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| [February 20, 2013] |
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Huron Consulting Group Announces Fourth Quarter and Full Year 2012 Financial Results
CHICAGO --(Business Wire)--
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, 2012.
"Continued market demand for our services enabled us to report fourth
quarter results with the highest quarterly revenues in Huron's history.
The pace and depth of change in many of our core markets is dramatic,
and Huron remains well positioned to help our clients as they transition
through uncertain times. In particular, our Health and Education
practices are thriving in an environment that reflects the pressures on
hospitals and universities to reduce cost and increase quality. We
expect the demand for our portfolio of services to be strong throughout
2013," said James H. Roth, chief executive officer and president, Huron
Consulting Group.
Fourth Quarter 2012 Results
Revenues for the fourth quarter of 2012 were $180.8 million compared to
$163.0 million for the fourth quarter of 2011. The Company's fourth
quarter 2012 operating income was $34.5 million compared to $18.6
million in the fourth quarter of 2011. Net income from continuing
operations was $18.6 million, or $0.83 per diluted share, for the fourth
quarter of 2012 compared to $7.8 million, or $0.35 per diluted share,
for the same period last year. Operating income and net income from
continuing operations in the fourth quarter of 2012 and 2011 include
$0.8 million and $2.5 million, respectively, of restructuring charges.
Fourth quarter 2012 earnings before interest, taxes, depreciation and
amortization ("EBITDA")(7) was $40.2 million,
compared to $24.8 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):
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|
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Three Months Ended
December 31,
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|
|
|
|
|
2012
|
|
2011
|
|
Amortization of intangible assets
|
|
|
|
$
|
1,838
|
|
|
$
|
1,896
|
|
|
Restatement related expenses
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|
$
|
-------
|
|
|
$
|
709
|
|
|
Restructuring charges
|
|
|
|
$
|
751
|
|
|
$
|
2,450
|
|
|
Tax effect
|
|
|
|
$
|
(1,036
|
)
|
|
$
|
(1,622
|
)
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Adjusted EBITDA(7) was $41.0 million, or 22.7% of revenues,
in the fourth quarter of 2012 compared to $28.0 million, or 17.2% of
revenues, in the comparable quarter last year. Adjusted net income from
continuing operations(7) was $20.2 million, or $0.90 per
diluted share, for the fourth quarter of 2012 compared to $11.2 million,
or $0.51 per diluted share, for the comparable period in 2011.
The average number of full-time billable consultants(2) was
1,417 in the fourth quarter of 2012 compared to 1,230 in the same
quarter last year. Full-time billable consultant utilization rate(3)
was 76.4% during the fourth quarter of 2012 compared with 74.6% during
the same period last year. Average billing rate per hour for full-time
billable consultants(4) was $251 for the fourth quarter of
2012 compared to $260 for the fourth quarter of 2011. The average number
of full-time equivalent professionals(5) was 1,452 in the
fourth quarter of 2012 compared to 1,354 in the comparable period in
2011.
Full Year 2012 Results
Revenues were $626.0 million for the full year 2012 compared to $606.3
million for the full year 2011. The Company's operating income for the
full year 2012 was $73.4 million compared to $55.4 million for the full
year 2011. Net income from continuing operations was $36.0 million, or
$1.61 per diluted share, for the full year 2012 compared to $21.5
million, or $0.99 per diluted share, for the same period last year.
Operating income and net income from continuing operations for 2012
include a $13.1 million goodwill impairment charge, $4.0 million in
restructuring charges and $1.8 million in restatement related expenses.
Operating income and net income from continuing operations for 2011
include a $22.0 million goodwill impairment charge, $3.8 million in
restructuring charges and $4.6 million in restatement related expenses.
EBITDA(7) was $95.8 million for the full year 2012 compared
to $79.3 million for the same period in 2011.
In evaluating the Company's financial performance, management uses
non-GAAP financial measures, which exclude the effect of the following
items (in thousands):
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Twelve Months Ended
December 31,
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|
|
|
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2012
|
|
2011
|
|
Amortization of intangible assets
|
|
|
|
$
|
6,987
|
|
|
$
|
8,165
|
|
|
Restatement related expenses
|
|
|
|
$
|
1,785
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|
|
$
|
4,579
|
|
|
Restructuring charges
|
|
|
|
$
|
4,004
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|
$
|
3,829
|
|
|
Litigation settlements, net
|
|
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|
$
|
1,150
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|
|
$
|
1,096
|
|
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Goodwill impairment charge
|
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$
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13,083
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$
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21,973
|
|
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Tax effect
|
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$
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(10,737
|
)
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$
|
(15,457
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)
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Adjusted EBITDA(7) was $115.8 million, or 18.5% of revenues,
for the full year 2012 compared to $110.8 million, or 18.3% of revenues,
in the comparable period last year. Adjusted net income from continuing
operations(7) was $52.2 million, or $2.34 per diluted share,
for the full year 2012 compared to $45.7 million, or $2.11 per diluted
share, for the comparable period in 2011.
