CHICAGO--(BUSINESS WIRE)--Global professional services firm Huron (NASDAQ: HURN) today announced 27 managing director and principal promotions to recognize these individuals as the firm expands its leadership team in order to foster future growth. “ I extend my congratulations to our newly promoted managing directors and principals on achieving this well-deserved career milestone,” said Mark Hussey, chief executive officer and president of Huron. “ Their dedication, expertise, and unwavering commitment to ...

[Part I – Financial Information](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The unaudited consolidated financial statements for Q3 and nine months ended September 30, 2023, reflect significant revenue growth, increased total assets to $1.28 billion, and improved net income and cash flow from operations [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased to $1.28 billion from $1.20 billion at year-end 2022, driven by receivables and unbilled services, while total liabilities grew due to increased long-term debt, and stockholders' equity remained stable Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,282,300** | **$1,199,040** | | Total current assets | $405,531 | $328,484 | | Goodwill | $625,711 | $624,966 | | **Total Liabilities** | **$728,946** | **$647,000** | | Long-term debt | $358,000 | $290,000 | | **Total stockholders' equity** | **$553,354** | **$552,040** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2023, revenues grew 25.5% to $358.2 million with net income of $21.5 million, while nine-month revenues reached $1.02 billion, a 24.9% increase, with net income slightly up at $59.6 million Q3 2023 vs Q3 2022 Performance (in thousands, except EPS) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $358,178 | $285,370 | 25.5% | | Operating Income | $37,342 | $29,299 | 27.5% | | Net Income | $21,516 | $17,741 | 21.3% | | Diluted EPS | $1.10 | $0.86 | 27.9% | Nine Months 2023 vs 2022 Performance (in thousands, except EPS) | Metric | Nine Months 2023 | Nine Months 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,022,832 | $818,744 | 24.9% | | Operating Income | $95,492 | $74,261 | 28.6% | | Net Income | $59,647 | $58,468 | 2.0% | | Diluted EPS | $3.05 | $2.80 | 8.9% | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%20Equity) For the nine months ended September 30, 2023, total stockholders' equity slightly increased to $553.4 million, driven by net income but offset by significant share repurchases and employee tax withholdings - Key activities impacting stockholders' equity in the first nine months of 2023 include net income of **$59.6 million**, share repurchases of **$88.4 million**, and share-based compensation of **$35.0 million**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash from operating activities significantly improved to $54.9 million, while investing activities used $25.8 million and financing activities used $31.5 million, primarily due to share repurchases Cash Flow Summary (Nine Months Ended, in thousands) | Activity | Sep 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $54,894 | $(5,779) | | Net cash used in investing activities | $(25,799) | $(10,779) | | Net cash from (used in) financing activities | $(31,518) | $4,752 | | **Net decrease in cash** | **$(2,436)** | **$(11,950)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial statement items, highlighting the acquisition of Roundtable Analytics, Inc., a $600 million credit facility with $358.0 million outstanding, restructuring charges, and strong revenue growth across all segments - On September 1, 2023, the company acquired Roundtable Analytics, Inc., a healthcare analytics company, which was not significant to the consolidated financial statements. Goodwill of **$745,000** was recorded in the Healthcare segment[24](index=24&type=chunk) - As of September 30, 2023, the company had **$228.4 million** of remaining performance obligations under long-term engagements, with **$72.6 million** expected to be recognized as revenue in 2024[31](index=31&type=chunk)[32](index=32&type=chunk) - The company repurchased **1,116,830 shares** for **$88.4 million** in the first nine months of 2023. The board extended the share repurchase program through December 31, 2024, and increased the authorized amount to **$400 million**[40](index=40&type=chunk)[44](index=44&type=chunk) Segment Revenue and Operating Income (Nine Months Ended, in thousands) | Segment | Revenue 2023 | Revenue 2022 | Op. Income 2023 | Op. Income 2022 | | :--- | :--- | :--- | :--- | :--- | | Healthcare | $501,994 | $381,669 | $128,294 | $91,441 | | Education | $325,884 | $263,234 | $77,112 | $58,848 | | Commercial | $194,954 | $173,841 | $39,971 | $38,282 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 2023 performance to continued demand across all segments, particularly Consulting and Managed Services, driving 25.5% revenue growth to $358.2 million, while maintaining a healthy liquidity position [Results of Operations](index=39&type=section&id=Results%20of%20Operations) For Q3 2023, revenues increased 