Technology

ICF Reports Fourth Quarter and Full Year 2023 Results

Published

3 years ago

February 27, 2024

— Full Year Double-Digit Revenue Growth Aligned With Strength of ICF’s Growth Markets —
— 2024 Guidance Anticipates High Single-Digit Organic Revenue Growth From Continuing Operations With Further Margin Expansion —

Fourth Quarter Highlights:

Revenue Increased 1% to $478 Million; Up 5% Excluding DivestituresNet Income Was $22 Million; Diluted EPS Was $1.16, Inclusive of $0.18 in Tax-Effected Net Special Charges Non-GAAP EPS1 Was $1.68, Up 8%EBITDA1 Was $53.9 Million, Up 46%; Adjusted EBITDA1 Was $57.0 Million, Up 3%Contract Awards Were $611 Million for a Book-to-Bill Ratio of 1.3

Full Year Highlights:

Revenue Increased 10% to $1.96 Billion; Up 12% Excluding DivestituresNet Income Was $83 Million; Diluted EPS Was $4.35, Inclusive of $0.71 in Tax-Effected Net Special Charges Non-GAAP EPS Was $6.50, Up 13%EBITDA Was $197.0 Million, Up 25%; Adjusted EBITDA Was $213.2 Million, Up 11%Contract Awards Were $2.3 Billion for a Book-to-Bill Ratio of 1.2Operating Cash Flow Was $152 Million

RESTON, Va., Feb. 27, 2024 /PRNewswire/ — ICF (NASDAQ: ICFI), a global consulting and technology services provider, reported results for the fourth quarter and full year ended December 31, 2023.

Commenting on the results, John Wasson, chair and chief executive officer, said, “Fourth quarter results represented a solid finish to a year of double-digit revenue growth for ICF, which demonstrated the benefits of our expanded capabilities in key growth markets and the strength of our diversified business model. Revenues increased 1% year-on-year. Adjusting for the divestiture of our commercial marketing business lines during 2023, fourth quarter revenue increased 5% year-on-year, led by strong growth in revenues from commercial energy clients and our state and local and international government clients. U.S. federal government fourth quarter revenue was approximately flat with the prior year due to a $5.3 million reduction in subcontractor and other direct costs together with the anticipated roll-off of certain small business contracts held by companies we acquired. We expect year-on-year federal government revenue comparisons to increase substantially in the second half of 2024 and grow at a high single-digit rate for full year 2024.

“Full year 2023 revenue increased 10%, or by over 12% after adjusting for the divestitures, reflecting double-digit growth in revenues from both government and commercial clients. This performance was led by our growth markets, which in the aggregate accounted for approximately 80% of 2023 full year revenues from continuing operations, up from approximately 75% in 2022.

“We continued to increase profitability in the fourth quarter and full year, expanding adjusted EBITDA margin by 30 basis points and 10 basis points, respectively. This progress reflected the positive impact of higher utilization and our actions to reduce facility costs, along with the benefits of ICF’s greater scale.

“This also was another year of substantial contract awards, which reached $2.3 billion. Approximately 70% of 2023’s contract wins represented new business, underscoring ICF’s strong competitive positioning in areas of high demand from government and commercial clients. At year end, our business development pipeline was a robust $9.7 billion, providing a substantial runway for future growth.”

Fourth Quarter 2023 Results

Fourth quarter 2023 total revenue was $478.4 million, similar to the $475.6 million reported in the fourth quarter of 2022 and up 4.9% from last year’s fourth quarter revenues adjusted for the divestitures. Subcontractor and other direct costs were 27.0% of total revenues compared to 28.7% in last year’s fourth quarter. Operating income was $36.9 million, up from $23.0 million, and operating margin on total revenue expanded to 7.7% from 4.8%. Net income totaled $22.2 million, and diluted EPS was $1.16 per share, up from $8.9 million, and $0.47, respectively, in the fourth quarter of 2022. Fourth quarter 2023 net income and diluted EPS included $4.4 million, or $0.18 per share, in tax-effected net special charges.

Non-GAAP EPS increased 7.7% to $1.68 per share, from the $1.56 per share reported in the comparable period in 2022. EBITDA was $53.9 million, 46% above the $36.9 million reported for the year-ago period. Adjusted EBITDA increased 3.3% to $57.0 million, from $55.2 million for the comparable period in 2022.

Full Year 2023 Results

2023 total revenue was $1.96 billion, an increase of 10.3% from $1.78 billion reported in the previous year and 12.3% higher when adjusting for the 2023 divestitures. Subcontractor and other direct costs were 27.2% of total revenues compared to 27.8% in 2022. Full year 2023 net income was $82.6 million, or $4.35 per diluted share, inclusive of $17.6 million, or $0.71 per share of tax-effected net special charges. This represents increases of 28.6% and 28.7%, respectively, from net income of $64.2 million, or $3.38 per diluted share reported in 2022.

