Q4 2019 Earnings Call
[music].
Welcome to heal International Inc. fourth quarter earnings for fiscal year 2000.
90 in Investor call.
On this call John glad Investor Com will provide some introductory remarks on the content of the call John will be followed by Hill International CEO, Ralph Golly, and senior Vice President and Chief Financial Officer, Todd Weintraub.
Mr. Golly will discuss the status of the company and expectations for hills immediate and long seem future.
Mr Line job will detail Hills fourth quarter results for 2019 as a reminder, this call is being recorded John please begin.
Thank you to everyone on this call. Please note. The following certain statements made on this call are considered forward forward looking statements within the meeting of the private Securities Litigation Reform Act of 1995, and it is our intent that any such statements be protected by the safe Harbor created there.
By except for historical information all matters set forth herein, including any statements of belief or intent in any statements concerning our future plans and strategies are forward looking statements. These forward looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties.
We do not intend and undertake no obligation to update any forward looking statement with that let me turn the call over to the roof Golly Hill International CEO.
Thank you John and thank you to everyone on the call.
We acknowledge the world is going through difficult times and hope everyone is healthy and stay strong until this crisis passions.
And the mix of all this we are excited to share with you our fourth quarter and 2019 results and we'll be filing our annual report.
Form 10-K for the fiscal year ending December 31st 2019.
Within the extended deadline 15 days following March 16.
The regular filing dude.
The addition time needed is to compete certain administrative and other procedures related to our ongoing annual audit.
Todd will provide more details later on on the call.
Following the same sequence as our previous earnings call I will brief you on significant achievements during this quarter.
Todd will provide details on financial results.
Ms. Liz Jay if our senior Vice President of Global marketing will go over some of the major awards since our last call.
Then we will open the call for questions and answers and lastly, I will provide some closing remarks.
Let's proceed with some of our significant accomplishments to begin.
We reached a settlement with the as you see on the investigation concerning our past financial restatements.
There has been an increase in our.
In order for CFR deriving from our growing backlog.
We concluded the year with $16.9 million adjusted EBITDA and over 14 million in earnings.
Bookings were strong during the year with a total of 495 million ending the year with a backlog of 811 million. We expect this trend to continue in 2020 as received strong demand for our services in all operations.
Consulting fee revenue in fourth quarter showed a slight increase as the backlog made its way to CFR.
We anticipate CFR, we'll continue to grow throughout Twentytwenty, and we estimate CFR will be between 332 350 million for Twentytwenty.
We have collected 9.7 million from our long outstanding Libya receivables. This has positively impacted our liquidity and will give us additional flexibility to finance the growth of our business.
We expect to collect entire amount owed to us by our clients in Libya as the political situation normalizes in the country.
In addition, we have tightened our controls and have closed out a majority of material weaknesses previously identified and anticipate the remaining weaknesses to be closed out in twentytwenty.
Last but not least.
We are monitoring closely current world events regarding the Corona wires and oil prices.
Taking precautionary steps to protect our employees and the community they living.
Now, let me pass the call to Todd to present financial results.
Thank you ROE and thank you to everyone on the call.
Opened I have now completed our first full fiscal year at the helm Hale.
What do we took over in the fall 2018, the business in financials were still in a downward spiral as the company continues to feel the impact of the restructuring and restatement that consumes most of 2017 and 2018.
We communicated our business priorities for 2019 as growing backlog, maintaining our lower cost base, improving liquidity the collections and returning to profitability.
We also communicated a commitment to file our financials timely and accurately and to improve our internal controls over financial reporting.
I am thrilled to report significant progress on all these initiatives a year later.
Number one we collected a large payment on our will be receivable, Andrew said 9.7 million, which nets to 7.1 million after subcontractor payments and other fees.
To our adjusted EBITDA was 4 million for the quarter, marking our fourth consecutive quarter of positive adjusted and on adjusted EBITDA and a four and a half million year over year improvement from the same period last year.
Three we had net income for the quarter of 12.1 million a significant 19.4 million improvement over the 7.3 million loss from Q4 2018.
For SG name was 23.1 million for the quarter and 111.1 million per year, well within our guidance of approximately 120 million per year.
