-- Favorable Business Mix and Higher
Utilization Drove Strong EPS Performance --
-- Record Business Development Pipeline of
$10.5 Billion at Quarter-End
--
-- Increasing Full Year EPS and EBITDA
Guidance Primarily to Reflect Mix Shift --
Second Quarter Highlights:
- Revenue Increased 2% to $512
Million; Up 6% Excluding Divestitures
- Net Income Was $25.6 Million
and GAAP EPS Was $1.36, Up
27%
- Non-GAAP EPS1 Was $1.69, Up 8%
- EBITDA1 Was $55.6
Million, Up 17%; Adjusted EBITDA1 Was
$56.0 Million, Up 10%
- Contract Awards Were a Record $810
Million, Up 83% Year-on-Year for a TTM Book-to-Bill Ratio of
1.40
RESTON,
Va., Aug. 1, 2024 /PRNewswire/ -- ICF (NASDAQ:
ICFI), a global consulting and technology services provider,
reported results for the second quarter ended June 30, 2024.
Commenting on the results, John
Wasson, chair and chief executive officer, said, "We
delivered strong performance across all key financial metrics in
the second quarter, demonstrating the benefits of our diversified
portfolio and reflecting continued favorable business mix. Revenues
increased 2% year-on-year and increased 6% from last year's levels
adjusting for the divestiture of our commercial marketing business
lines in 2023.
"Similar to the first quarter, our second quarter results were
led by robust growth in higher-margin revenues from commercial
energy clients. We experienced especially strong demand from our
utility clients for ICF's core energy efficiency programs as well
as our expanded offerings in priority areas including grid
resilience, electrification, decarbonization and flexible load
management, all of which are particularly relevant given the growth
in data center demand. Revenues from our Energy, Environment,
Infrastructure and Disaster Recovery client market increased 14% to
account for 45% of ICF's second quarter revenues, compared to its
41% contribution to last year's second quarter revenues.
"Margin expansion was a key driver of our strong second quarter
earnings. In addition to favorable business mix and higher
utilization, margin performance reflected lower facility costs,
together with the benefits of our increased scale. Also, lower
depreciation and amortization expense and lower interest expense
enhanced our net income and earnings per share results for the
period.
"This was a record second quarter of contract awards for ICF,
which reached $810 million,
representing a quarterly book-to-bill ratio of 1.58 and a trailing
twelve-month book-to-bill ratio of 1.40. New business wins
accounted for approximately 55% of our first half awards,
demonstrating how well ICF's capabilities are aligned with client
spending priorities. Additionally, an increasing percentage of the
value of our year-to-date awards represented contracts that include
an AI component, a good indicator of our recognized expertise in
this high-demand area."
Second Quarter 2024 Results
Second quarter 2024 total revenue was $512.0 million, a 2.4% increase from the
$500.1 million reported in the second
quarter of 2023, and up 6.2% from last year's second quarter
revenues adjusted for the divestiture of our commercial marketing
business lines. Subcontractor and other direct costs were 25.9% of
total revenues compared to 27.5% in last year's second quarter.
Operating income was $42.4 million,
up 32.3% from $32.0 million last
year, and operating margin on total revenue expanded to 8.3% from
6.4%. Net income totaled $25.6
million, and GAAP EPS was $1.36 per share. This compares to net income and
GAAP EPS of $20.3 million, and
$1.07, respectively, reported in the
second quarter of 2023, which included $3.5
million, or $0.13 per share of
tax-effected special charges. In the 2024 second quarter, the
company's tax rate was 26.3% compared to 4.4% in the 2023 second
quarter.
Non-GAAP EPS increased 7.6% to $1.69 per share, from $1.57 per share reported in the comparable period
in 2023. EBITDA was $55.6 million,
17.2% above the $47.5 million
reported in the year-ago period. Adjusted EBITDA increased 9.9% to
$56.0 million from $51.0 million for the comparable period in
2023.
