Global professional services firm Huron (NASDAQ: HURN) today
announced preliminary unaudited financial results for the full year
ended Dec. 31, 2016, and provided their outlook for 2017.
Based on preliminary unaudited financial results, the company
expects full year 2016 revenues of $726.3 million, net income from
continuing operations of $39.5 million, and diluted earnings per
share from continuing operations of $1.84. The company also expects
full year 2016 adjusted earnings before interest, taxes,
depreciation, and amortization ("EBITDA")(1), a non-GAAP measure,
of $128.5 million, and adjusted diluted earnings per share from
continuing operations(1), a non-GAAP measure, of $3.21.
“The fourth quarter was challenging for our Healthcare segment,
as market uncertainties have led many of our provider clients to be
more cautious about taking on new projects,” said James H. Roth,
chief executive officer and president of Huron. “We believe that
the longer term prospects for our diversified healthcare offerings
remain positive, and we continue to aggressively enhance our
solutions to address the transformation in the healthcare
industry.”
“Our Education and Life Sciences and Business Advisory segments
performed well in 2016, and are well-positioned for growth in
2017,” Roth added.
The company's results are preliminary and unaudited, and may
vary from preliminary estimates after the completion of customary
year-end processes and reviews. The company will announce final
fourth quarter and full year 2016 financial results on Feb. 23,
2017.
OUTLOOK FOR 2017 (2)
Based on currently available information, the company provided
guidance for full year 2017, which includes the pending acquisition
of Innosight Holdings LLC and the recently completed acquisition of
Pope Woodhead and Associates Limited, of revenues before
reimbursable expenses in a range of $750.0 million to $790.0
million. The company anticipates net income in a range of $18.0
million to $25.0 million, and both EBITDA and adjusted EBITDA in a
range of $112.5 million to $124.5 million. GAAP diluted earnings
per share is expected in a range of $0.85 to $1.15, and non-GAAP
adjusted diluted earnings per share is expected in a range of $2.40
to $2.70.
WEBCAST
The company will host a webcast on Feb. 17, 2017, at 7:30 a.m.
Eastern Time (6:30 a.m. Central Time) to discuss its preliminary
unaudited financial results for 2016, its outlook for 2017, and the
pending acquisition of Innosight. The conference call is being
webcast by NASDAQ OMX and can be accessed at Huron’s website at
http://ir.huronconsultinggroup.com. To participate by telephone,
the dial-in number is (844) 413-0948 with passcode 68344625. A
replay will be available approximately two hours after the
conclusion of the webcast and for 90 days thereafter.
A supplemental presentation that will be discussed during the
webcast will be made available on the Investor Relations page of
the company's website at http://ir.huronconsultinggroup.com prior
to the webcast, and will be available for 90 days thereafter.
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; failure to complete the pending acquisition of
Innosight or any material delay in the timing of the acquisition;
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, 2015, 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. RECONCILIATION OF
PRELIMINARY NET INCOME FROM CONTINUING OPERATIONS
TO PRELIMINARY ADJUSTED EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (1)
(In millions) (Unaudited) Twelve
Months Ended December 31, 2016 Preliminary Segment
Revenues: Healthcare $ 424.9 Education and Life Sciences 179.0
Business Advisory 122.4 Total preliminary revenues $ 726.3
Preliminary net income from continuing operations $ 39.5 Add
back: Income tax expense 19.7 Interest and other expenses 15.1
Depreciation and amortization 46.6
Preliminary earnings
before interest, taxes, depreciation and amortization (EBITDA)
(1) 120.9 Add back: Restructuring charges 9.6 Litigation and
other gains, net (2.0 )
Preliminary adjusted EBITDA
(1) $ 128.5
Preliminary adjusted EBITDA as a
percentage of revenues (1) 17.7 %
RECONCILIATION OF PRELIMINARY NET INCOME FROM CONTINUING
OPERATIONS
TO PRELIMINARY ADJUSTED NET INCOME FROM
CONTINUING OPERATIONS (1)
(In millions, except per share amounts) (Unaudited)
Twelve Months Ended December 31, 2016
Preliminary net income from continuing operations $ 39.5
Preliminary weighted average shares outstanding -
diluted 21.4
Preliminary diluted earnings per share from
continuing operations $ 1.84 Add back: Amortization of
intangible assets 33.1 Restructuring charges 9.6 Litigation and
other gains, net (2.0 ) Non-cash interest on convertible notes 7.5
Tax effect (19.0 ) Total adjustments, net of tax 29.2
Preliminary adjusted net income from continuing operations
(1) $ 68.7
Preliminary adjusted diluted earnings
per share from continuing operations (1) $ 3.21
(1) 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 (2)
(In millions) (Unaudited) Year
Ending December 31, 2017 Guidance Range
Low High Projected revenues - GAAP $
750.0 $ 790.0
Projected net income - GAAP $
18.0 $ 25.0 Add back: Income tax expense 13.0 18.0 Interest expense
18.5 18.5 Depreciation and amortization 63.0 63.0
Projected earnings before interest, taxes, depreciation and
amortization (EBITDA) (2) 112.5 124.5 Add back:
Restructuring charges — — Other gains, net — —
Projected adjusted EBITDA (2) $ 112.5 $ 124.5
Projected adjusted EBITDA as a percentage of projected
revenues (2) 15.0 % 15.8 %
RECONCILIATION OF
NET INCOME
TO ADJUSTED NET INCOME
(2)
(In millions, except per share amounts) (Unaudited)
Year Ending December 31, 2017
Guidance Range Low High Projected
net income - GAAP $ 18.0 $ 25.0
Projected
diluted earnings per share - GAAP $ 0.85 $ 1.15
Add back: Amortization of intangible assets 47.0 47.0 Restructuring
charges — — Other gains, net — — Non-cash interest on convertible
notes 8.0 8.0 Tax effect (21.0 ) (21.0 ) Total adjustments, net of
tax 34.0 34.0
Projected adjusted net income (2) $
52.0 $ 59.0
Projected adjusted diluted earnings
per share (2) $ 2.40 $ 2.70 (2) 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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version on businesswire.com: http://www.businesswire.com/news/home/20170216006363/en/
HuronMEDIA CONTACTSarah
McHugh312-880-2624smchugh@huronconsultinggroup.comorINVESTOR
CONTACTJohn D.
Kelly312-583-8722investor@huronconsultinggroup.com
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