Huron Consulting (HURN) 27 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to Huron Consulting Group's Webcast to Discuss Financial Results for the Fourth Quarter and Full Year of 2023. [Operator Instructions] As a reminder, this conference call is being recorded.

Before we begin, I would like to point all of you to the disclosure at the end of the company's news release for information about any forward-looking statements that may be made or discussed on this call. The news release is posted on Huron's website. Please review that information along with the filings with the SEC for a disclosure of factors that may impact subjects discussed in this afternoon's webcast.

discussing more be financial will company one non-GAAP or measures. The reconciliations and at required website including comparable the look on numbers. by the GAAP earnings SEC, disclosures Please the release Huron's most of for the to all

the now Mark over President Huron Hussey, And Hussey, Mr. and to Consulting Officer call Group. to Executive please would like of I turn Chief go ahead.

Call. Officer; Kelly, to Huron Chief by and we Ronnie XXXX segments expanded third Earnings margins and Quarter our our Consulting Full John our in revenues are Financial Fourth welcome for the With Group's and year. Operating today afternoon, consecutive strong and all Good Dail, growth XXXX, Chief me X operating record Year Officer. Driven achieved across operating

culminating Our fourth in XXXX. full performance quarter year for performance financial was expectations, our record consistent with

fourth Digital grew quarter across Managed Consulting our full and of our all XX%, and In $XXX our approaching grew segments. revenues, represents half X represented year revenue and respectively. XX%, million XX% X% revenues over capability in of grew Revenues XX%, our the achieving and that XXXX, is Services operating which capability, XXXX while

XXXX Full our maintaining EBITDA adjusted us of progress prior continued year, to EBITDA while financial toward $XXX million cash return over to share XX and margins in reflecting a points via year basis mid-teen our XXXX, repurchases margins the enabled by returning strong objective improved flow position. shareholders to strong

objectives. we've of foundation on strength demonstrates established our investor financial Our continue the model the delivering integrated under performance our medium-term go-to-market to

positions low increased revenue in market objectives portfolio our commercial our meet education, expertise care expanding Our of us presence profitability. double-digit and for or to growing leading financial and exceed health and and in well medium-term industry growth deep digital capabilities positions industries our

along expectations with Now full I'll XXXX. XXXX our and for our fourth performance year quarter discuss

full was financial prior strategy the quarter managed advisory XXXX, segment record reflecting Healthcare innovation, performance segment demand and the digital, year digital revenues and XXXX. our million, services In achieved across improvement revenue Demand and of a performance widespread strategy basis, grew improvement, $XXX over the over fourth across and Healthcare quarter, advisory, year our offerings. strong innovation, offerings. growing On XX% XX% of financial the

Consulting Managed revenues capability revenues increased and Our over XX% prior increased year. Services and Digital the XX%

continue foundation health meet We for portfolio clients to our to expanding this the of diversify for segment. growth a build needs strong ongoing our and care

As health we've inflationary diverse in investments innovation, health new for and XXXX. rate in services, to of business Despite products models. create growth in to We financial challenges health many on systems care in earnings volume, paper-driven improve combined pressures. significant our deteriorating competition, will financial I patient system to set headwinds, confluence mentioned interest to pressures overall the our and market partnerships and health face increasing payer Healthcare continue well made last some opportunities segment continued with operating A XXXX. create operating positions for call, began environment these mix our The offerings. care improvements providers continue believe for the challenges, and of and make

revenues segment quarter Education our for to by now offerings. X% XXXX, prior the record revenues segment Turning digital achieving the $XXX segment. Annual increased of driven demand million. quarter the to fourth in over Education primarily XX% year In of the compared XXXX, revenues grew

strategy Services with XXXX. broad-based, and XX% For offerings our XX%, Managed respectively, revenues operational remain solid demand increasing and believe digital, Digital We strong research Consulting financial revenues and for as and and higher-education the face operations our and full year, institutions demand will was continued over the challenges.

university of support platforms, the the for a labor the well admissions. to competitive clients, our create and to makes costs, of of and the government of challenges trusted and and college-bound environment results numbers financial declining higher faced highly us reliance reputation, creates the through to pressures the increased unfunded leading facilities digital client education advisers by on achievement health mandates, challenges relationships proven demographic mentioned our to frequently challenges well-established Similar The clients students set care long one us of believe most to positions deep diverse history industry, admissions. Huron's which we industry. increased

pillar I mission-driven Before to strategy. in highlight of announced turn end like a will would Commercial markets, growth recently we make segment, which to our our the to I accelerate the is investment key our

month, mission-driven firm, and acquisition our clients. our arts us to other consulting management This services expect our intent next leading And creates consulting announced strengthens serve complements to close philanthropy-focused we the organizations. our transaction to acquire philanthropic digital GG+A, new and month. we pathways non-profit and education this care, offerings, Earlier serves health a institutions advancement-focused for