Backlog and New Business
Total backlog was $3.8 billion at
the end of the second quarter of 2024. Funded backlog was
$1.7 billion, or 45% of the total
backlog. The total value of contracts awarded in the 2024 second
quarter was $810 million, up 83%
year-on-year for a book-to-bill ratio of 1.58, and trailing
twelve-month contract awards totaled $2.8
billion, up 12% year-on-year for a book-to-bill ratio of
1.40.
Government Revenue Second Quarter 2024 Highlights
Revenue from government clients was $387.0 million, up 1.8% year-over-year.
- U.S. federal government revenue was $273.5 million, an increase of 0.2% compared to
the $273.1 million reported in the
second quarter of 2023 and was unfavorably impacted by a
year-over-year decrease in revenues from subcontractor and other
direct costs of $9.1 million in the
quarter. Federal government revenue accounted for 53.4% of total
revenue, compared to 54.6% of total revenue in the second quarter
of 2023.
- U.S. state and local government revenue increased 4.7% to
$84.8 million, from $81.1 million in the year-ago quarter. State and
local government clients represented 16.6% of total revenue, up
from 16.2% from the second quarter of 2023.
- International government revenue was $28.7 million, up 9.5% from the $26.2 million reported in the year-ago quarter.
International government revenue represented 5.6% of total revenue,
compared to 5.2% in the second quarter of 2023.
Key Government Contracts Awarded in the Second
Quarter 2024
Notable government contract awards won in the second quarter of
2024 included:
Health and Social Programs
- A recompete contract with a value of $236.8 million with the U.S. Agency for
International Development Bureau for Global Health to continue to
deliver the Demographic and Health Surveys Program.
- Two recompete framework contracts with a combined value of
$6.5 million with a directorate
general of the European Commission to provide evaluation
services.
IT Modernization
- A new subcontract with a value of $87.7
million to continue modernizing and executing the Centers
for Medicare and Medicaid Services Quality Payment Program.
- A contract extension with a value of $29.8 million with a U.S. federal agency to
continue to provide digital modernization services.
- A new contract with a value of $16.8
million with the U.S. Federal Emergency Management Agency
(FEMA) to build a cloud-based data exchange platform to improve the
efficiency and cost-effectiveness of FEMA's disaster response and
recovery efforts.
- A contract extension with a value of $15.2 million with a U.S. federal agency to
continue to provide digital modernization and maintenance
services.
Disaster Management and Mitigation
- A recompete contract with a value of $84.1 million with the Government of Puerto Rico's Public-Private Partnership
Authority to continue supporting long-term disaster recovery and
mitigation efforts across the territory.
Climate, Energy and Environment
- A recompete contract with a ceiling of $17.1 million with The Los Angeles County
Southern California Regional Energy Network to design and deliver
their full portfolio of residential energy efficiency
programs.
- A recompete master services agreement with a ceiling of
$11.7 million with a Western U.S.
state transportation department to provide on-call environmental
services.
- A contract modification with a value of $7.6 million with a Northwest U.S. public utility
to support its public electric vehicle charging program.
Commercial Revenue Second Quarter 2024 Highlights
Commercial revenue was $125.0
million, compared to $119.8
million reported in the second quarter of 2023, up 22.6%
compared to revenues of $101.9
million excluding divestitures in 2023.
- Energy markets revenue, which includes energy efficiency
programs, increased 24.8% and represented 86.6% of commercial
revenue.
- Commercial revenue accounted for 24.4% of total revenue
compared to 23.9% of total revenue in the 2023 second quarter.
Key Commercial Contracts Awarded in the Second Quarter of
2024
Notable commercial awards won in the second quarter of 2024
included:
Energy Markets
- A large multimillion-dollar recompete contract with a
Northeastern U.S. utility to provide program implementation
services for its residential energy efficiency portfolio.
- A new contract with a Northeastern U.S. utility to provide
program implementation services for its residential and commercial
and industrial (C&I) energy efficiency programs.
