Hill International, Inc. (NYSE:HIL) ("Hill" or the
"Company"), delivering the infrastructure of change,
announced today its financial results for the third quarter ended
September 30, 2021 (“Q3 2021”).
“We reported strong results for the 2021 third
quarter, highlighted by increased CFR and gross profit, strong new
bookings, and a return to profitability," said Raouf Ghali, Hill's
Chief Executive Officer. "Adjusted operating profit, Adjusted
EBITDA, and Adjusted net income rose by 34%, 33%, and 60%,
respectively, from last year's third quarter. New contract awards
in the 2021 third quarter were $92.6 million, resulting in a book
to burn ratio of 120%. New awards for the first nine months of 2021
were $274.5 million, resulting in a book to burn ratio of 121%.
"Hill's success is defined by strong project
execution and a reputation for excellence. We have been engaged to
support some of the world's most meaningful and challenging
infrastructure projects, with wins during the third quarter
including the Metro Gold Line Foothill Extension in southern
California, a contract with Kosovo Railways JSC (INFRAKOS) for
Phase 2 of the rehabilitation and upgrade of Rail Route 10, the
ongoing Capital Program at Philadelphia International Airport and
the Miami-Dade County Aviation Department’s $5 billion Capital
Improvement Program. Additionally, bookings during the fourth
quarter have been strong, totaling $71 million through November 1,
including a five-year contract with Southern California
Edison."
"Our Adjusted EBITDA increased to $6.4 million,
our unrestricted cash position at September 30, 2021 rose by $5.3
million from June 30, 2021, and we generated positive free cash
flow," said Todd Weintraub, Hill's Chief Financial Officer. "Total
liquidity at September 30, 2021 was $38.6 million, a $10.3 million
improvement from June 30, 2021. For the fourth quarter of 2021, we
expect to report higher CFR when compared to Q3 2021 and expect to
continue generating positive cash flow.”
Q3 2021 Financial Results Overview
Hill's consulting fee revenue ("CFR") rose to
$77.1 million in Q3 2021, from $71.5 million in the third quarter
of 2020 ("Q3 2020") as activity continues to return to pre-COVID
levels.
Gross profit in Q3 2021 increased by $3.8
million to $32.4 million, or 42.1% of CFR, from $28.7 million, or
40.1% of CFR, in Q3 2020, driven by higher CFR and improved
contract profit margins.
Selling, general, and administrative
("SG&A") expenses in Q3 2021 were $28.1 million, compared to
$25.6 million in Q3 2020. This included non-recurring and non-cash
expenses of $1.8 million and $1.1 million in Q3 2021 and 2020,
respectively. Excluding these non-recurring and non-cash expenses,
SG&A expenses in Q3 2021 were $26.3 million, or 81.2% of gross
profit, compared to $24.5 million, or 85.4% of gross profit in Q3
2020. This decline in SG&A as a percentage of gross profit
reflected continuing management of expenses to ensure costs grow
more slowly than gross profits, resulting in creating operating
leverage.
Operating profit for Q3 2021 was $4.3 million
compared to operating profit of $4.7 million in Q3 2020, as
improved gross profit from higher CFR was offset by an increase in
foreign currency exchange losses when compared to Q3 2020 and
higher SG&A as discussed above. Adjusted operating income, a
non-GAAP measure (see definition and reconciliation in the table
below) was $5.9 million in Q3 2021, compared to $4.4 million in Q3
2020.
Net income attributable to Hill in Q3 2021 was
$1.3 million, or $0.02 per diluted share, compared to net income
attributable to Hill of $2.1 million, or $0.04 per diluted share,
in Q3 2020. This decline was due primarily to increased gross
profit in Q3 2021, compared to Q3 2020 being more than offset by
the negative impact of unrealized foreign exchange of $1.1 million
and non-recurring and non-cash items of $0.7 million in Q3
2021 compared to Q3 2020. Adjusted net income, a non-GAAP measure
(see definition and reconciliation in the table below) which
excludes the impact of these items, was $2.8 million in Q3 2021,
compared to adjusted net income of $1.8 million in Q3 2020.
