DELIVERING THE INFRASTRUCTURE - Investors
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Investor Presentation DELIVERING THE August 2021 INFRASTRUCTURE Program Management | Project Management | Construction Management OF CHANGE Project Management Oversight | Management Consulting | Facilities Management
Forward Looking Statements
Certain statements contained herein may be considered "forward-looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, and it is the intent of Hill International, Inc. referred to throughout as “Hill” the “Company”, “we”, “us” and “our” 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 or intent, any statements concerning our plans, strategies, and objectives for future operations; and
any statements regarding our intent to file late periodic reports or relisting on a national securities exchange, 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. 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. Important
factors that could cause our actual results to differ materially from 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
preparation of and the audit or review, as applicable, of filings may take longer than currently anticipated. We do not intend, and undertake no
obligation, to update any forward-looking statement.
2
Non-GAAP Measures
The following measures below are not measures of financial performance under U.S. generally accepted Company believes that EBITDA is useful to investors and other external users of Hill's financial statements in
accounting principles ("GAAP") and should be considered in addition to and not as a substitute for, or superior evaluating its operating performance because EBITDA is widely used by investors to measure a company’s
to, the related measure of performance prepared in accordance with GAAP. operating performance without regard to items such as interest expense, taxes, and depreciation and
amortization, which can vary substantially from company to company depending upon accounting methods
Backlog and book value of assets, capital structure and the method by which assets were acquired.
Backlog represents the Company's estimate of the amount of uncompleted projects under contract and awards Adjusted EBITDA is EBITDA, adjusted to exclude the impact of certain items, including non-recurring, one-time
in-hand that are expected to be recognized as CFR in future periods as a component of total revenue. Hill's costs (as presented in the table below) and non-cash items such as unrealized foreign currency exchange
backlog is based upon the binding nature of the underlying contract, commitment or letter of intent, and other losses (benefit) and share-based compensation expense.
factors, including the economic, financial and regulatory viability of the project and the likelihood of the
contract being extended, renewed or canceled. The company has added additional controls on the booking Adjusted Net Income (Loss) Attributable to Hill
rules to reflect more accurate actual backlog at any period. Although backlog reflects business that the
Adjusted net income (loss) attributable to Hill is net income (loss) attributable to Hill, adjusted to exclude non-
Company considers to be firm, cancellations or scope adjustments may occur. It is an important indicator of
cash items including unrealized foreign currency exchange losses (gains), share-based compensation and the
future performance and is used by the Company in planning Hill's operational needs. Backlog is not a measure
write-off of leasehold improvements previously included in property and equipment on the Company's
defined in GAAP and the Company's methodology for determining backlog may not be comparable to the
consolidated balance sheets. The Company believes that adjusted net income (loss) attributable to Hill is
methodology used by other companies in determining their backlog.
useful to investors and other external users of Hill's financial statements as a measure of a company's
operating performance, without regard to non-cash activity.
Adjusted Operating Profit (Loss)
Adjusted operating profit (loss) is operating profit (loss), adjusted to exclude non-cash items including Free Cash Flow
unrealized foreign currency exchange losses (gains), share-based compensation and the write-off of leasehold
Free cash flow, a non-GAAP measure, includes net cash provided by (used in) continuing operations, less
improvements previously included in property and equipment on the Company's consolidated balance sheets.
purchases of property and equipment. Free cash flow is a useful indicator that provides additional perspective
The Company believes that adjusted operating profit (loss) is useful to investors and other external users of
on Hill's ability to generate cash that is available to the Company for taxes and other corporate purposes.
Hill's financial statements as a measure of a company's core ongoing operations, without regard to non-cash
Investors should recognize that free cash flow might not be comparable to similarly-titled measures of other
activity.
companies. This measure should be considered in addition to, and not as a substitute for or superior to, any
measure of performance prepared in accordance with GAAP.