Digital within capability declines The On Now offerings. was and and growth year Commercial year-over-year. capability turnaround restructuring the prior Managed the offerings, Consulting the our primarily year quarter as basis, Commercial X% X%, segment was demand strong the for fourth our our turning advisory revenues In were quarter XXXX, financial Commercial grew respectively. XXXX, by XX% XX% Commercial and which in grew A offerings. and grew driven business, to broad-based and strategy to Services for by standout a our performer segment segment segment. flat over innovation revenues growth of digital of our full offset attributable

some environment, including have the mid-market commercial risks, macroeconomic The unique among rising particularly clients. created in interest uncertainties pressures rates, of inflationary geopolitical our challenges, broader and

in for many the is cautious economic our This means case, to initiatives. XXXX. should approach take uncertain often As mixed executing large-scale more environment a offerings an organizations created demand

were offerings expertise. the our Our many sought strong distress as financial financial organizations year facing past demand during advisory in

is were XXXX. grew digital about digital initiatives. indicators more on cautious were projects seeing as spending more digital commercial demand improving large-scale we slowly positive their some Our offerings begin as organizations We for now that

tap maintaining a the more pulling segment enterprise expanding of Our our growth within portfolio. commercial and industry and XXXX growing capabilities industries in our platform. across focused more while the We diversified demonstrates commercial in Commercial on balanced remain importance our presence by balance

Now let our acquisition XXXX, to guidance our me for of pending which expectations and turn contemplates GG+A.

billion $X.XX the $X.XX for guidance to billion. is revenue year Our

in also the adjusted company-wide, XX.X% adjusted midpoint share to XXXX. $X.XX; diluted to at to revenues and earnings XX.X% for We of XX% per the EBITDA of guiding revenue of expect $X.XX range growth

significant as proud achieved years. in We're accelerate at pursuing XXXX the we achieving Day double-digit growth and opportunities We offerings growth in we revenue will recent XXXX. Investor that remain through annual XXXX our of established of our objective demonstrated while those goals growth we for low portfolio XXXX, demand beyond focused to on and continue believe

$X.XX XX guidance, building off midpoint XXXX, achieved margins, collective improvement a and we terms guided over adjusted expansion The shareholders of share XXXX. the XXX than XXXX In repurchases. and basis of per point our midpoint our XXX% of adjusted earnings to to point $X.XX the of improvement our per revenue is of return $X.XX, EPS growth, basis impact XXXX XXXX higher compounding of share actually via expect the margin in which range reflects share

growth commercial markets capital and sustainable and margin our our committed profitability. for education; in capabilities accelerating strategically core sustainable offerings objectives, to our second, financial broadening the remain to growing fourth, first, business; And focused of key improve to revenue which while platform; to and our objectives of We and a potential analytics greatest growth and X expansion; business fifth, global the health technology revenue shareholders. our areas: build achieving to invest deploying growth areas and growth these returning from base to digital in capital care advancing with consistent end we our in expanding third, drive deliver remain

upon reinforced continue and to help our Our us growth the most the strategy which strengthen competitive years, deliver delivered has believe together, we the when it be And one line foundation create from results value challenges, will top in enhance bottom on achieve growth recent our for pillars another. our strong strategy full and and Each executed of of for it will future. our to advantage complex build ability clients' to shareholders. our will we

Together, XXX team only we've and our on environment, year culture a XXXX the Companies Best at which work and and The Glassdoor vibrant of list. our our XXnd and for rankings Glassdoor's Huron of because demonstrate their client-centric financial on U.S. Huron, has a our Huron incredibly and commitment talented was impact on and securing success. position the Huron's by of our these heart lasting out had record business. a always culture that results impact and making clients supportive reflected are culture collaborative possible a our results collectively has Places to considerable was remains Large performance. team built to Work the had

opportunities our We're take our success won't excited We recent executing on strengthen of competitive the advantage that We market XXXX lie to granted. about remain as take focused for strategy. our ahead. position prospects for our we

for I'm our And John now over discussion more a to financial of detailed lose turn it I before going results. words, my John? to

afternoon, and everyone. Mark, Thank you, good

I begin, financial information most please to believes and and I and be The provide reconciliations net uses Relations Investor results. why these page adjusted to non-GAAP EPS measures Before discussion cash of with financial the that comparable as management non-GAAP and release, GAAP useful Huron's these condition adjusted measures, regarding on operating non-GAAP along such have note free press income, the of they EBITDA, measures XX-K management EBITDA, measures, investors our why adjusted discussing flow. website will

