Huron Consulting Group (HURN) has reported 36.55 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $12.29 million, or $0.57 a share in the quarter, compared with $19.37 million, or $0.86 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $19.69 million, or $0.92 a share compared with $20.35 million or $0.90 a share, a year ago.
Revenue during the quarter grew 5.71 percent to $202.49 million from $191.56 million in the previous year period. Gross margin for the quarter contracted 463 basis points over the previous year period to 35.13 percent. Total expenses were 88.52 percent of quarterly revenues, up from 84.31 percent for the same period last year. That has resulted in a contraction of 421 basis points in operating margin to 11.48 percent.
Operating income for the quarter was $23.24 million, compared with $30.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36.93 million compared with $41.65 million in the prior year period. At the same time, adjusted EBITDA margin contracted 351 basis points in the quarter to 18.24 percent from 21.74 percent in the last year period.
"Our Education and Life Sciences and Business Advisory segments continued to perform well in the third quarter, while our Healthcare segment remained challenged, reflecting the cautious approach that many healthcare providers are taking as they contemplate their approach to change amidst ongoing transformation in the industry," said James H. Roth, chief executive officer and president, Huron Consulting Group. "Looking ahead, we continue to focus on expanding the array of services that we offer to our industry-focused and commercial clients in order to position Huron for growth in an environment of uncertainty within our core markets."
For financial year 2016, Huron Consulting Group forecasts revenue to be in the range of $730 million to $740 million. It projects net income to be in the range of $43 million to $45 million, the company expects diluted earnings per share to be in the range of $2 to $2.10. The company expects diluted earnings per share to be in the range of $3.25 to $3.35 on adjusted basis..
Operating cash flow declinesHuron Consulting Group has generated cash of $78.81 million from operating activities during the nine month period, down 5.32 percent or $4.43 million, when compared with the last year period. The company has spent $81.23 million cash to meet investing activities during the nine month period as against cash outgo of $368.50 million in the last year period.
The company has spent $47.04 million cash to carry out financing activities during the nine month period as against cash inflow of $41.88 million in the last year period.
Cash and cash equivalents stood at $9.10 million as on Sep. 30, 2016, down 32.38 percent or $4.36 million from $13.46 million on Sep. 30, 2015.
Working capital drops significantly
Huron Consulting Group has witnessed a decline in the working capital over the last year. It stood at $70.36 million as at Sep. 30, 2016, down 48.49 percent or $66.24 million from $136.59 million on Sep. 30, 2015. Current ratio was at 1.62 as on Sep. 30, 2016, down from 2.14 on Sep. 30, 2015.
Days sales outstanding went down to 87 days for the quarter compared with 103 days for the same period last year.
At the same time, days payable outstanding went down to 5 days for the quarter from 7 for the same period last year.
Debt comes downHuron Consulting Group has recorded a decline in total debt over the last one year. It stood at $325.86 million as on Sep. 30, 2016, down 22.31 percent or $93.57 million from $419.43 million on Sep. 30, 2015. Huron Consulting Group has recorded a decline in long-term debt over the last one year. It stood at $325.86 million as on Sep. 30, 2016, down 22.31 percent or $93.57 million from $419.43 million on Sep. 30, 2015. Total debt was 28.06 percent of total assets as on Sep. 30, 2016, compared with 32.97 percent on Sep. 30, 2015. Debt to equity ratio was at 0.51 as on Sep. 30, 2016, down from 0.65 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
