Hill International, a professional services firm, said Monday that it will implement several initiatives to improve its cost structure and enhance revenues, with estimated annualized pre-tax savings ranging from $27 million to $38 million.
Hill said it has already reduced its back office workforce by more than 70 employees, incurring charges of approximately $1.2 million for termination benefits, as well as $1.4 million in other restructuring charges; and expects partial 2017 savings of approximately $3.5 million, with expected annual net savings of approximately $8 million in 2018 and beyond. The company plans to substantially complete the initiatives by June 30, 2018. For 2017, the company continues to expect consulting fee revenues of $400 million to $425 million, representing a 2% to 8% decrease compared to 2016. Analysts polled by Capital IQ expect revenue of $407.1 million.