Hill International returns to profit

For 2020, its consulting fee revenue is projected to be between US$330m and US$350m (£268m-£285m).

In the fourth quarter of 2019, its net income was US$12.1m, up from a loss of US$7.3m in the same period the previous year. Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA)  were US$4.0m for the quarter, up from a deficit of US$0.5m in 2018.

The backlog at the end of the year was US$811.3m, up 9.6% from beginning of 2019.

Cash flow from operations and free cash flow of US$10.0m and US$6.1m, respectively, for 2019  compared to negative figures of US$25.0m and US$27.4m, respectively, for the previous year.

The net income margin and adjusted EBITDA margin for the fourth quarter of 2019 were 15.8% and 5.2%, respectively, with projected EBITDA margin projected to increase to 5.5%-7.0% for 2020.

Chief executive officer Raouf Ghali said: “The company successfully returned to profitability, reduced its cost base and significantly increased its backlog during 2019. I expect continued positive results in 2020 as we convert the increased backlog into revenue and continue to manage our costs.

Hill's consulting fee revenue (CFR) was US$76.8m for the quarter ended 31^st December 2019, compared to US$75.5m for the quarter ended December 31, 2018. Total revenue for the quarter was US$83.8m, compared to US$100.7m for the same quarter in 2018.

Net income attributable to Hill was US$12.1m, resulting in a margin of 15.8% as a percentage of CFR, for the quarter. This compared to a net loss from continuing operations of US$7.3m, resulting in a margin of -9.7% as a percentage of CFR for the quarter ended 31^st December 2018. The company’s operating income for the quarter ended December 31, 2019 was US$10.1m, compared to an operating loss of US$4.5m during the same period in the prior year.

CFR was US$308.6m for the year ended 31st December 2019 compared to US$337.2m for the previous year. Total revenue for the year ended 31st 2019 was US$376.4m, compared to US$428.7m for 2018.

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