HIL - Earnings call transcript Q3 2019 | Hill International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Hill International, Inc.’s Third Quarter Earnings for Fiscal Year 2019 Investor Call. On this call, John Grau of InvestorCom will provide some introductory remarks of 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. Ghali will discuss the status of the company and expectation for Hill’s immediate and long-term future. Mr. third for Hill’s detail will quarter XXXX. results Weintraub

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

John Grau

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

turn to let that, Raouf call CEO. International’s me With Hill Ghali, the over

Raouf Ghali

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

Hill’s During quarter, progress continued. this

EBITDA million. awards ending follow same two $X.X through with end a our I results. bookings and an will at during from of of with both will as are We earnings new million our and will quarter sequence September previous significant call. of on earnings the of Today, $X.X million, last we the strong $XXX net up financial go major brief the achievements provide the on update since call, the some details quarter. Todd over

will call and provide remarks. closing then the and questions I open will for We some answers,

in in completion than phase of faster Middle in by the for alone. and Middle strong that continuing some Consulting revenue impacted down through procurement our due be This $XXX design not mobilize quarter. East, slightly caused $XX is staff trend new the to has to of fee with several continued in last U.S. to and ability due This bookings bookings is been bookings in to of our recent million comparison limited U.S. recent begin, with yet our September. demobilization our October is million projects wins regions new wins the our and mainly in and resources. wins to were of have required new assignments in the that new new and in To East

the completed now construction the With and trend phase, projects revenue mostly the the in demobilization we coming in more to be expect quarters. stronger

several focus we to our our track given U.S. a key And market ourselves positioned believe discussed record with decades. as traffic last It us aviation now XX next is on in will Hill’s this expected vertical global that well have call to aviation robust The key for is are Since improve. capitalize continues And plan. we conservatively. to in that We been years hires. the we then, on growth is facilities the double airport this for have space, unattended positioned market growth. left passenger

addressable project the produce project U.S. in in Hill’s X years next $XXX construction the developments years. alone over qualified $XX terminal market fees. will in next X total total approximately in New the million management in billion is cost the

Miami, development XX construction Austin for itself in in Fort programs also and fees. in $XXX cost Europe, over management, In and management, billion Hill development procured project positioning over XXXX management in million over Potential firm million with including terminals, Italy. been to has in qualified project total in including key pursuits management total fees. construction equaling in equal costs months, potential key $X San next the $XXX is pursuits management a $XX projects opportunities, in construction and billion France key development XXXX, Poland, and Portugal, Hill potential pursuing as Lauderdale be management, development to aviation Jose, project development Greece, will present airport

In the in over $XXX Doha, million Saudi XXXX billion Arabia. Cairo $X construction and East in and projects costs potential for in development in management and Africa, including fees North Hill, Middle project management,

to services in well. high post-construction the a demand continue international We for as see markets

are We million. several will the add for positioned well of existing backlog over assignments post-construction to $XX that

Now let call me pass the to Todd present to results. the financial

Todd Weintraub

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

plan. backlog of in Two, Our million steady third happy from am first XX% and headquarters cash costs success over former quarter turnaround each the is due as down operations. million, consolidating space. for of the improving I surpassing net to execute XXXX included million $XX about $X.X months adjusted continuing we was $X five, held of quarter, during cash the $X year-end. expenditures, XXXX, quarter. our Free to income primarily quarter, the $X.X fee to EBITDA months million, slightly of flow approximately returned $XXX million approximately corporate is time report into was first capital within quarter $XXX the last negative slightly million the since last related well had our million CapEx mid-XXXX. five and our to for profit for year. offset our consulting SG&A revenue half million approximately was at quarters. last on $XX $XX our we X sequential One, and from positive of the to from first million our our the continue million X for for for for the which $XX progress, the we for quarter by Three, net Four, quarter, a up of And the guidance our

behind and communicated charges us. restructuring now last the quarter, are restatement As we

onetime notice this this for non-cash on makes now press quarter. clearer understand focus business. are to in the only will more us usual stock cost the results provide our We EBITDA. to story with to the easier the core release quarter, the to items much I permits adjustments now to on believe and and You no and FX comp unrealized adjusted there get want you detail

noise quarter’s trend a year-over-year the I plan. results talk from it that and renders last very meaningful, quarter the think our as in about all makes results not XXXX relative to to sense comparisons Given this

We we the half have and turn corner was XXXX of saw our We continue first and evidence that results, QX belief to see in in XXXX. a trough indicated in we our this would evidence QX.

year Let’s To start closed results. SG&A. that the $XXX before we in and on restructuring, before was expenses, mentioned restructuring summarize XXXX, million. finally the with to I so SG&A appropriate our excluding the it’s FX begin, the door

in awards, funding these make am decrease. million points and cycles. quarter, share on variations we materially restructuring I it our us to guidance much cannot thrilled XXXX forecast our and and deliver and of is important XX% Now to resulting that cost any lower or Hill These this leaves lower to The how because, timing are critical difficult better track project overemphasize $XXX to construction result promise now is to handle macro factors a variations I base are base $XX million. particular cost the this on in equipped to is shareholders. while

year first $XXX of Our the the SG&A three-fourth the through guidance. months than $XX million, less million is X of

