Unassociated Document
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As
filed with the United States Securities and Exchange Commission on
October
23, 2007
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Registration
No. 333-114816
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UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
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WASHINGTON,
D.C. 20549
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POST-EFFECTIVE
AMENDMENT NO. 4
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TO
REGISTRATION STATEMENT ON FORM S-1
ON
REGISTRATION STATEMENT ON FORM S-3
UNDER
THE SECURITIES ACT OF 1933
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HILL
INTERNATIONAL, INC.
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(Exact
name of registrant as specified in its charter)
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Delaware
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20-0953973
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(State
or other jurisdiction of incorporation
or organization)
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(I.R.S.
Employer Identification
No.)
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303
Lippincott Centre
Marlton,
New Jersey 08053
(856)
810-6200
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(Address,
including zip code, and telephone number, including area code,
of
registrant's principal executive offices)
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Irvin
E. Richter
Chairman
and Chief Executive Officer
Hill
International, Inc.
303
Lippincott Centre
Marlton,
New Jersey 08053
(856)
810-6200
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(Name,
address, including zip code, and telephone number, including area
code, of
agent for service)
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Copy
to:
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Jeffrey
A. Baumel, Esq.
Jeremy
L. Hirsh, Esq.
McCarter
& English, LLP
Four
Gateway Center
100
Mulberry Street
Newark,
New Jersey 07102
(973)
622-4444
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Approximate
date of commencement of proposed sale to the public:
From
time
to time after the effective date of this Registration Statement.
If
the
only securities being registered on this Form are being offered pursuant to
dividend or interest reinvestment plans, please check the following box. o
If
any of
the securities being registered on this Form are to be offered on a delayed
or
continuous basis pursuant to Rule 415 under the Securities Act of 1933, other
than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. x
If
this
Form is filed to register additional securities for an offering pursuant to
Rule
462(b) under the Securities Act, please check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. o
If
this
Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same
offering. o
If
this
Form is a registration statement pursuant to General Instruction I.D. or a
post-effective amendment thereto that shall become effective upon filing with
the Commission pursuant to Rule 462(e) under the Securities Act, check the
following box. o
If
this
form is a post-effective amendment to a registration statement filed pursuant
to
General Instruction I.D. filed to register additional securities or additional
classes of securities pursuant to Rule 413(b) under the Securities Act, check
the following box. o
The
registrant hereby amends this registration statement on such date or dates
as
may be necessary to delay its effective date until the registrant shall file
a
further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act or until the registration statement shall become effective on
such date as the Commission, acting pursuant to said Section 8(a), may
determine.
EXPLANATORY
NOTE
This
post-effective amendment No. 4 to Form S-1 on Form S-3 is being filed with
respect to the 300,000 Underwriters’ Units, the 600,000 Underwriters’ Warrants
included as part of the Underwriters’ Units and the 300,000 shares of common
stock included as part of the Underwriters’ Units.
The
information in this prospectus supplement and accompanying prospectus is
not
complete and may be changed. We may not sell these securities until the
prospectus supplement is delivered. This prospectus supplement and the
accompanying prospectus are not an offer to sell these securities and we
are not
soliciting offers to buy these securities in any state where the offer or
sale
is not permitted.
Subject
to Completion,
dated
October 23, 2007
PRELIMINARY
PROSPECTUS
HILL
INTERNATIONAL, INC.
300,000
Underwriters’ Units
600,000
Underwriters’ Warrants
300,000
Shares of Common Stock
This
prospectus relates to 300,000 underwriters’ units of the Company, which we refer
to as the underwriters’ units. Each underwriters’ unit consists of one share of
common stock and two underwriters’ warrants. This prospectus also relates to the
300,000 shares of common stock, $0.0001 par value per share, of the Company,
that constitute part of the underwriters’ units, and to the 600,000
underwriters’ warrants that constitute part of the underwriters’ units, which we
refer to as the underwriters’ warrants. Each underwriters’ warrant entitles the
holder thereof, upon exercise, to purchase one share of our common stock at
a
price of $6.25 per share.
Our
common stock is listed for trading on the Nasdaq Global Market under the trading
symbol "HINT." On October 18, 2007, the last reported sale price of our common
stock on Nasdaq was $10.12.
Investing
in our common stock involves certain risks. You should read this entire
prospectus and the applicable prospectus supplement carefully before you make
your investment decision. Please carefully consider the “Risk Factors" beginning
on page 1 of this prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission
has
approved or disapproved of these securities or determined if this prospectus
is
truthful or complete. Any representation to the contrary is a criminal
offense.
,
2007
TABLE
OF CONTENTS
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ABOUT
THIS PROSPECTUS
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WHERE
YOU CAN FIND MORE INFORMATION
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INCORPORATION
BY REFERENCE
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ii
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CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
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iii
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ABOUT
HILL INTERNATIONAL, INC.
