Huron Presents Strategy to Achieve Accelerated Growth and Improved Profitability

0

Significant potential for shareholder value creation through significant growth opportunities in all three operating segments and expected margin expansion

CHICAGO, March 29, 2022–(BUSINESS WIRE)–Global professional services company Huron (NASDAQ: HURN) will host a virtual Investor Day today to outline its growth strategy and financial goals through 2025.

“Over the past 20 years, our incredibly talented team has positioned Huron as a trusted business advisor to thousands of organizations, including some of the world’s most renowned companies and institutions,” said James H. Roth, President and CEO of Huron. “With our market-leading position, distinct competitive advantage and market demand for our offerings, we believe we have a significant growth opportunity ahead of us and we are well positioned to capitalize on this opportunity as we grow. advance our strategy.”

Growth strategy

During today’s event, Huron executives will present the company’s strategy to achieve consistent revenue growth and improved profitability. This strategy includes:

  • Accelerating growth in the health and education sectors: Huron holds leading positions in the healthcare and education market, providing comprehensive offerings to the largest healthcare systems, academic medical centers, colleges and universities, and research institutes in the United States.

  • Growing presence in commercial industries: Huron’s commercial industry segment has increased the diversification of the company’s portfolio and end markets, providing new avenues for growth and an important balance to its health and education focus.

  • Rapidly growing global digital capacity: The ability of Huron to provide digital offerings that support the strategic and operational needs of its customers is the foundation of the Company’s strategy. Huron will continue to advance its integrated digital platform to support its strong growth trajectory.

  • Solid foundation for margin expansion: The Company is well positioned to achieve consistent margin expansion, as well as strong annual adjusted earnings per share (EPS) growth.

  • Solid balance sheet and cash flow: Strong free cash flow has been and will continue to be a hallmark of Huron’s financial strength. The Company is committed to deploying its capital in a strategic and balanced manner, including returning capital to shareholders and making complementary strategic acquisitions.

Medium-term financial objectives

Along with today’s announcement, the Company is providing details on its capital allocation strategy, balancing growth, flexibility and return of capital to shareholders. In addition, the company introduces revenue, adjusted EBITDA margin and EPS targets through 2025 among the following:

  • Income: Low double-digit annual growth;

  • Adjusted EBITDA margin: Extend margins to mid-10% by 2025;

  • Adjusted EPS: Offer 10% annual growth; and

  • Free movement of capital: Generate strong annual free cash flow and deploy 25%-50% of cash flow as shareholder return

Virtual Investor Day

The Investor Day presentation can be found in the Investor Relations section of Huron’s website at http://ir.huronconsultinggroup.com. A replay of the video webcast, transcript and all materials from the event will be available for one year.

Use of Non-GAAP Financial Measures

To assess the company’s financial performance and outlook, management uses EBITDA, Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, Adjusted net income from continuing operations, Adjusted diluted earnings per share from continuing operations and free cash flow which are non-GAAP measures. . Management uses these non-GAAP financial measures to gain an understanding of the Company’s comparative operating performance (when comparing these results to prior periods or forecasts). These non-GAAP financial measures are used by management in making financial and operating decisions because management believes that they reflect the normal activities of the Company in a way that permits meaningful comparisons from period to period. other. Management also uses these non-GAAP financial measures when publicly communicating its business outlook, for internal management purposes and as a basis for evaluating potential acquisitions and divestitures. Management believes that these non-GAAP financial measures provide useful information for investors and others to understand and evaluate the current operating performance and future prospects of Huron in the same way that management does, if at all. wishes, and to consistently compare Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP measures may not be comparable to similarly titled measures of other companies. These measures should be considered supplemental to, and not a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with United States generally accepted accounting principles.

Management provided its outlook for adjusted EBITDA as a percentage of revenue, adjusted diluted earnings per share and free cash flow, all of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures as no guidance is provided for the various reconciling items. Management is unable to provide guidance on these reconciling items as it cannot determine their likely significance as some items are beyond the Company’s control and cannot be reasonably predicted as these items may vary significantly from one period to another. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.

ABOUT HURON

Huron is a global consulting firm that collaborates with clients to drive strategic growth, drive innovation, and navigate constant change. Through a combination of strategy, expertise and creativity, we help our clients accelerate operational, digital and cultural transformation, enabling the change they need to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create lasting results for the organizations we serve. For more information, visit www.huronconsultinggroup.com.

Statements in this press release that are not historical in nature, including those regarding the company’s current expectations regarding its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may”, “should”, “expect”, “provide”, “anticipate”, ” assumes”, “may”, “will”, “meet”, “could”, “probably”, “intend”, “could”, “predict”, “research”, “would”, “believe” , “estimates”, “plans”, “continues”, “goals”, “direction” or “perspective” or similar expressions. These forward-looking statements reflect the company’s current expectations regarding future requirements and needs, results, levels of activity, performance or achievement. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to: the impact of the COVID-19 pandemic on the economy, our customers and consumer demand. customers for our services, and our ability to sell and provide services, including actions taken by governmental authorities and companies in response to the pandemic, which may cause or contribute to other risks and uncertainties that we face; failure to achieve anticipated utilization rates, billing rates and number of revenue-generating professionals; the inability to expand or adjust our service offerings in response to market demands; our reliance on customer-focused service renewal; dependence on new business and retention of current customers and qualified personnel; inability to maintain relationships with third-party vendors and strategic alliances; the inability to license technology to and from third parties; impairment of goodwill; various factors relating to income and other taxes; difficulties in successfully integrating the businesses we acquire and realizing the expected benefits of such acquisitions; risks relating to privacy, information security and related laws and standards; and a general slowdown in market conditions. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including, among others, those described under “Item 1A. Risk Factors” in Huron’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 that may cause actual results, levels of activity, performance or achievements to differ materially from results, levels of anticipated activity, performance or achievements expressed or implied by such forward-looking statements. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220329005319/en/

contacts

MEDIA CONTACT
Allie Bovis
[email protected]

INVESTOR CONTACT
John D. Kelly
[email protected]

Share.

Comments are closed.