[February 27, 2017] |
|
ICF Reports Fourth Quarter and Full Year 2016 Results
ICF (NASDAQ:ICFI), a consulting and technology services provider to
government and commercial clients around the world, reported results for
the fourth quarter and twelve months ended December 31, 2016.
"2016 was a year of solid execution for ICF in which we achieved
mid-single-digit organic revenue growth consistent with our
expectations. Revenue from commercial clients increased 4.8 percent,
driven by the strong performance of energy markets, which includes
energy efficiency programs for utilities, and modest year-on-year growth
in our marketing services. A similar 4.6 percent growth in our
government business reflected a 4.1 percent increase in federal
government revenue and double-digit growth in state and local government
revenue, which more than offset the anticipated decline in revenue from
international government business. Diluted earnings per share growth
outpaced revenue growth by a factor of four, demonstrating the strength
of our balanced portfolio and the benefit of reduced amortization
expense, a lower share count and a lower tax rate," said Sudhakar
Kesavan, ICF's Chairman and Chief Executive Officer.
"In the fourth quarter, we experienced slower-than-expected work flow on
certain federal government contracts and postponements of specific asset
valuation and M&A assignments in our commercial energy advisory group.
Strong performance in other areas, particularly energy efficiency and
state and local infrastructure programs, mostly offset the revenue
impact. However, reduced service revenue2 levels
resulted in fourth quarter diluted earnings per share being below our
guidance range, although earnings were markedly ahead of last year.
Since the beginning of 2017, we have seen a return to our expected
levels of activity in our federal government business and commercial
energy advisory work.
"ICF's business development programs continued to yield positive results
in 2016. It was a record year for us in terms of contract awards, with
the majority representing new business wins. We ended 2016 with a record
fourth quarter backlog, and the funded portion increased significantly
from 2015 levels, in part reflecting the greater mix of commercial
business," Mr. Kesavan noted.
Fourth Quarter 2016 Results
Fourth quarter 2016 revenue was $289.6 million, a 3.1 percent increase
from $280.8 million in the fourth quarter of 2015. Service revenue was
stable at approximately $207 million. Net income was $12.7 million in
the fourth quarter of 2016, or $0.65 per diluted share, up 18.2 percent
from $0.55 per diluted share in the prior year period. Non-GAAP EPS
increased 4.1 percent to $0.76 per diluted share in the fourth quarter
of 2016 compared to $0.73 in the prior year. EBITDA3 was
$29.5 million, up from $27.5 million in the fourth quarter of 2015.
Fourth quarter 2016 EBITDA margin was 10.2 percent, a 40 basis point
increase from the 9.8 percent reported in the comparable period last
year. Adjusted EBITDA4, which excludes special charges
related to severance for staff realignment, acquisition-related expenses
and international office closures of $0.4 million, was $29.9 million, or
10.3 percent of revenue, up from last year's $28.3 million or 10.1
percent of revenue.
Full Year 2016 Results
For 2016, revenue was $1.19 billion, up 4.7 percent over the $1.13
billion reported for full year 2015. Service revenue was $864.8 million,
or 1.8 percent above the prior year. Net income was $46.6 million,
or $2.40 per diluted share for full year 2016 compared to $39.4 million
or $2.00 per diluted share in the prior year. The increase in diluted
earnings per share represented a 20 percent year-on-year increase.
Non-GAAP EPS was $2.87 per share in 2016, an increase of 8.7 percent
from the $2.64 per share reported in 2015. For 2016, EBITDA was $111.9
million, a 3.0 percent increase as compared to $108.6 million for 2015.
Adjusted EBITDA in 2016 was $113.9 million, a 2.8 percent increase as
compared to $110.7 million for 2015. Adjusted EBITDA excluded special
charges related to severance for staff realignment, acquisition-related
expenses and international office closures of $2.0 million in 2016 and
$2.1 million in 2015.