Five our backlog grew to 811 million up 10% from the prior year end.
Six consulting fee revenue was 76.8 million for the quarter up 2% from Q4 last year.
Yes, seven we made significant progress intermediating, our control goals material weaknesses and strengthening our internal control framework, we eliminated a majority of existing material weaknesses and expect to complete remediation of the others. This year.
We generated free cash flow of 8.3 million for the quarter and 6.1 million per year, driven by strong collections, partially offset by capital expenditures.
Collections included 9.7 million from Libya, netting to 7.1 million after subcontractor payments and fees and Capex included approximately 2 million of costs related to consolidating our corporate headquarters into half former space.
Free cash flow was also impacted by payment of 3.2 million dollar retention bonus in July that was part of the now complete profit improvement.
Our story has been difficult to communicate and understand over the past year. As 2018 results included many nonrecurring costs, the magnitude of which overwhelmed the financials and resulted in adjustments to EBITDA that were larger than the actual EBITDA itself.
As we communicated over the course of 2019 these items wrapped up earlier in the year and we're not significant 2019.
Motors in the press release that you only onetime cost adjustment. This quarter is our modest 500000, FTC settlement, which now completely closes the chapter on the restatement.
We believe this now makes our story much clearer cleaner and easier to understand and permits us to focus on the core business. In fact, the only other EBITDA adjustment, we made with the kind we like we excluded 7.1 million net receipt from Libya from our adjusted EBITDA.
I want to provide you now with more detail on the results for the quarter.
We had indicated our belief that Q4 2018 was a trough and we return the quarter in 2019, we've seen evidence of this throughout the year continuing in Q4.
Let's start with best DNA I mentioned before that we finally closed the door in our restructuring expenses and restatement expenses. So it's appropriate to summarize the results.
2016 year before the restructuring SG nay, excluding FX was approximately 160 million.
Next our 2020 guidance is 120 million.
That's a 40 million dollar or 25% decrease.
These are critical points, because while macro factors and variations and timing of project awards funding and construction make it difficult to forecast any particular quarter.
Our materially lower cost base now leaves us much better equipped to handle these variations in cycles.
I cannot overemphasize, how important this restructuring and the resulting lower cost base is to hill and I am thrilled to share that we actually quite a bit better finishing the year at 111.1 million. That's 27.9 decreased from 2018. This does include a credit for delivery in that payment which was fully.
Reserved and the FCC settlement. It also includes noncash items that we excluded from adjusted EBITDA, namely stock compensation and unrealized FX adjusting for these items SGN. It was 30.7 million for the quarter and 116.8 million for the year to run rate for Q4 was slate.
The higher due to normal seasonal fluctuations such as increased PTCL for holidays application increased accounting tax fees.
Additionally, the investments we made in our aviation strategy discussed last quarter, we ramped up in Q4 add into SDMA. We expect this investment will be profitable as we execute our aviation strategy.
We continue to believe SGN eight of around 120 million is sustainable for 2020 and increases in CFR in gross profit will mostly fall right through to the bottom line, increasing our EBITDA margin over time to approximately 10%.
We're already seeing the results our adjusted EBITDA is 4 million for the quarter. Despite the increased backlog not yet fully driving increases in CFR.
Converting our successful bookings efforts into backlog and then that backlog CFR generally has allowed and due to our sustainable cost base, we're very excited that financial prospects as that CFR materializes going forward.
Our consulting fee revenue was 76.8 million for the quarter up 2% over Q4 2018, we expect CFR in 2020 to continue growing over the prior year.
We said over the past year, we will provide more detailed guidance when we were more comfortable doing so.
I'm happy to provide filing guidance for 2020.
One we are now operating at a sustainable run rate for costs at the level. We indicated we would expect SG need for 2020 to remain at approximately 120 million.
Two we expect our consulting fee revenue to increase to 330 to 350 million in 2020.
Three we expect our gross margin to tighten from slightly over 41% in 2019 to the high Thirtys for 2020 due to market conditions and the close out of some higher margin projects in the Middle East Asia in Us and four we expect adjusted EBITDA margin to be between five and a half.
And 7%.
