UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of Registrant as Specified in Its Charter)
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act.
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Title of each class |
Trading Symbols(s) |
Name of each exchange on which registered |
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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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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).
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Emerging growth company |
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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 4, 2021, ICF International, Inc. (the “Company”) announced its financial results for the first quarter ended March 31, 2021. 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 4, 2021, 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 14, 2021 to stockholders of record as of the close of business on June 11, 2021.
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
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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Exhibit Index
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Exhibit Number |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
2
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 thereunto duly authorized.
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ICF International, Inc. |
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Date: May 4, 2021 |
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By: |
/s/ Bettina G. Welsh |
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Bettina G. Welsh |
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Senior Vice President & Chief Financial Officer |
3
Exhibit 99.1
NEWS RELEASE
ICF Reports First Quarter 2021 Results
First Quarter Highlights:
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Total Revenue Was $378 Million; Service Revenue¹ Was $280 Million, up 9.5% |
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Diluted EPS Was $0.96 Compared to $0.55 |
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Non-GAAP EPS¹ Was $1.13, up 36% |
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Adjusted EBITDA Margin on Service Revenue¹ Was 13.5% |
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Record Contract Awards of $596 Million up 67%; TTM Contract Awards Were $2.2 Billion For a Book-to-Bill Ratio of 1.44 |
—Expects Full Year 2021 Service Revenue, EBITDA¹ and EPS to be at Upper End of the Guidance Ranges—
FOR IMMEDIATE RELEASE
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
FAIRFAX, Va.— May 4, 2021 -- ICF (NASDAQ:ICFI), a global consulting and digital services provider, reported results for the first quarter ended March 31, 2021.
Commenting on the results, John Wasson, chairman and chief executive officer, said, “This was an excellent quarter for ICF, underscoring our positioning in high-growth markets within both the government and commercial arenas, and representing efficient execution on client programs. Additionally, this was another quarter of robust contract awards that indicate how well ICF’s domain expertise and implementation capabilities are aligned with market demand.
“Results exceeded our expectations, led by double-digit revenue increases in our government and commercial energy businesses, where IT modernization, public health, mitigation/resilience, energy efficiency and utility advisory work remained major growth catalysts.
“Strong service revenue growth of 9.5%, together with higher utilization, drove substantial operating leverage. Earnings and EBITDA¹ increased at considerably higher rates than revenue, even as we moved ahead with investments in people and technologies to expand our capabilities in the high-growth markets we have identified. Gross margin of 38.7% included a significant quarter-specific benefit primarily related to the timing
1
of several recently awarded fixed price energy efficiency contracts on which certain program costs will be incurred in upcoming quarters and the timing of energy efficiency incentive fees on several contracts.
“This was ICF’s third consecutive quarter of record contract awards, with strong year-on-year increases in federal, state and local and commercial energy wins, virtually all in response to RFPs that were issued prior to the arrival of the new administration. At the end of the first quarter, our pipeline remained over $6 billion, representing diversified growth opportunities across our government and commercial client sets,” Mr. Wasson noted.
First Quarter 2021 Results
First quarter 2021 total revenue was $378.5 million, an increase of 5.6% from the $358.2 million reported in the first quarter of 2020. Service revenue growth was 9.5% year-over-year to $279.6 million, from $255.4 million. Net income amounted to $18.4 million in the 2021 first quarter, and diluted EPS was $0.96 per diluted share, inclusive of $0.05 of tax-effected special charges primarily related to facility closure and severance costs. In the 2020 first quarter, net income was $10.6 million, or $0.55 per diluted share, inclusive of $0.16 of tax-effected special charges primarily related to M&A and severance costs.
Non-GAAP EPS was $1.13 per share, an increase of 36% over the $0.83 per share reported in the year-ago quarter. EBITDA was $36.4 million, 49.5% ahead of the $24.4 million reported in the first quarter of 2020. Adjusted EBITDA¹ was $37.7 million, compared to $28.0 million reported in the comparable quarter of 2020. First quarter 2021 adjusted EBITDA margin on service revenue was 13.5%, representing a 260-basis point increase from the 10.9% reported in the 2020 first quarter.
Backlog and New Business Awards
Total backlog was $3.0 billion at the end of the first quarter of 2021. Funded backlog was $1.6 billion, or approximately 52% of the total backlog. The total value of contracts awarded in the 2021 first quarter was $596.1 million, up 67% year-on-year for a quarterly book-to-bill ratio of 1.57. Trailing-twelve-month (TTM) contract awards totaled $2.19 billion for a book-to-bill ratio of 1.44.
