Slide 1: Investor Presentation First Quarter 2016
Investor Presentation First Quarter 2016
Slide 2: Experience. Redefined.
Experience. Redefined. ® Statements in this presentation that are not historical in nature, including those concerning the Company’s current expectations about its future requirements and needs, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as ame
Slide 3: Huron Consulting Group
Huron Consulting Group © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 3
Slide 4: Huron Operating Segments
Huron Operating Segments Segment percentages are based on year–to-date 2016 revenue results. © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 4
Slide 5: Healthcare
Healthcare © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 5
Slide 6: Healthcare Clients We Serve
Healthcare Revenue & Operating Margin % Clients We Serve 37.9% 39.5% $500 45% 38.4% 38.2% 37.8% $450 40% Integrated Health Systems $400 35% $350 30% Academic Medical Centers $300 25% Children’s Hospitals In millions $250 20% $200 Community Hospitals 15% $150 Public Hospitals 10% $100 5% Government H
Slide 7: Top Trends for Not-For-Profit Health Systems from the JP Morgan Healthcare Conference
Top 10 Trends for Not-For-Profit Health Systems from the JP Morgan Healthcare Conference Trends Capabilities Changing payment structures Population health and understanding cost and margins Managing unit cost and reducing the cost of care delivery Becoming a health plan/company Outpatient shift Pers
Slide 8: Top Concerns Among Hospital Executives
Top Concerns Among Hospital Executives Managing unit cost and reducing the cost of care delivery • The transition from fee-for-service to value-based care requires more effective use of resources to ICON TBD coordinate and deliver care • Providers are taking on payment risk for delivering better car
Slide 9: Healthcare: Areas of Expertise
Healthcare: Areas of Expertise Revenue Cycle Cost & Clinical Studer Group • Clinical Documentation • Care Access • Coaching Partnerships Improvement (CDI) • Clinical Operations • Conferences • Revenue Cycle • Human Resources • Publishing • Labor • Speaking • Non-Labor • Pharmacy Offerings Provided A
Slide 10: Education & Life Sciences
Education & Life Sciences © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 10
Slide 11: Education & Life Sciences Clients We Serve
Education & Life Sciences Revenue & Operating Margin % Clients We Serve 26.3% $180 35% 29.6% 28.7% 24.8% 25.0% $160 30% Colleges and Universities $140 Academic Medical Centers 25% $120 Research Institutions $100 20% In millions $80 Pharmaceutical Companies 15% $60 10% Medical Device Manufacturers $4
Slide 12: Education
Education © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 12
Slide 13: Top Concerns Among Higher Education Administrators
Top Concerns Among Higher Education Administrators Significant Pressure on the Higher Education Industry • Public pressure to reduce the costs of education while increasing quality and student outcomes ICON TBD • The application of technology to the learning environment is changing the way education
Slide 14: Higher Education: Areas of Expertise
Higher Education: Areas of Expertise Strategy & Operations Research Technology • Advancement • Finance • Clinical research operations • Enterprise resource planning • Asset optimization • Human resources • Compliance • On-premise • Auxiliaries • Institutional strategy • Cost reimbursement • Cloud-ba
Slide 15: Life Sciences
Life Sciences © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 15
Slide 16: Top Concerns for Life Sciences' Executives
Top Concerns for Life Sciences’ Executives Challenges to Innovation and Commercialization • Higher R&D, regulatory expenses and pricing pressures are lowering margins • Old salesforce driven commercial models are not driving historic-level returns • Increasing M&A activity is needed to maintain a he
Slide 17: Life Sciences: Areas of Expertise
Life Sciences: Areas of Expertise Strategy Operations Compliance • Channel, reimbursement • Commercial Contracting • Corporate Integrity and access strategy • Global Transparency Agreements • Commercial segmentation, • Government Pricing • Healthcare professional and lifecycle, and brand • Business
Slide 18: Business Advisory
Business Advisory © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 18
Slide 19: Business Advisory Clients We Serve
Business Advisory Revenue & Operating Margin % 28.4% Clients We Serve 23.2% $90 30% Large and Middle Market Corporations 20.8% $80 22.3% 25% $70 - Office of the CFO - C-Suite Executives $60 20% Hospitals & Health Systems $50 In millions 15% Colleges & Universities $40 8.6% Law Firms $30 10% Investme
Slide 20: Legacy Business Advisory
Legacy Business Advisory © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 20
Slide 21: Business Advisory: Industry Drivers
Business Advisory: Industry Drivers Challenging Economic Environment • Concerns regarding a slowing global economy, prospects for a gradual increase in interest rates in the United States and ongoing financial volatility in capital markets have contributed to tighter external financial conditions, d
