Huron Consulting Group Inc. · NASDAQ:HURN
Huron Consulting — Investor Presentation (2014)
25 slides from Huron Consulting's investor presentation, 2014
Slide 1: Investor Presentation First Quarter 2014
Investor Presentation First Quarter 2014
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 51% Huron Legal 26% Huron Business Advisory 7% Huron Education & Life Sciences 16% Segment percentages are based on year-to-date 2014 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 significant IT investments Clients We S
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: Business Advisory – Financial Advisory
Huron Business Advisory – Financial 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
Slide 9: Business Advisory – Enterprise Performance Management
Huron Business Advisory – 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
Slide 10: Financial Overview
Financial Overview
Slide 11: Growth Track Record: Revenues
Growth Track Record Revenues from Continuing Operations (in millions) Growth Track Record -‐ Revenues from Con@nuing Opera@ons (in millions) $800 $700 11% $721 $600 CAGR = 5 Yr $606 $626 $500 $526 $516 $400 $430 $300 $200 $211 $100 $164 $0 2008 2009 2010 2011 2012 2013 1Q13 1Q14
Slide 12: Growth Track Record: Adjusted EBITDA
Growth Track Record Adjusted EBITDA (in millions) and Adjusted EBITDA Margins 15.6% Adjusted EBITDA (in millions) and Adjusted EBITDA Margins $140 $138 $120 = 13% CAGR $116 5 Yr $111 $100 $100 $80 $87 $74 $60 $40 $49 $20 $26 17.3% 18.9% 18.9% 16.9% 18.3% 18.5% 19.2% 15.6% 23.3% $0 8.5% 2008 2009 201
Slide 13: Growth Track Record: Adjusted Diluted EPS
Growth Track Record Adjusted Diluted Earnings Per Share Adjusted Diluted Earnings Per Share $3.50 $3.00 $2.96 21% $2.50 AG R = C 5 Yr $2.34 $2.00 $2.11 $1.93 $1.50 $1.45 $1.00 $1.16 $1.10 $0.50 $0.51 $0.00 2008 2009 2010 2011 2012 2013 1Q13 1Q14 See accompanying appendix for a reconcilia9on of Adjus
Slide 14: Free Cash Flow
Free Cash Flow Free Cash Flow Per Share & Free Cash Flow Yield Free Cash Flow Per Share & Free Cash Flow Yield $5.00 40.0% $4.94 $4.00 $4.37 $4.17 30.0% $3.81 $3.00 20.0% 21.4% $2.00 $2.00 10.0% $1.00 11.3% 11.3% 7.6% 6.7% $0.00 0.0% 2009 2010 2011 2012 2013 Free Cash Flow Per Share Free Cash Flow Y
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: Adjusted EBITDA
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 1Q13 1Q14 Revenues $430 $526 $516 $606 $626 $721 $164 $211 Net Income From Cont
Slide 18: Reconciliations of Non-GAAP Measures: Adjusted Net Income
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 1Q13 1Q14 Net Income (Loss) From Continuing Operations $(1) $14 $7 $21 $36 $66 $11 $34 Weighted Average Shares 18
Slide 19: Reconciliations of Non-GAAP Measures: Free Cash Flow
Reconciliations of Non-GAAP Measures Reconciliation of Cash from Operating Activities to Free Cash Flow (in millions) 2008 2009 2010 2011 2012 2013 Cash from Operations $101 $114 $50 $109 $102 $115 Less Capital Expenditures (20) (13) (9) (15) (18) (20) Free Cash Flow $81 $101 $41 $94 $84 $95 Diluted
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: Solutions in Detail
Huron Solutions in Detail Business Advisory Research Enterprise Solutions Law Department Management Capital Advisory Technology Solutions Law Firm Strategy & Management Forensic Investigations Records & Information Healthcare Management Operational Improvement Clinical Documentation Staffing Restruc
Slide 24: 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.
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