Huron announces first quarter 2019 financial results and affirms 2019 guidance

Chicago--(business wire)--global professional services firm huron (nasdaq: hurn) today announced financial results from continuing operations for the first quarter ended march 31, 2019. “huron delivered 5.6% organic revenue growth in the first quarter, driven by solid demand across all three of our operating segments,” said james h. roth, chief executive officer of huron. "we continue to see evidence of growing demand across our business, and today affirm our full year revenue and earnings guidance.” first quarter 2019 results from continuing operations revenues increased $10.8 million, or 5.6%, to $204.4 million for the first quarter of 2019, compared to $193.7 million for the first quarter of 2018. net income from continuing operations was $3.4 million for the first quarter of 2019, compared to net loss from continuing operations of $3.2 million for the same prior year period. diluted earnings per share from continuing operations was $0.15 for the first quarter of 2019, compared to diluted loss per share from continuing operations of $0.15 for the first quarter of 2018. first quarter 2019 earnings before interest, taxes, depreciation and amortization (“ebitda”)(6) increased $5.1 million, or 41.5%, to $17.3 million from $12.2 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): adjusted ebitda(6) increased $4.3 million, or 31.5%, to $18.0 million, or 8.8% of revenues, in the first quarter of 2019, from $13.7 million, or 7.1% of revenues, in the same quarter last year. adjusted net income from continuing operations(6) increased $4.6 million to $8.9 million, or $0.40 per diluted share, for the first quarter of 2019, from $4.2 million, or $0.19 per diluted share, for the same period in 2018. the average number of full-time billable consultants(1) increased 7.7% to 2,289 in the first quarter of 2019 from 2,126 in the same quarter last year. full-time billable consultant utilization rate(2) was 75.9% during the first quarter of 2019, compared to 75.1% during the same period last year. average billing rate per hour for full-time billable consultants(3) was $210 for the first quarter of 2019, compared to $206 for the first quarter of 2018. the average number of full-time equivalent professionals(5) was 267 in the first quarter of 2019, compared to 264 for the same period in 2018. operating segments huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges. the company’s first quarter 2019 revenues by operating segment as a percentage of total company revenues are as follows: healthcare (46%); business advisory (29%); and education (25%). financial results by segment are included in the attached schedules and in huron's forthcoming quarterly report on form 10-q filing for the quarter ended march 31, 2019. outlook for 2019 based on currently available information, the company is affirming guidance for full year 2019 revenues before reimbursable expenses in a range of $800.0 million to $840.0 million. the company also anticipates adjusted ebitda as a percentage of revenues in a range of 12.0% to 12.5% and non-gaap adjusted diluted earnings per share to increase 8% to 20% over 2018. management will provide a more detailed discussion of its outlook during the company’s earnings conference call webcast. first quarter 2019 webcast the company will host a webcast to discuss its financial results today, april 30, 2019, 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(6) in evaluating the company’s financial performance and outlook, management uses ebitda, adjusted ebitda, adjusted ebitda as a percentage of revenues, adjusted net income from continuing operations, and adjusted diluted earnings per share from continuing operations, which are non-gaap measures. management uses these non-gaap financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). these non-gaap financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. management also uses these non-gaap financial measures when publicly providing their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. management believes that these non-gaap financial measures provide useful information to investors and others in understanding and evaluating huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner huron’s current financial results with huron’s past financial results. investors should recognize that these non-gaap measures might not be comparable to similarly titled measures of other companies. these measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the united states. management has provided its outlook regarding adjusted ebitda and non-gaap adjusted diluted earnings per share, both of which are non-gaap financial measures and exclude certain charges. management has not reconciled these non-gaap financial measures to the corresponding gaap financial measures because guidance for the various reconciling items are not provided. management is unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. accordingly, reconciliations to the corresponding gaap financial measures are not available without unreasonable effort. about huron huron is a global consultancy that helps its clients drive growth, enhance performance and sustain leadership in the markets they serve. the company partners with clients to develop strategies and implement solutions that enable the transformative change its clients need to own their future. learn more at www.huronconsultinggroup.com. statements in this press release that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in section 21e of the securities exchange act of 1934, as amended, and the private securities litigation reform act of 1995. forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “continues,” “guidance,” or “outlook” or similar expressions. these forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: 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, 2018, 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. percentincrease(decrease) three months ended march 31, to adjusted earnings before interest, taxes, depreciation and amortization(6) to adjusted net income from continuing operations(6)
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