Huron Consulting Group,Inc. (HURN) has reported a 78.52 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $4.15 million, or $0.19 a share in the quarter, compared with $19.34 million, or $0.86 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $12.46 million, or $0.58 a share compared with $21.12 million or $0.94 a share, a year ago.
Revenue during the quarter dropped 3.29 percent to $195.20 million from $201.85 million in the previous year period. Gross margin for the quarter contracted 685 basis points over the previous year period to 30.78 percent. Total expenses were 95.69 percent of quarterly revenues, up from 81.81 percent for the same period last year. That has resulted in a contraction of 1388 basis points in operating margin to 4.31 percent.
Operating income for the quarter was $8.41 million, compared with $36.71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.68 million compared with $40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 768 basis points in the quarter to 12.13 percent from 19.82 percent in the last year period.
"Our fourth quarter results were disappointing primarily due to continued challenges in our Healthcare segment. While we believe there may be some positive market indications, we continue to expect ongoing softness in the Healthcare business until some of the current uncertainties in the provider market subside," said James H. Roth, chief executive officer and president of Huron. "While we continue to remain cautious about growth in our Healthcare segment, we anticipate solid revenue growth in our Education and Life Sciences and Business Advisory segments in 2017."
For fiscal year 2017, Huron Consulting Group,Inc. projects revenue to be in the range of $750 million to $790 million. The company expects net income to be in the range of $18 million to $25 million and forecasts adjusted net income to be in the range of $52 million to $59 million. It forecasts diluted earnings per share to be in the range of $0.85 to $1.15 and forecasts diluted earnings per share to be in the range of $2.40 to $2.70 on adjusted basis.
Operating cash flow declines
Huron Consulting Group,Inc. has generated cash of $128.31 million from operating activities during the year, down 21.89 percent or $35.96 million, when compared with the last year. The company has spent $86.64 million cash to meet investing activities during the year as against cash outgo of $272.16 million in the last year.
The company has spent $83.16 million cash to carry out financing activities during the year as against cash outgo of $89.96 million in the last year period.
Cash and cash equivalents stood at $17.03 million as on Dec. 31, 2016, down 70.86 percent or $41.41 million from $58.44 million on Dec. 31, 2015.
Debt comes down marginally
Huron Consulting Group,Inc. has recorded a decline in total debt over the last one year. It stood at $292.06 million as on Dec. 31, 2016, down 4.98 percent or $15.31 million from $307.38 million on Dec. 31, 2015. Huron Consulting Group,Inc. has recorded a decline in long-term debt over the last one year. It stood at $292.06 million as on Dec. 31, 2016, down 4.98 percent or $15.31 million from $307.38 million on Dec. 31, 2015. Total debt was 25.33 percent of total assets as on Dec. 31, 2016, compared with 26.40 percent on Dec. 31, 2015. Debt to equity ratio was at 0.45 as on Dec. 31, 2016, down from 0.47 as on Dec. 31, 2015.
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