We continue to believe that a 10% EBITDA margin on CFR is ultimately achievable as we gain more scale from our growth in backlog.
Our free cash flow, excluding Libya collections was close to breakeven for the year due to collections on other accounts and positive results of operations offset by certain nonrecurring payments such as the retention bonus and settlement discussed earlier.
Timing of payments in receipts and precise timing of startup and wind down of projects makes forecasting of free cash flow challenging.
We do expect to reinvest positive cash flow from operations back into growing business, while using our line of credit to address any temporary working capital requirements.
We expect we increased focus on collections and better operating results to continue while the effect of the timing of outgoing payments will fluctuate quarter to quarter.
At year end, we had approximately 16 million up unrestricted cash on hand, and 15 million of capacity under revolving credit facilities for a total of 31 million in available liquidity. We believe this level of liquidity is sufficient to support our cash requirements for the foreseeable future.
So from mentioned, we will file our annual report on form 10-K for the fiscal year ended December 31st 2019, once we complete certain administrative and other procedures relating to our ongoing review of information for annual audit.
The additional time needed arises from our previously disclosed material weaknesses in internal controls over financial reporting.
We intend to file our form 10-K as soon as practicable, but in any event within the extended deadline, which is 15 calendar days. Following March 16th the regular filing due date of the form 10-K provided under rule Twelveb 25.
Ill now turn the call over two ways if to highlight some major awards since our last call. Thank you Todd with that let's proceed to some of our latest wins in Europe movement forward into the European Aviation market continued as Hell. It's been collected as part of an international could Turkey Ham by Societa Enterprise took a tiny.
To offer design project management and supervision services for the implementation of investment plan for the Tanya Airport, Italy under a fix your contact recruiting a new terminal airside work and ancillary facility.
Elsewhere in Europe has been collected by JP, others that to provide technical assistance to the project implementation unit for the construction of approximately 5.5 kilometer motorway and the Mediterranean core network located in the bucket.
Given the challenging Geo technical properties of the region. The new motorway will feature separately elements, such as a 3.6 kilometers panel to bridges to buy it up and over path and around about.
Also in Europe, we continue to grow our outreach to Fortune 100 company globally.
Well with recently selected by foot locker Europe to provide PMC and services under a framework contact for store rollout in Germany, Switzerland, and Austria taken private company plans to reorganize the global operating model to ensure international growth in the Middle East Hill was recently awarded a contract by.
Expo Dubai 20 funny to provide consultancy services for the Expo 2020 Expo 2020, Dubai is the first world Expo to be hosted in the Middle East Africa, and South Asia region.
Theme is connecting mines, creating future, where the 200 participant consisting of nations organization businesses and educational institutions are expected to participate.
Also in Italy, Hell with E. Com is continuing its services on the Abu Dhabi Airport midfield terminal three the provision of additional construction management and supervision services for the 700000 square meter facility.
In North Africa Hell, it's been awarded a contract to provide project management consultancy services to Egyptians for healthcare services for the construction of capital Mad Phase One project in Potter City.
Capital Ned will be the largest medical city in the region spreading over approximately 116 acres. The project has three phases spanning over seven years and will provide over 2000 bed 450 intensive care units 40 operating room to serve over 5 million patients per year.
Phase one a profit approximately 174000 square meters will include an ambulatory and outpatient center, a 374 bed health care Center, and administrative and command center and a central plant.
Also in North Africa, Hello has been awarded a contract to provide project management consultancy services to Alpha Tom for commercial and administrative centers for the design and construction Apparel Festival City sports and social club in New Cairo, Egypt.
The carbon tends to serve over 5000 family members and spans an area of over 53000 square meters.
In the U.S. held a selected to provide construction management services to the Spokane Transit authority for the agency Cityline project.
Project involves the construction of the six mile quarter based bus rapid transit route the city line will provide frequent access through some of that is not significant district as an electric powered alternative to driving this best rate will help carbon emissions and reduced traffic in the city.
92.2 million Cityline project funded by the Federal Transit Administration, Nonstart Grant that day, and Spokane Transit authority.
So many you as Hell has been awarded to indefinite delivery indefinite quantity contract by the New York City Metropolitan Transit Authority to provide construction management and inspection services on the city's transit system until 2024.
