Hill International Falls On Share Dilution
Hill International (NYSE: HIL) was hit with heavy selling following the announcement of preliminary earnings and follow-on offering.
Hill International closed Monday’s session at $5.47, down 5.36 percent.
The company reported preliminary earnings per share of $0.04 for Q2 2014; analysts on a consensus basis anticipated earnings per share of $0.02.
Hill International announced a follow-on offering of 8,000,000 shares.
The equity offering weighed heavily on Monday’s trading action as Hill International has 40.5 million shares outstanding.
Total share outstanding will increase from 40.5 million to 48.5 million. Dilution will increase total share outstanding by 19.7 percent. The increase in dilution will reduce the earnings per share figure in future quarters.
The company also refinanced its debt with a $165 million credit facility from Societe Generale. The debt refinancing may lower interest expense in future quarters, but it may not necessarily offset the incremental impact of shareholder dilution.
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