—Signed Definitive Agreements to Sell
Commercial Marketing Group—
—Strategic Tuck-In
Acquisition of Engineering Advisory Firm CMY Expands ICF's
Addressable Market—
—Re-Affirms Full Year 2023
Guidance Ranges—
- Revenue Was $500 Million, Up
18%
- Net Income Was $20.3 Million
and Diluted EPS Was $1.07, Inclusive
of $3.5 Million and $0.13 Per Share in Tax-Effected M&A and
Severance Charges
- EBITDA¹ Was $47.5
Million, Up 19%; Adjusted EBITDA1 Was
$51.0 Million, Up 15%
- Non-GAAP EPS¹ Was $1.57, Up 18%
- Diluted EPS and Non-GAAP EPS Include Tax Benefits of
$0.21
- Contract Awards Were $441
Million; TTM Contract Awards Were $2.5 Billion for a Book-to-Bill Ratio of
1.3
—Record Business Development Pipeline
of $10.3 Billion Supports Outlook for
Continued Growth—
RESTON,
Va., Aug. 3, 2023 /PRNewswire/ -- ICF
(NASDAQ:ICFI), a global consulting and technology services
provider, reported results for the second quarter ended
June 30, 2023.
Commenting on the results, John
Wasson, chair and chief executive officer, said, "The ICF
team continued to deliver strong performance and effectively manage
the business in the second quarter, driving double-digit revenue
and EBITDA growth, substantially increasing contract awards and
building our new business pipeline. At the same time, we executed
transactions that strengthen ICF's position in key growth areas and
support our long-term growth strategy.
"Year-on-year revenue increased 18.2%, representing 10% organic
growth and the benefit of the SemanticBits acquisition we completed
in mid-2022. Year-on-year growth was led by substantial
double-digit increases in revenues from federal, state and local
government and commercial energy clients, which together accounted
for over 88% of total second quarter revenue. Revenues from our key
growth markets, namely IT modernization/digital transformation,
public health, disaster management, utility consulting, and
climate, environment and infrastructure services, in the aggregate,
continued to drive strong year-on-year revenue comparisons.
Non-GAAP EPS increased 18.0% year-on-year, benefiting from revenue
growth, favorable mix and scale efficiencies as well as tax
optimization strategies, which offset higher interest
expense.
"This was another strong quarter of contract wins for ICF. The
value of awards won increased 28% year-on-year and primarily
represented new business. Our business development pipeline reached
a record $10.3 billion at the end of
the second quarter, indicative of the significant growth
opportunities ahead.
"In the second quarter, we acquired CMY, a power engineering
firm with a team of approximately 50 electrical engineers and other
highly specialized experts who advise utilities and energy project
developers across the U.S., Europe
and Asia. This small but
strategically important acquisition enlarges ICF's addressable
market and expands our ability to support clients' needs for
renewables interconnection, substation and distribution upgrades
and grid resilience. We have successfully partnered with CMY on
multiple projects, and our two organizations have a strong cultural
alignment.
"In mid-July we signed definitive agreements to sell our
Commercial Marketing Group. The group's projected revenues for 2023
as part of ICF are approximately $70
million. Included in the sale were our commercial loyalty
programs and integrated communications services for consumer and
financial clients. This group has brought ICF tremendous
capabilities that have contributed to the growth of the engagement
and communications services we provide to our government and
utility clients. Given our focus on key growth markets within our
government and commercial energy client sets, we believe the
Commercial Marketing Group will be better positioned to thrive
under its new ownership, and we are pleased to note that their
senior leadership and staff have been offered positions by the
acquiror," said Mr. Wasson.
The sale of ICF's Commercial Marketing Group is subject to
closing conditions and is expected to be completed in this year's
third quarter. Upon closing, ICF expects to recognize a small gain
on the sale. Separately, the company will incur a one-time non-cash
charge associated with stranded facilities of approximately
$7 million. Proceeds from the sale of
the Commercial Marketing Group will exceed the purchase price of
the CMY acquisition and will be used for debt repayment.
