Huron Consulting Group Inc. · NASDAQ:HURN
Huron Consulting — William Blair Growth Stock Conference 2020
23 slides from Huron Consulting's conference presentation, Jun 10, 2020
Slide 1: Investor Presentation – William Blair Growth Stock Conference
INVESTOR PRESENTATION William Blair Growth Stock Conference June 10, 2020
Slide 2: Forward-looking Statements
Forward-looking Statements Statements in this presentation 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
Slide 3: Trusted Advisor For Transformative Strategic Decisions And Execution
Trusted Advisor For Transformative Strategic Decisions And Execution FORMED IN 2002 With approximately 200 More than 3,800 2019 revenue of $877 million professionals professionals with leading expertise We are a global consultancy that helps our clients drive growth, IN 2019 enhance performance and
Slide 4: Operating Segment Mix
Operating Segment Mix Serve industries facing significant Education 28% disruption Healthcare 43% and/or Business regulatory Advisory 29% change Segment percentages are based on year-to-date March 2020 revenue results. 4 7
Slide 5: Strategic Priorities To Drive Shareholder Value
Strategic Priorities To Drive Shareholder Value ACHIEVE SUSTAINABLE DRIVE MARGIN DEPLOY CAPITAL INVEST IN OUR ORGANIC GROWTH EXPANSION STRATEGICALLY PEOPLE 5 9
Slide 6: Demonstrated Momentum
Execution of our organic growth strategy and disruption taking place in our core markets has positioned Huron for sustainable growth Demonstrated Momentum ------------------------------------------------------------------------------------------------------------------------------------------------
Slide 7: Disruption facing clients creates opportunities for long term growth
After the near-term impact of COVID-19 subsides, significant disruption facing our clients and end markets creates opportunities for long term growth Healthcare Education Strategy Technology Operations Financial pressures on U.S. The changes required for The disruption and volatility The digital tra
Slide 8: Appendix
A APPENDIX
Slide 9: Q1 Supplemental Materials
Q1 SUPPLEMENTAL MATERIALS
Slide 10: Overview of Supplemental Materials
Overview of Supplemental Materials Given the continuous evolution of the global COVID-19 pandemic and the current level of volatility in the economy, we wanted to provide additional detail about how we believe these factors could impact Huron across various scenarios, understanding that the individu
Slide 11: Scenario #1 – Base Case Considerations
Scenario #1 – Base Case Considerations Base Case Assumptions The U.S. economy begins to stabilize in the third and fourth quarters of 2020, and the re-opening of the U.S. economy is slow and uneven due to sporadic resurgences of COVID-19. Anticipated Market Conditions Healthcare: Education: Across I
Slide 12: Scenario #2 – Optimistic Case Considerations
Scenario #2 – Optimistic Case Considerations Optimistic Case Assumptions The U.S. economy begins to stabilize in the second quarter of 2020 as social distancing guidelines are relaxed and new cases of COVID-19 significantly decline across the majority of the United States. Anticipated Market Conditi
Slide 13: Scenario #3 – Pessimistic Case Considerations
Scenario #3 – Pessimistic Case Considerations Pessimistic Case Assumptions The U.S. economy begins to stabilize in 2021 as the re-opening of the U.S. economy is hindered by significant resurgences of COVID-19 throughout 2020. Anticipated Market Conditions Healthcare: Education: Across Industries: •
Slide 14: Financial Track Record
FINANCIAL TRACK RECORD
Slide 15: Revenue trend
Revenue trend Revenues from Continuing Operations (in millions) $1,000 $900 $877 $800 $795 $700 $726 $733 $699 $600 $500 $400 $300 $200 $100 $- 2015 2016 2017 2018 2019 15
Slide 16: Adjusted EBITDA trend
Adjusted EBITDA trend Adjusted EBITDA (in millions) and Adjusted EBITDA Margins from Continuing Operations $160 $140 $139 $120 $130 $100 $105 $105 $80 $91 $60 $40 $20 19.9% 17.9% 14.3% 11.4% 12.0% $- 2015 2016 2017 2018 2019 + See accompanying appendix for a reconciliation of Adjusted EBITDA, which
Slide 17: Adjusted EPS trend
Adjusted EPS trend Adjusted Diluted Earnings per Share from Continuing Operations $3.50 $3.00 $3.21 $2.99 $2.50 $2.74 $2.00 $2.15 $2.08 $1.50 $1.00 $0.50 $- 2015 2016 2017 2018 2019 + See accompanying appendix for a reconciliation of Adjusted Diluted Earnings per Share, which is a non-GAAP measure,
Slide 18: Free Cash Flow Per Share & Free Cash Flow Yield
Free Cash Flow Per Share & Free Cash Flow Yield $7.00 30.00% $6.61 $6.00 25.00% $5.00 $5.38 $4.83 20.00% $4.00 $3.93 15.00% $3.00 $3.49 11.1% 10.00% $2.00 10.6% 8.6% 7.7% 7.0% $1.00 5.00% $- 0.00% 2015 2016 2017 2018 2019 Free cash flow is defined as cash from operations minus capital expenditures.
Slide 19: Reconciliations of Non-GAAP Measures to Comparable GAAP Measures
RECONCILIATIONS OF NON- GAAP MEASURES TO COMPARABLE GAAP MEASURES
Slide 20: Reconciliations Of Non-GAAP Measures To Comparable GAAP Measures
Reconciliations Of Non-GAAP Measures To Comparable GAAP Measures In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income from continuing operations, and adjusted diluted earnings per shar
Slide 21: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures Reconciliation of net income (loss) from continuing operations to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) (in millions) 2015 2016 2017 2018 2019 Revenues $ 699 $ 726 $ 733 $ 795 $ 877 Net income (loss) from continuing oper
Slide 22: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures Reconciliation of net income (loss) from continuing operations to adjusted net income from continuing operations (in millions, except earnings per share) 2015 2016 2017 2018 2019 Net income (loss) from continuing operations $ 62 $ 40 $ (171) $ 14 $ 42 Weighted av
Slide 23: Reconciliations of non-GAAP measures
Reconciliations of non-GAAP measures Reconciliation of cash from operating activities to free cash flow (in millions) 2015 2016 2017 2018 2019 Cash from operating activities $ 168 $ 129 $ 100 $ 102 $ 132 Less: Capital expenditures (19) (14) (25) (15) (23) Free cash flow $ 149 $ 115 $ 75 $ 87 $ 109 W
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