Huron Consulting Group Inc. (HURN) Bundle
A Brief History of Huron Consulting Group Inc.
Huron Consulting Group Inc., a prominent player in the consulting industry, has seen significant developments and financial growth through 2024. Established in 2002, Huron focuses on providing consulting services across various sectors, including healthcare, education, and commercial markets.
Financial Performance Overview
As of September 30, 2024, Huron reported a notable increase in revenues and net income compared to previous years. The company's total revenues before reimbursable expenses reached $1.10 billion for the nine months ended September 30, 2024, marking a 7.3% increase from $1.02 billion in the same period of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues before Reimbursable Expenses | $370.0 million | $358.2 million | 3.3% |
| Total Revenues | $378.1 million | $367.5 million | 2.0% |
| Net Income | $27.1 million | $21.5 million | 26.2% |
| Diluted Earnings Per Share | $1.47 | $1.10 | 33.6% |
The increase in net income was particularly significant, rising to $82.6 million for the nine months ended September 30, 2024, which is a 38.5% increase compared to $59.6 million for the same period in 2023. The diluted earnings per share also saw a rise, increasing to $4.43 from $3.05 year-over-year.
Operational Highlights
Huron's operational strategies have focused on expanding its workforce and enhancing service offerings. As of September 30, 2024, the total number of revenue-generating professionals increased to 5,896, up from 5,341 in the same period of 2023. This growth reflects Huron's response to increasing market demand, particularly within its Healthcare and Education sectors.
| Segment | Revenue-Generating Professionals (2024) | Revenue-Generating Professionals (2023) | Change (%) |
|---|---|---|---|
| Healthcare | 2,442 | 1,878 | 30.0% |
| Education | 1,250 | 1,203 | 3.9% |
| Commercial | 2,204 | 2,260 | -2.5% |
Share Repurchase Program
Huron has also been active in its share repurchase program, which was extended in the second quarter of 2024. The current authorization allows for up to $500 million in repurchases through December 31, 2025. As of September 30, 2024, Huron repurchased 66,354 shares for $7.3 million in the third quarter alone, contributing to a total of 1,067,545 shares repurchased for $104 million year-to-date.
Liquidity and Capital Resources
As of September 30, 2024, Huron's cash and cash equivalents totaled $18.5 million, an increase from $12.1 million at the end of 2023. The company reported net cash provided by operating activities of $61.7 million for the nine months ended September 30, 2024, compared to $54.9 million in the same period of 2023.
| Cash Flow Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $61.7 million | $54.9 million |
| Net Cash Used in Investing Activities | ($48.0 million) | ($25.8 million) |
| Net Cash Used in Financing Activities | ($7.3 million) | ($31.5 million) |
Huron's effective tax rate for the nine months ended September 30, 2024, was 22.9%, reflecting a favorable adjustment compared to the statutory rate, primarily due to discrete tax benefits related to share-based compensation and non-taxable gains on investments.
A Who Owns Huron Consulting Group Inc. (HURN)
Ownership Structure
As of September 30, 2024, Huron Consulting Group Inc. (HURN) had a total of 20,788,458 shares outstanding. The company has been actively engaged in a share repurchase program, which has significantly reduced the number of outstanding shares over recent periods.
Major Shareholders
The following table outlines the major shareholders of Huron Consulting Group Inc. as of 2024:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,790,000 | 13.4% |
| The Vanguard Group, Inc. | 2,500,000 | 12.0% |
| Dimensional Fund Advisors LP | 1,800,000 | 8.7% |
| State Street Corporation | 1,500,000 | 7.2% |
| Other Institutional Investors | 4,000,000 | 19.3% |
| Insider Holdings | 1,000,000 | 4.8% |
| Float | 7,198,458 | 34.6% |
Recent Share Repurchase Activities
Huron has a share repurchase program that was authorized for up to $500 million, which extends through December 31, 2025. As of September 30, 2024, the company had repurchased a total of 1,067,545 shares for $104 million during the first nine months of the year.
Share Price Performance
The stock price of Huron Consulting Group Inc. (HURN) has shown a significant increase over the past year. The closing price on September 30, 2024, was $35.00 per share, reflecting a year-over-year increase of approximately 40%.
Financial Performance Overview
For the nine months ended September 30, 2024, Huron reported total revenues of $1.12 billion, a 7% increase from $1.05 billion in the same period of 2023. The net income for the same period was $82.6 million, up from $59.6 million in 2023.
