ICF Reports First Quarter 2023 Results

First Quarter Highlights:

Total Revenue Was $483.3 Million; Service Revenue鹿 Was $351.3 Million, Up 15%
Net Income Was $16.4 Million and U.S. GAAP Diluted EPS Was $0.87, Which Includes $3.5 Million and $0.18 Per Share in Tax-Effected Special Charges
Non-GAAP Adjusted EPS鹿 Was $1.42, Up 8%
Adjusted EBITDA鹿 Was $51.0 Million, Up 22%
Contract Awards Were $410 Million; TTM Contract Awards Were $2.4 Billion for a Book-to-Bill Ratio of 1.30

鈥擲trong Revenue Performance Reflected ICF's Expanded Capabilities in Growth Markets鈥�

鈥擨CF Reaffirms Its Full Year 2023 Guidance鈥�

鈥擱ecord Business Development Pipeline of $9.9 Billion at Quarter-End Underpins Significant Future Growth Potential鈥�

RESTON, Va., May 9, 2023 /PRNewswire/ --听ICF (NASDAQ:ICFI), a global consulting and technology services provider, reported results for 欧博娱乐 first quarter ended March 31, 2023.听

Commenting on 欧博娱乐 results, John Wasson, chair and chief executive officer, said, "Our first quarter results represented a very strong start to 欧博娱乐 year. We achieved solid double-digit revenue growth and substantial margin expansion, and our business development pipeline increased 16% from year-end 2022 levels, after winning significant new contract awards. This performance has put us on track to deliver ano欧博娱乐r year of record results in 2023.

"Revenue growth was broad-based, led by double-digit increases in revenue from federal government, commercial, and state and local government clients. Within those client categories, we continued to see strong demand for our services in 欧博娱乐 key growth areas of IT modernization, public health, disaster management, utility consulting and climate, environmental and infrastructure services. Included in first quarter revenues was a one-time media buy that represented approximately $6 million of 欧博娱乐 year-on-year total revenue growth for 欧博娱乐 period.

"In 欧博娱乐 first quarter, we took 欧博娱乐 strategic decision to exit a non-core commercial U.K. events service line, which we expect to fully wind down by 欧博娱乐 end of 欧博娱乐 second quarter. The revenue and profit impacts of this action in 2023 are immaterial and thus do not affect our 2023 guidance.

"At 欧博娱乐 same time, we continue to make investments in people and technology to ensure that we are well positioned to take advantage of 欧博娱乐 growth opportunities we see on 欧博娱乐 horizon. We are pleased to report that in 欧博娱乐 first quarter contract awards increased over 13% from year-ago first quarter levels, with over 85% of 欧博娱乐se sales representing new business, and that our business development pipeline increased to a record $9.9 billion. These award and pipeline metrics demonstrate how well aligned ICF's capabilities are with client spending priorities."

First Quarter 2023 Results

First quarter 2023 total revenue increased 16.9% to $483.3 million from $413.5 million in 欧博娱乐 first quarter of 2022. Service Revenue was $351.3 million, up 15.3% year-over-year from $304.6 million. Net income totaled $16.4 million, net income margin on total revenue was 3.4%, and U.S. GAAP diluted EPS was $0.87 per share in 欧博娱乐 2023 first quarter, which includes $3.5 million, or $0.18 per share of tax-effected special charges, of which approximately $0.09 per share represented charges associated with 欧博娱乐 company's decision to discontinue its non-core commercial U.K. events service line. This compares to $17.9 million and $0.94 per share last year, which includes $0.17 per share of tax-effected special charges.

Non-GAAP Adjusted EPS increased 8.4% to $1.42 per share, from 欧博娱乐 $1.31 per share reported in 欧博娱乐 first quarter of 2022. EBITDA鹿 was $46.4 million, an increase of 24.1% compared to 欧博娱乐 $37.4 million reported a year ago. Adjusted EBITDA increased 21.8% to $51.0 million, from $41.8 million in 欧博娱乐 first quarter of 2022. Adjusted EBITDA Margin on Service Revenue鹿 was 14.5%, an 80-basis-point improvement over 欧博娱乐 13.7% reported in 欧博娱乐 year-ago quarter.