Adjusted EBITDA, a non-GAAP measure (see
definition and reconciliation in the table below) was $6.4 million
in Q3 2021, compared to adjusted EBITDA of $4.8 million in Q3 2020.
Improved gross profit from higher CFR was partially offset by an
increase in labor costs as business activity returns to normal
levels, the reinstatement of the Company 401(k) match and the
partial resumption of business travel.
Financial Condition and
Backlog
Net cash provided by operating activities in Q3
2021 was $6.2 million compared to net cash provided by operating
activities of $7.8 million in Q3 2020. Free cash flow, a non-GAAP
measure (see definition below) for Q3 2021 was $6.1 million, which
represents net cash provided by operating activities, less $0.1
million in purchases of property and equipment during the quarter.
Free cash flow during Q3 2020 was $7.7 million, which represents
net cash provided by operating activities, less $0.1 million in
property and equipment purchased during the quarter.
Unrestricted cash at September 30, 2021 was
$26.3 million compared to unrestricted cash of $21.0 million at
June 30, 2021 and $34.2 million at December 31, 2020, due
primarily to seasonality and the timing of certain collections. The
Company had approximately $12.3 million in available and undrawn
credit facilities at September 30, 2021, compared to $7.3
million at June 30, 2021 and $11.7 million at December 31,
2020. The Company's total liquidity was $38.6 million at
September 30, 2021, compared to $28.3 million at June 30,
2021 and $45.9 million at December 31, 2020.
Backlog (which is a non-GAAP measure; see
definition below) was $660.7 million at September 30, 2021,
compared to $666.7 million at December 31, 2020, primarily due to
new bookings throughout the year, offset by CFR burn and
reductions.
2021 Financial Guidance
Hill is updating its CFR guidance for 2021.
CFR for 2021 is expected to range between $305 -
$315 million, representing an increase of 3% - 6% from 2020. This
compared to previous guidance of $320 - $330 million. The revised
CFR guidance primarily reflects COVID-19-driven project deferrals
in the Middle East and, to a lesser extent, domestic project
deferrals. Hill expects that these deferred projects will commence
in 2022.
Adjusted EBITDA (a non-GAAP measure) for 2021 is
expected to be at the lower end of the previous guidance of $20 -
$22 million.
Non-GAAP Measures
The following measures below are not measures of
financial performance under U.S. generally accepted accounting
principles ("GAAP") and should be considered in addition to and not
as a substitute for, or superior to, the related measure of
performance prepared in accordance with GAAP.
Backlog
Backlog represents the Company's estimate of the
amount of uncompleted projects under contract and awards in-hand
that are expected to be recognized as CFR in future periods as a
component of total revenue. Hill's backlog is based upon the
binding nature of the underlying contract, commitment or letter of
intent, and other factors, including the economic, financial and
regulatory viability of the project and the likelihood of the
contract being extended, renewed or canceled. Although backlog
reflects business that the Company considers to be firm,
cancellations or scope adjustments may occur. It is an important
indicator of future performance and is used by the Company in
planning Hill's operational needs. Backlog is not a measure defined
in GAAP and the Company's methodology for determining backlog may
not be comparable to the methodology used by other companies in
determining their backlog.
Adjusted Operating Profit
(Loss)
Adjusted operating profit (loss) is operating
profit (loss), adjusted to exclude non-recurring items and non-cash
items including unrealized foreign currency exchange losses
(gains), share-based compensation and the write-off of leasehold
improvements previously included in property and equipment on the
Company's consolidated balance sheets. The Company believes that
adjusted operating profit (loss) is useful to investors and other
external users of Hill's financial statements as a measure of a
company's core ongoing operations, without regard to generally
non-recurring items and non-cash activity.
