Huron announces third quarter 2022 financial results and updates 2022 guidance
Chicago--(business wire)--global professional services firm huron (nasdaq: hurn) today announced financial results for the third quarter ended september 30, 2022. “our third quarter performance continued to reflect strong growth across all three operating segments. we achieved 27% revenue growth over the third quarter of 2021, primarily reflecting ongoing momentum in our healthcare and education industries, and continued growth in our digital capability,” said james h. roth, chief executive officer of huron. “market conditions have been favorable across our collective set of offerings and despite increased economic uncertainties, we anticipate strong demand in the coming quarters.” third quarter 2022 results revenues increased $61.4 million, or 27.4%, to $285.4 million for the third quarter of 2022, compared to $224.0 million for the third quarter of 2021. this revenue growth was highlighted by 45.5% growth from the digital capability across all industries and growth in the education and healthcare segments' consulting and managed services capability of 45.9% and 16.6%, respectively, during the third quarter of 2022 compared to the same prior year period. net income increased $4.0 million, or 29.2%, to $17.7 million for the third quarter of 2022, compared to $13.7 million for the same quarter last year. diluted earnings per share increased $0.22, or 34.4%, to $0.86 for the third quarter of 2022, compared to $0.64 for the third quarter of 2021. third quarter 2022 earnings before interest, taxes, depreciation and amortization ("ebitda")(7) increased $11.1 million, or 45.4%, to $35.5 million, compared to $24.4 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 september 30, 2022 2021 amortization of intangible assets $ 2,818 $ 2,235 restructuring charges $ 1,332 $ 1,677 other losses (gains) $ (67 ) $ 56 transaction-related expenses $ — $ 194 tax effect of adjustments $ (1,082 ) $ (1,103 ) foreign currency transaction losses (gains), net $ (328 ) $ 43 adjusted ebitda(7) increased $10.1 million, or 38.1%, to $36.5 million, or 12.8% of revenues, in the third quarter of 2022, compared to $26.4 million, or 11.8% of revenues, in the same quarter last year. adjusted net income(7) increased $4.0 million to $20.7 million, or $1.01 per diluted share, for the third quarter of 2022, compared to $16.8 million, or $0.78 per diluted share, for the same quarter in 2021. the number of revenue-generating professionals(1) increased 22.7% to 4,571 as of september 30, 2022 from 3,724 as of september 30, 2021. the utilization rate(5) of the company's consulting capability increased to 72.5% during the third quarter 2022, compared to 71.5% during the same period last year. the utilization rate(5) for the company's digital capability decreased to 70.1% during the third quarter 2022, compared to 74.2% during the same period last year. additionally, in the third quarter of 2022, huron repurchased 685,641 shares of the company's common stock for $45.6 million. year-to-date 2022 results revenues increased $161.4 million, or 24.6%, to $818.7 million for the first nine months of 2022, compared to $657.3 million for the first nine months of 2021. this revenue growth was highlighted by 43.0% growth from the digital capability across all industries and growth in the education and healthcare segments' consulting and managed services capability of 49.8% and 12.1%, respectively, during the first nine months of 2022 compared to the same prior year period. net income increased $26.5 million, or 83.1%, to $58.5 million for the first nine months of 2022, compared to $31.9 million for the first nine months of 2021. diluted earnings per share increased $1.34, or 91.8%, to $2.80 for the third quarter of 2022, compared to $1.46 for the same period last year. results for the first nine months 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. ebitda(7) for the first nine months of 2022 increased $49.7 million, or 77.1%, to $114.2 million, compared to $64.5 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): nine months ended september 30, 2022 2021 amortization of intangible assets $ 8,496 $ 6,923 restructuring charges $ 4,956 $ 3,166 other losses (gains) $ (34 ) $ 98 transaction-related expenses $ 50 $ 335 unrealized gain on preferred stock investment $ (26,964 ) $ — tax effect of adjustments $ 3,576 $ (2,788 ) foreign currency