Third Quarter Highlights:
- Total Revenue Was $468
Million; Service Revenue1 Was $335 Million, Up 22%
- Diluted EPS Was $1.01
Inclusive of $0.28 in Tax-Effected
Severance, M&A and Facility-Related Charges
- Non-GAAP EPS1 Was $1.61, Up 22%
- GAAP EPS and Non-GAAP EPS Include a One-Time Tax Benefit of
$0.20
- Adjusted EBITDA1 Was $49.8 Million; Adjusted EBITDA Margin on Service
Revenue1 Was 14.8%
- Contract Awards Were $865
Million; TTM Contract Awards Were $2.2 Billion
Representing a Book-to-Bill Ratio of 1.31
Business Development Pipeline Was $9.0
Billion at Quarter-End After Record Q3 Awards
RESTON,
Va., Nov. 3, 2022 /PRNewswire/ -- ICF (NASDAQ:
ICFI), a global consulting and digital services provider, reported
results for the third quarter ended September 30, 2022.
Commenting on the results, John
Wasson, chair and chief executive officer, said, "Our third
quarter performance reflected ICF's excellent positioning in
high-growth areas, which drove strong year-on-year revenue
comparisons and resulted in record contract awards. Growth was led
by our federal government, state and local government, and
commercial energy client categories, where revenues increased 39%,
11.6% and 15.5%, respectively, and which together accounted for
over 87% of total third quarter revenues.
"In the third quarter, we took strategic actions to both
strengthen and streamline our capabilities as we position ICF for
continued growth. We completed the acquisition of SemanticBits,
which broadened our digital modernization capabilities and expanded
our addressable market with their strong presence in the large and
well-funded Centers for Medicare & Medicaid Services.
Additionally, we announced and completed the acquisition of Blanton
& Associates, Inc., an environmental consulting, planning and
project management firm, which expands our environmental
capabilities to support large infrastructure projects and
strengthens ICF's presence in Texas, a state that is set to receive
significant federal investment dollars under the recently enacted
Infrastructure and Jobs Act. We also made a strategic business
shift in our commercial marketing area, closing its traditional
advertising and platform development offerings to maintain focus on
its core loyalty programs, business transformation and integrated
communications services.
"Third quarter adjusted EBITDA margin on service revenue was
14.8%, which is aligned with our full year margin expectations and
reflected continued high utilization and our increased scale.
Additionally, we continue to invest in people and technology to
ensure that ICF is positioned to take full advantage of the growth
opportunities we see on the horizon.
"This was a record third quarter for contract awards, which at
$865 million represented a quarterly
book-to-bill ratio of 1.85 and brought our trailing twelve-month
book-to-bill ratio to 1.31. Our business development pipeline
remained at near-record levels following this strong quarter of
awards and is comprised of a diversified set of increasingly larger
opportunities."
Third Quarter 2022 Results
Third quarter 2022 total revenue increased 18.7% to $467.8 million from $394.1
million in the third quarter of 2021. Service revenue was up
21.7% year-over-year to $335.4
million from the $275.6
million reported in the prior year quarter. Net income
totaled $19.1 million and diluted EPS
was $1.01 per share, inclusive of
$0.28 in tax-effected severance,
facility-related and M&A special charges. Third quarter 2022
net income and diluted EPS included a one-time tax benefit from tax
optimization strategies which equated to $0.20 per share. Net income in last year's third
quarter was $20.4 million and
$1.07 per diluted share.
Non-GAAP EPS increased 22% to $1.61 from $1.32
per share in the comparable prior year quarter, inclusive of the
one-time tax benefit from tax optimization strategies of
$0.20 per share.
EBITDA1 was $42.2 million,
5.6% above the $39.9 million reported
in the third quarter of 2021. Adjusted EBITDA was $49.8 million, a 13.6% increase from the
$43.8 million reported in the
comparable quarter last year. Adjusted EBITDA margin on service
revenue was 14.8%, compared to 15.9% reported last year.
