ICF International, Inc. [ICFI] Filings

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Accelerated filer

Non-accelerated filer

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Emerging growth company

10-Q 1 icfi-20240930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 001-33045

ICF International, Inc.

(Exact name of Registrant as Specified in its Charter)


Delaware		22-3661438
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

1902 Reston Metro Plaza, Reston, VA		20190
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (703) 934-3000

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act.


Title of each class	Trading Symbols(s)	Name of each exchange on which registered
Common Stock	ICFI	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company,’’ and ‘‘emerging growth company’’ in Rule 12b–2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of October 25, 2024, there were 18,762,710 shares outstanding of the registrant’s common stock.

ICF INTERNATIONAL, INC. AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q FOR THE

PERIOD ENDED SEPTEMBER 30, 2024

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements	3

	Consolidated Balance Sheets at September 30, 2024 (Unaudited) and December 31, 2023	3

	Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months and Nine Months Ended September 30, 2024 and 2023	4

	Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three Months and Nine Months Ended September 30, 2024 and 2023	5

	Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2024 and 2023	7

	Notes to Consolidated Financial Statements	8

	Note 1 - Basis of Presentation	8

	Note 2 - Restricted Cash	9

	Note 3 - Contract Receivables, Net	9

	Note 4 - Leases	11

	Note 5 - Debt	11

	Note 6 - Revenue Recognition	12

	Note 7 - Derivative Instruments and Hedging Activities	13

	Note 8 - Income Taxes	13

	Note 9 - Stockholders' Equity	14

	Note 10 - Stock-Based Compensation	16

	Note 11 - Earnings Per Share	16

	Note 12 - Fair Value	17

	Note 13 - Commitments and Contingencies	17

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

PART II. OTHER INFORMATION		27

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	28

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ICF International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)


(in thousands, except share and per share amounts)	September 30, 2024			December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	6,911		$	6,361
Restricted cash		724			3,088
Contract receivables, net		212,412			205,484
Contract assets		237,742			201,832
Prepaid expenses and other assets		24,785			28,055
Income tax receivable		10,541			2,337
Total Current Assets		493,115			447,157
Property and Equipment, net		71,299			75,948
Other Assets:
Goodwill		1,221,437			1,219,476
Other intangible assets, net		70,030			94,904
Operating lease - right-of-use assets		122,543			132,807
Other assets		49,754			41,480
Total Assets	$	2,028,178		$	2,011,772

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt	$	13,750		$	26,000
Accounts payable		121,093			134,503
Contract liabilities		17,176			21,997
Operating lease liabilities		21,204			20,409
Finance lease liabilities		2,590			2,522
Accrued salaries and benefits		91,103			88,021
Accrued subcontractors and other direct costs		55,600			45,645
Accrued expenses and other current liabilities		85,274			79,129
Total Current Liabilities		407,790			418,226
Long-term Liabilities:
Long-term debt		405,396			404,407
Operating lease liabilities - non-current		160,926			175,460
Finance lease liabilities - non-current		11,922			13,874
Deferred income taxes		5,982			26,175
Other long-term liabilities		59,845			56,045
Total Liabilities		1,051,861			1,094,187

Commitments and Contingencies (Note 13)

Stockholders’ Equity:
Preferred stock, par value $.001; 5,000,000 shares authorized; none issued		—			—
Common stock, par value $.001; 70,000,000 shares authorized; 24,138,735 and 23,982,132 shares issued at September 30, 2024 and December 31, 2023, respectively; 18,762,710 and 18,845,521 shares outstanding at September 30, 2024 and December 31, 2023, respectively		24			24
Additional paid-in capital		436,671			421,502
Retained earnings		852,835			775,099
Treasury stock, 5,376,025 and 5,136,611 shares at September 30, 2024 and December 31, 2023, respectively		(300,718	)		(267,155	)
Accumulated other comprehensive loss		(12,495	)		(11,885	)
Total Stockholders’ Equity		976,317			917,585
Total Liabilities and Stockholders’ Equity	$	2,028,178		$	2,011,772

The accompanying notes are an integral part of these consolidated financial statements.

ICF International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share amounts)	2024			2023			2024			2023
Revenue	$	516,998		$	501,519		$	1,523,463		$	1,484,886
Direct Costs		325,047			323,504			964,911			961,473
Operating costs and expenses:
Indirect and selling expenses		132,816			131,553			389,001			381,808
Depreciation and amortization		4,820			5,917			15,303			19,052
Amortization of intangible assets		8,291			8,644			24,873			27,154
Total operating costs and expenses		145,927			146,114			429,177			428,014
Operating income		46,024			31,901			129,375			95,399
Interest, net		(7,195	)		(10,557	)		(23,136	)		(30,146	)
Other (expense) income		(899	)		2,736			767			1,501
Income before income taxes		37,930			24,080			107,006			66,754
Provision for income taxes		5,251			340			21,399			6,304
Net income	$	32,679		$	23,740		$	85,607		$	60,450

Earnings per Share:
Basic	$	1.74		$	1.26		$	4.57		$	3.22
Diluted	$	1.73		$	1.25		$	4.53		$	3.19

Weighted-average Shares:
Basic		18,760			18,815			18,752			18,795
Diluted		18,910			18,974			18,915			18,958

Cash dividends declared per common share	$	0.14		$	0.14		$	0.42		$	0.42

Other comprehensive loss, net of tax		(951	)		(4,053	)		(610	)		(2,236	)
Comprehensive income, net of tax	$	31,728		$	19,687		$	84,997		$	58,214

The accompanying notes are an integral part of these consolidated financial statements.

