EXHIBIT
99.1
FOR
IMMEDIATE RELEASE
February
23, 2006
Huron
Consulting Group Reports Fourth Quarter
and
2005 Full Year Financial Results
| · |
Revenues
of $55.6 million for Q4 2005 increased 36.2% from $40.8 million
in Q4
2004.
|
| · |
Full
Year 2005 revenues increased $47.6 million, or 29.9%, to $207.2
million
from $159.6 million in 2004.
|
| · |
Earnings
for the full year 2005 were $1.05 per diluted share, compared
to $0.72 per
diluted share during the full year 2004.
|
| · |
Full
year 2005 utilization rate increased to 76.5% from 72.2% in
2004.
|
| · |
Billable
headcount increased 31% to 632 at the end of 2005 compared to
483 at the
end of 2004.
|
CHICAGO
-
February 23, 2006 - Huron Consulting Group Inc. (NASDAQ: HURN), a leading
provider of financial and operational consulting services, today announced
financial results for the fourth quarter and year ended December 31, 2005.
Fourth
Quarter 2005 Results
Revenues
of $55.6 million for the fourth quarter of 2005 increased 36.2% from
$40.8 million for the fourth quarter of 2004. Excluding $3.2 million
of revenues generated by Speltz & Weis LLC (“S&W”), an entity acquired
in May 2005, organic revenue growth from the prior year’s quarter was 28.4%. The
Company’s fourth quarter 2005 operating income was $8.0 million compared to
$4.6 million in the fourth quarter of 2004. Net income attributable to
common
stockholders was $4.5 million, or $0.27 per diluted share, for the fourth
quarter of 2005 compared to $2.4 million, or $0.15 per diluted share,
for the comparable quarter last year.
“Market
demand for Huron’s services is very strong. Our core growth practices continue
to attract, serve and build client relationships,” said Gary E. Holdren,
chairman and chief executive officer, Huron Consulting Group. “We continue to
add and retain talented, performance-oriented consultants at all levels
to serve
Huron’s growing roster of clients.”
Fourth
quarter 2005 earnings before interest, taxes, depreciation and amortization
(“EBITDA”) (5)
were
$9.7 million, or 17.4% of revenues, compared to $5.2 million, or 12.9%
of revenues, in the comparable quarter last year. Adjusted
EBITDA (5),
which
excludes costs associated with a secondary offering of the Company’s common
stock, stock-based compensation expense, as well as restructuring and severance
charges recorded in 2004, totaled $11.7 million in the fourth quarter of
2005,
or 21.0% of revenues, compared to $6.2 million, or 15.2% of revenues, in
the comparable quarter last year.
Billable
consultant headcount totaled 632 at December 31, 2005 compared to 483 at
December 31, 2004, while the utilization rate was 77.4% during the fourth
quarter of 2005 compared with 77.8% during the same period last year. Average
billing rate per hour increased to $249 for the fourth quarter of 2005
from $243
for the fourth quarter of 2004.
Fourth
Quarter 2005 Segment Performance
Both
of
the Company’s segments - Financial Consulting and Operational Consulting -
continued to show strong improvements in demand and solid revenue growth.
Revenues
for the Financial Consulting segment were $30.5 million for the fourth
quarter
of 2005 increasing 32.3% from $23.0 million in the fourth quarter of 2004.
Segment operating income increased 23.4% to $10.8 million from $8.8 million
in
the same quarter a year ago. Organic revenue growth from the prior year’s
quarter was 18.5%, excluding revenues generated by S&W. As of the end of the
quarter, the Financial Consulting segment had 306 consultants, up 13.8%
from a
year ago. Utilization for the quarter was 81.4% compared to 77.6% a year
ago.
Average billing rate per hour for the segment increased to $270 from $265
the
same period a year ago.
Revenues
for the Operational Consulting segment were $25.2 million for the fourth
quarter
of 2005, increasing 41.3% from $17.8 million in the fourth quarter of 2004.
Segment operating income increased 47.4% to $9.2 million from $6.2 million
during the same period a year ago. As of the end of the quarter, the Operational
Consulting segment had 326 consultants, up 52.3 % from a year ago. Utilization
for the quarter was 73.8% compared to 78.0% in the fourth quarter of 2004,
as a
large number of new consultants were integrated into the segment during
the last
half of the year. Average billing rate per hour for the segment increased
to
$226 from $220 in the prior year.
Full
Year 2005 Results
Revenues
increased $47.6 million, or 29.9%, to $207.2 million for the year ended
December 31, 2005, from $159.6 million for the year ended December 31,
2004. Excluding $9.8 million of revenues generated by S&W, organic
revenue growth from the prior year was 23.7%. Net income attributable to
common
stockholders was $17.8 million, or $1.05 per diluted share, for the full
year
2005, compared to net income of $9.9 million, or $0.72 per diluted
share, for the full year 2004.
