Hill International, Inc. (NYSE:HIL) ("Hill" or the "Company"), the
global leader in managing construction risk, announced today its
financial results for the fourth quarter ("Q4 2021") and full year
ended December 31, 2021.
“We generated record new contract awards of $437 million during
2021, and ended the year with a total backlog of $730 million, the
highest level since 2019," said Hill Chief Executive Officer Raouf
Ghali. "New awards activity remains robust thus far in 2022, with
an increasing emphasis on infrastructure, including aviation, rail,
highway, bridges, and energy - areas in which Hill has a proven
record of successful project completion. We believe that the
COVID-related headwinds that we endured these last two years are
beginning to abate. CFR through the two months ended February 28,
2022 increased approximately 11% over the same 2021 period, in line
with our expectations. We are confident that the momentum we
experienced in 2021 has created a strong foundation for growth in
2022 and beyond."
He continued, "Despite generating higher CFR, our results were
negatively impacted by unapplied labor costs and higher than normal
paid time off resulting from a one-time allowance for our employees
to carry-over unused 2020 paid time off into 2021 as an
accommodation during the COVID-19 pandemic. Although our results
were negatively impacted, we felt strongly that it was important to
support our employees during an unprecedented time. These costs
were confined to 2021 and are not expected to repeat in 2022 or any
future periods."
"Our unrestricted cash position at December 31, 2021 was $21.8
million, and total liquidity was $31.0 million," said Todd
Weintraub, Hill's Chief Financial Officer. "Cash flow for the year
turned negative, reflecting payment during 2021 of certain items
deferred from 2020, including employer taxes and rent, increased
working capital due to CFR growth, as well as slower billing due to
resource shortages and the timing of collections on certain
clients. We are now current on the deferred items, our billing
function is fully staffed and we expect to have positive cash flow
for 2022. Our full year 2021 EBITDA rose 37.4% to $11.3 million
from $8.2 million last year. Adjusted EBITDA was $16.3 million, as
compared to $19.0 million in 2020 due primarily to the unapplied
labor and paid time off items discussed above."
Q4 2021 Financial Results Overview
Hill's CFR rose to $77.9 million in Q4 2021 from
$72.2 million in the fourth quarter of 2020 ("Q4 2020"), primarily
due to activity returning to pre-COVID levels.
Selling, general, and administrative
("SG&A") expenses in Q4 2021 were $30.7 million, or 33.3% of
total revenue, compared to $28.7 million, or 31.1% of total
revenue, in Q4 2020. Increased SG&A dollars reflected higher
labor costs.
Operating profit for Q4 2021 was $2.2 million as compared to
$6.3 million, driven primarily by increased foreign exchange
losses, in addition to higher SG&A. Adjusted operating profit,
a non-GAAP measure (see definition and reconciliation below), was
$4.8 million in Q4 2021 compared to $5.9 million in Q4 2020.
Income tax expense in Q4 2021 was $3.0 million,
compared to $4.4 million in Q4 2020, reflecting lower pre-tax
income in Q4 2021.
Net loss attributable to Hill in Q4 2021 was
$2.3 million, or $0.04 per share, compared to a net loss
attributable to Hill of $1.8 million, or $0.03, in Q4 2020.
Adjusted net income, a non-GAAP measure (see definition and
reconciliation in the table below), was $0.3 million in Q4 2021,
compared to an adjusted net loss of $0.7 million in Q4 2020.
Adjusted EBITDA, a non-GAAP measure (see
definition and reconciliation below), was $5.2 million in Q4 2021,
compared to $5.7 million in Q4 2020.
2021 Financial Results
Overview
CFR for 2021 rose to $305.1 million from $296.6
million in 2020, due to the factors described above.
SG&A was $113.6 million, or 30.1% of total
revenue, in 2021 as compared to $109.2 million, or 29.6% of total
revenue, in 2020, reflecting higher labor and travel expenses as a
result of activity returning to pre-COVID levels.
Operating profit was $9.3 million in 2021 as
compared to $10.5 million in 2020. Adjusted operating profit, a
non-GAAP measure (see definition and reconciliation below), was
$14.2 million compared to $17.4 million in 2020.
