Huron Consulting Group Inc (HURN) 2025 Q1 法說會逐字稿

Good afternoon, and welcome to Huron Consulting Group's webcast to discuss financial results for the first quarter of 2025. (Operator Instructions) As a reminder, this conference call is being recorded.

下午好，歡迎收聽 Huron Consulting Group 的網路廣播，討論 2025 年第一季的財務表現。（操作員指示）提醒一下，本次電話會議正在錄音。

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.

在我們開始之前，我想提醒大家注意公司新聞稿末尾的披露內容，以獲取有關本次電話會議中可能做出或討論的任何前瞻性陳述的資訊。新聞稿發佈在休倫的網站上。請查看該資訊以及向美國證券交易委員會提交的文件，以了解可能影響今天下午網路廣播討論主題的因素。

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

該公司將討論一項或多項非公認會計準則財務指標。請查看收益報告和 Huron 網站上的美國證券交易委員會 (SEC) 要求的所有披露信息，包括與最具可比性的 GAAP 數字的對帳。

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

現在我想把電話轉給休倫諮詢集團執行長兼總裁馬克‧哈西 (Mark Hussey)。哈西先生，請繼續。

Good afternoon, and welcome to Huron Consulting Group's first-quarter 2025 earnings call. With me today are John Kelly, our Chief Financial Officer; and Ronnie Dail, our Chief Operating Officer. .

下午好，歡迎參加 Huron Consulting Group 2025 年第一季財報電話會議。今天和我一起的還有我們的財務長約翰凱利 (John Kelly)；以及我們的營運長 Ronnie Dail。。

Driven by strong growth across all three operating segments, revenues before reimbursable expenses or RBR grew 11% over the first quarter of 2024, while we continue to expand our margins. Our first-quarter results reflect our continued progress in executing our growth strategy, which we refreshed and shared at our Investor Day in March. We're encouraged by our performance in the first quarter in the face of a dynamic external environment.

受三大營運部門強勁成長的推動，扣除可報銷費用或 RBR 前的營收在 2024 年第一季成長了 11%，同時我們的利潤率持續擴大。我們第一季的業績反映了我們在執行成長策略方面取得的持續進展，我們在三月的投資者日上更新並分享了這項策略。面對不斷變化的外部環境，我們對第一季的業績感到鼓舞。

Today, we reaffirm our annual guidance. As we stated on our year-end earnings call and reiterated at our Investor Day last month, we believe the challenges and opportunities in the external environment are contemplated within our guidance range. Our strong client relationships, incredibly talented team, industry expertise, and breadth of capabilities, including our performance improvement offerings collectively position us well to serve our clients as they navigate an evolving and complex regulatory landscape and continued market disruption.

今天，我們重申我們的年度指引。正如我們在年終收益電話會議上所述，並在上個月的投資者日上重申的那樣，我們相信外部環境中的挑戰和機會都在我們的指導範圍內。我們與客戶建立了牢固的關係，擁有非常優秀的團隊，擁有豐富的行業專業知識，並且具備廣泛的能力，包括我們的績效改進產品，這些都使我們能夠為客戶提供良好的服務，幫助他們應對不斷變化和復雜的監管環境以及持續的市場動盪。

I'll now share some additional insights into our first-quarter performance. In the Healthcare segment, first quarter RBR grew 10% and over the prior year quarter. The increase in RBR in the first quarter of 2025 was primarily driven by continued strong demand for our performance improvement and financial advisory offerings.

現在我將分享一些有關我們第一季業績的額外見解。在醫療保健領域，第一季 RBR 成長了 10%，比去年同期有所成長。2025 年第一季 RBR 的成長主要得益於對我們的績效改善和財務諮詢產品的持續強勁需求。

Our Healthcare business continues to perform exceptionally well as our clients respond to increasing financial pressures and potential regulatory changes. Despite increased patient volumes, many of our large health system clients continue to face operating expenses that are outpacing reimbursements. We believe this is a trend that will continue for the foreseeable future.

隨著我們的客戶應對日益增加的財務壓力和潛在的監管變化，我們的醫療保健業務繼續表現出色。儘管患者數量不斷增加，但我們的許多大型醫療系統客戶仍然面臨營運費用超過報銷金額的問題。我們相信，這一趨勢在可預見的未來將會持續下去。

In addition, potential changes to Medicaid funding, reductions in research funding changes to the 340B drug pricing program and increases in the cost of imported drugs and medical devices are forcing health systems to evolve their clinical and administrative functions as they manage declining margins.

此外，醫療補助資金的潛在變化、340B 藥品定價計畫研究資金的減少以及進口藥品和醫療器材成本的增加，迫使醫療系統在管理不斷下降的利潤率時改進其臨床和行政職能。

Providers are positioning their businesses to stay ahead of the evolving external environment. while operating in an increasingly competitive landscape. In some cases, our clients are responding to near-term financial pressures. While others are executing strategic, operational and digital initiatives, to sustain or advance their market position while preparing for a more challenging financial environment in the future.

供應商正在調整其業務定位，以在不斷變化的外部環境中保持領先地位。在競爭日益激烈的環境中運作。在某些情況下，我們的客戶正在應對近期的財務壓力。而其他公司則正在執行策略、營運和數位計劃，以維持或提升其市場地位，同時為未來更具挑戰性的金融環境做好準備。

To execute these initiatives, providers are turning to Huron as their trusted adviser and a long track record of delivering significant tangible results. The pipeline continues to grow and demand for our Healthcare offerings remain strong, which is a testament to the investments we've made to diversify our portfolio.