our financial items results to like housekeeping first for the I'd touch on discussing quarter. two before

intent our acquire GG+A. announced First, earlier month, to this we

We help expand fourth included accelerate transaction expertise strengthen the and our mission-driven quarter it to expect offerings in of our our results. not of clients that The close and quarter to first philanthropic build such, XXXX, GG+A and in will is consulting their industry programs. our as acquisition

note net provide during release. on income our tax, unrealized a company. related includes of press net me loss brief to $XX.X quarter noncash investment a in a let hospital-at-home a million, our comment Second, the GAAP of in

quarter investment hospital-at-home financing net on As our $X quarter. annually the meaningful valuation strategic gain that segment. In first a in a a of implementation million, the that recognized for and we around company $XX.X projects has invested tax, closed of we produced that noncash in as a established of reminder, Healthcare XXXX, this based unrealized the million investment XXXX, on

the financing XXXX. close In the the $XX.X fourth quarter of valuation the noncash established of on of million, the based in reversing early on tax, impairment the essentially in a gain round XXXX loss recorded to investment, expected new of XXXX, net company

$X.X than XX, carrying was percentage the of inception. is XXXX, less value ownership investment net million $X.X As gain the unrealized company this reflecting a in of hospital-at-home Huron's December X%. on since million, investment's

Now of I'll financial quarter the full and the XXXX. year key share some for results

quarter was and in $XXX.X growth in by revenues Healthcare the million in XXXX of segments. driven the in were up The quarter $XXX.X same XXXX. the quarter for million, fourth of X.X% Revenues increase from the Education

posted In addition, capability all X strong segments. digital across our growth

billion, up in XXXX. reflecting from in $X.XXX broad-based was For segments. XXXX, all across the revenue XX.X% $X.XXX of full record revenues offerings year our XXXX, demand X We achieved billion of portfolio operating

also the in Our growth performance expanding care further accelerating on digital our XXXX our of and industries strategy: reflects elements key growth and execution in capability. our presence in growing education, strong health commercial

of or compared $XX.X the a unrealized net of our was hospital-at-home diluted $XX.X tax, XXXX million $X.X $X.XX or per income in quarter to the of company, net loss investment XXXX income and quarter discussed as reflects earnings $X Net fourth diluted million earlier. of in per diluted the share noncash to share related per of million, share per for $X.XX fourth or

$XX.X diluted earlier. share. XXXX, $X.XX the changes our in value of per million of discussed per For in or noncash hospital-at-home million diluted investment net income full company, periods net was income $X.XX or This in XXXX. $XX.X fair a Both as to related reflect impact share compares to year

and partially XXXX due more is tax was Our negative in inclusive statutory XX.X%, the state to investments effective benefit tax quarter a statutory the benefit state rate, favorable On gains awards during effective income impact compensation credits. was a offset for inclusive discrete share-based tax of full expense income certain deferred which quarter vested income to tax taxes, for a for primarily nondeductible that our rate is vested XXXX of tax awards benefit of tax year certain positive of basis, impact were more share-based which federal liability credits. by and related items. to and the our to compensation rate favorable nontaxable federal XX.X%, the income rate, items These used fund than fourth the positive and during discrete tax the compensation that the due than a of favorable primarily taxes, year certain

Adjusted QX or compared XX.X% EBITDA XX.X% revenues of in QX revenues. was $XX XXXX to $XX.X million XXXX million in of to

XXXX. basis of and reflects offsetting our points utilization, to adjusting a our deployment investment XX.X% as higher expense pricing, lower of after corporate compensation is plan increased XX year related SG&A The adjusted the global For full in a the compensation percentage these our XXXX the bonus to EBITDA revenues of in to adjusted XXXX, increase to delivery in of across capabilities deferred business XX.X% factors EBITDA continued our XXXX expanded growth year improved of percentage for consulting impact compared compared revenues in and business. as liability. Partially strong performances full increased