Backlog and New Business Awards
Total backlog was $3.7 billion at the end of the third quarter
of 2022, an increase of 17.5% sequentially, representing new awards
and the addition of SemanticBits and Blanton. Funded backlog was
$1.8 billion, or approximately 49% of
the total backlog. The total value of contracts awarded in the 2022
third quarter was $865 million, and
trailing-twelve-month contract awards totaled $2.2 billion for a book-to-bill ratio of
1.31.
Government Revenue Third Quarter 2022 Highlights
Revenue from government clients was $359.9 million, up 25.6% year-over-year.
- U.S. federal government revenue was $271.3 million, 39% above the $195.2 million reported in the year-ago quarter.
Federal government revenue accounted for 58% of total revenue,
compared to 49.5% of total revenue in the third quarter of
2021.
- U.S. state and local government revenue was $65.6 million, up 11.6% from the $58.8 million in last year's third quarter. State
and local government clients represented 14% of total revenue,
compared to 14.9% in the third quarter of 2021.
- International government revenue was $23.1 million, compared to $32.7 million in the year-ago quarter, reflecting
the wind-down of a short-term project with significant pass-through
revenue. International government revenue represented 4.9% of total
revenue, compared to 8.3% in the third quarter of 2021.
Key Government Contracts Awarded in the Third Quarter
2022
Notable awards won in the third quarter 2022 included:
Digital Modernization
- Two agreements with a combined value of more than $45 million with the U.S. Department of Health
and Human Services (HHS) Centers for Medicare & Medicaid
Services (CMS) to support the agency's data migration and website
optimization efforts.
- A recompete contract with a value of $32.9 million with CMS to provide ServiceNow
application development and workflow design services.
Public Health
- A recompete contract with a ceiling of $49.0 million with the U.S. National Institutes
of Health (NIH) to provide business and professional support
services.
- One contract and three subcontracts with a combined value of
$34.4 million to provide HHS's
Substance Abuse and Mental Health Services Administration with web
management and support, evaluation services related to suicide
prevention, case management and behavioral support services, and
outreach for substance use disorder prevention.
- A recompete task order* with a value of $17.2 million with NIH to provide digital content
management, outreach and engagement support to the National Center
for Complementary and Integrated Health (NCCIH).
- A contract modification with a value of $15.0 million with the U.S. Agency for
International Development to provide infectious disease detection
and surveillance support to affected lower- and middle-income
countries worldwide.
- A new task order with a value of $11.6
million with the U.S. Centers for Disease Control and
Prevention Center for Surveillance, Epidemiology, and Laboratory
Services to support and modernize public health laboratory
informatics and data exchange services for its Laboratory Response
Network.
Program Implementation and Technical Support
- Two recompete contracts with a combined value of $64.0 million with the HHS Administration for
Children and Families Office of Child Care to continue to support
the State Capacity Building Center and the National Center on Early
Childhood Quality Assurance.
- Two new contracts with a combined value of $33.6 million with the U.S. Department of Labor's
Bureau of International Labor Affairs to conduct supply chain
research studies and provide other advisory and support
services.
- A contract extension with a value of $16.6 million with the Maryland Department of
Human Services to continue to support its customer service
center.
- A new framework contract with a ceiling of $21.0 million with a directorate general of the
European Commission to provide expertise and support for European
cooperation in several issue areas.
- A recompete contract with a value of $10.5 million with the U.S. Department of
Justice Office for Victims of Crime
to support the National Elder Fraud Hotline.
Disaster Management and Mitigation
- A new contract with a value of $15.7
million with a Southern U.S. state to provide Federal
Emergency Management Agency Public Assistance program grant
management services.
- A contract modification with a value of $10.4 million with the Puerto Rico Department of
Housing to continue implementation of the agency's Community
Development Block Grant Disaster Recovery Home Repair,
Reconstruction and or Relocation program.
Transportation, Energy and Environment
- A new contract with a value of $15.5
million with the U.S. Department of the Interior's Bureau of
Reclamation to provide environmental consulting services to support
the long-term operation of its Central Valley and State Water
projects.
