Huron Consulting Group Inc. · NASDAQ:HURN
Huron Consulting — FY2013 Earnings Presentation
25 slides from Huron Consulting's earnings presentation, 2014
Slide 1: Investor Presentation Fourth Quarter & Full Year 2013
Investor Presentation Fourth Quarter & Full Year 2013
Slide 2: Forward-looking statements
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 Operating Segments
Huron Operating Segments Huron Healthcare 50% Huron Legal 25% Huron Business Advisory 4% Huron Education & Life Sciences 21% Segment percentages are based on year-to-date 2013 revenue results. See the Company’s website for additional information. Effective January 1, 2014, the Huron Financial segmen
Slide 4: Huron Healthcare
Huron Healthcare Business Drivers transition from fee-for-service to value-based care post-reform alignment among physicians and providers intense pressure to reduce cost declining reimbursement enhanced quality of care - focus on outcomes and quality measures Clients We Serve hospitals health syste
Slide 5: Huron Legal
Huron Legal Business Drivers strong incentive to reduce corporate legal costs and related litigation and investigation expenses proliferation of electronic documents complex regulatory challenges increased use of technology to support discovery and matter management Clients We Serve global 1,000 com
Slide 6: Huron Education
Huron Education Business Drivers decreased public financial support research funding has flattened rapidly expanding on-line learning platform competing in global arena for brand and students lack of revenue growth due to tuition pricing pressure Clients We Serve colleges and universities research i
Slide 7: Huron Life Sciences
Huron Life Sciences Business Drivers increasing global regulations demanding greater transparency escalating research costs leading to more outsourcing expiring patents, generic competition, and slow pipeline development creating more M&A growing need for compliance and business integration services
Slide 8: Enterprise Performance Management
Enterprise Performance Management Blue Stone, a Huron Consulting Group solution Business Drivers finance departments addressing complex technology and analytic decision-support needs CFOs looking to improve and optimize their budgeting, planning, and consolidation processes analytic functions develo
Slide 9: Huron Business Advisory
Huron Business Advisory Business Drivers distressed industries or underperforming companies debt or equity transactions turnaround situations, M&A activity, bankruptcies, disputes or litigation interim management needs: CEO, CFO, CRO advice to executive management and boards of directors facing comp
Slide 10: Financial Overview
Financial Overview
Slide 11: Growth Track Record
Growth Track Record Revenues from Continuing Operations (in millions) 11% R= CAG 5 YR
Slide 12: Growth Track Record
Growth Track Record Adjusted EBITDA (in millions) and Adjusted EBITDA Margins 13% G R= R CA 5Y See accompanying appendix for a reconciliation of Adjusted EBITDA, which is a non-GAAP measure, to the most comparable GAAP measure.
Slide 13: Growth Track Record
Growth Track Record Adjusted Diluted Earnings Per Share 2 1% R= CAG 5 YR See accompanying appendix for a reconciliation of Adjusted Diluted Earnings Per Share, which is a non-GAAP measure, to the most comparable GAAP measure.
Slide 14: Free Cash Flow
Free Cash Flow Free Cash Flow Per Share & Free Cash Flow Yield Free cash flow is defined as cash from operations minus capital expenditures. Free cash flow yield is defined as free cash flow per share divided by the end of the period stock price. See accompanying appendix for a reconciliation of fre
Slide 15: Operating Metrics
Operating Metrics Operating Metrics (from continuing operations) 2009 2010 2011 2012 2013 Number of Full-Time Billable Consultants 1,071 1,108 1,275 1,472 1,683 Headcount Leverage (1) 9.3 9.9 11.1 14.5 14.3 Full-Time Billable Consultant 72% 73.6% 75.1% 75.4% 75.8% Utilization Rate Average Full-Time
Slide 16: 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 17: 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) 2008 2009 2010 2011 2012 2013 Revenues $430 $526 $516 $606 $626 $721 Net Income From Continuing Operations $(
Slide 18: 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) 2008 2009 2010 2011 2012 2013 Net Income (Loss) From Continuing $(1) $14 $7 $21 $36 $66 Operations Weighted Average Shares 18 21 21 22 22 23 Di
Slide 19: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Reconciliation of Cash from Operating Activities to Free Cash Flow (in millions) 2009 2010 2011 2012 2013 Cash from Operations $114 $50 $109 $106 $115 Less Capital Expenditures (13) (9) (14) (21) (22) Free Cash Flow $101 $41 $95 $85 $93 Diluted Shares 21 21 22 22
Slide 20: Huron: A Closer Look
Huron: A Closer Look
Slide 21: Fast Facts
Fast Facts $720M+ revenue 2,500+ full-time employees 1,500+ billable consultants 900 client engagements serving more than: - 425 health systems, hospitals and medical centers - 400 corporate general counsel - 350 universities and research centers 15+ global offices/document review centers NASDAQ Glo
Slide 22: Huron Recognition
Firm Senior Professionals Outstanding Achievements AlixPartners John Castellano Alan Holtz Advisor and/or interim manager to Eastman Kodak, New York, NY Lisa Donahue David Johnston RadioShack, Synagro, Rotech, TORM, Patriot Coal, unsecured www.Alixpartners.com Randall Eisenberg James Mesterharm cred
Slide 23: Huron Solutions in Detail
Huron Solutions in Detail Business Advisory Healthcare Staffing Capital Advisory Clinical Documentation Improvement Technology Implementation Forensic Investigations Clinical Operations Life Sciences Operational Improvement Human Resources Pharmaceutical & Medical Device Restructuring & Turnaround L
Slide 24: Huron Leadership
Huron Leadership Jim Roth Diane Ratekin Mark Hussey Chief Executive Officer, EVP, General Counsel EVP, Chief Operating Officer, President & Director & Corporate Secretary Chief Financial Officer & Treasurer Gordon Mountford Bob Rowe Laura Yaeger John DiDonato EVP, Huron Healthcare EVP, Huron Legal E
Slide 25: Experience. Redefined.
Experience. Redefined.
Huron Consulting Group — FY2013 Earnings Presentation on 6ix