Huron Consulting Group Inc. (NASDAQ:HURN) Q2 2022 Earnings Conference Call July 28, 2022 5:00 PM ET Company Participants Jim Roth - Chief Executive Officer John Kelly - Chief Financial Officer and Treasurer Mark Hussey - President Conference Call Participants Tobey Sommer - Truist securities Andrew Nicholas - William Blair Bill Sutherland - Benchmark Company Kevin Steinke - Barrington Research Operator Good afternoon, ladies and gentlemen. And welcome to Huron Consulting Group's webcast to discuss the fina ...

[Part I – Financial Information](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section presents the unaudited consolidated financial statements, management's discussion and analysis, market risk, and internal controls [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) These unaudited statements present Huron's financial position, operational results, and cash flows for the periods ending June 30, 2022 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The balance sheets show total assets increased to **$1.18 billion**, driven by receivables and investments, while long-term debt rose significantly Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $11,958 | $20,781 | | Total current assets | $303,712 | $257,682 | | Goodwill | $623,841 | $620,879 | | Total assets | $1,177,909 | $1,119,349 | | **Liabilities & Equity** | | | | Total current liabilities | $158,480 | $205,184 | | Long-term debt, net of current portion | $342,000 | $232,221 | | Total liabilities | $602,550 | $547,449 | | Total stockholders' equity | $575,359 | $571,900 | [Consolidated Statements of Operations and Other Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income) These statements show strong revenue growth and a significant increase in net income for both the quarter and six-month periods ending June 30, 2022 Key Operating Results (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $273,325 | $230,126 | $533,374 | $433,339 | | Operating Income | $29,004 | $16,129 | $44,962 | $24,369 | | Net Income | $13,875 | $12,797 | $40,727 | $18,202 | | Diluted EPS | $0.66 | $0.59 | $1.94 | $0.82 | - Other income (expense), net, was a significant driver of pre-tax income for the six-month period, contributing **$14.8 million** in 2022 compared to an expense of **$1.2 million** in 2021[10](index=10&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity slightly increased, driven by net income but partially offset by significant share repurchases during the first half of 2022 - For the six months ended June 30, 2022, the company repurchased and retired **1,020,946 shares** for **$52.3 million**[14](index=14&type=chunk) - Net income of **$40.7 million** and comprehensive income of **$43.4 million** were the primary contributors to the growth in retained earnings and total equity[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved, while financing activities, primarily from borrowings, funded operations and share repurchases, leading to a decrease in cash and cash equivalents Cash Flow Summary (in thousands) | Cash Flow Category | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(50,236) | $(61,970) | | Net cash used in investing activities | $(7,608) | $(13,752) | | Net cash provided by financing activities | $49,076 | $21,258 | | **Net decrease in cash** | **$(8,823)** | **$(54,195)** | - Financing activities were driven by net proceeds from bank borrowings of **$109.2 million** (**$224 million** proceeds less **$114.8 million** repayments), which were partially offset by **$52.4 million** in share repurchases[17](index=17&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail significant accounting policies, including a new operating model with three segments, goodwill reallocation, an unrealized investment gain, and ongoing share repurchases - Effective January 1, 2022, the company modified its operating model and began reporting under three new segments: Healthcare, Education, and Commercial, to better integrate industry expertise with digital, strategic, and financial advisory capabilities[22](index=22&type=chunk)[23](index=23&type=chunk)[120](index=120&type=chunk) - As a result of the reorganization, goodwill was reallocated among the new reporting units, with a subsequent impairment test indicating no impairment and fair values exceeding carrying values by **37%** (Healthcare), **199%** (Education), and **105%** (Commercial)[33](index=33&type=chunk)[35](index=35&type=chunk) - During Q1 2022, the company recognized a **$27.0 million** unrealized gain on its preferred stock investment in Medically Home based on an observable price change, increasing the investment's carrying amount to **$33.6 million**[91](index=91&type=chunk) - The board of directors extended the share repurchase program through December 31, 2023, and increased the authorized amount to **$200 million**, with **$77.9 million** remaining available as of June 30, 2022[50](index=50&type=chunk)[51](index=51&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting strong revenue growth, improved operating margin, and liquidity supported by a new operating model and credit facility [Results of Operations](index=43&type=section&id=Results%20of%20Operations) This section details the company's operational results, showing significant revenue growth across segments and capabilities, and a substantial increase in net income for the quarter and six-month periods Revenues by Segment - Q2 2022 vs Q2 2021 (in thousands) | Segment | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Healthcare | $128,474 | $114,750 | 12.0% | | Education | $88,225 | $60,475 | 45.9% | | Commercial | $56,626 | $54,901 | 3.1% | | **Total** | **$273,325** | **$230,126** | **18.8%** | Revenues by Capability - Q2 2022 vs Q2 2021 (in thousands) | Capability | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Consulting and Managed Services | $147,871 | $145,004 | 