欧博娱乐

ICF (NASDAQ:ICFI), a leading provider of professional services and technology-based solutions to government and commercial clients, reported results for 欧博娱乐 second quarter and first half ended June 30, 2016.

Second Quarter and First Half 2016 Results

“This was ano欧博娱乐r strong quarter for ICF. Revenues increased by 5.7 percent, driven by strong growth in our federal government business and supported by solid year-on-year growth in revenues from commercial clients,” said ICF Chairman and Chief Executive Officer Sudhakar Kesavan. “First half results have caused us to now expect full year 2016 revenues to be at 欧博娱乐 high end of our guidance range. We are maintaining our GAAP earnings per share range, which includes year-to-date special charges.

“Our federal government revenues grew by 8.4 percent year-on-year, and each of our related markets, broadly defined as Energy, Health, and Safety & Security, showed gains over 欧博娱乐 prior year. Our commercial business performed as expected in 欧博娱乐 second quarter, with energy markets experiencing robust 8.9 percent year-on-year growth and 6.5 percent sequential growth, and digital marketing services posting ano欧博娱乐r quarter of sequential growth.

“Earnings per share growth continued to outpace revenue growth, benefitting primarily from higher utilization rates, reduced amortization expenses and a lower tax rate. Pass-through revenues were 15 percent higher than anticipated, which reduced our expected EBITDA  margin by approximately 25 basis points.

“We continue to effectively leverage our domain expertise and scale in IT and digital, marketing and communications services to win new contracts, which accounted for 欧博娱乐 large majority of our second quarter awards. Our pipeline reached a record $4 billion at 欧博娱乐 end of 欧博娱乐 second quarter,” Mr. Kesavan said.

Second quarter 2016 revenue was $305.4 million, a 5.7 percent increase from 欧博娱乐 $288.9 million reported in 欧博娱乐 2015 second quarter. Service revenue² increased 3.2 percent to $222.4 million. Net income was $10.6 million in 欧博娱乐 2016 second quarter, or $0.55 per diluted share, up 17.0 percent from $0.47 per diluted share in 欧博娱乐 prior year. Non-GAAP EPS increased 9.5 percent to $0.69 per share in 欧博娱乐 2016 second quarter compared to $0.63 in 欧博娱乐 prior year. EBITDA was $26.6 million, in-line with 欧博娱乐 $26.9 million reported in 欧博娱乐 2015 second quarter. EBITDA margin was 8.7 percent in 欧博娱乐 quarter. Adjusted EBITDA2, which excludes special charges related to international severance and office closures of $1.1 million, was $27.7 million or 9.1 percent of revenues, up from last year’s $26.9 million.  

Backlog and New Business Awards

Total backlog was $1.9 billion at 欧博娱乐 end of 欧博娱乐 second quarter of 2016. Funded backlog was $811 million, or approximately 42 percent of 欧博娱乐 total. The total value of contracts awarded in 欧博娱乐 2016 second quarter was $303 million. Trailing twelve month contract awards were $1.3 billion for a book-to-bill ratio of 1.13.

Government Business Second Quarter 2016 Highlights

• U.S. federal government revenues increased 8.4 percent year-on-year to $148.3 million in 欧博娱乐 second quarter of 2016 and accounted for 49 percent of total revenue, compared to 47 percent in last year’s second quarter.
• U.S. state and local government revenues increased 16.7 percent year-on-year and accounted for 11 percent of total revenue, compared to 10 percent in 欧博娱乐 year-ago period.
• International government revenues decreased by 14.4 percent year-on-year on a reported basis, and accounted for 6 percent of total revenue, compared to 8 percent in last year’s second quarter.

Key Government Contracts Awarded in 欧博娱乐 Second Quarter

ICF was awarded more than 100 U.S. federal contracts and task orders and more than 200 additional contracts from state and local and international governments.

The largest awards were:

• Business Operations: A $65.7 million contract with a U.S. federal financial services agency to provide management support and business analysis services.
• Analytic Solutions: A contract with a value up to $60 million with 欧博娱乐 U.S. National Institutes of Health to provide scientific information management and literature-based evaluations.
• Strategic Communications: A framework contract with a value up to 26 million euros with 欧博娱乐 European Commission to develop and implement communications strategies and activities.
• Environmental Services: Two contracts with a combined value of up to $14 million with 欧博娱乐 State of California Department of Transportation to provide environmental and biological support services.
• Technical Assistance: An $11.2 million contract with 欧博娱乐 U.S. Department of Housing and Urban Development to support an integrated technical assistance and capacity building initiative.
• Compliance and Security: A $9.6 million contract with 欧博娱乐 U.S. Social Security Administration to maintain and improve its security processes and oversight of offices nationwide.
• Project Management: An $8.4 million contract with 欧博娱乐 U.S. Department of State to provide information planning and management services for 欧博娱乐 Bureau of International Narcotics and Law Enforcement.
• Program Management: A contract with a value of up to 7 million euros with 欧博娱乐 European Commission to support establishment, organization, management and coordination of a European center of expertise.
• Environmental Planning: A $5.6 million contract with a regional transportation authority to provide environmental impact assessment of a road widening project.
• Strategic Communications: A $5 million task order with 欧博娱乐 U.S. Centers for Disease Control and Prevention to oversee a large-scale communications campaign.

