– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
FIRST QUARTER 2022 HIGHLIGHTS AND GUIDANCE
Revenues increased $56.8 million, or 28.0%, to $260.0 million in Q1 2022 from $203.2 million in Q1 2021.
Net income increased $21.4 million to $26.9 million in Q1 2022 from $5.4 million in Q1 2021. Results for Q1 2022 include an unrealized gain of $19.8 million, net of tax, on the company's investment in a hospital-at-home company.
Adjusted EBITDA(7), a non-GAAP measure, increased $5.7 million, or 34.4%, to $22.1 million in Q1 2022 from $16.5 million in Q1 2021.
Diluted earnings per share increased $1.03 to $1.27 in Q1 2022 from $0.24 in Q1 2021.
Adjusted diluted earnings per share(7), a non-GAAP measure that excludes the unrealized gain on the company's investment in a hospital-at-home company, increased $0.14, or 40.0%, to $0.49 in Q1 2022 from $0.35 in Q1 2021.
Huron updates its previous earnings guidance range for full year 2022, including revenue expectations in a range of $1.00 billion to $1.05 billion.
CHICAGO--(BUSINESS WIRE)--Global professional services firm Huron (NASDAQ: HURN) today announced financial results for the first quarter ended March 31, 2022.
“Our strong first quarter results reflect the continued momentum that started in early 2021 and resulted in growth in all three of our operating segments,” said James H. Roth, chief executive officer of Huron. “Revenues grew 28% over the prior year quarter, reflective of the significant growth opportunities in each of our core industries.”
“Demand for our healthcare and education industry offerings and our digital, strategy and financial advisory capabilities remains strong, enabling us to increase our annual revenue and earnings guidance. Market conditions remain favorable for our core offerings, and we believe that we will continue to achieve strong results consistent with the outlook we described in our recent Investor Day presentation,” added Roth.
FIRST QUARTER 2022 RESULTS
Revenues increased $56.8 million, or 28.0%, to $260.0 million for the first quarter of 2022, compared to $203.2 million for the first quarter of 2021.
Net income increased $21.4 million to $26.9 million for the first quarter of 2022, compared to $5.4 million for the same quarter last year. Diluted earnings per share increased $1.03 to $1.27 for the first quarter of 2022, compared to $0.24 for the first quarter of 2021. Results for the first quarter of 2022 include an unrealized gain of $19.8 million, net of tax, related to the increase in fair value of the company's investment in a hospital-at-home company.
First quarter 2022 earnings before interest, taxes, depreciation and amortization ("EBITDA")(7) increased $32.2 million to $47.4 million, compared $15.2 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
|
||||||
|
2022 |
|
2021 |
||||
Amortization of intangible assets |
$ |
2,860 |
|
|
$ |
2,399 |
|
Restructuring and other charges |
$ |
1,555 |
|
|
$ |
628 |
|
Other losses |
$ |
12 |
|
|
$ |
42 |
|
Transaction-related expenses |
$ |
50 |
|
|
$ |
170 |
|
Unrealized gain on preferred stock investment |
$ |
(26,964 |
) |
|
$ |
— |
|
Tax effect of adjustments |
$ |
5,959 |
|
|
$ |
(858 |
) |
Foreign currency transaction losses, net |
$ |
19 |
|
|
$ |
403 |
|
Adjusted EBITDA(7) increased $5.7 million, or 34.4%, to $22.1 million, or 8.5% of revenues, in the first quarter of 2022, compared to $16.5 million, or 8.1% of revenues, in the same quarter last year. Adjusted net income(7) increased $2.5 million to $10.3 million, or $0.49 per diluted share, for the first quarter of 2022, compared to $7.8 million, or $0.35 per diluted share, for the same quarter in 2021.
The number of revenue-generating professionals(1) increased 29.1% to 4,023 in the first quarter of 2022 from 3,116 in the same quarter last year. The utilization rate(5) of the company's Consulting capability increased to 71.4% during the first quarter 2022, compared to 66.4% during the same period last year. The utilization rate(5) for the company's Digital capability increased to 72.4% during the first quarter 2022, compared to 71.3% during the same period last year.
OPERATING INDUSTRIES
Huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges.
The company’s first quarter 2022 revenues by operating segment as a percentage of total company revenues are as follows: Healthcare (47%); Education (31%); and Commercial (22%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended March 31, 2022.
OUTLOOK FOR 2022
Based on currently available information, the company increased guidance for full year 2022 revenues before reimbursable expenses to a range of $1.00 billion to $1.05 billion. The company anticipates adjusted EBITDA as a percentage of revenues in a range of 11.25% to 12.25% and non-GAAP adjusted diluted earnings per share in a range of $3.00 to $3.40.
Management will provide a more detailed discussion of its outlook during the company's earnings conference call webcast.
FIRST QUARTER 2022 WEBCAST
The company will host a webcast to discuss its financial results today, May 3, 2022, 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(7)
In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.
Management has provided its outlook regarding adjusted EBITDA and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
Huron is a global professional services firm that collaborates with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses and their people to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. Learn more at www.huronconsultinggroup.com.