The two contract split according to their funding lending federally funded contract the other being state funding contract.
In the U.S. Virgin Island Hell with widow, Brian was selected by the use of our Denali Department of health to provide program management services for the disaster recovery project Management office.
This is a five year contract.
Establishing a disaster recovery project management office to support timely completion of the department recovery management portfolio.
Our services will include management of budget resources and quality assurance based on industry standards that proposed team will include public health industry expert experienced a recovery and reconstruction of public health facilities and program.
In Brazil, we continue our successful relationship with confidence Penta Hilda selected to provide owners engineering and construction management services for the construction of two wind farm reenter Vento, one and Babylonian style reactive until one will be located in Rio Grande NRK the tunnel installed cups.
For the of the 600 million dollar facility will be 504 megawatt generated through 120 wind turbine each one of 4.2 megawatt capacity.
Abalone itself will be located in bye.
This 420 million dollar windfarm will consist of 81 time wind turbine 4.2 megawatt feeds.
As noted earlier our continued success in winning work is now resulting in growth and improved profitability throughout the company.
I'll now pass the call back for operator for Q Anite.
Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw your question past the pankey.
Please standby will be composite kinda roster.
As a reminder to ask a question you will need to press star one on your telephone.
And our first question comes from child Millhouse Woodman wall.
Line is now open.
Hey, Good morning, you mentioned, you had $16 million of cash on the balance sheet, what's the situation at the moment.
Todd do you want to take that.
Hi.
Yes so.
The.
The debt situation is that we use the word.
We used the money that we got.
From Libya pay Olivia receipt to to pay down.
To pay down our our debt so our.
Our.
Leverage ratio is a little bit below two right now I believe it's coming in at about 1.89, or so and Thats based on total total consolidated debt of up somewhere in the mid $40 million range Charles.
Okay, Thanks, and since you mentioned that.
How much more is there to collect on the Libya receivables.
I believe its third.
Todd.
It's about a 9 million.
It's approximately 30 little bit over 30 million.
US dollars remaining.
Thank you.
I get the big quite well, there's several big questions at the moment.
With one of the big questions of course is have you any indication that any of your project in the middle east might be delayed or canceled because of the recent sharp decline in the price of oil.
I'll take that this is Ralph very good question I'm glad you asked.
To date, we have not seen.
Any of our projects being jeopardy, because of the temporary or price and the crisis has created.
All of our projects are really long term.
And in the mid so construction.
And would be difficult for them to have any disruptions.
We've also not seen any major impacts on sort of shoes that we have.
Nor have we seen any delays yet.
Granted it's only a few weeks.
So I.
I do.
Caution, we don't know what's out there in the future, but for now we haven't seen any impacts.
And then another generals question the profit improvement project I.
I think you indicated earlier that the.
It's.
Finished.
So the.
Margin EBITDA margin improvement that we would all like to see me over the next years.
Would come from growing the top line so that.
The profitability would.
Improve because of.
Revenue growth and the.
The cost structure.
Improvements that were encompassed by the profit improvement plan have been finalized as that is the way to look at the situation.
That is correct.
We feel as we grow the topline the additional SGN a that's required is going to be minimal.
To a certain degrees constantly none.
Obviously after after a certain point, there's going to be a little bit but the addition.
He is going to weigh outweigh.
The profitability.
Great. Thank you very much.
Thank you as a reminder to ask a question you any of the press star one on your telephone.
I'm not showing any further questions at this time I would now like to turn the call back over to Alice Golly for closing remarks.
Thank you.
In closing, let me reiterate.
New bookings in 2019 were 495 million.
CFR is expected to growing 2020.
We anticipate CFR to be within the range of 332 $350 million.
We may we maintain a stronghold on our SGN a cost.
You have settled with the FCC and closed out all issues concerning our financial restatements.
And our enhanced liquidity facilitates efficient funding of the anticipated growth in twentytwenty entered their any.
Quitted requirements be needed for the temporary.
Worldwide crisis that we're facing correctly.
Thank you for.
Thank you everyone for participating on the call and we look forward to our next one this concludes our call for today.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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Welcome to international incorporated fourth quarter earnings for fiscal year 2019 Investor call.