Adjusted Net Income (Loss) Attributable
to Hill
Adjusted net income (loss) attributable to Hill
is net income (loss) attributable to Hill, adjusted to exclude
non-recurring and non-cash items including unrealized foreign
currency exchange losses (gains), share-based compensation and the
write-off of leasehold improvements previously included in property
and equipment on the Company's consolidated balance sheets. The
Company believes that adjusted net income (loss) attributable to
Hill is useful to investors and other external users of Hill's
financial statements as a measure of a company's operating
performance, without regard to generally non-recurring items and
non-cash activity.
EBITDA and Adjusted EBITDA
Earnings before interest, taxes, depreciation
and amortization ("EBITDA"), in addition to operating profit, net
income, and other GAAP measures, is a useful indicator of Hill's
financial and operating performance. Investors should
recognize that EBITDA might not be comparable to similarly titled
measures of other companies. The Company believes that EBITDA
is useful to investors and other external users of Hill's financial
statements in evaluating its operating performance because EBITDA
is widely used by investors to measure a company’s operating
performance without regard to items such as interest expense,
taxes, and depreciation and amortization, which can vary
substantially from company to company depending upon accounting
methods and book value of assets, capital structure and the method
by which assets were acquired.
Adjusted EBITDA is EBITDA, adjusted to exclude
the impact of certain items, including non-recurring, one-time
costs (as presented in the table below) and non-cash items such as
unrealized foreign currency exchange losses (benefit) and
share-based compensation expense. The Company believes that
adjusted EBITDA helps its investors and other external users of
Hill’s financial statements understanding of a company’s operating
performance, without regard to non-recurring and other non-cash
activity.
The Company does not provide a reconciliation of
its 2021 financial guidance for such non-GAAP measure to GAAP due
to the inherent difficulty in forecasting and quantifying certain
amounts that are necessary for such reconciliation, including
adjustments that could be made for non-recurring, one-time costs
and other charges reflected in its reconciliation of historic
numbers.
Free Cash Flow
Free cash flow, a non-GAAP measure, includes net
cash provided by (used in) continuing operations, less purchases of
property and equipment. Free cash flow is a useful indicator that
provides additional perspective on Hill's ability to generate cash
that is available to the Company for taxes and other corporate
purposes. Investors should recognize that free cash flow 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.
Conference Call
Management will host a conference call on
Tuesday, November 9, 2021 at 9:00 am ET to discuss the results and
business activities. Interested parties may participate in the call
by dialing:
- (866) 682-6100 (Domestic) or
- (862) 298-0702 (International)
The call will also be accessible on the
“Investor Relations” section of Hill’s website at www.hillintl.com.
Click on “Financial Information” and then “Conferences and
Calls”.
About Hill International
Hill International, with more than 3,000
professionals and 100 offices worldwide, provides program
management, project management, construction management, project
