Huron Consulting Group Inc
For the period ended Jun 30, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 30, 2024
HURN$166.82-5.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-30.
0001289848-24-000119
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0001289848-24-000172
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 170 previous paragraphs and 210 current paragraphs.
104 unchanged; 48 reworded; 51 added; 18 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 9 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (51)
Current report
2024 litigation settlement gain: In the second quarter of 2024, we settled a litigation matter for which Huron was the plaintiff for $15.0 million, on a pre-tax basis. This $15.0 million settlement gain was recorded as a component of other gains, net on our consolidated statement of operations. We have excluded from our non-GAAP measures $11.7 million, which is the value of the settlement gain that exceeds the third-party legal costs incurred during 2024 specific to this litigation matter, as this net gain is not indicative of the ongoing performance of our business. Of the $3.3 million third-party legal costs incurred for this matter in the first half of 2024, $2.7 million was incurred in the first quarter and $0.6 million was incurred in the second quarter. Our third-party legal expenses are recorded as a component of selling, general and administrative expenses on our statement of operations. Third-party legal costs incurred for this litigation matter during the three and six months ended June 30, 2023 were $0.4 million and $1.0 million, respectively.
Current report
•Total revenues increased 7.2% to $371.7 million for the second quarter of 2024 from $346.8 million for the second quarter of 2023.
Current report
•Diluted EPS increased 59.8% to $2.03 for the second quarter of 2024, compared to $1.27 for the second quarter of 2023. Diluted EPS for the second quarter of 2024 includes a litigation settlement gain related to a completed legal matter for which Huron was the plaintiff, which had a favorable $0.60 impact on diluted EPS.
Current report
•Net cash provided by operating activities was $107.2 million for the second quarter of 2024, compared to $78.2 million for the second quarter of 2023.
Current report
Net income increased $12.8 million, or 51.7%, to $37.5 million for the three months ended June 30, 2024 from $24.7 million for the same period last year. Net income for the second quarter of 2024 includes an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter for which Huron was the plaintiff. As a result of the increase in net income and a reduction in diluted shares outstanding resulting from share repurchases, diluted earnings per share for the second quarter of 2024 increased 59.8% to $2.03, compared to $1.27 for the second quarter of 2023. The litigation settlement gain recognized in the second quarter of 2024 had a favorable $0.60 impact on diluted earnings per share. Adjusted diluted earnings per share increased 21.7% to $1.68 for the second quarter of 2024, compared to $1.38 for the second quarter of 2023.
Current report
Net cash provided by operating activities for the second quarter of 2024 was $107.2 million, compared to $78.2 million for the second quarter of 2023. The increase in net cash provided by operating activities was primarily related to an increase in cash collections during the second quarter of 2024 compared to the second quarter of 2023; partially offset by increases in payments for salaries and related expenses for our revenue-generating professionals and selling, general and administrative expenses during the second quarter of 2024 compared to the second quarter of 2023.
Current report
•Healthcare revenues increased $16.3 million, or 9.4%, driven by continued strength in demand for our performance improvement, culture and organizational excellence, and strategy and innovation solutions within our Consulting and Managed Services capability, as well as an increase in demand for our technology and analytics services within our Digital capability. These increases in demand were partially offset by a decrease in demand for our financial advisory solutions within our Consulting and Managed Services capability. Revenues in the second quarter of 2024 included $0.3 million of incremental revenues from our acquisition of Roundtable Analytics completed in September 2023.
Current report
The number of revenue-generating professionals within our Healthcare segment grew 26.3% to 2,339 as of June 30, 2024, compared to 1,852 as of June 30, 2023.
Current report
•Education revenues increased $12.1 million, or 10.9%, and includes $6.8 million of incremental revenues from our acquisition of GG+A completed in March 2024. The increase in Education revenues was also driven by increases in demand for our strategy and operations solution within our Consulting and Managed Services capability and our software products within our Digital capability.
Current report
The number of revenue-generating professionals within our Education segment grew 10.6% to 1,243 as of June 30, 2024, compared to 1,124 as of June 30, 2023. Our acquisition of GG+A in March 2024 added approximately 70 revenue-generating professionals.
Current report
•Commercial revenues decreased $3.5 million, or 5.6%, primarily due to a decrease in demand for our technology and analytics services within our Digital capability, partially offset by an increase in demand for our financial advisory solutions within our Consulting and Managed Services capability.
Current report
The number of revenue-generating professionals within our Commercial segment grew 3.1% to 2,266 as of June 30, 2024, compared to 2,198 as of June 30, 2023.
Current report
Selling, general and administrative expenses increased by $6.8 million, or 10.5%, to $71.4 million in the second quarter of 2024 from $64.6 million in the second quarter of 2023. The $6.8 million increase primarily related to a $5.1 million increase in non-payroll costs, driven by a $2.3 million increase in bad debt expense, a $1.5 million increase in software and data hosting expense, and a $1.7 million increase in compensation costs for our support personnel. The increase in compensation costs for our support personnel was primarily driven by a $3.1 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2024, partially offset by a $0.8 million decrease in performance bonus expense. As a percentage of revenues, selling, general and administrative expenses increased to 19.2% during the second quarter of 2024, compared to 18.6% during the second quarter of 2023, primarily attributable to an increase in bad debt expense, as a percentage of revenues.
Current report
Other Gains, Net
Current report
Other gains, net totaled $15.9 million in the second quarter of 2024 compared to $0.6 million in the second quarter of 2023. The $15.9 million of other gains, net in the second quarter of 2024 consisted of a pre-tax $15.0 million litigation settlement gain for a completed legal matter for which Huron was the plaintiff, as well as $0.9 million of remeasurement gains to decrease the fair value of our contingent consideration liabilities related to business combinations. The $0.6 million of other gains, net in the second quarter of 2023 primarily consisted of remeasurement gains to decrease the fair value of our contingent consideration liabilities related to business combinations.
Current report
See Note 10 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on the fair value of contingent consideration liabilities.