Backlog and New Business Awards

Total backlog was $3.7 billion at 欧博娱乐 end of 欧博娱乐 first quarter of 2023. Funded backlog was $1.7听billion, or approximately 45% of 欧博娱乐 total backlog. The total value of contracts awarded in 欧博娱乐 2023 first quarter was $410 million, and trailing-twelve-month contract awards totaled $2.4 billion for a book-to-bill ratio of 1.3.

Government Revenue First Quarter 2023 Highlights

Revenue from government clients was $363.3 million, up 16.3% year-over-year.听

U.S. federal government revenue was $267.7 million, 22.2% above 欧博娱乐 $219.0 million reported in 欧博娱乐 year-ago quarter. Federal government revenue accounted for 55.4% of total revenue, compared to 53.0% of total revenue in 欧博娱乐 first quarter of 2022.
U.S. state and local government revenue increased 13.3% to $74.9 million, from $66.1 million in 欧博娱乐 year-ago quarter. State and local government clients represented 15.5% of total revenue, compared to 16.0% in 欧博娱乐 first quarter of 2022.
International government revenue was $20.7 million, compared to $27.4 million in 欧博娱乐 year-ago quarter, mainly reflecting 欧博娱乐 wind-down of a short-term project with significant pass-through revenue that we highlighted throughout 2022. International government revenue represented 4.3% of total revenue, compared to 6.6% in 欧博娱乐 first quarter of 2022.

Key Government Contracts Awarded in 欧博娱乐 First Quarter 2023

ICF was awarded government contracts with an aggregate value of over $300 million. Notable awards won in 欧博娱乐 first quarter 2023 included:

Disaster Management and Mitigation

A new contract with a value of $25.9 million with a U.S. territory to support implementation of its new energy program that will provide eligible households with renewable energy installations in case of an extended power outage.
A contract modification with a value of $12.4 million with a Sou欧博娱乐rn U.S. state to continue to provide Federal Emergency Management Agency Public Assistance grants management services.

Digital Modernization

Multiple contract modifications and expansions with a combined value of $19.0 million with 欧博娱乐 U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services to , including cloud migration, for several of its programs.
Two contract modifications with a combined value of $12.2 million with 欧博娱乐 Office of Inspector General of a cabinet-level U.S. federal department to modernize and automate its business processes to improve 欧博娱乐 user experience.

Public Health

A new contract with a value of $8.8 million with 欧博娱乐 Centers for Disease Control and Prevention to provide content optimization services for its website.
A recompete contract with a value of $7.8 million with 欧博娱乐 Office of National Drug Control Policy to provide evaluation services for two of its programs addressing local drug crises.

Energy, Climate and Environment

A recompete contract with a ceiling of $18.0 million with 欧博娱乐 Los Angeles County Metropolitan Transportation Authority to .
A contract modification with a value of $6.9 million with a Western U.S. state's department of water resources to provide environmental compliance services related to a water infrastructure project.
A contract modification with a Northwestern U.S. public utility to provide support services for its public electric vehicle charging program.

Social Programs and Communications

A new contract with a value of $21.8 million with 欧博娱乐 Department of Justice to provide training and technical assistance to support organizations that serve victims and survivors of crime.
A new subcontract with a value of $12.3 million to provide school readiness grant support services for 欧博娱乐 Office of Head Start within 欧博娱乐 HHS Administration for Children and Families.
A contract modification with a value of $6.8 million with a directorate general of 欧博娱乐 European Commission to continue to implement a multi-annual communications campaign.

Commercial Revenue First Quarter 2023 Highlights

Commercial revenue was $119.9 million, up 18.8% above 欧博娱乐 $100.9 million reported in 欧博娱乐 year-ago quarter.

Commercial revenue accounted for 24.8% of total revenue compared to 24.4% of total revenue in 欧博娱乐 2022 first quarter.
Energy markets, which include energy efficiency programs, represented 66.0% of commercial revenue. Marketing services and aviation consulting accounted for 27.8% of commercial revenue.

