ICF Reports Second Quarter 2024 Results
ICF reported a solid Q2 2024 with strong EPS performance driven by a favorable business mix and higher utilization.
Revenue increased by 2% to $512 million, and adjusted for divestitures, it climbed 6%. The net income was $25.6 million, with GAAP EPS rising by 27% to $1.36. Non-GAAP EPS grew 8% to $1.69.
EBITDA rose by 17% to $55.6 million, and Adjusted EBITDA increased by 10%. The company achieved record contract awards of $810 million, up 83% YoY, and a business development pipeline of $10.5 billion.
Government revenue was $387 million, up nearly 2%, while commercial revenue surged by 22.6% to $125 million. The energy markets segment, including energy efficiency programs, showed robust growth of 24.8%.
ICF raised its full-year guidance for EPS and EBITDA: GAAP EPS now expected to be between $5.60 and $5.90, and Non-GAAP EPS between $6.95 and $7.25. Adjusted EBITDA is forecasted to range from $225 million to $235 million.
ICF ha riportato un solido secondo trimestre del 2024 con una forte performance degli EPS grazie a un mix di business favorevole e a una maggiore utilizzo.
I ricavi sono aumentati del 2% a 512 milioni di dollari, e, al netto delle dismissioni, sono saliti del 6%. Il reddito netto è stato di 25,6 milioni di dollari, con un aumento del GAAP EPS del 27% a 1,36 dollari. Il Non-GAAP EPS è cresciuto dell'8% a 1,69 dollari.
L'EBITDA è aumentato del 17% a 55,6 milioni di dollari, e l'EBITDA rettificato è cresciuto del 10%. L'azienda ha ottenuto contratti record per 810 milioni di dollari, con un aumento dell'83% rispetto all'anno precedente, e un portafoglio di sviluppo aziendale di 10,5 miliardi di dollari.
Il reddito governativo è stato di 387 milioni di dollari, in aumento di quasi il 2%, mentre il reddito commerciale è aumentato del 22,6% a 125 milioni di dollari. Il segmento dei mercati energetici, comprese le politiche di efficienza energetica, ha mostrato una crescita robusta del 24,8%.
ICF ha alzato le sue stime annuali per EPS ed EBITDA: il GAAP EPS è ora atteso tra 5,60 e 5,90 dollari, e il Non-GAAP EPS tra 6,95 e 7,25 dollari. L'EBITDA rettificato è previsto tra 225 milioni e 235 milioni di dollari.
ICF reportó un sólido segundo trimestre de 2024 con un fuerte rendimiento de EPS impulsado por una mezcla de negocio favorable y un mayor uso.
Los ingresos aumentaron un 2% hasta 512 millones de dólares, y ajustado por desinversiones, subieron un 6%. El ingreso neto fue de 25,6 millones de dólares, con un aumento del GAAP EPS del 27% hasta 1,36 dólares. El Non-GAAP EPS creció un 8% hasta 1,69 dólares.
El EBITDA aumentó un 17% hasta 55,6 millones de dólares, y el EBITDA ajustado creció un 10%. La empresa logró contratos récord por 810 millones de dólares, un incremento del 83% interanual, y una cartera de desarrollo empresarial de 10,5 mil millones de dólares.
Los ingresos gubernamentales fueron de 387 millones de dólares, un aumento cercano al 2%, mientras que los ingresos comerciales se dispararon un 22,6% hasta 125 millones de dólares. El segmento de mercados de energía, incluidos los programas de eficiencia energética, mostró un sólido crecimiento del 24,8%.
ICF elevó su pronóstico anual para EPS y EBITDA: se espera que el GAAP EPS esté entre 5,60 y 5,90 dólares, y el Non-GAAP EPS entre 6,95 y 7,25 dólares. Se pronostica que el EBITDA ajustado oscile entre 225 millones y 235 millones de dólares.
ICF는 2024년 2분기에서 우수한 EPS 성과를 보고하며 유리한 사업 구성이와 높은 활용도가 원인입니다.
수익은 2% 증가하여 5억 1200만 달러에 달했고, 매각 조정을 고려하면 6% 상승했습니다. 순이익은 2560만 달러였으며, GAAP EPS는 27% 증가하여 1.36 달러에 이르렀습니다. 비 GAAP EPS는 8% 증가하여 1.69 달러에 달했습니다.
EBITDA는 17% 상승하여 5560만 달러에 이르렀고, 조정 EBITDA는 10% 증가했습니다. 회사는 기록적인 계약 수주인 8억 1000만 달러를 달성했으며, 이는 전년 대비 83% 증가한 수치입니다. 사업 개발 파이프라인은 105억 달러에 달합니다.
정부 수익은 3억 8700만 달러로 거의 2% 증가했으며, 상업 수익은 22.6% 급증하여 1억 2500만 달러에 이르렀습니다. 에너지 효율성 프로그램을 포함한 에너지 시장 부문은 24.8%의 견고한 성장을 보였습니다.
