
- Huron updates its previously released
net income and diluted earnings per share guidance for full year
2017 in a range of $24.0 million to $31.0 million and $1.10 to
$1.40, respectively, and affirms its previously released revenue,
adjusted EBITDA(6), and adjusted diluted earnings per share(6)
guidance for full year 2017 in a range of $750.0 million to $790.0
million, $112.5 million to $124.5 million, and $2.40 to $2.70,
respectively.
Global professional services firm Huron (NASDAQ: HURN) today
announced financial results from continuing operations for the
first quarter ended March 31, 2017.
"As we expected, our Education and Life Sciences and Business
Advisory segments achieved strong results in the first quarter,
while our Healthcare segment remained challenged," said James H.
Roth, chief executive officer and president of Huron.
"We are confident that the foundation we have built to serve our
clients, rooted in diverse capabilities and deep industry
expertise, supports their need to respond to the market disruption
and regulatory changes they face and will result in sustained
growth over time," added Roth.
FIRST QUARTER 2017 RESULTS FROM CONTINUING OPERATIONS
Revenues increased 4.6% to $188.8 million for the first quarter
of 2017 compared to $180.5 million for the first quarter of 2016.
First quarter 2017 revenues included $12.8 million from Huron's
acquisitions of Healthcare Services Management, Inc., Pope Woodhead
and Associates ("Pope Woodhead"), and Innosight Holdings LLC
("Innosight"), all of which were completed subsequent to the first
quarter of 2016, and $0.3 million of incremental revenues due to
the full quarter impact of the acquisition of MyRounding Solutions,
LLC. First quarter 2017 revenues also included revenues from the
acquisition of the U.S. assets of ADI Strategies, Inc. ("ADI
Strategies"), which was completed subsequent to the first quarter
of 2016 and has since been fully integrated into the Business
Advisory segment. Net income from continuing operations was $5.2
million, or $0.24 per diluted share, for the first quarter of 2017
compared to $6.9 million, or $0.32 per diluted share, for the same
period last year.
First quarter 2017 earnings before interest, taxes, depreciation
and amortization ("EBITDA")(5) increased 4.5% to $26.8 million, or
14.2% of revenues, compared to $25.6 million, or 14.2% of revenues,
in the comparable quarter last year.
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
March 31, 2017 2016 Restructuring
charges $ 279 $ 1,333 Other non-operating expense (income), net $
17 $ (347 ) Amortization of intangible assets $ 8,652 $ 7,445
Non-cash interest on convertible notes $ 1,928 $ 1,839 Tax effect $
(4,192 ) $ (4,172 )
Adjusted EBITDA(5) was $27.1 million, or 14.4% of revenues, in
the first quarter of 2017, compared to $26.6 million, or 14.8% of
revenues, in the comparable quarter last year. Adjusted net income
from continuing operations(5) was $11.8 million, or $0.55 per
diluted share, for the first quarter of 2017, compared to $13.3
million, or $0.62 per diluted share, for the comparable period in
2016.
The average number of full-time billable consultants(1)
increased 7.4% to 1,965 in the first quarter of 2017 compared to
1,829 in the same quarter last year. Full-time billable consultant
utilization rate(2) was 73.9% during the first quarter of 2017
compared to 76.6% during the same period last year. Average billing
rate per hour for full-time billable consultants(3) was $216 for
the first quarter of 2017 compared to $214 for the first quarter of
2016. The average number of full-time equivalent professionals(4)
was 276 in the first quarter of 2017 compared to 245 for the
comparable period in 2016.
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 2017 revenues by operating segment as
a percentage of total company revenues are as follows: Healthcare
(52%); Education and Life Sciences (28%); and Business Advisory
(20%). 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 March 31, 2017.
ACQUISITIONS
On Jan. 9, 2017, Huron completed its acquisition of Pope
Woodhead, a U.K.-based consulting firm providing market access
capabilities to assist clients in developing value propositions for
innovative medicines and technologies. The acquisition expands
Huron's life sciences strategy expertise and strengthens its
ability to lead clients through complex payer and regulatory
environments. Pope Woodhead's results of operations have been
included in Huron's consolidated financial statements and the
results of operations of the Education and Life Sciences segment
from the date of acquisition.