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

are We seeing already the results.

the generally our CFR. as driving successful highest second X not in CFR. despite quarters Converting base, sustainable a mid-XXXX, higher profit we it’s backlog materializes Our quarters been in excited of our income forward. backlog a has level $X.X into the quarter, after million due year cost had in $X.X this increases bookings prospects increased non-backlog past the And the shown very quarterly adjusted going having CFR CFR net despite those yet to EBITDA is we since the not fully net Likewise, consecutive are that financial lag. the profit far having so efforts about our million, and

indicator CFR, during For perspective, CFR from over declined is of XX% leading backlog, our levels. to XXXX declining over in our XX% future a leading XXXX XXXX, which

So increased our has however, over backlog far XX%. XXXX, in

last being in we despite and fourth from revenue grow for $XX quarter, So consulting CFR quarter expect approximately fee beyond the slightly level. the current the our $XX of down over million million will quarter

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

our XX from September $XXX $XXX is at a million, XX% As increase year-end. significant I at million backlog mentioned,

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

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

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

would. increased as line, we our will sustainable Two, revenue backlog burned we we mostly the indicated. would. consulting The are as through it increase important that to from Three, now the at historical into increased bottom backlog rate run right will four, costs CFR, margins we gross current one, a level grown for year-end EBITDA fall profit has time increasing we points as is from levels. fee at indicated are over operating our our indicated And being significantly

as our free our XX% We more on also scale continue growth negative. we mentioned a to year CFR gain is cash this that backlog. EBITDA from achievable believe in margin I is flow

payments results operating CapEx of this. investments offset and the third more the improve quarter, our outgoing during continued While timing to than

the on fluctuate effect better will operating the focus We expect collections while of increased timing of the quarter-to-quarter. payments continue results to outgoing and

some will I over to now Raouf it comments. turn back for

Raouf Ghali

Port let’s a services Rogan providing services of of our the the providing of major provide signed X. an Associates the selected In U.S. Thessaloniki Hill transit is of hub Greece’s over continuously FTA, network. of In and Todd. leader consortium Hill continue project key marine for capital Europe, Authority Transit design to has U.S., to part agreement the for a port management oversight planned and for the been most Thank port as on including infrastructure This the Northern With that, Southeast trans-European of services for Europe the with core three Greece as nationwide. a Administration, you, project Hill PMO of FTA works transport some important wins. Pier proceed management Federal expansion latest projects transportation decades. network to

bridge Tower support, The CFX our the contract and facilities, management for building. Mexico be apartment and for which consultants. area City, of services construction, will Florida improve area, providing the as Hill counties Hill ACCIONA a was In in providing of the improved management nature an tourists fourth of Hill awarded by over X, consulting the Vertex project their of residents, program. is project the its development involves Mexico, and greater well is other and Hill safety. design which the business to CFX’s multi-project as the square and major of construction conditions of exclusive engineering, of construction Reforma a to awarded work oversight services located is management tower to and Central project. enhanced travel provide CFX a Orlando Expressway, addition inspection for roadway Parques distinguished enable XX-storey in Maranta and meters In XX,XXX continued green will program oversight with in areas. immersed towers program Bosques, X X FTA, CFX-associated Maranta

X strong awarded construction supervision provide ADA phases to project continuation part with metro and by Arabia, In design/build management management will services of management Arriyadh X. the Properties Company, to a Hill Abu Alreeman the Dhabi services providing was site management Alreeman joint project contracts Dhabi, a a commercial for construction have multiple and home Hill for Also the through Middle facilities for Aldar in multiple as our venture lines. residential or project. with East, project ADNOC, National selection Alreeman is and In e a Oil Hill and properties. projects. of to contract provide facility supervise Saudi the Development of continues management, Authority the to awarded the services and Hill of several Abu relationship

Hill construction consulting Indian the the of oil Asia, announced Oil new the deployment provision Sabbour Development, which and contains compound, to Estate space. and management Real services management, Limited their Corporation Hill technology the Square provide project for units development is residential the a for contract that Ahly International retail In center. Indian than for for of successful bidder services X,XXX commercial Al and awarded Egypt, in more And facility

improved growth noted the continued profitability resulting As now success earlier, work winning throughout is and our in company. in

Raouf Ghali

new bookings EBITDA In in right is to converted and earnings the a into strong direction. closing, continued Hill’s reiterate, expected to let as being net maintain We CFR move grow me to are on bookings our for hold next look participating strength our October SG&A and the on $XX costs everyone you million with the on alone. Thank trend and new call. call forward in revenue. continues

Operator

call. on forward This you for today’s our concludes conference call call. look next Thank the everyone participating and to

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

Hill International (HIL) 11 Nov 192019 Q3 Earnings call transcript