- A contract modification with a Northeastern U.S. utility to
continue to serve as the utility's agency of record for its energy
efficiency programs.
- A new contract with a Northwestern U.S. utility to support its
portfolio of energy efficiency products programs.
- A subcontract modification to administer a Midwestern U.S.
utility's pilots program.
- A new contract with an Eastern U.S. utility to provide program
implementation services for its residential and C&I energy
efficiency programs.
Dividend Declaration
On August 1, 2024, ICF declared a
quarterly cash dividend of $0.14 per
share, payable on October 11, 2024, to shareholders of
record on September 6, 2024.
Summary and Outlook
"Following our strong year-to-date performance and based on our
current visibility for continued favorable business mix and
utilization metrics, we are pleased to increase our earnings per
share and adjusted EBITDA guidance for full year 2024. Our revised
guidance is for GAAP EPS in the range of $5.60 to $5.90 and
Non-GAAP EPS of $6.95 to $7.25, up $0.35
from prior guidance and representing year-on-year growth of 32.2%
and 9.2%, respectively, at the midpoints. Adjusted EBITDA is now
expected to range between $225
million and $235 million, up
from our prior guidance of $220
million to $230 million. The
midpoint of this range will result in ICF achieving the three-year
EBITDA objective we provided at our 2022 Investor Day adjusted for
the 2023 divestitures, and we expect to accomplish this with
substantially fewer acquisitions than originally contemplated.
"Our first half results have put us on track to achieve our full
year revenue guidance for 2024. Based on our current visibility, we
expect our Energy, Environment, Infrastructure and Disaster
Recovery client market to show robust growth in the second half of
this year, continuing to more than offset results in our Health and
Social Programs client market, where gross revenue comparisons have
been impacted by lower pass-through revenues. Operating cash flow
guidance remains at approximately $155
million.
"A growing backlog and our record business development pipeline
of $10.5 billion at the end of the
second quarter support our expectations for continued strong growth
in 2024 and give us confidence in ICF's ability to continue to grow
at a high single-digit rate in the coming years. We are
experiencing high demand from commercial clients for our energy and
environmental expertise and implementation skills. We have
excellent credentials to assist state and local government clients
in meeting their planning, resilience and mitigation objectives, as
well as supporting their disaster recovery efforts. We also have
significantly expanded our capabilities in areas in the federal
government that have bipartisan support, particularly IT
modernization, which remains an area of priority spending.
"We appreciate the tremendous contributions of our staff in
driving the success of ICF by supporting our clients with
multi-disciplinary advisory work and cross-cutting implementation
skills. Their passion for their work and for the impact it has on
society is ICF's 'secret sauce'," 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. GAAP EPS refers to U.S. GAAP Diluted EPS. Non-GAAP EPS
refers to Non-GAAP Diluted EPS. 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)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
|
$
512,029
|
|
$
500,085
|
|
$
1,006,465
|
|
$
983,367
|
|
Direct costs
|
|
329,331
|
|
325,404
|
|
639,864
|
|
637,969
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Indirect and selling
expenses
|
|
127,091
|
|
126,522
|
|
256,185
|
|
250,255
|
|
Depreciation and
amortization
|
|
4,909
|
|
6,826
|
|
10,483
|
|
13,135
|
|
Amortization of
intangible assets
|
|
8,291
|
|
9,286
|
|
16,582
|
|
18,510
|
|
Total operating costs
