THIRD QUARTER 2022 HIGHLIGHTS

• Revenues increased $61.4 million, or 27.4%, to $285.4 million in Q3 2022 from $224.0 million in Q3 2021.
  
  
  
  
• Revenues within the Digital capability increased 45.5% in Q3 2022 compared to Q3 2021.
  
  
  
  
• Net income increased $4.0 million, or 29.2%, to $17.7 million in Q3 2022 from $13.7 million in Q3 2021.
  
  
  
  
• Adjusted EBITDA⁽⁷⁾, a non-GAAP measure, increased $10.1 million, or 38.1%, to $36.5 million in Q3 2022 from $26.4 million in Q3 2021.
  
  
  
  
• Diluted earnings per share increased $0.22, or 34.4%, to $0.86 in Q3 2022 from $0.64 in Q3 2021.
  
  
  
  
• Adjusted diluted earnings per share⁽⁷⁾, a non-GAAP measure, increased $0.23, or 29.5%, to $1.01 in Q3 2022 from $0.78 in Q3 2021.
  
  
  
  
• Huron repurchased 0.7 million shares of the company's common stock for $45.6 million in Q3 2022.
  
  
  
  

YEAR-TO-DATE 2022 HIGHLIGHTS AND 2022 GUIDANCE

• Revenues increased $161.4 million, or 24.6%, to $818.7 million for the first nine months of 2022 from $657.3 million for the same prior year period.
  
  
  
  
• Revenues within the Digital capability increased 43.0% for the first nine months of 2022 compared to the same prior year period.
  
  
  
  
• Net income increased $26.5 million, or 83.1%, to $58.5 million for the first nine months of 2022 from $31.9 million for the same prior year period. Results for the first nine months of 2022 include an unrealized gain of $19.8 million, net of tax, on the company's investment in a hospital-at-home company recognized in Q1 2022.
  
  
  
  
• Adjusted EBITDA⁽⁷⁾, a non-GAAP measure, increased $23.3 million, or 34.0%, to $91.8 million for the first nine months of 2022 from $68.5 million for the same prior year period.
  
  
  
  
• Diluted earnings per share increased $1.34, or 91.8%, to $2.80 for the first nine months of 2022 from $1.46 for the same prior year period.
  
  
  
  
• Adjusted diluted earnings per share⁽⁷⁾, a non-GAAP measure, increased $0.51, or 28.2%, to $2.32 for the first nine months of 2022 from $1.81 for the same prior year period.
  
  
  
  
• Huron repurchased 1.7 million shares of the company's common stock for $97.9 million in the first nine months of 2022.
  
  
  
  
• Huron updates its previous earnings guidance range for full year 2022, including increasing and narrowing revenue expectations to a range of $1.09 billion to $1.11 billion.

Global professional services firm Huron (NASDAQ: HURN) today announced financial results for the third quarter ended September 30, 2022.

“Our third quarter performance continued to reflect strong growth across all three operating segments. We achieved 27% revenue growth over the third quarter of 2021, primarily reflecting ongoing momentum in our healthcare and education industries, and continued growth in our Digital capability,” said James H. Roth, chief executive officer of Huron. “Market conditions have been favorable across our collective set of offerings and despite increased economic uncertainties, we anticipate strong demand in the coming quarters.”

THIRD QUARTER 2022 RESULTS

Revenues increased $61.4 million, or 27.4%, to $285.4 million for the third quarter of 2022, compared to $224.0 million for the third quarter of 2021. This revenue growth was highlighted by 45.5% growth from the Digital capability across all industries and growth in the Education and Healthcare segments' Consulting and Managed Services capability of 45.9% and 16.6%, respectively, during the third quarter of 2022 compared to the same prior year period.

Net income increased $4.0 million, or 29.2%, to $17.7 million for the third quarter of 2022, compared to $13.7 million for the same quarter last year. Diluted earnings per share increased $0.22, or 34.4%, to $0.86 for the third quarter of 2022, compared to $0.64 for the third quarter of 2021.

Third quarter 2022 earnings before interest, taxes, depreciation and amortization ("EBITDA")⁽⁷⁾ increased $11.1 million, or 45.4%, to $35.5 million, compared to $24.4 million in the same prior year period.

In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands):

Adjusted EBITDA⁽⁷⁾ increased $10.1 million, or 38.1%, to $36.5 million, or 12.8% of revenues, in the third quarter of 2022, compared to $26.4 million, or 11.8% of revenues, in the same quarter last year. Adjusted net income⁽⁷⁾ increased $4.0 million to $20.7 million, or $1.01 per diluted share, for the third quarter of 2022, compared to $16.8 million, or $0.78 per diluted share, for the same quarter in 2021.

