Hill International Inc. (HIL) filed Quarterly Report for the period ended 2009-09-30.
Hill International Inc. has a market cap of $282.2 million; its shares were traded at around $7.28 with a P/E ratio of 17.7 and P/S ratio of 0.8.
Highlight of Business Operations:
During the third quarter of 2009, Hill’s project management CFR growth of 0.7% was all organic. The dollar increase in project management CFR consisted of a $2,063,000 increase in foreign projects and a decrease of $1,585,000 in domestic projects. The increase in foreign project management CFR was primarily due to increases of $5,461,000 generated in North Africa and $2,033,000 in the Middle East. Growth in North Africa was primarily due to large new contracts in Libya. Decreases in Europe (primarily due to the downturn in the economies of Spain and Poland) partially offset these increases. The decrease in domestic projects consisted primarily of New Jersey and Texas partially offset by increases in Pennsylvania and the Southwest Region.
The decrease in project management gross profit included decreases of $1,451,000 from domestic operations and $1,191,000 from Poland, primarily due to decreased CFR, offset by an increase of $2,459,000 in North Africa.
Operating profit increased $922,000, or 12.7%, to $8,168,000 in the third quarter of 2009, from a profit of $7,246,000 in the same period of 2008, principally due to increased equity in earnings of affiliates and lower SG&A expenses, partially offset by a decrease in CFR. In addition, the lower valuation of the British pound and the Euro versus the U.S. dollar decreased our operating profit in the third quarter of 2009 by approximately $221,000 from the same period of 2008.
For the three-month periods ended September 30, 2009 and 2008, we recognized net tax expense of $1,636,000 and $1,829,000, respectively. The Company’s income tax expense for the three-month period ended September 30, 2009 included $787,000 related to increases in the reserves for uncertain tax positions and a $1,096,000 benefit resulting from adjustments to agree the 2008 book amount to the actual amounts per the tax returns.
Our net earnings attributable to Hill International, Inc. for the third quarter of 2009 were $5,832,000, or $0.15 per diluted common share based upon 38,839,000 diluted common shares outstanding, as compared to net earnings for the third quarter of 2008 of $5,207,000, or $0.13 per diluted common share based upon 40,997,000 diluted common shares outstanding. Net earnings were favorably affected by significantly higher equity in earnings of affiliates, and lower SG&A expenses, partially offset by lower CFR, the decrease in gross profit percentages, and the impact of exchange rates as the U.S. dollar strengthened (compared to the same period in 2008) against the British pound and the Euro.
During the nine months ended September 30, 2009, Hill’s project management CFR growth of 19.1% was comprised of 15.1% organic growth and 4.0% growth from acquisitions. The dollar increase in project management CFR consisted of a $36,437,000 increase in foreign projects and a decrease of $3,325,000 in domestic projects. The increase in foreign project management CFR was primarily due to a $20,496,000 increase generated in North Africa and $13,278,000 in the Middle East. Growth in North Africa was primarily due to two large contracts in Libya. Growth in our CFR in the Middle East has been strong primarily due to our involvement with the Iraq reconstruction efforts funded by the United States government and new work in Qatar. The decrease in domestic project management CFR revenue was primarily due to decreased work in the Texas and New Jersey regions, partially offset by increased work in the Southwest region.
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