The average number of full-time billable consultants(2) was
1,332 for the full year 2012 compared to 1,167 in the same period last
year. Full-time billable consultant utilization rate(3) was
75.6% for the full year 2012 compared with 75.3% during the same period
last year. Average billing rate per hour for full-time billable
consultants(4) was $229 for the full year 2012 compared to
$252 for the full year 2011. The average number of full-time equivalent
professionals(5) was 1,200 for the full year 2012 compared to
1,166 in the comparable period of 2011.
Operating Segments
Huron's results reflect a portfolio of service offerings focused on
helping clients address complex business challenges. The Company has
three operating segments as follows: Health and Education Consulting,
Legal Consulting, and Financial Consulting, representing 67.0%, 29.5%
and 3.5% of full year 2012 total revenues, respectively.
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,
2012 ("2012 Form 10-K").
2013 Operating Segments
In the first quarter of 2013, the Company reorganized its internal
financial reporting structure. Under the new structure, the Company will
begin reporting information as five operating segments: Huron
Healthcare; Huron Education and Life Sciences; Huron Legal; Huron
Financial; and an all other category.
Beginning in 2013, the current Health and Education Consulting segment
will become two separate segments: Huron Healthcare and Huron Education
and Life Sciences. These practices continue to share a significant
number of academic medical center clients and will continue to closely
collaborate in the market. The Legal Consulting segment will now be
referred to as Huron Legal and the Financial Consulting segment will now
be referred to as Huron Financial. The structure of the Legal Consulting
and Financial Consulting segments remains unchanged. In addition,
certain immaterial practices, which were historically part of our Health
and Education Consulting segment, will be combined and disclosed in an
all other category. While consolidated results will not be impacted, the
Company will recast historical segment information during 2013 for
consistent presentation.
Outlook for 2013
Based on currently available information, the Company provided guidance
for full year 2013 revenues before reimbursable expenses in a range of
$655.0 million to $685.0 million. The Company also anticipates EBITDA(7) in
a range of $118.5 million to $127.0 million, Adjusted EBITDA(7) in
a range of $120.5 million to $129.0 million, GAAP diluted earnings per
share in a range of $2.25 to $2.45, and non-GAAP adjusted diluted
earnings per share(7) in a range of $2.45 to $2.65.
Management will provide a more detailed discussion of its outlook during
the Company's earnings conference call webcast.
Fourth Quarter and Full Year 2012 Webcast
The Company will host a webcast to discuss its financial results today,
February 20, 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, comply with complex regulations, reduce costs, recover from
distress, leverage technology, and stimulate growth. The Company teams
with its clients to deliver sustainable and measurable results. Huron
provides services to a wide variety of both financially sound and
distressed organizations, including leading academic institutions,
healthcare organizations, Fortune 500 companies, medium-sized
businesses, and the law firms that represent these various
organizations. Learn more at www.huronconsultinggroup.com.
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 without the effect of non-cash or other
one-time items and the Company's ability to generate cash flows from
operations that are available for taxes, capital expenditures, and to
repay debt. 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, including the information
incorporated by reference herein, 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," "meets," "could," "intends," "might," "predicts,"
"seeks," "would," "believes," "estimates," "plans" or "continues." These
forward-looking statements reflect our current expectation about our
future requirements and needs, results, levels of activity, performance,
or achievements, including, without limitation, the 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, 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.
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HURON CONSULTING GROUP INC.
