ICF International Reports First Quarter 2007 Results



Fairfax, Virginia, May 14, 2007 -

ICF International, Inc. (NASDAQ: ICFI), a leading provider of consulting services and technology solutions to government and commercial clients, reported revenue and earnings growth for the first quarter ended March 31, 2007.

First Quarter Results

First quarter 2007 revenue was $151.7 million, an increase of 33.2 percent from the $113.9 million reported for the 2006 fourth quarter. Earnings from operations were $14.7 million, slightly below the $15.0 million reported for the prior quarter. Net income was $8.7 million, or $0.60 per diluted share, compared to net income of $9.2 million, or $0.65 per diluted share in the 2006 fourth quarter. In last year's first quarter, the Company had revenue of $53.4 million, earnings from operations of $3.2 million, and net income of $1.1 million, or $0.11 per diluted share. Revenue from The Road Home contract was $96.8 million in the first quarter of 2007. ICF was awarded this contract in June 2006 by the State of Louisiana's Office of Community Development.

"ICF continued its strong performance in the first quarter of 2007," said Sudhakar Kesavan, ICF Chairman and Chief Executive Officer. "We provided a broad portfolio of advisory and implementation services to a diverse group of government and corporate clients, and we accelerated implementation of The Road Home program to significantly increase the number of closings."

"Additionally, we succeeded in winning strategically important contracts in key markets, including homeland security, energy, and transportation, and in attracting top senior professionals with excellent credentials in the fields of strategic planning, information technology-based solutions, early education research, emergency management, and energy markets," added Mr. Kesavan.

Backlog and New Business Award Highlights

At the end of the first quarter, the Company had total backlog of $902 million, of which 75 percent was funded, compared to total backlog at the end of the 2006 fourth quarter of $969 million, of which 79 percent was funded. Backlog, excluding The Road Home contract, was $359 million at the end of the 2007 first quarter, up nine percent sequentially from comparable fourth quarter 2006 levels.

Contracts awarded in the first quarter of 2007 totaled $83 million. These awards are unrelated to The Road Home program.

Key competitive contracts won during the quarter included:

  • National Infrastructure Protection Plan. ICF was awarded a five-year, recompete contract valued at $22.1 million from the U.S. Department of Homeland Security, Office of Infrastructure to provide management, analytical, and technical consulting for mitigating risk by lowering vulnerabilities, deterring threats, and minimizing the consequences of terrorist attacks across the nation's 17 critical infrastructure and key resources sectors.
  • European Commission Climate Change. ICF was awarded a new contract with a €10 million (US$13 million) ceiling over four years to advise the European Commission's Environment Directorate-General on a range of atmospheric policy issues, including climate change and air quality, and their concomitant impacts on health and the environment.
  • Additions to Highway Capacity. ICF was awarded a new contract valued at $2.6 million to assist the U.S. Department of Transportation Research Board Strategic Highway Research Program in advancing highway performance and safety.
  • Energy Efficient Homes. ICF was awarded a two-year, recompete contract valued at $1.9 million to provide program design and implementation support to Southern California Edison's New Homes Program. The program's goal is to create high-performance homes that will lower homeowner energy bills while simultaneously reducing the strain on California energy supplies and improving local air quality.


"ICF continues to benefit from favorable business conditions, resulting from our extensive domain expertise in key markets and our ability to provide clients with complete project solutions. We anticipate 2007 to be a year of solid growth for the Company, characterized by accelerated execution of The Road Home program and increased business development activity focused on both traditional contracts and larger, longer-term awards," Mr. Kesavan said.

Based on currently available information, the Company expects second quarter 2007 revenue to range from $135 million to $145 million, and full year 2007 revenue to range from $530 million to $550 million. For both the quarter and the year, the Company seeks to earn net income equal to approximately five percent of revenues.

ICF International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands) 
    March 31, 2007   December 31, 2006
Current Assets:          
  Cash and cash equivalents $ 1,274   $ 2,997
  Contract receivables, net   155,354     110,548
  Prepaid expenses and other   3,062     2,659
  Deferred income taxes   3,270     2,494
Total Current Assets   162,960     118,698
Total property and equipment, net   5,204     5,388
Other assets:          
  Goodwill   91,661     83,833
  Other intangible assets   5,350     2,720
  Restricted cash   5,135     3,703
  Other assets   1,608     1,485
Total Assets $ 271,918   $ 215,827
Liabilities and Stockholders' Equity          
Current Liabilities:          
  Accounts payable $ 30,175   $ 19,455
  Accrued expenses   53,480     37,202
  Accrued salaries and benefits   17,607     17,727
  Deferred revenue   15,556     18,281
  Income taxes payable   6,115     3,682
Total current liabilities   122,933     96,347
Long-term liabilities:          
  Long-term debt 18,927     — 
  Deferred rent   1,605     1,599
  Deferred income taxes   1,240     1,324
  Other   2,599     2,610
Total Liabilities $ 147,304   $ 101,880
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;          
  14,134,611 and 13,933,074 issued; and 14,076,233 and 13,874,696          
  outstanding as of March 31, 2007, and December 31, 2006, respectively   14     14
  Additional paid-in capital   101,816     98,995
  Treasury stock, at cost   (428)     (428)
  Accumulated other comprehensive income    239     227
  Stockholder notes receivable   (540)     (562)
  Retained earnings   23,513     15,701
Total Stockholders’ Equity   124,614     113,947
Total Liabilities and Stockholders’ Equity $ 271,918   $ 215,827