Statements in this press release that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “continues,” “goals,” “guidance,” or “outlook” or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: 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, 2021 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
|
||||||
|
2022 |
|
2021 |
||||
Revenues and reimbursable expenses: |
|
|
|
||||
Revenues |
$ |
260,049 |
|
|
$ |
203,213 |
|
Reimbursable expenses |
|
4,726 |
|
|
|
1,934 |
|
Total revenues and reimbursable expenses |
|
264,775 |
|
|
|
205,147 |
|
Operating expenses: |
|
|
|
||||
Direct costs (exclusive of depreciation and amortization included below) |
|
187,247 |
|
|
|
148,115 |
|
Reimbursable expenses |
|
4,756 |
|
|
|
2,003 |
|
Selling, general and administrative expenses |
|
48,395 |
|
|
|
39,808 |
|
Restructuring charges |
|
1,555 |
|
|
|
628 |
|
Depreciation and amortization |
|
6,864 |
|
|
|
6,353 |
|
Total operating expenses |
|
248,817 |
|
|
|
196,907 |
|
Operating income |
|
15,958 |
|
|
|
8,240 |
|
Other income (expense), net: |
|
|
|
||||
Interest expense, net of interest income |
|
(2,196 |
) |
|
|
(1,719 |
) |
Other income, net |
|
24,365 |
|
|
|
420 |
|
Total other income (expense), net |
|
22,169 |
|
|
|
(1,299 |
) |
Income before taxes |
|
38,127 |
|
|
|
6,941 |
|
Income tax expense |
|
11,275 |
|
|
|
1,536 |
|
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Earnings per share: |
|
|
|
||||
Net income per basic share |
$ |
1.29 |
|
|
$ |
0.25 |
|
Net income per diluted share |
$ |
1.27 |
|
|
$ |
0.24 |
|
Weighted average shares used in calculating earnings per share: |
|
|
|
||||
Basic |
|
20,850 |
|
|
|
21,932 |
|
Diluted |
|
21,167 |
|
|
|
22,341 |
|
Comprehensive income (loss): |
|
|
|
||||
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Foreign currency translation adjustments, net of tax |
|
(43 |
) |
|
|
400 |
|
Unrealized loss on investment, net of tax |
|
(2,661 |
) |
|
|
(4,648 |
) |
Unrealized gain on cash flow hedging instruments, net of tax |
|
4,325 |
|
|
|
1,429 |
|
Other comprehensive income (loss) |
|
1,621 |
|
|
|
(2,819 |
) |
Comprehensive income |
$ |
28,473 |
|
|
$ |
2,586 |
|
HURON CONSULTING GROUP INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited)
|
|||||||
|
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
9,748 |
|
|
$ |
20,781 |
|
Receivables from clients, net |
|
116,527 |
|
|
|
122,316 |
|
Unbilled services, net |
|
125,791 |
|
|
|
91,285 |
|
Income tax receivable |
|
4,997 |
|
|
|
8,071 |
|
Prepaid expenses and other current assets |
|
17,134 |
|
|
|
15,229 |
|
Total current assets |
|
274,197 |
|
|
|
257,682 |
|
Property and equipment, net |
|
26,836 |
|
|
|
31,004 |
|
Deferred income taxes, net |
|
1,791 |
|
|
|
1,804 |
|
Long-term investments |
|
95,930 |
|
|
|
72,584 |
|
Operating lease right-of-use assets |
|
33,737 |
|
|
|
35,311 |
|
Other non-current assets |
|
69,764 |
|
|
|
68,191 |
|
Intangible assets, net |
|
31,089 |
|
|
|
31,894 |
|
Goodwill |
|
623,841 |
|
|
|
620,879 |
|
Total assets |
$ |
1,157,185 |
|
|
$ |
1,119,349 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
12,364 |
|
|
$ |
13,621 |
|
Accrued expenses and other current liabilities |
|
19,470 |
|
|
|
22,519 |
|
Accrued payroll and related benefits |
|
64,169 |
|
|
|
139,131 |
|
Current maturities of long-term debt |
|
— |
|
|
|
559 |
|
Current maturities of operating lease liabilities |
|
10,213 |
|
|
|
10,142 |
|
Deferred revenues |
|
21,632 |
|
|
|
19,212 |
|
Total current liabilities |
|
127,848 |
|
|
|
205,184 |
|
Non-current liabilities: |
|
|
|
||||
Deferred compensation and other liabilities |
|
40,296 |
|
|
|
43,458 |
|
Long-term debt, net of current portion |
|
335,000 |
|
|
|
232,221 |
|
Operating lease liabilities, net of current portion |
|
51,756 |
|
|
|
54,313 |
|
Deferred income taxes, net |
|
20,003 |
|
|
|
12,273 |
|
Total non-current liabilities |
|
447,055 |
|
|
|
342,265 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,976,090 and 24,364,814 shares issued, respectively |
|
237 |
|
|
|
239 |
|
Treasury stock, at cost, 2,645,999 and 2,495,172 shares, respectively |
|
(135,367 |
) |
|
|
(135,969 |
) |
Additional paid-in capital |
|
395,103 |
|
|
|
413,794 |
|
Retained earnings |
|
303,848 |
|
|
|
276,996 |
|
Accumulated other comprehensive income |
|
18,461 |
|
|
|
16,840 |
|
Total stockholders’ equity |
|
582,282 |
|
|
|
571,900 |
|
Total liabilities and stockholders’ equity |
$ |
1,157,185 |
|
|
$ |
1,119,349 |
|
HURON CONSULTING GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
||||
Depreciation and amortization |
|
6,864 |
|
|
|
6,567 |
|
Non-cash lease expense |
|
1,640 |
|
|
|
1,693 |
|
Share-based compensation |
|
7,935 |
|
|
|
5,625 |
|
Amortization of debt discount and issuance costs |
|
198 |
|
|
|
198 |
|
Allowances for doubtful accounts |
|
28 |
|
|
|
— |
|
Deferred income taxes |
|
7,129 |
|
|
|
— |
|
Gain on sale of property and equipment, excluding transaction costs |
|
(1,067 |
) |
|
|
— |
|
Change in fair value of contingent consideration liabilities |
|
12 |
|
|
|
42 |
|
Change in fair value of preferred stock investment |
|
(26,964 |
) |
|
|
— |
|
Changes in operating assets and liabilities, net of acquisitions and divestiture: |
|
|
|
||||
(Increase) decrease in receivables from clients, net |
|
5,791 |
|
|
|
1,178 |
|
(Increase) decrease in unbilled services, net |
|
(35,239 |
) |
|
|
(23,086 |
) |
(Increase) decrease in current income tax receivable / payable, net |
|
3,266 |
|
|
|
573 |
|
(Increase) decrease in other assets |
|
1,361 |
|
|
|
327 |
|
Increase (decrease) in accounts payable and other liabilities |
|
(7,044 |
) |
|
|
2,566 |
|
Increase (decrease) in accrued payroll and related benefits |
|
(70,689 |
) |
|
|
(74,273 |
) |
Increase (decrease) in deferred revenues |
|
828 |
|
|
|
(9,569 |
) |
Net cash used in operating activities |
|
(79,099 |
) |
|
|
(82,754 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(3,924 |
) |
|
|
(637 |
) |
Purchases of businesses, net of cash acquired |
|
(2,289 |
) |
|
|
(6,000 |
) |
