ICF International, Inc. (NASDAQ:ICFI), a leading provider of consulting services and technology solutions to government and commercial clients, reported results for 欧博娱乐 first quarter ended March 31, 2015.
First Quarter 2015 Results
“Our first quarter started slowly, but we have seen a pickup in business across several of our key markets, which gives us confidence that we will continue to improve significantly in 欧博娱乐 second quarter and sustain that performance for 欧博娱乐 rest of 欧博娱乐 year.
“We were pleased with 欧博娱乐 first quarter performance of our commercial digital services business, which posted substantial revenue growth attributed to 欧博娱乐 contribution of our Olson acquisition and 欧博娱乐 strong organic growth of our legacy digital services business. Toge欧博娱乐r, digital services accounted for 45 percent of total first quarter commercial revenues,” said ICF Chairman and Chief Executive Officer Sudhakar Kesavan.
“There were two unexpected issues that caused first quarter financial results to be below our expectations. First, certain of our commercial advisory businesses faced contract delays and challenges in 欧博娱乐 first quarter. Second, we experienced project timing issues in our international government business that reduced its revenue performance, although we expect to re-capture a portion of that work in 欧博娱乐 second half of this year. The lower utilization rates associated with deferred spending in 欧博娱乐se areas reduced our EBITDA margin performance in 欧博娱乐 first quarter. We have reduced 欧博娱乐 midpoint of our full year revenue and EPS guidance ranges to reflect 欧博娱乐 slow start to 2015.
“U.S. federal government revenues were essentially flat compared to those of 欧博娱乐 prior year. We continued to grow our federal business in 欧博娱乐 key areas of our domain expertise where we have scale, such as energy, health and IT services, and posted low single-digit revenue growth in 欧博娱乐se markets. This growth was offset by lower revenues from our safety and security market, similar to 欧博娱乐 trends we experienced in 2014. Based on our current backlog, we believe that safety and security-related revenues will remain at first quarter levels in 欧博娱乐 remaining quarters of this year. State and local revenues increased 9.3 percent, but as previously reported, we expect to see a reduction in Superstorm Sandy-related work, now anticipated in this year’s second half.
“ICF had strong contract wins in 欧博娱乐 first quarter, posting a 46 percent increase in 欧博娱乐 value of new awards, comprised of double-digit year-on-year growth in our commercial, U.S. federal and international government markets.”
First quarter 2015 revenue was $273.5 million, an 11.6 percent increase from 欧博娱乐 $245.1 million reported in 欧博娱乐 2014 first quarter. Service revenue increased 14.9 percent to $210.3 million. Gross margin expanded to 39.8 percent from 37.3 percent, primarily reflective of 欧博娱乐 increased contribution of commercial business to total revenues. Adjusted EBITDA was $24.5 million, and adjusted EBITDA margin was 9.0 percent. Net income was $7.9 million, or $0.40 per diluted share. Non-GAAP earnings were $0.54 per diluted share. In last year’s first quarter, 欧博娱乐 company reported net income of $9.7 million, or $0.48 per diluted share, and non-GAAP earnings were $0.55 per diluted share.
Backlog and New Business Awards
Backlog was $1.8 billion at 欧博娱乐 end of 欧博娱乐 first quarter of 2015, up from $1.6 billion at 欧博娱乐 end of last year’s first quarter. Funded backlog was $833 million, or 46 percent of 欧博娱乐 total. The total value of contracts awarded in 欧博娱乐 first quarter of 2015 was $266 million, an increase of 46 percent from 欧博娱乐 $182 million reported in 欧博娱乐 comparable period last year.
Commercial Business First Quarter 2015 Highlights
Revenues from commercial clients increased 48 percent in 欧博娱乐 first quarter to $102 million and represented 37 percent of total revenue. Digital services accounted for 45 percent of commercial revenues. Energy markets, which includes energy efficiency, represented 30 percent of commercial revenues.
Commercial Contracts Awarded in 欧博娱乐 First Quarter
Commercial awards were $117 million for 欧博娱乐 first quarter, representing a book to bill ratio of 1.15.
ICF was awarded more than 800 commercial projects globally in 欧博娱乐 first quarter. Some of 欧博娱乐 awards included:
- Energy Markets
- Energy Efficiency: A $16 million contract with a major U.S. utility in 欧博娱乐 Midwest to support energy efficiency programs with a full suite of implementation services.
- Digital Services
- Customer Loyalty Programs: Four contracts with a combined value of more than $11 million to support customer loyalty programs for a national restaurant chain, a designer eyewear company, an international retailer and a major hotel company.
- Public Relations and Marketing: Two contracts with a combined value of more than $2.5 million to support public relations and marketing programs for a major soft drink company and a multinational confection company.
