☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 01-0666114 | |||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | HURN | NASDAQ Global Select Market |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ | Emerging Growth Company | ☐ |
Page | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 9C. | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
ITEM 1. | BUSINESS. |
ITEM 1A. | RISK FACTORS. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS. |
ITEM 2. | PROPERTIES. |
ITEM 3. | LEGAL PROCEEDINGS. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (2) | ||||||||||||||||||||||
First quarter total | 662,890 | $ | 46.42 | 523,399 | $ | 106,266,001 | ||||||||||||||||||||
Second quarter total | 500,131 | $ | 56.90 | 497,547 | $ | 77,919,714 | ||||||||||||||||||||
Third quarter total | 693,661 | $ | 66.48 | 685,641 | $ | 32,316,573 | ||||||||||||||||||||
October 1, 2022 – October 31, 2022 | 243,227 | $ | 69.80 | 239,798 | $ | 115,563,830 | ||||||||||||||||||||
November 1, 2022 – November 30, 2022 | 37,102 | $ | 73.59 | 36,780 | $ | 112,856,000 | ||||||||||||||||||||
December 1, 2022 – December 31, 2022 | 54,587 | $ | 73.12 | 54,587 | $ | 108,863,049 | ||||||||||||||||||||
Fourth quarter total | 334,916 | $ | 70.76 | 331,165 | $ | 108,863,049 | ||||||||||||||||||||
2022 Full year total | 2,191,598 | $ | 58.88 | 2,037,752 | $ | 108,863,049 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (2) | ||||||||||
October 1, 2019 – October 31, 2019 | 2,026 | $ | 60.64 | — | $ | 35,143,546 | ||||||||
November 1, 2019 – November 30, 2019 | 89,263 | $ | 66.63 | 89,263 | $ | 29,193,168 | ||||||||
December 1, 2019 – December 31, 2019 | 121,964 | $ | 68.21 | 121,174 | $ | 20,924,416 | ||||||||
Total | 213,253 | $ | 67.48 | 210,437 |
Consolidated Statements of Operations (in thousands, except per share data): | Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Revenues and reimbursable expenses: | ||||||||||||||||||||
Revenues | $ | 876,757 | $ | 795,125 | $ | 732,570 | $ | 726,272 | $ | 699,010 | ||||||||||
Reimbursable expenses | 88,717 | 82,874 | 75,175 | 71,712 | 70,013 | |||||||||||||||
Total revenues and reimbursable expenses | 965,474 | 877,999 | 807,745 | 797,984 | 769,023 | |||||||||||||||
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses) (1): | ||||||||||||||||||||
Direct costs | 575,602 | 521,537 | 454,806 | 437,556 | 401,915 | |||||||||||||||
Amortization of intangible assets and software development costs | 5,375 | 4,247 | 10,932 | 15,140 | 16,788 | |||||||||||||||
Reimbursable expenses | 88,696 | 82,923 | 75,436 | 71,749 | 69,932 | |||||||||||||||
Total direct costs and reimbursable expenses | 669,673 | 608,707 | 541,174 | 524,445 | 488,635 | |||||||||||||||
Operating expenses and other losses (gains), net: | ||||||||||||||||||||
Selling, general and administrative expenses | 203,071 | 180,983 | 175,364 | 160,204 | 157,902 | |||||||||||||||
Restructuring charges | 1,855 | 3,657 | 6,246 | 9,592 | 3,329 | |||||||||||||||
Litigation and other losses (gains), net | (1,196 | ) | (2,019 | ) | 1,111 | (1,990 | ) | (9,476 | ) | |||||||||||
Depreciation and amortization (1) | 28,365 | 34,575 | 38,213 | 31,499 | 25,135 | |||||||||||||||
Goodwill impairment charges | — | — | 253,093 | — | — | |||||||||||||||
Total operating expenses and other losses (gains), net | 232,095 | 217,196 | 474,027 | 199,305 | 176,890 | |||||||||||||||
Operating income (loss) | 63,706 | 52,096 | (207,456 | ) | 74,234 | 103,498 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||||
Interest expense, net of interest income | (15,648 | ) | (19,013 | ) | (18,613 | ) | (16,274 | ) | (18,136 | ) | ||||||||||
Other income (expense), net | 4,433 | (7,862 | ) | 3,565 | 1,197 | (1,797 | ) | |||||||||||||
Total other expense, net | (11,215 | ) | (26,875 | ) | (15,048 | ) | (15,077 | ) | (19,933 | ) | ||||||||||
Income (loss) from continuing operations before taxes | 52,491 | 25,221 | (222,504 | ) | 59,157 | 83,565 | ||||||||||||||
Income tax expense (benefit) | 10,512 | 11,277 | (51,999 | ) | 19,677 | 21,670 | ||||||||||||||
Net income (loss) from continuing operations | 41,979 | 13,944 | (170,505 | ) | 39,480 | 61,895 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (236 | ) | (298 | ) | 388 | (1,863 | ) | (2,843 | ) | |||||||||||
Net income (loss) | $ | 41,743 | $ | 13,646 | $ | (170,117 | ) | $ | 37,617 | $ | 59,052 |
Consolidated Statements of Operations (in thousands, except per share data): | Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Net earnings (loss) per basic share: | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | 1.91 | $ | 0.64 | $ | (7.95 | ) | $ | 1.87 | $ | 2.80 | |||||||||
Income (loss) from discontinued operations, net of tax | (0.01 | ) | (0.01 | ) | 0.02 | (0.09 | ) | (0.13 | ) | |||||||||||
Net income (loss) | $ | 1.90 | $ | 0.63 | $ | (7.93 | ) | $ | 1.78 | $ | 2.67 | |||||||||
Net earnings (loss) per diluted share: | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | 1.87 | $ | 0.63 | $ | (7.95 | ) | $ | 1.84 | $ | 2.74 | |||||||||
Income (loss) from discontinued operations, net of tax | (0.02 | ) | (0.01 | ) | 0.02 | (0.08 | ) | (0.13 | ) | |||||||||||
Net income (loss) | $ | 1.85 | $ | 0.62 | $ | (7.93 | ) | $ | 1.76 | $ | 2.61 | |||||||||
Weighted average shares used in calculating net earnings (loss) per share: | ||||||||||||||||||||
Basic | 21,993 | 21,706 | 21,439 | 21,084 | 22,136 | |||||||||||||||
Diluted | 22,507 | 22,058 | 21,439 | 21,424 | 22,600 |
Consolidated Balance Sheet Data (in thousands): | As of December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Cash and cash equivalents | $ | 11,604 | $ | 33,107 | $ | 16,909 | $ | 17,027 | $ | 58,437 | ||||||||||
Working capital (2) | $ | 20,192 | $ | (185,374 | ) | $ | 51,828 | $ | 44,314 | $ | 96,966 | |||||||||
Total assets | $ | 1,104,271 | $ | 1,049,532 | $ | 1,036,928 | $ | 1,153,215 | $ | 1,159,543 | ||||||||||
Long-term debt, net of current portion (2) | $ | 208,324 | $ | 53,853 | $ | 342,507 | $ | 292,065 | $ | 307,376 | ||||||||||
Total stockholders’ equity (3) | $ | 585,465 | $ | 540,624 | $ | 503,316 | $ | 648,033 | $ | 652,325 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Segment and Consolidated Operating Results (in thousands): | |||||||||||
Healthcare: | |||||||||||
Revenues | $ | 399,221 | $ | 364,763 | $ | 356,909 | |||||
Operating income | $ | 125,724 | $ | 108,060 | $ | 118,761 | |||||
Segment operating income as a percentage of segment revenues | 31.5 | % | 29.6 | % | 33.3 | % | |||||
Business Advisory: | |||||||||||
Revenues | $ | 252,508 | $ | 236,185 | $ | 207,753 | |||||
Operating income | $ | 49,695 | $ | 50,625 | $ | 46,600 | |||||
Segment operating income as a percentage of segment revenues | 19.7 | % | 21.4 | % | 22.4 | % | |||||
Education: | |||||||||||
Revenues | $ | 225,028 | $ | 194,177 | $ | 167,908 | |||||
Operating income | $ | 55,741 | $ | 48,243 | $ | 40,318 | |||||
Segment operating income as a percentage of segment revenues | 24.8 | % | 24.8 | % | 24.0 | % | |||||
Total Company: | |||||||||||
Revenues | $ | 876,757 | $ | 795,125 | $ | 732,570 | |||||
Reimbursable expenses | 88,717 | 82,874 | 75,175 | ||||||||
Total revenues and reimbursable expenses | $ | 965,474 | $ | 877,999 | $ | 807,745 | |||||
Statements of Operations reconciliation: | |||||||||||
Segment operating income | $ | 231,160 | $ | 206,928 | $ | 205,679 | |||||
Items not allocated at the segment level: | |||||||||||
Other operating expenses | 140,285 | 122,276 | 120,718 | ||||||||
Litigation and other losses (gains), net | (1,196 | ) | (2,019 | ) | 1,111 | ||||||
Depreciation and amortization | 28,365 | 34,575 | 38,213 | ||||||||
Goodwill impairment charges (1) | — | — | 253,093 | ||||||||
Total operating income (loss) | 63,706 | 52,096 | (207,456 | ) | |||||||
Other expense, net | 11,215 | 26,875 | 15,048 | ||||||||
Income (loss) from continuing operations before taxes | 52,491 | 25,221 | (222,504 | ) | |||||||
Income tax expense (benefit) | 10,512 | 11,277 | (51,999 | ) | |||||||
Net income (loss) from continuing operations | $ | 41,979 | $ | 13,944 | $ | (170,505 | ) | ||||
Earnings (loss) per share from continuing operations | |||||||||||
Basic | $ | 1.91 | $ | 0.64 | $ | (7.95 | ) | ||||
Diluted | $ | 1.87 | $ | 0.63 | $ | (7.95 | ) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Other Operating Data: | |||||||||||
Number of full-time billable consultants (at period end) (2): | |||||||||||
Healthcare | 890 | 813 | 778 | ||||||||
Business Advisory | 930 | 813 | 809 | ||||||||
Education | 756 | 621 | 549 | ||||||||
Total | 2,576 | 2,247 | 2,136 | ||||||||
Average number of full-time billable consultants (for the period) (2): | |||||||||||
Healthcare | 849 | 807 | 796 | ||||||||
Business Advisory | 892 | 769 | 740 | ||||||||
Education | 686 | 589 | 509 | ||||||||
Total | 2,427 | 2,165 | 2,045 | ||||||||
Full-time billable consultant utilization rate (3): | |||||||||||
Healthcare | 79.4 | % | 81.7 | % | 78.4 | % | |||||
Business Advisory | 72.5 | % | 73.8 | % | 71.5 | % | |||||
Education | 76.8 | % | 76.6 | % | 72.8 | % | |||||
Total | 76.1 | % | 77.5 | % | 74.5 | % | |||||
Full-time billable consultant average billing rate per hour (4): | |||||||||||
Healthcare | $ | 231 | $ | 209 | $ | 206 | |||||
Business Advisory (5) | $ | 201 | $ | 215 | $ | 205 | |||||
Education | $ | 199 | $ | 202 | $ | 213 | |||||
Total (5) | $ | 211 | $ | 209 | $ | 207 | |||||
Revenue per full-time billable consultant (in thousands): | |||||||||||
Healthcare | $ | 331 | $ | 307 | $ | 295 | |||||
Business Advisory | $ | 273 | $ | 293 | $ | 268 | |||||
Education | $ | 285 | $ | 289 | $ | 291 | |||||
Total | $ | 297 | $ | 297 | $ | 284 | |||||
Average number of full-time equivalents (for the period) (6): | |||||||||||
Healthcare | 244 | 219 | 213 | ||||||||
Business Advisory | 14 | 22 | 20 | ||||||||
Education | 47 | 39 | 35 | ||||||||
Total | 305 | 280 | 268 | ||||||||
Revenue per full-time equivalent (in thousands): | |||||||||||
Healthcare | $ | 485 | $ | 536 | $ | 576 | |||||
Business Advisory | $ | 655 | $ | 484 | $ | 464 | |||||
Education | $ | 617 | $ | 601 | $ | 564 | |||||
Total | $ | 513 | $ | 541 | $ | 566 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenues | $ | 876,757 | $ | 795,125 | $ | 732,570 | |||||
Net income (loss) from continuing operations | $ | 41,979 | $ | 13,944 | $ | (170,505 | ) | ||||
Add back: | |||||||||||
Income tax expense (benefit) | 10,512 | 11,277 | (51,999 | ) | |||||||
Interest expense, net of interest income | 15,648 | 19,013 | 18,613 | ||||||||
Depreciation and amortization | 33,740 | 38,822 | 49,145 | ||||||||
Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) | 101,879 | 83,056 | (154,746 | ) | |||||||
Add back: | |||||||||||
Restructuring charges | 1,855 | 3,657 | 6,246 | ||||||||
Litigation and other losses (gains), net | (1,196 | ) | (2,019 | ) | 1,111 | ||||||
Transaction-related expenses | 2,680 | — | — | ||||||||
Goodwill impairment charges | — | — | 253,093 | ||||||||
Other non-operating expense (income), net | — | 5,807 | (696 | ) | |||||||
Foreign currency transaction losses (gains), net | 160 | 475 | (434 | ) | |||||||
Adjusted EBITDA | $ | 105,378 | $ | 90,976 | $ | 104,574 | |||||
Adjusted EBITDA as a percentage of revenues | 12.0 | % | 11.4 | % | 14.3 | % |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net income (loss) from continuing operations | $ | 41,979 | $ | 13,944 | $ | (170,505 | ) | ||||
Weighted average shares - diluted | 22,507 | 22,058 | 21,439 | ||||||||
Diluted earnings (loss) per share from continuing operations | $ | 1.87 | $ | 0.63 | $ | (7.95 | ) | ||||
Add back: | |||||||||||
Amortization of intangible assets | 17,793 | 23,955 | 35,027 | ||||||||
Restructuring charges | 1,855 | 3,657 | 6,246 | ||||||||
Litigation and other losses (gains), net | (1,196 | ) | (2,019 | ) | 1,111 | ||||||
Transaction-related expenses | 2,680 | — | — | ||||||||
Goodwill impairment charges | — | — | 253,093 | ||||||||
Non-cash interest on convertible notes | 6,436 | 8,232 | 7,851 | ||||||||
Other non-operating expense (income), net | — | 5,807 | (696 | ) | |||||||
Tax effect of adjustments | (7,200 | ) | (9,487 | ) | (91,557 | ) | |||||
Tax expense related to the enactment of Tax Cuts and Jobs Act of 2017 | — | 1,749 | 8,762 | ||||||||
Tax benefit related to "check-the-box" election | (736 | ) | — | (2,728 | ) | ||||||
Total adjustments, net of tax | 19,632 | 31,894 | 217,109 | ||||||||
Adjusted net income from continuing operations | $ | 61,611 | $ | 45,838 | $ | 46,604 | |||||
Adjusted weighted average shares - diluted | 22,507 | 22,058 | 21,627 | ||||||||
Adjusted diluted earnings per share from continuing operations | $ | 2.74 | $ | 2.08 | $ | 2.15 |
Segment and Consolidated Operating Results (in thousands, except per share amounts): | Year Ended December 31, | |||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Healthcare: | ||||||||||||||||||||
Revenues | $ | 534,999 | $ | 444,767 | $ | 406,536 | ||||||||||||||
Operating income | $ | 131,227 | $ | 118,324 | $ | 105,650 | ||||||||||||||
Segment operating income as a percentage of segment revenues | 24.5 | % | 26.6 | % | 26.0 | % | ||||||||||||||
Education: | ||||||||||||||||||||
Revenues | $ | 359,835 | $ | 242,374 | $ | 223,325 | ||||||||||||||
Operating income | $ | 78,924 | $ | 52,398 | $ | 45,780 | ||||||||||||||
Segment operating income as a percentage of segment revenues | 21.9 | % | 21.6 | % | 20.5 | % | ||||||||||||||
Commercial: | ||||||||||||||||||||
Revenues | $ | 237,621 | $ | 218,499 | $ | 214,266 | ||||||||||||||
Operating income | $ | 50,025 | $ | 34,296 | $ | 39,044 | ||||||||||||||