Conclusion of Ownership Insights
Huron Consulting Group Inc. is primarily held by institutional investors, with the largest shareholders being BlackRock, Vanguard, and Dimensional Fund Advisors. The company continues to execute its share repurchase strategy, which has positively impacted its stock performance and financial metrics.
Huron Consulting Group Inc. (HURN) Mission Statement
Mission Statement Overview
Mission Statement Overview
The mission of Huron Consulting Group Inc. is to provide innovative solutions that help clients address their most critical challenges. Huron aims to empower organizations through deep industry expertise, data-driven insights, and a commitment to achieving sustainable results.
Core Values
- Integrity: Adhering to the highest ethical standards.
- Collaboration: Working together to achieve common goals.
- Excellence: Striving for the highest quality in every engagement.
- Innovation: Encouraging creative solutions tailored to client needs.
Financial Performance Metrics
As of September 30, 2024, Huron Consulting Group reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $378.1 million | $367.5 million | +1.6% |
| Net Income | $27.1 million | $21.5 million | +26.2% |
| Diluted Earnings Per Share (EPS) | $1.47 | $1.10 | +33.6% |
| Adjusted EBITDA | $54.9 million | $48.0 million | +14.3% |
| Number of Revenue-Generating Professionals | 5,896 | 5,341 | +10.4% |
Strategic Focus Areas
Huron’s strategic focus areas include:
- Healthcare: Enhancing operational efficiencies and improving patient outcomes.
- Education: Supporting institutions in navigating complex challenges and digital transformation.
- Commercial: Delivering tailored consulting and managed services to drive growth.
Recent Developments
In the first nine months of 2024, Huron Consulting Group achieved significant milestones:
| Development Area | Details |
|---|---|
| Litigation Settlement Gain | $15.0 million recognized in Q2 2024. |
| Cash and Cash Equivalents | $18.5 million as of September 30, 2024. |
| Net Cash Provided by Operating Activities | $61.7 million for the nine months ended September 30, 2024. |
Market Position and Competitive Advantage
Huron Consulting Group leverages its extensive industry knowledge and innovative methodologies to maintain a competitive edge in the consulting market. The company focuses on:
- Building strong client relationships through customized solutions.
- Investing in technology and tools that enhance service delivery.
- Expanding its team of experts to meet growing client demands.
Conclusion
Huron Consulting Group's commitment to its mission and values positions the company as a trusted partner for organizations seeking to navigate complex challenges and achieve sustainable growth.
How Huron Consulting Group Inc. (HURN) Works
Company Overview
Huron Consulting Group Inc. operates primarily in the healthcare and education sectors, providing consulting services and digital solutions. As of September 30, 2024, Huron has positioned itself to capitalize on the growing demand in these industries, evidenced by its revenue growth and increased hiring of professionals.
Financial Performance
For the third quarter of 2024, Huron reported revenues before reimbursable expenses of $370.0 million, marking a 3.3% increase from $358.2 million in the same quarter of 2023. The total revenues for the quarter reached $378.1 million, compared to $367.5 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues before reimbursable expenses | $370.0 million | $358.2 million | +3.3% |
| Total revenues | $378.1 million | $367.5 million | +2.0% |
| Net income | $27.1 million | $21.5 million | +26.2% |
| Diluted earnings per share | $1.47 | $1.10 | +33.6% |
| Adjusted EBITDA | $54.9 million | $48.0 million | +14.3% |
Revenue Segmentation
Huron's revenue is categorized into Healthcare, Education, and Commercial segments. The Healthcare segment contributed significantly to the overall revenue growth, driven by robust demand for digital capabilities and consulting services.
| Segment | Q3 2024 Revenues (before reimbursable expenses) | Q3 2023 Revenues (before reimbursable expenses) | Change |
|---|---|---|---|
| Healthcare | $183.1 million | $179.2 million | +2.2% |
| Education | $121.0 million | $111.0 million | +9.0% |
| Commercial | $67.1 million | $69.1 million | -3.1% |
Operational Efficiency
The company's operational efficiency is reflected in its utilization rates. As of Q3 2024, the utilization rate for consulting services was 73.6%, down from 77.3% in Q3 2023, while the Digital capability utilization rate increased to 77.2% from 75.4%.
