Huron Consulting Group Inc 8-K, filed Feb 25, 2025

Huron Consulting Group Inc. (HURN)

8-K 2025-02-25 For: 2025-02-25

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Added on April 07, 2026

About this 8-K

Huron Consulting Group Inc filed this 8-K on February 25, 2025.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	000-50976	01-0666114
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification Number)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HURN	Nasdaq Global Select Market


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company			☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


Exhibit Number						Exhibit Description

99.1						Press release, dated February 25, 2025
101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


		Huron Consulting Group Inc.
		(Registrant)

Date:	February 25, 2025	/s/ JOHN D. KELLY
		John D. Kelly
		Executive Vice President, Chief Financial Officer, and Treasurer


NEWS						MEDIA CONTACT
						Allie Bovis
FOR IMMEDIATE RELEASE						abovis@hcg.com

						INVESTOR CONTACT
						John D. Kelly
						investor@hcg.com


	Three Months Ended December 31,
	2024		2023
Amortization of intangible assets	$	1,600	$	2,017
Restructuring charges	$	2,383	$	2,165

Other losses (gains), net	$	326	$	(242)

Transaction-related expenses	$	545	$	55
Unrealized loss on preferred stock investment	$	—	$	26,262
Gain on sale of business	$	(3,597)	$	—
Tax effect of adjustments	$	(57)	$	(8,018)
Foreign currency transaction losses (gains), net	$	(1,790)	$	440



	Twelve Months Ended December 31,
	2024		2023
Amortization of intangible assets	$	6,517	$	8,219
Restructuring charges	$	9,913	$	11,550
2024 litigation settlement gain(11)	$	(11,701)	$	—
Other losses (gains), net	$	804	$	(444)

Transaction-related expenses	$	2,861	$	357
Unrealized loss on preferred stock investment	$	—	$	26,262
Gain on sale of business	$	(3,597)	$	—
Tax effect of adjustments	$	(977)	$	(12,175)
Foreign currency transaction losses (gains), net	$	(2,138)	$	476


	December 31, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	21,911	$	12,149
Receivables from clients, net	197,771		162,566
Unbilled services, net	160,017		190,869
Income tax receivable	1,355		6,385
Prepaid expenses and other current assets	28,063		28,491
Total current assets	409,117		400,460
Property and equipment, net	21,678		23,728
Deferred income taxes, net	2,546		2,288
Long-term investments	69,712		75,414
Operating lease right-of-use assets	19,176		24,131
Other non-current assets	116,569		92,336
Intangible assets, net	26,076		18,074
Goodwill	678,743		625,711
Total assets	$	1,343,617	$	1,262,142
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	11,539	$	10,074
Accrued expenses and other current liabilities	26,768		33,087
Accrued payroll and related benefits	247,579		225,921
Current maturities of long-term debt	13,750		—
Current maturities of operating lease liabilities	12,315		11,032
Deferred revenues	26,869		22,461
Total current liabilities	338,820		302,575
Non-current liabilities:
Deferred compensation and other liabilities	42,481		35,665

Long-term debt, net of current portion	342,857		324,000
Operating lease liabilities, net of current portion	29,686		38,850
Deferred income taxes, net	28,446		28,160
Total non-current liabilities	443,470		426,675
Commitments and contingencies
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 20,780,928 and 21,316,441 shares issued, respectively	208		212
Treasury stock, at cost, 3,065,633 and 2,852,296 shares, respectively	(160,093)		(142,136)
Additional paid-in capital	177,673		236,962
Retained earnings	531,653		415,027
Accumulated other comprehensive income	11,886		22,827
Total stockholders’ equity	561,327		532,892
Total liabilities and stockholders’ equity	$	1,343,617	$	1,262,142


	Three Months Ended December 31,						Percent Increase (Decrease)	Twelve Months Ended December 31,						Percent Increase (Decrease)
Segment and Consolidated Operating Results (in thousands):	2024			2023				2024			2023
Healthcare:
Revenues before reimbursable expenses	$	202,287		$	171,995		17.6%	$	756,263		$	673,989		12.2%
Operating income	$	61,337		$	44,606		37.5%	$	208,928		$	172,900		20.8%
Segment operating margin	30.3		%	25.9		%		27.6		%	25.7		%
Education:
Revenues before reimbursable expenses	$	118,837		$	103,779		14.5%	$	474,221		$	429,663		10.4%
Operating income	$	26,615		$	21,986		21.1%	$	108,521		$	99,098		9.5%
Segment operating margin	22.4		%	21.2		%		22.9		%	23.1		%
Commercial:
Revenues before reimbursable expenses	$	67,297		$	63,454		6.1%	$	255,601		$	258,408		(1.1)%
Operating income	$	12,000		$	14,231		(15.7)%	$	51,198		$	54,202		(5.5)%
Segment operating margin	17.8		%	22.4		%		20.0		%	21.0		%
Total Huron:
Revenues before reimbursable expenses	$	388,421		$	339,228		14.5%	$	1,486,085		$	1,362,060		9.1%
Reimbursable expenses	10,893			10,777			1.1%	35,720			36,695			(2.7)%
Total revenues	$	399,314		$	350,005		14.1%	$	1,521,805		$	1,398,755		8.8%

Items not allocated at the segment level:
Unallocated corporate expenses	47,794			45,441			5.2%	191,180			175,206			9.1%
Other gains, net	56			(242)			(123.1)%	(14,466)			(444)			N/M
Restructuring charges	1,389			1,323			5.0%	7,590			8,204			(7.5)%
Depreciation and amortization	3,663			4,445			(17.6)%	15,524			17,886			(13.2)%