- A new contract with a value of $13.8
million with the department of transportation of a
Southeastern U.S. state to provide transportation planning
services.
Commercial Revenue Third Quarter 2022 Highlights
Commercial revenue was $107.8
million, compared to $107.4
million in the year-ago quarter.
- Commercial revenue accounted for 23.1% of total revenue
compared to 27.3% of total revenue in the 2021 third quarter.
- Energy markets revenue increased 15.5% and represented 66.7% of
commercial revenue.
- Marketing services and aviation consulting accounted for 26.5%
of commercial revenue.
Key Commercial Contracts Awarded in the Third Quarter
2022
Notable commercial awards won in the third quarter 2022
included:
Energy Markets
- A contract modification with six Northeastern U.S. utilities to
implement residential and commercial heating programs.
- A contract modification with a Northeastern U.S. utility to
provide workforce development support services related to its
energy efficiency programs.
- A new contract with a Midwestern U.S. utility to support a
flexible load management pilot program focused on managing both
behind the meter storage and water heaters to provide grid and
customer benefits.
Marketing Services and Other
- A recompete blanket purchase agreement with a not-for-profit
telecommunications administration organization to modernize mission
critical business functions on the Appian platform.
- A new contract with a U.K.-based banking and financial services
organization to support its employee engagement initiatives.
- A new contract with a Middle
East aerospace engineering corporation to provide advisory
services to decrease aircraft ground time for maintenance.
- A new contract with a new U.S. hospitality company client to
provide loyalty platform services.
Dividend Declaration
On November 3, 2022, ICF declared a quarterly cash dividend
of $0.14 per share, payable on
January 12, 2023, to shareholders of
record on December 9, 2022.
Summary and Outlook
"ICF's positioning in key markets, including IT
modernization/digital transformation, public health, disaster
management, utility consulting and climate, environmental and
infrastructure services has enhanced our growth trajectory. We are
heading into 2023 with these areas accounting for over 70% of our
service revenue, prior to any material benefit from recently
enacted legislation, which has further expanded our addressable
market. The alignment of ICF's domain expertise and cross-cutting
capabilities in these markets, together with our strong business
development pipeline, underscores our confidence in 2023 being
another year of significant growth for the company.
"Looking ahead to the fourth quarter of 2022, we expect total
revenue and service revenue to be similar to third quarter levels,
as the recovery in our international government and commercial
marketing businesses has not yet materialized. This brings our
guidance for full year 2022 service revenue to $1.275 to $1.300
billion, implying total revenue of $1.760 to $1.790
billion. We re-affirm our guidance for Adjusted EBITDA
margin on service revenue to approximate 14.8%, of which
approximately 40 basis points is related to the previously
disclosed postponement of planned infrastructure investments to
2023. Our GAAP EPS is expected to range from $3.90 to $4.10,
reflecting year-to-date special charges amounting
to $0.61 per share on a tax-effected basis, which
primarily were M&A- and severance-related. The GAAP EPS
guidance range incorporates the impact of non-cash rent abatement
charges associated with our new headquarters totaling $7.5
million, or $0.30 per share. Non-GAAP EPS is expected to
be in the range of $5.70 to $5.90. We revised our
operating cash flow guidance from a point estimate of $140 million to a range of $120 million to $140 million for full year
2022, reflecting timing factors affecting year-to-date
collections.
"We are pleased to report that in 2022 ICF was ranked by Forbes
as One of the Best Management Consulting Firms, One of the Best
Employers for Diversity and One of the Best Employers for Women.
This recognition is emblematic of the corporate culture we have
developed at ICF, enabling us to attract and retain the best talent
and making us a preferred partner and acquiror," Mr. Wasson
concluded.
|
*This project has been
funded in whole or in part with federal funds from NCCIH, NCI under
Task Order No. 75N91021D00022/75N91022F00001.
|
|
About ICF
ICF (NASDAQ: ICFI) is a global
consulting services company with approximately 8,000 full- and
part-time employees, but we are not your typical consultants. At
ICF, business analysts and policy specialists work together with
digital strategists, data scientists and creatives. We combine
unmatched industry expertise with cutting-edge engagement
capabilities to help organizations solve their most complex
challenges. Since 1969, public and private sector clients have
worked with ICF to navigate change and shape the future. Learn more
at icf.com.