25.5% to $358.2 million, driven by strong segment growth and higher utilization rates, leading to a 27.5% increase in operating income to $37.3 million Q3 2023 Revenue by Segment (in thousands) | Segment | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Healthcare | $179,177 | $131,319 | 36.4% | | Education | $111,043 | $94,347 | 17.7% | | Commercial | $67,958 | $59,704 | 13.8% | | **Total** | **$358,178** | **$285,370** | **25.5%** | Q3 2023 Revenue by Capability (in thousands) | Capability | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Consulting and Managed Services | $214,688 | $155,901 | 37.7% | | Digital | $143,490 | $129,469 | 10.8% | | **Total** | **$358,178** | **$285,370** | **25.5%** | - Direct costs for Q3 2023 increased by **$51.4 million**, primarily due to a **$48.1 million** rise in compensation costs for revenue-generating professionals, reflecting higher headcount, annual salary increases, and a **$25.1 million** increase in performance bonus expense[182](index=182&type=chunk) Non-GAAP Reconciliation Highlights (Q3 2023 vs Q3 2022, in thousands) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Net Income | $21,516 | $17,741 | | Adjusted EBITDA | $48,000 | $36,470 | | Adjusted Net Income | $27,166 | $20,742 | | Adjusted Diluted EPS | $1.39 | $1.01 | [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily from operations and its $600 million credit facility, with $241.4 million unused capacity as of September 30, 2023, and a recently extended $400 million share repurchase program - Net cash provided by operating activities improved to **$54.9 million** for the first nine months of 2023, compared to a use of **$5.8 million** in the prior-year period, mainly due to increased cash collections[229](index=229&type=chunk) - The company has a **$600 million** five-year senior secured revolving credit facility maturing in November 2027. As of September 30, 2023, **$358.0 million** was outstanding, with an unused borrowing capacity of **$241.4 million**[240](index=240&type=chunk)[248](index=248&type=chunk) - The company was in compliance with its financial covenants as of September 30, 2023, with a Consolidated Leverage Ratio of **1.82 to 1.00** and a Consolidated Interest Coverage Ratio of **10.86 to 1.00**[246](index=246&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates and foreign currency fluctuations through hedging instruments, with a hypothetical 100 basis point interest rate change impacting pretax income by $1.1 million annually, and holds investments in privately-held companies - The company hedges interest rate risk on its variable-rate borrowings. As of September 30, 2023, it had interest rate swap agreements with a notional amount of **$250.0 million**[257](index=257&type=chunk) - Foreign currency risk is managed through non-deliverable forward contracts for Indian Rupee (INR) denominated expenses, with a notional amount of **$16.5 million** as of September 30, 2023[258](index=258&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective[264](index=264&type=chunk) [Part II – Other Information](index=67&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial position or results of operations - As of the report date, the company states it is not involved in any legal proceedings that would materially impact its financials[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On September 1, 2023, the company issued 16,337 shares for the Roundtable Analytics acquisition and repurchased 290,288 shares in Q3 2023, with the board extending and increasing the share repurchase program to $400 million - Issued **16,337 shares** of common stock (**$1.6 million** value) for the acquisition of Roundtable Analytics, Inc. on September 1, 2023[269](index=269&type=chunk) Q3 2023 Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | July 2023 | 9,811 | $80.79 | | August 2023 | 211,895 | $98.26 | | September 2023 | 72,402 | $99.87 | | **Total** | **294,108** | **$98.07** | - As of September 30, 2023, **$21.1 million** remained available for share repurchases under the program, which was subsequently extended and increased to a **$400 million** authorization[271](index=271&type=chunk) [Other Information](index=69&type=section&id=Item%205.%20Other%20Information) During Q3 2023, Non-Executive Chairman John McCartney and CEO C. Mark Hussey adopted Rule 10b5-1 trading plans for the sale of company shares - CEO C. Mark Hussey adopted a Rule 10b5-1 trading plan on August 29, 2023, for the sale of **51,628 shares**, expiring August 28, 2024[278](index=278&type=chunk)

Huron Consulting Group Inc. (NASDAQ:HURN) Q2 2023 Earnings Conference Call July 27, 2023 5:00 PM ET Company Participants Mark Hussey - Chief Executive Officer and President John Kelly - Chief Financial Officer and Treasurer Conference Call Participants Tobey Sommer - Truist Securities Andrew Nicholas - William Blair Bill Sutherland - Benchmark Company Kevin Steinke - Barrington Research Operator Good afternoon. And welcome to Huron Consulting Group's webcast to discuss the financial results for the Second Q ...