On March 1, 2017, Huron completed its acquisition of Innosight,
a growth strategy firm focused on helping companies navigate
disruptive change, enable innovation, and manage strategic
transformation. Together with Innosight, Huron will use its
strategic, operational, and technology capabilities to help clients
across multiple industries develop pioneering solutions to address
disruption and achieve sustained growth. Innosight's results of
operations have been included in Huron's consolidated financial
statements and the results of operations of the Business Advisory
segment from the date of acquisition.
On April 1, 2017, Huron completed its acquisition of the
international assets of ADI Strategies in Dubai and India. Huron
acquired the U.S. assets of ADI Strategies in the second quarter of
2016. ADI Strategies is a leading enterprise performance
management, risk management and business intelligence firm. The
acquisition strengthens Huron's technology and analytics
competencies and expands its global reach. The international
results of operations of ADI Strategies will be included in Huron's
consolidated financial statements and the results of operations of
the Business Advisory segment from the date of acquisition.
OUTLOOK FOR 2017(6)
Based on currently available information, the company affirmed
its revenue, adjusted EBITDA, and non-GAAP adjusted earnings
guidance, which was previously announced on Feb. 16, 2017. However,
the company updated its EBITDA and GAAP earnings guidance to adjust
for amortization expense associated with the acquisitions that were
completed during the first quarter of 2017 and to reflect the
estimated costs of restructuring activities.
As such, the company's guidance for full year 2017 is as
follows: revenues before reimbursable expenses in a range of $750.0
million to $790.0 million, net income in a range of $24.0 million
to $31.0 million, EBITDA in a range of $110.0 million to $122.0
million, adjusted EBITDA in a range $112.5 million to $124.5
million, GAAP diluted earnings per share in a range of $1.10 to
$1.40, 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.
FIRST QUARTER 2017 WEBCAST
The company will host a webcast to discuss its financial results
today, May 1, 2017, at 7:30 a.m. Eastern Time (6:30 a.m. Central
Time). The conference call is being webcast by NASDAQ OMX and can
be accessed at 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(5)
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 from continuing
operations, and adjusted diluted earnings per share from continuing
operations, 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.
ABOUT HURON
Huron is a global professional services firm committed to
achieving sustainable results in partnership with its clients. The
company brings depth of expertise in strategy, technology,
operations, advisory services and analytics to drive lasting and
measurable results in the healthcare, higher education, life
sciences and commercial sectors. Through focus, passion and
collaboration, Huron provides guidance to support organizations as
they contend with the change transforming their industries and
businesses. 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,” “continues,” or
“outlook” or similar expressions. 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, 2016, 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 AND OTHER COMPREHENSIVE INCOME (In
thousands, except per share amounts) (Unaudited)
Three Months Ended March 31, 2017
2016 Revenues and reimbursable expenses:
Revenues $ 188,849 $ 180,489 Reimbursable expenses 16,950
16,561 Total revenues and reimbursable expenses 205,799
197,050
Direct costs and reimbursable expenses (exclusive of
depreciation and amortization shown in operating expenses): Direct
costs 115,741 111,857 Amortization of intangible assets and
software development costs 2,986 3,386 Reimbursable expenses 16,869
16,627 Total direct costs and reimbursable expenses
135,596 131,870
Operating expenses: Selling,
general and administrative expenses 46,856 42,057 Restructuring
charges 279 1,333 Depreciation and amortization 8,919 7,414
Total operating expenses 56,054 50,804