The number of revenue-generating professionals⁽¹⁾ increased 22.7% to 4,571 as of September 30, 2022 from 3,724 as of September 30, 2021. The utilization rate⁽⁵⁾ of the company's Consulting capability increased to 72.5% during the third quarter 2022, compared to 71.5% during the same period last year. The utilization rate⁽⁵⁾ for the company's Digital capability decreased to 70.1% during the third quarter 2022, compared to 74.2% during the same period last year.

Additionally, in the third quarter of 2022, Huron repurchased 685,641 shares of the company's common stock for $45.6 million.

YEAR-TO-DATE 2022 RESULTS

Revenues increased $161.4 million, or 24.6%, to $818.7 million for the first nine months of 2022, compared to $657.3 million for the first nine months of 2021. This revenue growth was highlighted by 43.0% growth from the Digital capability across all industries and growth in the Education and Healthcare segments' Consulting and Managed Services capability of 49.8% and 12.1%, respectively, during the first nine months of 2022 compared to the same prior year period.

Net income increased $26.5 million, or 83.1%, to $58.5 million for the first nine months of 2022, compared to $31.9 million for the first nine months of 2021. Diluted earnings per share increased $1.34, or 91.8%, to $2.80 for the third quarter of 2022, compared to $1.46 for the same period last year. Results for the first nine months of 2022 include an unrealized gain of $19.8 million, net of tax, related to the increase in fair value of the company's investment in a hospital-at-home company.

EBITDA⁽⁷⁾ for the first nine months of 2022 increased $49.7 million, or 77.1%, to $114.2 million, compared to $64.5 million in the same prior year period.

In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands):

Adjusted EBITDA⁽⁷⁾ increased $23.3 million, or 34.0%, to $91.8 million, or 11.2% of revenues, for the first nine months of 2022, compared to $68.5 million, or 10.4% of revenues, for the same period last year. Adjusted net income⁽⁷⁾ increased $8.9 million, or 22.4%, to $48.5 million, or $2.32 per diluted share, for the first nine months of 2022, compared to $39.7 million, or $1.81 per diluted share, for the first nine months of 2021.

The number of revenue-generating professionals⁽¹⁾ increased 22.7% to 4,571 as of September 30, 2022 from 3,724 as of September 30, 2021. The utilization rate⁽⁵⁾ of the company's Consulting capability increased to 73.0% during the first nine months of 2022, compared to 70.8% during the same period last year. The utilization rate⁽⁵⁾ for the company's Digital capability decreased to 71.6% during the first nine months 2022, compared to 72.9% during the same period last year.

Additionally, in the first nine months of 2022, Huron repurchased 1,706,587 shares of the company's common stock for $97.9 million, representing 7.8% of the common stock outstanding as of December 31, 2021.

OPERATING INDUSTRIES

Huron’s results reflect a portfolio of service offerings focused on helping clients address complex business challenges.

The company’s year-to-date 2022 revenues by operating segment as a percentage of total company revenues are as follows: Healthcare (47%); Education (32%); and Commercial (21%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended September 30, 2022.

OUTLOOK FOR 2022

Based on currently available information, the company increased and narrowed guidance for full year 2022 revenues before reimbursable expenses to a range of $1.09 billion to $1.11 billion. The company anticipates adjusted EBITDA as a percentage of revenues in a range of 11.5% to 12.0% and non-GAAP adjusted diluted earnings per share in a range of $3.25 to $3.35.

Management will provide a more detailed discussion of its outlook during the company's earnings conference call webcast.

THIRD QUARTER 2022 WEBCAST

The company will host a webcast to discuss its financial results today, November 1, 2022, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron's website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.

USE OF NON-GAAP FINANCIAL MEASURES⁽⁷⁾

In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.

Management has provided its outlook regarding adjusted EBITDA and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.

ABOUT HURON

Huron is a global professional services firm that collaborates with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses and their people to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. Learn more at www.huronconsultinggroup.com.

Statements in this press release that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “continues,” “goals,” “guidance,” or “outlook” or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: the impact of the COVID-19 pandemic on the economy, our clients and client demand for our services, and our ability to sell and provide services, including the measures taken by governmental authorities and businesses in response to the pandemic, which may cause or contribute to other risks and uncertainties that we face; failure to achieve expected utilization rates, billing rates and the number of revenue-generating professionals; inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn in market conditions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under “Item 1A. Risk Factors” in Huron's Annual Report on Form 10-K for the year ended December 31, 2021 that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

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