Huron announces fourth quarter and full year 2022 financial results, and provides 2023 guidance
Chicago--(business wire)--global professional services firm huron (nasdaq: hurn) today announced financial results for the fourth quarter and full year ended december 31, 2022. “we achieved record revenues in the fourth quarter and full year 2022, growing revenues 26% and 25%, respectively. revenue growth for both the fourth quarter and the full year was strong across all three operating segments and bolstered by continued growth in our digital capability, which increased 41% in 2022. our full year adjusted ebitda margins improved 80 basis points over the prior year, reflecting solid progress toward our objective of returning to mid-teen ebitda margins by 2025,” said mark hussey, chief executive officer and president of huron. “going forward, our business trajectory and financial strength position us to continue creating long-term shareholder value. with our leading market positions in healthcare and education, our growing presence in commercial industries, our rapidly growing digital capability, and the ongoing market demand for our offerings, we believe we have established a solid foundation for continued growth and increased profitability in 2023,” added hussey. fourth quarter 2022 results revenues increased $65.4 million, or 26.3%, to $313.7 million for the fourth quarter of 2022, compared to $248.3 million for the fourth quarter of 2021. this revenue growth was highlighted by 37.0% growth in the digital capability and 19.8% growth in the consulting and managed services capability in the aggregate across all industries during the fourth quarter of 2022 compared to the same prior year period. net income was $17.1 million for the fourth quarter of 2022 compared to $31.1 million for the same quarter last year. diluted earnings per share was $0.85 for the fourth quarter of 2022 compared to $1.45 for the fourth quarter of 2021. results for the fourth quarter of 2021 include a $23.7 million gain, net of tax, from the sale of the company's life sciences business in the fourth quarter of 2021. fourth quarter 2022 earnings before interest, taxes, depreciation and amortization ("ebitda")(7) was $34.5 million, compared to $50.0 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 december 31, 2022 2021 amortization of intangible assets $ 2,702 $ 2,328 restructuring charges $ 4,953 $ 9,235 other losses (gains) $ (159 ) $ 100 transaction-related expenses $ — $ 1,447 gain on sale of business $ — $ (31,510 ) tax effect of adjustments $ (1,986 ) $ 4,530 foreign currency transaction losses (gains), net $ (246 ) $ 21 adjusted ebitda(7) increased $9.7 million, or 33.1%, to $39.0 million, or 12.4% of revenues, in the fourth quarter of 2022, compared to $29.3 million, or 11.8% of revenues, in the same quarter last year. adjusted net income(7) increased $5.4 million, or 31.5%, to $22.6 million, or $1.12 per diluted share, for the fourth quarter of 2022, compared to $17.2 million, or $0.80 per diluted share, for the same quarter in 2021. the number of revenue-generating professionals(1) increased 28.0% to 4,832 as of december 31, 2022 from 3,776 as of december 31, 2021. the utilization rate(5) of the company's consulting capability increased to 80.6% during the fourth quarter 2022, compared to 69.9% during the same period last year. the utilization rate(5) for the company's digital capability decreased to 69.4% during the fourth quarter 2022, compared to 71.2% during the same period last year. additionally, in the fourth quarter of 2022, huron repurchased 331,165 shares of the company's common stock for $23.5 million. full year 2022 results revenues increased $226.8 million, or 25.0%, to $1.132 billion for full year 2022, compared to $905.6 million for full year 2021. this revenue growth was highlighted by 41.4% growth from the digital capability in the aggregate across all industries and growth in the education and