Current report
•Education operating income increased $3.4 million, or 12.4%, primarily due to the increase in revenues; partially offset by increases in compensation costs for our revenue-generating professionals and support personnel. The increases in compensation costs for our revenue-generating professionals and support personnel were primarily driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2024, partially offset by a decrease in performance bonus expenses for our revenue-generating professionals. Education operating margin increased to 25.1% from 24.8% primarily driven by revenue growth that outpaced the increase in compensation costs for our revenue-generating professionals and a decrease in contractor expenses; partially offset by an increase in compensation costs for our support personnel, as a percentage of revenue.
Current report
•Commercial operating income decreased $1.5 million, or 14%, primarily due to the decrease in revenues, partially offset by decreases in restructuring charges and contractor expenses. Commercial operating margin decreased to 15.3% from 16.8% primarily due to an increase in compensation costs for our revenue-generating professionals, as a percentage of revenues; partially offset by decreases in restructuring charges and contractor expenses, as percentages of revenues.
Current report
For the three months ended June 30, 2023, our effective tax rate was 29.4% as we recognized income tax expense of $10.3 million on income of $35.0 million. The effective tax rate of 29.4% was less favorable than the statutory rate, inclusive of state income taxes, of 26.6%, primarily due to certain nondeductible expense items, partially offset by a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability.
Current report
Net income increased $12.8 million, or 51.7%, to $37.5 million for the three months ended June 30, 2024 from $24.7 million for the same period last year, driven by the $11.1 million litigation settlement gain, net of tax, recognized in the second quarter of 2024 related to a completed legal matter for which Huron was the plaintiff. Diluted earnings per share for the second quarter of 2024 increased to $2.03 from $1.27 for the second quarter of 2023, driven by the increase in net income and a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan.
Current report
EBITDA increased $19.2 million to $66.3 million for the second quarter of 2024 from $47.1 million for the second quarter of 2023. The increase in EBITDA was primarily attributable to the pre-tax $15.0 million litigation settlement gain recognized for a completed legal matter for which Huron was the plaintiff, as well as the increase in segment operating income.
Current report
Adjusted EBITDA increased $7.2 million to $55.7 million in the second quarter of 2024 from $48.5 million in the second quarter of 2023. The increase in adjusted EBITDA was primarily attributable to the increase in segment operating income, excluding the impact of segment restructuring charges.
Current report
Adjusted net income increased $4.0 million, or 14.8%, to $30.9 million in the second quarter of 2024, compared to $27.0 million in the second quarter of 2023. As a result of the increase in adjusted net income as well as a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, adjusted diluted earnings per share increased to $1.68 for the second quarter of 2024 compared to $1.38 for the second quarter of 2023.
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Current report
Revenues increased $63.0 million, or 9.5%, to $727.6 million for the first six months of 2024 from $664.7 million for the first six months of 2023. The overall increase in revenues reflects continued strength in demand for both our Consulting and Managed Services capability and Digital capability within Healthcare and Education, and reflects our focus on accelerating growth in our healthcare and education industries. These increases in demand were partially offset by a decrease in demand for Commercial's Digital capability. Additional information on our revenues by segment follows.
Current report
The number of revenue-generating professionals within our Healthcare segment grew 26.3% to 2,339 as of June 30, 2024, compared to 1,852 as of June 30, 2023.
Current report
The number of revenue-generating professionals within our Education segment grew 10.6% to 1,243 as of June 30, 2024, compared to 1,124 as of June 30, 2023. Our acquisition of GG+A in March 2024 added approximately 70 revenue-generating professionals.
Current report
The number of revenue-generating professionals within our Commercial segment grew 3.1% to 2,266 as of June 30, 2024, compared to 2,198 as of June 30, 2023.
Current report
Operating expenses for the first six months of 2024 increased $41.9 million, or 6.7%, over the first six months of 2023.
Current report
Direct Costs
Current report
Direct costs increased $38.3 million, or 8.3%, to $501.9 million for the first six months of 2024 from $463.6 million for the first six months of 2023. The $38.3 million increase primarily related to a $43.5 million increase in compensation costs for our revenue-generating professionals and a $2.2 million increase in technology costs, partially offset by a $5.9 million decrease in contractor expenses. The $43.5 million increase in compensation costs reflects our investment to grow our talented team to meet increased market demand and is primarily attributable to a $41.2 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2024, a $1.8 million increase in performance bonus expense, and a $1.7 million increase in share-based compensation expense; partially offset by a $1.2 million decrease in signing, retention and other bonus expense. As a percentage of revenues, direct costs decreased to 69.0% during the first six months of 2024, compared to 69.7% during the first six months of 2023, primarily attributable to the decrease in contractor expenses.
Current report
Selling, General and Administrative Expenses
Current report
Other Gains, Net
Current report
Other gains, net totaled $14.3 million in the first six months of 2024 and $0.2 million in the first six months of 2023. The $14.3 million of other gains, net in the first six months of 2024 primarily consisted of a pre-tax $15.0 million litigation settlement gain for a completed legal matter for which Huron was the plaintiff. The $0.2 million of other gains, net in the first six months of 2023 primarily consisted of remeasurement gains to decrease the fair value of our contingent consideration liabilities related to business combinations.
Current report
See Note 10 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on the fair value of contingent consideration liabilities.
Current report
Restructuring Charges
Current report
Restructuring charges for the first six months of 2024 were $4.4 million, compared to $4.0 million for the first six months of 2023. In the second quarter of 2024, we exited the office space previously occupied by GG+A, which resulted in a $1.4 million non-cash impairment charge on the related right-of-use operating lease asset and fixed assets of that office space. Additionally, in the first six months of 2024, we recognized $1.1 million of rent and related expenses, net of sublease income, for previously vacated office spaces; $1.0 million of severance-related expenses; and $0.8 million related to non-cash lease impairment charges driven by updated sublease assumptions for our previously vacated office spaces.
