Huron Consulting Group Files Q2 2024 10-Q

TL;DR

Huron Consulting Group dropped its Q2 10-Q. Check financials.

AI Summary

Huron Consulting Group Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter and the first six months of the fiscal year. Key financial data and operational details for this period are presented, reflecting the company's performance and financial position.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Huron Consulting Group, crucial for understanding the company's trajectory and making informed investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and any disclosed risks within the report can significantly impact a company's risk profile.

Key Players & Entities

• Huron Consulting Group Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240730 (date) — Filing date
• 550 WEST VAN BUREN STREET (location) — Company's business and mailing address
• CHICAGO (location) — Company's city
• IL (location) — Company's state
• 60607 (location) — Company's zip code
• (312) 583-8700 (phone_number) — Company's business phone number

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share HURN NASDAQ Global Select Mar

Filing Documents

• hurn-20240630.htm (10-Q) — 1579KB
• hurn2024630exhibit311.htm (EX-31.1) — 12KB
• hurn2024630exhibit312.htm (EX-31.2) — 13KB
• hurn2024630exhibit321.htm (EX-32.1) — 8KB
• hurn2024630exhibit322.htm (EX-32.2) — 8KB
• 0001289848-24-000172.txt ( ) — 7717KB
• hurn-20240630.xsd (EX-101.SCH) — 43KB
• hurn-20240630_cal.xml (EX-101.CAL) — 76KB
• hurn-20240630_def.xml (EX-101.DEF) — 256KB
• hurn-20240630_lab.xml (EX-101.LAB) — 612KB
• hurn-20240630_pre.xml (EX-101.PRE) — 450KB
• hurn-20240630_htm.xml (XML) — 1181KB

– Financial Information

Part I – Financial Information

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Operations and Other Comprehensive Income 2 Consolidated Statements of Stockholders' Equity 3 Consolidated Statements of Cash Flows 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 41

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 42

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 43 Signature 44 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS HURON CONSULTING GROUP INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 17,646 $ 12,149 Receivables from clients, net of allowances of $ 12,425 and $ 17,284 , respectively 181,074 162,566 Unbilled services, net of allowances of $ 2,709 and $ 5,984 , respectively 188,075 190,869 Income tax receivable 8,342 6,385 Prepaid expenses and other current assets 40,399 28,491 Total current assets 435,536 400,460 Property and equipment, net 23,357 23,728 Deferred income taxes, net 2,325 2,288 Long-term investments 64,918 75,414 Operating lease right-of-use assets 22,409 24,131 Other non-current assets 105,799 92,336 Intangible assets, net 24,118 18,074 Goodwill 647,451 625,711 Total assets $ 1,325,913 $ 1,262,142 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 9,740 $ 10,074 Accrued expenses and other current liabilities 26,495 33,087 Accrued payroll and related benefits 135,595 225,921 Current maturities of long-term debt 13,750 — Current maturities of operating lease liabilities 11,588 11,032 Deferred revenues 28,583 22,461 Total current liabilities 225,751 302,575 Non-current liabilities: Deferred compensation and other liabilities 40,038 35,665 Long-term debt, net of current portion 496,550 324,000 Operating lease liabilities, net of current portion 35,618 38,850 Deferred income taxes, net 27,378 28,160 Total non-current liabilities 599,584 426,675 Commitments and contingencies Stockholders' equity Common stock; $ 0.01 par value; 500,000,000 shares authorized; 20,843,283 and 21,316,441 shares issued, respectively 208 212 Treasury stock, at cost, 3,059,851 and 2,852,296 shares, respectively ( 159,537 ) ( 142,136 ) Additional paid-in capital 175,387 236,962 Retained earnings 470,515 415,027 Accumulated other comprehensive inco

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) 1. Description of Business Huron is a global professional services firm that partners with clients to develop growth strategies, optimize operations and accelerate digital transformation, including using an enterprise portfolio of technology, data and analytics solutions, to empower clients to own their future. By collaborating with clients, embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. We provide our services and products and manage our business under three operating segments: Healthcare, Education, and Commercial, which align our business by industry. The Commercial segment includes all industries outside of healthcare and education, including, but not limited to, financial services and energy and utilities. We also provide revenue reporting across two principal capabilities: i) Consulting and Managed Services and ii) Digital, which are methods by which we deliver our services and products. See Note 14 "Segment Information" for more information on each of our segments and their solutions. 2. Basis of Presentation and Significant Accounting Policies The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three and six months ended June 30, 2024 and 2023. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurri

