First Quarter Highlights:
- Total Revenue Was $483.3
Million; Service Revenue¹ Was $351.3
Million, Up 15%
- Net Income Was $16.4 Million
and U.S. GAAP Diluted EPS Was $0.87,
Inclusive of $3.5 Million and
$0.18 Per Share in Tax-Effected
Special Charges
- Non-GAAP Adjusted EPS¹ Was $1.42, Up 8%
- Adjusted EBITDA¹ Was $51.0
Million, Up 22%
- Contract Awards Were $410
Million; TTM Contract Awards Were $2.4 Billion for a Book-to-Bill Ratio of
1.30
—Strong Revenue Performance Reflected ICF's
Expanded Capabilities in Growth Markets—
—ICF Reaffirms Its Full Year 2023
Guidance—
—Record Business Development Pipeline of
$9.9 Billion at Quarter-End Underpins
Significant Future Growth Potential—
RESTON,
Va., May 9, 2023 /PRNewswire/ -- ICF
(NASDAQ:ICFI), a global consulting and technology services
provider, reported results for the first quarter ended March 31, 2023.
Commenting on the results, John
Wasson, chair and chief executive officer, said, "Our
first quarter results represented a very strong start to the year.
We achieved solid double-digit revenue growth and substantial
margin expansion, and our business development pipeline increased
16% from year-end 2022 levels, after winning significant new
contract awards. This performance has put us on track to deliver
another year of record results in 2023.
"Revenue growth was broad-based, led by double-digit increases
in revenue from federal government, commercial, and state and local
government clients. Within those client categories, we continued to
see strong demand for our services in the key growth areas of IT
modernization, public health, disaster management, utility
consulting and climate, environmental and infrastructure services.
Included in first quarter revenues was a one-time media buy that
represented approximately $6 million
of the year-on-year total revenue growth for the period.
"In the first quarter, we took the strategic decision to exit a
non-core commercial U.K. events service line, which we expect to
fully wind down by the end of the second quarter. The revenue and
profit impacts of this action in 2023 are immaterial and thus do
not affect our 2023 guidance.
"At the same time, we continue to make investments in people and
technology to ensure that we are well positioned to take advantage
of the growth opportunities we see on the horizon. We are pleased
to report that in the first quarter contract awards increased over
13% from year-ago first quarter levels, with over 85% of these
sales representing new business, and that our business development
pipeline increased to a record $9.9
billion. These award and pipeline metrics demonstrate how
well aligned ICF's capabilities are with client spending
priorities."
First Quarter 2023 Results
First quarter 2023 total revenue increased 16.9% to $483.3 million from $413.5
million in the first quarter of 2022. Service Revenue was
$351.3 million, up 15.3%
year-over-year from $304.6 million.
Net income totaled $16.4 million, net
income margin on total revenue was 3.4%, and U.S. GAAP diluted EPS
was $0.87 per share in the 2023 first
quarter, inclusive of $3.5 million,
or $0.18 per share of tax-effected
special charges, of which approximately $0.09 per share represented charges associated
with the company's decision to discontinue its non-core commercial
U.K. events service line. This compares to $17.9 million and $0.94 per share last year, inclusive of
$0.17 per share of tax-effected
special charges.
Non-GAAP Adjusted EPS increased 8.4% to $1.42 per share, from the $1.31 per share reported in the first quarter of
2022. EBITDA¹ was $46.4 million, an
increase of 24.1% compared to the $37.4
million reported a year ago. Adjusted EBITDA increased 21.8%
to $51.0 million, from $41.8 million in the first quarter of 2022.
Adjusted EBITDA Margin on Service Revenue¹ was 14.5%, an
80-basis-point improvement over the 13.7% reported in the year-ago
quarter.
Backlog and New Business Awards
Total backlog was $3.7 billion at
the end of the first quarter of 2023. Funded backlog was
$1.7 billion, or approximately
45% of the total backlog. The total value of contracts awarded in
the 2023 first quarter was $410
million, and trailing-twelve-month contract awards totaled
$2.4 billion for a book-to-bill ratio
of 1.3.
Government Revenue First Quarter 2023 Highlights
Revenue from government clients was $363.3 million, up 16.3%
year-over-year.
- U.S. federal government revenue was $267.7 million, 22.2% above the $219.0 million reported in the year-ago quarter.
