| Restatement of Previously Reported Consolidated Financial Statements | Note 2 — Restatement of Previously Reported Consolidated Financial Statements
As previously disclosed in the Company’s Current Report on Form 8-K filed on September 21, 2017, the Board of Directors (the “Board”) of the Company, upon the recommendation of the Audit Committee of the Board, determined that the Company’s previously issued financial statements for each of the years ended December 31, 2016, 2015 and 2014 and each of the quarters ended March 31, June 30, and September 30, 2016 and 2015 included in the Company’s Annual Reports on Form 10-K and each of the Quarterly Reports on Form 10-Q for such periods as well as the Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 (collectively, the “Non-Reliance Periods”) can no longer be relied upon. In connection with the accounting for the May 2017 sale of the Construction Claims Group, the Company discovered a number of errors related to its application of generally accepted accounting principles in the United States (“US GAAP”) and computational errors. This Note 2 to the consolidated financial statements discloses the nature of the restatement matters and their impact on the consolidated financial statements for each of the years ended December 31, 2016, 2015 and 2014. Restated unaudited quarterly financial data for the interim periods in fiscal years 2016 and 2015 is presented in the “Quarterly Results (Unaudited)” section below and is, collectively with the restated annual information, referred to as the Restatement.
The following errors were identified as part of the Restatement:
A. In connection with the accounting for the May 2017 sale of its Construction Claims Group, the Company determined that it had not previously accounted for certain foreign currency gains/losses on intercompany balances and transactions in accordance with US GAAP. The Company improperly accounted for the foreign currency effect of certain transactions as if they were long-term investments by including the foreign currency effect in accumulated other comprehensive income instead of properly recording the effect as operating expenses as required under Accounting Standard Codification (ASC) 830 “Foreign Currency Matters.” The correction of the errors resulted in a reduction to retained earnings of $48,415,000, $36,784,000 and $22,867,000 at December 31, 2016, 2015 and 2014, respectively; a reduction to accumulated other comprehensive loss of $48,415,000, $38,532,000 and $21,986,000 at December 31, 2016, 2015 and 2014, respectively; a decrease of $1,748,000 and an increase of $880,000 in noncontrolling interest at December 31, 2015 and 2014, respectively; an increase to SG&A expenses of $11,818,000, $14,087,000 and $5,291,000 in 2016, 2015 and 2014, respectively; a $172,000 and $170,000 decrease in income tax expense in 2016 and 2015, respectively; and net loss from discontinued operations decreased $16,000 in 2016.
B. The Company identified departures from US GAAP under ASC 605-35 “Construction-Type and Production-Type Contracts” in its historical accounting for revenue recognition on nine long-term customer contracts with fee constraints (e.g., fixed fee, lump sum, maximum contract value). The Company enters into agreements for construction management and consulting services with customers, and the guidance of ASC 605-35-15-3D states that contracts for construction consulting services, such as under agency contracts or construction management agreements, fall within the scope of the standard and should follow either Percentage of Completion or Completed Contract methods of accounting. Historically, the Company had not consistently applied the percentage of completion method of revenue recognition. The correction to properly apply U.S. GAAP to the identified contracts resulted in a reduction of $4,052,000, a reduction of $6,474,000 and an increase of $705,000 to revenues in 2016, 2015 and 2014, respectively; increases of $290,000, $168,000 and $705,000 in accounts receivable at December 31, 2016, 2015 and 2014, respectively; an increase in deferred revenue of $10,113,000 and $5,936,000 at December 31, 2016 and 2015, respectively; and an increase in accumulated other comprehensive loss of $2,000 and a decrease of $1,000 at December 31, 2016 and 2015, respectively.
