EX-99.1 2 a14-12354_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Hill International, Inc.

 

The Equity Group Inc.

John P. Paolin

 

Devin Sullivan

Senior Vice President of Marketing and

 

Senior Vice President

Corporate Communications

 

(212) 836-9608

(856) 810-6210

 

dsullivan@equityny.com

johnpaolin@hillintl.com

 

 

 

FOR IMMEDIATE RELEASE

 

Hill International Reports First Quarter 2014 Financial Results

 

Marlton, NJ — May 8, 2014 — Hill International (NYSE:HIL), the global leader in managing construction risk, announced today financial results for the first quarter ended March 31, 2014 (see attached tables).

 

Total revenue for the first quarter of 2014 was a record $150.0 million, an increase of 10.2% from the first quarter of 2013.  Consulting fee revenue for the first quarter of 2014 was a record $137.2 million, an increase of 12.0% from last year’s first quarter.

 

EBITDA (as defined below) for the first quarter of 2014 was $8.2 million, a 14.0% decrease from the first quarter of 2013.  Operating profit for the first quarter was $6.0 million, an 18.9% decline from last year’s first quarter.  Net earnings for the first quarter were $0.1 million, or $0.00 per diluted share, compared to a net loss of ($0.4 million) in the first quarter of 2013, or ($0.01) per diluted share.

 

The company’s total backlog at March 31, 2014 was $978 million compared to $1.027 billion at December 31, 2013.  Twelve-month backlog at March 31, 2014 was a record $400 million compared to $394 million at December 31, 2013.

 

“Our strong growth has continued into 2014, with Hill having achieved record consulting fees in the first quarter,” said Irvin E. Richter, Hill’s Chairman and Chief Executive Officer. “Our top priority, however, continues to be the lowering of our interest expense so that more of our operating profit can drop to the bottom line, and we expect significant progress on this effort in the near future,” added Richter.

 

2014 Guidance

 

Based upon current market conditions and the backlog described above, the company reaffirms its prior estimate that consulting fee revenue for 2014 will be between $575 million and $600 million.  This guidance reflects approximately 12% to 17% growth in consulting fee revenue for the year.

 



 

Business Segment Results

 

In addition to providing consolidated financial results, Hill also reports separate financial results for its two operating segments: the Project Management Group and the Construction Claims Group.

 

Project Management Group.  Hill’s Project Management Group provides program management, project management, construction management, project management oversight, troubled project turnaround, staff augmentation, project labor agreement consulting, commissioning, estimating and cost management, and labor compliance services.

 

Total revenue at Hill’s Project Management Group during the first quarter of 2014 was $113.2 million, an increase of 5.2% from the first quarter of 2013.  Consulting fee revenue for the first quarter at the Projects Group was a record $101.8 million, an increase of 7.1% from the prior year’s first quarter.  Operating profit for the Projects Group for the first quarter was $10.9 million, an 11.4% decrease from the first quarter of last year.

 

Construction Claims GroupHill’s Construction Claims Group provides claims consulting, management consulting, litigation support, expert witness testimony, cost/damages assessment, delay/disruption analysis, adjudication, lender advisory, risk management, forensic accounting, fraud investigation and Project Neutral services.

 

Total revenue at Hill’s Construction Claims Group during the first quarter of 2014 was a record $36.8 million, an increase of 29.3% from the first quarter of 2013.  Consulting fee revenue for the first quarter at the Claims Group was a record $35.5 million, an increase of 28.7% from the prior year’s first quarter.  Operating profit for the Claims Group for the first quarter was $2.6 million, an increase of 7.3% from the first quarter of last year.

 

Conference Call

 

David L. Richter, Hill’s President and Chief Operating Officer, and John Fanelli III, Hill’s Senior Vice President and Chief Financial Officer, will host a conference call on May 9, 2014, at 11:00 am Eastern Time to discuss the financial results for the first quarter ended March 31, 2014.  Interested parties may participate in the call by dialing (877) 423-9820 (Domestic) or (201) 493-6749 (International) approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Hill International conference call.  The conference call will also be broadcast live over the Internet.  To listen to the live call, 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 and can be accessed from Hill’s website for approximately 90 days.

 

About Hill International

 

Hill International, with 4,200 employees in 100 offices worldwide, provides program management, project management, construction management, construction claims and other consulting services primarily to the buildings, transportation, environmental, energy and

 



 

industrial markets.  Engineering News-Record magazine recently ranked Hill as the 9th largest construction management firm in the United States.  For more information on Hill, please visit our website at www.hillintl.com.

 

The Hill International logo is available at:

http://www.globenewswire.com/newsroom/prs/?pkgid=5733

 

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 projections of revenues, earnings 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, performance and achievements, or industry 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. We do not intend, and undertake no obligation, to update any forward-looking statement.

