Hill International, Inc. (NYSE:HIL) ("Hill" or the "Company"),
the global leader in managing construction risk, announced today
that it filed its Quarterly Report on Form 10-Q for the second
quarter ended June 30, 2019. This release will be followed by
a conference call on August 8, 2019 at 8:30 am EDT with Hill
International Chief Executive Officer Raouf Ghali and Senior Vice
President and Chief Financial Officer Todd Weintraub.
Mr. Ghali commented, “The Company’s turnaround
continued during the second quarter of 2019, with returning
profitability, steadily growing bookings, and a strong book-to-burn
ratio. Given the many opportunities we are currently pursuing, and
our continued focus on controlling costs, I expect increased
results for the third quarter and beyond. I look forward to
providing further details of our performance during our call.”
Second Quarter Financial Results
Note that the Company believes a comparison of
2019 results to the comparable 2018 period is not meaningful due to
the high level of non-recurring items throughout 2018. The Company
believes a more meaningful comparison is a sequential comparison to
the immediately preceding quarter to demonstrate the Company’s
progress relative to its plan.
Hill's consulting fee revenue ("CFR") was $77.0
million for the quarter ended June 30, 2019 compared to $79.0
million for the quarter ended March 31, 2019. Total revenue for the
quarter ended June 30, 2019 was $98.3 million, compared to
$98.7 million for the quarter ended March 31, 2019.
The Company’s operating profit for the quarter
ended June 30, 2019 improved to $4.6 million compared to $0.5
million during the first quarter of 2019. Net income for the
quarter ended June 30, 2019 was $1.6 million, or $0.03 per diluted
share, compared to a net loss of $2.1 million, or $0.04 per diluted
share, for the quarter ended March 31, 2019.
Mr. Weintraub added, “I’m thrilled that we are
now completely done with restructuring and restatement costs and
have lowered our cost base by 25%. We had positive net income for
the first time since mid-2016. We expect to show improved
performance in future quarters as new bookings translate into
higher CFR and we keep our costs inline.”
Selling, general, and administrative
("SG&A") expenses decreased to $27.4 million in the quarter
ended June 30, 2019 from $31.3 million in the quarter ended March
31, 2019. SG&A included expenses related primarily to the
Company’s implementation costs associated with the previously
disclosed Profit Improvement Plan (“PIP”). The PIP was completed
during 2018 with some costs related to the PIP recognized in the
first two quarters of 2019. All PIP-related costs were finalized in
the quarter ended June 30, 2019 and resulted in a reversal of
over-accrued PIP-related costs. SG&A expenses were also
impacted by non-cash stock compensation and unrealized foreign
exchange movements in both quarters.
Adjusted EBITDA (as defined below), which
excludes the effects of the SG&A items specified above,
improved to $4.9 million for the second quarter of 2019, compared
to $2.4 million for the first quarter of 2019 (see EBITDA and
adjusted EBITDA table below).
EBITDA
Earnings before interest, taxes, depreciation
and amortization ("EBITDA") from continuing operations is not a
measure of financial performance under generally accepted
accounting principles ("GAAP"). EBITDA, in addition to
operating profit, net income, and other GAAP measures, is a useful
indicator of Hill's financial and operating performance and its
ability to generate cash flow from operations that are available
for taxes and capital expenditures. Investors should recognize
that EBITDA might not be comparable to similarly-titled measures of
other companies. This measure should be considered in addition
to, and not as a substitute for or superior to, any measure of
performance prepared in accordance with GAAP.
Adjusted EBITDA
EBITDA, adjusted for unrealized foreign currency
translation losses (benefit) and non-recurring activity such as
costs incurred with the PIP and other one-time costs (“Adjusted
EBITDA”), is not a measure of financial performance under GAAP.
The following table includes a reconciliation of
EBITDA and Adjusted EBITDA to the most directly comparable GAAP
measure:
|
|
Three Months Ended June 30, 2019 |
|
Three Months Ended March 31, 2019 |
(in thousands) |
|
|
|
|
Net earnings (loss) from
continuing operations |
|
1,700 |
|
|
(2,068 |
) |
Less: net earnings -
noncontrolling interests |
|
83 |
|
|
67 |
|
Net earnings (loss) attributable to Hill
International, Inc. |
|
$ |
1,617 |
|
|
$ |
(2,135 |
) |
|
|
|
|
|
Interest and related financing
fees, net |
|
1,411 |
|
|
1,512 |
|
Income tax expense |
|
1,493 |
|
|
1,095 |
|
Depreciation and amortization
expense |
|
794 |
|
|
791 |
|
EBITDA |
|
$ |
5,315 |
|
|
$ |
1,263 |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
Profit Improvement Plan and Other
One-Time Costs |
|
(1,072 |
) |
|
1,218 |
|
Stock Compensation |
|
801 |
|
|
241 |
|
Unrealized foreign currency
translation benefit |
|
(147 |
) |
|
(352 |
) |
Adjusted
EBITDA |
|
$ |
4,897 |
|
|
$ |
2,370 |
|
|
|
|
|
|
|
|
|
|
Conference Call
Mr. Ghali, and Mr. Weintraub will host a
conference call on Thursday, August 8, 2019, at 8:30 am Eastern
Daylight Time to discuss the results.
Interested parties may participate in the call
by dialing (877) 511-3236 (Domestic) or (786) 815-8670
(International) approximately 10 minutes before the call is
scheduled to begin and asking to be connected to the Hill
International Conference Call. To listen to the live call online,
please go to the “Investor Relations” section of Hill’s website at
www.hillintl.com and click on “Financial Information,” and then
“Conferences and Calls.” Please go to the website at least 15
minutes early to register, download, and install any necessary
audio software. If you are unable to participate in the live call,
the conference call will be archived on Hill’s website and
accessible for approximately 90 days.
About Hill International
Hill International, with approximately 2,700
professionals in more than 50 offices worldwide, provides program
management, project management, construction management, and other
consulting services to clients in a variety of market sectors.
Engineering News-Record magazine recently ranked Hill as the
eighth-largest construction management firm in the United States.
For more information on Hill, please visit our website at
www.hillintl.com.
Forward Looking Statements
Certain statements contained herein may be
considered "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, and it is our
intent that any such statements be protected by the safe harbor
created thereby. Except for historical information, the matters set
forth herein including, but not limited to, any statements of
belief or intent, any statements concerning our plans, strategies,
and objectives for future operations are forward-looking
statements. These forward-looking statements are based on our
current expectations, estimates and assumptions and are subject to
certain risks and uncertainties. Although we believe that the
expectations, estimates, and assumptions reflected in our
forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Important factors that could cause our
actual results to differ materially from estimates or projections
contained in our forward-looking statements are set forth in the
Risk Factors section and elsewhere in the reports we have filed
with the Securities and Exchange Commission, including that
unfavorable global economic conditions may adversely impact our
business, our backlog may not be fully realized as revenue, and our
expenses may be higher than anticipated. We do not intend, and
undertake no obligation, to update any forward-looking
statement.
Hill International, Inc.Elizabeth J. Zipf, LEED
AP BD+CSenior Vice President, Global Marketing and
CommunicationsHill International, Inc.One Commerce Square2005
Market Street, 17th FloorPhiladelphia, PA 19103Tel:
215-309-7707elizabethzipf@hillintl.com
Hill International, Inc.Todd WeintraubSenior
Vice President and Chief Financial Officer(215)
309-7951toddweintraub@hillintl.com
(HIL-G)
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