Capitalization of internally developed software costs |
|
(2,060 |
) |
|
|
(1,400 |
) |
Proceeds from sale of property and equipment |
|
4,750 |
|
|
|
— |
|
Divestiture of business |
|
207 |
|
|
|
— |
|
Net cash used in investing activities |
|
(3,316 |
) |
|
|
(8,037 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
648 |
|
|
|
174 |
|
Shares redeemed for employee tax withholdings |
|
(6,884 |
) |
|
|
(8,503 |
) |
Share repurchases |
|
(24,097 |
) |
|
|
(11,454 |
) |
Proceeds from bank borrowings |
|
150,000 |
|
|
|
89,000 |
|
Repayments of bank borrowings |
|
(47,780 |
) |
|
|
(24,135 |
) |
Deferred payment on business acquisition |
|
(500 |
) |
|
|
— |
|
Net cash used in financing activities |
|
71,387 |
|
|
|
45,082 |
|
Effect of exchange rate changes on cash |
|
(5 |
) |
|
|
155 |
|
Net decrease in cash and cash equivalents |
|
(11,033 |
) |
|
|
(45,554 |
) |
Cash and cash equivalents at beginning of the period |
|
20,781 |
|
|
|
67,177 |
|
Cash and cash equivalents at end of the period |
$ |
9,748 |
|
|
$ |
21,623 |
|
HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (Unaudited)
|
|||||||||||
|
|
Three Months Ended
|
|
Percent
|
|||||||
Segment and Consolidated Operating Results (in thousands): |
|
2022 |
|
2021 |
|
||||||
Healthcare: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
121,876 |
|
|
$ |
95,975 |
|
|
27.0 |
% |
Operating income |
|
$ |
28,032 |
|
|
$ |
23,827 |
|
|
17.6 |
% |
Segment operating income as a percentage of segment revenues |
|
|
23.0 |
% |
|
|
24.8 |
% |
|
|
|
Education: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
80,662 |
|
|
$ |
51,342 |
|
|
57.1 |
% |
Operating income |
|
$ |
14,306 |
|
|
$ |
8,537 |
|
|
67.6 |
% |
Segment operating income as a percentage of segment revenues |
|
|
17.7 |
% |
|
|
16.6 |
% |
|
|
|
Commercial: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
57,511 |
|
|
$ |
55,896 |
|
|
2.9 |
% |
Operating income |
|
$ |
12,214 |
|
|
$ |
9,850 |
|
|
24.0 |
% |
Segment operating income as a percentage of segment revenues |
|
|
21.2 |
% |
|
|
17.6 |
% |
|
|
|
Total Huron: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
260,049 |
|
|
$ |
203,213 |
|
|
28.0 |
% |
Reimbursable expenses |
|
|
4,726 |
|
|
|
1,934 |
|
|
144.4 |
% |
Total revenues and reimbursable expenses |
|
$ |
264,775 |
|
|
$ |
205,147 |
|
|
29.1 |
% |
|
|
|
|
|
|
|
|||||
Segment operating income |
|
$ |
54,552 |
|
|
$ |
42,214 |
|
|
29.2 |
% |
Items not allocated at the segment level: |
|
|
|
|
|
|
|||||
Other operating expenses |
|
|
33,548 |
|
|
|
28,879 |
|
|
16.2 |
% |
Depreciation and amortization |
|
|
5,046 |
|
|
|
5,095 |
|
|
(1.0 |
) % |
Total operating income |
|
|
15,958 |
|
|
|
8,240 |
|
|
93.7 |
% |
Other income (expense), net |
|
|
22,169 |
|
|
|
(1,299 |
) |
|
N/M |
|
Income before taxes |
|
$ |
38,127 |
|
|
$ |
6,941 |
|
|
N/M |
|
Other Operating Data: |
|
|
|
|
|
|
|||||
Number of revenue-generating professionals by segment (at period end)(1)(6): |
|
|
|
|
|
|
|||||
Healthcare |
|
|
1,647 |
|
|
|
1,130 |
|
|
|
|
Education |
|
|
1,231 |
|
|
|
871 |
|
|
|
|
Commercial (2) |
|
|
1,145 |
|
|
|
1,115 |
|
|
|
|
Total |
|
|
4,023 |
|
|
|
3,116 |
|
|
|
|
Revenue by capability: |
|
|
|
|
|
|
|||||
Consulting and Managed Services (3) |
|
$ |
150,584 |
|
|
$ |
122,551 |
|
|
|
|
Digital |
|
|
109,465 |
|
|
|
80,662 |
|
|
|
|
Total |
|
$ |
260,049 |
|
|
$ |
203,213 |
|
|
|
|
Number of revenue-generating professionals by capability (at period end)(1): |
|
|
|
|
|
|
|||||
Consulting and Managed Services (4) |
|
|
2,003 |
|
|
|
1,376 |
|
|
|
|
Digital |
|
|
2,020 |
|
|
|
1,740 |
|
|
|
|
Total |
|
|
4,023 |
|
|
|
3,116 |
|
|
|
|
Utilization rate by capability(5): |
|
|
|
|
|
|
|||||
Consulting |
|
|
71.4 |
% |
|
|
66.4 |
% |
|
|
|
Digital |
|
|
72.4 |
% |
|
|
71.3 |
% |
|
|
|
(1) |
Consists of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the Culture and Organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our Healthcare Managed Services employees who provide revenue cycle billing, collections insurance verification and change integrity services to clients. |
(2) |
The majority of our revenue-generating professionals within our Commercial segment can provide services across all of our industries, including healthcare and education. |
(3) |
Managed Services capability revenue within our Healthcare segment for the three months ended March 31, 2022 and March 31, 2021 was $13.8 million and $7.7 million, respectively. |
|
Managed Services capability revenue within our Education segment for the three months ended March 31, 2022 and March 31, 2021 was $3.4 million and $2.2 million, respectively. |
(4) |
The number of Managed Services revenue-generating professionals within our Healthcare segment as of March 31, 2022 and March 31, 2021 was 543 and 114, respectively. |
|
The number of Managed Services revenue-generating professionals within our Education segment as of March 31, 2022 and March 31, 2021 was 92 and 52, respectively. |
(5) |
Utilization rate is calculated by dividing the number of hours our billable consultants worked on client assignments during a period by the total available working hours for these billable consultants during the same period. Available hours are determined by the standard hours worked by each billable consultant, adjusted for part-time hours, and U.S. standard work weeks. Available working hours exclude local country holidays and vacation days. Utilization rates are presented for our revenue-generating professionals who primarily bill on an hourly basis. We have not presented utilization rates for our Managed Services professionals as most of the revenues generated by these employees are not billed on an hourly basis. |
| (6) | During the first quarter of 2022, we reclassified certain Digital revenue-generating professionals within our Healthcare and Education segments to our Commercial segment as these professionals can provide services across all of our industries. This reclassification did not impact the total headcount within our Digital capability for any period. The prior period headcount has been revised for consistent presentation. |
