―Fourth Quarter Results Led by Strong Demand
From Commercial Energy Clients―
―Full Year Profitability Gains Driven By
Favorable Mix, Higher Utilization and Lower Interest
Expense―
―Recent Acquisition Expands ICF's Capabilities
to Serve Utility and State & Local Government Clients―
―Repurchased 395,000 Shares From Mid-November 2024 To-date―
―Provides Framework for Full Year 2025 and
First Quarter 2025 Guidance―
Fourth Quarter Highlights:
- Revenue Increased 4% to $496
Million
- Net Income Was $24.6 Million,
Up 11%; GAAP EPS Was $1.30, Up 12%,
Inclusive of $0.23 Per Share in
Tax-Effected Special Charges
- Non-GAAP EPS1 Increased 11% to $1.87
- EBITDA1 Was $50.8
Million; Adjusted EBITDA1 Was $56.3 Million
- Contract Awards Were $504
Million for a Quarterly Book-to-Bill Ratio of 1.02
Full Year Highlights:
- Revenue Increased 3% to $2.0
Billion; Up 6% Excluding Divestitures
- Net Income Was $110 Million,
Up 33%; Diluted EPS Was $5.82, Up
34%, Inclusive of $0.24 Per Share in
Tax-Effected Special Charges
- Non-GAAP EPS Was $7.45, Up
15%
- EBITDA Was $221.1 Million, Up
12%; Adjusted EBITDA Was $226.0
Million, Up 6%
- Contract Awards Were $2.5
Billion for a Book-to-Bill Ratio of 1.24
- Operating Cash Flow Was $172
Million
RESTON,
Va., Feb. 27, 2025 /PRNewswire/ -- ICF (NASDAQ:
ICFI), a global consulting and technology services provider,
reported results for the fourth quarter and full year ended
December 31, 2024.
Commenting on the results, John
Wasson, chair and chief executive officer, said, "This was
another strong year for ICF in which we achieved solid revenue
growth, delivered strong profitability, and reported
forward-looking metrics that point to continued growth in our
commercial, state and local and international businesses. Our
broad-based energy advisory work and program implementation for
commercial clients was an important contributor to fourth quarter
and full year revenue growth, reflecting robust demand for our
energy efficiency work, grid resilience solutions, flexible load
management plans and electrification programs. Revenues from
commercial, state and local and international government clients,
together with our IT modernization/digital transformation work for
federal government clients, accounted for approximately 75% of
ICF's 2024 revenues and remain areas of continued investment.
"The increasing contribution from our higher margin commercial
work, together with high utilization across ICF and scale benefits,
were key drivers of adjusted EBITDA growth in 2024. Adjusted
EBITDA margin on total revenues expanded by 30 basis points
year-on-year to 11.2%, and lower interest expense drove a 33%
increase in net income for the year. Operating cash flow generation
was another financial highlight of 2024, surpassing our guidance to
reach $172 million.
"We were pleased to announce in early January 2025 the acquisition of Applied Energy
Group (AEG) that was completed on December
31, 2024. AEG is a leading energy technology and advisory
services company with over 100 utility management and demand-side
energy experts. AEG brings a highly trusted energy technology
platform that is cloud-based and offers real-time business
intelligence to electric and gas utilities, state and local
governments, and state energy offices nationwide and provides
best-in-class advisory services. AEG generated approximately
$30 million in annual revenue in 2024
at margins comparable to our commercial energy business and its
2025 revenues are expected to increase at a mid-teens rate. The
transaction is anticipated to be immediately accretive to ICF's
Non-GAAP EPS."
Fourth Quarter 2024 Results
Fourth quarter 2024 total revenue was $496.3 million, a 3.8% increase from the
$478.4 million reported in the fourth
quarter of 2023. Subcontractor and other direct costs were 25.4% of
total revenues compared to 27.0% in last year's fourth quarter.