Federal government revenue accounted for 55.4% of total revenue,
compared to 53.0% of total revenue in the first quarter of
2022.
- U.S. state and local government revenue increased 13.3% to
$74.9 million, from $66.1 million in the year-ago quarter. State and
local government clients represented 15.5% of total revenue,
compared to 16.0% in the first quarter of 2022.
- International government revenue was $20.7 million, compared to $27.4 million in the year-ago quarter, mainly
reflecting the wind-down of a short-term project with significant
pass-through revenue that we highlighted throughout 2022.
International government revenue represented 4.3% of total revenue,
compared to 6.6% in the first quarter of 2022.
Key Government Contracts Awarded in the First Quarter
2023
ICF was awarded government contracts with an aggregate value of
over $300 million. Notable awards won
in the first quarter 2023 included:
Disaster Management and Mitigation
- A new contract with a value of $25.9
million with a U.S. territory to support implementation of
its new energy program that will provide eligible households with
renewable energy installations in case of an extended power
outage.
- A contract modification with a value of $12.4 million with a Southern U.S. state to
continue to provide Federal Emergency Management Agency Public
Assistance grants management services.
Digital Modernization
- Multiple contract modifications and expansions with a combined
value of $19.0 million with the U.S.
Department of Health and Human Services (HHS) Centers for Medicare
& Medicaid Services to support digital modernization efforts,
including cloud migration, for several of its programs.
- Two contract modifications with a combined value of
$12.2 million with the Office of
Inspector General of a cabinet-level U.S. federal department to
modernize and automate its business processes to improve the user
experience.
Public Health
- A new contract with a value of $8.8
million with the Centers for Disease Control and Prevention
to provide content optimization services for its website.
- A recompete contract with a value of $7.8 million with the Office of National Drug
Control Policy to provide evaluation services for two of its
programs addressing local drug crises.
Energy, Climate and Environment
- A recompete contract with a ceiling of $18.0 million with the Los Angeles County
Metropolitan Transportation Authority to provide environmental
compliance services.
- A contract modification with a value of $6.9 million with a Western U.S. state's
department of water resources to provide environmental compliance
services related to a water infrastructure project.
- A contract modification with a Northwestern U.S. public utility
to provide support services for its public electric vehicle
charging program.
Social Programs and Communications
- A new contract with a value of $21.8
million with the Department of Justice to provide training
and technical assistance to support organizations that serve
victims and survivors of crime.
- A new subcontract with a value of $12.3
million to provide school readiness grant support services
for the Office of Head Start within the HHS Administration for
Children and Families.
- A contract modification with a value of $6.8 million with a directorate general of the
European Commission to continue to implement a multi-annual
communications campaign.
Commercial Revenue First Quarter 2023 Highlights
Commercial revenue was $119.9
million, up 18.8% above the $100.9
million reported in the year-ago quarter.
- Commercial revenue accounted for 24.8% of total revenue
compared to 24.4% of total revenue in the 2022 first quarter.
- Energy markets, which include energy efficiency programs,
represented 66.0% of commercial revenue. Marketing services and
aviation consulting accounted for 27.8% of commercial revenue.
Key Commercial Contracts Awarded in the First Quarter
2023
ICF was awarded commercial projects during the quarter with an
aggregate value of approximately $100
million. Notable commercial awards won in the first quarter
2023 included:
Energy Markets
- Multiple contract modifications with a large Southwestern U.S.
gas utility to implement its portfolio of residential energy
efficiency programs.
- Two new contracts with a Southeastern U.S. utility to provide
technology-based energy efficiency program services.
- A contract extension with a Midwestern U.S. utility to continue
to provide energy efficiency program implementation services for
its residential portfolio.
- A contract extension with a Midwestern U.S. utility to support
its residential demand response program.
Commercial Marketing and Other Commercial
Markets
- A recompete master services agreement with a U.S.
biopharmaceutical company to conduct monitoring/evaluation
activities related to community-based programs funded by the
company.
- Two new contracts with a U.S. managed care company to provide
paid search campaign and media buying services.
Dividend Declaration
On May 9, 2023, ICF declared a
quarterly cash dividend of $0.14 per
share, payable on July 14, 2023, to
shareholders of record on June 9,
2023.
Summary and Outlook
"Our strong first quarter performance together with our
robust backlog and record business development pipeline support our
expectations for substantial growth in 2023 and beyond.
