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HILL International Hill International Reports Third Quarter 2021 Financial Results November 8 , 2021 Third Quarter 2021 Overview • Consulting Fee Revenue ( " CFR " ) rose 7.7 % to $ 77.1 million from $ 71.5 million in the prior year period • New contract awards were $ 92.6 million in the quarter , resulting in a book - to - burn ratio of 120 % ; new contract awards for the first nine months of 2021 totaled $ 274.5 million , resulting in a book - to - burn ratio of 121 % • Net income of $ 1.3 million , or $ 0.02 per diluted share , compared to net income of $ 2.1 million , or $ 0.04 per diluted share in the prior year period Adjusted net income ( a non - GAAP measure ) rose to $ 2.8 million from $ 1.8 million in the prior year period ● Adjusted EBITDA ( a non - GAAP measure ) rose 32.8 % to $ 6.4 million from $ 4.8 million in the same period last year , resulting in an Adjusted EBITDA to CFR margin of 8.3 % • Cash from operations was $ 6.2 million for the quarter ● PHILADELPHIA , Nov. 08 , 2021 ( GLOBE NEWSWIRE ) -- Hill International , Inc. ( NYSE : HIL ) ( " Hill " or the " Company " ) , delivering the infrastructure of change , announced today its financial results for the third quarter ended September 30 , 2021 ( " Q3 2021 ” ) . " We reported strong results for the 2021 third quarter , highlighted by increased CFR and gross profit , strong new bookings , and a return to profitability , " said Raouf Ghali , Hill's Chief Executive Officer . " Adjusted operating profit , Adjusted EBITDA , and Adjusted net income rose by 34 % , 33 % , and 60 % , respectively , from last year's third quarter . New contract awards in the 2021 third quarter were $ 92.6 million , resulting in a book to burn ratio of 120 % . New awards for the first nine months of 2021 were $ 274.5 million , resulting in a book to burn ratio of 121 % . " Hill's success is defined by strong project execution and a reputation for excellence . We have been engaged to support some of the world's most meaningful and challenging infrastructure projects , with wins during the third quarter including the Metro Gold Line Foothill Extension in southern California , a contract with Kosovo Railways JSC ( INFRAKOS ) for Phase 2 of the rehabilitation and upgrade of Rail Route 10 , the ongoing Capital Program at Philadelphia International Airport and the Miami - Dade County Aviation Department's $ 5 billion Capital Improvement Program . Additionally , bookings during the fourth quarter have been strong , totaling $ 71 million through November 1 , including a five - year contract with Southern California Edison . " " Our Adjusted EBITDA increased to $ 6.4 million , our unrestricted cash position at September 30 , 2021 rose by $ 5.3 million from June 30 , 2021 , and we generated positive free cash flow , " said Todd Weintraub , Hill's Chief Financial Officer . " Total liquidity at September 30 , 2021 was $ 38.6 million , a $ 10.3 million improvement from June 30 , 2021. For the fourth quarter of 2021 , we expect to report higher CFR when compared to Q3 2021 and expect to continue generating positive cash flow . " Q3 2021 Financial Results Overview Hill's consulting fee revenue ( " CFR " ) rose to $ 77.1 million in Q3 2021 , from $ 71.5 million in the third quarter of 2020 ( " Q3 2020 " ) as activity continues to return to pre - COVID levels . Gross profit in Q3 2021 increased by $ 3.8 million to $ 32.4 million , or 42.1 % of CFR , from $ 28.7 million , or 40.1 % of CFR , in Q3 2020 , driven by higher CFR and improved contract profit margins . Selling , general , and administrative ( " SG & A " ) expenses in Q3 2021 were $ 28.1 million , compared to $ 25.6 million in Q3 2020. This included non - recurring and non - cash expenses of $ 1.8 million and $ 1.1 million in Q3 2021 and 2020 , respectively . Excluding these non - recurring and non - cash expenses , SG & A expenses in Q3 2021 were $ 26.3 million , or 81.2 % of gross profit , compared to $ 24.5 million , or 85.4 % of gross profit in Q3 2020 . This decline in SG & A as a percentage of gross profit reflected continuing management of expenses to ensure costs grow more slowly than gross profits , resulting in creating operating leverage . Operating profit for Q3 2021 was $ 4.3 million compared to operating profit of $ 4.7 million in Q3 2020 , as improved gross profit from higher CFR was offset by an increase in foreign currency exchange losses when compared to Q3 2020 and higher SG & A as discussed above . Adjusted operating income , a non - GAAP measure ( see definition and reconciliation in the table below ) was $ 5.9 million in Q3 2021 , compared to $ 4.4 million in Q3 2020 . Net income attributable to Hill in Q3 2021 was $ 1.3 million , or $ 0.02 per diluted share , compared to net income attributable to Hill of $ 2.1 million , or $ 0.04 per diluted share , in Q3 2020. This decline was due primarily to increased gross profit in Q3 2021 , compared to Q3 2020 being more than offset by the negative impact of unrealized foreign exchange of $ 1.1 million and non - recurring and non - cash items of $ 0.7 million in Q3 2021 compared to Q3 2020. Adjusted net income , a non - GAAP measure ( see definition and reconciliation in the table below ) which excludes the impact of these items , was $ 2.8 million in Q3 2021 , compared to adjusted net income of $ 1.8 million in Q3 2020 . Adjusted EBITDA , a non - GAAP measure ( see definition and reconciliation in the table below ) was $ 6.4 million in Q3 2021 , compared to adjusted EBITDA of $ 4.8 million in Q3 2020. Improved gross profit from higher CFR was partially offset by an increase in labor costs as business activity returns to normal levels , the reinstatement of the Company 401 ( k ) match and the partial resumption of business travel . Financial Condition and Backlog