 

(HIL-F)

 



 

HILL INTERNATIONAL, INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

(In 000’s, Except Per Share Data)

(Unaudited)

 

Consolidated Statement of Operations

 

 

 

Three Months Ended March 31,

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Consulting fee revenue

 

$

137,249

 

$

122,556

 

Reimbursable expenses

 

12,764

 

13,517

 

Total revenue

 

150,013

 

136,073

 

 

 

 

 

 

 

Cost of services

 

78,590

 

72,698

 

Reimbursable expenses

 

12,764

 

13,517

 

Total direct expenses

 

91,354

 

86,215

 

Gross profit

 

58,659

 

49,858

 

Selling, general and administrative expenses

 

52,659

 

42,459

 

 

 

 

 

 

 

Operating profit

 

6,000

 

7,399

 

Interest and related financing fees, net

 

5,076

 

5,487

 

Earnings before income taxes

 

924

 

1,912

 

Income tax expense

 

631

 

1,874

 

Net earnings

 

293

 

38

 

Less: net earnings - noncontrolling interests

 

240

 

418

 

Net earnings (loss) attributable to Hill International, Inc.

 

$

53

 

$

(380

)

 

 

 

 

 

 

Basic earnings (loss) per common share - Hill International, Inc.

 

$

 

$

(0.01

)

Basic weighted average common shares outstanding

 

39,795

 

38,664

 

 

 

 

 

 

 

Diluted earnings (loss) per common share - Hill International, Inc.

 

$

 

$

(0.01

)

Diluted weighted average common shares outstanding

 

40,602

 

38,664

 

 



 

Selected Segment Data

 

 

 

Three Months Ended March 31,

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Project Management

 

 

 

 

 

Consulting fee revenue

 

$

101,788

 

$

94,998

 

Total revenue

 

$

113,169

 

$

107,579

 

Gross profit

 

$

39,036

 

$

34,725

 

Gross profit as a percent of consulting fee revenue

 

38.4

%

36.6

%

Selling, general and administrative expenses

 

$

28,093

 

$

22,369

 

SG&A expenses as a percentage of consulting fee revenue

 

27.6

%

23.5

%

Operating profit

 

$

10,943

 

$

12,356

 

Operating profit as a percent of consulting fee revenue

 

10.8

%

13.0

%

 

 

 

 

 

 

Construction Claims

 

 

 

 

 

Consulting fee revenue

 

$

35,461

 

$

27,558

 

Total revenue

 

$

36,844

 

$

28,494

 

Gross profit

 

$

19,623

 

$

15,133

 

Gross profit as a percent of consulting fee revenue

 

55.3

%

54.9

%

Selling, general and administrative expenses

 

$

17,005

 

$

12,694

 

SG&A expenses as a percentage of consulting fee revenue

 

48.0

%

46.1

%

Operating profit

 

$

2,618

 

$

2,439

 

Operating profit as a percent of consulting fee revenue

 

7.4

%

8.9

%

 

Selected Other Financial Data

 

 

 

Three Months Ended March 31,

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Consulting fee revenue

 

$

137,249

 

$

122,556

 

Total revenue

 

$

150,013

 

136,073

 

Gross profit

 

$

58,659

 

$

49,858

 

Gross profit as a percentage of consulting fee revenue

 

42.7

%

40.7

%

Selling, general and administrative expenses (excluding corporate expenses)

 

$

45,098

 

$

35,063

 

Selling, general and administrative expenses (excluding corporate expenses) as a percentage of consulting fee revenue

 

32.9

%

28.6

%

Corporate expenses

 

$

7,561

 

$

7,396

 

Corporate expenses as a percentage of consulting fee revenue

 

5.5

%

6.0

%

Operating profit

 

$

6,000

 

7,399

 

Operating profit as a percent of consulting fee revenue

 

4.4

%

6.0

%

Effective income tax rate

 

68.3

%

98.0

%

 



 

Selected Balance Sheet Data

 

 

 

March 31, 2014

 

December 31, 2013

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

29,780

 

$

30,381

 

Accounts receivable, net

 

237,432

 

232,011

 

Current assets

 

297,268

 

297,893

 

Total assets

 

453,648

 

449,102

 

Current liabilities

 

179,498

 

151,515

 

Total debt

 

139,253

 

133,261

 

Stockholders’ equity:

 

 

 

 

 

Hill International, Inc. share of equity

 

134,005

 

131,144

 

Noncontrolling interests

 

12,405

 

11,887

 

Total equity

 

$

146,410

 

$

143,031

 

 

EBITDA Reconciliation

 

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the first quarter of 2014 were $8.2 million compared to $9.5 million in the first quarter of 2013.  EBITDA is not a measure of financial performance under generally accepted accounting principles (“GAAP”).  Management believes 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 flows from operations that are available for taxes, capital expenditures and debt service.  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.  A reconciliation of EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation S-K follows:

 

 

 

Three Months Ended March 31,

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Net income (loss) attributable to Hill International, Inc.

 

$

53

 

$

(380

)

Interest and related financing fees, net

 

5,076

 

5,487

 

Income tax expense

 

631

 

1,874

 

Depreciation and amortization

 

2,427

 

2,539

 

EBITDA

 

$

8,187

 

$

9,520