|
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CONSOLIDATED STATEMENTS OF EARNINGS
|
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Revenues and reimbursable expenses:
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
180,765
|
|
|
$
|
163,044
|
|
|
$
|
625,961
|
|
|
$
|
606,314
|
|
|
Reimbursable expenses
|
|
|
13,944
|
|
|
|
13,300
|
|
|
|
55,764
|
|
|
|
51,580
|
|
|
Total revenues and reimbursable expenses
|
|
|
194,709
|
|
|
|
176,344
|
|
|
|
681,725
|
|
|
|
657,894
|
|
|
Direct costs and reimbursable expenses (exclusive of
depreciation and amortization shown in operating expenses):
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
|
106,942
|
|
|
|
104,012
|
|
|
|
384,884
|
|
|
|
376,084
|
|
|
Intangible assets amortization
|
|
|
738
|
|
|
|
1,253
|
|
|
|
3,809
|
|
|
|
5,364
|
|
|
Reimbursable expenses
|
|
|
13,964
|
|
|
|
13,287
|
|
|
|
55,772
|
|
|
|
51,673
|
|
|
Total direct costs and reimbursable expenses
|
|
|
121,644
|
|
|
|
118,552
|
|
|
|
444,465
|
|
|
|
433,121
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
32,829
|
|
|
|
31,069
|
|
|
|
125,266
|
|
|
|
119,325
|
|
|
Restructuring charges
|
|
|
751
|
|
|
|
2,450
|
|
|
|
4,004
|
|
|
|
3,829
|
|
|
Restatement related expenses
|
|
|
-
|
|
|
|
709
|
|
|
|
1,785
|
|
|
|
4,579
|
|
|
Litigation settlements, net
|
|
|
-
|
|
|
|
-
|
|
|
|
1,150
|
|
|
|
1,096
|
|
|
Depreciation and amortization
|
|
|
4,944
|
|
|
|
4,935
|
|
|
|
18,529
|
|
|
|
18,524
|
|
|
Goodwill impairment charges
|
|
|
-
|
|
|
|
-
|
|
|
|
13,083
|
|
|
|
21,973
|
|
|
Total operating expenses
|
|
|
38,524
|
|
|
|
39,163
|
|
|
|
163,817
|
|
|
|
169,326
|
|
|
Operating income
|
|
|
34,541
|
|
|
|
18,629
|
|
|
|
73,443
|
|
|
|
55,447
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income
|
|
|
(2,030
|
)
|
|
|
(2,390
|
)
|
|
|
(8,223
|
)
|
|
|
(12,259
|
)
|
|
Other income (expense), net
|
|
|
122
|
|
|
|
454
|
|
|
|
428
|
|
|
|
(78
|
)
|
|
Total other expense, net
|
|
|
(1,908
|
)
|
|
|
(1,936
|
)
|
|
|
(7,795
|
)
|
|
|
(12,337
|
)
|
|
Income from continuing operations before income tax expense
|
|
|
32,633
|
|
|
|
16,693
|
|
|
|
65,648
|
|
|
|
43,110
|
|
|
Income tax expense
|
|
|
13,988
|
|
|
|
8,902
|
|
|
|
29,695
|
|
|
|
21,629
|
|
|
Net income from continuing operations
|
|
|
18,645
|
|
|
|
7,791
|
|
|
|
35,953
|
|
|
|
21,481
|
|
|
(Loss) income from discontinued operations (including loss on
disposal of $1.9 million during the three and twelve months ended
December 31, 2011), net of tax
|
|
|
(43
|
)
|
|
|
(1,286
|
)
|
|
|
475
|
|
|
|
(962
|
)
|
|
Net income
|
|
$
|
18,602
|
|
|
$
|
6,505
|
|
|
$
|
36,428
|
|
|
$
|
20,519
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per basic share:
|
|
|
|
|
|
|
|
|
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Net income from continuing operations
|
|
$
|
0.85
|
|
|
$
|
0.36
|
|
|
$
|
1.64
|
|
|
$
|
1.01
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.02
|
|
|
$
|
(0.05
|
)
|
|
Net income
|
|
$
|
0.85
|
|
|
$
|
0.30
|
|
|
$
|
1.66
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per diluted share:
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
0.83
|
|
|
$
|
0.35
|
|
|
$
|
1.61
|
|
|
$
|
0.99
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
$
|
-
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.02
|
|
|
$
|
(0.04
|
)
|
|
Net income
|
|
$
|
0.83
|
|
|
$
|
0.29
|
|
|
$
|
1.63
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
21,976
|
|
|
|
21,620
|
|
|
|
21,905
|
|
|
|
21,324
|
|
|
Diluted
|
|
|
22,399
|
|
|
|
22,094
|
|
|
|
22,285
|
|
|
|
21,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
December 31,
2011
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 25,162
|
|
$ 5,080
|
|
Receivables from clients, net
|
|
97,206
|
|
107,820
|
|
Unbilled services, net
|
|
47,286
|
|
49,056
|
|
Income tax receivable
|
|
192
|
|
19,501
|
|
Deferred income taxes, net
|
|
14,751
|
|
12,531
|
|
Prepaid expenses and other current assets
|
|
15,525
|
|
14,191
|
|
Current assets of discontinued operations
|
|
250
|
|
3,345
|
|
Total current assets
|
|
200,372
|
|
211,524
|
|
Property and equipment, net
|
|
33,805
|
|
31,176
|
|
Other non-current assets
|
|
15,272
|
|
14,892
|
|
Intangible assets, net
|
|
18,879
|
|
16,867
|
|
Goodwill
|
|
519,522
|
|
512,185
|
|
Total assets
|
|
$ 787,850
|
|
$ 786,644
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$ 8,432
|
|
$ 8,084
|
|
Accrued expenses
|
|
17,692
|
|
22,505
|
|
Accrued payroll and related benefits
|
|
61,672
|
|
66,464
|
|
