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RNN (up 11% to $2.88)
<<< LMAO re this morning after PR from RNN:
finance.yahoo.com/news/Rexahn-Pharmaceuticals-Issues-bw-2015460543.html?x=0&.v=1 >>
Looks like Management was able to convince a bunch of suckers with this PR. Pretty amazing people actually believe this stuff.
10nis
<< RNN - Seems this GS analyst defends his stance >>
Rob Goldman is NO Goldman Sach's (GS) analyst. Quite the opposite... He tends to cover some of the scam biotech companies.
10nis
<< My opinion regarding C is that not only do I think C will hit $5 this year, I'm counting on it being at least $7+ by year end. I base that only on MY understanding of C's position= GLOBAL. C is doing everything right imo by shedding non-banking types of businesses and concentrating on core banking types of business. How will it pan out? Don't know, just that there is a wad of high stakes cash {foreign shareholders} in here betting on C's profitability. Its global position and reputation gives it a huge advantage especially in the wake of U.S. influence and regulatory reform headwinds. All this is speculation on my part. >>
Are any of you aware that C has 35 billion shares outstanding? At a $7 share price, C would have almost a $250 billion market cap. That will likely happen sometime however I have a hard time seeing C adding 70+ Billion in market cap by year end.
10nis
Javelin (JAV-$2.16) Gets Higher $141 Million Takeover Offer From Hospira
DOW JONES NEWSWIRES
Javelin Pharmaceuticals Inc. (JAV) announced plans to junk its $81 million takeover deal with rival drug developer Myriad Pharmaceuticals Inc. (MYRX) after getting a $141 million offer from Hospira Inc. (HSP), which Javelin's board has deemed as superior.
Javelin shares soared 63.4% at $2.19 in recent trading, while Hospira was down three cents at $56.22 and Myriad was inactive after closing on Friday at $4.53.
Hospira is offering $2.20 for each Javelin share as well as financing help and the $4.4 million termination fee due Myriad if its deal isn't completed. Myriad had made a minimum offer of 0.282 share for each share of Javelin, which valued Javelin's stock at $1.27 based on Friday close.
Javelin said it notified Myriad on Friday that it plans to terminate its agreement, and is required to negotiate with them for five business days, giving them a chance to meet the Hospira offer.
Myriad President and Chief Executive Adrian Hobden said as the company weighs its response this week, "our foremost priority will be to use our substantial financial resources prudently, including to develop our promising portfolio of drug candidates." He also called Myriad's deal with Javelin "fair" to both companies' holders.
Javelin's post-operative pain treatment Dyloject is pending U.S. Food and Drug Administration approval. Studies are ongoing and Javelin submitted a new drug application in December to the FDA.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;
MON
<< But I think we will get a couple more opportunities this year to accumulate additional shares at $65-68 for the longer term story. >>
Based on MON's new earnings guidance I wouldn't be surprised if it traded in the low $60's (maybe even high $50's) sometime over the next 9-12 months, as it trades more in line with the general market. IMO, the $100 MS analyst target price is just insane unless its the analyst's estimated take-over price or estimated target price for 2013/2014.
10nis
<< sweet, very sweet chart -- i can seriously tell why they say now that if JPM brokers this correctly -- then (C) could see $5 with ease, then dble from current levels >>
You meant to say MS instead of JPM, right? This C board seems worse than the YMB's. Have any of you read C's SEC filings in the last year?
10nis
<< In 2006 citi made twenty billion dollar in profit and share price was fifty two dollar. I think I heard that they may have the same amount of profit in 2012 I wonder what the share price would be, long term hold for me!! >>
If C make $20 billion in 2012 based on a fully diluted share count of 30+ billion shares they would earn about 60 cents per share in earnings. If you apply an 8 to 10 multiple, C could trade between $4.80 and $6.00. I don't see $6 happening any time soon (before 2012) unless the market gets even more insanely bullish.
10nis
MNTA - "Scheduling Conflict"
<< Not sure what you're suggesting here. Are you suggesting that MNTA never has "scheduling conflicts" so the fact that there is one now should suggest that something is afoot? I'm not saying that's not the case. In fact, I'm saying the response from IR doesn't necessarily rule that out. >>
The fact that IR said it was a scheduling conflict versus travel issues or an emergency personal matter, could mean the Company had more important management / partner meetings going on. I think one should not read too much into missing one conference however I would be more inclined to believe that Management skipped the conference to do something more productive. Hopefully some good MNTA news will becoming our way sometime soon.
10nis
SLXP gets FDA Approval
http://finance.yahoo.com/news/FDA-Approves-XIFAXAN-550-MG-bw-3571437432.html?x=0&.v=1
FDA Approves XIFAXAN® 550 MG Tablets for Reduction in Risk of Overt Hepatic Encephalopathy (HE) Recurrence
XIFAXAN 550 mg Tablets Offer First Clinical Treatment Option in the United States for Patients with Overt HE in More Than 30 Years
Press Release Source: Salix Pharmaceuticals, Ltd. On Wednesday March 24, 2010, 5:55 pm
RALEIGH, N.C.--(BUSINESS WIRE)--Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP - News) today announced the U.S. Food and Drug Administration (FDA) has granted marketing approval for XIFAXAN® (rifaximin) 550 mg tablets for reduction in risk of overt hepatic encephalopathy (HE) recurrence in patients 18 years of age or older. HE is a serious disorder caused by chronic liver failure, resulting in cognitive, psychiatric and motor impairments.i This approval was supported by findings from the largest randomized trial of maintenance therapy in HE conducted to date, which assessed the efficacy and safety of XIFAXAN 550 mg tablets and demonstrated a statistically significant and clinically meaningful reduction in the risk of overt HE recurrence.ii The labeling for XIFAXAN 550 mg tablets includes data on both the risk reduction of overt HE recurrence as well as risk reduction of HE-related hospitalization.
HE occurs frequently in patients with cirrhosis as a result of end-stage liver disease. Typically, cirrhosis is caused by a number of factors, such as alcohol and/or drug abuse, chronic viral hepatitis and autoimmune disease. Currently, there are more than 600,000 cases of cirrhosis in the United States. Cirrhosis is the third most common cause of death, after heart disease and cancer, in people 45-65 years of age in the United States. An estimated 25,000 people die of cirrhosis each year in the United States. The number of cases of liver disease worldwide is rapidly increasing, with the prevalence of chronic liver disease in the United States estimated to be between six and seven million cases.iii, iv There are reported to be approximately 200,000 patients in the United States who suffer from episodic overt HE. v,vi,vii
“HE is a growing health issue among adults suffering from liver disease in the U.S. The imminent availability of XIFAXAN 550 mg tablets signals an important advancement for overt HE patients, their caregivers and the health care community supporting these patients," said Bill Forbes, Pharm.D., Executive Vice President of Research and Development and Chief Development Officer, Salix Pharmaceuticals. “An episode of overt HE can result in a patient losing cognitive function or even death. These symptoms, in a number of incidences, necessitate a clinic or emergency room visit or hospital admission. We are pleased to bring XIFAXAN 550 mg tablets to market and believe the utilization of this treatment should serve to reduce the recurrence of overt HE as well as the number of hospitalizations associated with this serious condition.”
Salix anticipates XIFAXAN 550 mg tablets to be available for physicians and patients by the end of May 2010. In preparation for the launch, the Company is targeting to begin shipping product to wholesalers in early May and to complete the training of its 160-member sales force during the week of May 17.
XIFAXAN has been granted Orphan Drug designation by the FDA for use in hepatic encephalopathy. With XIFAXAN 550 mg tablets now approved by the FDA, Salix believes this designation should provide seven years of marketing exclusivity in the United States.
FDA approval of XIFAXAN 550 mg tablets was based on a 299 subject, double-blind, placebo-controlled, multinational, Phase 3 clinical trial, the largest randomized trial of maintenance therapy in HE conducted to date. Trial results demonstrated a statistically significant and clinically meaningful reduction in the risk of overt HE recurrence.viii The primary endpoint – the risk of experiencing a breakthrough overt HE episode – was reduced by 58 percent in XIFAXAN 550 mg-treated subjects compared with placebo (p<0.0001). The key secondary endpoint – risk of experiencing HE-related hospitalization – was reduced by 50 percent in XIFAXAN 550 mg-treated subjects compared with placebo (p=0.0129).
XIFAXAN® (rifaximin) 550 mg tablets
Important Safety Information
XIFAXAN 550 mg is indicated for reduction in risk of overt hepatic encephalopathy (HE) recurrence in patients = 18 years of age. In the trials of XIFAXAN for HE, 91% of the patients were using lactulose concomitantly. XIFAXAN has not been studied in patients with MELD scores > 25, and only 8.6% of patients in the controlled trial had MELD scores over 19. There is increased systemic exposure in patients with more severe hepatic dysfunction. Therefore, caution should be exercised when administering XIFAXAN to patients with severe hepatic impairment (Child-Pugh C).
XIFAXAN is contraindicated in patients with a hypersensitivity to rifaximin, any of the rifamycin antimicrobial agents, or any of the components in XIFAXAN. Hypersensitivity reactions have included exfoliative dermatitis, angioneurotic edema, and anaphylaxis.
Clostridium difficile-associated diarrhea (CDAD) has been reported with use of nearly all antibacterial agents, including XIFAXAN, and may range in severity from mild diarrhea to fatal colitis. Treatment with antibacterial agents alters the normal flora of the colon which may lead to overgrowth of C. difficile. If CDAD is suspected or confirmed, ongoing antibiotic use not directed against C. difficile may need to be discontinued.
The most common adverse reactions occurring in >8% of patients in the clinical study were edema peripheral (15%), nausea (14%), dizziness (13%), fatigue (12%), ascites (11%), muscle spasms (9%), pruritus (9%), and abdominal pain (9%).