C. The Company discovered that it had not properly performed the required impairment testing of amortizable intangible assets in accordance with US GAAP in that certain assets no longer in use were not identified and impaired. In addition, an improper useful life was used for some of the Company’s internally developed software assets resulting in an improper amount of amortization expense being recorded in previous periods. The net effect of correcting these errors resulted in a $398,000 and $159,000 decrease in property plant and equipment at December 31, 2016 and 2015, respectively; a $741,000, $895,000 and $1,136,000 decrease in acquired intangibles at December 31, 2016, 2015 and 2014, respectively; a $223,000, $195,000 and $83,000 decrease in accumulated other comprehensive loss at December 31, 2016, 2015 and 2014, respectively; and a $112,000 increase, a $32,000 increase and a $153,000 decrease in SG&A expense in 2016, 2015 and 2014 respectively.
D. The Company discovered that the amounts of liabilities pertaining to the obligation for end of service benefits in certain foreign countries were improperly accounted for under the guidance in ASC 715 “Compensation — Retirement Benefits”. The net effect of the corrections of these errors resulted in decreases in other liabilities of $349,000 and $372,000 at December 31, 2016 and 2015, respectively; an increase in liabilities held for sale of $457,000 at December 31, 2016; a decrease in accumulated other comprehensive loss of $1,000 at December 31, 2015 a $23,000 increase and $371,000 decrease in SG&A expenses for 2016 and 2015, respectively and a $457,000 increase in the loss from discontinued operations for the year ended December 31, 2016.
E. The Company determined the accrual for uncertain tax benefits taken with respect to income tax matters in Libya had been improperly released during 2013 and 2014, during the period of civil unrest in that country, prior to the expiration of the statute of limitations on the Libyan tax authority’s right to audit the related tax years. The correction of these errors resulted in an increase of $4,252,000, $4,789,000 and $4,818,000 in other liabilities at December 31, 2016, 2015 and 2014 respectively; a decrease of $851,000, $501,000 and $309,000 in accumulated other comprehensive loss at December 31, 2016, 2015 and 2014, respectively; and a $187,000 decrease, $162,000 increase and $2,824,000 increase in income tax expense for 2016, 2015 and 2014, respectively.
F. The Company identified other transactions that had been recorded to incorrect accounts and/or in improper amounts. The net corrections of these transactions resulted in a $783,000 decrease, $1,342,000 decrease and $889,000 increase in revenue in 2016, 2015 and 2014, respectively; a decrease in SG&A expense of $3,916,000, $790,000 and $952,000 in 2016, 2015 and 2014, respectively; a decrease of $2,720,000, $1,050,000 and $1,714,000 in net earnings from discontinued operations in 2016, 2015 and 2014, respectively; decreases of $614,000, $62,000 and $560,000 in income tax expense during 2016, 2015 and 2014, respectively; a $60,000 decrease, a $15,000 and $3,000 increase in income from noncontrolling interest for the years ended December 31, 2016, 2015 and 2014, respectively; a $3,964,000 increase in accounts receivable-affiliates at December 31, 2015; a decrease of $80,000, a decrease of $3,442,000 and an increase of $1,586,000 in investments at December 31, 2016, 2015 and 2014, respectively; an increase of $747,000 and $896,000 in assets held for sale at December 31, 2016 and 2015, respectively; a $1,688,000, $1,698,000 and $1,127,000 increase in accounts payable and accrued expenses at December 31, 2016, 2015 and 2014, respectively; an $11,000 decrease in other current liabilities at December 31, 2016; a $2,322,000 and $147,000 decrease in current liabilities held for sale, at December 31, 2016 and 2015, respectively; a $971,000, $461,000 and $800,000 decrease in other liabilities at December 31, 2016, 2015 and 2014, respectively; an increase of $1,717,000, $1,358,000 and $801,000 in liabilities held for sale at December 31, 2016, 2015 and 2014, respectively; a $329,000, increase in additional paid in capital at December 31, 2016 and 2015; a decrease in other comprehensive loss of $644,000, $76,000 and $26,000 at December 31, 2016, 2015 and 2014, respectively; and a $22,000 decrease, $38,000 and $352,000 increase in noncontrolling interest at December 31, 2016, 2015 and 2014, respectively. In conjunction with the sale of the construction claims group in 2016, interest expense of $1,661,000, $1,585,000 and $1,535,000 for the years ended December 31, 2016, 2015 and 2014, respectively, was reclassified from discontinued operations to continuing operations. In addition, the adjustment to correct forfeitures resulted in a $331,000 increase in retained earnings, a $331,000 decrease in additional paid in capital, a $76,000 decrease in selling, general and administrative expenses as of and for the year ended December 31, 2016.