Accrued consideration for business acquisitions, current portion
|
|
5,640
|
|
35,062
|
|
Income tax payable
|
|
7,872
|
|
101
|
|
Deferred revenues
|
|
15,388
|
|
36,721
|
|
Current liabilities of discontinued operations
|
|
29
|
|
765
|
|
Total current liabilities
|
|
116,725
|
|
169,702
|
|
Non-current liabilities:
|
|
|
|
|
|
Deferred compensation and other liabilities
|
|
6,973
|
|
7,856
|
|
Bank borrowings
|
|
192,500
|
|
193,500
|
|
Deferred lease incentives
|
|
6,936
|
|
6,670
|
|
Deferred income taxes
|
|
14,510
|
|
12,078
|
|
Accrued consideration for business acquisitions, net of current
portion
|
|
4,885
|
|
-
|
|
Non-current liabilities of discontinued operations
|
|
-
|
|
49
|
|
Total non-current liabilities
|
|
225,804
|
|
220,153
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
Common stock; $0.01 par value; 500,000,000 shares authorized;
24,793,327 and 24,208,549 shares issued at December 31, 2012 and
December 31, 2011, respectively
|
|
240
|
|
234
|
|
Treasury stock, at cost, 1,880,809 and 1,642,018 shares at
December 31, 2012 and December 31, 2011, respectively
|
|
(83,715)
|
|
(75,735)
|
|
Additional paid-in capital
|
|
420,825
|
|
400,597
|
|
Retained earnings
|
|
109,330
|
|
72,902
|
|
Accumulated other comprehensive loss
|
|
(1,359)
|
|
(1,209)
|
|
Total stockholders' equity
|
|
445,321
|
|
396,789
|
|
Total liabilities and stockholders' equity
|
|
$ 787,850
|
|
$ 786,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2012
|
|
2011
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
36,428
|
|
|
$
|
20,519
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
25,251
|
|
|
|
24,717
|
|
|
Share-based compensation
|
|
|
15,651
|
|
|
|
19,388
|
|
|
Allowances for doubtful accounts and unbilled services
|
|
|
(4,935
|
)
|
|
|
(8,392
|
)
|
|
Deferred income taxes
|
|
|
(521
|
)
|
|
|
29,702
|
|
|
Loss on disposal of property and equipment
|
|
|
-
|
|
|
|
20
|
|
|
Loss on sale of business
|
|
|
-
|
|
|
|
1,860
|
|
|
Non-cash portion of litigation settlements
|
|
|
-
|
|
|
|
1,096
|
|
|
Impairment charges on goodwill
|
|
|
13,083
|
|
|
|
23,900
|
|
|
Changes in operating assets and liabilities, net of businesses
acquired:
|
|
|
|
|
|
Decrease (increase) in receivables from clients
|
|
|
19,713
|
|
|
|
(21,055
|
)
|
|
Decrease (increase) in unbilled services
|
|
|
4,333
|
|
|
|
(7,179
|
)
|
|
Decrease (increase) in current income tax receivable / payable, net
|
|
|
27,078
|
|
|
|
(15,244
|
)
|
|
Decrease in other assets
|
|
|
2,615
|
|
|
|
4,296
|
|
|
Decrease in accounts payable and accrued liabilities
|
|
|
(7,001
|
)
|
|
|
(4,602
|
)
|
|
(Decrease) increase in accrued payroll and related benefits
|
|
|
(5,676
|
)
|
|
|
20,909
|
|
|
(Decrease) increase in deferred revenues
|
|
|
(20,430
|
)
|
|
|
18,682
|
|
|
Net cash provided by operating activities
|
|
|
105,589
|
|
|
|
108,617
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment, net
|
|
|
(20,746
|
)
|
|
|
(13,939
|
)
|
|
Net investment in life insurance policies
|
|
|
(600
|
)
|
|
|
(434
|
)
|
|
Purchases of businesses, net of cash acquired
|
|
|
(55,223
|
)
|
|
|
(24,905
|
)
|
|
Capitalization of internally developed software
|
|
|
(895
|
)
|
|
|
-
|
|
|
Sales of businesses
|
|
|
-
|
|
|
|
788
|
|
|
Net cash used in investing activities
|
|
|
(77,464
|
)
|
|
|
(38,490
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
276
|
|
|
|
219
|
|
|
Shares redeemed for employee tax withholdings
|
|
|
(4,438
|
)
|
|
|
(4,521
|
)
|
|
Tax benefit from share-based compensation
|
|
|
1,585
|
|
|
|
1,094
|
|
|
Proceeds from borrowings under credit facility
|
|
|
273,000
|
|
|
|
282,301
|
|
|
Repayments on credit facility
|
|
|
(274,000
|
)
|
|
|
(348,500
|
)
|
|
Payments for debt issue costs
|
|
|
(2,482
|
)
|
|
|
-
|
|
|
Payments of capital lease obligations
|
|
|
(12
|
)
|
|
|
(62
|
)
|
|
Deferred acquisition payments
|
|
|
(2,000
|
)
|
|
|
(2,000
|
)
|
|
Net cash used in financing activities
|
|
|
(8,071
|
)
|
|
|
(71,469
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
28
|
|
|
|
75
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
20,082
|
|
|
|
(1,267
|
)
|
|
Cash and cash equivalents at beginning of the period (*)
|
|
|
5,080
|
|
|
|
6,347
|
|
|
Cash and cash equivalents at end of the period
|
|
$
|
25,162
|
|
|
$
|
5,080
|
|
|
|
|
|
|
|
|
____________________________
|
|
(*) Cash and cash equivalents presented herein includes $0.1 million
of cash and cash equivalents classified as discontinued operations
as of December 31, 2010.