EBITDA & Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), in addition to operating profit, net
income, and other GAAP measures, is a useful indicator of Hill's financial and operating performance and its
ability to generate cash flow from operations that are available for taxes and capital expenditures. Investors
should recognize that EBITDA might not be comparable to similarly titled measures of other companies. The
3
A Global Leader in Project Management
Delivering the Infrastructure of Change
Hill’s internationally recognized team of program,
project, and construction management experts have
helped our clients deliver thousands of successful
projects across the world. HQ 72 Offices ~2,900
Philadelphia, PA 36 Countries Employees
45 Years 10,000 + $600 BN
Industry Experience Project Assignments Total Construction Value
of Projects
4
Investment Considerations
• 45-year track record of successful global project completion
• Q2 2021:
• higher CFR and new bookings
• backlog up from 12/31/20, with highest 12-month backlog in two years
• Diverse revenue profile driven by varied geographic, end market, and client
exposure allows us to quickly adapt to changing market environments
• Low-risk professional services model combined with disciplined project
execution
• Deliberate pivot towards global infrastructure projects, especially in the
U.S. and Europe
New Container Terminal Facility
at Tangiers MedPort, Morocco
5
Sole Focus on Project / Construction Management
Program Project Construction
Management Management Management
Project Integrated
Troubled Estimating & Cost
Management Management
Project Turnaround Management
Oversight System
Project Staff PLA
Commissioning Augmentation Consulting
Facilities
Management
6
Q2 2021 Overview
• CFR improved quarter-over-quarter and
CFR SG&A Operating Income
sequentially from Q1 2021, with continued
improvement expected throughout 2021
$77.7 M $27.1 M $2.9 M
• SG&A was 34.9% of CFR in Q2 2021 vs. 35.5%
of CFR in Q2 2020
• Operated profitably Net Loss Adj. EBITDA* Bookings
• Strong new bookings
• Q2 2021 book-to-burn of 116.4%
$(0.5) M $3.8 M $90.4 M
• 1H 2021 book-to-burn of 121%
* non-GAAP measure
7
Metro Gold Line Foothill
Extension Construction
2021 Wins
Authority
Contract Continuation of
Program Management
Services for the Foothill Gold
Line Light Rail Project
Miami-Dade County Aviation
Department (MDAD)
Municipality of Bucharest
Program Management Services for
Glina Wastewater Treatment
Capital Improvement Program
Plant Phase 2, Bucharest,
including Miami International
Romania
Airport and County executive and
general aviation airports
Loudoun County
City of Philadelphia, Division of
Aviation Recreation and Community
Center, Ashburn, VA
Capital Program Administration
Support Services for Philadelphia
International Airport
Los Angeles World Airports (LAWA)
Rua Al-Madinah Holding Company
Commercial Development Services
Contract to Provide Program Project Management Services to
Management for Airport Concessions Support the Advance Roadways
Development, Tenant Projects, and Package of the Madinah Central
Airport Commercial Analysis and Area (MCA) Development, KSA
Development
8
Evolving Our Business: Facilities Management
• Introduces recurring revenue business model by
extending project relationship to long-term operations
• Current focus on Middle East / North Africa with
opportunities in all markets in which Hill currently conducts
business
• Multiple solutions based on facility complexity, purpose,
client requirements, installed equipment, and budget
• Average contract duration = 3 years
• Performance:
o $8.2 M of CFR for 6 months ended June 30, 2021
o 9.5% of total Middle East / North Africa backlog at
June 30, 2021
9
Acquisition: Hill International Technical Services
• New entity formed following the Q4 2020 acquisition of
a licensed NYS engineering corporation
• Expected to provide a significant growth engine in one
of our largest U.S. operating regions beginning in 2021
• Positions Hill to pursue major aviation, highway and
bridge, and rail and transit programs and projects
10Acquisition: NEYO Group
• Acquired June 30, 2021
• 120 professionals provide cost management,
estimating, project management, and project COMMERCIAL RESIDENTIAL HEALTHCARE /