| The number of revenue-generating professionals within our Healthcare segment at December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 were 1,117; 1,130; 1,443; 1,575; and 1,596, respectively. | |
| The number of revenue-generating professional within our Education segment at December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 were 873; 871; 885; 958; and 1,050, respectively. | |
| The number of revenue-generating professional within our Commercial segment at December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 were 1,059; 1,115; 1,131; 1,191; and 1,130, respectively. | |
N/M - Not Meaningful |
|
HURON CONSULTING GROUP INC. RECONCILIATION OF NET INCOME TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (7) (In thousands) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Revenues |
$ |
260,049 |
|
|
$ |
203,213 |
|
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Add back: |
|
|
|
||||
Income tax expense |
|
11,275 |
|
|
|
1,536 |
|
Interest expense, net of interest income |
|
2,196 |
|
|
|
1,719 |
|
Depreciation and amortization |
|
7,122 |
|
|
|
6,551 |
|
Earnings before interest, taxes, depreciation and amortization (EBITDA) (7) |
|
47,445 |
|
|
|
15,211 |
|
Add back: |
|
|
|
||||
Restructuring and other charges |
|
1,555 |
|
|
|
628 |
|
Other losses |
|
12 |
|
|
|
42 |
|
Transaction-related expenses |
|
50 |
|
|
|
170 |
|
Unrealized gain on preferred stock investment |
|
(26,964 |
) |
|
|
— |
|
Foreign currency transaction losses, net |
|
19 |
|
|
|
403 |
|
Adjusted EBITDA (7) |
$ |
22,117 |
|
|
$ |
16,454 |
|
Adjusted EBITDA as a percentage of revenues (7) |
|
8.5 |
% |
|
|
8.1 |
% |
HURON CONSULTING GROUP INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (7) (In thousands, except per share amounts) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Weighted average shares - diluted |
|
21,167 |
|
|
|
22,341 |
|
Diluted earnings per share |
$ |
1.27 |
|
|
$ |
0.24 |
|
Add back: |
|
|
|
||||
Amortization of intangible assets |
|
2,860 |
|
|
|
2,399 |
|
Restructuring and other charges |
|
1,555 |
|
|
|
628 |
|
Other losses |
|
12 |
|
|
|
42 |
|
Transaction-related expenses |
|
50 |
|
|
|
170 |
|
Unrealized gain on preferred stock investment |
|
(26,964 |
) |
|
|
— |
|
Tax effect of adjustments |
|
5,959 |
|
|
|
(858 |
) |
Total adjustments, net of tax |
|
(16,528 |
) |
|
|
2,381 |
|
Adjusted net income (7) |
$ |
10,324 |
|
|
$ |
7,786 |
|
Adjusted weighted average shares - diluted |
|
21,167 |
|
|
|
22,341 |
|
Adjusted diluted earnings per share (7) |
$ |
0.49 |
|
|
$ |
0.35 |
|
(7) |
In evaluating the company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States. |
основные моменты и рекомендации за первый квартал 2022 года
Выручка увеличилась на 56,8 млн долларов, или на 28,0%, до 260,0 млн долларов в 1 квартале 2022 года с 203,2 млн долларов в 1 квартале 2021 года.
Чистая прибыль увеличилась с $5,4 млн в 1 квартале 2022 года до $26,9 млн с $5,4 млн в 1 квартале 2021 года. Результаты за 1 квартал 2022 года включают нереализованную прибыль в размере 19,8 млн долларов США, за вычетом налогов, от инвестиций компании в компанию, работающую в стационаре на дому.
Скорректированный показатель EBITDA(7), не учитывающий GAAP, увеличился на 5,7 млн долларов, или на 34,4%, до 22,1 млн долларов в 1 квартале 2022 года с 16,5 млн долларов в 1 квартале 2021 года.
Разводненная прибыль на акцию увеличилась с $1,03 до $1,27 в 1 квартале 2022 года с $0,24 в 1 квартале 2021 года.
Скорректированная разводненная прибыль на акцию (7), показатель, не учитывающий GAAP, который исключает нереализованную прибыль от инвестиций компании в компанию, предоставляющую услуги на дому, увеличилась на 0,14 доллара, или на 40,0%, до 0,49 доллара в 1 квартале 2022 года с 0,35 доллара в 1 квартале 2021 года.
Huron обновляет свой предыдущий прогноз по прибыли на весь 2022 год, включая ожидаемые доходы в диапазоне от 1,00 млрд до 1,05 млрд долларов.
ЧИКАГО -- (BUSINESS WIRE)-- Глобальная компания по оказанию профессиональных услуг Huron (NASDAQ: HURN) сегодня объявила финансовые результаты за первый квартал, закончившийся 31 марта 2022 года.
“Наши высокие результаты за первый квартал отражают сохраняющуюся динамику, которая началась в начале 2021 года и привела к росту во всех трех наших операционных сегментах”, - сказал Джеймс Х. Рот, главный исполнительный директор Huron. “Выручка выросла на 28% по сравнению с предыдущим кварталом, что отражает значительные возможности роста в каждой из наших основных отраслей”.
“Спрос на наши предложения в сфере здравоохранения и образования, а также на наши возможности в области цифровых технологий, стратегий и финансовых консультаций остается высоким, что позволяет нам увеличивать наши годовые доходы и прогнозировать прибыль. Рыночные условия остаются благоприятными для наших основных предложений, и мы считаем, что продолжим добиваться высоких результатов, соответствующих прогнозам, которые мы описали в нашей недавней презентации на День инвестора”, - добавил Рот.
результаты первого квартала 2022 года
Выручка увеличилась на 56,8 млн долларов, или на 28,0%, до 260,0 млн долларов за первый квартал 2022 года по сравнению с 203,2 млн долларов за первый квартал 2021 года.
Чистая прибыль увеличилась на 21,4 млн долларов до 26,9 млн долларов за первый квартал 2022 года по сравнению с 5,4 млн долларов за аналогичный квартал прошлого года. Разводненная прибыль на акцию увеличилась с 1,03 доллара до 1,27 доллара за первый квартал 2022 года по сравнению с 0,24 доллара за первый квартал 2021 года. Результаты за первый квартал 2022 года включают нереализованную прибыль в размере 19,8 млн долларов США за вычетом налогов, связанную с увеличением справедливой стоимости инвестиций компании в компанию, работающую в стационаре на дому.
Прибыль за первый квартал 2022 года до вычета процентов, налогов, износа и амортизации ("EBITDA") (7) увеличилась на 32,2 млн долларов до 47,4 млн долларов по сравнению с 15,2 млн долларов за аналогичный период предыдущего года.