為了實施這些舉措，供應商紛紛尋求休倫作為他們值得信賴的顧問，並尋求其長期以來取得顯著切實成果的記錄。產品線持續成長，對我們的醫療保健產品的需求仍然強勁，證明了我們為實現產品組合多元化所做的投資。

Our offerings today meet the broad needs of the market, focused on both accelerating growth in our clients' markets and driving efficiency across their administrative and clinical operations. Across the full range of market conditions, we're well positioned to address the wide array of opportunities and challenges facing a hospital, physician group and health system clients.

我們今天提供的產品滿足了市場的廣泛需求，專注於加速客戶市場的成長並提高其行政和臨床營運的效率。在各種市場條件下，我們都有能力應對醫院、醫生團體和醫療系統客戶面臨的各種機會和挑戰。

Education segment RBR grew 10% in the first quarter of 2025 over the prior year quarter, driven by strong demand for our strategy and operations and advancement offerings and increased demand for our software product offerings. Let me share some context on our Education business. While we have successfully diversified our client base over time, large public and private research universities have been and continue to be at the core of our business. Nearly every day, the headlines hit the press of potential regulatory impacts affecting the higher education industry.

2025 年第一季度，教育部門 RBR 較去年同期成長 10%，這得益於對我們的策略和營運及進步產品的強勁需求以及對我們的軟體產品產品的需求增加。讓我分享一些關於我們教育業務的背景。雖然我們隨著時間的推移成功地實現了客戶群的多元化，但大型公立和私立研究型大學一直是並將繼續是我們業務的核心。幾乎每天，各大媒體都會通報可能影響高等教育產業的監管政策。

It's important to note that these recent regulatory initiatives and federal directives do not impact colleges and universities uniformly. Nearly all research universities are experiencing some impact related to the evolving regulatory environment, magnitude, timing, and strategic implications of these impacts very significantly depending on the unique attributes of institutions.

值得注意的是，這些最近的監管措施和聯邦指令對學院和大學的影響並不一致。幾乎所有研究型大學都受到不斷變化的監管環境的影響，這些影響的程度、時間和戰略意義在很大程度上取決於機構的獨特屬性。

More significant and publicized policy changes have largely impacted a relatively small number of private universities, incidentally, we haven't continued to provide services. And the uncertainty that exists today, many of our clients are turning to Huron to understand potential scenarios, evaluate their options, and take pre-emptive actions to position their organizations for the best possible outcome during this period.

更重要和公開的政策變化在很大程度上影響了相對較少的私立大學，順便說一句，我們沒有繼續提供服務。鑑於目前存在的不確定性，我們的許多客戶都向 Huron 尋求幫助，以了解潛在情況、評估他們的選擇並採取先發製人的行動，使他們的組織在此期間獲得最佳結果。

For example, helping clients understand the financial impacts of the federal directives, potential options and mitigation strategies or specifically, we're helping them identify opportunities to improve liquidity and redesign their long-range planning and budget models and accelerate transformation of their operating models. We're also analyzing clients' funding mechanisms and expenses to determine how best to close potential operating deficits or future funding gaps.

例如，幫助客戶了解聯邦指令的財務影響、潛在選擇和緩解策略，或者俱體來說，我們幫助他們發現改善流動性的機會，重新設計他們的長期規劃和預算模型，並加速他們的營運模式的轉變。我們還分析客戶的融資機制和支出，以確定如何最好地彌補潛在的營運赤字或未來的資金缺口。

Similar to Healthcare, the means of a large and small, public and private clients or wide range. The breadth of our diverse portfolio and a deep understanding of the industry as well as our clients and institutions is unmatched by our competition and positions us well to be their trusted partner as they navigate the current disruption.

與醫療保健類似，涉及大、小、公共和私人客戶或廣泛的範圍。我們多元化投資組合的廣度以及對產業、客戶和機構的深刻理解是我們的競爭對手無法比擬的，並且使我們成為他們在應對當前困境時值得信賴的合作夥伴。

Now let me turn to the Commercial segment. In the first quarter of 2025, Commercial segment RBR grew 17% over the prior year quarter and grew 11% sequentially compared to the fourth quarter of 2024. The year-over-year increase in RBR was driven by the incremental RBR from our acquisition of AXIA and strong demand for our digital offerings, partially offset by decreases in RBR from our strategy and innovation and financial advisory offering. Excluding the incremental RBR from our acquisition of AXIA, a commercial digital capability grew 12% over the prior year quarter.

現在讓我轉到商業部分。2025 年第一季度，商業部門 RBR 較去年同期成長 17%，與 2024 年第四季相比季增 11%。RBR 的同比增長得益於我們收購 AXIA 帶來的 RBR 增量以及市場對我們數位產品的強勁需求，但部分被我們策略和創新以及財務諮詢產品帶來的 RBR 下降所抵消。不計入我們收購 AXIA 所獲得的增量 RBR，商業數位能力比去年同期成長了 12%。

Our Commercial clients are also facing increased pressure from the dynamic external environment, stemming from the uncertainty related to tariffs and a more volatile macroeconomic environment. Similar to Healthcare and Education, Commercial clients are also turning to Huron as their partner of choice to navigate the market disruptions.