About XIFAXAN® (rifaximin)
Rifaximin is a gut-selective antibiotic with negligible systemic absorption and broad-spectrum activity in vitro against both gram-positive and gram-negative pathogens. Rifaximin has a similar tolerability profile to that of placebo.
Rifaximin tablets 200 mg, which Salix markets in the United States under the trade name XIFAXAN® (rifaximin) tablets 200 mg, currently is approved for the treatment of patients, 12 years of age or older, with travelers' diarrhea (TD) caused by non–invasive strains of Escherichia coli. XIFAXAN should not be used in patients with diarrhea complicated by fever or blood in the stool or diarrhea due to pathogens other than Escherichia coli. XIFAXAN should be discontinued if diarrhea symptoms get worse or persist more than 24–48 hours, and alternative antibiotic therapy should be considered. In clinical trials, XIFAXAN was generally well-tolerated. The most common side effects (vs. placebo) were flatulence 11.3 percent (versus 19.7 percent), headache 9.7 percent (versus 9.2 percent), abdominal pain 7.2 percent (versus 10.1 percent) and rectal tenesmus 7.2 percent (versus 8.8 percent).
Rifaximin has been used in Italy for 24 years and is approved in 33 countries. Salix acquired rights to market rifaximin in North America from Alfa Wassermann S.p.A. in Bologna, Italy. Alfa Wassermann markets rifaximin in Italy under the trade name Normix®.
About Hepatic Encephalopathy
Hepatic encephalopathy (HE) is a disorder caused by chronic liver failure resulting in cognitive, psychiatric and motor impairments. The condition encompasses a wide spectrum of often reversible neuropsychiatric abnormalities caused by the inability of the liver to remove toxic products in the gut from most notably ammonia-producing bacteria. When toxins reach the central nervous system, this condition can result in symptoms ranging in severity from mild cerebral function deficits to coma. The disorder is characterized by disruption in sleep patterns, changes in personality and intellectual capacity, high blood ammonia levels, altered neuromuscular activity and electroencephalogram (EEG) abnormalities.
SOMX....
I like the why Dew. If only there were shares to short or put options to buy.
10nis
BSX
Dew, what are you thoughts on buy-out vig for BSX? I noticed Paulson and Company recently took a 6+% stake in BSX and was trying to determine a rationale for buying BSX at current levels. Just curious if you have any thoughts/opinions.
Thanks,
10nis
OT - VHC
Some insane volatility in this today. From a high today of $7.19 down to $4.10 now back around $6.50 actual now back to $6.00 actual now back to $6.50. This seems like a traders dream stock today....
10nis
Dew,
What is your probability that the FDA makes a decision (whether good or bad) regarding Lovenox by year end (December 31, 2010)?
Thanks,
10nis
Earnings release Tuesday, February 23rd before market open. Conference Call at 9am EST.
http://finance.yahoo.com/news/Huron-Consulting-Group-bw-1500648338.html?x=0
Huron Consulting Group Announces Fourth Quarter and Full Year 2009 Earnings Release and Webcast
Press Release Source: Huron Consulting Group On Tuesday February 9, 2010, 7:55 am EST
CHICAGO--(BUSINESS WIRE)--Huron Consulting Group Inc. (NASDAQ: HURN - News), a leading provider of business consulting services, will announce its financial results for the fourth quarter and full year ended December 31, 2009 before the market opens on Tuesday, February 23, 2010.
Following the release, James H. Roth, chief executive officer, and James K. Rojas, chief financial officer, will host a conference call to discuss the Company’s financial results at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
The conference call is being webcast by Thomson Reuters and can be accessed at Huron Consulting Group’s website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.
In addition, the webcast is also accessible through Thomson’s investor portals.
Individual investors can listen to the call at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.earnings.com&esheet=6171571&lan=en_US&anchor=www.earnings.com&index=2&md5=6a8ad28a20c83323ce687d16eb8df116,
Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.streetevents.com&esheet=6171571&lan=en_US&anchor=www.streetevents.com&index=3&md5=796ad31a91cf4489e9f6113632d0f080).
MNTA
LOL... Nice one. MNTA just broke $15 (make that $16) with some nice block buying. Definitely seeing some good share and option volume today so maybe something gets announced this weekend. Otherwise if there's no news, Dew needs to continue to update the ReadMeFirst everyday.
10nis
<< ddss really moving today fda date is early feb?? think it will get approval, but the market is probably small. >>
DDSS is getting pumped by Sheff on his board:
http://investorshub.advfn.com/boards/board.aspx?board_id=9413
Not saying this is explains the entire move however he has a rather strong following.
10nis
<< What you say makes perfect sense theoretically, but it is not what is actually happening in practice. A broker I know in the Palm Springs area took an all-cash offer on a short sale to the bank for $475,000. The bank dicked around and dicked around, and finally the prospective buyer got pisssed off and walked away. The owner got pissed off too and took the home off the market, only to put it back on a few months later. Long story short, my broker friend found another all-cash buyer for $350,000 and the bank accepted!!! I know it's not rational, but neither the banks nor the owners are completely rational at this point. >>
This happens all the time. Go to YouTube and search under Jim TV (Jim the Realtor). He has some great video's and stories of what is going on in southern California - he was also on 60 minutes or Dateline or 20/20 (own of those shows) last year talking about the market.
<< BTW, the same broker friend of mine, who has been in the business for forty years, just wrote two loans, Freddie and Fannie, for 4.62% on a 30-year fixed. That means you can borrow $100,000 for $514/month. That's the lowest he has ever written a 30-year fixed loan for. Maybe this will begin to nudge home sales a bit. >>
I was able to get 4.60% on a 30-year fixed in February 2009 so low rates have been around a while for people with a solid credit score, sizeable downpayment, etc. And obviously the very low rates help affordability (for now) but the oversupply of existing homes/condos is going to take a number of years to work itself to a more normal level as new households are created. The key is what happens to real estate prices when mortgage rates increase to a relatively normal level (7-8%) from today's historic low level's...
10nis
<< Board, Anyone care to share their top 2 or 3 favorite bio stock picks for 2010? >>
Maybe Dew can put together a poll? MNTA and IDIX would likely be a couple bio stock picks for 2010 from the board.
10nis
OT <<< You know there's a tremendous amount of demand? Show me the data in terms of quantities demanded at varying rates of interest. >>>
Private equity financing terms went from essentially the easiest in history (covenantless) to covenant restricted with high capital requirements almost over night. I don't have the resources to put together a listing that you're asking for, however, I do know that every private equity firm that I've worked with and spoken to in the last 12 months (approximately 75) have been unable to finance multiple transactions. I recommend calling up any private equity firm with a $750 million to billion dollar fund and ask them how many deals they had last year that died because of the inability to obtain financing. It's a large number.
With respect to business demand... I frequently speak with a large number of private micro to small-cap businesses and last year most were unable to obtain reasonable debt financing terms for expansion.
Sorry I couldn't provide a quantifiable answer for you.
10nis
OT <<Why wouldn't you see the "decline" as a response to a fall in demand, seeing as how much of the previous rise went to overbuilding commercial properties that are currently unoccupied?
The pleading (bullying?)by this administration for bankers to increase lending is silly populist rant IMHO. >>
I can tell you first hand its not silly populist rant. There has been some decline in demand for borrowing as a result of a slower economy and less construction build. However, I know numerous solid, stable and good performing businesses that cannot get additional bank provided financing to expand and grow their businesses.
In addition, Private Equity firms trying to close deals of any decent amount ($200 million and greater) were essentially shut-out from financing from late 2008 until October 2009. Lending has opened up rather nicely recently however with significantly higher borrowing costs and considerable less leverage than 12-18 months ago. Not saying this is a bad thing necessarily, however, there is a tremendous amount of demand.
10nis
<< OT - America's economic recovery will be twice as big as experts predict >>
Why is yet another journalist giving the world his economic opinion? Oh yeah, he's trying to sell yet another one his books. I guess his 2007 Book "Pop!: Why Bubbles Are Great For The Economy"... didn't hit the best sellers list liked he hoped.
I'll take the under on his prediction.
10nis
<< Wallstarb- mNTA. What is the chart saying it will go to now? >>
The MOON!! Just kidding, however, based on option volume and the recent move there just may be some great news announced next week or in early 2010.
Happy Holidays,
10nis
<<< BioMedReports target: $0.40:
"MCLN's stock has just emerged from the sub-penny trading level and our own short-term trading target of $.40 is based on our own in-depth technical, fundamental and financial analysis of the company. "
Any comment appreciated. >>>
At $0.40, MCLN would have a market capitalization of approximately $220 million (based on the current outstanding share count)... You can make your own decision if that's reasonable or completely ridiculous.
10nis
Q3 Earnings just released....
*DJ Huron Consulting Group 3Q Non-GAAP EPS 59c >HURN
*DJ Huron Consulting Group Sees 2009 Rev $650M-$665M >HURN
*DJ Huron Consulting Group Sees 2009 Non-GAAP EPS $2.85-Non-GAAP EPS $3.05 >HURN
Conference call is at 9am EST...
Huron Consulting Group Announces Third Quarter 2009 Financial Results
http://finance.yahoo.com/news/Huron-Consulting-Group-bw-3674632031.html?x=0&.v=1
Press Release
Source: Huron Consulting Group Inc.
On 7:00 am EST, Thursday November 5, 2009
CHICAGO--(BUSINESS WIRE)--Huron Consulting Group Inc. (NASDAQ: HURN - News):
Revenues of $172.2 million for Q3 2009 increased 2.1% from $168.7 million in Q3 2008 and grew sequentially from $165.8 million in Q2 2009.
