Huron Consulting(US:HURN)2024-10-29 20:25Revenue Growth - Revenues before reimbursable expenses increased $11.9 million, or 3.3%, to $370.0 million in Q3 2024 from $358.2 million in Q3 2023[1] - Revenues before reimbursable expenses increased $74.8 million, or 7.3%, to $1.10 billion for the first nine months of 2024 from $1.02 billion for the same prior year period[3] - Total revenues for Q3 2024 increased to $378.089 million, up from $367.466 million in Q3 2023[24] - Revenues before reimbursable expenses for Q3 2024 were $370.049 million, up from $358.178 million in Q3 2023[24] - Total revenues for the nine months ended September 30, 2024, grew by 7.0% to $1.12 billion compared to $1.05 billion in 2023[27] - Revenues before reimbursable expenses for the nine months ended September 30, 2024 were $1.10 billion, a 7.3% increase from $1.02 billion in the same period of 2023[40] Net Income and Profitability - Net income increased $5.6 million, or 26.2%, to $27.1 million in Q3 2024, compared to $21.5 million in Q3 2023[2] - Net income increased $23.0 million, or 38.5%, to $82.6 million for the first nine months of 2024, compared to $59.6 million for the same prior year period[3] - Net income for Q3 2024 rose to $27.149 million, compared to $21.516 million in Q3 2023[24] - Net income for the nine months ended September 30, 2024, increased to $82.6 million from $59.6 million in 2023, representing a 38.6% increase[26] - Net income for Q3 2024 was $27.1 million, up 26.2% from $21.5 million in Q3 2023[40] - Net income as a percentage of total revenues for the nine months ended September 30, 2024 was 7.4%, up from 5.7% in the same period of 2023[40] Adjusted EBITDA and Margins - Adjusted EBITDA increased $6.9 million, or 14.3%, to $54.9 million in Q3 2024 from $48.0 million in Q3 2023[2] - Adjusted EBITDA increased $18.4 million, or 14.6%, to $144.4 million for the first nine months of 2024 from $126.0 million for the same prior year period[4] - Adjusted EBITDA for Q3 2024 was $54.9 million, a 14.3% increase from $48.0 million in Q3 2023[40] - Adjusted EBITDA margin for Q3 2024 was 14.8% of revenues before reimbursable expenses, up from 13.4% in Q3 2023[40] Earnings Per Share - Diluted earnings per share increased $0.37, or 33.6%, to $1.47 in Q3 2024, compared to $1.10 in Q3 2023[2] - Earnings per diluted share for Q3 2024 were $1.47, up from $1.10 in Q3 2023[24] - Diluted earnings per share for Q3 2024 was $1.47, compared to $1.10 in Q3 2023, a 33.6% increase[41] - Adjusted diluted earnings per share for Q3 2024 was $1.68, up 20.9% from $1.39 in Q3 2023[41] Segment Performance - Healthcare segment revenues before reimbursable expenses increased by 10.4% to $554.0 million for the nine months ended September 30, 2024, compared to $502.0 million in 2023[27] - Education segment revenues before reimbursable expenses rose by 9.1% to $355.4 million for the nine months ended September 30, 2024, from $325.9 million in 2023[27] - Commercial segment revenues before reimbursable expenses decreased by 3.4% to $188.3 million for the nine months ended September 30, 2024, compared to $195.0 million in 2023[27] - Consulting and Managed Services revenues before reimbursable expenses grew by 7.7% to $634.4 million for the nine months ended September 30, 2024, compared to $589.1 million in 2023[28] - Digital revenues before reimbursable expenses increased by 6.8% to $463.2 million for the nine months ended September 30, 2024, from $433.7 million in 2023[28] Operating and Financial Metrics - Operating income for Q3 2024 was $42.445 million, compared to $37.342 million in Q3 2023[24] - Operating income for the nine months ended September 30, 2024, rose by 27.5% to $121.8 million compared to $95.5 million in 2023[29] - Income before taxes for the nine months ended September 30, 2024, increased by 30.6% to $107.2 million from $82.1 million in 2023[29] - Comprehensive income for Q3 2024 was $22.89 million, compared to $19.136 million in Q3 2023[24] Balance Sheet and Cash Flow - Total assets as of September 30, 2024, were $1.32878 billion, up from $1.262142 billion as of December 31, 2023[25] - Long-term debt increased to $428.204 million as of September 30, 2024, from $324 million as of December 31, 2023[25] - Cash and cash equivalents increased to $18.497 million as of September 30, 2024, from $12.149 million as of December 31, 2023[25] - Goodwill increased to $647.541 million as of September 30, 2024, from $625.711 million as of December 31, 2023[25] Workforce and Professional Growth - The number of revenue-generating professionals increased 10.4% to 5,896 as of September 30, 2024 from 5,341 as of September 30, 2023[12] - Total number of revenue-generating professionals increased by 10.4% to 5,896 as of September 30, 2024, from 5,341 in 2023[28] Guidance and Expectations - The company narrowed the range of expected revenues before reimbursable expenses to $1.47 billion to $1.49 billion while maintaining its previous midpoint of guidance[6] - The company increased its adjusted diluted earnings per share expectations to a range of $6.00 to $6.20[6] Litigation and Legal Costs - The company recorded a $15.0 million pre-tax litigation settlement gain in Q2 2024, with $11.7 million excluded from non-GAAP measures[43] - Third-party legal costs for the litigation matter were $3.3 million in 2024, with $2.7 million incurred in Q1 and $0.6 million in Q2[43]