我們的商業客戶也面臨來自動態外部環境的越來越大的壓力，這種壓力源於與關稅相關的不確定性以及更動盪的宏觀經濟環境。與醫療保健和教育類似，商業客戶也將休倫作為其應對市場混亂的首選合作夥伴。

For example, leveraging our supply chain offerings, we're building analytic models to simulate the impact of global tariffs on their financial position over time and ripple effects that may arise. Despite this volatile environment, clients continue to advance their digital transformation imperatives, which have turned and advanced their competitive positions, drive operational efficiency, and leverage data to make better, faster decisions.

例如，利用我們的供應鏈產品，我們正在建立分析模型來模擬全球關稅對其財務狀況的長期影響以及可能的連鎖反應。儘管環境動盪，客戶仍在繼續推動其數位轉型，這已經轉變並提升了他們的競爭地位，提高了營運效率，並利用數據做出更好、更快的決策。

As I mentioned at our Investor Day in March, we believe we have a strong foundation to continue to grow this segment, building on the scale we've achieved to date and our digital capability while selectively adding advisory capabilities both organically and through programmatic M&A.

正如我在三月的投資者日上提到的那樣，我們相信，我們擁有強大的基礎來繼續發展這一領域，以我們迄今為止所取得的規模和數位能力為基礎，同時透過有機成長和程序化併購有選擇地增加諮詢能力。

And now let me turn to our outlook for the year. Today, we reaffirm our guidance for 2025, and that includes RBR, adjusted EBITDA margin and adjusted diluted earnings per share. Let me close by saying that we're confident in our refresh strategy and in our ability to deliver upon the financial goals outlined at our Investor Day last month.

現在讓我來談談我們對今年的展望。今天，我們重申對 2025 年的預期，其中包括 RBR、調整後的 EBITDA 利潤率和調整後的每股稀釋收益。最後，我想說，我們對我們的更新策略以及我們實現上個月投資者日所概述的財務目標的能力充滿信心。

We're encouraged by our performance in the first quarter as the pace a dynamic external environment. For markets that we serve continue to be under increased pressure and we believe we're well positioned to help clients navigate through their complex challenges, if industry expertise to branches our portfolio, our strong competitive positions and our highly talented team.

由於外部環境充滿活力，我們對第一季的業績感到鼓舞。對於我們所服務的市場，其壓力持續增加，我們相信，如果行業專業知識能夠擴展到我們的產品組合、強大的競爭地位和才華橫溢的團隊，我們就有能力幫助客戶克服複雜的挑戰。

And now let me turn it over to John for a more detailed discussion on a couple of financial goals. John?

現在，讓我將話題交給約翰，讓他更詳細地討論幾個財務目標。約翰？

Thank you, Mark, and good afternoon, everyone.

謝謝你，馬克，大家下午好。

Before I begin, please note that I will be discussing non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted net income, adjusted EPS and free cash flow. Our press release, 10-Q and Investor Relations page on the Huron's website have reconciliations of these non-GAAP measures to the most comparable GAAP measures, along with the discussion of why management uses these non-GAAP measures and why management believes they provide useful information to investors regarding our financial condition and operating results.

在我開始之前，請注意，我將討論非 GAAP 財務指標，例如 EBITDA、調整後的 EBITDA、調整後的淨收入、調整後的 EPS 和自由現金流。我們的新聞稿、10-Q 和 Huron 網站上的投資者關係頁面已將這些非 GAAP 指標與最可比的 GAAP 指標進行了對賬，並討論了管理層使用這些非 GAAP 指標的原因以及管理層為何認為它們能為投資者提供有關我們財務狀況和經營業績的有用信息。

Before discussing our financial results for the quarter, I would like to discuss several housekeeping items. First, our first-quarter results exclude the operating results from the Studer Education business, which was divested on December 31, 2024. Second, our first-quarter results do reflect a full quarter of operating results from the acquisition of AXIA Consulting, primarily in the Commercial segment, which closed effective December 1, 2024.

在討論本季的財務表現之前，我想討論幾個內部事項。首先，我們的第一季業績不包括 2024 年 12 月 31 日剝離的 Studer Education 業務的營運表現。其次，我們的第一季業績確實反映了收購 AXIA Consulting 後整個季度的營運業績，主要是商業部門，該收購於 2024 年 12 月 1 日生效。

And finally, our acquisitions of Advancement Resources and Halpin posed on March 1 and 17, respectively, and as such, a partial period of their operating results are included within the Education segment. The operating results of Advancement Resources and Halpin are not material to our first-quarter results.

最後，我們分別於 3 月 1 日和 17 日收購了 Advancement Resources 和 Halpin，因此，其部分期間的經營業績包含在教育部門中。Advancement Resources 和 Halpin 的經營業績對我們的第一季業績並不重要。

Now I will share some of the key financial results for the first quarter. RBR for the first quarter of 2025 was $395.7 million, up 11.2% from $356 million in the same quarter of 2024. The increase in RBR for the quarter was driven by strong growth across all three operating segments. Net income for the first quarter of 2025 increased 36.3% to $24.5 million. the $1.33 per diluted share compared to net income of $18 million or $0.95 per diluted share in the first quarter of 2024.

