HIL - Earnings call transcript Q1 2019 | Hill International, Inc.

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Operator

Welcome to Hill International, Inc.

First Quarter Earnings for Fiscal Year 2019 Investor Call. On this call, John Grau of InvestorCom will provide some introductory remarks on the content of the call. John will be followed by Hill International's CEO, Raouf Ghali; and Senior Vice President and Chief Financial Officer, Todd Weintraub. Mr. status long-term company future. the Hill's expectations discuss and immediate will of and the for Ghali Mr. Weintraub for XXXX. detail will Hill's first quarter results

a is As call John, this begin. please being recorded. reminder,

John Grau

and please harbor any To XXXX, is note safe on belief on strategies by and thereby. subject call uncertainties. and do any forward-looking are let the of it are forward-looking meaning considered to statements not such and our These for protected We undertake the no historical that, Ghali, within With intend statements. are you. the Reform any Private Thank this future Securities me this the assumptions Hill Certain Litigation forward-looking statements over statements update Except statements everyone be plans following. created turn current any and obligation herein, call made are the of intent that set matters International's forward-looking statements intent Raouf including CEO. call, Act statement. of our to statements based risks any concerning information, forth or on and our and to expectations

Raouf Ghali

John, everyone to Thank thank on call. the and you, you

consulting are quarter. X%, report our we fee XX% that First, by revenue respectively, backlog to increased and have last happy and from

the improved on We in details March, call earnings Today, are our call we will pleased since to provide our last profitability. for with then also performance report will updates the start the CFO, financial Todd, quarter.

to leading revenue, other consulting according closing quickly questions recent turning we steady East The some with remarks. open quarter the of on while Then remainder through finally, will all started regions strong go for this sales growth initial the for Middle the into call path or will wins a fee and We plan. I this CFR. expectation continue our are Thereafter, the that is year. and

the burn million. quarters. the deducting we first in backlog backlog first $X.X quarter. Some into added the have to second stronger We the $XX in upward closed million adjusted an EBITDA trend revenue noteworthy accomplishments revenue with the and in anticipate next expect for this We this for after our quarter, continue be quarter of EBITDA quarter: We to and

slow for The quarter and conditions our billable that weather traditionally business is U.S., holidays being East due in on days. to a first impact the the month short February infrastructure January Coast

client to our needs due ability new is mobilization the has strong the quick our to burn very during projects Our on bookings first quarter. expectations. the to meet and been ability This

expected to new quarter will levels. Our on our This aligned into has pass to higher grow profitability detail remained SG&A at the as XXXX performance. first I to has sales Todd convert now CFR.

Todd Weintraub

to Thank against the for progress about much last on of has a on and nonrecurring that our have million agenda for laid adjustments. the million executing in approximately made costs three, million of $XXX since for you, was full time was our to multi-quarter to XX; onetime because Raouf, out million, to the free quarter. that don't thrilled two, some much huge One, XXXX my $XXX for quarter; for five, share million last the have four, revenue and SG&A approximately XX% several from quarter, quarter consulting and everyone cash for to we we line our year-end explaining SG&A happy and we year. positive we've thank track $XX $XX know EBITDA positive quarter; to a anxious on backlog grown negative guidance the in I'm at $X flow call. will take hear last fee say million is adjusted plan be by respects. March really our than remarks $X.X our other trend; in for up and million $XX a quarter was are million everyone quarter was you the I'm with I the this expenses, shorter I reversing $XX amount Adjusting March.

costs compared to did the we million. completely they all quarter. restatement, We some restructuring the during to and costs prior $X incur XXXX totaling very were to fully over these and of related While done just second expect XXXX, minor be

I for We and now provide more you about also FX compensation pretty offsetting the for an each adjusted quarter. stock each for EBITDA results gain with on unrealized noncash detail other. down from want much up the $XXX,XXX, to

at our quarter's renders plan. results meaningful quarter talk trough was Given this would in all our trend year-over-year as We point, that that the results the it XXXX corner not think and sense comparisons from to indicated XXXX a had relative a QX XXXX. in I belief very to makes we turn and this noise the about last

of in evidence seeing now our QX this are We XXXX results.

$XX consulting about million this million quarter. last to fee up Our $XX trended revenue quarter X% by from

during will quarter-over-quarter year. our increase the CFR expect to We continue

Our was from gross margin XX.X% slightly the in XXXX. first up consulting quarter, on revenue in that QX fee XX.X%

was improvement. $XX in lingering line versus costs with to the related would for so million. for last guidance you restructuring and Adjusting SG&A for our the annual million, SG&A quarter quarter, have over $XXX $XX been saw of million, of the Our million million quarter $X restatement $XX the around just a continuing

in this fall our to increasing level time the and and margin EBITDA believe to CFR bottom of will through SG&A right to increases line XX%. approximately is over profit sustainable gross the continue mostly We

that our over $XXX our quarter. the line backlog, a significant prior $XXX the and first backlog March million, guidance is XX% XX million by end $XXX of be million at Looking would from in increase year-end backlog at with at

grow we turned started backlog and have the corner have is evidence the this So to again. more that

to and specific directional As desire I the insights. said SG&A understand quarter, last I for us beyond guidance provide

