Technology

ICF Reports Fourth Quarter and Full Year 2023 Results

Published

2 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

Penetron Strengthens Global Research Collaboration at ICSHM 2026

Published

2 hours ago

July 19, 2026

PHILADELPHIA, July 19, 2026 /PRNewswire/ — Penetron participated in the 10th International Conference on Self-Healing Materials (ICSHM 2026), held July 8–10, 2026, at Drexel University in Philadelphia, Pennsylvania. The international event brought together leading researchers, engineers, and industry representatives to present and discuss the latest advances in self-healing materials and related technologies.

A global delegation of Penetron executives attended the conference, representing the United States, Greece, Italy, Brazil, India, Chile, the United Arab Emirates, Belgium, and Singapore.

“For over 50 years, Penetron has provided self-healing concrete solutions to the industry that optimize concrete durability by sealing cracks and reducing concrete permeability to limit maintenance requirements, extend structural service life, and help protect infrastructure exposed to groundwater, chemicals, chlorides, and other aggressive conditions,” says Christopher Chen, Director of The Penetron Group. “Our participation at the ICSHM reinforces Penetron’s long-standing commitment to international research collaboration and allows us to better understand emerging research and develop leading-edge solutions for real-world construction challenges.”

Hosted at Drexel University’s Bossone Research Enterprise Center, ICSHM 2026 welcomed specialists from more than 18 countries across six continents and featured over 70 technical presentations, including keynote addresses, plenary sessions, research presentations, and an interactive poster program. The conference opened with remarks from Drexel University President Antonio Merlo and ICSHM Chair Dr. Nele De Belie. Finally, the conference provided valuable opportunities for researchers and industry specialists to strengthen cooperation between academia and the construction sector to further develop self-healing technologies.

“Extending the service life of concrete infrastructure requires cooperation between universities, materials specialists, engineers, and industry,” said Jozef Van Beeck, Director of International Sales and Marketing for The Penetron Group. “ICSHM 2026 provided an important forum for connecting scientific research with the practical requirements of the global construction industry.”

The Penetron Group is a leading manufacturer of specialty construction products for concrete waterproofing, concrete repairs, and floor preparation systems. The Group operates through a global network, offering support to the design and construction community through its regional offices, representatives, and distribution channels.

For more information on Penetron waterproofing solutions, please visit penetron(dot)com or Facebook(dot)com/ThePenetronGroup, email CRDept(at)penetron(dot)com or contact the Corporate Relations Department at 631-941-9700.

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SOURCE The Penetron Group

Technology

Singtel Receives Four Frost & Sullivan 2026 Recognitions for Leadership in Enterprise Connectivity, Cybersecurity, and Digital Transformation

Published

4 hours ago

July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 19, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

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SOURCE Frost & Sullivan

Technology

Emdoor Launches “Ailyn” AI Hub at WAIC 2026: Unifying Intelligence Across Every Device

Published

8 hours ago

July 19, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — Emdoor, a leading provider of intelligent computing devices, unveiled its latest innovation — Ailyn, an integrated software-hardware AI hub — at the World Artificial Intelligence Conference (WAIC) 2026. Under the theme “Intelligence in All Things, Boundless Edge Intelligence”, Emdoor’s Booth X1B-804 showcases four immersive scenarios spanning personal, home, enterprise, and industrial use cases, demonstrating how AI can flow seamlessly across devices.

With decades of experience across cloud, edge, device, and wearable form factors, Emdoor has established one of the industry’s most comprehensive intelligent hardware portfolios. Yet the company recognized a critical gap: while individual devices grow smarter, they often operate in isolation.

Ailyn is Emdoor’s answer to this challenge. Introduced on the WAIC Magic Box stage, Ailyn serves as a unified intelligence layer that orchestrates storage, computing power, AI models, and data across PCs, NAS systems, computing boxes, and IoT devices. The result is a scalable, centrally managed intelligence platform that delivers seamless cross-device collaboration, data privacy, and AI capabilities that improve with use.

At its core, Ailyn follows a device-first, multi-device connected philosophy. By prioritizing on-device model deployment, it reduces costs while preserving privacy, minimizing latency, and enabling offline functionality. Key capabilities include unified data access, uninterrupted task handoff between devices, intelligent multi-model routing, and dynamic compute scaling — plus built-in features for knowledge accumulation, skill expansion, persona customization, and automated task execution.

Four Scenarios, One Intelligent Ecosystem

The enterprise lineup features high-performance AI workstations, AI servers, AI NAS, Mini PCs, and motherboards. Workstations support up to 96-core processors and four double-width GPUs with integrated BMC remote management. AI servers run dual Intel Xeon scalable processors with up to eight mainstream AI accelerators. The single-GPU workstation series offers dual-platform compatibility with both Intel and AMD, featuring a PCIe 5.0 ×16 slot and up to 128GB DDR5 memory. Available in two form factors — a 23.9L tower chassis and a 15.3L compact chassis with tempered glass side panel — it delivers balanced performance for both creative workloads and local AI inference. The AI NAS unifies storage and AI computing power in one device, with192GB of octa-channel LPDDR5X memory to support local large model deployment. Ailyn unifies these resources into a private computing backbone, intelligently offloading heavy workloads so users get instant on-device responsiveness with datacenter-grade power on demand.

For individual users, the showcase includes Mini PCs, AI PCs, AI tablets, and multimodal wearables. The AP16, powered by Intel’s 3rd Generation Core™ Ultra processor, delivers 180 TOPS of AI performance with sustained 54W output — capable of running large models locally. Multimodal wearable solutions built on Qualcomm and BES chips offer faster time-to-market for brand partners. Within the Ailyn ecosystem, PCs handle heavy computing while wearables provide continuous environmental awareness, each device strengthening the whole.

Industrial visitors will find AI BOX units, rugged AI notebooks, handheld terminals, and industrial PCs. AI BOX devices come preloaded with industry-specific models for production line visual inspection. Rugged notebooks deliver reliable performance for mobile field operations. Industrial PCs feature industrial-grade architecture for 24/7 uptime. Through Ailyn, these connected devices break down traditional data silos, enabling intelligent resource orchestration and a closed-loop perception-decision-execution system that accelerates industrial digital transformation.

At the center of the home scenario are AI tablets and home NAS, connected to a full-house AIoT network. The NAS acts as the family’s private data and computing hub, while the tablet serves as the primary interface for senior health reminders and children’s learning support. Ailyn weaves these devices into a cohesive system covering family memories, health care, companionship, and home security — bringing intelligence into daily life without intruding on it.

The launch of Ailyn marks a significant evolution for Emdoor — shifting from a hardware manufacturer to a builder of intelligent infrastructure. It represents the convergence of the company’s deep hardware heritage and its AI innovation roadmap. Moving forward, Emdoor will continue investing in edge AI technology and expanding the Ailyn ecosystem alongside partners, bringing distributed intelligence from the showroom into everyday life.

Company: Emdoor Digital Technology Co.,Ltd.
Contact Person: Yao Zhou
Email: marketing.digi@emdoor.com
Website: http://www.emdoordigi.com/
City: Shenzhen, China

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SOURCE Emdoor Digital