Operating income was $36.5 million
compared to $36.9 million last
year, and operating margin on total revenue was 7.3%, compared to
7.7% in the fourth quarter of 2023. Net income totaled $24.6 million, representing a 10.8% year-on-year
increase over the $22.2 million
reported in the fourth quarter of 2023. Diluted EPS was
$1.30 per share, up 12.1% from the
$1.16 reported in the fourth quarter
of 2023, which included $5.5 million,
or $0.23 per share, of tax-effected
special charges primarily related to M&A expenses and facility
reductions. The company's effective tax rate was 20.9% in the 2024
fourth quarter compared to 25.6% in the 2023 fourth quarter.
Non-GAAP EPS increased 11.3% to $1.87 per share, from $1.68 per share reported in the comparable period
in 2023. EBITDA was $50.8 million,
compared to $53.9 million reported in
the year-ago period. Adjusted EBITDA amounted to $56.3 million, compared to the $57.0 million reported for the comparable period
in 2023.
Full Year 2024 Results
2024 total revenue was $2.02 billion, an increase of 2.9%
from $1.96 billion reported in the previous year and 6.1%
higher when adjusting for the 2023 divestitures. Subcontractor and
other direct costs were 25.1% of total revenues compared to 27.2%
in 2023. Operating income for the full year 2024 was $165.8 million compared to $132.3 million last year, and operating margin on
total revenue was 8.2% compared to 6.7% for the full year 2023.
Full year 2024 net income was $110.2 million,
or $5.82 per diluted share, inclusive
of $5.7 million, or $0.24 per share of
tax-effected special charges primarily related to M&A expenses
and facility reductions. Net income and Diluted EPS increased 33.4%
and 33.8%, respectively, over net income of $82.6 million, or
$4.35 per diluted share reported in
2023. The company's effective tax rate was 20.2% for 2024
compared to 14.4% in 2023.
Non-GAAP EPS was $7.45 per share, up 14.6%
from $6.50 per share. EBITDA increased 12.3%
to $221.1 million, compared to $197.0
million reported in 2023. Adjusted EBITDA was $226.0
million, representing a 6.0% increase over $213.2
million in 2023.
Operating cash flow was $171.5
million in 2024, an increase of 12.6% from $152.4 million in the prior year.
Backlog and New Business
Total backlog was $3.8 billion at
the end of the fourth quarter of 2024. Funded backlog was
$1.9 billion, or approximately 50% of
the total backlog. The total value of contracts awarded in the 2024
fourth quarter was $504 million for a
quarterly book-to-bill ratio of 1.02, and trailing twelve-month
contract awards totaled $2.51
billion, up 7% year-on-year for a book-to-bill ratio of
1.24.
Government Revenue Fourth Quarter 2024 Highlights
Revenue from government clients was $363.1 million, down 1.6%
year-over-year.
- U.S. federal government revenue was $257.7 million, a decrease of 2.4% compared to
the $263.9 million reported in the
fourth quarter of 2023 and was impacted by a year-over-year decline
in subcontractor and other direct costs estimated at $14 million in the quarter. Federal government
revenue accounted for 51.9% of total revenue, compared to 55.2% of
total revenue in the fourth quarter of 2023.
- U.S. state and local government revenue was $75.5 million, slightly below the $76.3 million reported in the year-ago quarter.
State and local government clients represented 15.2% of total
revenue, down from 15.9% in the fourth quarter of 2023.
- International government revenue was $30.0 million, up 4.2% from the $28.8 million reported in the year-ago quarter.
International government revenue represented 6.0% of total revenue,
unchanged from the fourth quarter of 2023.
Key Government Contracts Awarded in the Fourth Quarter
2024
Notable government contract awards won in the fourth quarter of
2024 included:
IT Modernization
- A new subcontract and task order with a value of $9.7 million with a department of the U.S.
federal government to provide digital modernization
services.
- A recompete task order with a value of $9.6 million with a department of the U.S.
federal government to provide digital modernization services.
