Huron Consulting Group Inc. (HURN, Financial) filed Quarterly Report for the period ended 2010-03-31.
Huron Consulting Group Inc. has a market cap of $486.5 million; its shares were traded at around $22.11 with a P/E ratio of 9.1 and P/S ratio of 0.7. Huron Consulting Group Inc. had an annual average earning growth of 21.6% over the past 5 years.HURN is in the portfolios of Michael Price of MFP Investors LLC, Ron Baron of Baron Funds.
Of the overall $12.2 million decrease in revenues, $26.6 million was attributable to our full-time billable consultants, partially offset by a $14.4 million increase attributable to our full-time equivalents. The $26.6 million decrease in full-time billable consultant revenues was primarily attributable to an overall temporary decrease in the demand for our services coupled with a continued weakened economy that has resulted in a decrease in discretionary spending by our clients as well as delayed decisions by clients on new client engagements. Our average billing rate and utilization decreased in the quarter compared to same period in the prior year. The $14.4 million increase in full-time equivalent revenues resulted from increased demand for our variable, on-demand consultants in our Financial Consulting and Legal Consulting segments.
Our direct costs decreased $1.6 million, or 1.7%, to $94.6 million in the three months ended March 31, 2010 from $96.3 million in the three months ended March 31, 2009. The decrease was primarily related to a $3.7 million decrease in salaries and benefit costs associated with a decrease in our revenue generating professionals compared to the same period in the prior year, coupled with a decrease of $3.4 million in non-cash compensation in the first quarter of 2010 compared to the first quarter of 2009. We recorded non-cash compensation expense of $3.4 million during the first quarter of 2009, representing Shareholder Payments and Employee Payments as described above under Restatement of Previously-Issued Financial Statements. These decreases were partially offset by a $4.9 million increase in direct costs attributable to an increased usage of independent contractors, primarily within our Legal Consulting segment, and a $0.3 million increase in share-based compensation expense associated with our revenue-generating professionals. Share-based compensation increased $0.3 million to $4.5 million in the first quarter of 2010 compared to $4.2 million in the first quarter of 2009 resulting from the granting of restricted stock awards to key employees during the first quarter of 2010.
Total direct costs for the three months ended March 31, 2010 included $0.9 million of intangible assets amortization expense, primarily representing customer-related assets and software acquired in connection with the Stockamp acquisition. This was a decrease of $0.8 million compared to the same period in the prior year.
Selling, general and administrative expenses decreased $3.2 million, or 9.5%, to $30.1 million in the first quarter of 2010 from $33.3 million in the first quarter of 2009. In response to current market conditions and lowered revenue expectations, during the third quarter of 2009, we initiated a cost reduction program to align our cost structure with anticipated demand. This cost reduction effort is estimated to result in an annualized $30.0 million reduction in expenses and is primarily comprised of labor-related cost savings including salary, benefits and bonus resulting from a reduction in the number of revenue-generating employees. These efforts are expected to allow us to maintain appropriate operating margins while paying adequate bonuses until economic conditions improve. We experienced net overall reductions in general and administrative expenses of $2.1 million in the first quarter of 2010 compared to the same period in the prior year, primarily related to decreases in promotion and marketing, facilities, recruiting and training. Additionally, share-based compensation expense associated with our non-revenue-generating professionals decreased $1.0 million from $2.4 million in the first quarter of 2009 to $1.4 million in the first quarter of 2010, primarily related to certain forfeitures of restricted stock awards in the second half of 2009.
Expenses incurred in connection with our restatement, discussed above under Restatement of Previously-Issued Financial Statements, totaled $0.8 million in the first quarter of 2010, net of expected insurance recoveries. The insurance recoveries receivable balance related to restatement matters was $2.0 million as of March 31, 2010. In the first quarter of 2010, the restatement related expenses were primarily comprised of legal fees.
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Huron Consulting Group Inc. has a market cap of $486.5 million; its shares were traded at around $22.11 with a P/E ratio of 9.1 and P/S ratio of 0.7. Huron Consulting Group Inc. had an annual average earning growth of 21.6% over the past 5 years.HURN is in the portfolios of Michael Price of MFP Investors LLC, Ron Baron of Baron Funds.
Highlight of Business Operations:
Revenues decreased $12.2 million, or 8.1%, to $138.9 million for the first quarter of 2010 from $151.1 million for the first quarter of 2009.Of the overall $12.2 million decrease in revenues, $26.6 million was attributable to our full-time billable consultants, partially offset by a $14.4 million increase attributable to our full-time equivalents. The $26.6 million decrease in full-time billable consultant revenues was primarily attributable to an overall temporary decrease in the demand for our services coupled with a continued weakened economy that has resulted in a decrease in discretionary spending by our clients as well as delayed decisions by clients on new client engagements. Our average billing rate and utilization decreased in the quarter compared to same period in the prior year. The $14.4 million increase in full-time equivalent revenues resulted from increased demand for our variable, on-demand consultants in our Financial Consulting and Legal Consulting segments.
Our direct costs decreased $1.6 million, or 1.7%, to $94.6 million in the three months ended March 31, 2010 from $96.3 million in the three months ended March 31, 2009. The decrease was primarily related to a $3.7 million decrease in salaries and benefit costs associated with a decrease in our revenue generating professionals compared to the same period in the prior year, coupled with a decrease of $3.4 million in non-cash compensation in the first quarter of 2010 compared to the first quarter of 2009. We recorded non-cash compensation expense of $3.4 million during the first quarter of 2009, representing Shareholder Payments and Employee Payments as described above under Restatement of Previously-Issued Financial Statements. These decreases were partially offset by a $4.9 million increase in direct costs attributable to an increased usage of independent contractors, primarily within our Legal Consulting segment, and a $0.3 million increase in share-based compensation expense associated with our revenue-generating professionals. Share-based compensation increased $0.3 million to $4.5 million in the first quarter of 2010 compared to $4.2 million in the first quarter of 2009 resulting from the granting of restricted stock awards to key employees during the first quarter of 2010.
Total direct costs for the three months ended March 31, 2010 included $0.9 million of intangible assets amortization expense, primarily representing customer-related assets and software acquired in connection with the Stockamp acquisition. This was a decrease of $0.8 million compared to the same period in the prior year.
Selling, general and administrative expenses decreased $3.2 million, or 9.5%, to $30.1 million in the first quarter of 2010 from $33.3 million in the first quarter of 2009. In response to current market conditions and lowered revenue expectations, during the third quarter of 2009, we initiated a cost reduction program to align our cost structure with anticipated demand. This cost reduction effort is estimated to result in an annualized $30.0 million reduction in expenses and is primarily comprised of labor-related cost savings including salary, benefits and bonus resulting from a reduction in the number of revenue-generating employees. These efforts are expected to allow us to maintain appropriate operating margins while paying adequate bonuses until economic conditions improve. We experienced net overall reductions in general and administrative expenses of $2.1 million in the first quarter of 2010 compared to the same period in the prior year, primarily related to decreases in promotion and marketing, facilities, recruiting and training. Additionally, share-based compensation expense associated with our non-revenue-generating professionals decreased $1.0 million from $2.4 million in the first quarter of 2009 to $1.4 million in the first quarter of 2010, primarily related to certain forfeitures of restricted stock awards in the second half of 2009.
Expenses incurred in connection with our restatement, discussed above under Restatement of Previously-Issued Financial Statements, totaled $0.8 million in the first quarter of 2010, net of expected insurance recoveries. The insurance recoveries receivable balance related to restatement matters was $2.0 million as of March 31, 2010. In the first quarter of 2010, the restatement related expenses were primarily comprised of legal fees.
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