現在我將分享第一季的一些關鍵財務結果。2025 年第一季的 RBR 為 3.957 億美元，較 2024 年同期的 3.56 億美元成長 11.2%。本季 RBR 的成長得益於三個營運部門的強勁成長。2025 年第一季淨收入成長 36.3%，達到 2,450 萬美元。每股攤薄收益 1.33 美元，而 2024 年第一季的淨收入為 1800 萬美元或每股攤薄收益 0.95 美元。

As a result, as a percentage of total revenues, net income increased to 6.1% in the first quarter of 2025 compared to 5% in the first quarter of 2024. The increase in net income was driven by revenues that outpaced expenses and an increase in the discrete tax benefit for share-based compensation awards that vested during the quarter. As a result of this discrete tax benefit, our effective income tax rate in the first quarter of 2025 was negative 14.4% as we recognized an income tax benefit on our pretax income.

因此，作為總收入的百分比，淨收入在 2025 年第一季增長至 6.1%，而 2024 年第一季為 5%。淨收入的成長是由於收入超過支出以及本季度歸屬的股權激勵獎勵的單獨稅收優惠的增加。由於此單獨稅收優惠，我們 2025 年第一季的實際所得稅率為-14.4%，因為我們在稅前收入中確認了所得稅優惠。

Adjusted EBITDA was $41.5 million in Q1 2025 or 10.5% of RBR compared to $33.8 million or 9.5% of RBR in the first quarter of 2024. The increase in adjusted EBITDA for the quarter was primarily due to increases in segment operating income in our Healthcare and Education segment, excluding the impact of segment depreciation and amortization and segment restructuring charges, partially offset by a decrease in segment operating income in Commercial segment and increased unallocated corporate expenses to support the growth of our business.

2025 年第一季調整後 EBITDA 為 4,150 萬美元，佔 RBR 的 10.5%，而 2024 年第一季調整後 EBITDA 為 3,380 萬美元，佔 RBR 的 9.5%。本季度調整後 EBITDA 的成長主要由於我們醫療保健和教育部門的部門營業收入增加（不包括部門折舊和攤銷以及部門重組費用的影響），但商業部門的部門營業收入減少以及為支持業務增長而增加的未分配公司費用部分抵消了這一增長。

Adjusted net income was $31.1 million. or $1.68 per diluted share in Q1 2025 or $23.3 million or $1.23 per diluted share in the first quarter of 2024 and resulting in a 36.6% increase in adjusted diluted earnings per share over Q1 2024.

調整後的淨收入為3110萬美元。或 2025 年第一季每股攤薄收益 1.68 美元，或 2024 年第一季每股攤薄收益 2,330 萬美元或 1.23 美元，導致調整後每股攤薄收益較 2024 年第一季成長 36.6%。

Now I'll discuss the performance of each of our operating segments. Healthcare segment generated 50% of total company RBR during the first quarter of 2025. The segment posted RBR of $198.5 million, up $17.7 million or 9.8% from the first quarter of 2024. The first quarter of 2024 included $3.4 million of RBR from the Studer Education business, which was divested in the fourth quarter of 2024. Excluding the results for Studer Education, Healthcare segment Q1 revenues grew 12% over the first quarter of 2024. The increase in the segment's RBR in the quarter reflects continued strong demand for our performance improvement and financial advisory offerings.

現在我將討論我們各個營運部門的表現。2025 年第一季度，醫療保健部門創造了公司 RBR 總值的 50%。該部門的 RBR 為 1.985 億美元，比 2024 年第一季增加 1,770 萬美元，增幅為 9.8%。2024 年第一季度，Studer Education 業務的 RBR 收入為 340 萬美元，該業務於 2024 年第四季被剝離。不包括 Studer Education 的業績，醫療保健部門第一季的營收比 2024 年第一季成長了 12%。本季該部門 RBR 的成長反映了對我們的業績改善和財務諮詢服務的持續強勁需求。

Operating income margin for Healthcare was 28.4% in Q1 2025 and compared to 23.6% in Q1 2024. The increase in margin was primarily due to revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals decreases in contractor expenses, practice administration, and meeting expenses, salaries and related expenses for our support personnel. The Education segment generated 31% and total company RBR during the first quarter of 2025. The Education segment posted RBR $122.7 million, up $11.2 million from the first quarter of 2024.

2025 年第一季醫療保健業務的營業收入利潤率為 28.4%，而 2024 年第一季為 23.6%。利潤率的成長主要是由於收入成長超過了創收專業人員的工資和相關費用的成長，而承包商費用、實踐管理和會議費用、支援人員的工資和相關費用則減少了。2025 年第一季度，教育部門創造了 31% 的 RBR 收入，占公司總 RBR 收入的 20%。教育部門的 RBR 收入為 1.227 億美元，比 2024 年第一季增加 1,120 萬美元。

The increase in RBR in the quarter was driven by strong demand for our strategy and operations and advancement offerings, increased demand for our software product offerings within our digital capability. The inorganic RBR contributions from our acquisitions, including GG&A which closed on March 1, 2024, as well as AXIA Advancement Resources and Halpin of $3.9 million in the first quarter of 2025.