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Percent
Increase
(Decrease)
|
|
Segment and Consolidated Operating Results (in thousands):
|
|
2012
|
|
2011
|
|
|
Health and Education Consulting(1):
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
124,092
|
|
|
$
|
103,800
|
|
|
19.5
|
%
|
|
Operating income
|
|
$
|
51,004
|
|
|
$
|
34,838
|
|
|
46.4
|
%
|
|
Segment operating income as a percent of segment revenues
|
|
|
41.1
|
%
|
|
|
33.6
|
%
|
|
|
|
Legal Consulting:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
51,475
|
|
|
$
|
51,565
|
|
|
(0.2
|
%)
|
|
Operating income
|
|
$
|
10,828
|
|
|
$
|
11,210
|
|
|
(3.4
|
%)
|
|
Segment operating income as a percent of segment revenues
|
|
|
21.0
|
%
|
|
|
21.7
|
%
|
|
|
|
Financial Consulting(1):
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,198
|
|
|
$
|
7,679
|
|
|
(32.3
|
%)
|
|
Operating income
|
|
$
|
229
|
|
|
$
|
1,366
|
|
|
(83.2
|
%)
|
|
Segment operating income as a percent of segment revenues
|
|
|
4.4
|
%
|
|
|
17.8
|
%
|
|
|
|
Total Company:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
180,765
|
|
|
$
|
163,044
|
|
|
10.9
|
%
|
|
Reimbursable expenses
|
|
|
13,944
|
|
|
|
13,300
|
|
|
4.8
|
%
|
|
Total revenues and reimbursable expenses
|
|
$
|
194,709
|
|
|
$
|
176,344
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
Statement of Earnings reconciliation:
|
|
|
|
|
|
|
|
Segment operating income
|
|
$
|
62,061
|
|
|
$
|
47,414
|
|
|
30.9
|
%
|
|
Charges not allocated at the segment level:
|
|
|
|
|
|
|
|
Other selling, general and administrative expenses
|
|
|
22,576
|
|
|
|
23,850
|
|
|
(5.3
|
%)
|
|
Depreciation and amortization expense
|
|
|
4,944
|
|
|
|
4,935
|
|
|
0.2
|
%
|
|
Total operating income
|
|
|
34,541
|
|
|
|
18,629
|
|
|
85.4
|
%
|
|
Other expense, net
|
|
|
1,908
|
|
|
|
1,936
|
|
|
(1.4
|
%)
|
|
Income from continuing operations before income tax expense
|
|
$
|
32,633
|
|
|
$
|
16,693
|
|
|
95.5
|
%
|
|
|
|
|
|
|
|
|
|
Other Operating Data:
|
|
|
|
|
|
|
|
Number of full-time billable consultants (at period end)
(2):
|
|
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
1,216
|
|
|
|
1,046
|
|
|
16.3
|
%
|
|
Legal Consulting
|
|
|
139
|
|
|
|
113
|
|
|
23.0
|
%
|
|
Financial Consulting (1)
|
|
|
62
|
|
|
|
73
|
|
|
(15.1
|
%)
|
|
Total
|
|
|
1,417
|
|
|
|
1,232
|
|
|
15.0
|
%
|
|
Average number of full-time billable consultants (for the period) (2):
|
|
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
1,217
|
|
|
|
1,045
|
|
|
|
|
Legal Consulting
|
|
|
136
|
|
|
|
111
|
|
|
|
|
Financial Consulting (1)
|
|
|
64
|
|
|
|
74
|
|
|
|
|
Total
|
|
|
1,417
|
|
|
|
1,230
|
|
|
|
|
Full-time billable consultant utilization rate (3):
|
|
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
78.7
|
%
|
|
|
75.8
|
%
|
|
|
|
Legal Consulting
|
|
|
63.7
|
%
|
|
|
68.1
|
%
|
|
|
|
Financial Consulting (1)
|
|
|
59.9
|
%
|
|
|
66.7
|
%
|
|
|
|
Total
|
|
|
76.4
|
%
|
|
|
74.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Other Operating Data:
|
|
2012
|
|
2011
|
|
Full-time billable consultant average billing rate per hour (4):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
$
|
253
|
|
$
|
257
|
|
Legal Consulting
|
|
$
|
220
|
|
$
|
248
|
|
Financial Consulting (1)
|
|
$
|
291
|
|
$
|
334
|
|
Total
|
|
$
|
251
|
|
$
|
260
|
|
Revenue per full-time billable consultant (in thousands):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
$
|
90
|
|
$
|
88
|
|
Legal Consulting
|
|
$
|
60
|
|
$
|
73
|
|
Financial Consulting (1)
|
|
$
|
80
|
|
$
|
98
|
|
Total
|
|
$
|
87
|
|
$
|
87
|
|
Average number of full-time equivalents (for the period) (5):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
153
|
|
|
160
|
|
Legal Consulting
|
|
|
1,298
|
|
|
1,192
|
|
Financial Consulting (1)
|
|
|
1
|
|
|
2
|
|
Total
|
|
|
1,452
|
|
|
1,354
|
|
Revenue per full-time equivalents (in thousands):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
$
|
93
