Huron Consulting Group Reports Second Quarter 2008 Financial Results

Huron Consulting Group Inc. (NASDAQ: HURN): Revenues of $143.4 million for Q2 2008 increased 21.3% from $118.3 million in Q2 2007. Revenues of $282.8 million for the first half of 2008 increased 20.7% from $234.3 million for the first half of 2007. Diluted earnings per share for Q2 2008 was $0.54 compared to $0.56 in Q2 2007. Average number of full-time billable consultants(4) totaled 1,224 for Q2 2008 compared to 936 for Q2 2007. Average number of full-time equivalent professionals(7) totaled 863 for Q2 2008 compared to 413 in the same period last year. Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of financial and operational consulting services, today announced financial results for the second quarter ended June 30, 2008. "Huron’s Health and Education Consulting and Legal Consulting businesses had very strong quarters and we are optimistic about their position to generate future growth. The addition of the Stockamp team will create a real powerhouse by serving multiple segments of the healthcare industry, including major health systems, academic medical centers and community hospitals,” said Gary E. Holdren, chairman and chief executive officer, Huron Consulting Group. "We are making targeted adjustments in certain businesses to make sure that we have people with the rights skill sets in place to meet marketplace needs. At the same time, we are executing our business plan by identifying market demands, meeting the evolving needs of the marketplace, and helping clients solve complex business challenges. We are confident that our balanced portfolio of offerings will continue to deliver results.” Second Quarter 2008 Results Revenues of $143.4 million for the second quarter of 2008 increased 21.3% from $118.3 million for the second quarter of 2007. The Company's second quarter 2008 operating income increased 2.3% to $20.2 million compared to $19.8 million in the second quarter of 2007. Net income was $9.8 million, or $0.54 per diluted share, for the second quarter of 2008 compared to $10.1 million, or $0.56 per diluted share, for the same period last year. Financial results for the second quarter of 2007 included $2.3 million of rapid amortization of intangible assets. There was no rapid amortization in the second quarter of 2008. Second quarter 2008 earnings before interest, taxes, depreciation and amortization ("EBITDA")(8) was $25.6 million, or 17.9% of revenues, compared to $26.2 million, or 22.2% of revenues, in the comparable quarter last year. Adjusted EBITDA(8), which excludes share-based compensation expense, was $32.8 million, or 22.9% of revenues, compared to $31.1 million, or 26.3% of revenues, in the comparable quarter last year. The average number of full-time billable consultants(4) increased 30.8% to 1,224 in the second quarter of 2008 compared to 936 in the same quarter last year. Huron also has a number of consultants who work variable schedules as needed by clients, as well as contract reviewers and other professionals who generate revenues primarily based on number of hours worked and units produced, such as pages reviewed and data processed. The average number of these full-time equivalent professionals(7) increased 109.0% to 863 in the second quarter of 2008 compared to 413 for the comparable period in 2007. Full-time billable consultant utilization rate was 66.8% during the second quarter of 2008 compared with 77.9% during the same period last year. Average billing rate per hour for full-time billable consultants was $273 for the second quarter of 2008 compared to $281 for the second quarter of 2007. Year-to-Date Results Revenues of $282.8 million for the first six months of 2008 increased 20.7% from $234.3 million for the first half of 2007. The Company's first half 2008 operating income increased 5.6% to $40.9 million compared to $38.7 million in the first half of 2007. Net income was $20.0 million, or $1.10 per diluted share, for the first half of 2008 compared to $19.9 million, or $1.11 per diluted share, for the same period last year. Financial results for the first half of 2007 included $4.5 million of rapid amortization of intangible assets. There was no rapid amortization in the first half of 2008. EBITDA(8) for