本季 RBR 的成長得益於對我們的策略和營運以及先進產品的強勁需求，以及對我們數位能力範圍內的軟體產品產品的需求增加。我們收購的無機 RBR 貢獻，包括 2024 年 3 月 1 日完成的 GG&A，以及 2025 年第一季 390 萬美元的 AXIA Advancement Resources 和 Halpin。

The operating income margin for Education was 18.8% for Q1 2025, compared to 19.7% for the same quarter in 2024. The decrease in operating income margin in the quarter was primarily driven by expenses related to a team-wide leadership meeting during the quarter. performance bonus expenses for our revenue-generating professionals, salaries and related expenses for our support personnel, and amortization of our internally developed software, all as percentages of RBR, partially offset by revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals.

2025 年第一季教育業務的營業收入利潤率為 18.8%，而 2024 年同期為 19.7%。本季營業收入利潤率的下降主要是由於本季全團隊領導會議的相關費用。我們創收專業人員的績效獎金費用、我們支援人員的薪資和相關費用以及我們內部開發軟體的攤銷，均佔 RBR 的百分比，但部分被收入成長所抵消，收入成長超過了我們創收專業人員的薪資和相關費用的成長。

Commercial segment generated 19% of total company RBR during the first quarter of 2025 and posted RBR of $74.5 million, up $10.8 million, 17% from the first quarter of 2024. The increase in RBR was driven by $11.2 million of incremental RBR from our acquisition of AXIA, which we closed in December of 2024. The strong demand for our digital offerings, partially offset by decreases in RBR from our strategy and innovation and financial advisory offerings.

2025 年第一季度，商業部門創造了公司 RBR 總值的 19%，RBR 為 7,450 萬美元，比 2024 年第一季增加 1,080 萬美元，增幅為 17%。RBR 的成長是由於我們收購 AXIA 帶來了 1,120 萬美元的增量 RBR，我們於 2024 年 12 月完成了收購。市場對我們的數位產品的需求強勁，但部分被我們策略和創新以及財務諮詢產品的 RBR 下降所抵消。

Operating income margin for the Commercial segment was 15.2% for Q1 2025 compared to 22.1% for the same quarter of 2024. The decrease in operating income margin reflects the mix of RBR during the quarter and was driven by increases in compensation costs for our revenue-generating professionals and support personnel and contractor expenses as percentages of RBR. We continue to expect full-year operating income margin in the range of 21% to 23% for the Commercial segment.

2025 年第一季商業部門的營業收入利潤率為 15.2%，而 2024 年同期為 22.1%。營業收入利潤率的下降反映了本季度 RBR 的組合，並且是由於我們的創收專業人員和支援人員的薪酬成本以及承包商費用佔 RBR 的百分比增加所致。我們繼續預期商業部門全年營業收入利潤率將在 21% 至 23% 之間。

Corporate expense is not allocated at the segment level, excluding corporate restructuring charges, were $52.4 million in Q1 2025 compared to $50.9 million in Q1 2024. Unallocated corporate expenses in the first quarter of 2025 included $900,000 of income related to the decrease in the liability of our deferred compensation plan, compared to expense of $2.4 million in the first quarter of 2024.

企業費用未在分部層級分配，不包括企業重組費用，2025 年第一季為 5,240 萬美元，而 2024 年第一季為 5,090 萬美元。2025 年第一季未分配的公司費用包括與遞延薪酬計畫負債減少相關的 90 萬美元收入，而 2024 年第一季的費用為 240 萬美元。

These amounts are offset by the change in market value of the investment assets used to fund the plan reflected in other income. Excluding the impact of the deferred compensation plan in both periods, unallocated corporate expenses increased $4.8 million in the first quarter of 2025, primarily driven by increases in compensation costs, for our support personnel, software and data hosting expenses, partially offset by a decrease in legal expenses.

這些金額被其他收入中反映的用於資助該計劃的投資資產的市場價值變化所抵消。不包括兩個期間遞延薪酬計劃的影響，2025 年第一季未分配的公司費用增加了 480 萬美元，這主要是由於我們的支援人員、軟體和資料託管費用的薪酬成本增加，但法律費用的減少部分抵消了這一增加。

Now turning to the balance sheet and cash flows. Cash flow used in operations in the first quarter of 2025 was $106.8 million, reflecting our annual incentive payments during the quarter. Cash flow used in operations during the first quarter of 2024 was $130.7 million. During the quarter, we used $8.5 million to invest in capital expenditures inclusive of internally developed software costs, resulting in negative free cash flow of $115.4 million. Continue to reflect full-year free cash flow to be in a range of positive $160 million to $190 million net of cash taxes and interest and excluding the noncash stock compensation.

現在轉向資產負債表和現金流量。2025 年第一季營運中使用的現金流為 1.068 億美元，反映了我們本季的年度獎勵支付。2024 年第一季營運所用現金流為 1.307 億美元。本季度，我們使用了 850 萬美元投資於包括內部開發軟體成本在內的資本支出，導致自由現金流為負 1.154 億美元。繼續反映全年自由現金流在扣除現金稅和利息且不包括非現金股票補償後，處於正 1.6 億美元至 1.9 億美元範圍內。

DSO came in at 79 days for the first quarter of 2025 and compared to 91 days for the first quarter of 2024. The decrease in DSO reflects the impact of collections on certain larger Healthcare and Education projects in alignment with their contractual payment schedules.