Caution Concerning Forward-looking
Statements
Statements that are not historical facts
and involve known and unknown risks and uncertainties are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Such statements may concern our
current expectations about our future results, plans, operations
and prospects and involve certain risks, including those related to
the government contracting industry generally; our particular
business, including our dependence on contracts
with U.S. federal government agencies; our ability to
acquire and successfully integrate businesses; and the effects of
the novel coronavirus disease (COVID-19) and related federal, state
and local government actions and reactions on the health of our
staff and that of our clients, the continuity of our and our
clients' operations, our results of operations and our outlook.
These and other factors that could cause our actual results to
differ from those indicated in forward-looking statements that are
included in the "Risk Factors" section of our securities filings
with the Securities and Exchange Commission. The
forward-looking statements included herein are only made as of the
date hereof, and we specifically disclaim any obligation to update
these statements in the future.
|
1 Non-GAAP
EPS, Service Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA
Margin, and Adjusted EBITDA Margin on Service Revenue are non-GAAP
measurements. A reconciliation of all non-GAAP measurements to the
most applicable GAAP number is set forth below. Special charges are
items that were included within our consolidated statements of
comprehensive income but are not indicative of ongoing performance
and have been presented net of applicable U.S. GAAP taxes. The
presentation of non-GAAP measurements may not be comparable to
other similarly titled measures used by other companies.
|
|
ICF International,
Inc. and Subsidiaries
|
|
Consolidated
Statements of Comprehensive Income
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
September 30,
|
|
(in thousands,
except per share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue
|
|
$
467,777
|
|
$
394,060
|
|
$
1,304,355
|
|
$
1,165,063
|
|
Direct costs
|
|
307,295
|
|
254,175
|
|
834,358
|
|
732,903
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Indirect and selling
expenses
|
|
118,290
|
|
99,940
|
|
350,145
|
|
316,100
|
|
Depreciation and
amortization
|
|
5,297
|
|
4,665
|
|
15,198
|
|
14,663
|
|
Amortization of
intangible assets
|
|
8,661
|
|
3,015
|
|
18,941
|
|
9,049
|
|
Total operating costs
and expenses
|
|
132,248
|
|
107,620
|
|
384,284
|
|
339,812
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
28,234
|
|
32,265
|
|
85,713
|
|
92,348
|
|
Interest
expense
|
|
(7,474)
|
|
(2,550)
|
|
(14,274)
|
|
(7,845)
|
|
Other income
(expense)
|
|
887
|
|
81
|
|
616
|
|
(382)
|
|
Income before income
taxes
|
|
21,647
|
|
29,796
|
|
72,055
|
|
84,121
|
|
Provision for income
taxes
|
|
2,542
|
|
9,406
|
|
16,691
|
|
25,068
|
|
Net income
|
|
$
19,105
|
|
$
20,390
|
|
$
55,364
|
|
$
59,053
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.01
|
|
$
1.08
|
|
$
2.94
|
|
$
3.13
|
|
Diluted
|
|
$
1.01
|
|
$
1.07
|
|
$
2.91
|
|
$
3.10
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
18,826
|
|
18,865
|
|
18,806
|
|
18,864
|
|
Diluted
|
|
19,009
|
|
19,061
|
|
19,001
|
|
19,077
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share
|
|
$
0.14
|
|
$
0.14
|
|
$
0.42
|
|
$
0.42
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income, net of tax
|
|
(1,555)
|
|
(1,971)
|
|
(3,107)
|
|
1,241
|
|
Comprehensive income,
net of tax
|
|
$
17,550
|
|
$
18,419
|
|
$
52,257
|
|
$