Segment operating income as a percentage of segment revenues | 21.1 | % | 15.7 | % | 18.2 | % | ||||||||||||||
Total Huron: | ||||||||||||||||||||
Revenues | $ | 1,132,455 | $ | 905,640 | $ | 844,127 | ||||||||||||||
Reimbursable expenses | 26,506 | 21,318 | 26,887 | |||||||||||||||||
Total revenues and reimbursable expenses | $ | 1,158,961 | $ | 926,958 | $ | 871,014 | ||||||||||||||
Segment operating income | $ | 260,176 | $ | 205,018 | $ | 190,474 | ||||||||||||||
Items not allocated at the segment level: | ||||||||||||||||||||
Other operating expenses | 140,145 | 131,545 | 135,105 | |||||||||||||||||
Depreciation and amortization | 20,271 | 20,634 | 24,405 | |||||||||||||||||
Goodwill impairment charges (1) | — | — | 59,816 | |||||||||||||||||
Operating income (loss) | 99,760 | 52,839 | (28,852) | |||||||||||||||||
Other income (expense), net | 8,817 | 27,197 | (5,021) | |||||||||||||||||
Income (loss) from continuing operations before taxes | 108,577 | 80,036 | (33,873) | |||||||||||||||||
Income tax expense (benefit) | 33,025 | 17,049 | (10,155) | |||||||||||||||||
Net income (loss) from continuing operations | $ | 75,552 | $ | 62,987 | $ | (23,718) | ||||||||||||||
Earnings (loss) per share from continuing operations | ||||||||||||||||||||
Basic | $ | 3.73 | $ | 2.94 | $ | (1.08) | ||||||||||||||
Diluted | $ | 3.64 | $ | 2.89 | $ | (1.08) |
Segment and Consolidated Operating Results (in thousands, except per share amounts): | Year Ended December 31, | |||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||
Other Operating Data: | ||||||||||||||||||||
Number of revenue-generating professionals by segment (at period end) (6): | ||||||||||||||||||||
Healthcare | 1,890 | 1,596 | 1,117 | |||||||||||||||||
Education | 1,579 | 1,050 | 873 | |||||||||||||||||
Commercial (2) | 1,363 | 1,130 | 1,059 | |||||||||||||||||
Total | 4,832 | 3,776 | 3,049 | |||||||||||||||||
Revenue by capability: | ||||||||||||||||||||
Consulting and Managed Services (3) | $ | 637,994 | $ | 555,915 | $ | 514,086 | ||||||||||||||
Digital | 494,461 | 349,725 | 330,041 | |||||||||||||||||
Total | $ | 1,132,455 | $ | 905,640 | $ | 844,127 | ||||||||||||||
Number of revenue-generating professionals by capability (at period end): | ||||||||||||||||||||
Consulting and Managed Services (4) | 2,294 | 1,838 | 1,362 | |||||||||||||||||
Digital | 2,538 | 1,938 | 1,687 | |||||||||||||||||
Total | 4,832 | 3,776 | 3,049 | |||||||||||||||||
Utilization rate by capability (5): | ||||||||||||||||||||
Consulting | 75.2% | 70.6% | 67.6% | |||||||||||||||||
Digital | 71.0% | 72.5% | 74.3% |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Revenues | $ | 1,132,455 | $ | 905,640 | $ | 844,127 | |||||||||||
Net income (loss) from continuing operations | $ | 75,552 | $ | 62,987 | $ | (23,718) | |||||||||||
Add back: | |||||||||||||||||
Income tax expense (benefit) | 33,025 | 17,049 | (10,155) | ||||||||||||||
Interest expense, net of interest income | 11,883 | 8,150 | 9,292 | ||||||||||||||
Depreciation and amortization | 28,233 | 26,347 | 29,644 | ||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 148,693 | 114,533 | 5,063 | ||||||||||||||
Add back: | |||||||||||||||||
Restructuring charges | 9,909 | 12,401 | 21,374 | ||||||||||||||
Other losses (gains) | (193) | 198 | (150) | ||||||||||||||
Transaction-related expenses | 50 | 1,782 | 1,132 | ||||||||||||||
Goodwill impairment charges | — | — | 59,816 | ||||||||||||||
Unrealized gain on preferred stock investment | (26,964) | — | (1,667) | ||||||||||||||
Losses (gains) on sales of businesses | — | (31,510) | 1,603 | ||||||||||||||
Foreign currency transaction losses (gains), net | (655) | 419 | (31) | ||||||||||||||
Adjusted EBITDA | $ | 130,840 | $ | 97,823 | $ | 87,140 | |||||||||||
Adjusted EBITDA as a percentage of revenues | 11.6 | % | 10.8 | % | 10.3 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income (loss) from continuing operations | $ | 75,552 | $ | 62,987 | $ | (23,718) | |||||||||||
Weighted average shares - diluted | 20,746 | 21,809 | 21,882 | ||||||||||||||
Diluted earnings (loss) per share from continuing operations | $ | 3.64 | $ | 2.89 | $ | (1.08) | |||||||||||
Add back: | |||||||||||||||||
Amortization of intangible assets | 11,198 | 9,251 | 12,696 | ||||||||||||||
Restructuring charges | 9,909 | 12,401 | 21,374 | ||||||||||||||
Other losses (gains) | (193) | 198 | (150) | ||||||||||||||
Transaction-related expenses | 50 | 1,782 | 1,132 | ||||||||||||||
Goodwill impairment charges | — | — | 59,816 | ||||||||||||||
Unrealized gain on preferred stock investment | (26,964) | — | (1,667) | ||||||||||||||
Losses (gains) on sales of businesses | — | (31,510) | 1,603 | ||||||||||||||
Tax effect of adjustments | 1,590 | 1,742 | (23,199) | ||||||||||||||
Total adjustments, net of tax | (4,410) | (6,136) | 71,605 | ||||||||||||||
Adjusted net income from continuing operations | $ | 71,142 | $ | 56,851 | $ | 47,887 | |||||||||||
Adjusted weighted average shares - diluted | 20,746 | 21,809 | 22,299 | ||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 3.43 | $ | 2.61 | $ | 2.15 |
Revenues (in thousands) | Year Ended December 31, | Increase / (Decrease) | ||||||||||||||||||||||||
2022 | 2021 | $ | % | |||||||||||||||||||||||
Segment: | ||||||||||||||||||||||||||
Healthcare | $ | 534,999 | $ | 444,767 | $ | 90,232 | 20.3 | % | ||||||||||||||||||
Education | 359,835 | 242,374 | 117,461 | 48.5 | % | |||||||||||||||||||||
Commercial | 237,621 | 218,499 | 19,122 | 8.8 | % | |||||||||||||||||||||
Total revenues | $ | 1,132,455 | $ | 905,640 | $ | 226,815 | 25.0 | % | ||||||||||||||||||
Capability: | ||||||||||||||||||||||||||
Consulting and Managed Services | $ | 637,994 | $ | 555,915 | $ | 82,079 | 14.8 | % | ||||||||||||||||||
Digital | 494,461 | 349,725 | 144,736 | 41.4 | % | |||||||||||||||||||||
Total revenues | $ | 1,132,455 | $ | 905,640 | $ | 226,815 | 25.0 | % |
Operating Expenses (in thousands, except amounts as a percentage of revenues) | Year Ended December 31, | Increase / (Decrease) | ||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
Direct costs | $ | 785,881 | 69.4% | $ | 636,776 | 70.3% | $ | 149,105 | ||||||||||||||||||||||||
Reimbursable expenses | 26,671 | 2.4% | 21,369 | 2.4% | 5,302 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 209,381 | 18.5% | 178,084 | 19.7% | 31,297 | |||||||||||||||||||||||||||
Restructuring charges | 9,909 | 0.9% | 12,401 | 1.4% | (2,492) | |||||||||||||||||||||||||||
Depreciation and amortization | 27,359 | 2.3% | 25,489 | 2.7% | 1,870 | |||||||||||||||||||||||||||
Total operating expenses | $ | 1,059,201 | 93.5% | $ | 874,119 | 96.5% | $ | 185,082 |
Segment Operating Income (in thousands, except operating margin percentages) | Year Ended December 31, | Increase / (Decrease) | ||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
Healthcare | $ | 131,227 | 24.5% | $ | 118,324 | 26.6% | $ | 12,903 | ||||||||||||||||||||||||
Education | 78,924 | 21.9% | 52,398 | 21.6% | 26,526 | |||||||||||||||||||||||||||
Commercial | 50,025 | 21.1% | 34,296 | 15.7% | 15,729 | |||||||||||||||||||||||||||
Total segment operating income | $ | 260,176 | $ | 205,018 | $ | 55,158 |
Revenues (in thousands) | Year Ended December 31, | Increase / (Decrease) | ||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||
Segment: | ||||||||||||||||||||||||||
Healthcare | $ | 444,767 | $ | 406,536 | $ | 38,231 | 9.4 | % | ||||||||||||||||||
Education | 242,374 | 223,325 | 19,049 | 8.5 | % | |||||||||||||||||||||
Commercial | 218,499 | 214,266 | 4,233 | 2.0 | % | |||||||||||||||||||||
Total revenues | $ | 905,640 | $ | 844,127 | $ | 61,513 | 7.3 | % | ||||||||||||||||||
Capability: | ||||||||||||||||||||||||||
Consulting and Managed Services | $ | 555,915 | $ | 514,086 | $ | 41,829 | 8.1 | % | ||||||||||||||||||
Digital | 349,725 | 330,041 | 19,684 | 6.0 | % | |||||||||||||||||||||
Total revenues | $ | 905,640 | $ | 844,127 | $ | 61,513 | 7.3 | % |
Segment Operating Income (in thousands, except operating margin percentages) | Year Ended December 31, | Increase / (Decrease) | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Healthcare | $ | 118,324 | 26.6% | $ | 105,650 | 26.0% | $ | 12,674 | ||||||||||||||||||||||||
Education | 52,398 | 21.6% | 45,780 | 20.5% | 6,618 | |||||||||||||||||||||||||||
Commercial | 34,296 | 15.7% | 39,044 | 18.2% | (4,748) | |||||||||||||||||||||||||||
Total segment operating income | $ | 205,018 | $ | 190,474 | $ | 14,544 |
Cash Flows (in thousands): | Year Ended December 31, | Cash Flows (in thousands): | Year Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 132,220 | $ | 101,658 | $ | 99,795 | Net cash provided by operating activities | $ | 85,400 | $ | 17,987 | $ | 136,738 | |||||||||||||||||||
Net cash used in investing activities | (35,002 | ) | (18,562 | ) | (128,948 | ) | Net cash used in investing activities | (20,128) | (20,143) | (42,034) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | (118,836 | ) | (66,690 | ) | 28,821 | |||||||||||||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (74,108) | (44,410) | (39,615) | ||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | 115 | (208 | ) | 214 | Effect of exchange rate changes on cash | (111) | 170 | 484 | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (21,503 | ) | $ | 16,198 | $ | (118 | ) | Net increase (decrease) in cash and cash equivalents | $ | (8,947) | $ | (46,396) | $ | 55,573 |
Payments Due by Period | |||||||||||||||||||
Total | 2020 | 2021-2022 | 2023-2024 | Thereafter | |||||||||||||||
Long-term bank borrowings—principal and interest (1) | $ | 234,037 | $ | 6,113 | $ | 12,226 | $ | 215,698 | $ | — | |||||||||
Promissory note—principal and interest (2) | 4,276 | 661 | 1,308 | 2,307 | — | ||||||||||||||
Operating lease obligations (3) | 90,887 | 9,772 | 23,541 | 22,363 | 35,211 | ||||||||||||||
Purchase obligations (4) | 29,593 | 15,504 | 9,869 | 4,220 | — | ||||||||||||||
Deferred compensation (5) | 27,544 | ||||||||||||||||||
Uncertain tax positions (6) | 78 | ||||||||||||||||||
Total contractual obligations | $ | 386,415 | $ | 32,050 | $ | 46,944 | $ | 244,588 | $ | 35,211 |
Discount rate increased by 100 bps | Long-term growth rate decreased by 100 bps | |||||
Strategy and Innovation: | ||||||
Decrease in fair value | $ | (5,600 | ) | $ | (3,600 | ) |
Percentage by which fair value exceeds carrying value | 35 | % | 37 | % |
Reporting Unit | Carrying Value of Goodwill | |||
Healthcare | $ | 428,729 | ||
Education | 103,889 | |||
Business Advisory | 16,094 | |||
Strategy and Innovation | 87,410 | |||
Life Sciences | 10,558 | |||
Enterprise Solutions and Analytics | — | |||
Total | $ | 646,680 |
Reporting Unit | Carrying Value of Goodwill | |||||||
Healthcare | $ | 454,214 | ||||||
Education | 122,235 | |||||||
Commercial | 48,517 | |||||||
Total | $ | 624,966 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
ITEM 9A. | CONTROLS AND PROCEDURES. |
ITEM 9B. | OTHER INFORMATION. |
ITEM 9C. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. |
ITEM 11. | EXECUTIVE COMPENSATION. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Options | Weighted Average Exercise Price of Outstanding Options | Number of Shares Remaining Available for Future Issuance (excluding shares in 1st column) | ||||||||||||||
Equity compensation plans approved by shareholders: | |||||||||||||||||
2012 Omnibus Incentive Plan (1) | 227,116 | $ | 48.89 | 590,383 | |||||||||||||
Stock Ownership Participation Program (2) | — | N/A | 199,991 | ||||||||||||||
Equity compensation plans not approved by shareholders | N/A | N/A | N/A | ||||||||||||||
Total | 227,116 | $ | 48.89 | 790,374 |
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Options | Weighted Average Exercise Price of Outstanding Options | Number of Shares Remaining Available for Future Issuance (excluding shares in 1st column) | ||||||
Equity compensation plans approved by shareholders: | |||||||||
2004 Omnibus Stock Plan (1) | 74,608 | $ | 29.74 | — | |||||
2012 Omnibus Incentive Plan (2) | 31,785 | $ | 39.19 | 1,073,349 | |||||
Stock Ownership Participation Program (3) | — | $ | — | 33,497 | |||||
Equity compensation plans not approved by shareholders | N/A | N/A | N/A | ||||||
Total | 106,393 | $ | 32.57 | 1,106,846 |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES. |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
Exhibit Number | Exhibit Description | Filed herewith | Furnished herewith | Incorporated by Reference | |||||||||||||||||||
Form | Period Ending | Exhibit | Filing Date | ||||||||||||||||||||
3.1 | 10-K | 12/31/2004 | 3.1 | 2/16/2005 | |||||||||||||||||||
3.2 | 8-K | 3.1 | 11/2/2022 | ||||||||||||||||||||
4.1 | S-1 (File No. 333- 115434) | 4.1 | 10/5/2004 | ||||||||||||||||||||
4.2 | 10-K | 12/31/2019 | 4.2 | 2/26/2020 | |||||||||||||||||||
10.1 | S-1 (File No. 333- 115434) | 10.1 | 10/5/2004 | ||||||||||||||||||||
10.2* | 10-K | 12/31/2008 | 10.12 | 2/24/2009 | |||||||||||||||||||
10.3* | 8-K | 10.1 | 1/6/2017 | ||||||||||||||||||||
10.4 | 10-K | 12/31/2012 | 10.17 | 2/21/2013 | |||||||||||||||||||
10.5 | 10-K | 12/31/2012 | 10.18 | 2/21/2013 | |||||||||||||||||||
10.6 | 10-K | 12/31/2012 | 10.19 | 2/21/2013 | |||||||||||||||||||
10.7 | 8-K | 10.1 | 1/4/2013 | ||||||||||||||||||||
10.8† | 10-K | 12/31/2019 | 10.13 | 2/26/2020 |
Exhibit Number | Exhibit Description | Filed herewith | Furnished herewith | Incorporated by Reference | |||||||||||||||||||
Form | Period Ending | Exhibit | Filing Date | ||||||||||||||||||||
10.9 | 8-K | 10.1 | 10/16/2019 | ||||||||||||||||||||
10.10* | 10-K | 12/31/2012 | 10.20 | 2/21/2013 | |||||||||||||||||||
10.11* | 10-K | 12/31/2014 | 10.32 | 2/24/2015 | |||||||||||||||||||