Government Revenue First Quarter 2021 Highlights
Revenue from government clients was $270.1 million, up 12.9% year-over-year.
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U.S. federal government revenue was $175.9 million, representing a 13.1% year-over-year increase. Federal government revenue accounted for 46% of total revenue, up from 43% of total revenue in the first quarter of 2020. |
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U.S. state and local government revenue was $57.2 million compared to $60.9 million in the year ago quarter, with the lower year-on-year comparisons primarily representing reduced pass-through revenues. State and local government clients accounted for 15% of total revenue, compared to 17% of total revenue in the 2020 first quarter. |
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International government revenue was $37.1 million, representing a 62.5% year-over-year increase, primarily related to a short-term project. International government revenue accounted for 10% of total revenue, up from 6% in the first quarter of 2020. |
2
Key Government Contracts Awarded in the First Quarter 2021
ICF was awarded almost 100 U.S. federal contracts and task orders and more than 200 additional contracts from U.S. state and local and international governments with an aggregate value of over $340 million. Notable awards won in the first quarter 2021 included:
Disaster Management
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A new contract with a value of $46.7 million with the Government of Puerto Rico’s Public-Private Partnership Authority that includes elements of ICF’s previous work to provide project formulation services to support long-term disaster recovery from hurricanes Irma and Maria and hazard mitigation efforts to protect against future disasters. |
IT Modernization and Cybersecurity
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A task order with recompete and new elements valued up to $52.6 million with the U.S. Army Combat Capabilities Development Command Army Research Laboratory to expand the delivery of cyber research, development and technology services. |
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Two new agreements with an estimated value of $15.6 million with the U.S. Department of Labor (DOL) to provide IT and cybersecurity workforce development services under DOL’s H-1B One Workforce Grant Program. |
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A new task order with a value of $10.7 million with the U.S. Federal Transit Administration to automate and modernize the National Transit Database. |
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A contract modification with a value of $9.2 million with the U.S. Department of Health and Human Services (HHS) Office of Inspector General to continue to perform ServiceNow platform support services. |
Public Health
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A contract extension with a value of $11.0 million with the Maryland Department of Human Services to expand its customer support services. |
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A new contract with a value of $3.5 million with the health department of a Northeastern U.S. state to provide inbound call center support scheduling COVID-19 vaccinations. |
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A new contract with a value of $3.5 million with the U.S. Centers for Disease Control and Prevention to conduct a multistate study of COVID-19 mitigation strategies and outcomes in public schools. |
Program, Technical and Analytical Support
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A recompete contract valued up to $35.0 million with the HHS Administration for Children and Families to provide training and technical assistance to support Head Start programs in Region 4. |
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A single-award IDIQ contract with recompete and new elements valued up to $30.0 million with the U.S. Environmental Protection Agency to provide technical, analytical and quality assurance support to inform the agency’s decision-making process, including services to Regions 3, 5 and 9. |
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A recompete blanket purchase agreement valued up to $25.0 million with a U.S. federal department to provide analytical services to support regulatory development. |
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Two new multimillion-dollar agreements with a U.S. federal department to continue providing technical assistance (TA) services for its TA and capacity building activities. |
3
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A recompete contract with a value of $5.4 million with a directorate of the European Commission to provide a range of services related to tackling undeclared work, including supporting mutual learning events, conducting studies and analyses and providing communications support. |
Commercial Revenue First Quarter 2021 Highlights
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Commercial revenue was $108.4 million, compared to $118.9 million reported in last year’s first quarter. Commercial revenue accounted for 29% of total revenue compared to 33% of total revenue in the 2020 first quarter reflecting impact of COVID-19 pandemic on our commercial marketing business, which was partially offset by significant revenue growth in commercial energy markets. |
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Energy markets, which include energy efficiency programs, represented 58% of commercial revenue. |
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Marketing services accounted for 33% of commercial revenue. |
Key Commercial Contracts Awarded in the First Quarter 2021
Commercial contract awards were over $250 million in the first quarter 2021. ICF was awarded almost 800 commercial projects globally during the quarter including:
Energy Markets
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Two new agreements with Southern California Edison to design and implement commercial and residential behavioral energy efficiency programs. |
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A new contract with Public Service Energy & Gas Co. to provide implementation and marketing services for its residential energy efficiency portfolio. |
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Contract expansions and extensions with utilities in the Mid-Atlantic U.S. to continue to provide implementation services for their residential, commercial and industrial energy efficiency programs. |
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Two recompete agreements and one contract modification with a Southeastern U.S. utility to provide implementation services for its energy efficiency programs. |
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A recompete contract with a Mid-Atlantic U.S. utility to provide implementation support services for its new and existing energy efficiency programs. |
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Contract expansions with a Midwestern U.S. utility to continue providing implementation services for its residential energy efficiency programs. |
Marketing Services
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A recompete contract with an international hospitality chain to continue providing loyalty platform services. |
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A retainer with a U.S. floor care product manufacturer to continue to provide marketing services. |
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A contract modification with a U.S. pharmaceutical company to continue to provide corporate communications support services. |
Dividend Declaration
On May 4, 2021, ICF declared a quarterly cash dividend of $0.14 per share, payable on July 14, 2021, to shareholders of record on June 11, 2021.