G. Some of the corrections noted above impacted earnings (loss) before taxes which, in turn, required a calculation of the tax impact. The net impact was a $1,003,000 increase, $1,518,000 decrease and $1,118,000 decrease in deferred income tax assets at December 31, 2016, 2015 and 2014, respectively; a decrease in income taxes receivable of $507,000 and an increase in current assets held for sale of $507,000 at December 31, 2016; a decrease of $1,954,000, $1,305,000 and $1,477,000 in non-current assets held for sale at December 31, 2016, 2015 and 2014, respectively; income tax payable decreased $441,000, $3,000 and $403,000 at December 31, 2016, 2015 and 2014, respectively; an increase in current liabilities held for sale of $507,000 at December 31, 2016; deferred income taxes increased $25,000, $44,000 and $3,080,000 at December 31, 2016, 2015 and 2014, respectively; liabilities held for sale decreased $1,766,000, $1,031,000 and $1,340,000 at December 31, 2016, 2015 and 2014, respectively; accumulated other comprehensive loss increased $415,000, $3,029,000 and $1,416,000 at December 31, 2016, 2015 and 2014, respectively; income tax expense increased $860,000, decreased $562,000 and increased $221,000 in 2016, 2015 and 2014, respectively; and net earnings from discontinued operations increased $800,000, decreased $225,000 and increased $265,000 in 2016, 2015 and 2014, respectively.
At December 31, 2014, deferred income tax assets and deferred tax liabilities were netted to conform to current period presentation. This resulted in $15,385,000 decrease in deferred income taxes and, a $18,762,000 decrease in deferred income taxes.
The Restatement includes the net effect of adjustments to opening retained earnings and opening accumulated other comprehensive income as of January 1, 2014, which adjustment reflects the impact of the Restatement on periods prior to 2014. The cumulative effect of those adjustments decreased previously reported retained earnings by approximately $21,037,000, decreased accumulated other comprehensive loss by approximately $16,819,000, increased non-controlling interests by approximately $1,007,000 and decreased total stockholders’ equity by approximately $3,211,000 as of December 31, 2013. The table below summarizes the effects of the cumulative Restatement adjustments recorded to all periods prior to January 1, 2014 on previously reported retained earnings, accumulated other comprehensive income and Non-controlling Interests (in thousands):
December 31, 2013
As
Adjustments
As Restated
Reference
Retained Earnings
$
)
$
)
A, B, C, D, E, F, G
Accumulated Other Comprehensive Loss
)
)
A, B, C, F, G
Non-controlling Interests
A, F
The following tables summarize the impact of the Restatement on our previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss and Consolidated Statements of Cash Flows for the years ending December 31, 2016, 2015 and 2014 (in thousands):
Consolidated Balance Sheet
December 31, 2016
As
Adjustments
As Restated
Reference
Assets
Cash and cash equivalents
$
$
—
$
Cash - restricted
—
Accounts receivable, less allowance for doubtful accounts of $71,082
B
Accounts receivable - affiliates
—
Prepaid expenses and other current assets
—
Income taxes receivable
)
G
Current assets held for sale
G
Total current assets
Property and equipment, net
)
C
Cash - restricted, net of current portion
—
Retainage receivable
—
Acquired intangibles, net
)
C
Goodwill
—
Investments
)
F
Deferred income tax assets
G
Other assets
—
Assets held for sale
)
F, G
Total assets
$
$
)
$
Liabilities and Stockholders’ Equity
Current maturities of notes payable and long-term debt
—
Accounts payable and accrued expenses
F
Income taxes payable
)
G
Current portion of deferred revenue
—
Other current liabilities
)
F
Current liabilities held for sale
)
G, F
Total current liabilities
)
Notes payable and long-term debt, net of current maturities
—
Retainage payable
—
Deferred income taxes
G
Deferred revenue
B
Other liabilities
D, E, F
Liabilities held for sale
D, F, G
Total liabilities
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value; 1,000 shares authorized, none issued
—
—
—
Common stock, $0.0001 par value; 100,000 shares authorized, 58,835 shares issued at December 31, 2016
—