Table of Contents 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, 2023 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 or other jurisdiction of incorporation or organi ...

Huron Consulting Group Inc. (NASDAQ:HURN) Q1 2023 Earnings Conference Call May 2, 2023 5:00 PM ET Company Participants Mark Hussey - Chief Executive Officer & President John Kelly - Chief Financial Officer Conference Call Participants Jack Wilson - Truist Securities Andrew Nicholas - William Blair & Company Kevin Steinke - Barrington Research & Associates Operator Good afternoon and welcome to Huron Consulting Group's webcast to discuss Financial Results for the First Quarter of 2023. At this time, all con ...

1934 Table of Contents 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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 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 2022 Earnings Conference Call February 28, 2023 5:00 PM ET Company Participants Mark Hussey - Chief Executive Officer & President John Kelly - Chief Financial Officer Conference Call Participants Tobey Sommer - Truist Securities Andrew Nicholas - William Blair & Company Bill Sutherland - Benchmark Kevin Steinke - Barrington Research & Associates Operator Good afternoon and welcome to Huron Consulting Group's webcast to discuss Financial Results for the Fourth Qua ...

[Part I](index=4&type=section&id=PART%20I) [Business](index=4&type=section&id=Item%201%2E%20Business) Huron operates under Healthcare, Education, and Commercial segments, delivering services via Consulting, Managed Services, and Digital capabilities - Effective January 1, 2022, the company modified its operating model to report under three industry segments: **Healthcare, Education, and Commercial**[17](index=17&type=chunk)[18](index=18&type=chunk) FY2022 Revenue by Operating Segment | Segment | Revenue Percentage | | :--- | :--- | | Healthcare | 47% | | Education | 32% | | Commercial | 21% | - The company's services are delivered through two principal capabilities: **Consulting and Managed Services**, and **Digital**[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - As of December 31, 2022, Huron had approximately **5,660 full-time professionals** and reported a high employee engagement score of **80%**[31](index=31&type=chunk)[32](index=32&type=chunk) - The professional services industry is **extremely competitive and highly fragmented**, with competition from various consulting and accounting firms[49](index=49&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A%2E%20Risk%20Factors) The company faces significant risks related to human capital retention, business growth, industry regulations, digital offerings, and financial stability - The company heavily relies on its **senior management and managing directors** for revenue generation, making their retention critical to success[56](index=56&type=chunk) - A significant portion of revenue is derived from the **healthcare and education industries**, making the company susceptible to adverse conditions in these sectors[73](index=73&type=chunk) - The business is increasingly dependent on its **digital offerings** and must continually invest in and adapt to rapid technological changes[79](index=79&type=chunk)[80](index=80&type=chunk) - **Goodwill and other intangible assets constitute 54% of total assets** ($648.4 million), and impairment could negatively impact financial results[119](index=119&type=chunk) - The Amended Credit Agreement imposes **restrictive covenants** and secures obligations with a lien on substantially all company assets[114](index=114&type=chunk) - The company faces risks related to its **significant operations in India**, including political instability and currency fluctuations[63](index=63&type=chunk)[69](index=69&type=chunk) [Unresolved Staff Comments](index=33&type=section&id=Item%201B%2E%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[130](index=130&type=chunk) [Properties](index=34&type=section&id=Item%202%2E%20Properties) Huron leases all its office facilities, including its principal executive offices in Chicago, and does not own any real estate - The company does not own any real estate and its principal executive offices are located at 550 W Van Buren Street, Chicago, Illinois 60607 under a lease[131](index=131&type=chunk) [Legal Proceedings](index=34&type=section&id=Item%203%2E%20Legal%20Proceedings) Management believes no current litigation is expected to have a material adverse effect on the company's financial position - As of the report date, the company is not a party to any litigation that management believes could have a material adverse effect on its financial