Current report
The $4.0 million of restructuring charges incurred in the first six months of 2023 included a $1.9 million non-cash impairment charge on the fixed assets and right-of-use operating lease asset related to our office space in Hillsboro, Oregon, which we exited in the first quarter of 2023; $0.9 million of employee-related expenses; $0.6 million for rent and related expenses, net of sublease income, for previously vacated office spaces; $0.3 million related to the abandonment of a capitalized software development project; and $0.2 million related to non-cash lease impairment charges driven by updated sublease assumptions for previously vacated office spaces.
Current report
Depreciation and Amortization
Current report
Operating Income and Operating Margin
Showing the first 40 of 51 passages. Open the source sections for the rest.
Removed paragraphs (18)
Previous report
Revenues
Previous report
Reimbursable Expenses
Previous report
Operating Expenses
Previous report
•Total revenues increased 12.0% to $356.0 million for the first quarter of 2024 from $317.9 million for the first quarter of 2023.
Previous report
•For the first three months of 2024, Healthcare segment revenues increased 21.3% compared to the first three months of 2023.
Previous report
•Diluted EPS increased 39.7% to $0.95 for the first quarter of 2024, compared to $0.68 for the first quarter of 2023.
Previous report
•On March 1, 2024, we completed the acquisition of GG+A, a philanthropic management consulting firm that helps education institutions and other nonprofit organizations build and accelerate the philanthropic programs that support their mission.
Previous report
Net income increased $4.6 million, or 34.2%, to $18.0 million for the three months ended March 31, 2024 from $13.4 million for the same period last year. As a result of the increase in net income, diluted earnings per share for the first quarter of 2024 increased 39.7% to $0.95, compared to $0.68 for the first quarter of 2023. Adjusted diluted earnings per share increased 41.4% to $1.23 for the first quarter of 2024, compared to $0.87 for the first quarter of 2023.
Previous report
On March 1, 2024, we completed the acquisition of GG+A, a philanthropic management consulting firm that helps education institutions and other nonprofit organizations build and accelerate the philanthropic programs that support their mission.
Previous report
Revenues
Previous report
The number of revenue-generating professionals within our Healthcare segment grew 28.0% to 2,279 as of March 31, 2024, compared to 1,780 as of March 31, 2023.
Previous report
The number of revenue-generating professionals within our Education segment grew 15.2% to 1,231 as of March 31, 2024, compared to 1,069 as of March 31, 2023, which includes approximately 70 hires from our acquisition of GG+A.
Previous report
The number of revenue-generating professionals within our Commercial segment grew 6.0% to 2,293 as of March 31, 2024, compared to 2,164 as of March 31, 2023.
Previous report
Operating Expenses
Previous report
Reimbursable Expenses
Previous report
•Education operating income decreased $1.2 million, or 5.2%, primarily due to increases in compensation costs for our revenue-generating professionals and support personnel; partially offset by the increase in revenues and a decrease in contractor expenses. The increase in compensation costs for our revenue-generating professionals and support personnel was primarily driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2024. Education operating margin decreased to 19.7% from 22.2% primarily driven by an increase in compensation costs for our revenue-generating professionals, as a percentage of revenue; partially offset by the decrease in contractor expenses.
Previous report
Net income increased $4.6 million, or 34.2%, to $18.0 million for the three months ended March 31, 2024 from $13.4 million for the same period last year. As a result of the increase in net income, diluted earnings per share for the first quarter of 2024 was $0.95 compared to $0.68 for the first quarter of 2023.
Previous report
Adjusted net income increased $6.2 million, or 36.3%, to $23.3 million in the first quarter of 2024, compared to $17.1 million in the first quarter of 2023. As a result of the increase in adjusted net income, adjusted diluted earnings per share was $1.23 for the first quarter of 2024, compared to $0.87 for the first quarter of 2023 .
Reworded paragraphs (48)
Previous wording
Our Consulting and Managed Services capabilities represent our management consulting services, managed services (excluding technology-related managed services) and outsourcing services delivered across industries. Our Consulting and Managed Services experts help our clients address a variety of strategic, operational, financial, people and organizational-related challenges. These services are often combined with technology, analytic and data-driven solutions powered by our Digital capability to support long-term relationships with our clients and drive lasting impact. Examples include the areas of revenue cycle management and research administration managed services and outsourcing at our healthcare and education and research-focused clients, where our projects are often coupled with our digital services and product offerings and management consulting services to sustain improved performance.
Current wording
Our Consulting and Managed Services capabilities represent our management consulting services, managed services (excluding technology-related managed services) and outsourcing services delivered across industries. Our Consulting and Managed Services experts help our clients address a variety of strategic, operational, financial, people and organizational-related challenges. These services are often combined with technology, analytic and data-driven solutions powered by our Digital capability to support long-term relationships with our clients and drive lasting impact. Examples include the areas of revenue cycle management and research administration managed services and outsourcing at our healthcare, education and research-focused clients, where our projects are often coupled with our digital services and product offerings and management consulting services to sustain improved performance.
Previous wording
We have also grown our proprietary software product portfolio to address our clients' challenges with solutions that expand our base of recurring revenue and further differentiate our consulting, digital and managed services offerings. Our product portfolio bundles our deep industry expertise and unique intellectual property together to serve our clients outside of our traditional consulting offerings. Our product portfolio includes, among others: Huron Research Suite, the leading software suite designed to facilitate and improve research administration service delivery and compliance; Huron Intelligence™ Rounding, the #1 ranked Digital Rounding solution in the 2023 Best in KLAS® report; and Huron Intelligence™ Analytic Suite in Healthcare, a predictive analytics suite to improve care delivery while lowering costs.
Current wording
We have also grown our proprietary software product portfolio to address our clients' challenges with solutions that expand our base of recurring revenue and further differentiate our consulting, digital and managed services offerings. Our product portfolio bundles our deep industry expertise and unique intellectual property together to serve our clients outside of our traditional consulting offerings. Our product portfolio includes, among others: Huron Research Suite, the leading software suite designed to facilitate and improve research administration service delivery and compliance; Huron Intelligence™ Rounding, the #1 ranked Digital Rounding solution in the 2024 Best in KLAS® Software & Services report; and Huron Intelligence™ Analytic Suite in Healthcare, a predictive analytics suite to improve care delivery while lowering costs.
