Huron Consulting 8K Group Reports First Quarter 2010 Financial Results | HURN 29 Apr 10

Exhibit 99.1

FOR IMMEDIATE RELEASE
April 29, 2010

Huron Consulting Group Reports First Quarter 2010 Financial Results

	•		Revenues were $138.9 million for Q1 2010 compared to $151.1 million in Q1 2009.

	•		Diluted earnings per share from continuing operations for Q1 2010 was $0.14 compared to $0.28 in Q1 2009.

	•		Average number of full-time billable consultants⁽²⁾ totaled 1,272 for Q1 2010 compared to 1,471 for Q1 2009, reflecting strategic and cost-reduction actions taken in 2009. Average number of full-time equivalent professionals⁽⁵⁾ totaled 994 for Q1 2010 compared to 710 in the same period last year.

	•		Company reiterates full year 2010 revenue guidance in a range of $600.0 million to $640.0 million.

CHICAGO — April 29, 2010 — Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of business consulting services, today announced financial results for the first quarter ended March 31, 2010.

“Huron performed in line with our expectations during the first quarter. In spite of the continued economic uncertainties, which we anticipated would make this a challenging quarter, we saw renewed strength in our Legal Consulting segment and some improvement in the factors impacting our Health and Education Consulting and Financial Consulting segments. We expect this will lead to improved results in subsequent quarters,” said James H. Roth, chief executive officer, Huron Consulting Group. “We remain confident that we are well positioned to increase our revenue across all three of our segments during the remainder of the year, consistent with the reaffirmation of our full year 2010 guidance.”

First Quarter 2010 Results

In evaluating the Company’s financial performance and consistent with previous periods, the Company has adopted the use of certain non-GAAP measures for a comparison to prior periods and for guidance as described below under “Use of Non-GAAP Financial Measures.”

Revenues for the first quarter of 2010 were $138.9 million compared to $151.1 million for the first quarter of 2009. The Company’s first quarter 2010 operating income was $7.8 million compared to $14.3 million in the first quarter of 2009. Net income from continuing operations was $2.9 million, or $0.14 per diluted share, for the first quarter of 2010 compared to $5.6 million, or $0.28 per diluted share, for the same period last year. Net income was $2.5 million, or $0.12 per diluted share, for the first quarter of 2010 compared to $7.1 million, or $0.35 per diluted share, for the same period last year.

First quarter 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”)⁽⁶⁾ decreased 38.0% to $13.4 million, or 9.6% of revenues, compared to $21.6 million, or 14.3% of revenues, in the comparable quarter last year. Adjusted EBITDA⁽⁶⁾, which excludes non-cash compensation expense⁽¹⁾ and restatement related expenses, was $14.1 million, or 10.2% of revenues, in the first quarter of 2010, compared to $25.0 million, or 16.5% of revenues, in the comparable quarter last year.

The average number of full-time billable consultants⁽²⁾ was 1,272 in the first quarter of 2010 compared to 1,471 in the same quarter last year. Full-time billable consultant utilization rate was 64.3% during the first quarter of 2010 compared with 68.7% during the same period last year. Average billing rate per hour for full-time billable consultants was $248 for the first quarter of 2010 compared to $253 for the first quarter of 2009. The average number of full-time equivalent professionals⁽⁵⁾ totaled 994 in the first quarter of 2010 compared to 710 for the comparable period in 2009.

Operating Segments

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

Effective January 1, 2010, the Company reorganized its practice areas and service lines to align Huron to better meet market demand and serve clients. Under the new organizational structure, Huron has three operating segments as follows: Health and Education Consulting, Legal Consulting and Financial Consulting, representing approximately 55%, 25% and 20% of the Company’s total revenues, respectively. Financial Consulting is the combination of the Company’s previously named Accounting & Financial Consulting and Corporate Consulting segments. The Financial Consulting segment primarily includes the Restructuring and Turnaround, Disputes and Investigations, Accounting Advisory, and Utilities businesses. The Health and Education Consulting and Legal Consulting segments remain unchanged.

