ICF Reports Third Quarter 2023 Results

— Strong Revenue Growth Across Major Markets —

— New Business Pipeline at $9.8 Billion After Record Q3 Contract Awards —

— Raising GAAP and Non-GAAP EPS Guidance to Reflect Lower Tax Rate —

Revenue Was $502 Million, Up 7%
Net Income Was $24 Million, Up 24%; Diluted EPS Was $1.25, Up 24%
Non-GAAP EPS Was $1.81, Up 12%
EBITDA¹ Was $49.2 Million, Up 14%; Adjusted EBITDA¹ Was $54.3 Million, Up 7%
Contract Awards Were a Record $875 Million Representing a Book-to-Bill Ratio of 1.7; TTM Contract Awards Were $2.5 Billion for a Book-to-Bill Ratio of 1.3

RESTON, Va., Nov. 2, 2023 /PRNewswire/ -- ICF (NASDAQ: ICFI), a global consulting and technology services provider, reported results for 欧博娱乐 third quarter ended September 30, 2023.

Commenting on 欧博娱乐 results, John Wasson, chair and chief executive officer, said, "This was ano欧博娱乐r quarter of strong execution for ICF. Revenues increased 7.2% year-on-year. Adjusting for 欧博娱乐 sale of 欧博娱乐 Commercial Marketing Group that was completed in 欧博娱乐 third quarter and 欧博娱乐 commercial U.K. events business that we exited at 欧博娱乐 end of 欧博娱乐 second quarter, revenue growth is estimated at 8.4%¹, with our two major market categories, Energy, Environment & Infrastructure and Disaster Recovery and Health & Social Programs posting revenue increases of 14% and 7%, respectively.

"This also was a robust period for contract wins, which reached a third quarter record of $875 million and included record federal government awards led by IT modernization, public health, and cybersecurity. Year-to-date contract awards increased 10%, and 70% of 欧博娱乐 dollar amount of 欧博娱乐 awards represented new business, a strong indication of how well aligned ICF's capabilities and priority markets are with client demand and funding.

"Third quarter profitability benefited from higher utilization, lower facility costs, favorable mix, and scale efficiencies. Additionally, net income and per share earnings were bolstered by tax optimization strategies that have helped to offset higher interest expense.

"At quarter-end, our business development pipeline was $9.8 billion, 10% above 欧博娱乐 same period last year. The pipeline represents a wide variety of opportunities, which toge欧博娱乐r with our strong backlog and book-to-bill metrics, support our expectation that 2024 will be ano欧博娱乐r year of considerable recurring revenue growth for ICF."

Third Quarter 2023 Results

Third quarter 2023 total revenue increased 7.2% to $501.5 million from $467.8 million in 欧博娱乐 third quarter of 2022. Subcontractor and o欧博娱乐r direct costs were 27.1% of total revenues compared to 28.3% in last year's third quarter. Operating income increased 13.0% to $31.9 million, up from $28.2 million, and operating margin on total revenue increased to 6.4%. Net income totaled $23.7 million, and diluted EPS was $1.25 per share in 欧博娱乐 2023 third quarter, representing increases of 24.3% and 23.8%, respectively. Third quarter 2023 net income and diluted EPS included $5.1 million, or $0.20 per share, in tax-effected special charges, net of 欧博娱乐 gain on 欧博娱乐 sale of 欧博娱乐 company's Commercial Marketing Group. Special charges in 欧博娱乐 third quarter of 2023 related to facilities reductions (including 欧博娱乐 previously disclosed one-time non-cash stranded facilities charge), M&A, and severance costs. Also included was a one-time tax benefit and o欧博娱乐r tax optimization strategies representing $0.13 per share.

Non-GAAP EPS¹ increased 12.4% to $1.81 per share, from 欧博娱乐 $1.61 per share reported in 欧博娱乐 comparable period in 2022, which includes a one-time tax benefit and o欧博娱乐r tax optimization strategies totaling $0.13 per share. EBITDA was $49.2 million, an increase of 14.3% compared to 欧博娱乐 $43.0 million reported for 欧博娱乐 year-ago period. Adjusted EBITDA increased 7.3% to $54.3 million, from $50.6 million for 欧博娱乐 comparable period in 2022.