|
|
$
|
79
|
|
Legal Consulting
|
|
$
|
33
|
|
$
|
36
|
|
Financial Consulting (1)
|
|
$
|
52
|
|
$
|
181
|
|
Total
|
|
$
|
40
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
Percent
Increase
(Decrease)
|
|
Segment and Consolidated Operating Results (in thousands):
|
|
2012
|
|
2011
|
|
|
Health and Education Consulting (1):
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
419,024
|
|
|
$
|
399,048
|
|
|
5.0
|
%
|
|
Operating income
|
|
$
|
146,862
|
|
|
$
|
132,824
|
|
|
10.6
|
%
|
|
Segment operating income as a percent of segment revenues
|
|
|
35.0
|
%
|
|
|
33.3
|
%
|
|
|
|
Legal Consulting:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
184,918
|
|
|
$
|
172,355
|
|
|
7.3
|
%
|
|
Operating income
|
|
$
|
44,317
|
|
|
$
|
43,213
|
|
|
2.6
|
%
|
|
Segment operating income as a percent of segment revenues
|
|
|
24.0
|
%
|
|
|
25.1
|
%
|
|
|
|
Financial Consulting (1):
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
22,019
|
|
|
$
|
34,911
|
|
|
(36.9
|
%)
|
|
Operating income
|
|
$
|
1,888
|
|
|
$
|
9,928
|
|
|
(81.0
|
%)
|
|
Segment operating income as a percent of segment revenues
|
|
|
8.6
|
%
|
|
|
28.4
|
%
|
|
|
|
Total Company:
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
625,961
|
|
|
$
|
606,314
|
|
|
3.2
|
%
|
|
Reimbursable expenses
|
|
|
55,764
|
|
|
|
51,580
|
|
|
8.1
|
%
|
|
Total revenues and reimbursable expenses
|
|
$
|
681,725
|
|
|
$
|
657,894
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
Statement of Earnings reconciliation:
|
|
|
|
|
|
|
|
Segment operating income
|
|
$
|
193,067
|
|
|
$
|
185,965
|
|
|
3.8
|
%
|
|
Charges not allocated at the segment level:
|
|
|
|
|
|
|
|
Other selling, general and administrative expenses
|
|
|
88,012
|
|
|
|
90,021
|
|
|
(2.2
|
%)
|
|
Depreciation and amortization expense
|
|
|
18,529
|
|
|
|
18,524
|
|
|
0.0
|
%
|
|
Goodwill impairment charge (6)
|
|
|
13,083
|
|
|
|
21,973
|
|
|
(40.5
|
%)
|
|
Total operating income
|
|
|
73,443
|
|
|
|
55,447
|
|
|
32.5
|
%
|
|
Other expense, net
|
|
|
7,795
|
|
|
|
12,337
|
|
|
(36.8
|
%)
|
|
Income from continuing operations before income tax expense
|
|
$
|
65,648
|
|
|
$
|
43,110
|
|
|
52.3
|
%
|
|
|
|
|
|
|
|
|
|
Other Operating Data:
|
|
|
|
|
|
|
|
Number of full-time billable consultants (at period end)
(2):
|
|
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
1,216
|
|
|
|
1,046
|
|
|
16.3
|
%
|
|
Legal Consulting
|
|
|
139
|
|
|
|
113
|
|
|
23.0
|
%
|
|
Financial Consulting (1)
|
|
|
62
|
|
|
|
73
|
|
|
(15.1
|
%)
|
|
Total
|
|
|
1,417
|
|
|
|
1,232
|
|
|
15.0
|
%
|
|
Average number of full-time billable consultants (for the period) (2):
|
|
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
1,139
|
|
|
|
975
|
|
|
|
|
Legal Consulting
|
|
|
126
|
|
|
|
117
|
|
|
|
|
Financial Consulting (1)
|
|
|
67
|
|
|
|
75
|
|
|
|
|
Total
|
|
|
1,332
|
|
|
|
1,167
|
|
|
|
|
Full-time billable consultant utilization rate (3):
|
|
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
77.7
|
%
|
|
|
77.1
|
%
|
|
|
|
Legal Consulting
|
|
|
67.4
|
%
|
|
|
60.5
|
%
|
|
|
|
Financial Consulting (1)
|
|
|
56.3
|
%
|
|
|
72.5
|
%
|
|
|
|
Total
|
|
|
75.6
|
%
|
|
|
75.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
Other Operating Data:
|
|
2012
|
|
2011
|
|
Full-time billable consultant average billing rate per hour (4):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
$
|
225
|
|
$
|
247
|
|
Legal Consulting
|
|
$
|
240
|
|
$
|
238
|
|
Financial Consulting (1)
|
|
$
|
302
|
|
$
|
329
|
|
Total
|
|
$
|
229
|
|
$
|
252
|
|
Revenue per full-time billable consultant (in thousands):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
$
|
324
|
|
$
|
360
|
|
Legal Consulting
|
|
$
|
299
|
|
$
|
247
|
|
Financial Consulting (1)
|
|
$
|
318
|
|
$
|
448
|
|
Total
|
|
$
|
321
|
|
$
|
354
|
|
Average number of full-time equivalents (for the period) (5):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
|
144
|
|
|
149
|
|