Operating income 14,149 14,376
Other income (expense), net:
Interest expense, net of interest income (4,004 ) (3,971 ) Other
income, net 758 471 Total other expense, net (3,246 )
(3,500 ) Income from continuing operations before income tax
expense 10,903 10,876 Income tax expense 5,748 4,010
Net income from continuing operations 5,155 6,866 Income (loss)
from discontinued operations, net of tax 143 (864 ) Net
income $ 5,298 $ 6,002 Net earnings per basic share:
Net income from continuing operations $ 0.24 $ 0.33 Income (loss)
from discontinued operations, net of tax 0.01 (0.05 ) Net
income $ 0.25 $ 0.28 Net earnings per diluted share:
Net income from continuing operations $ 0.24 $ 0.32 Income (loss)
from discontinued operations, net of tax 0.01 (0.04 ) Net
income $ 0.25 $ 0.28 Weighted average shares used in
calculating earnings per share: Basic 21,239 21,114 Diluted 21,474
21,460
Comprehensive income: Net income $ 5,298 $ 6,002
Foreign currency translation adjustments, net of tax 424 21
Unrealized gain on investment, net of tax 1,777 1,472 Unrealized
gain (loss) on cash flow hedging instruments, net of tax 45
(114 ) Other comprehensive income 2,246 1,379
Comprehensive income $ 7,544 $ 7,381
HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS (In thousands, except share
and per share amounts) (Unaudited)
March 31, December 31, 2017 2016
Assets Current assets: Cash and cash equivalents $ 12,667 $
17,027 Receivables from clients, net 96,262 94,246 Unbilled
services, net 67,540 51,290 Income tax receivable 5,626 4,211
Prepaid expenses and other current assets 14,690 13,308
Total current assets 196,785 180,082 Property and equipment,
net 36,067 32,434 Long-term investment 37,569 34,675 Other
non-current assets 26,652 24,814 Intangible assets, net 97,469
81,348 Goodwill 897,752 799,862 Total assets $
1,292,294 $ 1,153,215
Liabilities and
stockholders’ equity Current liabilities: Accounts payable $
9,426 $ 7,273 Accrued expenses 24,342 19,788 Accrued payroll and
related benefits 39,988 82,669 Accrued contingent consideration for
business acquisitions 8,263 1,985 Deferred revenues 24,005
24,053 Total current liabilities 106,024 135,768 Non-current
liabilities: Deferred compensation and other liabilities 25,379
24,171 Accrued contingent consideration for business acquisitions,
net of current portion 15,101 6,842 Long-term debt 422,297 292,065
Deferred lease incentives 12,477 10,703 Deferred income taxes, net
45,359 35,633 Total non-current liabilities 520,613
369,414
Commitments and contingencies Stockholders’
equity Common stock; $0.01 par value; 500,000,000 shares
authorized; 24,487,820 and 24,126,118 shares issued at March 31,
2017 and December 31, 2016, respectively 240 235 Treasury stock, at
cost, 2,364,699 and 2,408,343 shares at March 31, 2017 and December
31, 2016, respectively (117,813 ) (113,195 ) Additional paid-in
capital 421,023 405,895 Retained earnings 356,346 351,483
Accumulated other comprehensive income 5,861 3,615
Total stockholders’ equity 665,657 648,033 Total
liabilities and stockholders’ equity $ 1,292,294 $ 1,153,215
HURON CONSULTING GROUP INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited) Three Months Ended March
31, 2017 2016 Cash flows from operating
activities: Net income $ 5,298 $ 6,002 Adjustments to reconcile
net income to net cash used in operating activities: Depreciation
and amortization 11,931 10,799 Share-based compensation 3,939 5,208
Amortization of debt discount and issuance costs 2,482 2,367
Allowances for doubtful accounts and unbilled services 1,346 2,418
Deferred income taxes 7,316 7,191 Changes in operating assets and
liabilities, net of acquisitions: (Increase) decrease in
receivables from clients 6,663 14,834 (Increase) decrease in
unbilled services (14,282 ) (19,363 ) (Increase) decrease in
current income tax receivable / payable, net (2,026 ) (8,247 )
(Increase) decrease in other assets (828 ) 10,983 Increase
(decrease) in accounts payable and accrued liabilities 4,701 (3,960
) Increase (decrease) in accrued payroll and related benefits
(43,317 ) (37,451 ) Increase (decrease) in deferred revenues (1,615