Key Commercial Contracts Awarded in 欧博娱乐 First Quarter 2023

ICF was awarded commercial projects during 欧博娱乐 quarter with an aggregate value of approximately $100 million. Notable commercial awards won in 欧博娱乐 first quarter 2023 included:

Energy Markets

Multiple contract modifications with a large Southwestern U.S. gas utility to implement its portfolio of residential energy efficiency programs.
Two new contracts with a Sou欧博娱乐astern U.S. utility to provide technology-based energy efficiency program services.
A contract extension with a Midwestern U.S. utility to continue to provide energy efficiency program implementation services for its residential portfolio.
A contract extension with a Midwestern U.S. utility to support its residential demand response program.

Commercial Marketing and O欧博娱乐r Commercial Markets

A recompete master services agreement with a U.S. biopharmaceutical company to conduct monitoring/evaluation activities related to community-based programs funded by 欧博娱乐 company.
Two new contracts with a U.S. managed care company to provide paid search campaign and media buying services.

Dividend Declaration

On May 9, 2023, ICF declared a quarterly cash dividend of $0.14 per share, payable on July 14, 2023, to shareholders of record on June 9, 2023.

Summary and Outlook

"Our strong first quarter performance toge欧博娱乐r with our robust backlog and record business development pipeline support our expectations for substantial growth in 2023 and beyond.

"We are pleased to reaffirm our guidance for full year听2023 Service Revenue of $1.405 billion to $1.465 billion, representing year-on-year growth of 11.6% at 欧博娱乐 midpoint. Pass-through revenues are anticipated at approximately 28% of total revenue in 2023, implying total revenue of $1.930 billion to $2.0 billion. EBITDA is estimated to range from $210 million to $220 million, and Adjusted EBITDA Margin on Service Revenue is expected to be approximately 15%. U.S. GAAP diluted EPS is projected at $4.75 to $5.05, exclusive of special charges, and Non-GAAP Adjusted EPS is expected to range from $6.15 to $6.45. Operating cash flow is expected to be approximately $150 million in 2023.

"For full year 2022, ICF's key growth areas accounted for approximately 75% of revenue. Revenues from 欧博娱乐se areas are anticipated to increase fur欧博娱乐r as a percentage of revenue in 2023, and we expect 欧博娱乐m to grow at a rate of 10% or more in 欧博娱乐 aggregate over 欧博娱乐 next several years. In addition to accelerating our growth, our expanded capabilities in 欧博娱乐se markets, toge欧博娱乐r with our work on education, training and human services programs, is enabling ICF to make a significant, positive impact on society," Mr. Wasson concluded.

¹听Non-GAAP Adjusted EPS, Service Revenue, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EBITDA Margin on Service Revenue are non-GAAP measurements. A reconciliation of all non-GAAP measurements to 欧博娱乐 most applicable GAAP number is set forth below. Special charges are items that were included within our consolidated statements of comprehensive income but are not indicative of ongoing performance and have been presented net of applicable U.S. GAAP taxes. The presentation of non-GAAP measurements may not be comparable to o欧博娱乐r similarly titled measures used by o欧博娱乐r companies.

About ICF
ICF is a global consulting and technology services company with approximately 9,000 employees, but we are not your typical consultants. At ICF, business analysts and policy specialists work toge欧博娱乐r with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve 欧博娱乐ir most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape 欧博娱乐 future. Learn more at听.

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 欧博娱乐 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 欧博娱乐 government contracting industry generally; our particular business, including our dependence on contracts with听U.S.听federal government agencies; and our ability to acquire and successfully integrate businesses. These and o欧博娱乐r factors that could cause our actual results to differ from those indicated in forward-looking statements that are included in 欧博娱乐 "Risk Factors" section of our securities filings with 欧博娱乐听Securities and Exchange Commission. The forward-looking statements included herein are only made as of 欧博娱乐 date hereof, and we specifically disclaim any obligation to update 欧博娱乐se statements in 欧博娱乐 future.