transaction losses (gains), net $ (409 ) $ 398 adjusted ebitda(7) increased $23.3 million, or 34.0%, to $91.8 million, or 11.2% of revenues, for the first nine months of 2022, compared to $68.5 million, or 10.4% of revenues, for the same period last year. adjusted net income(7) increased $8.9 million, or 22.4%, to $48.5 million, or $2.32 per diluted share, for the first nine months of 2022, compared to $39.7 million, or $1.81 per diluted share, for the first nine months of 2021. the number of revenue-generating professionals(1) increased 22.7% to 4,571 as of september 30, 2022 from 3,724 as of september 30, 2021. the utilization rate(5) of the company's consulting capability increased to 73.0% during the first nine months of 2022, compared to 70.8% during the same period last year. the utilization rate(5) for the company's digital capability decreased to 71.6% during the first nine months 2022, compared to 72.9% during the same period last year. additionally, in the first nine months of 2022, huron repurchased 1,706,587 shares of the company's common stock for $97.9 million, representing 7.8% 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 year-to-date 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 quarterly report on form 10-q filing for the quarter ended september 30, 2022. outlook for 2022 based on currently available information, the company increased and narrowed guidance for full year 2022 revenues before reimbursable expenses to a range of $1.09 billion to $1.11 billion. the company anticipates adjusted ebitda as a percentage of revenues in a range of 11.5% to 12.0% and non-gaap adjusted diluted earnings per share in a range of $3.25 to $3.35. management will provide a more detailed discussion of its outlook during the company's earnings conference call webcast. third quarter 2022 webcast the company will host a webcast to discuss its financial results today, november 1, 2022, 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: 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 september 30, nine months ended september 30, 2022 2021 2022 2021 revenues and reimbursable expenses: revenues $ 285,370 $ 224,007 $ 818,744 $ 657,346 reimbursable expenses 6,816 3,690 19,034 8,876 total revenues and reimbursable expenses 292,186 227,697 837,778 666,222 operating expenses: direct costs (exclusive of depreciation and amortization included below) 193,368 153,902 569,848 463,543 reimbursable expenses 6,917 3,914 19,249 9,233 selling, general and administrative expenses 54,458 43,576 148,886 128,574 restructuring charges 1,332 1,677 4,956 3,166 depreciation and amortization 6,812 6,322 20,578 19,031 total operating expenses 262,887 209,391 763,517 623,547 operating income 29,299 18,306 74,261 42,675 other income (expense), net: interest expense, net of interest income (3,111 ) (2,217 ) (7,753 ) (5,965 ) other income (expense), net (785 ) (394 ) 18,699 2,177 total other income (expense), net (3,896 ) (2,611 ) 10,946 (3,788 ) income before taxes 25,403 15,695 85,207 38,887 income tax expense 7,662 1,968 26,739 6,958 net income $ 17,741 $ 13,727 $ 58,468 $ 31,929 earnings per share: net income per basic share $ 0.88 $ 0.65 $ 2.85 $ 1.48 net income per diluted share $ 0.86 $ 0.64 $ 2.80 $ 1.46 weighted average shares used in calculating earnings per share: basic 20,109 21,242 20,511 21,574 diluted 20,615 21,531 20,899 21,904 comprehensive income (loss): net income $ 17,741 $ 13,727 $ 58,468 $ 31,929 foreign currency translation adjustments, net of tax (1,034 ) (246 ) (1,733 ) 236 unrealized gain (loss) on investment, net of tax (830 ) 1,158 (2,718 ) (2,068 ) unrealized gain on cash flow hedging instruments, net of tax 3,762 309 9,058 1,956 other comprehensive income 1,898 1,221 4,607 124 comprehensive income $ 19,639 $ 14,948 $ 63,075 $ 32,053 huron consulting group inc. consolidated balance sheets (in thousands, except share and per share amounts) (unaudited) september 30, 2022 december 31, 2021 assets current assets: cash and cash equivalents $ 8,831 $ 20,781 receivables from clients, net 166,734 122,316 unbilled services, net 122,317 91,285 income tax receivable 213 8,071 prepaid expenses and other current assets 25,524 15,229 total current assets 323,619 257,682 property and equipment, net 26,187 31,004 deferred income taxes, net 1,625 1,804 long-term investments 95,854 72,584 operating lease right-of-use assets 32,112 35,311 other non-current assets 65,993 68,191 