Income tax expense in 2021 was $7.7 million, as
compared to $7.1 million in 2020.
Net loss attributable to Hill was $4.3 million,
or $0.07 per share, in 2021, compared to a net loss attributable to
Hill of $8.2 million, or $0.14 per share, in 2020. Adjusted net
income for 2021, a non-GAAP measure (see definition and
reconciliation below), was $0.7 million compared to adjusted net
income of $4.2 million in 2020.
Financial Condition and
Backlog
Net cash used in operating activities was
$(12.7) million at December 31, 2021 as compared to net
cash provided by operating activities at December 31, 2020.
Free cash flow, a non-GAAP measure (see definition below), for 2021
was $(14.4) million, which represents net cash provided by
operating activities, less $1.7 million in purchases of property
and equipment during the year. Free cash flow in 2020 was $10.5
million, which represents net cash provided by operating
activities, less $1.8 million in property and equipment purchased
during the year.
Unrestricted cash at December 31, 2021 was
$21.8 million, a decline of $12.4 million from December 31, 2020
due to the factors discussed above. The Company had approximately
$9.1 million in available and undrawn credit facilities at
December 31, 2021, compared to $12.3 million at September 30,
2021 and $11.7 million at December 31, 2020. The Company's
total liquidity at December 31, 2021 was $31.0 million, as
compared to $45.9 million at December 31, 2020.
The Company entered into an amendment of its
main credit facility that extends the maturity dates of the
revolving credit facilities and term loan facility to May 5, 2023
and November 5, 2023, respectively. The interest rates on these
facilities will increase 1.0% and the Company will pay an amendment
fee of 1.0% or less, contingent on the timing of refinancing the
revolving credit facilities.
Backlog, a non-GAAP measure (see definition
below), was $729.4 million at December 31, 2021, an
increase of $62.7 million, or 9.4%, from December 31, 2020.
2022 Financial Guidance
CFR for 2022 is expected to range between $340 -
$350 million, representing an increase of between approximately 11%
- 15% from 2021. Twelve-month backlog at December 31, 2021 was
$260.0 million, or between 74% - 77% of the total 2022 CFR range.
This increase is expected to consist of new awards, the
commencement of deferred projects, and extensions of existing
contracts.
Adjusted EBITDA (a non-GAAP measure) for 2022 is
expected to range between $22 and $24 million, up from Adjusted
EBITDA of $16.3 million for 2021 and representing growth of 35% -
47%.
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
(benefits), 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 (benefits), 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 2020 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
Friday, April 1, 2021 at 9:00 am ET to discuss the results and
business activities. Interested parties may participate in the call
by dialing:
- (877) 407-9753 (Domestic) or
- (201) 493-6739 (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 in approximately 100 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 and any statements regarding our
expectations for the timing of our work on projects 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, including but not
limited to the effects of any continued spread of the COVID-19
