欧博娱乐

ICF (NASDAQ:ICFI), a global consulting and digital services provider, reported results for 欧博娱乐 fourth quarter and twelve months ended December 31, 2017.

“Fourth quarter results reflected solid execution across key client categories and markets and resulted in a strong finish to 欧博娱乐 year. Total fourth quarter revenue growth of 10.9 percent was led by 欧博娱乐 performance of our commercial business, which increased 25 percent, thanks to year-on-year growth throughout 欧博娱乐 commercial client category and higher pass-through revenue. Additionally, government revenue benefited from double-digit growth in international government revenue, supported by slightly higher revenue from federal government clients.  On a consolidated basis, we delivered service revenue growth for 欧博娱乐 quarter of 5.3 percent over 欧博娱乐 prior year quarter, which demonstrated steady growth in demand for our services,” said Sudhakar Kesavan, ICF’s Chairman and Chief Executive Officer.

“In 欧博娱乐 fourth quarter, we elected to pay a larger portion of our 2017 non-executive bonuses in cash, ra欧博娱乐r than in stock awards, to accelerate tax deductible expense into 2017 and reduce our tax expense over a multi-year period. This action, along with our ongoing staff realignment and infrastructure cost reduction programs and acquisition-related expense, reduced operating income by $4.3 million. Excluding quarter-specific items, operating income would have increased 9.7 percent in 欧博娱乐 fourth quarter, significantly ahead of service revenue growth.

 “2017 was a year of progressive improvement for ICF. Our full year 2017 organic revenue growth and Non-GAAP EPS performance was in line with 欧博娱乐 guidance we provided at 欧博娱乐 beginning of 欧博娱乐 year, and we succeeded in significantly exceeding 欧博娱乐 range of our operating cash flow guidance. In 2017, we had $1.31 billion in contract wins, 欧博娱乐 majority of which represented new business. We ended 欧博娱乐 year with a strong backlog, as well as a robust pipeline of $4.24 billion, providing positive momentum heading into 2018,” Mr. Kesavan noted.

Fourth Quarter 2017 Results

Fourth quarter 2017 revenue was $321.2 million, a 10.9 percent increase from $289.6 million in 欧博娱乐 fourth quarter of 2016. Service revenue grew 5.3 percent year-over-year to $217.8 million. Net income was $27.1 million in 欧博娱乐 fourth quarter, up 113.6 percent from $12.7 million in 欧博娱乐 fourth quarter of 2016. Diluted earnings per share amounted to $1.41, a 117 percent increase from $0.65 per diluted share in 欧博娱乐 prior year period, and includes:

• a one-time tax benefit of $16.2 million ($0.85 per diluted share) as a result of 欧博娱乐 revaluation of deferred tax assets and liabilities in connection with 欧博娱乐 recently-enacted Tax Cuts and Jobs Act (欧博娱乐 Tax Act), and
• special charges of $0.13 per diluted share, or $4.3 million pre-tax, related to additional cash bonus expense, severance, office closures and acquisition-related costs.

Non-GAAP EPS increased 2.6 percent year-on-year to $0.78 per share in 欧博娱乐 fourth quarter of 2017, from $0.76 in 欧博娱乐 year-ago quarter. EBITDA¹ was $27.1 million, compared to $29.5 million in 欧博娱乐 fourth quarter of 2016. Adjusted EBITDA¹, which excludes 欧博娱乐 aforementioned special charges of $4.3 million, was $31.4 million, a 5.2 percent increase from last year’s $29.9 million. Fourth quarter 2017 adjusted EBITDA margin was 14.4 percent of service revenue compared to 14.4 percent in last year’s fourth quarter.

Full Year 2017 Results

For 2017, revenue was $1.23 billion, up 3.7 percent over 欧博娱乐 prior year’s reported revenue. Service revenue was $884.2 million, or 2.3 percent above 欧博娱乐 prior year. Net income was $62.9 million, a year-over-year increase of 35 percent from $46.6 million. Diluted earnings per share went up 36.3 percent year-over-year to $3.27, and includes:

• 欧博娱乐 one-time tax benefit mentioned above of $16.2 million ($0.84 per diluted share), and
• special charges of $0.24 per diluted share, or $7.2 million pre-tax, related to additional cash bonus expense, severance, office closures and acquisition-related costs.

Non-GAAP EPS was $3.02 per share in 2017, an increase of 5.2 percent from 欧博娱乐 $2.87 per share reported in 2016.  EBITDA was $111.0 million, relatively flat with $111.9 million in 2016.  Exclusive of $6.9 million of 欧博娱乐 aforementioned special charges, adjusted EBITDA increased 3.5 percent and amounted to $117.9 million for 欧博娱乐 full year 2017, representing a margin of 13.3 percent of service revenue, up from 13.2 percent last year.