Second Quarter 2023 Results
Second quarter 2023 revenue increased 18.2% to $500.1 million from $423.1
million in the second quarter of 2022. Subcontractor and
other direct costs were 27.6% of revenue, in line with last year's
second quarter. Operating income increased 7.6% to $32.0 million, up from $29.8 million, and operating margin on
revenue was 6.3%. Net income totaled $20.3
million, and diluted EPS was $1.07 per share in the 2023 second quarter,
inclusive of $3.5 million, or
$0.13 per share of tax-effected
M&A and severance charges. Second quarter 2023 net income and
diluted EPS includes a one-time tax benefit and other tax
optimization strategies of $0.21 per
share.
Non-GAAP EPS increased 18.0% to $1.57 per share, from the $1.33 per share reported in the comparable
year-ago period, inclusive of a one-time tax benefit and other tax
optimization strategies of $0.21 per
share. EBITDA was $47.5 million, an
increase of 19.2% compared to the $39.8
million reported a year ago. Adjusted EBITDA increased 15.3%
to $51.0 million, from $44.2 million in the second quarter of 2022.
Backlog and New Business
Total backlog was $3.6 billion at
the end of the second quarter of 2023. Funded backlog was
$1.6 billion, or approximately
45% of the total backlog. The total value of contracts awarded in
the 2023 second quarter was $441.4
million, and trailing-twelve-month contract awards totaled
$2.5 billion for a book-to-bill ratio
of 1.3.
Government Revenue Second Quarter 2023 Highlights
Revenue from government clients was $379.3 million, up 19.4%
year-over-year.
- U.S. federal government revenue was $271.8 million, 20.6% above the $225.3 million reported in the year-ago quarter.
Federal government revenue accounted for 54.4% of total revenue,
compared to 53.2% of total revenue in the second quarter of
2022.
- U.S. state and local government revenue increased 27.5% to
$81.2 million, from $63.7 million in the year-ago quarter. State and
local government clients represented 16.2% of total revenue,
compared to 15.1% in the second quarter of 2022.
- International government revenue was $26.3 million, compared to $28.6 million in the year-ago quarter.
International government revenue represented 5.3% of total revenue,
compared to 6.8% in the second quarter of 2022.
Key Government Contracts Awarded in the Second Quarter
2023
ICF was awarded government contracts with an aggregate value of
over $270 million. Notable awards won
in the second quarter 2023 included:
Digital Modernization
- A contract modification with a value of $32.3 million with a federal agency within the
U.S. Department of Health and Human Services to continue to support
its digital modernization efforts to improve access to critical
public health data.
- A bridge contract with a value of $30.2
million with a U.S. federal government agency to support its
digital modernization and maintenance efforts.
- A new task order with a value of $8.7
million with a U.S. federal government department to
continue to support its digital modernization efforts.
Disaster Management
- A new contract with a value of $32.1
million with a U.S. territory to provide disaster management
consulting services to accelerate federally funded recovery efforts
across the territory.
Public Health and Social Programs
- A new single-award blanket purchase agreement with a ceiling of
$30.0 million with the U.S.
Department of the Interior to modernize the training systems and
develop incident position standards for the nation's professional
wildland firefighters.
- A new follow-on contract with a value of $13.8 million with the U.S. Department of
Justice Office for Victims of Crime
(OVC) to provide training and technical assistance (TTA) to
support its Technical Assistance Collective that expands the
collective impact of OVC's TTA providers through networking,
collaboration and easily accessible online tools.
- A recompete task order with a potential value of $11.8 million with the U.S. National Cancer
Institute to provide project management, technical, computing and
administrative support to manage research portfolios for the
Division of Cancer Control and Population Sciences.
Commercial Revenue Second Quarter 2023 Highlights
Commercial revenue was $120.7 million, 14.5% above the $105.5 million reported in the year-ago
quarter.