ICF는 EPS 및 EBITDA에 대한 연간 가이던스를 상향 조정했습니다: GAAP EPS는 이제 5.60에서 5.90 달러 사이일 것으로 예상되고, 비 GAAP EPS는 6.95에서 7.25 달러 사이일 것으로 예상됩니다. 조정 EBITDA는 2억 2500만 달러에서 2억 3500만 달러 사이로 예상되고 있습니다.
ICF a rapporté un solide deuxième trimestre 2024 avec une forte performance des EPS due à un mélange d'activités favorable et à une utilisation accrue.
Le chiffre d'affaires a augmenté de 2% pour atteindre 512 millions de dollars, et ajusté pour les cessions, il a grimpé de 6%. Le revenu net s'est établi à 25,6 millions de dollars, avec un GAAP EPS en hausse de 27% à 1,36 dollar. Le Non-GAAP EPS a progressé de 8% pour atteindre 1,69 dollar.
L'EBITDA a augmenté de 17% pour atteindre 55,6 millions de dollars, et l'EBITDA ajusté a crû de 10%. La société a réussi à obtenir des contrats record s'élevant à 810 millions de dollars, soit une augmentation de 83% par rapport à l'année précédente, avec un carnet de commandes de 10,5 milliards de dollars.
Les revenus gouvernementaux ont atteint 387 millions de dollars, soit une augmentation de près de 2%, tandis que les revenus commerciaux ont bondi de 22,6% à 125 millions de dollars. Le segment des marchés de l'énergie, incluant les programmes d'efficacité énergétique, a affiché une croissance robuste de 24,8%.
ICF a relevé ses prévisions annuelles pour l'EPS et l'EBITDA : le GAAP EPS est désormais prévu entre 5,60 et 5,90 dollars, et le Non-GAAP EPS entre 6,95 et 7,25 dollars. L'EBITDA ajusté est estimé entre 225 millions et 235 millions de dollars.
ICF berichtete über ein solides zweites Quartal 2024 mit einer starken EPS-Performance, die durch eine günstige Geschäftsmischung und höhere Auslastung bestimmt wurde.
Der Umsatz stieg um 2% auf 512 Millionen Dollar, und nach Anpassung für Veräußerausgaben kletterte er um 6%. Der Nettoertrag betrug 25,6 Millionen Dollar, während GAAP EPS um 27% auf 1,36 Dollar anstieg. Non-GAAP EPS wuchs um 8% auf 1,69 Dollar.
EBITDA stieg um 17% auf 55,6 Millionen Dollar, und bereinigtes EBITDA nahm um 10% zu. Das Unternehmen erzielte Rekordverträge in Höhe von 810 Millionen Dollar, was einem Anstieg von 83% im Vergleich zum Vorjahr entspricht, sowie eine Geschäftsentwicklungspipeline von 10,5 Milliarden Dollar.
Die Einnahmen aus dem öffentlichen Sektor beliefen sich auf 387 Millionen Dollar, ein Anstieg von fast 2%, während die Einnahmen im kommerziellen Sektor um 22,6% auf 125 Millionen Dollar anstiegen. Das Segment der Energiemärkte, einschließlich Programme zur Energieeffizienz, zeigte ein robustes Wachstum von 24,8%.
ICF hob seine Jahresprognose für EPS und EBITDA an: GAAP EPS wird jetzt zwischen 5,60 und 5,90 Dollar erwartet, und Non-GAAP EPS zwischen 6,95 und 7,25 Dollar. Bereinigtes EBITDA wird auf einen Betrag zwischen 225 Millionen und 235 Millionen Dollar geschätzt.
- Revenue increased by 2% to $512 million.
- Net income rose to $25.6 million.
- GAAP EPS increased by 27% to $1.36.
- Non-GAAP EPS grew by 8% to $1.69.
- EBITDA rose by 17% to $55.6 million.
- Adjusted EBITDA increased by 10% to $56 million.
- Record contract awards of $810 million, an 83% YoY increase.
- Raised full-year EPS and EBITDA guidance.
- Energy markets revenue increased by 24.8%.
- Federal government revenue slightly increased by only 0.2%.
Insights
ICF's Q2 2024 results demonstrate strong financial performance and strategic positioning. Key highlights include:
- Revenue increased 2.4% year-over-year to
$512 million , with a 6.2% increase when adjusted for divestitures. - GAAP EPS rose
27% to$1.36 , while Non-GAAP EPS grew7.6% to$1.69 . - EBITDA increased
17.2% to$55.6 million and Adjusted EBITDA grew9.9% to$56.0 million . - Contract awards reached a record
$810 million , up83% year-on-year, resulting in a trailing twelve-month book-to-bill ratio of 1.40.