Adjusted net of $XX.X per diluted or $XX.X diluted income the in XXXX. fourth $X.XX was or $X.XX to share million per quarter compared million share

net income $X.XX in or $XX.X per per diluted compared was For $X.XX or the full with share diluted XXXX, $XX.X million year adjusted XXXX. share million

operating I'll segments. of Now discuss each performance the our of

segment million strong our a for revenues quarter Healthcare in our full quarter performance The advisory of our segment well generated $XX.X year digital of and financial XXXX. our largest $XXX financial revenues strong by company improvement driven capabilities or and revenue performance and was strategy increase and XX% is increased driven XXXX, fourth company-wide, In innovation, in offerings. offerings the by million grew million, XXXX. revenues Managed Healthcare XX.X% demand in which XX%. capability The Consulting for during strategy The as offerings. compared advisory fourth to of $XXX of XXXX, million as and the demand up the to innovation Healthcare, $XXX from On XX% and total digital, posted in Services quarter also improvement basis,

an year-over-year was due QX expenses. XXXX contractor partially to year a for operating both segment's income XX.X% the full margin QX Healthcare in professionals, to The in income compared increase in revenue was and Operating margin Healthcare for outpacing by XX.X% growth was On our XXXX. revenue-generating income XXXX. margin in basis, offset primarily compensation XX.X% operating increase costs

digital revenues million of company the full as and during and our our our fourth was quarter Managed by for segment from of up total XXXX. Education capability products and year analytics $XXX.X Services a for grew quarter fourth in the of The segment by or our demand software services year-over-year offerings. as Education driven The our well driven of technology and demand generated On revenues capability. million, Consulting revenues the for segment XX.X% $X.X primarily research revenues within strategy, basis, operations increased XX% within digital Education solutions quarter XXXX. demand posted increase The X.X% in

income contractor our in compensation XX.X% in revenue-generating XXXX a costs was expenses. margin in The was for to offset due operating partially by year margin contractor decreased income The increased basis, was primarily Education by XX.X% margin and increase expenses XX.X% offset QX by a partially in our operating primarily On for professionals' XXXX in operating decrease compared technology full compared XX.X% the to expenses quarter professionals. for costs to the income for compensation increases XXXX. driven same in in restructuring quarter revenue-generating

in segment $XXX.X compared segment in $XX.X the Commercial to by basis, quarter XX% increase million of demand million during a quarter was compared On and the full offerings. to of strong The Commercial increased year XXXX. generated of fourth $XX.X to and XXXX. XXXX posted revenues for year full X.X% of revenues million our revenues $XXX.X The digital revenues advisory financial total in driven fourth company million

full segment relatively contractor compared was in professionals at expenses. decreases income segment quarter in to operating Commercial year was XXXX margin XXXX XX.X% in On in was costs for the driven Commercial XX% XX.X% in even compared Operating income quarter for compensation for increase basis, in income by operating the XX.X% the same XXXX. to and margin a our QX revenue-generating primarily The margin for XXXX.

deferred the of liability excluding fund million segment respectively, $XX.X assets expenses the of investment fourth increase not on compensation in in income. were charges, million, is in used $X.X corporate to XXXX and reflected gain expense at other QX $XX.X which plan and million in XXXX million related and, allocated Corporate to offset is the level QX in restructuring of that plan, XXXX by our quarter compared Unallocated to included the the $X.X the XXXX. expense

million expenses segment the million, of including related compensation $X.X plan. to of in included Excluding increased expenses periods, for third-party of expenses. a in level professional increased expense increased to the both compensation personnel not to to full year costs compensation unallocated $XXX.X primarily unallocated of related and our deferred $X.X which the plan corporate the expenses to deferred due impact On basis, million a compensation allocated the compared corporate million expense services $XXX.X reduction plan million corporate support $X.X XXXX, at deferred

plan Excluding costs an expenses hosting professional compensation increased the for million increase unallocated in in and deferred $XX.X impact corporate primarily services software by of personnel as support in data our increases and as driven expenses third-party both periods, the well compensation expenses.

the to turning balance Now flows. sheet and cash

XX, of Total This million bank net debt year decrease debt. million. a cash net our QX of We debt million, compared $XX.X the December to was XXXX. senior with of for million consisting as of was debt entirely finished $XX.X XXXX, $XXX in a $XXX.X

The million XXX,XXX fourth quarter repurchases approximately included $XX.X or shares. share of

XX, EBITDA XX, our defined XXXX. of X.Xx Our of as compared EBITDA XXXX, leverage December agreement, bank X.Xx ratio, to adjusted December in senior adjusted as was as

cash developed software XXXX We generated flow resulting and a equipment, $XXX.X property of of of from used $XX.X of and was purchases inclusive flow operations between in million. capital for $XXX.X costs, cash expenditures, our Cash million. free investment million internally

X.X% approximately year, the tuck-in our used as $XXX.X the XXXX, $X.X we in X.X representing strategic million used repurchase outstanding we shares for of acquisitions. million and of to In beginning addition, million of shares,

under repurchases share repurchase for our available remained million $XX.X XXXX, XX, current December program. of share As

XX the quarter and for days fourth for quarter in fourth during third health the the The XXXX. of XXXX quarter compared payment schedules at for increase the fourth of quarter of quarter third XX certain in days reflects larger came impact the when for XX of to projects. days the compared DSO DSO contractual to care XXXX

