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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, 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): February 27, 2024

 

 

ICF International, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware			001-33045	22-3661438
(State or other jurisdiction of incorporation)			(Commission File Number)	(IRS Employer 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 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. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition

On February 27, 2024, ICF International, Inc. (the “Company”) announced its financial results for the fourth quarter and full year ended December 31, 2023. 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 February 27, 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 April 12, 2024, to stockholders of record as of the close of business on March 22, 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 February 27, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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Exhibit Index

 

Exhibit Number		Description
99.1		Press Release dated February 27, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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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: February 27, 2024		By:	/s/ Barry Broadus
			Barry Broadus
			Chief Financial Officer

 

 

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Exhibit 99.1

NEWS RELEASE

ICF Reports Fourth Quarter and Full Year 2023 Results

— Full Year Double-Digit Revenue Growth Aligned With Strength of ICF’s Growth Markets —

— 2024 Guidance Anticipates High Single-Digit Organic Revenue Growth From Continuing Operations With Further Margin Expansion —

Fourth Quarter Highlights:

Full Year Highlights:

RESTON, Va.— Feb. 27, 2024 -- ICF (NASDAQ: ICFI), a global consulting and technology services provider, reported results for the fourth quarter and full year ended December 31, 2023.

Commenting on the results, John Wasson, chair and chief executive officer, said, “Fourth quarter results represented a solid finish to a year of double-digit revenue growth for ICF, which demonstrated the benefits of our expanded capabilities in key growth markets and the strength of our diversified business model. Revenues increased 1% year-on-year. Adjusting for the divestiture of our commercial marketing business lines during 2023, fourth quarter revenue increased 5% year-on-year, led by strong growth in revenues from commercial energy clients and our state and local and international government clients. U.S. federal government fourth quarter revenue was approximately flat with the prior year due to a $5.3 million reduction in subcontractor and other direct costs together with the anticipated roll-off of certain small business contracts held by companies we

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acquired. We expect year-on-year federal government revenue comparisons to increase substantially in the second half of 2024 and grow at a high single-digit rate for full year 2024.

“Full year 2023 revenue increased 10%, or by over 12% after adjusting for the divestitures, reflecting double-digit growth in revenues from both government and commercial clients. This performance was led by our growth markets, which in the aggregate accounted for approximately 80% of 2023 full year revenues from continuing operations, up from approximately 75% in 2022.

“We continued to increase profitability in the fourth quarter and full year, expanding adjusted EBITDA margin by 30 basis points and 10 basis points, respectively. This progress reflected the positive impact of higher utilization and our actions to reduce facility costs, along with the benefits of ICF’s greater scale.

“This also was another year of substantial contract awards, which reached $2.3 billion. Approximately 70% of 2023’s contract wins represented new business, underscoring ICF’s strong competitive positioning in areas of high demand from government and commercial clients. At year end, our business development pipeline was a robust $9.7 billion, providing a substantial runway for future growth.”

Fourth Quarter 2023 Results

Fourth quarter 2023 total revenue was $478.4 million, similar to the $475.6 million reported in the fourth quarter of 2022 and up 4.9% from last year’s fourth quarter revenues adjusted for the divestitures. Subcontractor and other direct costs were 27.0% of total revenues compared to 28.7% in last year’s fourth quarter. Operating income was $36.9 million, up from $23.0 million, and operating margin on total revenue expanded to 7.7% from 4.8%. Net income totaled $22.2 million, and diluted EPS was $1.16 per share, up from $8.9 million, and $0.47, respectively, in the fourth quarter of 2022. Fourth quarter 2023 net income and diluted EPS included $4.4 million, or $0.18 per share, in tax-effected net special charges.

Non-GAAP EPS increased 7.7% to $1.68 per share, from the $1.56 per share reported in the comparable period in 2022. EBITDA was $53.9 million, 46% above the $36.9 million reported for the year-ago period. Adjusted EBITDA increased 3.3% to $57.0 million, from $55.2 million for the comparable period in 2022.

Full Year 2023 Results

2023 total revenue was $1.96 billion, an increase of 10.3% from $1.78 billion reported in the previous year and 12.3% higher when adjusting for the 2023 divestitures. Subcontractor and other direct costs were 27.2% of total revenues compared to 27.8% in 2022. Full year 2023 net income was $82.6 million, or $4.35 per diluted share, inclusive of $17.6 million, or $0.71 per share of tax-effected net special charges. This represents increases of 28.6% and 28.7%, respectively, from net income of $64.2 million, or $3.38 per diluted share reported in 2022.

Non-GAAP EPS was $6.50 per share, up 12.7% from $5.77 per share. EBITDA increased 25.3% to $197.0 million, compared to $157.2 million reported in 2022. Adjusted EBITDA was $213.2 million, representing an 11.2% increase over $191.8 million in 2022.