Operating cash flow was $79.6 million for 2016 compared to $76.3 million
in 2015, a 4.3 percent increase. During 2016, the company used $52.1
million in cash to pay down debt and $11.9 million to repurchase company
shares.
Backlog and New Business Awards
Total backlog was $2.1 billion at the end of the fourth quarter of 2016.
Funded backlog was $1.0 billion, or approximately 48 percent of the
total backlog. The total value of contracts awarded in the 2016 fourth
quarter was $296 million, up 31 percent year-on-year. For full year
2016, contract awards were $1.5 billion, up 13 percent year-on-year and
representing a book-to-bill ratio of 1.26.
Government Business Fourth Quarter 2016 Highlights
-
U.S. federal government revenue, which accounted for 44 percent of
total revenue, fell 3.1 percent year-on-year to $128.1 million in the
fourth quarter of 2016. Federal government revenue accounted for 47
percent of total revenue in the fourth quarter of 2015.
-
U.S. state and local government revenue increased 16.4 percent
year-on-year and accounted for 11 percent of total revenue, compared
to 10 percent in the year-ago period.
-
International government revenue decreased by 11.5 percent
year-on-year and accounted for 7 percent of total revenue compared to
8 percent in the year-ago period.
Key Government Contracts Awarded in the Fourth Quarter
ICF was awarded more than 90 U.S. federal contracts and task orders and
more than 200 additional contracts from state and local and
international governments. The largest awards were:
-
Program Support: A contract with a ceiling of $19.6 million
with the U.S. Environmental Protection Agency's Office of
Transportation and Air Quality, to continue to provide analysis and
modeling related to mobile source fuels.
-
Technical Assistance: Four contracts with a combined value of
$14 million with the U.S. Department of Housing and Urban Development
to continue to provide technical assistance nationwide on Department
programs.
-
Program Support: A contract with a ceiling of $12 million with
the U.S. Environmental Protection Agency's Office of Water to continue
providing technical and regulatory support in establishing
health-protective criteria for water sources.
-
Cybersecurity: A contract modification with a ceiling of up to
$11.5 million with the U.S. Department of Defense to provide
cybersecurity services.
-
Infrastructure/Environmental Planning: Six new task orders with
a value of $11 million to provide
environment impact review and analyses, documentation and other
technical services for a California rail program.
-
Infrastructure/Environmental Planning: Task orders totaling
$4.4 million with a water resources agency in the Western U.S. to
provide environmental planning services.
-
Transportation: Two contracts with a value of $3.6 million with
the U.S. Department of Transportation National Highway Traffic Safety
Administration to provide analysis support for fuel economy standards
and survey research on tire pressure monitoring systems.
-
Regulatory Support: A $3.3 million contract with the U.S.
Department of Transportation Federal Motor Carrier Safety
Administration to provide broad regulatory support.
-
Program Support: A $3 million contract with the U.S. National
Park Service to provide sustainability and management services.
Other government contract wins with a value greater than $1 million
included: training and technical assistance, and research and evaluation
services, for the U.S. Department of Health and Human Services'
Administration for Children and Families; regulatory, operational,
communications, training, and other administrative and analytic support
for the U.S. Department of Homeland Security; policy and communications
support for the U.S. Department of Energy Oak Ridge National Laboratory;
program management services for the Defense Contract Management Agency;
support for block grant evaluations and the diabetes prevention program
at the Centers for Disease Control and Prevention; technology support
services for the Office of the Secretary of the Navy; change management
support for the U.S. Department of Veterans Affairs; and enterprise
strategy and management services for the U.S. Department of State's
Bureau of Consular Affairs.
Commercial Business Fourth Quarter 2016 Highlights
-
Commercial revenue was $110.0 million, 10.8 percent above the $99.3
million in last year's fourth quarter. Commercial revenue accounted
for 38 percent of total revenue in the fourth quarter of 2016,
compared to 35 percent of total revenue in the fourth quarter of 2015.
-
Marketing services accounted for 41 percent of commercial revenue.