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1
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RISK
FACTORS
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1
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USE
OF PROCEEDS
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8
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DIVIDEND
POLICY
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8
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DESCRIPTION
OF SECURITIES
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PLAN
OF DISTRIBUTION
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INDEMNIFICATION
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LEGAL
MATTERS
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9
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EXPERTS
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9
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ABOUT
THIS PROSPECTUS
You
should rely only on the information contained or incorporated by reference
in
this prospectus and in an applicable prospectus supplement, if any, or in any
amendment to this prospectus. We have not authorized any other person to provide
you with different information, and if anyone provides, or has provided, you
with different or inconsistent information, you should not rely on it. We will
not make an offer to sell our common stock in any jurisdiction where the offer
or sale is not permitted. You should assume that the information appearing
in
this prospectus as well as the information we filed previously with the SEC
and
incorporated herein by reference is accurate only as of the date of the document
containing the information.
In
this
prospectus, references to “the Company,” “we,” “us,” “our,” “registrant” and
“Hill” refer to Hill International, Inc. and its consolidated
subsidiaries.
This
prospectus relates to 300,000 underwriters’ units of the Company, which we refer
to as the underwriters’ units. Each underwriters’ unit consists of one share of
common stock and two underwriters’ warrants. This prospectus also relates to the
300,000 shares of common stock, $0.0001 par value per share, of the Company,
that constitute part of the underwriters’ units, and to the 600,000
underwriters’ warrants that constitute part of the underwriters’ units, which we
refer to as the underwriters’ warrants. Each underwriters’ warrant entitles the
holder thereof, upon exercise, to purchase one share of our common stock at
a
price of $6.25 per share.
WHERE
YOU CAN FIND MORE INFORMATION
We
are
subject to the information reporting requirements of the Securities Exchange
Act
of 1934, as amended (the “Exchange Act”) and accordingly file annual, quarterly
and current reports, proxy statements and other information with the Securities
and Exchange Commission (the “SEC”). Members of the public may read and copy any
materials we file with the SEC at the SEC's Public Reference Room located at
450
Fifth Street, N.W., Room 1024, Washington, DC 20549. Information on the
operation of the Public Reference Room may be obtained by calling the SEC at
1-800-SEC-0330.
In
addition, we are required to file electronic versions of these materials with
the SEC through the SEC’s Electronic Data Gathering, Analysis and Retrieval
(EDGAR) database system. Copies of this registration statement and its exhibits,
as well as of our annual reports, quarterly reports, proxy statements and other
filings, may be examined without charge via the EDGAR database. The internet
address of the EDGAR database is http://www.sec.gov.
We
will
provide without charge to each person, including any beneficial owner, to whom
this prospectus is delivered, upon written or oral request of such person,
a
copy of any or all of the documents incorporated by reference in this prospectus
other than exhibits, unless such exhibits specifically are incorporated by
reference into such documents or this prospectus.
Requests
for such documents should be addressed in writing or by telephone to:
William
H. Dengler, Jr.
Senior
Vice President, General Counsel and Secretary
Hill
International, Inc.
303
Lippincott Centre
Marlton,
NJ 08053
Telephone:
(856) 810-6200
We
have
filed the following documents with the SEC (SEC File No. 000-50781), which
are
incorporated herein by reference:
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The
Company’s Annual Report on Form 10-K for the fiscal year ended December
30, 2006;
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The
Company’s Definitive Proxy Statement on Schedule 14A filed June 6,
2006;
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The
Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31
and June 30, 2007;
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The
Company’s Current Reports on Form 8-K filed March 6 and October 16, 2007;
and
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The
description of the Common Stock included in the section entitled
“Description of Securities” in the registration statement on Form S-1
filed with the SEC on April 23, 2004, as amended by amendment no.
1 on
Form S-1/A, filed with the SEC on May 28,
2004.
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All
documents filed after the date hereof by the Registrant with the SEC pursuant
to
Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, and prior to the filing
of a post-effective amendment which indicates that all securities offered hereby
have been sold or which deregisters all securities then remaining unsold,
excluding those filings made under items 2.02 or 7.01 of Form 8-K, shall be
deemed to be incorporated by reference in this registration statement and to
be
part hereof from their respective dates of filing until the information
contained in such documents superseded or updated by any subsequently filed
document which is incorporated by reference into this registration
statement.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
We
intend
these forward-looking statements to be covered by the safe harbor provisions
for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, and we are including this paragraph for purposes of complying
with
these safe harbor provisions. You can identify these forward-looking statements
by forward-looking words such as "may," "expect," "anticipate," "contemplate,"
"believe," "estimate," "intends," and "continue" or similar words. You should
read statements that contain these words carefully because they discuss future
expectations, contain projections of future results of operations or financial
condition or state other "forward-looking" information.
We
believe it is important to communicate our expectations to our security holders.
However, there may be events in the future that we are not able to predict
accurately or over which we have no control. The risk factors and cautionary
language discussed in this prospectus provide examples of risks, uncertainties
and events that may cause actual results to differ materially from the
expectations described by us in such forward-looking statements, including
among
other things:
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outcomes
of government reviews, inquiries, investigations and related litigation;
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continued
compliance with government regulations;
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legislation
or regulatory environments, requirements or changes adversely affecting
the business in which Hill is engaged;
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fluctuations
in client demand;
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management
of rapid growth;
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general
economic conditions;
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Hill's
business strategy and plans; and
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the
results of future financing
efforts.
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You
are
cautioned not to place undue reliance on these forward-looking statements,
which
speak only as of the date of this prospectus.