Financial results by segment are included in the attached schedules and in Huron’s Form 10-Q filing for the quarter ended March 31, 2010. Segment information includes 2009 results reported under the new segment structure, which became effective January 1, 2010.

Discontinued Operations

During the fourth quarter of 2009, the Company completed the sale of its Strategy (Galt) business, which was a component of the Financial Consulting segment. Additionally, the Company has executed a non-binding term sheet with a prospective buyer and currently expects to complete the sale of the Japan operations, which is also a component of the Financial Consulting segment, in the second quarter of 2010. Results for these businesses are reported as discontinued operations for the periods presented.

Outlook for 2010

The Company reiterates guidance for full year 2010 from continuing operations, including revenues before reimbursable expenses in a range of $600.0 million to $640.0 million. The Company also continues to expect EBITDA⁽⁶⁾ in a range of $98.5 million to $106.0 million, Adjusted EBITDA⁽⁶⁾ in a range of $107.0 million to $114.5 million, GAAP diluted earnings per share from continuing operations in a range of $1.55 to $1.75, and non-GAAP adjusted diluted earnings per share⁽⁶⁾ in a range of $2.00 to $2.20.

Beginning in 2010, the Company no longer excludes share-based compensation from non-GAAP and EBITDA calculations.

First Quarter 2010 Webcast

The Company will host a webcast to discuss its financial results today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). The conference call is being webcast by Thomson and can be accessed at Huron Consulting Group’s website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.

About Huron Consulting Group

Huron Consulting Group helps clients in diverse industries improve performance, comply with complex regulations, resolve disputes, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including leading academic institutions, healthcare organizations, Fortune 500 companies, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.

Use of Non-GAAP Financial Measures⁽⁶⁾

In evaluating the Company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, adjusted net income and adjusted diluted earnings per share, which are non-GAAP measures. Management believes that such measures, as supplements to net income and diluted earnings per share and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of our core operating results and future prospects without the effect of non-cash or other one-time items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and to repay debt. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States. The reconciliation of these measures to the most comparable GAAP measures are included in the attached schedules.

Statements in this press release, including the information incorporated by reference herein, that are not historical in nature, including those concerning the Company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “plans,” “anticipates,” “assumes,” “can,” “considers,” “could,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates” or “continues”. Risks, uncertainties and assumptions that could impact the Company’s forward-looking statements relate, among other things, to (i) the restatement, (ii) the Securities and Exchange Commission (“SEC”) investigation with respect to the restatement and the related purported private shareholder class action lawsuit and derivative lawsuits, (iii) the SEC investigation and related Company inquiry into the allocation of time within a certain practice group, (iv) the request by the United States Attorney’s Office (“USAO”) for the Northern District of Illinois for certain documents and (v) the cost reduction program implemented in the third quarter of 2009. In addition, these forward-looking statements reflect our current expectation about our future results, levels of activity, performance, or achievements, including, without limitation, that our business continues to grow at the current expectations with respect to, among other factors, utilization rates, billing rates, and the number of revenue-generating professionals; that we are able to expand our service offerings; that we successfully integrate the businesses we acquire; and that existing market conditions, including those in the credit markets, do not continue to deteriorate substantially. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. See “Risk Factors” in our 2009 Annual Report on Form 10-K for a description of the material risks we face.