Energy markets, which include energy efficiency programs for
utilities, represented 35 percent of commercial revenue.
Key Commercial Contracts Awarded in the Fourth Quarter
Commercial sales were $158.7 million in the fourth quarter of 2016, and
ICF was awarded more than 500 commercial projects globally during the
period. The largest awards were:
Energy Markets:
-
A $41 million contract with a major utility in the Southeastern U.S.
to continue to support residential, commercial and small business
energy efficiency programs and expand support of the utility's overall
demand side management portfolio.
-
A contract with a value of up to $11 million with a large consortium
of utilities in the Northeastern U.S. to provide energy efficiency
support services to the member utilities' new home construction
programs.
-
A contract with a value of $14.3 million with a major utility in the
Northwestern U.S. to design, develop and implement energy efficiency
program strategies for commercial buildings.
-
Three contracts with a combined value of $4.3 million with a major
utility in the Eastern U.S. to support residential, commercial and
industrial energy efficiency programs.
-
Multiple contracts with a combined value of $2.5 million with a
Western U.S. utility to perform various environmental studies and
support a residential energy efficiency program.
Marketing Services:
-
Two contracts with a combined value of $14.2 million with a major rail
transportation system in the U.S. to continue providing loyalty
program and digital solutions services.
-
A $6.4 million contract with a major national retail chain to continue
providing its customer loyalty program and communications services.
-
A $5 million contract with a major non-U.S. utility to deploy a
residential platform that will transform the customer experience
through offline and online education and engagement, rewards and
behavioral energy savings.
-
Multiple contracts with a combined value of $3.5 million with a
Fortune 500 health insurance provider to provide IT, program
management and marketing support.
Other commercial contract wins with a value of at least $1 million
included: customer loyalty program services for a national auto parts
chain, two national retail chains, a financial services company, and a
major international hotel chain; program support and communications
services for a number of U.S. utilities; brand and digital solutions
services for a national health insurer; marketing and digital solutions
services for a regional financial institution; marketing services for a
floor care product manufacturer; and public relations support and
digital solutions for a major manufacturer of access control products.
2016 Recognitions
ICF received several important recognitions in 2016, including:
-
Named to Forbes Magazine's 2016 "America's Best Midsize Employers" and
"Best Management Consulting Firms" lists.
-
Recognized with Corporate Leadership Award from Women in Technology
(WIT).
Summary and Outlook
"ICF ended 2016 with key measures of future performance, notably,
contract wins, backlog and business development pipeline at record
levels. In setting expectations for 2017, we have made certain
assumptions regarding the transition to a new administration,
particularly after a two-term president, that could affect federal
government revenue this year. Importantly, ICF is well positioned in
several key government priority areas, including infrastructure renewal
and resilience, energy, public health and veterans affairs. Similarly,
in our commercial business, we are executing on more than 150 energy
efficiency programs for over 40 utilities across the United States and
Canada, and we continue to leverage our marketing and communications
services across our client base.
"Based on our current visibility, we expect full year 2017 diluted
earnings per share to be in the range of $2.50 to $2.75 per share on
revenue ranging from $1.20 billion to $1.24 billion. Underpinning this
guidance are the following assumptions:
-
Revenue from commercial clients increases at a mid-single-digit rate;
-
Federal government revenue is comparable to 2016 levels or increases
at a low-single-digit rate;
-
Stable year-over-year revenue from state and local government clients;
-
A mid-single-digit decline in international government revenue;
-
Weighted average shares outstanding of approximately 19.4 million; and
-
A full year effective tax rate of no more than 38.5 percent.
"Operating cash flow for 2017 is expected to be in the range of $90
million to $100 million," Mr. Kesavan concluded.
About ICF
ICF (NASDAQ:ICFI) is a global consulting and technology services
provider with more than 5,000 professionals focused on making big things
possible for our clients. We are business analysts, public policy
experts, technologists, researchers, digital strategists, social
scientists and creatives. Since 1969, government and commercial clients
have worked with ICF to overcome their toughest challenges on issues
that matter profoundly to their success. Come engage with us at www.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 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.