All
forward-looking statements included herein attributable to us are expressly
qualified in their entirety by the cautionary statements contained or referred
to in this section. Except to the extent required by applicable laws and
regulations, Hill undertakes no obligations to update these forward-looking
statements to reflect events or circumstances after the date of this prospectus
or to reflect the occurrence of unanticipated events.
ABOUT
HILL INTERNATIONAL, INC.
We
provide fee-based project management and construction claims services to clients
worldwide, but primarily in the United States, Europe, the Middle East and
Asia/Pacific. Our clients include the United States and other national
governments and their agencies, state and local governments and their agencies
and the private sector. Our company was incorporated in Delaware in 2004, under
the name Arpeggio Acquisition Corporation, as a specified purpose acquisition
corporation. On June 28, 2006, we merged with Hill International, Inc., a
Delaware corporation, and our company was the surviving entity of the merger.
Following the merger, we changed the name of our company to Hill International,
Inc. We are organized into two key operating segments: the Project Management
Group and the Construction Claims Group.
In
our
Project Management Group, we provide construction management services which
include program management, project management, construction management, project
management oversight, troubled project turnaround, staff augmentation,
estimating and cost management, project labor agreements and management
consulting. In our Construction Claims Group, we advise clients in order to
assist them in preventing or resolving claims and disputes based upon schedule
delays, cost overruns and other problems on major construction projects
worldwide.
Our
executive and operating offices are located at 303 Lippincott Centre, Marlton,
New Jersey 08053. The telephone number at our executive office is (856)
810-6200. We maintain a website at www.hillintl.com. The information contained
on our website is not a part of, and is not incorporated by reference into,
this
prospectus.
RISK
FACTORS
You
should carefully consider the following risk factors, together with all of
the
other information included in this report in evaluating your investment in
Hill
securities and any investment you decide to make in the common stock of Hill.
The
value
of your investment in Hill is subject to the significant risks inherent in
the
construction management and claims consulting business. You should carefully
consider the risks and uncertainties described below and other information
included in this report. If any of the events described below occur, our
business and financial results could be adversely affected in a material way.
This could cause the trading price of our equity securities to decline, perhaps
significantly, and you therefore may lose all or part of your investment.
Risks
Related to Our Business and Operations
We
have had operating losses in two of our past five fiscal years.
We
have
not had a consistent record of operating profits. During the 2003 and 2004
fiscal years, we reported net losses of approximately $424,000 and approximately
$529,000, respectively. Due to our history of operating losses in those years,
it is difficult for you to evaluate our prospects for future earnings based
on
past performance. We cannot provide any assurance that we will be profitable
in
our 2007 fiscal year or in any other fiscal year in the future. If we fail
to
achieve consistent profitability, the value of your investment would be
negatively impacted.
We
depend on long-term government contracts, many of which are funded on an annual
basis. If appropriations are not made in subsequent years of a multiple-year
contract, we will not realize all of our potential revenue and profit from
that
project.
A
significant amount of our revenues is derived from contracts with agencies
and
departments of national, state and local governments, as well as foreign
governments. During the 2004, 2005 and 2006 fiscal years and during the six
month periods ended July 1, 2006 and June 30, 2007, approximately 74.5%, 69.2%,
54.7 %, 59.4% and 54.4%, respectively, of our total revenues were derived from
contracts with government entities.
Most
government contracts are subject to the continuing availability of legislative
appropriation. Legislatures typically appropriate funds for a given program
on a
year-by-year basis, even though contract performance may take more than one
year. As a result, at the beginning of a program, the related contract is only
partially funded, and additional funding is normally committed only as
appropriations are made in each subsequent fiscal year. These appropriations,
and the timing of payment of appropriated amounts, may be influenced by, among
other things, the state of the economy, competing priorities for appropriation,
the timing and amount of tax receipts and the overall level of government
expenditures. If appropriations are not made in subsequent years on government
contracts, then we will not realize all of our potential revenue and profit
from
those contracts.
Because
we depend on government contracts for a significant portion of our revenue,
our
inability to win profitable government contracts could harm our operations
and
adversely affect our net income.
Total
revenues from federal government contracts and state and local government
contracts represented approximately 8.3% and 31.5%, respectively, of our total
revenues during fiscal year 2006 and approximately 7.2% and 32.6%, respectfully,
of our total revenues during the six month period ended June 30, 2007 and
revenues from foreign government contracts represented approximately 14.9%
of
our fiscal year 2006 total revenues and 14.5% of our total revenues for the
six
month period ended June 30, 2007. Our inability to win profitable government
contracts could harm our operations and adversely affect our net income.
Government contracts are typically awarded through a heavily regulated
procurement process. Some government contracts are awarded to multiple
competitors, causing increases in overall competition and pricing pressure.
The
competition and pricing pressure, in turn, may require us to make sustained
post-award efforts to reduce costs under these contracts. If we are not
successful in reducing the amount of costs we anticipate, our profitability
on
these contracts may be negatively impacted. Also, some of our federal government
contracts require U.S. government security clearances. If we or certain of
our
personnel were to lose these security clearances, our ability to continue
performance of these contracts or to win new contracts requiring a clearance
may
be negatively impacted.