10.12* | 10-K | 12/31/2014 | 10.33 | 2/24/2015 | |||||||||||||||||||
10.13* | 10-K | 12/31/2014 | 10.34 | 2/24/2015 | |||||||||||||||||||
10.14* | 10-K | 12/31/2019 | 10.34 | 2/26/2020 | |||||||||||||||||||
10.15* | 10-Q | 3/31/2020 | 10.1 | 4/30/2020 | |||||||||||||||||||
10.16* | DEF 14A | Appendix A | 3/26/2020 | ||||||||||||||||||||
10.17* | 8-K | 10.1 | 4/14/2021 | ||||||||||||||||||||
10.18* | DEF 14A | Appendix A | 3/26/2021 | ||||||||||||||||||||
10.19* | 10-Q | 9/30/2021 | 10.1 | 11/2/2021 | |||||||||||||||||||
10.20* | 8-K | 10.1 | 6/7/2022 | ||||||||||||||||||||
10.21† | 8-K | 10.1 | 11/16/2022 | ||||||||||||||||||||
10.22 | 8-K | 10.2 | 11/16/2022 | ||||||||||||||||||||
10.23 | 8-K | 10.3 | 11/16/2022 | ||||||||||||||||||||
10.24* | 8-K/A | 10.1 | 12/29/2022 | ||||||||||||||||||||
10.25* | 8-K/A | 10.2 | 12/29/2022 |
Number | Filed herewith | Furnished herewith | Incorporated by |
Form | Period Ending | Exhibit | Filing Date | ||||||||||||||||||||
10.26* | X | ||||||||||||||||||||||
X | |||||||||||||||||||||||
23.1 | X | ||||||||||||||||||||||
31.1 | X | ||||||||||||||||||||||
31.2 | X | ||||||||||||||||||||||
32.1 | X | ||||||||||||||||||||||
32.2 | X | ||||||||||||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | |||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | |||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | |||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | |||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | |||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | |||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit |
Exhibit Number | Exhibit Description | Filed herewith | Furnished herewith | Incorporated by Reference | |||
Form | Period Ending | Exhibit | Filing Date | ||||
3.1 | 10-K | 12/31/2004 | 3.1 | 2/16/2005 | |||
3.2 | 8-K | 3.1 | 10/28/2015 | ||||
4.1 | S-1 (File No. 333- 115434) | 4.1 | 10/5/2004 | ||||
4.2 | X | ||||||
4.3 | 8-K | 4.1 | 9/16/2014 | ||||
10.1 | S-1 (File No. 333- 115434) | 10.1 | 10/5/2004 | ||||
10.2* | S-8 | 10.1 | 5/5/2010 | ||||
10.3* | 10-K | 12/31/2008 | 10.12 | 2/24/2009 | |||
10.4* | 8-K | 10.1 | 1/6/2017 | ||||
10.5* | 8-K | 10.2 | 1/6/2017 | ||||
10.6* | 8-K | 10.3 | 1/6/2017 | ||||
10.7* | 8-K | 10.4 | 1/6/2017 | ||||
10.8* | 8-K | 10.1 | 9/16/2019 |
Exhibit Number | Exhibit Description | Filed herewith | Furnished herewith | Incorporated by Reference | |||
Form | Period Ending | Exhibit | Filing Date | ||||
10.9 | 10-K | 12/31/2012 | 10.17 | 2/21/2013 | |||
10.10 | 10-K | 12/31/2012 | 10.18 | 2/21/2013 | |||
10.11 | 10-K | 12/31/2012 | 10.19 | 2/21/2013 | |||
10.12 | 8-K | 10.1 | 1/4/2013 | ||||
10.13† | X | ||||||
10.14 | 8-K | 10.1 | 10/16/2019 | ||||
10.15* | 10-K | 12/31/2012 | 10.20 | 2/21/2013 | |||
10.16 | 8-K | 10.2 | 9/5/2014 | ||||
10.17 | 8-K | 10.3 | 9/5/2014 | ||||
10.18 | 8-K | 10.4 | 9/5/2014 | ||||
10.19 | 8-K | 10.5 | 9/5/2014 | ||||
10.20 | 8-K | 10.1 | 9/16/2014 | ||||
10.21 | 8-K | 10.2 | 9/16/2014 | ||||
10.22 | 8-K | 10.3 | 9/16/2014 | ||||
10.23 | 8-K | 10.4 | 9/16/2014 |
Exhibit Number | Exhibit Description | Filed herewith | Furnished herewith | Incorporated by Reference | |||
Form | Period Ending | Exhibit | Filing Date | ||||
10.24* | 10-K | 12/31/2014 | 10.31 | 2/24/2015 | |||
10.25* | 10-K | 12/31/2014 | 10.32 | 2/24/2015 | |||
10.26* | 10-K | 12/31/2014 | 10.33 | 2/24/2015 | |||
10.27* | 10-K | 12/31/2014 | 10.34 | 2/24/2015 | |||
10.28 | 8-K | 10.1 | 4/2/2015 | ||||
10.29 | 8-K | 10.2 | 4/2/2015 | ||||
10.30 | 8-K | 10.3 | 4/2/2015 | ||||
10.31* | DEF 14A | Appendix A | 3/20/2015 | ||||
10.32* | DEF 14A | Appendix A | 3/27/2017 | ||||
10.33* | DEF 14A | Appendix A | 3/22/2019 | ||||
10.34* | X | ||||||
10.35 | 8-K | 10.1 | 3/6/2017 | ||||
10.36 | 10-Q | 9/30/2017 | 10.1 | 11/1/2017 | |||
10.37 | 8-K | 10.1 | 3/29/2018 |
Exhibit Number | Exhibit Description | Filed herewith | Furnished herewith | Incorporated by Reference | |||
Form | Period Ending | Exhibit | Filing Date | ||||
10.38 | 8-K | 10.1 | 10/3/2019 | ||||
21.1 | X | ||||||
23.1 | X | ||||||
31.1 | X | ||||||
31.2 | X | ||||||
32.1 | X | ||||||
32.2 | X | ||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | |||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | |||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | |||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | |||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | |||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | |||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | X |
X | |||||||||||||||||||||||
* | Indicates the exhibit is a management contract or compensatory plan or arrangement. | ||||
† | Pursuant to Regulation S-K 601(b)(10)(iv), certain exhibits to this Exhibit have been omitted. The Company agrees to furnish supplementally to the Securities and Exchange Commission, upon its request, a copy of any or all omitted exhibits. |
ITEM 16. | FORM 10-K SUMMARY |
Huron Consulting Group Inc. | ||||||||||||||
(Registrant) |
Signature | Title | Date | ||||||||||||
/s/ | President, Chief Executive Officer and Director | 2/ | ||||||||||||
Signature | Title | Date | ||||||||||||
/s/ | President, Chief Executive Officer and Director (Principal Executive Officer) | 2/ | ||||||||||||
/s/ JOHN F. MCCARTNEY | Non-Executive Chairman of the Board | 2/ | ||||||||||||
John F. McCartney | ||||||||||||||
/s/ | Vice Chairman of the Board | 2/ | ||||||||||||
/s/ JOHN D. KELLY | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | 2/ | ||||||||||||
John D. Kelly | ||||||||||||||
/s/ | Chief Accounting Officer (Principal Accounting Officer) | 2/ | ||||||||||||
/s/ JOY T. BROWN | Director | 2/28/2023 | ||||||||||||
Joy T. Brown | ||||||||||||||
/s/ H. EUGENE LOCKHART | Director | 2/ | ||||||||||||
H. Eugene Lockhart | ||||||||||||||
/s/ PETER K. MARKELL | Director | 2/28/2023 | ||||||||||||
Peter K. Markell | ||||||||||||||
/s/ HUGH E. SAWYER | Director | 2/ | ||||||||||||
Hugh E. Sawyer | ||||||||||||||
/s/ EKTA SINGH-BUSHELL | Director | 2/ | ||||||||||||
Ekta Singh-Bushell | ||||||||||||||
/s/ DEBRA ZUMWALT | Director | 2/ | ||||||||||||
Debra Zumwalt |
Page | |||||
(PCAOB ID 238) | F-2 | ||||
Consolidated Balance Sheets at December 31, | |||||
Consolidated Statements of Operations and Other Comprehensive Income (Loss) for the years ended December 31, | |||||
Consolidated Statements of Stockholders’ Equity for the years ended December 31, | |||||
Consolidated Statements of Cash Flows for the years ended December 31, | |||||
December 31, 2019 | December 31, 2018 | December 31, 2022 | December 31, 2021 | |||||||||||||||
Assets | Assets | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 11,604 | $ | 33,107 | Cash and cash equivalents | $ | 11,834 | $ | 20,781 | |||||||||
Receivables from clients, net | 116,571 | 109,677 | ||||||||||||||||
Unbilled services, net | 79,937 | 69,613 | ||||||||||||||||
Receivables from clients, net of allowances of $10,600 and $8,827, respectively | Receivables from clients, net of allowances of $10,600 and $8,827, respectively | 147,852 | 122,316 | |||||||||||||||
Unbilled services, net of allowances of $3,850 and $2,637, respectively | Unbilled services, net of allowances of $3,850 and $2,637, respectively | 141,781 | 91,285 | |||||||||||||||
Income tax receivable | 2,376 | 6,612 | Income tax receivable | 960 | 8,071 | |||||||||||||
Prepaid expenses and other current assets | 14,248 | 13,922 | Prepaid expenses and other current assets | 26,057 | 15,229 | |||||||||||||
Total current assets | 224,736 | 232,931 | Total current assets | 328,484 | 257,682 | |||||||||||||
Property and equipment, net | 38,413 | 40,374 | Property and equipment, net | 26,107 | 31,004 | |||||||||||||
Deferred income taxes, net | 1,145 | 2,153 | Deferred income taxes, net | 1,554 | 1,804 | |||||||||||||
Long-term investments | 54,541 | 50,429 | Long-term investments | 91,194 | 72,584 | |||||||||||||
Operating lease right-of-use assets | 54,954 | — | Operating lease right-of-use assets | 30,304 | 35,311 | |||||||||||||
Other non-current assets | 52,177 | 30,525 | Other non-current assets | 73,039 | 68,191 | |||||||||||||
Intangible assets, net | 31,625 | 47,857 | Intangible assets, net | 23,392 | 31,894 | |||||||||||||
Goodwill | 646,680 | 645,263 | Goodwill | 624,966 | 620,879 | |||||||||||||
Total assets | $ | 1,104,271 | $ | 1,049,532 | Total assets | $ | 1,199,040 | $ | 1,119,349 | |||||||||
Liabilities and stockholders’ equity | Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | $ | 7,944 | $ | 10,020 | Accounts payable | $ | 14,254 | $ | 13,621 | |||||||||
Accrued expenses and other current liabilities | 18,554 | 17,207 | Accrued expenses and other current liabilities | 27,268 | 22,519 | |||||||||||||
Accrued payroll and related benefits | 141,605 | 109,825 | Accrued payroll and related benefits | 171,723 | 139,131 | |||||||||||||
Accrued contingent consideration for business acquisitions | — | 9,991 | ||||||||||||||||
Current maturities of long-term debt | 529 | 243,132 | Current maturities of long-term debt | — | 559 | |||||||||||||
Current maturities of operating lease liabilities | 7,469 | — | Current maturities of operating lease liabilities | 10,530 | 10,142 | |||||||||||||
Deferred revenues | 28,443 | 28,130 | Deferred revenues | 21,909 | 19,212 | |||||||||||||
Total current liabilities | 204,544 | 418,305 | Total current liabilities | 245,684 | 205,184 | |||||||||||||
Non-current liabilities: | Non-current liabilities: | |||||||||||||||||
Deferred compensation and other liabilities | 28,635 | 20,875 | Deferred compensation and other liabilities | 33,614 | 43,458 | |||||||||||||
Accrued contingent consideration for business acquisitions, net of current portion | — | 1,450 | ||||||||||||||||
Long-term debt, net of current portion | 208,324 | 53,853 | Long-term debt, net of current portion | 290,000 | 232,221 | |||||||||||||
Operating lease liabilities, net of current portion | 69,233 | — | Operating lease liabilities, net of current portion | 45,556 | 54,313 | |||||||||||||
Deferred lease incentives | — | 13,693 | ||||||||||||||||
Deferred income taxes, net | 8,070 | 732 | Deferred income taxes, net | 32,146 | 12,273 | |||||||||||||
Total non-current liabilities | 314,262 | 90,603 | Total non-current liabilities | 401,316 | 342,265 | |||||||||||||
Commitments and contingencies | Commitments and contingencies | |||||||||||||||||
Stockholders’ equity | Stockholders’ equity | |||||||||||||||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 25,144,764 and 25,114,739 shares issued at December 31, 2019 and December 31, 2018, respectively | 247 | 244 | ||||||||||||||||
Treasury stock, at cost, 2,425,430 and 2,568,288 shares at December 31, 2019 and December 31, 2018, respectively | (128,348 | ) | (124,794 | ) | ||||||||||||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 22,507,159 and 24,364,814 shares issued, respectively | Common stock; $0.01 par value; 500,000,000 shares authorized; 22,507,159 and 24,364,814 shares issued, respectively | 223 | 239 | |||||||||||||||
Treasury stock, at cost, 2,711,712 and 2,495,172 shares, respectively | Treasury stock, at cost, 2,711,712 and 2,495,172 shares, respectively | (137,556) | (135,969) | |||||||||||||||
Additional paid-in capital | 460,781 | 452,573 | Additional paid-in capital | 318,706 | 413,794 | |||||||||||||
Retained earnings | 237,849 | 196,106 | Retained earnings | 352,548 | 276,996 | |||||||||||||
Accumulated other comprehensive income | 14,936 | 16,495 | Accumulated other comprehensive income | 18,119 | 16,840 | |||||||||||||
Total stockholders’ equity | 585,465 | 540,624 | Total stockholders’ equity | 552,040 | 571,900 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,104,271 | $ | 1,049,532 | Total liabilities and stockholders’ equity | $ | 1,199,040 | $ | 1,119,349 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Revenues and reimbursable expenses: | Revenues and reimbursable expenses: | |||||||||||||||||||||||||||
Revenues | $ | 876,757 | $ | 795,125 | $ | 732,570 | Revenues | $ | 1,132,455 | $ | 905,640 | $ | 844,127 | |||||||||||||||
Reimbursable expenses | 88,717 | 82,874 | 75,175 | Reimbursable expenses | 26,506 | 21,318 | 26,887 | |||||||||||||||||||||
Total revenues and reimbursable expenses | 965,474 | 877,999 | 807,745 | Total revenues and reimbursable expenses | 1,158,961 | 926,958 | 871,014 | |||||||||||||||||||||
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses): | ||||||||||||||||||||||||||||
Direct costs | 575,602 | 521,537 | 454,806 | |||||||||||||||||||||||||
Amortization of intangible assets and software development costs | 5,375 | 4,247 | 10,932 | |||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||
Direct costs (exclusive of depreciation and amortization included below) | Direct costs (exclusive of depreciation and amortization included below) | 785,881 | 636,776 | 592,428 | ||||||||||||||||||||||||
Reimbursable expenses | 88,696 | 82,923 | 75,436 | Reimbursable expenses | 26,671 | 21,369 | 26,918 | |||||||||||||||||||||
Total direct costs and reimbursable expenses | 669,673 | 608,707 | 541,174 | |||||||||||||||||||||||||
Operating expenses and other losses (gains), net: | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 203,071 | 180,983 | 175,364 | Selling, general and administrative expenses | 209,381 | 178,084 | 170,536 | |||||||||||||||||||||
Restructuring charges | 1,855 | 3,657 | 6,246 | Restructuring charges | 9,909 | 12,401 | 20,525 | |||||||||||||||||||||
Litigation and other losses (gains), net | (1,196 | ) | (2,019 | ) | 1,111 | |||||||||||||||||||||||
Depreciation and amortization | 28,365 | 34,575 | 38,213 | Depreciation and amortization | 27,359 | 25,489 | 29,643 | |||||||||||||||||||||