Non-GAAP EPS was $6.50 per share, up 12.7% from $5.77 per share. EBITDA increased 25.3% to $197.0 million, compared to $157.2 million reported in 2022. Adjusted EBITDA was $213.2 million, representing an 11.2% increase over $191.8 million in 2022.

Operating cash flow was $152.4 million in 2023. This compares to $162.2 million in the prior year, which benefited by approximately $30 million related to the timing of collections and disbursements.

Backlog and New Business

Total backlog was $3.8 billion at the end of the fourth quarter of 2023. Funded backlog was $1.8 billion, or approximately 47% of the total backlog. The total value of contracts awarded in the 2023 fourth quarter was $611 million representing a book-to-bill ratio of 1.28, and trailing-twelve-month contract awards totaled $2.3 billion for a book-to-bill ratio of 1.18.

Government Revenue Fourth Quarter 2023 Highlights

Revenue from government clients was $368.6 million, up 4.0% year-over-year.

U.S. federal government revenue was $263.9 million, stable with the $264.8 million reported in the fourth quarter of 2022, and was impacted by a year-over-year decrease in subcontractor and other direct costs of $5.3 million in the quarter as well as the anticipated roll-off of certain acquired small business contracts. Federal government revenue accounted for 55.2% of total revenue, compared to 55.7% of total revenue in the fourth quarter of 2022.U.S. state and local government revenue increased 16.7% to $75.9 million, from $65.0 million in the year-ago quarter. State and local government clients represented 15.9% of total revenue, compared to 13.7% in the fourth quarter of 2022.International government revenue was $28.8 million, up 17.2% from the $24.6 million reported in the year-ago quarter. International government revenue represented 6.0% of total revenue, compared to 5.2% in the fourth quarter of 2022.

Key Government Contracts Awarded in the Fourth Quarter 2023

Notable government contract awards won in the fourth quarter of 2023 included:

Health and Social Programs

Two new task orders with a combined value of $29.9 million with the U.S. Environmental Protection Agency’s Office of Pollution Prevention and Toxics to assess the risk of chemical exposure to human health and the environment.Four new subcontracts with a combined value of $17.1 million to support mental health programs, including evaluation and communications services, for the U.S. Substance Abuse and Mental Health Services Administration’s 988 Suicide & Crisis Lifeline.A recompete blanket purchase agreement with a value of $9.6 million with a U.S. federal agency to provide communications engagement and education support services.A recompete subcontract with a value of $9.4 million to support a comprehensive technical assistance center contract for the U.S. Centers for Disease Control and Prevention, Division of Overdose Prevention overdose prevention programs.

Digital Modernization

A recompete contract with a value of $33.1 million with the U.S. Centers for Medicare and Medicaid Services (CMS) to continue the modernization of the CMS system for kidney dialysis data.A new blanket purchase agreement with a value of $5.7 million with the U.S. General Services Administration to provide data analytics services to the U.S. Department of State.

Commercial Revenue Fourth Quarter 2023 Highlights

Commercial revenue was $109.8 million, compared to $121.3 million reported in the fourth quarter of 2022, up 7.6% compared to revenues of $101.7 million excluding divestitures in 2022.

Commercial revenue accounted for 22.9% of total revenue compared to 25.5% of total revenue in the 2022 fourth quarter.Energy markets revenue, which includes energy efficiency programs, increased 8.8% and represented 87.8% of commercial revenue.

Key Commercial Contracts Awarded in the Fourth Quarter

Notable commercial awards won in the fourth quarter of 2023 included:

Energy Markets

Two large multimillion-dollar recompete contracts with a mid-Atlantic U.S. utility to implement its commercial and residential energy efficiency programs.A large multimillion-dollar new contract with a mid-Atlantic U.S. electric cooperative to serve as the implementer of its energy efficiency programs.Five contract modifications with a Western U.S. gas utility to continue to support its energy efficiency programs, with a focus on residential and small commercial equity initiatives, agricultural customer projects and emerging technology demonstrations.A large multimillion-dollar new contract with a Southern U.S. utility to implement its energy efficiency and demand response program portfolios.Five contract extensions and modifications with a Northeastern U.S. utility to continue to implement its energy efficiency programs.Two new contracts with a Southeastern U.S. utility to implement its energy efficiency retrofit program and provide marketing services for its business markets programs.A contract modification with a Northeastern U.S. utility to continue to implement its energy efficiency retail products and residential rebates programs.A new contract with a mid-Atlantic U.S. utility to implement a behavioral-based energy efficiency program utilizing cloud technology and analytics to engage customers.Multiple task orders with a Northeastern U.S. utility to continue to provide marketing and advertising services as the utility’s agency of record.

Other Commercial

A recompete contract with a value of $58.6 million with a Western U.S. state lottery to continue to support the maintenance and operation of its cloud-based website and improve the user experience.

Dividend Declaration

On February 27, 2024, ICF declared a quarterly cash dividend of $0.14 per share, payable on April 12, 2024, to shareholders of record on March 22, 2024.

