8-K
ICF International, Inc. (ICFI)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): May 02, 2024 |
|---|
ICF International, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-33045 | 22-3661438 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 1902 Reston Metro Plaza | ||
| Reston, Virginia | 20190 | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 703 934-3000 | ||
| --- | ||
| Not Applicable | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | ICFI | The Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 2, 2024, ICF International, Inc. (the “Company”) announced its financial results for the first quarter ended March 31, 2024. The press release containing this announcement is attached hereto as Exhibit 99.1.
The information contained in this report, including Exhibit 99.1, is considered to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. The information in this report shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The release contains forward-looking statements regarding the Company and includes a cautionary statement identifying important factors that could cause actual result to differ materially from those anticipated.
Item 8.01 Other Events
On May 2, 2024, the Company's Board of Directors declared a quarterly dividend in an amount equal to $0.14 per share. This quarterly cash dividend will be paid on July 12, 2024, to stockholders of record as of the close of business on June 7, 2024.
The cash dividend policy and the payment of future cash dividends under that policy will be made at the discretion of the Company's Board of Directors and will depend on earnings, operating and financial conditions, capital requirements, and other factors deemed relevant by the Board, including the applicable requirements of the Delaware General Corporation Law and the best interests of the Company’s stockholders.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Press Release dated May 2, 2024 |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Exhibit Index
| Exhibit<br><br>Number | Description |
|---|---|
| 99.1 | Press Release dated May 2, 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ICF International, Inc. | ||
|---|---|---|
| Date: May 2, 2024 | By: | /s/ Barry Broadus |
| Barry Broadus | ||
| Chief Financial Officer |
EX-99.1
Exhibit 99.1
NEWS RELEASE
ICF Reports First Quarter 2024 Results
-- Record First Quarter Results Represent a Strong Start to 2024 --
-- Re-affirms Full Year Guidance --
First Quarter Highlights:
• Revenue Increased 2% to $494 Million, Up 9% Excluding Divestitures
• Net Income Was $27 Million and GAAP EPS1 Was $1.44, Up 66% Inclusive of Certain Quarter-Specific Benefits
• Non-GAAP EPS1 Was $1.77, Up 25%
• EBITDA1Was $56.4 Million, Up 22%; Adjusted EBITDA1 Was $55.2 Million, Up 8%
• Contract Awards Were $495 Million, Up 21% Year-on-Year for a TTM Book-to-Bill Ratio of 1.23
RESTON, Va.— May 2, 2024-- ICF (NASDAQ: ICFI), a global consulting and technology services provider, reported results for the first quarter ended March 31, 2024.
Commenting on the results, John Wasson, chair and chief executive officer, said, “This was a record first quarter for ICF. Revenues increased 2% year-on-year, however, adjusting for the divestiture of our commercial marketing business lines during 2023, first quarter revenue increased 9% year-over-year. This strong performance was led by robust growth in revenues from commercial energy clients and supported by solid revenue growth from government clients.
“ICF performed exceptionally well in our Energy, Environment, Infrastructure and Disaster Recovery client market, with revenues up 20% year-over-year, representing 45% of ICF’s total first quarter revenues. In this market, we combine our deep domain expertise in energy efficiency, decarbonization, electrification, environmental and climate impacts, and disaster recovery and mitigation to provide comprehensive services and solutions to over 75 utility clients, as well as developers of renewable energy sources, energy companies, and federal, state and local and international government clients.
“The substantial increase in first quarter profitability was attributable to both recurring and quarter-specific factors. Revenue mix together with higher utilization, lower facility costs and our increased scale continued to drive improved margin performance. Additionally, margins benefited from the ramp-up of several recently awarded energy efficiency contracts, which are more profitable during the startup phase.
“This was another strong quarter of contract awards, which increased 21% from the year-ago quarter, maintaining our trailing twelve-month book-to-bill ratio of 1.2. Approximately 70% of our over $2.4 billion in contract awards over the last 12 months represented new business, demonstrating ICF’s excellent positioning in growth areas within both our government and commercial client sets. Our business development pipeline remained at $9.7 billion at the end of the quarter, providing further confidence in our ability to sustain our high single-digit organic growth going forward.”