Goodwill impairment charges | — | — | 253,093 | Goodwill impairment charges | — | — | 59,816 | |||||||||||||||||||||
Total operating expenses and other losses (gains), net | 232,095 | 217,196 | 474,027 | |||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 1,059,201 | 874,119 | 899,866 | ||||||||||||||||||||||||
Operating income (loss) | 63,706 | 52,096 | (207,456 | ) | Operating income (loss) | 99,760 | 52,839 | (28,852) | ||||||||||||||||||||
Other income (expense), net: | Other income (expense), net: | |||||||||||||||||||||||||||
Interest expense, net of interest income | (15,648 | ) | (19,013 | ) | (18,613 | ) | Interest expense, net of interest income | (11,883) | (8,150) | (9,292) | ||||||||||||||||||
Other income (expense), net | 4,433 | (7,862 | ) | 3,565 | ||||||||||||||||||||||||
Total other expense, net | (11,215 | ) | (26,875 | ) | (15,048 | ) | ||||||||||||||||||||||
Other income, net | Other income, net | 20,700 | 35,347 | 4,271 | ||||||||||||||||||||||||
Total other income (expense), net | Total other income (expense), net | 8,817 | 27,197 | (5,021) | ||||||||||||||||||||||||
Income (loss) from continuing operations before taxes | 52,491 | 25,221 | (222,504 | ) | Income (loss) from continuing operations before taxes | 108,577 | 80,036 | (33,873) | ||||||||||||||||||||
Income tax expense (benefit) | 10,512 | 11,277 | (51,999 | ) | Income tax expense (benefit) | 33,025 | 17,049 | (10,155) | ||||||||||||||||||||
Net income (loss) from continuing operations | 41,979 | 13,944 | (170,505 | ) | Net income (loss) from continuing operations | $ | 75,552 | $ | 62,987 | $ | (23,718) | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | (236 | ) | (298 | ) | 388 | |||||||||||||||||||||||
Loss from discontinued operations, net of tax | Loss from discontinued operations, net of tax | — | — | (122) | ||||||||||||||||||||||||
Net income (loss) | $ | 41,743 | $ | 13,646 | $ | (170,117 | ) | Net income (loss) | $ | 75,552 | $ | 62,987 | $ | (23,840) | ||||||||||||||
Net earnings (loss) per basic share: | ||||||||||||||||||||||||||||
Earnings per share: | Earnings per share: | |||||||||||||||||||||||||||
Net income (loss) per basic share: | Net income (loss) per basic share: | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 1.91 | $ | 0.64 | $ | (7.95 | ) | Net income (loss) from continuing operations | $ | 3.73 | $ | 2.94 | $ | (1.08) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (0.01 | ) | (0.01 | ) | 0.02 | |||||||||||||||||||||||
Loss from discontinued operations, net of tax | Loss from discontinued operations, net of tax | — | — | (0.01) | ||||||||||||||||||||||||
Net income (loss) | $ | 1.90 | $ | 0.63 | $ | (7.93 | ) | Net income (loss) | $ | 3.73 | $ | 2.94 | $ | (1.09) | ||||||||||||||
Net earnings (loss) per diluted share: | Net earnings (loss) per diluted share: | |||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 1.87 | $ | 0.63 | $ | (7.95 | ) | Net income (loss) from continuing operations | $ | 3.64 | $ | 2.89 | $ | (1.08) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (0.02 | ) | (0.01 | ) | 0.02 | |||||||||||||||||||||||
Loss from discontinued operations, net of tax | Loss from discontinued operations, net of tax | — | — | (0.01) | ||||||||||||||||||||||||
Net income (loss) | $ | 1.85 | $ | 0.62 | $ | (7.93 | ) | Net income (loss) | $ | 3.64 | $ | 2.89 | $ | (1.09) | ||||||||||||||
Weighted average shares used in calculating earnings per share: | Weighted average shares used in calculating earnings per share: | |||||||||||||||||||||||||||
Basic | 21,993 | 21,706 | 21,439 | Basic | 20,249 | 21,439 | 21,882 | |||||||||||||||||||||
Diluted | 22,507 | 22,058 | 21,439 | Diluted | 20,746 | 21,809 | 21,882 | |||||||||||||||||||||
Comprehensive income (loss): | Comprehensive income (loss): | |||||||||||||||||||||||||||
Net income (loss) | $ | 41,743 | $ | 13,646 | $ | (170,117 | ) | Net income (loss) | $ | 75,552 | $ | 62,987 | $ | (23,840) | ||||||||||||||
Foreign currency translation adjustments, net of tax | 99 | (1,814 | ) | 1,602 | Foreign currency translation adjustments, net of tax | (1,890) | (925) | 348 | ||||||||||||||||||||
Unrealized gain (loss) on investment, net of tax | (702 | ) | 7,772 | 4,724 | Unrealized gain (loss) on investment, net of tax | (6,146) | 1,169 | 1,323 | ||||||||||||||||||||
Unrealized gain (loss) on cash flow hedging instruments, net of tax | (956 | ) | 167 | 429 | Unrealized gain (loss) on cash flow hedging instruments, net of tax | 9,315 | 3,535 | (3,546) | ||||||||||||||||||||
Other comprehensive income (loss) | (1,559 | ) | 6,125 | 6,755 | Other comprehensive income (loss) | 1,279 | 3,779 | (1,875) | ||||||||||||||||||||
Comprehensive income (loss) | $ | 40,184 | $ | 19,771 | $ | (163,362 | ) | Comprehensive income (loss) | $ | 76,831 | $ | 66,766 | $ | (25,715) |
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Stockholders' Equity | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | Balance at December 31, 2019 | 24,603,308 | $ | 247 | (2,763,302) | $ | (128,348) | $ | 460,781 | $ | 237,849 | $ | 14,936 | $ | 585,465 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | Comprehensive loss | (23,840) | (1,875) | (25,715) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with: | Issuance of common stock in connection with: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net of cancellations | Restricted stock awards, net of cancellations | 342,311 | 3 | 87,155 | 6,365 | (6,368) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | Exercise of stock options | 40,400 | — | 1,003 | 1,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | 24,998 | 24,998 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares redeemed for employee tax withholdings | Shares redeemed for employee tax withholdings | (136,749) | (7,903) | (7,903) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 23,478,016 | $ | 235 | (2,420,913 | ) | $ | (113,195 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | Share repurchases | (425,164) | (4) | (25,902) | (25,906) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | Balance at December 31, 2020 | 24,560,855 | $ | 246 | (2,812,896) | $ | (129,886) | $ | 454,512 | $ | 214,009 | $ | 13,061 | $ | 551,942 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | (170,117 | ) | 6,755 | (163,362 | ) | Comprehensive income | 62,987 | 3,779 | 66,766 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with: | Issuance of common stock in connection with: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net of cancellations | 399,248 | 4 | (58,211 | ) | (3,953 | ) | 3,949 | — | Restricted stock awards, net of cancellations | 475,250 | 5 | 101,236 | 4,020 | (4,025) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition | 221,558 | 2 | 9,558 | 9,560 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | Exercise of stock options | 23,403 | — | 804 | 804 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of business | Purchase of business | 74,671 | 1 | 3,322 | 3,323 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 14,419 | 14,419 | Share-based compensation | 23,971 | 23,971 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares redeemed for employee tax withholdings | (112,011 | ) | (4,846 | ) | (4,846 | ) | Shares redeemed for employee tax withholdings | (197,189) | (10,103) | (10,103) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | 435 | (435 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2018-02 | (488 | ) | (488 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 24,098,822 | $ | 241 | (2,591,135 | ) | $ | (121,994 | ) | $ | 434,256 | $ | 180,443 | $ | 10,370 | $ | 503,316 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | Share repurchases | (1,265,261) | (13) | (64,790) | (64,803) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | 23,868,918 | $ | 239 | (2,908,849) | $ | (135,969) | $ | 413,794 | $ | 276,996 | $ | 16,840 | $ | 571,900 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 13,646 | 6,125 | 19,771 | Comprehensive income | 75,552 | 1,279 | 76,831 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with: | Issuance of common stock in connection with: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net of cancellations | 279,430 | 3 | 5,986 | 387 | (390 | ) | — | Restricted stock awards, net of cancellations | 363,891 | 4 | 109,548 | 6,208 | (6,212) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 40,000 | — | 937 | 937 | Exercise of stock options | 36,536 | — | 1,421 | 1,421 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 17,770 | 17,770 | Share-based compensation | 30,991 | 30,991 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares redeemed for employee tax withholdings | (86,813 | ) | (3,187 | ) | (3,187 | ) | Shares redeemed for employee tax withholdings | (153,846) | (7,795) | (7,795) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment from adoption of ASU 2014-09 | 2,017 | 2,017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 24,418,252 | $ | 244 | (2,671,962 | ) | $ | (124,794 | ) | $ | 452,573 | $ | 196,106 | $ | 16,495 | $ | 540,624 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 41,743 | (1,559 | ) | 40,184 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net of cancellations | 347,589 | 4 | 20,171 | 1,828 | (1,832 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 47,904 | 1 | 1,243 | 1,244 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 22,854 | 22,854 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares redeemed for employee tax withholdings | (111,511 | ) | (5,382 | ) | (5,382 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other capital contributions | 160 | 160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | (210,437 | ) | (2 | ) | (14,217 | ) | (14,219 | ) | Share repurchases | (2,037,752) | (20) | (121,288) | (121,308) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 24,603,308 | $ | 247 | (2,763,302 | ) | $ | (128,348 | ) | $ | 460,781 | $ | 237,849 | $ | 14,936 | $ | 585,465 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | 22,231,593 | $ | 223 | (2,953,147) | $ | (137,556) | $ | 318,706 | $ | 352,548 | $ | 18,119 | $ | 552,040 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 75,552 | $ | 62,987 | $ | (23,840) | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 27,359 | 25,978 | 30,222 | ||||||||||||||
Non-cash lease expense | 6,369 | 6,967 | 7,763 | ||||||||||||||
Lease-related impairment charges | 211 | — | 13,217 | ||||||||||||||
Share-based compensation | 30,971 | 25,857 | 24,081 | ||||||||||||||
Amortization of debt discount and issuance costs | 1,169 | 794 | 793 | ||||||||||||||
Goodwill impairment charges | — | — | 59,816 | ||||||||||||||
Allowances for doubtful accounts | 141 | 13 | 1,050 | ||||||||||||||
Deferred income taxes | 18,784 | 12,480 | (9,859) | ||||||||||||||
Gain on sale of property and equipment, excluding transaction costs | (1,111) | (343) | (25) | ||||||||||||||
(Gain) loss on sales of businesses, excluding transaction costs | — | (32,824) | 1,603 | ||||||||||||||
Change in fair value of contingent consideration liabilities | (359) | 173 | — | ||||||||||||||
Change in fair value of preferred stock investment | (26,964) | — | (1,667) | ||||||||||||||
Other, net | 6 | (78) | — | ||||||||||||||
Changes in operating assets and liabilities, net of acquisitions and divestitures: | |||||||||||||||||
(Increase) decrease in receivables from clients, net | (25,847) | (39,845) | 33,051 | ||||||||||||||
(Increase) decrease in unbilled services, net | (51,359) | (38,820) | 18,876 | ||||||||||||||
(Increase) decrease in current income tax receivable / payable, net | 7,673 | (2,723) | (3,662) | ||||||||||||||
(Increase) decrease in other assets | 2,532 | (2,670) | (11,972) | ||||||||||||||
Increase (decrease) in accounts payable and accrued liabilities | (13,466) | 10,394 | (7,786) | ||||||||||||||
Increase (decrease) in accrued payroll and related benefits | 32,770 | (2,636) | (1,169) | ||||||||||||||
Increase (decrease) in deferred revenues | 969 | (7,717) | 6,246 | ||||||||||||||
Net cash provided by operating activities | 85,400 | 17,987 | 136,738 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment | (12,547) | (10,871) | (8,125) | ||||||||||||||
Investments in life insurance policies | (872) | (1,245) | (2,462) | ||||||||||||||
Distributions from life insurance policies | 3,377 | — | — | ||||||||||||||
Purchases of businesses, net of cash acquired | (3,448) | (44,819) | (8,701) | ||||||||||||||
Purchases of investment securities | — | — | (13,000) | ||||||||||||||
Capitalization of internally developed software costs | (11,752) | (4,889) | (8,272) | ||||||||||||||
Proceeds from note receivable | 154 | — | — | ||||||||||||||
Proceeds from sale of property and equipment | 4,753 | 408 | 25 | ||||||||||||||
Divestitures of business | 207 | 41,273 | (1,499) | ||||||||||||||
Net cash used in investing activities | (20,128) | (20,143) | (42,034) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from exercises of stock options | 1,421 | 804 | 1,003 | ||||||||||||||
Shares redeemed for employee tax withholdings | (7,795) | (10,103) | (7,903) | ||||||||||||||
Share repurchases | (120,393) | (64,612) | (27,141) | ||||||||||||||
Proceeds from bank borrowings | 314,000 | 235,000 | 283,000 | ||||||||||||||
Repayments of bank borrowings | (256,780) | (205,499) | (288,574) | ||||||||||||||
Payments for debt issuance costs | (2,686) | — | — | ||||||||||||||
Deferred payments on business acquisitions | (1,875) | — | — | ||||||||||||||
Net cash used in financing activities | (74,108) | (44,410) | (39,615) | ||||||||||||||