2025 年第一季的 DSO 為 79 天，而 2024 年第一季的 DSO 為 91 天。DSO 的減少反映了某​​些大型醫療保健和教育項目按照合約付款計劃收款的影響。

Total debt as of March 31, 2025, was $576.3 million, consisting entirely of our senior bank debt. We finished the quarter with cash of $23.4 million for net debt of $552.9 million. This was a $217.1 million increase in net debt compared to Q4 2024, primarily due to the payment of our annual cash bonuses and share repurchases during the quarter.

截至 2025 年 3 月 31 日，總債務為 5.763 億美元，全部由我們的優先銀行債務組成。本季結束時，我們的現金為 2,340 萬美元，淨債務為 5.529 億美元。與 2024 年第四季相比，淨債務增加了 2.171 億美元，主要原因是本季支付了年度現金獎金和股票回購。

In the quarter, we used $72.9 million repurchased approximately 509,000 shares, representing 2.9% of our common stock outstanding as of December 31, 2024. As of March 31, 2025, a $191.7 million remained available for share repurchases under the current share repurchase authorization from our Board of Directors.

本季度，我們花費 7,290 萬美元回購了約 509,000 股，佔截至 2024 年 12 月 31 日已發行普通股的 2.9%。截至 2025 年 3 月 31 日，根據董事會目前的股票回購授權，仍有 1.917 億美元可用於股票回購。

Our leverage ratio as defined in our senior bank agreement, was 2.2x adjusted EBITDA as of March 31, 2025, compared to 2.7x adjusted EBITDA as of March 31, 2024. As a reminder, our first quarter typically represents a seasonal high leverage ratio given the payout of our annual bonuses in market.

根據我們的高級銀行協議定義，截至 2025 年 3 月 31 日，我們的槓桿率為調整後 EBITDA 的 2.2 倍，而截至 2024 年 3 月 31 日，我們的槓桿率為 2.7 倍調整後 EBITDA。提醒一下，考慮到我們在市場上發放的年度獎金，我們的第一季通常代表季節性的高槓桿率。

Finally, let me turn to our guidance for full-year 2025. Mark mentioned, today, we reaffirm our annual RBR, margin, and adjusted EPS guidance, which includes RBR in the range of $1.58 billion to $1.66 billion. adjusted EBITDA in a range of 14% to 14.5% for RBR and adjusted non-GAAP EPS in a range of $6.80 to $7.60.

最後，讓我談談我們對 2025 年全年的指導。馬克提到，今天，我們重申我們的年度 RBR、利潤率和調整後的 EPS 指引，其中包括 15.8 億美元至 16.6 億美元的 RBR。 RBR 調整後的 EBITDA 範圍為 14% 至 14.5%，調整後的非 GAAP EPS 範圍為 6.80 美元至 7.60 美元。

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

謝謝大家。現在我想開始提問。操作員。

[Operator Instructions]

[操作員說明]

Andrew Nicholas, William Blair & Company.

安德魯·尼古拉斯，威廉·布萊爾公司。

Thanks, and good afternoon. I wanted to ask first about the Commercial segment outlook. Obviously, it feels like quite a bit has happened since the March Investor Day. Could you speak a little bit more specifically to the pipeline for that business, whether or not you're seeing any kind of pockets of indecision or pullback on discretionary projects? And maybe relatedly, if you have any changes to the segment out level growth expectations for that business?

謝謝，下午好。我想先詢問一下商業領域的前景。顯然，自三月投資者日以來似乎發生了很多事情。您能否更具體地談談該業務的管道，是否看到任何猶豫不決或自由裁量項目撤退的情況？或許與此相關的是，您是否對該業務的細分水準成長預期有任何變化？

Yes, Andrew, it's John. I'll start. No changes to our guidance at the segment level. Actually, if you look at the first quarter, we had record levels of sales conversion during the first quarter in our Commercial segment, and that was primarily driven by the digital business. So if you look at the results for the first quarter, you've got the inorganic contribution from AXIA that we talked about. Our Commercial digital business, as Mark referenced, was up 12% during the quarter, which I think corresponds to that pipeline and backlog strength.

是的，安德魯，我是約翰。我先開始。我們對分部層級的指導沒有改變。實際上，如果你看一下第一季度，我們商業部門的銷售轉換率在第一季創下了歷史新高，這主要得益於數位業務的推動。因此，如果您查看第一季的業績，您將看到我們談到的 AXIA 的無機貢獻。正如馬克所提到的，我們的商業數位業務在本季度成長了 12%，我認為這與通路和積壓訂單的強勁成長相符。

On the consulting side, that's where we did see negative growth during the quarter. I put that into a couple of buckets. I think on the strategy part, I think that is an area where you do see some impact from the current macro environment, and there is just a lot of disruption there. And I'd say strategy within Commercial is an area that we've got a little bit of caution on as we continue to look at as the year goes on.

在諮詢方面，我們在本季確實看到了負成長。我把它放進幾個桶子裡。我認為在策略方面，你確實會看到當前宏觀環境的一些影響，而且那裡存在著許多混亂。我想說，隨著時間的推移，商業策略是我們繼續保持謹慎的領域。

I think in terms of the financial advisory part of the business, it's really a case that, that team was very busy during the quarter, but it happened to be that a lot of the work came in the Healthcare segment for some of our clients that are going through distress within Healthcare.