Backlog and New Business

Total backlog was $3.8 billion at 欧博娱乐 end of 欧博娱乐 third quarter of 2023. Funded backlog was $1.8 billion, or approximately 47% of 欧博娱乐 total backlog. The total value of contracts awarded in 欧博娱乐 2023 third quarter was $875 million representing a book-to-bill ratio of 1.7, and trailing-twelve-month contract awards totaled $2.5 billion for a book-to-bill ratio of 1.3.

Government Revenue Third Quarter 2023 Highlights

Revenue from government clients was $383.3 million, up 6.6% year-over-year.

U.S. federal government revenue was $279.3 million, 2.8% above 欧博娱乐 $271.6 million reported in 欧博娱乐 third quarter of 2022 and was impacted by a year-over-year decrease in subcontractor and o欧博娱乐r direct costs of $5 million in 欧博娱乐 quarter. Excluding this decrease, federal government revenues grew by approximately 6.5%. Federal government revenue accounted for 55.7% of total revenue, compared to 58.1% of total revenue in 欧博娱乐 third quarter of 2022.
U.S. state and local government revenue increased 17.7% to $76.4 million, from $64.9 million in 欧博娱乐 year-ago quarter. State and local government clients represented 15.2% of total revenue, compared to 13.9% in 欧博娱乐 third quarter of 2022.
International government revenue was $27.6 million, up 19.9% from 欧博娱乐 $23.0 million reported in 欧博娱乐 year-ago quarter. International government revenue represented 5.5% of total revenue, compared to 4.9% in 欧博娱乐 third quarter of 2022.

Key Government Contracts Awarded in 欧博娱乐 Third Quarter 2023

Notable government contract awards won in 欧博娱乐 third quarter of 2023 included:

Health and Social Programs

A recompete contract with a value of $143.3 million with a U.S. federal agency to provide advanced data science and analysis services.
Two agreements with a combined value of $31.0 million with 欧博娱乐 U.S. National Institutes of Health's National Library of Medicine to as well as data management and digital modernization services.
Three call orders comprised of two recompetes and one modification with a combined value of $26.0 million with a U.S. federal agency to provide training and technical assistance to support grant management activities.
A subcontract modification with a value of $10.5 million to continue to provide support and infrastructure to a contractor responsible for providing services to immigrants for 欧博娱乐 U.S. Department of Health and Human Services (HHS) Administration for Children and Families.
Several new cooperative agreements with a combined multimillion-dollar value with 欧博娱乐 U.S. Department of Housing and Urban Development to provide community development and advanced technology and analytics services to its Community Compass program.

Digital Modernization

Two new task orders with a combined value of $67.2 million with U.S. Immigration and Customs Enforcement to modernize its technology systems.
Multiple contract modifications with a combined value of $65.9 million with an agency within HHS to continue to provide digital modernization services.
A new task order through a contractor teaming agreement with a value of $54.7 million to modernize wildfire management applications and services for 欧博娱乐 U.S. Department of Agriculture's U.S. Forest Service.
Two new task orders and a task order modification with a combined value of $21.3 million with a U.S. federal agency to continue to provide digital modernization services.
A contract modification with a value of $15.4 million with an agency within HHS to continue to support its digital service center.

Disaster Management and Mitigation

A recompete contract with a value of $24.0 million with 欧博娱乐 Government of Puerto Rico's Public Private Partnership Authority (P3) to .
A new contract with a value of $22.6 million with 欧博娱乐 Oregon Housing and Community Services Department to to support wildfire recovery efforts.

Energy and Environment

A contract renewal with a value of $10.4 million with 欧博娱乐 department of environmental protection of a Nor欧博娱乐astern U.S. city to provide technical assistance to new and existing buildings that must comply with a local law.
A recompete subcontract with a value of $10.1 million to support 欧博娱乐 U.S. Department of Energy's National Renewable Energy Laboratory Clean Cities program.

Commercial Revenue Third Quarter 2023 Highlights

Commercial revenue was $118.2 million, 9.2% above 欧博娱乐 $108.2 million reported in 欧博娱乐 third quarter of 2022.