"We are pleased to reaffirm our guidance for full year 2023
Service Revenue of $1.405 billion to
$1.465 billion, representing
year-on-year growth of 11.6% at the midpoint. Pass-through revenues
are anticipated at approximately 28% of total revenue in 2023,
implying total revenue of $1.930
billion to $2.0 billion.
EBITDA is estimated to range from $210
million to $220 million, and
Adjusted EBITDA Margin on Service Revenue is expected to be
approximately 15%. U.S. GAAP diluted EPS is projected at
$4.75 to $5.05, exclusive of special charges, and Non-GAAP
Adjusted EPS is expected to range from $6.15 to $6.45.
Operating cash flow is expected to be approximately $150 million in 2023.
"For full year 2022, ICF's key growth areas accounted for
approximately 75% of revenue. Revenues from these areas are
anticipated to increase further as a percentage of revenue in 2023,
and we expect them to grow at a rate of 10% or more in the
aggregate over the next several years. In addition to accelerating
our growth, our expanded capabilities in these markets, together
with our work on education, training and human services programs,
is enabling ICF to make a significant, positive impact on society,"
Mr. Wasson concluded.
|
1 Non-GAAP Adjusted 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.
|
About ICF
ICF is a global consulting and technology
services company with approximately 9,000 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; and our ability to acquire and successfully integrate
businesses. 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.
Note on Forward-Looking Non-GAAP Measures
The company
does not reconcile its forward-looking non-GAAP financial measures
to the corresponding U.S. GAAP measures, due to the
variability and difficulty in making accurate forecasts and
projections and because not all of the information necessary for a
quantitative reconciliation of these forward-looking non-GAAP
financial measures (such as the effect of share-based compensation
or the impact of future extraordinary or non-recurring events like
acquisitions) is available to the company without unreasonable
effort. For the same reasons, the company is unable to estimate the
probable significance of the unavailable information. The company
provides forward-looking non-GAAP financial measures that it
believes will be achievable, but it cannot accurately predict all
of the components of the adjusted calculations, and
the U.S. GAAP financial measures may be materially
different than the non-GAAP financial measures.
|
ICF
International, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
(in thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
Revenue
|
|
$
483,282
|
|
$
413,468
|
|
Direct costs
|
|
312,565
|
|
258,158
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Indirect and selling
expenses
|
|
123,733
|
|
117,452
|
|
Depreciation and
amortization
|
|
6,309
|
|
4,838
|
|
Amortization of
intangible assets
|
|
9,224
|
|
5,317
|
|
Total operating costs
and expenses
|
|
139,266
|
|
127,607
|
|
|
|
|
|
|
Operating
income
|
|
31,451
|
|
27,703
|
|
Interest,
net
|
|
(9,457)
|
|
(2,627)
|
|
Other
expense
|
|
(558)
|
|
(439)
|
|
Income before income
taxes
|
|
21,436
|
|
24,637
|
|
Provision for income
taxes
|
|
5,038
|
|
6,775
|
|
Net income
|
|
$
16,398
|
|
$
17,862
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
Basic
|
|
$
0.87
|
|
$
0.95
|
|
Diluted
|
|
$
0.87
|
|
$
0.94
|
|
|
|
|
|
|
Weighted-average
Shares:
|
|
|
|
|
|
Basic
|
|
18,779
|
|
18,795
|
|
Diluted
|
|
18,949
|
|
19,012
|
|
|
|
|
|
|
Cash dividends declared
per common share
|
|
$
0.14
|
|
$
0.14
|
|
|
|
|
|
|
Other comprehensive
(loss) income, net of tax
|
|
(1,334)
|
|
2,659
|
|
Comprehensive income,
net of tax
|
|
$
15,064
|
|
$
20,521
|
|
ICF International,
Inc. and Subsidiaries
Reconciliation of Non-GAAP financial
measures(2)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
(in thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
Reconciliation of
Service Revenue
|
|
|
|
|
|
Revenue
|
|
$
483,282
|