Effect of exchange rate changes on cash | (111) | 170 | 484 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (8,947) | (46,396) | 55,573 | ||||||||||||||
Cash and cash equivalents at beginning of the period | 20,781 | 67,177 | 11,604 | ||||||||||||||
Cash and cash equivalents at end of the period | $ | 11,834 | $ | 20,781 | $ | 67,177 | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Property and equipment expenditures and capitalized software included in accounts payable, accrued expenses and accrued payroll and related benefits | $ | 3,784 | $ | 4,733 | $ | 1,178 | |||||||||||
Contingent consideration related to purchases of businesses | $ | 1,185 | $ | 1,800 | $ | 1,770 | |||||||||||
Common stock issued related to purchase of business | $ | — | $ | 3,323 | $ | — | |||||||||||
Share repurchases included in accounts payable | $ | 1,107 | $ | 191 | $ | — | |||||||||||
Cash paid during the year for: | |||||||||||||||||
Interest | $ | 12,246 | $ | 7,976 | $ | 8,309 | |||||||||||
Income taxes | $ | 13,485 | $ | 8,449 | $ | 4,721 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 41,743 | $ | 13,646 | $ | (170,117 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 34,405 | 39,311 | 50,089 | ||||||||
Non-cash lease expense | 8,397 | — | — | ||||||||
Share-based compensation | 24,213 | 18,818 | 14,838 | ||||||||
Amortization of debt discount and issuance costs | 8,264 | 10,313 | 10,203 | ||||||||
Goodwill impairment charges | — | — | 253,093 | ||||||||
Allowances for doubtful accounts and unbilled services | 250 | 657 | 3,217 | ||||||||
Deferred income taxes | 8,795 | 10,717 | (53,753 | ) | |||||||
Loss (gain) on sale of businesses | — | 5,807 | (931 | ) | |||||||
Change in fair value of contingent consideration liabilities | (1,506 | ) | 381 | 1,111 | |||||||
Other, net | 16 | — | — | ||||||||
Changes in operating assets and liabilities, net of acquisitions and divestiture: | |||||||||||
(Increase) decrease in receivables from clients | (10,123 | ) | (10,509 | ) | 1,650 | ||||||
(Increase) decrease in unbilled services | (10,269 | ) | (11,094 | ) | (4,332 | ) | |||||
(Increase) decrease in current income tax receivable / payable, net | 4,442 | (2,607 | ) | 210 | |||||||
(Increase) decrease in other assets | (144 | ) | (1,361 | ) | (366 | ) | |||||
Increase (decrease) in accounts payable and accrued liabilities | (6,884 | ) | (8,212 | ) | 3,732 | ||||||
Increase (decrease) in accrued payroll and related benefits | 30,339 | 35,481 | (10,966 | ) | |||||||
Increase (decrease) in deferred revenues | 282 | 310 | 2,117 | ||||||||
Net cash provided by operating activities | 132,220 | 101,658 | 99,795 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment, net | (13,240 | ) | (8,936 | ) | (24,402 | ) | |||||
Investment in life insurance policies | (4,703 | ) | (2,037 | ) | (1,826 | ) | |||||
Distributions from life insurance policies | — | — | 2,889 | ||||||||
Purchases of businesses, net of cash acquired | (2,500 | ) | (215 | ) | (106,915 | ) | |||||
Purchase of investment securities | (5,000 | ) | — | — | |||||||
Capitalization of internally developed software | (10,312 | ) | (6,069 | ) | (1,370 | ) | |||||
Proceeds from note receivable | — | 1,040 | 1,177 | ||||||||
Proceeds from sale of property and equipment | 753 | — | — | ||||||||
Divestitures of businesses, net of cash sold | — | (2,345 | ) | 1,499 | |||||||
Net cash used in investing activities | (35,002 | ) | (18,562 | ) | (128,948 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from exercises of stock options | 1,244 | 937 | — | ||||||||
Shares redeemed for employee tax withholdings | (5,382 | ) | (3,187 | ) | (4,846 | ) | |||||
Share repurchases | (12,985 | ) | — | — | |||||||
Proceeds from bank borrowings | 347,000 | 204,300 | 277,500 | ||||||||
Repayments of bank borrowings | (192,515 | ) | (259,801 | ) | (240,745 | ) | |||||
Repayment of convertible notes | (250,000 | ) | — | — | |||||||
Payments for debt issuance costs | (1,524 | ) | (1,385 | ) | (408 | ) | |||||
Payments for contingent consideration liabilities | (4,674 | ) | (7,554 | ) | (2,680 | ) | |||||
Net cash provided by (used in) financing activities | (118,836 | ) | (66,690 | ) | 28,821 | ||||||
Effect of exchange rate changes on cash | 115 | (208 | ) | 214 | |||||||
Net increase (decrease) in cash and cash equivalents | (21,503 | ) | 16,198 | (118 | ) | ||||||
Cash and cash equivalents at beginning of the period | 33,107 | 16,909 | 17,027 | ||||||||
Cash and cash equivalents at end of the period | $ | 11,604 | $ | 33,107 | $ | 16,909 | |||||
Supplemental disclosure of cash flow information: | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Property and equipment expenditures and capitalized software included in accounts payable and accrued expenses | $ | 2,600 | $ | 2,358 | $ | 1,567 | |||||
Promissory note assumed for purchase of property and equipment | $ | — | $ | — | $ | 5,113 | |||||
Contingent consideration related to business acquisitions | $ | — | $ | 212 | $ | 15,489 | |||||
Common stock issued related to business acquisition | $ | — | $ | — | $ | 9,560 | |||||
Share repurchases included in accounts payable | $ | 1,234 | $ | — | $ | — | |||||
Cash paid during the year for: | |||||||||||
Interest | $ | 7,971 | $ | 8,887 | $ | 9,068 | |||||
Income taxes | $ | 1,429 | $ | 3,349 | $ | 5,399 |
As of December 31, 2018 | ASC 842 Adjustment | As of January 1, 2019 | |||||||||
Assets | |||||||||||
Operating lease right-of-use assets | $ | — | $ | 56,463 | $ | 56,463 | |||||
Liabilities | |||||||||||
Accrued expenses and other current liabilities | $ | 17,207 | $ | (2,557 | ) | $ | 14,650 | ||||
Current maturities of operating lease liabilities | $ | — | $ | 10,537 | $ | 10,537 | |||||
Deferred compensation and other liabilities | $ | 20,875 | $ | (536 | ) | $ | 20,339 | ||||
Deferred lease incentives | $ | 13,693 | $ | (13,693 | ) | $ | — | ||||
Operating lease liabilities, net of current portion | $ | — | $ | 62,712 | $ | 62,712 |
Fair value of consideration transferred | March 1, 2017 | ||
Cash | $ | 90,725 | |
Common stock | 9,560 | ||
Contingent consideration liability | 12,050 | ||
Net working capital adjustment | 1,272 | ||
Total consideration transferred | $ | 113,607 |
March 1, 2017 | |||
Assets acquired: | |||
Accounts receivable | $ | 7,752 | |
Unbilled services | 1,881 | ||
Prepaid expenses and other current assets | 468 | ||
Property and equipment | 419 | ||
Intangible assets | 18,015 | ||
Liabilities assumed: | |||
Accounts payable | 531 | ||
Accrued expenses and other current liabilities | 894 | ||
Accrued payroll and related benefits | 883 | ||
Deferred revenues | 30 | ||
Total identifiable net assets | 26,197 | ||
Goodwill | 87,410 | ||
Total purchase price | $ | 113,607 |
Fair Value | Useful Life in Years | ||||
Customer relationships | $ | 9,500 | 6 | ||
Trade name | 6,000 | 6 | |||
Customer contracts | 1,000 | 1 | |||
Non-compete agreements | 1,300 | 5 | |||
Favorable lease contract | 215 | 1 | |||
Total intangible assets subject to amortization | $ | 18,015 |
Year Ended December 31, 2017 | |||
Revenues | $ | 741,695 | |
Net income (loss) from continuing operations | $ | (167,346 | ) |
Net income (loss) from continuing operations per share - basic | $ | (7.79 | ) |
Net income (loss) from continuing operations per share - diluted | $ | (7.79 | ) |
Healthcare | Education | Commercial(1) | Total | |||||||||||||||||||||||
Balance as of December 31, 2020: | ||||||||||||||||||||||||||
Goodwill | $ | 636,810 | $ | 104,384 | $ | 308,935 | $ | 1,050,129 | ||||||||||||||||||
Accumulated impairment losses | (208,081) | — | (247,811) | (455,892) | ||||||||||||||||||||||
Goodwill, net as of December 31, 2020 | $ | 428,729 | $ | 104,384 | $ | 61,124 | $ | 594,237 | ||||||||||||||||||
Goodwill recorded in connection with a business combination (2) | 6,141 | 17,186 | 3,315 | 26,642 | ||||||||||||||||||||||
Balance as of December 31, 2021: | ||||||||||||||||||||||||||
Goodwill | 642,951 | 121,570 | 312,250 | 1,076,771 | ||||||||||||||||||||||
Accumulated impairment losses | (208,081) | — | (247,811) | (455,892) | ||||||||||||||||||||||
Goodwill, net as of December 31, 2021 | $ | 434,870 | $ | 121,570 | $ | 64,439 | $ | 620,879 | ||||||||||||||||||
Goodwill reallocation, net(1) | 18,057 | (1,417) | (16,640) | — | ||||||||||||||||||||||
Goodwill recorded in connection with business combinations (2) | 1,287 | 2,082 | 718 | 4,087 | ||||||||||||||||||||||
Balance as of December 31, 2022: | ||||||||||||||||||||||||||
Goodwill | 644,238 | 123,652 | 312,968 | 1,080,858 | ||||||||||||||||||||||
Accumulated impairment losses | (190,024) | (1,417) | (264,451) | (455,892) | ||||||||||||||||||||||
Goodwill, net as of December 31, 2022: | $ | 454,214 | $ | 122,235 | $ | 48,517 | $ | 624,966 |
Healthcare | Business Advisory | Education | Total | |||||||||||||
Balance as of December 31, 2017: | ||||||||||||||||
Goodwill | $ | 636,810 | $ | 302,187 | $ | 102,829 | $ | 1,041,826 | ||||||||
Accumulated impairment losses | (208,081 | ) | (187,995 | ) | — | (396,076 | ) | |||||||||
Goodwill, net as of December 31, 2017 | $ | 428,729 | $ | 114,192 | $ | 102,829 | $ | 645,750 | ||||||||
Goodwill recorded in connection with a business combination | — | 186 | — | 186 | ||||||||||||
Foreign currency translation | — | (673 | ) | — | (673 | ) | ||||||||||
Balance as of December 31, 2018: | ||||||||||||||||
Goodwill | 636,810 | 301,700 | 102,829 | 1,041,339 | ||||||||||||
Accumulated impairment losses | (208,081 | ) | (187,995 | ) | — | (396,076 | ) | |||||||||
Goodwill, net as of December 31, 2018 | $ | 428,729 | $ | 113,705 | $ | 102,829 | $ | 645,263 | ||||||||
Goodwill recorded in connection with a business combination (1) | — | — | 1,060 | 1,060 | ||||||||||||
Foreign currency translation | — | 357 | — | 357 | ||||||||||||
Balance as of December 31, 2019: | ||||||||||||||||
Goodwill | 636,810 | 302,057 | 103,889 | 1,042,756 | ||||||||||||
Accumulated impairment losses | (208,081 | ) | (187,995 | ) | — | (396,076 | ) | |||||||||
Goodwill, net as of December 31, 2019: | $ | 428,729 | $ | 114,062 | $ | 103,889 | $ | 646,680 |
As of December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||
Customer relationships | 3 to 13 | $ | 87,577 | $ | 61,882 | $ | 98,235 | $ | 60,462 | ||||||||
Trade names | 5 to 6 | 28,930 | 25,894 | 28,930 | 23,181 | ||||||||||||
Technology and software | 3 to 5 | 5,694 | 4,321 | 5,694 | 2,842 | ||||||||||||
Non-competition agreements | 5 | 2,220 | 1,447 | 3,650 | 2,241 | ||||||||||||
Customer contracts | 2 | 800 | 52 | — | — | ||||||||||||
Favorable lease contract | 3 | — | — | 720 | 646 | ||||||||||||
Total | $ | 125,221 | $ | 93,596 | $ | 137,229 | $ | 89,372 |
As of December 31, | |||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
Useful Life in Years | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||||||||
Customer relationships | 5 to 13 | $ | 74,583 | $ | 57,219 | $ | 75,908 | $ | 53,421 | ||||||||||||||||||||
Technology and software | 2 to 5 | 13,330 | 7,975 | 13,330 | 5,607 | ||||||||||||||||||||||||
Trade names | 6 | 6,000 | 5,907 | 6,000 | 5,148 | ||||||||||||||||||||||||
Non-competition agreements | 2 to 5 | 920 | 340 | 2,020 | 1,347 | ||||||||||||||||||||||||
Customer contracts | 1 | — | — | 260 | 101 | ||||||||||||||||||||||||
Total | $ | 94,833 | $ | 71,441 | $ | 97,518 | $ | 65,624 |
Year Ending December 31, | Estimated Amortization Expense | |||
2020 | $ | 12,638 | ||
2021 | $ | 8,379 | ||
2022 | $ | 6,111 | ||
2023 | $ | 3,512 | ||
2024 | $ | 741 |
Year Ending December 31, | Estimated Amortization Expense | |||||||
2023 | $ | 8,122 | ||||||
2024 | $ | 4,674 | ||||||
2025 | $ | 3,503 | ||||||
2026 | $ | 2,519 | ||||||
2027 | $ | 1,773 |
As of December 31, | ||||||||||||||
Balance Sheet | 2022 | 2021 | ||||||||||||
Operating lease right-of-use assets | $ | 30,304 | $ | 35,311 | ||||||||||
Current maturities of operating lease liabilities | $ | 10,530 | $ | 10,142 | ||||||||||
Operating lease liabilities, net of current portion | 45,556 | 54,313 | ||||||||||||
Total lease liabilities | $ | 56,086 | $ | 64,455 |
Year Ended December 31, | ||||||||||||||||||||
Lease Cost | 2022 | 2021 | 2020 | |||||||||||||||||
Operating lease cost | $ | 8,877 | $ | 9,755 | $ | 11,045 | ||||||||||||||
Short-term leases (1) | 263 | 225 | 229 | |||||||||||||||||
Variable lease costs | 4,587 | 3,765 | 1,693 | |||||||||||||||||
Sublease income | (1,921) | (1,660) | (1,973) | |||||||||||||||||
Net lease cost (2)(3) | $ | 11,806 | $ | 12,085 | $ | 10,994 | ||||||||||||||
Balance Sheet | December 31, 2019 | |||
Operating lease right-of-use assets | $ | 54,954 | ||
Current maturities of operating lease liabilities | $ | 7,469 | ||
Operating lease liabilities, net of current portion | 69,233 | |||
Total lease liabilities | $ | 76,702 |
Lease Cost | Year Ended December 31, 2019 | |||
Operating lease cost | $ | 11,883 | ||
Short-term leases (1) | 322 | |||
Variable lease costs | 3,656 | |||
Sublease income | (2,638 | ) | ||
Net lease cost (2)(3)(4) | $ | 13,223 |
Future Lease Payments | December 31, 2022 | |||||||
2023 | $ | 12,618 | ||||||
2024 | 12,039 | |||||||
2025 | 11,728 | |||||||
2026 | 10,941 | |||||||
2027 | 7,825 | |||||||
Thereafter | 7,211 | |||||||
Total operating lease payments | $ | 62,362 | ||||||
Less: imputed interest | (6,276) | |||||||
Present value of operating lease liabilities | $ | 56,086 |
Year Ended December 31, | ||||||||||||||||||||
Other Information | 2022 | 2021 | 2020 | |||||||||||||||||
Cash paid for operating lease liabilities | $ | 12,634 | $ | 12,573 | $ | 11,307 | ||||||||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 1,908 | $ | 2,960 | $ | 1,456 | ||||||||||||||