The Company’s previously announced goodwill impairment analysis resulted in a $106.0 million non-cash pretax goodwill impairment charge taken in Q3 2009, which is approximately 20% of the Company’s total goodwill balance of $506.5 million as of June 30, 2009.
Results for Q3 2009 also included restructuring and restatement charges totaling $15.1 million.
GAAP loss per share including the aforementioned charges was $(3.16) in Q3 2009 compared to diluted earnings per share of $0.12 in Q3 2008.
Non-GAAP adjusted diluted earnings per share was $0.59 in Q3 2009 compared to $0.86 for Q3 2008(7). This change is almost entirely due to the increase in the effective tax rate.
Average number of full-time billable consultants(2) totaled 1,430 for Q3 2009 compared to 1,488 for Q3 2008. Average number of full-time equivalent professionals(5) totaled 861 for Q3 2009 compared to 947 in the same period last year.
Company provides updated full year 2009 revenue guidance of $650 million to $665 million.
Huron Consulting Group Inc. (NASDAQ: HURN - News), a leading provider of business consulting services, today announced its financial results for the third quarter ended September 30, 2009.
“Huron’s third quarter results demonstrate the strength of our client relationships, the quality and dedication of our people, and our ability to work as a team through a challenging economic and business environment,” said James H. Roth, chief executive officer, Huron Consulting Group. “Despite some of the significant challenges following the announcement of our financial restatement, the Huron team has stayed focused on the business of serving our clients and generating new client engagements. We will remain focused on the execution of our business plan for the fourth quarter of 2009 and throughout 2010.”
In evaluating the Company’s financial performance and consistent with previous periods, the Company has adopted the use of certain non-GAAP measures for a comparison to prior periods and for guidance as described below under “Use of Non-GAAP Financial Measures.”
Third Quarter 2009 Results
Revenues of $172.2 million for the third quarter of 2009 increased 2.1% from $168.7 million for the third quarter of 2008 and grew sequentially from $165.8 million in the second quarter of 2009. The Company recorded a $106 million non-cash pretax charge for the impairment of goodwill in the third quarter of 2009, which is approximately 20% of the Company’s total goodwill balance of $506.5 million as of June 30, 2009. The impairment charge is non-cash in nature and does not affect the Company’s liquidity. Results for the third quarter 2009 also included approximately $15.1 million in restructuring and restatement related charges. GAAP net loss was $64.0 million, or a loss of $(3.16) per share, for the third quarter of 2009 compared to GAAP net income of $2.4 million, or $0.12 per diluted share, for the same period last year. Non-GAAP adjusted net income(7) was $11.9 million, or $0.59 per diluted share, for the third quarter of 2009 compared to $17.0 million, or $0.86 per diluted share, for the comparable quarter in 2008. This change is almost entirely due to an increase in the effective tax rate reflecting losses that cannot be tax benefited and an increase in the state tax liability. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) (7), which excludes share-based compensation expense, non-cash compensation expense, restructuring charges, non-recurring expenses related to the restatement, goodwill impairment charge, and an other gain, was $38.1 million, or 22.1% of revenues for the third quarter, compared to $40.8 million, or 24.2% of revenues, in the comparable quarter last year.
“We are pleased with our revenues for the third quarter and the contributions from all of our business units during these uncertain times,” said Roth. “The quarterly results were positively influenced by better than forecasted levels of contingent fees and continued strong demand in the Health and Education Consulting segment, reflecting our deep industry skills to assist hospitals, healthcare organizations and universities with their complex challenges.”
The average number of full-time billable consultants(2) was 1,430 in the third quarter of 2009 compared to 1,488 in the same quarter last year. Full-time billable consultant utilization rate was 69.8% during the third quarter of 2009 compared with 71.3% during the same period last year. The average number of full-time equivalent professionals(5) totaled 861 in the third quarter of 2009 compared to 947 for the comparable period in 2008. Average billing rate per hour for full-time billable consultants was $284 for the third quarter of 2009 compared to $250 for the third quarter of 2008.
Year-to-Date Results
Revenues of $501.1 million for the first nine months of 2009 increased 11.0% from $451.5 million for the same period last year. The GAAP net loss, which includes restructuring, restatement and goodwill impairment charges as discussed above, was $47.3 million, or a loss of $(2.36) per share, for the first nine months of 2009 compared to GAAP net income of $6.6 million, or $0.35 per diluted share, for the same period last year. Non-GAAP adjusted net income(7) was $45.6 million, or $2.22 per diluted share, for the first nine months of 2009 compared to $49.1 million, or $2.62 per diluted share, for the comparable period in 2008. Adjusted EBITDA(7), which excludes share-based compensation expense, non-cash compensation expense, restructuring charges, non-recurring expenses related to the restatement, goodwill impairment charge, and an other gain, rose 4.5% to $110.5 million, or 22.0% of revenues, compared to $105.8 million, or 23.4% of revenues, in the comparable period last year.
The average number of full-time billable consultants(2) increased 14.1% to 1,493 in the first nine months of 2009 compared to 1,308 in the same period last year. The average number of full-time equivalent professionals(5) decreased slightly to 811 in the first nine months of 2009 compared to 851 for the comparable period in 2008. Full-time billable consultant utilization rate was 69.7% during the first nine months of 2009 compared with 67.9% during the same period last year. Average billing rate per hour for full-time billable consultants was $269 for the first nine months of 2009 compared to $265 for the same period last year.
Operating Segments
Huron’s results reflect a broad portfolio of service offerings that help clients address complex business challenges. The Company’s operating segments are as follows:
Health and Education Consulting – Representing 57% of Huron’s total third quarter 2009 revenues, this segment was positively influenced by better than forecasted levels of contingent fees and continues to show solid growth as it assists healthcare organizations and universities respond to increased funding constraints and regulatory challenges. Huron’s services help the institutions it serves improve their financial and operational performance.
Legal Consulting – Representing 17% of Huron’s total third quarter 2009 revenues, this segment continues to see steady demand for document review and discovery services, and mixed demand for other consulting services. This segment continues to assist Fortune 500 general counsels manage spiraling costs in what are challenging times for the legal industry.
Accounting & Financial Consulting – Representing 16% of Huron’s total third quarter 2009 revenues, this event-driven segment continues to operate in a sluggish market and performed consistent with the slower litigation and regulatory environment. However, despite the sluggish environment, this segment delivered sequential quarterly growth for the first time in eight quarters. This segment continues to pursue opportunities in the financial services industry, provide advisory services to government entities, and implement International Financial Reporting Standards (IFRS) at large U.S.-based multinationals.
Corporate Consulting – Representing 10% of Huron’s total third quarter 2009 revenues, this segment is benefiting from solid demand for its Restructuring and Turnaround business while services being delivered in its Strategy, Utilities and Japan markets experienced soft demand.
Segment financial results are included in the attached schedules and discussed in greater detail in Huron's Form 10-Q for the quarter ended September 30, 2009.
Financial Restatement
The Company announced on July 31, 2009 that it would restate its financial statements for the fiscal years 2006, 2007 and 2008 and the first quarter of 2009. On August 17, 2009, Huron completed the restatement. The restatement pertained to the accounting for certain acquisition-related payments received by selling shareholders of four acquired businesses that were subsequently redistributed by such selling shareholders among themselves and to other select client-serving and administrative Company employees based, in part, on continuing employment with the Company or the achievement of personal performance measures.
The selling shareholders were not prohibited from redistributing such acquisition-related payments under the terms of the purchase agreements with the Company for the acquisitions of the acquired businesses. However, under GAAP, such payments were imputed to the Company, and the portion of such payments redistributed based on performance or employment was required to be reflected as non-cash compensation expense of the Company, even though the amounts received by the selling shareholders did not differ significantly from the amounts they would have received if such portion had been distributed solely in accordance with their ownership interests. The restatement was necessary because the Company did not record such portions of the acquisition-related payments as a separate non-cash compensation expense with a corresponding increase in paid-in capital.
Based on the results of the Company’s inquiry into the acquisition-related payments to date and the previously disclosed agreement amendments with the selling shareholders, earn-out payments for periods after August 1, 2009 are accounted for as additional purchase consideration and not also as non-cash compensation expense. The Company recognized $1.2 million of additional non-cash compensation expense during the third quarter of 2009 related to the redistributed acquisition-related payments for the period from July 1 to July 31, 2009.
The restatement resulted in a reduction of approximately $56 million in net income and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for all restated periods. However, the restatement had no effect on Huron’s total assets, total liabilities or total stockholders’ equity on an annual basis. Further, the Company did not expend additional cash with respect to the compensation charge, and the restatement had no effect on Huron’s cash or net cash flows from operations.
See the Company’s Form 10-Q for the quarter ended June 30, 2009, Form 10K/A filed on August 17, 2009, and Form 10Q/A filed on August 17, 2009 for additional information related to the financial restatement.
Goodwill Impairment
As a result of the significant decline in the price of the Company’s common stock following the Company’s July 31, 2009 announcement of its intention to restate its financial statements, the Company engaged in the previously announced impairment analysis with respect to the carrying value of its goodwill in connection with the preparation of the financial statements for the quarter ended September 30, 2009, and recorded a $106.0 million non-cash pretax charge for the impairment of goodwill, which was approximately 20% of the Company’s total goodwill balance of $506.5 million as of June 30, 2009. The impairment charge was recognized to reduce the carrying value of goodwill associated with the Company’s Accounting & Financial Consulting and Corporate Consulting segments. The impairment charge is non-cash in nature and does not affect the Company’s liquidity.
New Management Roles
On November 3, 2009, James H. Roth, chief executive officer, was appointed to the Company’s Board of Directors and James K. Rojas, chief financial officer, assumed the additional role of treasurer, succeeding Gary L. Burge who resigned from the position on that date.