The company's performance was driven by favorable business mix, higher utilization and strong demand in the Energy, Environment, Infrastructure and Disaster Recovery segment. This segment grew
ICF's increased guidance for full-year 2024 reflects confidence in its business model and market positioning. The revised EPS guidance of
Investors should note the company's strategic focus on high-demand areas such as energy efficiency, grid resilience and IT modernization, which align well with current market trends and government priorities. The increasing percentage of contract awards with AI components also positions ICF favorably in the evolving technology landscape.
ICF's Q2 2024 results underscore the company's strong positioning in the energy sector, particularly in areas critical to the ongoing energy transition. The
Key trends driving this growth include:
- Energy Efficiency Programs: Continued robust demand from utility clients for core energy efficiency programs.
- Grid Resilience: Increasing focus on strengthening power infrastructure against climate-related challenges.
- Electrification: Growing initiatives to shift various sectors towards electric power.
- Decarbonization: Ongoing efforts to reduce carbon emissions across industries.
- Flexible Load Management: Rising importance of managing power demand, especially with increasing data center loads.
The significant contract wins with utilities across the U.S. for energy efficiency program implementation demonstrate ICF's strong market position. These programs are important as utilities strive to meet regulatory requirements and consumer demands for more sustainable energy use.
The company's expertise in integrating AI into energy solutions is a key differentiator. As the energy sector becomes increasingly data-driven, ICF's ability to leverage AI for improved efficiency and decision-making will likely be a major growth driver.
Looking ahead, ICF is well-positioned to capitalize on the substantial investments flowing into the energy sector, driven by federal initiatives like the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These policies are accelerating the transition to clean energy and creating significant opportunities in areas where ICF has demonstrated expertise.
ICF's Q2 2024 results reveal a nuanced picture in its government contracting business. While overall government revenue grew modestly at
- Federal Government: Revenue remained relatively flat at
$273.5 million , with a slight0.2% increase. However, this was impacted by a$9.1 million decrease in subcontractor and other direct costs, suggesting improved profitability on federal work. - State and Local Government: Revenue increased by
4.7% to$84.8 million , indicating growing opportunities at this level. - International Government: Showed strong growth of
9.5% , reaching$28.7 million .
The company's success in securing major contract awards is particularly impressive. The
The
ICF's book-to-bill ratio of 1.40 for the trailing twelve months indicates strong future revenue potential from its government contracts. The company's ability to win new business, accounting for approximately
The increasing incorporation of AI components in contract awards positions ICF well for future government work, as agencies increasingly seek to leverage advanced technologies for improved efficiency and effectiveness.
-- Favorable Business Mix and Higher Utilization Drove Strong EPS Performance --
-- Record Business Development Pipeline of
-- Increasing Full Year EPS and EBITDA Guidance Primarily to Reflect Mix Shift --
Second Quarter Highlights:
- Revenue Increased
2% to$512 Million 6% Excluding Divestitures - Net Income Was
$25.6 Million $1.36 27% - Non-GAAP EPS1 Was
$1.69 8% - EBITDA1 Was
$55.6 Million 17% ; Adjusted EBITDA1 Was$56.0 Million 10% - Contract Awards Were a Record
$810 Million 83% Year-on-Year for a TTM Book-to-Bill Ratio of 1.40
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
"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
"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
Second Quarter 2024 Results
Second quarter 2024 total revenue was
Non-GAAP EPS increased
Backlog and New Business
Total backlog was
Government Revenue Second Quarter 2024 Highlights
Revenue from government clients was
U.S. federal government revenue was$273.5 million 0.2% compared to the$273.1 million $9.1 million 53.4% of total revenue, compared to54.6% of total revenue in the second quarter of 2023.U.S. state and local government revenue increased4.7% to$84.8 million $81.1 million 16.6% of total revenue, up from16.2% from the second quarter of 2023.- International government revenue was
$28.7 million 9.5% from the$26.2 million 5.6% of total revenue, compared to5.2% 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 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
IT Modernization
- A new subcontract with a value of
$87.7 million - A contract extension with a value of
$29.8 million U.S. federal agency to continue to provide digital modernization services. - A new contract with a value of
$16.8 million 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 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 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 - A recompete master services agreement with a ceiling of
$11.7 million Western U.S. state transportation department to provide on-call environmental services. - A contract modification with a value of
$7.6 million Northwest U.S. public utility to support its public electric vehicle charging program.
Commercial Revenue Second Quarter 2024 Highlights
Commercial revenue was
- Energy markets revenue, which includes energy efficiency programs, increased
24.8% and represented86.6% of commercial revenue. - Commercial revenue accounted for
24.4% of total revenue compared to23.9% 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
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
"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
"A growing backlog and our record business development pipeline of
"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 |
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) | ||||||||
$ 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 | ||||||||
(4) Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted EPS were calculated using numbers as reported in | ||||||||
(5) Represents impairment of an intangible asset associated with the exit of our commercial marketing business in the | ||||||||
(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 | ||||||||
(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 | ||||||||
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 | — | — | ||
Common stock, par value | 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 | |||||
53 % | 55 % | 54 % | 55 % | |||||
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. |
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SOURCE ICF
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