Previous wording
Other operating expenses include restructuring charges, depreciation expense, amortization expense related to internally developed software costs and amortization of intangible assets acquired in business combinations.
Current wording
Other operating expenses include restructuring charges, other gains and losses, depreciation expense, and amortization expense related to internally developed software costs and intangible assets acquired in business combinations.
Previous wording
Other losses (gains), net: We exclude the effects of other losses and gains, which primarily relate to changes in the estimated fair value of our liabilities for contingent consideration related to business acquisitions and litigation settlement losses and gains, to permit comparability with periods that are not impacted by these items.
Current wording
Other losses (gains), net: We exclude the effects of other losses and gains, which primarily relate to changes in the estimated fair value of our liabilities for contingent consideration related to business acquisitions and litigation settlement losses and gains, excluding the 2024 litigation settlement gain presented separately, to permit comparability with periods that are not impacted by these items. These items are recorded as a component of other gains, net on our consolidated statement of operations.
Previous wording
Highlights from the first quarter of 2024 include:
Current wording
Highlights from the second quarter of 2024 include:
Previous wording
•Adjusted diluted EPS increased 41.4% to $1.23 for the first quarter of 2024, compared to $0.87 for the first quarter of 2023.
Current wording
•Adjusted diluted EPS increased 21.7% to $1.68 for the second quarter of 2024, compared to $1.38 for the second quarter of 2023.
Previous wording
•Returned $62.3 million to shareholders in the first three months of 2024 by repurchasing 624,698 shares of our common stock.
Current wording
•Returned $96.7 million to shareholders in the first six months of 2024 by repurchasing 1,001,191 shares of our common stock.
Previous wording
Total revenues increased $38.1 million, or 12.0%, to $356.0 million for the first quarter of 2024 from $317.9 million for the first quarter of 2023. The increase in revenues was driven by continued strength in demand for Healthcare's Consulting and Managed Services and Digital capabilities, as well as an increase in demand for Education's Digital capability. These increases in revenues reflect our focus on accelerating growth in our healthcare and education industries.
Current wording
Total revenues increased $24.9 million, or 7.2%, to $371.7 million for the second quarter of 2024 from $346.8 million for the second quarter of 2023. The increase in revenues was driven by continued strength in demand for Healthcare's Consulting and Managed Services and Digital capabilities, as well as an increase in demand for Education's Consulting and Managed Services capability, reflecting our focus on accelerating growth in our healthcare and education industries. These increases were partially offset by a decrease in demand for Commercial's Digital capability.
Previous wording
In our Consulting and Managed Services capability, revenues for the first quarter of 2024 increased 13.8%, compared to the first quarter of 2023, and reflected strengthened demand in our Healthcare and Education segments. The utilization rate within our Consulting capability decreased to 70.2% in the first quarter of 2024, compared to 76.3% in the first quarter of 2023.
Current wording
In our Consulting and Managed Services capability, revenues for the second quarter of 2024 increased 10.7%, compared to the second quarter of 2023, and reflected strengthened demand in our Education and Healthcare segments. The utilization rate within our Consulting capability decreased to 73.7% in the second quarter of 2024, compared to 76.0% in the second quarter of 2023.
Previous wording
Revenues within our Digital capability increased 9.7% in the first quarter of 2024, compared to the first quarter of 2023, and reflected strengthened demand in our Healthcare and Education and segments. The utilization rate within our Digital capability increased to 74.3% in the first quarter of 2024, compared to 71.0% in the first quarter of 2023.
Current wording
Revenues within our Digital capability increased 2.5% in the second quarter of 2024, compared to the second quarter of 2023, and reflected strengthened demand in our Healthcare segment, partially offset by a decrease in demand in our Commercial segment. The utilization rate within our Digital capability increased to 75.0% in the second quarter of 2024, compared to 74.7% in the second quarter of 2023.
Previous wording
The total number of revenue-generating professionals increased 15.8% to 5,803 as of March 31, 2024, compared to 5,013 as of March 31, 2023, as a result of hiring to support the overall increase in demand for our services, and includes approximately 70 hires as a result of our acquisition of GG+A. We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services as employee compensation costs are the most significant portion of our operating expenses.
Current wording
The total number of revenue-generating professionals increased 13.0% to 5,848 as of June 30, 2024, compared to 5,174 as of June 30, 2023, as a result of hiring to support the overall increase in demand for our services, and includes approximately 70 hires as a result of our acquisition of GG+A in the first quarter of 2024. We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services as employee compensation costs are the most significant portion of our operating expenses.
Previous wording
In the first three months of 2024, we deployed $62.3 million of capital to repurchase 624,698 shares of our common stock, representing 3.4% of our common stock outstanding as of December 31, 2023.
Current wording
In the first six months of 2024, we deployed $96.7 million of capital to repurchase 1,001,191 shares of our common stock, representing 5.4% of our common stock outstanding as of December 31, 2023.
Previous wording
(4)Managed Services capability revenues within our Healthcare segment was $17.5 million and $19.8 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
(4)Managed Services capability revenues within our Healthcare segment was $16.7 million and $17.3 million for the three months ended June 30, 2024 and 2023, respectively; and $34.2 million and $37.1 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
Managed Services capability revenues within our Education segment was $7.4 million for both the three months ended March 31, 2024 and 2023.
Current wording
Managed Services capability revenues within our Education segment was $6.8 million and $7.1 million for the three months ended June 30, 2024 and 2023, respectively; and $14.2 million and $14.5 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
(5)The number of Managed Services revenue-generating professionals within our Healthcare segment was 1,087 and 726 as of March 31, 2024 and 2023, respectively.
Current wording
(5)The number of Managed Services revenue-generating professionals within our Healthcare segment was 1,116 and 772 as of June 30, 2024 and 2023, respectively.
Previous wording
The number of Managed Services revenue-generating professionals within our Education segment was 132 and 125 as of March 31, 2024 and 2023, respectively.
Current wording
The number of Managed Services revenue-generating professionals within our Education segment was 128 and 130 as of June 30, 2024 and 2023, respectively.