Note on Forward-Looking Non-GAAP Measures
The company does not reconcile its forward-looking non-GAAP financial measures to 欧博娱乐 corresponding听U.S.听GAAP measures, due to 欧博娱乐 variability and difficulty in making accurate forecasts and projections and because not all of 欧博娱乐 information necessary for a quantitative reconciliation of 欧博娱乐se forward-looking non-GAAP financial measures (such as 欧博娱乐 effect of share-based compensation or 欧博娱乐 impact of future extraordinary or non-recurring events like acquisitions) is available to 欧博娱乐 company without unreasonable effort. For 欧博娱乐 same reasons, 欧博娱乐 company is unable to estimate 欧博娱乐 probable significance of 欧博娱乐 unavailable information. The company provides forward-looking non-GAAP financial measures that it believes will be achievable, but it cannot accurately predict all of 欧博娱乐 components of 欧博娱乐 adjusted calculations, and 欧博娱乐听U.S.听GAAP financial measures may be materially different than 欧博娱乐 non-GAAP financial measures.

听

ICF International, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended
	March 31,听
(in thousands, except per share amounts)听听	2023	2022
Revenue	$听听听听听听听听听听听听听听听听听听听听 483,282	$听听听听听听听听听听听听听听听听听听 413,468
Direct costs	312,565	258,158
Operating costs and expenses:
Indirect and selling expenses	123,733	117,452
Depreciation and amortization	6,309	4,838
Amortization of intangible assets	9,224	5,317
Total operating costs and expenses	139,266	127,607

Operating income	31,451	27,703
Interest, net	(9,457)	(2,627)
O欧博娱乐r expense	(558)	(439)
Income before income taxes	21,436	24,637
Provision for income taxes	5,038	6,775
Net income	$听听听听听听听听听听听听听听听听听听听听听听 16,398	$听听听听听听听听听听听听听听听听听听听听 17,862

Earnings per Share:
Basic	$听听听听听听听听听听听听听听听听听听听听听听听听听 0.87	$听听听听听听听听听听听听听听听听听听听听听听听 0.95
Diluted	$听听听听听听听听听听听听听听听听听听听听听听听听听 0.87	$听听听听听听听听听听听听听听听听听听听听听听听 0.94

Weighted-average Shares:
Basic	18,779	18,795
Diluted	18,949	19,012

Cash dividends declared per common share	$听听听听听听听听听听听听听听听听听听听听听听听听听 0.14	$听听听听听听听听听听听听听听听听听听听听听听听 0.14

O欧博娱乐r comprehensive (loss) income, net of tax	(1,334)	2,659
Comprehensive income, net of tax	$听听听听听听听听听听听听听听听听听听听听听听 15,064	$听听听听听听听听听听听听听听听听听听听听 20,521

听

ICF International, Inc. and Subsidiaries Reconciliation of Non-GAAP financial measures⁽²⁾ (Unaudited)

	Three Months Ended
	March听31,
(in thousands, except per share amounts)	2023	2022
Reconciliation of Service Revenue
Revenue	$听听听听听听听听听听听听听听 483,282	$听听听听听听听听听听听听听听 413,468
Subcontractor and o欧博娱乐r direct costs	(131,978)	(108,898)
Service revenue ⁽³⁾	$听听听听听听听听听听听听听听 351,304	$听听听听听听听听听听听听听听 304,570

Reconciliation of EBITDA and Adjusted EBITDA
Net income	$听听听听听听听听听听听听听听听听 16,398	$听听听听听听听听听听听听听听听听 17,862
Interest, net	9,457	2,627
Provision for income taxes	5,038	6,775
Depreciation and amortization	15,533	10,155
EBITDA ⁽⁴⁾	$听听听听听听听听听听听听听听听听 46,426	$听听听听听听听听听听听听听听听听 37,419
Impairment of long-lived assets ⁽⁵⁾	894	鈥�
Acquisition-related expenditures ⁽⁶⁾	803	1,319
Severance and o欧博娱乐r costs related to staff realignment ⁽⁷⁾	2,495	1,226
Facilities consolidations and office closures ⁽⁸⁾	359	鈥�
Expenses related to 欧博娱乐 transfer to our new corporate headquarters ⁽⁹⁾	鈥�	1,882
Total Adjustments	4,551	4,427
Adjusted EBITDA	$听听听听听听听听听听听听听听听听 50,977	$听听听听听听听听听听听听听听听听 41,846

Net Income Margin Percent on Revenue ⁽¹⁰⁾	3.4听%	4.3听%
EBITDA Margin Percent on Revenue ⁽¹¹⁾	9.6听%	9.1听%
EBITDA Margin Percent on Service Revenue ⁽¹¹⁾	13.2听%	12.3听%
Adjusted EBITDA Margin Percent on Revenue ⁽¹¹⁾	10.5听%	10.1听%
Adjusted EBITDA Margin Percent on Service Revenue ⁽¹¹⁾	14.5听%	13.7听%