- Commercial revenue accounted for 24.1% of total revenue
compared to 24.9% of total revenue in the 2022 second
quarter.
- Energy markets, which includes energy efficiency programs,
represented 73.2% of commercial revenue. Marketing services and
aviation consulting accounted for 19.1% of commercial revenue.
Key Commercial Contracts Awarded in the Second Quarter
2023
ICF was awarded commercial projects during the quarter with an
aggregate value of approximately $170
million. Notable commercial awards won in the second quarter
2023 included:
Energy Markets
- A new master services agreement with a Midwestern U.S. utility
to provide energy efficiency program implementation services for
its residential portfolio.
- A sole-source contract extension with a Northeastern U.S.
utility to continue to provide implementation services for its
residential energy efficiency program.
- A recompete contract with a North American energy regulator to
provide digital modernization and ongoing support services for its
program to provide utility bill offsets to low-income
households.
- A new contract with a North American electricity system
operator to provide support services for its energy efficiency
retrofit program.
- A new contract with a Midwestern U.S. utility to provide energy
efficiency program implementation services for its commercial and
industrial pilot.
Commercial Marketing and Other Commercial
Markets
- A contract extension with a U.S. hospitality company to
continue to provide loyalty program operations support
services.
- A recompete contract with a U.S. health insurance provider to
provide brand strategy and execution services.
Dividend Declaration
On August 3, 2023, ICF declared a
quarterly cash dividend of $0.14 per
share, payable on October 13,
2023, to shareholders of record on September 8, 2023.
Summary and Outlook
"Our strong first-half revenue performance continues to
illustrate how well-aligned ICF's expertise and capabilities are
with market demand and clients' spending priorities. During the
period, we continued to invest in people and technology that
enabled ICF to execute effectively on our existing contracts, while
positioning us to capture an even greater share of future growth
opportunities. The sale of our Commercial Marketing Group was a
strategic decision to streamline our business and deploy our
resources to support the key growth markets we have identified,
illustrated by the acquisition of CMY, which fully aligns with the
increased demand we anticipate from commercial energy clients.
"The net impact from the sale of the Commercial Marketing Group
and the acquisition of CMY is not expected to have a material
effect on the guidance ranges we provided for full-year 2023.
Therefore, we continue to expect 2023 total revenue of $1.930 billion to $2.0
billion, and we anticipate that subcontractor and other
direct costs will be approximately 27% of total revenue. Likewise,
we continue to estimate EBITDA to range from $210 million to $220
million, and diluted EPS is projected at $4.75 to $5.05,
exclusive of special charges. Non-GAAP EPS is expected to range
from $6.15 to $6.45. Operating cash flow is expected to be
approximately $150 million in
2023.
"We recently released our 2023 Corporate Citizenship Report
which highlights how ICF is investing in our people, minimizing our
environmental footprint, supporting our communities, and serving
our clients with integrity. Over 85% of ICF's first-half 2023
revenues were derived from services supporting energy saving,
carbon reduction and natural resource protection programs as well
as health, education, development and social justice programs. We
are proud of the impact that ICF and its people are having on
society," Mr. Wasson concluded.
