HURN - Earnings call transcript Q2 2019 | Huron Consulting Group Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Huron Consulting Group's webcast to discuss financial results for the second-quarter 2019. [Operator instructions] As a reminder, this conference call is being recorded.

Before we begin, I would like to point all of you to the disclosure at the end of the company's news release for information about any forward-looking statements that may be made or discussed on this call. The news release is posted on Huron's website.

Please review that information, along with the filings with the SEC, for disclosure of factors that may impact subjects discussed in the afternoon's webcast. discussing more be financial will company one non-GAAP or measures. The to on at by website reconciliation GAAP the look the the most numbers. earnings including required Please disclosures release Huron comparable the for SEC, the all now over Jim call Huron Group. Roth, turn of to Officer I would Executive And to Consulting the like Chief

Roth, ahead Mr. please go

Jim Roth

Hussey, Chief afternoon, we welcome to Chief organic and earnings Officer. today me With Kelly, recent and quarters, Huron Healthcare our XXXX delivered growth all of by in continued and revenue the Good is led our organic Officer; Financial in our Education Huron segments. Consistent with segments. across Mark strong to drive and call. performance quarter, second Operating Consulting solid Group's President our XX% growth operating John second-quarter

As then will the annual our for brief growth we in about provide encouraged for I performance to updated each overview continued remain John a our will add and now color prospects XXXX. the financials. of reflected in guidance, segment,

begin me with Healthcare. Let

quarter, segment quarter. revenues prior-year compared the to the Healthcare During grew XX% second

primarily growth in The our was solution. quarter-over-quarter strong to performance attributable improvement demand

need the competitive is market than Combined health health more for environment Our is new provider threat, years. pressure on of existed for increasing the environment with sources business also clients The in facing remains in traditional academic clients our more model challenging diverse recent revenue. intense. even system center and and necessitating the reimbursements, under

market. the ongoing optimize strategies, operations address Our our in as models evolve the Healthcare clients future shape their they is business their business their and support well-positioned to transitions to

sustainable this service Sciences further core with improvement, and Our to we over believe, continue for strategy and Advisory ES&A, competencies QX advantage. businesses. well competitive continued Life innovative position offerings Business when by Innosight quarter that, Growth combined around our X% the organic time our over in centers XXXX. development The the organically performance will during business was growth of quarter, driven and the to growing perform the segment strengthen

segment the of continue services solid are our Advisory We to address developing expect its the evolving trajectory. needs Business in boundaries cross-practice offerings segment. To beyond growth the grow that will traditional our clients, new we rapidly

their example, our we areas business, are the For to on a office ownership. shifting CFO of become and transforming better real-time strategic with high-value the organizations enabling several to the the within finance helping analytics; digital better, a partner leverage institution; faster the ES&A to in needs manage their of institutions of total technology-related and cost function digital include: while minimizing focused their meet make investments world; of decisions

our We three operating of are to achieve company. increasing more across our integrated a strategy segments operating collaboration becoming

XXXX, Through industries Healthcare in Business key Oil continuing expand Advisory Education the first in total Life Energy, the to & six and months Utilities. approximately Sciences, its and the as segment revenues industries of vertical such Gas XX% of Services, generated while Financial

We Huron. to will drive address clients' innovate for and with organic growth our offerings to new needs continue

revenues Turning XXXX the in in period over Education. XX% now QX same to XXXX. segment grew Education

led was and ERP our primarily growth quarter-over-quarter and by solutions. operation strong The cloud strategy

higher the commentary that say concern provided education from it suffice remain our a threats cost regarding competitive to and multiple not pressures the in face in will primary in education story the demand Healthcare, I market, fronts. clients quarters higher While of strength to Similar clients. repeat quality the past for our

of a demographic complex reflecting challenging, all array profile geographies that a issues contribute to in historical trends is declines technologies, business model. New threaten that net some tuition, increasingly in and

of in Also well experience our and for similar our to offerings we growth us Healthcare, future believe diversity service of business. depth this the position the

me turn our year. the let to Finally, for outlook

EBITDA to per range an range guidance $XXX are diluted release to XX% million XX.X% earnings our adjusted in guidance to we in increase of press and $XXX in increasing annual now of XXXX. of We XX% indicates, revenues. over share a adjusted a expect revenue our our XX% maintaining As million to

reflect guidance for we our the second-quarter strong and -- our current anticipated to all demand as performance, are the We well services as segments. raised revenue across