|
$
413,468
|
|
Subcontractor and other
direct costs
|
|
(131,978)
|
|
(108,898)
|
|
Service revenue
(3)
|
|
$
351,304
|
|
$
304,570
|
|
|
|
|
|
|
Reconciliation of
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
Net income
|
|
$
16,398
|
|
$
17,862
|
|
Interest,
net
|
|
9,457
|
|
2,627
|
|
Provision for income
taxes
|
|
5,038
|
|
6,775
|
|
Depreciation and
amortization
|
|
15,533
|
|
10,155
|
|
EBITDA
(4)
|
|
$
46,426
|
|
$
37,419
|
|
Impairment of
long-lived assets (5)
|
|
894
|
|
—
|
|
Acquisition-related
expenditures (6)
|
|
803
|
|
1,319
|
|
Severance and other
costs related to staff realignment (7)
|
|
2,495
|
|
1,226
|
|
Facilities
consolidations and office closures (8)
|
|
359
|
|
—
|
|
Expenses related to the
transfer to our new corporate headquarters
(9)
|
|
—
|
|
1,882
|
|
Total
Adjustments
|
|
4,551
|
|
4,427
|
|
Adjusted
EBITDA
|
|
$
50,977
|
|
$
41,846
|
|
|
|
|
|
|
Net Income Margin
Percent on Revenue (10)
|
|
3.4 %
|
|
4.3 %
|
|
EBITDA Margin Percent
on Revenue (11)
|
|
9.6 %
|
|
9.1 %
|
|
EBITDA Margin Percent
on Service Revenue (11)
|
|
13.2 %
|
|
12.3 %
|
|
Adjusted EBITDA Margin
Percent on Revenue (11)
|
|
10.5 %
|
|
10.1 %
|
|
Adjusted EBITDA Margin
Percent on Service Revenue (11)
|
|
14.5 %
|
|
13.7 %
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Diluted EPS
|
|
|
|
|
|
U.S. GAAP Diluted
EPS
|
|
$
0.87
|
|
$
0.94
|
|
Impairment of
long-lived assets
|
|
0.04
|
|
—
|
|
Acquisition-related
expenditures
|
|
0.04
|
|
0.07
|
|
Severance and other
costs related to staff realignment
|
|
0.13
|
|
0.06
|
|
Facilities
consolidations and office closures
|
|
0.02
|
|
—
|
|
Expenses related to the
transfer to our new corporate headquarters
|
|
—
|
|
0.10
|
|
Amortization of
intangibles
|
|
0.49
|
|
0.28
|
|
Income tax effects
(12)
|
|
(0.17)
|
|
(0.14)
|
|
Non-GAAP Diluted
EPS
|
|
$
1.42
|
|
$
1.31
|
|
|
(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)
We compute Service Revenue as U.S. GAAP
revenue less subcontractor and other direct costs (which include
third-party materials and travel expenses, excluding any associated
margins), which we believe represents the service we provide to our
customer for directly contracting with and managing the activities
of subcontractors. We believe Service Revenue is a useful measure
to investors that best represents services that we provide to
clients through our own employees.
|
|
|
|
|
|
|
(4)
The calculation of EBITDA for the three
months ended March 31, 2022 has been revised to conform to the
current period calculation of EBITDA. Specifically, interest income
of $0.1 million was reclassified from "Other expense" to "Interest,
net" on the consolidated statements of comprehensive
income.
|
|
|
|
|
|
|
(5)
We recognized impairment expense of $0.9
million in the first quarter of 2023 related to impairment of an
intangible asset related to a prior acquisition.
|
|
|
|
|
|
|
(6)
These costs consist primarily of
consultants and other outside third-party costs and integration
costs associated with our acquisitions and/or potential
acquisitions.
|
|
|
|
|
|
|
(7)
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.
|
|
|
|
|
|
|
(8)
These costs are exit costs associated
with terminated 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 (i)
continue to pay until the contractual obligation is satisfied but
with no economic benefit to us or (ii) we contractually terminated
the obligation and ceased utilizing the
facilities.
|
|
|
|
|
|
|
(9)
These costs represent incremental
non-cash lease expense associated with a straight-line rent accrual
during the "free rent" period in the lease for our new corporate
headquarters in Reston, Virginia. We took possession of the new
facility during the fourth quarter of 2021, while also maintaining
and incurring lease costs for the former headquarters in Fairfax,
Virginia. The transition to the new corporate headquarters was
completed in the fourth quarter of 2022.
|
|
|
|
|
|
|
(10)
Net Income Margin Percent on Revenue was
calculated by dividing net income by revenue.