We
depend on contracts that may be terminated by our clients on short notice,
which
may affect our ability to recognize all of our potential revenue and profit
from
the project.
Substantially
all of our contracts are subject to termination by the client either at its
convenience or upon our default. If one of our clients terminates a contract
at
its convenience, then we typically are able to recover only costs incurred
or
committed, settlement expenses and profit on work completed prior to
termination, which could prevent us from recognizing all of our potential
revenue and profit from that contract. If one of our clients terminates the
contract due to our default, we could be liable for excess costs incurred by
the
client in re-procuring services from another source, as well as other
costs.
Our
contracts with governmental agencies are subject to audit, which could result
in
adjustments to reimbursable contract costs or, if we are charged with
wrongdoing, possible temporary or permanent suspension from participating in
government programs.
Our
books
and records are subject to audit by the various governmental agencies we serve
and by their representatives. These audits can result in adjustments to
reimbursable contract costs and allocated overhead. In addition, if as a result
of an audit, we or one of our subsidiaries is charged with wrongdoing or the
government agency determines that we or one of our subsidiaries is otherwise
no
longer eligible for federal contracts, then we or, as applicable, that
subsidiary, could be temporarily suspended or, in the event of convictions
or
civil judgments, could be prohibited from bidding on and receiving future
government contracts for a period of time. Furthermore, as a U.S. government
contractor, we are subject to an increased risk of investigations, criminal
prosecution, civil fraud, whistleblower lawsuits and other legal actions and
liabilities to which non-government contractors are not, the results of which
could have a material adverse effect on our operations.
We
submit change orders to our customers for work we perform beyond the scope
of
some of our contracts. If our customers do not approve these change orders,
our
net income and results of operations could be adversely impacted.
We
typically submit change orders under some of our contracts for payment for
work
performed beyond the initial contractual requirements. The applicable customers
may not approve or may contest these change orders and we cannot assure you
that
these claims will be approved in whole, in part or at all. If these claims
are
not approved, our net income and results of operations could be adversely
impacted.
Our
business and operating results could be adversely affected by losses under
fixed-price contracts.
We
sometimes enters into fixed-price contracts that require us to either perform
all work under the contract for a specified lump-sum or to perform an estimated
number of units of work at an agreed price per unit, with the total payment
determined by the actual number of units performed. Approximately $10.8 million,
or approximately 5.5% of our total revenue for fiscal 2006, was derived from
fixed-price contracts. Fixed-price contracts expose us to a number of risks
not
inherent in cost-plus contracts, including underestimation of costs, ambiguities
in specifications, unforeseen costs or difficulties, delays beyond our control,
failures of subcontractors to perform and economic or other changes that may
occur during the contract period. Losses under fixed-price contracts could
have
a material adverse effect on our business.
Our
backlog of uncompleted projects under contract or awarded is subject to
unexpected adjustments and cancellations, including future appropriations by
the
applicable contracting government agency, and is, therefore, an uncertain
indicator of our future revenues and profits.
At
June
30, 2007, our backlog of uncompleted projects under contract or awarded was
approximately $294 million. We can not assure you that the revenues attributed
to uncompleted projects under contract will be realized or, if realized, will
result in profits.
Many
projects may remain in our backlog for an extended period of time because of
the
size or long-term nature of the contract. In addition, from time to time
projects are scaled back or cancelled. These types of backlog reductions
adversely affect the revenue and profit that we ultimately receive from
contracts reflected in our backlog. Included in our backlog is the maximum
amount of all indefinite delivery/indefinite quantity ("ID/IQ"), or task order,
contracts, or a lesser amount if we do not reasonably expect to be issued task
orders for the maximum amount of such contracts. We can not provide any
assurance that we will in fact be awarded the maximum amount of such
contracts.
We
depend on the continued services of certain executive officers. We cannot assure
you that we will be able to retain the services of these
individuals.
We
are
dependent upon the efforts and service of certain executive officers,
particularly Irvin E. Richter, our Chairman and Chief Executive Officer, and
David L. Richter, our President and Chief Operating Officer, because of their
knowledge, experience, skills and relationships with major clients. Irvin E.
Richter has served as our Chief Executive Officer since 1976. We have employment
agreements with these individuals which contain non-competition covenants which
survive their actual term of employment. We also maintain key-man life insurance
coverage for Irvin E. Richter. Nevertheless, were we to lose the services of
these individuals for any reason, that could have an adverse effect on our
operations.
Our
ability to grow and compete in our industry will be harmed if we do not retain
the continued service of our key management, sales and technical personnel
and
identify, hire and retain additional qualified personnel.
There
is
intense competition for qualified management, sales and technical personnel
in
the industry sectors in which we compete. We may not be able to continue to
attract and retain qualified personnel who are necessary for the development
of
our business or to replace qualified personnel. Any growth we experience is
expected to place increased demands on our resources and will likely require
the
addition of personnel and the development of additional expertise by existing
personnel. Also, some of our personnel hold security clearance levels required
to obtain government projects and, if we were to lose some or all of these
personnel, they may be difficult to replace. Loss of the services of, or failure
to recruit, key personnel could limit our ability to complete existing projects
successfully and to compete for new projects.