60,294
|
|
ICF International,
Inc. and Subsidiaries
|
|
Reconciliation of
Non-GAAP financial measures(2)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
(in thousands,
except per share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Reconciliation of
Service Revenue
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
467,777
|
|
$
394,060
|
|
$
1,304,355
|
|
$
1,165,063
|
|
Subcontractor and other
direct costs (3)
|
|
(132,348)
|
|
(118,471)
|
|
(358,037)
|
|
(328,522)
|
|
Service
revenue
|
|
$
335,429
|
|
$
275,589
|
|
$
946,318
|
|
$
836,541
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
19,105
|
|
$
20,390
|
|
$
55,364
|
|
$
59,053
|
|
Other (income)
expense
|
|
(887)
|
|
(81)
|
|
(616)
|
|
382
|
|
Interest
expense
|
|
7,474
|
|
2,550
|
|
14,274
|
|
7,845
|
|
Provision for income
taxes
|
|
2,542
|
|
9,406
|
|
16,691
|
|
25,068
|
|
Depreciation and
amortization
|
|
13,958
|
|
7,680
|
|
34,139
|
|
23,712
|
|
EBITDA
|
|
42,192
|
|
39,945
|
|
119,852
|
|
116,060
|
|
Adjustment related to
impairment of long-lived assets(4)
|
|
—
|
|
35
|
|
—
|
|
338
|
|
Special charges related
to acquisitions(5)
|
|
1,940
|
|
3,261
|
|
5,521
|
|
3,410
|
|
Special charges related
to staff realignment(6)
|
|
3,757
|
|
335
|
|
5,168
|
|
1,144
|
|
Special charges related
to facilities consolidations and office
closures(7)
|
|
—
|
|
—
|
|
—
|
|
139
|
|
Special charges related
to the transfer to our new corporate
headquarters(8)
|
|
1,883
|
|
—
|
|
5,647
|
|
—
|
|
Special charges related
to retirement of Executive Chair(9)
|
|
—
|
|
254
|
|
—
|
|
478
|
|
Total special charges
and adjustments
|
|
7,580
|
|
3,885
|
|
16,336
|
|
5,509
|
|
Adjusted
EBITDA
|
|
$
49,772
|
|
$
43,830
|
|
$
136,188
|
|
$
121,569
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin Percent
on Revenue(10)
|
|
9.0 %
|
|
10.1 %
|
|
9.2 %
|
|
10.0 %
|
|
EBITDA Margin Percent
on Service Revenue(10)
|
|
12.6 %
|
|
14.5 %
|
|
12.7 %
|
|
13.9 %
|
|
Adjusted EBITDA Margin
Percent on Revenue(10)
|
|
10.6 %
|
|
11.1 %
|
|
10.4 %
|
|
10.4 %
|
|
Adjusted EBITDA Margin
Percent on Service Revenue(10)
|
|
14.8 %
|
|
15.9 %
|
|
14.4 %
|
|
14.5 %
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Diluted EPS
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Diluted
EPS
|
|
$
1.01
|
|
$
1.07
|
|
$
2.91
|
|
$
3.10
|
|
Adjustment related to
impairment of long-lived assets
|
|
—
|
|
—
|
|
—
|
|
0.02
|
|
Special charges related
to acquisitions
|
|
0.10
|
|
0.17
|
|
0.29
|
|
0.18
|
|
Special charges related
to staff realignment
|
|
0.20
|
|
0.02
|
|
0.27
|
|
0.06
|
|
Special charges related
to facilities consolidations and office closures
|
|
—
|
|
—
|
|
—
|
|
0.01
|
|
Special charges related
to the transfer to our new corporate headquarters
|
|
0.10
|
|
—
|
|
0.30
|
|
—
|
|
Special charges related
to retirement of Executive Chair
|
|
—
|
|
0.01
|
|
—
|
|
0.03
|
|
Amortization of
intangibles
|
|
0.46
|
|
0.16
|
|
1.00
|
|
0.47
|
|
Income tax effects on
amortization, special charges, and
adjustments(11)
|
|
(0.26)
|
|
(0.11)
|
|
(0.54)
|
|
(0.23)
|
|
Non-GAAP Diluted
EPS
|
|
$
1.61
|
|
$
1.32
|
|
$
4.23
|
|
$
3.64
|
|
|
(2) These tables
provide reconciliations of non-GAAP financial measures to the most
applicable GAAP numbers. While we believe that these non-GAAP
financial measures may be useful in evaluating our financial
information, they should be considered supplemental in nature and
not as a substitute for financial information prepared in
accordance with GAAP. Other companies may define similarly titled
non-GAAP measures differently and, accordingly, care should be
exercised in understanding how we define these measures.