我認為，就業務的財務諮詢部分而言，該團隊在本季度確實非常忙碌，但碰巧的是，很多工作都來自醫療保健領域，我們的一些客戶在醫療保健領域正經歷困境。

As we turn the corner into April, a lot of the inquiries that we're seeing now are more weighted back towards the Commercial segment. So I think that we'll see increased demand there from a financial advisory in the Commercial segment during the second quarter, a little bit of a watch item on the strategic part of the business, which even there for that team,

隨著我們進入四月，我們現在看到的許多詢問更多地集中在商業領域。因此，我認為，第二季度，商業部門對財務諮詢的需求將會增加，這是業務策略部分的一個值得關注的項目，即使對於該團隊來說，

I know they were also very busy in the Healthcare part of the business during the quarter. It was just on the Commercial side, that was a little bit softer. And then we feel really good about the way things are shaping up from a digital perspective.

我知道他們本季在醫療保健業務方面也非常忙碌。只是在商業方面，情況稍微好一點。從數位角度來看，我們對事情的發展感到非常滿意。

Andrew, the only additional comment I'll make is just that I think with the balance between Pro and countercyclical offerings in that segment, it gives us a higher degree of confidence that the outlook for the year is intact, and we'll be in fine shape. We certainly have a lot of quarters ahead of us to get through, but we feel good about the year.

安德魯，我唯一要補充的是，我認為，憑藉該領域專業產品和逆週期產品之間的平衡，我們更有信心相信今年的前景是完好的，而且我們的狀況會很好。當然，我們還有許多季度需要度過，但我們對今年感到很滿意。

Great. That's helpful and encouraging. I guess for my follow-up, I just wanted to ask specifically on head count growth. I think sequentially, it was relatively flat if I take out some of the inorganic adds. And I'm looking just at the revenue-generating professionals, not the managed services employees.

偉大的。這很有幫助，也很令人鼓舞。我想，對於我的後續問題，我只是想具體詢問員工人數的成長。我認為，如果我去掉一些無機添加劑，那麼從順序上看，它會相對穩定。我只專注於創造收入的專業人士，而不是託管服務員工。

So can you just maybe speak to that and how you're thinking about head count growth in this current market environment? Where are you prioritizing new head count growth? And is the expectation for that to resemble head count -- or excuse me, revenue growth still?

那麼，您能否談談這個問題以及您如何看待當前市場環境下的員工數量成長？您優先考慮哪些方面的新員工成長？並且預期這是否與員工人數——或者對不起，收入增長——類似？

Yes, Andrew, it's John. I can start. When we look out at the full year, we still expect head count growth to largely -- and again, similar to you, I'm answering excluding managed services headcount. But excluding that population, we expect head count to largely flux with revenue as the year goes on. I think what you saw in the first quarter was just some really good execution by our teams in terms of utilization.

是的，安德魯，我是約翰。我可以開始了。當我們展望全年時，我們仍然預計員工人數將大幅增長 - 而且，與您類似，我的回答不包括託管服務員工人數。但除去這部分人口，我們預計隨著時間的推移，員工總數將隨收入大幅變動。我認為您在第一季看到的只是我們的團隊在利用率方面的一些非常好的執行。

You probably noticed that utilization for both our consulting capabilities as well as our digital capability was up roughly 400 basis points in each of those areas in the first quarter of this year versus last year. So I think the team did a really good job of using the talent that we have to execute on the revenue that we had during the first quarter. But as we continue to grow throughout the year, we're certainly going to need to be hiring and adding more talent.

您可能已經注意到，今年第一季度，我們的諮詢能力和數位能力的使用率與去年相比分別上升了約 400 個基點。因此，我認為團隊在利用我們的人才來實現第一季的收入方面做得非常好。但隨著我們全年的持續成長，我們肯定需要招募和增加更多的人才。

I'd say in particular, within our Healthcare business, that's an area where we just continue to see strong demand from a pipeline perspective, strong sales conversion, and that's an area where I think you'll see it continue to add head count to support the growth we're expecting as the year goes on.

我想特別指出的是，在我們的醫療保健業務中，從通路角度來看，我們繼續看到強勁的需求和強勁的銷售轉換率，而且我認為，您會看到我們繼續增加員工數量，以支持我們預期的今年的成長。

Very helpful. Thanks again.

非常有幫助。再次感謝。

Tobey Sommer, Truist Securities.

托比·索默（Tobey Sommer），Truist Securities。

Thank you. Good afternoon. How would you characterize the new business in billings, in Education and Healthcare broadly during April. Any kind of change versus the first-quarter trend?

謝謝。午安.您如何概括描述四月份帳單、教育和醫療保健領域的新業務？與第一季的趨勢相比有什麼變化嗎？

No, nothing notable that I would point to generally. In fact, if you look at our -- I know you're asking about even as we progressed into the second quarter here. But if you look at our first-quarter sales conversion, it was up meaningfully from where it was a year ago. So that was a good indicator. A lot of that pipeline conversion came through in February and March and there was significant growth in terms of conversions during those couple of months as well.

不，我通常不會指出什麼值得注意的事。事實上，如果你看看我們的——我知道你問的是，即使我們已經進入第二季。但如果你看看我們第一季的銷售轉換率，你會發現它比一年前有了顯著的成長。所以這是一個很好的指標。許多管道轉換發生在二月和三月，而且在這幾個月轉換量也有了顯著的成長。

So in no change that I'd point to in April. It's just -- we're not even all the way through that month yes -- getting we're not quite there.