|
|
|
|
|
|
|
(11)
EBITDA Margin Percent and Adjusted EBITDA
Margin Percent were calculated by dividing the non-GAAP measure by
the corresponding revenue.
|
|
|
|
|
|
|
(12)
Income tax effects were calculated using
the effective tax rate of 23.5% and 27.5% for the three months
ended March 31, 2023 and 2022, respectively.
|
|
ICF International,
Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
|
|
(in thousands,
except share and per share amounts)
|
|
March 31,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,364
|
|
$
11,257
|
|
Restricted
cash
|
|
3,572
|
|
1,711
|
|
Contract
receivables, net
|
|
221,066
|
|
232,337
|
|
Contract
assets
|
|
188,093
|
|
169,088
|
|
Prepaid expenses
and other assets
|
|
28,341
|
|
40,709
|
|
Income tax
receivable
|
|
8,420
|
|
11,616
|
|
Total Current
Assets
|
|
454,856
|
|
466,718
|
|
Property and
Equipment, net
|
|
85,445
|
|
85,402
|
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
|
1,213,908
|
|
1,212,898
|
|
Other intangible
assets, net
|
|
116,430
|
|
126,537
|
|
Operating lease -
right-of-use assets
|
|
150,511
|
|
149,066
|
|
Other
assets
|
|
51,280
|
|
51,637
|
|
Total
Assets
|
|
$
2,072,430
|
|
$
2,092,258
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Current portion
of long-term debt
|
|
$
26,000
|
|
$
23,250
|
|
Accounts
payable
|
|
109,854
|
|
135,778
|
|
Contract
liabilities
|
|
25,771
|
|
25,773
|
|
Operating lease
liabilities - current
|
|
16,124
|
|
19,305
|
|
Finance lease
liabilities - current
|
|
2,400
|
|
2,381
|
|
Accrued salaries
and benefits
|
|
61,428
|
|
85,991
|
|
Accrued
subcontractors and other direct costs
|
|
43,109
|
|
45,478
|
|
Accrued expenses
and other current liabilities
|
|
67,089
|
|
78,036
|
|
Total Current
Liabilities
|
|
351,775
|
|
415,992
|
|
Long-term
Liabilities:
|
|
|
|
|
|
Long-term
debt
|
|
571,979
|
|
533,084
|
|
Operating lease
liabilities - non-current
|
|
189,331
|
|
182,251
|
|
Finance lease
liabilities - non-current
|
|
15,508
|
|
16,116
|
|
Deferred income
taxes
|
|
69,343
|
|
68,038
|
|
Other long-term
liabilities
|
|
27,805
|
|
23,566
|
|
Total
Liabilities
|
|
1,225,741
|
|
1,239,047
|
|
|
|
|
|
|
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; 23,919,338 and 23,771,596
shares issued
at March 31, 2023 and December 31, 2022, respectively;
18,788,082 and 18,883,050 shares outstanding at March 31,
2023 and December 31, 2022, respectively
|
|
24
|
|
23
|
|
Additional
paid-in capital
|
|
405,818
|
|
401,957
|
|
Retained
earnings
|
|
716,795
|
|
703,030
|
|
Treasury stock,
5,131,256 and 4,906,209 shares at March 31, 2023 and
December 31, 2022 respectively
|
|
(266,481)
|
|
(243,666)
|
|
Accumulated other
comprehensive loss
|
|
(9,467)
|
|
(8,133)
|
|
Total Stockholders'
Equity
|
|
846,689
|
|
853,211
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
2,072,430
|
|
$
2,092,258
|
|
ICF International,
Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
(in
thousands)
|
|
2023
|
|
2022
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
Net income
|
|
$
16,398
|
|
$
17,862
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
|
567
|
|
(170)
|
|
Deferred income
taxes
|
|
2,187
|
|
4,505
|
|
Non-cash equity
compensation
|
|
3,750
|
|
3,563
|
|
Depreciation and
amortization
|
|
15,533
|
|
10,154
|
|
Facilities
consolidation reserve
|
|
—
|
|
(78)
|
|
Amortization of debt
issuance costs
|
|
326
|
|
154
|
|
Impairment of
long-lived assets
|
|
894
|
|
—
|
|
Other adjustments,
net
|
|
(827)
|
|
353
|
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
Net contract assets and
liabilities
|
|
(18,716)