Media Contact:
Jennifer Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com

Investor Contact:
James K. Rojas, Chief Financial Officer
or
Ellen Wong
312-583-8722
investor@huronconsultinggroup.com

###

HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)


	Three months ended
	March 31,
	2010			2009
Revenues and reimbursable expenses:
Revenues	$	138,893		$	151,130
Reimbursable expenses		12,673			13,412

Total revenues and reimbursable expenses		151,566			164,542
Direct costs and reimbursable expenses(exclusive of depreciation and amortization shown in operating expenses):
Direct costs		94,608			96,254
Intangible assets amortization		886			1,686
Reimbursable expenses		12,724			13,438

Total direct costs and reimbursable expenses		108,218			111,378

Operating expenses:
Selling, general and administrative		30,115			33,293
Restatement related expenses		759			—
Depreciation and amortization		4,644			5,572

Total operating expenses		35,518			38,865

Operating income		7,830			14,299
Other income (expense):
Interest expense, net of interest income		(2,955	)		(2,734	)
Other income (expense)		246			(473	)

Total other expense		(2,709	)		(3,207	)

Income from continuing operations before income tax expense		5,121			11,092
Income tax expense		2,205			5,478

Net income from continuing operations		2,916			5,614
(Loss) income from discontinued operations, net of tax		(402	)		1,462

Net income	$	2,514		$	7,076


Net earnings (loss) per basic share:
Income from continuing operations	$	0.14		$	0.29
(Loss) income from discontinued operations, net of tax	$	(0.02	)	$	0.07

Net income	$	0.12		$	0.36


Net earnings (loss) per diluted share:
Income from continuing operations	$	0.14		$	0.28
(Loss) income from discontinued operations, net of tax	$	(0.02	)	$	0.07

Net income	$	0.12		$	0.35


Weighted average shares used in calculating earnings (loss) per share:
Basic		20,296			19,528
Diluted		20,496			20,252

HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)


	March 31,			December 31,
	2010			2009

Assets
Current assets:
Cash and cash equivalents	$	893		$	5,715
Receivables from clients, net		73,520			90,543
Unbilled services, net		48,919			37,558
Income tax receivable		25,555			18,911
Deferred income taxes		8,032			16,338
Prepaid expenses and other current assets		14,981			19,437
Current assets of discontinued operations		4,514			4,281

Total current assets		176,414			192,783
Property and equipment, net		36,009			39,147
Deferred income taxes		19,552			21,298
Other non-current assets		17,088			14,383
Intangible assets, net		20,488			22,406
Goodwill		464,270			464,169
Non-current assets of discontinued operations		—			29

Total assets	$	733,821		$	754,215


Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	13,962		$	7,150
Accrued expenses		30,900			29,201
Accrued payroll and related benefits		23,138			71,473
Accrued consideration for business acquisitions		—			63,188
Income tax payable		601			874
Deferred revenues		14,733			13,764
Current portion of capital lease obligations		202			278
Current liabilities of discontinued operations		2,568			7,065

Total current liabilities		86,104			192,993
Non-current liabilities:
Deferred compensation and other liabilities		6,938			6,131
Capital lease obligations, net of current portion		5			5
Bank borrowings		301,000			219,000
Deferred lease incentives		8,442			8,681
Non-current liabilities of discontinued operations		427			416

Total non-current liabilities		316,812			234,233

Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 23,100,312 and 22,624,515 shares issued at March 31, 2010 and December 31, 2009, respectively		217			213
Treasury stock, at cost, 1,073,390 and 995,409 shares at March 31, 2010 and December 31, 2009, respectively		(54,459	)		(51,561	)
Additional paid-in capital		340,618			335,272
Retained earnings		46,372			43,858
Accumulated other comprehensive loss		(1,843	)		(793	)

Total stockholders’ equity		330,905			326,989

Total liabilities and stockholders’ equity	$	733,821		$	754,215

HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)


	Three months ended
	March 31,
	2010			2009
Cash flows from operating activities:
Net income	$	2,514		$	7,076
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		5,597			7,445
Share-based compensation		5,965			6,638
Non-cash compensation		—			3,762
Allowances for doubtful accounts and unbilled services		(1,078	)		(1,261	)
Deferred income taxes		10,382			2,931
Changes in operating assets and liabilities, net of businesses acquired:
Decrease in receivables from clients		15,342			630
Increase in unbilled services		(8,703	)		(4,564	)
Increase in current income tax receivable / payable, net		(7,014	)		(49	)
Increase in other assets		(2,445	)		(503	)
Increase in accounts payable and accrued liabilities		9,213			532
Decrease in accrued payroll and related benefits		(52,784	)		(18,838	)
Increase (decrease) in deferred revenues		966			(1,747	)