virus or effects of decreased oil and gas prices. 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. |
|
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)
|
|
December 31, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
21,821 |
|
|
$ |
34,229 |
|
Cash - restricted |
|
|
5,562 |
|
|
|
3,752 |
|
Accounts receivable, net |
|
|
119,516 |
|
|
|
98,186 |
|
Accounts receivable -
affiliates, net |
|
|
21,741 |
|
|
|
23,285 |
|
Current portion of retainage
receivable |
|
|
9,743 |
|
|
|
11,775 |
|
Prepaid expenses and other
current assets |
|
|
9,937 |
|
|
|
9,378 |
|
Income taxes receivable |
|
|
2,163 |
|
|
|
2,298 |
|
Total current assets |
|
|
190,483 |
|
|
|
182,903 |
|
Property and equipment,
net |
|
|
8,895 |
|
|
|
9,443 |
|
Cash - restricted, net of
current portion |
|
|
3,063 |
|
|
|
3,432 |
|
Operating lease right-of-use
assets |
|
|
18,347 |
|
|
|
13,116 |
|
Financing lease right-of-use
assets |
|
|
801 |
|
|
|
288 |
|
Retainage receivable |
|
|
7,491 |
|
|
|
6,044 |
|
Acquired intangibles, net |
|
|
3,002 |
|
|
|
2,253 |
|
Goodwill |
|
|
44,127 |
|
|
|
46,397 |
|
Investments |
|
|
2,038 |
|
|
|
2,805 |
|
Deferred income tax
assets |
|
|
2,165 |
|
|
|
3,698 |
|
Other assets |
|
|
2,645 |
|
|
|
1,620 |
|
Total assets |
|
$ |
283,057 |
|
|
$ |
271,999 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current maturities of notes
payable and long-term debt |
|
$ |
25,841 |
|
|
$ |
987 |
|
Accounts payable and accrued
expenses |
|
|
63,856 |
|
|
|
62,401 |
|
Income taxes payable |
|
|
2,610 |
|
|
|
2,219 |
|
Current portion of deferred
revenue |
|
|
4,088 |
|
|
|
3,305 |
|
Current portion of operating
lease liabilities |
|
|
4,777 |
|
|
|
4,797 |
|
Current portion of financing
lease liabilities |
|
|
246 |
|
|
|
70 |
|
Other current liabilities |
|
|
6,006 |
|
|
|
5,796 |
|
Total current liabilities |
|
|
107,424 |
|
|
|
79,575 |
|
Notes payable and long-term
debt, net of current maturities |
|
|
29,302 |
|
|
|
48,294 |
|
Retainage payable |
|
|
279 |
|
|
|
600 |
|
Deferred income tax
liabilities |
|
|
959 |
|
|
|
1,210 |
|
Deferred revenue |
|
|
9,541 |
|
|
|
7,488 |
|
Non-current operating lease
liabilities |
|
|
18,565 |
|
|
|
13,184 |
|
Non-current financing lease
liabilities |
|
|
573 |
|
|
|
186 |
|
Other liabilities |
|
|
13,175 |
|
|
|
12,174 |
|
Total liabilities |
|
|
179,818 |
|
|
|
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, 63,291
and 62,920 shares issued at December 31, 2021 and 2020,
respectively |
|
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
|
217,471 |
|
|
|
215,010 |
|
Accumulated deficit |
|
|
(83,813 |
) |
|
|
(79,542 |
) |
Accumulated other comprehensive (loss) income |
|
|
(1,813 |
) |
|
|
1,318 |
|
Treasury stock of 6,807 at December 31, 2021 and 2020 |
|
|
(29,056 |
) |
|
|
(29,056 |
) |
Hill International, Inc.
share of equity |
|
|
102,795 |
|
|
|
107,736 |
|
Noncontrolling interests |
|
|
444 |
|
|
|
1,552 |
|
Total equity |
|
|
103,239 |
|
|
|
109,288 |
|
Total liabilities and stockholders’ equity |
|
$ |
283,057 |
|
|
$ |
271,999 |
|
HILL INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share data)
|
|
Three Months Ended December
31,(1) |
|
Twelve Months Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Consulting fee revenue |
|
$ |
77,935 |
|
|
$ |
72,162 |
|
|
$ |
305,093 |
|
|
$ |
296,615 |
|
Reimbursable expenses |
