Huron consulting group announces third quarter 2013 financial results

Chicago--(business wire)--huron consulting group inc. (nasdaq: hurn), a leading provider of business consulting services, today announced financial results for the third quarter ended september 30, 2013. "huron’s third quarter performance, highlighted by strong demand for our healthcare solutions, continues to demonstrate the value our consultants provide to clients who are highly focused on improving their strategic and operational performance,” said james h. roth, chief executive officer and president, huron consulting group. “the outlook across our businesses remains positive, and we are well positioned to drive future growth in those markets.” third quarter 2013 results revenues for the third quarter of 2013 were $174.7 million, an increase of 7.9%, compared to $161.9 million for the third quarter of 2012. the company's third quarter 2013 operating income increased 51.3% to $31.1 million, compared to $20.6 million in the third quarter of 2012. net income from continuing operations was $17.2 million, or $0.75 per diluted share, for the third quarter of 2013 compared to $10.4 million, or $0.47 per diluted share, for the same period last year. net income was $17.2 million, or $0.75 per diluted share, for the third quarter of 2013, compared to $10.5 million, or $0.47 per diluted share, for the same period last year. third quarter 2013 earnings before interest, taxes, depreciation and amortization ("ebitda")(6) increased 40.2% to $36.8 million, or 21.0% of revenues, compared to $26.2 million, or 16.2% of revenues, in the comparable quarter last year. in evaluating the company’s financial performance, management uses non-gaap financial measures including adjusted ebitda(6) and adjusted net income from continuing operations(6) that exclude the effect of the following items (in thousands): during the third quarter of 2013, the company reached a settlement agreement to resolve a lawsuit brought by huron, resulting in a gain of $5.3 million being recorded. huron collected $2.6 million of the settlement amount during the fourth quarter of 2013, and the company anticipates the remaining amount will be collected during the first quarter of 2014. adjusted ebitda(6) was $31.5 million, or 18.0% of revenues, in the third quarter of 2013, compared to $41.6 million, or 25.7% of revenues, in the comparable quarter last year. adjusted net income from continuing operations(6) was $14.8 million, or $0.65 per diluted share, for the third quarter of 2013 compared to $20.8 million, or $0.93 per diluted share, for the comparable period in 2012. reconciliations of the aforementioned non-gaap financial measures to comparable gaap measures are provided in the financial schedules accompanying this news release. the average number of full-time billable consultants(1) rose 11.0% to 1,559 in the third quarter of 2013 compared to 1,405 in the same quarter last year. full-time billable consultant utilization rate was 73.9% during the third quarter of 2013 compared with 73.8% during the same period last year. average billing rate per hour for full-time billable consultants(3) was $234 for the third quarter of 2013 compared to $241 for the third quarter of 2012. the average number of full-time equivalent professionals(4) totaled 1,066 in the third quarter of 2013 compared to 1,173 for the comparable period in 2012. year-to-date 2013 results revenues for the first nine months of 2013 rose 14.4% to $509.2 million compared to $445.2 million for the first nine months of 2012. the company's operating income for the first nine months of 2013 rose 113.4% to $83.0 million compared to $38.9 million in the first nine months of 2012. net income from continuing operations rose 156.2% to $44.3 million, or $1.95 per diluted share, for the first nine months of 2013 compared to $17.3 million, or $0.78 per diluted share, for the same period last year. net income increased 148.6% to $44.3 million, or $1.95 per diluted share, for the first nine months of 2013 compared to $17.8 million, or $0.80 per diluted share, for the same period last year. ebitda(6) was $99.6 million, or 19.6% of revenues, for the first nine months of 2013, compared to $55.6 million, or 12.5% of revenues, for the same period in 2012. in evaluating the company’s financial performance, management uses non-gaap financial measures including adjusted ebitda(6) and adjusted net income from continuing operations(6) that exclude the effect of the following items (in thousands): nine months endedseptember 30, adjusted ebitda(6) was $93.8 million, or 18.4% of revenues, in the first nine months of 2013 compared to $74.8 million, or 16.8% of revenues, in the comparable period last year. adjusted net income from continuing operations(6) was $43.4 million, or $1.91 per diluted share, for the first nine months of 2013 compared to $32.0 million, or $1.44 per diluted share, for the comparable period in 2012. reconciliations of the aforementioned non-gaap financial measures to comparable gaap measures are provided in the financial schedules accompanying this news release. the average number of full-time billable consultants(1) increased 13.4% to 1,530 in the first nine months of 2013 compared to 1,349 in the same period last year. full-time billable consultant utilization rate was 76.2% during the first nine months of 2013 compared with 75.4% during the same period last year. average billing rate per hour for full-time billable consultants(3) was $219 for the first nine months of 2013 compared to $217 for the same period last year. the average number of full-time equivalent professionals(4) increased slightly to 1,112 in the first nine months of 2013 from 1,071 in the comparable period of 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 are as follows: huron healthcare (48%); huron legal (26%); huron education and life sciences (21%); and huron financial (5%). financial results by segment are included in the attached schedules and in huron's forthcoming form 10-q filing for the quarter ended september 30, 2013. acquisition 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. outlook for 2013(7) based on currently available information, the company raises guidance, which was previously announced on july 30, 2013, for full year 2013 revenues before reimbursable expenses in a range of $685.0 million to $700.0 million, which includes approximately $5.0 million for the recent acquisition of blue stone international, llc. the company also anticipates ebitda in a range of $133.0 million to $138.0 million, adjusted ebitda in a range of $127.0 million to $132.0 million, gaap diluted earnings per share in a range of $2.55 to $2.67, and non-gaap adjusted diluted earnings per share in a range of $2.60 to $2.72. management will provide a more detailed discussion of its outlook during the company’s earnings conference call webcast. third quarter 2013 webcast the company will host a webcast to discuss its financial results today, november 6, 2013, at 5:00 p.m. eastern time (4:00 p.m. central time). the conference call is being webcast by thomson 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. about huron consulting group huron consulting group helps clients in diverse industries improve performance, 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 administration, management, 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 90 of the top 100 research universities, more than 400 corporate general counsel, and more than 385 hospitals and academic medical centers. learn more at www.huronconsultinggroup.com. 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 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. 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 annual report on form 10-k for the year ended december 31, 2012 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. three months endedseptember 30, nine months endedseptember 30, september 30,2013 december 31,2012 total current assets total current liabilities nine months endedseptember 30, huron consulting group inc. segment operating results and other operating data (unaudited) percentincrease(decrease) huron consulting group inc. segment operating results and other operating data (continued) (unaudited) three months endedseptember 30, huron consulting group inc. segment operating results and other operating data (unaudited) percentincrease(decrease) huron consulting group inc. segment operating results and other operating data (continued) (unaudited) n/m – not meaningful huron consulting group inc. reconciliation of net income from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (6) (in thousands) (unaudited) huron consulting group inc. reconciliation of net income from continuing operations to adjusted net income from continuing operations (6) (in thousands) (unaudited) 22,326 22,712 $ 0.47 $ 1.95 huron consulting group inc. reconciliation of non-gaap measures for full year 2013 outlook reconciliation of net income from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (7) (in millions) (unaudited) reconciliation of net income from continuing operations to adjusted net income from continuing operations (7) (in millions) (unaudited) 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 from continuing operations, and projected adjusted diluted earnings per share from continuing operations, which are non-gaap measures. management believes that the use of such measures, as supplements to projected net income from continuing operations and projected 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 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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