Outlook for 2009
The Company provided guidance for full year 2009 revenues before reimbursable expenses in an updated range of $650 million to $665 million. The Company also anticipates GAAP loss per share in a range of $(2.01) to $(1.80), non-GAAP adjusted diluted earnings per share(9,11) in a range of $2.85 to $3.05, loss before interest, taxes, depreciation and amortization(9,11) in a range of $(13) million to $(8) million, and Adjusted EBITDA(9,11) in a range of $139 million to $144 million. Management will provide a more detailed discussion of its outlook during the Company’s earnings conference call webcast.
Third Quarter 2009 Webcast
The Company will host a webcast to discuss its financial results today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). The conference call is being webcast by Thomson and can be accessed at Huron Consulting Group’s website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.
<<< Probrably the worst analogy I have ever heard. They passed on IDX184 with all of the knowledge of owning nearly 50% of the company as well as having access to the data and knowing the drug from it's outset.
But you can't take an exception and try to prove the rule with it. It's a tainted drug now in my eyes and imo in the eyes of any potential partners - they will all have in the back of their minds "why wasn't it good enough for NVS to partner" >>>
Wall, your trader attitude and your mile wide and inch deep research is a dangerous thing. You clearly have never worked on any M&A or partner dealings because if you had, you would realize there is often a wide degree of interest and valuation from different parties for the same asset. What something is worth to one can and likely is worth something very different to another.
Also, how do you know NVS did not want to partner IDX 184? It could have been IDIX whom wanted more than NVS was willing to offer. Also, NVS may not have been interested in IDX solely because they have no future HCV plans vs. having a negative view of the drugs potential.
Using your thought pattern above, a laid-off executive would be tainted and thus not worth hiring by a competing firm - because if he's not good enough for NVS he's definitely not good enough for MRK, PFE, or wherever. And that's completely absurd.
Big Pharma companies make mistakes all the time and they have very different visions and drug focuses. Other potential partner's will review the data and do their own due diligence just like any smart competent person would. This isn't Jim Cramer hour where idiot America buys whatever crap he's selling.
10nis
MNTA...
Anyone want to speculate on what the latest financing means....
No partnership deal for M118 and MNTA will be paying for phase-2b trial(s)? MNTA is taking advantage of favorable financing terms?
10nis
DJ: Huron Consulting Raised To Perform From Underperform By Oppenheimer
OT - NYSE / AMEX
http://www.cnbc.com/id/22715479/
NYSE Euronext Snaps Up Amex for $260 Million
Topics: Stock Market | Mergers & Acquisitions
Companies: NYSE EuronextBy: AP | 17 Jan 2008 | 05:05 PM ET Text Size The New York Stock Exchange said after markets closed Thursday it agreed to acquire its smaller rival, American Stock Exchange, for $260 million in stock.
The deal, which will later include the proceeds from the sale of Amex's Lower Manhattan headquarters a few blocks from the NYSE's Wall Street home, gives NYSE Euronext [NYX 29.56 0.33 (+1.13%) ] a second U.S. license for an option exchange. It would make the NYSE the No. 3 U.S. options marketplace.
The NYSE has been looking to move further into the options business.
REGN, SNY / SAN
Phase 3 Trial of Aflibercept in Metastatic Pancreatic Cancer Discontinued
Phase 3 studies in colorectal cancer, non-small cell lung cancer, and prostate cancer continue with over 70 percent enrollment completed
http://finance.yahoo.com/news/Phase-3-Trial-of-Aflibercept-prnews-1740267299.html?x=0&.v=1
Press Release Source:
Regeneron Pharmaceuticals, Inc.; sanofi-aventis
On Friday September 11, 2009, 4:05 pm EDT
PARIS and TARRYTOWN, N.Y., Sept. 11 /PRNewswire-FirstCall/ -- Sanofi-aventis (Euronext: SAN and NYSE: SNY) and Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN - News) today announced the discontinuation of the Phase 3 trial that evaluated aflibercept (VEGF Trap) plus gemcitabine versus placebo plus gemcitabine for the first-line treatment of metastatic pancreatic cancer (VANILLA), based on the recommendations by an Independent Data Monitoring Committee (IDMC). As part of a planned interim efficacy analysis, the IDMC determined that the addition of aflibercept to gemcitabine would be unable to demonstrate a statistically significant improvement in the primary endpoint of overall survival compared to placebo plus gemcitabine in this study. The types and frequencies of adverse events reported on the combination arm with aflibercept were generally as anticipated.
With the closure of the study, a detailed analysis of the efficacy and safety results will be conducted by the companies and results will be presented at a future medical meeting. Sanofi-aventis and Regeneron have notified the study investigators and appropriate regulatory authorities of the decision to discontinue the study. Patients in the study will continue to be provided access to aflibercept at the determination of the study investigators in consultation with the patients.
Metastatic pancreatic cancer is among the most intractable cancers. Clinical development of new therapies, including anti-VEGF agents, has been generally characterized by a failure to achieve significant incremental clinical benefit over existing treatments.
"We are disappointed with the result of this study and we will continue our efforts to bring new and effective treatments for these patients," said Dr. Marc Cluzel, Senior Vice President, Research and Development sanofi-aventis. "We remain committed to the other ongoing Phase 3 trials of aflibercept in colorectal cancer, non-small cell lung cancer, and hormone-refractory metastatic prostate cancer."
Three Phase 3 studies continue, each of which is currently over 70 percent enrolled:
VELOUR study: 2nd-line metastatic colorectal cancer in combination with fluorouracil, leucovorin, and irinotecan (FOLFIRI)
VITAL study: 2nd-line non-small cell lung cancer in combination with docetaxel
VENICE study: 1st-line hormone-refractory metastatic prostate cancer in combination with docetaxel and prednisone
About Pancreatic Cancer
Each year in the United States, more than 42,000 individuals are diagnosed with pancreatic cancer and over 35,000 die. The prognosis is generally poor; less than five percent of those diagnosed are still alive five years after diagnosis. Gemcitabine is considered the standard backbone of first-line treatment in patients with first-line metastatic pancreatic cancer.
About Aflibercept
Aflibercept is an anti-angiogenesis inhibitor with a unique mechanism of action. This fusion protein binds all forms of Vascular Endothelial Growth Factor-A (VEGF-A), as well as VEGF-B and placental growth factor (PIGF), additional angiogenic growth factors that appear to play a role in tumor angiogenesis and inflammation. Aflibercept has been shown to bind VEGF-A, VEGF-B, and PlGF with higher affinity than their natural receptors.
Monsanto Keeps 2009 EPS Guidance As 2010 Undershoots Expectations
(Assuming the 2010 guidance is accurate MON will likely see the $60's or at best be range bound for many months)
By Doug Cameron Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)--Monsanto Co. (MON) said Thursday that full-year earnings would be at the low end of its existing guidance while its forecast for fiscal 2010 fell well short of analysts' expectations.
The world's largest seed company by revenue is continuing to be hurt by weakening sales of its Roundup herbicide amid tough competition and a drop in global farm incomes.
Monsanto said ongoing earnings per share for fiscal 2009 would be "at the low end" of its previously-announced range of $4.40 to $4.50, with lower-than-anticipated earnings from herbicides outweighing "slightly" higher gross profit from seeds and traits.
The company issued the guidance in a statement ahead of a conference presentation from chief financial officer Carl Casale in London.
The U.S. company's first indication for fiscal 2010 - with ongoing EPS forecast at $3.10 to $3.30 - compared with the $4.10 consensus among analysts.
However, Monsanto retained its pledge to double gross profit by 2012 from a 2007 base as it rolls out new genetically-modified corn and soybean seeds.
Casale warned in a statement that tough competition from generic herbicides created "multiple headwinds" in its goal of securing $1 billion gross profit from the segment by 2012. Profits from Roundup and its other herbicides are forecast at $650 million to $750 million in fiscal 2010.
Monsanto also said it was boosting a restructuring reserve to a range of $550 million to $600 million as part of cost-cutting efforts that will see it trim 8% from its workforce. It aims to cut $220 million to $250 million from annual expenses, realizing a third of this in fiscal 2010 and the full target from 2011.
Huron Consulting Group Announces Second Quarter 2009 Financial Results and Filing of Second Quarter Form 10-Q; Company Completes Restatement For Fiscal Years 2006, 2007 and 2008 and Q1 2009
http://finance.yahoo.com/news/Huron-Consulting-Group-bw-4093325611.html?x=0&.v=1
Press Release
Source: Huron Consulting Group
On Monday August 17, 2009, 7:00 pm EDT
CHICAGO--(BUSINESS WIRE)--Huron Consulting Group Inc. (NASDAQ: HURN - News):
Revenues of $165.8 million for Q2 2009 increased 15.6% from $143.4 million in Q2 2008.
GAAP diluted earnings per share was $0.47 in Q2 2009 compared to $0.06 in Q2 2008.
Non-GAAP adjusted diluted earnings per share was $0.84 in Q2 2009 compared to $1.06 for Q2 2008.
Company filed restated financials for fiscal years 2006, 2007 and 2008 and Q1 2009.
Impact on net income and EBITDA(6) for all restated periods totaled approximately $56 million.
Restatement has no impact on cash, cash flows from operations or Adjusted EBITDA.
Company confirms full year 2009 revenue guidance of $650 million to $680 million.
Huron Consulting Group Inc. (NASDAQ: HURN - News), a leading provider of business consulting services, today announced its financial results for the second quarter ended June 30, 2009. Huron also announced that it has completed its restatement of financial statements for fiscal years 2006, 2007 and 2008 and Q1 2009. The Company filed its amended annual report on Form 10K/A for the year ended December 31, 2008, its amended quarterly report on Form 10Q/A for the quarter ended March 31, 2009, and Form 10Q for the quarter ended June 30, 2009 with the Securities and Exchange Commission (“SEC”). All prior period amounts have been restated in this press release.