Recognitions

ICF received several important recognitions in 2023:

Forbes named ICF one of America’s Best Employers for Women for the second consecutive year.ICF was included on Forbes’ America’s Best Management Consulting Firms list for the eighth straight year and Best Employers for Diversity list for the third straight year.ICF was awarded a Climate Leadership Award by the Climate Registry for reducing carbon pollution and addressing climate change in its social actions and client work.The Northern Virginia Chamber of Commerce and the Professional Services Council awarded ICF Government Contractor of the Year in the Over $300 Million category.ICF was ranked a Top Federal Industry Leader by Bloomberg in its BGOV200 rankings.

Summary and Outlook

“2023 represented a year of significant accomplishments for ICF. In addition to our strong financial performance, we completed the integration of SemanticBits, streamlined our business through the divestiture of our commercial marketing business and supported our key growth markets by adding new competencies in the fast-growing area of grid modernization and electrical engineering. We used our substantial operating cash flow to repay debt, ending the year with a net debt to EBITDA ratio of under 2.2. This gives us additional flexibility to execute our acquisition growth strategy, which has been a key element of the company’s success to date. ICF exited 2023 with a strengthened business and financial posture, positioning us for continued strong growth in 2024.

“Based on our strong backlog and current visibility, and the ongoing positive trends in our key growth markets, we expect 2024 organic revenues from continuing operations to range from $2.03 billion to $2.10 billion, representing year-on-year growth of 5.2% at the midpoint when compared to reported 2023 and 8.5% at the midpoint on continuing operations. EBITDA is expected to range from $220 million to $230 million, reflecting year-on-year growth of 14.2% at the midpoint. Our guidance range for GAAP EPS is $5.25 to $5.55, excluding special charges, and for Non-GAAP EPS is $6.60 to $6.90. Assuming similar margins to the rest of the business, the company’s commercial marketing business lines are estimated to have contributed $0.20 of Non-GAAP EPS in 2023, which will not recur in 2024. We expect full year 2024 operating cash flow of approximately $155 million.

“We are proud of the many recognitions that ICF received in 2023. Listed above, they are emblematic of our culture of inclusion, merit-based promotions and commitment to climate change, and highlight ICF’s deep domain expertise in energy and environment, public health and life sciences and sustainability. As we move ahead into 2024, we remain committed to maintaining the outstanding corporate culture that has been integral to our success,” Mr. Wasson concluded.

1 Non-GAAP EPS, EBITDA, and Adjusted EBITDA are non-GAAP measurements. A reconciliation of all non-GAAP measurements to the most applicable GAAP number is set forth below. Special charges are items that were included within our consolidated statements of comprehensive income but are not indicative of ongoing performance and have been presented net of applicable U.S. GAAP taxes. The presentation of non-GAAP measurements may not be comparable to other similarly titled measures used by other companies.

About ICF
ICF is a global consulting and technology services company with approximately 9,000 employees, but we are not your typical consultants. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more at icf.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 that are included in the “Risk Factors” section of our securities 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.

Note on Forward-Looking Non-GAAP Measures
The company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to the variability and difficulty in making accurate forecasts and projections and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures (such as the effect of share-based compensation or the impact of future extraordinary or non-recurring events like acquisitions) is available to the company without unreasonable effort. For the same reasons, the company is unable to estimate the probable significance of the unavailable information. The company provides forward-looking non-GAAP financial measures that it believes will be achievable, but it cannot accurately predict all of the components of the adjusted calculations, and the U.S. GAAP financial measures may be materially different than the non-GAAP financial measures.

Investor Contacts:

Lynn Morgen, ADVISIRY PARTNERS, lynn.morgen@advisiry.com +1.212.750.5800
David Gold, ADVISIRY PARTNERS, david.gold@advisiry.com +1.212.750.5800

Company Information Contact:
Lauren Dyke, ICF, lauren.dyke@ICF.com +1.571.373.5577

ICF International, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

(in thousands, except per share amounts)

2023

2022

2023

2022

Revenue

$ 478,352

$ 475,609

$ 1,963,238

$ 1,779,964

Direct costs

303,545

300,064

1,265,018

1,134,422

Operating costs and expenses:

Indirect and selling expenses

123,354

136,718

505,162

486,863

Depreciation and amortization

6,225

6,284

25,277

21,482

Amortization of intangible assets

8,307

9,494

35,461

28,435

Total operating costs and expenses

137,886

152,496

565,900

536,780

Operating income

36,921

23,049

132,320

108,762

Interest, net

(9,535)

(9,186)

(39,681)

(23,281)

Other income (expense)

2,407

(1,939)

3,908

(1,501)

Income before income taxes

29,793

11,924

96,547

83,980

Provision for income taxes

7,631

3,046

13,935

19,737

Net income

$ 22,162

$ 8,878

$ 82,612

$ 64,243

Earnings per Share:

Basic

$ 1.18

$ 0.47

$ 4.39

$ 3.41

Diluted

$ 1.16

$ 0.47

$ 4.35

$ 3.38

Weighted-average common shares outstanding:

Basic

18,823

18,855

18,802

18,818

Diluted

19,025

19,065

18,994

19,033

Cash dividends declared per common share

$ 0.14

$ 0.56

Other comprehensive (loss) income, net of tax

(1,516)