Previous wording
Revenues increased $38.1 million, or 12.0%, to $356.0 million for the first quarter of 2024 from $317.9 million for the first quarter of 2023. The increase in revenues was driven by continued strength in demand for Healthcare's Consulting and Managed Services and Digital capabilities, as well as an increase in demand for Education's Digital capability. These increases in revenues reflect our focus on accelerating growth in our healthcare and education industries. Additional information on our revenues by segment follows.
Current wording
Revenues increased $24.9 million, or 7.2%, to $371.7 million for the second quarter of 2024 from $346.8 million for the second quarter of 2023. The overall increase in revenues was driven by continued strength in demand for Healthcare's Consulting and Managed Services and Digital capabilities, as well as an increase in demand for Education's Consulting and Managed Services capability, reflecting our focus on accelerating growth in our healthcare and education industries. These increases in demand were partially offset by a decrease in demand for Commercial's Digital capability. Additional information on our revenues by segment follows.
Previous wording
Operating expenses for the first quarter of 2024 increased $35.5 million, or 11.5%, over the first quarter of 2023.
Current wording
Operating expenses for the second quarter of 2024 increased $6.4 million, or 2.0%, over the second quarter of 2023.
Previous wording
Direct costs increased $24.9 million, or 10.9%, to $253.3 million for the first quarter of 2024 from $228.4 million for the first quarter of 2023. The $24.9 million increase primarily related to a $23.5 million increase in compensation costs for our revenue-generating professionals as we continue to invest in and grow our talented team to meet increased market demand and a $1.2 million increase in technology costs. The increase in compensation costs is primarily attributable to a $20.4 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2024, a $2.3 million increase in performance bonus expense, and a $1.1 million increase in share-based compensation expense. As a percentage of revenues, direct costs decreased to 71.2% during the first quarter of 2024, compared to 71.9% during the first quarter of 2023. This decrease was primarily due to revenue growth that outpaced the increases in compensation costs for our revenue-generating professionals.
Current wording
Direct costs increased $13.4 million, or 5.7%, to $248.6 million for the second quarter of 2024 from $235.2 million for the second quarter of 2023. The $13.4 million increase primarily related to a $20.0 million increase in compensation costs for our revenue-generating professionals and a $1.1 million increase in technology costs, partially offset by a $6.5 million decrease in contractor expenses. The increase in compensation costs reflects our investment to grow our talented team to meet increased market demand and is primarily attributable to a $20.7 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2024. As a percentage of revenues, direct costs decreased to 66.9% during the second quarter of 2024, compared to 67.8% during the second quarter of 2023. This decrease was primarily due to the decrease in contractor expenses; partially offset by an increase in compensation costs for our revenue-generating professionals, as a percentage of revenues.
Previous wording
In the first quarter of 2023, we exited our office space in Hillsboro, Oregon which resulted in a $1.9 million non-cash impairment charge on the related fixed assets and right-of-use operating lease asset of that office space. Additionally, in the first quarter of 2023, we recognized $0.4 million of additional restructuring expense for rent and related expenses, net of sublease income, for previously vacated office spaces.
Current wording
Restructuring charges for the second quarter of 2024 were $2.1 million, compared to $1.7 million for the second quarter of 2023. In the second quarter of 2024, we exited the office space previously occupied by GG+A, which resulted in a $1.4 million non-cash impairment charge on the related right-of-use operating lease asset and fixed assets of that office space. Additionally, in the second quarter of 2024, we recognized $0.6 million of restructuring expense for rent and related expenses, net of sublease income, for previously vacated office spaces.
Previous wording
Restructuring charges were $2.3 million for both the three months ended March 31, 2024 and 2023. The $2.3 million of restructuring charges recognized in the first quarter of 2024 included $1.0 million of severance-related expenses; $0.8 million related to non-cash lease impairment charges driven by updated sublease assumptions for our previously vacated office spaces; and $0.5 million of rent and related expenses, net of sublease income, for previously vacated office spaces.
Current wording
The $1.7 million of restructuring charges recognized in the second quarter of 2023 included $0.9 million of employee-related expenses; $0.3 million related to the abandonment of a capitalized software development project; $0.2 million of rent and related expenses, net of sublease income, for previously vacated office spaces; and $0.2 million related to non-cash lease impairment charges driven by updated sublease assumptions for previously vacated office spaces.
Previous wording
Depreciation and amortization expense decreased $0.4 million, or 6.3%, to $6.0 million in the first quarter of 2024, compared to $6.4 million in the first quarter of 2023. The $0.4 million decrease in depreciation and amortization expense was primarily attributable to intangible assets acquired in business acquisitions that were fully amortized in prior periods and a decrease in amortization of intangible assets acquired in business acquisitions due to the accelerated basis of amortization in prior periods, partially offset by an an increase in amortization of intangible assets acquired in business acquisitions completed subsequent to the first quarter of 2023.
Current wording
Depreciation and amortization expense decreased $0.1 million, or 1.8%, to $6.0 million in the second quarter of 2024, compared to $6.1 million in the second quarter of 2023. The $0.1 million decrease in depreciation and amortization expense was primarily attributable to intangible assets acquired in business acquisitions that were fully amortized in prior periods and a decrease in amortization of intangible assets acquired in business acquisitions due to the accelerated basis of amortization in prior periods, partially offset by an an increase in amortization of intangible assets acquired in business acquisitions completed subsequent to the second quarter of 2023.
Previous wording
Operating income increased $1.5 million, or 8.1%, to $19.9 million in the first quarter of 2024 from $18.4 million in the first quarter of 2023. Operating margin, which is defined as operating income expressed as a percentage of revenues was 5.6% for the three months ended March 31, 2024, compared to 5.8% for the three months ended March 31, 2023.
Current wording
Operating income increased $19.7 million, or 49.6%, to $59.4 million in the second quarter of 2024 from $39.7 million in the second quarter of 2023. Operating margin, which is defined as operating income expressed as a percentage of revenues was 16.0% for the three months ended June 30, 2024, compared to 11.5% for the three months ended June 30, 2023.