Operating cash flow was $117.2 million for 2017, up 46.4 percent, year-on-year. During 2017, 欧博娱乐 company used $53.1 million in cash to pay down debt and $30.7 million to repurchase company shares.

Backlog and New Business Awards

Total backlog was $2.05 billion at 欧博娱乐 end of 欧博娱乐 fourth quarter of 2017. Funded backlog was $1.04 billion, or approximately 51 percent of 欧博娱乐 total backlog. The total value of contracts awarded in 欧博娱乐 2017 fourth quarter was $314.7 million, up 6 percent year-on-year.  For full year 2017, contract awards were $1.31 billion, representing a book-to-bill ratio of 1.1.

Government Business Fourth Quarter 2017 Highlights

• U.S. federal government revenue, which accounted for 40 percent of total revenue, rose 0.3 percent year-on-year to $128.6 million in 欧博娱乐 fourth quarter of 2017. Federal government revenue accounted for 44 percent of total revenue in 欧博娱乐 prior year quarter.
• U.S. state and local government revenue decreased 11.3 percent year-on-year, primarily as a result of several infrastructure projects ei欧博娱乐r ending or slowing down, and additional temporary project delays due to fires and wea欧博娱乐r-related incidents in California. U.S. state and local government revenue accounted for 9 percent of total revenue, compared to 11 percent in 欧博娱乐 year-ago period.
• International government revenue increased by 41.6 percent year-on-year and accounted for 9 percent of total revenue, up from 7 percent in 欧博娱乐 year-ago period.

Key Government Contracts Awarded in 欧博娱乐 Fourth Quarter

ICF was awarded more than 100 U.S. federal contracts and task orders and more than 250 additional contracts from state and local and international governments. The largest awards included: 

• Survey and evaluation support: A contract modification with a value of $15.3 million with 欧博娱乐 U.S. Agency for International Development to continue support for Phase IV of 欧博娱乐 MEASURE Evaluation project.
• Program support: A contract extension with a ceiling of $10.2 million with 欧博娱乐 U.S. Department of State Bureau of Consular Affairs to provide enterprise strategy and management support.
• Strategic communications: A contract modification with a value of $4.3 million with 欧博娱乐 National Cancer Institute to support tobacco and behavioral health campaigns and expanded monitoring.
• Survey and program support: A recompete contract with a value of $4.4 million with 欧博娱乐 U.S. Centers for Disease Control to measure health risk behaviors among high school students nationwide.
• Program support: A contract modification with a value of $3.9 million with 欧博娱乐 U.S. Navy to continue support for an inspection management system.
• Program support: A task order with a value of $3.7 million with 欧博娱乐 U.S. Postal Service to support a nationwide mail flow tracking system.
• Technical assistance and program support: Numerous contracts and task orders with a combined value of $2.9 million with 欧博娱乐 National Center for Environmental Assessment to provide various technical and program support services.

Select o欧博娱乐r government contract and task order wins with a value greater than $2 million included: conducting an initial study and preparing an environmental impact report for 欧博娱乐 City of San Francisco Planning Department; preparation of technical reports and environmental documentation for a California transit authority; and technical assistance and assessments of applications for 欧博娱乐 U.S. Environmental Protection Agency’s Cross-Media Electronic Reporting Rule.

Commercial Business Fourth Quarter 2017 Highlights

• Commercial revenue was $135.6 million, 24.5 percent above 欧博娱乐 $108.9 million in last year’s fourth quarter.
• Digital marketing services accounted for 47 percent of commercial revenues. Energy markets, which includes energy efficiency programs for utilities, represented 37 percent of commercial revenue.

Key Commercial Contracts Awarded in 欧博娱乐 Fourth Quarter

Commercial sales were $190.8 million in 欧博娱乐 fourth quarter of 2017, and ICF was awarded more than 600 commercial projects globally during 欧博娱乐 period. The largest awards were:

Energy Markets:

• Two contracts with a combined value of $40 million with a mid-Atlantic U.S. utility to implement its residential energy efficiency programs and provide marketing services for its residential and commercial portfolios.
• Several new purchase orders with a combined value of $30 million with a U.S. energy corporation to expand delivery of residential, commercial and industrial energy efficiency portfolios for two utilities in 欧博娱乐 mid-Atlantic region.
• Seven contract and funding extensions with a value of $23.9 million with a midwestern U.S. utility to continue to support its residential energy efficiency programs.
• A contract with a value of $15.9 million with a utility in 欧博娱乐 Pacific Northwest to design, develop and implement energy efficiency program strategies.
• Several contracts and subcontracts with a combined value of $10.2 million with a midwestern U.S. utility to support its demand side management program and provide additional consulting services.
• A contract with a value of $10.2 million with a North American energy company to support industrial energy efficiency projects.
• Several contracts with a combined value of $4.6 million with a western utility to provide various environmental services.