2.0% | | Digital | $125,454 | $85,122 | 47.4% | | **Total** | **$273,325** | **$230,126** | **18.8%** | - For the six months ended June 30, 2022, net income increased significantly to **$40.7 million** from **$18.2 million** in the prior year, primarily driven by a **$27.0 million** unrealized gain on the Medically Home preferred stock investment[227](index=227&type=chunk)[230](index=230&type=chunk) - The total number of revenue-generating professionals increased to **4,243** as of June 30, 2022, from **3,459** a year prior, reflecting increased demand and acquisitions[177](index=177&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash and a substantial credit facility, which funded operations and share repurchases, with management deeming it sufficient for future needs - The company has a **$600 million** senior secured revolving credit facility maturing in September 2024, with **$342.0 million** borrowed and **$257.3 million** unused capacity as of June 30, 2022[250](index=250&type=chunk)[256](index=256&type=chunk) - During the first six months of 2022, the company repurchased **$52.2 million** of its common stock under its authorized program, which was increased to **$200 million** and extended through 2023[246](index=246&type=chunk)[248](index=248&type=chunk) - Net cash used in operating activities improved to **$50.2 million** for the first half of 2022, compared to **$62.0 million** for the same period in 2021, due to increased cash collections[238](index=238&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risks primarily involve interest rate fluctuations on variable-rate debt, mitigated by swaps, and the market value volatility of its significant private investments - The company is exposed to interest rate risk on its **$342.0 million** of variable-rate borrowings, where a hypothetical **100 basis point** change would affect pretax income by **$1.4 million** annually, after considering interest rate swaps[269](index=269&type=chunk) - To hedge against interest rate risk, the company has three active interest rate swap agreements with notional amounts totaling **$200 million**, converting variable LIBOR-based payments to fixed rates of **1.900%**, **1.500%**, and **0.885%**[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk) - The company holds a preferred stock investment in Medically Home with a carrying value of **$33.6 million** as of June 30, 2022, whose value changes are recorded in the statement of operations and represent a market risk[278](index=278&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the second quarter of 2022 - Management, including the CEO and CFO, evaluated disclosure controls and procedures and found them to be effective as of the end of the period[279](index=279&type=chunk) - No changes occurred in internal control over financial reporting during the quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, these controls[280](index=280&type=chunk) [Part II – Other Information](index=71&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section provides information on legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with management not expecting any material adverse effect on its financial position or operations - The company states that it is not a party to any litigation or legal proceeding that is reasonably expected to have a material adverse effect on its financial position or operations[283](index=283&type=chunk) - This section incorporates by reference the discussion of the Oaktree litigation from Note 13 of the financial statements, where it is detailed that the matter is stayed pending arbitration and the company does not expect a material loss[114](index=114&type=chunk)[282](index=282&type=chunk) [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors are reported, with a reference to the Annual Report on Form 10-K for a complete description - The report directs investors to the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2021, for a full description of material risks[284](index=284&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, the company repurchased shares under its extended and increased share repurchase program, with a significant amount remaining available for future repurchases Share Repurchases - Q2 2022 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Value Remaining under Program | | :--- | :--- | :--- | :--- | :--- | | April 2022 | 57,216 | $47.34 | 54,889 | $103,667,584 | | May 2022 | 239,650 | $56.94 | 239,650 | $90,015,176 | | June 2022 | 203,265 | $59.55 | 203,008 | $77,919,714 | | **Total** | **500,131** | **$56.90** | **497,547** | **$77,919,714** | - The share repurchase program was extended through December 31, 2023, and the total authorized amount was increased to **$200 million**[286](index=286&type=chunk)[287](index=287&type=chunk) [Defaults Upon Senior Securities](index=73&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported by the company - The company reported no defaults upon senior securities[291](index=291&type=chunk) [Mine Safety Disclosures](index=73&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[292](index=292&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - The company reported no other information for this item[293](index=293&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The exhibits filed include certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002[296](index=296&type=chunk) - The filing includes Inline XBRL documents for financial data tagging[296](index=296&type=chunk)

Huron Consulting Group, Inc. (NASDAQ:HURN) Q1 2022 Earnings Conference Call May 3, 2022 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 Jasper Bibb - Truist Securities Andrew Nicholas - William Blair Bill Sutherland - Benchmark Company Kevin Steinke - Barrington Research Operator Good afternoon, ladies and gentlemen, and welcome to Huron Consulting Group's webcast to discu ...

