MARLTON, NJ - (GlobeNewswire via COMTEX News Network) - March 10, 2010
-- Hill International (NYSE:HIL), the global leader in managing
construction risk, announced today financial results for the full year
and fourth quarter ended December 31, 2009. Total revenue in 2009 rose
to $421.8 million, an increase of 10.9% over fiscal year 2008.
Consulting fee revenue for 2009 grew to $364.0 million, an increase of
9.0% over 2008. That percentage growth was comprised of 6.1% organic
growth and 2.9% growth from acquisitions.
Operating profit for
2009 grew to $26.5 million, an increase of 19.4% from 2008. Net
earnings for 2009 increased to $19.5 million (or $0.49 per diluted
share based on 40.1 million diluted shares), up 10.3% from $17.7
million (or $0.43 per diluted share based on 41.1 million diluted
shares) in 2008.
Total backlog at the end of 2009 increased to
$620 million, from $597 million at the end of the third quarter of
2009. Twelve-month backlog at the end of 2009 increased to $282
million, from $276 million at the end of the third quarter of 2009.
"We
are very pleased with Hill's financial performance during 2009,
especially given the challenges we faced from the global economic
crisis," said Irvin E. Richter, Hill's Chairman and Chief Executive
Officer.
"At the beginning of last year, we announced that we
expected Hill would have positive organic growth in consulting fees and
an improvement in earnings per share for 2009, despite the difficult
economy," said David L. Richter, Hill's President and Chief Operating
Officer. "We are proud that we were able to achieve both of those
goals," he added.
Fourth Quarter 2009 ResultsTotal
revenue for the fourth quarter of 2009 grew to $110.3 million, an
increase of 5.4% from the fourth quarter of 2008. Consulting fee
revenue for the fourth quarter of 2009 declined slightly to $93.6
million, a decrease of 1.6% from the fourth quarter of 2008. That
percentage decline was comprised of an organic 1.9% decrease in
consulting fees offset by 0.3% growth from an acquisition.
Operating
profit for the fourth quarter of 2009 nearly doubled to $7.5 million,
an increase of 98.6% from the fourth quarter of 2008. Net earnings for
the quarter rose sharply to $4.6 million (or $0.12 per diluted share
based on 39.6 million diluted shares), up 146.2% from $1.9 million (or
$0.05 per diluted share based on 40.7 million diluted shares) for the
fourth quarter of 2008.
Business Segment ResultsIn
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. Hill's Project
Management Group provides program management, project management,
construction management, project management oversight, troubled project
turnaround, staff augmentation, estimating and cost management, project
labor agreement consulting and management consulting services. Hill's
Construction Claims Group provides claims preparation, analysis and
review, litigation support, cost/damages assessment, delay/disruption
analysis, contract review, adjudication, risk assessment, lender
advisory and expert witness testimony services.
Project
Management Group. Total revenue for Hill's Project Management Group
during fiscal year 2009 grew to $332.0 million, an increase of 14.5%
over fiscal year 2008. Consulting fee revenue for 2009 at the Projects
Group rose to $276.8 million, an increase of 11.9% from 2008. That
percentage growth was comprised of 9.0% organic growth, primarily from
the Middle East and North Africa, and 2.9% growth from acquisitions.
Operating profit for the Projects Group in 2009 was $43.3 million, an
increase of 13.8% compared to 2008.
Total revenue for the
Projects Group during the fourth quarter of 2009 grew to $86.4 million,
an increase of 4.7% compared to the fourth quarter of 2008. Consulting
fee revenue in the fourth quarter of 2009 for the Projects Group
declined to $70.2 million, a decrease of 4.9% from the fourth quarter
of 2008. That percentage decline was comprised of an organic 5.2%
decrease, primarily in the Middle East and Europe partially offset by
growth in North Africa, and 0.3% growth from an acquisition. Operating
profit for the Projects Group in the fourth quarter of 2009 was $10.0
million, a drop of 8.6% compared to the fourth quarter of 2008.
Construction
Claims Group. Total revenue at Hill's Construction Claims Group during
fiscal year 2009 declined to $89.8 million, a decrease of 0.8% from
fiscal year 2008. Consulting fee revenue in 2009 for the Claims Group
increased to $87.2 million, an increase of 0.7% from 2008. That
percentage change was comprised of an organic 2.3% decrease offset by
3.0% growth from acquisitions. Operating profit for the Claims Group in
2009 was $8.3 million, a decrease of 12.7% from 2008.
Total
revenue for the Claims Group in the fourth quarter of 2009 increased to
$23.9 million, an increase of 8.3% over the fourth quarter of 2008.
Consulting fee revenue for the Claims Group in the fourth quarter of
2009 increased to $23.4 million, an increase of 9.7% over the fourth
quarter of 2008. That percentage change was all organic, primarily from
growth in the Middle East and Europe. Operating profit for the Claims
Group in the fourth quarter of 2009 was $2.9 million, a jump of 120.6%
from the fourth quarter of 2008.
