EX-99.1 2 dex991.htm EXHIBIT 99.1 -- PRESS RELEASE Exhibit 99.1 -- Press Release

Exhibit 99.1

LOGO

NEWS RELEASE

ICF International Reports Second Quarter 2009 Results

Core Business Revenue Up 41 Percent

Gross Margin Increased to 40.8 Percent

Fully Diluted EPS Reached $0.33

FOR IMMEDIATE RELEASE

Contacts:

Douglas Beck, ICF International, 1.703.934.3820

Lynn Morgen / Betsy Brod, MBS Value Partners, 1.212.750.5800

FAIRFAX, Va. (August 6, 2009)—ICF International, Inc. (NASDAQ:ICFI), a leading provider of consulting services and technology solutions to government and commercial clients, reported results for the second quarter ended June 30, 2009.

Second Quarter Results and Highlights

For the second quarter, core business1 revenue inclusive of the Macro acquisition increased 41 percent to $160.6 million, from the $113.7 million reported for last year’s second quarter. Total revenue was $175.4 million and included revenue of $14.8 million from The Road Home contract, which was completed on schedule in June 2009. In last year’s second quarter, total revenue was $184.1 million and included $70.4 million in Road Home contract revenue.

Gross profit was $71.5 million or 40.8 percent of revenue, up from $64.8 million or 35.2 percent of revenue in last year’s second quarter. Net income was $5.2 million, or $0.33 per diluted share, including non-cash stock compensation expense of $2.1 million. For the 2008 second quarter, the Company reported net income of $7.9 million, or $0.52 per diluted share, which included non-cash stock compensation of $1.7 million. The fully diluted weighted average number of shares outstanding for the 2009 second quarter was 15.7 million compared to 15.2 million in last year’s second quarter.

“Strong demand for ICF’s advisory and implementation services continued across most of our key market areas in the second quarter. We also maintained solid profitability during this transition period marked by the completion of The Road Home contract and the integration of Macro International, which we acquired on March 31, 2009. Our Health, Human Services, and Social Programs market, which includes Macro, more than doubled and accounted for 48 percent of core business revenue. Organic growth for this market was 28 percent. Energy, Environment, and Infrastructure, which represented 43 percent of the core business, grew by 5 percent, reflecting continued 20 percent plus growth in domestic energy efficiency programs and climate change work, which more than offset the decline in our commercial aviation business and push-outs of certain state and local projects,” said Sudhakar Kesavan, ICF Chairman and Chief Executive Officer.

 

1

Excludes The Road Home contract


“The integration of the Macro acquisition is proceeding on schedule, and we are working closely with our colleagues at Macro to tap into the significant cross-selling opportunities that leverage our combined capabilities and client relationships,” Mr. Kesavan said.

Backlog and New Business Awards

Backlog was $1.2 billion at the end of the 2009 second quarter. Funded backlog was $448 million, or 37 percent of the total.

The total value of contracts awarded in the second quarter of 2009 was $143 million.

Key contracts won in the second quarter included:

 

 

Health Informatics: A new five-year contract valued at more than $60 million with the National Institutes of Health (NIH) to provide support for biomedical and clinical services, such as data collection and analysis, information dissemination, and outreach initiatives for multiple NIH Institutes and Centers. ICF will support key programs related to HIV/AIDS, genetics, cancer, rare diseases, dietary supplements, clinical trials, treatment guidelines, and other federal health initiatives.

 

 

IT Management Services: A new five-year task order valued at approximately $17 million under ICF’s U.S. Department of State, Worldwide Program Management Support Services blanket purchase agreement (BPA) to provide program management support services to the Bureau of Consular Affairs, Consular Systems and Technology Division (CA/CST). These services cover nine program areas including information technology governance and planning, process improvement, earned value management, and program management.

