Huron Consulting Group Inc (HURN) has reported an 11.73 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $5.30 million, or $0.25 a share in the quarter, compared with $6 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.82 million, or $0.55 a share compared with $13.31 million or $0.62 a share, a year ago. Revenue during the quarter grew 4.44 percent to $205.80 million from $197.05 million in the previous year period. Gross margin for the quarter expanded 103 basis points over the previous year period to 34.11 percent. Total expenses were 93.12 percent of quarterly revenues, up from 92.70 percent for the same period last year. That has resulted in a contraction of 42 basis points in operating margin to 6.88 percent.
Operating income for the quarter was $14.15 million, compared with $14.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $27.11 million compared with $26.63 million in the prior year period. At the same time, adjusted EBITDA margin contracted 34 basis points in the quarter to 13.17 percent from 13.52 percent in the last year period.
"As we expected, our Education and Life Sciences and Business Advisory segments achieved strong results in the first quarter, while our Healthcare segment remained challenged," said James H. Roth, chief executive officer and president of Huron.
Huron Consulting Group projects revenue to be in the range of $750 million to $790 million for financial year 2017. For fiscal year 2017, Huron Consulting Group expects net income to be in the range of $24 million to $31 million. For the fiscal year 2017, Huron Consulting Group forecasts adjusted net income to be in the range of $52 million to $59 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.10 to $1.40. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.40 to $2.70 on adjusted basis.
Operating cash flow remains negative
Huron Consulting Group Inc has spent $18.39 million cash to meet operating activities during the quarter as against cash outgo of $9.02 million in the last year period. The company has spent $108.54 million cash to meet investing activities during the quarter as against cash outgo of $17.10 million in the last year period.
Cash flow from financing activities was $122.55 million for the quarter as against cash outgo of $19.02 million in the last year period.
Cash and cash equivalents stood at $12.67 million as on Mar. 31, 2017, down 5.87 percent or $0.79 million from $13.46 million on Mar. 31, 2016.
Working capital remains almost stable
Huron Consulting Group Inc has witnessed a decline in the working capital over the last year. It stood at $90.76 million as at Mar. 31, 2017, down 0.84 percent or $0.77 million from $91.53 million on Mar. 31, 2016. Current ratio was at 1.86 as on Mar. 31, 2017, down from 2.03 on Mar. 31, 2016.
Days sales outstanding went up to 68 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went up to 6 days for the quarter from 4 for the same period last year.
Debt moves up
Huron Consulting Group Inc has witnessed an increase in total debt over the last one year. It stood at $422.30 million as on Mar. 31, 2017, up 20.65 percent or $72.28 million from $350.01 million on Mar. 31, 2016. Huron Consulting Group has witnessed an increase in long-term debt over the last one year. It stood at $422.30 million as on Mar. 31, 2017, up 20.65 percent or $72.28 million from $350.01 million on Mar. 31, 2016. Total debt was 32.68 percent of total assets as on Mar. 31, 2017, compared with 31.04 percent on Mar. 31, 2016. Debt to equity ratio was at 0.63 as on Mar. 31, 2017, up from 0.58 as on Mar. 31, 2016.
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