- A contract extension with a value of $8.0 million with a department of the U.S.
federal government to continue to provide digital modernization
services for a comprehensive system of care to meet the needs of
military families.
Energy and Environment
- A new blanket purchase agreement with a ceiling of $30.0 million with a U.S. federal agency to
provide technical support for economic research and analysis.
- A contract modification with a value of $10.4 million with a large U.S. municipality to
continue to provide decarbonization technical services in support
of enhanced building standards.
- A recompete master services agreement with a ceiling of
$11.0 million with a Western U.S.
state transportation agency to provide environmental support
services.
- A contract modification with a value of $6.2 million with a large U.S. state to continue
to update a water quality control plan for a large watershed.
Non-U.S. Government
- A new multiple-award framework contract with a ceiling of
$88.0 million with a directorate
general (DG) of the European Commission (EC) to provide thematic
communication services.
- A new subcontract with a ceiling of $22.0 million to provide thematic communication
services to an EC DG.
- A multiple-award recompete framework contract with a ceiling of
$15.0 million with an EC DG to
provide impact assessments, evaluations and related studies in the
area of communications.
- A recompete subcontract with a ceiling of $35.2 million to provide digital communication
services and social media support to an EC DG.
- A recompete framework contract with a ceiling of $7.7 million with an EC DG to provide technical
and logistical support related to migration.
Disaster Management and Mitigation
- Several contracts with towns and counties in North and
South Carolina to provide
comprehensive disaster assessments and recovery support in the
aftermath of Hurricane Helene.
Health and Social Programs
- A new subcontract with a value of $4.5
million to provide training and technical assistance
services for a department of the U.S. federal government.
- A contract modification with a value of $4.5 million to provide training and technical
assistance services to a department of the U.S. federal
government.
- A recompete subcontract with a value of $3.8 million to provide evaluation technical
assistance services for a department of the U.S. federal
government.
- A recompete subcontract with a value of $3.8 million to support data management efforts
related to health studies for a U.S. federal government
agency.
Commercial Revenue Fourth Quarter 2024 Highlights
Commercial revenue was $133.2
million, up 21.8% compared to $109.4
million reported in the fourth quarter of 2023.
- Commercial revenue accounted for 26.8% of total revenue up from
22.9% of total revenue in the 2023 fourth quarter.
- Energy markets revenue, which includes energy efficiency
programs, increased 22.6% and represented 88.2% of commercial
revenue.
Key Commercial Contracts Awarded in the Fourth Quarter of
2024
Notable commercial awards won in the fourth quarter of 2024
included:
- Several recompete contracts and contract modifications with a
large Midwestern U.S. electric and natural gas utility to deliver
residential and commercial energy efficiency programs.
- A recompete contract and two new contracts with a Mid-Atlantic
U.S. utility to serve as agency of record for the utility's energy
efficiency programs and to develop and execute a brand
campaign.
- A contract modification with a Mid-Atlantic utility to continue
to deliver implementation services for its residential energy
efficiency portfolio.
- A recompete contract with a Southeastern U.S. utility to
deliver residential, commercial and industrial energy efficiency
programs.
- Several new contracts with a Western U.S. utility to provide a
variety of and planning and permitting-related services.
- One new contract and one contract modification with a
Midwestern U.S. utility to deliver energy efficiency programs.
Dividend Declaration
On February 27, 2025, ICF declared
a quarterly cash dividend of $0.14 per share, payable on April 14,
2025, to shareholders of record on March 28,
2025.
Summary and Outlook
"2024 was a year of growth and substantial profitability for
ICF. Our results continued to benefit from our diversified business
model that enables us to be agile in shifting emphasis and
resources to those areas that are expected to have the greatest
growth potential. This agility will be essential in 2025 as we
navigate changes in federal government spending priorities, and our
strong financial position gives us the flexibility to take
advantage of opportunities as they arise.