4
Summary and Outlook
“ICF’s first quarter results represented a strong start to the year and have laid the foundation for significant growth across key metrics in 2021. Based on this performance and our current backlog and pipeline, we now expect full year 2021 service revenue, EBITDA and EPS to be at the upper end of the guidance ranges we provided at the time of our fourth quarter earnings release, namely service revenue of $1.095 billion to $1.13 billion; EBITDA of $145 million to $155 million; GAAP EPS of $3.90 to $4.20; and Non-GAAP EPS of $4.35 to $4.65. We continue to anticipate total revenue in 2021 of $1.525 billion to $1.575 billion, and we reaffirm our expectation that operating cash flow will be approximately $100 million.
“As noted last quarter, approximately 55% of our 2020 service revenue represented ICF’s work in key growth areas, namely IT modernization, public health, disaster management, energy efficiency and utility consulting, along with climate, environment and infrastructure consulting, all of which are closely aligned with the priorities of the new administration. Taken together, we expect the growth rate in these areas to be 10% or more over the next several years.
“At ICF, much of our business is in service areas that enable us to create positive impacts on society and we, in turn, have prioritized being a good corporate citizen. This has attracted like-minded people who have been instrumental to our success and share our commitment to carbon neutrality, diversity, social justice, and equality. We encourage you to access our most recent corporate citizenship report, available on our website, to learn more about how ICF addresses its environmental, social, and governance responsibilities,” Mr. Wasson concluded.
1 Non-GAAP EPS, Service Revenue, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin on Service Revenue 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 statement 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.
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5
About ICF
ICF (NASDAQ:ICFI) is a global consulting services company with over 7,000 full-time and part-time 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; our ability to acquire and successfully integrate businesses; and the effects of the novel coronavirus disease (COVID-19) and related federal, state and local government actions and reactions on the health of our staff and that of our clients, the continuity of our and our clients' operations, our results of operations and our outlook. 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.
6
ICF International, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
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Three Months Ended |
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March 31, |
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(in thousands, except per share amounts) |
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2021 |
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2020 |
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Revenue |
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$ |
378,478 |
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$ |
358,238 |
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Direct costs |
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232,082 |
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230,616 |
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Operating costs and expenses: |
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Indirect and selling expenses |
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109,982 |
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103,271 |
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Depreciation and amortization |
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5,270 |
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5,179 |
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Amortization of intangible assets |
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3,015 |
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2,853 |
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Total operating costs and expenses |
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118,267 |
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111,303 |
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Operating income |
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28,129 |
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16,319 |
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Interest expense |
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(2,683 |
) |
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(3,525 |
) |
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Other (expense) income |
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(417 |
) |
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190 |
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Income before income taxes |
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25,029 |
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12,984 |
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Provision for income taxes |
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6,678 |
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2,372 |
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Net income |
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$ |
18,351 |
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$ |
10,612 |
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Earnings per Share: |
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Basic |
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$ |
0.97 |
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$ |
0.56 |
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Diluted |
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$ |
0.96 |
