Q2 2021 Hill International Inc Earnings Call

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Greetings and welcome to Hill International second quarter, 2021 financial results conference call and webcast. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone.

Keep that as a reminder, this conference is being recorded.

I would now like to turn the conference over to your host Mr. Devin Sullivan Senior Vice President of at the equity group. Thank you you may begin.

Thanks, Rob Good morning, everyone and thank you for joining us today for Hill Internationals second quarter 2021 financial results Conference call. Our speakers for today's call will be Robert Scully, Chief Executive Officer, and Todd Weintraub Company's Chief Financial Officer.

Before we begin I'd like to remind everyone that certain statements made during this call maybe considered forward looking statements within the meaning 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 thereby.

Except for historical information the matters set forth herein, including but not limited to any statements of belief for intense any statements concerning financial projections, our plans strategies and objectives for future operations are forward looking statements.

These forward looking statements are based on our current expectations estimates and assumptions and are subject to certain risks and uncertainties, including but not limited to risks and uncertainties related to the COVID-19 pandemic, the willingness and ability of the governments and other clients to undertake and complete infrastructure projects and our ability to maintain and support business day.

Element of activities, although we believe that the expectations estimates and assumptions reflected in our forward looking statements are reasonable actual results could differ materially from those projected or assumed in any of our forward looking statements.

Factors that could cause our actual results to differ materially from the estimates or projections contained in our forward looking statements are set forth in the risk factors section and elsewhere in the reports we have filed with the Securities and Exchange Commission, including the unfavorable global economic conditions may adversely impact our business our backlog may not be fully realized as revenue.

And our expenses may be higher than anticipated we.

We do not intend and undertake no obligation to update any forward looking statements.

I will draw your attention to slides 2 and 3 which provides a safe harbor information and definitions of the non-GAAP measures, we will be presenting this morning.

Turning to slide for I'll, now turn things over to <unk> Ghali Hill, Chief Executive Officer growth. Please go ahead.

Thank you Devin.

Good morning, everyone and thank you for joining us today to discuss our 2021 second quarter financial results.

I'll begin as always by thanking Hill is 2900 professionals in 36 countries around the world for their continuing the hard work and dedication.

This year Hill.

The celebrating 45 years of helping clients deliver the infrastructure of change.

Internationally of recognize teams have of extra.

Experts have delivered thousands of successful projects across the world when the aggregate construction value of more than $600 million.

Over these past 5 decades, our colleagues have created hill legacy.

More importantly, now.

Yeah, we'll alter our future as we pursue multiple growth opportunities this year.

And beyond.

Slide 5 please.

Now, let's look at the summary of our pro forma for the second quarter, we produced $77.7 million of CFR.

Up from last year's second quarter.

And.

First quarter 2021.

The headwinds we experienced in the first quarter of this year have abated and the global recovery from COVID-19 is picking up speed.

We continue to extract the business will accelerate in the second half of the year, particularly in the U S.

We have removed the lives of our staff and reach pre COVID-19 staffing levels by quarter end.

Our SG&A for the quarter was $27.1 million.

Marginally from last year's second quarter, but declining slightly from quarter 1 of this year.

As revenue and normality of return post COVID-19, we expect that SG&A will gradually increase during 2021 and reach annual levels of approximately of $120 million in the in future years.

We reported an income of $2.9 million in the quarter.

On the net basis, we reported a modest loss of.

Adjusted EBITA.

It was $3.8 million.

I'm also very pleased with the pace of new bookings, which came in at $19.4 million in the second quarter, resulting in the book to burn ratio of 116, 4%.

These new awards cover multiple geographies and the end markets, including aviation rail and transit roadways.

<unk> and public facilities for.

For the first half of 2021, New awards totaled $182 million, resulting in the year to date book to burn ratio of 121 per share.

We remain optimistic about new awards activity for the balance of this year.

Moving on to slide 6.

This slide highlights some of our recent wins, including an award from Los Angeles World airports or lower to manage airport concessions development Ken.

Tendon projects.

And airport commercial analysis and development of lower properties, including Los Angeles International Airport Van Nuys Airport.

And Palmdale landholdings.

Our contract to continue our program management services for the Metro go the line Foothill extension construction of authority for Phase 2 B of the award winning Foothill Gold line Light rail project.

The contract to provide technical assistance for phase II, Bucharest, Romania, as clean a wastewater treatment for.

<unk> 1 of the largest environmental project in the country.

And the award to manage for Loudon.

Hung piece of $65 million Recreation and community Center project in Ashburn, Virginia, A project Management award to support the advance roadway package of the Medina Central area MCA development.

This is a 1 point for square kilometer project and the municipality of Medina.

And the key part of the Kingdom of Saudi Arabia is ambitious vision 2030 program.

I'm also pleased to announce 2 additional project wins.

I know an award from the city of Philadelphia to continue providing capital program administration support services for the ongoing multibillion dollar capital program at Philadelphia International Airport. This award represents.