) 198 Net cash used in operating activities (18,392 ) (9,021
)
Cash flows from investing activities: Purchases of
property and equipment, net (6,503 ) (1,980 ) Investment in life
insurance policies (133 ) (866 ) Purchases of businesses, net of
cash acquired (101,817 ) (14,000 ) Capitalization of internally
developed software costs (265 ) (252 ) Proceeds from note
receivable 177 — Net cash used in investing
activities (108,541 ) (17,098 )
Cash flows from financing
activities: Proceeds from exercise of stock options — 123
Shares redeemed for employee tax withholdings (4,181 ) (4,377 )
Share repurchases — (55,265 ) Proceeds from borrowings under credit
facility 179,000 70,500 Repayments on credit facility (51,000 )
(30,000 ) Payments for debt issuance costs (395 ) — Payment of
contingent consideration liabilities (873 ) — Net cash
provided by (used in) financing activities 122,551 (19,019 )
Effect of exchange rate changes on cash 22 158 Net decrease in cash
and cash equivalents (4,360 ) (44,980 ) Cash and cash equivalents
at beginning of the period 17,027 58,437 Cash and
cash equivalents at end of the period $ 12,667 $ 13,457
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited) Three Months EndedMarch
31, Percent
Increase
(Decrease)
Segment and Consolidated Operating Results (in thousands):
2017 2016 Healthcare: Revenues $ 98,452
$ 114,018 (13.7 )% Operating income $ 34,150 $ 39,006 (12.4 )%
Segment operating income as a percentage of segment revenues 34.7 %
34.2 %
Education and Life Sciences: Revenues $ 52,485 $
43,238 21.4 % Operating income $ 15,579 $ 10,208 52.6 % Segment
operating income as a percentage of segment revenues 29.7 % 23.6 %
Business Advisory: Revenues $ 37,912 $ 23,233 63.2 %
Operating income $ 5,802 $ 2,699 115.0 % Segment operating income
as a percentage of segment revenues 15.3 % 11.6 %
Total
Company: Revenues $ 188,849 $ 180,489 4.6 % Reimbursable
expenses 16,950 16,561 2.3 %
Total revenues and
reimbursable expenses $ 205,799 $ 197,050 4.4 %
Statements of Earnings reconciliation: Segment operating
income $ 55,531 $ 51,913 7.0 % Items not allocated at the segment
level: Other operating expenses 32,463 30,123 7.8 % Depreciation
and amortization 8,919 7,414 20.3 % Total operating
income 14,149 14,376 (1.6 )% Other expense, net 3,246 3,500
(7.3 )%
Income from continuing operations before income
tax expense $ 10,903 $ 10,876 0.2 %
Other
Operating Data (excluding All Other): Number of full-time
billable consultants (at period end) (1):
Healthcare 857 1,023 (16.2 )% Education and Life Sciences 604 497
21.5 % Business Advisory 554 322 72.0 % Total 2,015
1,842 9.4 %
Average number of full-time billable consultants
(for the period) (1): Healthcare 867 1,026
Education and Life Sciences 595 487 Business Advisory 503
316 Total 1,965 1,829
HURON CONSULTING GROUP
INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(CONTINUED) (Unaudited) Three Months
Ended March 31, Other Operating Data (continued):
2017 2016 Full-time billable consultant
utilization rate (2): Healthcare 72.3 % 80.5 %
Education and Life Sciences 73.3 % 71.4 % Business Advisory 77.0 %
72.0 % Total 73.9 % 76.6 %
Full-time billable consultant average
billing rate per hour (3): Healthcare $ 228 $ 213
Education and Life Sciences $ 228 $ 227 Business Advisory $ 184 $
199 Total $ 216 $ 214
Revenue per full-time billable consultant
(in thousands): Healthcare $ 76 $ 82 Education and Life
Sciences $ 78 $ 79 Business Advisory $ 72 $ 71 Total $ 76 $ 79
Average number of full-time equivalents (for the period)
(4): Healthcare 216 199 Education and Life Sciences
41 39 Business Advisory 19 7 Total 276 245
Revenue
per full-time equivalent (in thousands): Healthcare $ 150 $ 151
Education and Life Sciences $ 145 $ 123 Business Advisory $ 104 $
126 Total $ 146 $ 146
________________
(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 cultural transformation consultants
within our Studer Group solution, which include coaches and their
support staff, consultants who work variable schedules as needed by
our clients, and full-time employees who provide software support
and maintenance services to our clients.