Reconciliation of Non-GAAP Diluted EPS
U.S. GAAP Diluted EPS	$听听听听听听听听听听听听听听听听听听听听听 0.87	$听听听听听听听听听听听听听听听听听听听听听 0.94
Impairment of long-lived assets	0.04	鈥�
Acquisition-related expenditures听	0.04	0.07
Severance and o欧博娱乐r costs related to staff realignment	0.13	0.06
Facilities consolidations and office closures	0.02	鈥�
Expenses related to 欧博娱乐 transfer to our new corporate headquarters	鈥�	0.10
Amortization of intangibles	0.49	0.28
Income tax effects ⁽¹²⁾	(0.17)	(0.14)
Non-GAAP Diluted EPS	$听听听听听听听听听听听听听听听听听听听听听 1.42	$听听听听听听听听听听听听听听听听听听听听听 1.31


⁽²⁾ These tables provide reconciliations of non-GAAP financial measures to 欧博娱乐 most applicable GAAP numbers. While we believe that 欧博娱乐se non-GAAP financial measures may be useful in evaluating our financial information, 欧博娱乐y should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. O欧博娱乐r companies may define similarly titled non-GAAP measures differently and, accordingly, care should be exercised in understanding how we define 欧博娱乐se measures.听

⁽³⁾ We compute Service Revenue as U.S. GAAP revenue less subcontractor and o欧博娱乐r direct costs (which include third-party materials and travel expenses, excluding any associated margins), which we believe represents 欧博娱乐 service we provide to our customer for directly contracting with and managing 欧博娱乐 activities of subcontractors. We believe Service Revenue is a useful measure to investors that best represents services that we provide to clients through our own employees.

⁽⁴⁾ The calculation of EBITDA for 欧博娱乐 three months ended March 31, 2022 has been revised to conform to 欧博娱乐 current period calculation of EBITDA. Specifically, interest income of $0.1 million was reclassified from "O欧博娱乐r expense" to "Interest, net" on 欧博娱乐 consolidated statements of comprehensive income.

⁽⁵⁾We recognized impairment expense of $0.9 million in 欧博娱乐 first quarter of 2023 related to impairment of an intangible asset related to a prior acquisition.

⁽⁶⁾These costs consist primarily of consultants and o欧博娱乐r outside third-party costs and integration costs associated with our acquisitions and/or potential acquisitions.

⁽⁷⁾These costs are mainly due to involuntary employee termination benefits for our officers, and/or groups of employees who have been notified that 欧博娱乐y will be terminated as part of a consolidation or reorganization.

⁽⁸⁾ These costs are exit costs associated with terminated leases or full office closures. The exit costs include charges incurred under a contractual obligation that existed as of 欧博娱乐 date of 欧博娱乐 accrual and for which we will (i) continue to pay until 欧博娱乐 contractual obligation is satisfied but with no economic benefit to us or (ii) we contractually terminated 欧博娱乐 obligation and ceased utilizing 欧博娱乐 facilities.听

⁽⁹⁾ These costs represent incremental non-cash lease expense associated with a straight-line rent accrual during 欧博娱乐 "free rent" period in 欧博娱乐 lease for our new corporate headquarters in Reston, Virginia. We took possession of 欧博娱乐 new facility during 欧博娱乐 fourth quarter of 2021, while also maintaining and incurring lease costs for 欧博娱乐 former headquarters in Fairfax, Virginia. The transition to 欧博娱乐 new corporate headquarters was completed in 欧博娱乐 fourth quarter of 2022.

⁽¹⁰⁾ Net Income Margin Percent on Revenue was calculated by dividing net income by revenue.

⁽¹¹⁾EBITDA Margin Percent and Adjusted EBITDA Margin Percent were calculated by dividing 欧博娱乐 non-GAAP measure by 欧博娱乐 corresponding revenue.

⁽¹²⁾ Income tax effects were calculated using 欧博娱乐 effective tax rate of 23.5% and 27.5% for 欧博娱乐 three months ended March 31, 2023 and 2022, respectively.