management oversight, facilities management, and other consulting
services to clients in a variety of market sectors. Engineering
News-Record magazine recently ranked Hill as one of the largest
construction management firms 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,
infrastructure legislation may not be implemented, 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. |
|
The Equity Group Inc. |
|
|
|
Elizabeth J. Zipf, LEED AP BD+C |
|
Devin Sullivan |
Senior Vice President Hill International, Inc |
|
Senior Vice President |
One Commerce Square |
|
(212) 836-9608 |
2005 Market Street, 17th Floor |
|
dsullivan@equityny.com |
Philadelphia, PA 19103 |
|
|
(215) 309-7707 |
|
Lena Cati |
elizabethzipf@hillintl.com |
|
Vice President |
|
|
(212) 836-9611 |
|
|
lcati@equityny.com |
HILL INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands)
|
|
September 30, 2021 |
|
December 31, 2020 |
Assets |
|
(Unaudited) |
|
|
Cash and cash equivalents |
|
$ |
26,293 |
|
|
$ |
34,229 |
|
Cash - restricted |
|
3,811 |
|
|
3,752 |
|
Accounts receivable, net |
|
115,049 |
|
|
98,186 |
|
Current portion of retainage
receivable |
|
11,813 |
|
|
11,775 |
|
Accounts receivable -
affiliates |
|
29,013 |
|
|
23,285 |
|
Prepaid expenses and other
current assets |
|
13,494 |
|
|
9,378 |
|
Income tax receivable |
|
1,026 |
|
|
2,298 |
|
Total current assets |
|
200,499 |
|
|
182,903 |
|
Property and equipment,
net |
|
8,816 |
|
|
9,443 |
|
Cash - restricted, net of
current portion |
|
3,069 |
|
|
3,432 |
|
Operating lease right-of-use
assets |
|
17,908 |
|
|
13,116 |
|
Financing lease right-of-use
assets |
|
692 |
|
|
288 |
|
Retainage receivable |
|
6,988 |
|
|
6,044 |
|
Acquired intangibles, net |
|
2,767 |
|
|
2,253 |
|
Goodwill |
|
44,903 |
|
|
46,397 |
|
Investments |
|
2,511 |
|
|
2,805 |
|
Deferred income tax
assets |
|
3,880 |
|
|
3,698 |
|
Other assets |
|
2,268 |
|
|
1,620 |
|
Total assets |
|
$ |
294,301 |
|
|
$ |
271,999 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current maturities of notes
payable and long-term debt |
|
$ |
22,780 |
|
|
$ |
987 |
|
Accounts payable and accrued
expenses |
|
80,230 |
|
|
67,797 |
|
Income taxes payable |
|
1,021 |
|
|
2,219 |
|
Current portion of deferred
revenue |
|
4,339 |
|
|
3,305 |
|
Current portion of operating
lease liabilities |
|
4,937 |
|
|
4,797 |
|
Current portion of financing
lease liabilities |
|
202 |
|
|
70 |
|
Other current liabilities |
|
9,264 |
|
|
5,796 |
|
Total current liabilities |
|
122,773 |
|
|
84,971 |
|
Notes payable and long-term
debt, net of current maturities |
|
29,442 |
|
|
48,294 |
|
Retainage payable |
|
285 |
|
|
600 |
|
Deferred income taxes |
|
1,299 |
|
|
1,210 |
|
Deferred revenue |
|
7,527 |
|
|
7,488 |
|
Non-current operating lease
liabilities |
|
18,393 |
|
|
13,184 |
|
Non-current financing lease
liabilities |
|
502 |
|
|
186 |
|
Other liabilities |
|
7,253 |
|
|
6,778 |
|
Total liabilities |
|
187,474 |
|
|
162,711 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.0001 par value; 1,000 shares authorized, none
issued |
|
— |
|
|
— |
|
Common stock, $0.0001 par value; 100,000 shares authorized, 63,249
shares and 62,920 shares issued at September 30, 2021 and December
31, 2020, respectively |
|
6 |
|
|
6 |
Additional paid-in capital |
|
216,942 |
|
|
215,010 |
|
Accumulated deficit |
|
(81,467 |
) |
|
(79,542 |
) |
Accumulated other comprehensive (loss) income |
|
(66 |
) |
|
1,318 |
|
Less treasury stock of 6,807
at September 30, 2021 and December 31, 2020 |
|
(29,056 |
) |
|
(29,056 |
) |
Hill International, Inc.