Our
dependence on subcontractors, partners and specialists could adversely affect
our business.
We
rely
on third-party subcontractors as well as third-party strategic partners and
specialists to complete our projects. To the extent that we cannot engage such
subcontractors, partners or specialists or cannot engage them on a competitive
basis, our ability to complete a project in a timely fashion or at a profit
may
be impaired. If we are unable to engage appropriate strategic partners or
specialists in some instances, we could lose the ability to win some contracts.
In addition, if a subcontractor or specialist is unable to deliver its services
according to the negotiated terms for any reason, including the deterioration
of
its financial condition or over-commitment of its resources, we may be required
to purchase the services from another source at a higher price. This may reduce
the profit to be realized or result in a loss on a project for which the
services were needed.
If
our partners fail to perform their contractual obligations on a project, we
could be exposed to legal liability, loss of reputation or reduced profits.
We
sometimes enter into joint venture subcontracts and other contractual
arrangements with outside partners to jointly bid on and execute a particular
project. The success of these joint projects depends on the satisfactory
performance of the contractual obligations of our partners. If any of our
partners fails to satisfactorily perform its contractual obligations, we may
be
required to make additional investments and provide additional services to
complete the project. If we are unable to adequately address our partner's
performance issues, then our client could terminate the joint project, exposing
us to legal liability, loss of reputation or reduced profits.
Our
services expose us to significant risks of liability and our insurance policies
may not provide adequate coverage.
Our
services involve significant risks of professional and other liabilities that
may substantially exceed the fees that we derive from our services. In addition,
we sometimes contractually assume liability under indemnification agreements.
We
cannot predict the magnitude of potential liabilities from the operation of
our
business.
We
currently maintain comprehensive general liability, umbrella and professional
liability insurance policies. Professional liability policies are "claims made"
policies. Thus, only claims made during the term of the policy are covered.
Additionally, our insurance policies may not protect us against potential
liability due to various exclusions and retentions. Partially or completely
uninsured claims, if successful and of significant magnitude, could have a
material adverse affect on our business.
International
operations expose us to legal, political and economic risks in different
countries and currency exchange rate fluctuations could adversely affect our
financial results.
During
our 2004, 2005 and 2006 fiscal years and during the six month periods ended
July
1, 2006 and June 30, 2007, revenues attributable to our international operations
were 28.1%, 34.6%, 49.1%, 47.0% and 54.1%, respectively. We expect the
percentage of revenues attributable to our international operations to increase.
There are risks inherent in doing business internationally, including:
·
lack of developed legal systems to enforce
contractual rights;
·
greater risk of uncollectible accounts and
longer collections cycles;
·
currency exchange rate
fluctuations;
·
imposition of governmental
controls;
·
political and economic
instability;
·
changes in U.S. and other national
government policies affecting the markets for Hill's services;
·
changes in regulatory practices, tariffs
and taxes;
·
potential non-compliance with a wide
variety of non-U.S. laws and regulations; and
·
general economic and political conditions
in these foreign markets.
Any
of
these factors could have a material adverse effect on our business, results
of
operations or financial condition.
Changes
to the laws of the foreign countries in which we operate may adversely affect
our international operations.
We
have
contracts to perform services for projects located in a number of foreign
countries, including, Canada, the United Kingdom, Germany, Romania, Macedonia,
Serbia, Croatia, Latvia, Greece, Turkey, Egypt, Libya, Iraq, Kuwait, Bahrain,
Qatar, Saudi Arabia, the United Arab Emirates, China, Singapore, Malaysia,
Vietnam, South Korea and Australia. We expect to have additional similar
contracts in the future. In addition, we have offices in over 25 foreign
countries. The laws and regulations in the countries in which we are working
on
projects or in which we have offices might change. Such changes could have
a
material adverse effect on our business.
Our
business sometimes requires our employees to travel to and work in high security
risk countries, which may result in employee injury, repatriation costs or
other
unforeseen costs.
Many
of
our employees often travel to and work in high security risk countries around
the world that are undergoing or that may undergo political, social and economic
upheavals resulting in war, civil unrest, criminal activity or acts of
terrorism. For example, we have employees working in Iraq, a high security
risk
country with substantial civil unrest and acts of terrorism. As a result, we
may
be subject to costs related to employee injury, repatriation or other unforeseen
circumstances.
We
have acquired and may continue to acquire businesses as strategic opportunities
arise and may be unable to realize the anticipated benefits of those
acquisitions.
Since
1998, we have acquired nine businesses and our strategy is to continue to expand
and diversify our operations with additional acquisitions as strategic
opportunities arise. Some of the risks that may affect our ability to realize
any anticipated benefits from companies that we acquire include:
·
unexpected losses of key personnel or
clients of the acquired business;
·
difficulties arising from the increasing
scope, geographic diversity and complexity of our operations;
·
diversion of management's attention from
other business concerns; and
·
adverse effects on existing business
relationships with clients.
In
addition, managing the growth of our operations will require us to continually
improve our operational, financial and human resources management systems and
other internal systems and controls. If we are unable to manage any growth
effectively or to successfully integrate any acquisitions, that could have
a
material adverse effect on our business.