Weighted average remaining lease term - operating leases | 5.3 years | 6.1 years | 7.0 years | |||||||||||||||||
Weighted average discount rate - operating leases | 4.2 | % | 4.1 | % | 4.3 | % |
Future Lease Payments | December 31, 2019 | |||
2020 | $ | 9,772 | ||
2021 | 12,039 | |||
2022 | 11,502 | |||
2023 | 11,470 | |||
2024 | 10,893 | |||
Thereafter | 35,211 | |||
Total operating lease payments | $ | 90,887 | ||
Less: imputed interest | (14,185 | ) | ||
Present value of operating lease liabilities | $ | 76,702 |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
Computers, related equipment, and software | $ | 35,296 | $ | 33,682 | |||||||
Leasehold improvements | 37,202 | 40,336 | |||||||||
Furniture and fixtures | 11,386 | 12,023 | |||||||||
Aircraft | — | 6,800 | |||||||||
Assets under construction | 289 | 1,113 | |||||||||
Property and equipment | 84,173 | 93,954 | |||||||||
Accumulated depreciation and amortization | (58,066) | (62,950) | |||||||||
Property and equipment, net | $ | 26,107 | $ | 31,004 |
Lease Payments | December 31, 2018 (1) | |||
2019 | $ | 13,701 | ||
2020 | 12,724 | |||
2021 | 11,590 | |||
2022 | 10,766 | |||
2023 | 10,707 | |||
Thereafter | 27,033 | |||
Total | $ | 86,521 |
Other Information | Year Ended December 31, 2019 | |||
Cash paid for operating lease liabilities | $ | 13,902 | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 12,842 | ||
Weighted average remaining lease term - operating leases | 7.7 years | |||
Weighted average discount rate - operating leases | 4.3 | % |
As of December 31, | |||||||
2019 | 2018 | ||||||
Computers, related equipment, and software | $ | 50,251 | $ | 53,116 | |||
Leasehold improvements | 44,323 | 45,052 | |||||
Furniture and fixtures | 16,273 | 17,408 | |||||
Aircraft | 7,667 | 7,541 | |||||
Assets under construction | 250 | 250 | |||||
Property and equipment | 118,764 | 123,367 | |||||
Accumulated depreciation and amortization | (80,351 | ) | (82,993 | ) | |||
Property and equipment, net | $ | 38,413 | $ | 40,374 |
As of December 31, | |||||||
2019 | 2018 | ||||||
1.25% convertible senior notes due 2019 | $ | — | $ | 242,617 | |||
Senior secured credit facility | 205,000 | 50,000 | |||||
Promissory note due 2024 | 3,853 | 4,368 | |||||
Total long-term debt | $ | 208,853 | $ | 296,985 | |||
Current maturities of long-term debt | (529 | ) | (243,132 | ) | |||
Long-term debt, net of current portion | $ | 208,324 | $ | 53,853 |
Principal Payments of Long-Term Debt | |||
2020 | $ | 529 | |
2021 | $ | 544 | |
2022 | $ | 559 | |
2023 | $ | 575 | |
2024 | $ | 206,646 |
As of December 31, 2018 | ||||
Liability component: | ||||
Proceeds | $ | 250,000 | ||
Less: debt discount, net of amortization | (6,436 | ) | ||
Less: debt issuance costs, net of amortization | (947 | ) | ||
Net carrying amount | $ | 242,617 | ||
Equity component (1) | $ | 39,287 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Contractual interest coupon | $ | 2,344 | $ | 3,125 | $ | 3,125 | |||||
Amortization of debt discount | 6,436 | 8,232 | 7,851 | ||||||||
Amortization of debt issuance costs | 947 | 1,245 | 1,224 | ||||||||
Total interest expense | $ | 9,727 | $ | 12,602 | $ | 12,200 |
As of December 31, | |||||||||||
2022 | 2021 | ||||||||||
Senior secured credit facility | $ | 290,000 | $ | 230,000 | |||||||
Promissory note due 2024 | — | 2,780 | |||||||||
Total long-term debt | $ | 290,000 | $ | 232,780 | |||||||
Current maturities of long-term debt | — | (559) | |||||||||
Long-term debt, net of current portion | $ | 290,000 | $ | 232,221 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net income (loss) from continuing operations | $ | 41,979 | $ | 13,944 | $ | (170,505 | ) | ||||
Income (loss) from discontinued operations, net of tax | (236 | ) | (298 | ) | 388 | ||||||
Net income (loss) | $ | 41,743 | $ | 13,646 | $ | (170,117 | ) | ||||
Weighted average common shares outstanding—basic | 21,993 | 21,706 | 21,439 | ||||||||
Weighted average common stock equivalents | 514 | 352 | — | ||||||||
Weighted average common shares outstanding—diluted | 22,507 | 22,058 | 21,439 | ||||||||
Net earnings (loss) per basic share: | |||||||||||
Net income (loss) from continuing operations | $ | 1.91 | $ | 0.64 | $ | (7.95 | ) | ||||
Income (loss) from discontinued operations, net of tax | (0.01 | ) | (0.01 | ) | 0.02 | ||||||
Net income (loss) | $ | 1.90 | $ | 0.63 | $ | (7.93 | ) | ||||
Net earnings (loss) per diluted share: | |||||||||||
Net income (loss) from continuing operations | $ | 1.87 | $ | 0.63 | $ | (7.95 | ) | ||||
Income (loss) from discontinued operations, net of tax | (0.02 | ) | (0.01 | ) | 0.02 | ||||||
Net income (loss) | $ | 1.85 | $ | 0.62 | $ | (7.93 | ) |
As of December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Unvested restricted stock awards | — | — | 636 | |||||
Outstanding common stock options | — | — | 194 | |||||
Convertible senior notes | — | 3,129 | 3,129 | |||||
Warrants related to the issuance of convertible senior notes | 3,129 | 3,129 | 3,129 | |||||
Total anti-dilutive securities | 3,129 | 6,258 | 7,088 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income (loss) from continuing operations | $ | 75,552 | $ | 62,987 | $ | (23,718) | |||||||||||
Loss from discontinued operations, net of tax | — | — | (122) | ||||||||||||||
Net income (loss) | $ | 75,552 | $ | 62,987 | $ | (23,840) | |||||||||||
Weighted average common shares outstanding—basic | 20,249 | 21,439 | 21,882 | ||||||||||||||
Weighted average common stock equivalents | 497 | 370 | — | ||||||||||||||
Weighted average common shares outstanding—diluted | 20,746 | 21,809 | 21,882 | ||||||||||||||
Net earnings (loss) per basic share: | |||||||||||||||||
Net income (loss) from continuing operations | $ | 3.73 | $ | 2.94 | $ | (1.08) | |||||||||||
Loss from discontinued operations, net of tax | — | — | (0.01) | ||||||||||||||
Net income (loss) | $ | 3.73 | $ | 2.94 | $ | (1.09) | |||||||||||
Net earnings (loss) per diluted share: | |||||||||||||||||
Net income (loss) from continuing operations | $ | 3.64 | $ | 2.89 | $ | (1.08) | |||||||||||
Loss from discontinued operations, net of tax | — | — | (0.01) | ||||||||||||||
Net income (loss) | $ | 3.64 | $ | 2.89 | $ | (1.09) |
Employee Costs | Office Space Reductions | Other | Total | ||||||||||||
Balance as of December 31, 2017 | $ | 1,267 | $ | 4,247 | $ | — | $ | 5,514 | |||||||
Additions (1) (2) | 2,102 | 677 | 191 | 2,970 | |||||||||||
Payments | (2,879 | ) | (3,284 | ) | (191 | ) | (6,354 | ) | |||||||
Adjustments (1) (2) | (47 | ) | 828 | — | 781 | ||||||||||
Balance as of December 31, 2018 | 443 | 2,468 | — | 2,911 | |||||||||||
Adoption of ASC 842 (3) | — | (1,119 | ) | — | (1,119 | ) | |||||||||
Balance as of January 1, 2019 | 443 | 1,349 | — | 1,792 | |||||||||||
Additions (2) | 636 | 9 | — | 645 | |||||||||||
Payments | (995 | ) | (383 | ) | — | (1,378 | ) | ||||||||
Adjustments (2) | (16 | ) | (884 | ) | — | (900 | ) | ||||||||
Balance as of December 31, 2019 | $ | 68 | $ | 91 | $ | — | $ | 159 |
Employee Costs | Office Space Reductions | Other | Total | ||||||||||||||||||||
Balance as of December 31, 2020 | $ | 2,447 | $ | 84 | $ | 893 | $ | 3,424 | |||||||||||||||
Additions (1) | 8,132 | — | 1,156 | 9,288 | |||||||||||||||||||
Payments | (9,993) | (84) | (1,482) | (11,559) | |||||||||||||||||||
Adjustments (1) | (13) | — | — | (13) | |||||||||||||||||||
Balance as of December 31, 2021 | 573 | — | 567 | 1,140 | |||||||||||||||||||
Additions (1) | 5,705 | — | 1,279 | 6,984 | |||||||||||||||||||
Payments | (2,538) | (201) | (1,318) | (4,057) | |||||||||||||||||||
Adjustments (1) | 11 | 201 | 40 | 252 | |||||||||||||||||||
Balance as of December 31, 2022 | $ | 3,751 | $ | — | $ | 568 | $ | 4,319 |
(1) |
Additions and adjustments exclude non-cash items |
Fair Value (Derivative Asset and Liability) As of December 31, | |||||||
Balance Sheet Location | 2019 | 2018 | |||||
Prepaid expenses and other current assets | $ | — | $ | 302 | |||
Other non-current assets | $ | — | $ | 451 | |||
Accrued expenses | $ | 159 | $ | — | |||
Deferred compensation and other liabilities | $ | 387 | $ | — |
Fair Value | |||||||||||||||||
Derivative Instrument | Balance Sheet Location | December 31, 2022 | December 31, 2021 | ||||||||||||||
Interest rate swaps | Prepaid expenses and other current assets | $ | 7,108 | $ | — | ||||||||||||
Interest rate swaps | Other non-current assets | 5,131 | 1,210 | ||||||||||||||
Total Assets | $ | 12,239 | $ | 1,210 | |||||||||||||
Interest rate swaps | Accrued expenses and other current liabilities | $ | — | $ | 1,604 | ||||||||||||
Interest rate swaps | Deferred compensation and other liabilities | — | 149 | ||||||||||||||
Foreign exchange forward contracts | Accrued expenses and other current liabilities | 120 | — | ||||||||||||||
Total Liabilities | $ | 120 | $ | 1,753 |
Level 1 Inputs | Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||
Level 2 Inputs | Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||
Level 3 Inputs | Unobservable inputs for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
December 31, 2019 | |||||||||||||||
Assets: | |||||||||||||||
Convertible debt investment | $ | — | $ | — | $ | 49,542 | $ | 49,542 | |||||||
Deferred compensation assets | — | 27,445 | — | 27,445 | |||||||||||
Total assets | $ | — | $ | 27,445 | $ | 49,542 | $ | 76,987 | |||||||
Liabilities: | |||||||||||||||
Interest rate swap | $ | — | $ | 546 | $ | — | $ | 546 | |||||||
Total liabilities | $ | — | $ | 546 | $ | — | $ | 546 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
December 31, 2018 | |||||||||||||||
Assets: | |||||||||||||||
Interest rate swap | $ | — | $ | 753 | $ | — | $ | 753 | |||||||
Convertible debt investment | — | — | 50,429 | 50,429 | |||||||||||
Deferred compensation assets | — | 18,205 | — | 18,205 | |||||||||||
Total assets | $ | — | $ | 18,958 | $ | 50,429 | $ | 69,387 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration for business acquisitions | $ | — | $ | — | $ | 11,441 | $ | 11,441 | |||||||
Total liabilities | $ | — | $ | — | $ | 11,441 | $ | 11,441 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate swap | $ | — | $ | 12,239 | $ | — | $ | 12,239 | |||||||||||||||
Convertible debt investment | — | — | 57,563 | 57,563 | |||||||||||||||||||
Deferred compensation assets | — | 29,875 | — | 29,875 | |||||||||||||||||||
Total assets | $ | — | $ | 42,114 | $ | 57,563 | $ | 99,677 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 120 | $ | — | $ | 120 | |||||||||||||||
Contingent consideration for business acquisition | — | — | 3,190 | 3,190 | |||||||||||||||||||
Total liabilities | $ | — | $ | 120 | $ | 3,190 | $ | 3,310 | |||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate swap | $ | — | $ | 627 | $ | — | $ | 627 | |||||||||||||||
Convertible debt investment | — | — | 65,918 | 65,918 | |||||||||||||||||||
Deferred compensation assets | — | 39,430 | — | 39,430 | |||||||||||||||||||
Total assets | $ | — | $ | 40,057 | $ | 65,918 | $ | 105,975 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 1,170 | $ | — | $ | 1,170 | |||||||||||||||
Contingent consideration for business acquisition | — | — | 3,743 | 3,743 | |||||||||||||||||||
Total liabilities | $ | — | $ | 1,170 | $ | 3,743 | $ | 4,913 |
Convertible Debt Investment | ||||
Balance as of December 31, 2017 | $ | 39,904 | ||
Change in fair value of convertible debt investment | 10,525 | |||
Balance as of December 31, 2018 | 50,429 | |||
Change in fair value of convertible debt investment | (887 | ) | ||
Balance as of December 31, 2019 | $ | 49,542 |
Convertible Debt Investment | ||||||||
Balance as of December 31, 2020 | $ | 64,364 | ||||||
Change in fair value of convertible debt investment | 1,554 | |||||||
Balance as of December 31, 2021 | 65,918 | |||||||
Change in fair value of convertible debt investment | (8,355) | |||||||
Balance as of December 31, 2022 | $ | 57,563 |
Contingent Consideration for Business Acquisitions | ||||
Balance as of December 31, 2017 | $ | 22,828 | ||
Acquisitions | 212 | |||
Payments | (11,974 | ) | ||
Remeasurement of contingent consideration for business acquisitions | 381 | |||
Unrealized gain due to foreign currency translation | (6 | ) | ||
Balance as of December 31, 2018 | 11,441 | |||
Payments | (10,041 | ) | ||
Remeasurement of contingent consideration for business acquisitions | (1,506 | ) | ||
Unrealized loss due to foreign currency translation | 106 | |||
Balance as of December 31, 2019 | $ | — |
Contingent Consideration for Business Acquisitions | ||||||||
Balance as of December 31, 2020 | $ | 1,770 | ||||||
Acquisition | 1,800 | |||||||
Change in fair value | 173 | |||||||
Balance as of December 31, 2021 | 3,743 | |||||||
Acquisition | 1,185 | |||||||
Payment | (1,379) | |||||||
Change in fair value | (359) | |||||||
Balance as of December 31, 2022 | $ | 3,190 |
December 31, 2018 | |||||||
Carrying Amount | Estimated Fair Value | ||||||
1.25% convertible senior notes due 2019 | $ | 242,617 | $ | 242,940 |
Cash Flow Hedges(1) | |||||||||||||||||||||||||||||
Foreign Currency Translation | Available-for- Sale Investments | Interest Rate Swaps | Foreign Exchange Forward Contracts | Total | |||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | (566) | $ | 15,882 | $ | (380) | $ | — | $ | 14,936 | |||||||||||||||||||
Foreign currency translation adjustment, net of tax of $0 | 348 | — | — | — | 348 | ||||||||||||||||||||||||
Unrealized gain (loss) on investments: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $(499) | — | 1,323 | — | — | 1,323 | ||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $1,693 | — | — | (4,652) | — | (4,652) | ||||||||||||||||||||||||