1 Non-GAAP EPS is a non-GAAP measurement. A reconciliation of
all non-GAAP measurements is set forth below.
2, 3, 4 Service Revenue, EBITDA, and Adjusted EBITDA are
non-GAAP measurements. A reconciliation of all non-GAAP measurements is
set forth below.
|
ICF International, Inc. and Subsidiaries
|
Consolidated Statements of Comprehensive Income
|
(in thousands, except per share amounts)
|
|
|
|
|
Three months ended December 31,
|
|
|
Twelve months ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
289,559
|
|
|
$
|
280,805
|
|
|
$
|
1,185,097
|
|
|
$
|
1,132,232
|
|
Direct Costs
|
|
|
182,440
|
|
|
|
173,752
|
|
|
|
745,137
|
|
|
|
694,436
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect and selling expenses
|
|
|
77,655
|
|
|
|
79,533
|
|
|
|
328,048
|
|
|
|
329,159
|
|
Depreciation and amortization
|
|
|
4,405
|
|
|
|
4,164
|
|
|
|
16,638
|
|
|
|
16,222
|
|
Amortization of intangible assets
|
|
|
3,094
|
|
|
|
4,318
|
|
|
|
12,481
|
|
|
|
17,184
|
|
Total operating costs and expenses
|
|
|
85,154
|
|
|
|
88,015
|
|
|
|
357,167
|
|
|
|
362,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
21,965
|
|
|
|
19,038
|
|
|
|
82,793
|
|
|
|
75,231
|
|
Interest expense
|
|
|
(2,158
|
)
|
|
|
(2,345
|
)
|
|
|
(9,470
|
)
|
|
|
(10,072
|
)
|
Other income (expense)
|
|
|
234
|
|
|
|
(86
|
)
|
|
|
1,184
|
|
|
|
(1,559
|
)
|
Income before income taxes
|
|
|
20,041
|
|
|
|
16,607
|
|
|
|
74,507
|
|
|
|
63,600
|
|
Provision for income taxes
|
|
|
7,368
|
|
|
|
5,857
|
|
|
|
27,923
|
|
|
|
24,231
|
|
Net income
|
|
$
|
12,673
|
|
|
$
|
10,750
|
|
|
$
|
46,584
|
|
|
$
|
39,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.67
|
|
|
$
|
0.56
|
|
|
$
|
2.45
|
|
|
$
|
2.04
|
|
Diluted
|
|
$
|
0.65
|
|
|
$
|
0.55
|
|
|
$
|
2.40
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average Shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,988
|
|
|
|
19,102
|
|
|
|
18,989
|
|
|
|
19,335
|
|
Diluted
|
|
|
19,512
|
|
|
|
19,373
|
|
|
|
19,416
|
|
|
|
19,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of tax
|
|
|
(342
|
)
|
|
|
(521
|
)
|
|
|
(4,324
|
)
|
|
|
(5,010
|
)
|
Gain on sale of interest rate hedging agreement, net of tax
|
|
|
2,175
|
|
|
|
-
|
|
|
|
2,175
|
|
|
|
-
|
|
Total other comprehensive income (loss), net of tax
|
|
|
1,833
|
|
|
|
(521
|
)
|
|
|
(2,149
|
)
|
|
|
(5,010
|
)
|
Comprehensive income, net of tax
|
|
$
|
14,506
|
|
|
$
|
10,229
|
|
|
$
|
44,435
|
|
|
$
|
34,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ICF International, Inc. and Subsidiaries
|