We generate to the believe to over medium single-digit upper continue growth our term. will business mid-

pleased positioning future. a healthy we are We with all the foreseeable growth will in it the segments, enable across market our believe organic is that for our and of market

We per our raised also earnings guidance. share adjusted

our driving will time. operational over to on continue believe increased that We efficiencies leveraging profitability drive G&A our strategy and

shareholder to growth We invest a organic value business will continue our sustainable in long-term to strategy. through driving committed remain and

further has the like our I bringing to to clients more work our more Because be we offerings as challenges company, changing and fully and of to quickly before, than strengthening more to our partner our responsive ever fostering life. of vision team entire to collaborative embracing that advantage values-driven evolving rapidly hard the developing premier made for Huron the dedication clients. and and confront operating Finally, are to thank competitive by our innovative new transformation company culture environments would our a strategy integrated own their clients Huron the their

changes, excited needs of mention evolving from facing, accomplished about very our talented we've industry the about is excited clients the are being pace responding solutions frequently that services clients' and professional change to and facing similar is even respects, to to the adapting to a best Huron lie of our our technologies, that transformation. team way across We anticipatory and bring what the opportunities am in these I the many more I'm clients. of market ahead. proud collaborating emerging our for

over it turn me of let discussion John? to our detailed financials. more a John for Now

John Kelly

everyone. good afternoon, you, and Jim, Thank

discussing I EBITDA, measures note adjusted free non-GAAP EBITDA, financial income, EPS as begin, flow. adjusted that and such will please Before I be net adjusted cash

Huron comparable operating management of provide financial Our my operations believes results. a measures non-GAAP most with measures, these Investor website press the condition useful uses are page non-GAAP information measures why regarding comments and and on the all have investors why Also, along of today release, a they our basis. reconciliations on XX-Q, continuing to Relations GAAP these discussion management to

was financial the the second Revenues million, quarter driven in for of $X.X XXXX. quarter $X.XX across the XX.X% you share revenues in key in solid the or same organic compared increase Now the some of by up growth per $XXX.X all to let $XX.X segments. quarter. of operating was million quarter share $X.XX three the quarter or results me XXXX, walk The XXXX. diluted from were in million million per XXXX $XXX.X in second same income of the through in Net diluted for quarter

XX.X%, year ago. XX.X% quarter tax a was compared to of income effective Our rate the in second XXXX

XX.X% diluted used was fund $XX.X rate or was $X.XX statutory expenses. $XX.X Adjusted in of favorable second compared $XX.X million of our the $X.XX taxes, in million in XXXX share quarter primarily compensation tax of XXXX EBITDA million plan or of nontaxable same QX tax XXXX or QX revenues, share of in XX.X% credits, non-GAAP on than net to income of effective per federal Our state or for XXXX. gains to nondeductible the per QX period more million rate, XXXX, $XX.X investments to to diluted the income revenues. and Adjusted deferred partially compared was inclusive offset business due by

quarter for XX% comments segment of each segment million during the a of improvement from of XXXX. performance the increase quarter $XXX.X the primarily operating company by XX.X% revenues our in or second XXXX, the in XXXX. million performance quarter of solution. make was second up demand driven The posted revenues second revenue of The about I'll few total our $XX.X of of Now, The generated segments. Healthcare strong

million, were last $X.X in XXXX year. QX same the Performance-based fees million compared in $XX to quarter

Our full-year $XX million now range the is expectation fees of for $XX to million. performance-based

client were efforts the the policy the services fees where provided of rules fees rules our delivered and of to better of we clients to are our clients cost recognized Healthcare beginning the new rules XXX, the under of prior have continued that adopted XXXX. effect performance-based at recognition reminder, are ASC accounting under a our to delivery. matching to As sign-off, corresponding where Compared the which we upon engagements revenue incurred for period recognized the our

margins quarter the in margin performance-based there the XXXX. volatility expenses to and expect generally of segment compared year-over-year Under impact. rules both the terms for now margin margin for due XX.X% in to in in given Healthcare we XXXX. and less same expect QX engagements, XX.X% was We arrangements in primarily that segment, be for operating and The from full-year growth nature in Healthcare XX% XX% Operating range income new be to Healthcare labor decrease of expense. was timing current our a increase outpaced revenue our XXXX, revenue to fee the to slight for