and expenses
|
|
140,291
|
|
142,634
|
|
283,250
|
|
281,900
|
|
Operating
income
|
|
42,407
|
|
32,047
|
|
83,351
|
|
63,498
|
|
Interest,
net
|
|
(7,703)
|
|
(10,132)
|
|
(15,941)
|
|
(19,589)
|
|
Other income
(expense)
|
|
36
|
|
(677)
|
|
1,666
|
|
(1,235)
|
|
Income before income
taxes
|
|
34,740
|
|
21,238
|
|
69,076
|
|
42,674
|
|
Provision for income
taxes
|
|
9,129
|
|
926
|
|
16,148
|
|
5,964
|
|
Net income
|
|
$
25,611
|
|
$
20,312
|
|
$
52,928
|
|
$
36,710
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.37
|
|
$
1.08
|
|
$
2.82
|
|
$
1.95
|
|
Diluted
|
|
$
1.36
|
|
$
1.07
|
|
$
2.80
|
|
$
1.94
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
18,738
|
|
18,791
|
|
18,748
|
|
18,785
|
|
Diluted
|
|
18,861
|
|
18,919
|
|
18,912
|
|
18,942
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$
0.14
|
|
$
0.14
|
|
$
0.28
|
|
$
0.28
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income, net of tax
|
|
(343)
|
|
3,151
|
|
341
|
|
1,817
|
|
Comprehensive income,
net of tax
|
|
$
25,268
|
|
$
23,463
|
|
$
53,269
|
|
$
38,527
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of Revenue, Adjusted for Impact of
Exited Business
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
512,029
|
|
$
500,085
|
|
$
1,006,465
|
|
$
983,367
|
|
Less: Revenue from
exited business (3)
|
|
—
|
|
(17,831)
|
|
—
|
|
(46,148)
|
|
Total Revenue,
Adjusted for Impact of Exited Business
|
|
$
512,029
|
|
$
482,254
|
|
$
1,006,465
|
|
$
937,219
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA
(4)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
25,611
|
|
$
20,312
|
|
$
52,928
|
|
$
36,710
|
|
Interest,
net
|
|
7,703
|
|
10,132
|
|
15,941
|
|
19,589
|
|
Provision for income
taxes
|
|
9,129
|
|
926
|
|
16,148
|
|
5,964
|
|
Depreciation and
amortization
|
|
13,200
|
|
16,112
|
|
27,065
|
|
31,645
|
|
EBITDA
|
|
55,643
|
|
47,482
|
|
112,082
|
|
93,908
|
|
Impairment of
long-lived assets (5)
|
|
—
|
|
—
|
|
—
|
|
894
|
|
Acquisition and
divestiture-related expenses (6)
|
|
—
|
|
2,103
|
|
66
|
|
2,906
|
|
Severance and other
costs related to staff realignment (7)
|
|
370
|
|
1,365
|
|
735
|
|
3,860
|
|
Charges for facility
consolidations and office closures (8)
|
|
—
|
|
—
|
|
—
|
|
359
|
|
Pre-tax gain from
divestiture of a business (9)
|
|
—
|
|
—
|
|
(1,715)
|
|
—
|
|
Total
Adjustments
|
|
370
|
|
3,468
|
|
(914)
|
|
8,019
|
|
Adjusted
EBITDA
|
|
$
56,013
|
|
$
50,950
|
|
$
111,168
|
|
$
101,927
|
|
|
|
|
|
|
|
|
|
|
Net Income Margin
Percent on Revenue (10)
|
|
5.0 %
|
|
4.1 %
|
|
5.3 %
|
|
3.7 %
|
|
EBITDA Margin Percent
on Revenue (11)
|
|
10.9 %
|
|
9.5 %
|
|
11.1 %
|
|
9.5 %
|
|
Adjusted EBITDA Margin
Percent on Revenue (11)
|
|
10.9 %
|
|
10.2 %
|
|
11.0 %
|
|
10.4 %
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Diluted EPS
(4)
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Diluted
EPS
|
|
$
1.36
|
|
$
1.07
|
|
$
2.80
|
|
$
1.94
|
|
Impairment of
long-lived assets
|
|
—
|
|
—
|
|
—
|
|
0.05
|
|
Acquisition and
divestiture-related expenses
|
|
—
|
|
0.11
|
|
—
|
|
0.15
|
|
Severance and other
costs related to staff realignment
|
|
0.02
|
|
0.07
|
|
0.04
|
|
0.20
|
|
Expenses related to
facility consolidations and office closures
(12)
|
|
—
|
|
—
|
|
0.04
|
|
0.02
|
|
Pre-tax gain from
divestiture of a business
|
|
—
|
|
—
|
|
(0.09)
|
|
—
|
|
Amortization of
intangibles
|
|
0.44
|
|
0.49
|
|
0.88
|
|
0.98
|
|
Income tax effects of
the adjustments (13)
|
|
(0.13)
|
|
(0.17)
|
|
(0.21)
|
|
(0.34)
|
|
Non-GAAP Diluted
EPS
|
|
$
1.69
|
|
$
1.57
|
|
$
3.46
|
|
$
3.00
|
|
|
|
|
|
|
|
|
|
|
(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) Revenue
from the exited U.K. commercial marketing business (June 30, 2023),
U.S. commercial marketing business (September 11, 2023), and
Canadian mobile text aggregation business (November 1,
2023).
