ICF International, Inc. (NASDAQ:ICFI) Q3 2020 Results Earnings Conference Call November 5, 2020 4:30 PM ET Company Participants Lynn Morgen - AdvisIRy Partners, IR John Wasson - President and CEO Bettina Welsh - Chief Financial Officer Sudhakar Kesavan - Executive Chairman James Morgan - Chief, Business Operations Conference Call Participants Tobey Sommer - Truist Securities Sam England - Berenberg Joseph Vafi - Canaccord Andrew Nicholas - William Blair Marc Riddick - Sidoti Operator Welcome to the Third Qu ...

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number: 001-33045 ICF International, Inc. (Exact name of Registrant as Specified in its Charter) Delaware 22-3661438 (State or Other Ju ...

| --- | --- | --- | --- | --- | --- | --- | |-------------|----------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | ICF Investor Presentation | | | | | | | August 2020 | | | | | | | Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events, or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any forward-l ...

ICF International, Inc. (NASDAQ:ICFI) Q2 2020 Earnings Conference Call August 4, 2020 4:30 PM ET Company Participants Lynn Morgen - Investor Relations John Wasson - President and Chief Executive Officer Bettina Welsh - Chief Financial Officer Sudhakar Kesavan - Executive Chairman James Morgan - Chief, Business Operations Conference Call Participants Joseph Vafi - Canaccord Tobey Sommer - SunTrust Sam England - Berenberg Capital Andrew Nicholas - William Blair Kevin Steinke - Barrington Research Marc Riddick ...

For the quarterly period ended June 30, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) OR ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-33045 ICF International, Inc. (Exact name of Registrant as Specified in its Charter) Delaware 22-3661438 (State or Other Jurisdi ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------------------|-------|-------|----------------------------------------|-------|-------| | | | | | | | | | | | | | | | ICF Investor Presentation & Services Conference | | | Baird 2020 Global Consumer, Technology | | | | June 2, 2020 | | | | | | ICF Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events, or performances are forward-looking statements within the meaning of ...