We
cannot be certain that we will be able to raise capital or obtain debt financing
to meet our future capital needs.
We
are
currently party to a revolving credit agreement to assist in funding working
capital needs and for potential future acquisitions. This agreement contains
certain covenants with respect to minimum net worth, total debt to EBITDA
ratios, fixed charge coverage ratios, billed accounts receivable to total debt
ratios as well as other financial covenants. If our operating results are not
as
positive as we expect, that could cause us to be in default of these covenants.
In addition, our current revolving credit agreement may not provide us with
sufficient credit to meet all of the future financial needs of our business.
There is no guarantee that we could increase the availability under our current
revolving credit agreement or obtain alternative debt or equity financing on
terms that would be acceptable to us, or at all.
Risks
Related to Ownership of Our Common Stock
The
market price for our common stock could be volatile and could decline, resulting
in a substantial or complete loss of your investment.
The
stock
markets, including the Nasdaq Global Market, on which we list our common stock,
have experienced significant price and volume fluctuations. As a result, the
market price of our common stock could be similarly volatile, and investors
in
our common stock may experience a decrease in the value of their shares,
including decreases unrelated to our operating performance or prospects. The
price of our common stock could be subject to wide fluctuations in response
to a
number of factors, including:
| · |
our
operating performance and the performance of other similar
companies;
|
| · |
actual
or anticipated differences in our operating
results;
|
| · |
changes
in our revenues or earnings estimates or recommendations by securities
analysts;
|
| · |
publication
of research reports about us or our industry by securities
analysts;
|
| · |
additions
and departures of key personnel;
|
| · |
speculation
in the press or investment
community;
|
| · |
actions
by institutional shareholders;
|
| · |
changes
in accounting principles;
|
| · |
general
market conditions, including factors unrelated to our
performance.
|
Future
sales of our common stock may depress the price of our common
stock.
As
of
October 10, 2007, there were approximately 26.9 million shares of our common
stock outstanding. Following the effectiveness of the registration statement
of
which this prospectus is a part and as a result of our call of our public
warrants on October 23, 2007, an aggregate of approximately 11.2 million
additional shares of our common stock may be issued. Sales of a substantial
number of these shares in the public market could decrease the market price
of
our common stock. In addition, the perception that such sales might occur may
cause the market price of our common stock to decline. Future issuances or
sales
of our common stock could have an adverse defect on the market price of our
common stock.
Voting
control by four of our directors and one stockholder may limit your ability
to
influence the outcome of director elections and other matters requiring
stockholder approval.
Five
persons who are parties to a voting agreement dated June 28, 2006 (Irvin
Richter, David Richter, Brady Richter, Eric Rosenfeld and Arnaud Ajdler) own
approximately 60% of our voting stock. These persons have agreed to vote for
each other's designees to our board of directors through director elections
in
2008. Accordingly, they will be able to control the election of directors and,
therefore, our policies and direction during the term of the voting agreement.
This concentration of ownership and voting agreement could have the effect
of
delaying or preventing a change in our control or discouraging a potential
acquirer from attempting to obtain control of us, which in turn could have
a
material adverse effect on the market price of our common stock or prevent
our
stockholders from realizing a premium over the market price for their shares
of
common stock.
USE
OF PROCEEDS
The
amount of the proceeds we will receive from the issuance of the underwriters’
units covered by this prospectus depends on the number of unit purchase options
held by the underwriters which are exercised for the exercise price of $9.90
per
unit purchase option. The unit purchase options also may be exercised in a
cashless manner. If all of the unit purchase options are exercised in a cashless
manner, there will not be any proceeds to us from the issuance of the
underwriters’ units. If all of the unit purchase options are exercised at the
exercise price of $9.90 per unit, the proceeds to us will be $2.97 million.
We
do not know if the holders of the underwriters’ unit purchase options will
exercise any of their unit purchase options for the $9.90 exercise
price.
We
intend
to use the net proceeds, if any, for working capital, or for other general
corporate purposes. We may also use a portion of the net proceeds to fund
acquisitions of claims consulting and/or construction management firms.
DIVIDEND
POLICY
We
currently intend to retain all of our earnings to finance our operations, repay
any outstanding indebtedness and fund our future growth. We do not expect to
pay
any dividends on our common stock for the foreseeable future.
DESCRIPTION
OF SECURITIES
The
description of the securities covered by this prospectus is contained in our
proxy statement filed with the SEC on June 6, 2006, under the heading
“Description of Arpeggio Common Stock and Other Securities -Common Stock,” and
that description is incorporated herein by reference.
PLAN
OF DISTRIBUTION
The
underwriters’ units covered by this prospectus will be issued only in the event
that the holders of the underwriters’ unit purchase options exercise those unit
purchase options. The underwriters’ warrants which constitute part of the
underwriters’ units will be immediately exercisable once the underwriters’ units
are issued. The shares of common stock which constitute a part of the
underwriters’ units will be freely tradable as of the effective date of the
amendment to the registration statement.
We
do not
know if or when the underwriters’ unit purchase options will be exercised. We
also do not know if or when the underwriters’ warrants will be exercised, or
whether any of the shares of common stock that constitute part of the
underwriters’ units will be sold.