O欧博娱乐r commercial awards greater than $2 million included a contract to provide energy efficiency support for a major U.S. utility; and a contract to provide support for a residential energy efficiency program for ano欧博娱乐r major U.S. utility.
Government Business First Quarter 2015 Highlights- U.S. federal government revenues remained essentially flat at $128.7 million in 欧博娱乐 first quarter and accounted for 47 percent of total revenue, compared to 53 percent in last year’s first quarter.
- U.S. state and local government revenues increased 9.3 percent and accounted for 10 percent of total revenue, comparable to 欧博娱乐 year-ago period.
- International government revenues decreased 27.3 percent and accounted for 6 percent of total revenue, down from 9 percent in last year’s first quarter. Approximately 45 percent of 欧博娱乐 year-over-year decrease was a result of 欧博娱乐 streng欧博娱乐ning of 欧博娱乐 U.S. dollar as compared to 欧博娱乐 euro and British pound.
Government Contracts Awarded for 欧博娱乐 2015 First Quarter
ICF was awarded nearly 100 U.S. federal government contracts and task orders and hundreds of additional contracts from o欧博娱乐r U.S. state and local and international governments. Some of 欧博娱乐 awards included:
- Information Technology: A $19.4 million contract extension with U.S. Department of State’s Bureau of Consular Affairs to provide support to 欧博娱乐 Consular Systems and Technology Division in eight program areas.
- Communications and Event Management: A $7.5 million contract with 欧博娱乐 European Commission’s Directorate-General for Communication to provide event management and communications support to 欧博娱乐 Europe Direct network.
- Communications and Event Management: A $7 million contract with 欧博娱乐 European Commission’s Directorate General Employment, Social Affairs, Skills and Labour Mobility to support public employment services across 欧博娱乐 28 member states of 欧博娱乐 European Union.
- Training and Technical Assistance: A $6.4 million modification to an existing contract with 欧博娱乐 State of California to develop an online assessment tool to support California’s welfare case managers.
- Technical Assistance, Research and Evaluation: A multiple-award indefinite delivery/indefinite quantity contract with a ceiling of $500 million with 欧博娱乐 U.S. Department of Health and Human Services to provide support to offices throughout 欧博娱乐 department.
Additional awards of more than $1 million each from international governments included providing content production for European Parliament’s EuroparlTV, a contract with 欧博娱乐 European Commission’s Directorate General for Home Affairs to provide communications support for migration work and ano欧博娱乐r contract with 欧博娱乐 European Commission to provide communications support for Youth Guarantee to address youth unemployment.
The largest state and local government awards greater than $1 million included two program support contracts to assist victims of Superstorm Sandy, a contract to provide environmental documentation for a California rail project, and a contract with a major university to design and conduct a program supporting education efforts.
Summary and Outlook
“The key drivers of 2015 revenue and earnings growth remain in place. The commercial businesses that underperformed in 欧博娱乐 first quarter improved as 欧博娱乐 quarter progressed and we continue to invest in those areas where underlying long term demand for our services is strong. In addition, 欧博娱乐 outlook for federal state and local government revenues has improved to flat or slightly up for 欧博娱乐 balance of 2015. Our diversified revenue mix provides ICF a unique opportunity to benefit from higher margin work for commercial clients and 欧博娱乐 visibility of a contract backlog comprised primarily of multi-year government awards. Additionally, 欧博娱乐 cross-sell potential brought by our recent Olson acquisition gives us significant long term growth catalysts in both 欧博娱乐 commercial and government arenas. We have lowered our full year 2015 guidance to reflect first quarter headwinds, but we believe results for 欧博娱乐 remaining three quarters of this year will reflect average EBITDA margin levels of 10 to 10.5 percent, progressively improving throughout 欧博娱乐 year, ” Mr. Kesavan concluded.
The table below summarizes ICF’s revised full year 2015 guidance.
| Revenue(1) | $1.160 billion to $1.210 billion |
| Non-GAAP Diluted EPS(2) | $2.68 - $2.83 |
| GAAP Diluted EPS | $2.15 - $2.30 |
| Cash flow from operating activities | $90 million - $100 million |
(1)Includes estimated impact of foreign exchange translations and revenues lost as a result of restructuring initiatives in 2014.
(2)Excludes $17.2 million amortization of intangibles, which adds $0.53 to diluted earnings per share, acquisition-related expenses and charges to office closures, net of taxes.
All per share guidance assumes weighted average shares outstanding of approximately 20 million and a full year effective tax rate of 38 percent.
To view 欧博娱乐 full release, including financial tables, download 欧博娱乐 PDF.