|
|
14,266 |
|
|
|
19,953 |
|
|
|
72,345 |
|
|
|
71,909 |
|
Total revenue |
|
|
92,201 |
|
|
|
92,115 |
|
|
|
377,438 |
|
|
|
368,524 |
|
Direct expenses |
|
|
59,446 |
|
|
|
59,095 |
|
|
|
253,760 |
|
|
|
249,173 |
|
Gross profit |
|
|
32,755 |
|
|
|
33,020 |
|
|
|
123,678 |
|
|
|
119,351 |
|
Selling, general and
administrative expenses |
|
|
30,684 |
|
|
|
28,672 |
|
|
|
113,590 |
|
|
|
109,215 |
|
Foreign currency exchange
(benefit) loss |
|
|
376 |
|
|
|
(699 |
) |
|
|
3,127 |
|
|
|
2,923 |
|
Plus: Share of profit of equity
method affiliates |
|
|
494 |
|
|
|
1,265 |
|
|
|
2,299 |
|
|
|
3,286 |
|
Operating profit |
|
|
2,189 |
|
|
|
6,312 |
|
|
|
9,260 |
|
|
|
10,499 |
|
Less: Interest and related
financing fees, net |
|
|
1,350 |
|
|
|
1,354 |
|
|
|
5,427 |
|
|
|
5,224 |
|
Less: Other loss |
|
|
86 |
|
|
|
2,057 |
|
|
|
86 |
|
|
|
5,711 |
|
Income (loss) before income
taxes |
|
|
753 |
|
|
|
2,901 |
|
|
|
3,747 |
|
|
|
(436 |
) |
Income tax expense |
|
|
3,036 |
|
|
|
4,358 |
|
|
|
7,689 |
|
|
|
7,134 |
|
Net loss |
|
|
(2,283 |
) |
|
|
(1,457 |
) |
|
|
(3,942 |
) |
|
|
(7,570 |
) |
Less: net income - noncontrolling
interests |
|
|
64 |
|
|
|
304 |
|
|
|
329 |
|
|
|
612 |
|
Net loss attributable to Hill
International, Inc. |
|
$ |
(2,347 |
) |
|
$ |
(1,761 |
) |
|
$ |
(4,271 |
) |
|
$ |
(8,182 |
) |
|
|
|
|
|
|
|
|
|
Basic loss per common share -
Hill International, Inc. |
|
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
Basic weighted average common
shares outstanding |
|
|
57,290 |
|
|
|
56,756 |
|
|
|
57,149 |
|
|
|
56,603 |
|
|
|
|
|
|
|
|
|
|
Diluted loss per common share -
Hill International, Inc. |
|
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
Diluted weighted average common
shares outstanding |
|
|
57,290 |
|
|
|
56,756 |
|
|
|
57,149 |
|
|
|
56,603 |
|
(1) Amounts for the three months ended December 31, 2021
and 2020 are unaudited.
HILL INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)
|
|
Three Months Ended December
31,(1) |
|
Twelve Ended December 31, |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
(2,283 |
) |
|
(1,457 |
) |
|
|
(3,942 |
) |
|
|
(7,570 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by (used in): |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
585 |
|
|
658 |
|
|
|
2,441 |
|
|
|
4,038 |
|
Recovery of bad debts |
|
(1,402 |
) |
|
(634 |
) |
|
|
(4,196 |
) |
|
|
(1,940 |
) |
Amortization of deferred loan fees |
|
175 |
|
|
178 |
|
|
|
743 |
|
|
|
699 |
|
Deferred tax expense |
|
1,395 |
|
|
282 |
|
|
|
1,275 |
|
|
|
782 |
|
Share-based compensation |
|
456 |
|
|
390 |
|
|
|
2,270 |
|
|
|
2,006 |
|
Lease right-of use assets |
|
607 |
|
|
972 |
|
|
|
3,913 |
|
|
|
4,135 |
|
Loss on liquidation of subsidiary |
|
— |
|
|
1,437 |
|
|
|
— |
|
|
|
5,501 |
|
Foreign currency remeasurement losses |
|
307 |
|
|
(699 |
) |
|
|
2,817 |
|
|
|
2,923 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(6,113 |
) |
|
8,777 |
|
|
|
(21,634 |
) |
|
|
13,463 |
|
Accounts receivable - affiliates |
|
7,272 |
|
|
1,785 |
|
|
|
1,544 |
|
|
|
(4,509 |
) |
Prepaid expenses and other current assets |
|
3,933 |
|
|
3,567 |
|
|
|
(18 |
) |
|
|
1,149 |
|
Income taxes receivable |
|
(1,155 |
) |
|
(458 |
) |
|
|
77 |
|
|
|
(419 |
) |
Retainage receivable |
|
1,405 |
|
|
79 |
|
|
|
452 |
|
|
|
(337 |
) |
Other assets |
|
581 |
|
|
(2,050 |
) |
|
|