Today, capital to million matured of the for that repurchases. term the share reduce we a have we our executing targeted through million facility, credit be from increases facility expanded to million. capital of existing in $XXX deployment company's used XXXX. company's loan This and amended us shareholders capacity will term proceeds loan announced revolving strategy, our include $XXX also November returning The both credit which to enable secured senior our inclusive addition capacity credit $XXX by the continue which under acquisitions, revolving borrowings balanced facility, investment to will strategic tuck-in on to

let Finally, acquisition expectations our to GG+A. and me turn which pending for of guidance contemplates XXXX, our

anticipate range For before the to of of a in the of we in $X.XX revenues adjusted reimbursable non-GAAP and XX.X% $X.XX range EPS billion EBITDA the adjusted to revenues full in year expenses to range XXXX, billion, $X.XX $X.XX. of XX.X%

of be million range flows to cash are $XXX expect our to million to Capital to shares. for $XXX million, expected analytical the tools. and the inclusive be is XX taxes We approximately net interest, be Weighted $XX share be noncash and count to free expected average $XXX to from to XX.X XXXX And million cash of cash million of million. to stock $XXX products of develop operations million, expenditures diluted the in range cost flows are market-facing expected in of range in compensation. excluding and

federal items. rate nondeductible the expense to tax tax respect an XX%, and you effective of of which an comprises should certain of to X% a to blended range rate X% state tax expense a tax assume related with to XX% incremental Finally, in XX%, rate taxes,

add growth starting our XX% revenue with Let The of guidance, midpoint revenue. over XXXX. the reflects color me range some to

achieved aligns level of XXXX, consistent the As we we and XX%-plus that accelerated previously with guidance our stated growth medium-term normalized while more Mark growth for XXXX we with of and mentioned, our business objectives. our a financial proud in believe is are

aligned goals and of managing on incentives have directors segments focused our executing with We for all the strategy our and business strategic across model. and remain our all integrated of principles fully our operating growth

operating for range growth to margins single-digit and we regard segment, full of XX%. percentage be XX% revenue to Healthcare the to mid- year high the in our XXXX, With will we expect expect

million-dollar expect Education full XX% in for XX In a range mid- growth the months contribution segment, margins GG+A, will high-teen expect of we of to percentage for a of XXXX, and be approximately low-teen revenue we operating XX%. to year inclusive

to see low growth In the double-digit Commercial segment, for revenue XXXX. percentage we expect

margins in XX% operating in approximately to be range our segment the expect and We of XX%. this

We expect unallocated in low to mid-single-digit the corporate percentage SG&A increase to range year-over-year.

consistent our X items increase quarter, wage match, annual the note on generated reset full Also the years, effect our stock March adjusted these compensation anticipate merit relates stock the the in will increases awards and full for the adjusted and first EPS FICA of expense it basis in promotion our we as first expenses: pattern wage and have employees. and with of to to in seen for factors, restricted that January during be XXX(k) granted EBITDA to an we the retirement-eligible prior to go last approximately into year on following XX% Based be year with we several XX% years. consistent quarter, for

closing need measures. a reconciling through we to to items reconciliation release comparable our adjusted adjusted you adjusted net these with you in GAAP will to income that measures press The schedules these when reminder, As there non-GAAP are reconciliations. and XXXX consider walk EPS, included EBITDA, will help several that respect

like Thanks, to call to everyone. the questions. Operator? now I'd open

[Operator Sommer Securities. Instructions] Tobey line comes Truist question Our the of from of first

Day. about I do when and I been, was But how midpoint at know, laid you curious they'll Investor if ultimately exactly between margin rendered. you you at them figure? feel targets could those, particular, It's financial when your for the out speak be in EBITDA medium-term don't to the gave

Tobey, it's John.

we're we the objectives EPS, medium-term about it at those of you're Investor feel back from I if adjusted perspective feel that talked and think in in we Day. established dollars that projections like our our financial that good Day the against Certainly, about XXXX. EBITDA Investor during we we So progress ahead pacing looking of

different than projected The have what a time. stronger. the been has that bit little point think at we maybe mix I growth much has in might been

double-digit in excess related in of needed growth, couple our about we So to we XX% think and that on pressure low deliver and that's a to growth, past on And to resources put growth team has margin our build the the invest to actually little growth. been of percent. that continue of be the our talent to out talked able in to years. I And bit