Additional paid-in capital
)
F
Retained earnings (deficit)
)
)
)
A, B, C, D, E, F, G
Accumulated other comprehensive loss
)
)
A, C, E, F, G
)
Less treasury stock of 6,977 shares at December 31, 2016
)
—
)
Hill International, Inc. share of equity
)
Noncontrolling interests
)
Total equity
)
Total liabilities and stockholders’ equity
$
$
)
$
Consolidated Balance Sheet
December 31, 2015
As
Adjustments
As Restated
Reference
Assets
Cash and cash equivalents
$
$
—
$
Cash - restricted
—
Accounts receivable, less allowance for doubtful accounts of $60,535
B
Accounts receivable - affiliates
F
Prepaid expenses and other current assets
—
Income taxes receivable
—
Current assets held for sale
—
Total current assets
Property and equipment, net
)
C
Cash - restricted, net of current portion
—
Retainage receivable
—
Acquired intangibles, net
)
C
Goodwill
—
Investments
)
F
Deferred income tax assets
)
G
Other assets
—
Assets held for sale
)
F, G
Total assets
$
$
)
$
Liabilities and Stockholders’ Equity
Current maturities of notes payable and long-term debt
—
Accounts payable and accrued expenses
F
Income taxes payable
)
G
Currrent portion of deferred revenue
—
Other current liabilities
—
Current liabilities held for sale
)
F
Total current liabilities
Notes payable and long-term debt, net of current maturities
—
Retainage payable
—
Deferred income taxes
G
Deferred revenue
Other liabilities
D, E, F
Liabilities held for sale
F, G
Total liabilities
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value; 1,000 shares authorized, none issued
—
—
—
Common stock, $0.0001 par value; 100,000 shares authorized, 58,335 shares issued at December 31, 2015
—
Additional paid-in capital
F
Retained earnings (deficit)
)
)
A, B, C, D, E, F, G
Accumulated other comprehensive loss
)
)
A, C, E, F, G
)
Less treasury stock of 6,743 shares at December 31, 2015
)
—
)
Hill International, Inc. share of equity
)
Noncontrolling interests
)
Total equity
)
Total liabilities and stockholders’ equity
$
$
)
$
Consolidated Balance Sheet
December 31, 2014
As
Adjustments
As Restated
Reference
Assets
Cash and cash equivalents
$
$
—
$
Cash - restricted
—
Accounts receivable, less allowance for doubtful accounts of $66,119
B
Accounts receivable - affiliates
—
Prepaid expenses and other current assets
—
Income taxes receivable
—
Current assets held for sale
—
Total current assets
Property and equipment, net
—
Cash - restricted, net of current portion
—
Retainage receivable
—
Acquired intangibles, net
)
C
Goodwill
—
Investments
F
Deferred income tax assets
)
G
Other assets
—
Assets held for sale
)
G
Total assets
$
$
)
$
Liabilities and Stockholders’ Equity
Current maturities of notes payable and long-term debt
—
Accounts payable and accrued expenses
F
Income taxes payable
)
G
Current portion of deferred revenue
—
Other current liabilities
—
Current liabilities held for sale
—
Total current liabilities
Notes payable and long-term debt, net of current maturities
—
Retainage payable
—
Deferred income taxes
)
G
Deferred revenue
—
Other liabilities
E, F
Liabilities held for sale
)
F, G
Total liabilities
)
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value; 1,000 shares authorized, none issued
—
—
—
Common stock, $0.0001 par value; 100,000 shares authorized, 56,920 shares issued at December 31, 2014
—
Additional paid-in capital
—
Retained earnings (deficit)
)
)
)
A, B, C, E, F, G
Accumulated other comprehensive loss
)
)
A, C, E, F, G
)
Less treasury stock of 6,546 shares at December 31, 2014
)
—
)
Hill International, Inc. share of equity
)
Noncontrolling interests
Total equity
)
Total liabilities and stockholders’ equity
$
$
)
$
Consolidated Statement of Operations
Year ended December 31, 2016
As Previously
Adjustments
As Restated
Reference
Revenues
$
520,847
$
)
$
516,012
B, F
Direct expenses
—
Gross Profit
)
Selling, general and administrative expenses
A, C, D, F
Share of loss of equity method affiliates
—
Operating Loss
)
)
)
Interest and related financing fees, net
F
Loss before income taxes
)
)
)
Income tax expense (benefit)
)
E, F, G
Loss from continuing operations
)
)
)
Loss from discontinued operations
)
)
)
A, D, F, G
Net (loss) earnings
)
)
)
Less: net earnings - noncontrolling interest
)
F
Net Loss attributable to Hill International, Inc.