Operating income	47,050			29,856			57.6%	168,819			125,348			34.7%
Other expense, net	(270)			(28,088)			(99.0)%	(14,803)			(41,453)			(64.3)%
Income before taxes	$	46,780		$	1,768		N/M	$	154,016		$	83,895		83.6%
Other Operating Data:
Number of revenue-generating professionals by segment (at period end)(1)(2):
Healthcare	1,218			1,126			8.2%	1,218			1,126			8.2%
Education	1,141			1,080			5.6%	1,141			1,080			5.6%
Commercial(3)	2,335			2,263			3.2%	2,335			2,263			3.2%
Total (excluding Managed Services)	4,694			4,469			5.0%	4,694			4,469			5.0%
Managed Services(4)	1,530			1,050			45.7%	1,530			1,050			45.7%
Total	6,224			5,519			12.8%	6,224			5,519			12.8%
Revenues before reimbursable expenses by capability:
Consulting and Managed Services(5)(6)	$	229,444		$	192,883		19.0%	$	863,859		$	782,020		10.5%
Digital	158,977			146,345			8.6%	622,226			580,040			7.3%
Total	$	388,421		$	339,228		14.5%	$	1,486,085		$	1,362,060		9.1%
Number of revenue-generating professionals by capability (at period end)(1)(7):
Consulting(5)(8)	1,729			1,598			8.2%	1,729			1,598			8.2%
Managed Services(5)(8)	1,530			1,050			45.7%	1,530			1,050			45.7%
Digital	2,965			2,871			3.3%	2,965			2,871			3.3%
Total	6,224			5,519			12.8%	6,224			5,519			12.8%
Utilization rate by capability(9):
Consulting	77.2		%	76.8		%		73.6		%	76.6		%
Digital	77.7		%	80.5		%		76.0		%	75.3		%


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
Revenues:
Revenues before reimbursable expenses	$	388,421	$	339,228	$	1,486,085	$	1,362,060
Reimbursable expenses	10,893		10,777		35,720		36,695
Total revenues	399,314		350,005		1,521,805		1,398,755
Operating expenses:
Direct costs (exclusive of depreciation and amortization included below)	260,320		234,342		1,010,077		942,697
Reimbursable expenses	10,569		10,524		35,715		36,766
Selling, general and administrative expenses	72,170		67,075		286,655		257,932
Other losses (gains), net	326		(242)		(14,196)		(444)
Restructuring charges	2,383		2,165		9,913		11,550
Depreciation and amortization	6,496		6,285		24,822		24,906
Total operating expenses	352,264		320,149		1,352,986		1,273,407
Operating income	47,050		29,856		168,819		125,348
Other income (expense), net:
Interest expense, net of interest income	(5,453)		(4,427)		(25,347)		(19,573)
Other income (expense), net	5,183		(23,661)		10,544		(21,880)
Total other expense, net	(270)		(28,088)		(14,803)		(41,453)
Income before taxes	46,780		1,768		154,016		83,895
Income tax expense (benefit)	12,791		(1,064)		37,390		21,416
Net income	$	33,989	$	2,832	$	116,626	$	62,479
Earnings per share:
Net income per basic share	$	1.92	$	0.15	$	6.52	$	3.32
Net income per diluted share	$	1.84	$	0.15	$	6.27	$	3.19
Weighted average shares used in calculating earnings per share:
Basic	17,743		18,510		17,894		18,832
Diluted	18,522		19,389		18,613		19,601
Comprehensive income (loss):
Net income	$	33,989	$	2,832	$	116,626	$	62,479
Foreign currency translation adjustments, net of tax	(3,288)		795		(3,391)		512
Unrealized gain (loss) on investment, net of tax	4,031		4,735		(4,177)		7,811
Unrealized gain (loss) on cash flow hedging instruments, net of tax	1,397		(3,381)		(3,373)		(3,615)
Other comprehensive income (loss)	2,140		2,149		(10,941)		4,708
Comprehensive income	$	36,129	$	4,981	$	105,685	$	67,187


	Twelve Months Ended December 31,
	2024		2023
Cash flows from operating activities:
Net income	$	116,626	$	62,479
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	25,300		24,938
Non-cash lease expense	6,065		6,321
Lease-related impairment charges	3,513		6,248


Share-based compensation	45,074		45,697

Amortization of debt discount and issuance costs	1,078		769

Allowances for doubtful accounts	3,073		421
Deferred income taxes	2,613		(6,182)
Gain on sale of property and equipment	(101)		(64)
Gain on sale of business, excluding transaction costs	(4,309)		—
Change in fair value of contingent consideration liabilities	(533)		(490)
Change in fair value of preferred stock investment	—		26,262

Changes in operating assets and liabilities, net of acquisitions and divestiture:
(Increase) decrease in receivables from clients, net	(30,496)		(15,046)
(Increase) decrease in unbilled services, net	31,123		(49,051)
(Increase) decrease in current income tax receivable / payable, net	5,412		(5,139)
(Increase) decrease in other assets	(8,153)		(6,535)
Increase (decrease) in accounts payable and other liabilities	(12,228)		(6,948)
Increase (decrease) in accrued payroll and related benefits	16,370		51,022
Increase (decrease) in deferred revenues	892		560
Net cash provided by operating activities	201,319		135,262
Cash flows from investing activities:
Purchases of property and equipment	(8,651)		(9,444)
Investments in life insurance policies	(2,594)		(3,074)
Distributions from life insurance policies	—		2,956
Purchases of businesses, net of cash acquired	(49,503)		(1,613)

Capitalization of internally developed software costs	(23,932)		(25,742)
Proceeds from note receivable	154		154
Proceeds from sale of property and equipment	102		111