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$ |
0.55 |
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Weighted-average Shares: |
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Basic |
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18,885 |
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18,840 |
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Diluted |
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19,118 |
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19,197 |
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Cash dividends declared per common share |
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$ |
0.14 |
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$ |
0.14 |
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Other comprehensive income (loss), net of tax |
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2,780 |
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(11,123 |
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Comprehensive income (loss), net of tax |
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$ |
21,131 |
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$ |
(511 |
) |
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7
ICF International, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures(2)
(Unaudited)
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Three Months Ended |
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March 31, |
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(in thousands, except per share amounts) |
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2021 |
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2020 |
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Reconciliation of Service Revenue |
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Revenue |
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$ |
378,478 |
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$ |
358,238 |
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Subcontractor and other direct costs (3) |
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(98,911 |
) |
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(102,836 |
) |
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Service revenue |
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$ |
279,567 |
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$ |
255,402 |
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Reconciliation of EBITDA and Adjusted EBITDA |
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Net income |
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$ |
18,351 |
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$ |
10,612 |
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Other expense (income) |
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417 |
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(190 |
) |
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Interest expense |
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2,683 |
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3,525 |
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Provision for income taxes |
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6,678 |
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2,372 |
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Depreciation and amortization |
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8,285 |
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8,032 |
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EBITDA |
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36,414 |
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24,351 |
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Adjustment related to impairment of long-lived assets (4) |
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303 |
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— |
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Special charges related to acquisitions (5) |
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95 |
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1,844 |
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Special charges related to severance for staff realignment (6) |
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491 |
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1,770 |
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Special charges related to facilities consolidations and office closures (7) |
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200 |
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— |
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Special charges related to retirement of the former Executive Chair (8) |
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224 |
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— |
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Total special charges |
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1,313 |
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3,614 |
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Adjusted EBITDA |
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$ |
37,727 |
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$ |
27,965 |
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EBITDA Margin Percent on Revenue (9) |
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9.6 |
% |
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6.8 |
% |
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EBITDA Margin Percent on Service Revenue (9) |
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13.0 |
% |
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9.5 |
% |
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Adjusted EBITDA Margin Percent on Revenue (9) |
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10.0 |
% |
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7.8 |
% |