healthcare segments' consulting and managed services capabilities of 46.4% and 11.8%, respectively, for full year 2022 compared to the same prior year period. net income increased $12.6 million, or 19.9%, to $75.6 million for full year 2022, compared to $63.0 million for full year 2021. diluted earnings per share increased $0.75, or 26.0%, to $3.64 for full year 2022, compared to $2.89 for the same period last year. results for full year 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. results for full year 2021 include a $23.7 million gain, net of tax, from the sale of the company's life sciences business in the fourth quarter of 2021. ebitda(7) for full year 2022 increased $34.2 million, or 29.8%, to $148.7 million, compared to $114.5 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): twelve months ended december 31, 2022 2021 amortization of intangible assets $ 11,198 $ 9,251 restructuring charges $ 9,909 $ 12,401 other losses (gains) $ (193 ) $ 198 transaction-related expenses $ 50 $ 1,782 unrealized gain on preferred stock investment $ (26,964 ) $ — gain on sale of business $ — $ (31,510 ) tax effect of adjustments $ 1,590 $ 1,742 foreign currency transaction losses (gains), net $ (655 ) $ 419 adjusted ebitda(7) increased $33.0 million, or 33.8%, to $130.8 million, or 11.6% of revenues, for full year 2022, compared to $97.8 million, or 10.8% of revenues, for the same period last year. adjusted net income(7) increased $14.3 million, or 25.1%, to $71.1 million, or $3.43 per diluted share, for full year 2022, compared to $56.9 million, or $2.61 per diluted share, for full year 2021. the number of revenue-generating professionals(1) increased 28.0% to 4,832 as of december 31, 2022 from 3,776 as of december 31, 2021. the utilization rate(5) of the company's consulting capability increased to 75.2% for full year 2022, compared to 70.6% during the same period last year. the utilization rate(5) for the company's digital capability decreased to 71.0% for full year 2022, compared to 72.5% during the same period last year. additionally, in 2022, huron repurchased 2,037,752 shares of the company's common stock for $121.3 million, representing 9.3% of the common stock outstanding as of december 31, 2021. operating industries huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges. the company’s full year 2022 revenues by operating segment as a percentage of total company revenues are as follows: healthcare (47%); education (32%); and commercial (21%). financial results by operating industry are included in the attached schedules and in huron's forthcoming annual report on form 10-k filing for the year ended december 31, 2022. outlook for 2023 based on currently available information, the company provided guidance for full year 2023 revenues before reimbursable expenses in a range of $1.22 billion to $1.28 billion. the company 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 in a range of $3.75 to $4.25. management will provide a more detailed discussion of its outlook during the company's earnings conference call webcast. fourth quarter 2022 webcast the company will host a webcast to discuss its financial results today, february 28, 2023, at 5:00 p.m. eastern time, 4:00 p.m. central time. the conference call is being webcast by notified 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. about huron 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: failure to achieve expected utilization rates, billing rates, and the necessary 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, 2022 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 december 31, twelve months ended december 31, 2022 2021 2022 2021 revenues and reimbursable expenses: revenues $ 313,711 $ 248,294 $ 1,132,455 $ 905,640 reimbursable expenses 7,472 12,442 26,506 21,318 total revenues and reimbursable expenses 321,183 260,736 1,158,961 926,958 operating expenses: direct costs (exclusive of depreciation and