因此，我認為四月不會有任何變化。只是——是的，我們甚至還沒有度過那個月——我們還沒有完全到達那裡。

Maybe only the one thing I'd add is we -- I was going to say and on the flip side, we haven't seen cancellations, the things that we've already sold, so they continue to progress. So I think it's pretty much a fairly normal environment for us from what we would typically see [abs] and all the disruptions going on.

也許我只想補充一點，我想說的是，另一方面，我們還沒有看到取消訂單的情況，我們已經售出的東西還在繼續銷售。因此，從我們通常看到的 [abs] 和發生的所有中斷來看，我認為這對我們來說是一個相當正常的環境。

Great. And that kind of goes to where back follow-up was going to be in terms of zooming in a bit. So in that select group of private universities that are most impacted by policy changes. Anything you've seen in your in your business there with them in projects. And I understand you may have pre-emptively answered part of that already?

偉大的。這就涉及到後面的後續跟進，也就是稍微放大一點。因此，這些私立大學受政策變化的影響最大。您在業務中看到的任何內容都可以在專案中找到。我知道您可能已經預先回答了其中的一部分問題？

No. Really, we continue to work with them, many of these go back from the founding of the company in terms of just the length of time of the relationships. And so we've been a trusted adviser for them in various situations that have come along. The nature of the work might shift a little bit. But again, it really has not had to, from our perspective and kind of dramatic effect as a result of the headlines that have been out there.

不。確實，我們一直在與他們合作，從合作關係的時間長度來看，許多合作可以追溯到公司成立之初。因此，在遇到的各種情況下，我們一直是他們值得信賴的顧問。工作的性質可能會發生一些變化。但從我們的角度來看，從新聞頭條來看，這確實沒有必要，也沒有產生任何戲劇性的效果。

Thank you. How has assessment activity trended in for performance improvement projects? And is there any shift that you could share with us in terms of customers' propensity to include performance fees?

謝謝。績效改善項目的評估活動趨勢如何？就客戶收取績效費用的傾向而言，您能與我們分享有什麼改變嗎？

I would say, Tobey, it continues to be a robust environment in terms of assessment activity. I think that's characterized by some of the trend lines that we saw coming into the year where many of our clients are going through financial strain related to constrained revenue at the same time, the costs have continued to escalate. So I think that's still been a theme.

我想說，托比，就評估活動而言，這仍然是一個強勁的環境。我認為這是我們今年看到的一些趨勢線的特徵，我們的許多客戶都面臨著與收入受限相關的財務壓力，同時成本也持續上升。所以我認為這仍然是一個主題。

And then I think some of the recent regulatory changes or the evolving department, there has cost some clients to continue to be concerned about revenue constraints and funding sources, which then is oftentimes something that causes clients to look at performance improvement-type projects as a way to address potential budgetary gaps in that sort of environment. So the pipeline and the assessments we see it continue to be busy in that area. In terms of contingent-based fees versus [royalty], I would say no. I don't think we've seen any real shift in terms of mix in that regard.

然後我認為最近的一些監管變化或部門的發展，讓一些客戶繼續擔心收入限制和資金來源，這往往導致客戶將績效改進型專案視為解決此類環境下潛在預算缺口的一種方式。因此，我們看到該地區的管道和評估仍然很繁忙。就基於風險的費用與[特許權使用費]而言，我的答案是否定的。我認為我們還沒有看到這方面的任何真正的轉變。

Okay. And then I just wanted to ask one more question on project size in duration. If you zoom out here and you think about what you're seeing in the business, what you have in your backlog already. Do you think the size and duration of your projects is changing at all? And if so, in which direction?

好的。然後我只想再問一個關於專案持續時間的問題。如果你從這裡縮小範圍，思考一下你在業務中看到了什麼，你已經積壓了什麼。您認為您的專案的規模和持續時間有變化嗎？如果是的話，朝哪個方向？

Over time, Tobey, when I say that through last year into the early part of this year, I think we are seeing the average job size increase. I think that's reflective of some of the challenges that our clients have been facing. And I think that's really across industries, too, in terms of just scope and complexity.

托比，當我說從去年到今年年初，隨著時間的推移，我認為我們看到平均工作規模正在增加。我認為這反映了我們的客戶所面臨的一些挑戰。我認為就範圍和複雜性而言，這確實也適用於各個行業。

The other big thing there, too, is with the change in our operating model, the number of projects where we're bringing in different capabilities, whether that's bringing in our digital capability or strategy capability or financial advisory capability, I think that adds to project size as well. So that's been a trend that's been increasing for us.

另一件大事是，隨著我們營運模式的變化，我們引入不同能力的項目數量也在增加，無論是引入我們的數位能力、策略能力還是財務諮詢能力，我認為這也會增加專案規模。所以這對我們來說是一個不斷成長的趨勢。

Thanks very much. I'll get back in the queue.

非常感謝。我會回到隊列中。

(Operator Instructions) Seeing no more questions in the queue. I'd like to turn the call back to Mr. Hussey. Sir?

（操作員指示）隊列中沒有其他問題。我想把電話轉回給哈西先生。先生？

Thank you very much for spending time with us this afternoon. We look forward to speaking with you again in July when we announce our second quarter results. Have a good evening.

非常感謝您今天下午抽出時間與我們在一起。我們期待在 7 月公佈第二季業績時再次與您交談。祝您晚上愉快。

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

今天的電話會議到此結束。謝謝大家的參與。