Net cash (used in) provided by operating activities		(22,045	)		2,052


Cash flows from investing activities:
Purchases of property and equipment, net		(566	)		(3,598	)
Net investment in life insurance policies		(171	)		(154	)
Purchases of businesses		(63,277	)		(46,203	)
Sale of business		3,692			—

Net cash used in investing activities		(60,322	)		(49,955	)


Cash flows from financing activities:
Proceeds from exercise of stock options		17			43
Shares redeemed for employee tax withholdings		(1,111	)		(1,548	)
Tax (expense) benefit from share-based compensation		(2,265	)		3,963
Proceeds from borrowings under credit facility		162,000			100,500
Repayments on credit facility		(80,000	)		(59,000	)
Payments of capital lease obligations		(76	)		(98	)

Net cash provided by financing activities		78,565			43,860


Effect of exchange rate changes on cash		(789	)		(497	)


Net decrease in cash and cash equivalents		(4,591	)		(4,540	)
Cash and cash equivalents at beginning of the period		6,459			14,106

Cash and cash equivalents at end of the period^(*)	$	1,868		$	9,566


*		Cash and cash equivalents presented herein includes $975 thousand and $919 thousand of cash and cash equivalents classified as discontinued operations as of March 31, 2010 and 2009, respectively.

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)


	Three Months Ended						Percent
	March 31,						Increase
	2010			2009			(Decrease)
Segment and Consolidated Operating Results (in thousands):
Health and Education Consulting:
Revenues	$	76,914		$	92,022			(16.4	%)
Operating income⁽¹⁾	$	21,066		$	33,640			(37.4	%)
Segment operating income as a percent of segment revenues		27.4	%		36.6	%
Legal Consulting:
Revenues	$	33,105		$	22,868			44.8	%
Operating income	$	7,419		$	3,241			128.9	%
Segment operating income as a percent of segment revenues		22.4	%		14.2	%
Financial Consulting:
Revenues	$	28,874		$	36,240			(20.3	%)
Operating income⁽¹⁾	$	4,723		$	5,598			(15.6	%)
Segment operating income as a percent of segment revenues		16.4	%		15.4	%
Total Company:
Revenues	$	138,893		$	151,130			(8.1	%)
Reimbursable expenses		12,673			13,412			(5.5	%)

Total revenues and reimbursable expenses	$	151,566		$	164,542			(7.9	%)


Statement of operations reconciliation:
Segment operating income	$	33,208		$	42,479			(21.8	%)
Charges not allocated at the segment level:
Other selling, general and administrative expenses		20,734			22,608			(8.3	%)
Depreciation and amortization expense		4,644			5,572			(16.7	%)

Total operating income		7,830			14,299			(45.2	%)
Other expense, net		(2,709	)		(3,207	)		(15.5	%)

Income from continuing operations before income tax expense	$	5,121		$	11,092			(53.8	%)


Other Operating Data:
Number of full-time billable consultants (at period end)⁽²⁾:
Health and Education Consulting		847			895			(5.4	%)
Legal Consulting		127			161			(21.1	%)
Financial Consulting		261			399			(34.6	%)

Total		1,235			1,455			(15.1	%)
Average number of full-time billable consultants (for the period)⁽²⁾:
Health and Education Consulting		861			902
Legal Consulting		137			162
Financial Consulting		274			407

Total		1,272			1,471
Full-time billable consultant utilization rate⁽³⁾:
Health and Education Consulting		68.1	%		78.0	%
Legal Consulting		55.2	%		53.7	%
Financial Consulting		56.9	%		54.2	%
Total		64.3	%		68.7	%