$
)
$
)
$
)
Basic loss per common share from continuing operations
$
)
$
)
$
)
Basic loss per common share from discontinued operations
)
)
)
Basic loss per common share - Hill International, Inc.
$
)
$
)
$
)
Basic weighted average common shares outstanding
—
Diluted loss per common share from continuing operations
$
)
$
)
$
)
Diluted loss per common share from discontinued operations
)
)
)
Diluted loss per common share - Hill International, Inc.
$
)
$
)
$
)
Basic weighted average common shares outstanding
—
Consolidated Statement of Operations
Year ended December 31, 2015
As Previously
Adjustments
As Restated
Reference
Revenues
$
$
)
$
B, F
Direct expenses
—
Gross Profit
)
Selling, general and administrative expenses
A, C, D, F
Share of loss of equity method affiliates
—
Operating profit
)
)
Interest and related financing fees, net
F
Earnings (loss) before income taxes
)
)
Income tax expense
)
A, E, F, G
Loss from continuing operations
)
)
Loss from discontinued operations
)
)
F, G
Net earnings (loss)
)
)
Less: net earnings - noncontrolling interest
F
Net Earnings (loss) attributable to Hill International, Inc.
$
$
)
$
)
Basic earnings (loss) per common share from continuing operations
$
$
)
$
)
Basic loss per common share from discontinued operations
)
)
Basic earnings (loss) per common share - Hill International, Inc.
$
$
)
$
)
Basic weighted average common shares outstanding
—
Diluted earnings (loss) per common share from continuing operations
$
$
)
$
)
Diluted loss per common share from discontinued operations
)
)
Diluted earnings (loss) per common share - Hill International, Inc.
$
$
)
$
)
Basic weighted average common shares outstanding
)
Consolidated Statement of Operations
Year ended December 31, 2014
As Previously
Adjustments
As Restated
Reference
Revenues
B, F
Direct expenses
—
Gross Profit
Selling, general and administrative expenses
A, C, F
Operating profit
)
Interest and related financing fees, net
F
Earnings before income taxes
)
Income tax expense
E, F, G
Earnings from continuing operations
)
Loss from discontinued operations
)
)
F, G
Net loss
)
)
)
Less: net earnings - noncontrolling interest
F
Net Loss attributable to Hill International, Inc.
$
)
$
)
$
)
Basic earnings per common share from continuing operations
$
$
)
$
Basic loss per common share from discontinued operations
)
—
)
Basic loss per common share - Hill International, Inc.
$
)
$
)
$
)
Basic weighted average common shares outstanding
—
Diluted earnings per common share from continuing operations
$
$
)
$
Diluted loss per common share from discontinued operations
)
—
)
Diluted loss per common share - Hill International, Inc.