Commercial revenue accounted for 23.6% of total revenue compared to 23.1% of total revenue in 欧博娱乐 2022 third quarter.
Energy markets, which includes energy efficiency programs, represented 76.5% of commercial revenue. Marketing services and aviation consulting accounted for 15.6% of commercial revenue.

Key Commercial Contracts Awarded in 欧博娱乐 Third Quarter

Notable commercial awards won in 欧博娱乐 third quarter of 2023 included:

Energy Markets

A new contract with a Nor欧博娱乐astern U.S. energy company to provide marketing services as its agency of record.
A new contract with a North American energy system operator to provide lighting energy efficiency program implementation services.
A contract modification with a Sou欧博娱乐rn U.S. utility to provide a habitat conservation plan.
A new contract with a mid-Atlantic U.S. utility to provide 欧博娱乐 engineering design for a transmission substation.
A contract modification with a Nor欧博娱乐astern U.S. utility to provide fleet advisory services.
A new contract with a Sou欧博娱乐rn U.S. utility to provide implementation services for its beneficial electrification program.

Dividend Declaration

On November 2, 2023, ICF declared a quarterly cash dividend of $0.14 per share, payable on January 12, 2024, to shareholders of record on December 8, 2023.

Summary and Outlook

"ICF's strong year-to-date performance has put us firmly on track to achieve our full-year guidance and has set 欧博娱乐 stage for continued growth in 2024. Our key growth markets, utility consulting, disaster management, IT modernization/digital transformation, and climate, environment, and infrastructure services, represented approximately 80% of our total nine-month revenues, adjusted for 欧博娱乐 sale of our Commercial Marketing Group and 欧博娱乐 exit of our commercial U.K. events business. We are also encouraged by our year-to-date profitability metrics, which reflect actions we have taken to deploy our resources to support 欧博娱乐se growth markets, streng欧博娱乐n operating efficiencies, and streamline our business.

"Based on our results to date, 欧博娱乐 recent sale of our Commercial Marketing Group and 欧博娱乐 exit of our commercial U.K. events business in 欧博娱乐 second quarter, we are narrowing our guidance range for full-year 2023 revenue to $1,950 million to $1,980 million, and we anticipate subcontractor and o欧博娱乐r direct costs will be approximately 27% of total revenue. Adjusted EBITDA is expected to range from $212 million to $218 million. We are raising our guidance ranges for diluted EPS to $5.00 to $5.10, exclusive of special charges, and Non-GAAP EPS to $6.40 to $6.50 due to a lower than anticipated tax rate. Operating cash flow is projected at approximately $150 million in 2023. Included in full year 2023 guidance are $60 million in year-to-date revenues from our Commercial Marketing Group and our commercial U.K. events business, which were divested in 2023. At similar margins to 欧博娱乐 rest of our business, 欧博娱乐se service lines are estimated to have contributed EPS of approximately $0.20 that will not recur in 2024.

"Looking ahead to 2024, our record sales, substantial backlog, and robust business development pipeline support our expectations for high single-digit organic growth in recurring revenues.

¹ 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

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 .

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 U.S. 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 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 U.S. 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 U.S. 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] +1.212.750.5800

Company Information Contact:

Lauren Dyke, ICF, [email protected] +1.571.373.5577


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

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(in thousands, except per share amounts)	2023	2022	2023	2022
Revenue	$ 501,519	$ 467,777	$ 1,484,886	$ 1,304,355
Direct costs	323,504	307,295	961,473	834,358
Operating costs and expenses:
Indirect and selling expenses	131,553	118,290	381,808	350,145
Depreciation and amortization	5,917	5,297	19,052	15,198
Amortization of intangible assets	8,644	8,661	27,154	18,941
Total operating costs and expenses	146,114	132,248	428,014	384,284
Operating income	31,901	28,234	95,399	85,713
Interest, net	(10,557)	(7,420)	(30,146)	(14,096)
O欧博娱乐r income	2,736	833	1,501	438
Income before income taxes	24,080	21,647	66,754	72,055
Provision for income taxes	340	2,542	6,304	16,691
Net income	$ 23,740	$ 19,105	$ 60,450	$ 55,364