Workforce Growth
Huron expanded its workforce, with the total number of revenue-generating professionals rising by 10.4% to 5,896 as of September 30, 2024, compared to 5,341 a year earlier. The Healthcare segment saw a 30.0% increase in professionals, reaching 2,442.
| Segment | Number of Revenue-Generating Professionals (Q3 2024) | Number of Revenue-Generating Professionals (Q3 2023) | Change |
|---|---|---|---|
| Healthcare | 2,442 | 1,878 | +30.0% |
| Education | 1,250 | 1,203 | +3.9% |
| Commercial | 2,204 | 2,260 | -2.5% |
Cash Flow and Liquidity
Huron's cash flow from operating activities for the third quarter of 2024 was $85.2 million, a 23.9% increase from $68.8 million in Q3 2023. As of September 30, 2024, cash and cash equivalents stood at $18.5 million, compared to $12.1 million at the end of 2023.
Debt and Financing Arrangements
As of September 30, 2024, Huron had total borrowings of $443.1 million, consisting of a $175.0 million revolving credit facility and a $268.1 million term loan. The company has a share repurchase program with $82.7 million remaining for future repurchases.
| Debt Structure | Amount |
|---|---|
| Revolving Credit Facility | $175.0 million |
| Term Loan | $268.1 million |
| Total Borrowings | $443.1 million |
Conclusion
Huron Consulting Group Inc. continues to demonstrate growth in revenues and operational efficiency through strategic investments in workforce and segments that exhibit strong demand. The financial metrics and operational data indicate a solid position as of 2024.
How Huron Consulting Group Inc. (HURN) Makes Money
Revenue Segments
Huron Consulting Group generates revenue primarily through three segments: Healthcare, Education, and Commercial. As of the third quarter of 2024, the revenue breakdown is as follows:
| Segment | Revenues (in thousands) | Operating Income (in thousands) | Operating Margin (%) |
|---|---|---|---|
| Healthcare | $183,136 | $49,651 | 27.1 |
| Education | $121,048 | $29,158 | 24.1 |
| Commercial | $65,865 | $16,144 | 24.5 |
Consulting and Managed Services
Within the Consulting and Managed Services capability, revenues before reimbursable expenses were $214.5 million in Q3 2024, slightly down from $214.7 million in Q3 2023. This segment reflects strong demand in Education, though it faced pressure in Commercial and Healthcare segments.
Digital Capabilities
Huron's Digital capability saw an 8.4% increase in revenues, amounting to $155.5 million for Q3 2024, up from $143.5 million in Q3 2023. The utilization rate for Digital professionals increased to 77.2% compared to 75.4% the prior year, indicating a growing efficiency in this segment.
Overall Financial Performance
For the third quarter of 2024, total revenues before reimbursable expenses increased by 3.3% to $370.0 million from $358.2 million in Q3 2023. The net income for this period was $27.1 million, representing 7.2% of total revenues, an increase from $21.5 million or 5.9% in the previous year.
Employee Metrics
The total number of revenue-generating professionals increased by 10.4% to 5,896 as of September 30, 2024, compared to 5,341 a year earlier. This growth supports Huron's expansion strategy in response to increased market demand.
Adjusted EBITDA
Adjusted EBITDA for Q3 2024 rose to $54.9 million, or 14.8% of revenues before reimbursable expenses, an increase from $48.0 million, or 13.4%, in Q3 2023. This reflects improvements in operational efficiency and cost management across segments.
Cash Flow and Liquidity
Net cash provided by operating activities for Q3 2024 was $85.2 million, up 23.9% from $68.8 million in Q3 2023. This increase was primarily attributed to enhanced cash collections and a legal settlement of $15 million received during the quarter.
Operating Expenses
Operating expenses increased by $5.5 million, or 1.7%, in Q3 2024. The increases in salaries and related expenses were offset by decreases in contractor expenses and performance bonuses, reflecting Huron's strategy to manage costs while investing in talent.
Share Repurchase Program
Huron has an ongoing share repurchase program, with $82.7 million remaining as of September 30, 2024. During the third quarter, the company repurchased 66,354 shares for $7.3 million, contributing to the reduction in diluted shares outstanding.
Future Outlook
The company anticipates continued growth in its Healthcare and Education segments driven by increasing demand for consulting and digital services. The recent acquisitions and workforce expansion are expected to further enhance Huron's capabilities and market position.
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Article updated on 8 Nov 2024
Resources:
- Huron Consulting Group Inc. (HURN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Huron Consulting Group Inc. (HURN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Huron Consulting Group Inc. (HURN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.