(1,345 |
) |
|
|
(4,693 |
) |
Accounts payable and accrued expenses |
|
(14,622 |
) |
|
(1,886 |
) |
|
|
(1,441 |
) |
|
|
(245 |
) |
Deferred payroll tax payments |
|
(1,542 |
) |
|
912 |
|
|
|
(1,542 |
) |
|
|
3,623 |
|
Income taxes payable |
|
1,617 |
|
|
209 |
|
|
|
415 |
|
|
|
(952 |
) |
Deferred revenue |
|
1,947 |
|
|
(651 |
) |
|
|
3,429 |
|
|
|
(3,102 |
) |
Operating lease liabilities |
|
(960 |
) |
|
(1,344 |
) |
|
|
(3,558 |
) |
|
|
(4,587 |
) |
Finance lease liabilities |
|
(6 |
) |
|
(2 |
) |
|
|
(13 |
) |
|
|
(3 |
) |
Other current liabilities |
|
(3,939 |
) |
|
(2,258 |
) |
|
|
(507 |
) |
|
|
1,168 |
|
Retainage payable |
|
(6 |
) |
|
(222 |
) |
|
|
(320 |
) |
|
|
(952 |
) |
Other liabilities |
|
5,985 |
|
|
1,444 |
|
|
|
6,477 |
|
|
|
2,132 |
|
Net cash (used in)
provided by operating activities |
|
(5,763 |
) |
|
9,029 |
|
|
|
(12,663 |
) |
|
|
12,310 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(500 |
) |
|
(742 |
) |
|
|
(1,697 |
) |
|
|
(1,843 |
) |
Acquisition of Grandfathered Engineering Corporation license |
|
— |
|
|
(1,050 |
) |
|
|
— |
|
|
|
(1,050 |
) |
Purchase of NEYO Group |
|
3 |
|
|
— |
|
|
|
(678 |
) |
|
|
— |
|
Net cash used in
investing activities |
|
(497 |
) |
|
(1,792 |
) |
|
|
(2,375 |
) |
|
|
(2,893 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Principal payments on finance leases |
|
(60 |
) |
|
(17 |
) |
|
|
(153 |
) |
|
|
(32 |
) |
Proceeds from term loan borrowings |
|
— |
|
|
19 |
|
|
|
— |
|
|
|
1,310 |
|
Payments on term loans |
|
(347 |
) |
|
(227 |
) |
|
|
(1,149 |
) |
|
|
(893 |
) |
Proceeds from revolving loans |
|
14,472 |
|
|
15,144 |
|
|
|
44,257 |
|
|
|
53,630 |
|
Repayment of revolving loans |
|
(11,150 |
) |
|
(23,509 |
) |
|
|
(36,966 |
) |
|
|
(47,777 |
) |
Proceeds from stock issued under employee stock purchase plan |
|
75 |
|
|
24 |
|
|
|
193 |
|
|
|
245 |
|
Net cash provided by
financing activities |
|
2,990 |
|
|
(8,566 |
) |
|
|
6,182 |
|
|
|
6,483 |
|
Effect of foreign
exchange rate changes on cash |
|
543 |
|
|
637 |
|
|
|
(2,111 |
) |
|
|
540 |
|
Less: Deconsolidated
cash |
|
— |
|
|
— |
|
|
|
— |
|
|
|
9 |
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash |
|
(2,727 |
) |
|
(692 |
) |
|
|
(10,967 |
) |
|
|
16,431 |
|
Cash, cash equivalents
and restricted cash — beginning of year |
|
|
|
|
|
|
41,413 |
|
|
|
24,982 |
|
Cash, cash equivalents
and restricted cash — end of year |
|
|
|
|
|
$ |
30,446 |
|
|
$ |
41,413 |
|
|
|
Twelve Months Ended December 31, |
Supplemental disclosures of cash flow information: |
|
|
2021 |
|
|
2020 |
Interest and related financing
fees paid |
|
$ |
4,685 |
|
$ |
4,670 |
Income taxes paid |
|
|
4,393 |
|
|
3,748 |
Transfer of proceeds from
shares pledged as collateral to treasury stock |
|
|
— |
|
|
825 |
Cash paid for amounts included
in the measurement of lease liabilities |
|
|
6,813 |
|
|
8,448 |
Right-of-use assets obtained
in exchange for operating lease liabilities |
|
|
9,765 |
|
|
1,293 |
Right-of-use assets obtained
in exchange for finance lease liabilities |
|
|
714 |
|
|
288 |
Cancellation of PIDC-Local
Development Corporation forgivable loan |
|
|
— |
|
|
345 |
(1) Amounts for the three months ended December
31, 2021 and 2020 are unaudited and are calculated based on the
changes between years ended December 31, 2021 and 2020 and the
nine months ended September 30, 2021 and 2020.