share of equity |
|
106,359 |
|
|
107,736 |
|
Noncontrolling interests |
|
468 |
|
|
1,552 |
|
Total equity |
|
106,827 |
|
|
109,288 |
|
Total liabilities and stockholders’ equity |
|
$ |
294,301 |
|
|
$ |
271,999 |
|
|
|
|
|
|
|
|
|
|
HILL INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
data)(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Consulting fee revenue |
|
$ |
77,061 |
|
|
$ |
71,543 |
|
|
$ |
227,158 |
|
|
$ |
224,453 |
|
Reimbursable expenses |
|
19,543 |
|
|
17,109 |
|
|
58,079 |
|
|
51,956 |
|
Total revenue |
|
$ |
96,604 |
|
|
$ |
88,652 |
|
|
$ |
285,237 |
|
|
$ |
276,409 |
|
Direct expenses |
|
64,196 |
|
|
59,998 |
|
|
194,314 |
|
|
190,078 |
|
Gross profit |
|
32,408 |
|
|
28,654 |
|
|
90,923 |
|
|
86,331 |
|
Selling, general and
administrative expenses |
|
28,121 |
|
|
25,588 |
|
|
82,906 |
|
|
80,543 |
|
Foreign currency exchange loss
(benefit) |
|
511 |
|
|
(694 |
) |
|
2,751 |
|
|
3,622 |
|
Plus: Share of profit of equity
method affiliates |
|
551 |
|
|
983 |
|
|
1,805 |
|
|
2,021 |
|
Operating profit |
|
$ |
4,327 |
|
|
$ |
4,743 |
|
|
$ |
7,071 |
|
|
$ |
4,187 |
|
Less: Interest and related
financing fees, net |
|
1,226 |
|
|
1,275 |
|
|
4,077 |
|
|
3,870 |
|
Less: Other loss, net |
|
— |
|
|
152 |
|
|
— |
|
|
3,654 |
|
Earnings (loss) before income
taxes |
|
$ |
3,101 |
|
|
$ |
3,316 |
|
|
$ |
2,994 |
|
|
$ |
(3,337 |
) |
Income tax expense |
|
1,784 |
|
|
1,071 |
|
|
4,653 |
|
|
2,776 |
|
Net earnings (loss) |
|
$ |
1,317 |
|
|
$ |
2,245 |
|
|
$ |
(1,659 |
) |
|
$ |
(6,113 |
) |
Less: net earnings -
noncontrolling interests |
|
58 |
|
|
131 |
|
|
265 |
|
|
308 |
|
Net earnings (loss) attributable to Hill International, Inc. |
|
$ |
1,259 |
|
|
$ |
2,114 |
|
|
$ |
(1,924 |
) |
|
$ |
(6,421 |
) |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common
share - Hill International, Inc. |
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.11 |
) |
Basic weighted average common
shares outstanding |
|
57,245 |
|
|
56,702 |
|
|
57,102 |
|
|
56,551 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
common share - Hill International, Inc. |
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.11 |
) |
Diluted weighted average common
shares outstanding |
|
57,245 |
|
|
56,702 |
|
|
57,102 |
|
|
56,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HILL INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
1,318 |
|
|
2,245 |
|
|
(1,659 |
) |
|
(6,113 |
) |
Adjustments to reconcile net
loss to net cash provided by (used in): |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
567 |
|
|
705 |
|
|
1,856 |
|
|
3,380 |
|
Recovery of bad debts |
|
(337 |
) |
|
(296 |
) |
|
(2,794 |
) |
|
(1,306 |
) |
Amortization of deferred loan fees |
|
174 |
|
|
173 |
|
|
568 |
|
|
521 |
|
Deferred tax expense |
|
(263 |
) |
|
(174 |
) |
|
(120 |
) |
|
500 |
|
Share-based compensation |
|
443 |
|
|
415 |
|
|
1,814 |
|
|
1,616 |
|
Operating lease right-of-use assets |
|
462 |
|
|
1,207 |
|
|
3,306 |
|
|
3,163 |
|
Loss on liquidation of subsidiary |
|
— |
|
|
— |
|
|
— |
|
|
4,064 |
|
Foreign currency remeasurement losses |
|
270 |
|
|
232 |
|
|
2,510 |
|
|
3,622 |
|
Deferred payroll tax payments |
|