So the has us in dollars terms the terms but net-net of adjusted the bit probably in mix of been different. little EPS, ahead a EBITDA has the

where for at, end, range. meeting beat a guidance think if forward, similar ability kind to at be I on that's the into we XXXX range we I the margin that or focus next that XXXX at us point to to year, going or from we're sort able we're our I in objectives But low-XX% And of margin still top think and continue comfortably in from feel beating good XX%-plus meet really for those mid-teen have outlook And objectives. which, our of about range about through. the revenue for will that feel the of And good would our step kind those percent will perspective. be execute time. think get halfway a

those say, us that Maybe, that utilization. what on really to is that drivers, the comment enables We've good at okay, we're achieve to just one look when you made doing I'll progress Yes. say, add to things. Tobey, it

not is probably yet the we're enterprise. to across doing We pricing there. that have been baked room in fully to doing we've run everything The work

then continuing expand scaling model our corporate continues and just to delivery SG&A. global Our

that So we've of in. got confident still a we're lot pretty levers

growth we're As range John just created be going there. in that has said, some it's XX%-plus we into headwinds, It to XXXX. think but the will get probably

how hearing activity profitability And could in assessment are at the speak your of to you offering. you maybe in long PI customers, them from that levels level that context what Your an to hospital remain you're expect terms fine perspective normalizes? of some from from seeing of are elevated perspective them before therefore, activity what they and in doing answer, a

keep long This talking Tobey. Mark. as holds as I'll voice Sure, my is up.

coming As the we of I really script, would half the mixed some is, toward XXXX. to in the story improvement There XXXX. started see a I noted across industry say, latter into

I the to those have done think, trying they're they're a good actually to So aspect that but on growth you spend, have to the in continuing and we've we're to and well them trying They're are be that more of do. nature, recovering. things job systems, play traditional portfolio seeing up spending repositioned is able And on what very that. pretty aspects to down platforms perhaps and enhance our both their procyclical of

there's XXXX of assessments that, busy those And who quite said number we coming a number of a clients. having But on are still for into challenges. still clients ongoing are facing

So by will going is that to XXXX We here. means the the continuing demand of we that no think cycle be to pipeline. do kind just feel out run evolve. That's in of reflected

procyclical in are is and are through some an confidence If growth for the pipeline what of seeking us year related are the our really some of But as projects other that and which, in improvement that guidance mix seeing we've where pipeline, pipeline got to at Mark. evolving of help. the gives right, plenty we offerings, said, Mark now that's Yes, environment. we're level help the look Right. still more clients seeking better going get labor insight their to efficiently, offerings, relate financial data, modernize activity strain our increased performance continued at processes help more which clients their the a offerings, funds our as really this like non-distressed offerings advisory them cost and platforms their data to from protect critically, actionable automate to to of operate high really, those to our to as try many them possible in strategy then lot are point think invest a to and in I technology financial digital now

a seeing of in the going dynamics now we're reflect So right on mix really market. that both nice projects

back Okay. liquidity the the now? to And expand the Two EBITDA initial if could, and you Could guidance? John, then things queue. to EPS why to speak get in contribution is me, and I'll for you what inorganic

Tobey. Sure,

was significant past the that our X.Xx it about so the EBITDA facility, definition we've borrowing we million the So support into company our capacity revolver. $XXX question cut revolving has credit the trailing capacity EBITDA growth have over having really expanding just EBITDA. entered When our the why our And now, in seen XX-month first years. bank significantly designed of with leverage, to on $XXX do since first million really into couple the double XXXX, seen that in practically to

leverage So now. million size really that the basis the of just originally to had term a the bigger capacity company us kind back adding of the on we that $XXX loan, gets given much

our perspective, terms strategy messaging. in capacity, think So that deployment it's of extra with same from capital the I

you're mix acquisitions some process targeted tuck-in we a But to well needed capacity. as buybacks. more going increased think result programmatic felt as given as continued that M&A our some of our like, of just we I strategic size, see share

commented the a kind an will this perspective, from minimal year. transition-type EBITDA then partial And during year, revenue. partial a far high-teen year, at percent And an from EPS perspective. as through in given on to that that flow corporate just it's there accretive. first first GG+A I be the it's our of million-dollar pretty then some the EPS percentage expenses overall But it's I'd as perspective, guide, expect from revenue same given as

comes from question next of Andrew line William Nicholas Company. & Blair of the Our

here conversation, margin the on expansion good double-back to wanted expect you pretty 'XX. I a that in

utilization if run across we primary of maybe this the XX a of I'm and progress 'XX? some and drivers. delivery the points basis count those pullback expecting to And a there's between head or XX think, you some highlighted way what wondering and is growth improved more much things related of just expansion few I that, any of utilization room Like, year? the how split pricing there's maybe through drivers the where as maybe Mark, up in model. to to set is in