First Quarter 2024 Results
First quarter 2024 total revenue was $494.4 million, a 2.3% increase from the $483.3 million reported in the first quarter of 2023, and up 8.7% from last year’s first quarter revenues adjusted for the divestiture of our commercial marketing business lines. Subcontractor and other direct costs were 24.4% of total revenues compared to 27.3% in last year’s first quarter. Operating income was $40.9 million, up 30.2% from $31.5 million, and operating margin on total revenue expanded to 8.3% from 6.5%. Net income totaled $27.3 million, and GAAP EPS was $1.44 per share, inclusive of a net benefit of $0.5 million, or $0.02 per share of tax-effected special charges. This compares to net income and GAAP EPS of $16.4 million, and $0.87, respectively, reported in the first quarter of 2023, which included $4.6 million, or $0.18 per share of tax-effected special charges. In the 2024 first quarter, the company’s tax rate was 20.4% compared to 23.5% in the 2023 first quarter.
Non-GAAP EPS increased 24.6% to $1.77 per share, from the $1.42 per share reported in the comparable period in 2023. EBITDA was $56.4 million, 21.6% above the $46.4 million reported for the year-ago period. Adjusted EBITDA increased 8.2% to $55.2 million from $51.0 million for the comparable period in 2023.
Backlog and New Business
Total backlog was $3.6 billion at the end of the first quarter of 2024. Funded backlog was $1.8 billion, or approximately 50% of the total backlog. The total value of contracts awarded in the 2024 first quarter was $495 million, and trailing twelve-month contract awards totaled $2.4 billion for a book-to-bill ratio of 1.23.
Government Revenue First Quarter 2024 Highlights
Revenue from government clients was $376.4 million, up 3.5% year-over-year.
• U.S. federal government revenue was $274.2 million, an increase of 2.4% compared to the $267.7 million reported in the first quarter of 2023 and was impacted by a year-over-year decrease in subcontractor and other direct costs of approximately $5 million in the quarter. Federal government revenue accounted for 55.5% of total revenue, similar to 55.4% of total revenue in the first quarter of 2023.
• U.S. state and local government revenue increased 2.2% to $76.9 million, from $75.2 million in the year-ago quarter. State and local government clients represented 15.6% of total revenue, unchanged from the first quarter of 2023.
• International government revenue was $25.3 million, up 22.2% from the $20.7 million reported in the year-ago quarter. International government revenue represented 5.1% of total revenue, compared to 4.3% in the first quarter of 2023.
Key Government Contracts Awarded in the First Quarter 2024
Notable government contract awards won in the first quarter of 2024 included:
Health and Social Programs
• A single-award indefinite delivery, indefinite quantity recompete contract with a ceiling of $75.0 million with the U.S. Environmental Protection Agency’s Office of Research and Development to provide human health and environmental risk assessments.
• A subcontract modification with a value of $6.6 million to continue to provide medical modeling simulation and training support to a branch of the U.S. Armed Forces.
IT Modernization
• One new task order and one task order modification with a combined value of $17.0 million with a U.S. federal agency to continue to provide digital modernization services.
• A new subcontract with a value of $8.1 million to provide enhancement, operations and maintenance services to further increase healthcare data sharing for the U.S. Centers for Medicare and Medicaid Services (CMS).
• Multiple contract modifications and one new contract with a combined value of $21.7 million with CMS to continue to provide digital modernization services.
Disaster Management and Mitigation
• A contract modification with a value of $8.9 million with a Southern U.S. state to continue to provide Federal Emergency Management Agency Public Assistance grants management services.
Climate, Energy and Environment
• A recompete master framework contract with a ceiling of more than $20 million with a directorate general of the European Commission to provide consulting services related to climate policy.
Commercial Revenue First Quarter 2024 Highlights
Commercial revenue was $118.1 million, compared to $119.6 million reported in the first quarter of 2023; up 29.3% compared to revenues of $91.3 million excluding divestitures in 2023.
• Energy markets revenue, which includes energy efficiency programs, increased 32.3% and represented 87.3% of commercial revenue.
Key Commercial Contracts Awarded in the First Quarter of 2024
Notable commercial awards won in the first quarter of 2024 included:
Energy Markets
• A new contract with a Western U.S. utility to implement a first-of-its kind statewide wildfire and natural disaster resiliency rebuild program.
• One recompete contract and one new contract with a Mid-Atlantic U.S. utility to provide energy efficiency program implementation services for its new and existing residential and commercial and industrial (C&I) programs.
• One recompete contract and one new contract with a Mid-Atlantic U.S. utility to provide energy efficiency program implementation services for its new and existing residential and C&I programs.
• A new subcontract to support the implementation of a beneficial electrification plan for a Midwestern U.S. utility.
