Total Revenue Increased 17 Percent
Operating Income Up 21 Percent
Net Income Increased 16 Percent; Diluted Earnings Per Share of
First Quarter 2012 Results and Highlights
For the first quarter, total revenue reached
“ICF achieved solid growth across our two largest markets2,
which accounted for more than 87 percent of total first quarter
revenue,” said ICF Chairman and Chief Executive Officer
“We posted a 16.1 percent increase in EBITDA and 21 percent growth in
operating income, reflective of our ability to effectively manage
indirect expenses during the initial integration phases of two important
acquisitions. The acquisition of Ironworks has expanded the range of
implementation services we offer to commercial and government clients in
our key markets, particularly in the area of digital interactive
services. GHK adds important scale to our non-U.S. business and a
platform through which to replicate our successful U.S. track record in
Backlog and New Business Awards
Backlog was
The total value of contracts awarded in the first quarter of 2012 was
Key contracts won in the first quarter included:
-
Energy Efficiency: A contract extension and expansion valued at
$31 million with a major U.S. utility. Under this contract, ICF is providing a suite of programs to increase energy efficiency in the residential consumer market. -
Energy Efficiency: A contract extension valued at
$11.5 million with theSouthern Maryland Electric Cooperative to continue promoting energy efficiency programs for residential and commercial customers. -
Energy Efficiency: A
$6 million contract with another U.S. utility for a full range of marketing and technical services supporting energy efficiency programs in the residential space. -
ENERGY STAR®: A contract with the
U.S. Environmental Protection Agency , valued at$24 million , to deliver training, technical assistance, and outreach in support of the ENERGY STAR program for commercial, institutional, and industrial partners throughoutthe United States . -
Public Health: A contract with the
U.S. Department of Health and Human Services ,Centers for Disease Control and Prevention , valued at up to$15.8 million , for survey research, design, and implementation to measure and report health risk behaviors and policies. -
Transportation and Environment: A contract with the
U.S. Environmental Protection Agency , valued at up to$15 million to provide analytical and modeling support for the development and evaluation of mobile source greenhouse gas (GHG) regulations and emission control technologies. - Commercial Sector: In addition to the energy efficiency wins already noted, ICF was awarded more than 300 additional commercial projects in the areas of energy efficiency, interactive data applications, infrastructure, environmental management, regulatory assessment for utilities, and transportation planning.
Summary and Outlook
“Over the last several quarters, ICF has reported double-digit increases
in revenues and earnings, driven by the significant growth of our U.S.
commercial, state, and local businesses, which has more than offset
slower revenue growth from some of our U.S. Federal Government clients,”
Mr. Kesavan said. “This trend should continue in the 2012 second quarter
when revenues are expected to range from
“We reaffirm our guidance for full year 2012. Revenues are expected to
range from
About
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 are included in the "Risk Factors" section of our securities
filings with the
1 Organic revenue excludes revenue from acquisitions closed during the previous four quarters.
2 The Company re-named select end market categories effective in the 2012 first quarter to more accurately reflect recent acquisitions and growth that allow us to reach new customers with a broad array of services in these markets.
| ICF International, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Comprehensive Income | ||||||||
| (in thousands, except per share amounts) | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| Gross Revenue | $ | 227,641 | $ | 194,742 | ||||
| Direct Costs | 140,188 | 118,221 | ||||||
| Operating costs and expenses: | ||||||||
| Indirect and selling expenses | 65,871 | 57,926 | ||||||
| Depreciation and amortization | 1,815 | 2,761 | ||||||
| Amortization of intangible assets | 3,531 | 2,415 | ||||||
| Total operating costs and expenses | 71,217 | 63,102 | ||||||
| Operating Income | 16,236 | 13,419 | ||||||
| Interest expense | (1,307 | ) | (629 | ) | ||||
| Other income (expense) | (33 | ) | 87 | |||||
| Income before income taxes | 14,896 | 12,877 | ||||||
| Provision for income taxes | 5,959 | 5,151 | ||||||
| Net income | $ | 8,937 | $ | 7,726 | ||||
| Earnings per Share: | ||||||||
| Basic | $ | 0.45 | $ | 0.39 | ||||
| Diluted | $ | 0.45 | $ | 0.39 | ||||
| Weighted-average Shares: | ||||||||
| Basic | 19,769 | 19,580 | ||||||
| Diluted | 20,082 | 19,780 | ||||||
| Other comprehensive income: | ||||||||
| Foreign currency translation adjustments | (389 | ) | 156 | |||||
| Comprehensive income | $ | 8,548 | $ | 7,882 | ||||
|
Reconciliation of EBITDA |
||||||||
| Operating Income | $ | 16,236 | $ | 13,419 | ||||
| Depreciation and amortization | 5,346 | 5,176 | ||||||
| EBITDA | 21,582 | 18,595 | ||||||
| Acquisition-related expenses* | 625 | - | ||||||
| Adjusted EBITDA | $ | 22,207 | $ | 18,595 | ||||