В дополнение к использованию показателя EBITDA для оценки финансовых показателей компании руководство использует другие финансовые показатели, не относящиеся к GAAP, которые исключают влияние следующих статей (в тысячах):
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Amortization of intangible assets |
$ |
2,860 |
|
|
$ |
2,399 |
|
Restructuring and other charges |
$ |
1,555 |
|
|
$ |
628 |
|
Other losses |
$ |
12 |
|
|
$ |
42 |
|
Transaction-related expenses |
$ |
50 |
|
|
$ |
170 |
|
Unrealized gain on preferred stock investment |
$ |
(26,964 |
) |
|
$ |
— |
|
Tax effect of adjustments |
$ |
5,959 |
|
|
$ |
(858 |
) |
Foreign currency transaction losses, net |
$ |
19 |
|
|
$ |
403 |
|
Скорректированная EBITDA(7) увеличилась на 5,7 млн долларов, или на 34,4%, до 22,1 млн долларов, или 8,5% выручки, в первом квартале 2022 года по сравнению с 16,5 млн долларов, или 8,1% выручки, в том же квартале прошлого года. Скорректированная чистая прибыль(7) увеличилась на 2,5 млн долларов до 10,3 млн долларов, или 0,49 доллара на разводненную акцию, за первый квартал 2022 года по сравнению с 7,8 млн долларов, или 0,35 доллара на разводненную акцию, за тот же квартал 2021 года.
Число специалистов, приносящих доход (1), увеличилось на 29,1% до 4023 в первом квартале 2022 года с 3116 в том же квартале прошлого года. Коэффициент использования (5) консалтинговых возможностей компании увеличился до 71,4% в первом квартале 2022 года по сравнению с 66,4% за аналогичный период прошлого года. Коэффициент использования (5) цифровых возможностей компании увеличился до 72,4% в первом квартале 2022 года по сравнению с 71,3% за аналогичный период прошлого года.
действующие отрасли промышленности
Результаты Huron отражают портфель предлагаемых услуг, направленных на оказание помощи клиентам в решении сложных бизнес-задач.
Выручка компании за первый квартал 2022 года по операционным сегментам в процентах от общей выручки компании выглядит следующим образом: Здравоохранение (47%); Образование (31%); и Коммерческие (22%). Финансовые результаты по операционным отраслям включены в прилагаемые графики и в предстоящий ежеквартальный отчет Huron по форме 10-Q за квартал, закончившийся 31 марта 2022 года.
прогноз на 2022 год
Основываясь на имеющейся в настоящее время информации, компания увеличила прогноз по выручке за весь 2022 год до вычета возмещаемых расходов в диапазоне от 1,00 млрд до 1,05 млрд долларов. Компания ожидает, что скорректированный показатель EBITDA в процентах от выручки составит от 11,25% до 12,25%, а скорректированная разводненная прибыль на акцию без учета GAAP составит от 3,00 до 3,40 долл.
Руководство предоставит более подробное обсуждение своих перспектив во время веб-трансляции телефонной конференции по доходам компании.
веб-трансляция первого квартала 2022 года
Компания проведет веб-трансляцию для обсуждения своих финансовых результатов сегодня, 3 мая 2022 года, в 17:00 по восточному времени, в 16:00 по Центральному времени. Конференц-связь транслируется NASDAQ в Интернете, и доступ к ней можно получить с веб-сайта Huron по адресу http://ir.huronconsultinggroup.com . Повтор будет доступен примерно через два часа после завершения веб-трансляции и в течение 90 дней после этого.
использование финансовых показателей, не относящихся к ОПБУ(7)
При оценке финансовых показателей и перспектив компании руководство использует показатель EBITDA, скорректированный показатель EBITDA, скорректированный показатель EBITDA в процентах от выручки, скорректированную чистую прибыль и скорректированную разводненную прибыль на акцию, которые не являются показателями GAAP. Руководство использует эти финансовые показатели, не относящиеся к GAAP, чтобы получить представление о сравнительных операционных показателях компании (при сравнении таких результатов с предыдущими периодами или прогнозами). Эти финансовые показатели, не относящиеся к GAAP, используются руководством при принятии финансовых и операционных решений, поскольку руководство считает, что они отражают текущую деятельность компании таким образом, чтобы можно было проводить значимые сравнения между периодами. Руководство также использует эти финансовые показатели, не относящиеся к GAAP, при публичном представлении своих бизнес-прогнозов, для целей внутреннего управления и в качестве основы для оценки потенциальных приобретений и отчуждений. Руководство считает, что эти финансовые показатели, не относящиеся к GAAP, предоставляют инвесторам и другим лицам полезную информацию для понимания и оценки текущих операционных показателей и будущих перспектив Huron таким же образом, как это делает руководство, если они того пожелают, и для последовательного сравнения текущих финансовых результатов Huron с прошлыми финансовыми результатами Huron. Инвесторы должны понимать, что эти показатели, не относящиеся к GAAP, могут быть несопоставимы с аналогичными показателями других компаний. Эти показатели следует рассматривать в дополнение, а не в качестве замены или превосходства каких-либо показателей эффективности, движения денежных средств или ликвидности, подготовленных в соответствии с принципами бухгалтерского учета, общепринятыми в Соединенных Штатах.
Руководство представило свой прогноз относительно скорректированной EBITDA и скорректированной разводненной прибыли на акцию, которые являются финансовыми показателями, не относящимися к GAAP, и исключают определенные расходы. Руководство не согласовало эти финансовые показатели, не относящиеся к ОПБУ, с соответствующими финансовыми показателями ОПБУ, поскольку не предоставлены рекомендации по различным статьям выверки. Руководство не может дать рекомендации по этим статьям выверки, поскольку оно не может определить их вероятную значимость, поскольку некоторые статьи находятся вне контроля компании и не могут быть разумно предсказаны, поскольку эти статьи могут значительно варьироваться от периода к периоду. Соответственно, сверка с соответствующими финансовыми показателями GAAP невозможна без неоправданных усилий.
Huron - это глобальная компания, предоставляющая профессиональные услуги, которая сотрудничает с клиентами, чтобы реализовать это на практике, создавая обоснованные стратегии, оптимизируя операции, ускоряя цифровую трансформацию и предоставляя компаниям и их сотрудникам возможность самим определять свое будущее. Принимая различные точки зрения, поощряя новые идеи и бросая вызов существующему положению вещей, мы добиваемся устойчивых результатов для организаций, которым мы служим. Узнайте больше на сайте www.huronconsultinggroup.com .