results[133](index=133&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204%2E%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[134](index=134&type=chunk) [Part II](index=34&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205%2E%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on NASDAQ, dividend payments are restricted, and an active share repurchase program is in place - The company's common stock is traded on the NASDAQ Global Select Market under the symbol **'HURN'**[136](index=136&type=chunk) - No dividends have been declared or paid on common stock, and the ability to do so is restricted by its senior secured credit facility[137](index=137&type=chunk) - The board authorized a share repurchase program of up to **$300 million** through December 31, 2023, with **$108.9 million** remaining available at year-end 2022[139](index=139&type=chunk)[240](index=240&type=chunk) 2022 Share Repurchases | Metric | Value | | :--- | :--- | | Total Shares Purchased | 2,191,598 | | Average Price Paid Per Share | $58.88 | | Shares Purchased as Part of Program | 2,037,752 | | Total Cost of Program Repurchases | ~$121.3 million | [[Reserved]](index=36&type=section&id=Item%206%2E%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207%2E%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2022 saw significant revenue and income growth driven by strong demand, alongside improved margins and a refinanced credit facility FY2022 vs. FY2021 Key Financial Results | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1.13 B | $905.6 M | +25.0% | | Operating Income | $99.8 M | $52.8 M | +88.9% | | Operating Margin | 8.8% | 5.8% | +3.0 p.p. | | Net Income (Continuing Ops) | $75.6 M | $63.0 M | +19.9% | | Diluted EPS (Continuing Ops) | $3.64 | $2.89 | +26.0% | | Adjusted Diluted EPS (Non-GAAP) | $3.43 | $2.61 | +31.4% | - Revenue growth was driven by strong demand for **Digital capability services**, which increased **41.4% to $494.5 million**, and a **14.8% increase** in Consulting and Managed Services[175](index=175&type=chunk)[176](index=176&type=chunk) - The company refinanced its credit facility in November 2022, maintaining the **$600 million revolving commitment** and extending the maturity to 2027[182](index=182&type=chunk)[242](index=242&type=chunk) - Net cash provided by operating activities significantly increased to **$85.4 million in 2022** from $18.0 million in 2021, primarily due to higher cash collections[229](index=229&type=chunk)[231](index=231&type=chunk) - **Critical accounting policies** involve significant management judgment, especially in revenue recognition and the valuation of goodwill and intangible assets[253](index=253&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%207A%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate, foreign currency, and investment market risks, which it manages using derivative instruments - The company has interest rate risk from its variable-rate credit facility, partially hedged by **$200.0 million** in interest rate swaps[285](index=285&type=chunk)[286](index=286&type=chunk) - Foreign currency risk from operations in India is managed through **non-deliverable foreign exchange forward contracts**[287](index=287&type=chunk) - The company holds significant investments in privately-held companies **Shorelight ($57.6 million fair value)** and **Medically Home ($33.6 million carrying value)**[291](index=291&type=chunk)[292](index=292&type=chunk) [Financial Statements and Supplementary Data](index=74&type=section&id=Item%208%2E%20Financial%20Statements%20and%20Supplementary%20Data) This section references the company's Consolidated Financial Statements and supplementary data, which begin on page F-1 - The Company's Consolidated Financial Statements and supplementary data begin on page F-1 of this Annual Report on Form 10-K[294](index=294&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=74&type=section&id=Item%209%2E%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - None[295](index=295&type=chunk) [Controls and Procedures](index=74&type=section&id=Item%209A%2E%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2022 - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2022[296](index=296&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022, an assessment audited by PricewaterhouseCoopers LLP[301](index=301&type=chunk)[302](index=302&type=chunk) - There were **no material changes** in internal control over financial reporting during the fourth quarter of 2022[303](index=303&type=chunk) [Other Information](index=76&type=section&id=Item%209B%2E%20Other%20Information) The company reports no other information for this item - None[304](index=304&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=76&type=section&id=Item%209C%2E%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[305](index=305&type=chunk) [Part