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Adjusted EBITDA Margin Percent on Service Revenue (9) |
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13.5 |
% |
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10.9 |
% |
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Reconciliation of Non-GAAP Diluted EPS |
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Diluted EPS |
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$ |
0.96 |
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$ |
0.55 |
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Adjustment related to impairment of long-lived assets |
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|
0.02 |
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— |
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Special charges related to acquisitions |
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— |
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0.10 |
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|
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Special charges related to severance for staff realignment |
|
|
0.03 |
|
|
|
0.09 |
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Special charges related to facilities consolidations and office closures |
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|
0.01 |
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— |
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Special charges related to retirement of the former Executive Chair |
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0.01 |
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— |
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Amortization of intangibles |
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0.16 |
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0.15 |
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Income tax effects (10) |
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(0.06 |
) |
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(0.06 |
) |
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Non-GAAP EPS |
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$ |
1.13 |
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$ |
0.83 |
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8
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(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. |
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(3) Subcontractor and other direct costs is direct costs excluding direct labor and fringe costs. |
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(4) Adjustment related to impairment of long-lived assets: We recognized impairment expense of $0.3 million in the first quarter of 2021 related to impairment of a right-of-use lease asset. |
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(5) Special charges related to acquisitions: These costs consist primarily of consultants and other outside third-party costs and integration costs associated with an acquisition. |
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|
|
(6) Special charges related to severance for staff realignment: These costs are mainly due to involuntary employee termination benefits for our officers, groups of employees who have been notified that they will be terminated as part of a consolidation or reorganization or, to the extent that the costs are not included in the previous two categories, involuntary employee termination benefits for employees who have been terminated as a result of COVID-19. |
||||
|
|
|
|
|
|
|
(7) Special charges related to facilities consolidations and office closures: These costs are exit costs associated with terminated leases or full office closures. The exit costs include charges incurred under a contractual obligation that existed as of the date of the accrual and for which we will continue to pay until the contractual obligation is satisfied but with no economic benefit to us. |
||||
|
|
|
|
|
|
|
(8) Special charges related to retirement of the former Executive Chair: As a result of the employment agreement, the departing officer was able to maintain certain equity awards beyond his date of employment. The 2019 equity award held by the former Executive Chair was updated for a change in the performance factor. |
||||
|
|
|
|
|
|
|
(9) EBITDA Margin Percent and Adjusted EBITDA Margin Percent were calculated by dividing the non-GAAP measure by the corresponding revenue. |
||||
|
|
|
|
|
|
|
(10) Income tax effects were calculated using an effective U.S. GAAP tax rate of 26.7% and 18.3% for the three months ended March 31, 2021 and 2020, respectively |
||||
9
ICF International, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
(in thousands, except share and per share amounts) |
|
March 31, 2021 |
|
|
December 31, 2020 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,592 |
|
|
$ |
13,841 |
|
|
Restricted cash |
|
|
42,231 |
|
|
|
68,146 |
|
|
Contract receivables, net |
|
|
214,291 |
|
|
|
222,850 |
|
|
Contract assets |
|
|
164,155 |
|
|
|
143,369 |
|
|
Prepaid expenses and other assets |
|
|
22,115 |
|
|
|
25,492 |
|
|
Income tax receivable |
|
|
— |
|
|
|
1,977 |
|
|
Total Current Assets |
|
|
451,384 |
|
|
|
475,675 |
|
|
Property and Equipment, net |
|
|
60,294 |
|
|
|
62,434 |
|
|
Other Assets: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
910,359 |
|
|
|
909,913 |
|
|
Other intangible assets, net |
|
|
56,900 |
|
|
|
59,887 |
|
|
Operating lease - right-of-use assets |
|
|
119,250 |
|
|
|
127,132 |
|
|
Other assets |
|
|
32,572 |
|
|
|
32,249 |
|
|
Total Assets |
|
$ |
1,630,759 |
|
|
$ |
1,667,290 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
10,000 |
|
|
$ |
10,000 |
|
|
Accounts payable |
|
|
90,894 |
|
|
|
91,365 |
|
|
Contract liabilities |
|
|
43,589 |
|
|
|
42,050 |
|
|
Operating lease liabilities - current |
|
|
28,881 |
|
|
|
23,350 |
|
|
Accrued salaries and benefits |
|
|
85,134 |
|
|
|
80,512 |
|
|
