Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 550 West Van Buren Street Chicago, Illinois FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-50976 HURON CONSULTING GROUP INC. (Exact name of registrant as specified in its charter) (State ...

Huron Consulting Group, Inc. (NASDAQ:HURN) Q2 2019 Results Conference Call July 30, 2019 5:00 PM ET Company Participants Jim Roth - CEO John Kelly - CFO Mark Hussey - President and COO Conference Call Participants Tim McHugh - William Blair Tobey Sommer - SunTrust Robinson Humphrey Kevin Steinke - Barrington Research Operator Good afternoon, ladies and gentlemen, and welcome to the Huron Consulting Group's webcast to discuss financial results for the second-quarter 2019. [Operator instructions] As a remind ...

Table of Contents OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-50976 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 HURON CONSULTING GROUP INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

Huron Consulting Group, Inc. (NASDAQ:HURN) Q1 2019 Earnings Conference Call April 30, 2019 5:00 PM ET Company Participants James Roth - CEO & Director John Kelly - EVP, CFO & Treasurer Mark Hussey - President & COO Conference Call Participants Timothy McHugh - William Blair & Company William Sutherland - The Benchmark Company Tobey Sommer - SunTrust Robinson Humphrey Kevin Steinke - Barrington Research Associates Operator Good afternoon, ladies and gentlemen, and welcome to Huron Consulting Group's webcast ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10–Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-50976 HURON CONSULTING GROUP INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

Huron Consulting Group Inc. (NASDAQ:HURN) Q4 2018 Earnings Conference Call February 26, 2019 5:00 PM ET Company Participants Jim Roth – Chief Executive Officer John Kelly – Chief Financial Officer Mark Hussey – President and Chief Operating Officer Conference Call Participants Tim McHugh – William Blair Joseph Thompson – SunTrust Kevin Steinke – Barrington Research Operator Good afternoon, ladies and gentlemen, and welcome to Huron Consulting Group's webcast to discuss Financial Results for the Fourth Quart ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Huron is a global consultancy delivering professional services across Healthcare, Business Advisory, and Education segments, which generated 46%, 30%, and 24% of 2018 revenues, respectively - Huron operates as a global consultancy helping clients with strategy and implementation to drive growth and performance[12](index=12&type=chunk) FY2018 Revenue by Operating Segment | Segment | Revenue Percentage | | :--- | :--- | | Healthcare | 46% | | Business Advisory | 30% | | Education | 24% | - The company's services are delivered through three main segments: - **Healthcare:** Serves hospitals, health systems, and medical groups, focusing on care transformation, operational excellence, and technology analytics[15](index=15&type=chunk)[16](index=16&type=chunk) - **Business Advisory:** Assists a wide range of organizations with services like capital and transaction advisory, operational improvement, restructuring, and valuation[17](index=17&type=chunk)[19](index=19&type=chunk) - **Education:** Provides consulting and technology solutions to higher education institutions and academic medical centers, focusing on strategy, financial management, and student lifecycle solutions[20](index=20&type=chunk) - As of December 31, 2018, Huron had **3,269 full-time employees**, including **147 client-serving managing directors** who are key drivers of business growth[25](index=25&type=chunk) - The professional services industry is highly competitive and fragmented. Huron competes with a wide range of firms, including strategy, technology, and financial consulting firms, as well as the consulting practices of major accounting firms[37](index=37&type=chunk)[38](index=38&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) Key risks include reliance on talent, goodwill impairment (evidenced by a 2017 charge), healthcare industry uncertainty, data security breaches, and significant debt obligations - The business is highly dependent on its senior management team and managing directors for client relationships and business generation[44](index=44&type=chunk) - Goodwill and other intangible assets totaled **$693.1 million**, or **66% of total assets**, as of December 31, 2018. The company recorded a **$253.1 million** non-cash goodwill impairment charge in 2017[50](index=50&type=chunk)[54](index=54&type=chunk) - A significant portion of revenue is derived from the healthcare industry, which is subject to changing political, legislative, and regulatory influences, creating uncertainty for the business[101](index=101&type=chunk)[104](index=104&type=chunk) - The company faces risks related to data security and must comply with numerous laws such as HIPAA and GDPR. A breach could lead to significant damages and reputational harm[77](index=77&type=chunk)[78](index=78&type=chunk) - A significant portion of revenues is derived from a limited number of clients. In 2018, the **10 largest clients** accounted for approximately **20.1% of revenues**[108](index=108&type=chunk) - The company has significant indebtedness, including **$250 million** in convertible senior notes due in 2019 and **$50.0 million** on its revolving line of credit as of year-end 2018, which could adversely affect its financial