Slide 22: Business Advisory: Areas of Expertise
Business Advisory: Areas of Expertise Capital Commercial Operational Restructuring Transaction Valuation Advisory Dispute Improvement & Turnaround Advisory Advisory Services • M&A Advisory • Corporate • Revenue • Financial • Business • Business • Special Situation Investigations and Enhancement Advi
Slide 23: Enterprise Performance Management & Analytics (EPM&A)
Enterprise Performance Management & Analytics (EPM&A) © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 23
Slide 24: EPM&A: Industry Drivers
EPM&A: Industry Drivers Transition to the Cloud • Client adoption of the cloud is rapidly transforming the EPM/Business Intelligence (BI) business • The migration of on premise to cloud-based solutions is driving new business models which create opportunities for those with broader scale and industr
Slide 25: EPM&A: Areas of Expertise
EPM&A: Areas of Expertise Enterprise Business Performance Intelligence & Remote Salesforce.com Delivery Management Analytics • Budgeting & Planning • Financial Reporting • Sales Cloud • 24/7 Support • Financial Close & • Data Mart / Data • Service Cloud • Managed Services Reporting Warehouse • Wave
Slide 26: Financial Overview
Financial Overview © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 26
Slide 27: Growth Track Record
Growth Track Record Revenues from Continuing Operations (in millions) $1,000 $900 $800 $720 - $760 $700 $699 $600 $628 $500 $538 $400 $434 $441 $300 $200 $100 $0 2011 2012 2013 2014 2015 2016 Guidance © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 27
Slide 28: Growth Track Record
Growth Track Record Adjusted EBITDA (in millions) and Adjusted EBITDA Margins from Continuing Operations $200 $180 $160 $138 - $148 $140 $139 $120 $100 $111 $80 $98 $60 $69 $72 $40 $20 15.9% 16.4% 18.2% 17.6% 19.9% 19.2% - 19.4% $0 2011 2012 2013 2014 2015 2016 Guidance See accompanying appendix for
Slide 29: Growth Track Record
Growth Track Record Adjusted Diluted Earnings per Share from Continuing Operations $5.00 $4.50 $4.00 $3.50 $3.20 - $3.40 $3.00 $2.99 $2.50 $2.00 $2.45 $2.22 $1.50 $1.00 $1.41 $1.12 $0.50 $0.00 2011 2012 2013 2014 2015 2016 Guidance See accompanying appendix for a reconciliation of Adjusted Diluted E
Slide 30: Free Cash Flow
Free Cash Flow Free Cash Flow Per Share & Free Cash Flow Yield $7.00 40.0% $6.00 $6.45 $5.00 30.0% $5.26 $4.00 $4.37 $4.17 20.0% $3.81 $3.00 $2.00 10.0% 11.3% 11.3% 10.9% $1.00 7.7% 6.7% $0.00 0.0% 2011 2012 2013 2014 2015 Free Cash Flow Per Share Free Cash Flow Yield Free cash flow is defined as ca
Slide 31: Operating Metrics
Operating Metrics Operating Metrics (from continuing operations) 2011 2012 2013 2014 2015 Number of Full-Time Billable Consultants 1,143 1,331 1,534 1,738 1,821 Headcount Leverage(1) 12.3 15.0 15.3 15.6 15.0 Full-Time Billable Consultant Utilization Rate 77.5% 76.4% 77.4% 75.4% 76.9% Average Full-Ti
Slide 32: Appendices
Appendices Reconciliations of Non-GAAP Measures to Comparable GAAP Measures In evaluating the Company’s financial performance, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income
Slide 33: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of Net Income from Continuing Operations to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in millions) 2016 Guidance 2011 2012 2013 2014 2015 Low High Revenues $ 434 $ 441 $ 538 $ 628 $ 699 $ 720 $ 760 Net Income
Slide 34: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of Net Income from Continuing Operations to Adjusted Net Income from Continuing Operations (in millions, except earnings per share) 2016 Guidance 2011 2012 2013 2014 2015 Low High Net Income From Continuing Operations $ 1 $ 17 $ 52 $ 47 $ 62 $ 45 $
Slide 35: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of Cash from Operating Activities to Free Cash Flow (in millions) 2011 2012 2013 2014 2015 Cash from Operating Activities $ 110 $ 102 $ 115 $ 147 $ 164 Less Capital Expenditures (15) (17) (20) (26) (18) Free Cash Flow $ 95 $ 85 $ 95 $ 121 $ 146 Dil
Slide 36: Convertible Bond – Dilution Illustration
Convertible Bond – Dilution Illustration In Q3 of 2014, Huron issued $250mm of convertible bonds with a coupon of 1.25% and a conversion premium of 27.5%, or $79.89. Concurrently, Huron entered into hedging transactions and repurchased $25mm of shares that effectively raises the conversion price and
Slide 37: Huron: A Closer Look
Huron: A Closer Look Huron CONSULTING (GROUP
Slide 38: Fast Facts
Fast Facts Fast Facts as of 12/31/15 © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 38
Slide 39: Huron Recognition
Huron Recognition © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 39
Slide 40: Huron Leadership
Huron Leadership James H. Roth C. Mark Hussey Diane E. Ratekin Chief Executive Officer, EVP, Chief Operating Officer & EVP, General Counsel & President & Director Chief Financial Officer Corporate Secretary © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 40
Slide 41: 550 W. Van Buren Street, Chicago
550 W. Van Buren Street | Chicago, IL 60607 | 312-583-8700 © 2016 Huron Consulting Group. All rights reserved. Proprietary & Confidential. 41