$
)
$
)
$
)
Basic weighted average common shares outstanding
—
Consolidated Statement of Comprehensive Loss
Year ended December 31, 2016
As Previously
Adjustments
As Restated
Reference
Net loss
$
)
)
$
)
A,B,C,E,F,G
Foreign currency translation adjustment, net
)
A,C,E,G
Other, net
Comprehensive loss
)
)
A,C,E,G
Comprehensive loss attributable to noncontrolling interest
)
)
Comprehensive loss attributable to Hill International, Inc.
$
)
)
$
)
A,B,C,E,F,G
Consolidated Statement of Comprehensive Loss
Year ended December 31, 2015
As Previously
Adjustments
As Restated
Reference
Net earnings (loss)
$
$
)
$
)
A,B,C,E,F,G
Foreign currency translation adjustment, net
)
)
A,B,C,E,F,G
Other, net
)
)
Comprehensive loss
)
)
)
A,C,E,G
Comprehensive loss attributable to noncontrolling interest
)
)
)
Comprehensive loss attributable to Hill International, Inc.
$
)
$
)
$
)
A,B,C,E,F,G
Consolidated Statement of Comprehensive Loss
Year ended December 31, 2014
As Previously
Adjustments
As Restated
Reference
Net loss
$
)
)
$
)
A,B,C,E,F,G
Foreign currency translation adjustment, net
)
)
A,B,C,E,F,G
Other, net
)
Comprehensive loss
)
)
)
A,B,C,E,F,G
Comprehensive loss attributable to noncontrolling interest
)
)
Comprehensive loss attributable to Hill International, Inc.
$
)
)
$
)
A,B,C,E,F,G
Consolidated Statement of Cash Flows
Year Ended December 31, 2016
As Previously
Adjustments
As restated
Cash flows from operating activities:
Net loss
$
)
)
$
)
Loss from discontinued operations
(Loss) earnings from continuing operations
)
)
)
Adjustments to reconcile net (loss) earnings to net cash provided by (used in):
operating activities:
Depreciation and amortization
Provision for bad debts
—
Amortization of loan fees
—
Deferred tax (benefit) provision
)
)
Stock based compensation
)
Unrealized foreign exchange losses (gains) on intercompany balances
—
Changes in operating assets and liabilities (net of acquisitions):
Restricted cash
)
Accounts receivable
)
Accounts receivable - affiliate
)
Prepaid expenses and other current assets
)
)
Income taxes receivable
)
—
)
Retainage receivable
)
)
)
Other assets
Accounts payable and accrued expenses
)
)
)
Income taxes payable
)
)
Deferred revenue
Other current liabilities
)
)
Retainage payable
)
)
)
Other liabilities
)
Net cash provided by continuing operations
Net cash used in discontinued operations
)
)
)
Net cash provided by (used in) operating activities
)
Cash flows from investing activities:
Payments for purchase of property and equipment
)
)
)
Net cash used in investing activities of continuing operations
)
)
)
Net cash used in investing activities of discontinued operations
)
)
Net cash used in investing activities
)
)
)
Cash flows from financing activities:
Payments on term loan
)
)
)
Net borrowings (payments) on revolving loans
)
)
Proceeds from Philadelphia Industrial Development Corporation loan
—
—
—
Payment of holdback purchase price
)
—
)
Dividends paid to noncontrolling interest
)
—
)
Proceeds from stock issued under employee stock purchase plan
—
Proceeds from exercise of stock options
—
Net cash used in financing activities
)
)
Effect of exchange rate changes on cash
)
)
Net decrease in cash and cash equivalents
—
Cash and cash equivalents — beginning of year
—
Cash and cash equivalents — end of year
$
—
$
Consolidated Statement of Cash Flows
Year Ended December 31, 2015
As Previously
Adjustments
As restated
Cash flows from operating activities:
Net (loss) earnings
$
)
$
)
Loss from discontinued operations
)
(Loss) earnings from continuing operations
)
)
Adjustments to reconcile net (loss) earnings to net cash provided by (used in):
operating activities:
Depreciation and amortization
Provision for bad debts
—
Amortization of loan fees
—
Deferred tax (benefit) provision
)
)
Stock based compensation
—
Unrealized foreign exchange losses (gains) on intercompany balances
—
Changes in operating assets and liabilities (net of acquisitions):
Restricted cash
)
Accounts receivable
)
)
)
Accounts receivable - affiliate
)
)
Prepaid expenses and other current assets
)
Income taxes receivable
)
)
Retainage receivable
—
Other assets
)
Accounts payable and accrued expenses
Income taxes payable
)
)
Deferred revenue
)
Other current liabilities
)
)
Retainage payable
)
—
)
Other liabilities
Net cash provided by continuing operations
Net cash used in discontinued operations
)
)
Net cash provided by (used in) operating activities
)
Cash flows from investing activities:
Purchase of businesses, net of cash acquired
)
)
Purchase of additional interest in Engineering S.A.