amortization included below) 216,033 173,233 785,881 636,776 reimbursable expenses 7,422 12,136 26,671 21,369 selling, general and administrative expenses 60,495 49,510 209,381 178,084 restructuring charges 4,953 9,235 9,909 12,401 depreciation and amortization 6,781 6,458 27,359 25,489 total operating expenses 295,684 250,572 1,059,201 874,119 operating income 25,499 10,164 99,760 52,839 other income (expense), net: interest expense, net of interest income (4,130 ) (2,185 ) (11,883 ) (8,150 ) other income, net 2,001 33,170 20,700 35,347 total other income (expense), net (2,129 ) 30,985 8,817 27,197 income before taxes 23,370 41,149 108,577 80,036 income tax expense 6,286 10,091 33,025 17,049 net income $ 17,084 $ 31,058 $ 75,552 $ 62,987 earnings per share: net income per basic share $ 0.88 $ 1.48 $ 3.73 $ 2.94 net income per diluted share $ 0.85 $ 1.45 $ 3.64 $ 2.89 weighted average shares used in calculating earnings per share: basic 19,470 21,039 20,249 21,439 diluted 20,159 21,466 20,746 21,809 comprehensive income (loss): net income $ 17,084 $ 31,058 $ 75,552 $ 62,987 foreign currency translation adjustments, net of tax (157 ) (1,161 ) (1,890 ) (925 ) unrealized gain (loss) on investment, net of tax (3,428 ) 3,237 (6,146 ) 1,169 unrealized gain on cash flow hedging instruments, net of tax 257 1,579 9,315 3,535 other comprehensive income (loss) (3,328 ) 3,655 1,279 3,779 comprehensive income $ 13,756 $ 34,713 $ 76,831 $ 66,766 huron consulting group inc. consolidated balance sheets (in thousands, except share and per share amounts) (unaudited) december 31, 2022 december 31, 2021 assets current assets: cash and cash equivalents $ 11,834 $ 20,781 receivables from clients, net 147,852 122,316 unbilled services, net 141,781 91,285 income tax receivable 960 8,071 prepaid expenses and other current assets 26,057 15,229 total current assets 328,484 257,682 property and equipment, net 26,107 31,004 deferred income taxes, net 1,554 1,804 long-term investments 91,194 72,584 operating lease right-of-use assets 30,304 35,311 other non-current assets 73,039 68,191 intangible assets, net 23,392 31,894 goodwill 624,966 620,879 total assets $ 1,199,040 $ 1,119,349 liabilities and stockholders’ equity current liabilities: accounts payable $ 14,254 $ 13,621 accrued expenses and other current liabilities 27,268 22,519 accrued payroll and related benefits 171,723 139,131 current maturities of long-term debt — 559 current maturities of operating lease liabilities 10,530 10,142 deferred revenues 21,909 19,212 total current liabilities 245,684 205,184 non-current liabilities: deferred compensation and other liabilities 33,614 43,458 long-term debt, net of current portion 290,000 232,221 operating lease liabilities, net of current portion 45,556 54,313 deferred income taxes, net 32,146 12,273 total non-current liabilities 401,316 342,265 commitments and contingencies stockholders’ equity common stock; $0.01 par value; 500,000,000 shares authorized; 22,507,159 and 24,364,814 shares issued, respectively 223 239 treasury stock, at cost, 2,711,712 and 2,495,172 shares, respectively (137,556 ) (135,969 ) additional paid-in capital 318,706 413,794 retained earnings 352,548 276,996 accumulated other comprehensive income 18,119 16,840 total stockholders’ equity 552,040 571,900 total liabilities and stockholders’ equity $ 1,199,040 $ 1,119,349 huron consulting group inc. consolidated statements of cash flows (in thousands) (unaudited) twelve months ended december 31, 2022 2021 cash flows from operating activities: net income $ 75,552 $ 62,987 adjustments to reconcile net income to cash flows provided by operating activities: depreciation and amortization 27,359 25,978 non-cash lease expense 6,369 6,967 lease-related impairment charges 211 — share-based compensation 30,971 25,857 amortization of debt discount and issuance costs 1,169 794 allowances for doubtful accounts 141 13 deferred income taxes 18,784 12,480 gain on