Legal Consulting
|
|
|
1,054
|
|
|
1,015
|
|
Financial Consulting (1)
|
|
|
2
|
|
|
2
|
|
Total
|
|
|
1,200
|
|
|
1,166
|
|
Revenue per full-time equivalents (in thousands):
|
|
|
|
|
|
Health and Education Consulting (1)
|
|
$
|
351
|
|
$
|
321
|
|
Legal Consulting
|
|
$
|
140
|
|
$
|
141
|
|
Financial Consulting (1)
|
|
$
|
350
|
|
$
|
631
|
|
Total
|
|
$
|
166
|
|
$
|
165
|
|
|
|
|
|
|
|
|
|
_____________________________
|
|
(1)
|
|
Reflects the reclassification of our healthcare valuation consulting
practice from our Health and Education Consulting segment to our
Financial Consulting segment in conjunction with an internal
reorganization during the first quarter of 2012.
|
|
(2)
|
|
Consists of our full-time professionals who provide consulting
services and generate revenues based on the number of hours worked.
|
|
(3)
|
|
Utilization rate for our full-time billable consultants is
calculated by dividing the number of hours all our full-time
billable consultants worked on client assignments during a period by
the total available working hours for all of these consultants
during the same period, assuming a forty-hour work week, less paid
holidays and vacation days.
|
|
(4)
|
|
Average billing rate per hour for our full-time billable consultants
is calculated by dividing revenues for a period by the number of
hours worked on client assignments during the same period.
|
|
(5)
|
|
Consists of consultants who work variable schedules as needed by our
clients, as well as contract reviewers and other professionals who
generate revenues primarily based on number of hours worked and
units produced, such as pages reviewed and data processed. Also
includes full-time employees who provide software support and
maintenance services to our clients.
|
|
(6)
|
|
The goodwill impairment charge is not allocated at the segment level
because the underlying goodwill asset is reflective of our corporate
investment in the segments. We do not include the impact of goodwill
impairment charges in our evaluation of segment performance.
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION (7)
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Revenues
|
|
$
|
180,765
|
|
|
$
|
163,044
|
|
|
$
|
625,961
|
|
|
$
|
606,314
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
18,645
|
|
|
$
|
7,791
|
|
|
$
|
35,953
|
|
|
$
|
21,481
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
13,988
|
|
|
|
8,902
|
|
|
|
29,695
|
|
|
|
21,629
|
|
|
Interest and other expenses
|
|
|
1,908
|
|
|
|
1,936
|
|
|
|
7,795
|
|
|
|
12,337
|
|
|
Depreciation and amortization
|
|
|
5,682
|
|
|
|
6,188
|
|
|
|
22,338
|
|
|
|
23,888
|
|
|
Earnings before interest, taxes, depreciation and amortization
(EBITDA) (7)
|
|
|
40,223
|
|
|
|
24,817
|
|
|
|
95,781
|
|
|
|
79,335
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Restatement related expenses
|
|
|
-
|
|
|
|
709
|
|
|
|
1,785
|
|
|
|
4,579
|
|
|
Restructuring charges
|
|
|
751
|
|
|
|
2,450
|
|
|
|
4,004
|
|
|
|
3,829
|
|
|
Goodwill impairment charge
|
|
|
-
|
|
|
|
-
|
|
|
|
13,083
|
|
|
|
21,973
|
|
|
Litigation settlements, net
|
|
|
-
|
|
|
|
-
|
|
|
|
1,150
|
|
|
|
1,096
|
|
|
Adjusted EBITDA (7)
|
|
$
|
40,974
|
|
|
$
|
27,976
|
|
|
$
|
115,803
|
|
|
$
|
110,812
|
|
|
Adjusted EBITDA as a percentage of revenues (7)
|
|
|
22.7
|
%
|
|
|
17.2
|
%
|
|
|
18.5
|
%
|
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (7)
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net income from continuing operations
|
|
$
|
18,645
|
|
|
$
|
7,791
|
|
|
$
|
35,953
|
|
|
$
|
21,481
|
|
|
Weighted average shares - diluted
|
|
|
22,399
|
|
|
|
22,094
|
|
|
|
22,285
|
|
|
|
21,676
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.83
|
|
|
$
|
0.35
|
|
|
$
|
1.61
|
|
|
$
|
0.99
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
1,838
|
|
|
|
1,896
|
|
|
|
6,987
|
|
|
|
8,165
|
|
|
Restatement related expenses
|
|
|
-
|
|
|
|
709
|
|
|
|
1,785
|
|
|
|
4,579
|