• A contract modification with a Mid-Atlantic U.S. utility to continue to provide energy efficiency program marketing services.
• A subcontract extension to continue to support a residential building envelope program for a Midwestern U.S. utility.
• A recompete contract with a Mid-Atlantic U.S. utility to continue to support its portfolio of existing energy efficiency programs.
Other Commercial
• A new contract with a value of $13.0 million with a U.S. commercial client to implement an inspections solution to modernize its inspection process and establish an enterprise data solution to enable data insights and improve data management.
Dividend Declaration
On May 2, 2024, ICF declared a quarterly cash dividend of $0.14 per share, payable on July 12, 2024, to shareholders of record on June 7, 2024.
Summary and Outlook
“ICF’s robust first quarter performance supports our full year guidance and sets the stage for another year of substantial growth in 2024. Our energy efficiency and utility consulting, together with ICF’s climate and infrastructure services continue to benefit from strong demand from commercial and government clients; our disaster management work is moving forward with new contract wins; and our key areas of focus in the federal government arena, namely public health and IT modernization/digital transformation provide us with significant long-term growth opportunities.
“Based on our strong backlog and current visibility, we are pleased to reaffirm our guidance for 2024. We expect 2024 organic revenues from continuing operations to range from $2.03 billion to $2.10 billion, representing year-on-year growth of 5.2% at the midpoint when compared to reported 2023 and 8.5% growth at the midpoint on continuing operations. EBITDA is expected to range from $220 million to $230 million, reflecting year-on-year growth of 14.2% at the midpoint. Our guidance range for GAAP EPS is $5.25 to $5.55, excluding special charges, and for Non-GAAP EPS is $6.60 to $6.90. Assuming similar margins to the rest of the business, the company’s commercial marketing business lines are estimated to have contributed $0.20 of Non-GAAP EPS in 2023, which will not recur in 2024. We expect full year 2024 operating cash flow of approximately $155 million.
“We are proud that our work involves helping clients address many of the most challenging issues of the day. Our ability to attract and retain professionals who are committed to excellent execution and making a positive impact on society has been and remains critical to our success,” 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 | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| (in thousands, except per share amounts) | 2024 | 2023 | ||||
| Revenue | $ | 494,436 | $ | 483,282 | ||
| Direct costs | 310,533 | 312,565 | ||||
| Operating costs and expenses: | ||||||
| Indirect and selling expenses | 129,094 | 123,733 | ||||
| Depreciation and amortization | 5,574 | 6,309 | ||||
| Amortization of intangible assets | 8,291 | 9,224 | ||||
| Total operating costs and expenses | 142,959 | 139,266 | ||||
| Operating income | 40,944 | 31,451 | ||||
| Interest, net | (8,238 | ) | (9,457 | ) | ||
| Other income (expense) | 1,630 | (558 | ) | |||
| Income before income taxes | 34,336 | 21,436 | ||||
| Provision for income taxes | 7,019 | 5,038 | ||||
| Net income | $ | 27,317 | $ | 16,398 | ||
| Earnings per Share: | ||||||
| Basic | $ | 1.46 | $ | 0.87 | ||
| Diluted | $ | 1.44 | $ | 0.87 | ||
| Weighted-average common shares outstanding: | ||||||
| Basic | 18,757 | 18,779 | ||||
| Diluted | 18,946 | 18,949 | ||||
| Cash dividends declared per common share | $ | 0.14 | $ | 0.14 | ||
| Other comprehensive income (loss), net of tax | 684 | (1,334 | ) | |||
| Comprehensive income, net of tax | $ | 28,001 | $ | 15,064 |
ICF International, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures(2)
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| (in thousands, except per share amounts) | 2024 | 2023 | ||||
| Reconciliation of Revenue, Adjusted for Impact of Exited Business | ||||||
| Revenue | $ | 494,436 | $ | 483,282 | ||
| Less: Revenue from exited business (3) | — | (28,317 | ) | |||