—
—
—
Payments for purchase of property and equipment
)
)
Net cash used in investing activities of continuing operations
)
)
Net cash used in investing activities of discontinued operations
)
)
)
Net cash used in investing activities
)
)
)
Cash flows from financing activities:
Payments on term loan
)
—
)
Net borrowings (payments) on revolving loans
Proceeds from Philadelphia Industrial Development Corporation loan
—
Dividends paid to noncontrolling interest
)
—
)
Proceeds from stock issued under employee stock purchase plan
—
Proceeds from exercise of stock options
—
Purchase of treasury stock
)
—
)
Net cash provided by financing activities
Effect of exchange rate changes on cash
)
)
)
Net decrease in cash and cash equivalents
)
—
)
Cash and cash equivalents — beginning of year
—
Cash and cash equivalents — end of year
$
—
$
Consolidated Statement of Cash Flows
Year Ended December 31, 2014
As Previously
Adjustments
As restated
Cash flows from operating activities:
Net loss
$
)
)
$
)
Loss from discontinued operations
)
(Loss) earnings from continuing operations
)
Adjustments to reconcile net (loss) earnings to net cash provided by (used in):
operating activities:
Depreciation and amortization
)
Provision for bad debts
)
—
)
Interest accretion on term loan
—
Amortization of loan fees
—
Deferred tax (benefit) provision
)
)
Stock based compensation
—
Unrealized foreign exchange losses (gains) on intercompany balances
—
Changes in operating assets and liabilities (net of acquisitions):
Restricted cash
)
Accounts receivable
)
)
)
Accounts receivable - affiliate
)
)
)
Prepaid expenses and other current assets
)
)
)
Income taxes receivable
)
)
)
Retainage receivable
)
—
)
Other assets
)
Accounts payable and accrued expenses
)
Income taxes payable
)
)
)
Deferred revenue
)
)
)
Other current liabilities
)
)
Retainage payable
—
Other liabilities
)
Net cash provided by continuing operations
)
Net cash used in discontinued operations
)
)
Net cash provided by operating activities
)
Cash flows from investing activities:
Purchase of businesses, net of cash acquired
)
—
)
Purchase of additional interest in Engineering S.A.
)
—
)
Payments for purchase of property and equipment
)
)
)
Net cash used in investing activities of continuing operations
)
)
)
Net cash used in investing activities of discontinued operations
)
)
Net cash used in investing activities
)
)
)
Cash flows from financing activities:
Due to bank
)
—
)
Proceeds from secondary public offering of common stock
—
Proceeds from term loan borrowing
—
Payoff and termination of term loan
)
—
)
Payoff and termination of revolving credit facility
)
—
)
Payment of financing fees
)
—
)
Payments on term loan
)
—
)
Net borrowings (payments) on revolving loans
)
—
)
Dividends paid to noncontrolling interest
)
—
)
Proceeds from stock issued under employee stock purchase plan
—
Proceeds from exercise of stock options
—
Net cash provided by financing activities
—
Effect of exchange rate changes on cash
)
)
Net decrease in cash and cash equivalents
)
—
)
Cash and cash equivalents — beginning of year
—
Cash and cash equivalents — end of year
$
—
$ |