As previously announced, the restatement pertains to the accounting for certain acquisition-related payments received by selling shareholders of four acquired businesses that were subsequently redistributed by such selling shareholders among themselves and to other select client-serving and administrative Company employees based, in part, on continuing employment with the Company or the achievement of personal performance measures. The selling shareholders were not prohibited from redistributing such acquisition-related payments under the terms of the purchase agreements with the Company for the acquisitions of the acquired businesses. The restatement items are non-cash charges with a total impact on net income and EBITDA for all restated periods of approximately $56 million. The restatement has no impact on cash, cash flows from operations or Adjusted EBITDA. The sellers have recently amended their agreements related to these payments as described below. While there can be no assurances, as discussed below, the Company currently anticipates that the non-cash compensation charges causing the restatement will not continue past July 31, 2009.
In evaluating the Company’s financial performance and consistent with previous periods, the Company has adopted the use of certain non-GAAP measures for a comparison to prior periods and for guidance as described below under “Use of Non-GAAP Financial Measures.”
Second Quarter 2009 Results
James H. Roth, chief executive officer, Huron Consulting Group said, “The on-going weakness in the economy and the recent restatement create a challenging environment for our people and our company. However, Huron is a vibrant company and our second quarter results reflect the fundamental strength of our operations. We believe that our diversified portfolio of services enables us to continue to succeed in our core markets.”
Revenues of $165.8 million for the second quarter of 2009 increased 15.6% from $143.4 million for the second quarter of 2008. GAAP net income was $9.6 million, or $0.47 per diluted share, for the second quarter of 2009 compared to $1.1 million, or $0.06 per diluted share, for the same period last year. The second quarter 2009 included a one-time gain of $2.7 million. Non-GAAP adjusted net income was $17.1 million, or $0.84 per diluted share, for the second quarter of 2009 compared to $19.2 million, or $1.06 per diluted share, for the comparable quarter in 2008. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) (6), which excludes share-based compensation expense, non-cash compensation expense, expenses relating to the restatement and a one-time gain of $2.7 million in the second quarter 2009, was $36.5 million, or 22.0% of revenues, compared to $32.8 million, or 22.9% of revenues, in the comparable quarter last year.
The average number of full-time billable consultants(2) increased 23.0% to 1,506 in the second quarter of 2009 compared to 1,224 in the same quarter last year. Full-time billable consultant utilization rate was 69.6% during the second quarter of 2009 compared with 66.8% during the same period last year. The average number of full-time equivalent professionals(5) totaled 854 in the second quarter of 2009 compared to 863 for the comparable period in 2008. Average billing rate per hour for full-time billable consultants was $264 for the second quarter of 2009 compared to $273 for the second quarter of 2008.
“Our Health and Education Consulting segment, which represents approximately 56 percent of revenue for the quarter, has continued the momentum we saw in the first quarter,” said Roth. “As pressure mounts on hospitals, healthcare organizations and universities, Huron’s services have been in high demand to help our clients address their business challenges. Our Legal Consulting segment, as expected, showed improved results in the second quarter as we saw solid demand for our document review and e-discovery services. On an overall basis, results for the Accounting & Financial and Corporate Consulting segments did not meet expectations as demand in the litigation and regulatory markets remained soft and the continued sluggishness in the macroeconomic environment dampened demand for other consulting services.”
Roth added, “In response to current market conditions we are taking action to align our cost structure with anticipated demand and are implementing a $30 million annualized cost reduction program. This will positively impact margins and allow us to continue to invest where we currently have strong market positions as well as to reward key contributors across all of our practice areas. One of Huron’s historical strengths has been an ability to adapt to the marketplace and help our clients meet their business challenges – this fundamental value remains unchanged. Our management team and our more than 2000 employees remain focused on serving our clients, growing our company, and creating long-term value for our stakeholders.”
Year-to-Date Results
Revenues of $328.9 million for the first six months of 2009 increased 16.3% from $282.8 million for the first half of 2008. GAAP net income was $16.7 million, or $0.82 per diluted share, for the first half of 2009 compared to $4.2 million, or $0.23 per diluted share, for the same period last year. The second quarter 2009 included a one-time gain of $2.7 million. Non-GAAP adjusted net income was $33.7 million, or $1.66 per diluted share, for the first half of 2009 compared to $32.1 million, or $1.77 per diluted share, for the comparable period in 2008. Adjusted EBITDA, which excludes share-based compensation expense, non-cash compensation expense, expenses relating to the restatement and a one-time gain of $2.7 million in the second quarter 2009, rose 11.4% to $72.4 million, or 22.0% of revenues, compared to $65.0 million, or 23.0% of revenues, in the comparable period last year.
The average number of full-time billable consultants(2) increased 24.4% to 1,522 in the first half of 2009 compared to 1,223 in the same period last year. The average number of full-time equivalent professionals(5) decreased slightly to 783 in the first half of 2009 compared to 807 for the comparable period in 2008. Full-time billable consultant utilization rate was 69.7% during the first half of 2009 compared with 65.9% during the same period last year. Average billing rate per hour for full-time billable consultants was $261 for the first half of 2009 compared to $275 for the first half of 2008.
Operating Segments
Huron’s long-term success is dependent upon its broad portfolio of service offerings that help clients address complex business challenges. The Company’s operating segments are as follows:
Health and Education Consulting – Representing approximately 56% of Huron’s total second quarter 2009 revenues, this segment met the Company’s second quarter expectations and continues to show solid growth as it helps healthcare institutions and universities respond to increased funding constraints and regulatory challenges. Huron’s services help the institutions it serves improve their financial and operational performance.
Legal Consulting – Representing approximately 19% of total second quarter 2009 revenues, this segment performed well as document review, e-discovery, and other consulting services continued to help Fortune 500 general counsels manage spiraling litigation and regulatory compliance costs in what are challenging times for the legal industry.
Accounting & Financial Consulting – Representing approximately 14% of total second quarter 2009 revenues, this segment continues to pursue opportunities in this evolving and event-driven market. While litigation and regulatory activity remains somewhat sluggish, Huron is pursuing opportunities in financial services, government services, and International Financial Reporting Standards (IFRS).
Corporate Consulting – Representing approximately 11% of total second quarter 2009 revenues, this segment is benefiting from solid demand for its Restructuring and Turnaround business while services being delivered in its Strategy, Utilities and Japan markets are experiencing softer demand.
Segment financial results are included in the attached schedules and discussed in greater detail in Huron's Form 10-Q for the quarter ended June 30, 2009.
Financial Restatement
The Audit Committee, assisted by legal and financial advisors, concluded as previously announced, that the Company would restate its financial statements for the fiscal years 2006, 2007 and 2008 and the first quarter of 2009.
The restatement pertains to the accounting for certain acquisition-related payments received by selling shareholders of four acquired businesses that were subsequently redistributed by such selling shareholders among themselves and to other select client-serving and administrative Company employees based, in part, on continuing employment with the Company or the achievement of personal performance measures.
The selling shareholders were not prohibited from redistributing such acquisition-related payments under the terms of the purchase agreements with the Company for the acquisitions of the acquired businesses. However, under GAAP, such payments are imputed to the Company, and the portion of such payments redistributed based on performance or employment is required to be reflected as non-cash compensation expense of the Company, even though the amounts received by the selling shareholders do not differ significantly from the amounts they would have received if such portion had been distributed solely in accordance with their ownership interests. The restatement is necessary because the Company did not record such portions of the acquisition-related payments as a separate non-cash compensation expense with a corresponding increase in paid-in capital.
The restatement resulted in a reduction of approximately $56 million in net income and EBITDA for all restated periods. For the three years 2008, 2007 and 2006, $38.1 million ($25.2 million in 2008, $12.8 million in 2007 and $0.1 million in 2006) was redistributed by the selling shareholders among themselves and $13.9 million ($5.4 million in 2008, $4.8 million in 2007 and $3.7 million in 2006) was redistributed to other Huron employees. The redistribution of the $38.1 million in 2008, 2007 and 2006 by the selling shareholders among themselves resulted in certain selling shareholders receiving an aggregate of $5.2 million ($2.7 million in 2008, $2.4 million in 2007 and $0.1 million in 2006) in excess of the amounts they would have received if the portion of the acquisition-related payments redistributed based on performance or employment had been distributed solely in accordance with their ownership interests. Other selling shareholders received a corresponding lower amount in 2008, 2007 and 2006 than they would have received based on their ownership interests. For additional detail with respect to these redistributed amounts, see the Company’s Form 10K/A filed on August 17, 2009.
The redistributed acquisition-related payments are not tax-deductible because the payments were not made by the Company, and there is no change to the provision for income taxes or the Company’s tax accounts on an annual basis. However, as a result of the correction of the errors related to the accounting for the acquisition-related payments, the Company recalculated its provision for income taxes for each of the quarterly periods in 2006, 2007 and 2008 and for the first quarter of 2009 using the annual effective income tax rate method in accordance with Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes.” As a result, the Company’s interim quarterly provision for income taxes decreased in certain periods and increased in others, with a corresponding change in income tax receivable or payable. The recalculation of the provision for income taxes also resulted in changes to the Company’s net income, earnings per share, total assets and total stockholders’ equity for each of the affected quarters that were in addition to the changes in the Company’s net income and earnings per share that resulted from the accounting of the redistributed acquisition-related payments as non-cash compensation expense and the corresponding adjustment to additional paid-in capital. As a result of the recalculation, the Company’s restated net income, restated basic earnings per share and restated diluted earnings per share for the quarter ended March 31, 2009, as set forth in the Form 10Q/A, was $7.1 million, $0.36 per share and $0.35 per share, respectively, compared to $6.0 million, $0.33 per share and $0.32 per share, respectively, for the same period, as set forth in the July 31 press release.