| Total Revenue, Adjusted for Impact of Exited Business | $ | 494,436 | $ | 454,965 | ||
| Reconciliation of EBITDA and Adjusted EBITDA (4) | ||||||
| Net income | $ | 27,317 | $ | 16,398 | ||
| Interest, net | 8,238 | 9,457 | ||||
| Provision for income taxes | 7,019 | 5,038 | ||||
| Depreciation and amortization | 13,865 | 15,533 | ||||
| EBITDA | 56,439 | 46,426 | ||||
| Impairment of long-lived assets (5) | — | 894 | ||||
| Acquisition and divestiture-related expenses (6) | 66 | 803 | ||||
| Severance and other costs related to staff realignment (7) | 365 | 2,495 | ||||
| Charges for facility consolidations and office closures (8) | — | 359 | ||||
| Pre-tax gain from divestiture of a business (9) | (1,715 | ) | — | |||
| Total Adjustments | (1,284 | ) | 4,551 | |||
| Adjusted EBITDA | $ | 55,155 | $ | 50,977 | ||
| Net Income Margin Percent on Revenue (10) | 5.5 | % | 3.4 | % | ||
| EBITDA Margin Percent on Revenue (11) | 11.4 | % | 9.6 | % | ||
| Adjusted EBITDA Margin Percent on Revenue (11) | 11.2 | % | 10.5 | % | ||
| Reconciliation of Non-GAAP Diluted EPS (4) | ||||||
| U.S. GAAP Diluted EPS | $ | 1.44 | $ | 0.87 | ||
| Impairment of long-lived assets | — | 0.04 | ||||
| Acquisition and divestiture-related expenses | — | 0.04 | ||||
| Severance and other costs related to staff realignment | 0.02 | 0.13 | ||||
| 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 | ||||
| Income tax effects of the adjustments (13) | (0.08 | ) | (0.17 | ) | ||
| Non-GAAP Diluted EPS | $ | 1.77 | $ | 1.42 | ||
| (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 discrete items, if any, of 20.4% and 23.5% for the three months ended March 31, 2024 and 2023, respectively. |
ICF International, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
| (in thousands, except share and per share amounts) | December 31, 2023 | ||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current Assets: | |||||
| Cash and cash equivalents | 3,683 | $ | 6,361 | ||
| Restricted cash | 916 | 3,088 | |||
| Contract receivables, net | 202,246 | 205,484 | |||
| Contract assets | 230,412 | 201,832 | |||
| Prepaid expenses and other assets | 28,401 | 28,055 | |||
| Income tax receivable | — | 2,337 | |||
| Total Current Assets | 465,658 | 447,157 | |||
| Property and Equipment, net | 74,296 | 75,948 | |||
| Other Assets: | |||||
| Goodwill | 1,219,031 | 1,219,476 | |||
| Other intangible assets, net | 86,613 | 94,904 | |||
| Operating lease - right-of-use assets | 128,356 | 132,807 | |||
| Other assets | 43,740 | 41,480 | |||
| Total Assets | 2,017,694 | $ | 2,011,772 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current Liabilities: | |||||
| Current portion of long-term debt | 26,000 | $ | 26,000 | ||
| Accounts payable | 119,285 | 134,503 | |||
| Contract liabilities | 22,099 | 21,997 | |||
| Operating lease liabilities | 20,889 | 20,409 | |||
| Finance lease liabilities | 2,545 | 2,522 | |||
| Accrued salaries and benefits | 70,176 | 88,021 | |||
| Accrued subcontractors and other direct costs | 48,707 | 45,645 | |||
| Accrued expenses and other current liabilities | 82,966 | 79,129 | |||
| Total Current Liabilities | 392,667 | 418,226 | |||
| Long-term Liabilities: | |||||
| Long-term debt | 448,748 | 404,407 | |||
| Operating lease liabilities - non-current | 170,575 | 175,460 | |||
| Finance lease liabilities - non-current | 13,227 | 13,874 | |||
| Deferred income taxes | 21,975 | 26,175 | |||
| Other long-term liabilities | 54,353 | 56,045 | |||
| Total Liabilities | 1,101,545 | 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; 24,110,071 and 23,982,132 shares issued at March 31, 2024 and December 31, 2023, respectively; 18,754,762 and 18,845,521 shares outstanding at March 31, 2024 and December 31, 2023, respectively | 24 | 24 | |||
| Additional paid-in capital | 425,160 | 421,502 | |||
| Retained earnings | 799,796 | 775,099 | |||
| Treasury stock, 5,355,309 and 5,136,611 shares at March 31, 2024 and December 31, 2023 respectively | (297,630 | ) | (267,155 | ) | |
| Accumulated other comprehensive loss | (11,201 | ) | (11,885 | ) | |
| Total Stockholders’ Equity | 916,149 | 917,585 | |||
| Total Liabilities and Stockholders’ Equity | 2,017,694 | $ | 2,011,772 |
All values are in US Dollars.