"Looking ahead, we expect ICF's 2025 total revenues, GAAP EPS
and Non-GAAP EPS to range from flat to down 10% from 2024 levels,
with a 10% decline representing the maximum downside risk we
foresee from the loss of business primarily from federal government
clients during this transition year. Underpinning this expectation
is our projection that ICF's revenues from commercial energy, state
and local and international government clients will grow at least
15% in the aggregate, and that revenues from our federal government
clients will be challenged in 2025 by potential funding
curtailments and a slower pace of new RFPs. Within this
environment, we plan to manage expenditures to maintain similar
adjusted EBITDA margins to those of 2024. This framework does not
contemplate an extensive government shutdown this year, nor a
prolonged period of pauses in funding modifications to existing
contracts or new procurements. Operating cash flow in 2025 is
projected to be approximately $150
million.
"First quarter 2025 revenues are expected to range from
$480 million to $500 million, with GAAP EPS anticipated between
$1.35 and $1.45 and Non-GAAP EPS within the range of
$1.70 and $1.80, similar to results in the first quarter of
2024.
"ICF has a proven track record of effectively managing through
dynamic business environments by conservatively assessing
challenges and remaining agile to capture opportunities. From
mid-November 2024 to-date, we
repurchased 395,000 shares, demonstrating our confidence in ICF's
long-term outlook and our commitment to delivering value to
shareholders. Our ability to navigate volatility is underpinned by
the dedication of our professional staff, who are committed to
providing the highest quality services to our clients. We
appreciate the contributions of ICF's employees to our success
to-date and count on their continued support in 2025 and beyond,"
Mr. Wasson concluded.
1 Non-GAAP EPS, EBITDA, and Adjusted EBITDA are
non-GAAP measurements. A reconciliation of all non-GAAP
measurements to the most applicable GAAP number is set forth below.
Special charges are items that were included within our
consolidated statements of comprehensive income but are not
indicative of ongoing performance and have been presented net of
applicable U.S. GAAP taxes. The presentation of non-GAAP
measurements may not be comparable to other similarly titled
measures used by other companies.
About ICF
ICF is a global consulting and technology services company with
approximately 9,000 employees, but we are not your typical
consultants. At ICF, business analysts and policy specialists work
together with digital strategists, data scientists and creatives.
We combine unmatched industry expertise with cutting-edge
engagement capabilities to help organizations solve their most
complex challenges. Since 1969, public and private sector clients
have worked with ICF to navigate change and shape the future. Learn
more at icf.com.
Caution Concerning Forward-looking Statements
Statements that are not historical facts and involve known
and unknown risks and uncertainties are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. Such statements may concern our current expectations
about our future results, plans, operations and prospects and
involve certain risks, including those related to the government
contracting industry generally; our particular business, including
our dependence on contracts with U.S. federal government
agencies; and our ability to acquire and successfully integrate
businesses. These and other factors that could cause our actual
results to differ from those indicated in forward-looking
statements that are included in the "Risk Factors" section of our
securities filings with the Securities and Exchange
Commission. The forward-looking statements included herein are only
made as of the date hereof, and we specifically disclaim any
obligation to update these statements in the future.
Note on Forward-Looking Non-GAAP Measures
The company does not reconcile its forward-looking non-GAAP
financial measures to the corresponding U.S. GAAP
measures, due to the variability and difficulty in making accurate
forecasts and projections and because not all of the information
necessary for a quantitative reconciliation of these
forward-looking non-GAAP financial measures (such as the effect of
share-based compensation or the impact of future extraordinary or
non-recurring events like acquisitions) is available to the company
without unreasonable effort. For the same reasons, the company is
unable to estimate the probable significance of the unavailable
information. The company provides forward-looking non-GAAP
financial measures that it believes will be achievable, but it
cannot accurately predict all of the components of the adjusted
calculations, and the U.S. GAAP financial measures may be
materially different than the non-GAAP financial measures.