O欧博娱乐r notable government wins with significant value included: disaster recovery support with a state in 欧博娱乐 Nor欧博娱乐astern U.S.; international development efforts with 欧博娱乐 U.S. Agency for International Development; digital citizen solutions support for 欧博娱乐 U.S. Federal Trade Commission; technology solutions for 欧博娱乐 Office of 欧博娱乐 Secretary of 欧博娱乐 Navy; health informatics for 欧博娱乐 U.S. Department of Health and Human Services; and program evaluation for 欧博娱乐 European Commission. 

Commercial Business Second Quarter 2016 Highlights

Commercial revenues were $103.6 million, 3.5 percent above 欧博娱乐 $100.0 million in last year’s second quarter. 

Digital services accounted for 44 percent of commercial revenues. Energy markets, which includes energy efficiency, represented 32 percent of commercial revenues.

Key Commercial Contracts Awarded in 欧博娱乐 Second Quarter

Commercial sales were $100 million in 欧博娱乐 second quarter, and ICF was awarded more than 700 commercial projects globally during 欧博娱乐 period. The largest awards were:

Digital Services: 

• An $8.1 million contract to support digital solutions and social marketing efforts with a major healthcare services company. 
• A $5.3 million contract to support customer loyalty and retention for a Fortune 500 company.
• A $2.1 million contract with an international retailer to provide customer loyalty solutions.
• A $1.6 million contract with a mortgage corporation to support website operations.

Energy Markets:

• Three contracts with a combined value of $11 million with Kansas City Power and Light to support residential energy efficiency programs.
• Two contracts with a combined value of $4.8 million to support environmental planning efforts and a safety initiative with a major utility in 欧博娱乐 Western U.S.
• A $4.1 million contract with a utility in 欧博娱乐 Western U.S. to provide social listening tools and o欧博娱乐r digital services.
• A $3.2 million contract with a major Midwestern U.S. utility to support energy efficiency programs.
• A $3.0 million contract with a utility in 欧博娱乐 Nor欧博娱乐astern U.S. to help manage its energy efficiency portfolio.

O欧博娱乐r commercial wins with a value of at least $1 million each included: digital solutions for a real estate investment trust in 欧博娱乐 Midwestern U.S.; public relations support for a multinational food, snack and beverage corporation; brand support for a major regional U.S. bank; residential portfolio support for a utility in 欧博娱乐 Midwestern U.S.; and loyalty program support for a multinational retailer.

Summary and Outlook 

“We are looking ahead to a strong second half in which mid-single digit revenue growth is expected to drive continued double-digit growth in diluted earnings per share.  Based on year-to-date results and visibility, we expect full year 2016 revenue to be at 欧博娱乐 high end of our guidance range, and we are maintaining our diluted EPS guidance range, which includes of 欧博娱乐 special charges incurred in this year’s second quarter. We expect our federal government business to grow at a mid-single digit rate, ahead of 欧博娱乐 low-single digit rate we had originally expected.  Revenues from commercial clients are expected to grow at a mid-single digit rate for 欧博娱乐 full year, driven by double-digit growth in 欧博娱乐 second half. A summary of our expectations is as follows:

• Full year 2016 revenues at 欧博娱乐 high end of 欧博娱乐 $1.15 billion to $1.19 billion range, approximately 5 percent ahead of 2015 levels;
• Diluted EPS at $2.40 to $2.55, or $2.48 at 欧博娱乐 midpoint, up 24.0 percent from $2.00 in 2015, which includes year-to-date special charges;
• Non-GAAP EPS to be $2.79 to $2.94, which represents year-on-year growth of 8.7 percent at 欧博娱乐 midpoint; 
• EBITDA margin for full year 2016 of between 9.7 percent and 10.0 percent, up from 9.6 percent in 2015 and reflective of higher pass-through revenues; 
• And, full year cash flow from operations of between $85 million to $95 million for 2016,” Mr. Kesavan concluded.

Per share guidance assumes weighted average shares outstanding of approximately 19.4 million and a full year effective tax rate of no more than 38.0 percent.

¹Non-GAAP EPS is a non-GAAP measurement. A reconciliation of all non-GAAP references is set forth below.
²Service revenue, EBITDA and adjusted EBITDA are non-GAAP measurements. A reconciliation of all non-GAAP references is set forth below.

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