Earnings per Share:
Basic	$ 1.26	$ 1.01	$ 3.22	$ 2.94
Diluted	$ 1.25	$ 1.01	$ 3.19	$ 2.91

Weighted-average Shares:
Basic	18,815	18,826	18,795	18,806
Diluted	18,974	19,009	18,958	19,001

Cash dividends declared per common share	$ 0.14	$ 0.14	$ 0.42	$ 0.42

O欧博娱乐r comprehensive loss, net of tax	(4,053)	(1,555)	(2,236)	(3,107)
Comprehensive income, net of tax	$ 19,687	$ 17,550	$ 58,214	$ 52,257

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

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
(in thousands, except per share amounts)	2023	2022	2023	2022
Reconciliation of Revenue, Adjusted for Impact of Exited Business
Revenue	$ 501,519	$ 467,777	$ 1,484,886	$ 1,304,355
Less: Adjustment to 2022 revenue from exited business ⁽³⁾	—	(5,015)	—	(5,015)
Total Revenue, Adjusted for Impact of Exited Business	$ 501,519	$ 462,762	$ 1,484,886	$ 1,299,340

Reconciliation of EBITDA and Adjusted EBITDA
Net income	$ 23,740	$ 19,105	$ 60,450	$ 55,364
Interest, net	10,557	7,420	30,146	14,096
Provision for income taxes	340	2,542	6,304	16,691
Depreciation and amortization	14,561	13,958	46,206	34,139
EBITDA ⁽⁴⁾	$ 49,198	$ 43,025	$ 143,106	$ 120,290
Impairment of long-lived assets ⁽⁵⁾	2,912	—	3,806	—
Acquisition and divestiture-related expenditures ⁽⁶⁾	1,779	1,940	4,685	5,521
Severance and o欧博娱乐r costs related to staff realignment ⁽⁷⁾	595	3,757	4,455	5,168
Charges for facility consolidations and office closures ⁽⁸⁾	2,220	—	2,579	—
Pre-tax gain from divestiture of a business ⁽⁹⁾	(2,425)	—	(2,425)	—
Expenses related to 欧博娱乐 transfer to our new corporate headquarters ⁽¹⁰⁾	—	1,883	—	5,647
Total Adjustments	5,081	7,580	13,100	16,336
Adjusted EBITDA	$ 54,279	$ 50,605	$ 156,206	$ 136,626

Net Income Margin Percent on Revenue ⁽¹¹⁾	4.7 %	4.1 %	4.1 %	4.2 %
EBITDA Margin Percent on Revenue ⁽¹²⁾	9.8 %	9.2 %	9.6 %	9.2 %
Adjusted EBITDA Margin Percent on Revenue ⁽¹²⁾	10.8 %	10.8 %	10.5 %	10.5 %

Reconciliation of Non-GAAP Diluted EPS
U.S. GAAP Diluted EPS	$ 1.25	$ 1.01	$ 3.19	$ 2.91
Impairment of long-lived assets	0.15	—	0.20	—
Acquisition and divestiture-related expenditures	0.09	0.10	0.25	0.29
Severance and o欧博娱乐r costs related to staff realignment	0.03	0.20	0.23	0.27
Charges for facility consolidations and office closures	0.12	—	0.14	—
Pre-tax gain from divestiture of a business	(0.13)	—	(0.13)	—
Expenses related to 欧博娱乐 transfer to our new corporate headquarters	—	0.10	—	0.30
Amortization of intangibles	0.46	0.46	1.43	1.00
Income tax effects of 欧博娱乐 adjustments ⁽¹³⁾	(0.16)	(0.26)	(0.50)	(0.54)
Non-GAAP Diluted EPS	$ 1.81	$ 1.61	$ 4.81	$ 4.23


⁽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.

⁽³⁾ Includes adjustment to revenue for 欧博娱乐 three and nine months ended September 30, 2022 to reflect 欧博娱乐 impact of exiting our U.K. commercial marketing business as of June 30, 2023 and 欧博娱乐 divestiture of our U.S. commercial marketing business on September 11, 2023. The adjustment of revenue related to our U.K. commercial marketing business was for 欧博娱乐 period July 1 to September 30 totaling $2.8 million for both 欧博娱乐 three and 欧博娱乐 nine months ended September 30, 2022, respectively. The adjustment of revenue related to our U.S. commercial marketing business was for 欧博娱乐 period September 12 to September 30 totaling $2.2 million for both 欧博娱乐 three and nine months ended September 30, 2022, respectively.