|
|
|
|
|
|
|
|
|
|
|
(4)
Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted
EPS were calculated using numbers as reported in U.S.
GAAP.
|
|
|
|
|
|
|
|
|
|
|
(5)
Represents impairment of an intangible asset associated with the
exit of our commercial marketing business in the United Kingdom in
2023.
|
|
|
|
|
|
|
|
|
|
|
(6) These
are primarily third-party costs related to acquisitions and
potential acquisitions, integration of acquisitions, and separation
of discontinued businesses or divestitures.
|
|
|
|
|
|
|
|
|
|
|
(7) These
costs are mainly due to involuntary employee termination benefits
for our officers, and employees who have been notified that they
will be terminated as part of a business reorganization or
exit.
|
|
|
|
|
|
|
|
|
|
|
(8) These
are exit costs associated with terminated leases or full office
closures that we either (i) will continue to pay until the
contractual obligations are satisfied but with no economic benefit
to us, or (ii) paid upon termination and ceasing to use the leased
facilities.
|
|
|
|
|
|
|
|
|
|
|
(9) Pre-tax
gain resulting from the release of an escrow related to the 2023
divestiture of our U.S. commercial marketing business.
|
|
|
|
|
|
|
|
|
|
|
(10) Net
Income Margin Percent on Revenue was calculated by dividing net
income by revenue.
|
|
|
|
|
|
|
|
|
|
|
(11) EBITDA
Margin Percent and Adjusted EBITDA Margin Percent on Revenue were
calculated by dividing the non-GAAP measure by the corresponding
revenue.
|
|
|
|
|
|
|
|
|
|
|
(12) These
are exit costs related to actual office closures (previously
included in Adjusted EBITDA) and accelerated depreciation related
to fixed assets for planned office closures.
|
|
|
|
|
|
|
|
|
|
|
(13) Income
tax effects were calculated using the effective tax rate, adjusted
for certain discrete items, if any, of 26.3% and 25.6% for the
three months ended June 30, 2024 and 2023, respectively, and 23.4%
and 24.6% for the six months ended June 30, 2024 and 2023,
respectively.