On this call John that's the comp well provide some introductory remarks on the concept of the call.
John will be followed by L. International CEO, Robert Golly, and senior Vice President and Chief Financial Officer, Todd Weintraub.
Mr. Guy, we will discuss the status as a company an expectation.
Hello, immediate and long term future.
So why chocolate detail hills fourth quarter results for 2019.
This call is being recorded John please begin.
Thank you to everyone on this call. Please note. The following certain statements made on this call are considered forward forward looking statements within the meeting of the private Securities Litigation Reform Act 1995, and it is our intent that any such statements be protected by the safe Harbor created thereby.
Hi, except for historical information.
Matter are set forth hearing, including any statements belief or intent and any statements concerning our future plans and strategies are forward looking statements. These forward looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties, we do not intend and undertake no obligation to.
Update any forward looking statement with that let me turn the call over two girls Golly Hell International CEO.
Thank you John and thank you to everyone on the call.
We have knowledge the world is going through difficult times, and I hope everyone is healthy and stay strong until this crisis passes.
And the mix of all this we are excited to share with you our fourth quarter and 2019 results and we'll be filing our annual report.
I'm form 10-K for the fiscal year ending December 31st 2019.
Within the extended deadline 15 days following March 16.
The regular filing due to.
The additional time need it has to compete certain administrative.
And other procedures related to our ongoing annual audit.
Todd will provide more details later on on the call.
Following the same sequence as our previous earnings call I will brief you on significant achievements during this quarter.
Todd will provide details on financial results.
Mr. This Jeff our senior Vice President I will cover the marketing will go over some of the major awards since our last call.
Then we would open the call for questions and answers and lastly, I want to provide some closing remarks.
[laughter]. That's proceed with some of our significant accomplishments to begin.
We reached a settlement would be as you see on the investigation concerning our past financial restatements.
There has been an increase in our.
In order for CF R&D, arriving from our growing backlog.
We concluded the year, which $16.9 million adjusted EBITDA and over 14 million in earnings.
Bookings were strong during the year well that showed about 495 million ending the year with a backlog of 811 million. We expect this trend to continue in 2020 as we see strong demand for our services in all operations.
Consulting fee revenue in the fourth quarter showed a slight increase as the backlog made its way to CFR, we anticipate CFR well continue to grow throughout Twentytwenty and we estimate CFR would it be between 332 or 350 million for Twentytwenty.
We have collected 9.7 million from our long outstanding Libya receivables. This has positively impacted our liquidity and will give us additional flexibility to finance the growth of our business.
We expect to collect entire amount owed to us by our clients in Libya as the political situation normalizes in the country.
In addition, we have tightened our controls and have closed out a majority of material weaknesses previously identified and anticipate the remaining weaknesses to be goes out in twentytwenty.
Last but not at least.
We are monitoring closely current world events regarding the Corona wires and oil prices, we are taking precautionary steps to protect our employees and the community they live in.
Now, let me pass the call to Todd to present financial results.
Thank you Ryan and thanks to everyone on the call.
So it will deny have now completed our first full fiscal year at the helm Hale.
What do we took over in the fall 2018, the business in financials were still in a downward spiral as the company continue to feel the impact the restructuring and restatements that consumes most of 2017 end 2018.
We communicated our business priorities for 2019 as growing backlog, maintaining our lower cost space, improving liquidity the collections and returning to profitability.
We also communicated a commitment to file our financials timely and accurately and to improve our internal controls over financial reporting.
I am thrilled to report significant progress on all these initiatives a year later.
Number one we collected a large payment on I wouldnt be receivable as Charlie said 9.7 million, which next to 7.1 million after subcontractor payments and other fees.
To our adjusted EBITDA was $4 million for the quarter, marking our fourth consecutive quarter of positive adjusted and on adjusted EBITDA and a four and a half million year over year improvement from the same period last year.
Three we had net income for the quarter of 12.1 million a significant 19.4 million improvement over the 7.3 million last Q4 2018.
For SDMA was 23.1 million for the quarter and 111.1 million for the year well within our guidance of approximately 120 million per year.
Five our backlog grew to 811 million up 10% from the prior year end.
