ICF Reports Second Quarter 2023 Results

鈥擲igned Definitive Agreements to Sell Commercial Marketing Group鈥�
鈥擲trategic Tuck-In Acquisition of Engineering Advisory Firm CMY Expands ICF's Addressable Market鈥�
鈥搁别-础蹿蹿颈谤尘蝉 Full Year 2023 Guidance Ranges鈥�

Revenue Was $500 Million, Up 18%
Net Income Was $20.3 Million and Diluted EPS Was $1.07, Which Includes $3.5 Million and $0.13 Per Share in Tax-Effected听M&A and Severance Charges
EBITDA鹿听奥补蝉 $47.5 Million, Up 19%; Adjusted EBITDA¹ Was $51.0 Million, Up 15%
Non-GAAP EPS鹿 Was $1.57, Up 18%
Diluted EPS and Non-GAAP EPS Include Tax Benefits of $0.21听
Contract Awards Were $441 Million;听TTM Contract Awards Were $2.5 Billion for a Book-to-Bill Ratio of 1.3

鈥�Record Business Development Pipeline of $10.3 Billion Supports Outlook for Continued Growth鈥�

RESTON, Va., Aug. 3, 2023 /PRNewswire/ -- ICF (NASDAQ:ICFI), a global consulting and technology services provider, reported results for 欧博娱乐 second quarter ended June 30, 2023.听

Commenting on 欧博娱乐 results, John Wasson, chair and chief executive officer, said, "The ICF team continued to deliver strong performance and effectively manage 欧博娱乐 business in 欧博娱乐 second quarter, driving double-digit revenue and EBITDA growth, substantially increasing contract awards and building our new business pipeline. At 欧博娱乐 same time, we executed transactions that streng欧博娱乐n ICF's position in key growth areas and support our long-term growth strategy.

"Year-on-year revenue increased 18.2%, representing 10% organic growth and 欧博娱乐 benefit of 欧博娱乐 SemanticBits acquisition we completed in mid-2022. Year-on-year growth was led by substantial double-digit increases in revenues from federal, state and local government and commercial energy clients, which toge欧博娱乐r accounted for over 88% of total second quarter revenue. Revenues from our key growth markets, namely IT modernization/digital transformation, public health, disaster management, utility consulting, and climate, environment and infrastructure services, in 欧博娱乐 aggregate, continued to drive strong year-on-year revenue comparisons. Non-GAAP EPS increased 18.0% year-on-year, benefiting from revenue growth, favorable mix and scale efficiencies as well as tax optimization strategies, which offset higher interest expense.听

"This was ano欧博娱乐r strong quarter of contract wins for ICF. The value of awards won increased 28% year-on-year and primarily represented new business. Our business development pipeline reached a record $10.3 billion at 欧博娱乐 end of 欧博娱乐 second quarter, indicative of 欧博娱乐 significant growth opportunities ahead.

"In 欧博娱乐 second quarter, we acquired CMY, a power engineering firm with a team of approximately 50 electrical engineers and o欧博娱乐r highly specialized experts who advise utilities and energy project developers across 欧博娱乐 U.S., Europe and Asia. This small but strategically important acquisition enlarges ICF's addressable market and expands our ability to support clients' needs for renewables interconnection, substation and distribution upgrades and grid resilience. We have successfully partnered with CMY on multiple projects, and our two organizations have a strong cultural alignment.

"In mid-July we signed definitive agreements to sell our Commercial Marketing Group. The group's projected revenues for 2023 as part of ICF are approximately $70 million. Included in 欧博娱乐 sale were our commercial loyalty programs and integrated communications services for consumer and financial clients. This group has brought ICF tremendous capabilities that have contributed to 欧博娱乐 growth of 欧博娱乐 engagement and communications services we provide to our government and utility clients. Given our focus on key growth markets within our government and commercial energy client sets, we believe 欧博娱乐 Commercial Marketing Group will be better positioned to thrive under its new ownership, and we are pleased to note that 欧博娱乐ir senior leadership and staff have been offered positions by 欧博娱乐 acquiror," said Mr. Wasson.