1 Non-GAAP EPS, EBITDA, and Adjusted EBITDA 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.
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
|
|
|
|
|
|
|
|
|
|
ICF International, Inc. and
Subsidiaries
|
|
Consolidated Statements of Comprehensive
Income
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
June 30,
|
|
(in thousands, except per share
amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue
|
|
$
500,085
|
|
$
423,110
|
|
$
983,367
|
|
$
836,578
|
|
Direct costs
|
|
325,404
|
|
268,905
|
|
637,969
|
|
527,063
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Indirect and selling
expenses
|
|
126,522
|
|
114,403
|
|
250,255
|
|
231,855
|
|
Depreciation and
amortization
|
|
6,826
|
|
5,063
|
|
13,135
|
|
9,901
|
|
Amortization of
intangible assets
|
|
9,286
|
|
4,963
|
|
18,510
|
|
10,280
|
|
Total operating costs
and expenses
|
|
142,634
|
|
124,429
|
|
281,900
|
|
252,036
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
32,047
|
|
29,776
|
|
63,498
|
|
57,479
|
|
Interest,
net
|
|
(10,132)
|
|
(4,049)
|
|
(19,589)
|
|
(6,676)
|
|
Other (expense)
income
|
|
(677)
|
|
44
|
|
(1,235)
|
|
(395)
|
|
Income before income
taxes
|
|
21,238
|
|
25,771
|
|
42,674
|
|
50,408
|
|
Provision for income
taxes
|
|
926
|
|
7,374
|
|
5,964
|
|
14,149
|
|
Net income
|
|
$
20,312
|
|
$
18,397
|
|
$
36,710
|
|
$
36,259
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.08
|
|
$
0.98
|
|
$
1.95
|
|
$
1.93
|
|
Diluted
|
|
$
1.07
|
|
$
0.97
|
|
$
1.94
|
|
$
1.91
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
18,791
|
|
18,796
|
|
18,785
|
|
18,795
|
|
Diluted
|
|
18,919
|
|
18,954
|
|
18,942
|
|
18,991
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share
|
|
$
0.14
|
|
$
0.14
|
|
$
0.28
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
|
3,151
|
|
(4,211)
|
|
1,817
|
|
(1,552)
|
|
Comprehensive income,
net of tax
|
|
$
23,463
|
|
$
14,186
|
|
$
38,527
|
|
$
34,707
|
|
ICF International, Inc. and
Subsidiaries
|
|
Reconciliation of Non-GAAP financial
measures(2)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
(in thousands, except per share
amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
20,312
|
|
$
18,397
|
|
$
36,710
|
|
$
36,259
|
|
Interest,
net
|
|
10,132
|
|
4,049
|
|
19,589
|
|
6,676
|
|
Provision for income
taxes
|
|
926
|
|
7,374
|
|
5,964
|
|
14,149
|
|
Depreciation and
amortization
|
|
16,112
|
|
10,026
|
|
31,645
|
|
20,181
|
|
EBITDA
(3)
|
|
$
47,482
|
|
$
39,846
|
|
$
93,908
|
|
$
77,265
|
|
Impairment of
long-lived assets (4)
|
|
—
|
|
—
|
|
894
|
|
—
|
|
Acquisition and
divestiture-related expenditures (5)
|
|
2,103
|
|
2,262
|
|
2,906
|
|
3,581
|
|
Severance and other
costs related to staff realignment (6)
|
|
1,365
|
|
185
|
|
3,860
|
|
1,411
|
|
Facilities
consolidations and office closures (7)
|
|
—
|
|
—
|
|
359
|
|
—
|
|
Expenses related to the
transfer to our new corporate headquarters
(8)
|
|
—
|
|
1,882
|
|
—
|
|
3,764
|
|
Total
Adjustments
|
|
3,468
|
|
4,329
|
|
8,019
|
|
8,756
|
|
Adjusted
EBITDA
|
|
$
50,950
|
|
$
44,175
|
|
$
101,927
|
|
$
86,021
|
|
|
|
|
|
|
|
|
|
|
Net Income Margin
Percent on Revenue (9)
|
|
4.1 %
|
|
4.3 %
|
|
3.7 %
|
|
4.3 %
|
|
EBITDA Margin Percent
on Revenue (10)
|
|
9.5 %
|
|
9.4 %
|
|