condition[86](index=86&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[114](index=114&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) Huron's principal executive offices are leased in Chicago, Illinois, with the lease expiring in September 2024, and the company does not own any real property - The company's principal executive offices are in Chicago, Illinois, consisting of approximately **134,000 square feet** under a lease expiring in September 2024[115](index=115&type=chunk) - Huron does not own any real property and believes its leased facilities are adequate for current needs[115](index=115&type=chunk) [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none of which are expected to have a material adverse effect on its financial position or results - The company is not a party to any litigation or legal proceeding that is expected to have a material adverse effect on its financial position or results of operations[116](index=116&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[117](index=117&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Huron's common stock trades on NASDAQ under 'HURN'; the company has not paid dividends and has an active share repurchase program with **$35.1 million** remaining as of December 31, 2018 - The company's common stock is traded on The NASDAQ Global Select Market under the symbol '**HURN**'[120](index=120&type=chunk) - Huron has not declared or paid dividends on its common stock since becoming a public company[121](index=121&type=chunk) - A share repurchase program is in place, authorizing up to **$125 million** of common stock repurchases, expiring on October 31, 2019. As of December 31, 2018, **$35.1 million** remained available[124](index=124&type=chunk)[267](index=267&type=chunk) [Selected Financial Data](index=28&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of Huron's consolidated financial data, highlighting revenue growth and the impact of a significant 2017 goodwill impairment charge Selected Consolidated Financial Data (in thousands, except per share data) | | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Revenues** | $795,125 | $732,570 | $726,272 | | **Operating income (loss)** | $52,096 | $(207,456) | $74,234 | | **Net income (loss) from continuing operations** | $13,944 | $(170,505) | $39,480 | | **Net income (loss)** | $13,646 | $(170,117) | $37,617 | | **Diluted earnings (loss) per share** | $0.62 | $(7.93) | $1.76 | | **Total assets** | $1,049,532 | $1,036,928 | $1,153,215 | | **Total stockholders' equity** | $540,624 | $503,316 | $648,033 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes 2018 financial performance, noting **8.5% revenue growth** to **$795.1 million**, operating income recovery from a **$207.5 million** 2017 loss (due to a **$253.1 million** goodwill impairment), and liquidity supported by operations and a **$500 million** credit facility [Results of Operations](index=33&type=section&id=Results%20of%20Operations) In 2018, revenues grew **8.5%** to **$795.1 million** with operating income recovering to **$52.1 million** from a **$207.5 million** loss in 2017, primarily due to a **$253.1 million** goodwill impairment charge Revenues by Segment (in thousands) | Segment | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Healthcare | $364,763 | $356,909 | $424,912 | | Business Advisory | $236,185 | $207,753 | $151,543 | | Education | $194,177 | $167,908 | $149,817 | | **Total Revenues** | **$795,125** | **$732,570** | **$726,272** | Segment Operating Income (in thousands) | Segment | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Healthcare | $108,060 | $118,761 | $147,903 | | Business Advisory | $50,625 | $46,600 | $29,382 | | Education | $48,243 | $40,318 | $38,310 | | **Total Segment Operating Income** | **$206,928** | **$205,679** | **$215,595** | - A non-cash goodwill impairment charge of **$253.1 million** was recorded in 2017 (**$208.1 million** for Healthcare and **$45.0 million** for Business Advisory's Enterprise Solutions and Analytics unit). No impairment charge was recorded in 2018 or 2016[185](index=185&type=chunk)[226](index=226&type=chunk) - The company adopted the new revenue recognition standard ASC 606 on January 1, 2018, which most notably impacted the timing of revenue recognition for performance-based billing arrangements[174](index=174&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources are cash from operations (**$101.7 million** in 2018) and a **$500 million** credit facility, with **$250 million** convertible notes due in 2019 expected to be refinanced Summary of Cash Flows (in thousands) | Cash Flow Activity | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $101,658 | $99,795 | $129,243 | | Net cash used in investing activities | $(18,562) | $(128,948) | $(86,636) | | Net cash provided by (used in) financing activities | $(66,690) | $28,821 | $(84,095) | - As of December 31, 2018, the company had outstanding debt of **$250 million** in 1.25% convertible senior notes due October 1, 2019, and **$50.0 million** under its senior secured credit facility[268](index=268&type=chunk) - The company expects to refinance the **$250 million** principal of the convertible notes at maturity using its revolving credit facility[269](index=269&type=chunk) [Critical Accounting Policies](index=61&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies include revenue recognition (impacted by ASC 606 adoption in 2018), goodwill and intangible asset valuation, with the 2018 qualitative impairment test indicating no impairment - Critical accounting policies require significant