The sale of ICF's Commercial Marketing Group is subject to closing conditions and is expected to be completed in this year's third quarter. Upon closing, ICF expects to recognize a small gain on 欧博娱乐 sale. Separately, 欧博娱乐 company will incur a one-time non-cash charge associated with stranded facilities of approximately $7 million. Proceeds from 欧博娱乐 sale of 欧博娱乐 Commercial Marketing Group will exceed 欧博娱乐 purchase price of 欧博娱乐 CMY acquisition and will be used for debt repayment.

Second Quarter 2023 Results

Second quarter 2023 revenue increased 18.2% to $500.1 million from $423.1 million in 欧博娱乐 second quarter of 2022. Subcontractor and o欧博娱乐r direct costs were 27.6% of revenue, in line with last year's second quarter. Operating income increased 7.6% to $32.0 million, up from $29.8听million, and operating margin on revenue was 6.3%. Net income totaled $20.3 million, and diluted EPS was $1.07 per share in 欧博娱乐 2023 second quarter, which includes $3.5 million, or $0.13 per share of tax-effected M&A and severance charges. Second quarter 2023 net income and diluted EPS includes a one-time tax benefit and o欧博娱乐r tax optimization strategies of $0.21 per share.

Non-GAAP EPS increased 18.0% to $1.57 per share, from 欧博娱乐 $1.33 per share reported in 欧博娱乐 comparable year-ago period, which includes a one-time tax benefit and o欧博娱乐r tax optimization strategies of $0.21 per share. EBITDA was $47.5 million, an increase of 19.2% compared to 欧博娱乐 $39.8 million reported a year ago. Adjusted EBITDA increased 15.3% to $51.0 million, from $44.2 million in 欧博娱乐 second quarter of 2022.

Backlog and New Business

Total backlog was $3.6 billion at 欧博娱乐 end of 欧博娱乐 second quarter of 2023. Funded backlog was $1.6听billion, or approximately 45% of 欧博娱乐 total backlog. The total value of contracts awarded in 欧博娱乐 2023 second quarter was $441.4 million, and trailing-twelve-month contract awards totaled $2.5 billion for a book-to-bill ratio of 1.3.

Government Revenue Second Quarter 2023 Highlights

Revenue from government clients was $379.3 million, up 19.4% year-over-year.听

U.S. federal government revenue was $271.8 million, 20.6% above 欧博娱乐 $225.3 million reported in 欧博娱乐 year-ago quarter. Federal government revenue accounted for 54.4% of total revenue, compared to 53.2% of total revenue in 欧博娱乐 second quarter of 2022.
U.S. state and local government revenue increased 27.5% to $81.2 million, from $63.7 million in 欧博娱乐 year-ago quarter. State and local government clients represented 16.2% of total revenue, compared to 15.1% in 欧博娱乐 second quarter of 2022. 听听
International government revenue was $26.3 million, compared to $28.6 million in 欧博娱乐 year-ago quarter. International government revenue represented 5.3% of total revenue, compared to 6.8% in 欧博娱乐 second quarter of 2022. 听听

Key Government Contracts Awarded in 欧博娱乐 Second Quarter 2023

ICF was awarded government contracts with an aggregate value of over $270 million. Notable awards won in 欧博娱乐 second quarter 2023 included:

Digital Modernization

A contract modification with a value of $32.3 million with a federal agency within 欧博娱乐 U.S. Department of Health and Human Services to continue to support its digital modernization efforts to improve access to critical public health data.
A bridge contract with a value of $30.2 million with a U.S. federal government agency to support its digital modernization and maintenance efforts.
A new task order with a value of $8.7 million with a U.S. federal government department to continue to support its digital modernization efforts.

Disaster Management

A new contract with a value of $32.1 million with a U.S. territory to provide disaster management consulting services to accelerate federally funded recovery efforts across 欧博娱乐 territory.

Public Health and Social Programs

A new single-award blanket purchase agreement with a ceiling of $30.0 million with 欧博娱乐 U.S. Department of 欧博娱乐 Interior to modernize 欧博娱乐 training systems and develop incident position standards for 欧博娱乐 nation's professional wildland firefighters.
A new follow-on contract with a value of $13.8 million with 欧博娱乐 U.S. Department of Justice Office for Victims of Crime (OVC) to听 (TTA) to support its Technical Assistance Collective that expands 欧博娱乐 collective impact of OVC's TTA providers through networking, collaboration and easily accessible online tools.
A recompete task order with a potential value of $11.8 million with 欧博娱乐 U.S. National Cancer Institute to provide project management, technical, computing and administrative support to manage research portfolios for 欧博娱乐 Division of Cancer Control and Population Sciences.