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)


	Three Months Ended
	March 31,
	2010		2009
Other Operating Data:
Full-time billable consultant average billing rate per hour⁽⁴⁾:
Health and Education Consulting	$	237	$	246
Legal Consulting	$	266	$	233
Financial Consulting	$	283	$	282
Total	$	248	$	253
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting	$	76	$	92
Legal Consulting	$	64	$	57
Financial Consulting	$	76	$	72
Total	$	74	$	82
Average number of full-time equivalents (for the period)⁽⁵⁾:
Health and Education Consulting		141		97
Legal Consulting		727		503
Financial Consulting		126		110

Total		994		710
Revenue per full-time equivalents (in thousands):
Health and Education Consulting	$	84	$	95
Legal Consulting	$	33	$	27
Financial Consulting	$	65	$	64
Total	$	44	$	42

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)


	Three Months Ended
	March 31,			June 30,			September 30,			December
	2009			2009			2009			31, 2009
Segment and Consolidated Operating Results (in thousands):
Health and Education Consulting:
Revenues	$	92,022		$	91,469		$	99,714		$	90,676
Operating income	$	33,640		$	34,430		$	38,676		$	34,549
Segment operating income as a percent of segment revenues		36.6	%		37.6	%		38.8	%		38.1	%
Legal Consulting:
Revenues	$	22,868		$	31,241		$	29,314		$	31,401
Operating income	$	3,241		$	7,715		$	5,360		$	5,719
Segment operating income as a percent of segment revenues		14.2	%		24.7	%		18.3	%		18.2	%
Financial Consulting:
Revenues	$	36,240		$	31,736		$	36,983		$	35,036
Operating income	$	5,598		$	3,899		$	6,299		$	12,156
Segment operating income as a percent of segment revenues		15.4	%		12.3	%		17.0	%		34.7	%
Total Company:
Revenues	$	151,130		$	154,446		$	166,011		$	157,113
Reimbursable expenses		13,412			12,111			13,838			11,479

Total revenues and reimbursable expenses	$	164,542		$	166,557		$	179,849		$	168,592


Statement of operations reconciliation:
Segment operating income	$	42,479		$	46,044		$	50,335		$	52,424
Charges not allocated at the segment level:
Other selling, general and administrative expenses		22,608			22,469			33,674			25,892
Depreciation and amortization expense		5,572			5,659			5,502			5,459
Impairment charge on goodwill		—			—			67,034			—

Total operating income (loss)		14,299			17,916			(55,875	)		21,073
Other expense, net		(3,207	)		(2,377	)		(2,236	)		(2,553	)

Income (loss) from continuing operations before income tax expense	$	11,092		$	15,539		$	(58,111	)	$	18,520


Other Operating Data:
Number of full-time billable consultants (at period end)⁽²⁾:
Health and Education Consulting		895			868			844			857
Legal Consulting		161			141			134			141
Financial Consulting		399			363			343			286

Total		1,455			1,372			1,321			1,284
Average number of full-time billable consultants (for the period)⁽²⁾:
Health and Education Consulting		902			887			858			854
Legal Consulting		162			152			140			140
Financial Consulting		407			388			354			316

Total		1,471			1,427			1,352			1,310
Full-time billable consultant utilization rate⁽³⁾:
Health and Education Consulting		78.0	%		75.3	%		75.1	%		72.4	%
Legal Consulting		53.7	%		61.9	%		58.0	%		54.6	%
Financial Consulting		54.2	%		56.4	%		61.6	%		55.9	%
Total		68.7	%		68.7	%		69.8	%		66.5	%

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)