INDEMNIFICATION
Our
certificate of incorporation provides that the Company, to the full extent
permitted by Section 145 of the Delaware General Corporation Law, as amended
from time to time, shall indemnify all persons whom it may indemnify pursuant
thereto. It further provides that expenses (including attorneys’ fees) incurred
by an officer or director in defending any civil, criminal, administrative,
or
investigative action, suit or proceeding for which such officer or director
may
be entitled to indemnification hereunder shall be paid by the Company in advance
of the final disposition of such action, suit or proceeding upon receipt of
an
undertaking by or on behalf of such director or officer to repay such amount
if
it shall ultimately be determined that he is not entitled to be indemnified
by
the Company as authorized thereby.
Our
bylaws provide the Company with the power to indemnify its officers, directors,
employees and agents or any person serving at the Company’s request as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise to the fullest extent permitted by Delaware
law.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933
may
be permitted to directors, officers or persons controlling the registrant
pursuant to the foregoing provisions, the registrant has been informed that
in
the opinion of the Securities and Exchange Commission such indemnification
is
against public policy as expressed in the Act and is therefore
unenforceable.
LEGAL
MATTERS
The
validity of the common stock offered hereby will be passed upon for us by
McCarter & English, LLP.
EXPERTS
The
consolidated financial statements of Hill International, Inc. at December 30,
2006 and December 31, 2005 and for each of the three years in the period ended
December 30, 2006 have been audited by Amper, Politziner & Mattia, P.C.,
independent registered public accounting firm, as set forth in their report
incorporated by reference herein, and are included in reliance upon such report
given on the authority of such firm as experts in accounting and
auditing.
PART
II. INFORMATION NOT REQUIRED IN PROSPECTUS
Item
14. Other Expenses of Issuance and Distribution.
The
following table sets forth the estimated expenses payable by the registrant
in
connection with the sale and distribution of the securities registered hereby.
All amounts other than the SEC registration fee are estimated.
|
SEC
Registration Fee
|
|
$
|
0
|
|
|
Accounting
Fees and Expenses
|
|
$
|
10,000
|
|
|
Legal
Fees and Expenses
|
|
$
|
15,000
|
|
|
Printing
Fees and Expenses
|
|
$
|
5,000
|
|
|
Miscellaneous
|
|
$
|
5,000
|
|
| |
|
|
|
|
|
Total:
|
|
$
|
35,000
|
|
Item
15. Indemnification of Directors and Officers.
Our
certificate of incorporation provides that the Company, to the full extent
permitted by Section 145 of the Delaware General Corporation Law, as amended
from time to time, shall indemnify all persons whom it may indemnify pursuant
thereto. It further provides that expenses (including attorneys’ fees) incurred
by an officer or director in defending any civil, criminal, administrative,
or
investigative action, suit or proceeding for which such officer or director
may
be entitled to indemnification hereunder shall be paid by the Company in advance
of the final disposition of such action, suit or proceeding upon receipt of
an
undertaking by or on behalf of such director or officer to repay such amount
if
it shall ultimately be determined that he is not entitled to be indemnified
by
the Company as authorized thereby.
Our
bylaws provide the Company with the power to indemnify its officers, directors,
employees and agents or any person serving at the Company’s request as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise to the fullest extent permitted by Delaware
law.
Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to the Registrant’s directors, officers, and controlling persons
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment of expenses incurred or paid by a director,
officer or controlling person in a successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless
in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to the court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.
Item
16. Exhibits.
|
Exhibit
No.
|
|
Description
|
|
4.1
|
|
Certificate
of Incorporation of the Registrant (previously filed with the Securities
and Exchange Commission as Exhibit 3.1 to the Registrant’s Registration
Statement on Form S-1 (333-114816) on April 23, 2004 and incorporated
herein by reference).
|
| |
|
|
|
4.2
|
|
Bylaws
of the Registrant (previously filed with the Securities and Exchange
Commission as Exhibit 3.2 to the Registration Statement on Form S-1
(333-114816) on April 23, 2004 and incorporated herein by
reference).
|
| |
|
|
|
4.3
|
|
Common
Stock Certificate (previously filed with the Securities and Exchange
Commission as Exhibit 4.2 to Amendment No. 1 to Registration Statement
on
Form S-1/A (333-114816) on May 28, 2004 and incorporated herein by
reference).
|
| |
|
|
|
4.4
|
|
Warrant
Certificate (previously filed with the Securities and Exchange Commission
as Exhibit 4.3 to Amendment No. 1 to Registration Statement on Form
S-1/A
(333-114816) on May 28, 2004 and incorporated herein by
reference).
|
| |
|
|
|
4.5
|
|
Form
of Warrant Agreement (previously filed with the Securities and Exchange
Commission as Exhibit 4.5 to Amendment No. 1 to Registration Statement
on
Form S-1/A (333-114816) on May 28, 2004 and incorporated herein by
reference).
|
| |
|
|
|
5.1
|
|
Opinion
of McCarter & English, LLP (filed herewith).
|
| |
|
|
|
23.1
|
|
Consent
of Amper, Politziner & Mattia, P.C. (filed
herewith).
|
| |
|
|
|
23.2
|
|
Consent
of McCarter & English, LLP (included in exhibit
5.1).
|
| |
|
|
|
24.1
|
|
Power
of Attorney (previously
filed).
|
Item
17. Undertakings.
(A) The
undersigned registrant hereby undertakes:
(1) To
file,
during the period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities
Act;
(ii) To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding
the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in
the
effective registration statement;
(iii) To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement;
provided,
however, that paragraphs (A)(1)(i) and (A)(1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or 15(d) of the Exchange
Act
that are incorporated by reference in the registration statement.