Operating cash flow was $152.4 million in 2023. This compares to $162.2 million in the prior year, which benefited by approximately $30 million related to the timing of collections and disbursements.

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Backlog and New Business

Total backlog was $3.8 billion at the end of the fourth quarter of 2023. Funded backlog was $1.8 billion, or approximately 47% of the total backlog. The total value of contracts awarded in the 2023 fourth quarter was $611 million representing a book-to-bill ratio of 1.28, and trailing-twelve-month contract awards totaled $2.3 billion for a book-to-bill ratio of 1.18.

Government Revenue Fourth Quarter 2023 Highlights

Revenue from government clients was $368.6 million, up 4.0% year-over-year.

Key Government Contracts Awarded in the Fourth Quarter 2023

Notable government contract awards won in the fourth quarter of 2023 included:

Health and Social Programs

Digital Modernization

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Commercial Revenue Fourth Quarter 2023 Highlights

Commercial revenue was $109.8 million, compared to $121.3 million reported in the fourth quarter of 2022, up 7.6% compared to revenues of $101.7 million excluding divestitures in 2022.

Key Commercial Contracts Awarded in the Fourth Quarter

Notable commercial awards won in the fourth quarter of 2023 included:

Energy Markets

Other Commercial

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Dividend Declaration

On February 27, 2024, ICF declared a quarterly cash dividend of $0.14 per share, payable on April 12, 2024, to shareholders of record on March 22, 2024.

Recognitions

ICF received several important recognitions in 2023:

Summary and Outlook

“2023 represented a year of significant accomplishments for ICF. In addition to our strong financial performance, we completed the integration of SemanticBits, streamlined our business through the divestiture of our commercial marketing business and supported our key growth markets by adding new competencies in the fast-growing area of grid modernization and electrical engineering. We used our substantial operating cash flow to repay debt, ending the year with a net debt to EBITDA ratio of under 2.2. This gives us additional flexibility to execute our acquisition growth strategy, which has been a key element of the company’s success to date. ICF exited 2023 with a strengthened business and financial posture, positioning us for continued strong growth in 2024.

“Based on our strong backlog and current visibility, and the ongoing positive trends in our key growth markets, 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% 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 of the many recognitions that ICF received in 2023. Listed above, they are emblematic of our culture of inclusion, merit-based promotions and commitment to climate change, and highlight ICF’s deep domain expertise in energy and environment, public health and life sciences and sustainability. As we move ahead into 2024, we remain committed to maintaining the outstanding corporate culture that has been integral to our success,” Mr. Wasson concluded.

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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

 

 

 

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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)		2023				2022				2023				2022
Revenue		$	478,352			$	475,609			$	1,963,238			$	1,779,964
Direct costs			303,545				300,064				1,265,018				1,134,422
Operating costs and expenses:
Indirect and selling expenses			123,354				136,718				505,162				486,863
Depreciation and amortization			6,225				6,284				25,277				21,482
Amortization of intangible assets			8,307				9,494				35,461				28,435
Total operating costs and expenses			137,886				152,496				565,900				536,780
Operating income			36,921				23,049				132,320				108,762
Interest, net			(9,535	)			(9,186	)			(39,681	)			(23,281	)
Other income (expense)			2,407				(1,939	)			3,908				(1,501	)
Income before income taxes			29,793				11,924				96,547				83,980
Provision for income taxes			7,631				3,046				13,935				19,737
Net income		$	22,162			$	8,878			$	82,612			$	64,243
Earnings per Share:
Basic		$	1.18			$	0.47			$	4.39			$	3.41
Diluted		$	1.16			$	0.47			$	4.35			$	3.38
Weighted-average common shares outstanding:
Basic			18,823				18,855				18,802				18,818
Diluted			19,025				19,065				18,994				19,033
Cash dividends declared per common share		$	0.14			$	0.14			$	0.56			$	0.56
Other comprehensive (loss) income, net of tax			(1,516	)			6,009				(3,752	)			2,902
Comprehensive income, net of tax		$	20,646			$	14,887			$	78,860			$	67,145

 