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) 4. Goodwill and Intangible Assets Goodwill The table below sets forth the changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2024. Healthcare Education Commercial Total Balance as of December 31, 2023: Goodwill $ 644,983 $ 123,652 $ 312,968 $ 1,081,603 Accumulated impairment losses ( 190,024 ) ( 1,417 ) ( 264,451 ) ( 455,892 ) Goodwill, net as of December 31, 2023 $ 454,959 $ 122,235 $ 48,517 $ 625,711 Goodwill recorded in connection with business acquisitions — 21,677 76 21,753 Foreign currency translation — ( 13 ) — ( 13 ) Goodwill, net as of June 30, 2024 $ 454,959 $ 143,899 $ 48,593 $ 647,451 2024 Acquisitions On January 1, 2024, we completed the acquisition of the data analytics services team of Vlamis Software Solutions, Inc. ("Vlamis"). The results of operations of Vlamis are included within our consolidated financial statements as of the acquisition date and allocated among our Education and Commercial segments based on the engagements delivered by the business. On March 1, 2024, we completed the acquisition of Grenzebach Glier and Associates, Inc. ("GG+A"), a philanthropic management consulting firm that helps education institutions and other nonprofit organizations build and accelerate the philanthropic programs that support their mission. The results of operations of GG+A are included within our consolidated financial statements and results of operations of our Education segment as of the acquisition date. The acquisitions of Vlamis and GG+A are not significant to our consolidated financial statements individually or in the aggregate as of and for the three and six months ended June 30, 2024. These acquisitions were accounted for using the acquisition method of accounting. Contract assets and contract liabilities are recorded at their carrying value under Topic 606: Revenue from

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) Intangible asset amortization expense was $ 1.6 million and $ 2.0 million for the three months ended June 30, 2024 and 2023, respectively; and $ 3.3 million and $ 4.2 million for the six months ended June 30, 2024 and 2023, respectively. The table below sets forth the estimated annual amortization expense for the intangible assets recorded as of June 30, 2024. Year Ending December 31, Estimated Amortization Expense 2024 $ 6,536 2025 $ 6,808 2026 $ 5,044 2027 $ 3,637 2028 $ 2,668 Actual future amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, and other factors. 5. Revenues For the three months ended June 30, 2024 and 2023, we recognized revenues of $ 371.7 million and $ 346.8 million, respectively. Of the $ 371.7 million recognized in the second quarter of 2024, we recognized revenues of $ 18.2 million from obligations satisfied, or partially satisfied, in prior periods, of which $ 13.2 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $ 5.0 million was due to the release of allowances on receivables from clients and unbilled services. Of the $ 346.8 million recognized in the second quarter of 2023, we recognized revenues of $ 14.8 million from obligations satisfied, or partially satisfied, in prior periods, of which $ 12.6 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $ 2.2 million was due to the release of allowances on receivables from clients and unbilled services. For the six months ended June 30, 2024 and 2023, we recognized revenues of $ 727.6 million and $ 664.7 million, respectively. Of the $ 727.6 million recognized in the first six months of 2024, we recognized revenues of $ 20.5 million from obligations satisfied, or pa

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) December 31, 2023 was $ 28.6 million and $ 22.5 million, respectively. The $ 6.1 million increase reflects timing differences between client payments in accordance with their contract terms and the completion of our performance obligations. For the three and six months ended June 30, 2024, $ 4.2 million and $ 19.6 million of revenues recognized were included in the deferred revenue balance as of December 31, 2023, respectively. 6. Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted earnings per share reflects the potential reduction in earnings per share that could occur if securities or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. Such securities or other contracts include unvested restricted stock awards, unvested restricted stock units, and outstanding common stock options, to the extent dilutive. In periods for which we report a net loss, diluted weighted average common shares outstanding excludes all potential common stock equivalents as their impact on diluted net loss per share would be anti-dilutive. Earnings per share under the basic and diluted computations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 37,482 $ 24,712 $ 55,488 $ 38,131 Weighted average common shares outstanding – basic 17,887 18,939 18,042 19,029 Weighted average common stock equivalents 567 547 699 569 Weighted average common shares outstanding – diluted 18,454 19,486 18,741 19,598 Net income per basic share $ 2.10 $ 1.30 $ 3.08 $ 2.00 Net income per diluted share $ 2.03 $ 1.27 $ 2.96 $ 1.95 The number of anti-dilutive securities excluded from the computa

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