Reclassification adjustment into earnings, net of tax of $(388) | — | — | 1,106 | — | 1,106 | ||||||||||||||||||||||||
Balance as of December 31, 2020 | (218) | 17,205 | (3,926) | — | 13,061 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of $0 | 157 | — | — | — | 157 | ||||||||||||||||||||||||
Reclassification adjustments into earnings, net of tax of $0(2) | (1,082) | (1,082) | |||||||||||||||||||||||||||
Unrealized gain (loss) on investments: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $(385) | — | 1,169 | — | — | 1,169 | ||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $(641) | — | — | 1,606 | — | 1,606 | ||||||||||||||||||||||||
Reclassification adjustment into earnings, net of tax of $(678) | — | — | 1,929 | — | 1,929 | ||||||||||||||||||||||||
Balance as of December 31, 2021 | (1,143) | 18,374 | (391) | — | 16,840 | ||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax of $0 | (1,890) | — | — | — | (1,890) | ||||||||||||||||||||||||
Unrealized gain (loss) on investments: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $2,209 | — | (6,146) | — | — | (6,146) | ||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $(3,555) | — | — | 9,892 | — | 9,892 | ||||||||||||||||||||||||
Reclassification adjustment into earnings, net of tax of $176 | — | — | (489) | — | (489) | ||||||||||||||||||||||||
Foreign exchange forward contracts: | |||||||||||||||||||||||||||||
Change in fair value, net of tax of $43 | — | — | (120) | (120) | |||||||||||||||||||||||||
Reclassification adjustment into earnings, net of tax of $(11) | — | — | 32 | 32 | |||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | (3,033) | $ | 12,228 | $ | 9,012 | $ | (88) | $ | 18,119 |
Foreign Currency Translation | Available-for- Sale Investments | Cash Flow Hedges (1) | Total | ||||||||||||
Balance as of December 31, 2016 | $ | (453 | ) | $ | 4,088 | $ | (20 | ) | $ | 3,615 | |||||
Foreign currency translation adjustment, net of tax of $0 | 1,602 | — | — | 1,602 | |||||||||||
Unrealized gain on investments: | |||||||||||||||
Change in fair value, net of tax of $(998) | — | 4,231 | — | 4,231 | |||||||||||
Reclassification adjustment into retained earnings (2) | — | 493 | — | 493 | |||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||
Change in fair value, net of tax of $(106) | — | — | 366 | 366 | |||||||||||
Reclassification adjustment into earnings, net of tax of $(46) | — | — | 69 | 69 | |||||||||||
Reclassification adjustment into retained earnings (2) | — | — | (6 | ) | (6 | ) | |||||||||
Balance as of December 31, 2017 | 1,149 | 8,812 | 409 | 10,370 | |||||||||||
Foreign currency translation adjustment, net of tax of $0 | (1,814 | ) | — | — | (1,814 | ) | |||||||||
Unrealized gain on investments: | |||||||||||||||
Change in fair value, net of tax of $(2,753) | — | 7,772 | — | 7,772 | |||||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||
Change in fair value, net of tax of $(63) | — | — | 197 | 197 | |||||||||||
Reclassification adjustment into earnings, net of tax of $(10) | — | — | (30 | ) | (30 | ) | |||||||||
Balance as of December 31, 2018 | (665 | ) | 16,584 | 576 | 16,495 | ||||||||||
Foreign currency translation adjustment, net of tax of $0 | 99 | — | — | 99 | |||||||||||
Unrealized gain (loss) on investments: | |||||||||||||||
Change in fair value, net of tax of $185 | — | (702 | ) | — | (702 | ) | |||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||||||
Change in fair value, net of tax of $295 | — | — | (819 | ) | (819 | ) | |||||||||
Reclassification adjustment into earnings, net of tax of $48 | — | — | (137 | ) | (137 | ) | |||||||||
Balance as of December 31, 2019 | $ | (566 | ) | $ | 15,882 | $ | (380 | ) | $ | 14,936 |
HURON CONSULTING GROUP INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) |
Number of Shares | Weighted Average Grant Date Fair Value (in dollars) | |||||||||||
2012 Omnibus Incentive Plan | Stock Ownership Participation Program | Total | ||||||||||
Nonvested restricted stock at December 31, 2018 | 747 | 11 | 758 | $ | 43.08 | |||||||
Granted | 341 | 12 | 353 | $ | 48.57 | |||||||
Vested | (284 | ) | (10 | ) | (294 | ) | $ | 46.25 | ||||
Forfeited | (30 | ) | (1 | ) | (31 | ) | $ | 45.24 | ||||
Nonvested restricted stock at December 31, 2019 | 774 | 12 | 786 | $ | 44.27 |
Number of Shares | Weighted Average Grant Date Fair Value (in dollars) | ||||||||||||||||||||||
2012 Omnibus Incentive Plan | Stock Ownership Participation Program | Total | |||||||||||||||||||||
Nonvested restricted stock at December 31, 2021 | 868 | 14 | 882 | $ | 53.51 | ||||||||||||||||||
Granted | 565 | 19 | 584 | $ | 49.69 | ||||||||||||||||||
Vested | (343) | (12) | (355) | $ | 50.96 | ||||||||||||||||||
Forfeited | (119) | (3) | (122) | $ | 50.97 | ||||||||||||||||||
Nonvested restricted stock at December 31, 2022 | 971 | 18 | 989 | $ | 52.40 |
Number of Shares | Weighted Average Grant Date Fair Value (in dollars) | ||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value (in dollars) | ||||||||||||||||
Nonvested performance-based stock at December 31, 2018 | 436 | $ | 36.81 | ||||||||||||||
Nonvested performance-based stock at December 31, 2021 | Nonvested performance-based stock at December 31, 2021 | 438 | $ | 53.08 | |||||||||||||
Granted (1) | 281 | $ | 47.93 | Granted (1) | 340 | $ | 48.22 | ||||||||||
Vested | (73 | ) | $ | 40.69 | Vested | (118) | $ | 49.89 | |||||||||
Forfeited (2) | (144 | ) | $ | 36.06 | Forfeited (2) | (182) | $ | 51.97 | |||||||||
Nonvested performance-based stock at December 31, 2019 (3) | 500 | $ | 42.72 | ||||||||||||||
Nonvested performance-based stock at December 31, 2022 (3) | Nonvested performance-based stock at December 31, 2022 (3) | 478 | $ | 50.36 |
2022 | |||||
Black-Scholes performance-based option pricing model: | |||||
Expected dividend yield | —% | ||||
Expected volatility | 40.0% | ||||
Risk-free rate | 1.6% / 2.6% | ||||
Expected option life (in years) | 4.5 years |
Number of Performance-based Options (in thousands) | Weighted Average Exercise Price (in dollars) | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at December 31, 2021 | — | ||||||||||||||||||||||
Granted (2) | 183 | $ | 48.19 | ||||||||||||||||||||
Exercised | — | ||||||||||||||||||||||
Forfeited or expired | (12) | $ | 48.22 | ||||||||||||||||||||
Outstanding at December 31, 2022 (1)(3) | 171 | $ | 48.19 | 6.2 | $ | 4.2 | |||||||||||||||||
Exercisable at December 31, 2022 | — |
Number of Options (in thousands) | Weighted Average Exercise Price (in dollars) | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | |||||||||
Outstanding at December 31, 2018 | 154 | $ | 30.52 | 2.5 | $ | 3.2 | ||||||
Granted | — | |||||||||||
Exercised | (48 | ) | $ | 25.97 | $ | 1.6 | ||||||
Forfeited or expired | — | |||||||||||
Outstanding at December 31, 2019 (1) | 106 | $ | 32.57 | 1.9 | $ | 3.8 | ||||||
Exercisable at December 31, 2019 | 106 | $ | 32.57 | 1.9 | $ | 3.8 |
2021 | |||||
Black-Scholes time-vested option pricing model: | |||||
Expected dividend yield | —% | ||||
Expected volatility | 40.0% | ||||
Risk-free rate | 0.9% | ||||
Expected option life (in years) | 4.75 years |
Number of Time-vested Options (in thousands) | Weighted Average Exercise Price (in dollars) | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at December 31, 2021 | 93 | $ | 46.25 | 4.1 | $ | 0.3 | |||||||||||||||||
Granted | — | ||||||||||||||||||||||
Exercised | (37) | $ | 38.89 | $ | 0.5 | ||||||||||||||||||
Forfeited or expired | — | ||||||||||||||||||||||
Outstanding at December 31, 2022 (1) | 56 | $ | 51.05 | 5.2 | $ | 1.2 | |||||||||||||||||
Exercisable at December 31, 2022 | 19 | $ | 48.15 | 3.9 | $ | 0.5 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Current: | |||||||||||
Federal | $ | 125 | $ | (1,611 | ) | $ | (635 | ) | |||
State | 2,014 | 286 | 545 | ||||||||
Foreign | (422 | ) | 1,885 | 2,040 | |||||||
Total current | 1,717 | 560 | 1,950 | ||||||||
Deferred: | |||||||||||
Federal | 7,467 | 9,742 | (46,103 | ) | |||||||
State | 1,610 | 2,008 | (6,576 | ) | |||||||
Foreign | (282 | ) | (1,033 | ) | (1,270 | ) | |||||
Total deferred | 8,795 | 10,717 | (53,949 | ) | |||||||
Income tax expense for continuing operations | $ | 10,512 | $ | 11,277 | $ | (51,999 | ) |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 7,130 | $ | (934) | $ | (2,480) | |||||||||||
State | 2,987 | 1,974 | 168 | ||||||||||||||
Foreign | 4,123 | 3,529 | 2,016 | ||||||||||||||
Total current | 14,240 | 4,569 | (296) | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 14,645 | 10,951 | (7,414) | ||||||||||||||
State | 4,039 | 2,372 | (2,025) | ||||||||||||||
Foreign | 101 | (843) | (420) | ||||||||||||||
Total deferred | 18,785 | 12,480 | (9,859) | ||||||||||||||
Income tax expense for continuing operations | $ | 33,025 | $ | 17,049 | $ | (10,155) |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
U.S. | $ | 90,907 | $ | 70,963 | $ | (35,054) | |||||||||||
Foreign | 17,670 | 9,073 | 1,181 | ||||||||||||||
Total | $ | 108,577 | $ | 80,036 | $ | (33,873) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
U.S. | $ | 53,898 | $ | 17,025 | $ | (221,137 | ) | ||||
Foreign | (1,407 | ) | 8,196 | (1,367 | ) | ||||||
Total | $ | 52,491 | $ | 25,221 | $ | (222,504 | ) |
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Percent of pretax income from continuing operations: | ||||||||
At U.S. statutory tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||
State income taxes, net of federal benefit | 6.1 | 7.2 | 2.7 | |||||
Disallowed executive compensation | 2.0 | 2.5 | — | |||||
Meals and entertainment | 1.6 | 2.0 | (0.3 | ) | ||||
Tax credits | (3.1 | ) | (1.4 | ) | 0.2 | |||
Valuation allowance | (2.9 | ) | 6.9 | (0.2 | ) | |||
Realized investment (gains) losses | (1.8 | ) | 1.3 | 0.4 | ||||
Net tax benefit related to “check-the-box” election | (1.4 | ) | — | 1.2 | ||||
Stock-based compensation | (1.1 | ) | 4.9 | (0.8 | ) | |||
Foreign source income | (0.5 | ) | (1.7 | ) | 0.1 | |||
Change in fair value of contingent consideration liabilities | — | 2.4 | — | |||||
Global intangible low-taxed income | — | 2.1 | — | |||||
Transition tax on accumulated foreign earnings, net of credits | — | 0.8 | (0.3 | ) | ||||
U.S. federal rate change | — | (2.3 | ) | (3.4 | ) | |||
Goodwill impairment charges | — | — | (10.2 | ) | ||||
Other | 0.1 | (1.0 | ) | (1.0 | ) | |||
Effective income tax rate for continuing operations | 20.0 | % | 44.7 | % | 23.4 | % |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Percent of pretax income from continuing operations: | |||||||||||||||||
At U.S. statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
State income taxes, net of federal benefit | 6.1 | 5.2 | 4.4 | ||||||||||||||
Valuation allowance | 2.6 | 1.1 | (3.1) | ||||||||||||||
Disallowed executive compensation | 1.9 | 1.2 | (2.8) | ||||||||||||||
Realized investment gains/losses | 1.4 | (1.1) | 2.6 | ||||||||||||||
Foreign source income | 1.2 | (0.2) | 0.5 | ||||||||||||||
Meals and entertainment | 0.1 | 0.1 | (0.6) | ||||||||||||||
Stock-based compensation | 0.1 | (0.7) | 4.3 | ||||||||||||||
Deferred tax adjustments | (2.7) | (0.2) | 1.7 | ||||||||||||||
Tax credits | (1.0) | (1.3) | 3.0 | ||||||||||||||
CARES Act net operating loss carryback | — | (3.8) | 4.4 | ||||||||||||||
Goodwill impairment charges | — | — | (2.6) | ||||||||||||||
Unrecognized tax benefits | — | — | (2.0) | ||||||||||||||
Other | (0.3) | — | (0.8) | ||||||||||||||
Effective income tax rate for continuing operations | 30.4 | % | 21.3 | % | 30.0 | % |
As of December 31, | As of December 31, | |||||||||||||||||
2019 | 2018 | 2022 | 2021 | |||||||||||||||
Deferred tax assets: | Deferred tax assets: | |||||||||||||||||
Operating lease liabilities | $ | 20,541 | $ | — | Operating lease liabilities | $ | 15,249 | $ | 17,542 | |||||||||
Accrued payroll and other liabilities | 12,289 | 6,737 | ||||||||||||||||
Share-based compensation | 6,970 | 6,150 | Share-based compensation | 9,314 | 8,062 | |||||||||||||
Deferred compensation liability | Deferred compensation liability | 7,963 | 10,331 | |||||||||||||||
Accrued payroll and payroll related liabilities | Accrued payroll and payroll related liabilities | 6,432 | 5,645 | |||||||||||||||
Net operating loss carryforwards | Net operating loss carryforwards | 3,304 | 1,243 | |||||||||||||||
Tax credits | 465 | 3,548 | Tax credits | 1,813 | 1,828 | |||||||||||||
Net operating loss carryforwards | 280 | 2,247 | ||||||||||||||||
Deferred lease incentives | — | 4,100 | ||||||||||||||||
Restructuring charge liability | — | 639 | ||||||||||||||||
Other | 1,451 | 1,466 | Other | 2,012 | 2,009 | |||||||||||||
Total deferred tax assets | 41,996 | 24,887 | Total deferred tax assets | 46,087 | 46,660 | |||||||||||||
Valuation allowance | (1,016 | ) | (3,143 | ) | Valuation allowance | (5,667) | (2,876) | |||||||||||
Net deferred tax assets | 40,980 | 21,744 | Net deferred tax assets | 40,420 | 43,784 | |||||||||||||
Deferred tax liabilities: | Deferred tax liabilities: | |||||||||||||||||
Intangibles and goodwill | (16,421 | ) | (6,665 | ) | Intangibles and goodwill | (35,588) | (24,375) | |||||||||||
Operating lease right-of-use assets | (14,675 | ) | — | Operating lease right-of-use assets | (8,354) | (9,837) | ||||||||||||
Preferred stock investment | Preferred stock investment | (7,613) | (441) | |||||||||||||||
Convertible debt investment | (5,608 | ) | (5,934 | ) | Convertible debt investment | (4,421) | (6,604) | |||||||||||
Software development costs | (4,496 | ) | (1,655 | ) | Software development costs | (4,195) | (6,071) | |||||||||||