ICF International, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
(in thousands, except per share amounts)
Three months ended
March 31,
Gross Revenue $ 151,713   $ 53,448
Direct Costs   108,152     31,626
Operating expenses:          
    Indirect and selling expenses   27,734     17,883
    Depreciation and amortization   1,167     772
        Total operating expenses   28,901     18,655
    Earnings from Operations   14,660     3,167
    Interest expense   (324)     (1,052)
    Other income   278     26
    Income before taxes   14,614     2,141
    Provision for income taxes   5,932     1,047
    Net income $ 8,682   $ 1,094
    Earnings per Share:          
        Basic $
  $ 0.12
        Diluted $
    Weighted-average Shares:          
        Basic   13,753     9,225
        Diluted   14,415     9,772

ICF International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
            Three months ended
March 31,
Cash Flows from Operating Activities  
  Net income $
  Adjustments to reconcile net income to net cash provided by operating activities:  
    Depreciation and amortization  
    Non-cash compensation  
    Accrued interest on stockholder notes  
    Deferred income taxes  
    Changes in operating assets and liabilities, net of the effect of acquisitions:  
      Contract receivables, net  
      Prepaid expenses and other  
      Accounts payable  
      Accrued expenses  
      Accrued salaries and benefits  
      Deferred revenue  
      Income tax payable  
      Deferred rent  
      Other liabilities  
  Net Cash Used in Operating Activities  
  Cash Flows from Investing Activities  
    Capital expenditures  
    Payments for trademark application  
    Capitalized software development costs  
    Additional payments for acquisition of Caliber Associates, Inc.  
    Payments for business acquisitions, net of cash acquired  
  Net Cash Used in Investing Activities  
  Cash Flows from Financing Activities  
    Payments on notes payable  
    Advances from working capital facilities  
    Payments on working capital facilities  
    Restricted cash  
    Debt issue costs  
    Exercise of options  
    Tax benefits of stock option exercises  
    Net proceeds from initial public offering  
    Net payments for stockholder issuances and buybacks  
    Payments received on stockholder notes  
  Net Cash Provided by (Used In) Financing Activities  
    Effect of Exchange Rate on Cash  
  Net (decrease) increase in cash and cash equivalents  
  Cash and cash equivalents, beginning of period  
  Cash and cash equivalents, end of period $
  Supplemental disclosure of cash flow information  
    Cash paid during the period for:  
      Interest $
      Income taxes $

To view the full release, including financial tables, download the PDF.



About ICF International

ICF International (NASDAQ: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 2,000 employees serve these clients worldwide. ICF's Web site is

Caution Concerning Forward-looking Statements

This document may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995—that is, statements related to future—not past—events, plans, and prospects. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “guidance,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “seek,” “should,” “will,” “would,” or similar words. You should read statements that contain these words carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial position, or state other forward-looking information, and are subject to factors that could cause actual results to differ materially from those anticipated. For ICF, particular uncertainties that could adversely or positively affect the Company’s future results include but are not limited to: risks related to the government contracting industry, including the timely approval of government budgets, changes in client spending priorities, and the results of government audits and investigations; risks related to our business, including our dependence on contracts with U.S. Federal Government agencies and departments and the State of Louisiana; continued good relations with these and other customers; success in competitive bidding on recompete and new contracts; performance by ICF and its subcontractors under our contract with the State of Louisiana, Office of Community Development, including but not limited to the risks of failure to achieve certain levels of program activities, termination, or material modification of the contract, and political uncertainties relating to The Road Home program; uncertainties as to whether revenues corresponding to the Company’s contract backlog will actually be received; the future of the energy sector of the global economy; our ability to attract and retain management and staff; strategic actions, including attempts to expand our service offerings and client base, the ability to make acquisitions, and the performance and future integration of acquired businesses; risks associated with operations outside the United States, including but not limited to international, regional, and national economic conditions, including the effects of terrorist activities, war, and currency fluctuations; and other risks and uncertainties disclosed in the Company’s filings with the Securities and Exchange Commission. These uncertainties may cause ICF’s actual future results to be materially different than those expressed in the Company’s forward-looking statements. ICF does not undertake to update its forward-looking statements.

For Immediate Release
Contact: Douglas Beck

Contact: Lynn Morgen / Betsy Brod
MBS Value Partners


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