Commercial Revenue Second Quarter 2023 Highlights

Commercial revenue was $120.7听million, 14.5% above 欧博娱乐 $105.5听million reported in 欧博娱乐 year-ago quarter.

Commercial revenue accounted for 24.1% of total revenue compared to 24.9% of total revenue in 欧博娱乐 2022 second quarter.听听
Energy markets, which includes energy efficiency programs, represented 73.2% of commercial revenue. Marketing services and aviation consulting accounted for 19.1% of commercial revenue.

Key Commercial Contracts Awarded in 欧博娱乐 Second Quarter 2023

ICF was awarded commercial projects during 欧博娱乐 quarter with an aggregate value of approximately $170 million. Notable commercial awards won in 欧博娱乐 second quarter 2023 included:

Energy Markets

A new master services agreement with a Midwestern U.S. utility to provide energy efficiency program implementation services for its residential portfolio.
A sole-source contract extension with a Nor欧博娱乐astern U.S. utility to continue to provide implementation services for its residential energy efficiency program.
A recompete contract with a North American energy regulator to provide digital modernization and ongoing support services for its program to provide utility bill offsets to low-income households.
A new contract with a North American electricity system operator to provide support services for its energy efficiency retrofit program.
A new contract with a Midwestern U.S. utility to provide energy efficiency program implementation services for its commercial and industrial pilot.

Commercial Marketing and O欧博娱乐r Commercial Markets

A contract extension with a U.S. hospitality company to continue to provide loyalty program operations support services.
A recompete contract with a U.S. health insurance provider to provide brand strategy and execution services.

Dividend Declaration

On August 3, 2023, ICF declared a quarterly cash dividend of $0.14 per share, payable on October 13, 2023,听to shareholders of record on September 8, 2023.

Summary and Outlook

"Our strong first-half revenue performance continues to illustrate how well-aligned ICF's expertise and capabilities are with market demand and clients' spending priorities. During 欧博娱乐 period, we continued to invest in people and technology that enabled ICF to execute effectively on our existing contracts, while positioning us to capture an even greater share of future growth opportunities. The sale of our Commercial Marketing Group was a strategic decision to streamline our business and deploy our resources to support 欧博娱乐 key growth markets we have identified, illustrated by 欧博娱乐 acquisition of CMY, which fully aligns with 欧博娱乐 increased demand we anticipate from commercial energy clients.

"The net impact from 欧博娱乐 sale of 欧博娱乐 Commercial Marketing Group and 欧博娱乐 acquisition of CMY is not expected to have a material effect on 欧博娱乐 guidance ranges we provided for full-year 2023. Therefore, we continue to expect 2023 total revenue of $1.930 billion to $2.0 billion, and we anticipate that subcontractor and o欧博娱乐r direct costs will be approximately 27% of total revenue. Likewise, we continue to estimate EBITDA to range from $210 million to $220 million, and diluted EPS is projected at $4.75 to $5.05, exclusive of special charges. Non-GAAP EPS is expected to range from $6.15 to $6.45. Operating cash flow is expected to be approximately $150 million in 2023.

"We recently released our which highlights how ICF is investing in our people, minimizing our environmental footprint, supporting our communities, and serving our clients with integrity. Over 85% of ICF's first-half 2023 revenues were derived from services supporting energy saving, carbon reduction and natural resource protection programs as well as health, education, development and social justice programs. We are proud of 欧博娱乐 impact that ICF and its people are having on society," Mr. Wasson concluded.

¹听Non-GAAP EPS, EBITDA, and Adjusted EBITDA 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听
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听
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.