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 HURON CONSULTING GROUP INC. (Exact name of registrant as specified in its charter) 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, 2022 (State or other jurisdiction of incorporation or organ ...

| --- | --- | |---------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | 2022 Business Realignment | | | and Re-segmentation | | | | | | Supplemental Materials | | Forward-looking Statements Statements in this presentation that are not historical in nature, including those concerning the company's current expectations about its future results, are "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litig ...

Huron Consulting Group Inc. (NASDAQ:HURN) Q4 2021 Earnings Conference Call February 24, 2022 5:00 PM ET Company Participants Jim Roth - Chief Executive Officer Mark Hussey - President and Chief Operating Officer John Kelly - Chief Financial Officer Conference Call Participants Andrew Nicholas - William Blair Jasper Bibb - Truist Bill Sutherland - Benchmark Company Kevin Steinke - Barrington Research Operator Good afternoon, ladies and gentlemen and welcome to Huron Consulting Group’s Webcast to discuss Fina ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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) Delaware 01-0666114 (State or other jurisdiction of incorpo ...

Financial Data and Key Metrics Changes - Revenues for Q3 2021 were $224 million, up 9.1% from $205.3 million in Q3 2020, driven by growth across all three operating segments [17] - Net income increased to $13.7 million or $0.64 per diluted share in Q3 2021, compared to $11.1 million or $0.50 per diluted share in Q3 2020 [17] - Adjusted EBITDA was $26.4 million in Q3 2021, representing 11.8% of revenues, compared to $23.6 million or 11.5% of revenues in Q3 2020 [17] Business Line Data and Key Metrics Changes - **Healthcare Segment**: Revenues grew 6.2% to $92.8 million, accounting for 42% of total company revenues [18][19] - **Business Advisory Segment**: Revenues increased by 5.9% to $70 million, representing 31% of total revenues, with growth driven by strategy and digital technology offerings [19] - **Education Segment**: Revenues rose 18% to $61.2 million, making up 27% of total revenues, driven by strong demand for student research and strategy offerings [21] Market Data and Key Metrics Changes - The company noted a robust pipeline in the healthcare and education sectors, with expectations for continued growth as pandemic-related challenges wane [5][12] - The tightening labor market is impacting hiring and wage pressures, but the company remains optimistic about its ability to attract talent due to its strong culture [42][43] Company Strategy and Development Direction - The company is focusing on core industry verticals such as healthcare, education, financial services, and energy, leveraging its technology capabilities to drive growth [46] - A strategic decision was made to divest the Life Sciences practice to concentrate resources on areas with better growth opportunities [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current industry challenges and anticipates strong demand for services as the pandemic recedes [8][15] - The company narrowed its annual revenue guidance to $885 million to $905 million, with an adjusted EBITDA guidance range of 10.8% to 11.3% of revenues [27] Other Important Information - The company expects to finish the year with a leverage ratio below 2x adjusted EBITDA, with cash flow generated from operations in Q3 2021 amounting to $33.8 million [25][26] - DSO increased to 76 days in Q3 2021, up from 62 days in Q3 2020, but is expected to normalize to around 65 days [24] Q&A Session Summary Question: Sales conversion in Healthcare and Education - Management noted improved sales conversion in education and healthcare, with expectations for continued solid conversion of backlog [32][33] Question: Headcount growth drivers - The headcount growth was attributed to a mix of organic hiring, including new graduates and experienced hires across all segments [34][35] Question: Utilization rates and practices affecting them - Management indicated that lower utilization rates were due to excess capacity held in anticipation of market demand, which is now picking up [36][38] Question: Impact of tightening labor market on hiring - Management acknowledged the tightening labor market and wage pressures but stated it is manageable and not significantly affecting financial results [41][43] Question: Margin expansion outlook - Management expects a gradual return to pre-pandemic margin levels, with opportunities for margin enhancement through scale and efficiency improvements [51] Question: Travel expenses and their impact - Travel expenses are expected to ramp up as business activities increase, but most travel costs are billable to clients [52] Question: Impact of delayed project startups - The impact from delayed project startups due to the Delta variant was low-single digit millions, with expectations for recovery in Q4 [53] Question: Life Sciences divestiture proceeds - While specific sale price details were not disclosed, management indicated that the valuation was accretive based on revenue metrics [55]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Delaware 01-0666114 (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, 2021 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 o ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------|-----------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INVESTOR PRESENTATION | | | | | | | | | Sidoti | & Company Fall 2021 Investor Conference | | | | | | | | | September 22, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | Forward-looking Statements 2 Statements in this press release that are not his ...