Hill International Reports Third Quarter and First Nine Months 2010 Financial Results
Operating profit for the third quarter of 2010 was
Total backlog at the end of the third quarter of 2010 increased to
"We are pleased with Hill's financial performance during the third quarter," said
First Nine Months 2010 Results
Total revenue for the first nine months of 2010 rose to
Operating profit for the first nine months of 2010 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 for the
Total revenue at the
Total revenue for the
Total revenue at the
Stock Repurchase Program
During the third quarter of 2010, Hill purchased approximately 631,000 shares of its common stock pursuant to its previously authorized
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)
HILL INTERNATIONAL, INC. AND SUBSIDIARIES | ||||
EARNINGS RELEASE TABLES | ||||
(In 000's, Except Per Share Data) | ||||
(Unaudited) | ||||
Consolidated Statements of Earnings | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2010 | 2009 | 2010 | 2009 | |
(Revised)(1) | (Revised)(1) | |||
Consulting fee revenue | $97,401 | $86,697 | $280,896 | $270,388 |
Reimbursable expenses | 13,623 | 16,498 | 42,792 | 41,085 |
Total revenue | 111,024 | 103,195 | 323,688 | 311,473 |
Cost of services(1) | 53,676 | 51,148 | 159,518 | 156,511 |
Reimbursable expenses | 13,623 | 16,498 | 42,792 | 41,085 |
Total direct expenses(1) | 67,299 | 67,646 | 202,310 | 197,596 |
Gross profit(1) | 43,725 | 35,549 | 121,378 | 113,877 |
Selling, general and administrative expenses(1) | 37,773 | 31,312 | 109,537 | 102,264 |
Equity in earnings of affiliates | (369) | (3,931) | (1,434) | (7,390) |
Operating profit | 6,321 | 8,168 | 13,275 | 19,003 |
Interest expense, net | 1,003 | 511 | 2,202 | 1,043 |
Earnings before provision for income taxes | 5,318 | 7,657 | 11,073 | 17,960 |
Provision (benefit) for income taxes | -- | 1,636 | (40) | 2,370 |
Consolidated net earnings | 5,318 | 6,021 | 11,113 | 15,590 |
Less: net earnings — noncontrolling interests | 218 | 189 | 672 | 680 |
Net earnings attributable to Hill International, Inc. | $5,100 | $5,832 | $10,441 | $14,910 |
Basic earnings per common share | $0.13 | $0.15 | $0.26 | $0.37 |
Basic weighted average common shares outstanding | 38,673 | 38,839 | 39,602 | 39,911 |
Diluted earnings per common share | $0.13 | $0.15 | $0.26 | $0.37 |
Diluted weighted average common shares outstanding | 39,123 | 39,466 | 40,149 | 40,292 |
(1) In the fourth quarter of 2009, the Company began charging a portion of depreciation and amortization expense, which had previously been reflected in selling, general and administrative expenses, to cost of services. As a result, the consolidated statements of earnings for the third quarter and nine months ended September 30, 2009 have been revised to reflect the new accounting procedure. The result of this change increased direct expenses, decreased gross profit and decreased selling, general and administrative expenses by $224,000and $643,000 for the third quarter and nine months ended September 30, 2009, respectively. There was no effect on operating profit or net earnings. |
Selected Segment Data | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2010 | 2009 | 2010 | 2009 | |
Project Management | ||||
Consulting fee revenue | $72,859 | $65,255 | $210,423 | $206,595 |
Total revenue | $85,483 | $81,092 | $250,795 | $245,613 |
Gross profit(1) | $30,276 | $24,759 | $81,945 | $80,656 |
Gross profit as a percent of consulting fee revenue | 41.6% | 37.9% | 38.9% | 39.0% |
Selling, general and administrative expenses(1) | $19,890 | $16,594 | $58,514 | $54,729 |
SG&A expenses as a percent of consulting fee revenue | 27.3% | 25.4% | 27.8% | 26.5% |
Operating profit before equity in earnings of affiliates | $10,386 | $8,165 | $23,431 | $25,927 |
Equity in earnings of affiliates | 369 | 3,931 | 1,434 | 7,390 |
Operating profit | $10,755 | $12,096 | $24,865 | $33,317 |
Operating profit as a percent of consulting fee revenue | 14.8% | 18.5% | 11.8% | 16.1% |
Construction Claims | ||||