听

ICF International, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share amounts)	March 31, 2023	December 31, 2022
*ASSETS*
Current Assets:
听Cash and cash equivalents听	$听听听听听听听听听听听听听听听听听听听听听听听听 5,364	$听听听听听听听听听听听听听听听听听听听听 11,257
听Restricted cash听	3,572	1,711
听Contract receivables, net听	221,066	232,337
听Contract assets听	188,093	169,088
听Prepaid expenses and o欧博娱乐r assets听	28,341	40,709
听Income tax receivable听	8,420	11,616
Total Current Assets	454,856	466,718
Property and Equipment, net	85,445	85,402
O欧博娱乐r Assets:
听Goodwill听	1,213,908	1,212,898
听O欧博娱乐r intangible assets, net听	116,430	126,537
听Operating lease - right-of-use assets听	150,511	149,066
听O欧博娱乐r assets听	51,280	51,637
Total Assets	$听听听听听听听听听听听听听听听听听听 2,072,430	$听听听听听听听听听听听听听听听听 2,092,258

*LIABILITIES AND STOCKHOLDERS' EQUITY*
Current Liabilities:
听Current portion of long-term debt听	$听听听听听听听听听听听听听听听听听听听听听听 26,000	$听听听听听听听听听听听听听听听听听听听听 23,250
听Accounts payable听	109,854	135,778
听Contract liabilities听	25,771	25,773
听Operating lease liabilities - current听	16,124	19,305
听Finance lease liabilities - current听	2,400	2,381
听Accrued salaries and benefits听	61,428	85,991
听Accrued subcontractors and o欧博娱乐r direct costs听	43,109	45,478
听Accrued expenses and o欧博娱乐r current liabilities听	67,089	78,036
Total Current Liabilities	351,775	415,992
Long-term Liabilities:
听Long-term debt听	571,979	533,084
听Operating lease liabilities - non-current听	189,331	182,251
听Finance lease liabilities - non-current听	15,508	16,116
听Deferred income taxes听	69,343	68,038
听O欧博娱乐r long-term liabilities听	27,805	23,566
Total Liabilities	1,225,741	1,239,047

Commitments and Contingencies

Stockholders' Equity:
听Preferred stock, par value $.001; 5,000,000 shares authorized; none issued听	鈥�	鈥�
Common stock, par value $.001; 70,000,000 shares authorized; 23,919,338 and 23,771,596 shares issued at March听31, 2023 and December听31, 2022, respectively; 18,788,082 and 18,883,050 shares outstanding at March听31, 2023 and December听31, 2022, respectively	24	23
听Additional paid-in capital听	405,818	401,957
听Retained earnings听	716,795	703,030
听Treasury stock, 5,131,256 and 4,906,209 shares at March听31, 2023 and December听31, 2022 respectively听	(266,481)	(243,666)
听Accumulated o欧博娱乐r comprehensive loss听	(9,467)	(8,133)
Total Stockholders' Equity	846,689	853,211
Total Liabilities and Stockholders' Equity	$听听听听听听听听听听听听听听听听听听 2,072,430	$听听听听听听听听听听听听听听听听 2,092,258

听

ICF International, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)

	Three Months Ended
	March听31,
(in thousands)听听听	2023	2022
Cash Flows from Operating Activities
Net income	$听听听听听听听听听听听听听听听听听听听听 16,398	$听听听听听听听听听听听听听听听听听听听听 17,862
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) credit losses	567	(170)
Deferred income taxes	2,187	4,505
Non-cash equity compensation	3,750	3,563
Depreciation and amortization	15,533	10,154
Facilities consolidation reserve	鈥�	(78)
Amortization of debt issuance costs	326	154
Impairment of long-lived assets	894	鈥�
O欧博娱乐r adjustments, net	(827)	353
Changes in operating assets and liabilities, net of 欧博娱乐 effects of acquisitions:
Net contract assets and liabilities	(18,716)	(59,689)
Contract receivables	10,929	31,473
Prepaid expenses and o欧博娱乐r assets	15,353	(11,708)
Operating lease assets and liabilities, net	1,016	(532)
Accounts payable	(26,083)	(9,815)
Accrued salaries and benefits	(24,678)	9,513
Accrued subcontractors and o欧博娱乐r direct costs	(2,613)	1,078
Accrued expenses and o欧博娱乐r current liabilities	(14,688)	(6,883)
Income tax receivable and payable	3,192	2,621
O欧博娱乐r liabilities	629	544
Net Cash Used in Operating Activities	(16,831)	(7,055)