Investor Contacts:
Lynn Morgen,
ADVISIRY PARTNERS,
lynn.morgen@advisiry.com
+1.212.750.5800
David
Gold, ADVISIRY PARTNERS,
david.gold@advisiry.com +1.212.750.5800
Company Information Contact:
Lauren Dyke, ICF,
lauren.dyke@ICF.com +1.571.373.5577
|
ICF International,
Inc. and Subsidiaries
|
|
Consolidated
Statements of Comprehensive Income
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
|
December 31,
|
|
(in thousands,
except per share amounts)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
|
$496,324
|
|
$478,352
|
|
$2,019,787
|
|
$1,963,238
|
|
Direct
costs
|
|
317,105
|
|
303,545
|
|
1,282,016
|
|
1,265,018
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
Indirect and selling
expenses
|
|
129,452
|
|
123,354
|
|
518,453
|
|
505,162
|
|
Depreciation and
amortization
|
|
5,181
|
|
6,225
|
|
20,484
|
|
25,277
|
|
Amortization of
intangible assets
|
|
8,118
|
|
8,307
|
|
32,992
|
|
35,461
|
|
Total operating
costs and expenses
|
|
142,751
|
|
137,886
|
|
571,929
|
|
565,900
|
|
Operating
income
|
|
36,468
|
|
36,921
|
|
165,842
|
|
132,320
|
|
Interest,
net
|
|
(6,454)
|
|
(9,535)
|
|
(29,590)
|
|
(39,681)
|
|
Other
income
|
|
1,040
|
|
2,407
|
|
1,806
|
|
3,908
|
|
Income before
income taxes
|
|
31,054
|
|
29,793
|
|
138,058
|
|
96,547
|
|
Provision for
income taxes
|
|
6,489
|
|
7,631
|
|
27,888
|
|
13,935
|
|
Net
income
|
|
$
24,565
|
|
$
22,162
|
|
$
110,170
|
|
$ 82,612
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 1.31
|
|
$ 1.18
|
|
$
5.88
|
|
$
4.39
|
|
Diluted
|
|
$ 1.30
|
|
$ 1.16
|
|
$
5.82
|
|
$
4.35
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
18,733
|
|
18,823
|
|
18,747
|
|
18,802
|
|
Diluted
|
|
18,897
|
|
19,025
|
|
18,925
|
|
18,994
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$ 0.14
|
|
$ 0.14
|
|
$
0.56
|
|
$
0.56
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax
|
|
(3,251)
|
|
(1,516)
|
|
(3,861)
|
|
(3,752)
|
|
Comprehensive income,
net of tax
|
|
$
21,314
|
|
$
20,646
|
|
$
106,309
|
|
$ 78,860
|
|
ICF International,
Inc. and Subsidiaries
|
|
Reconciliation of
Non-GAAP financial measures (2)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
|
|
December 31,
|
|
(in thousands,
except per share amounts)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Reconciliation of
Revenue, Adjusted for Impact of Exited
Business
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 496,324
|
|
$ 478,352
|
|
$
2,019,787
|
|
$
1,963,238
|
|
Less: Revenue from
exited business (3)
|
|
—
|
|
(194)
|
|
—
|
|
(59,908)
|
|
Total Revenue,
Adjusted for Impact of Exited Business
|
|
$ 496,324
|
|
$ 478,158
|
|
$
2,019,787
|
|
$
1,903,330
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA and Adjusted EBITDA (4)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