III](index=76&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=76&type=section&id=Item%2010%2E%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, officers, and governance is incorporated by reference from the company's definitive proxy statement - The information required by this item is **incorporated by reference** from the company's definitive proxy statement[307](index=307&type=chunk)[309](index=309&type=chunk) - The company has adopted a **Code of Business Conduct and Ethics** applicable to all employees, officers, and directors, which is available on its website[308](index=308&type=chunk) [Executive Compensation](index=78&type=section&id=Item%2011%2E%20Executive%20Compensation) All information regarding executive compensation is incorporated by reference from the company's definitive proxy statement - The information required by this item is **incorporated by reference** from the company's definitive proxy statement under 'Executive Compensation'[310](index=310&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=78&type=section&id=Item%2012%2E%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership is incorporated by reference, with details provided on shares available under equity compensation plans Equity Compensation Plan Information as of December 31, 2022 | 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:** | | | | | 2012 Omnibus Incentive Plan | 227,116 | $48.89 | 590,383 | | Stock Ownership Participation Program | — | N/A | 199,991 | | **Total** | **227,116** | **$48.89** | **790,374** | - The company does not have any equity compensation plans that have not been approved by shareholders[311](index=311&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=78&type=section&id=Item%2013%2E%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) All information on related party transactions and director independence is incorporated by reference from the proxy statement - The information required by this item is **incorporated by reference** from the company's definitive proxy statement[313](index=313&type=chunk)[314](index=314&type=chunk) [Principal Accounting Fees and Services](index=80&type=section&id=Item%2014%2E%20Principal%20Accounting%20Fees%20and%20Services) Information regarding accounting fees and services is incorporated by reference from the company's definitive proxy statement - The information required by this item is **incorporated by reference** from the Proxy Statement under 'Audit and Non-Audit Fees'[316](index=316&type=chunk) [Part IV](index=80&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=80&type=section&id=Item%2015%2E%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements and material contract exhibits - This item lists the financial statements, schedules, and exhibits filed with the report, including material contracts and compensation agreements[317](index=317&type=chunk)[320](index=320&type=chunk) [Form 10-K Summary](index=84&type=section&id=Item%2016%2E%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[323](index=323&type=chunk) [Financial Statements and Supplementary Data](index=87&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) [Report of Independent Registered Public Accounting Firm](index=88&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion, identifying revenue recognition as a critical audit matter - The auditor, PricewaterhouseCoopers LLP, issued an **unqualified opinion** on both the consolidated financial statements and the effectiveness of internal control[336](index=336&type=chunk) - A **Critical Audit Matter (CAM)** was identified related to 'Revenue Recognition – Fixed-Fee and Healthcare Performance-Based Billing Arrangements' due to significant management judgments[344](index=344&type=chunk)[345](index=345&type=chunk) [Consolidated Financial Statements](index=91&type=section&id=Consolidated%20Financial%20Statements) The company's assets and liabilities increased in 2022, while stockholders' equity slightly decreased, with net income rising to $75.6 million Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $328,484 | $257,682 | | Goodwill | $624,966 | $620,879 | | **Total Assets** | **$1,199,040** | **$1,119,349** | | Total Current Liabilities | $245,684 | $205,184 | | Long-term Debt, net | $290,000 | $232,221 | | **Total Liabilities** | **$646,900** | **$547,449** | | **Total Stockholders' Equity** | **$552,040** | **$571,900** | Consolidated Statement of Operations Data (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total Revenues | $1,132,455 | $905,640 | $844,127 | | Operating Income (Loss) | $99,760 | $52,839 | $(28,852) | | Net Income (Loss) from Continuing Operations | $75,552 | $62,987 | $(23,718) | [Notes to Consolidated Financial Statements](index=97&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, segment information, financing arrangements, and the valuation of goodwill and intangible assets [Note 2: Summary of Significant Accounting Policies](index=97&type=section&id=Note%202%2E%20Summary%20of%20Significant%20Accounting%20Policies) This note details policies for revenue recognition, goodwill impairment testing, business combinations, leases, and software development costs - Revenue is recognized under four main billing arrangements, with **performance-based fees** estimated using a probability-weighted assessment[369](index=369&type=chunk)[372](index=372&type=chunk) - **Goodwill is tested for impairment annually** as of November 30 at the reporting unit level, with an option for a qualitative assessment first[265](index=265&type=chunk)[401](index=401&type=chunk) - For business combinations, assets acquired and liabilities assumed are recorded at fair value, with contract assets measured under Topic 606 guidance[408](index=408&type=chunk) [Note 4: Goodwill and Intangible Assets](index=111&type=section&id=Note%204%2E%20Goodwill%20and%20Intangible%20Assets) Net goodwill was $625.0 million as of year-end 2022, with no impairment found during the annual test Goodwill by Reporting Unit (Net, as of Dec 31, 2022) | Reporting Unit | Carrying Value of Goodwill (in thousands) | | :--- | :--- | | Healthcare | $454,214 | | Education | $122,235 | | Commercial | $48,517 | | **Total** | **$624,966** | - Due to the January 1, 2022 operating model change, goodwill was reallocated, and a subsequent impairment test confirmed **no impairment**[272](index=272&type=chunk)[442](index=442&type=chunk) - The annual goodwill impairment test as of November 30, 2022, was performed using a **qualitative assessment**, which concluded no quantitative test was necessary[274](index=274&type=chunk)[275](index=275&type=chunk)[444](index=444&type=chunk) - Intangible assets had a net book value of **$23.4 million** at year-end 2022, with an amortization expense of **$11.2 million** for the year[453](index=453&type=chunk)[454](index=454&type=chunk) [Note 7: Financing Arrangements](index=120&type=section&id=Note%207%2E%20Financing%20Arrangements) The company refinanced its credit facility in November 2022, securing a $600 million five-year revolving line of credit - The company entered into a Third Amended and Restated Credit Agreement on November 15, 2022, consisting of a **$600 million five-year senior secured revolving credit facility**[472](index=472&type=chunk) Debt Outstanding (in thousands) | Instrument | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Senior secured credit facility | $290,000 | $230,000 | | Promissory note due 2024 | — | $2,780 | | **Total long-term debt** | **$290,000** | **$232,780** | - As of December 31, 2022, the company had **$290.0 million outstanding** on its credit facility and **$309.3 million of unused borrowing capacity**[476](index=476&type=chunk)[479](index=479&type=chunk) [Note 19: Segment Information](index=151&type=section&id=Note%2019%2E%20Segment%20Information) The company reports results across three segments—Healthcare, Education, and Commercial—and two primary capabilities - Effective January 1, 2022, the company realigned its reporting structure into three segments: **Healthcare, Education, and Commercial**[604](index=604&type=chunk)[605](index=605&type=chunk) Segment Operating Results for Year Ended Dec 31, 2022 (in thousands) | Segment | Revenues | Operating Income | Operating Margin | | :--- | :--- | :--- | :--- | | Healthcare | $534,999 | $131,227 | 24.5% | | Education | $359,835 | $78,924 | 21.9% | | Commercial | $237,621 | $50,025 | 21.1% | | **Total Segments** | **$1,132,455** | **$260,176** | | Revenues by Capability for Year Ended Dec 31, 2022 (in thousands) | Capability | Revenues | | :--- | :--- | | Consulting and Managed Services | $637,994 | | Digital | $494,461 | | **Total Revenues** | **$1,132,455** |

Huron Consulting Group Inc. (NASDAQ:HURN) Q3 2022 Earnings Conference Call November 1, 2022 5:00 PM ET Company Participants Jim Roth - Chief Executive Officer John Kelly - Chief Financial Officer Mark Hussey - President Ronnie Dail - Chief Operating Officer Conference Call Participants Tobey Sommer - Truist Andrew Nicholas - William Blair Kevin Steinke - Barrington Research Operator Good afternoon and welcome to Huron Consulting Group’s webcast to discuss Financial Results for the Third Quarter 2022. [Opera ...

Table of Contents 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 September 30, 2022 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 or other jurisdiction of incorporation or o ...