Accrued subcontractors and other direct costs |
|
|
45,110 |
|
|
|
78,842 |
|
|
Accrued expenses and other current liabilities |
|
|
77,318 |
|
|
|
100,908 |
|
|
Income taxes payable |
|
|
2,402 |
|
|
|
— |
|
|
Total Current Liabilities |
|
|
383,328 |
|
|
|
427,027 |
|
|
Long-term Liabilities: |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
314,451 |
|
|
|
303,214 |
|
|
Operating lease liabilities - non-current |
|
|
106,551 |
|
|
|
115,614 |
|
|
Deferred income taxes |
|
|
36,966 |
|
|
|
34,330 |
|
|
Other long-term liabilities |
|
|
38,230 |
|
|
|
40,144 |
|
|
Total Liabilities |
|
|
879,526 |
|
|
|
920,329 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
Preferred stock, par value $.001; 5,000,000 shares authorized; none issued |
|
|
— |
|
|
|
— |
|
|
Common stock, par value $.001; 70,000,000 shares authorized; 23,461,587 and 23,305,255 shares issued at March 31, 2021 and December 31, 2020, respectively; 18,859,608 and 18,909,983 shares outstanding at March 31, 2021 and December 31, 2020, respectively |
|
|
23 |
|
|
|
23 |
|
|
Additional paid-in capital |
|
|
372,420 |
|
|
|
369,058 |
|
|
Retained earnings |
|
|
604,441 |
|
|
|
588,731 |
|
|
Treasury stock, 4,601,979 and 4,395,272 shares at March 31, 2021 and December 31, 2020, respectively |
|
|
(214,325 |
) |
|
|
(196,745 |
) |
|
Accumulated other comprehensive loss |
|
|
(11,326 |
) |
|
|
(14,106 |
) |
|
Total Stockholders’ Equity |
|
|
751,233 |
|
|
|
746,961 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
1,630,759 |
|
|
$ |
1,667,290 |
|
10
ICF International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
(in thousands) |
|
2021 |
|
|
2020 |
|
||
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
18,351 |
|
|
$ |
10,612 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
5,334 |
|
|
|
444 |
|
|
Deferred income taxes |
|
|
1,838 |
|
|
|
4,756 |
|
|
Non-cash equity compensation |
|
|
3,275 |
|
|
|
3,826 |
|
|
Depreciation and amortization |
|
|
8,285 |
|
|
|
8,032 |
|
|
Non-cash lease expense |
|
|
(1,143 |
) |
|
|
(418 |
) |
|
Facilities consolidation reserve |
|
|
(75 |
) |
|
|
(71 |
) |
|
Amortization of debt issuance costs |
|
|
155 |
|
|
|
246 |
|
|
Impairment of long-lived assets |
|
|
303 |
|
|
|
— |
|
|
Other adjustments, net |
|
|
457 |
|
|
|
(348 |
) |
|
Changes in operating assets and liabilities, net of the effects of acquisitions: |
|
|
|
|
|
|
|
|
|
Net contract assets and liabilities |
|
|
(19,750 |
) |
|
|
(17,349 |
) |
|
Contract receivables |
|
|
2,531 |
|
|
|
40,488 |
|
|
Prepaid expenses and other assets |
|
|
2,016 |
|
|
|
(1,070 |
) |
|
Accounts payable |
|
|
(354 |
) |
|
|
(49,200 |
) |
|
Accrued salaries and benefits |
|
|
4,715 |
|
|
|
4,453 |
|
|
Accrued subcontractors and other direct costs |
|
|
(33,466 |
) |
|
|
(10,326 |
) |
|
Accrued expenses and other current liabilities |
|
|
8,303 |
|
|
|
(5,835 |
) |
|
Income tax receivable and payable |
|
|
3,924 |
|
|
|
(2,996 |
) |
|
Other liabilities |
|
|
262 |
|
|
|
(476 |
) |
|
Net Cash Provided by (Used in) Operating Activities |
|
|
4,961 |
|
|
|
(15,232 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
|
Capital expenditures for property and equipment and capitalized software |
|
|
(3,595 |
) |
|
|
(4,704 |
) |
|
Payments for business acquisitions, net of cash acquired |
|
|
— |
|
|
|
(253,021 |
) |
|
Net Cash Used in Investing Activities |
|
|
(3,595 |
) |
|
|
(257,725 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|
|
Advances from working capital facilities |
|
|
185,755 |
|
|
|
744,331 |
|
|
Payments on working capital facilities |
|
|
(174,674 |
) |
|
|
(389,776 |
) |
|
Receipt of restricted contract funds |
|
|
451 |
|
|
|
— |
|
|
Payment of restricted contract funds |
|
|
(27,081 |
) |
|
|
— |
|
|
Debt issue costs |
|
|
— |
|
|
|
(2,081 |
) |
|
Proceeds from exercise of options |
|
|
2,702 |
|
|
|
37 |
|
|
Dividends paid |
|
|
(2,642 |
) |
|
|
(2,639 |
) |
|
Net payments for stock issuances and buybacks |
|
|
(17,104 |
) |
|
|
(23,998 |
) |
|
Payments on business acquisition liabilities |
|
|
(682 |
) |
|
|
— |
|
|
Net Cash (Used in) Provided by Financing Activities |
|
|
(33,275 |
) |
|
|
325,874 |
|
|
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash |
|
|
745 |
|
|
|
(738 |
) |
|
|
|
|
|
|
|
|
|
|
|
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash |
|
|
(31,164 |
) |
|
|
52,179 |
|
|
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period |
|
|
81,987 |
|
|
|
6,482 |
|
|
Cash, Cash Equivalents, and Restricted Cash, End of Period |
|
$ |
50,823 |
|
|
$ |
58,661 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
2,637 |
|
|
$ |
3,892 |
|
|
Income taxes |
|
$ |
961 |
|
|
$ |
895 |
|
11
ICF International, Inc. and Subsidiaries
Supplemental Schedule(11) (12)
|
Revenue by client markets |
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
Energy, environment, and infrastructure |
|
|
43 |
% |
|
|
42 |
% |
|
Health, education, and social programs |
|
|
42 |
% |
|
|
42 |
% |
|
Safety and security |
|
|
8 |
% |
|
|
8 |
% |
|
Consumer and financial services |
|
|
7 |
% |
|
|
8 |
% |
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client type |
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
U.S. federal government |
|
|
46 |
% |
|
|
43 |
% |
|
U.S. state and local government |
|
|
15 |
% |
|
|
17 |
% |
|
International government |
|
|
10 |
% |
|
|
7 |
% |
|
Government |
|
|
71 |
% |
|
|
67 |
% |
|
Commercial |
|
|
29 |
% |
|
|
33 |
% |
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by contract mix |
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
Time-and-materials |
|
|
42 |
% |
|
|
47 |
% |
|
Fixed-price |
|
|
39 |
% |
|
|
37 |
% |
|
Cost-based |
|
|
19 |
% |
|
|
16 |
% |
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
(11) 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. |
||||
|
|
|
|
|
|
|
(12) Certain immaterial revenue percentages in the prior year have been reclassified due to minor adjustments and reclassifications. |
||||
12