HOSPITALITY
monitoring services
• Offices in Bangalore, Chennai, Delhi, and Mumbai,
as well as project offices in Hyderabad, Pune, and
Kolkata
• Strengthens Hill’s presence in India INDUSTRIAL RETAIL
11Infrastructure Update
Significant Experience in End Markets Targeted for Funding
• Bi-partisan agreement on $1.0 trillion
U.S. Infrastructure legislation TRANSIT & RAIL HIGHWAY & BRIDGE PORTS & HARBORS
• Focus on physical infrastructure projects such as
roads, bridges, passenger rails, drinking water,
and wastewater systems
• NextGenerationEU contemplates €750 billion in
loans and grants to support reforms and
investments undertaken by EU countries AVIATION WATER POWER
• Hill is well-positioned to capture these opportunities
• 46% of 1H 2021 new awards were
infrastructure related
• $193 M 2020 infrastructure awards
Source: https://www.cnbc.com/2021/07/28/heres-whats-in-the-550-billion-bipartisan-infrastructure-deal.html
12Statement of Operations Summary ($ in Thousands)
Q2 2021 Q2 2020 1H 2021 1H 2020
Consulting fee revenue $ 77,688 $ 75,760 $ 150,097 $ 152,910
Total revenue $ 101,546 $ 94,449 $ 188,632 $ 187,757
Gross profit $ 31,283 $ 29,417 $ 58,514 $ 57,677
Selling, general and administrative expenses $ 27,098 $ 26,857 $ 54,784 $ 54,955
Operating profit (loss) $ 2,897 $ 3,309 $ 2,743 $ (556)
Interest and related financing fees, net $ 1,504 $ 1,296 $ 2,851 $ 2,595
Other loss, net $ 2 $ 3,847 $ -- $ 3,502
Earnings (loss) before income taxes $ 1,391 $ (1,834) $ (108) $ (6,653)
Income tax expense $ 1,793 $ 102 $ 2,869 $ 1,705
Net loss attributable to Hill Int’l., Inc. $ (493) $ (1,954) $ (3,184) $ (8,535)
13CFR: U.S. Focus, Global Reach
Q2 2021 Total CFR = $77.7 M 6 Months 2021
Total CFR = $150.1 M
$18.2 M
$13.1 M 26.2%
12.1%
Europe 16.8% $24.6 M $66.5 M
16.4% 44.3%
Africa
31.8%
8.3%
$40.8 M
$34.6 M Middle East Asia Pacific 27.2%
Americas Africa
(predominantly U.S.) 44.6%
$9.0 M
Americas (pred. U.S.)
11.6% ME / Asia-Pac (pred. ME)
$21.0 M
Europe
27.0% Africa
(predominantly Middle East)
14Financial Overview ($ in MMs)
Adjusted Operating Profit * Adjusted Net Income (loss)* Adjusted EBITDA *
$7.0 $8.5
$4.8
$5.3
$3.6 $4.6
$3.3 $3.5 $3.1 $3.8
Q2 ‘21 $(2.4)
Q2 ‘20 Q2 ‘21 6 Mo.‘20 6 Mo. ‘21 Q2 ‘20 $0.1 6 Mo.‘20 Q2 ‘20 Q2 ‘21 6 Mo.‘20 6 Mo. ‘21
6 Mo. ‘21
* Non-GAAP measure
15Total Cash ($ in MMs)
$42.1 $41.4
$8.8* $7.2*
$31.6 $33.3 $34.2
$28.7
$8.4* $26.7 $7.7* • Q2 2021 cash position improved from Q1 2021
$7.8*
$23.2 $21.0
$18.9 • Q2 2021 total liquidity improved to $28.3 M
• Unrestricted cash at 12/31/2021 should exceed
12/31/20 unrestricted cash
6/30 9/30 12/31 3/31/21 6/30/21 9/30 – 12/31
2021
(F)
16 * Restricted CashFree Cash Flow ($ in MMs)
$8.3
$7.7
$6.2
• Return to positive free cash flow
$3.3
• Expect to be cash flow positive for
$(17.5)
full year 2021
6/30 9/30 12/31/20 6/30/21 9/30 – 12/31
• Continuing focus on debt paydown 2021
(F)
3/31/21
17 * Non-GAAP measureTotal Backlog ($ in MMs)
Backlog by Geography
6/30/21
$681.3
$672.9 $672.3
$666.7
$647.9 Africa
18.4%
Americas
41.9%
Middle East /
Asia / Pacific
24.7%
Europe
6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 15.0%
182021 Outlook
CFR 8% -11%*
• Higher CFR to be driven by new awards,
extensions to existing contracts
$320 - $330 M
• Forecast significant improvement in
unrestricted cash and free cash flow in
2H 2021
Adjusted EBITDA 5%-16%*
• Will balance with working capital
requirements associated with an
anticipated resumption in growth during $20 - $22 M
2021
19 *Compared to FY 2020Appendix 20
Reconciliation Tables
(1) The write-off of leasehold improvements that was incurred during the
quarter ended March 31, 2020 as a result of the sublease of the
Company's corporate headquarters as part of its cost reduction initiatives
was included in depreciation and amortization expense and is reflected in
SG&A in the Company's consolidated statements of operations.
(2) Non-recurring activity includes the settlement of Hill's employer tax
liability under its former subsidiary recognized during Q2 2020, which is
reflected in SG&A within the Company's consolidated statements of
operations and the partial collection of a fully reserved receivable in Libya.
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