sale of property and equipment, excluding transaction costs (1,111 ) (343 ) gain on sale of business, excluding transaction costs — (32,824 ) change in fair value of contingent consideration liabilities (359 ) 173 change in fair value of preferred stock investment (26,964 ) — other, net 6 (78 ) changes in operating assets and liabilities, net of acquisitions and divestiture: (increase) decrease in receivables from clients, net (25,847 ) (39,845 ) (increase) decrease in unbilled services, net (51,359 ) (38,820 ) (increase) decrease in current income tax receivable / payable, net 7,673 (2,723 ) (increase) decrease in other assets 2,532 (2,670 ) increase (decrease) in accounts payable and other liabilities (13,466 ) 10,394 increase (decrease) in accrued payroll and related benefits 32,770 (2,636 ) increase (decrease) in deferred revenues 969 (7,717 ) net cash provided by operating activities 85,400 17,987 cash flows from investing activities: purchases of property and equipment (12,547 ) (10,871 ) investments in life insurance policies (872 ) (1,245 ) distributions from life insurance policies 3,377 — purchases of businesses, net of cash acquired (3,448 ) (44,819 ) capitalization of internally developed software costs (11,752 ) (4,889 ) proceeds from note receivable 154 — proceeds from sale of property and equipment 4,753 408 divestiture of business 207 41,273 net cash used in investing activities (20,128 ) (20,143 ) cash flows from financing activities: proceeds from exercise of stock options 1,421 804 shares redeemed for employee tax withholdings (7,795 ) (10,103 ) share repurchases (120,393 ) (64,612 ) proceeds from bank borrowings 314,000 235,000 repayments of bank borrowings (256,780 ) (205,499 ) payments for debt issuance costs (2,686 ) — deferred payments on business acquisitions (1,875 ) — net cash used in financing activities (74,108 ) (44,410 ) effect of exchange rate changes on cash (111 ) 170 net decrease in cash and cash equivalents (8,947 ) (46,396 ) cash and cash equivalents at beginning of the period 20,781 67,177 cash and cash equivalents at end of the period $ 11,834 $ 20,781 huron consulting group inc. segment operating results and other operating data (unaudited) three months ended december 31, percent increase (decrease) twelve months ended december 31, percent increase (decrease) segment and consolidated operating results (in thousands): 2022 2021 2022 2021 healthcare: revenues $ 153,330 $ 129,422 18.5 % $ 534,999 $ 444,767 20.3 % operating income $ 39,786 $ 31,813 25.1 % $ 131,227 $ 118,324 10.9 % segment operating margin 25.9 % 24.6 % 24.5 % 26.6 % education: revenues $ 96,601 $ 67,313 43.5 % $ 359,835 $ 242,374 48.5 % operating income $ 20,076 $ 15,203 32.1 % $ 78,924 $ 52,398 50.6 % segment operating margin 20.8 % 22.6 % 21.9 % 21.6 % commercial: revenues $ 63,780 $ 51,559 23.7 % $ 237,621 $ 218,499 8.8 % operating income $ 11,743 $ 5,144 128.3 % $ 50,025 $ 34,296 45.9 % segment operating margin 18.4 % 10.0 % 21.1 % 15.7 % total huron: revenues $ 313,711 $ 248,294 26.3 % $ 1,132,455 $ 905,640 25.0 % reimbursable expenses 7,472 12,442 (39.9 )% 26,506 21,318 24.3 % total revenues and reimbursable expenses $ 321,183 $ 260,736 23.2 % $ 1,158,961 $ 926,958 25.0 % segment operating income $ 71,605 $ 52,160 37.3 % $ 260,176 $ 205,018 26.9 % items not allocated at the segment level: other operating expenses 41,006 36,911 11.1 % 140,145 131,545 6.5 % depreciation and amortization 5,100 5,085 0.3 % 20,271 20,634 (1.8 )% total operating income 25,499 10,164 150.9 % 99,760 52,839 88.8 % other income (expense), net (2,129 ) 30,985 (106.9 )% 8,817 27,197 (67.6 )% income before taxes $ 23,370 $ 41,149 (43.2 )% $ 108,577 $ 80,036 35.7 % other operating data: number of revenue-generating professionals by segment (at period end) (1)(6): healthcare 1,890 1,596 18.4 % 1,890 1,596 18.4 % education 1,579 1,050 50.4 % 1,579 1,050 50.4 % commercial (2) 1,363 1,130 20.6 % 1,363 1,130 20.6 % total 