|
|
Restructuring charges
|
|
|
751
|
|
|
|
2,450
|
|
|
|
4,004
|
|
|
|
3,829
|
|
|
Litigation settlements, net
|
|
|
-
|
|
|
|
-
|
|
|
|
1,150
|
|
|
|
1,096
|
|
|
Goodwill impairment charge
|
|
|
-
|
|
|
|
-
|
|
|
|
13,083
|
|
|
|
21,973
|
|
|
Tax effect
|
|
|
(1,036
|
)
|
|
|
(1,622
|
)
|
|
|
(10,737
|
)
|
|
|
(15,457
|
)
|
|
Total adjustments, net of tax
|
|
|
1,553
|
|
|
|
3,433
|
|
|
|
16,272
|
|
|
|
24,185
|
|
|
Adjusted net income from continuing operations (7)
|
|
$
|
20,198
|
|
|
$
|
11,224
|
|
|
$
|
52,225
|
|
|
$
|
45,666
|
|
|
Adjusted diluted earnings per share from continuing operations (7)
|
|
$
|
0.90
|
|
|
$
|
0.51
|
|
|
$
|
2.34
|
|
|
$
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________
|
|
(7)
|
|
In evaluating the Company's financial performance, management uses
earnings before interest, taxes, depreciation and amortization
("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. Our management uses these non-GAAP
financial measures to gain an understanding of our 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 our ongoing business in a
manner that allows for meaningful period-to-period comparisons.
Management also uses these non-GAAP financial measures when
publicly providing our business outlook, for internal management
purposes, and as a basis for evaluating potential acquisitions and
dispositions. We believe that these non-GAAP financial measures
provide useful information to investors and others (a) in
understanding and evaluating Huron's current operating performance
and future prospects in the same manner as management does, if
they so choose, (b) in comparing in a consistent manner Huron's
current financial results with Huron's past financial results and
(c) in understanding the Company's ability to generate cash flows
from operations that are available for taxes, capital
expenditures, and debt repayment. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (8)
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
Year Ending
December 31, 2013
|
|
|
|
Guidance Range
|
|
|
|
Low
|
|
High
|
|
Projected revenues - GAAP
|
|
$
|
655.0
|
|
|
$
|
685.0
|
|
|
Projected net income from continuing operations - GAAP
|
|
$
|
50.5
|
|
|
$
|
55.5
|
|
|
Add back:
|
|
|
|
|
|
Income tax expense
|
|
|
38.5
|
|
|
|
42.0
|
|
|
Interest expense
|
|
|
6.0
|
|
|
|
6.0
|
|
|
Depreciation and amortization
|
|
|
23.5
|
|
|
|
23.5
|
|
Projected earnings before interest, taxes, depreciation and
amortization
(EBITDA) (8)
|
|
|
118.5
|
|
|
|
127.0
|
|
|
Add back:
|
|
|
|
|
|
Restructuring charges
|
|
|
2.0
|
|
|
|
2.0
|
|
|
Projected adjusted EBITDA (8)
|
|
$
|
120.5
|
|
|
$
|
129.0
|
|
|
Projected adjusted EBITDA as a percentage of projected revenues
(8)
|
|
|
18.4
|
%
|
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS
(8)
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
Year Ending
December 31, 2013
|
|
|
|
Guidance Range
|
|
|
|
Low
|
|
High
|
|
Projected net income from continuing operations - GAAP
|
|
$
|
50.5
|
|
|
$
|
55.5
|
|
|
Projected diluted earnings per share from continuing operations -
GAAP
|
|
$
|
2.25
|
|
|
$
|
2.45
|
|
|
Add back:
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
5.5
|
|
|
|
5.5
|
|
|
Restructuring charges
|
|
|
2.0
|
|
|
|
2.0
|
|
|
Tax effect
|
|
|
(3.0
|
)
|
|
|
(3.0
|
)
|
|
Total adjustments, net of tax
|
|
|
4.5
|
|
|
|
4.5
|
|
|
Projected adjusted net income from continuing operations (8)
|
|
$
|
55.0
|
|
|
$
|
60.0
|
|
Projected adjusted diluted earnings per share from
continuing
operations (8)
|
|
$
|
2.45
|
|
|
$
|
2.65
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________
|
|
(8)
|
|
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 and the Company's
ability to generate cash flows from operations that are available
for taxes, capital expenditures, and to repay debt. 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 GAAP.
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