	Three Months Ended
	March 31,		June 30,		September 30,		December 31,
	2009		2009		2009		2009
Other Operating Data:
Full-time billable consultant average billing rate per hour⁽⁴⁾:
Health and Education Consulting	$	246	$	262	$	299	$	287
Legal Consulting	$	233	$	212	$	188	$	192
Financial Consulting	$	282	$	270	$	291	$	315
Total	$	253	$	259	$	288	$	285
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting	$	92	$	93	$	106	$	94
Legal Consulting	$	57	$	61	$	51	$	45
Financial Consulting	$	72	$	71	$	83	$	81
Total	$	82	$	84	$	94	$	86
Average number of full-time equivalents (for the period)⁽⁵⁾:
Health and Education Consulting		97		109		107		132
Legal Consulting		503		678		645		750
Financial Consulting		110		65		108		138

Total		710		852		860		1,020
Revenue per full-time equivalents (in thousands):
Health and Education Consulting	$	95	$	81	$	85	$	76
Legal Consulting	$	27	$	32	$	34	$	34
Financial Consulting	$	64	$	63	$	71	$	68
Total	$	42	$	41	$	45	$	44


(1)		Includes non-cash compensation expense, which represents acquisition-related payments made by the Company to selling shareholders of certain acquired businesses that were subsequently redistributed by such selling shareholders, as follows (in thousands). See the Company’s Form 10-K for the year ended December 31, 2009 for additional information.


	Three Months Ended
	March 31, 2009
Health and Education Consulting	$	2,634
Financial Consulting		812

Total	$	3,446


(2)		Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked.

(3)		Utilization rate for our full-time billable consultants is calculated by dividing the number of hours all our full-time billable consultants worked on client assignments during a period by the total available working hours for all of these consultants during the same period, assuming a forty-hour work week, less paid holidays and vacation days.

(4)		Average billing rate per hour for our full-time billable consultants is calculated by dividing revenues for a period by the number of hours worked on client assignments during the same period.

(5)		Consists of consultants who work variable schedules as needed by our clients, as well as contract reviewers and other professionals who generate revenues primarily based on number of hours worked and units produced, such as pages reviewed and data processed. Also includes full-time employees who provide software support and maintenance services to our clients.

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION⁽⁶⁾
(In thousands)
(Unaudited)


	Three months ended
	March 31,
	2010			2009

Revenues	$	138,893		$	151,130


Net income from continuing operations	$	2,916		$	5,614
Add back:
Income tax expense		2,205			5,478
Interest and other expenses		2,709			3,207
Depreciation and amortization		5,530			7,258

Earnings before interest, taxes, depreciation and amortization (EBITDA)⁽⁶⁾		13,360			21,557
Add back:
Non-cash compensation⁽¹⁾		—			3,446
Restatement related expenses		759			—

Adjusted EBITDA⁽⁶⁾	$	14,119		$	25,003

Adjusted EBITDA as a percentage of revenues⁽⁶⁾		10.2	%		16.5	%

HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME⁽⁶⁾
(In thousands)
(Unaudited)


	Three months ended
	March 31,
	2010			2009
Net income from continuing operations	$	2,916		$	5,614

Weighted average shares — diluted		20,496			20,252
Diluted earnings per share from continuing operations	$	0.14		$	0.28

Add back:
Amortization of intangible assets		1,894			2,996
Non-cash compensation⁽¹⁾		—			3,446
Restatement related expenses		759			—
Tax effect		(1,088	)		(1,228	)

Total adjustments, net of tax		1,565			5,214

Adjusted net income from continuing operations⁽⁶⁾	$	4,481		$	10,828

Weighted average shares — diluted		20,496			20,252
Adjusted diluted earnings per share⁽⁶⁾	$	0.22		$	0.53


(6)		In evaluating the Company’s financial performance, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of revenues, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management believes that the use of such measures, as supplements to net income, diluted earnings per share and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of our core operating results and future prospects without the effect of non-cash or other one-time items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and to repay debt. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.

Huron Consulting (HURN) 8-KHuron Consulting Group Reports First Quarter 2010 Financial Results