Hill International Announces Restatement Associated with Accounting for Foreign Currency Translation Adjustments and Related ...
September 21 2017 - 6:50AM
Hill International (NYSE:HIL), the global leader in managing
construction risk, today announced that the Board of Directors of
the Company has determined that the Company will restate the
Company’s previously issued financial statements for each of the
years ended December 31, 2016, 2015 and 2014 and the quarters ended
March 31, June 30, and September 30 in 2015 and 2016 included in
the Company’s Annual Reports on Form 10-K and Quarterly Report on
Form 10-Q for such periods and together with all three, six- and
nine- month financial information contained therein and the
Quarterly Report on Form 10-Q for the quarter ended March 31,
2017. The decision to restate follows a determination that
the Company’s previous accounting treatment of foreign currency
translation adjustments related to intercompany balances (“Foreign
Currency Adjustments”) was not appropriate. As a result, all
prior communications issued by the company as well as other prior
statements made by or on behalf of the company relating to the
periods under review for restatement (collectively, the
“Non-Reliance Periods”) should not be relied upon. The
Company intends to file the restated annual and quarterly financial
statements for the Non-Reliance Periods (the “Restated Filings”) as
soon as practicable.
The Board’s decision to restate these financial
statements is in connection with the Company’s on-going review of
the accounting for the sale of the Company’s Construction Claims
Group and other comprehensive income (loss), including the Foreign
Currency Adjustments. The Company, with the assistance of outside
financial consultants, is in the process of evaluating its
historical and current practices with respect to accounting for
Foreign Currency Adjustments in accordance with accounting
principles generally accepted in the United States. In connection
with this evaluation, the Company has determined that its previous
accounting treatment for certain Foreign Currency Adjustments
during the Non-Reliance Periods was not appropriate.
Although the Company continues its assessment of
adjustments that may be required, the Company currently expects
that these adjustments will result in aggregate (1) increases in
selling, general & administrative expenses; (2) decreases in
operating profit; (3) decreases in accumulative other comprehensive
loss; and (4) decreases in retained earnings. The preliminary
overall net Foreign Currency Adjustment to previously reported
results is expected to range between $25 million and $35 million
across the Non-Reliance Periods. The Foreign Currency
Adjustments result in pre-tax, non-cash financial statement
corrections but are not currently expected to result in any
significant change to stockholders’ equity.
The amounts above are unaudited estimates and
are subject to change, possibly materially. Additional
information and disclosures associated with this restatement are
contained in a Form 8-K to be filed today by the Company with
the SEC, a copy of which will be available, free of charge, at
www.sec.gov.
About Hill International
Hill International, with 3,300 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.
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 projections of
revenues, earnings, profit improvement, cost savings or other
financial items; any statements concerning our plans, strategies
and objectives for future operations; and any statements regarding
future economic conditions or performance, 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, as well as the review
of the Company’s accounting, accounting policies and internal
control over financial reporting; the preparation of and the audit
or review, as applicable, of Restated Filings; and the subsequent
discovery of additional adjustments to the Company’s previously
issued financial statements. We do not intend, and undertake no
obligation, to update any forward-looking statement.
Hill International, Inc. John Fanelli III
Executive Vice President and Chief Financial Officer (215) 309-7906
johnfanelli@hillintl.com
The Equity Group Inc. Devin Sullivan Senior
Vice President (212) 836-9608 dsullivan@equityny.com