Заявления в этом пресс-релизе, которые не являются историческими по своему характеру, в том числе касающиеся текущих ожиданий компании относительно ее будущих результатов, являются “прогнозными” заявлениями, как определено в разделе 21E Закона о биржах ценных бумаг 1934 года с поправками и Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Прогнозные заявления обозначаются такими словами, как “может”, “должен”, “ожидает”, “обеспечивает”, “ожидает”, “предполагает”, “может”, “будет”, “соответствует”, “может”, “вероятно”, “намеревается”, “может, ”прогнозирует”, ”стремится“, ”хотел бы“, ”полагает“, ”оценивает“, ”планирует“, ”продолжает“, ”цели“, ”руководство“ или ”перспективы" или аналогичные выражения. Эти прогнозные заявления отражают текущие ожидания компании в отношении будущих требований и потребностей, результатов, уровней деятельности, производительности или достижений. Некоторые из факторов, которые могут привести к тому, что фактические результаты будут существенно отличаться от прогнозных заявлений, содержащихся в настоящем документе, включают, помимо прочего: влияние пандемии COVID-19 на экономику, наших клиентов и спрос клиентов на наши услуги, а также нашу способность продавать и предоставлять услуги, включая меры, принятые государственными органами и предприятиями в ответ на пандемию, которая может вызвать или способствовать другим рискам и неопределенностям, с которыми мы сталкиваемся; неспособность достичь ожидаемых показателей использования, ставок выставления счетов и количества специалистов, приносящих доход; неспособность расширить или скорректировать наши предложения услуг в соответствии с требованиями рынка; наша зависимость от обновления клиентских услуг; зависимость от нового бизнеса и удержания текущих клиентов и квалифицированного персонала; неспособность поддерживать отношения со сторонними поставщиками и стратегические альянсы; невозможность лицензировать технологии третьим сторонам и у третьих сторон; обесценение деловой репутации; различные факторы, связанные с подоходным и другими налогами; трудности в успешной интеграции предприятия, которые мы приобретаем, и получение ожидаемых выгод от таких приобретений; риски, связанные с конфиденциальностью, информационной безопасностью и соответствующими законами и стандартами; а также общий спад рыночных условий. Эти прогнозные заявления связаны с известными и неизвестными рисками, неопределенностями и другими факторами, включая, среди прочего, те, которые описаны в разделе “Пункт 1А. Факторы риска” в Годовом отчете Huron по форме 10-K за год, закончившийся 31 декабря 2021 года, которые могут привести к тому, что фактические результаты, уровни активности, производительности или достижений будут существенно отличаться от любых ожидаемых результатов, уровней активности, производительности или достижений, выраженных или подразумеваемых в этих прогнозных заявлениях. Компания отказывается от каких-либо обязательств по обновлению или пересмотру любых прогнозных заявлений в результате новой информации или будущих событий или по любой другой причине.
Huron Consulting Group INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (In thousands, except per share amounts) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Revenues and reimbursable expenses: |
|
|
|
||||
Revenues |
$ |
260,049 |
|
|
$ |
203,213 |
|
Reimbursable expenses |
|
4,726 |
|
|
|
1,934 |
|
Total revenues and reimbursable expenses |
|
264,775 |
|
|
|
205,147 |
|
Operating expenses: |
|
|
|
||||
Direct costs (exclusive of depreciation and amortization included below) |
|
187,247 |
|
|
|
148,115 |
|
Reimbursable expenses |
|
4,756 |
|
|
|
2,003 |
|
Selling, general and administrative expenses |
|
48,395 |
|
|
|
39,808 |
|
Restructuring charges |
|
1,555 |
|
|
|
628 |
|
Depreciation and amortization |
|
6,864 |
|
|
|
6,353 |
|
Total operating expenses |
|
248,817 |
|
|
|
196,907 |
|
Operating income |
|
15,958 |
|
|
|
8,240 |
|
Other income (expense), net: |
|
|
|
||||
Interest expense, net of interest income |
|
(2,196 |
) |
|
|
(1,719 |
) |
Other income, net |
|
24,365 |
|
|
|
420 |
|
Total other income (expense), net |
|
22,169 |
|
|
|
(1,299 |
) |
Income before taxes |
|
38,127 |
|
|
|
6,941 |
|
Income tax expense |
|
11,275 |
|
|
|
1,536 |
|
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Earnings per share: |
|
|
|
||||
Net income per basic share |
$ |
1.29 |
|
|
$ |
0.25 |
|
Net income per diluted share |
$ |
1.27 |
|
|
$ |
0.24 |
|
Weighted average shares used in calculating earnings per share: |
|
|
|
||||
Basic |
|
20,850 |
|
|
|
21,932 |
|
Diluted |
|
21,167 |
|
|
|
22,341 |
|
Comprehensive income (loss): |
|
|
|
||||
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Foreign currency translation adjustments, net of tax |
|
(43 |
) |
|
|
400 |
|
Unrealized loss on investment, net of tax |
|
(2,661 |
) |
|
|
(4,648 |
) |
Unrealized gain on cash flow hedging instruments, net of tax |
|
4,325 |
|
|
|
1,429 |
|
Other comprehensive income (loss) |
|
1,621 |
|
|
|
(2,819 |
) |
Comprehensive income |
$ |
28,473 |
|
|
$ |
2,586 |
|
Huron Consulting Group INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited)
|
|||||||
|
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
9,748 |
|
|
$ |
20,781 |
|
Receivables from clients, net |
|
116,527 |
|
|
|
122,316 |
|
Unbilled services, net |
|
125,791 |
|
|
|
91,285 |
|
Income tax receivable |
|
4,997 |
|
|
|
8,071 |
|
Prepaid expenses and other current assets |
|
17,134 |
|
|
|
15,229 |
|
Total current assets |
|
274,197 |
|
|
|
257,682 |
|
Property and equipment, net |
|
26,836 |
|
|
|
31,004 |
|
Deferred income taxes, net |
|
1,791 |
|
|
|
1,804 |
|
Long-term investments |
|
95,930 |
|
|
|
72,584 |
|
Operating lease right-of-use assets |
|
33,737 |
|
|
|
35,311 |
|
Other non-current assets |
|
69,764 |
|
|
|
68,191 |
|
Intangible assets, net |
|
31,089 |
|
|
|
31,894 |
|
Goodwill |
|
623,841 |
|
|
|
620,879 |
|
Total assets |
$ |
1,157,185 |
|
|
