ICF International(ICFI) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $517 million, a 3% increase year-on-year, and a 6% increase excluding divestitures[1] - Net income reached $33 million, with GAAP EPS of $1.73, up 38% from the previous year[1] - Non-GAAP EPS increased 17.7% to $2.13 per share, compared to $1.81 in Q3 2023[6] - The operating margin improved by 250 basis points to 8.9%, while adjusted EBITDA margin expanded by 50 basis points to 11.3%[4] - Revenue for September 2024 reached $516,998 thousand, a 3.0% increase from $501,519 thousand in September 2023[30] - Net income for September 2024 was $32,679 thousand, up 37.5% from $23,740 thousand in September 2023[30] - Adjusted EBITDA for September 2024 was $58,526 thousand, compared to $54,279 thousand in September 2023, reflecting a 4.1% increase[32] - Basic earnings per share (EPS) for September 2024 was $1.74, an increase of 38.1% from $1.26 in September 2023[30] - The company reported a net income margin of 6.3% for September 2024, up from 4.7% in September 2023[32] - Operating income for September 2024 was $46,024 thousand, a significant increase from $31,901 thousand in September 2023, representing a 44.5% growth[30] - The company experienced a comprehensive income of $31,728 thousand for September 2024, compared to $19,687 thousand in September 2023, reflecting a 60.9% increase[30] - Net income for the three months ended September 30, 2024, was $85,607,000, compared to $60,450,000 for the same period in 2023, representing an increase of 41.5%[41] Revenue Breakdown - Revenue from government clients was $387.8 million, a 1.1% increase year-on-year, with federal government revenue accounting for 54.5% of total revenue[8][9] - Commercial revenue was $129.2 million, up 23.7% compared to Q3 2023, representing 25% of total revenue[18] - Revenue from the Energy, Environment, Infrastructure, and Disaster Recovery sector accounted for 46% of total revenue for the three months ended September 30, 2024, up from 41% in the same period of 2023[43] - The U.S. federal government represented 55% of total revenue for the three months ended September 30, 2024, slightly down from 56% in the prior year[44] - Time-and-materials contracts made up 43% of total revenue for the three months ended September 30, 2024, compared to 41% in the same period of 2023[45] Guidance and Future Outlook - The company adjusted its full-year 2024 revenue guidance to a range of $2.0 billion to $2.03 billion, reflecting a $50 million reduction in expected pass-throughs[22] - The revised GAAP EPS guidance for 2024 is now between $6.05 and $6.15, with non-GAAP EPS expected to range from $7.40 to $7.50[22] Backlog and Pipeline - The business development pipeline reached a record $10.6 billion, with contract awards totaling $697 million in Q3 2024[5] - Total backlog at the end of Q3 2024 was $3.9 billion, with funded backlog at $1.9 billion, approximately 50% of the total[7] Assets and Liabilities - Total current assets increased to $493,115,000 as of September 30, 2024, from $447,157,000 at December 31, 2023, reflecting a growth of 10.3%[40] - Total liabilities decreased to $1,051,861,000 as of September 30, 2024, from $1,094,187,000 at December 31, 2023, a reduction of 3.9%[40] - The total stockholders' equity increased to $976,317,000 as of September 30, 2024, from $917,585,000 at December 31, 2023, reflecting a growth of 6.4%[40] Cash Flow and Expenses - The company reported net cash provided by operating activities of $76,184,000 for the three months ended September 30, 2024, compared to $45,552,000 in the same period of 2023, an increase of 67.2%[41] - Interest expense decreased to $(7,195) thousand in September 2024 from $(10,557) thousand in September 2023, indicating improved financial management[30] - The company declared cash dividends of $0.14 per common share for both September 2024 and September 2023[30] Credit Losses - The company recorded a provision for credit losses of $3,176,000 for the three months ended September 30, 2024, compared to $691,000 in the same period of 2023, indicating a significant increase in expected credit losses[41]