Hill International Reports Second Quarter and First Half 2011 Financial Results
Operating profit for the second quarter of 2011 was
The company's total backlog at
"Despite a small loss, we saw significant improvements in our business during the second quarter due to a substantial increase in our workload plus the results of our cost-cutting efforts," said
First Half 2011 Results
Total revenue for the first half of 2011 rose to
Operating loss for the first half of 2011 was (
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 the
Total revenue at the
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 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-G)
EARNINGS RELEASE TABLES
(In 000's, Except Per Share Data)
(Unaudited)
| Consolidated Statement of Operations | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Consulting fee revenue | $ 102,951 | $ 91,559 | $ 197,223 | $ 183,495 |
| Reimbursable expenses | 23,984 | 16,633 | 52,722 | 29,169 |
| Total revenue | 126,935 | 108,192 | 249,945 | 212,664 |
| Cost of services | 59,446 | 52,728 | 114,787 | 105,841 |
| Reimbursable expenses | 23,984 | 16,633 | 52,722 | 29,169 |
| Total direct expenses | 83,430 | 69,361 | 167,509 | 135,010 |
| Gross profit | 43,505 | 38,831 | 82,436 | 77,654 |
| Selling, general and administrative expenses | 42,838 | 34,820 | 87,065 | 71,765 |
| Equity in earnings of affiliates | (157) | (243) | (160) | (1,064) |
| Operating profit (loss) | 824 | 4,254 | (4,469) | 6,953 |
| Interest expense, net | 1,464 | 654 | 2,458 | 1,199 |
| (Loss) earnings before income tax | (640) | 3,600 | (6,927) | 5,754 |
| Income tax (benefit) expense | (444) | 429 | (1,354) | (40) |
| Consolidated net (loss) earnings | (196) | 3,171 | (5,573) | 5,794 |
| Less: net earnings - noncontrolling interests | 301 | 287 | 520 | 453 |
| Net (loss) earnings attributable to Hill International, Inc. | $ (497) | $ 2,884 | $ (6,093) | $ 5,341 |
| Basic (loss) earnings per common share - Hill International, Inc. | $ (0.01) | $ 0.07 | $ (0.16) | $ 0.13 |
| Basic weighted average common shares outstanding | 38,379 | 39,837 | 38,328 | 40,074 |
| Diluted (loss) earnings per common share - Hill International, Inc. | $ (0.01) | $ 0.07 | $ (0.16) | $ 0.13 |
| Diluted weighted average common shares outstanding | 38,379 | 40,380 | 38,328 | 40,656 |
| Selected Segment Data | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Project Management | ||||
| Consulting fee revenue | $74,239 | $70,235 | $144,087 | $137,564 |
| Total revenue | $97,567 | $86,220 | $195,491 | $165,312 |
| Gross profit | $27,830 | $27,321 | $54,069 | $51,667 |
| Gross profit as a percent of consulting fee revenue | 37.5% | 38.9% | 37.5% | 37.6% |
| Selling, general and administrative expenses | $23,966 | $18,530 | $47,450 | $38,624 |
| SG&A expenses as a percentage of consulting fee revenue | 32.3% | 26.4% | 32.9% | 28.1% |
| Operating profit before equity in earnings of affiliates | $3,865 | $8,791 | $6,619 | $13,043 |
| Equity in earnings of affiliates | $157 | $243 | $160 | $1,064 |
| Operating profit | $4,022 | $9,034 | $6,779 | $14,107 |
| Operating profit as a percent of consulting fee revenue | 5.4% | 12.9% | 4.7% | 10.3% |
| Construction Claims | ||||
| Consulting fee revenue | $28,712 | $21,324 | $53,136 | $45,931 |
| Total revenue | $29,368 | $21,972 | $54,454 | $47,352 |
| Gross profit | $15,675 | $11,510 | $28,367 | $25,987 |
| Gross profit as a percent of consulting fee revenue | 54.6% | 54.0% | 53.4% | 56.6% |
| Selling, general and administrative expenses | $12,006 | 9,987 | $25,433 | $20,243 |
| SG&A expenses as a percentage of consulting fee revenue | 41.8% | 46.8% | 47.9% | 44.1% |
| Operating profit | $3,669 | $1,523 | $2,934 | $5,744 |
| Operating profit as a percent of consulting fee revenue | 12.8% | 7.1% | 5.5% | 12.5% |
| Selected Other Financial Data | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Consulting fee revenue | $102,951 | $91,559 | $197,223 | $183,495 |
| Total revenue | $126,935 | $108,192 | $249,945 | $212,664 |
| Gross profit | $43,505 | $38,831 | $82,436 | $77,654 |
| Gross profit as a percentage of consulting fee revenue | 42.3% | 42.4% | 41.8% | 42.3% |
| Selling, general and administrative expenses (excluding corporate expenses) | $35,971 | $28,517 | $72,883 | $58,867 |
| Selling, general and administrative expenses (excluding corporate expenses) as a percentage of consulting fee revenue | 34.9% | 31.1% | 37.0% | 32.1% |
| Corporate expenses | $6,867 | $6,303 | $14,182 | $12,898 |
| Corporate expenses as a percentage of consulting fee revenue | 6.7% | 6.9% | 7.2% | 7.0% |
| Operating (loss) profit | $824 | $4,254 | $(4,469) | $6,953 |
| Operating (loss) profit as a percent of consulting fee revenue | 0.8% | 4.6% | (2.3)% | 3.8% |
| Effective income tax rate | 69.4% | 11.9% | 19.5% | (0.7)% |
| Selected Balance Sheet Data | ||
| June 30, 2011 | December 31, 2010 | |
| Cash and cash equivalents | $30,293 | $39,406 |
| Accounts receivable, net | $188,027 | $180,856 |
| Current assets | $238,846 | $237,466 |
| Total assets | $423,520 | $370,851 |
| Current liabilities | $190,884 | $104,465 |
| Total debt | $96,237 | $74,959 |
| Stockholders' equity: | ||
| Hill International, Inc. share of equity | $160,555 | $161,091 |
| Noncontrolling interest | $24,318 | $7,005 |
| Total equity | $184,873 | $168,096 |
EBITDA Reconciliation
(Unaudited)
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of 2011 were
| Three months ended June 30, | Six months ended June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Net (loss) earnings | $ (497) | $2,884 | $(6,093) | $5,341 |
| Interest expense, net | 1,464 | 654 | 2,458 | 1,199 |
| Income tax benefit | (444) | 429 | (1,354) | (40) |
| Depreciation and amortization | 4,033 | 2,348 | 7,135 | 4,542 |
| EBITDA | $4,556 | $6,315 | $2,146 | $11,042 |
CONTACT:Hill International, Inc. John P. Paolin Vice President ofMarketing and Corporate Communications (856) 810-6210 johnpaolin@hillintl.com TheEquity Group Inc. Devin Sullivan Senior Vice President (212) 836-9608 dsullivan@equityny.com
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