24,565
|
|
$
22,162
|
|
$
110,170
|
|
$ 82,612
|
|
Interest,
net
|
|
6,454
|
|
9,535
|
|
29,590
|
|
39,681
|
|
Provision for income
taxes
|
|
6,489
|
|
7,631
|
|
27,888
|
|
13,935
|
|
Depreciation and
amortization
|
|
13,299
|
|
14,532
|
|
53,476
|
|
60,738
|
|
EBITDA
|
|
50,807
|
|
53,860
|
|
221,124
|
|
196,966
|
|
Impairment of
long-lived assets (5)
|
|
3,583
|
|
3,860
|
|
3,583
|
|
7,666
|
|
Acquisition and
divestiture-related expenses (6)
|
|
1,108
|
|
74
|
|
1,313
|
|
4,759
|
|
Severance and other
costs related to staff realignment (7)
|
|
351
|
|
1,911
|
|
1,535
|
|
6,366
|
|
Charges for facility
consolidations and office closures (8)
|
|
464
|
|
608
|
|
464
|
|
3,187
|
|
Pre-tax gain from
divestiture of a business (9)
|
|
—
|
|
(3,287)
|
|
(2,013)
|
|
(5,712)
|
|
Total
Adjustments
|
|
5,506
|
|
3,166
|
|
4,882
|
|
16,266
|
|
Adjusted
EBITDA
|
|
$
56,313
|
|
$
57,026
|
|
$
226,006
|
|
$
213,232
|
|
|
|
|
|
|
|
|
|
|
Net Income Margin
Percent on Revenue (10)
|
|
4.9 %
|
|
4.6 %
|
|
5.5 %
|
|
4.2 %
|
|
EBITDA Margin Percent
on Revenue (11)
|
|
10.2 %
|
|
11.3 %
|
|
10.9 %
|
|
10.0 %
|
|
Adjusted EBITDA
Margin Percent on Revenue (11)
|
|
11.3 %
|
|
11.9 %
|
|
11.2 %
|
|
10.9 %
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Diluted EPS (4)
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Diluted
EPS
|
|
$ 1.30
|
|
$ 1.16
|
|
$
5.82
|
|
$
4.35
|
|
Impairment of
long-lived assets
|
|
0.19
|
|
0.20
|
|
0.19
|
|
0.40
|
|
Acquisition and
divestiture-related expenses
|
|
0.06
|
|
—
|
|
0.07
|
|
0.25
|
|
Severance and other
costs related to staff realignment
|
|
0.02
|
|
0.10
|
|
0.08
|
|
0.33
|
|
Expenses related to
facility consolidations and office closures (12)
|
|
0.02
|
|
0.10
|
|
0.06
|
|
0.24
|
|
Pre-tax gain from
divestiture of a business
|
|
—
|
|
(0.17)
|
|
(0.11)
|
|
(0.30)
|
|
Amortization of
intangibles
|
|
0.43
|
|
0.44
|
|
1.74
|
|
1.87
|
|
Income tax effects of
the adjustments (13)
|
|
(0.15)
|
|
(0.15)
|
|
(0.40)
|
|
(0.64)
|
|
Non-GAAP Diluted
EPS
|
|
$ 1.87
|
|
$ 1.68
|
|
$
7.45
|
|
$
6.50
|
|
|
|
|
|
|
|
|
|
|
(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 operating lease right-of-use
and leasehold improvement assets associated with exit from certain
facilities, and an intangible asset associated with exit of a
business.
|
|
|
|
|
|
|
|
|
|
|
(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) Includes pre-tax gain from the divestitures of our
U.S. commercial marketing and Canadian mobile text aggregation
businesses.
|
|
|
|
|
|
|
|
|
|
|
(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
20.9% and 21.1% for the three months ended December 31, 2024 and
2023, respectively, and 20.2% and 22.8% for the twelve months ended
December 31, 2024 and 2023, respectively.
