ICF International(US:ICFI)2024-08-02 10:06Financial Performance - Revenue for Q2 2024 was $512.0 million, an increase of $11.9 million or 2.4% compared to $500.1 million in Q2 2023[56] - Operating income for Q2 2024 was $42.4 million, representing a 32.3% increase from $32.0 million in Q2 2023[56] - Net income for Q2 2024 was $25.6 million, up 26.1% from $20.3 million in Q2 2023[56] - Revenue for the six months ended June 30, 2024, was $1,006,465, an increase of $23,098 or 2.3% compared to $983,367 in 2023[60] - Operating income increased to $83,351, reflecting a year-over-year increase of $19,853 or 31.3% from $63,498[60] - Net income for the six months ended June 30, 2024, was $52,928, up $16,218 or 44.2% from $36,710 in 2023[60] - U.S. GAAP Diluted EPS for the three months ended June 30, 2024, was $1.36, up from $1.07 for the same period in 2023, representing a 27.1% increase[68] - Non-GAAP Diluted EPS for the six months ended June 30, 2024, was $3.46, compared to $3.00 for the same period in 2023, reflecting a 15.3% increase[68] Revenue Breakdown - Revenue from the Energy, Environment, Infrastructure, and Disaster Recovery market increased by $28.8 million, or 14.1%, in Q2 2024 compared to Q2 2023[56] - Revenue from the Energy, Environment, Infrastructure, and Disaster Recovery client market increased by $66.2 million, or 16.9%, compared to 2023[60] - Health and Social Programs market revenue decreased by $10.6 million, or 5.2%, in Q2 2024 compared to Q2 2023[56] Expenses and Costs - Direct labor and related fringe benefit costs as a percentage of direct costs were 59.7% in Q2 2024, up from 57.7% in Q2 2023[57] - Indirect and selling expenses as a percentage of revenue decreased to 24.8% in Q2 2024 from 25.3% in Q2 2023[57] - Direct labor and related fringe benefit costs as a percentage of revenue were 38.4% in 2024, compared to 37.5% in 2023[60] - Indirect and selling expenses increased by $5,930 or 2.4%, remaining consistent at 25.5% of revenue for both periods[61] Interest and Tax - Interest expense for Q2 2024 was $6.7 million, down from $9.4 million in Q2 2023, reflecting a decrease in average debt balance[57] - Interest expense decreased to $13,900 for the six months ended June 30, 2024, down from $18,100 in 2023, due to a lower average debt balance[61] - The effective income tax rate increased to 26.3% in Q2 2024 from 4.4% in Q2 2023 due to tax planning strategies[57] - The effective income tax rate increased to 23.4% for the six months ended June 30, 2024, from 14.0% in 2023[61] Cash Flow and Dividends - Net cash provided by operating activities increased by $30.8 million to $50.6 million for the six months ended June 30, 2024, due to higher net income and favorable working capital changes[71] - Total dividend payments during the six months ended June 30, 2024, amounted to $5.3 million, with a declared dividend of $0.14 per share[69] Financial Position and Strategy - As of June 30, 2024, the company had $575.9 million available under its Credit Facility to support operations, acquisitions, and share repurchase programs[70] - The company entered into floating-to-fixed interest rate swap agreements totaling a notional value of $275.0 million to hedge a portion of its floating-rate Credit Facility[70] - The percentage of fixed-rate debt to floating-rate debt as of June 30, 2024, was 63%[70] - The company continues to monitor financial markets for borrowing capacity and believes it can access additional capital at commercially reasonable terms if needed[70] Investment Activities - Cash used in investing activities decreased by $37.1 million due to reduced capital expenditures and timing of acquisitions[71] - Cash used in financing activities increased by $70.8 million, primarily due to reduced net borrowings and an increase in share repurchases[71] Future Plans - The company plans to leverage digital and client engagement capabilities to enhance client relationships and pursue larger engagements[53]