6,009

(3,752)

2,902

Comprehensive income, net of tax

$ 20,646

$ 14,887

$ 78,860

$ 67,145

ICF International, Inc. and Subsidiaries

Reconciliation of Non-GAAP financial measures(2)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

(in thousands, except per share amounts)

2023

2022

2023

2022

Reconciliation of Revenue, Adjusted for Impact of Exited Business

Revenue

$ 478,352

$ 475,609

$ 1,963,238

$ 1,779,964

Less: Revenue from exited business (3)

(194)

(19,951)

(59,908)

(84,369)

Total Revenue, Adjusted for Impact of Exited Business

$ 478,158

$ 455,658

$ 1,903,330

$ 1,695,595

Reconciliation of EBITDA and Adjusted EBITDA (4)

Net income

$ 22,162

$ 8,878

$ 82,612

$ 64,243

Interest, net

9,535

9,186

39,681

23,281

Provision for income taxes

7,631

3,046

13,935

19,737

Depreciation and amortization

14,532

15,778

60,738

49,917

EBITDA

53,860

36,888

196,966

157,178

Impairment of long-lived assets (5)

3,860

8,354

7,666

8,354

Acquisition and divestiture-related expenses (6)

920

4,759

6,441

Severance and other costs related to staff realignment (7)

1,911

1,134

6,366

6,302

Charges for facility consolidations and office closures (8)

608

5,034

3,187

5,034

Expenses related to the transfer to our new corporate headquarters (9)

—

2,640

—

8,287

Expenses related to our agreement for the sale of receivables (10)

—

240

—

240

Pre-tax gain from divestiture of a business (11)

(3,287)

—

(5,712)

—

Total Adjustments

3,166

18,322

16,266

34,658

Adjusted EBITDA

$ 57,026

$ 55,210

$ 213,232

$ 191,836

Net Income Margin Percent on Revenue (12)

4.6 %

1.9 %

4.2 %

3.6 %

EBITDA Margin Percent on Revenue (13)

11.3 %

7.8 %

10.0 %

8.8 %

Adjusted EBITDA Margin Percent on Revenue (13)

11.9 %

11.6 %

10.9 %

10.8 %

Reconciliation of Non-GAAP Diluted EPS (4)

U.S. GAAP Diluted EPS

$ 1.16

$ 0.47

$ 4.35

$ 3.38

Impairment of long-lived assets

0.20

0.44

0.40

0.44

Acquisition and divestiture-related expenses

—

0.05

0.25

0.34

Severance and other costs related to staff realignment

0.10

0.06

0.33

Expenses related to facility consolidations and office closures (14)

0.10

0.26

0.24

0.26

Expenses related to the transfer to our new corporate headquarters

—

0.14

—

0.44

Expenses related to our agreement for the sale of receivables

—

0.01

—

0.01

Pre-tax gain from divestiture of a business

(0.17)

—

(0.30)

—

Amortization of intangibles

0.44

0.50

1.87

1.49

Income tax effects of the adjustments (15)

(0.15)

(0.37)

(0.64)

(0.92)

Non-GAAP Diluted EPS

$ 1.68

$ 1.56

$ 6.50

$ 5.77

(2) These tables provide reconciliations of non-GAAP financial measures to the most applicable GAAP numbers. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Other companies may define similarly titled non-GAAP measures differently and, accordingly, care should be exercised in understanding how we define these measures.

(3) Revenue from the exited U.K. commercial marketing business (June 30, 2023), U.S. commercial marketing business (September 11, 2023), and Canadian mobile text aggregation business (November 1, 2023).

(4) Reconciliations of EBITDA, Adjusted EBITDA, and Non-GAAP Diluted EPS were calculated using numbers as reported in U.S. GAAP.

(5) Represents impairment of operating lease right-of-use and leasehold improvement assets associated with exit from certain facilities, and an intangible asset associated with exit of a business.

(6) These are primarily third-party costs related to acquisitions and potential acquisitions, integration of acquisitions, and separation of discontinued businesses or divestitures.

(7) These costs are mainly due to involuntary employee termination benefits for our officers, and employees who have been notified that they will be terminated as part of a business reorganization or exit.

(8) These are exit costs associated with terminated leases or full office closures that we either (i) will continue to pay until the contractual obligations are satisfied but with no economic benefit to us, or (ii) paid upon termination and cease-use of the leased facilities.

(9) These costs represent incremental non-cash lease expense associated with a straight-line rent accrual during the “free rent” period in the lease for our new corporate headquarters in Reston, Virginia. We took possession of the new facility during the fourth quarter of 2021, while also maintaining and incurring lease costs for the former headquarters in Fairfax, Virginia. The transition to the new corporate headquarters was completed in the fourth quarter of 2022.

(10) These costs include legal and structuring fees related to our 2022 Master Receivables Purchase Agreement with MUFG Bank, Ltd. put in place for the sale of our receivables.