9.5 %
|
|
9.2 %
|
|
Adjusted EBITDA Margin
Percent on Revenue (10)
|
|
10.2 %
|
|
10.4 %
|
|
10.4 %
|
|
10.3 %
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Diluted
EPS
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Diluted
EPS
|
|
$
1.07
|
|
$
0.97
|
|
$
1.94
|
|
$
1.91
|
|
Impairment of
long-lived assets
|
|
—
|
|
—
|
|
0.05
|
|
—
|
|
Acquisition and
divestiture-related expenses
|
|
0.11
|
|
0.12
|
|
0.15
|
|
0.19
|
|
Severance and other
costs related to staff realignment
|
|
0.07
|
|
0.01
|
|
0.20
|
|
0.07
|
|
Facilities
consolidations and office closures
|
|
—
|
|
—
|
|
0.02
|
|
—
|
|
Expenses related to the
transfer to our new corporate headquarters
|
|
—
|
|
0.10
|
|
—
|
|
0.20
|
|
Amortization of
intangibles
|
|
0.49
|
|
0.26
|
|
0.98
|
|
0.54
|
|
Income tax effects
(11)
|
|
(0.17)
|
|
(0.13)
|
|
(0.34)
|
|
(0.28)
|
|
Non-GAAP Diluted
EPS
|
|
$
1.57
|
|
$
1.33
|
|
$
3.00
|
|
$
2.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
The calculation of EBITDA for the three
and six months ended June 30, 2022 has been revised to conform to
the current period calculation of EBITDA. Specifically, interest
income of $0.1 million and $0.1 million, respectively, was
reclassified from "Other expense" to "Interest, net" on the
consolidated statements of comprehensive income.
|
|
|
|
|
|
|
|
|
|
|
(4)
We recognized impairment expense of $0.9
million in the first quarter of 2023 related to impairment of an
intangible asset.
|
|
|
|
|
|
|
|
|
|
|
(5)
These costs consist primarily of
third-party costs and integration costs associated with our
acquisitions and/or potential acquisitions and separation costs
associated with business discontinuation/divestitures.
|
|
|
|
|
|
|
|
|
|
|
(6)
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)
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.
|
|
|
|
|
|
|
|
|
|
|
(8)
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.
|
|
|
|
|
|
|
|
|
|
|
(9)
Net Income Margin Percent on Revenue was
calculated by dividing net income by revenue.
|
|
|
|
|
|
|
|
|
|
|
(10)
EBITDA Margin Percent and Adjusted EBITDA
Margin Percent on Revenue 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 certain discrete items, if
any, of 25.6% and 28.6% for the three months ended June 30, 2023
and 2022, respectively, and 24.6% and 28.1% for the six months
ended June 30, 2023 and 2022, respectively.
|
|
ICF International, Inc. and
Subsidiaries
|
|
|
Consolidated Balance Sheets
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in thousands, except share and per share
amounts)
|
|
June 30,
2023
|
|
December 31,
2022
|
|
|
ASSETS
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
6,972
|
|
$
11,257
|
|
|
Restricted
cash
|
|
4,498
|
|
1,711
|
|
|
Contract
receivables, net
|
|
226,360
|
|
232,337
|
|
|
Contract
assets
|
|
200,202
|
|
169,088
|
|
|
Prepaid expenses
and other assets
|
|
32,579
|
|
40,709
|
|
|
Income tax
receivable
|
|
7,629
|
|
11,616
|
|
|
Total Current Assets
|
|
478,240
|
|
466,718
|
|
|
Property and Equipment, net
|
|
84,029
|
|
85,402
|
|
|
Other Assets:
|
|
|
|
|
|
|
Goodwill
|
|
1,236,380
|
|
1,212,898
|
|
|
Other intangible
assets, net
|
|
117,145
|
|
126,537
|
|
|
Operating lease -
right-of-use assets
|
|
146,539
|
|
149,066
|
|
|
Other