Andrew, don't I describe I a in count would head if growth. know as pullback it

revenue think with a year, from head in I you'll count growth count this head line case will the what in growth. probably generally the be growth see perspective, base

keep than in on then utilization, our of that, continuing XX think And flip and mentioned, expecting. points to talent expect SG&A key I between the new that going. improvement, invest XX to add do in the points basis improvement leverage, areas of breakout the business, that things terms growth Mark basis continue that's actually side to in we that of pricing of the then of we're more to

more back So I do improvement, contribute XX basis to some points we initiatives margin underway then invest actually have of business. that we the that think expect and the than in

of think as basis So those investments points investment. of XXX

okay, So deployment pricing about natural well our between utilization improvement, between basis split that's basis points just XXX to of that continued some XXX year. team as our we global them, points of I'd XX-XX some and of scaling if efficiency thinking this expect you're as and the India operational say of experience SG&A of then that objectives to of

in I 'XX? Can you strategy baking that a some of some think, strongest? end more? then in pickup there briefly Great. unpack you you pieces. And helpful. little that That's is bit much how mentioned, recovery Innosight for are particular the of are and And markets And that where

in XXXX, was just much of into Innosight, strength of so integrated they the conjunction pipeline the see 'XX, great very little good that that in Mark. year. we've we were the very to industrial quieter in At into had coming very it's health like care recovery bit working really But both year, would sides our excited the overall I very about little same across bit and what time, strength really a kind a across of very, into XXXX. business, to we're some say our had start strong what saw areas Andrew, feel we teams, good that but have market Yes. delivery. excited we slower and the for with a

Sutherland Our next Benchmark. Bill question the of line of from comes

books. to year was on you the Did curious another change? John. about the I refi, expense with how mention of kind Guys, think in terrific interest the

The is pretty Bill. change really minimal,

If immediately term you a we on the it, then proceeds about from that down to $XXX we think term but loan, flow used funds pay the million revolver. added the loan

to credit related about will be minimal of scheme be some capacity. expense fees that minimal facility, as now unused it's the the incremental on fees that things. more just as establishing of but revolving well really adding So in There'll pretty the some

in mentioned sure don't Okay. change -- I there I think there's if rates. if any wasn't was you

the in pretty credit in right term we rate any market additional basis additional to savings be an spot on there's will offsets of silver now largely point versus short-term do things, expense of Bill, probably, is spread minimal. the right able we're also, a But that when to facility. first more in that revolving think quarter, reflective the did swap that we lock XXXX. early the So We the That that interest just again, XX rate the versus more scheme were in in lock of now. some able

were Okay. the other Digital. there on important. I'm of contributing thinking the in you that it too was quarter? centerpiece the just Was 'XX outlook. talking 'XX's curious seem for the segment the you drivers results, the was And am kind how the of be then offerings Or business parts you're interesting, much it? I John, year, for when about of about the And to Education, mentioned fourth to reading Education Digital into

right quarter. revenue both a base is think Bill. fourth it quarter, the pivot smaller in then though had quarter, be our fourth which is now, offerings, broad-based demand, why in offering fourth during the highlighted story you growth say business. service as again, was they the also offerings broad-based a clubhouse was Education XXXX, And as digital consulting healthy to the going of if I our But managed the I towards The it's would it. during that which well we the leader

it headlines, missions. infrastructure lot quite help digital to to modernized their a see investing get see pressure we clients those perspective, But what universities many consulting on are, right under. side, needs the you'd that really legacy dated, meet a the Clearly, from in, that down then technology a of beyond institutions probably are bit even the universities side, in the digital now

help help right Those and some clients with enroll their partners to manage very their research a are so then that and important our now. philanthropic offerings help fundraising them education function. efficiently them risk from our of our that perspective, students, university minimize that And are all things

expect to the I those growth balanced So is see across pretty areas. think we

as to important because part area just well. the Yes. pay lot to clients been that to of has a very enterprise. portfolio, the their so research a continues our And I'll risk of around revenues it's management add, the attention research be important only to not but Research

think I it's So been a very balanced story.

a consistent ahead You them. across But all say, backdrop, very just quarters bit been from where it's may have of is a little of would demand I a another. demand one

as of finally, your it certainly count kind offshore? Is going weighting you at And it just be are kind No, look this plans year, was to has. mix? curious, head this heavily the towards I Right. same you of it

to going I to think total mix be similar count, head our it's Bill. a

Okay.