|
|
ICF International,
Inc. and Subsidiaries
|
|
Consolidated
Balance Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
(in thousands,
except share amounts)
|
|
December 31,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
4,960
|
|
$
6,361
|
|
Restricted
cash
|
|
13,857
|
|
3,088
|
|
Contract receivables,
net
|
|
256,923
|
|
205,484
|
|
Contract
assets
|
|
188,941
|
|
201,832
|
|
Prepaid expenses and
other assets
|
|
21,133
|
|
28,055
|
|
Income tax
receivable
|
|
6,260
|
|
2,337
|
|
Total Current
Assets
|
|
492,074
|
|
447,157
|
|
Property and
Equipment, net
|
|
68,118
|
|
75,948
|
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
|
1,248,855
|
|
1,219,476
|
|
Other intangible
assets, net
|
|
88,262
|
|
94,904
|
|
Operating lease -
right-of-use assets
|
|
115,531
|
|
132,807
|
|
Deferred tax
asset
|
|
1,603
|
|
—
|
|
Other
assets
|
|
51,910
|
|
41,480
|
|
Total
Assets
|
|
$
2,066,353
|
|
$
2,011,772
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
—
|
|
$
26,000
|
|
Accounts
payable
|
|
159,522
|
|
134,503
|
|
Contract
liabilities
|
|
24,580
|
|
21,997
|
|
Operating lease
liabilities
|
|
20,721
|
|
20,409
|
|
Finance lease
liabilities
|
|
2,612
|
|
2,522
|
|
Accrued salaries and
benefits
|
|
105,773
|
|
88,021
|
|
Accrued
subcontractors and other direct costs
|
|
49,271
|
|
45,645
|
|
Accrued expenses and
other current liabilities
|
|
86,701
|
|
79,129
|
|
Total Current
Liabilities
|
|
449,180
|
|
418,226
|
|
Long-term
Liabilities:
|
|
|
|
|
|
Long-term
debt
|
|
411,743
|
|
404,407
|
|
Operating lease
liabilities - non-current
|
|
155,935
|
|
175,460
|
|
Finance lease
liabilities - non-current
|
|
11,261
|
|
13,874
|
|
Deferred income
taxes
|
|
—
|
|
26,175
|
|
Other long-term
liabilities
|
|
55,775
|
|
56,045
|
|
Total
Liabilities
|
|
1,083,894
|
|
1,094,187
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
Preferred stock, par
value $.001; 5,000,000 shares authorized; none issued
|
|
—
|
|
—
|
|
Common stock, $.001
par value; 70,000,000 shares authorized; 24,186,962 and 23,982,132
shares issued; and 18,666,290 and 18,845,521 shares outstanding at
December 31, 2024 and 2023, respectively
|
|
24
|
|
24
|
|
Additional paid-in
capital
|
|
443,463
|
|
421,502
|
|
Retained
earnings
|
|
874,772
|
|
775,099
|
|
Treasury stock,
5,520,672 and 5,136,611 shares at December 31, 2024 and 2023,
respectively
|
|
(320,054)
|
|
(267,155)
|
|
Accumulated other
comprehensive loss
|
|
(15,746)
|
|
(11,885)
|
|
Total
Stockholders' Equity
|
|
982,459
|
|
917,585
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
2,066,353
|
|
$
2,011,772
|
|
ICF International,
Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows
|
|
(Unaudited)
|
|
|
Years
ended
|
|
|
December 31,
|
|
(in
thousands)
|
|
2024
|
|
2023
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
Net income
|
|
$ 110,170
|
|
$
82,612
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Provision for credit
losses
|
|
1,673
|
|
1,164
|
|
Deferred income taxes
and unrecognized income tax benefits
|
|
(24,336)
|
|
(17,634)
|
|
Non-cash equity
compensation
|
|
16,722
|
|
14,861
|
|
Depreciation and
amortization
|
|
53,476
|
|
60,738
|
|
Gain on divestiture
of a business
|
|
(2,009)
|
|
(7,590)
|
|
Other operating,
net
|
|
4,647
|
|
8,294
|
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
Net contract assets
and liabilities
|
|
14,668
|
|
(38,422)
|
|
Contract
receivables
|
|
(49,538)
|
|
20,939
|
|
Prepaid expenses and
other assets
|
|
3,496
|