XXXX. driven The of in up posted the the during compared businesses. or the and same first The in the segment QX Life second company X.X% Advisory revenue of Sciences XX.X% Advisory total Innosight revenue Business the XX.X% XXXX, The for million generated increase $XX.X income The QX in quarter starting quarter of quarter second to segment revenues Business for margin XX% XXXX, in of XXXX. $X.X was the from million operating XXXX. was quarter ES&A, for by segment

fees a of revenues attributable percentage segment We XXXX. bonus total in margin to primarily XXXX full-year generated also share-based company XX% practice, and increase performance due of XX% expense operating Advisory in The our second performance-based Business million Business million for margins XXXX. in XX% in range in decrease compensation which The as to now to were revenues. be operating quarter margin decrease $X.X in revenue-generating QX professionals in the to Education in the segment decrease The the $X.X the legacy a for of during was and expect QX XXXX. was Advisory an

revenue The Education operating million and primarily for QX ERP, compared The the Segment revenue margin in XXXX, strategy income increase by from XX.X% growth million the quarter in solutions. of $XX.X driven XXXX. revenues for same or operations XXXX, to posted of up XXXX, was by and $X.X in expenses. outpaced XX% research QX driven second XX.X% our for that quarter record was cloud

to Education continue for expect full-year margins the be XX% XXXX. We in operating to range segment to XX%

consummate in including expense transaction salaries-related were level compensation not Other in reported share-based as support with fees XXXX. corporate the segment deferred do level to in incurred related QX in savings; compensation million personnel. XXXX offset $XXX,XXX by order in professional acquisition expense assets QX in at third-party to The to connection managed which of million liabilities XXXX, ultimately the our XXXX by at segments the plan, incurred plan corporate in increase $XXX,XXX expenses our now income; fully expenses, the for enterprisewide an is and under drive $XX.X gain in are expense $XX.X related other to increase the related corresponding that expenses potential with million allocated includes that a total in compared $X.X QX not

to Now quarter came cash the turning DSO the the XXXX. at XXXX, quarter sheet XX to XX in for days compared days second flows. first balance and of for of

DSO in Healthcare year. occur recognized reflects certain increase increased through where width on revenue of throughout the the the billings impact of remainder and primarily contractual the The XX will scheduled June engagements

normalize to a million. notes, for XX DSO of the We $XXX debt XXXX. total of includes expect quarter of of approximately million million value back note of finished $XXX $XX debt the and $X.X million debt promissory debt the $XXX cash in million. We net with convertible to by $X Total million face for days end bank senior

decrease This to QX was million XXXX. a $XX compared

compared the X.X adjusted end ratio, at of XX, leverage adjusted at agreement, as end three bank of senior times to was XX-month trailing our as XX-month the EBITDA in -- March times XXXX. Our EBITDA XXXX, defined QX trailing

We XXXX. end of by approximately leverage times our ratio two to decrease anticipate continue to the to

use fourth facility credit our capacity stated on previous when convertible our our become quarter As is of notes to revolving calls, in the they XXXX. to our in due refinance intent

cash absent And not the of $X.X million in generated which we million in Cash have quarter, in payments, that inclusive in component $XX.X during quarter our million expect operations reflected invest of to payments XXXX. We $XX.X developed $XX costs, quarter flow software million. increased cash was resulting We the second of a would and from $X.X any of from earn-out is payments of paid free earn-out our in operations additional these million, amount. cash flow operations. of by as in do internally XXXX capital cash expenditures, from the used flow

We operations expect of in to for year million. be range a cash million $XXX $XXX the to from flows

of excluding to be costs, We million the of inclusive of expect free be flows software for capital cash expenditures range developed year, $XX and to cash net noncash million and interest and $XX in the to the million, approximately taxes internally stock million year for $XX $XX to compensation.

full to As million. we million are XXXX $XXX guidance to noted, year raising Jim our revenue $XXX

adjusted full-year a XX% in reaffirming earnings an addition, non-GAAP to are XX% adjusted XX% we In in XX.X% to per increase range EBITDA revenues diluted of range be and XXXX. anticipate of to in full-year now over guidance full-year share of a our

Finally, to XX%. like the now approximately our be questions. rate to I Operator? continue tax call we would expect full-year Thanks, effective to to everyone. open

Operator

Thank Tim with proceed, William Company. Our McHugh you. & question instructions] Please comes [Operator sir. from first Blair

Tim McHugh

Thanks.

improved on of projects couple projects? versus projects? performance years improvement improvement how the a just when And Can on what Is seeing one, I kind I to in you about guess quarter. First of bit this a the saw the still was asking the it what the nature practice compare performance this ago you you cylinders? quite guess you these you firing compare commentary Healthcare. in of all a you smaller all success of fees maybe last saw work Are would are past? return bigger seeing -- at