|
|
|
(3) Subcontractor and
other direct costs is direct costs excluding direct labor and
fringe costs.
|
|
|
(4) Adjustment related
to impairment of long-lived assets: We recognized impairment
expense of $0.3 million in the first quarter of 2021 related to
impairment of a right-of-use lease asset.
|
|
|
(5) Special charges
related to acquisitions: These costs consist primarily of
consultants and other outside third-party costs and integration
costs associated with our acquisitions and/or potential
acquisitions.
|
|
|
(6) Special charges
related to staff realignment: These costs are mainly due to
involuntary employee termination benefits for our officers, and/or
groups of employees who have been notified that they will be
terminated as part of a consolidation or reorganization.
|
|
|
(7) Special charges
related to facilities consolidations and office closures:
These costs are exit costs or gains associated with office
lease contraction, terminated office leases, or full office
closures. The exit costs include charges incurred under a
contractual obligation that existed as of the date of the accrual
and for which we will continue to pay until the contractual
obligation is satisfied but with no economic benefit to
us.
|
|
|
(8) Special charges
related to the transfer to our new corporate headquarters:
These costs are additional rent as a result of us taking
possession of our new corporate headquarters in Reston, Virginia,
during the fourth quarter of 2021 while maintaining our current
headquarters in Fairfax, Virginia. We intend to complete the
transition to our new corporate headquarters by the end of 2022
when our Fairfax lease ends.
|
|
|
(9) Special charges
related to retirement of the former Executive Chair: Our former
Executive Chair retired effective December 31, 2020. These costs
relate to unvested equity awards that, as a result of his
employment agreement, the departing officer was able to maintain
certain equity awards beyond the date of employment.
|
|
|
(10) EBITDA
Margin Percent and Adjusted EBITDA Margin Percent were calculated
by dividing the non-GAAP measure by the corresponding
revenue.
|
|
|
(11) Income tax effects
were calculated using the effective tax rate, adjusted for discrete
items, if any, of 29.4% and 31.6% for the three months ended
September 30, 2022 and 2021, respectively, and 28.5% and 29.8% for
the nine months ended September 30, 2022 and 2021,
respectively.
|
|
ICF International,
Inc. and Subsidiaries
|
|
Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
(in thousands,
except share and per share amounts)
|
|
September 30,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
8,483
|
|
$
8,254
|
|
Restricted
cash
|
|
1,993
|
|
12,179
|
|
Contract receivables,
net
|
|
282,271
|
|
237,684
|
|
Contract
assets
|
|
196,811
|
|
137,867
|
|
Prepaid expenses and
other assets
|
|
30,612
|
|
42,354
|
|
Income tax
receivable
|
|
11,979
|
|
10,825
|
|
Total Current
Assets
|
|
532,149
|
|
449,163
|
|
Property and
Equipment, net
|
|
85,295
|
|
52,053
|
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
|
1,190,450
|
|
1,046,760
|
|
Other intangible
assets, net
|
|
135,932
|
|
79,645
|
|
Operating lease -
right-of-use assets
|
|
163,438
|
|
177,417
|
|
Other assets
|
|
50,496
|
|
44,496
|
|
Total
Assets
|
|
$
2,157,760
|
|
$
1,849,534
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
20,500
|
|
$