(11) Includes pre-tax gain of $2.5 million and of $3.2 million from the divestitures of our U.S. commercial marketing and Canadian mobile text aggregation businesses.

(12) Net Margin Percent on Revenue was calculated by dividing net income by revenue.

(13) EBITDA Margin Percent and Adjusted EBITDA Margin Percent on Revenue were calculated by dividing the non-GAAP measure by the corresponding revenue.

(14) These are exit costs related to actual office closures (previously included in Adjusted EBITDA) and accelerated depreciation related to fixed assets for planned office closures.

(15) Income tax effects were calculated using the effective tax rate, adjusted for discrete items, if any, of 21.1% and 25.5% for the three months ended December 31, 2023 and 2022, respectively, and 22.8% and 28.0% for the twelve months ended December 31, 2023 and 2022, respectively.

ICF International, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share amounts)

December 31, 2023

December 31, 2022

ASSETS

Current Assets:

Cash and cash equivalents

$ 6,361

$ 11,257

Restricted cash

3,088

1,711

Contract receivables, net

205,484

232,337

Contract assets

201,832

169,088

Prepaid expenses and other assets

28,055

40,709

Income tax receivable

2,337

11,616

Total Current Assets

447,157

466,718

Property and Equipment, net

75,948

85,402

Other Assets:

Goodwill

1,219,476

1,212,898

Other intangible assets, net

94,904

126,537

Operating lease – right-of-use assets

132,807

149,066

Other assets

41,480

51,637

Total Assets

$ 2,011,772

$ 2,092,258

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current portion of long-term debt

$ 26,000

$ 23,250

Accounts payable

134,503

135,778

Contract liabilities

21,997

25,773

Operating lease liabilities

20,409

19,305

Finance lease liabilities

2,522

2,381

Accrued salaries and benefits

88,021

85,991

Accrued subcontractors and other direct costs

45,645

45,478

Accrued expenses and other current liabilities

79,129

78,036

Total Current Liabilities

418,226

415,992

Long-term Liabilities:

Long-term debt

404,407

533,084

Operating lease liabilities – non-current

175,460

182,251

Finance lease liabilities – non-current

13,874

16,116

Deferred income taxes

26,175

68,038

Other long-term liabilities

56,045

23,566

Total Liabilities

1,094,187

1,239,047

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; 23,982,132 and 23,771,596 shares

issued; and 18,845,521 and 18,883,050 shares outstanding at December 31, 2023 and 2022,

respectively

Additional paid-in capital

421,502

401,957

Retained earnings

775,099

703,030

Treasury stock, 5,136,611 and 4,906,209 shares at December 31, 2023 and 2022, respectively

(267,155)

(243,666)

Accumulated other comprehensive loss

(11,885)

(8,133)

Total Stockholders’ Equity

917,585

853,211

Total Liabilities and Stockholders’ Equity

$ 2,011,772

$ 2,092,258

ICF International, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Years ended

December 31,

(in thousands)

2023

2022

Cash Flows from Operating Activities

Net income

$ 82,612

$ 64,243

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

Provision for credit losses

1,164

248

Deferred income taxes and unrecognized income tax benefits

(17,634)

7,428

Non-cash equity compensation

14,861

13,171

Depreciation and amortization

60,738

49,917

Facilities consolidation reserve

—

(317)

Amortization of debt issuance costs

1,996

1,305

Impairment of long-lived assets

7,666

8,412

Gain on divestiture of a business

(7,590)

—

Other adjustments, net

(1,368)

1,283

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

Net contract assets and liabilities

(38,422)

(41,634)

Contract receivables

20,939

19,732

Prepaid expenses and other assets

18,579

(20,737)

Operating lease assets and liabilities, net

3,544

(1,466)

Accounts payable

(1,489)

30,003

Accrued salaries and benefits

2,175

(3,337)

Accrued subcontractors and other direct costs

(269)

6,965

Accrued expenses and other current liabilities

(4,757)

24,742

Income tax receivable and payable

9,277

(1,526)

Other liabilities

361

3,774

Net Cash Provided by Operating Activities

152,383

162,206

Cash Flows from Investing Activities

Capital expenditures for property and equipment and capitalized software

(22,337)

(24,475)

Payments for business acquisitions, net of cash acquired

(32,664)

(237,280)

Proceeds from working capital adjustments related to prior business acquisition

—

2,911

Proceeds from divestiture of a business

51,328

—

Net Cash Used in Investing Activities

(3,673)

(258,844)

Cash Flows from Financing Activities

Advances from working capital facilities

1,245,198

1,583,936

Payments on working capital facilities

(1,372,474)

(1,446,125)

Proceeds from other short-term borrowings

48,532

—

Repayments of other short-term borrowings

(41,653)

—

Receipt of restricted contract funds

7,672

15,721

Payment of restricted contract funds

(8,084)

(25,959)

Debt issuance costs

—

(4,907)

Payments of principal portion of finance leases

(2,438)

—

Proceeds from exercise of options

279

602

Dividends paid

(10,537)

(10,547)