$ |
1,119,349 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
12,364 |
|
|
$ |
13,621 |
|
Accrued expenses and other current liabilities |
|
19,470 |
|
|
|
22,519 |
|
Accrued payroll and related benefits |
|
64,169 |
|
|
|
139,131 |
|
Current maturities of long-term debt |
|
— |
|
|
|
559 |
|
Current maturities of operating lease liabilities |
|
10,213 |
|
|
|
10,142 |
|
Deferred revenues |
|
21,632 |
|
|
|
19,212 |
|
Total current liabilities |
|
127,848 |
|
|
|
205,184 |
|
Non-current liabilities: |
|
|
|
||||
Deferred compensation and other liabilities |
|
40,296 |
|
|
|
43,458 |
|
Long-term debt, net of current portion |
|
335,000 |
|
|
|
232,221 |
|
Operating lease liabilities, net of current portion |
|
51,756 |
|
|
|
54,313 |
|
Deferred income taxes, net |
|
20,003 |
|
|
|
12,273 |
|
Total non-current liabilities |
|
447,055 |
|
|
|
342,265 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,976,090 and 24,364,814 shares issued, respectively |
|
237 |
|
|
|
239 |
|
Treasury stock, at cost, 2,645,999 and 2,495,172 shares, respectively |
|
(135,367 |
) |
|
|
(135,969 |
) |
Additional paid-in capital |
|
395,103 |
|
|
|
413,794 |
|
Retained earnings |
|
303,848 |
|
|
|
276,996 |
|
Accumulated other comprehensive income |
|
18,461 |
|
|
|
16,840 |
|
Total stockholders’ equity |
|
582,282 |
|
|
|
571,900 |
|
Total liabilities and stockholders’ equity |
$ |
1,157,185 |
|
|
$ |
1,119,349 |
|
Huron Consulting Group INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
||||
Depreciation and amortization |
|
6,864 |
|
|
|
6,567 |
|
Non-cash lease expense |
|
1,640 |
|
|
|
1,693 |
|
Share-based compensation |
|
7,935 |
|
|
|
5,625 |
|
Amortization of debt discount and issuance costs |
|
198 |
|
|
|
198 |
|
Allowances for doubtful accounts |
|
28 |
|
|
|
— |
|
Deferred income taxes |
|
7,129 |
|
|
|
— |
|
Gain on sale of property and equipment, excluding transaction costs |
|
(1,067 |
) |
|
|
— |
|
Change in fair value of contingent consideration liabilities |
|
12 |
|
|
|
42 |
|
Change in fair value of preferred stock investment |
|
(26,964 |
) |
|
|
— |
|
Changes in operating assets and liabilities, net of acquisitions and divestiture: |
|
|
|
||||
(Increase) decrease in receivables from clients, net |
|
5,791 |
|
|
|
1,178 |
|
(Increase) decrease in unbilled services, net |
|
(35,239 |
) |
|
|
(23,086 |
) |
(Increase) decrease in current income tax receivable / payable, net |
|
3,266 |
|
|
|
573 |
|
(Increase) decrease in other assets |
|
1,361 |
|
|
|
327 |
|
Increase (decrease) in accounts payable and other liabilities |
|
(7,044 |
) |
|
|
2,566 |
|
Increase (decrease) in accrued payroll and related benefits |
|
(70,689 |
) |
|
|
(74,273 |
) |
Increase (decrease) in deferred revenues |
|
828 |
|
|
|
(9,569 |
) |
Net cash used in operating activities |
|
(79,099 |
) |
|
|
(82,754 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(3,924 |
) |
|
|
(637 |
) |
Purchases of businesses, net of cash acquired |
|
(2,289 |
) |
|
|
(6,000 |
) |
Capitalization of internally developed software costs |
|
(2,060 |
) |
|
|
(1,400 |
) |
Proceeds from sale of property and equipment |
|
4,750 |
|
|
|
— |
|
Divestiture of business |
|
207 |
|
|
|
— |
|
Net cash used in investing activities |
|
(3,316 |
) |
|
|
(8,037 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options |
|
648 |
|
|
|
174 |
|
Shares redeemed for employee tax withholdings |
|
(6,884 |
) |
|
|
(8,503 |
) |
Share repurchases |
|
(24,097 |
) |
|
|
(11,454 |
) |
Proceeds from bank borrowings |
|
150,000 |
|
|
|
89,000 |
|
Repayments of bank borrowings |
|
(47,780 |
) |
|
|
(24,135 |
) |
Deferred payment on business acquisition |
|
(500 |
) |
|
|
— |
|
Net cash used in financing activities |
|
71,387 |
|
|
|
45,082 |
|
Effect of exchange rate changes on cash |
|
(5 |
) |
|
|
155 |
|
Net decrease in cash and cash equivalents |
|
(11,033 |
) |
|
|
(45,554 |
) |
Cash and cash equivalents at beginning of the period |
|
20,781 |
|
|
|
67,177 |
|
Cash and cash equivalents at end of the period |
$ |
9,748 |
|
|
$ |
21,623 |
|
Huron Consulting Group INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (Unaudited)
|
|||||||||||
|
|
Three Months Ended
|
|
Percent
|
|||||||
Segment and Consolidated Operating Results (in thousands): |
|
2022 |
|
2021 |
|
||||||
Healthcare: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
121,876 |
|
|
$ |
95,975 |
|
|
27.0 |
% |
Operating income |
|
$ |
28,032 |
|
|
$ |
23,827 |
|
|
17.6 |
% |
Segment operating income as a percentage of segment revenues |
|
|
23.0 |
% |
|
|
24.8 |
% |
|
|
|
Education: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
80,662 |
|
|
$ |
51,342 |
|
|
57.1 |
% |
Operating income |
|
$ |
14,306 |
|
|
$ |
8,537 |
|
|
67.6 |
% |
Segment operating income as a percentage of segment revenues |
|
|
17.7 |
% |
|
|
16.6 |
% |
|
|
|
Commercial: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
57,511 |
|
|
$ |
55,896 |
|
|
2.9 |
% |
Operating income |
|
$ |
12,214 |
|
|
$ |
9,850 |
|
|
24.0 |
% |
Segment operating income as a percentage of segment revenues |
|
|
21.2 |
% |
|
|
17.6 |
% |
|
|
|
Total Huron: |
|
|
|
|
|
|
|||||
Revenues |
|
$ |
260,049 |
|
|
$ |
203,213 |
|
|
28.0 |
% |
Reimbursable expenses |
|
|
4,726 |
|
|
|
1,934 |
|
|
144.4 |
% |
Total revenues and reimbursable expenses |
|
$ |
264,775 |
|
|
$ |
205,147 |
|
|
29.1 |
% |
|
|
|
|
|
|
|
|||||
Segment operating income |
|
$ |
54,552 |
|
|
$ |
42,214 |
|
|
29.2 |
% |
Items not allocated at the segment level: |
|
|
|
|
|
|
|||||
Other operating expenses |
|
|
33,548 |
|
|
|
28,879 |
|
|
16.2 |
% |
Depreciation and amortization |
|
|
5,046 |
|
|
|
5,095 |
|
|
(1.0 |
) % |
Total operating income |
|
|
15,958 |
|
|
|
8,240 |
|
|
93.7 |
% |
Other income (expense), net |
|
|
22,169 |
|
|
|
(1,299 |
) |
|
N/M |
|
Income before taxes |
|
$ |
38,127 |
|
|
$ |
6,941 |
|
|
N/M |
|
Other Operating Data: |
|
|
|
|
|
|
|||||
Number of revenue-generating professionals by segment (at period end)(1)(6): |