assets
|
|
53,089
|
|
51,637
|
|
|
Total Assets
|
|
$
2,115,422
|
|
$
2,092,258
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Current portion
of long-term debt
|
|
$
20,500
|
|
$
23,250
|
|
|
Accounts
payable
|
|
113,273
|
|
135,778
|
|
|
Contract
liabilities
|
|
19,647
|
|
25,773
|
|
|
Operating lease
liabilities
|
|
17,544
|
|
19,305
|
|
|
Finance lease
liabilities
|
|
2,420
|
|
2,381
|
|
|
Accrued salaries
and benefits
|
|
86,777
|
|
85,991
|
|
|
Accrued
subcontractors and other direct costs
|
|
43,623
|
|
45,478
|
|
|
Accrued expenses
and other current liabilities
|
|
65,372
|
|
78,036
|
|
|
Total Current Liabilities
|
|
369,156
|
|
415,992
|
|
|
Long-term Liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
581,297
|
|
533,084
|
|
|
Operating lease
liabilities - non-current
|
|
185,924
|
|
182,251
|
|
|
Finance lease
liabilities - non-current
|
|
14,894
|
|
16,116
|
|
|
Deferred income
taxes
|
|
62,820
|
|
68,038
|
|
|
Other long-term
liabilities
|
|
28,486
|
|
23,566
|
|
|
Total Liabilities
|
|
1,242,577
|
|
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; 23,946,260 and 23,771,596
shares issued at June 30, 2023 and December 31, 2022,
respectively; 18,814,675 and 18,883,050 shares outstanding at
June 30, 2023 and December 31, 2022,
respectively
|
|
24
|
|
23
|
|
|
Additional
paid-in capital
|
|
411,187
|
|
401,957
|
|
|
Retained
earnings
|
|
734,468
|
|
703,030
|
|
|
Treasury stock,
5,131,585 and 4,906,209 shares at June 30, 2023 and
December 31, 2022 respectively
|
|
(266,518)
|
|
(243,666)
|
|
|
Accumulated other
comprehensive loss
|
|
(6,316)
|
|
(8,133)
|
|
|
Total Stockholders' Equity
|
|
872,845
|
|
853,211
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
$
2,115,422
|
|
$
2,092,258
|
|
|
|
|
|
|
|
ICF International, Inc. and
Subsidiaries
|
|
Consolidated Statements of Cash
Flows
|
|
(Unaudited)
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
(in
thousands)
|
|
2023
|
|
2022
|
|
Cash Flows from Operating
Activities
|
|
|
|
|
|
Net income
|
|
$
36,710
|
|
$
36,259
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
|
837
|
|
(172)
|
|
Deferred income
taxes
|
|
(4,823)
|
|
4,741
|
|
Non-cash equity
compensation
|
|
6,688
|
|
6,507
|
|
Depreciation and
amortization
|
|
31,646
|
|
20,181
|
|
Facilities
consolidation reserve
|
|
—
|
|
(156)
|
|
Amortization of debt
issuance costs
|
|
651
|
|
617
|
|
Impairment of
long-lived assets
|
|
888
|
|
—
|
|
Other adjustments,
net
|
|
(1,411)
|
|
868
|
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
Net contract assets and
liabilities
|
|
(38,332)
|
|
(71,612)
|
|
Contract
receivables
|
|
8,856
|
|
17,520
|
|
Prepaid expenses and
other assets
|
|
13,864
|
|
(5,758)
|
|
Operating lease assets
and liabilities, net
|
|
2,894
|
|
(997)
|
|
Accounts
payable
|
|
(22,742)
|
|
(5,801)
|
|
Accrued salaries and
benefits
|
|
405
|
|
1,512
|
|
Accrued subcontractors
and other direct costs
|
|
(2,173)
|
|
6,754
|
|
Accrued expenses and
other current liabilities
|
|
(18,311)
|
|
(3,253)
|
|
Income tax receivable
and payable
|
|
3,999
|
|
(1,572)
|
|
Other
liabilities
|
|
233
|
|
771
|
|
Net Cash Provided by Operating
Activities
|
|
19,879
|
|
6,409
|
|
|
|
|
|
|
Cash Flows from Investing
Activities
|
|
|
|
|
|