— |
|
|
2,711 |
|
|
— |
|
|
2,711 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(8,426 |
) |
|
6,310 |
|
|
(15,521 |
) |
|
4,686 |
|
Accounts receivable - affiliate |
|
4,509 |
|
|
(1,832 |
) |
|
(5,728 |
) |
|
(6,294 |
) |
Prepaid expenses and other current assets |
|
1,209 |
|
|
1,167 |
|
|
(3,951 |
) |
|
(2,418 |
) |
Income taxes receivable |
|
43 |
|
|
(266 |
) |
|
1,232 |
|
|
39 |
|
Retainage receivable |
|
(534 |
) |
|
(671 |
) |
|
(953 |
) |
|
(416 |
) |
Other assets |
|
216 |
|
|
(1,297 |
) |
|
(1,926 |
) |
|
(2,643 |
) |
Accounts payable and accrued expenses |
|
9,144 |
|
|
(3,160 |
) |
|
13,181 |
|
|
1,641 |
|
Income taxes payable |
|
(826 |
) |
|
89 |
|
|
(1,202 |
) |
|
(1,161 |
) |
Deferred revenue |
|
1,010 |
|
|
2,065 |
|
|
1,482 |
|
|
(2,451 |
) |
Operating lease liabilities |
|
(711 |
) |
|
(1,093 |
) |
|
(2,698 |
) |
|
(3,259 |
) |
Other current liabilities |
|
(1,692 |
) |
|
(236 |
) |
|
3,432 |
|
|
3,426 |
|
Retainage payable |
|
8 |
|
|
(1,195 |
) |
|
(314 |
) |
|
(730 |
) |
Other liabilities |
|
(418 |
) |
|
721 |
|
|
492 |
|
|
688 |
|
Net cash provided by (used in)
operating activities |
|
6,166 |
|
|
7,820 |
|
|
(6,993 |
) |
|
3,266 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchase of NEYO Group |
|
2 |
|
|
— |
|
|
(681 |
) |
|
— |
|
Purchase of property and equipment |
|
(110 |
) |
|
(129 |
) |
|
(1,197 |
) |
|
(1,101 |
) |
Net cash used in investing
activities |
|
(108 |
) |
|
(129 |
) |
|
(1,878 |
) |
|
(1,101 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from term loans |
|
— |
|
|
26 |
|
|
— |
|
|
1,291 |
|
Repayment of term loans |
|
(280 |
) |
|
(232 |
) |
|
(802 |
) |
|
(666 |
) |
Proceeds from revolving loans |
|
13,812 |
|
|
10,290 |
|
|
29,785 |
|
|
38,486 |
|
Repayment of revolving loans |
|
(14,590 |
) |
|
(8,100 |
) |
|
(25,816 |
) |
|
(24,268 |
) |
Proceeds from stock issued under employee stock purchase plan |
|
23 |
|
|
20 |
|
|
118 |
|
|
221 |
|
Net cash provided by financing
activities |
|
(1,035 |
) |
|
2,004 |
|
|
3,285 |
|
|
15,064 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(549 |
) |
|
749 |
|
|
(2,654 |
) |
|
(97 |
) |
Deconsolidated cash |
|
— |
|
|
— |
|
|
— |
|
|
9 |
|
Net (decrease) increase in
cash, cash equivalents and restricted cash |
|
4,474 |
|
|
10,444 |
|
|
(8,240 |
) |
|
17,123 |
|
Cash, cash equivalents and
restricted cash — beginning of period |
|
|
|
|
|
41,413 |
|
|
24,982 |
|
Cash, cash equivalents and
restricted cash — end of period |
|
|
|
|
|
$ |
33,173 |
|
|
$ |
42,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
Supplemental disclosures of
cash flow information: |
|
2021 |
|
2020 |
Interest and related financing fees paid |
|
$ |
3,520 |
|
|
$ |
2,722 |
|
Income taxes paid |
|
3,830 |
|
|
2,018 |
|
Transfer of proceeds from
shares pledged as collateral to treasury stock |
|
— |
|
|
825 |
|
Cash paid for amounts included
in the measurement of lease liabilities |
|
4,897 |
|
|
5,914 |
|
Right-of-use assets obtained
in exchange for operating lease liabilities |
|
8,568 |
|
|
288 |
|
Right-of-use assets obtained
in exchange for finance lease liabilities |
|
538 |
|
|
475 |
|
HILL INTERNATIONAL, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP
MEASURES(In thousands)
The following table includes a reconciliation of these non-GAAP
measures to its most directly comparable GAAP measure:
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
4,327 |
|
|
$ |
4,743 |
|
|
$ |
7,071 |
|
|
$ |
4,187 |
|
Adjustments to operating
profit |
|
|
|
|
|
|
|
|
Share-based compensation |
|
443 |
|
|
415 |
|
|
1,814 |
|
|
1,616 |
|
Unrealized foreign currency exchange loss (benefit) |
|
342 |
|
|
(760 |
) |
|
241 |
|
|
3,399 |
|
Write-off of leasehold improvement (1) |
|
— |
|
|
— |
|
|
— |
|
|
1,582 |
|
Non-recurring activity (2) |
|
782 |
|
|
— |
|
|
308 |
|
|
636 |
|
Adjusted operating
profit |
|
$ |
5,894 |
|
|
$ |
4,398 |
|
|
$ |
9,434 |
|
|
$ |
11,420 |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
1,317 |
|
|
2,245 |
|
|
(1,659 |
) |
|
(6,113 |
) |
Less: net earnings -
noncontrolling interests |
|
58 |
|
|
131 |
|
|
265 |
|
|
308 |
|
Net earnings (loss)
attributable to Hill International, Inc. |
|
$ |
1,259 |
|
|
$ |
2,114 |
|
|
$ |
(1,924 |
) |
|
$ |
(6,421 |
) |
Adjustments to net loss
attributable to Hill International, Inc. |
|
|
|
|
|
|
|
|
Less: Interest and related financing fees, net |
|
1,226 |
|
|
1,275 |
|
|
4,077 |
|
|
3,870 |
|
Income tax expense |
|
1,784 |
|
|
1,071 |
|
|
4,653 |
|
|
2,776 |
|
Depreciation and amortization expense (1) |
|
567 |
|
|
705 |
|
|
1,856 |
|
|
3,380 |
|
EBITDA |
|
4,836 |
|
|
5,165 |
|
|
8,662 |
|
|
3,605 |
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
443 |
|
|
415 |
|
|
1,814 |
|
|
1,616 |
|
Unrealized foreign currency exchange loss (benefit) |
|
342 |
|
|
(760 |
) |
|
241 |
|
|
3,399 |
|
Brazil Office Closure |
|
— |
|
|
— |
|
|
— |
|
|
4,064 |
|
Non-recurring activity (2) |
|
782 |
|
|
— |
|
|
308 |
|
|
636 |
|
Adjusted
EBITDA |
|
$ |
6,403 |
|
|
$ |
4,820 |
|
|
$ |
11,025 |
|
|
$ |
13,320 |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to Hill International, Inc. |
|
$ |
1,259 |
|
|
$ |
2,114 |
|
|
$ |
(1,924 |
) |
|
$ |
(6,421 |
) |
Adjustments to net loss
attributable to Hill International, Inc. |
|
|
|
|
|
|
|
|
Share-based compensation |
|
443 |
|
|
415 |
|
|
1,814 |
|
|
1,616 |
|
Unrealized foreign currency exchange loss (benefit) |
|
342 |
|
|
(760 |
) |
|
241 |
|
|
3,399 |
|
Write-off of leasehold improvement (1) |
|
— |
|
|
— |
|
|
— |
|
|
1,582 |
|
Brazil Office Closure |
|
— |
|
|
— |
|
|
— |
|
|
4,064 |
|
Non-recurring activity (2) |
|
782 |
|
|
— |
|
|
308 |
|
|
636 |
|
Adjusted net
income |
|
$ |
2,826 |
|
|
$ |
1,769 |
|
|
$ |
439 |
|
|
$ |
4,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The write-off of leasehold improvements that was incurred
during the quarter ended March 31, 2020 as a result of the sublease
of the Company's corporate headquarters as part of its cost
reduction initiatives was included in depreciation and amortization
expense and is reflected in SG&A in the Company's consolidated
statements of operations.
(2) Non-recurring activity includes the partial collection of a
fully reserved receivable in Libya, net of other non-recurring
activity, during the nine months ended September 30, 2021.
(HIL-G)
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