intangible assets, net 25,453 31,894 goodwill 623,841 620,879 total assets $ 1,194,684 $ 1,119,349 liabilities and stockholders’ equity current liabilities: accounts payable $ 15,115 $ 13,621 accrued expenses and other current liabilities 32,016 22,519 accrued payroll and related benefits 118,195 139,131 current maturities of long-term debt — 559 current maturities of operating lease liabilities 10,414 10,142 deferred revenues 20,378 19,212 total current liabilities 196,118 205,184 non-current liabilities: deferred compensation and other liabilities 31,487 43,458 long-term debt, net of current portion 341,000 232,221 operating lease liabilities, net of current portion 48,221 54,313 deferred income taxes, net 21,597 12,273 total non-current liabilities 442,305 342,265 commitments and contingencies stockholders’ equity common stock; $0.01 par value; 500,000,000 shares authorized; 22,853,524 and 24,364,814 shares issued, respectively 225 239 treasury stock, at cost, 2,696,264 and 2,495,172 shares, respectively (137,000 ) (135,969 ) additional paid-in capital 336,125 413,794 retained earnings 335,464 276,996 accumulated other comprehensive income 21,447 16,840 total stockholders’ equity 556,261 571,900 total liabilities and stockholders’ equity $ 1,194,684 $ 1,119,349 huron consulting group inc. consolidated statements of cash flows (in thousands) (unaudited) nine months ended september 30, 2022 2021 cash flows from operating activities: net income $ 58,468 $ 31,929 adjustments to reconcile net income to cash flows from operating activities: depreciation and amortization 20,578 19,245 non-cash lease expense 4,768 4,912 share-based compensation 23,083 17,979 amortization of debt discount and issuance costs 595 595 allowances for doubtful accounts 47 7 deferred income taxes 7,133 2,434 gain on sale of property and equipment, excluding transaction costs (1,117 ) (254 ) change in fair value of contingent consideration liabilities (34 ) 98 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 (44,759 ) (23,294 ) (increase) decrease in unbilled services, net (31,937 ) (40,883 ) (increase) decrease in current income tax receivable / payable, net 14,704 3,159 (increase) decrease in other assets 3,468 98 increase (decrease) in accounts payable and other liabilities (14,538 ) 2,229 increase (decrease) in accrued payroll and related benefits (18,883 ) (35,958 ) increase (decrease) in deferred revenues (397 ) (10,424 ) net cash used in operating activities (5,779 ) (28,206 ) cash flows from investing activities: purchases of property and equipment (9,768 ) (8,918 ) investment in life insurance policies (283 ) (574 ) distributions from life insurance policies 2,958 — purchases of businesses, net of cash acquired (1,948 ) (5,886 ) capitalization of internally developed software costs (6,855 ) (3,603 ) proceeds from note receivable 157 — proceeds from sale of property and equipment 4,753 255 divestiture of business 207 — net cash used in investing activities (10,779 ) (18,726 ) cash flows from financing activities: proceeds from exercise of stock options 1,421 613 shares redeemed for employee tax withholdings (7,540 ) (9,267 ) share repurchases (95,474 ) (60,229 ) proceeds from bank borrowings 287,000 189,000 repayments of bank borrowings (178,780 ) (129,362 ) deferred payment on business acquisition (1,875 ) — net cash provided by (used in) financing activities 4,752 (9,245 ) effect of exchange rate changes on cash (144 ) 189 net decrease in cash and cash equivalents (11,950 ) (55,988 ) cash and cash equivalents at beginning of the period 20,781 67,177 cash and cash equivalents at end of the period $ 8,831 $ 11,189 huron consulting group inc. segment operating results and other operating data (unaudited) three months ended september 30, percent increase (decrease) nine months ended september 30, percent increase (decrease) segment and consolidated operating results (in thousands): 2022 2021 2022 2021 healthcare: revenues $ 131,319 $ 104,620 25.5 % $ 381,669 $ 315,345 21.0 % operating income $ 33,045 $ 32,157 2.8 % $ 91,441 $ 86,511 5.7 % segment operating margin 25.2 % 30.7 % 24.0 % 27.4 % education: revenues $ 94,347 $ 63,244 49.2 % $ 263,234 $ 175,061 50.4 % operating income $ 22,851 $ 14,516 57.4 % $ 58,848 $ 37,195 58.2 % segment operating margin 24.2 % 23.0 % 22.4 % 21.2 % commercial: revenues $ 59,704 $ 56,143 6.3 % $ 173,841 $ 166,940 4.1 % operating income $ 14,153 $ 8,262 71.3 % $ 38,282 $ 29,152 31.3 % segment operating margin 23.7 % 14.7 % 22.0 % 17.5 % total huron: revenues $ 285,370 $ 224,007 27.4 % $ 818,744 $ 657,346 24.6 % reimbursable expenses 6,816 3,690 84.7 % 19,034 8,876 114.4 % total revenues and reimbursable expenses $ 292,186 $ 227,697 28.3 % $ 837,778 $ 666,222 25.8 % segment operating income $ 70,049 $ 54,935 27.5 % $ 188,571 $ 152,858 23.4 % items not allocated at the segment level: other operating expenses 35,679 31,430 13.5 % 99,139 94,634 4.8 % depreciation and amortization 5,071 5,199 (2.5 )% 15,171 15,549 (2.4 )% total operating income 29,299 18,306 60.1 % 74,261 42,675 74.0 % other income (expense), net (3,896 ) (2,611 ) 49.2 % 10,946 (3,788 ) n/m income before taxes $ 25,403 $ 15,695 61.9 % $ 85,207 $ 38,887 119.1 % other operating data: number of revenue-generating professionals by segment (at period end) (1)(6): healthcare 1,686 1,575 7.0 % 1,686 1,575 7.0 % education 1,543 958 61.1 % 1,543 958 61.1 % commercial (2) 1,342 1,191 12.7 % 1,342 1,191 12.7 % total 4,571 3,724 22.7 % 4,571 3,724 22.7 % revenue by capability: consulting and managed services (3) $ 155,901 $ 135,021 15.5 % $ 454,356 $ 402,576 12.9 % digital 129,469 88,986 45.5 % 364,388 254,770 43.0 % total $ 285,370 $ 224,007 27.4 % $ 818,744 $ 657,346 24.6 % number of revenue-generating professionals by capability (at period end)(1): consulting and managed services (4) 2,098 1,871 12.1 % 2,098 1,871 12.1 % digital 2,473 1,853 33.5 % 2,473 1,853 33.5 % total 4,571 3,724 22.7 % 4,571 3,724 22.7 % utilization rate by capability (5): consulting 72.5 % 71.5 % 73.0 % 70.8 % digital 70.1 % 74.2 % 71.6 % 72.9 % (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 was $17.6 million and $13.6 million for the three months ended september 30, 2022 and 2021, respectively; and $47.5 million and $35.4 million for the nine months ended september 30, 2022 and 2021, respectively. managed services capability revenue within our education segment was $4.1 million and $2.3 million for the three months ended september 30, 2022 and 2021, respectively; and $11.3 million and $6.8 million for the nine months ended september 30, 2022 and 2021, respectively. (4) the number of managed services revenue-generating professionals within our healthcare segment as of september 30, 2022 and september 30, 2021 was 547 and 518, respectively. the number of managed services revenue-generating professionals within our education segment as of september 30, 2022 and september 30, 2021 was 97 and 68, 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. 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 september 30, nine months ended september 30, 2022 2021 2022 2021 revenues $ 285,370 $ 224,007 $ 818,744 $ 657,346 net income $ 17,741 $ 13,727 $ 58,468 $ 31,929 add back: income tax expense 7,662 1,968 26,739 6,958 interest expense, net of interest income 3,111 2,217 7,753 5,965 depreciation and amortization 7,019 6,534 21,238 19,640 earnings before interest, taxes, depreciation and amortization (ebitda) (7) 35,533 24,446 114,198 64,492 add back: restructuring charges 1,332 1,677 4,956 3,166 other losses (gains) (67 ) 56 (34 ) 98 transaction-related expenses — 194 50 335 unrealized gain on preferred stock investment — — (26,964 ) — foreign currency transaction losses (gains), net (328 ) 43 (409 ) 398 adjusted ebitda (7) $ 36,470 $ 26,416 $ 91,797 $ 68,489 adjusted ebitda as a percentage of revenues (7) 12.8 % 11.8 % 11.2 % 10.4 % huron consulting group inc. reconciliation of net income to adjusted net income (7) (in thousands, except per share amounts) (unaudited) three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 net income $ 17,741 $ 13,727 $ 58,468 $ 31,929 weighted average shares - diluted 20,615 21,531 20,899 21,904 diluted earnings per share $ 0.86 $ 0.64 $ 2.80 $ 1.46 add back: amortization of intangible assets 2,818 2,235 8,496 6,923 restructuring charges 1,332 1,677 4,956 3,166 other losses (gains) (67 ) 56 (34 ) 98 transaction-related expenses — 194 50 335 unrealized gain on preferred stock investment — — (26,964 ) — tax effect of adjustments (1,082 ) (1,103 ) 3,576 (2,788 ) total adjustments, net of tax 3,001 3,059 (9,920 ) 7,734 adjusted net income (7) $ 20,742 $ 16,786 $ 48,548 $ 39,663 adjusted weighted average shares - diluted 20,615 21,531 20,899 21,904 adjusted diluted earnings per share (7) $ 1.01 $ 0.78 $ 2.32 $ 1.81 (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.