|
18,579
|
|
Operating lease
assets and liabilities, net
|
|
(4,755)
|
|
3,544
|
|
Accounts
payable
|
|
24,152
|
|
(1,489)
|
|
Accrued salaries and
benefits
|
|
18,048
|
|
2,175
|
|
Accrued
subcontractors and other direct costs
|
|
4,353
|
|
(269)
|
|
Accrued expenses and
other current liabilities
|
|
8,361
|
|
(4,757)
|
|
Income tax receivable
and payable
|
|
(5,391)
|
|
9,277
|
|
Other
liabilities
|
|
(2,193)
|
|
361
|
|
Net Cash Provided
by Operating Activities
|
|
171,544
|
|
152,383
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
Payments for purchase
of property and equipment and capitalized software
|
|
(21,430)
|
|
(22,337)
|
|
Payments for business
acquisitions, net of cash acquired
|
|
(55,007)
|
|
(32,664)
|
|
Proceeds from
divestiture of a business
|
|
1,985
|
|
51,328
|
|
Other investing,
net
|
|
(353)
|
|
—
|
|
Net Cash Used in
Investing Activities
|
|
(74,805)
|
|
(3,673)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
Advances from working
capital facilities
|
|
1,227,926
|
|
1,245,198
|
|
Payments on working
capital facilities
|
|
(1,247,791)
|
|
(1,372,474)
|
|
Proceeds from other
short-term borrowings
|
|
62,080
|
|
48,532
|
|
Repayments of other
short-term borrowings
|
|
(66,408)
|
|
(41,653)
|
|
Receipt of restricted
contract funds
|
|
1,251
|
|
7,672
|
|
Payment of restricted
contract funds
|
|
(3,267)
|
|
(8,084)
|
|
Dividends
paid
|
|
(10,507)
|
|
(10,537)
|
|
Net payments for
stock issuances and share repurchases
|
|
(47,767)
|
|
(19,083)
|
|
Other financing,
net
|
|
(2,415)
|
|
(2,159)
|
|
Net Cash Used in
Financing Activities
|
|
(86,898)
|
|
(152,588)
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
(473)
|
|
359
|
|
|
|
|
|
|
Increase
(Decrease) in Cash, Cash Equivalents, and Restricted
Cash
|
|
9,368
|
|
(3,519)
|
|
Cash, Cash
Equivalents, and Restricted Cash, Beginning of
Period
|
|
9,449
|
|
12,968
|
|
Cash, Cash
Equivalents, and Restricted Cash, End of Period
|
|
$
18,817
|
|
$
9,449
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
30,046
|
|
$
34,093
|
|
Income
taxes
|
|
$
60,221
|
|
$
26,190
|
|
Non-cash investing
and financing transactions:
|
|
|
|
|
|
Tenant improvements
funded by lessor
|
|
$
—
|
|
$
568
|
|
Acquisition of
property and equipment through finance lease
|
|
$
—
|
|
$
337
|
|
ICF International,
Inc. and Subsidiaries
|
|
Supplemental
Schedule (14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client
markets
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Energy, environment,
infrastructure, and disaster recovery
|
|
48 %
|
|
44 %
|
|
46 %
|
|
41 %
|
|
Health and social
programs
|
|
37 %
|
|
41 %
|
|
38 %
|
|
42 %
|
|
Security and other
civilian & commercial
|
|
15 %
|
|
15 %
|
|
16 %
|
|
17 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client
type
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
U.S. federal
government
|
|
52 %
|
|
55 %
|
|
54 %
|
|
55 %
|
|
U.S. state and local
government
|
|
15 %
|
|
16 %
|
|
16 %
|
|
16 %
|
|
International
government
|
|
6 %
|
|
6 %
|
|
5 %
|
|
5 %
|
|
Total
Government
|
|
73 %
|
|
77 %
|
|
75 %
|
|
76 %
|
|
Commercial
|
|
27 %
|
|
23 %
|
|
25 %
|
|
24 %
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
contract mix
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Time-and-materials
|
|
43 %
|
|
41 %
|
|
42 %
|
|
41 %
|
|
Fixed-price
|
|
47 %
|
|
46 %
|
|
46 %
|
|
45 %
|
|
Cost-based
|
|
10 %
|
|
13 %
|
|
12 %
|
|
14 %
|
|
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