|
|
(59,689)
|
|
Contract
receivables
|
|
10,929
|
|
31,473
|
|
Prepaid expenses and
other assets
|
|
15,353
|
|
(11,708)
|
|
Operating lease assets
and liabilities, net
|
|
1,016
|
|
(532)
|
|
Accounts
payable
|
|
(26,083)
|
|
(9,815)
|
|
Accrued salaries and
benefits
|
|
(24,678)
|
|
9,513
|
|
Accrued subcontractors
and other direct costs
|
|
(2,613)
|
|
1,078
|
|
Accrued expenses and
other current liabilities
|
|
(14,688)
|
|
(6,883)
|
|
Income tax receivable
and payable
|
|
3,192
|
|
2,621
|
|
Other
liabilities
|
|
629
|
|
544
|
|
Net Cash Used in
Operating Activities
|
|
(16,831)
|
|
(7,055)
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
Capital expenditures
for property and equipment and capitalized software
|
|
(6,441)
|
|
(6,454)
|
|
Payments for business
acquisitions, net of cash acquired
|
|
(459)
|
|
—
|
|
Net Cash Used in
Investing Activities
|
|
(6,900)
|
|
(6,454)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
Advances from working
capital facilities
|
|
334,995
|
|
329,690
|
|
Payments on working
capital facilities
|
|
(293,640)
|
|
(291,662)
|
|
Other short-term
borrowings
|
|
2,483
|
|
—
|
|
Receipt of restricted
contract funds
|
|
2,916
|
|
4,301
|
|
Payment of restricted
contract funds
|
|
(1,131)
|
|
(14,714)
|
|
Payments of principal
portion of finance leases
|
|
(590)
|
|
—
|
|
Debt issue
costs
|
|
—
|
|
—
|
|
Proceeds from exercise
of options
|
|
111
|
|
92
|
|
Dividends
paid
|
|
(2,641)
|
|
(2,644)
|
|
Net payments for stock
issuances and buybacks
|
|
(22,815)
|
|
(22,268)
|
|
Payments on business
acquisition liabilities
|
|
—
|
|
(121)
|
|
Net Cash Provided by
Financing Activities
|
|
19,688
|
|
2,674
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
11
|
|
(525)
|
|
|
|
|
|
|
Decrease in Cash,
Cash Equivalents, and Restricted Cash
|
|
(4,032)
|
|
(11,360)
|
|
Cash, Cash
Equivalents, and Restricted Cash, Beginning of
Period
|
|
12,968
|
|
20,433
|
|
Cash, Cash
Equivalents, and Restricted Cash, End of Period
|
|
$
8,936
|
|
$
9,073
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
5,924
|
|
$
2,760
|
|
Income taxes
|
|
$
914
|
|
$
949
|
|
Non-cash investing and
financing transactions:
|
|
|
|
|
|
Tenant improvements
funded by lessor
|
|
$
—
|
|
$
10,843
|
|
ICF International,
Inc. and Subsidiaries
Supplemental Schedule (13)(14)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
Client
Markets:
|
|
2023
|
|
2022
|
|
Energy, environment,
infrastructure, and disaster recovery
|
|
39 %
|
|
41 %
|
|
Health and social
programs
|
|
42 %
|
|
38 %
|
|
Security and other
civilian & commercial
|
|
19 %
|
|
21 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
Client
Type:
|
|
2023
|
|
2022
|
|
U.S. federal
government
|
|
55 %
|
|
53 %
|
|
U.S. state and local
government
|
|
16 %
|
|
16 %
|
|
International
government
|
|
4 %
|
|
7 %
|
|
Total
Government
|
|
75 %
|
|
76 %
|
|
Commercial
|
|
25 %
|
|
24 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
Contract
Mix:
|
|
2023
|
|
2022
|
|
Time-and-materials
|
|
42 %
|
|
40 %
|
|
Fixed price
|
|
45 %
|
|
44 %
|
|
Cost-based
|
|
13 %
|
|
16 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
|
(13)
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.
|
|
|
|
|
|
|
(14)
During the first quarter of 2023, we
re-aligned our client markets from four to three and reclassified
the 2022 percentages to conform to the current presentation.
Certain immaterial revenue percentages in the prior year have also
been reclassified due to minor adjustments and
reclassification.
|
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