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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)		2023				2022				2023				2022
Reconciliation of Revenue, Adjusted for Impact of Exited Business
Revenue		$	478,352			$	475,609			$	1,963,238			$	1,779,964
Less: Revenue from exited business (3)			(194	)			(19,951	)			(59,908	)			(84,369	)
Total Revenue, Adjusted for Impact of Exited Business		$	478,158			$	455,658			$	1,903,330			$	1,695,595
Reconciliation of EBITDA and Adjusted EBITDA (4)
Net income		$	22,162			$	8,878			$	82,612			$	64,243
Interest, net			9,535				9,186				39,681				23,281
Provision for income taxes			7,631				3,046				13,935				19,737
Depreciation and amortization			14,532				15,778				60,738				49,917
EBITDA			53,860				36,888				196,966				157,178
Impairment of long-lived assets (5)			3,860				8,354				7,666				8,354
Acquisition and divestiture-related expenses (6)			74				920				4,759				6,441
Severance and other costs related to staff realignment (7)			1,911				1,134				6,366				6,302
Charges for facility consolidations and office closures (8)			608				5,034				3,187				5,034
Expenses related to the transfer to our new corporate headquarters (9)			—				2,640				—				8,287
Expenses related to our agreement for the sale of receivables (10)			—				240				—				240
Pre-tax gain from divestiture of a business (11)			(3,287	)			—				(5,712	)			—
Total Adjustments			3,166				18,322				16,266				34,658
Adjusted EBITDA		$	57,026			$	55,210			$	213,232			$	191,836
Net Income Margin Percent on Revenue (12)			4.6	%			1.9	%			4.2	%			3.6	%
EBITDA Margin Percent on Revenue (13)			11.3	%			7.8	%			10.0	%			8.8	%
Adjusted EBITDA Margin Percent on Revenue (13)			11.9	%			11.6	%			10.9	%			10.8	%
Reconciliation of Non-GAAP Diluted EPS (4)
U.S. GAAP Diluted EPS		$	1.16			$	0.47			$	4.35			$	3.38
Impairment of long-lived assets			0.20				0.44				0.40				0.44
Acquisition and divestiture-related expenses			—				0.05				0.25				0.34
Severance and other costs related to staff realignment			0.10				0.06				0.33				0.33
Expenses related to facility consolidations and office closures (14)			0.10				0.26				0.24				0.26
Expenses related to the transfer to our new corporate headquarters			—				0.14				—				0.44
Expenses related to our agreement for the sale of receivables			—				0.01				—				0.01
Pre-tax gain from divestiture of a business			(0.17	)			—				(0.30	)			—
Amortization of intangibles			0.44				0.50				1.87				1.49
Income tax effects of the adjustments (15)			(0.15	)			(0.37	)			(0.64	)			(0.92	)
Non-GAAP Diluted EPS		$	1.68			$	1.56			$	6.50			$	5.77

 

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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.
(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 cease-use of the leased facilities.
(9) These costs represent incremental non-cash lease expense associated with a straight-line rent accrual during the “free rent” period in the lease for our new corporate headquarters in Reston, Virginia. We took possession of the new facility during the fourth quarter of 2021, while also maintaining and incurring lease costs for the former headquarters in Fairfax, Virginia. The transition to the new corporate headquarters was completed in the fourth quarter of 2022.
(10) These costs include legal and structuring fees related to our 2022 Master Receivables Purchase Agreement with MUFG Bank, Ltd. put in place for the sale of our receivables.
(11) Includes pre-tax gain of $2.5 million and of $3.2 million from the divestitures of our U.S. commercial marketing and Canadian mobile text aggregation businesses.
(12) Net Margin Percent on Revenue was calculated by dividing net income by revenue.
(13) EBITDA Margin Percent and Adjusted EBITDA Margin Percent on Revenue were calculated by dividing the non-GAAP measure by the corresponding revenue.
(14) 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.
(15) Income tax effects were calculated using the effective tax rate, adjusted for discrete items, if any, of 21.1% and 25.5% for the three months ended December 31, 2023 and 2022, respectively, and 22.8% and 28.0% for the twelve months ended December 31, 2023 and 2022, respectively.

 

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ICF International, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

 

(in thousands, except share and per share amounts)		December 31, 2023				December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents		$	6,361			$	11,257
Restricted cash			3,088				1,711
Contract receivables, net			205,484				232,337
Contract assets			201,832				169,088
Prepaid expenses and other assets			28,055				40,709
Income tax receivable			2,337				11,616
Total Current Assets			447,157				466,718
Property and Equipment, net			75,948				85,402
Other Assets:
Goodwill			1,219,476				1,212,898
Other intangible assets, net			94,904				126,537
Operating lease - right-of-use assets			132,807				149,066
Other assets			41,480				51,637
Total Assets		$	2,011,772			$	2,092,258
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt		$	26,000			$	23,250
Accounts payable			134,503				135,778
Contract liabilities			21,997				25,773
Operating lease liabilities			20,409				19,305
Finance lease liabilities			2,522				2,381
Accrued salaries and benefits			88,021				85,991
Accrued subcontractors and other direct costs			45,645				45,478
Accrued expenses and other current liabilities			79,129				78,036
Total Current Liabilities			418,226				415,992
Long-term Liabilities:
Long-term debt			404,407				533,084
Operating lease liabilities - non-current			175,460				182,251
Finance lease liabilities - non-current			13,874				16,116
Deferred income taxes			26,175				68,038
Other long-term liabilities			56,045				23,566
Total Liabilities			1,094,187				1,239,047
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; 23,982,132 and 23,771,596 shares issued; and 18,845,521 and 18,883,050 shares outstanding at December 31, 2023 and 2022, respectively			24				23
Additional paid-in capital			421,502				401,957
Retained earnings			775,099				703,030
Treasury stock, 5,136,611 and 4,906,209 shares at December 31, 2023 and 2022, respectively			(267,155	)			(243,666	)
Accumulated other comprehensive loss			(11,885	)			(8,133	)
Total Stockholders’ Equity			917,585				853,211
Total Liabilities and Stockholders’ Equity		$	2,011,772			$	2,092,258