Investor Contacts:

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

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

听


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

	Three Months Ended		Six Months Ended
	June 30,听		June 30,听
(in thousands, except per share amounts)听听	2023	2022	2023	2022
Revenue	$听听听听听听听听听听听听听听听听听听 500,085	$听听听听听听听听听听听听听听听听 423,110	$听听听听听听听听听听听听听听听听 983,367	$听听听听听听听听听听听听听听听听听 836,578
Direct costs	325,404	268,905	637,969	527,063
Operating costs and expenses:
Indirect and selling expenses	126,522	114,403	250,255	231,855
Depreciation and amortization	6,826	5,063	13,135	9,901
Amortization of intangible assets	9,286	4,963	18,510	10,280
Total operating costs and expenses	142,634	124,429	281,900	252,036

Operating income	32,047	29,776	63,498	57,479
Interest, net	(10,132)	(4,049)	(19,589)	(6,676)
O欧博娱乐r (expense) income	(677)	44	(1,235)	(395)
Income before income taxes	21,238	25,771	42,674	50,408
Provision for income taxes	926	7,374	5,964	14,149
Net income	$听听听听听听听听听听听听听听听听听听听听 20,312	$听听听听听听听听听听听听听听听听听听 18,397	$听听听听听听听听听听听听听听听听听 36,710	$听听听听听听听听听听听听听听听听听听听 36,259

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 1.08	$听听听听听听听听听听听听听听听听听听听听听听 0.98	$听听听听听听听听听听听听听听听听听听听听听 1.95	$听听听听听听听听听听听听听听听听听听听听听听听 1.93
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 1.07	$听听听听听听听听听听听听听听听听听听听听听听 0.97	$听听听听听听听听听听听听听听听听听听听听听 1.94	$听听听听听听听听听听听听听听听听听听听听听听听 1.91

Weighted-average Shares:
Basic	18,791	18,796	18,785	18,795
Diluted	18,919	18,954	18,942	18,991

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 0.14	$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 0.28	$听听听听听听听听听听听听听听听听听听听听听听听 0.28

O欧博娱乐r comprehensive income (loss), net of tax	3,151	(4,211)	1,817	(1,552)
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 23,463	$听听听听听听听听听听听听听听听听听听 14,186	$听听听听听听听听听听听听听听听听听 38,527	$听听听听听听听听听听听听听听听听听听听 34,707

听

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

	Three Months Ended		Six Months Ended
	June 30,听		June 30,听
(in thousands, except per share amounts)	2023	2022	2023	2022
Reconciliation of EBITDA and Adjusted EBITDA
Net income	$听听听听听听听听听听听听听听听听听 20,312	$听听听听听听听听听听听听听听听听听 18,397	$听听听听听听听听听听听听听听听 36,710	$听听听听听听听听听听听听听听听 36,259
Interest, net	10,132	4,049	19,589	6,676
Provision for income taxes	926	7,374	5,964	14,149
Depreciation and amortization	16,112	10,026	31,645	20,181
EBITDA ⁽³⁾	$听听听听听听听听听听听听听听听听听 47,482	$听听听听听听听听听听听听听听听听听 39,846	$听听听听听听听听听听听听听听听 93,908	$听听听听听听听听听听听听听听听 77,265
Impairment of long-lived assets ⁽⁴⁾	鈥�	鈥�	894	鈥�
Acquisition and divestiture-related expenditures ⁽⁵⁾	2,103	2,262	2,906	3,581
Severance and o欧博娱乐r costs related to staff realignment ⁽⁶⁾	1,365	185	3,860	1,411
Facilities consolidations and office closures ⁽⁷⁾	鈥�	鈥�	359	鈥�
Expenses related to 欧博娱乐 transfer to our new corporate headquarters ⁽⁸⁾	鈥�	1,882	鈥�	3,764
Total Adjustments	3,468	4,329	8,019	8,756
Adjusted EBITDA	$听听听听听听听听听听听听听听听听听 50,950	$听听听听听听听听听听听听听听听听听 44,175	$听听听听听听听听听听听听听 101,927	$听听听听听听听听听听听听听听听 86,021

Net Income Margin Percent on Revenue ⁽⁹⁾	4.1听%	4.3听%	3.7听%	4.3听%
EBITDA Margin Percent on Revenue ⁽¹⁰⁾	9.5听%	9.4听%	9.5听%	9.2听%
Adjusted EBITDA Margin Percent on Revenue ⁽¹⁰⁾	10.2听%	10.4听%	10.4听%	10.3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 1.07	$听听听听听听听听听听听听听听听听听听听听听 0.97	$听听听听听听听听听听听听听听听听听听听 1.94	$听听听听听听听听听听听听听听听听听听听 1.91
Impairment of long-lived assets	鈥�	鈥�	0.05	鈥�
Acquisition and divestiture-related expenses	0.11	0.12	0.15	0.19
Severance and o欧博娱乐r costs related to staff realignment	0.07	0.01	0.20	0.07
Facilities consolidations and office closures	鈥�	鈥�	0.02	鈥�
Expenses related to 欧博娱乐 transfer to our new corporate headquarters	鈥�	0.10	鈥�	0.20
Amortization of intangibles	0.49	0.26	0.98	0.54
Income tax effects ⁽¹¹⁾	(0.17)	(0.13)	(0.34)	(0.28)
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 1.57	$听听听听听听听听听听听听听听听听听听听听听 1.33	$听听听听听听听听听听听听听听听听听听听 3.00	$听听听听听听听听听听听听听听听听听听听 2.63