John Kelly

Hey, Tim, it's John.

for demand job we services not job market a large we to very in increase that modest prior. level work, sizes As size saw our and the follow-on XXXX in and the in has our however, have of job seen -- strengthened,

all Our point. selling productivity of balanced of MDs model good across and dynamic created at growth has a this pretty broad our

driving and business performance clients on in serve ability they focus deeper follow-on their health models. different our Our many system produce time, remains improve will to that, transform with as relationships them ways and over the opportunities

key revenue growth and of continue our to to driver expect years, be the a in of it what over So that been drives couple this past has future. we the

fixed it is, from modestly it's what preference predict to their from talked really So a fees not little goes the demand risk-sharing fees say prefer but at clients, mix. quarter driving what's they that job hard in general, sizes to whether quarter, whether which in a our in performance-based Tim, would back are still prefer we've bigger. or the bit bit perspective they little That's us to about I a for really point. past, this that's

a say preference. of I'd kind that's customer really

Tim McHugh

you -- Okay. my was the that adjustment particularly in the for down an kind other the advance acquisition And question didn't the numbers was refinanced. debt, The the up think focus really in just prior of of convertible then I end paying -- on thought doing. on being

you looking asset for that approach So good-sized at of kind must level a been has of changed? relatively It spending. like that have seems diligence

John Kelly

Tim, comment in continue M&A XXXX. the we're I recent that item. out that the in we laid growth not in from going an we of say to focus included driving beyond our XX-Q strategy focus, would the course on description that's particular on to

as areas in years, of All long-term past next we years. their of our identified well over refreshed businesses strategic of believe couple kind plan drive several as the and they've the core growth business can offerings where over develop have we new our

best a that there or accretive. we that of sheet balance for in factor strengthens, M&A, is will to served an expect where be example, strategic bring instances group opportunity talent be a as may speed-to-market immediately our by So there's some opportunities

that the said, majority of our based growth opportunities see with in organic expect our the the to But be and market we on teams. for we

Tim McHugh

Okay. Thank you.

Operator

And Humphrey Thank Sommer next Please Robinson Tobey Markets. proceed, with our SunTrust question sir. Capital from you. comes

Tobey Sommer

pricing. on by tends sizes as picks [indiscernible] elaborate expectations and periods, increase the the accompanied your if businesses. Thanks. across In better up, projects different prior could wanted I well can to of growth see to Thanks. you for be size project as

Mark Hussey

Tobey, Hey, Mark. it's

some add that question. me commentary to Let

there's the for it risk. well. starts with From I clients' dynamic in think -- it the always preference Healthcare, John described

there. -- the the tended coming couple engagements what is typically, lot area are seeing scope. that's tended work identified, last have in a and years, from and opportunities and start over of this the delivering happens when true is And the follow-on to fairly sizes a focused with of of client additional more to And we're

I engagement terms don't of think been lot a of change there's if candidly sizes, I Education contrast the I in the mix. think in

they vary the seen, a of on that technology depending clients' think size, in engagement. size I normally the and projects we've are

In we particular ES&A, years in an to say an march is that have example, within as XXXX. five we a we've seen when accomplished have And really the Blue started bring what would practice that's going that to area in acquisition Stone probably steady I back solutions the multiple that ES&A. we

nature approach us that So force, clients' changes of terms whether it more analytics, But general, it's gives to ERP, project BI compressive into in anything a sizes. and I of that's larger way engagements plus now within sales would the about EPM, and plus needs, that's practice. -- say, translating plus in the the much

the stable. the businesses rest think have of I been pretty

Tobey Sommer

ability you as the prices that headcount would How company's inflation, you're absorbing? growth wage accommodate the to as OK. characterize well raise and

Mark Hussey

Let then side. John the to and on one me take pricing I'll turn the headcount

pricing markets in or in general, kind pressure there's profitability some in think the brought of is I normally, being margins. that because, pressure serve that, we're always inherently, reason we is the under on

been a that that's some least at bit we're margins something to And so mix, a with because an issue increase wage track in engagements lower of in mix technology record or margin, pretty our cost in mix of degradation had of a a that cover -- a range. would we've seeing as a and of maintain the delivery able being segment-level little with good our say of either the ability models, reasonable of leveraging more productivity bit but generally, example, to differently There's little increases other personnel doing factor. being course, I an it, ways versus