both the first half of 2008 and 2007 was $51.4 million, or 18.2% of revenues in 2008 and 22.0% of revenues in 2007. Adjusted EBITDA(8), which excludes share-based compensation expense, rose 7.4% to $65.0 million, or 23.0% of revenues, compared to $60.5 million, or 25.8% of revenues, in the comparable period last year. The average number of full-time billable consultants(4) increased 32.1% to 1,223 in the first half of 2008 compared to 926 in the same period last year. The average number of full-time equivalent professionals(7) increased 83.0% to 807 in the first half of 2008 compared to 441 for the comparable period in 2007. Full-time billable consultant utilization rate was 65.9% during the first half of 2008 compared with 78.0% during the same period last year. Average billing rate per hour for full-time billable consultants was $275 for the first half of 2008 compared to $276 for the first half of 2007. Operating Segments Results Huron continues to demonstrate the success of its broad portfolio of service offerings with solid revenue growth based upon strong market demand. The Company’s operating segments are as follows: Health and Education Consulting; Financial Consulting; Legal Consulting; and Corporate Consulting. Segment results are included in the attached schedules and in Huron's Form 10-Q filing for the quarter ended June 30, 2008. Stockamp & Associates Acquisition On July 8, 2008, Huron announced the acquisition of the assets of Stockamp & Associates, Inc., a nationally recognized management consulting firm specializing in helping high-performing hospitals and health systems optimize their financial and operational performance. The initial purchase price was made for approximately $219 million, consisting of $169 million in cash and $50 million in stock, subject to adjustment. Additional purchase consideration will be payable if specific performance targets are met. In the 12 months ended March 31, 2008, Stockamp had cash basis revenues of approximately $94 million. Workforce Reductions During July 2008, the Company initiated reductions in workforce to balance its employee base with current revenue expectations, market demand, and areas of focus. These initiatives will include the elimination of the operational consulting group within the Corporate Consulting segment and a reduction in the number of consultants in the Financial Consulting segment. The Company estimates restructuring and severance charges relating to the workforce reductions of approximately $2 million. Outlook for the Remainder of 2008 The table below presents the components of the Company’s outlook based on currently available information, for both the low and high end of the ranges, for the third quarter and the full year 2008 (in millions except earnings per share):       LegacyHuron (1) Stockamp (2) RestructuringandSeveranceImpact (3) CombinedHuron Low High Low High Low High Third Quarter 2008 Revenues $ 152.0 - $ 157.0 $ 14.0 - $ 16.0 $ (2.0 ) $ 164.0 - $ 171.0 EBITDA $ 32.0 - $ 35.0 $ (1.5 ) - $ -- $ (2.5 ) $ 28.0 - $ 32.5 Operating Income $ 26.0 - $ 29.5 $ (5.0 ) - $ (4.0 ) $ (2.5 ) $ 18.5 - $ 23.0 Diluted EPS $ 0.72 - $ 0.82 $ (0.26 ) - $ (0.24 ) $ (0.08 ) $ 0.38 - $ 0.50   Full Year 2008 Revenues $ 595.0 - $ 615.0 $ 35.0 - $ 40.0 $ (5.0 ) $ 625.0 - $ 650.0 EBITDA $ 116.5 - $ 124.5 $ 4.5 - $ 6.5 $ (2.5 ) $ 118.5 - $ 128.5 Operating Income $ 94.5 - $ 102.5 $ (4.0 ) - $ (2.0 ) $ (2.5 ) $ 88.0 - $ 98.0 Diluted EPS $ 2.53 - $ 2.77 $ (0.35 ) - $ (0.30 ) $ (0.08 ) $ 2.10 - $ 2.39   (1)   The Legacy Huron column represents revenues and earnings estimates without giving consideration to the acquisition of Stockamp, the impact of the elimination of the operational consulting group within the Corporate Consulting segment, and the severance charges relating to the workforce reductions as described above.   (2) While the Stockamp acquisition will be dilutive to 2008 earnings, it should be accretive to 2009 earnings, as we estimate Stockamp will have revenues in excess of $100 million for 2009 and should have comparable operating metrics to our Health and Education Consulting segment. Based on a preliminary valuation that is subject to refinement, estimated results for the third quarter and full year 2008 also include estimates for intangible assets amortization totaling $3.5 million and $5.0 million, respectively, of which $2.0 million and $3.2 million, respectively, represents rapid amortization. This column also includes the estimated interest cost associated with the acquisition as well as dilution resulting from shares issued in connection with the acquisition.   (3) The Restructuring and Severance Impact column represents estimated revenues and earnings foregone due to the elimination of the operational consulting group and includes $2 million in severance charges relating to the workforce reductions. Share-based compensation expense of approximately $7.5 million and $28.0 million is included in the Q3 and full year 2008 estimates, respectively. Weighted average diluted share counts for 2008 are estimated to be 19.9 million for Q3 2008 and 19.1 million for full year 2008. Second Quarter 2008 Webcast The Company will host a webcast to discuss its financial results today at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). The conference call is being webcast by Thomson and can be accessed at Huron Consulting Group’s website at www.huronconsultinggroup.com/webcasts.aspx. A replay will be available approximately two hours after the end of the webcast and for 90 days thereafter. About Huron Consulting Group Huron Consulting Group helps clients effectively address complex challenges that arise in litigation, disputes, investigations, regulatory compliance, procurement, financial distress, and other sources of significant conflict or change. The Company also helps clients deliver superior customer and capital market performance through integrated strategic, operational, and organizational change. Huron provides services to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations, and the law firms that represent these various organizations. Learn more at www.huronconsultinggroup.com. Statements in this press release that are not historical in nature, including those concerning Huron Consulting Group's current expectations about the Company's future results are "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as "may,” "should,” "expects,” "plans,” "anticipates,” "believes,” "estimates,” or "continues.” These forward-looking statements reflect our current expectation about our future results, levels of activity, performance or achievements, including without limitation, that our business continues to grow at the current expectations with respect to, among other factors, utilization rates, billing rates, and number of revenue-generating professionals; that we are able to expand our service offerings; that we successfully integrate the businesses we acquire; and that existing market conditions, including those in the credit markets, do not change from current expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. Please see "Risk Factors” in our 2007 Annual Report on Form 10-K and in other documents we file with the Securities and Exchange Commission for a complete description of the material risks we face.   HURON CONSULTING GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)     Three months endedJune 30, Six months endedJune 30, 2008   2007 2008   2007 Revenues and reimbursable expenses: Revenues $ 143,408 $ 118,266 $ 282,802 $ 234,275 Reimbursable expenses   12,565     10,910     24,178     20,945   Total revenues and reimbursable expenses 155,973 129,176 306,980 255,220 Direct costs and reimbursable expenses(exclusive of depreciation and amortization shown in operating expenses): Direct costs 85,991 66,508 169,435 133,411 Intangible assets amortization 24 2,304 48 4,544 Reimbursable expenses   12,578     10,814     24,188     20,931   Total direct costs and reimbursable expenses   98,593     79,626     193,671     158,886   Operating expenses: Selling, general and administrative 31,780 25,606 61,942 49,433 Depreciation and amortization   5,370     4,177     10,508     8,219   Total operating expenses   37,150     29,783     72,450     57,652   Operating income 20,230 19,767 40,859 38,682 Other income (expense): Interest income (expense), net (2,294 ) (1,825 ) (4,127 ) (3,250 ) Other income (expense)   (35 )   95     (329 )   125   Total other expense   (2,329 )   (1,730 )   (4,456 )   (3,125 ) Income before provision for income