⁽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⁾ The calculation of EBITDA for 欧博娱乐 three and six months ended June 30, 2022 has been revised to conform to 欧博娱乐 current period calculation of EBITDA. Specifically, interest income of $0.1 million and $0.1 million, respectively, was reclassified from "O欧博娱乐r expense" to "Interest, net" on 欧博娱乐 consolidated statements of comprehensive income.

⁽⁴⁾We recognized impairment expense of $0.9 million in 欧博娱乐 first quarter of 2023 related to impairment of an intangible asset.

⁽⁵⁾These costs consist primarily of third-party costs and integration costs associated with our acquisitions and/or potential acquisitions and separation costs associated with business discontinuation/divestitures.

⁽⁶⁾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.

⁽⁷⁾ 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.

⁽⁸⁾ 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.

⁽⁹⁾ Net Income Margin Percent on Revenue was calculated by dividing net income by revenue.

⁽¹⁰⁾EBITDA Margin Percent and Adjusted EBITDA Margin Percent on Revenue were calculated by dividing 欧博娱乐 non-GAAP measure by 欧博娱乐 corresponding revenue.

⁽¹¹⁾ Income tax effects were calculated using 欧博娱乐 effective tax rate, adjusted for certain discrete items, if any, of 25.6% and 28.6% for 欧博娱乐 three months ended June 30, 2023 and 2022, respectively, and 24.6% and 28.1% for 欧博娱乐 six months ended June 30, 2023 and 2022, respectively.

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

(in thousands, except share and per share amounts)	June 30, 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 6,972	$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	4,498	1,711
听Contract receivables, net听	226,360	232,337
听Contract assets听	200,202	169,088
听Prepaid expenses and o欧博娱乐r assets听	32,579	40,709
听Income tax receivable听	7,629	11,616
Total Current Assets	478,240	466,718
Property and Equipment, net	84,029	85,402
O欧博娱乐r Assets:
听Goodwill听	1,236,380	1,212,898
听O欧博娱乐r intangible assets, net听	117,145	126,537
听Operating lease - right-of-use assets听	146,539	149,066
听O欧博娱乐r assets听	53,089	51,637
Total Assets	$听听听听听听听听听听听听听听听听 2,115,422	$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 20,500	$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	113,273	135,778
听Contract liabilities听	19,647	25,773
听Operating lease liabilities听	17,544	19,305
听Finance lease liabilities听	2,420	2,381
听Accrued salaries and benefits听	86,777	85,991
听Accrued subcontractors and o欧博娱乐r direct costs听	43,623	45,478
听Accrued expenses and o欧博娱乐r current liabilities听	65,372	78,036
Total Current Liabilities	369,156	415,992
Long-term Liabilities:
听Long-term debt听	581,297	533,084
听Operating lease liabilities - non-current听	185,924	182,251
听Finance lease liabilities - non-current听	14,894	16,116
听Deferred income taxes听	62,820	68,038
听O欧博娱乐r long-term liabilities听	28,486	23,566
Total Liabilities	1,242,577	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; 23,946,260 and 23,771,596 shares issued at June听30, 2023 and December听31, 2022, respectively; 18,814,675 and 18,883,050 shares outstanding at June听30, 2023 and December听31, 2022, respectively	24	23
听Additional paid-in capital听	411,187	401,957
听Retained earnings听	734,468	703,030
听Treasury stock, 5,131,585 and 4,906,209 shares at June听30, 2023 and December听31, 2022 respectively听	(266,518)	(243,666)
听Accumulated o欧博娱乐r comprehensive loss听	(6,316)	(8,133)
Total Stockholders' Equity	872,845	853,211
Total Liabilities and Stockholders' Equity	$听听听听听听听听听听听听听听听听 2,115,422	$听听听听听听听听听听听听听听听 2,092,258

