ICF International(US:ICFI)2021-05-05 10:03Revenue Breakdown - For the three months ended March 31, 2021, government clients accounted for approximately 71.4% of total revenues[76] - The remaining 28.6% of total revenue was primarily generated from commercial energy markets and marketing services, with commercial marketing services representing less than 9.6% of total revenues[77] - Governmental revenue increased by $30.8 million or 12.9%, while commercial revenue decreased by $10.6 million or 8.9% year-over-year[86] - Revenue for the three months ended March 31, 2021 was $378.5 million, an increase of $20.2 million or 5.6% compared to $358.2 million for the same period in 2020[86] - Service revenue grew by $24.2 million or 9.5% year-over-year, representing 73.97% of total revenue for the three months ended March 31, 2021[97] Operational Performance - The company experienced a continuity in work for government clients despite challenges posed by COVID-19, indicating resilience in demand for services[76] - The company continues to monitor the impact of COVID-19 on its operations and is taking actions to mitigate adverse consequences[78] - The company is focused on enhancing client relationships and integrating strategic acquisitions to drive future growth[73] Financial Metrics - Operating income rose to $28.1 million for the three months ended March 31, 2021, an increase of $11.8 million or 72.4% from $16.3 million in 2020[92] - Net income for the three months ended March 31, 2021 was $18.4 million, a 72.9% increase from $10.6 million in the same period last year[86] - Adjusted EBITDA for the three months ended March 31, 2021 was $37.7 million, compared to $28.0 million for the same period in 2020[103] Costs and Expenses - Direct costs for the three months ended March 31, 2021 were $232.1 million, an increase of $1.5 million or 0.6% compared to $230.6 million in 2020[88] - Indirect and selling expenses increased to $110.0 million, a rise of $6.7 million or 6.5% compared to $103.3 million in 2020[89] - The effective income tax rate for the three months ended March 31, 2021 was 26.7%, up from 18.3% in the same period last year[95] - Interest expense decreased to $2.7 million for the three months ended March 31, 2021, down $0.8 million or 23.9% from $3.5 million in 2020[93] Cash Flow and Liquidity - Cash and cash equivalents decreased to $8.6 million as of March 31, 2021, down from $13.8 million on December 31, 2020, a decline of 37.0%[115] - Net cash provided by operating activities was $4.96 million for Q1 2021, compared to a cash outflow of $15.23 million in Q1 2020[124] - Cash used in investing activities was $3.6 million for Q1 2021, significantly lower than $257.7 million in Q1 2020[125] - Contract receivables decreased to $214.3 million as of March 31, 2021, from $222.9 million on December 31, 2020, a decrease of 3.0%[115] Shareholder Returns - The company repurchased 151,200 shares at an average price of $84.36 per share during Q1 2021[122] - Cash dividends paid during both periods totaled $2.6 million, indicating consistent shareholder returns[126] Debt and Financing - Long-term debt increased to $326.9 million as of March 31, 2021, from $315.8 million on December 31, 2020, an increase of 3.5%[119] - The company has $33.3 million remaining available for share repurchases under the Credit Facility as of March 31, 2021[123] - For the three months ended March 31, 2021, cash flows used in financing activities amounted to $33.3 million, primarily due to restricted contract funds payment of $27.1 million and stock buybacks of $17.1 million[126] - The company experienced a significant decrease in financing cash flows from 2020 to 2021, reflecting a drop of approximately 89.8%[126] Workforce and Operations - The company had nearly 7,500 full and part-time employees globally, serving clients from over 56 regional offices in the U.S. and more than 22 international offices[80] - The company has utilized staff reductions and furloughs in response to the pandemic but has been able to reduce these measures as of March 31, 2021[79] - The company plans to begin a phased return to in-person operations no earlier than September 2021, depending on the COVID-19 situation[78] Market Position - The company believes it is well positioned to provide a broad range of services in support of federal, state, local, and international government initiatives[74] - There have been no material changes in the disclosures regarding market risk as per the Annual Report[127] Earnings Per Share - Non-GAAP diluted EPS for Q1 2021 was $1.13, up from $0.83 in Q1 2020, reflecting a 36.1% increase[110] Days Sales Outstanding - Days-sales-outstanding (DSO) increased to 80 days for Q1 2021, compared to 67 days for Q4 2020 and 88 days for Q1 2020[116]