Huron consulting group announces fourth quarter and full year 2013
financial results
Chicago--(business wire)--huron consulting group inc. (nasdaq: hurn): fourth quarter 2013 highlights: record quarterly revenues in q4 2013 were $211.3 million, an increase of 16.9%, compared to $180.8 million in q4 2012. operating income for q4 2013 increased 6.8% to $36.9 million compared to $34.5 million in q4 2012. adjusted ebitda(7), a non-gaap measure, increased 8.9% to $44.6 million in q4 2013 compared to $41.0 million in q4 2012. diluted earnings per share from continuing operations for q4 2013 rose 15.7% to $0.96 compared to $0.83 in q4 2012. adjusted diluted earnings per share from continuing operations(7), a non-gaap measure, rose 16.7% to $1.05 in q4 2013 compared to $0.90 in q4 2012. full year 2013 highlights and 2014 guidance: revenues for full year 2013 increased 15.1% to $720.5 million compared to $626.0 million for full year 2012. diluted earnings per share from continuing operations for full year 2013 rose 81.4% to $2.92 compared to $1.61 for full year 2012. adjusted diluted earnings per share from continuing operations(7), a non-gaap measure, rose 26.5% to $2.96 in 2013 compared to $2.34 in 2012. the company provides 2014 full year revenue guidance in a range of $765.0 million to $795.0 million. executive appointment and $50 million share repurchase program: c. mark hussey, currently chief financial officer, will also assume the role of chief operating officer. board authorizes $50 million share repurchase program. huron consulting group inc. (nasdaq: hurn), a leading provider of business consulting services, today announced its financial results for the fourth quarter and full year ended december 31, 2013. “we are pleased with our record fourth quarter and full year financial performance in 2013. our strong finish to the year was driven by higher than expected performance-based fees in our huron healthcare segment, the result of delivering exceptional value to our hospital clients and exceeding our clients’ expectations,” said james h. roth, chief executive officer and president, huron consulting group. “huron continues to be a leader in providing strategic, operational, and technology services. we anticipate solid demand across all of our business segments in 2014, and we believe that our markets will continue to provide attractive growth opportunities.” fourth quarter 2013 results record quarterly revenues for the fourth quarter of 2013 were $211.3 million, an increase of 16.9%, compared to $180.8 million for the fourth quarter of 2012. the company's fourth quarter 2013 operating income was $36.9 million compared to $34.5 million in the fourth quarter of 2012. net income from continuing operations was $22.1 million, or $0.96 per diluted share, for the fourth quarter of 2013 compared to $18.6 million, or $0.83 per diluted share, for the same period last year. fourth quarter 2013 earnings before interest, taxes, depreciation and amortization ("ebitda")(7) rose 9.1% to $43.9 million, compared to $40.2 million in the comparable quarter last year. in evaluating the company’s financial performance, management uses non-gaap financial measures, which exclude the effect of the following items (in thousands): adjusted ebitda(7) was $44.6 million, or 21.1% of revenues, in the fourth quarter of 2013 compared to $41.0 million, or 22.7% of revenues, in the comparable quarter last year. adjusted net income from continuing operations(7) was $24.0 million, or $1.05 per diluted share, for the fourth quarter of 2013 compared to $20.2 million, or $0.90 per diluted share, for the comparable period in 2012. the average number of full-time billable consultants(1) was 1,668 in the fourth quarter of 2013 compared to 1,470 in the same quarter last year. full-time billable consultant utilization rate(2) was 75.0% during the fourth quarter of 2013 compared with 76.3% during the same period last year. average billing rate per hour for full-time billable consultants(3) was $272 for the fourth quarter of 2013 compared to $246 for the fourth quarter of 2012. the average number of full-time equivalent professionals(4) was 1,312 in the fourth quarter of 2013 compared to 1,396 in the comparable period in 2012. full year 2013 results revenues increased 15.1% to $720.5 million for the full year 2013 compared to $626.0 million for the full year 2012. the company's operating income for the full year 2013 was $119.9 million, an increase of 63.3%, compared to $73.4 million for the full year 2012. net income from continuing operations increased 84.9% to $66.5 million, or $2.92 per diluted share, for the full year 2013 compared to $36.0 million, or $1.61 per diluted share, for the full year 2012. net income increased 82.4% to $66.4 million, or $2.92 per diluted share, for the full year 2013 compared to $36.4 million, or $1.63 per diluted share, for the full year 2012. ebitda(7) increased 49.8% to $143.5 million for the full year 2013 compared to $95.8 million for the full year 2012. in evaluating the company’s financial performance, management uses non-gaap financial measures, which exclude the effect of the following items (in thousands): adjusted ebitda(7) was $138.4 million, or 19.2% of revenues, for the full year 2013 compared to $115.8 million, or 18.5% of revenues, for the full year 2012. adjusted net income from continuing operations(7) was $67.5 million, or $2.96 per diluted share, for the full year 2013 compared to $52.2 million, or $2.34 per diluted share, for the full year 2012. the average number of full-time billable consultants(1) increased 13.4% to 1,565 for the full year 2013 compared to 1,380 for the full year 2012. full-time billable consultant utilization rate(2) was 75.9% for the full year 2013 compared with 75.6% for the full year 2012. average billing rate per hour for full-time billable consultants(3) was $233 for the full year 2013 compared to $225 for the full year 2012. the average number of full-time equivalent professionals(4) was 1,161 for the full year 2013 compared to 1,146 for the full year 2012. operating segments huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges. the company’s year-to-date revenues by operating segment as a percentage of total company revenues are as follows: huron healthcare (50%); huron legal (25%); huron education and life sciences (21%); and huron financial (4%). financial results by segment are included in the attached schedules and in huron's forthcoming form 10-k filing for the year ended december 31, 2013. effective january 1, 2014, the huron financial segment name was changed to huron business advisory. acquisitions on september 19, 2013, huron entered into an agreement to acquire the assets of blue stone international, llc, a provider of professional services supporting oracle enterprise performance management, information management and business intelligence