Achievement of 2009 Earn-out The
Agreement and Plan of Merger, dated December 5, 2005, as amended (the
"Merger Agreement"), between Hill and Arpeggio Acquisition Corporation
provides for certain stockholders of Hill to receive up to an
additional 6,600,000 shares of the combined company's common stock,
contingent upon the combined company attaining certain targets for
earnings before interest and taxes ("EBIT") over a four-year period.
Hill's EBIT for the fiscal year ended December 31, 2009 was $25.8
million and the target for the 2009 earn-out was $24.9 million.
Therefore, the contingent shares for 2009 have been earned and an
additional 1,000,000 shares of Hill's common stock are expected to be
issued during the second quarter of 2010. There are no further
contingent shares that can be earned pursuant to the Merger Agreement.
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 Thursday, March 11, 2010, at 11:00 am
Eastern Time to discuss the financial results for the fourth quarter
and year ended December 31, 2009. Interested parties may participate in
the call by dialing (888) 787-0460 (Domestic) or (706) 679-3200
(International) approximately 10 minutes before the call is scheduled
to begin and asking to be connected to the Hill International
conference call. The conference call will 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 "Presentations 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 conference call, it will be archived and can be accessed
for approximately 90 days.
About Hill International Hill
International, with 2,400 employees in 80 offices worldwide, provides
program management, project management, construction management, and
construction claims and consulting services. Engineering News-Record
magazine recently ranked Hill as the 8th largest construction
management firm in the United States.
For more information on Hill,
please visit our website at www.hillintl.com.
The Hill International, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5733
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 Securities and Exchange
Commission. We do not intend, and undertake no obligation, to update
any forward-looking statement.
(HIL-G)
HILL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In 000's, Except Per Share Data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------------------- ---------------------------
2009 2008 2009 2008
----------- --------------- ---------- ---------------
(Revised)(1)(2) (Revised)(1)(2)
Consulting fee revenue $ 93,623 $ 95,180 $ 364,010 $ 333,882
Reimbursable expenses 16,687 9,429 57,772 46,600
----------- --------------- ---------- ---------------
Total revenue 110,310 104,609 421,782 380,482
----------- --------------- ---------- ---------------
Direct expenses 52,540 51,624 209,052 183,485
Reimbursable expenses 16,687 9,429 57,772 46,600
----------- --------------- ---------- ---------------
Total direct expenses 69,227 61,053 266,824 230,085
----------- --------------- ---------- ---------------
Gross profit 41,083 43,556 154,958 150,397
Selling, general and administrative
expenses 34,420 40,447 136,683 131,857
Equity in earnings of affiliates (832) (664) (8,222) (3,658)
----------- --------------- ---------- ---------------
Operating profit 7,495 3,773 26,497 22,198
Interest expense (income), net 693 183 1,737 (134)
----------- --------------- ---------- ---------------
Earnings before provision for income
taxes 6,802 3,590 24,760 22,332
Provision for income taxes 2,206 1,556 4,577 3,654
----------- --------------- ---------- ---------------
Consolidated net earnings 4,596 2,034 20,183 18,678
Less: net earnings -- noncontrolling
interests (1) 33 181 713 1,027
----------- --------------- ---------- ---------------
Net earnings attributable to Hill
International, Inc.(1) $ 4,563 $ 1,853 $ 19,470 $ 17,651
=========== =============== ========== ===============
Basic earnings per common share $ 0.12 $ 0.05 $ 0.49 $ 0.43
=========== =============== ========== ===============
Basic weighted average common shares
outstanding 38,912 40,657 39,659 40,809
=========== =============== ========== ===============
Diluted earnings per common share $ 0.12 $ 0.05 $ 0.49 $ 0.43
=========== =============== ========== ===============
Diluted weighted average common
shares outstanding 39,630 40,665 40,124 41,148
=========== =============== ==========
===============
(1)
Effective January 1, 2009, the company adopted an accounting standard
which requires the amount of consolidated net income attributable to
the parent and noncontrolling interests (formerly minority interests)
to be clearly identified and presented on the face of the consolidated
income statement, with retroactive adoption of its presentation
requirements.
(2) During 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 fourth quarter and year
ended December 31, 2008 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 $214 and $757 for the fourth quarter and
year ended December 31, 2008, respectively. There was no effect on
operating profit or net earnings.