Reconciliation of Non-GAAP financial measures
|
(in thousands, except per share amounts)
|
|
|
|
|
Three months ended December 31,
|
|
|
Twelve months ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Service Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
289,559
|
|
|
$
|
280,805
|
|
|
$
|
1,185,097
|
|
|
$
|
1,132,232
|
|
Subcontractor and Other Direct Costs(1)
|
|
|
(82,765
|
)
|
|
|
(73,798
|
)
|
|
|
(320,332
|
)
|
|
|
(283,110
|
)
|
Service Revenue
|
|
$
|
206,794
|
|
|
$
|
207,007
|
|
|
$
|
864,765
|
|
|
$
|
849,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
12,673
|
|
|
$
|
10,750
|
|
|
$
|
46,584
|
|
|
$
|
39,369
|
|
Other (income) expense
|
|
|
(234
|
)
|
|
|
86
|
|
|
|
(1,184
|
)
|
|
|
1,559
|
|
Interest expense
|
|
|
2,158
|
|
|
|
2,345
|
|
|
|
9,470
|
|
|
|
10,072
|
|
Provision for income taxes
|
|
|
7,368
|
|
|
|
5,857
|
|
|
|
27,923
|
|
|
|
24,231
|
|
Depreciation and amortization
|
|
|
7,499
|
|
|
|
8,482
|
|
|
|
29,119
|
|
|
|
33,406
|
|
EBITDA
|
|
|
29,464
|
|
|
|
27,520
|
|
|
|
111,912
|
|
|
|
108,637
|
|
Acquisition-related expenses(2)
|
|
|
20
|
|
|
|
-
|
|
|
|
20
|
|
|
|
189
|
|
Special charges related to severance for staff realignment
|
|
|
226
|
|
|
|
606
|
|
|
|
1,701
|
|
|
|
1,118
|
|
Special charges related to office closures
|
|
|
150
|
|
|
|
127
|
|
|
|
258
|
|
|
|
796
|
|
Adjusted EBITDA
|
|
$
|
29,860
|
|
|
$
|
28,253
|
|
|
$
|
113,891
|
|
|
$
|
110,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
0.65
|
|
|
$
|
0.55
|
|
|
$
|
2.40
|
|
|
$
|
2.00
|
|
Acquisition-related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Special charges related to severance for staff realignment
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.09
|
|
|
|
0.06
|
|
Special charges related to office closures
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.09
|
|
Amortization of intangibles
|
|
|
0.16
|
|
|
|
0.22
|
|
|
|
0.64
|
|
|
|
0.87
|
|
Income tax effects(3)
|
|
|
(0.07
|
)
|
|
|
(0.08
|
)
|
|
|
(0.28
|
)
|
|
|
(0.39
|
)
|
Non-GAAP EPS
|
|
$
|
0.76
|
|
|
$
|
0.73
|
|
|
$
|
2.87
|
|
|
$
|
2.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Subcontractor and Other Direct Costs exclude Direct Labor and Fringe
Costs.
|
(2)
|
|
Acquisition-related expenses include expenses related to closed
acquisitions.
|
(3)
|
|
Income tax effects were calculated using an effective U.S. GAAP
tax rate of 36.8% and 35.3% for the fourth quarter of fiscal year
2016 and 2015, respectively, and an effective tax rate of 37.5%
and 38.1% for the fiscal year 2016 and 2015, respectively.