John Kelly

market there's based to probably as of increases some more the no it the customer everyone, push In through puts the like be doubt on it -- able pressure markets that. alluded now, add, I to, reality probably Yes. just those competitive other some -- is we're job areas where us there's is about efficient. Mark would so there's we right Tobey, on markets. to But really where a

project I to areas touched lower we on some scale it And a a so same drive kind across think in of where silos at and I'd Mark initiatives business centers out our really cost have of perform can excellence those highlight instituted of the that on efficiency. broader of in the a happening don't number certain you them. teams. we've activities centralizing

deploy less helps us that seeing. projects, might margin to So in that that we be pressure some allows of hours offset which the

So it, not push it think levers haven't is through. we're we've able it address the in been to point able got immune been enough I that those to where but our we we've markets to operations in

Jim Roth

is little the I comments that those a I our depth industries think to anticipating not anticipating of future. to the just get easier industry we growth But of that slightly part John's competitive our is in the a a The because really where this -- it is only pricing because the of we're labor there in Tobey, to I be -- I benefit market, -- have and this bit strong to to thing experience major like of add think not of tend we're think it's there, industries. presence, we Jim. and would and Mark in there have Education, the pricing piece revenue Healthcare

sales be various a and lot industries. more just just in net a broadly our I per to think be peak the going it's around lot could less hour -- the this about

Tobey Sommer

what at for year's expansion of with like Last OK. margin last prospects sort Because it medium Thank bottom. kind and you. have, comment this does near-term about likely of look term? least you growth, long me. is to for Can the EBITDA you question may goals a margin

John Kelly

bit efficiency. off. the John. start last a the Yeah. around is little this It question Tobey, I operational comments can the from doing some of we're things Yeah, into ties around

we think feel good corporate goes. as very the we've about I the we also that's built, and like infrastructure that flexible company feel

to this our should lever have the leverage. one organic line SG&A is we there's into last growth that opportunity that top drive think year drive the which So future. we an the now expense that year grow create and I'd we've say pool, natural than We faster some and seen

XX So to on that, points in if answer think leverage if steady you get terms math of and safe just we're that practice you level, of growth think at way you the going. quantifying that look basis envision a of that to margins I I this an do it keep improvement is level able the can you've to at assume got

efficiencies We're a things and with I to not than hope that. shooting the for But we're some We think offerings view to medium as above-average do doing just years, safe just it. of that. basis year as better term, We're margin to few far shooting between of opportunities. look new XX innovate for how the at of look a is points a over kind to that way next good

toward to upper Will we like a that, in were with this point. aspirational Again, get back more little we ever things margins at teens? XXXX before the doing probably working where we're that's but

a progress toward I a steady mid-teens think it. the of realistic pretty of points XX kind is at year of looking basis a way getting

Tobey Sommer

you. Thank

Operator

And comes Associates. you. Steinke Kevin with Research from question proceed, Barrington next Please Thank sir. our

Kevin Steinke

Thanks. Hi.

you talked segment, on are comment Can How about growth doing? the Healthcare performance you So or just of driving in the areas maybe solutions? primarily technology they other Studer Healthcare. improvement

Mark Hussey

Mark. it's Kevin, Yeah.

Studer. with start me Let

last So top I bit a more the pressure line. Studer all years, of on couple little think recognized we've has their had

I continues that again, year, in say This a low would range.

to able in engagement. the performance as making flexible and improvement opportunities -- way been, year in really last more offerings set for single multi-year bit much contract pressure on really in way to serve expanding collaborative really low in little them year, would to So opposed with the more But that, the process redefining the flexible actively really, we practice client together of respect a of that the years, base couple say, a digit have I a with they're pulls of percentage-wise. contract-type their

I So feel about think we its good and Group direction. Studer

a actually, the this all remind that started is you, it's the we digit 'XX, bought -- technology then just 'XX. we strong but brought direction. 'XX, With in area, as then in moving do, growth, to see to and with really 'XX HSM. business, and respect work them double started We more we to always strong together, in well to There's now right Vonlay as

that runway it. of we lot think ahead business, so there's And of a

little where is just And project It another some bigger, continue of deliver of bigger think attracting because are little getting be bit we're client a opportunities we're example that's the as to to I sizes case. the up in going bit setting. a going to