|
|
ICF International, Inc. and
Subsidiaries
|
|
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
(in thousands, except share and per share
amounts)
|
|
June 30, 2024
|
|
December 31, 2023
|
|
ASSETS
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
4,056
|
|
$
6,361
|
|
Restricted
cash
|
|
712
|
|
3,088
|
|
Contract receivables,
net
|
|
209,351
|
|
205,484
|
|
Contract
assets
|
|
222,767
|
|
201,832
|
|
Prepaid expenses and
other assets
|
|
23,116
|
|
28,055
|
|
Income tax
receivable
|
|
4,589
|
|
2,337
|
|
Total Current Assets
|
|
464,591
|
|
447,157
|
|
Property and Equipment, net
|
|
72,357
|
|
75,948
|
|
Other Assets:
|
|
|
|
|
|
Goodwill
|
|
1,219,083
|
|
1,219,476
|
|
Other intangible
assets, net
|
|
78,321
|
|
94,904
|
|
Operating lease -
right-of-use assets
|
|
124,637
|
|
132,807
|
|
Other
assets
|
|
46,788
|
|
41,480
|
|
Total Assets
|
|
$
2,005,777
|
|
$
2,011,772
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
12,375
|
|
$
26,000
|
|
Accounts
payable
|
|
110,704
|
|
134,503
|
|
Contract
liabilities
|
|
20,102
|
|
21,997
|
|
Operating lease
liabilities
|
|
21,176
|
|
20,409
|
|
Finance lease
liabilities
|
|
2,567
|
|
2,522
|
|
Accrued salaries and
benefits
|
|
93,834
|
|
88,021
|
|
Accrued subcontractors
and other direct costs
|
|
52,661
|
|
45,645
|
|
Accrued expenses and
other current liabilities
|
|
78,624
|
|
79,129
|
|
Total Current Liabilities
|
|
392,043
|
|
418,226
|
|
Long-term Liabilities:
|
|
|
|
|
|
Long-term
debt
|
|
421,560
|
|
404,407
|
|
Operating lease
liabilities - non-current
|
|
166,178
|
|
175,460
|
|
Finance lease
liabilities - non-current
|
|
12,577
|
|
13,874
|
|
Deferred income
taxes
|
|
16,421
|
|
26,175
|
|
Other long-term
liabilities
|
|
53,673
|
|
56,045
|
|
Total Liabilities
|
|
1,062,452
|
|
1,094,187
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
Preferred stock, par
value $.001 per share; 5,000,000 shares
authorized; none issued
|
|
—
|
|
—
|
|
Common stock, par
value $.001; 70,000,000 shares authorized; 24,130,664 and
23,982,132 shares
issued at June 30, 2024 and December 31, 2023,
respectively; 18,757,022 and 18,845,521 shares
outstanding at June 30, 2024 and December 31, 2023,
respectively
|
|
24
|
|
24
|
|
Additional paid-in
capital
|
|
432,402
|
|
421,502
|
|
Retained
earnings
|
|
822,784
|
|
775,099
|
|
Treasury stock,
5,373,642 and 5,136,611 shares at June 30, 2024 and
December 31, 2023, respectively
|
|
(300,341)
|
|
(267,155)
|
|
Accumulated other
comprehensive loss
|
|
(11,544)
|
|
(11,885)
|
|
Total Stockholders' Equity
|
|
943,325
|
|
917,585
|
|
Total Liabilities and Stockholders'
Equity
|
|
$
2,005,777
|
|
$
2,011,772
|
|
|
|
|
|
|
ICF International, Inc. and
Subsidiaries
|
|
Consolidated Statements of Cash
Flows
|
|
(Unaudited)
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
(in thousands)
|
|
2024
|
|
2023
|
|
Cash Flows from Operating
Activities
|
|
|
|
|
|
Net income
|
|
$
52,928
|
|
$
36,710
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Provision for credit
losses
|
|
1,552
|
|
837
|
|
Deferred income taxes
and unrecognized income tax benefits
|
|
(10,233)
|
|
(4,823)
|
|
Non-cash equity
compensation
|
|
8,225
|
|
6,688
|
|
Depreciation and
amortization
|
|
27,066
|
|
31,646
|
|
Gain on divestiture of
a business
|
|
(1,715)
|
|
—
|
|
Other operating
adjustments, net
|
|
470
|
|
128
|
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
Net contract assets
and liabilities
|
|
(23,561)
|
|
(38,332)
|
|
Contract
receivables
|
|
(5,828)
|
|
8,856
|
|
Prepaid expenses and
