Hill International Reports Fourth Quarter and Full Year 2012 Financial Results
Total revenue for the fourth quarter of 2012 was
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2012 were
During the fourth quarter of 2012, there were non-cash charges totaling
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$17.7 million as a result of a reserve on the entire valuation of Hill's U.S. deferred tax asset; -
$4.0 million as a result of a reserve taken in connection with contingent employment tax liability for certain foreign subsidiaries; -
$1.0 million in connection with the termination of operations by the company's majority-owned subsidiaryHillStone International, LLC ; -
$0.2 million as a result of the write-off of an investment in a terminatedMiddle East real estate development joint venture; and -
$0.2 million as a result of a litigation settlement in connection with a terminated U.S. real estate development joint venture.
Excluding the impact of the above non-cash charges, for the fourth quarter of 2012 EBITDA would have been
The company's total backlog at
"In 2012, we had our most successful year ever in the history of the company with respect to winning new work, and our record fourth quarter consulting fees and record year-end backlog reflect that," said
Full Year 2012 Results
Total revenue for 2012 was
EBITDA for 2012 was
Excluding the impact of the non-cash charges discussed above, for 2012 EBITDA would have been $20.0 million, operating profit would have been $9.7 million and net loss would have been (
Business Segment Results
In addition to providing consolidated financial results, Hill also reports separate financial results for its two operating segments: the
Total revenue at Hill's
Total revenue at the
Total revenue at Hill's
Total revenue at the
The non-cash charges discussed above had no impact on the operating profit of the
2013 Guidance
Based on current market conditions and the backlog amounts discussed above, the company estimates that consulting fee revenue for 2013 will be between
Conference Call
About
The
Forward-Looking Statements
Certain statements contained in this press release 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 contained in this press release, 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 include: modifications and termination of client contracts; control and operational issues pertaining to business activities that we conduct on our own behalf or pursuant to joint ventures with other parties; difficulties we may incur in implementing our acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in
the reports we have filed with the
(HIL-F)
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| EARNINGS RELEASE TABLES | ||||
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Consolidated Statement of Operations |
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Three Months Ended |
Years Ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Consulting fee revenue |
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| Reimbursable expenses | 14,886 | 23,065 | 63,183 | 102,202 |
| Total revenue | 125,653 | 122,633 | 480,781 | 501,456 |
| Cost of services | 62,850 | 54,407 | 239,572 | 227,991 |
| Reimbursable expenses | 14,886 | 23,065 | 63,183 | 102,202 |
| Total direct expenses | 77,736 | 77,472 | 302,755 | 330,193 |
| Gross profit | 47,917 | 45,161 | 178,026 | 171,263 |
| Selling, general and administrative expenses | 48,220 | 46,438 | 172,779 | 175,312 |
| Equity in earnings of affiliates | -- | (2) | -- | (190) |
| Operating profit (loss) | (303) | (1,275) | 5,247 | (3,859) |
| Interest and related financing fees, net | 5,402 | 2,882 | 18,150 | 7,262 |
| Loss before income taxes | (5,705) | (4,157) | (12,903) | (11,121) |
| Income tax expense (benefit) | 16,063 | (4,411) | 13,442 | (6,186) |
| Net (loss) earnings | (21,768) | 254 | (26,345) | (4,935) |
| Less: net earnings - noncontrolling interest | 693 | 832 | 1,872 | 1,082 |
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Net loss attributable to |
$ (22,461) | $ (578) | $ (28,217) | $ (6,017) |
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Basic loss per common share - |
$ (0.58) | $ (0.02) | $ (0.73) | $ (0.16) |
| Basic weighted average common shares outstanding | 38,657 | 38,500 | 38,500 | 38,414 |
| Diluted loss per common share -- Hill International, Inc. | $ (0.58) | $ (0.02) | $ (0.73) | $ (0.16) |
| Diluted weighted average common shares outstanding | 38,657 | 38,500 | 38,500 | 38,414 |
| Selected Segment Data | ||||
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Three Months Ended |
Years Ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Project Management | ||||
| Consulting fee revenue |
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| Total revenue |
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| Gross profit |
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| Gross profit as a percent of consulting fee revenue | 39.4% | 41.7% | 38.3% | 38.7% |
| Selling, general and administrative expenses |
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| SG&A expenses as a percentage of consulting fee revenue | 34.0% | 33.6% | 30.9% | 32.6% |
| Operating profit before equity in earnings of affiliates |
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| Equity in earnings of affiliates | $ -- | $ 2 | $ -- | $ 190 |
| Operating profit |
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| Operating profit as a percent of consulting fee revenue | 5.5% | 8.1% | 7.5% | 6.1% |
| Construction Claims | ||||
| Consulting fee revenue |
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| Total revenue |
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| Gross profit |
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| Gross profit as a percent of consulting fee revenue | 55.8% | 55.7% | 55.4% | 54.2% |
| Selling, general and administrative expenses |
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| SG&A expenses as a percentage of consulting fee revenue | 49.1% | 47.3% | 47.8% | 45.5% |
| Operating profit |
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| Operating profit as a percent of consulting fee revenue | 6.6% | 8.4% | 7.7% | 8.7% |
| Selected Other Financial Data | ||||
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Three Months Ended |
Years Ended |
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| 2012 | 2011 | 2012 | 2011 | |
| Consulting fee revenue |
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| Total revenue |
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| Gross profit |
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| Gross profit as a percentage of consulting fee revenue | 43.3% | 45.4% | 42.6% | 42.9% |
| Selling, general and administrative expenses (excluding corporate expenses) |
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| Selling, general and administrative expenses (excluding corporate expenses) as a percentage of consulting fee revenue | 37.5% | 37.2% | 35.1% | 36.1% |
| Corporate expenses |
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| Corporate expenses as a percentage of consulting fee revenue | 6.0% | 9.5% | 6.2% | 7.8% |
| Operating profit (loss) | $ (303) | $ (1,275) |
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$ (3,859) |
| Operating profit (loss) as a percent of consulting fee revenue | (0.3) % | (1.3) % | 1.3% | (1.0) % |
| Effective income tax rate | NM | NM | (104.2)% | 55.6% |
| Selected Balance Sheet Data | ||
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| Cash and cash equivalents |
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| Accounts receivable, net | 211,176 | 197,906 |
| Current assets | 257,270 | 231,833 |
| Total assets | 421,673 | 407,512 |
| Current liabilities | 150,135 | 108,800 |
| Total debt | 109,456 | 94,759 |
| Stockholders' equity: | ||
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127,546 | 154,136 |
| Noncontrolling interests | 13,557 | 18,258 |
| Total equity |
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EBITDA Reconciliation
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the fourth quarter of 2012 were
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Three Months Ended |
Years Ended |
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| 2012 | 2011 | 2012 | 2011 | |
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Net loss attributable to |
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$ (578) |
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| Interest and related financing fees, net | 5,402 | 2,882 | 18,150 | 7,262 |
| Income tax expense (benefit) | 16,063 | (4,411) | 13,442 | (6,186) |
| Depreciation and amortization | 3,185 | 4,425 | 12,430 | 15,640 |
| EBITDA |
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CONTACT:Hill International, Inc. John P. Paolin Senior Vice President ofMarketing and Corporate Communications (856) 810-6210 johnpaolin@hillintl.comThe Equity Group Inc. Devin Sullivan Senior Vice President (212) 836-9608 dsullivan@equityny.com
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