4,832 3,776 28.0 % 4,832 3,776 28.0 % revenue by capability: consulting and managed services (3) $ 183,638 $ 153,339 19.8 % $ 637,994 $ 555,915 14.8 % digital 130,073 94,955 37.0 % 494,461 349,725 41.4 % total $ 313,711 $ 248,294 26.3 % $ 1,132,455 $ 905,640 25.0 % number of revenue-generating professionals by capability (at period end)(1): consulting and managed services (4) 2,294 1,838 24.8 % 2,294 1,838 24.8 % digital 2,538 1,938 31.0 % 2,538 1,938 31.0 % total 4,832 3,776 28.0 % 4,832 3,776 28.0 % utilization rate by capability (5): consulting 80.6 % 69.9 % 75.2 % 70.6 % digital 69.4 % 71.2 % 71.0 % 72.5 % 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. the majority of our revenue-generating professionals within our commercial segment can provide services across all of our industries, including healthcare and education. managed services capability revenues within our healthcare segment was $20.1 million and $12.3 million for the three months ended december 31, 2022 and 2021, respectively; and $67.6 million and $47.7 million for the year ended december 31, 2022 and 2021, respectively. managed services capability revenues within our education segment was $4.4 million and $2.3 million for the three months ended december 31, 2022 and 2021, respectively; and $15.7 million and $9.1 million for the year ended december 31, 2022 and 2021, respectively. the number of managed services revenue-generating professionals within our healthcare segment as of december 31, 2022 and 2021 was 715 and 509, respectively. the number of managed services revenue-generating professionals within our education segment as of december 31, 2022 and 2021 was 106 and 72, respectively. 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. 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. huron consulting group inc. reconciliation of net income to adjusted earnings before interest, taxes, depreciation and amortization (7) (in thousands) (unaudited) three months ended december 31, twelve months ended december 31, 2022 2021 2022 2021 revenues $ 313,711 $ 248,294 $ 1,132,455 $ 905,640 net income $ 17,084 $ 31,058 $ 75,552 $ 62,987 add back: income tax expense 6,286 10,091 33,025 17,049 interest expense, net of interest income 4,130 2,185 11,883 8,150 depreciation and amortization 6,995 6,707 28,233 26,347 earnings before interest, taxes, depreciation and amortization (ebitda) (7) 34,495 50,041 148,693 114,533 add back: restructuring charges 4,953 9,235 9,909 12,401 other losses (gains) (159 ) 100 (193 ) 198 transaction-related expenses — 1,447 50 1,782 unrealized gain on preferred stock investment — — (26,964 ) — gain on sale of business — (31,510 ) — (31,510 ) foreign currency transaction losses (gains), net (246 ) 21 (655 ) 419 adjusted ebitda (7) $ 39,043 $ 29,334 $ 130,840 $ 97,823 adjusted ebitda as a percentage of revenues (7) 12.4 % 11.8 % 11.6 % 10.8 % huron consulting group inc. reconciliation of net income to adjusted net income (7) (in thousands, except per share amounts) (unaudited) three months ended december 31, twelve months ended december 31, 2022 2021 2022 2021 net income $ 17,084 $ 31,058 $ 75,552 $ 62,987 weighted average shares - diluted 20,159 21,466 20,746 21,809 diluted earnings per share $ 0.85 $ 1.45 $ 3.64 $ 2.89 add back: amortization of intangible assets 2,702 2,328 11,198 9,251 restructuring charges 4,953 9,235 9,909 12,401 other losses (gains) (159 ) 100 (193 ) 198 transaction-related expenses — 1,447 50 1,782 unrealized gain on preferred stock investment — — (26,964 ) — gain on sale of business — (31,510 ) — (31,510 ) tax effect of adjustments (1,986 ) 4,530 1,590 1,742 total adjustments, net of tax 5,510 (13,870 ) (4,410 ) (6,136 ) adjusted net income (7) $ 22,594 $ 17,188 $ 71,142 $ 56,851 adjusted weighted average shares - diluted 20,159 21,466 20,746 21,809 adjusted diluted earnings per share (7) $ 1.12 $ 0.80 $ 3.43 $ 2.61 (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.