Net payments for stockholder issuances and buybacks

(19,083)

(21,218)

Payments on business acquisition liabilities

—

(1,132)

Net Cash (Used in) Provided by Financing Activities

(152,588)

90,371

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash

359

(1,198)

Decrease in Cash, Cash Equivalents, and Restricted Cash

(3,519)

(7,465)

Cash, Cash Equivalents, and Restricted Cash, Beginning of Period

12,968

20,433

Cash, Cash Equivalents, and Restricted Cash, End of Period

$ 9,449

$ 12,968

Supplemental Disclosure of Cash Flow Information

Cash paid during the period for:

Interest

$ 34,093

$ 22,782

Income taxes

$ 26,190

$ 16,476

Non-cash investing and financing transactions:

Tenant improvements funded by lessor

$ 568

$ 20,253

Acquisition of property and equipment through finance lease

$ 337

$ 18,319

ICF International, Inc. and Subsidiaries

Supplemental Schedule (16) (17)

Revenue by client markets

Three Months Ended

Twelve Months Ended

December 31,

2023

2022

2023

2022

Energy, environment, infrastructure, and disaster recovery

44 %

40 %

41 %

40 %

Health and social programs

41 %

42 %

40 %

Security and other civilian & commercial

15 %

19 %

17 %

20 %

Total

100 %

Revenue by client type

Three Months Ended

Twelve Months Ended

December 31,

2023

2022

2023

2022

U.S. federal government

55 %

56 %

55 %

U.S. state and local government

16 %

14 %

16 %

15 %

International government

6 %

5 %

6 %

Government

77 %

75 %

76 %

Commercial

23 %

25 %

24 %

Total

100 %

Revenue by contract mix

Three Months Ended

Twelve Months Ended

December 31,

2023

2022

2023

2022

Time-and-materials

41 %

40 %

41 %

40 %

Fixed-price

46 %

47 %

45 %

Cost-based

13 %

14 %

15 %

Total

100 %

(16) As is shown in the supplemental schedule, we track revenue by key metrics that provide useful information about the nature of our operations. Client markets provide insight into the breadth of our expertise. Client type is an indicator of the diversity of our client base. Revenue by contract mix provides insight in terms of the degree of performance risk that we have assumed.

(17) During the first quarter of 2023, we re-aligned our client markets from four to three and reclassified the 2022 percentages to conform to the current presentation.

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SOURCE ICF

Technology

CGI announces private offering of C$500 million, in aggregate, of 3.25 year and 4.75 year senior unsecured notes

Published

5 minutes ago

September 10, 2026

Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
cgi.com/newsroom

MONTREAL, Sept. 9, 2026 /PRNewswire/ — CGI (TSX: GIB.A) (NYSE: GIB) announced today that it has priced an offering of Canadian dollar denominated senior unsecured notes in two series.

CGI will issue C$500 million in aggregate principal amount of senior unsecured notes, consisting of C$250 million aggregate principal amount of 3.25 year notes and C$250 million aggregate principal amount of 4.75 year notes. The 3.25 year notes will bear interest at the rate of 4.195% per annum and 4.75 year notes will bear interest at the rate of 4.484% per annum. The offering is expected to close on or about September 14, 2026, subject to customary closing conditions.

The net proceeds from the offering are expected to be approximately C$497.3 million after deducting the agents’ fees and estimated offering expenses. CGI intends to use the aggregate net proceeds from the offering to repay existing indebtedness and for general corporate purposes.

The notes are being offered in Canada on an agency basis by a syndicate of agents led by Scotia Capital Inc., Desjardins Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc., and TD Securities Inc.

The notes will be offered on a private placement basis in each of the provinces of Canada in reliance upon exemptions from the prospectus requirements of applicable securities laws. The notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the notes in the United States or any other jurisdiction where such offering or sale would be unlawful.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2025 reported revenue is $15.91 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

Forward-looking information and statements

This press release contains “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI’s intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “believe”, “estimate”, “expect”, “intend”, “anticipate”, “foresee”, “plan”, “predict”, “project”, “aim”, “seek”, “strive”, “potential”, “continue”, “target”, “may”, “might”, “could”, “should”, and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues, inflation, tariffs and/or trade wars) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services to address emerging business demands and technology trends (such as artificial intelligence), to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, legal and operational risks inherent in contracting with government clients, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to reduce our carbon emissions, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, including through the use of artificial intelligence, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, our ability to declare and pay dividends, interest rate fluctuations and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI’s annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI’s annual and quarterly MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI’s annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

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SOURCE CGI Inc.

Technology

Yutong Opens Its First Comprehensive Service Center in Europe

Published

5 minutes ago

September 10, 2026

The Norway-based facility integrates maintenance, inspection, and parts supply to support battery-electric bus fleets throughout the vehicle lifecycle

STOKKE, Norway, Sept. 10, 2026 /PRNewswire/ — Yutong Bus officially opened its first Yutong Service Center (the “Center”) in Europe on September 8 in Stokke, Norway, integrating vehicle delivery, after‑sales service, spare parts supply, and professional training into one hub.

