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 ...

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 ...