 

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ICF International, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

		Years ended
		December 31,
(in thousands)		2023				2022
Cash Flows from Operating Activities
Net income		$	82,612			$	64,243
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			1,164				248
Deferred income taxes and unrecognized income tax benefits			(17,634	)			7,428
Non-cash equity compensation			14,861				13,171
Depreciation and amortization			60,738				49,917
Facilities consolidation reserve			—				(317	)
Amortization of debt issuance costs			1,996				1,305
Impairment of long-lived assets			7,666				8,412
Gain on divestiture of a business			(7,590	)			—
Other adjustments, net			(1,368	)			1,283
Changes in operating assets and liabilities, net of the effects of acquisitions:
Net contract assets and liabilities			(38,422	)			(41,634	)
Contract receivables			20,939				19,732
Prepaid expenses and other assets			18,579				(20,737	)
Operating lease assets and liabilities, net			3,544				(1,466	)
Accounts payable			(1,489	)			30,003
Accrued salaries and benefits			2,175				(3,337	)
Accrued subcontractors and other direct costs			(269	)			6,965
Accrued expenses and other current liabilities			(4,757	)			24,742
Income tax receivable and payable			9,277				(1,526	)
Other liabilities			361				3,774
Net Cash Provided by Operating Activities			152,383				162,206
Cash Flows from Investing Activities
Capital expenditures for property and equipment and capitalized software			(22,337	)			(24,475	)
Payments for business acquisitions, net of cash acquired			(32,664	)			(237,280	)
Proceeds from working capital adjustments related to prior business acquisition			—				2,911
Proceeds from divestiture of a business			51,328				—
Net Cash Used in Investing Activities			(3,673	)			(258,844	)
Cash Flows from Financing Activities
Advances from working capital facilities			1,245,198				1,583,936
Payments on working capital facilities			(1,372,474	)			(1,446,125	)
Proceeds from other short-term borrowings			48,532				—
Repayments of other short-term borrowings			(41,653	)			—
Receipt of restricted contract funds			7,672				15,721
Payment of restricted contract funds			(8,084	)			(25,959	)
Debt issuance costs			—				(4,907	)
Payments of principal portion of finance leases			(2,438	)			—
Proceeds from exercise of options			279				602
Dividends paid			(10,537	)			(10,547	)
Net payments for stockholder issuances and buybacks			(19,083	)			(21,218	)
Payments on business acquisition liabilities			—				(1,132	)
Net Cash (Used in) Provided by Financing Activities			(152,588	)			90,371
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			359				(1,198	)
Decrease in Cash, Cash Equivalents, and Restricted Cash			(3,519	)			(7,465	)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period			12,968				20,433
Cash, Cash Equivalents, and Restricted Cash, End of Period		$	9,449			$	12,968
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Interest		$	34,093			$	22,782
Income taxes		$	26,190			$	16,476
Non-cash investing and financing transactions:
Tenant improvements funded by lessor		$	568			$	20,253
Acquisition of property and equipment through finance lease		$	337			$	18,319

 

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ICF International, Inc. and Subsidiaries

Supplemental Schedule(16)(17)

 

Revenue by client markets		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2023				2022				2023				2022
Energy, environment, infrastructure, and disaster recovery			44	%			40	%			41	%			40	%
Health and social programs			41	%			41	%			42	%			40	%
Security and other civilian & commercial			15	%			19	%			17	%			20	%
Total			100	%			100	%			100	%			100	%
Revenue by client type		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2023				2022				2023				2022
U.S. federal government			55	%			56	%			55	%			55	%
U.S. state and local government			16	%			14	%			16	%			15	%
International government			6	%			5	%			5	%			6	%
Government			77	%			75	%			76	%			76	%
Commercial			23	%			25	%			24	%			24	%
Total			100	%			100	%			100	%			100	%
Revenue by contract mix		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2023				2022				2023				2022
Time-and-materials			41	%			40	%			41	%			40	%
Fixed-price			46	%			47	%			45	%			45	%
Cost-based			13	%			13	%			14	%			15	%
Total			100	%			100	%			100	%			100	%

 

(16) 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.
(17) During the first quarter of 2023, we re-aligned our client markets from four to three and reclassified the 2022 percentages to conform to the current presentation.

 

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