Previous wording
•Healthcare operating income increased $10.4 million, or 32.4%, primarily due to the increase in revenues; partially offset by increases in compensation costs for our revenue-generating professionals, practice administration and meetings expenses, and contractor expenses. The increases in compensation costs for our revenue-generating professionals were primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2024, and increases in performance bonus expense and share-based compensation expense. Healthcare operating margin increased to 23.6% from 21.6% primarily due to the revenue growth that outpaced the increase in compensation costs for our revenue-generating professionals; partially offset by an increase in practice administration and meetings expenses, as a percentage of revenues.
Current wording
•Healthcare operating income increased $6.1 million, or 12.4%, primarily due to the increase in revenues and a decrease in contractor expenses; partially offset by increases in compensation costs for our revenue-generating professionals and bad debt expense. The increase in compensation costs for our revenue-generating professionals was primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2024, and an increase in performance bonus expense. Healthcare operating margin increased to 29.1% from 28.3% primarily due to the decrease in contractor expenses; partially offset by increases in compensation costs for our revenue-generating professionals and bad debt expense, as percentages of revenues.
Previous wording
Interest expense, net of interest income increased $0.8 million to $5.1 million in the first quarter of 2024 from $4.3 million in the first quarter of 2023, which was primarily attributable to higher levels of borrowing under our senior secured credit facility and higher interest rates during the first quarter of 2024 compared to the first quarter of 2023. See “Liquidity and Capital Resources” below and Note 7 “Financing Arrangements” within the notes to our consolidated financial statements for additional information about our senior secured credit facility.
Current wording
Interest expense, net of interest income increased $2.2 million to $8.0 million in the second quarter of 2024 from $5.8 million in the second quarter of 2023, which was primarily attributable to higher interest rates and higher levels of borrowing under our Amended Credit Facility during the second quarter of 2024 compared to the second quarter of 2023. See “Liquidity and Capital Resources” below and Note 7 “Financing Arrangements” within the notes to our consolidated financial statements for additional information about our Amended Credit Facility.
Previous wording
Other income, net increased $1.1 million to $2.8 million in the first quarter of 2024 from $1.7 million in the first quarter of 2023. The increase in other expense, net includes a $0.5 million increase in the gain recognized for the market value of our investments that are used to fund our deferred compensation liability and a $0.5 million increase in foreign currency transaction gains. During the first quarter of 2024 we recognized a $2.3 million gain for the market value of our deferred compensation investments compared to a $1.8 million gain recognized in the first quarter of 2023.
Current wording
Other income, net decreased $0.4 million to $0.6 million in the second quarter of 2024 from $1.1 million in the second quarter of 2023. The decrease in other income, net includes a $0.9 million decrease in the gain recognized for the market value of our investments that are used to fund our deferred compensation liability, partially offset by a $0.5 million increase in foreign currency transaction gains. During the second quarter of 2024 we recognized a $0.5 million gain for the market value of our deferred compensation investments compared to a $1.3 million gain recognized in the second quarter of 2023.
Previous wording
For the three months ended March 31, 2024, our effective tax rate was (2.5)% as we recognized an income tax benefit of $0.4 million on income of $17.6 million. The effective tax rate of (2.5)% was more favorable than the statutory rate, inclusive of state income taxes, of 26.1%, primarily due to a discrete tax benefit for share-based compensation awards that vested during the quarter.
Current wording
For the three months ended June 30, 2024, our effective tax rate was 28.1% as we recognized income tax expense of $14.6 million on income of $52.1 million. The effective tax rate of 28.1% was less favorable than the statutory rate, inclusive of state income taxes, of 26.1%, primarily due to certain nondeductible expense items.
Previous wording
•Healthcare revenues increased $31.7 million, or 21.3%, driven by strengthened demand for our performance improvement, strategy and innovation, and financial advisory solutions within our Consulting and Managed Services capability, as well as strengthened demand for our technology and analytics services within our Digital capability. These increases in demand were partially offset by a decrease in demand for our revenue cycle managed services solution within our Consulting and Managed Services capability. Revenues in the first quarter of 2024 included $0.2 million of incremental revenues from our acquisition of Roundtable Analytics, Inc, which was completed in September 2023.
Current wording
•Healthcare revenues increased $48.0 million, or 14.9%, driven by continued strength in demand for our performance improvement, strategy and innovation and culture and organizational excellence solutions within our Consulting and Managed Services capability, as well as strengthened demand for our technology and analytics services within our Digital capability. These increases in demand were partially offset by a decrease in demand for our revenue cycle managed services solution within our Consulting and Managed services capability. Revenues in the first six months of 2024 included $0.5 million of incremental revenues from our acquisition of Roundtable Analytics completed in September 2023.
Previous wording
•Education revenues increased $7.4 million, or 7.1%, driven by an increase in demand for our technology and analytics services and software products within our Digital capability, as well as $1.3 million of incremental revenues from our acquisition of GG+A completed in March 2024.
Current wording
•Education revenues increased $19.5 million, or 9.1%, and includes $8.1 million of incremental revenues from our acquisition of GG+A completed in March 2024. The increase in Education revenues was also driven by increases in demand for our strategy and operations solutions within our Consulting and Managed Services capability and our software products and technology and analytics services within our Digital capability.
Previous wording
•Commercial revenues decreased $1.1 million, or 1.6%, primarily due to decreases in demand for our strategy and innovation solution within our Consulting and Managed Services capability and our technology and analytics services within our Digital capability. These decreases were partially offset by an increase in demand for our financial advisory solutions within our Consulting and Managed Services capability.
Current wording
•Commercial revenues decreased $4.6 million, or 3.6%, primarily due to decreases in demand for our technology and analytics services within our Digital capability and our strategy and innovation solution within our Consulting and Managed Services capability, partially offset by an increase in demand for our financial advisory solutions within our Consulting and Managed Services capability.