|
|
|
|
|
|
|||||
Healthcare |
|
|
1,647 |
|
|
|
1,130 |
|
|
|
|
Education |
|
|
1,231 |
|
|
|
871 |
|
|
|
|
Commercial (2) |
|
|
1,145 |
|
|
|
1,115 |
|
|
|
|
Total |
|
|
4,023 |
|
|
|
3,116 |
|
|
|
|
Revenue by capability: |
|
|
|
|
|
|
|||||
Consulting and Managed Services (3) |
|
$ |
150,584 |
|
|
$ |
122,551 |
|
|
|
|
Digital |
|
|
109,465 |
|
|
|
80,662 |
|
|
|
|
Total |
|
$ |
260,049 |
|
|
$ |
203,213 |
|
|
|
|
Number of revenue-generating professionals by capability (at period end)(1): |
|
|
|
|
|
|
|||||
Consulting and Managed Services (4) |
|
|
2,003 |
|
|
|
1,376 |
|
|
|
|
Digital |
|
|
2,020 |
|
|
|
1,740 |
|
|
|
|
Total |
|
|
4,023 |
|
|
|
3,116 |
|
|
|
|
Utilization rate by capability(5): |
|
|
|
|
|
|
|||||
Consulting |
|
|
71.4 |
% |
|
|
66.4 |
% |
|
|
|
Digital |
|
|
72.4 |
% |
|
|
71.3 |
% |
|
|
|
(1) |
Consists of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the Culture and Organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our Healthcare Managed Services employees who provide revenue cycle billing, collections insurance verification and change integrity services to clients. |
(2) |
The majority of our revenue-generating professionals within our Commercial segment can provide services across all of our industries, including healthcare and education. |
(3) |
Managed Services capability revenue within our Healthcare segment for the three months ended March 31, 2022 and March 31, 2021 was $13.8 million and $7.7 million, respectively. |
|
Managed Services capability revenue within our Education segment for the three months ended March 31, 2022 and March 31, 2021 was $3.4 million and $2.2 million, respectively. |
(4) |
The number of Managed Services revenue-generating professionals within our Healthcare segment as of March 31, 2022 and March 31, 2021 was 543 and 114, respectively. |
|
The number of Managed Services revenue-generating professionals within our Education segment as of March 31, 2022 and March 31, 2021 was 92 and 52, respectively. |
(5) |
Utilization rate is calculated by dividing the number of hours our billable consultants worked on client assignments during a period by the total available working hours for these billable consultants during the same period. Available hours are determined by the standard hours worked by each billable consultant, adjusted for part-time hours, and U.S. standard work weeks. Available working hours exclude local country holidays and vacation days. Utilization rates are presented for our revenue-generating professionals who primarily bill on an hourly basis. We have not presented utilization rates for our Managed Services professionals as most of the revenues generated by these employees are not billed on an hourly basis. |
| (6) | During the first quarter of 2022, we reclassified certain Digital revenue-generating professionals within our Healthcare and Education segments to our Commercial segment as these professionals can provide services across all of our industries. This reclassification did not impact the total headcount within our Digital capability for any period. The prior period headcount has been revised for consistent presentation. |
| The number of revenue-generating professionals within our Healthcare segment at December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 were 1,117; 1,130; 1,443; 1,575; and 1,596, respectively. | |
| The number of revenue-generating professional within our Education segment at December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 were 873; 871; 885; 958; and 1,050, respectively. | |
| The number of revenue-generating professional within our Commercial segment at December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 were 1,059; 1,115; 1,131; 1,191; and 1,130, respectively. | |
N/M - Not Meaningful |
|
Huron Consulting Group INC. RECONCILIATION OF NET INCOME TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (7) (In thousands) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Revenues |
$ |
260,049 |
|
|
$ |
203,213 |
|
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Add back: |
|
|
|
||||
Income tax expense |
|
11,275 |
|
|
|
1,536 |
|
Interest expense, net of interest income |
|
2,196 |
|
|
|
1,719 |
|
Depreciation and amortization |
|
7,122 |
|
|
|
6,551 |
|
Earnings before interest, taxes, depreciation and amortization (EBITDA) (7) |
|
47,445 |
|
|
|
15,211 |
|
Add back: |
|
|
|
||||
Restructuring and other charges |
|
1,555 |
|
|
|
628 |
|
Other losses |
|
12 |
|
|
|
42 |
|
Transaction-related expenses |
|
50 |
|
|
|
170 |
|
Unrealized gain on preferred stock investment |
|
(26,964 |
) |
|
|
— |
|
Foreign currency transaction losses, net |
|
19 |
|
|
|
403 |
|
Adjusted EBITDA (7) |
$ |
22,117 |
|
|
$ |
16,454 |
|
Adjusted EBITDA as a percentage of revenues (7) |
|
8.5 |
% |
|
|
8.1 |
% |
Huron Consulting Group INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (7) (In thousands, except per share amounts) (Unaudited)
|
|||||||
|
Three Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Net income |
$ |
26,852 |
|
|
$ |
5,405 |
|
Weighted average shares - diluted |
|
21,167 |
|
|
|
22,341 |
|
Diluted earnings per share |
$ |
1.27 |
|
|
$ |
0.24 |
|
Add back: |
|
|
|
||||
Amortization of intangible assets |
|
2,860 |
|
|
|
2,399 |
|
Restructuring and other charges |
|
1,555 |
|
|
|
628 |
|
Other losses |
|
12 |
|
|
|
42 |
|
Transaction-related expenses |
|
50 |
|
|
|
170 |
|
Unrealized gain on preferred stock investment |
|
(26,964 |
) |
|
|
— |
|
Tax effect of adjustments |
|
5,959 |
|
|
|
(858 |
) |
Total adjustments, net of tax |
|
(16,528 |
) |
|
|
2,381 |
|
Adjusted net income (7) |
$ |
10,324 |
|
|
$ |
7,786 |
|
Adjusted weighted average shares - diluted |
|
21,167 |
|
|
|
22,341 |
|
Adjusted diluted earnings per share (7) |
$ |
0.49 |
|
|
$ |
0.35 |
|
(7) |
In evaluating the company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States. |