While the correction of the errors in accounting for the acquisition-related payments significantly reduced the Company’s net income and earnings per share for each of the affected periods, it had no effect on our total assets, total liabilities or total stockholders’ equity on an annual basis. The correction of these errors also had no effect on the Company’s cash or cash flows from operations or Adjusted EBITDA. See the attached schedules included in this release as well as schedules and disclosures included in the Company’s Form 10K/A filed on August 17, 2009, Form 10Q/A filed on August 17, 2009 and Form 10Q filed on August 17, 2009 for additional information with respect to the restatement.
Based on the results of the Company’s inquiry into the acquisition-related payments matter to date and the agreement amendments described below, the Company currently anticipates that future earn-outs will only be accounted for as additional purchase consideration and not also as non-cash compensation expense. Effective August 1, 2009, the selling shareholders of two of the acquired businesses each amended certain agreements related to the earn-outs to provide that future earn-outs will be distributed only to the applicable selling shareholders and only in accordance with their equity interests on the date we acquired the business with no required continuing employment. The Company expects to recognize approximately $8.3 million of non-cash compensation expense during the first seven months of 2009 related to the redistribution of acquisition-related payments for that period, of which $7.1 million was recognized in the six months ended June 30, 2009. In addition, the Company expects to incur a moderate increase in cash compensation expense in future periods related to shareholder payments and employee payments for such periods, which it currently estimate to be no more than $4 million in each of 2009, 2010 and 2011.
However, there can be no assurance that additional information will not be discovered that will require future acquisition-related payments pertaining to the acquired businesses to continue to be accounted for as non-cash compensation expense, which would be material to our results of operations through 2011. The earn-out payments for one of the acquired businesses are payable through March 31, 2010, and the earn-out payments for a second acquired business are payable through December 31, 2011. There are no additional earn-out obligations related to the other two acquired businesses.
Additionally, as a result of the impact that our restatement may have on the business, the Company expects to incur a moderate increase in cash compensation expense to retain our top-performing employees. It also expects an increase in operating expenses, including legal fees, as a result of the Company’s inquiries into the acquisition-related payments and the allocation of chargeable hours further described below, the restatement, the SEC investigation with respect to the circumstances that led to the restatement, the SEC inquiry into the allocation of chargeable hours and the purported shareholder class action lawsuits in respect of the restatement.
Having completed the restatement and upon the delivery of compliance certificates for the second quarter of 2009 to its lenders under the Company’s credit agreement, the Company expects to be in full compliance with the financial covenants under the credit agreement. However, as a result of the significant decline in the price of the Company’s common stock following the July 31, 2009 announcement of the restatement, the Company expects to engage in an impairment analysis with respect to the carrying value of its goodwill in connection with the preparation of its financial statements for the quarter ended September 30, 2009. If, following such analysis, the Company is required to record a non-cash goodwill impairment charge, the Company may not be in compliance with the financial covenants in its credit agreement. There can be no assurance that the Company will remain in compliance with the financial covenants under the credit agreement or, if it does not, that it will obtain any necessary amendments or waivers from any lenders and, even if the Company is able to obtain them, such amendments or waivers may subject the Company to terms materially less favorable than those in its current agreement.
Also as previously announced, the SEC is commencing an investigation with respect to the circumstances that led to the restatement. In addition to the SEC investigation, the Company has conducted a separate inquiry, in response to an inquiry from the SEC, into the allocation of chargeable hours. This matter has no impact on billings to the Company’s clients, and did not result in an adjustment to the Company’s historical financial statements. The Company intends to cooperate fully with the SEC in its investigation and inquiry. In addition, several purported shareholder class action complaints have been filed in connection with the restatement, which assert claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The Company intends to defend vigorously the actions.
See the Company’s Form 10K/A filed on August 17, 2009, Form 10Q/A filed on August 17, 2009 and Form 10Q filed on August 17, 2009 for additional information about the expected impairment analysis, the SEC investigation and inquiry, and the private litigation.
John McCartney, chairman of the Audit Committee of Huron Consulting Group’s Board of Directors said, “We are confident that our review of the Company’s accounting for the acquisition-related payments has identified the necessary adjustments to our financial statements and we have taken appropriate action in connection with these matters. We continue to cooperate fully with the SEC investigation with respect to the restatement, as well as the SEC inquiry into the allocation of chargeable hours. It is important that Huron continue to focus on providing high-quality service to its clients. The Company also appreciates the support it has received from its employees and many of its clients during this process.”
“The Company recognizes that employee retention is a key to the Company’s continued success, and earlier this year, the Company began working with an external compensation consultant to update the Company’s compensation structure for Managing Directors. Huron has an optimistic view of the future and is committed to retaining and properly rewarding key performers in the organization,” added McCartney.
Outlook for 2009
The Company also confirmed its previously disclosed guidance for full year 2009 revenues before reimbursable expenses in a range of $650 million to $680 million. Management will provide a more detailed discussion of operations during the Company’s earnings conference call and webcast.
Second Quarter 2009 Webcast
In light of the significant amount of information that has been released, the Company will host a webcast to discuss its financial results, the restatement and the current state of the business on Wednesday, August 19, 2009, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The conference call is being webcast by Thomson and can be accessed at Huron Consulting Group’s website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.
About Huron Consulting Group
Huron Consulting Group helps clients in diverse industries improve performance, comply with complex regulations, resolve disputes, recover from distress, leverage technology, and stimulate growth. The Company teams with its clients to deliver sustainable and measurable results. Huron provides services to a wide variety of both financially sound and distressed organizations, including leading academic institutions, healthcare organizations, Fortune 500 companies, medium-sized businesses, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com.
Use of Non-GAAP Financial Measures
In evaluating the Company’s financial performance and outlook, management uses EBITDA, Adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management believes that such measures, as supplements to operating income, net income and diluted earnings per share and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of our core operating results and future prospects without the effect of non-cash or special items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and to repay debt. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.
Statements in this press release, including the information incorporated by reference herein, that are not historical in nature, including those concerning the Company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “plans,” “anticipates,” “assumes,” “can,” “considers,” “could,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates” or “continues”. Risks, uncertainties and assumptions that could impact the Company’s forward-looking statements relate, among other things, to (i) the restatement, (ii) the SEC investigation and related Company inquiries with respect to the circumstances that led to the restatement, (iii) the SEC and related Company inquiries into the allocation of chargeable hours, (iv) the Company’s projected accounting treatment for acquisition-related payments after August 1, 2009, and (v) management’s assessment of the Company’s internal control over financial reporting and any required remediation. In addition, these forward-looking statements reflect our current expectation about our future results, levels of activity, performance, or achievements, including, without limitation, that our business continues to grow at the current expectations with respect to, among other factors, utilization rates, billing rates, and number of revenue-generating professionals; that we are able to expand our service offerings; that we successfully integrate the businesses we acquire; and that existing market conditions, including those in the credit markets, do not continue to deteriorate substantially. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Please see “Risk Factors” in our 2008 Annual Report on Form 10K/A and in our Quarterly Report on Form 10-Q for the period ended June 30, 2009 for a description of the material risks we face.
HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three months ended
June 30, Six months ended
June 30,
2009 2008 2009 2008
(Restated) (Restated)
Revenues and reimbursable expenses:
Revenues $ 165,847 $ 143,408 $ 328,856 $ 282,802
Reimbursable expenses 13,146 12,565 27,386 24,178
Total revenues and reimbursable expenses 178,993 155,973 356,242 306,980
Direct costs and reimbursable expenses (exclusive of depreciation and amortization shown in operating expenses):
Direct costs 105,411 98,876 208,304 187,340
Intangible assets amortization 1,087 24 2,773 48
Reimbursable expenses 13,105 12,578 27,405 24,188
Total direct costs and reimbursable expenses
119,603
111,478 238,482 211,576
Operating expenses:
Selling, general and administrative 34,506
31,780 69,037 61,942
Depreciation and amortization 5,848
5,370 11,607 10,508
Total operating expenses 40,354
37,150 80,644 72,450
Other gain 2,687
— 2,687 —
Operating income 21,723
7,345 39,803 22,954
Other income (expense):
Interest expense, net of interest income (3,020) (2,294) (5,753) (4,127)
Other income (expense) 642 (35) 171 (329)
Total other expense (2,378) (2,329) (5,582) (4,456)
Income before provision for income taxes 19,345 5,016 34,221 18,498
Provision for income taxes 9,699 3,881 17,499 14,314
Net income $ 9,646 $ 1,135 $ 16,722 $ 4,184
Earnings per share:
Basic $ 0.49 $ 0.06 $ 0.85 $ 0.24
Diluted $ 0.47 $ 0.06 $ 0.82 $ 0.23
Weighted average shares used in calculating earnings per share:
Basic 19,752 17,558 19,641 17,465
Diluted 20,405 18,178 20,329 18,197
HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
June 30,
2009 December 31,
2008
(Restated)
Assets
Current assets:
Cash and cash equivalents $ 5,627 $ 14,106
Receivables from clients, net 86,412 88,071
Unbilled services, net 55,359 43,111
Income tax receivable 2,294 3,496
Deferred income taxes 16,523 15,708
Prepaid expenses and other current assets
16,472 14,563
Total current assets
182,687 179,055
Property and equipment, net 44,134 44,708
Deferred income taxes — 2,064
Other non-current assets 16,932 15,722
Intangible assets, net 26,880 32,372
Goodwill 506,502 505,676
Total assets $ 777,135 $ 779,597
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 7,887 $ 6,505
Accrued expenses 23,586 27,361
Accrued payroll and related benefits 41,308 48,374
Accrued consideration for business acquisitions 15,075 60,099
Income tax payable 2,716 2,086
Deferred revenues 15,916 21,208
Current portion of capital lease obligations
368 518
Total current liabilities
106,856 166,151
Non-current liabilities:
Deferred compensation and other liabilities 7,257 5,511
Capital lease obligations, net of current portion 94 204
Bank borrowings 295,000 280,000
Deferred lease incentives
8,958
8,705
Deferred income taxes 941
—
Total non-current liabilities
312,250 294,420
Commitments and contingencies —
—
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 22,132,545
and 21,387,679 shares issued at June 30, 2009 and December 31, 2008, respectively
206 202
Treasury stock, at cost, 595,069 and 404,357 shares at June 30, 2009 and
December 31, 2008, respectively
(31,735) (21,443)
Additional paid-in capital 296,150 263,485
Retained earnings
93,453 76,731
Accumulated other comprehensive income (loss) (45) 51
Total stockholders’ equity 358,029 319,026
Total liabilities and stockholders’ equity $ 777,135 $ 779,597
HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six months ended
June 30,
2009 2008
(Restated)
Cash flows from operating activities:
Net income $ 16,722 $ 4,184
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 14,380 10,556
Share-based compensation 13,438 13,568
Non-cash compensation 7,107 17,905
Allowances for doubtful accounts and unbilled services 2,451 1,172
Deferred income taxes 2,493 687
Non-cash gain and other (2,686) —
Changes in operating assets and liabilities, net of businesses acquired:
Increase in receivables from clients
(2) (1,647)
Increase in unbilled services (13,682) (17,866)
Decrease in current income tax receivable / payable, net 1,773 5,289
Decrease (increase) in other assets 582 (5,755)
Increase in accounts payable and accrued liabilities 2,935 3,357
Decrease in accrued payroll and related benefits (7,397) (28,789)
(Decrease) increase in deferred revenues (6,459) 2,099
Net cash provided by operating activities
31,655 4,760
Cash flows from investing activities:
Purchases of property and equipment, net (8,427) (13,324)
Net investment in life insurance policies (808) (1,249)
Purchases of businesses, net of cash acquired (47,065) (34,554)
Net cash used in investing activities
(56,300) (49,127)
Cash flows from financing activities:
Proceeds from exercise of stock options 116 181
Shares redeemed for employee tax withholdings (1,921) (5,744)
Tax benefit from share-based compensation 3,637 6,384
Proceeds from borrowings under credit facility 164,500 173,500
Repayments on credit facility (149,500) (117,500)
Payments of capital lease obligations (191) (1,214)
Net cash provided by financing activities
16,641 55,607
Effect of exchange rate changes on cash (475) 102
Net (decrease) increase in cash and cash equivalents (8,479) 11,342
Cash and cash equivalents at beginning of the period 14,106 2,993
Cash and cash equivalents at end of the period $ 5,627 $ 14,335
Supplemental disclosure of cash flow information:
Non-cash investing activity:
Issuance of note payable for purchase of a business $ — $ 23,000
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Three Months Ended
June 30, Percent
Increase
(Decrease)
Segment and Consolidated Operating Results (in thousands): 2009 2008
(Restated)
Health and Education Consulting:
Revenues $ 93,205 $ 56,696 64.4%
Operating income (1) $ 34,849 $ 19,502 78.7%
Segment operating income as a percent of segment revenues 37.4% 34.4%
Accounting and Financial Consulting:
Revenues $ 22,515 $ 34,789 (35.3%)
Operating income (loss) (1) $ 2,016 $ (722) N/M
Segment operating income as a percent of segment revenues 9.0% (2.1%)
Legal Consulting:
Revenues $ 31,241 $ 30,498 2.4%
Operating income $ 7,715 $ 10,076 (23.4%)
Segment operating income as a percent of segment revenues 24.7% 33.0%
Corporate Consulting:
Revenues $ 18,886 $ 21,425 (11.9%)
Operating income (1) $ 6,246 $ 5,611 11.3%
Segment operating income as a percent of segment revenues 33.1% 26.2%
Total Company:
Revenues $ 165,847 $ 143,408 15.6%
Reimbursable expenses 13,146 12,565 4.6%
Total revenues and reimbursable expenses $ 178,993 $ 155,973 14.8%
Statement of operations reconciliation:
Segment operating income $ 50,826 $ 34,467 47.5%
Charges not allocated at the segment level:
Other selling, general and administrative expenses 23,255 21,752 6.9%
Depreciation and amortization expense 5,848 5,370 8.9%
Total operating income 21,723 7,345 195.8%
Other expense, net 2,378 2,329 2.1%
Income before provision for income taxes $ 19,345 $ 5,016 285.7%
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting 885 489
Accounting and Financial Consulting 263 338
Legal Consulting 141 159
Corporate Consulting 159 221
Total 1,448 1,207
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting 904 481
Accounting and Financial Consulting 285 352
Legal Consulting 152 166
Corporate Consulting 165 225
Total 1,506 1,224
Full-time billable consultant utilization rate (3):
Health and Education Consulting 75.4% 80.8%
Accounting and Financial Consulting 54.5% 51.9%
Legal Consulting 61.9% 62.6%
Corporate Consulting 70.8% 62.3%
Total 69.6% 66.8%
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
Three Months Ended
June 30,
Other Operating Data: 2009 2008
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting $ 261 $ 267
Accounting and Financial Consulting $ 254 $ 285
Legal Consulting $ 212 $ 236
Corporate Consulting $ 333 $ 303
Total $ 264 $ 273
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting $ 93 $ 106
Accounting and Financial Consulting $ 66 $ 66
Legal Consulting $ 61 $ 68
Corporate Consulting $ 111 $ 91
Total $ 87 $ 87
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting 109 50
Accounting and Financial Consulting 63 185
Legal Consulting 678 619
Corporate Consulting 4 9
Total 854 863
Revenue per full-time equivalents (in thousands):
Health and Education Consulting $ 81 $ 113
Accounting and Financial Consulting $ 61 $ 63
Legal Consulting $ 32 $ 31
Corporate Consulting $ 129 $ 98
Total $ 41 $ 43
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)
Six Months Ended
June 30, Percent
Increase
(Decrease)
Segment and Consolidated Operating Results (in thousands): 2009 2008
(Restated)
Health and Education Consulting:
Revenues $ 186,762 $ 107,784 73.3%
Operating income (1) $ 69,344 $ 38,847 78.5%
Segment operating income as a percent of segment revenues 37.1% 36.0%
Accounting and Financial Consulting:
Revenues $ 46,955 $ 73,600 (36.2%)
Operating income (1) $ 3,732 $ 7,640 (51.2%)
Segment operating income as a percent of segment revenues 7.9% 10.4%
Legal Consulting:
Revenues $ 54,109 $ 55,721 (2.9%)
Operating income $ 10,956 $ 16,663 (34.2%)
Segment operating income as a percent of segment revenues 20.2% 29.9%
Corporate Consulting:
Revenues $ 41,030 $ 45,697 (10.2%)
Operating income (1) $ 14,105 $ 13,982 0.9%
Segment operating income as a percent of segment revenues 34.4% 30.6%
Total Company:
Revenues $ 328,856 $ 282,802 16.3%
Reimbursable expenses 27,386 24,178 13.3%
Total revenues and reimbursable expenses $ 356,242 $ 306,980 16.0%
Statement of operations reconciliation:
Segment operating income $ 98,137 $ 77,132 27.2%
Charges not allocated at the segment level:
Other selling, general and administrative expenses 46,727 43,670 7.0%
Depreciation and amortization expense 11,607 10,508 10.5%
Total operating income 39,803 22,954 73.4%
Other expense, net 5,582 4,456 25.3%
Income before provision for income taxes $ 34,221 $ 18,498 85.0%
Other Operating Data:
Number of full-time billable consultants (at period end) (2):
Health and Education Consulting 885 489
Accounting and Financial Consulting 263 338
Legal Consulting 141 159
Corporate Consulting 159 221
Total 1,448 1,207
Average number of full-time billable consultants (for the period) (2):
Health and Education Consulting 909 467
Accounting and Financial Consulting 291 360
Legal Consulting 155 170
Corporate Consulting 167 226
Total 1,522 1,223
Full-time billable consultant utilization rate (3):
Health and Education Consulting 76.8% 79.5%
Accounting and Financial Consulting 52.5% 51.9%
Legal Consulting 57.7% 60.1%
Corporate Consulting 72.3% 63.8%
Total 69.7% 65.9%
HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)
Six Months Ended
June 30,
Other Operating Data: 2009 2008
Full-time billable consultant average billing rate per hour (4):
Health and Education Consulting $ 253 $ 268
Accounting and Financial Consulting $ 254 $ 276
Legal Consulting $ 222 $ 235
Corporate Consulting $ 348 $ 317
Total $ 261 $ 275
Revenue per full-time billable consultant (in thousands):
Health and Education Consulting $ 186 $ 210
Accounting and Financial Consulting $ 127 $ 131
Legal Consulting $ 120 $ 133
Corporate Consulting $ 235 $ 196
Total $ 173 $ 174
Average number of full-time equivalents (for the period) (5):
Health and Education Consulting 102 43
Accounting and Financial Consulting 83 212
Legal Consulting 591 544
Corporate Consulting 7 8
Total 783 807
Revenue per full-time equivalents (in thousands):
Health and Education Consulting $ 177 $ 223
Accounting and Financial Consulting $ 120 $ 124
Legal Consulting $ 60 $ 61
Corporate Consulting $ 247 $ 181
Total $ 83 $ 87
(1) Includes non-cash compensation expense as follows (in thousands):
Three Months Ended
June 30, Six Months Ended
June 30,
2009 2008 2009 2008
Health and Education Consulting $ 2,238 $ 3,177 $ 4,872 $ 5,964
Accounting and Financial Consulting 812 8,702 1,624 9,929
Corporate Consulting 295 1,006 611 2,012
Total $ 3,345 $ 12,885 $ 7,107 $ 17,905
(2) Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked.