Consulting fee revenue | $24,542 | $21,442 | $70,473 | $63,793 |
Total revenue | $25,541 | $22,103 | $72,893 | $65,860 |
Gross profit | $13,449 | $10,790 | $39,433 | $33,221 |
Gross profit as a percent of consulting fee revenue | 54.8% | 50.3% | 56.0% | 52.1% |
Selling, general and administrative expenses(1) | $11,018 | $9,010 | $31,260 | $28,234 |
SG&A expenses as a percent of consulting fee revenue | 44.9% | 42.0% | 44.4% | 44.3% |
Operating profit | $2,431 | $1,780 | $8,175 | $4,987 |
Operating profit as a percent of consulting fee revenue | 9.9% | 8.3% | 11.6% | 7.8% |
(1) In the fourth quarter of 2009, the Company began charging a portion of depreciation and amortization expense, which had previously been reflected in selling, general and administrative expenses, to cost of services. As a result, the consolidated statements of earnings for the third quarter and nine months ended September 30, 2009 have been revised to reflect the new accounting procedure. The result of this change increased direct expenses, decreased gross profit and decreased selling, general and administrative expenses for Project Management by $140,000 and for Construction Claims by $84,000 for the third quarter ended September 30, 2009 and by $396,000 and $246,000, respectively, for the nine months ended September 30, 2009. |
Selected Other Financial Data | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2010 | 2009 | 2010 | 2009 | |
(Revised)(1) | (Revised)(1) | |||
Consulting fee revenue | $97,401 | $86,697 | $280,896 | $270,388 |
Total revenue | $111,024 | $103,195 | $323,688 | $311,473 |
Gross profit | $43,725 | $35,549 | $121,378 | $113,877 |
Gross profit as a percent of consulting fee revenue | 44.9% | 41.0% | 43.2% | 42.1% |
Selling, general and administrative expenses (excluding Corporate expenses) |
$30,908 | $25,604 | $89,772 | $82,963 |
Selling, general and administrative expenses (excluding Corporate expenses) as a percentage of consulting fee revenue |
31.7% | 29.5% | 32.0% | 30.7% |
Corporate expenses | $6,865 | $5,708 | $19,765 | $19,301 |
Corporate expenses as a percent of consulting fee revenue | 7.0% | 6.6% | 7.0% | 7.1% |
Operating profit | $6,321 | $8,168 | $13,275 | $19,003 |
Operating profit as a percent of consulting fee revenue | 6.5% | 9.4% | 4.7% | 7.0% |
Effective income tax rate | 0.0% | 21.4% | (0.4%) | 13.2% |
(1) In the fourth quarter of 2009, the Company began charging a portion of depreciation and amortization expense, which had previously been reflected in selling, general and administrative expenses, to cost of services. As a result, the consolidated statements of earnings for the third quarter and nine months ended September 30, 2009 have been revised to reflect the new accounting procedure. The result of this change increased direct expenses, decreased gross profit and decreased selling, general and administrative expenses (excluding corporate expenses) by $224,000 and $643,000 for the third quarter and nine months ended September 30, 2009, respectively. There was no effect on operating profit or net earnings. |
Selected Balance Sheet Data | ||
September 30, 2010 | December 31, 2009 | |
Cash and cash equivalents | $34,289 | $30,923 |
Accounts receivable, net | $165,580 | $130,900 |
Current assets | $217,399 | $183,602 |
Total assets | $341,063 | $291,539 |
Current liabilities | $97,190 | $82,657 |
Total debt | $63,183 | $28,244 |
Stockholders' equity | $161,867 | $159,640 |
EBITDA Reconciliation
EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of 2010 was
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2010 | 2009 | 2010 | 2009 | |
Net income attributable to Hill | $5,100 | $5,832 | $10,441 | $14,910 |
Interest expense, net | 1,003 | 511 | 2,202 | 1,043 |
Income taxes expense (benefit) | -- | 1,636 | (40) | 2,370 |
Depreciation and amortization | 2,579 | 1,900 | 7,121 | 5,414 |
EBITDA | $8,682 | $9,879 | $19,724 | $23,737 |
CONTACT:Hill International, Inc. John P. Paolin , 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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