So that. parts that we And to just remind also business business. very particular about so you, feel our do good Healthcare other even in ERP within but have Healthcare, we we of HR, the in

practice in ES&A in works Our well, force solutions. Healthcare other as sales and

we pretty presence. broad Healthcare a technology So actually have

Kevin Steinke

year, if full Got raised comment guidance, And of the now you you may the the growth the segment-level was terms expectations. segments you out of just what want OK. for be year? wondering, at some laid expecting I in it. outset the from to given on three growth

John Kelly

expecting double-digit to the now to mid range new to guidance, mid-single-digit for expecting increase once into revenue we're We're be Education, Healthcare single-digit we're John. Fitting expecting and the it's over in last in year. be be updated upper range, Kevin, Hey, year. up again, the Business Advisory the

Kevin Steinke

over That's line you Great. can talked term, the corporate faster And long than you helpful. SG&A. grow about, OK. top

half the in I the guess of year. it necessarily happened first hasn't

about get to think Or right one-time to the of number a perhaps. more in of way second should leverage there's think believe, half? in there, on I that? what's SG&A assume But we that the items start that we caused I that kind

John Kelly

year. We That back expect right prepared areas is that we were in called don't -- to it, recur number the during a second out the half remarks, way about quarter in that we those Kevin. to incremental of the the think of the

more. We about also -- sometimes, we talk

had call, During quarter half than first to we -- fringes tend much are of the the in in year. the higher the first-quarter be back they

a the We year. to also We quarter second [Inaudible] one in of number meetings off kick as well. practice-type had those had of the

happened like the the some one-time of but don't we it, better that year. So there's say that in that second -- way expect first expenses in half is one-time of some the not half repeat to to the the year seasonal,

Kevin Steinke

touch Business went Okay. Great. bit. Advisory then expectation margin segment down the you Healthcare And went a just expectation if a bit. little little on up

It all in modest of why the guidance, margin outlooks? comment same the any out segment kind comes to consolidated but on changes those the two

John Kelly

the That's through that we in months pricing think we that half, opportunities of perspective, on about a from into now excited continue earlier I during first Healthcare we we've really half. We the throughout calls better talked that year. perspective, the seen strength about six and the come it's year. demand saw based in back the pipeline the a first a from to and And perspective we're expect see. the

We're balanced it's a of mix opportunities, that excited too.

From the perspective, revenue project things. couple it's consideration the margins So full increased taking as segment Advisory good a I out and Healthcare. we year a those to expand the start of to about with within guidance ability Business over into some of think factors, feel we

we have first hit year some a first, dampening that during think the margins. didn't contingent-based had probably of half I the on fees that effect

created starting the multi-year within in to to first be going really higher year, expense projects, and year. to year what that's the had which during back working and of half half the going full sold SG&A that there some the first be on larger in our related than the still anticipated that initially for also during half, some we the We we're extra practice we of ES&A some

year bit mix the Business in element, I too, practice Advisory, whole within and blending little big at a And just in probably within then with mix. of the the overall, going Business Advisory. pace those are margin So there's ES&A drivers think, for the lowest probably the fastest

Kevin Steinke

lastly, convertible then Thanks. forward of about think kind going just it. interest the Got we with debt? And retirement of the expense pending how Okay. -- should

John Kelly

will from the convertible higher you adjusted original So adjusted perspective starting issuance notes. adjust see interest -- perspective, an because a quarter, on on the we out currently fourth convertible, the expense from you discount EPS discount in OID the

just interest notes on of once X.XX% the from because what's revolver, So the transition the borrowings coupon increase convertible will to borrowings. those the that

year, start revolver, environment we -- out it think the current appears versus toward is the next to rate the the to majority be fixed. of look As I floating

down. be So to to there go rate opportunity the appears floating there some for

correspondingly. And borrowings to cash we expense free of year, flow level year to half this in with the plus reduce be strong to the our we and reduce have expect interest expect next able EPS XXXX. back be That, bit a notes little we for there course, adjusted when is from in reflected the to will a But our of transition all the guidance convertible of revolver. headwind

Kevin Steinke

taking Okay. questions. Great. Thanks for the

John Kelly

Kevin. Thanks,

Operator

have the are Those queue. to remarks. we call his the Roth the going questions I'm to you. turn in Thank for final over Mr. back now

Jim Roth

us for this Thanks forward results. with we time We look announce you afternoon. third-quarter in evening. speaking Good again October with when our to spending

Operator

thank conference today's for concludes you everyone participation. your That call,

Huron Consulting (HURN) 1 Aug 192019 Q2 Earnings call transcript