ICF International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| (in thousands) | 2024 | 2023 | ||||
| Cash Flows from Operating Activities | ||||||
| Net income | $ | 27,317 | $ | 16,398 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Provision for credit losses | 1,347 | 567 | ||||
| Deferred income taxes and unrecognized income tax benefits | (4,786 | ) | 2,187 | |||
| Non-cash equity compensation | 3,551 | 3,750 | ||||
| Depreciation and amortization | 13,865 | 15,533 | ||||
| Gain on divestiture of a business | (1,715 | ) | — | |||
| Other operating adjustments, net | 46 | 393 | ||||
| Changes in operating assets and liabilities, net of the effects of acquisitions: | ||||||
| Net contract assets and liabilities | (29,024 | ) | (18,716 | ) | ||
| Contract receivables | 1,604 | 10,929 | ||||
| Prepaid expenses and other assets | (192 | ) | 15,353 | |||
| Operating lease assets and liabilities, net | 523 | 1,016 | ||||
| Accounts payable | (15,119 | ) | (26,083 | ) | ||
| Accrued salaries and benefits | (17,775 | ) | (24,678 | ) | ||
| Accrued subcontractors and other direct costs | 3,303 | (2,613 | ) | |||
| Accrued expenses and other current liabilities | (3,988 | ) | (14,688 | ) | ||
| Income tax receivable and payable | 11,375 | 3,192 | ||||
| Other liabilities | (333 | ) | 629 | |||
| Net Cash Used in by Operating Activities | (10,001 | ) | (16,831 | ) | ||
| Cash Flows from Investing Activities | ||||||
| Payments for purchase of property and equipment and capitalized software | (5,226 | ) | (6,441 | ) | ||
| Payments for business acquisitions, net of cash acquired | — | (459 | ) | |||
| Proceeds from divestiture of a business | 1,715 | — | ||||
| Net Cash Used in Investing Activities | (3,511 | ) | (6,900 | ) | ||
| Cash Flows from Financing Activities | ||||||
| Advances from working capital facilities | 355,877 | 334,995 | ||||
| Payments on working capital facilities | (311,813 | ) | (293,640 | ) | ||
| Proceeds from other short-term borrowings | 24,356 | 2,483 | ||||
| Repayments of other short-term borrowings | (23,950 | ) | — | |||
| Receipt of restricted contract funds | 1,261 | 2,916 | ||||
| Payment of restricted contract funds | (3,391 | ) | (1,131 | ) | ||
| Dividends paid | (2,636 | ) | (2,641 | ) | ||
| Net payments for stockholder issuances and buybacks | (30,355 | ) | (22,815 | ) | ||
| Other financing, net | (516 | ) | (479 | ) | ||
| Net Cash Provided by Financing Activities | 8,833 | 19,688 | ||||
| Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | (171 | ) | 11 | |||
| Decrease in Cash, Cash Equivalents, and Restricted Cash | (4,850 | ) | (4,032 | ) | ||
| Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 9,449 | 12,968 | ||||
| Cash, Cash Equivalents, and Restricted Cash, End of Period | $ | 4,599 | $ | 8,936 | ||
| Supplemental Disclosure of Cash Flow Information | ||||||
| Cash paid during the period for: | ||||||
| Interest | $ | 7,740 | $ | 5,924 | ||
| Income taxes | $ | 1,133 | $ | 914 |
ICF International, Inc. and Subsidiaries
Supplemental Schedule (14)
| Revenue by client markets | Three Months Ended | |||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| 2024 | 2023 | |||||
| Energy, environment, infrastructure, and disaster recovery | 45 | % | 39 | % | ||
| Health and social programs | 39 | % | 42 | % | ||
| Security and other civilian & commercial | 16 | % | 19 | % | ||
| Total | 100 | % | 100 | % | ||
| Revenue by client type | Three Months Ended | |||||
| March 31, | ||||||
| 2024 | 2023 | |||||
| U.S. federal government | 55 | % | 55 | % | ||
| U.S. state and local government | 16 | % | 16 | % | ||
| International government | 5 | % | 4 | % | ||
| Government | 76 | % | 75 | % | ||
| Commercial | 24 | % | 25 | % | ||
| Total | 100 | % | 100 | % | ||
| Revenue by contract mix | Three Months Ended | |||||
| March 31, | ||||||
| 2024 | 2023 | |||||
| Time-and-materials | 42 | % | 42 | % | ||
| Fixed-price | 45 | % | 45 | % | ||
| Cost-based | 13 | % | 13 | % | ||
| Total | 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.