Q2 2022 Hill International Inc Earnings Call
around 40 people to 50 people on those projects. It continues to be there and there are opportunities for us to grow in that particular contract as well in the future.
Not just by extending, but by adding other facilities to it.
". you
A couple thousand facilities, and if I am way off, please correct me. If you were to add additional facilities to that contract, would it be a meaningful number or a small number relative to the starting base?
I think it would be a meaningful number.
And is that one of the larger deals that you're hoping you can announce in the next few quarters? Or is that in addition to what you were previously referring to?
No, those I was referring to was in addition to this one. These are brand new assignments with new clients.
I wish you luck on all of those. Lastly, if I may continue to take more time, the $600,000 charge for the bond, can you explain that in more detail? I apologize. It's just not a concept that I am familiar with.
And if you want me to take it offline, that's fine, but I would love whatever explanation that you can provide behind just maybe not the individual client, but the...
just the phenomenon that happened.
Bill, let me, I'll try and…
Good, good Todd, maybe you want to take it.
Okay, um, it's you know, I'm quite a few of our projects particularly international we're required to put up a performance bond as we win these and the Requirements for a client to call their the performance bonds are pretty low they pretty much just have to put in a letter to the bank and it happens and the onus becomes a nice search to recover that so that's what happened client
without getting into who or why, really, you know, we didn't feel had anything to do with our performance. It was, you know, more about other things going on in the project. Called this bond, so, you know, we've got to make good on it. We've got to record the charge. We immediately went to court and we had our day in court pretty quickly and got a final court order. It now has to be returned. We can't reverse the charge until, you know, we actually recover that, which we expect to happen.
You know Later this year, but just to add a little bit of color of that You know, I would mention that in the history of the company since 1979 I think that we've had three bonds called so, you know, it's always a risk And it can happen but it's it's not common It's it's very rare that it actually does happen and in this case, we'll be able to recover it Uh, Rose, did you want anything to that?
No, I think you have given sufficient.
Bill, any other?
Does that clarify? That does clarify. Thank you. I appreciate that. And my final question is in response to the prior questioners
a question about activity levels. Do we understand correctly that, or did we hear correctly, that you are feeling like the activity level is picking up and you are gaining momentum in terms of orders and therefore future revenues? Do we understand correctly that activity levels are picking up and you are gaining momentum in terms of orders and therefore future revenues?
That is correct.
Great, thank you.
Thank you.
Our next question comes from the line of Michael Rasner, a private investor. Please proceed with your question.
My question is actually in regards to the letter from Godspeed Capital and I need to say...
You guys won't comment on that right now. But my question is, has Hill or Will Hill been hiring that type of firm?
to explore other suitors.
That's something that.
can be commented on right now.
Well, Michael, we are a publicly listed company. We are always for sale, as you know, but the Board has not decided yet, made any decisions on hiring anybody, and we are not commenting on any process.
Okay, thank you very much.
Our next question comes from the line of Steve Schnieper, a private investor. Please proceed with your question.
Good morning guys, good quarter. I'm still hammering a little bit on the takeover offer which I know you're not commenting on. My concern is you received a buyout offer about three weeks ago. I've never seen in all my years of investing the public company that never acknowledged it.
You didn't put out an 8k. You didn't put out a statement that says we've received it. We'll review it in due course It wasn't in your 10-Q until you got to a Q&A on a conference call Can you explain the disclosure process from the company of why you consider this a non material event and chose not to even acknowledge it?
Well, we've obviously discussed any, you know, whether or not it required a response from the company with our SEC counsel. We've taken advice on that. As you know, it was not a private offer. They chose to make that a public offer. So it is out there. It's publicly disclosed.
and there's no requirement for us to publicly respond to that and we've chosen not to publicly respond as Raul said. You know the board is evaluating and deciding steps so there's frankly nothing to report at this point.
That's an interesting position by counsel because that's because somebody says something doesn't absolve in my mind and my experience with company of saying we actually received it.
You know we we received this the guy just because somebody says I sent a letter Doesn't mean that there's any reality to it and the company says we get it and we'll consider it I mean, that's a very strange thing to not have to disclose it, but if your counsel sign it off
You know, all right interesting. I hope your disclosures in the future on this process will be better than relying on some third party to send those out to investors. It's a little concerning. Thank you.
If there are no further questions in the queue, I'd like to hand the call back to management for closing remarks.
Thank you very much for your time.
And have a wonderful day. We look forward to speaking with you in connection with our 2022 third quarter financial results.
Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
Silence.