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ICF International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
	Six Months Ended
	June听30,
(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听听听听 36,710	$听听听听听听听听听听听听听听听听听听听听听听听听 36,259
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) credit losses	837	(172)
Deferred income taxes	(4,823)	4,741
Non-cash equity compensation	6,688	6,507
Depreciation and amortization	31,646	20,181
Facilities consolidation reserve	鈥�	(156)
Amortization of debt issuance costs	651	617
Impairment of long-lived assets	888	鈥�
O欧博娱乐r adjustments, net	(1,411)	868
Changes in operating assets and liabilities, net of 欧博娱乐 effects of acquisitions:
Net contract assets and liabilities	(38,332)	(71,612)
Contract receivables	8,856	17,520
Prepaid expenses and o欧博娱乐r assets	13,864	(5,758)
Operating lease assets and liabilities, net	2,894	(997)
Accounts payable	(22,742)	(5,801)
Accrued salaries and benefits	405	1,512
Accrued subcontractors and o欧博娱乐r direct costs	(2,173)	6,754
Accrued expenses and o欧博娱乐r current liabilities	(18,311)	(3,253)
Income tax receivable and payable	3,999	(1,572)
O欧博娱乐r liabilities	233	771
Net Cash Provided by Operating Activities	19,879	6,409

Cash Flows from Investing Activities
Capital expenditures for property and equipment and capitalized software	(13,139)	(11,026)
Proceeds from working capital adjustments related to prior business acquisition	鈥�	2,911
Payments for business acquisitions, net of cash acquired	(32,664)	鈥�
Net Cash Used in Investing Activities	(45,803)	(8,115)

Cash Flows from Financing Activities
Advances from working capital facilities	669,437	869,529
Payments on working capital facilities	(624,553)	(838,259)
Proceeds from o欧博娱乐r short-term borrowings	7,632	鈥�
Repayments of o欧博娱乐r short-term borrowings	(2,483)	鈥�
Receipt of restricted contract funds	4,940	10,967
Payment of restricted contract funds	(3,962)	(20,550)
Debt issuance costs	鈥�	(4,776)
Payments of principal portion of finance leases	(1,183)	鈥�
Proceeds from exercise of options	278	194
Dividends paid	(5,271)	(5,280)
Net payments for stock issuances and buybacks	(20,588)	(20,778)
Payments on business acquisition liabilities	鈥�	(121)
Net Cash Provided by (Used in) Financing Activities	24,247	(9,074)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash	179	(1,189)

Decrease in Cash, Cash Equivalents, and Restricted Cash	(1,498)	(11,969)
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听听听 11,470	$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 8,464

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听听听 19,129	$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 6,473
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听听 8,450	$听听听听听听听听听听听听听听听听听听听听听听听听 12,373
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听听听听 20,243

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


	Three Months Ended		Six Months Ended
	June 30,听		June 30,听
Client Markets:	2023	2022	2023	2022
Energy, environment, infrastructure, and disaster recovery	41听%	41听%	40听%	41听%
Health and social programs	41听%	37听%	42听%	38听%
Security and o欧博娱乐r civilian & commercial	18听%	22听%	18听%	21听%
Total	100听%	100听%	100听%	100听%

	Three Months Ended		Six Months Ended
	June 30,听		June 30,听
Client Type:	2023	2022	2023	2022
U.S. federal government	55听%	53听%	55听%	53听%
U.S. state and local government	16听%	15听%	16听%	15听%
International government	5听%	7听%	5听%	7听%
Total Government	76听%	75听%	76听%	75听%
Commercial	24听%	25听%	24听%	25听%
Total	100听%	100听%	100听%	100听%

	Three Months Ended		Six Months Ended
	June 30,听		June 30,听
Contract Mix:	2023	2022	2023	2022
Time-and-materials	42听%	40听%	42听%	40听%
Fixed-price	45听%	44听%	45听%	44听%
Cost-based	13听%	16听%	13听%	16听%
Total	100听%	100听%	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.听 Client type is an indicator of 欧博娱乐 variety of our client base.听 Revenue by contract mix provides insight in terms of 欧博娱乐 degree of performance risk that we have assumed.

^(14)听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.

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SOURCE ICF