"This action is not based on any change in our management's current view of the collectability of the Libya Receivable, and we intend to continue to pursue collection of the monies owed to us by ODAC," said David L. Richter, Hill's President and Chief Executive Officer. "Despite this action, Hill's underlying business remains strong, and we continue to expect to report record results in 2015," added Richter.
Final restatement amounts for the Non-Reliance Periods have not yet been determined. The company is continuing to evaluate the total amount of the adjustments and the specific impact on each of the Non-Reliance Periods, and intends to present the quarterly and annual restated financial statements in amendments to applicable periodic reports with respect to the Non-Reliance Periods (the "Restated Filings") as soon as practicable.
Preliminary indications from the Company's evaluation are that the changes described above are expected to primarily result in a:
- $48.1 million increase in selling, general and administrative expenses, a $59.9 million decrease in accounts receivable, an $11.8 million decrease in accounts payable and accrued expenses, a $48.1 million decrease in net earnings and a corresponding $48.1 million decrease in retained earnings for the year ended December 31, 2012;
- $2.0 million increase in net earnings primarily to reflect collections related to the Libya Receivable, a $57.3 million decrease in accounts receivable, an $11.5 million decrease in accounts payable and accrued expenses and a $46.1 million decrease in retained earnings for the year ended December 31, 2013;
- $5.6 million decrease in net loss primarily to reflect collections related to the Libya Receivable, a $49.7 million decrease in accounts receivable - Libya, a $9.4 million decrease in other liabilities and a $40.6 million decrease in retained earnings for the year ended December 31, 2014;
- $0.8 million increase in net earnings, a $49.0 million decrease in accounts receivable - Libya, a $9.2 million decrease in other liabilities and a $39.7 million decrease in retained earnings for the quarter ended March 31, 2015; and
- $49.8 million decrease in accounts receivable - Libya, a $9.9 million decrease in other liabilities and a $39.9 million decrease in retained earnings for the quarter ended June 30, 2015.
(Source: Hill International)