| *Acquisition-related expenses include expenses related to closed acquisitions. | ||||||||
| ICF International, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share amounts) | ||||||||
| March 31, 2012 | December 31, 2011 | |||||||
| (Unaudited) | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 5,713 | $ | 4,097 | ||||
| Contract receivables, net | 223,251 | 209,426 | ||||||
| Prepaid expenses and other | 6,009 | 7,948 | ||||||
| Income tax receivable | 484 | 1,155 | ||||||
| Deferred income taxes | 5,206 | 7,963 | ||||||
| Total current assets | 240,663 | 230,589 | ||||||
| Total property and equipment, net | 29,301 | 21,067 | ||||||
| Other assets: | ||||||||
| Goodwill | 406,799 | 401,134 | ||||||
| Other intangible assets, net | 32,476 | 33,740 | ||||||
| Restricted cash | 1,215 | 1,208 | ||||||
| Other assets | 8,895 | 6,877 | ||||||
| Total Assets | $ | 719,349 | $ | 694,615 | ||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 40,628 | $ | 38,685 | ||||
| Accrued salaries and benefits | 41,301 | 46,215 | ||||||
| Accrued expenses | 28,898 | 29,252 | ||||||
| Deferred revenue | 24,241 | 20,180 | ||||||
| Total current liabilities | 135,068 | 134,332 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 152,146 | 145,000 | ||||||
| Deferred rent | 7,706 | 7,223 | ||||||
| Deferred income taxes | 10,115 | 9,247 | ||||||
| Other | 11,247 | 5,785 | ||||||
| Total Liabilities | 316,282 | 301,587 | ||||||
| Commitments and Contingencies | — | — | ||||||
| Stockholders’ Equity: | ||||||||
|
Preferred stock, par value $.001 per share; 5,000,000 shares authorized; none issued |
— |
— | ||||||
|
Common stock, $.001 par value; 70,000,000 shares authorized; 19,979,970 and 19,887,459 shares issued; and 19,852,895 and 19,792,499 shares outstanding as of March 31, 2012, and December 31, 2011, respectively |
20 |
20 | ||||||
| Additional paid-in capital | 229,885 | 227,577 | ||||||
| Retained earnings | 177,439 | 168,502 | ||||||
| Treasury stock | (3,083 | ) | (2,266 | ) | ||||
| Accumulated other comprehensive loss | (1,194 | ) | (805 | ) | ||||
| Total Stockholders’ Equity | 403,067 | 393,028 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 719,349 | $ | 694,615 | ||||
| ICF International, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 8,937 | $ | 7,726 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Deferred income taxes | 3,674 | (16 | ) | |||||
| (Gain) loss on disposal of fixed assets | 67 | (66 | ) | |||||
| Non-cash equity compensation | 1,772 | 1,195 | ||||||
| Depreciation and amortization | 5,346 | 5,176 | ||||||
| Deferred rent | 525 | 842 | ||||||
| Changes in operating assets and liabilities, net of the effect of acquisitions: | ||||||||
| Contract receivables | (4,391 | ) | (2,138 | ) | ||||
| Prepaid expenses and other assets | 1,678 | (972 | ) | |||||
| Accounts payable | (798 | ) | (5,629 | ) | ||||
| Accrued salaries and benefits | (5,313 | ) | 3,819 | |||||
| Accrued expenses | (5,712 | ) | (3,059 | ) | ||||
| Deferred revenue | (655 | ) | 896 | |||||
| Income tax payable | 419 | 4,236 | ||||||
| Restricted cash | (7 | ) | 1,303 | |||||
| Other liabilities | 5,461 | 513 | ||||||
| Net cash provided by operating activities | 11,003 | 13,826 | ||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (5,626 | ) | (1,696 | ) | ||||
| Capitalized software development costs | — | (28 | ) | |||||
| Payments for business acquisitions, net of cash received | (8,556 | ) | (4,547 | ) | ||||
| Net cash used in investing activities | (14,182 | ) | (6,271 | ) | ||||
| Cash flows from financing activities | ||||||||
| Advances from working capital facilities | 35,231 | 32,294 | ||||||
| Payments on working capital facilities | (28,085 | ) | (37,294 | ) | ||||
| Debt issue costs | (1,681 | ) | — | |||||
| Proceeds from exercise of options | 23 | 85 | ||||||
| Tax benefits of stock option exercises and award vesting | 486 | 949 | ||||||
| Net payments for stockholder issuances and buybacks | (790 | ) | (758 | ) | ||||
| Net cash provided by (used in) financing activities | 5,184 | (4,724 | ) | |||||
| Effect of exchange rate on cash | (389 | ) | 156 | |||||
| Increase in cash | 1,616 | 2,987 | ||||||
| Cash, beginning of period | 4,097 | 3,301 | ||||||
| Cash, end of period | $ | 5,713 | $ | 6,288 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 830 | $ | 610 | ||||
| Income taxes | $ | 1,468 | $ | 328 | ||||
| ICF International, Inc. and Subsidiaries | ||||
| Supplemental Schedule | ||||
| Revenue by market | Three Months Ended | |||
| March 31, | ||||
| 2012 | 2011 | |||
| Energy, environment, and infrastructure | 44% | 41% | ||
| Health, social programs, and consumer/financial | 43% | 43% | ||
| Public safety and defense | 13% | 16% | ||
| Total | 100% | 100% | ||
| Revenue by client | Three Months Ended | |||
| March 31, | ||||
| 2012 | 2011 | |||
| U.S. federal government | 62% | 68% | ||
| U.S. state and local government | 10% | 10% | ||
| U.S. commercial | 23% | 17% | ||
| Non-U.S. | 5% | 5% | ||
| Total | 100% | 100% | ||
| Revenue by contract | Three Months Ended | |||
| March 31, | ||||
| 2012 | 2011 | |||
| Time-and-materials | 50% | 51% | ||
| Fixed-price | 28% | 27% | ||
| Cost-based | 22% | 22% | ||
| Total | 100% | 100% | ||
Source:
ICF International
Douglas Beck, 1-703-934-3820
or
MBS
Value Partners
Lynn Morgen, 1-212-750-5800