As Norway advances its transition to electric public transport, the Center will enhance maintenance capabilities, compliance inspections, and local service responsiveness for pure electric buses, offering customers a more direct service option and delivering systematic support for fleet operations across their full lifecycle.

Covering approximately 38,941 square meters with a building area of 6,074 square meters, including a 2,300‑square‑meter parts warehouse, the Center integrates brand display, vehicle delivery, after‑sales service, parts supply, and training facilities, delivering all‑around customer support. Built around Yutong as the core, the Center consolidates multi‑dimensional service functions and complements existing local partners and service channels, offering customers more direct, flexible issue resolution and service options.

“The service center is positioned as a comprehensive, centralized service hub, with a large inventory of parts, inspection facilities, professional service bays, and dedicated training equipment,” said Jack Li, CEO of Yutong Central and Northern Europe. “Through efficient operations, we aim to help reduce customers’ total cost of ownership and maximize bus uptime. By strengthening partnerships and expanding service coverage, we aim to deliver cost-effective services and create shared value while helping make public transport greener, smarter, and more inclusive.”

One‑stop service ecosystem: from parts supply to integrated service support across the fleet lifecycle

With the local service center and dedicated on‑ground team, Yutong consolidates parts supply, fault diagnostics, maintenance, and professional training into a single service system, improving service efficiency and delivering full‑lifecycle fleet support for Norwegian passenger transport and bus operators. The Center features a comprehensive reception area, maintenance and repair zone, parts storage area, hands-on training space, vehicle display area, and brand experience zone, offering local customers an integrated service package spanning everything from vehicle sales and delivery to after‑sales repairs, parts supply, and technical training.

The Center features seven standardized maintenance bays, as well as dedicated bays for powertrain and large-component repairs, equipped with four‑post lifts, an electronic laser wheel alignment system, a brake tester, and a heavy‑duty tire balancer. It offers repair capabilities for chassis, electrical and high‑voltage systems, powertrains, air conditioning, and interiors, and can also handle non‑severe accident vehicles, alcohol interlocks, and tachographs.

Built to EU standards, the Center includes a dedicated bus inspection line for Norway’s mandatory PKK annual inspections, featuring a 31.5‑meter pit, two 16‑ton pit jacks, and equipment for brake, lighting, side‑slip, and OBD testing, covering chassis, braking, safety devices, onboard diagnostics, and powertrain compliance. By conducting inspections, fault diagnosis, and safety checks locally, the Center helps customers reduce fleet downtime and lower operating costs.

It also has a 2,300‑square‑meter parts warehouse, covering 4,500 SKUs of Yutong genuine parts for battery, motor and electronic control systems, powertrains, chassis, steering systems, pneumatic and hydraulic systems, interior and exterior trim, wear parts, and maintenance consumables.

With local stock and regional distribution center replenishment, the Center reduces parts sourcing and repair waiting times, improving vehicle uptime and minimizing fleet downtime losses. All parts are backed by consistent quality and warranty standards, supported by a local engineering team delivering parts supply, diagnostics, and maintenance services.

Building local expertise: service, training, and long‑term fleet support

The Center also includes theoretical training rooms and hands-on training areas, with instruction led by experienced trainers. Equipped with a comprehensive whole-vehicle training platform for pure electric buses and dedicated training units for air conditioning, EBS braking, heaters, battery, motor and electronic control systems, and rear-axle disassembly, the Center supports training in component identification, operating principles, simulation, and fault diagnosis. The training equipment uses core assemblies and components sourced from actual vehicles, enabling customers’ maintenance technicians to apply what they learn directly to real-world repairs.

Through its local team, standardized maintenance and inspection procedures, parts inventory and training capabilities, Yutong continues to deliver on its “EnRoute+” global service commitment. As Yutong’s first comprehensive service center in Europe, the facility further underscores the company’s long-term commitment to serving European customers. Building on the Norway service center, Yutong will continue to advance its localized service approach in markets including the Netherlands, Chile, Kazakhstan and Saudi Arabia. These efforts will strengthen local capabilities in electric bus repair, maintenance and inspection, improve service responsiveness, create more high-quality local jobs and support the electrification and low-carbon transition of public transport.

For more information on Yutong Service Center and “EnRoute+” global service commitment, please visit https://en.yutong.com/.

SOURCE Yutong Bus

Technology

Stablecoin Summit 2026 by XREX Group Returns to Singapore as Stablecoins Mature Into a Financial Infrastructure

Published

5 minutes ago

September 10, 2026

SINGAPORE, Sept. 10, 2026 /PRNewswire/ — Stablecoin Summit 2026, Asia’s premier event for stablecoin innovation, organised and hosted by XREX Group for the fourth consecutive year, returns to Andaz Singapore on 8 October 2026, bringing together the stablecoin industry’s most senior decision-makers.