10,000
|
|
Accounts
payable
|
|
128,528
|
|
105,652
|
|
Contract
liabilities
|
|
24,599
|
|
39,665
|
|
Operating lease
liabilities - current
|
|
22,959
|
|
34,901
|
|
Finance lease
liabilities - current
|
|
1,779
|
|
—
|
|
Accrued salaries and
benefits
|
|
74,766
|
|
85,517
|
|
Accrued subcontractors
and other direct costs
|
|
46,610
|
|
39,400
|
|
Accrued expenses and
other current liabilities
|
|
52,249
|
|
61,496
|
|
Total Current
Liabilities
|
|
371,990
|
|
376,631
|
|
Long-term
Liabilities:
|
|
|
|
|
|
Long-term
debt
|
|
681,197
|
|
411,605
|
|
Operating lease
liabilities - non-current
|
|
187,481
|
|
191,805
|
|
Finance lease
liabilities - non-current
|
|
13,270
|
|
—
|
|
Deferred income
taxes
|
|
46,449
|
|
41,913
|
|
Other long-term
liabilities
|
|
19,634
|
|
24,110
|
|
Total
Liabilities
|
|
1,320,021
|
|
1,046,064
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Preferred stock, par
value $.001; 5,000,000 shares authorized; none issued
|
|
—
|
|
—
|
|
Common stock, par value
$.001; 70,000,000 shares authorized; 23,723,490 and 23,535,671
shares issued at September 30, 2022 and December 31, 2021,
respectively; 18,833,688 and
18,876,490 shares outstanding at September 30, 2022 and
December 31, 2021, respectively
|
|
23
|
|
23
|
|
Additional paid-in
capital
|
|
396,962
|
|
384,984
|
|
Retained
earnings
|
|
696,792
|
|
649,298
|
|
Treasury stock,
4,889,802 and 4,659,181 shares at September 30, 2022 and December
31,
2021, respectively
|
|
(241,896)
|
|
(219,800)
|
|
Accumulated other
comprehensive loss
|
|
(14,142)
|
|
(11,035)
|
|
Total Stockholders'
Equity
|
|
837,739
|
|
803,470
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
2,157,760
|
|
$
1,849,534
|
|
ICF International,
Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
(in
thousands)
|
|
2022
|
|
2021
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
Net income
|
|
$
55,364
|
|
$
59,053
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Provision for credit
losses
|
|
91
|
|
11,324
|
|
Deferred income
taxes
|
|
6,023
|
|
4,062
|
|
Non-cash equity
compensation
|
|
10,023
|
|
9,756
|
|
Depreciation and
amortization
|
|
34,139
|
|
23,712
|
|
Facilities
consolidation reserve
|
|
(236)
|
|
(225)
|
|
Amortization of debt
issuance costs
|
|
940
|
|
463
|
|
Impairment of
long-lived assets
|
|
—
|
|
339
|
|
Other adjustments,
net
|
|
474
|
|
1,818
|
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
Net contract assets and
liabilities
|
|
(72,619)
|
|
(16,381)
|
|
Contract
receivables
|
|
(31,770)
|
|
(6,688)
|
|
Prepaid expenses and
other assets
|
|
(11,991)
|
|
(9,224)
|
|
Operating lease assets
and liabilities, net
|
|
(1,305)
|
|
(4,743)
|
|
Accounts
payable
|
|
23,394
|
|
5,653
|
|
Accrued salaries and
benefits
|
|
(13,971)
|
|
10,377
|
|
Accrued subcontractors
and other direct costs
|
|
9,441
|
|
(36,436)
|
|
Accrued expenses and
other current liabilities
|
|
(476)
|
|
17,002
|
|
Income tax receivable
and payable
|
|
(1,667)
|
|
(3,490)
|
|
Other
liabilities
|
|
742
|
|
(1,609)
|
|
Net Cash Provided by
Operating Activities
|
|
6,596
|
|
64,763
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
Capital expenditures
for property and equipment and capitalized software
|
|
(17,323)
|
|
(12,279)
|
|
Payments for business
acquisitions, net of cash acquired
|
|
(238,991)
|
|
—
|
|
Proceeds from working
capital adjustments related to prior business