taxes 17,901 18,037 36,403 35,557 Provision for income taxes   8,092     7,936     16,381     15,645   Net income $ 9,809   $ 10,101   $ 20,022   $ 19,912     Earnings per share: Basic $ 0.56 $ 0.60 $ 1.15 $ 1.19 Diluted $ 0.54 $ 0.56 $ 1.10 $ 1.11   Weighted average shares used in calculating earnings per share: Basic 17,558 16,842 17,465 16,784 Diluted 18,178 17,993 18,197 17,881     HURON CONSULTING GROUP INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited)       June 30,2008   December 31,2007 Assets Current assets: Cash and cash equivalents $ 14,335 $ 2,993 Receivables from clients, net 90,198 86,867 Unbilled services, net 43,255 28,245 Income tax receivable 7,636 13,492 Deferred income taxes 13,960 13,680 Prepaid expenses and other current assets   13,298     10,435   Total current assets 182,682 155,712 Property and equipment, net 44,378 38,147 Deferred income taxes 2,662 3,628 Other non-current assets 12,876 8,737 Intangible assets, net 10,519 13,936 Goodwill   246,386     223,053   Total assets $ 499,503   $ 443,213     Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 8,138 $ 5,823 Accrued expenses 16,206 17,748 Accrued payroll and related benefits 29,490 58,279 Accrued consideration for business acquisitions -- 32,422 Income tax payable 2,843 1,342 Deferred revenues 7,377 5,278 Note payable and current portion of capital lease obligations   23,246     1,309   Total current liabilities 87,300 122,201 Non-current liabilities: Deferred compensation and other liabilities 5,233 3,795 Capital lease obligations, net of current portion 127 234 Bank borrowings 179,500 123,500 Deferred lease incentives   9,046     9,699   Total non-current liabilities 193,906 137,228 Commitments and contingencies -- -- Stockholders’ equity Common stock; $0.01 par value; 500,000,000 shares authorized; 19,553,211 and 19,279,176 shares issued at June 30, 2008 and December 31, 2007, respectively 185 182 Treasury stock, at cost, 328,428 and 589,755 shares at June 30, 2008 and December 31, 2007, respectively (18,297 ) (20,703 ) Additional paid-in capital 128,128 116,148 Retained earnings 108,123 88,101 Accumulated other comprehensive income   158     56   Total stockholders’ equity   218,297     183,784   Total liabilities and stockholders’ equity $ 499,503   $ 443,213       HURON CONSULTING GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)     Six months endedJune 30, 2008   2007 Cash flows from operating activities: Net income $ 20,022 $ 19,912 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,556 12,763 Deferred income taxes 687 (7,171 ) Share-based compensation 13,568 9,051 Allowances for doubtful accounts and unbilled services 1,172 4,219 Changes in operating assets and liabilities, net of businesses acquired: Increase in receivables from clients (1,647 ) (19,623 ) Increase in unbilled services (17,866 ) (12,741 ) Decrease in income tax receivable / payable, net 7,356 1,987 Increase in other assets (5,755 ) (8,572 ) Increase in accounts payable and accrued liabilities 3,357 3,880 Decrease in accrued payroll and related benefits (28,789 ) (7,324 ) Increase (decrease) in deferred revenues   2,099     (1,599 ) Net cash provided by (used in) operating activities   4,760     (5,218 )   Cash flows from investing activities: Purchases of property and equipment, net (13,324 ) (8,094 ) Net investment in life insurance policies (1,249 ) (1,641 ) Purchases of businesses, net of cash acquired   (34,554 )   (98,345 ) Net cash used in investing activities   (49,127 )   (108,080 )   Cash flows from financing activities: Proceeds from exercise of stock options 181 405 Shares redeemed for employee tax withholdings (5,744 ) (1,894 ) Tax benefit from share-based compensation 6,384 3,866 Proceeds from borrowings under line of credit 173,500 184,500 Repayments on line of credit (117,500 ) (85,500 ) Principal payment of note payable and capital lease obligations   (1,214 )   (1,141 ) Net cash provided by financing activities   55,607     100,236     Effect of exchange rate changes on cash   102     (73 )   Net increase (decrease) in cash and cash equivalents 11,342 (13,135 ) Cash and cash equivalents at beginning of the period   2,993     16,572   Cash and cash equivalents at end of the period $ 14,335   $ 3,437     Supplemental