management judgment and include revenue recognition, allowances for doubtful accounts, business combinations, goodwill and intangible asset valuation, and income taxes[291](index=291&type=chunk) - On January 1, 2018, the company adopted ASC 606 (Revenue from Contracts with Customers) on a modified retrospective basis, which primarily affected performance-based billing arrangements[292](index=292&type=chunk) - Goodwill is tested for impairment annually as of November 30. The 2018 annual test was a qualitative assessment which concluded that it was more likely than not that the fair values of all reporting units exceeded their carrying amounts, so no quantitative test was necessary[312](index=312&type=chunk)[313](index=313&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on its variable-rate debt and fixed-rate convertible notes, mitigated by an interest rate swap hedging **$50.0 million** of variable-rate borrowings - The company is exposed to interest rate risk on its **$250 million** fixed-rate Convertible Notes and its variable-rate borrowings under the bank credit facility[321](index=321&type=chunk)[323](index=323&type=chunk) - An interest rate swap agreement is used to hedge interest rate risk on **$50.0 million** of variable-rate debt, fixing the rate at **1.900%** plus the applicable margin[324](index=324&type=chunk) - The company holds a non-interest bearing convertible debt investment in a privately-held company (Shorelight), which is carried at a fair value of **$50.4 million** as of December 31, 2018[327](index=327&type=chunk)[567](index=567&type=chunk) [Financial Statements and Supplementary Data](index=68&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The company's consolidated financial statements and supplementary data are included in the report, beginning on page F-1 - The company's Consolidated Financial Statements and supplementary data begin on page F-1 of the Annual Report on Form 10-K[328](index=328&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=68&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[329](index=329&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2018, with no material changes in Q4 2018 - Management concluded that disclosure controls and procedures were effective as of December 31, 2018[330](index=330&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2018, based on the COSO framework (2013)[335](index=335&type=chunk) - The effectiveness of internal control over financial reporting was audited by PricewaterhouseCoopers LLP[336](index=336&type=chunk) [Other Information](index=70&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[338](index=338&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the definitive proxy statement, and the company has adopted a Code of Business Conduct and Ethics - Information required by this item is incorporated by reference from the company's definitive proxy statement[340](index=340&type=chunk)[341](index=341&type=chunk)[343](index=343&type=chunk) - The company has adopted a Code of Business Conduct and Ethics, which is available on its website[342](index=342&type=chunk) [Executive Compensation](index=71&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation, including the Compensation Committee Report, is incorporated by reference from the company's definitive proxy statement - All information required by this item is incorporated by reference from the company's definitive proxy statement[343](index=343&type=chunk)[344](index=344&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=71&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details equity compensation plans and security ownership, noting **902,210 shares** available for future issuance under shareholder-approved plans as of December 31, 2018 Equity Compensation Plan Information as of December 31, 2018 | Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Options | Weighted Average Exercise Price of Outstanding Options | Number of Shares Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by shareholders | 154,297 | $30.52 | 902,210 | - Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the company's definitive proxy statement[347](index=347&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=73&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive proxy statement - All information required by this item is incorporated by reference from the company's definitive proxy statement[347](index=347&type=chunk)[348](index=348&type=chunk) [Principal Accounting Fees and Services](index=73&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the company's definitive proxy statement - Information on principal accounting fees and services is incorporated by reference from the company's definitive proxy statement[348](index=348&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=74&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed with the Form 10-K, including consolidated financial statements, schedules, and an index of exhibits such as corporate governance documents and material contracts - The documents filed with the report include the Consolidated Financial Statements and various exhibits[350](index=350&type=chunk) - Key exhibits include the company's certificate of incorporation, bylaws, indenture for convertible notes, credit agreement, and various management and compensation plan documents[350](index=350&type=chunk)[353](index=353&type=chunk)[355](index=355&type=chunk) [Form 10-K Summary](index=80&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[358](index=358&type=chunk)