acquisition
|
|
2,911
|
|
—
|
|
Net Cash Used in
Investing Activities
|
|
(253,403)
|
|
(12,279)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
Advances from working
capital facilities
|
|
1,358,335
|
|
559,830
|
|
Payments on working
capital facilities
|
|
(1,074,888)
|
|
(593,775)
|
|
Receipt of restricted
contract funds
|
|
13,525
|
|
194,504
|
|
Payment of restricted
contract funds
|
|
(23,358)
|
|
(227,700)
|
|
Debt issue
costs
|
|
(4,852)
|
|
—
|
|
Proceeds from exercise
of options
|
|
412
|
|
2,773
|
|
Dividends
paid
|
|
(7,912)
|
|
(7,923)
|
|
Net payments for stock
issuances and buybacks
|
|
(21,105)
|
|
(18,695)
|
|
Payments on business
acquisition liabilities
|
|
(1,132)
|
|
(682)
|
|
Net Cash Provided by
(Used in) Financing Activities
|
|
239,025
|
|
(91,668)
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
(2,175)
|
|
(501)
|
|
|
|
|
|
|
Decrease in Cash,
Cash Equivalents, and Restricted Cash
|
|
(9,957)
|
|
(39,685)
|
|
Cash, Cash
Equivalents, and Restricted Cash, Beginning of
Period
|
|
20,433
|
|
81,987
|
|
Cash, Cash
Equivalents, and Restricted Cash, End of Period
|
|
$
10,476
|
|
$
42,302
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
13,595
|
|
$
7,882
|
|
Income taxes
|
|
$
14,384
|
|
$
25,062
|
|
Non-cash investing and
financing transactions:
|
|
|
|
|
|
Tenant improvements
funded by lessor
|
|
$
20,253
|
|
$
—
|
|
Acquisition of property
and equipment through finance lease
|
|
$
15,027
|
|
$
-
|
|
ICF International,
Inc. and Subsidiaries
|
|
Supplemental
Schedule(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client
markets
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Energy, environment,
and infrastructure
|
|
36 %
|
|
40 %
|
|
37 %
|
|
42 %
|
|
Health, education, and
social programs
|
|
53 %
|
|
46 %
|
|
51 %
|
|
43 %
|
|
Safety and
security
|
|
7 %
|
|
7 %
|
|
7 %
|
|
8 %
|
|
Consumer and
financial
|
|
4 %
|
|
7 %
|
|
5 %
|
|
7 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client
type
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
U.S. federal
government
|
|
58 %
|
|
50 %
|
|
55 %
|
|
48 %
|
|
U.S. state and local
government
|
|
14 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
International
government
|
|
5 %
|
|
8 %
|
|
6 %
|
|
9 %
|
|
Government
|
|
77 %
|
|
73 %
|
|
76 %
|
|
72 %
|
|
Commercial
|
|
23 %
|
|
27 %
|
|
24 %
|
|
28 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by contract
mix
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Time-and-materials
|
|
40 %
|
|
40 %
|
|
40 %
|
|
41 %
|
|
Fixed-price
|
|
45 %
|
|
42 %
|
|
45 %
|
|
41 %
|
|
Cost-based
|
|
15 %
|
|
18 %
|
|
15 %
|
|
18 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
(12) As is shown in the
supplemental schedule, we track revenue by key metrics that provide
useful information
about the nature of our operations. Client markets provide insight
into the breadth of our expertise. Client type is
an indicator of the diversity of our client base. Revenue by
contract mix provides insight in terms of the degree of
performance risk that we have assumed.
|
|
Investor Contacts:
Lynn Morgen, ADVISIRY PARTNERS,
lynn.morgen@advisiry.com
+1.212.750.5800
David
Gold, ADVISIRY PARTNERS, david.gold@advisiry.com
+1.212.750.5800
Company Information
Contact:
Lauren
Dyke, ICF, lauren.dyke@ICF.com +1.571.373.5577
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SOURCE ICF