“Our
solid 30 percent increase in year over year revenue growth was fueled by
strong
demand in the marketplace, and the dedication and hard work of our people,” said
Holdren.
For
the
full year 2005, EBITDA (5)
was
$38.2 million, or 18.4% of revenues, compared to $22.0 million, or 13.8% of
revenues, for the full year 2004. Adjusted EBITDA (5),
which
excludes secondary costs, stock-based compensation expense, as well as
restructuring and severance charges recorded in 2004, for the full year
2005
totaled $45.6 million, or 22.0% of revenues, compared to $28.7 million, or
18.0% of revenues, in the prior year.
Huron’s
utilization rate increased to 76.5% during the full year 2005 from 72.2%
during
the same period last year. Average billing rate per hour increased to $249
in
2005 from $239 in 2004.
Full
Year 2005 Segment Performance
Revenues
for the Financial Consulting segment were $118.2 million for the year ended
December 31, 2005, representing a 27.9% increase from $92.4 million for
the year
ended December 31, 2004. Segment operating income increased 35.8% to $46.7
million from $34.4 million a year ago. Organic revenue growth from the
prior
year was 17.3%, excluding revenues generated by S&W. Utilization for the
year increased to 79.9% from 71.6% a year ago and average billing rate
per hour
increased to $275 from $257 a year ago.
Revenues
for the Operational Consulting segment were $89.0 million for the year
ended
December 31, 2005, representing a 32.5% increase from $67.2 million for
the year
ended December 31, 2004. Segment operating income increased 37.7% to $31.7
million from $23.0 million a year ago. Utilization for the period remained
steady at 73.1%, compared to 73.0% a year ago, and average billing rate
per hour
increased to $222 from $218 a year ago.
Fourth
Quarter and Full Year 2005 Webcast
The
Company will host a webcast to discuss its financial results today at 11:00
a.m.
Eastern Time (10:00 a.m. Central Time). The webcast may be accessed at
www.huronconsultinggroup.com
and a
rebroadcast will be available no later than the week of March 6,
2006.
Secondary
Offering
On
February 8, 2006, Huron completed its secondary offering of 6,300,000 shares
of
common stock by HCG Holdings LLC at the public offering price of $27.00
per
share.
Outlook
for 2006
Based
on
currently available information, the Company expects
Q1 2006 ranges of $59 million to $61 million in revenues before reimbursable
expenses, $8 million to $10 million in operating income, and $0.29 to $0.32
in
diluted earnings per share. The Company anticipates full year 2006 ranges
of
$247 million to $252 million in revenues, $38 million to $42 million in
operating income, and $1.27 to $1.32 in diluted earnings per share. Stock-based
compensation expense of approximately $2 million and $10 million are
included in the Q1 2006 and full year 2006 estimates, respectively. The
operating income and diluted earnings per share guidance reflect the effects
of
the adoption of SFAS No. 123R and exclude costs associated with the recently
completed secondary offering. The secondary offering costs are estimated
to be
approximately $525,000 and would have an approximate $0.03 per share impact
on
the Q1 2006 and the full year 2006 estimates noted above. Weighted average
diluted share counts for 2006 are estimated to be 17.1 million and 17.5
million
for Q1 and full year 2006, respectively.
“We
are
excited by the opportunities for growth in the new year. Huron is well
positioned for 2006 and beyond,” added Holdren.
About
Huron Consulting Group
Huron
Consulting Group helps clients effectively address complex challenges that
arise
from litigation, disputes, investigations, regulation, financial distress,
and
other sources of significant conflict or change. We also help clients improve
the overall efficiency and effectiveness of their operations, reduce costs,
manage regulatory compliance, and maximize procurement efficiency. Huron
provides services to a wide variety of both financially sound and distressed
organizations, including Fortune 500 companies, medium-sized businesses,
leading
academic institutions, healthcare organizations, and the law firms that
represent these various organizations. Learn more at www.huronconsultinggroup.com.
Statements
in this press release, which are not historical in nature and concern Huron
Consulting Group’s current expectations about the company’s reported results for
2005 and future results in 2006 are "forward-looking" statements as defined
in
Section 21 of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are identified
by
words such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,”
“estimates,” or “continue.” These forward-looking statements reflect our current
expectation about our future results, performance or achievements, including
without limitation, that our business continues to grow at the current
expectations with
respect to, among other factors, utilization and billing rates and number
of
consultants; that we are able to expand our service offerings through our
existing consultants and new hires; and that existing market conditions
do not
change from current expectations. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any future
results,
performance or achievements expressed or implied by these forward-looking
statements. Therefore you should not place undue reliance on these
forward-looking statements. Please see “Risk Factors” in
our Form 10-K
and
in other documents we file with the Securities and Exchange Commission
for a
complete description of the material risks we face.
Media
Contact:
Jennifer
Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com
Investor
Contact:
Gary
L.
Burge, Chief Financial Officer
312-583-8722
garyburge@huronconsultinggroup.com
###