(2) That,
for
the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona
fide
offering
thereof.
(3) To
remove
from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the
offering.
(B) The
undersigned registrant hereby undertakes that, for purposes of determining
any
liability under the Securities Act, each filing of the registrant's annual
report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where
applicable, each filing of an employee benefit plan's annual report pursuant
to
Section 15(d) of the Exchange Act) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona
fide
offering
thereof.
Insofar
as indemnification for liabilities arising under the Securities Act of 1933
may
be permitted to directors, officers or persons controlling the registrant
pursuant to the foregoing provisions, the registrant has been informed that
in
the opinion of the Securities and Exchange Commission such indemnification
is
against public policy as expressed in the Securities Act of 1933 and is
therefore unenforceable.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies
that
it has reasonable grounds to believe that it meets all of the requirements
for
filing on Form S-3 and has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in Marlton, State
of New Jersey, on October 22, 2007.
| |
|
|
| |
HILL INTERNATIONAL, INC. |
|
|
|
|
|
By: |
/s/ Irvin E. Richter |
| |
Irvin
E. Richter |
| |
Chairman and Chief Executive Officer
|
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed by the following persons in their capacities.
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
Chairman
of the Board and
|
|
|
|
/s/
Irvin E. Richter
|
|
Chief
Executive Officer
|
|
October
22, 2007
|
|
Irvin
E. Richter
|
|
(principal
executive
officer) |
|
|
| |
|
|
|
|
|
*
|
|
President
and Chief Operating
|
|
October
22, 2007
|
|
David
L. Richter
|
|
Officer
and
Director |
|
|
| |
|
|
|
|
|
/s/
John Fanelli III
|
|
Senior
Vice President and
|
|
October
22, 2007
|
|
John
Fanelli III
|
|
Chief Financial
Officer
(principal financial and accounting officer) |
|
|
| * |
|
|
|
|
|
Eric
S. Rosenfeld
|
|
Director
|
|
October
22, 2007
|
| |
|
|
|
|
| * |
|
|
|
|
|
Alan
S. Fellheimer
|
|
Director
|
|
October
22, 2007
|
| |
|
|
|
|
| * |
|
|
|
|
|
Brian
W. Clymer
|
|
Director
|
|
October
22, 2007
|
| |
|
|
|
|
|
/s/
William J. Doyle
|
|
|
|
|
|
William
J. Doyle
|
|
Director
|
|
October
22, 2007
|
| |
|
|
|
|
| * |
|
|
|
|
|
Arnaud
Ajdler
|
|
Director
|
|
October
22, 2007
|
|
*By:
|
Attorney-in-fact
pursuant to power of attorney filed as part of this registration
statement.
|
|
/s/
Irvin E. Richter
|
|
|
Irvin
E. Richter
|
|
INDEX
TO
EXHIBITS
|
Exhibit
No.
|
|
Description
|
|
4.1
|
|
Certificate
of Incorporation of the Registrant (previously filed with the Securities
and Exchange Commission as Exhibit 3.1 to the Registrant’s Registration
Statement on Form S-1 (333-114816) on April 23, 2004 and incorporated
herein by reference).
|
| |
|
|
|
4.2
|
|
Bylaws
of the Registrant (previously filed with the Securities and Exchange
Commission as Exhibit 3.2 to the Registration Statement on Form S-1
(333-114816) on April 23, 2004 and incorporated herein by
reference).
|
| |
|
|
|
4.3
|
|
Common
Stock Certificate (previously filed with the Securities and Exchange
Commission as Exhibit 4.2 to Amendment No. 1 to Registration Statement
on
Form S-1/A (333-114816) on May 28, 2004 and incorporated herein by
reference).
|
| |
|
|
|
4.4
|
|
Warrant
Certificate (previously filed with the Securities and Exchange Commission
as Exhibit 4.3 to Amendment No. 1 to Registration Statement on Form
S-1/A
(333-114816) on May 28, 2004 and incorporated herein by
reference).
|
| |
|
|
|
4.5
|
|
Form
of Warrant Agreement (previously filed with the Securities and Exchange
Commission as Exhibit 4.5 to Amendment No. 1 to Registration Statement
on
Form S-1/A (333-114816) on May 28, 2004 and incorporated herein by
reference).
|
| |
|
|
|
5.1
|
|
Opinion
of McCarter & English, LLP (filed herewith).
|
| |
|
|
|
23.1
|
|
Consent
of Amper, Politziner & Mattia, P.C. (filed
herewith).
|
| |
|
|
|
23.2
|
|
Consent
of McCarter & English, LLP (included in Exhibit
5.1).
|
| |
|
|
|
24.1
|
|
Power
of Attorney (previously
filed).
|