“Stablecoins have become an independent industry, and we are witnessing it move toward a trillion-dollar market,” said Wayne Huang, Co-founder and Group CEO of XREX Group, host of Stablecoin Summit. “Real-world adoption is creating momentum for deeper financial integration. As blockchain finance and traditional finance converge, interoperability across stablecoins will become increasingly important. Stablecoins are redefining how money moves, clears, and settles. That is why we created Stablecoin Summit as a dedicated platform for this industry.”

Ranked the world’s most crypto-friendly city in 2026, Singapore has built one of Asia’s deepest regulated stablecoin markets. The city-state has consistently moved early on financial innovation, with 37 licensed digital payment token firms and MAS-led Project BLOOM testing stablecoins for domestic and cross-border settlement. This combination of regulatory clarity, financial expertise and a willingness to test new models in practice provides a strong setting for discussions on the future of stablecoins.

“XREX Singapore is a regulated Major Payment Institution licensed by the MAS, giving us a firsthand view of how regulation, technology and business needs are converging around stablecoins,” said Winston Hsiao, Co-founder and Group CRO of XREX Group . “The evolution of the speakers and participants at our Summit reflects the evolution of the industry itself. From crypto-native players to banks, financial institutions and regulators, the people at the table today tell the story of how stablecoins have moved into mainstream finance.”

In its fourth edition, Stablecoin Summit will feature more than 30 speakers and over 600 attendees from across the financial industry, bringing together senior leaders from stablecoin issuers, banks, payment providers, asset managers, and institutions, as well as regulators and policymakers. Key discussions will explore institutional adoption, the development of new stablecoin models and currencies, cross-border financial infrastructure, and the regulatory and trust frameworks needed for the industry to scale.

Confirmed speakers include:

Wayne Huang, Co-founder and Group CEO, XREX Group Winston Hsiao, Co-founder and Group CRO, XREX Group Maximilian Roszko, Business Development, Curve Finance Michal Selbka, Director, DeFi and Digital Assets, S&P Global Ratings Stani Kulechov, Founder and CEO, Aave Labs Hassan Ahmed, Country Director, Singapore, Coinbase Raja Chakravorti, Chief Business Officer, Stellar Development Foundation Bhaumik Kotecha, Co-founder of Paxos Labs Will Nuelle, General Partner, Galaxy Ventures Tushar Gulhane, Regional Lead, SAP

“Thanks to the foresight of our hosts, XREX Group, Stablecoin Summit Singapore has been fully focused on real-world applications, institutional adoption and payments since our first edition in 2023. Singapore’s role as a banking hub, regional HQ, and home away from home for millions of workers makes it a natural home for the stablecoin conversation in APAC. The summit’s role is to connect the institutions, fintech firms and stablecoin issuers moving the money of tomorrow, accelerating the adoption of stablecoins in Singapore and APAC,” said Zachary John, Founder and CEO of Party Action People, the key event partner of Stablecoin Summit since its inception.

Stablecoin Summit 2026 is supported by title sponsors Curve and Bridge, with support from S&P Global Ratings, Enterprise Ethereum Alliance, Midas, Frankencoin, Stellar, Spark, f(x) Protocol, Nara and Accountable .

Registration and the full agenda are available at stablecoinsummit.com.

About XREX Group:

XREX Group is a blockchain-enabled financial institution working with banks, regulators, and users to redefine banking together. We provide services to businesses in or dealing with emerging markets, and novice-friendly financial services to individuals worldwide.

Founded in 2018, XREX Group offers a full suite of services such as digital asset custody, wallet, cross-border payment, fiat-crypto conversion, cryptocurrency exchange, and fiat currency on-off ramps.

Sharing the social responsibility of financial inclusion, XREX leverages blockchain technologies to further financial participation, access, and education.

XREX Singapore operates under the Major Payment Institution (MPI) license issued by the Monetary Authority of Singapore (MAS). XREX Taiwan is a regulated VASP that completed its Compliance Declaration on Anti-Money Laundering (AML) with Taiwan’s Financial Supervisory Commission (FSC) in March 2022. It passed its AML registration with the FSC in September 2025, becoming one of ten approved VASPs.

About Party Action People:

Party Action People is the Singapore-based event agency behind the stablecoin industry’s most talked-about gatherings — built to bring issuers, central banks, DeFi protocols, and TradFi institutions into one room to get real deals done, not just swap business cards. Since 2021, the team has produced Stable Summit (launched Paris, 2023), Stablecoin Summit — now heading into its Singapore edition on 8 October 2026 at Andaz Singapore — plus Vault Summit, Agentic Finance Day, and the Blockchain Oracle Summit. Past speakers span Tether, Anchorage Digital, EY, Mastercard, PayPal, Western Union, Curve, MakerDAO, Circle and Frax.

Media contact: Yoyo Yu
Email: yoyoyu@xrex.io

Media contact: Vasundhara Singh
Email: vasundhara@yapglobal.com

Media contact: Mansha Bakshi
Email: mansha@yapglobal.com

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/stablecoin-summit-2026-by-xrex-group-returns-to-singapore-as-stablecoins-mature-into-a-financial-infrastructure-302874544.html

SOURCE XREX Group