ICF International, Inc. (NASDAQ:ICFI) Q1 2020 Earnings Conference Call May 5, 2020 4:30 PM ET Company Participants Lynn Morgen - Investor Relations John Wasson - President and Chief Financial Officer Sudhakar Kesavan - Executive Chairman Bettina Welsh - Chief Financial Officer Conference Call Participants Tobey Sommer - SunTrust Joseph Vafi - Canaccord Andrew Nicholas - William Blair Kevin Steinke - Barrington Research Marc Riddick - Sidoti & Company Operator Welcome to the First Quarter 2020 ICF Earnings C ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Q1 2020 unaudited financials show total assets at $1.68 billion driven by the ITG acquisition, revenue at $358.2 million, and net income at $10.6 million, alongside increased debt and negative operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$1,684,023** | **$1,396,034** | | Cash and cash equivalents | $58,661 | $6,482 | | Goodwill | $905,177 | $719,934 | | **Total Liabilities** | **$993,267** | **$681,483** | | Long-term debt | $506,979 | $164,261 | | **Total Stockholders' Equity** | **$690,756** | **$714,551** | - Goodwill increased by **$185.2 million**, primarily due to the acquisition of Incentive Technology Group (ITG)[10](index=10&type=chunk)[32](index=32&type=chunk) - Long-term debt increased significantly to **$517.0 million** from **$164.3 million**, mainly to finance the ITG acquisition[10](index=10&type=chunk)[33](index=33&type=chunk) [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income (Unaudited) | (in thousands, except per share) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Revenue** | **$358,238** | **$341,254** | | Operating income | $16,319 | $21,889 | | **Net income** | **$10,612** | **$15,318** | | Diluted EPS | $0.55 | $0.80 | - Revenue increased by **5.0%** year-over-year, while operating income decreased by **25.4%** and net income decreased by **30.7%**[12](index=12&type=chunk)[101](index=101&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Unaudited) | (in thousands) | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($15,232) | ($12,688) | | Net Cash Used in Investing Activities | ($257,725) | ($9,358) | | Net Cash Provided by Financing Activities | $325,874 | $14,444 | - Cash used in investing activities significantly increased due to a **$253.0 million** payment for the acquisition of ITG[15](index=15&type=chunk)[135](index=135&type=chunk) - Cash provided by financing activities increased substantially due to net advances of **$354.6 million** from the credit facility, primarily to fund the ITG acquisition[15](index=15&type=chunk)[136](index=136&type=chunk) [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - On January 31, 2020, the Company acquired Incentive Technology Group, LLC (ITG) for **$255.0 million**, resulting in **$188.3 million** of goodwill and **$47.3 million** of other intangible assets[67](index=67&type=chunk)[68](index=68&type=chunk) - On March 3, 2020, the Company amended its Credit Facility, adding a new **$200.0 million** term loan and increasing the total facility to **$800.0 million** ($200M term, $600M revolving). Total debt outstanding was **$520.0 million** as of March 31, 2020[33](index=33&type=chunk) - The company had **$1.5 billion** in unfulfilled performance obligations as of March 31, 2020, which it expects to satisfy, on average, in one to two years[54](index=54&type=chunk) - A quarterly cash dividend of **$0.14 per share** was approved on May 5, 2020[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q1 2020 revenue growth of 5.0% to $358.2 million, a 25.4% decline in operating income to $16.3 million due to acquisition costs, and increased Days Sales Outstanding to 88 days, while monitoring COVID-19 impacts - The company is monitoring the impact of the COVID-19 pandemic, noting that while government work has seen continuity, commercial marketing services, representing **less than 15%** of 2019 revenue, will likely be impacted[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) Q1 2020 vs Q1 2019 Performance | (dollars in thousands) | 2020 | 2019 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $358,238 | $341,254 | $16,984 | 5.0% | | Direct Costs | $230,616 | $215,949 | $14,667 | 6.8% | | Operating Income | $16,319 | $21,889 | ($5,570) | (25.4%) | | Net Income | $10,612 | $15,318 | ($4,706) | (30.7%) | - The increase in revenue was driven by a **$14.6 million** increase in government client revenue, particularly from U.S. federal government clients[101](index=101&type=chunk) - Operating income decreased primarily due to increased indirect and selling expenses, costs related to the ITG acquisition, and higher amortization of intangible assets[103](index=103&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) Reconciliation of Diluted EPS to Non-GAAP Diluted EPS | | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Diluted EPS | $0.55 | $0.80 | | Special charges & Amortization | $0.34 | $0.09 | | Income tax effects | ($0.06) | ($0.02) | | **Non-GAAP EPS** | **$0.83** | **$0.87** | - Days-sales-outstanding (DSO) increased to **88 days** for Q1 2020 from **83 days** in Q4 2019, largely due to slow payments from disaster relief and rebuild efforts. Excluding these efforts, DSO was **78 days**[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its market risk disclosures since its last Annual Report on Form 10-K - There have been no material changes in the disclosures discussed in the section entitled "Quantitative and Qualitative Disclosures About Market Risk" in Part II, Item 7A of the company's Annual Report[137](index=137&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of the end of the period, with no significant changes to internal controls over financial reporting during the quarter - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[138](index=138&type=chunk) - No significant changes in internal controls over financial reporting occurred during the quarter[138](index=138&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company faces a $220.2 million claim from the State of Louisiana regarding the Road Home Program, which it believes lacks merit and has not recorded as a liability, alongside other ordinary course legal matters - The company is involved in a lawsuit with the State of Louisiana, which is seeking approximately **$220.2 million** in alleged overpayments related to the Road Home Program contract that ended in 2009[78](index=78&type=chunk)[79](index=79&type=chunk) - The company believes the claim has no merit, intends to defend its position vigorously, and has not recorded a liability as of March 31, 2020[79](index=79&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights potential material adverse effects from health epidemics like COVID-19 on demand, workforce, client decision-making, and global business conditions - A new risk factor was added concerning health epidemics and pandemics, such as COVID-19, which may have material adverse effects on the business[143](index=143&type=chunk) - Specific risks include impacts on demand for services, availability of staff and partners, slowdown of client decision-making, and potential reprioritization of client spending[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2020, the company repurchased 310,139 shares at an average price of $77.34 per share, including 206,820 shares under its repurchase program and 103,319 shares for tax withholding obligations Share Repurchase Activity for Q1 2020 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2020 | 74,269 | $90.33 | 41,800 | | Feb 2020 | 64,317 | $81.96 | 64,317 | | Mar 2020 | 171,553 | $69.99 | 100,703 | | **Total** | **310,139** | **$77.34** | **206,820** | - During the quarter, **206,820 shares** were repurchased under the stock repurchase program. The company also repurchased **103,319 shares** from employees to satisfy tax withholding obligations[148](index=148&type=chunk)[149](index=149&type=chunk) [Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None reported - None[150](index=150&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[151](index=151&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) None reported - None[152](index=152&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) The report lists several exhibits filed, including the First Amendment to the company's Business Loan and Security Agreement, certifications by the Principal Executive Officer and Principal Financial Officer, and iXBRL data files - Key exhibits filed include the First Amendment to the Fifth Amended and Restated Business Loan and Security Agreement, and certifications from the CEO and CFO pursuant to Sarbanes-Oxley[153](index=153&type=chunk)