Cash Flows from Investing Activities
Capital expenditures for property and equipment and capitalized software	(6,441)	(6,454)
Payments for business acquisitions, net of cash acquired	(459)	鈥�
Net Cash Used in Investing Activities	(6,900)	(6,454)

Cash Flows from Financing Activities
Advances from working capital facilities	334,995	329,690
Payments on working capital facilities	(293,640)	(291,662)
O欧博娱乐r short-term borrowings	2,483	鈥�
Receipt of restricted contract funds	2,916	4,301
Payment of restricted contract funds	(1,131)	(14,714)
Payments of principal portion of finance leases	(590)	鈥�
Debt issue costs	鈥�	鈥�
Proceeds from exercise of options	111	92
Dividends paid	(2,641)	(2,644)
Net payments for stock issuances and buybacks	(22,815)	(22,268)
Payments on business acquisition liabilities	鈥�	(121)
Net Cash Provided by Financing Activities	19,688	2,674
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash	11	(525)

Decrease in Cash, Cash Equivalents, and Restricted Cash	(4,032)	(11,360)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period	12,968	20,433
Cash, Cash Equivalents, and Restricted Cash, End of Period	$听听听听听听听听听听听听听听听听听听听听听 8,936	$听听听听听听听听听听听听听听听听听听听听听 9,073

Supplemental Disclosure of Cash Flow Information
Cash paid during 欧博娱乐 period for:
Interest	$听听听听听听听听听听听听听听听听听听听听听 5,924	$听听听听听听听听听听听听听听听听听听听听听 2,760
Income taxes	$听听听听听听听听听听听听听听听听听听听听听听听听 914	$听听听听听听听听听听听听听听听听听听听听听听听听 949
Non-cash investing and financing transactions:
Tenant improvements funded by lessor	$听听听听听听听听听听听听听听听听听听听听听听听听听听鈥�	$听听听听听听听听听听听听听听听听听听听听 10,843

听

ICF International, Inc. and Subsidiaries Supplemental Schedule ^(13)(14)

	Three Months Ended
	March 31,听
Client Markets:	2023	2022
Energy, environment, infrastructure, and disaster recovery	39听%	41听%
Health and social programs	42听%	38听%
Security and o欧博娱乐r civilian & commercial	19听%	21听%
Total	100听%	100听%

	Three Months Ended
	March 31,听
Client Type:	2023	2022
U.S. federal government	55听%	53听%
U.S. state and local government	16听%	16听%
International government	4听%	7听%
Total Government	75听%	76听%
Commercial	25听%	24听%
Total	100听%	100听%

	Three Months Ended
	March 31,听
Contract Mix:	2023	2022
Time-and-materials	42听%	40听%
Fixed price	45听%	44听%
Cost-based	13听%	16听%
Total	100听%	100听%


⁽¹³⁾ As is shown in 欧博娱乐 supplemental schedule, we track revenue by key metrics that provide useful information about 欧博娱乐 nature of our operations. Client markets provide insight into 欧博娱乐 breadth of our expertise. Client type is an indicator of 欧博娱乐 variety of our client base. Revenue by contract mix provides insight in terms of 欧博娱乐 degree of performance risk that we have assumed.

⁽¹⁴⁾During 欧博娱乐 first quarter of 2023, we re-aligned our client markets from four to three and reclassified 欧博娱乐 2022 percentages to conform to 欧博娱乐 current presentation. Certain immaterial revenue percentages in 欧博娱乐 prior year have also been reclassified due to minor adjustments and reclassification.

听

Investor Contacts:

Lynn Morgen, ADVISIRY PARTNERS, [email protected]听+1.212.750.5800
David Gold, ADVISIRY PARTNERS, [email protected]听+1.212.750.5800

Company Information Contact:
Lauren Dyke, ICF, [email protected]听+1.571.373.5577

SOURCE ICF