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 EndedDecember
31, |
|
Twelve Months Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Operating
profit |
|
$ |
2,189 |
|
|
$ |
6,312 |
|
|
$ |
9,260 |
|
|
$ |
10,499 |
|
Adjustments to operating
profit |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
456 |
|
|
|
390 |
|
|
|
2,270 |
|
|
|
2,006 |
|
Unrealized foreign currency exchange (benefit) loss |
|
|
436 |
|
|
|
(765 |
) |
|
|
677 |
|
|
|
2,634 |
|
Write-off of leasehold improvement (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,582 |
|
Non-recurring activity (2) |
|
|
1,712 |
|
|
|
— |
|
|
|
2,020 |
|
|
|
636 |
|
Adjusted operating
profit |
|
$ |
4,793 |
|
|
$ |
5,937 |
|
|
$ |
14,227 |
|
|
$ |
17,357 |
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
|
(2,283 |
) |
|
|
(1,457 |
) |
|
|
(3,942 |
) |
|
|
(7,570 |
) |
Less: net income -
noncontrolling interests |
|
|
64 |
|
|
|
304 |
|
|
|
329 |
|
|
|
612 |
|
Net loss attributable
to Hill International, Inc. |
|
$ |
(2,347 |
) |
|
$ |
(1,761 |
) |
|
$ |
(4,271 |
) |
|
$ |
(8,182 |
) |
Adjustments to net earnings
(loss) attributable to Hill International, Inc. |
|
|
|
|
|
|
|
|
Interest and related financing fees, net |
|
|
1,350 |
|
|
|
1,354 |
|
|
|
5,427 |
|
|
|
5,224 |
|
Income tax expense (benefit) |
|
|
3,036 |
|
|
|
4,358 |
|
|
|
7,689 |
|
|
|
7,134 |
|
Depreciation and amortization expense (1) |
|
|
585 |
|
|
|
658 |
|
|
|
2,441 |
|
|
|
4,038 |
|
EBITDA |
|
|
2,624 |
|
|
|
4,609 |
|
|
|
11,286 |
|
|
|
8,214 |
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
456 |
|
|
|
390 |
|
|
|
2,270 |
|
|
|
2,006 |
|
Unrealized foreign currency exchange (benefit) loss |
|
|
436 |
|
|
|
(765 |
) |
|
|
677 |
|
|
|
2,634 |
|
Brazil Office Closure |
|
|
— |
|
|
|
1,437 |
|
|
|
— |
|
|
|
5,501 |
|
Non-recurring activity (2) |
|
|
1,712 |
|
|
|
— |
|
|
|
2,020 |
|
|
|
636 |
|
Adjusted
EBITDA |
|
$ |
5,228 |
|
|
$ |
5,671 |
|
|
$ |
16,253 |
|
|
$ |
18,991 |
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Hill International, Inc. |
|
$ |
(2,347 |
) |
|
$ |
(1,761 |
) |
|
$ |
(4,271 |
) |
|
$ |
(8,182 |
) |
Adjustments to net (loss)
earnings attributable to Hill International, Inc. |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
456 |
|
|
|
390 |
|
|
|
2,270 |
|
|
|
2,006 |
|
Unrealized foreign currency exchange (benefit) loss |
|
|
436 |
|
|
|
(765 |
) |
|
|
677 |
|
|
|
2,634 |
|
Write-off of leasehold improvement (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,582 |
|
Brazil Office Closure |
|
|
— |
|
|
|
1,437 |
|
|
|
— |
|
|
|
5,501 |
|
Non-recurring activity (2) |
|
|
1,712 |
|
|
|
— |
|
|
|
2,020 |
|
|
|
636 |
|
Adjusted net (loss)
income |
|
$ |
257 |
|
|
$ |
(699 |
) |
|
$ |
696 |
|
|
$ |
4,177 |
|
(1) The write-off of leasehold improvements that was incurred
during the twelve months ended December 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
fully reserved receivables in Libya, net of other non-recurring
activity, during the twelve months ended December 31, 2021.
(HIL-G)
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