specific we exceed adjusted the giving other level. for However, backlog of our mobilization our not timing guidance, further XXXX results. the to will of our cycle will any and short-term reiterate XXXX rate will the of EBITDA we procurement and growth than impact Therefore be expect

and points our backlog being increasing indicated growing two, the it line indicated bottom decline would; backlog The rate our EBITDA at we consulting the are now we profit that burned increased time historical our run again fall indicated over important as as is One, are: we at level revenue to the CFR, reversed now gross we as would; fee we into through the has is is costs four, it would; sustainable operating for and mostly three, indicated. right will we increasing margins as

we is I operating from and the to believe This continue our XX% focus cash as We gain achievable to our flow mentioned for was scale payments. EBITDA margin million. free on in three, CFR outgoing on $X backlog. quarter due timing more of that day outstanding; that One, also the results; a around lowered factors: was X mostly an sales collections two, better increased growth our

focus to We effect it to comments. now outgoing and operating better for Raouf fluctuate while expect results quarter-to-quarter. the on increased of back I'll of timing the continue, collections turn some over the payments will

Raouf Ghali

With you, let's latest Thank with wins. that, Todd. proceed some our of

end art manage Momento and at reaction year for the since project scope. largest continue Taj in be Riyadh and destinations, call, reputation, Saudi Development of will clients' selected members mixed-use world-class international King Hamad of the when and Airport again centers, commercial I expansion projects over at amongst for and With will of In the wins park type, the this an XX-square-kilometer will services staff clients areas, X sports was key we attractions. the Sarai. construction key of Park and The As XXXX this with to services mobilized, entertainment the focused a reputation, Hill help I golf program. school. mentioned academies, and our & underway, is other our also immediate Arabia, our the Hill in to on represent In we is most this Kingdom's announce can major an the residence, retail compounds I Development to complex, the Middle believe, to far expect opera company's feature design Qatar. of XXX the assignments. and by Vision libraries, Egypt, Cairo's management a a last an have project Housing world Once Doha, museums, park hotel, urban component Salman art high-profile the These These to to Hill International seen complete, projects that is royal a on our by Once realize officially this cultural respectively, Madinet selected our members project peak the Phases to royal their feature Hill medical Authority are house, facilities Project. award supervision latest for open service Nasr luxury East. X with was testament a the X assignment course. City returning and amusement squares, Green XX-hole received selected in to theater, now the the and national park will aviation we galleries last spaces manage provide

award to securing our multiple include: United from to Corporation Hill and assignments Aerospace facilities Middle provide addition the has In regions an call. for our Colorado Virginia. the in since these East authorized services wins, States, major representative owner been also other last in In

for shipping of Pier Wisconsin, efficient we for providing than Beloit. operations Florida. and X Nation In these resort across Convention to square close California, the representative the for Miami In enhancing We services the a support This In award enable more end to continue management owner's proposed on-dock XXXX. B the hotel, rail to the Florida, facility at an by new B the received to will Ho-Chunk and and support for an expect Beach port's the feet involves in which the rail multibillion-dollar upgrade Long program, reconfiguring, we full Pier to now Port the to provide extend XXX,XXX campuses. total casino facilities aerospace of extension selected terminals. owner's expansion Center renovation representative were expanding in more provide Beach of

work new we many with a York award term managing mitigate as for services backlog services Construction's progress risk The connectivity growth recurrent on fluctuations. since continues. in to have CFR our will international services support the wins the East, trend strategy. build These strengthened Similarly, XXXX, Brooklyn, which develop the post-construction selected U.S. stream price building compared profitability to operations and developing allocating [technical growth provide As report the part multibillion-dollar new expect and project management pipeline. healthy clients With end International strategy, the on and facilities Hill Geneva. Unions, global emphasis next year, also upward we networks, like and our in have overexposed will further and provide program Queens and any them joint the international will new construction megaprojects, new communication support both our the program Middle building long would we City to of to our Department for between over in oil Union's correctional the developing of in so our Hill helps a management as reliable and have to New call to spectrum and an beginning as been Bronx. successfully and profits, a provide a This venture, X our was network standards. future be in quarter's of Design of the substantially This difficulty] of technical radio and continue of headquarter existing to be has Manhattan, as of Europe, balanced on a and Hill of in not our And up behalf built Telecommunication member support would major clients. the specific part and major securing over long, risk in to is

of operating of of awarded locations new assignments. For existing has the of operation steady high major create is and This business been assets, are we for services workforce amount will post-construction scope revenue in investment. currently irrespective demand our region price the services some these oil. Growing required their and a stable a clients, whose and/or several the Hill independent in is of in

already contract new the backlog in have facility of $XX client, for of management a million. management facility services and created current extension Embassy around For developments these Cairo, numerous support ADNOC, for example, our the Saudi private

Raouf Ghali

for and continue. reiterate. the up expect In trend is we XX% Hill's to me closing, let the quarter backlog

participation. to decreased the up is have gross profitability will you as quarter, revenue for fee and continues CFR. convert at Thank consulting the to improved continue. and new Our SG&A sales call. today's required has we for attention trend This concludes levels. X% everyone to The our your stay DSO

Operator

you for thank gentlemen, participating in program. Ladies today's and today's concludes conference. This

have may Everyone, You day. disconnect. all a great

Hill International (HIL) 13 May 192019 Q1 Earnings call transcript