HILL INTERNATIONAL, INC. AND SUBSIDIARIES
Selected Segment Data
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
----------------------- -------------------------
2009 2008 2009 2008
--------- ------------ ----------- ------------
(in thousands) (Revised)(1) (Revised)(1)
Project Management
Consulting fee revenue $ 70,217 $ 73,843 $ 276,811 $ 247,326
Total revenue $ 86,375 $ 82,503 $ 331,987 $ 289,933
Gross profit $ 27,707 $ 31,730 $ 108,362 $ 101,126
Gross profit margin 39.5% 43.0% 39.1% 40.9%
Depreciation and
amortization $ 1,118 $ 1,360 $ 4,139 $ 3,625
Operating profit before
equity in earnings of
affiliates $ 9,177 $ 10,284 $ 35,095 $ 34,419
Equity in earnings of
affiliates 832 664 8,222 3,658
--------- ------------ ----------- ------------
Operating profit $ 10,009 $ 10,948 $ 43,317 $ 38,077
Operating profit margin 14.3% 14.8% 15.6% 15.4%
Construction Claims
Consulting fee revenue $ 23,406 $ 21,337 $ 87,199 $ 86,556
Total revenue $ 23,935 $ 22,106 $ 89,795 $ 90,549
Gross profit $ 13,376 $ 11,826 $ 46,596 $ 49,271
Gross profit margin 57.1% 55.4% 53.4% 56.9%
Depreciation and
amortization $ 583 $ 597 $ 2,294 $ 2,060
Operating profit $ 2,939 $ 1,332 $ 8,277 $ 9,480
Operating profit margin 12.6% 6.2% 9.5% 11.0%
(1)
During 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
fourth quarter and year ended December 31, 2008 have been revised. The
result of this change decreased Project Management gross profit by $126
and $460 for the fourth quarter and year ended December 31, 2008,
respectively, and decreased Construction Claims gross profit by $88 and
$297 for the fourth quarter and year ended December 31, 2008,
respectively. There was no effect on operating profit.
HILL INTERNATIONAL, INC. AND SUBSIDIARIES
Selected Other Financial Data
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
--------------------------- ----------------------------
2009 2008 2009 2008
---------- --------------- ----------- ------------------
(in thousands) (Revised)(1)(2) (Revised)(1)(2)
Consulting fee revenue $ 93,623 $ 95,180 $ 364,010 $ 333,882
Total revenue $ 110,310 $ 104,609 $ 421,782 $ 380,482
Gross profit $ 41,083 $ 43,556 $ 154,958 $ 150,397
Gross profit as a percent of
consulting fee revenue 43.9% 45.8% 42.6% 45.0%
Selling, general and
administrative expenses
(excluding
Corporate expenses) $ 28,965 $ 31,687 $ 111,585 $ 106,498
Selling, general and
administrative expenses
(excluding
Corporate expenses) as a
percentage of consulting
fee revenue 30.9% 33.3% 30.7% 31.9%
Corporate expenses $ 5,455 $ 8,760 $ 25,098 $ 25,359
Corporate expenses as a
percent of consulting fee
revenue 5.8% 9.2% 6.9% 7.6%
Operating profit $ 7,495 $ 3,773 $ 26,497 $ 22,198
Operating profit as a percent
of consulting fee revenue 8.0% 4.0% 7.3% 6.6%
Effective income tax rate 32.4% 43.3% 18.5% 16.4%
1)
Effective January 1, 2009, the company adopted an accounting standard
which requires the amount of consolidated net income attributable to
the parent and noncontrolling interests (formerly minority interests)
to be clearly identified and presented on the face of the consolidated
income statement, with retroactive adoption of its presentation
requirements. The new presentation changed the 2008 effective income
tax benefit rate.
(2) During 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 fourth quarter and year
ended December 31, 2008 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 $214 and $757 for the fourth quarter and
year ended December 31, 2008, respectively. There was no effect on
operating profit or net earnings.
HILL INTERNATIONAL, INC. AND SUBSIDIARIES
Selected Balance Sheet Data
(Unaudited)
December December 31,
31, 2009 2008
----------- ------------
(in thousands) (Unaudited) (Revised)(1)
Cash and cash equivalents $ 30,923 $ 20,430
Accounts receivable, net $ 130,900 $ 118,124
Current assets $ 183,602 $ 161,492
Total assets $ 291,539 $ 254,041
Current liabilities $ 82,657 $ 80,563
Total debt $ 28,244 $ 18,887
Stockholders' equity $ 159,640 $ 139,016
(1)
Effective January 1, 2009, the company adopted an accounting standard
which requires that the ownership interests in subsidiaries held by
parties other than the parent to be presented within the equity section
of the consolidated balance sheet. The amount formerly captioned as
minority interests in the 2008 consolidated balance sheet has been
reclassified to stockholders' equity as noncontrolling interests.
EBITDA Reconciliation
(Unaudited)
EBITDA
(earnings before interest, taxes, depreciation and amortization) for
the fourth quarter of 2009 rose to $9.4 million, an increase of 63.9%
from the fourth quarter of 2008. 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 and capital expenditures.
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 Year Ended
December 31, December 31,
------------------ --------------------
2009 2008 2009 2008
-------- -------- --------- ------------
(in thousands)
Net income attributable to Hill $ 4,563 $ 1,853 $ 19,470 $ 17,651
Interest expense (income), net 693 183 1,737 (134)
Income taxes 2,206 1,556 4,577 3,654
Depreciation and amortization 1,929 2,137 7,343 6,385
-------- -------- --------- ------------
EBITDA $ 9,391 $ 5,729 $ 33,127 $ 27,556
======== ======== ========= ============
This news release was distributed by GlobeNewswire, www.globenewswire.com Source: Hill International, Inc.
Contact: Hill International, Inc.
John P. Paolin, Vice President of Marketing
and Corporate Communications
(856) 810-6210
johnpaolin@hillintl.comThe Equity Group Inc.
Devin Sullivan, Senior Vice President
(212) 836-9608
dsullivan@equityny.com(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
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