|
|
|
|
|
ICF International, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
(in thousands, except share and per share amounts)
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
6,042
|
|
|
$
|
7,747
|
|
Contract receivables, net
|
|
|
281,365
|
|
|
|
256,965
|
|
Prepaid expenses and other
|
|
|
11,724
|
|
|
|
10,032
|
|
Total current assets
|
|
|
299,131
|
|
|
|
274,744
|
|
Total property and equipment, net of accumulated depreciation of
$74,706 and $71,203 as of December 31, 2016 and December 31, 2015,
respectively
|
|
|
40,484
|
|
|
|
45,425
|
|
Other assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
683,683
|
|
|
|
687,404
|
|
Other intangible assets, net
|
|
|
46,129
|
|
|
|
58,899
|
|
Restricted cash
|
|
|
1,843
|
|
|
|
1,362
|
|
Other assets
|
|
|
14,301
|
|
|
|
12,456
|
|
Total Assets
|
|
$
|
1,085,571
|
|
|
$
|
1,080,290
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
70,586
|
|
|
$
|
63,738
|
|
Accrued salaries and benefits
|
|
|
44,003
|
|
|
|
43,118
|
|
Accrued expenses and other current liabilities
|
|
|
52,631
|
|
|
|
43,001
|
|
Deferred revenue
|
|
|
29,394
|
|
|
|
30,523
|
|
Income tax payable
|
|
|
106
|
|
|
|
2,604
|
|
Total current liabilities
|
|
|
196,720
|
|
|
|
182,984
|
|
Long-term liabilities:
|
|
|
|
|
|
|
Long-term debt
|
|
|
259,389
|
|
|
|
311,532
|
|
Deferred rent
|
|
|
15,600
|
|
|
|
15,785
|
|
Deferred income taxes
|
|
|
39,114
|
|
|
|
33,326
|
|
Other
|
|
|
8,744
|
|
|
|
13,387
|
|
Total Liabilities
|
|
|
519,567
|
|
|
|
557,014
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
Preferred stock, par value $.001 per share; 5,000,000 shares
authorized; none issued
|
|
|
-
|
|
|
|
-
|
|
Common stock, par value $.001 per share; 70,000,000 shares
authorized; 21,663,432 and 21,313,472 issued; and 19,021,262 and
19,032,054 outstanding as of December 31, 2016 and December 31,
2015, respectively
|
|
|
22
|
|
|
|
21
|
|
Additional paid-in capital
|
|
|
292,427
|
|
|
|
280,113
|
|
Retained earnings
|
|
|
371,890
|
|
|
|
325,306
|
|
Treasury stock
|
|
|
(88,695
|
)
|
|
|
(74,673
|
)
|
Accumulated other comprehensive loss
|
|
|
(9,640
|
)
|
|
|
(7,491
|
)
|
Total Stockholders' Equity
|
|
|
566,004
|
|
|
|
523,276
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
1,085,571
|
|
|
$
|
1,080,290
|
|
|
|
|
|
|
|
|
|
|
|
ICF International, Inc. and Subsidiaries
|
Consolidated Statements of Cash Flows
|
(in thousands)
|
|
|
|
|
Twelve months ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
$
|
46,584
|
|
|
$
|
39,369
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Bad debt expense
|
|
|
1,089
|
|
|
|
268
|
|
Deferred income taxes
|
|
|
6,535
|
|
|
|
2,106
|
|
Non-cash equity compensation
|
|
|
9,082
|
|
|
|
10,850
|
|
Depreciation and amortization
|
|
|
29,119
|
|
|
|
33,406
|
|
Deferred rent
|
|
|
(43
|
)
|
|
|
1,002
|
|
Proceeds from hedge sale
|
|
|
3,600
|
|
|
|
-
|
|
Other adjustments, net
|
|
|
(637
|
)
|
|
|
1,786
|
|
Changes in operating assets and liabilities, net of the effect of
acquisitions:
|
|
|
|
Contract receivables, net
|
|
|
(29,020
|
)
|
|
|
(2,713
|
)
|
Prepaid expenses and other assets
|
|
|
(2,792
|
)
|
|
|
(170
|
)
|
Accounts payable
|
|
|
8,941
|
|
|
|
(2,374
|
)
|
Accrued salaries and benefits
|
|
|
1,140
|
|
|
|
(13,208
|
)
|
Accrued expenses and other current liabilities
|
|
|
10,252
|
|
|
|
(4,522
|
)
|
Deferred revenue
|
|
|
(707
|
)
|
|
|
2,367
|
|
Income tax receivable and payable