ICF International, Inc. (NASDAQ:ICFI) Q4 2019 Earnings Conference Call February 27, 2020 4:30 PM ET Company Participants Lynn Morgen - Founding Partner, AdvisIRy Partners, IR Sudhakar Kesavan - Executive Chairman John Wasson - President and CEO James Morgan - CFO Conference Call Participants Joseph Vafi - Canaccord Genuity Tobey Sommer - SunTrust Trevor Romeo - William Blair Kevin Steinke - Barrington Research Marc Riddick - Sidoti & Company Operator Good afternoon, and welcome to the Fourth Quarter and Ful ...

Revenue Sources and Client Relationships - Approximately 38% of the company's revenue in 2019 was derived from federal government contracts, with 27% from state and local governments and international governments[89] - Commercial clients contributed approximately 35%, 36%, and 38% of revenue in 2019, 2018, and 2017 respectively, indicating a growing reliance on these clients[105] - The company’s client relationships and professional reputation are critical for winning new contracts and renewing existing ones, impacting revenue stability[94] Risks Related to Government Contracts - The company faced risks related to government budgeting and spending priorities, which could lead to delays or cancellations of expected funding[86] - Changes in government spending priorities could lead to delayed payments or failure to pay, affecting cash flow[90] - The company’s contracts may allow clients to terminate or modify them at their convenience, which could adversely affect revenue[104] Financial Performance and Cost Management - The company derived 38%, 39%, and 39% of its revenue from fixed-price contracts in 2019, 2018, and 2017 respectively, exposing it to risks of cost overruns[103] - The unpredictability of earnings could increase on fixed-price contracts if the company cannot accurately estimate and control contract costs[101] - The company may not receive revenue corresponding to the full amount of its backlog, which could adversely affect revenue and operating results[99] Compliance and Regulatory Risks - The company is subject to various compliance risks, including potential civil and criminal penalties for failing to adhere to complex laws and regulations[110] - The company must ensure compliance with various privacy and data protection laws, which could result in substantial costs and affect operational results[131] - The company may incur significant penalties under Privacy and Data Protection Laws, including fines up to 4% of annual worldwide revenue for non-compliance[131] International Operations and Market Risks - International operations expose the company to risks such as currency fluctuations and compliance with foreign laws, which could adversely affect profitability[122] - The U.K.'s exit from the EU may disrupt operations and create uncertainties regarding trade and regulatory environments[123] - Ongoing uncertainties surrounding Brexit could negatively impact customer and investor confidence, leading to market volatility[125] Cybersecurity and Technology Risks - The company faces continuous and evolving cybersecurity risks, with high-profile data breaches highlighting a hostile information security environment[127] - The company’s success in competitive digital marketing services depends on its ability to develop and integrate new technologies and respond to rapid changes in technology[134] Financial Instruments and Debt Management - The company had an aggregate of $165.4 million of outstanding indebtedness under a credit facility maturing on May 17, 2022, which increased due to the January 2020 acquisition of ITG[141] - Changes affecting the availability of LIBOR may impact the company’s financial instruments and future financing efforts[145] - A 1% increase in interest rates would increase interest expense by approximately $2.7 million, impacting annual net income and operating cash flows by a comparable amount[290] Board Governance and Dividend Policy - The company’s board of directors is divided into three classes, making it more difficult for stockholders to change the composition of the board[142] - The board of directors has the discretion to declare future dividends, which are subject to factors such as future earnings and cash flows[147] - Future dividends are not assured, and incorrect market expectations regarding dividends may negatively affect stock price[147] Interest Rate and Currency Risks - The company is exposed to fluctuations in interest rates for borrowings under the Credit Facility and foreign exchange rate risk[289] - The company uses interest rate swap arrangements to hedge interest rate risk, not for speculative purposes[290] - The company held approximately $7.1 million in cash in foreign bank accounts to mitigate foreign currency conversion risks[290] - A 10% increase or decrease in the value of the U.S. dollar against all currencies would have an estimated impact on revenue of approximately 1.3%, or $17.7 million[290]