disclosure of cash flow information: Non-cash investing activity: Issuance of note payable for purchase of a business $ 23,000 $ --     HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (Unaudited)     Three Months EndedJune 30, PercentIncrease(Decrease) Segment and Consolidated Operating Results (in thousands):   2008       2007     Revenues and reimbursable expenses:   Health and Education Consulting $ 56,696 $ 42,810 32.4 % Financial Consulting 34,789 32,669 6.5 % Legal Consulting 30,498 22,795 33.8 % Corporate Consulting   21,425     19,992   7.2 % Total revenues 143,408 118,266 21.3 % Total reimbursable expenses   12,565     10,910   15.2 % Total revenues and reimbursable expenses $ 155,973   $ 129,176   20.7 % Operating income: Health and Education Consulting $ 22,679 $ 14,021 61.8 % Financial Consulting 7,980 15,281 (47.8 %) Legal Consulting 10,076 7,272 38.6 % Corporate Consulting   6,617     5,920   11.8 % Total segment operating income 47,352 42,494 11.4 % Operating expenses not allocated to segments   27,122     22,727   19.3 % Total operating income $ 20,230   $ 19,767   2.3 %   Other Operating Data:           Number of full-time billable consultants (at period end) (4): Health and Education Consulting 489 355 37.7 % Financial Consulting 338 291 16.2 % Legal Consulting 159 126 26.2 % Corporate Consulting   221     168   31.5 % Total 1,207 940 28.4 % Average number of full-time billable consultants (for the period) (4): Health and Education Consulting 481 356 Financial Consulting 352 288 Legal Consulting 166 122 Corporate Consulting   225     170   Total 1,224 936 Full-time billable consultant utilization rate (5): Health and Education Consulting 80.8 % 80.5 % Financial Consulting 51.9 % 74.6 % Legal Consulting 62.6 % 79.0 % Corporate Consulting 62.3 % 77.1 % Total 66.8 % 77.9 % Full-time billable consultant average billing rate per hour (6): Health and Education Consulting $ 267 $ 255 Financial Consulting $ 285 $ 311 Legal Consulting $ 236 $ 247 Corporate Consulting $ 303 $ 311 Total $ 273 $ 281 Revenue per full-time billable consultant (in thousands): Health and Education Consulting $ 106 $ 99 Financial Consulting $ 66 $ 111 Legal Consulting $ 68 $ 85 Corporate Consulting $ 91 $ 114 Total $ 87 $ 104       HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED) (Unaudited)     Three Months EndedJune 30,   PercentIncrease(Decrease) Other Operating Data:   2008       2007     Average number of full-time equivalents (for the period) (7): Health and Education Consulting 50 60 (16.7 %) Financial Consulting 185 6 N/M Legal Consulting 619 341 81.5 % Corporate Consulting   9     6   50.0 % Total 863 413 109.0 % Revenue per full-time equivalents (in thousands): Health and Education Consulting $ 113 $ 125 Financial Consulting $ 63 $ 97 Legal Consulting $ 31 $ 36 Corporate Consulting $ 98 $ 91 Total $ 43 $ 51     HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED) (Unaudited)     Six Months EndedJune 30, PercentIncrease(Decrease) Segment and Consolidated Operating Results (in thousands):   2008       2007     Revenues and reimbursable expenses:   Health and Education Consulting $ 107,784 $ 81,662 32.0 % Financial Consulting 73,600 69,281 6.2 % Legal Consulting 55,721 46,066 21.0 % Corporate Consulting   45,697     37,266   22.6 % Total revenues 282,802 234,275 20.7 % Total reimbursable expenses   24,178     20,945   15.4 % Total revenues and reimbursable expenses $ 306,980   $ 255,220   20.3 % Operating income: Health and Education Consulting $ 44,811 $ 26,221 70.9 % Financial Consulting 17,569 31,456 (44.1 %) Legal Consulting 16,663 15,174 9.8 % Corporate Consulting   15,994     10,116   58.1 % Total segment operating income 95,037 82,967 14.5 % Operating expenses not allocated to segments   54,178     44,285   22.3 % Total operating income $ 40,859   $ 38,682   5.6 %   Other Operating Data:           Number of full-time billable consultants (at period end) (4): Health and Education Consulting 489 355 37.7 % Financial Consulting 338 291 16.2 % Legal Consulting 159 126 26.2 % Corporate Consulting   221     168   31.5 % Total 1,207 940 28.4 % Average number of full-time billable consultants (for the period) (4): Health and Education Consulting 467 350 Financial Consulting 360 284 Legal Consulting 170 122 