Property and equipment | (4,039 | ) | (3,604 | ) | Property and equipment | (3,021) | (2,730) | |||||||||||
Prepaid expenses | (2,183 | ) | (1,794 | ) | Prepaid expenses | (2,220) | (2,137) | |||||||||||
Other | (483 | ) | (671 | ) | Other | (5,600) | (2,058) | |||||||||||
Total deferred tax liabilities | (47,905 | ) | (20,323 | ) | Total deferred tax liabilities | (71,012) | (54,253) | |||||||||||
Net deferred tax asset (liability) for continuing operations | $ | (6,925 | ) | $ | 1,421 | |||||||||||||
Net deferred tax liabilities | Net deferred tax liabilities | $ | (30,592) | $ | (10,469) |
Unrecognized Tax Benefits | ||||||||
Balance at January 1, 2020 | $ | 50 | ||||||
Additions based on tax positions related to prior years | 694 | |||||||
Balance at December 31, 2020 | 744 | |||||||
Balance at December 31, 2021 | 744 | |||||||
Decrease due to laps of statue of limitations | (101) | |||||||
Decrease based on tax positions related to prior years | (50) | |||||||
Balance at December 31, 2022 | $ | 593 |
Unrecognized Tax Benefits | ||||
Balance at January 1, 2017 | $ | 3,340 | ||
Decrease due to lapse of statute of limitations | (2,410 | ) | ||
Decrease based on tax positions related to prior years | (117 | ) | ||
Balance at December 31, 2017 | 813 | |||
Additions based on tax positions related to prior years | 115 | |||
Decrease due to lapse of statute of limitations | (28 | ) | ||
Balance at December 31, 2018 | 900 | |||
Decrease due to settlements of prior year tax positions | (115 | ) | ||
Decrease due to lapse of statute of limitations | (735 | ) | ||
Balance at December 31, 2019 | $ | 50 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
Healthcare: | Healthcare: | |||||||||||||||||||||||||||
Revenues | $ | 399,221 | $ | 364,763 | $ | 356,909 | Revenues | $ | 534,999 | $ | 444,767 | $ | 406,536 | |||||||||||||||
Operating income | $ | 125,724 | $ | 108,060 | $ | 118,761 | Operating income | $ | 131,227 | $ | 118,324 | $ | 105,650 | |||||||||||||||
Segment operating income as a percentage of segment revenues | 31.5 | % | 29.6 | % | 33.3 | % | Segment operating income as a percentage of segment revenues | 24.5 | % | 26.6 | % | 26.0 | % | |||||||||||||||
Business Advisory: | ||||||||||||||||||||||||||||
Revenues | $ | 252,508 | $ | 236,185 | $ | 207,753 | ||||||||||||||||||||||
Operating income | $ | 49,695 | $ | 50,625 | $ | 46,600 | ||||||||||||||||||||||
Segment operating income as a percentage of segment revenues | 19.7 | % | 21.4 | % | 22.4 | % | ||||||||||||||||||||||
Education: | Education: | |||||||||||||||||||||||||||
Revenues | $ | 225,028 | $ | 194,177 | $ | 167,908 | Revenues | $ | 359,835 | $ | 242,374 | $ | 223,325 | |||||||||||||||
Operating income | $ | 55,741 | $ | 48,243 | $ | 40,318 | Operating income | $ | 78,924 | $ | 52,398 | $ | 45,780 | |||||||||||||||
Segment operating income as a percentage of segment revenues | 24.8 | % | 24.8 | % | 24.0 | % | Segment operating income as a percentage of segment revenues | 21.9 | % | 21.6 | % | 20.5 | % | |||||||||||||||
Total Company: | ||||||||||||||||||||||||||||
Commercial: | Commercial: | |||||||||||||||||||||||||||
Revenues | Revenues | $ | 237,621 | $ | 218,499 | $ | 214,266 | |||||||||||||||||||||
Operating income | Operating income | $ | 50,025 | $ | 34,296 | $ | 39,044 | |||||||||||||||||||||
Segment operating income as a percentage of segment revenues | Segment operating income as a percentage of segment revenues | 21.1 | % | 15.7 | % | 18.2 | % | |||||||||||||||||||||
Total Huron: | Total Huron: | |||||||||||||||||||||||||||
Revenues | $ | 876,757 | $ | 795,125 | $ | 732,570 | Revenues | $ | 1,132,455 | $ | 905,640 | $ | 844,127 | |||||||||||||||
Reimbursable expenses | 88,717 | 82,874 | 75,175 | Reimbursable expenses | 26,506 | 21,318 | 26,887 | |||||||||||||||||||||
Total revenues and reimbursable expenses | $ | 965,474 | $ | 877,999 | $ | 807,745 | Total revenues and reimbursable expenses | $ | 1,158,961 | $ | 926,958 | $ | 871,014 | |||||||||||||||
Segment operating income | $ | 231,160 | $ | 206,928 | $ | 205,679 | Segment operating income | $ | 260,176 | $ | 205,018 | $ | 190,474 | |||||||||||||||
Items not allocated at the segment level: | Items not allocated at the segment level: | |||||||||||||||||||||||||||
Other operating expenses | 140,285 | 122,276 | 120,718 | Other operating expenses | 140,145 | 131,545 | 135,105 | |||||||||||||||||||||
Litigation and other losses (gains), net | (1,196 | ) | (2,019 | ) | 1,111 | |||||||||||||||||||||||
Depreciation and amortization | 28,365 | 34,575 | 38,213 | Depreciation and amortization | 20,271 | 20,634 | 24,405 | |||||||||||||||||||||
Goodwill impairment charges (1) | — | — | 253,093 | Goodwill impairment charges (1) | — | — | 59,816 | |||||||||||||||||||||
Other expense, net | 11,215 | 26,875 | 15,048 | |||||||||||||||||||||||||
Operating income (loss) | Operating income (loss) | 99,760 | 52,839 | (28,852) | ||||||||||||||||||||||||
Other income (expense), net | Other income (expense), net | 8,817 | 27,197 | (5,021) | ||||||||||||||||||||||||
Income (loss) from continuing operations before taxes | $ | 52,491 | $ | 25,221 | $ | (222,504 | ) | Income (loss) from continuing operations before taxes | $ | 108,577 | $ | 80,036 | $ | (33,873) |
As of December 31, | ||||||||||||
Segment Assets: | 2019 | 2018 | 2017 | |||||||||
Healthcare | $ | 73,019 | $ | 65,133 | $ | 70,097 | ||||||
Business Advisory | 59,315 | 59,017 | 58,217 | |||||||||
Education | 38,881 | 26,990 | 31,367 | |||||||||
Unallocated assets (1) | 933,056 | 898,392 | 877,247 | |||||||||
Total assets | $ | 1,104,271 | $ | 1,049,532 | $ | 1,036,928 |
Year Ended December 31, | ||||||||||||||||||||
Revenues by Capability | 2022 | 2021 | 2020 | |||||||||||||||||
Healthcare: | ||||||||||||||||||||
Consulting and Managed Services | $ | 365,645 | $ | 327,165 | $ | 294,456 | ||||||||||||||
Digital | 169,354 | 117,602 | 112,080 | |||||||||||||||||
Total revenues | $ | 534,999 | $ | 444,767 | $ | 406,536 | ||||||||||||||
Education: | ||||||||||||||||||||
Consulting and Managed Services | $ | 192,336 | $ | 131,369 | $ | 108,784 | ||||||||||||||
Digital | 167,499 | 111,005 | 114,541 | |||||||||||||||||
Total revenues | $ | 359,835 | $ | 242,374 | $ | 223,325 | ||||||||||||||
Commercial: | ||||||||||||||||||||
Consulting and Managed Services | $ | 80,013 | $ | 97,381 | $ | 110,846 | ||||||||||||||
Digital | 157,608 | 121,118 | 103,420 | |||||||||||||||||
Total revenues | $ | 237,621 | $ | 218,499 | $ | 214,266 | ||||||||||||||
Total Huron: | ||||||||||||||||||||
Consulting and Managed Services | $ | 637,994 | $ | 555,915 | $ | 514,086 | ||||||||||||||
Digital | 494,461 | 349,725 | 330,041 | |||||||||||||||||
Total revenues | $ | 1,132,455 | $ | 905,640 | $ | 844,127 |
Year Ended December 31, 2019 | |||||||||||||||
Healthcare | Business Advisory | Education | Total | ||||||||||||
Billing Arrangements | |||||||||||||||
Fixed-fee | $ | 249,479 | $ | 100,635 | $ | 51,826 | $ | 401,940 | |||||||
Time and expense | 55,204 | 139,610 | 154,893 | 349,707 | |||||||||||
Performance-based | 71,051 | 6,856 | — | 77,907 | |||||||||||
Software support, maintenance and subscriptions | 23,487 | 5,407 | 18,309 | 47,203 | |||||||||||
Total | $ | 399,221 | $ | 252,508 | $ | 225,028 | $ | 876,757 | |||||||
Employee Type (1) | |||||||||||||||
Revenue generated by full-time billable consultants | $ | 280,915 | $ | 243,350 | $ | 195,844 | $ | 720,109 | |||||||
Revenue generated by full-time equivalents | 118,306 | 9,158 | 29,184 | 156,648 | |||||||||||
Total | $ | 399,221 | $ | 252,508 | $ | 225,028 | $ | 876,757 | |||||||
Timing of Revenue Recognition | |||||||||||||||
Revenue recognized over time | $ | 390,884 | $ | 252,508 | $ | 223,673 | $ | 867,065 | |||||||
Revenue recognized at a point in time | 8,337 | — | 1,355 | 9,692 | |||||||||||
Total | $ | 399,221 | $ | 252,508 | $ | 225,028 | $ | 876,757 |
Year Ended December 31, 2018 | |||||||||||||||
Healthcare | Business Advisory | Education | Total | ||||||||||||
Billing Arrangements | |||||||||||||||
Fixed-fee | $ | 239,263 | $ | 98,119 | $ | 39,586 | $ | 376,968 | |||||||
Time and expense | 58,377 | 128,583 | 140,824 | 327,784 | |||||||||||
Performance-based | 42,684 | 5,405 | — | 48,089 | |||||||||||
Software support, maintenance and subscriptions | 24,439 | 4,078 | 13,767 | 42,284 | |||||||||||
Total | $ | 364,763 | $ | 236,185 | $ | 194,177 | $ | 795,125 | |||||||
Employee Type (1) | |||||||||||||||
Revenue generated by full-time billable consultants | $ | 247,416 | $ | 225,335 | $ | 170,496 | $ | 643,247 | |||||||
Revenue generated by full-time equivalents | 117,347 | 10,850 | 23,681 | 151,878 | |||||||||||
Total | $ | 364,763 | $ | 236,185 | $ | 194,177 | $ | 795,125 | |||||||
Timing of Revenue Recognition | |||||||||||||||
Revenue recognized over time | $ | 356,826 | $ | 236,185 | $ | 190,526 | $ | 783,537 | |||||||
Revenue recognized at a point in time | 7,937 | — | 3,651 | 11,588 | |||||||||||
Total | $ | 364,763 | $ | 236,185 | $ | 194,177 | $ | 795,125 |
Beginning balance | Additions (1) | Deductions | Ending balance | ||||||||||
Year ended December 31, 2017: | |||||||||||||
Allowances for doubtful accounts and unbilled services | $ | 21,259 | 43,888 | 40,648 | $ | 24,499 | |||||||
Valuation allowance for deferred tax assets | $ | 626 | 793 | 172 | $ | 1,247 | |||||||
Year ended December 31, 2018: | |||||||||||||
Allowances for doubtful accounts and unbilled services | $ | 24,499 | 49,390 | 51,648 | $ | 22,241 | |||||||
Valuation allowance for deferred tax assets | $ | 1,247 | 2,314 | 418 | $ | 3,143 | |||||||
Year ended December 31, 2019: | |||||||||||||
Allowances for doubtful accounts and unbilled services | $ | 22,241 | 69,979 | 73,552 | $ | 18,668 | |||||||
Valuation allowance for deferred tax assets | $ | 3,143 | 1 | 2,128 | $ | 1,016 |
Beginning Balance | Additions (1) | Deductions | Ending Balance | ||||||||||||||||||||
Year ended December 31, 2020: | |||||||||||||||||||||||
Allowances for doubtful accounts and unbilled services | $ | 18,668 | 63,268 | 60,630 | $ | 21,306 | |||||||||||||||||
Valuation allowance for deferred tax assets | $ | 1,016 | 1,160 | 64 | $ | 2,112 | |||||||||||||||||
Year ended December 31, 2021: | |||||||||||||||||||||||
Allowances for doubtful accounts and unbilled services | $ | 21,306 | 9,852 | 15,363 | $ | 15,795 | |||||||||||||||||
Valuation allowance for deferred tax assets | $ | 2,112 | 1,090 | 326 | $ | 2,876 | |||||||||||||||||
Year ended December 31, 2022: | |||||||||||||||||||||||
Allowances for doubtful accounts and unbilled services | $ | 15,795 | 17,820 | 11,480 | $ | 22,135 | |||||||||||||||||
Valuation allowance for deferred tax assets | $ | 2,876 | 3,421 | 630 | $ | 5,667 |
Quarter Ended | |||||||||||||||
2019 | Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 | |||||||||||
Revenues | $ | 204,445 | $ | 220,754 | $ | 219,289 | $ | 232,269 | |||||||
Reimbursable expenses | 18,617 | 23,534 | 23,636 | 22,930 | |||||||||||
Total revenues and reimbursable expenses | 223,062 | 244,288 | 242,925 | 255,199 | |||||||||||
Gross profit | 65,496 | 77,832 | 75,158 | 77,315 | |||||||||||
Operating income | 6,756 | 17,875 | 20,576 | 18,499 | |||||||||||
Net income from continuing operations | 3,350 | 10,569 | 13,706 | 14,354 | |||||||||||
Loss from discontinued operations, net of tax | (46 | ) | (97 | ) | (52 | ) | (41 | ) | |||||||
Net income | 3,304 | 10,472 | 13,654 | 14,313 | |||||||||||
Net earnings per basic share: | |||||||||||||||
Net income from continuing operations | $ | 0.15 | $ | 0.48 | $ | 0.62 | $ | 0.65 | |||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income | $ | 0.15 | $ | 0.48 | $ | 0.62 | $ | 0.65 | |||||||
Net earnings per diluted share: | |||||||||||||||
Net income from continuing operations | $ | 0.15 | $ | 0.47 | $ | 0.61 | $ | 0.63 | |||||||
Loss from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income | $ | 0.15 | $ | 0.47 | $ | 0.61 | $ | 0.63 | |||||||
Weighted average shares used in calculating earnings per share: | |||||||||||||||
Basic | 21,868 | 21,997 | 22,052 | 22,051 | |||||||||||
Diluted | 22,311 | 22,400 | 22,561 | 22,676 |
Quarter Ended | |||||||||||||||
2018 | Mar. 31 | Jun. 30 | Sep. 30 | Dec. 31 | |||||||||||
Revenues | $ | 193,679 | $ | 197,544 | $ | 198,448 | $ | 205,454 | |||||||
Reimbursable expenses | 17,619 | 20,733 | 21,296 | 23,226 | |||||||||||
Total revenues and reimbursable expenses | 211,298 | 218,277 | 219,744 | 228,680 | |||||||||||
Gross profit | 59,745 | 68,820 | 68,893 | 71,834 | |||||||||||
Operating income | 2,322 | 19,138 | 13,561 | 17,075 | |||||||||||
Net income (loss) from continuing operations | (3,222 | ) | 5,862 | 8,249 | 3,055 | ||||||||||
Income (loss) from discontinued operations, net of tax | (42 | ) | (490 | ) | 228 | 6 | |||||||||
Net income (loss) | (3,264 | ) | 5,372 | 8,477 | 3,061 | ||||||||||
Net earnings (loss) per basic share: | |||||||||||||||
Net income (loss) from continuing operations | $ | (0.15 | ) | $ | 0.27 | $ | 0.38 | $ | 0.14 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.02 | ) | 0.01 | — | ||||||||||
Net income (loss) | $ | (0.15 | ) | $ | 0.25 | $ | 0.39 | $ | 0.14 | ||||||
Net earnings (loss) per diluted share: | |||||||||||||||
Net income (loss) from continuing operations | $ | (0.15 | ) | $ | 0.27 | $ | 0.37 | $ | 0.14 | ||||||
Income (loss) from discontinued operations, net of tax | — | (0.02 | ) | 0.01 | — | ||||||||||
Net income (loss) | $ | (0.15 | ) | $ | 0.25 | $ | 0.38 | $ | 0.14 | ||||||
Weighted average shares used in calculating earnings per share: | |||||||||||||||
Basic | 21,592 | 21,709 | 21,745 | 21,774 | |||||||||||
Diluted | 21,592 | 21,918 | 22,110 | 22,294 |