Six consulting fee revenue was 76.8 million for the quarter up 2% from Q4 last year.
Yes, seven we made significant progress intermediating, our control both material weaknesses in strengthening our internal control framework, we eliminated a majority of existing material weaknesses and expect to complete remediation of the others. This year.
We generated free cash flow of 8.3 million for the quarter and 6.1 million per year, driven by strong collections, partially offset by capital expenditures.
Collections included 9.7 million from Libya, netting a 7.1 million after subcontractor payments fees and Capex included approximately 2 million of costs related to consolidating our corporate headquarters into half former space.
Free cash flow was also impacted by payment of 3.2 million dollar retention bonus in July that was part of the now complete profit improvement.
Our story has been difficult communicate and understand over the past year. As 2018 results included many nonrecurring costs, the magnitude of which overwhelmed the financials and resulted in adjustments to EBITDA that were larger than the actual EBITDA itself.
As we communicated over the course of 2019 these items wrapped up earlier in the year and we're not significant 2019.
Motion to press release that you only onetime cost adjustment. This quarter is our minus 500000, FCC settlement, which now completely closes the chapter on the restatement.
We believe this now makes our story much clearer cleaner and easier to understand and permits us to focus on the core business. In fact, the only other EBITDA adjustment we made what's the kind we like we excluded 7.1 million net receipt from Libya from our adjusted EBITDA.
I want to provide you now with more detail on the results for the quarter.
Yes, I indicated our belief that Q4 2018 was a trough and we return the quarter in 2019, we've seen evidence of this throughout the year continuing in Q4.
Let's start with best DNA I mentioned before that we finally close the door in our restructuring expenses and restatement expenses. So it's appropriate to summarize the results.
2016, even before the restructuring as DNA, excluding FX was approximately 160 million.
Next our 2020 guidance is 120 million.
That's a 40 million dollar or 25% decrease.
These are critical points, because while macro factors and variations and timing of project awards funding and construction make it difficult to forecast any particular quarter.
Generally lower cost base now leaves us much better equipped to handle these variations in cycles.
I cannot overemphasize, how important this restructuring and the resulting lower cost base is to hill.
I am thrilled to share that we actually had quite a bit better finishing the year at 111.1 million. That's 27.9 decreased from 2018. This does include a credit for delivery in that payment, which was fully reserved FCC settlement. It also includes noncash items that we excluded from adjusted EBITDA.
Namely stock compensation and unrealized FX adjusting for these items SGN. It was 30.7 million for the quarter and 116.8 million for the year. The run rate for Q4 was slightly higher due to normal seasonal fluctuations such as increased PTCL for holidays indication increased.
Taxis.
Additionally, the investments we made in our aviation strategy discussed last quarter, we upped up in Q4 add into ESG. Today, we expect this investment will be profitable as we execute our aviation strategy.
We continue to believe SGN eight around 120 million sustainable for 2020, and the increases in CFR and gross profit will mostly fall right through to the bottom line, increasing our EBITDA margin over time to approximately 10%.
We're already seeing the results our adjusted EBITDA is 4 million for the quarter. Despite the increased backlog not yet fully driving increases in CFR.
Converting our successful bookings efforts into backlog and then that backlog CFR generally has allowed and due to our sustainable cost base, we're very excited that financial prospects as that CFR materializes going forward.
Our consulting fee revenue was 76.8 million for the quarter up 2% over Q4 of 2018, we expect CFR in 2020 to continue growing over the prior year.
We said over the past year, we would provide more detailed guidance when we were more comfortable doing so.
Happy to provide the filing guidance for 2020.
One we are now operating at a sustainable run rate for costs at the level. We indicated we would expect SGT for 2020 to remain at approximately 120 million.
Two we expect our consulting fee revenue to increase to 332 or 350 million 2020.
Three we expect our gross margin to tighten from slightly over 41% in 2019 to the high Thirtys for 2020 due to market conditions and the close out of some higher margin projects in the Middle East Asia in Us and four we expect adjusted EBITDA margin to be between five and a half.
And 7%.
We continue to believe that a 10% EBITDA margin on CFR is ultimately achieve evolve as we gain more scale from our growth in backlog.