Corporate Consulting   226     170   Total 1,223 926 Full-time billable consultant utilization rate (5): Health and Education Consulting 79.5 % 79.4 % Financial Consulting 51.9 % 79.8 % Legal Consulting 60.1 % 77.3 % Corporate Consulting 63.8 % 72.7 % Total 65.9 % 78.0 % Full-time billable consultant average billing rate per hour (6): Health and Education Consulting $ 268 $ 252 Financial Consulting $ 276 $ 304 Legal Consulting $ 235 $ 243 Corporate Consulting $ 317 $ 302 Total $ 275 $ 276 Revenue per full-time billable consultant (in thousands): Health and Education Consulting $ 210 $ 193 Financial Consulting $ 131 $ 237 Legal Consulting $ 133 $ 163 Corporate Consulting $ 196 $ 213 Total $ 174 $ 206     HURON CONSULTING GROUP INC. SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED) (Unaudited)     Six Months EndedJune 30,   PercentIncrease(Decrease) Other Operating Data:   2008       2007     Average number of full-time equivalents (for the period) (7): Health and Education Consulting 43 60 (28.3 %) Financial Consulting 212 8 N/M Legal Consulting 544 368 47.8 % Corporate Consulting   8     5   60.0 % Total 807 441 83.0 % Revenue per full-time equivalents (in thousands): Health and Education Consulting $ 223 $ 234 Financial Consulting $ 124 $ 256 Legal Consulting $ 61 $ 71 Corporate Consulting $ 181 $ 223 Total $ 87 $ 98     (4)   Consists of our full-time professionals who provide consulting services and generate revenues based on the number of hours worked. (5) Utilization rate for our full-time billable consultants is calculated by dividing the number of hours all our full-time billable consultants worked on client assignments during a period by the total available working hours for all of these consultants during the same period, assuming a forty-hour work week, less paid holidays and vacation days. (6) Average billing rate per hour for our full-time billable consultants is calculated by dividing revenues for a period by the number of hours worked on client assignments during the same period. (7) Consists of consultants who work variable schedules as needed by our clients, as well as contract reviewers and other professionals who generate revenues primarily based on number of hours worked and units produced, such as pages reviewed and data processed. N/M Not meaningful, change greater than 500%.   HURON CONSULTING GROUP INC.   RECONCILIATION OF OPERATING INCOME TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (8) (in thousands)     Three months endedJune 30, Six months endedJune 30, 2008   2007 2008   2007 Revenues $ 143,408   $ 118,266   $ 282,802   $ 234,275     Operating income $ 20,230 $ 19,767 $ 40,859 $ 38,682 Add back: Depreciation and amortization   5,394     6,481     10,556     12,763   Earnings before interest, taxes, depreciation and amortization (EBITDA) (8) 25,624 26,248   51,415 51,445 Add back: Share-based compensation   7,150     4,845     13,568     9,051   Adjusted EBITDA (8) $ 32,774   $ 31,093   $ 64,983   $ 60,496   Adjusted EBITDA as a percentage of revenues   22.9 %   26.3 %   23.0 %   25.8 %       RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (8) (in thousands)   Three months endedJune 30, Six months endedJune 30,   2008     2007     2008     2007   Net income $ 9,809   $ 10,101   $ 20,022   $ 19,912   Diluted earnings per share $ 0.54   $ 0.56   $ 1.10   $ 1.11   Add back: Amortization of intangible assets 1,694 3,868 3,418 7,657 Share-based compensation 7,150 4,845 13,568 9,051 Tax effect   (3,618 )   (3,564 )   (6,948 )   (6,834 ) Total adjustments, net of tax   5,226     5,149     10,038     9,874   Adjusted net income (8) $ 15,035   $ 15,250   $ 30,060   $ 29,786   Adjusted diluted earnings per share (8) $ 0.83   $ 0.85   $ 1.65   $ 1.67     (8)   In evaluating the Company's financial performance, management uses earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, and adjusted net income, which are non-GAAP measures. Management believes that the use of such measures, as supplements to operating income, net income and other GAAP measures, are useful indicators of the Company's financial performance and its ability to generate cash flows from operations that are available for taxes and capital expenditures. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.