Huron Consulting Group Inc. (NASDAQ:HURN) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 05:00 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Huron Consulting Group's webcast to discuss financial results for the second quarter 2020. [Operator Instructions] As a reminder, this conference call is being recorded.
Before we begin, I would like to point all of you to the disclosure at the end of the company's news release for information about any forward-looking statements that may be made or discussed on this call. The news release is posted on Huron's website. Please review that information along with the filings with the SEC for a disclosure of factors that may impact subjects discussed in this afternoon's webcast.
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 reconciliation to the most comparable GAAP numbers.
And now I'd like to turn the call over to Jim Roth, Chief Executive Officer of Huron Consulting Group. Mr. Roth, please go ahead.
James H. Roth
Good afternoon, and welcome to Huron Consulting Group's Second Quarter 2020 Earnings Call. With me today is John Kelly, our Chief Financial Officer; and Mark Hussey, our President and Chief Operating Officer.
Our second quarter results were better than we anticipated, with revenue declining 1% over the prior year quarter. This decline was driven by weakness in the Healthcare business that was partially offset by solid growth in the Business Advisory and Education segments. While the second quarter was better than our initial estimates, we remain cautious about the second half of the year given the economic uncertainties facing our clients, particularly in Healthcare and Education. I will now share additional insight into our second quarter performance and the demand drivers for each of our businesses and then provide some color on our expectations for the remainder of 2020.
During the second quarter, Healthcare segment revenues declined 16% compared to the prior year quarter. As you've read, most hospitals and health systems were severely impacted in March and April, with virtually no elective or nonurgent surgeries being performed when the crisis was at its worse. Many of our clients began to see patient volumes return in May and June, although most have not yet seen a return to pre-COVID volumes.
With some stability in their business, our health care clients began to reengage our team in the latter part of the second quarter to support them on more immediate priorities as they work through the financial and operational challenges that were exacerbated by the current environment. Indicative of the market improvement, utilization of the Healthcare business started in the mid-60s earlier in the quarter and rose to the low-70s by the end of the quarter, although still well below historical levels. While the slowdown during the quarter impacted all aspects of our health care business, there were several areas where we were able to enhance revenue because of the ongoing crisis.
The most notable was our work with Medically Home, in which we made a strategic