Previous wording
Selling, general and administrative expenses increased by $12.0 million, or 19.2%, to $74.3 million in the first quarter of 2024 from $62.3 million in the first quarter of 2023. The $12.0 million increase primarily related to a $8.8 million increase in non-payroll costs, driven by a $3.6 million increase in legal expenses and a $2.5 million increase in practice administration and meetings expenses. The increase in legal expenses is driven by professional fees for a legal matter for which Huron is the plaintiff as well as professional fees for acquisition activity. Additionally, compensation costs for our support personnel increased $3.3 million, driven by a $3.3 million increase in salaries and related expenses and a $1.0 million increase in share-based compensation expense; partially offset by a $1.2 million decrease in performance bonus expense. As a percentage of revenues, selling, general and administrative expenses increased to 20.9% during the first quarter of 2024, compared to 19.6% during the first quarter of 2023. This increase was primarily attributable to increases in legal expenses and practice administration and meetings expenses, as percentages of revenues; partially offset by revenue growth that outpaced the increases in compensation costs for our support personnel.
Current wording
Selling, general and administrative expenses increased by $17.6 million, or 13.9%, to $144.1 million in the first six months of 2024 from $126.5 million in the first six months of 2023. The $17.6 million increase primarily related to a $12.7 million increase in non-payroll costs, driven by a $4.0 million increase in legal expenses, a $3.2 million increase in practice administration and meetings expenses, a $2.3 million increase in bad debt expense, and a $2.1 million increase in software and data hosting expenses. The increase in legal expenses is driven by professional fees for a completed legal matter for which Huron was the plaintiff as well as professional fees for acquisition activity. Additionally, selling, general and administrative expenses increased $5.0 million due to an increase in compensation costs for our support personnel driven by a $6.9 increase in salaries and related expenses, partially offset by a $1.4 million decrease in performance bonus expense. As a percentage of revenues, selling, general and administrative expenses increased to 19.8% during the first six months of 2024, compared to 19.0% during the first six months of 2023. This increase was primarily attributable to increases in legal expenses and practice administration and meetings expenses, as percentages of revenues.
Previous wording
•Commercial operating income was $14.0 million in the first quarter of 2024 compared to $14.1 million in the first quarter of 2023, as the decrease in revenues was offset by a decrease in compensation costs for our revenue-generating professionals. Commercial operating margin increased to 22.1% from 21.7% primarily due to the decrease in compensation costs for our revenue-generating professionals, as a percentage of revenues.
Current wording
•Commercial operating income decreased $1.5 million, or 6.1%, primarily due to the decrease in revenues, partially offset by decreases in restructuring charges and compensation costs for our revenue-generating professionals. The decrease in compensation costs for our revenue-generating professionals was primarily driven by a decrease in performance bonus expense. Commercial operating margin decreased to 18.8% from 19.3% primarily driven by an increase in compensation costs for our revenue-generating professionals, as a percentage of revenues; partially offset by a decrease in restructuring charges, as a percentage of revenues.
Previous wording
For the three months ended March 31, 2023, our effective tax rate was 15.3% as we recognized income tax expense of $2.4 million on income of $15.8 million. The effective tax rate of 15.3% was more favorable than the statutory rate, inclusive of state income taxes, of 26.6%, primarily due to a discrete tax benefit for share-based compensation awards that vested during the quarter and a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability. These favorable items were partially offset by certain nondeductible expense items.
Current wording
For the six months ended June 30, 2023, our effective tax rate was 25.0% as we recognized income tax expense of $12.7 million on income of $50.8 million. The effective tax rate of 25.0% was more favorable than the statutory rate, inclusive of state income taxes, of 26.6%, primarily due to a discrete tax benefit for share-based compensation awards that vested during the first quarter of 2023 and a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability. These favorable items were partially offset by certain nondeductible expense items.
Previous wording
EBITDA increased $2.2 million to $28.9 million for the first quarter of 2024 from $26.7 million for the first quarter of 2023. The increase in EBITDA was primarily attributable to the increase in segment operating income, partially offset by the increase in corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability.
Current wording
EBITDA increased $21.4 million to $95.2 million for the six months ended June 30, 2024 from $73.8 million for the six months ended June 30, 2023. The increase in EBITDA was primarily attributable to the increase in segment operating income, as well as the pre-tax $15.0 million litigation settlement gain recognized for a completed legal matter for which Huron was the plaintiff; partially offset by the increase in corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability.
Previous wording
Adjusted EBITDA increased $4.3 million to $33.8 million in the first quarter of 2024 from $29.5 million in the first quarter of 2023. The increase in adjusted EBITDA was primarily attributable to the increase in segment operating income, excluding the impact of segment restructuring charges; partially offset by the increase in corporate expenses, excluding the impacts of the corporate restructuring charges, transaction-related expenses and the change in the market value of our deferred compensation liability.
Current wording
Adjusted EBITDA increased $11.5 million to $89.5 million in the first six months of 2024 from $78.0 million in the first six months of 2023. The increase in adjusted EBITDA was primarily attributable to the increase in segment operating income, excluding the impact of segment restructuring charges; partially offset by the increase in corporate expenses, excluding the impacts of the change in the market value of our deferred compensation liability, corporate restructuring charges and transaction-related expenses.
Previous wording
Cash and cash equivalents were $18.6 million and $12.1 million at March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, our primary sources of liquidity are cash on hand, cash flows from our U.S. operations, and borrowing capacity available under our credit facility.
Current wording
Cash and cash equivalents were $17.6 million and $12.1 million at June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, our primary sources of liquidity are cash on hand, cash flows from our U.S. operations, and borrowing capacity available under our credit facility.
Previous wording
Net cash used in operating activities increased by $38.6 million to $130.7 million for the three months ended March 31, 2024 from $92.1 million for the three months ended March 31, 2023. The increase in net cash used in operating activities was primarily related to an increase in the amount paid for annual performance bonuses in the first quarter of 2024 compared to the first quarter of 2023, as well as increases in payments for salaries and related expenses for our revenue-generating professionals and selling, general and administrative expenses; partially offset by an increase in cash collections in the first three months of 2024 compared to the same prior year period.