HURON CONSULTING
GROUP INC. RECONCILIATION OF NET INCOME FROM CONTINUING
OPERATIONS
TO ADJUSTED EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION (5)
(In thousands) (Unaudited) Three
Months Ended March 31, 2017 2016
Revenues $ 188,849 $ 180,489 Net
income from continuing operations $ 5,155 $ 6,866 Add
back: Income tax expense 5,748 4,010 Interest expense, net of
interest income 4,004 3,971 Depreciation and amortization 11,905
10,800
Earnings before interest, taxes,
depreciation and amortization (EBITDA) (5) 26,812 25,647
Add back: Restructuring charges 279 1,333 Other non-operating
expense (income), net 17 (347 )
Adjusted EBITDA
(5) $ 27,108 $ 26,633
Adjusted EBITDA as a percentage of revenues (5) 14.4
% 14.8 %
RECONCILIATION OF NET INCOME FROM CONTINUING
OPERATIONS
TO ADJUSTED NET INCOME FROM CONTINUING
OPERATIONS (5)
(In thousands, except per share amounts) (Unaudited)
Three Months Ended March 31,
2017 2016 Net income from continuing
operations $ 5,155 $ 6,866
Weighted average
shares – diluted 21,474 21,460
Diluted earnings per share
from continuing operations $ 0.24 $ 0.32 Add
back: Amortization of intangible assets 8,652 7,445 Restructuring
charges 279 1,333 Non-cash interest on convertible notes 1,928
1,839 Tax effect (4,192 ) (4,172 ) Total adjustments, net of tax
6,667 6,445
Adjusted net income from continuing
operations (5) $ 11,822 $ 13,311
Adjusted diluted earnings per share from continuing
operations (5) $ 0.55 $ 0.62
________________
(5) 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 from
continuing operations, and adjusted diluted earnings per share from
continuing operations, 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 2017
OUTLOOK RECONCILIATION OF NET INCOME
TO ADJUSTED EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION (6)
(In millions) (Unaudited) Year
Ending December 31, 2017 Guidance Range
Low High Projected revenues - GAAP $
750.0 $ 790.0
Projected net income - GAAP $
24.0 $ 31.0 Add back: Income tax expense 17.5 22.5 Interest
expense, net of interest income 18.5 18.5 Depreciation and
amortization 50.0 50.0
Projected earnings before
interest, taxes, depreciation and amortization (EBITDA)
(6) 110.0 122.0 Add back: Restructuring charges 3.0 3.0
Other non-operating income, net (0.5 ) (0.5 )
Projected adjusted
EBITDA (6) $ 112.5 $ 124.5
Projected
adjusted EBITDA as a percentage of projected revenues
(6) 15.0 % 15.8 %
RECONCILIATION OF NET INCOME
TO ADJUSTED NET INCOME
(6)
(In millions, except per share amounts) (Unaudited)
Year Ending December 31,
2017 Guidance Range Low High
Projected net income - GAAP $ 24.0 $ 31.0
Projected diluted earnings per share - GAAP $ 1.10 $
1.40 Add back: Amortization of intangible assets 35.0 35.0
Restructuring charges 3.0 3.0 Non-cash interest on convertible
notes 8.0 8.0 Tax effect (18.0 ) (18.0 ) Total adjustments, net of
tax 28.0 28.0
Projected adjusted net income
(6) $ 52.0 $ 59.0
Projected adjusted
diluted earnings per share (6) $ 2.40 $ 2.70
________________
(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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170501005289/en/
HuronMEDIA CONTACTSarah
McHugh312-880-2624smchugh@huronconsultinggroup.comorINVESTOR
CONTACTJohn D.
Kelly312-583-8722investor@huronconsultinggroup.com
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