Our free cash flow, excluding Libya collections was close to breakeven for the year due to collections on other accounts and positive results of operations offset by certain nonrecurring payments such as the retention bonus in FCC settlement discussed earlier.
Timing of payments in receipts and precise timing of startup and wind down of projects makes forecasting of free cash flow challenging.
We do expect to reinvest positive cash flow from operations back into growing the business, while using a line of credit to address any temporary working capital requirements.
We expect to be increased focus on collections and better operating results to continue while the back of the timing of outgoing payments will fluctuate quarter to quarter.
At year end, we had approximately 16 million up unrestricted cash on hand, and 15 million of capacity under revolving credit facilities for a total of 31 million in available liquidity. We believe this level of liquidity is sufficient to support our cash requirements for the foreseeable future.
So from mentioned, we will file our annual report on form 10-K for the fiscal year ended December 31st 2019, once we complete certain administrative and other procedures relating to our ongoing review of information for annual audit.
The additional time you it arises from our previously disclosed material weaknesses in internal controls over financial reporting.
We intend to file our form 10-K as soon as practical ball, but in any event within the extended deadline, which is 15 calendar days. Following March 16th the Red you were filing do data form 10-K provided under rule Twelveb 25.
Ill now turn the call over to later Ziff to highlight some major awards since our last call. Thank you Todd with that let's proceed to some of our latest wins in Europe, that's already into the European Aviation market continued as Hell. It's been collected as part of an international could Turkey Ham by Societa Enterprise Qahtani.
To offer design project management and supervision services for the implementation of the investment plan for the Khatami Airport, Italy under a six year contract, including a new terminal airside work and ancillary facility.
Elsewhere in Europe has been collected by JP other stuff to provide technical assistance to the project implementation unit for the construction of approximately 5.5 kilometer motorway and the Mediterranean core network located in the bucket.
Given the challenging Geo technical properties of the region. The new motorway will feature several unique elements such as a 3.6 kilometers panel to bridges to buy it up and over path and around about.
Also in Europe, we continue to grow our outreach to fortune 100 companies globally.
Well with recently selected by foot locker here to provide Pmcs services under a framework contract for store rollout in Germany, Switzerland, and Austria taken private company plans to reorganize the global operating model to ensure international growth in the Middle East Hill was recently awarded a contract.
Well grew by 2020 to provide consultancy services for the Expo 2020.
2020, Dubai is the first World Expo, we hosted a middle East Africa, South Asia region.
Theme is connecting mine is creating a future where the 200 participant consisting of nations organization businesses and educational institutions are expected to participate.
Also in the Middle East Hell with E. Com is continuing its services on the Abu Dhabi Airport midfield terminal three the provisions of additional construction management and supervision services for the 700000 square meter facility.
In North Africa Hell, it's been awarded a contract to provide project management consultancy services to Egypt for healthcare services for the construction of capital Mad Phase One project in Potter City Jeff.
Capital, Matt will be the largest medical city in the region spreading number approximately 116 acres. The project has three phases spanning over seven years and will provide over 2000 beds 450 intensive care units 40 operating room to serve over 5 million patients per year.
Phase one a profit approximately 174000 square meters.
Good ambulatory and outpatient center, a 374 bed health care Center, and administrative and command center and a central plant.
Also in North Africa, Hello has been awarded a contract to provide project management consultancy services to Alpha Tom for commercial and administrative centers for the design and construction of capital City Sports and social club in New Cairo, Egypt.
The club intends to serve over 5000 family members and spans an area of over 53000 square meters.
In the U.S. held a selected to provide construction management services to the Spokane Transit authority for the agency Cityline product.
This project involves the construction of a six mile quarter based box rapid transit route the city line will provide frequent access through some of the city's most significant district as an electric powered alternative to driving this baathree will help kind of carbon emissions and reduced traffic in the city.
92.2 million Cityline project is funded by the Federal Transit administration, well start grant the state and the Spokane Transit authority.
Also in the U.S., how it has been awarded to indefinite delivery indefinite quantity contract by the New York City Metropolitan Transit Authority.