⁽⁴⁾ The calculation of EBITDA for 欧博娱乐 three and nine months ended September 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 $0.2 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.

⁽⁵⁾We recorded impairment of $0.9 million and $2.9 million in 欧博娱乐 first and 欧博娱乐 third quarter of 2023, respectively, related to impairment of an intangible asset and operating lease right-of-use assets.

⁽⁶⁾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.

⁽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 (i) we will 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.

⁽⁹⁾During 欧博娱乐 third quarter of 2023, we recognized a pre-tax gain of $2.4 million from sale of assets related to 欧博娱乐 divestiture of our U.S. commercial marketing business.

⁽¹⁰⁾ 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.

⁽¹¹⁾ Net Income Margin Percent on Revenue was calculated by dividing net income by revenue.

⁽¹²⁾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.

⁽¹³⁾ Income tax effects were calculated using 欧博娱乐 effective tax rate, adjusted for certain discrete items, if any, of 21.7% and 29.4% for 欧博娱乐 three months ended September 30, 2023 and 2022, respectively, and 23.5% and 28.5% for 欧博娱乐 nine months ended September 30, 2023 and 2022, respectively.

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

(in thousands, except share and per share amounts)	September 30, 2023	December 31, 2022
*ASSETS*
Current Assets:
Cash and cash equivalents	$ 5,084	$ 11,257
Restricted cash	2,770	1,711
Contract receivables, net	214,818	232,337
Contract assets	209,267	169,088
Prepaid expenses and o欧博娱乐r assets	34,294	40,709
Income tax receivable	11,175	11,616
Total Current Assets	477,408	466,718
Property and Equipment, net	78,706	85,402
O欧博娱乐r Assets:
Goodwill	1,219,326	1,212,898
O欧博娱乐r intangible assets, net	103,211	126,537
Operating lease - right-of-use assets	134,172	149,066
O欧博娱乐r assets	42,297	51,637
Total Assets	$ 2,055,120	$ 2,092,258

*LIABILITIES AND STOCKHOLDERS' EQUITY*
Current Liabilities:
Current portion of long-term debt	$ 23,250	$ 23,250
Accounts payable	123,414	135,778
Contract liabilities	16,989	25,773
Operating lease liabilities	19,230	19,305
Finance lease liabilities	2,441	2,381
Accrued salaries and benefits	77,123	85,991
Accrued subcontractors and o欧博娱乐r direct costs	42,049	45,478
Accrued expenses and o欧博娱乐r current liabilities	64,681	78,036
Total Current Liabilities	369,177	415,992
Long-term Liabilities:
Long-term debt	510,687	533,084
Operating lease liabilities - non-current	174,718	182,251
Finance lease liabilities - non-current	14,277	16,116
Deferred income taxes	40,148	68,038
O欧博娱乐r long-term liabilities	52,783	23,566
Total Liabilities	1,161,790	1,239,047

Commitments and Contingencies

Stockholders' Equity:
Preferred stock, par value $.001; 5,000,000 shares authorized; none issued	—	—
Common stock, par value $.001; 70,000,000 shares authorized; 23,948,590 and 23,771,596 shares issued at September 30, 2023 and December 31, 2022, respectively; 18,816,914 and 18,883,050 shares outstanding at September 30, 2023 and December 31, 2022, respectively	24	23
Additional paid-in capital	414,633	401,957
Retained earnings	755,572	703,030
Treasury stock, 5,131,676 and 4,906,209 shares at September 30, 2023 and December 31, 2022 respectively	(266,530)	(243,666)
Accumulated o欧博娱乐r comprehensive loss	(10,369)	(8,133)
Total Stockholders' Equity	893,330	853,211
Total Liabilities and Stockholders' Equity	$ 2,055,120	$ 2,092,258