bps. part not that's of the So XXX to XXX

of weighted of there utilization little So of will count more XX% at in could at as is be a in global shift be But When for increased and expect we team out think India continued North if percentage. we look The year, It look India. big you towards but any our bit that I delivery our in modeling don't XX% head it head the is modest. team. India, in about story. it's part the the America XX/XX/XXXX, count about margin

be pretty think going I balanced. to it's

line [Operator comes Barrington of Associates. from Instructions] question Next Kevin Research of Steinke the

versus about spoiled ask although solid there out projects change third is quarter and the that quarter. have note we've of fourth in quarter? strong or by that to sequential quarter. fourth wanted segment, third anything there anything I kind We guess just led increases, quarter. of see it's to versus revenue of Education in of timing dip might quarter second terms sequential I kind fourth year a So gotten did certainly continually versus these another quarter to third flattened But sequential

during less days quarter. sometimes schedules, you're pronounced, and our that the in are fourth on that's see in bit days even business effective and other to fourth related entire more it just There's always that quarter We based largely than business Education, a the holidays quarters. Within there business. the it's little across can all just seeing. Kevin, client be

in As low-teens trajectory feel growth for remarks, in year, so Education we next the the expecting I we're about good segment. growth said my

Great. Okay.

you color to up on following the just segment, maybe lastly, and attracted also predominantly business sense little so in. and just you mix fits health guess just GG+A what get also on mentioned the assuming trying it I but there. acquisition, in to business serves education that how for more So it nonprofit, care institutions, Education I'm just the a a And

that in very joining be acquisition, Glier as very Yes, Kevin, this is the Mark. is active market. We're the continue to excited well us John GG+A about and

global non-profit noted broadly. they also You basis, well. in a serve their much that position clients in actually correctly And do have on more as they education, Europe

the enablement us. to for we force whole of combination their be a expertise at of opportunity bring believe to as advancement higher huge will pitch accretive here, sales think area been and we It's be it us And view. that, a what some so the solutions gives momentum really around education example, same obviously, time, point of is highly revenue. to a digital an from And of great philanthropy to function. drive an lever within just for advancement the the function us will their But our

it's think we well So positioned.

the We model, really have full scale lines. opportunities, same time, we'll advantage we scope operating enables bring or feel nearly us have care, very solutions acquisition. to health that because that And outside that as generally, of it's ability and then even care health across full of to in at our of not-for-profit whether of the more take

what digital think consulting? I little Were you mentioned expected. John, have would referring than the margin bit Great. Or versus at? targeted was that to comment the different progression talking when mix XXXX, a towards been about Okay. you you target has mix a you're mid-teens of by maybe

that Thanks EPS and more I to adjusted the clarify, the EBITDA dollars to for we've asking, mix adjusted was get And Kevin. to referring increase in to seen.

team what we more projected as in growth. of higher had towards bit deliver than initially been a on just bit percent margin growth of investing ahead Investor that's, targets. this amount and EBITDA to those amount, our Day been And a pacing the our path pressure dollar with increased little the that significantly the Now to at to little EPS has mix increased we've point, getting

EBITDA So and versus in speaking EPS. from dollars an getting revenue the the we've about had percent two of margin I was growth nice levers results increased to adjusted

the mentioned you to then utilization on et out you and in margin staff drivers Okay. or build India there Can there, the us going of plans one just Understood. ramp continued forward. as lastly, your team cetera? And of greater utilization update

think, tag one. on I'll this I team John,

offshore built a me let happy expansion in basis global We each this is we So out. And really I by an business an really just been with how think line. we're integrated from service has tell the the capability. standpoint, way on team not that you, do truly run

in is consider and of India U.S., the team, we and unit their part in in line their goal the optimize team performance our to team market one our So together.

an doing we expand as So you to me financial practice engagement, at line. had just our John has advisory support, the impact. success great business had team, terms of let more ask numbers the small around in consulting to and time, a to But and other We've example, some sales, just broadly, an advisory continued that of utilization give areas service in update.

year Yes. for progressed. as great us the has Kevin, story really a that's been

investments of with fourth overall overall have which of some to one India was in in the targeted our I capacity really of much to line out growth. is was our the XX% there XXXX, would got build fourth range we quarter, quarter, really a utilization, to you in in team the made it's as XX% And recall, in at at may as company, for investment anticipation as very gives So of into part the strongest which end our operate margins next the time seen increase the to and we last heading into of us I utilization course the first year we experienced this heading half over utilization expect by of year. XXXX. into some year. the that remember year encouragement of can the the roughly continue And the back lower quarter metrics utilization We've really we and in that definitely that posted steadily that about level to we note,

to in queue, seeing the Hussey. to the more turn questions Mr. no back I'd like And call

you Have Thank afternoon. very joining to much first again results. this announce quarter evening. in for with forward speaking our a good We us April you look when we

for conference your That Thank concludes everyone, participation. today's call. you,