(3) Utilization rate for our full-time billable consultants is calculated by dividing the number of hours all our full-time billable consultants worked on client assignments during a period by the total available working hours for all of these consultants during the same period, assuming a forty-hour work week, less paid holidays and vacation days.
(4) Average billing rate per hour for our full-time billable consultants is calculated by dividing revenues for a period by the number of hours worked on client assignments during the same period.
(5) Consists of consultants who work variable schedules as needed by our clients, as well as contract reviewers and other professionals who generate revenues primarily based on number of hours worked and units produced, such as pages reviewed and data processed. Also includes full-time employees who provide software support and maintenance services to our clients.
N/M Not meaningful, change greater than 500%.
HURON CONSULTING GROUP INC.
RECONCILIATION OF NET INCOME TO
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (6)
(in thousands and unaudited)
Three months ended
June 30, Six months ended
June 30,
2009 2008 2009 2008
(Restated) (Restated)
Revenues $ 165,847 $ 143,408 $ 328,856 $ 282,802
Net income $ 9,646 $ 1,135 $ 16,722 $ 4,184
Add back:
Provision for income taxes 9,699 3,881 17,499 14,314
Interest and other expenses 2,378 2,329 5,582 4,456
Operating income 21,723 7,345 39,803 22,954
Add back:
Depreciation and amortization 6,935 5,394 14,380 10,556
Earnings before interest, taxes, depreciation and amortization (EBITDA) (6) 28,658 12,739 54,183 33,510
Add back:
Share-based compensation 6,800 7,150 13,438 13,568
Non-cash compensation 3,345 12,885 7,107 17,905
Expenses relating to restatement 385 — 385 —
Other gain (2,687) — (2,687) —
Adjusted EBITDA (6) $ 36,501 $ 32,774 $ 72,426 $ 64,983
Adjusted EBITDA as a percentage of revenues 22.0% 22.9% 22.0% 23.0%
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (6)
(in thousands and unaudited)
Three months ended
June 30, Six months ended
June 30,
2009 2008 2009 2008
(Restated) (Restated)
Net income $ 9,646 $ 1,135 $ 16,722 $ 4,184
Diluted earnings per share $ 0.47 $ 0.06 $ 0.82 $ 0.23
Add back:
Amortization of intangible assets 2,456 1,694 5,512 3,418
Share-based compensation 6,800 7,150 13,438 13,568
Non-cash compensation 3,345 12,885 7,107 17,905
Expenses relating to restatement 385 — 385 —
Other gain (2,687) — (2,687) —
Tax effect
(2,851) (3,618) (6,825) (6,948)
Total adjustments, net of tax
7,448 18,111 16,930 27,943
Adjusted net income (6) $ 17,094 $ 19,246 $ 33,652 $ 32,127
Adjusted diluted earnings per share (6) $ 0.84 $ 1.06 $ 1.66 $ 1.77
(6) In evaluating the Company’s financial performance, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management believes that the use of such measures, as supplements to operating income, net income and diluted earnings per share and other GAAP measures, are useful indicators for investors. These useful indicators can help readers gain a meaningful understanding of our core operating results and future prospects without the effect of non-cash or special items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and to repay debt. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.
Q2 2009 results were pretty solid...
Adjusting Q2 2009 for $3.3 million in non-cash compensation, $2.7 million one-time gain and removing intangible amortization of $1.1 million, HURN had EPS on a fully-diluted basis of $0.55 in the quarter.
A couple more quarters like this and the all-clear from the SEC and HURN will be back in the $30's, IMHO.
<< So, afternoon’s earnings report isn’t reliable aye? >>
Is that a question?
10nis
RE: No New Normal JPMorgan Sees V-Shaped Recovery on Robust Growth
<< “Whenever we have plunged off a cliff and fallen into a deep hole in the past, for a while the economy has a tendency to bounce back very quickly,” said Glassman, a senior economist at JPMorgan in New York. Glassman and his colleagues this month said forecasts of 3 percent to 4 percent growth in coming quarters may be too low given “pent-up” consumer demand. >>>
The reason why we'll have 3-4% growth is because we've bounced back before. That's the best reason a senior economist at JPM can give?
<< “The thing I object to most about the New Normal idea is that we are stuck and have to accept higher unemployment --if you look at the Fed, they are doing everything they can to fight it,” said Glassman, who formerly worked as a Fed economist in Washington. >>
I love the "I object because the Fed is doing everything they can to fight it." Hahaha... Anything is possible when the Fed is doing everything. Maybe the Fed will force businesses to hire millions of older baby boomer generation workers or the glut of construction workers, union assembly workers, etc... Or maybe they can hire them all as weathermen I mean economists.
<< Meyer expects gross domestic product to jump by 3.6 percent in 2010 and 3.9 percent in 2011. Annual growth surpassed 3 percent only once so far this decade, in 2004, and has averaged just 2.2 percent.
“The big driver of that is home prices,” said Meyer, referring to his recovery forecast. “If home prices stabilize, that is a tremendous boost to housing that dominates every other variable in our equation. There is a lot of pent-up demand in that particular area.” >>
What about the current supply of homes? Residential construction may have bottomed but there is no reason why there's going to be a significant increase with the current glut of new and existing homes and high rise condos for sale. This also does not take into consideration the shadow inventory of homes that will hit the market if things do improve nor foreclosures. Home prices may not fall too much more but there is a massive supply that will take years to work down and rents have started falling rather significantly. He also fails to talk about the drag commercial construction is going to have on the economy for the next couple years.
<< A rebound in equities in recent months will help repair households’ balance sheets and buttresses the outlook for spending, said Glassman at JPMorgan. The Standard & Poor’s 500 Stock Index has climbed about 50 percent from its low in March. U.S. stock-market capitalization has increased by almost $4 trillion in that time. >>
Equities are still 35% from their October 2007 highs... Its great $4 trillion has been recouped however, $6-7 trillion has been lost from the highs. Throw in residential real estate losses and the average consumer has lost a ton of net worth.
<< Neal Soss, chief economist at Credit Suisse Group AG in New York, played down concern that the economy may suffer a “double dip” recession. “Historically these double dips are routinely forecast and actually very rarely come to pass,” Soss said in a Bloomberg TV interview this week. “Once the economy tends to get some upward momentum, it tends to keep going that way.” >>
Another because its improved in the past it'll improve this time. Why can't these seven figure economists come up with at least a few good reasons?
<< SEC investigation focuses on accounting at Huron Consulting Group >>
This is old news. It was obvious this was going to happen when HURN needed to restate three years of financials. Yet another perfect opportunity to load up the boat. The SEC investigation will result in no material adjustments and HURN will rise back to its proper valuation.
10nis
<<< Assuming they do - they are still years away from getting an NDA submitted and approved. TSPT will have approval in a little more then $60 days and it's still only trading around NET CASH. Sales doesn't matter - its all about risk vs. reward. >>>
Is your real name James Cramer? Because you sound a lot like him except without the buy, buy, buy part...
When someone says sales do not matter its all about risk vs. reward...it makes me wonder whether you understand risk at all.
BTW, where did you find AVNR shares to short this morning? As I couldn't find any....
10nis
This whole thing is comical...
The press is calling this a scandal. Scandal? HURN made earn-out payments to selling owners who took a portion of these earn-out payments and paid it back to some of HURN's employees that helped generate the earn-out payments. HURN had no control and no awareness that the previous owner's disbursed these payments to some of its workers and thus didn't record it as such. However, these payments would be construed as one-time adjustments that would have not been included in any on-going valuation model.
Therefore, the one-time non-compensation expense have no cash impact and thus should have no impact on the valuation of HURN.
Purchasing HURN at current levels is a no-brainer, IMHO.
Target price - $30 in the coming 12-15 months.
10nis
<<< OT Grandpatb:
I find it somewhat unusual that no one is mentioning that there was a stimulus check for those on social security incomes, military and railroad pensions issued in this last quarter.
That should have helped the gdp figures. >>>
Somewhat unusual?? The press is trying to be bullish and inflate the markets before reality sets in again. For example, real estate prices were actually DOWN 2.5% versus UP when you look at seasonally adjusted Case Shiller numbers versus the unadjusted numbers that the press jumped. The seasonlly adjusted numbers are the correct numbers to use unless of course you're looking for green shoots. Also, the only positive growth in Q2 GDP was from government spending and it decent boast to the results.
Also, take a look at the number of unemployed workers whose unemployment benefits run out in the coming months... 500k on September 30, 2009 and 1.5 million on December 31, 2009. Nobody in the press cares to talk about this growing trend... I wonder why. Green shoots anyone?
<<< (OT) Don't worry about MSFT or DELL.
They won't turn the corner until "back to school" and if they prepared well, they will survive on scraps from APPL's lunch.
Let some principle run. Still some 40% of investing market capitalization is being held in money markets and will be chasing higher. >>>
MSFT will survive on scraps from AAPL's lunch?? You're drinking some good Kool-Aid...
40% of investing market cap is being held in money markets?? I would love to see your data on that because it's just not correct. Investable cash has come down significantly over the past 4 months especially on a percentage basis to market capitalization as markets have risen significantly. Also, weekly money market withdrawals have been considerable greater than the amount of cash entering the equity and bond markets.
OT - Car insurance
Wisconsin is the only other state that does not require car insurance.