|
|
|
(2,447
|
)
|
|
|
8,356
|
|
Restricted cash
|
|
|
(494
|
)
|
|
|
116
|
|
Other liabilities
|
|
|
(639
|
)
|
|
|
(320
|
)
|
Net cash provided by operating activities
|
|
|
79,563
|
|
|
|
76,319
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Capital expenditures for property and equipment and capitalized
software
|
|
|
(13,791
|
)
|
|
|
(12,682
|
)
|
Payments for business acquisitions, net of cash received
|
|
|
(100
|
)
|
|
|
(1,818
|
)
|
Net cash used in investing activities
|
|
|
(13,891
|
)
|
|
|
(14,500
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Advances from working capital facilities
|
|
|
478,584
|
|
|
|
381,745
|
|
Payments on working capital facilities
|
|
|
(530,728
|
)
|
|
|
(420,265
|
)
|
Payments on capital expenditure obligations
|
|
|
(4,041
|
)
|
|
|
(3,289
|
)
|
Debt issue costs
|
|
|
-
|
|
|
|
(17
|
)
|
Proceeds from exercise of options
|
|
|
3,034
|
|
|
|
932
|
|
Tax benefits of stock option exercises and award vesting
|
|
|
-
|
|
|
|
1,307
|
|
Net payments for stockholder issuances and buybacks
|
|
|
(13,823
|
)
|
|
|
(24,861
|
)
|
Net cash used in financing activities
|
|
|
(66,974
|
)
|
|
|
(64,448
|
)
|
Effect of exchange rate changes on cash
|
|
|
(403
|
)
|
|
|
(1,746
|
)
|
Increase (decrease) in cash and cash equivalents
|
|
|
(1,705
|
)
|
|
|
(4,375
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
7,747
|
|
|
|
12,122
|
|
Cash and cash equivalents, end of period
|
|
$
|
6,042
|
|
|
$
|
7,747
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
Interest
|
|
$
|
8,937
|
|
|
$
|
9,845
|
|
Income taxes
|
|
$
|
21,094
|
|
|
$
|
16,315
|
|
|
|
|
|
|
|
|
Non-cash investing and financing transactions:
|
|
|
|
|
|
|
Capital expenditure obligations
|
|
$
|
-
|
|
|
$
|
12,870
|
|
|
|
|
|
|
|
|
|
|
|
ICF International, Inc. and Subsidiaries
|
Supplemental Schedule
|
|
|
Revenue by market(1)
|
|
Three Months Ended December 31,
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy, environment, and infrastructure
|
|
39
|
%
|
|
37
|
%
|
|
|
39
|
%
|
|
37
|
%
|
Health, education, and social programs
|
|
43
|
%
|
|
45
|
%
|
|
|
43
|
%
|
|
45
|
%
|
Safety and security
|
|
8
|
%
|
|
8
|
%
|
|
|
8
|
%
|
|
8
|
%
|
Consumer and financial
|
|
10
|
%
|
|
10
|
%
|
|
|
10
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by client(1)
|
|
Three Months Ended December 31,
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. federal government
|
|
44
|
%
|
|
47
|
%
|
|
|
48
|
%
|
|
48
|
%
|
U.S. state and local government
|
|
11
|
%
|
|
10
|
%
|
|
|
11
|
%
|
|
10
|
%
|
International government
|
|
7
|
%
|
|
8
|
%
|
|
|
6
|
%
|
|
7
|
%
|
Government
|
|
62
|
%
|
|
65
|
%
|
|
|
65
|
%
|
|
65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
38
|
%
|
|
35
|
%
|
|
|
35
|
%
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by contract(1)
|
|
Three Months Ended December 31,
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time-and-materials
|
|
44
|
%
|
|
43
|
%
|
|
|
43
|
%
|
|
43
|
%
|
Fixed-price
|
|
40
|
%
|
|
38
|
%
|
|
|
39
|
%
|
|
38
|
%
|
Cost-based
|
|
16
|
%
|
|
19
|
%
|
|
|
18
|
%
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Certain revenue amounts in the prior year have been reclassified
due to minor adjustments and to provide consistent presentation
with current year balances.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170227006508/en/
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|