other assets
|
|
3,787
|
|
13,864
|
|
Operating lease assets
and liabilities, net
|
|
(399)
|
|
2,894
|
|
Accounts
payable
|
|
(23,569)
|
|
(22,742)
|
|
Accrued salaries and
benefits
|
|
5,905
|
|
405
|
|
Accrued subcontractors
and other direct costs
|
|
7,335
|
|
(2,173)
|
|
Accrued expenses and
other current liabilities
|
|
13,075
|
|
(18,311)
|
|
Income tax receivable
and payable
|
|
(3,633)
|
|
3,999
|
|
Other
liabilities
|
|
(770)
|
|
233
|
|
Net Cash Provided by Operating
Activities
|
|
50,635
|
|
19,879
|
|
|
|
|
|
|
Cash Flows from Investing
Activities
|
|
|
|
|
|
Payments for purchase
of property and equipment and capitalized software
|
|
(10,392)
|
|
(13,139)
|
|
Payments for business
acquisitions, net of cash acquired
|
|
—
|
|
(32,664)
|
|
Proceeds from
divestiture of a business
|
|
1,715
|
|
—
|
|
Net Cash Used in Investing
Activities
|
|
(8,677)
|
|
(45,803)
|
|
|
|
|
|
|
Cash Flows from Financing
Activities
|
|
|
|
|
|
Advances from working
capital facilities
|
|
660,396
|
|
669,437
|
|
Payments on working
capital facilities
|
|
(657,420)
|
|
(624,553)
|
|
Proceeds from other
short-term borrowings
|
|
36,783
|
|
7,632
|
|
Repayments of other
short-term borrowings
|
|
(46,933)
|
|
(2,483)
|
|
Receipt of restricted
contract funds
|
|
1,269
|
|
4,940
|
|
Payment of restricted
contract funds
|
|
(3,583)
|
|
(3,962)
|
|
Dividends
paid
|
|
(5,257)
|
|
(5,271)
|
|
Net payments for
stockholder issuances and share repurchases
|
|
(30,618)
|
|
(20,588)
|
|
Other financing,
net
|
|
(1,145)
|
|
(905)
|
|
Net Cash (Used in) Provided by Financing
Activities
|
|
(46,508)
|
|
24,247
|
|
Effect of Exchange Rate Changes on Cash, Cash
Equivalents, and Restricted Cash
|
|
(131)
|
|
179
|
|
|
|
|
|
|
Decrease in Cash, Cash Equivalents, and Restricted
Cash
|
|
(4,681)
|
|
(1,498)
|
|
Cash, Cash Equivalents, and Restricted Cash,
Beginning of Period
|
|
9,449
|
|
12,968
|
|
Cash, Cash Equivalents, and Restricted Cash, End of
Period
|
|
$
4,768
|
|
$
11,470
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow
Information
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
15,270
|
|
$
19,129
|
|
Income
taxes
|
|
$
31,107
|
|
$
8,450
|
|
|
|
|
|
|
ICF International, Inc. and
Subsidiaries
|
|
Supplemental Schedule
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client markets
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Energy, environment,
infrastructure, and disaster recovery
|
|
45 %
|
|
41 %
|
|
45 %
|
|
40 %
|
|
Health and social
programs
|
|
38 %
|
|
41 %
|
|
39 %
|
|
41 %
|
|
Security and other
civilian & commercial
|
|
17 %
|
|
18 %
|
|
16 %
|
|
19 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client type
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
U.S. federal
government
|
|
53 %
|
|
55 %
|
|
54 %
|
|
55 %
|
|
U.S. state and local
government
|
|
17 %
|
|
16 %
|
|
16 %
|
|
16 %
|
|
International
government
|
|
6 %
|
|
5 %
|
|
6 %
|
|
5 %
|
|
Total Government
|
|
76 %
|
|
76 %
|
|
76 %
|
|
76 %
|
|
Commercial
|
|
24 %
|
|
24 %
|
|
24 %
|
|
24 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by contract mix
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Time-and-materials
|
|
42 %
|
|
42 %
|
|
42 %
|
|
42 %
|
|
Fixed-price
|
|
46 %
|
|
45 %
|
|
46 %
|
|
45 %
|
|
Cost-based
|
|
12 %
|
|
13 %
|
|
12 %
|
|
13 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
(14) 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.
|
View original content to download
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SOURCE ICF