Current wording
Net cash used in operating activities increased by $9.6 million to $23.5 million for the six months ended June 30, 2024 from $13.9 million for the six months ended June 30, 2023. The increase in net cash used in operating activities was primarily related to an increase in the amount paid for annual performance bonuses in the first quarter of 2024 compared to the first quarter of 2023, as well as increases in payments for salaries and related expenses for our revenue-generating professionals and selling, general and administrative expenses; partially offset by an increase in cash collections in the first six months of 2024 compared to the same prior year period.
Previous wording
Net cash used in investing activities was $30.6 million for the three months ended March 31, 2024, which primarily consisted of $21.2 million for the purchase of businesses; $7.6 million for payments related to internally developed software to advance our Healthcare and Education software products; $1.2 million for purchases of property and equipment, primarily related to leasehold improvements for certain office spaces and purchases of computers and related equipment; and $0.8 million for contributions to our life insurance policies.
Current wording
Net cash used in investing activities was $39.7 million for the six months ended June 30, 2024, which primarily consisted of $20.8 million for the purchases of businesses; $14.1 million for payments related to internally developed software to advance our Healthcare and Education software products; $3.7 million for purchases of property and equipment, primarily related to purchases of computers and related equipment and leasehold improvements for certain office spaces; and $1.4 million for contributions to our life insurance policies.
Previous wording
Net cash used in investing activities was $10.2 million for the three months ended March 31, 2023, which primarily consisted of $6.6 million for payments related to internally developed software to advance our Healthcare and Education software products; $2.0 million for purchases of property and equipment, primarily related to purchases of computers and related equipment; and $1.8 million for contributions to our life insurance polices.
Current wording
Net cash used in investing activities was $15.8 million for the six months ended June 30, 2023, which primarily consisted of $13.0 million for payments related to internally developed software to advance our Healthcare and Education software products; $3.7 million for purchases of property and equipment, primarily related to purchases of computers and related equipment; and $2.2 million for contributions to our life insurance polices. These uses of cash for investing activities were partially offset by $3.0 million of cash received for distributions from our life insurance policies that are used to fund our deferred compensation liability.
Previous wording
Net cash provided by financing activities was $167.9 million for the three months ended March 31, 2024. During the three months ended March 31, 2024, we borrowed $566.0 million and made repayments on our borrowings of $316.0 million. The borrowings and repayments during the first three months of 2024 include the $275.0 million Term Loan proceeds which were used to repay borrowings under the Revolver. The net borrowings of $250.0 million were primarily used to fund our operations, including our annual performance bonus payments in the first quarter of 2024. Additionally, during the first three months of 2024, we paid $61.0 million for the settlement of share repurchases and we reacquired $20.9 million of common stock as a result of tax withholdings upon vesting of share-based compensation. We also made payments of $1.4 million for debt issuance costs related to the Term Loan. These uses of cash for financing activities were partially offset by $1.2 million of cash received from stock option exercises in the first quarter of 2024.
Current wording
Net cash provided by financing activities was $68.7 million for the six months ended June 30, 2024. During the six months ended June 30, 2024, we borrowed $618.5 million and made repayments on our borrowings of $430.9 million. The borrowings and repayments during the first three months of 2024 include the $275.0 million Term Loan proceeds which were used to repay borrowings under the Revolver. The net borrowings of $187.6 million were primarily used to fund our operations, including our annual performance bonus payments in the first quarter of 2024. Additionally, during the first six months of 2024, we paid $97.3 million for the settlement of share repurchases and we reacquired $21.1 million of common stock as a result of tax withholdings upon vesting of share-based compensation. We also made payments of $1.4 million for debt issuance costs related to the Term Loan. These uses of cash for financing activities were partially offset by $1.2 million of cash received from stock option exercises in the first six months of 2024.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Revenues by segment and capability for the six months ended June 30, 2024 and 2023 were as follows:
Current report — wording carried from elsewhere
Operating expenses and operating expenses as a percentage of revenues were as follows:
Current report — wording carried from elsewhere
Reimbursable expenses are billed to clients at cost and primarily relate to travel and out-of-pocket expenses incurred in connection with client engagements. These expenses are also included in total revenues and reimbursable expenses. We manage our business on the basis of revenues before reimbursable expenses, which we believe is the most accurate reflection of our services because it eliminates the effect of reimbursable expenses that are also included as a component of operating expenses.
Current report — wording carried from elsewhere
Depreciation and amortization expense decreased $0.5 million, or 4.1%, to $12.0 million for the first six months of 2024, compared to $12.5 million for first six months of 2023. The $0.5 million decrease in depreciation and amortization expense was primarily attributable to intangible assets acquired in business acquisitions that were fully amortized in prior periods and a decrease in the amortization of intangible assets acquired in business acquisitions due to the accelerated basis of amortization in prior periods, partially offset by an an increase in amortization of intangible assets acquired in business acquisitions completed subsequent to the second quarter of 2023.
Current report — wording carried from elsewhere
Operating income and operating margin for each of our segments is as follows. See the Segment and Consolidated Operating Results table above for a reconciliation of our total segment operating income to consolidated Huron operating income.
Current report — wording carried from elsewhere
Interest expense, net of interest income increased $3.0 million to $13.1 million in the first six months of 2024 from $10.1 million in the first six months of 2023, which was primarily attributable to higher interest rates and higher levels of borrowing under our Amended Credit Facility during the first six months of 2024 compared to the first six months of 2023. See “Liquidity and Capital Resources” below and Note 7 “Financing Arrangements” within the notes to our consolidated financial statements for additional information about our senior secured credit facility.
Current report — wording carried from elsewhere
For the six months ended June 30, 2024, our effective tax rate was 20.3% as we recognized income tax expense of $14.2 million on income of $69.7 million. The effective tax rate of 20.3% was more favorable than the statutory rate, inclusive of state income taxes, of 26.1%, primarily due to a discrete tax benefit for share-based compensation awards that vested during the first quarter of 2024 and a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability. These favorable items were partially offset by certain nondeductible expense items.