 

 

Defense Software Support Services: A recompeted three-year contract valued at $9.3 million with the Defense Contract Management Agency (DCMA) to provide software support services to the Agency’s Information Technology Customer Service organization and the eTools program. DCMA works directly with defense suppliers to ensure efficient, cost-effective delivery of supplies and services, and eTools is DCMA’s Web-based suite of acquisitions services applications.

 

 

Transportation Security Program Management Support: A new five-year subcontract valued at $10 million with the Transportation Security Administration’s (TSA) Office of Security Technology (OST) to provide program management and acquisition support. ICF is working to support the day-to-day operations of OST’s program management office and its support organizations.

Summary and Outlook

“ICF continues to benefit from its established leadership in key growth markets,” Mr. Kesavan noted. “Core business revenue, exclusive of The Road Home contract and the Macro acquisition, increased 9.2 percent year-over-year and 10.5 percent sequentially, and is on track to grow by about 15 percent in 2009 to approximately $500 million. Organic growth for the year is estimated at 12 percent to 13 percent.”

“We are reaffirming our guidance for total full year 2009 revenues of $660 million to $680 million and earnings per diluted share of $1.30 to $1.35, based on approximately 15.8 million weighted average shares outstanding and an effective annual tax rate of 40.5 percent,” Mr. Kesavan said.

“We expect third quarter core business revenues to be between $165 million to $170 million. The ramp-up of several recently-won contracts, should result in growth for the quarter over the comparable prior year quarter, excluding the recent Macro acquisition, of between 11 percent and 15 percent. Earnings per diluted share for the period are expected to be in the range of $0.28 to $0.30 based on approximately 15.8 million weighted average shares outstanding and a tax rate of 41.6 percent,” Mr. Kesavan noted.


About ICF International

ICF International (NASDAQ:ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, climate change, environment, transportation, social programs, health, defense, and emergency management markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 3,500 employees serve these clients worldwide. ICF’s Web site is www.icfi.com.

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 the 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 the 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 other factors that could cause our actual results to differ from those indicated in forward-looking statements are included in the “Risk Factors” section of our annual report on Form 10-K for the fiscal year ended December 31, 2008 and our other filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and we specifically disclaim any obligation to update these statements in the future.


ICF International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)

(in thousands, except per share amounts)

 

     Three months ended
June 30,
    Six months ended
June 30,
 
     2009     2008     2009     2008  

Gross Revenue

   $ 175,405      $ 184,064      $ 333,267      $ 359,212   

Direct Costs

     103,911        119,310        203,148        239,717   

Operating costs and expenses:

        

Indirect and selling expenses

     55,698        46,856        100,987        84,093   

Depreciation and amortization

     2,499        1,178        4,058        2,186   

Amortization of intangible assets

     3,160        2,425        4,907        4,200   
                                

Total operating costs and expenses

     61,357        50,459        109,952        90,479   
                                

Operating Income

     10,137        14,295        20,167        29,016   

Interest expense

     (1,500     (1,037     (2,236     (2,247

Other income (expense)

     194        (2     360        (52
                                

Income before taxes

     8,831        13,256        18,291        26,717   

Provision for income taxes

     3,662        5,358        7,240        11,004   
                                

Net income

   $ 5,169      $ 7,898      $ 11,051      $ 15,713   
                                

Earnings per Share:

        

Basic

   $ 0.34      $ 0.54      $ 0.73      $ 1.08   
                                

Diluted

   $ 0.33      $ 0.52      $ 0.71      $ 1.04   
                                

Weighted-average Shares:

        

Basic

     15,204        14,586        15,142        14,534   
                                

Diluted

     15,710        15,179        15,647        15,174   
                                


ICF International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

 

     June 30, 2009     December 31, 2008  
     (Unaudited)        

Assets

    

Current Assets:

    

Cash and cash equivalents

   $ 4,373      $ 1,536   

Contract receivables, net

     169,531        150,778   

Prepaid expenses and other

     7,528        4,507   

Income tax receivable

     1,177        3,530   

Restricted cash

     309        2,180   

Deferred income taxes

     7,633        4,186   
                

Total current assets

     190,551        166,717   
                

Total property and equipment, net

     22,538        13,373   

Other assets:

    

Goodwill

     302,237        198,724   

Other intangible assets, net

     37,308        16,844   

Restricted cash

     2,100        2,078   

Other assets

     6,696        3,281   
                

Total assets

   $ 561,430      $ 401,017   
                

Liabilities and Stockholders’ Equity

    

Current Liabilities:

    

Accounts payable

   $ 30,050      $ 27,740   

Accrued expenses

     29,989        35,295   

Accrued salaries and benefits

     27,962        27,405   

Deferred revenue

     13,143        12,352   
                

Total current liabilities

     101,144        102,792   
                

Long-term liabilities:

    

Long-term debt

     221,673        80,000   

Deferred rent

     2,060        2,361   

Deferred income taxes

     11,562        10,849   

Other

     5,084        2,098   
                

Total Liabilities

     341,523        198,100   

Commitments and Contingencies

    

Stockholders’ Equity:

    

Preferred stock, par value $.001 per share; 5,000,000 shares authorized; none issued

     —          —     

Common stock, $.001 par value; 70,000,000 shares authorized; 15,315,472 and 15,188,320 issued; and 15,314,488 and 15,106,522 outstanding as of June 30, 2009, and December 31, 2008, respectively

     15        15   

Additional paid-in capital

     125,171        120,550   

Treasury stock, at cost

     (25     (1,474

Accumulated other comprehensive loss

     (403     (272

Stockholder notes receivable

     (12     (12

Retained earnings

     95,161        84,110   
                

Total stockholders’ equity

     219,907        202,917   
                

Total liabilities and stockholders’ equity

   $ 561,430      $ 401,017   
                


ICF International, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

     Six months ended
June 30,
 
     2009     2008  

Cash flows from operating activities

    

Net income

   $ 11,051      $ 15,713   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     8,965        6,386   

Non-cash compensation

     3,775        3,370   

Loss on disposal of fixed assets

     17        141   

Deferred income taxes

     (2,734     (5,693

Changes in operating assets and liabilities, net of the effect of acquisitions:

    

Contract receivables, net

     17,833        53,928   

Prepaid expenses and other

     (5,005     1,249   

Accounts payable

     (1,334     (49,755

Accrued expenses

     (9,189     (9,722

Accrued salaries and benefits

     (6,785     (6,185

Deferred revenue

     (1,783     (2,654

Income tax receivable

     2,353        1,217   

Deferred rent

     (29     307   

Other liabilities

     362        (1,187
                

Net cash provided by operating activities

     17,497        7,115   
                

Cash flows from investing activities

    

Capital expenditures

     (2,579     (3,756

Capitalized software development costs

     (235     (147

Payments for business acquisitions, net of cash acquired

     (156,902     (51,282
                

Net cash used in investing activities

     (159,716     (55,185
                

Cash flows from financing activities

    

Advances from working capital facilities

     235,008        169,695   

Payments on working capital facilities

     (93,335     (123,878

Restricted cash

     1,849        762   

Debt issue costs

     (630     (1,309

Proceeds from exercise of options

     1,761        932   

Tax benefits of stock option exercises

     1,007        1,038   

Net payments for stockholder issuances and buybacks

     (473     (20
                

Net cash provided by financing activities

     145,187        47,220   

Effect of Exchange Rate on Cash

     (131     135   
                

Net increase (decrease) in cash and cash equivalents

     2,837        (715

Cash and cash equivalents, beginning of period

     1,536        2,733   
                

Cash and cash equivalents, end of period

   $ 4,373      $ 2,018   
                

Supplemental disclosure of cash flow information

    

Cash paid during the period for:

    

Interest

   $ 1,767      $ 1,671   
                

Income taxes

   $ 6,678      $ 14,541