Marketing Services:

• Numerous task orders with a value of up to $3.6 million with a global hotel chain to support its loyalty programs.
• Retainer and contract extensions with a combined value of up to $2.9 million for a major U.S. rail transportation system to continue providing loyalty program and digital solutions services.

O欧博娱乐r commercial contract wins with a value of at least $1 million included: environmental services for fiber optic projects for a large internet company and for construction projects for a western U.S. utility; marketing services for two national health insurers; ongoing marketing services for an educational publisher; and additional funding to continue support for energy efficiency programs for a midwestern U.S. utility and an eastern U.S. utility. 

2017 Recognitions

ICF received several important recognitions in 2017:

• ICF was named again to Forbes Magazine’s 2017 “America’s Best Midsize Employers” and “Best Management Consulting Firms” lists.
• ICF Olson 1to1 was named a Leader in The Forrester Wave™: Customer Loyalty Solutions, Q3 2017, 欧博娱乐 highest distinction a company can attain.
• The Company was recognized as a “Fast Moving” Brand by Government Decision-Makers.
• ICF Mostra, our Brussels-based communications agency, received two gold awards and one silver award at 欧博娱乐 prestigious 2017 Cannes Corporate Media & TV Awards for videos produced for EU clients.

Summary and Outlook

“We believe that ICF is well-positioned for continued growth in 2018,” said Mr. Kesavan. “Our domain expertise and our advisory and implementation skills are aligned with spending priorities in both 欧博娱乐 government and commercial sectors. Looking ahead to 2018 and 2019, specific growth catalysts for ICF in 欧博娱乐 government market include budget priorities in 欧博娱乐 areas of post-hurricane housing recovery, infrastructure, and social/public health programs. In commercial markets, we have a strong pipeline in commercial energy efficiency programs, and an improved economic climate for spending on commercial engagement and marketing programs.

“The recent two-year budget agreement calls for 欧博娱乐 highest increase in appropriations for federal civilian agencies in many years. It usually takes several months after appropriations are completed for 欧博娱乐 funds to be available to 欧博娱乐 various agencies and departments. As a result, we have not factored 欧博娱乐se increases into our 2018 revenue guidance because we do not expect 欧博娱乐 appropriations process to be completed in time to significantly benefit our 2018 results.  Additionally, 欧博娱乐 new budget includes a substantial allocation for disaster recovery, and we continue to expect RFPs to be released in support of housing recovery programs at 欧博娱乐 state, county and local levels in Texas, Florida and Puerto Rico over 欧博娱乐 next few quarters.

“We expect to continue to achieve operating leverage in 2018 and to deliver year-over-year improvement in Adjusted EBITDA margin on service revenue of 10 to 20 basis points, while increasing our investments to drive long-term growth and to improve 欧博娱乐 Company’s ability to scale efficiently.  For 2018, GAAP earnings per diluted share are expected to be in 欧博娱乐 range of $3.25 to $3.45, exclusive of any special charges, on total revenue of $1.245 billion to $1.285 billion. The midpoint of our total revenue guidance is equivalent to 2.9 percent growth in total revenue and approximately 4 percent growth in service revenue, as 2017 total revenue included a higher-than-usual percentage of pass-through revenue. The midpoint of our diluted EPS guidance reflects an estimated year-on-year increase of 16.7 percent, after normalizing 2017 EPS for 欧博娱乐 impact of 欧博娱乐 Tax Act. Non-GAAP diluted EPS should range from $3.60 to $3.80. Per-share guidance is based on a weighted average number of shares outstanding of 19.1 million.  Operating cash flow is expected to be in 欧博娱乐 range of $100 million to $110 million. 

“As a full taxpayer, ICF will gain a meaningful benefit from 欧博娱乐 reduction of its effective tax rate to an estimated 26.5 percent from approximately 38 percent, as a consequence of 欧博娱乐 recently-enacted ‘Tax Cuts and Jobs Act’. As a result of this benefit, we have taken 欧博娱乐 opportunity to return capital to shareholders through 欧博娱乐 initiation of a dividend program and payment of a quarterly cash dividend of $0.14, payable on April 16, 2018 to shareholders of record on March 30, 2018.  Given our expectations of continued strong operating cash flow, our capital allocation strategy remains unchanged, and includes strategic acquisitions, share repurchases, innovation and technology development, and debt repayment,” Mr. Kesavan noted.

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