Capital expenditures
for property and equipment and capitalized software
|
|
(13,139)
|
|
(11,026)
|
|
Proceeds from working
capital adjustments related to prior business
acquisition
|
|
—
|
|
2,911
|
|
Payments for business
acquisitions, net of cash acquired
|
|
(32,664)
|
|
—
|
|
Net Cash Used in Investing
Activities
|
|
(45,803)
|
|
(8,115)
|
|
|
|
|
|
|
Cash Flows from Financing
Activities
|
|
|
|
|
|
Advances from working
capital facilities
|
|
669,437
|
|
869,529
|
|
Payments on working
capital facilities
|
|
(624,553)
|
|
(838,259)
|
|
Proceeds from other
short-term borrowings
|
|
7,632
|
|
—
|
|
Repayments of other
short-term borrowings
|
|
(2,483)
|
|
—
|
|
Receipt of restricted
contract funds
|
|
4,940
|
|
10,967
|
|
Payment of restricted
contract funds
|
|
(3,962)
|
|
(20,550)
|
|
Debt issuance
costs
|
|
—
|
|
(4,776)
|
|
Payments of principal
portion of finance leases
|
|
(1,183)
|
|
—
|
|
Proceeds from exercise
of options
|
|
278
|
|
194
|
|
Dividends
paid
|
|
(5,271)
|
|
(5,280)
|
|
Net payments for stock
issuances and buybacks
|
|
(20,588)
|
|
(20,778)
|
|
Payments on business
acquisition liabilities
|
|
—
|
|
(121)
|
|
Net Cash Provided by (Used in) Financing
Activities
|
|
24,247
|
|
(9,074)
|
|
Effect of Exchange Rate Changes on Cash, Cash
Equivalents, and Restricted Cash
|
|
179
|
|
(1,189)
|
|
|
|
|
|
|
Decrease in Cash, Cash Equivalents, and Restricted
Cash
|
|
(1,498)
|
|
(11,969)
|
|
Cash, Cash Equivalents, and Restricted Cash,
Beginning of Period
|
|
12,968
|
|
20,433
|
|
Cash, Cash Equivalents, and Restricted Cash, End of
Period
|
|
$
11,470
|
|
$
8,464
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow
Information
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
19,129
|
|
$
6,473
|
|
Income taxes
|
|
$
8,450
|
|
$
12,373
|
|
Non-cash investing and
financing transactions:
|
|
|
|
|
|
Tenant improvements
funded by lessor
|
|
$
—
|
|
$
20,243
|
|
ICF International, Inc. and
Subsidiaries
|
|
Supplemental Schedule
(13)(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
Client Markets:
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Energy, environment,
infrastructure, and disaster recovery
|
|
41 %
|
|
41 %
|
|
40 %
|
|
41 %
|
|
Health and social
programs
|
|
41 %
|
|
37 %
|
|
42 %
|
|
38 %
|
|
Security and other
civilian & commercial
|
|
18 %
|
|
22 %
|
|
18 %
|
|
21 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
Client Type:
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
U.S. federal
government
|
|
55 %
|
|
53 %
|
|
55 %
|
|
53 %
|
|
U.S. state and local
government
|
|
16 %
|
|
15 %
|
|
16 %
|
|
15 %
|
|
International
government
|
|
5 %
|
|
7 %
|
|
5 %
|
|
7 %
|
|
Total
Government
|
|
76 %
|
|
75 %
|
|
76 %
|
|
75 %
|
|
Commercial
|
|
24 %
|
|
25 %
|
|
24 %
|
|
25 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
Contract
Mix:
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Time-and-materials
|
|
42 %
|
|
40 %
|
|
42 %
|
|
40 %
|
|
Fixed-price
|
|
45 %
|
|
44 %
|
|
45 %
|
|
44 %
|
|
Cost-based
|
|
13 %
|
|
16 %
|
|
13 %
|
|
16 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
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.
|
View original content to download
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SOURCE ICF