Construction management and inspection services on the city's transit system until 2020 for the two contracts, but according to their funding lumping federally funded contract. The other being is based on the contract.
In the U.S. Virgin Island Hell with when O'brien was selected by the US Virgin Island Department is how to provide program management services for the disaster recovery project Management office.
This is a five year contract.
Publishing a disaster recovery project management office to support timely completion of the department recovery management portfolio.
Our services will include management, a budget resources and quality assurance based on industry standards. The proposed team will include public health industry.
Experienced a recovery and reconstruction.
It helps to fill these and program.
In Brazil, we continue our successful relationship with confidence spent.
He was selected to provide owners engineering and construction management services for the construction of two wind farms reenter that into one and Babylonian style.
We Atlanta, one will be located in Rio Grande NRK. The total installed capacity of the 600 million dollar facility will be 504 megawatt generated through 120 wind turbine each than a 4.2 megawatt capacity.
Abalone itself will be located in bye.
This 420 million dollar windfarm will consist of 81 time wind turbines 4.2 megawatts each.
As noted earlier our continued success in winning work is now resulting in growth and improved profitability throughout the company.
Ill pass the call back for operator for Q1.
Thank you.
Ask a question you will need to press star one on your telephone to withdraw your question best the Pankey.
Please standby will be compiled the Monday roster.
As a reminder to ask a question you wanting to press star one on your telephone.
And our first question comes from Charles Neuhauser Woodman wall.
And is now open.
Hey, Good morning, you mentioned, you had $16 million of cash on the balance sheet, what's the situation at the moment.
Todd do you want to take that.
Hi.
Yes so.
The.
The debt situation is that we used the.
We use the money that we got.
From Libya pay Olivia receipt to lot to pay down.
Pay down our our debt so our.
Our.
Leverage ratio is a little bit below two right now I believe it's coming in at about 1.89, or so and that's based on total total consolidated debt.
Up somewhere in that mid $40 million range Charles.
Okay. Thanks, since you mentioned that.
How much more is there to collect on the Libya receivables.
I believe it's.
Todd.
It's about 9 million.
It's approximately 30, a little bit over 30 million.
Yes dollars remaining.
Thank you.
The the big well there are several big questions at the moment.
With one of the big questions of course is have you any indication that any of your project in the middle east might be delayed or canceled because of the recent sharp decline in the price of oil.
I'll take that this is Robert.
Very good question I'm glad you asked.
To date, we have not seen.
Any of our projects being in jeopardy, because of the temporary or price and the crisis has created.
All of our projects are really long term.
And in the midst of construction.
It would be difficult for them to have any disruptions.
We've also not seeing any major impacts on our shoes that we have.
Nor have we seen any delays yet.
Granted it's only a few weeks.
So.
I do.
Caution, we don't know what's out there in the future, but for now we haven't seen any impacts.
And then another generals question the profit improvement project I.
I think you indicated earlier that.
It's.
Finished.
So the.
Margin EBITDA margin improvement that we would all like to see over the next years.
Would come from growing the top line so that.
The profitability would.
The improved because of.
Revenue growth and the.
The cost structure.
Improvements that we're in comments by the profit improvement plan have been finalized as that is that way to look at the situation.
That is correct.
We feel as we grow the top line the additional SGN, a that's required is going to be minimal.
To a certain degree is going to leave non.
Obviously after after a certain point theres going to be a little bit but the addition.
He is going to play out play.
Comfortably.
Great. Thank you very much.
Thank you.
Hi, there to ask a question you wanted to press star one on your telephone.
I'm not showing any further questions at this time I would now like to turn the call back over to ROV Golly for closing remarks.
Thank you.
In closing, let me reiterate.
New bookings in 2019 were 495 million.
CFR is expected to growing 2020.
We anticipate CFR to be within the range of 332 $350 million.
We may we maintained a strong hall on our SGN a cost.
You have settled with the FCC and closed out all issues concerning our financial restatements.
And our enhanced liquidity facilitates efficient funding of the anticipated growth in 2020.
And should there any.
Liquidity requirements be needed for the temporary.
Worldwide crisis that we're facing correctly.
Thank you for.
Thank you everyone for participating on the call and we look forward to our next one.
Those are call for today.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.