Hill International Returns to Profitability, Adds to Board

PHILADELPHIA—Hill International, one of the largest construction management firms in the world, says its total revenue for the third quarter of 2015 was $178.9 million, an increase of 10.8 percent from the third quarter of 2014, and net earnings for the period were $2.9 million, or $0.06 per diluted share, compared to a net loss of $9 million, or $0.19 per diluted share, in the third quarter of 2014.

"Our net earnings were a big improvement from last year, and would have been even better but for several large one-time expenses and an unusually high effective tax rate," says David L. Richter, Hill's president and chief executive officer. "Our consulting fee growth in the third quarter was not as high as expected, and that also had a dampening effect on an otherwise strong quarter."

Unusual expenses totaling $1.7 million adversely impacted Hill's profitability in the third quarter, including $0.9 million for severance, primarily in Europe, $0.6 million in additional interest expense related to a litigation settlement, and $0.2 million in legal and other professional fees related to the recent proxy contest and financial restatement.

The company's total backlog at September 30, 2015 was $879 million, down 6.9 percent from $944 million at June 30, 2015. Twelve-month backlog at September 30, 2015 was $397 million, down 7.2 percent from $428 million at June 30, 2015.

Total revenue for the first nine months of 2015 was a record $530.9 million, an increase of 12.7 percent from the first nine months of 2014, the company says. Net earnings for the first nine months were $8 million, or $0.16 per diluted share, compared to a net loss of $2.1 million, or $0.05 per diluted share, for the first nine months of 2014.

Hill also expanded its board of directors from seven to eight members, adding Steven R. Curts, chief strategy officer for American Express Global Business Travelas a member.

Curts has over 30 years of experience, primarily in technology and business services. Before joining American Express, Curts was a vice president with Dell and worked at Perot Systems Corp. in numerous roles, including president of its Commercial Solutions Group, vice president of Corporate Planning and Financial Operations, and vice president of Finance

"Steve has outstanding financial and operational experience at some of the most outstanding companies in America," says Irvin E. Richter, chairman of Hill's board of directors. "We look forward to Steve's participation on our Board and expect that he will contribute greatly to our company's continued success."