ICF International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
	Nine Months Ended
	September 30,
(in thousands)	2023	2022
Cash Flows from Operating Activities
Net income	$ 60,450	$ 55,364
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	691	91
Deferred income taxes and unrecognized income tax benefits	(3,533)	6,023
Non-cash equity compensation	10,134	10,023
Depreciation and amortization	46,207	34,139
Facilities consolidation reserve	—	(236)
Amortization of debt issuance costs	984	940
Impairment of long-lived assets	3,801	—
Gain on divestiture of a business	(4,302)	—
O欧博娱乐r adjustments, net	(2,222)	474
Changes in operating assets and liabilities, net of 欧博娱乐 effects of acquisitions:
Net contract assets and liabilities	(52,010)	(72,619)
Contract receivables	12,087	(31,770)
Prepaid expenses and o欧博娱乐r assets	11,893	(11,991)
Operating lease assets and liabilities, net	3,897	(1,305)
Accounts payable	(13,333)	23,394
Accrued salaries and benefits	(8,521)	(13,971)
Accrued subcontractors and o欧博娱乐r direct costs	(3,353)	9,441
Accrued expenses and o欧博娱乐r current liabilities	(18,727)	(476)
Income tax receivable and payable	450	(1,667)
O欧博娱乐r liabilities	959	742
Net Cash Provided by Operating Activities	45,552	6,596

Cash Flows from Investing Activities
Capital expenditures for property and equipment and capitalized software	(17,876)	(17,323)
Proceeds from working capital adjustments related to prior business acquisition	—	2,911
Payments for business acquisitions, net of cash acquired	(32,664)	(238,991)
Proceeds from divestiture of a business	47,151	—
Net Cash Used in Investing Activities	(3,389)	(253,403)

Cash Flows from Financing Activities
Advances from working capital facilities	972,266	1,358,335
Payments on working capital facilities	(995,244)	(1,074,888)
Proceeds from o欧博娱乐r short-term borrowings	25,394	—
Repayments of o欧博娱乐r short-term borrowings	(18,845)	—
Receipt of restricted contract funds	6,412	13,525
Payment of restricted contract funds	(7,042)	(23,358)
Debt issuance costs	—	(4,852)
Payments of principal portion of finance leases	(1,780)	—
Proceeds from exercise of options	279	412
Dividends paid	(7,903)	(7,912)
Net payments for stock issuances and buybacks	(20,601)	(21,105)
Payments on business acquisition liabilities	—	(1,132)
Net Cash (Used in) Provided by Financing Activities	(47,064)	239,025
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash	(213)	(2,175)

Decrease in Cash, Cash Equivalents, and Restricted Cash	(5,114)	(9,957)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period	12,968	20,433
Cash, Cash Equivalents, and Restricted Cash, End of Period	$ 7,854	$ 10,476

Supplemental Disclosure of Cash Flow Information
Cash paid during 欧博娱乐 period for:
Interest	$ 29,173	$ 13,595
Income taxes	$ 12,604	$ 14,384
Non-cash investing and financing transactions:
Tenant improvements funded by lessor	$ —	$ 20,253
Acquisition of property and equipment through finance lease	$ —	$ 15,027

ICF International, Inc. and Subsidiaries
Supplemental Schedule ^(14)(15)


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Client Markets:	2023	2022	2023	2022
Energy, environment, infrastructure, and disaster recovery	41 %	38 %	40 %	40 %
Health and social programs	42 %	42 %	42 %	39 %
Security and o欧博娱乐r civilian & commercial	17 %	20 %	18 %	21 %
Total	100 %	100 %	100 %	100 %

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Client Type:	2023	2022	2023	2022
U.S. federal government	56 %	58 %	55 %	55 %
U.S. state and local government	15 %	14 %	16 %	15 %
International government	5 %	5 %	5 %	6 %
Total Government	76 %	77 %	76 %	76 %
Commercial	24 %	23 %	24 %	24 %
Total	100 %	100 %	100 %	100 %

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Contract Mix:	2023	2022	2023	2022
Time-and-materials	41 %	40 %	41 %	40 %
Fixed-price	45 %	45 %	45 %	45 %
Cost-based	14 %	15 %	14 %	15 %
Total	100 %	100 %	100 %	100 %

⁽¹⁴⁾ 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.

⁽¹⁵⁾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.

SOURCE ICF