solutions. the transaction closed on october 1, 2013. revenues for 2013 included $4.7 million from our fourth quarter acquisition of blue stone. on december 19, 2013, huron entered into an agreement to acquire the assets of the frankel group associates llc, a leading life sciences consulting firm. the transaction closed as of january 1, 2014. executive appointment effective today, c. mark hussey will take on the additional title of chief operating officer. hussey’s new title will be executive vice president, chief operating officer, chief financial officer and treasurer. “mark joined huron in july 2011, and since that time, he has made a tremendous contribution to the growth and success of our company,” said roth. “mark has gained the highest level of respect from the practices and within the corporate staff, enabling him to be efficient and effective in helping me execute our strategic and operational plans. i take great pleasure in promoting mark to his new position, particularly because it comes fully supported by our market-facing and corporate personnel, all of whom clearly recognize the value that he brings to huron.” share repurchase program the company's board of directors has authorized a share repurchase program pursuant to which the company may, from time to time, repurchase up to $50 million of its common stock through february 28, 2015. the amount and timing of the repurchases will be determined by management and will depend on a variety of factors, including the trading price of the company's common stock, general market and business conditions, and applicable legal requirements. outlook for 2014 based on currently available information, the company provided guidance for full year 2014 revenues before reimbursable expenses in a range of $765.0 million to $795.0 million. the company also anticipates ebitda(8) in a range of $141.0 million to $149.5 million, adjusted ebitda(8) in a range of $141.5 million to $150.0 million, gaap diluted earnings per share in a range of $2.80 to $3.00, and non-gaap adjusted diluted earnings per share(8) in a range of $3.00 to $3.20. management will provide a more detailed discussion of its outlook during the company’s earnings conference call webcast. fourth quarter and full year 2013 webcast the company will host a webcast to discuss its financial results today, february 25, 2014, at 5:00 p.m. eastern time (4:00 p.m. central time). the conference call is being webcast by nasdaq omx and can be accessed at huron consulting group’s website at http://ir.huronconsultinggroup.com. a replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter. use of non-gaap financial measures(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 from continuing operations and adjusted diluted earnings per share from continuing operations, which are non-gaap measures. management believes that such measures, as supplements to operating income, net income from continuing operations and diluted earnings per share from continuing operations and other gaap measures, are useful indicators for investors. these useful indicators can help readers gain a meaningful understanding of our core operating results and future prospects. investors should recognize that these non-gaap measures might not be comparable to similarly titled measures of other companies. these measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the united states. about huron consulting group huron consulting group helps clients in diverse industries improve performance, transform the enterprise, reduce costs, leverage technology, process and review large amounts of complex data, address regulatory changes, recover from distress and stimulate growth. our professionals employ their expertise in finance, operations, strategy and technology to provide our clients with specialized analyses and customized advice and solutions that are tailored to address each client's particular challenges and opportunities to deliver sustainable and measurable results. the company provides consulting services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, leading academic institutions, fortune 500 companies, governmental entities and law firms. huron has worked with more than 425 health systems, hospitals, and academic medical centers; more than 400 corporate general counsel; and more than 350 universities and research institutions. learn more at www.huronconsultinggroup.com. statements in this press release that are not historical in nature, including those concerning the company’s current expectations about its future requirements and needs, are “forward-looking” statements as defined in section 21e of the securities exchange act of 1934, as amended (the “exchange act”) and the private securities litigation reform act of 1995. forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans” or “continues.” these forward-looking statements reflect our current expectations about our future requirements and needs, results, levels of activity, performance, or achievements, including, without limitation, current expectations with respect to, among other factors, utilization rates, billing rates, and the number of revenue-generating professionals; that we are able to expand our service offerings; that we successfully integrate the businesses we acquire; and that existing market conditions continue to trend upward. these statements involve known and unknown risks, uncertainties and other factors, including, among others, those described under “item 1a. risk factors” in our forthcoming annual report on form 10-k for the year ended december 31, 2013, 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. direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses): reimbursable expenses year ended december 31, huron consulting group inc. segment operating results and other operating data (unaudited) percent increase (decrease) huron consulting group inc. segment operating results and other operating data (continued) (unaudited) huron consulting group inc. segment operating results and other operating data (unaudited) percent increase (decrease) huron consulting group inc. segment operating results and other operating data (continued) (unaudited) huron consulting group inc. reconciliation of net income from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (7) (in thousands) (unaudited) huron consulting group inc. reconciliation of net income from continuing operations to adjusted net income from continuing operations (7) (in thousands) (unaudited) huron consulting group inc. reconciliation of non-gaap measures for full year 2014 outlook reconciliation of net income from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (8) (in millions) (unaudited) amortization (ebitda) (8) reconciliation of net income from continuing operations to adjusted net income from continuing operations (8) (in millions) (unaudited) continuing operations (8)