ICF International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)


	Common Stock					Additional Paid-in		Retained			Treasury Stock					Accumulated Other Comprehensive
(in thousands)	Shares			Amount		Capital		Earnings			Shares		Amount			Loss			Total
Balance at January 1, 2024		18,846		$	24	$	421,502	$	775,099			5,136	$	(267,155	)	$	(11,885	)	$	917,585
Net income		—			—		—		27,317			—		—			—			27,317
Other comprehensive income		—			—		—		—			—		—			684			684
Equity compensation		—			—		3,551		—			—		—			—			3,551
Exercise of stock options		2			—		107		—			—		—			—			107
Issuance of shares pursuant to vesting of restricted stock units		125			—		—		—			—		—			—			—
Payments for share repurchases		(218	)		—		—		—			218		(30,475	)		—			(30,475	)
Dividends declared		—			—		—		(2,620	)		—		—			—			(2,620	)
Balance at March 31, 2024		18,755		$	24	$	425,160	$	799,796			5,354	$	(297,630	)	$	(11,201	)	$	916,149
Net income		—			—		—		25,611			—		—			—			25,611
Other comprehensive loss		—			—		—		—			—		—			(343	)		(343	)
Equity compensation		—			—		4,674		—			—		—			—			4,674
Issuance of shares pursuant to employee stock purchase plan and vesting of restricted stock units		21			—		2,568		—			—		—			—			2,568
Payments for share repurchases		(19	)		—		—		—			19		(2,711	)		—			(2,711	)
Dividends declared		—			—		—		(2,623	)		—		—			—			(2,623	)
Balance at June 30, 2024		18,757		$	24	$	432,402	$	822,784			5,373	$	(300,341	)	$	(11,544	)	$	943,325
Net income		—			—		—		32,679			—		—			—			32,679
Other comprehensive loss		—			—		—		—			—		—			(951	)		(951	)
Equity compensation		—			—		4,269		—			—		—			—			4,269
Issuance of shares pursuant to vesting of restricted stock units		8			—		—		—			—		—			—			—
Payments for share repurchases		(3	)		—		—		—			3		(377	)		—			(377	)
Dividends declared		—			—		—		(2,628	)		—		—			—			(2,628	)
Balance at September 30, 2024		18,762		$	24	$	436,671	$	852,835			5,376	$	(300,718	)	$	(12,495	)	$	976,317


	Common Stock					Additional Paid-in		Retained			Treasury Stock					Accumulated Other Comprehensive
(in thousands)	Shares			Amount		Capital		Earnings			Shares		Amount			Loss			Total
Balance at January 1, 2023		18,883		$	23	$	401,957	$	703,030			4,906	$	(243,666	)	$	(8,133	)	$	853,211
Net income		—			—		—		16,398			—		—			—			16,398
Other comprehensive loss		—			—		—		—			—		—			(1,334	)		(1,334	)
Equity compensation		—			—		3,750		—			—		—			—			3,750
Exercise of stock options		4			—		111		—			—		—			—			111
Issuance of shares pursuant to vesting of restricted stock units		126			1		—		—			—		—			—			1
Payments for share repurchases		(225	)		—		—		—			225		(22,815	)		—			(22,815	)
Dividends declared		—			—		—		(2,633	)		—		—			—			(2,633	)
Balance at March 31, 2023		18,788		$	24	$	405,818	$	716,795			5,131	$	(266,481	)	$	(9,467	)	$	846,689
Net income		—			—		—		20,312			—		—			—			20,312
Other comprehensive income		—			—		—		—			—		—			3,151			3,151
Equity compensation		—			—		2,938		—			—		—			—			2,938
Exercise of stock options		4			—		167		—			—		—			—			167
Issuance of shares pursuant to employee stock purchase plan and vesting of restricted stock units		23			—		2,264		—			—		—			—			2,264
Payments for share repurchases		—			—		—		—			—		(37	)		—			(37	)
Dividends declared		—			—		—		(2,639	)		—		—			—			(2,639	)
Balance at June 30, 2023		18,815		$	24	$	411,187	$	734,468			5,131	$	(266,518	)	$	(6,316	)	$	872,845
Net income		—			—		—		23,740			—		—			—			23,740
Other comprehensive loss		—			—		—		—			—		—			(4,053	)		(4,053	)
Equity compensation		—			—		3,446		—			—		—			—			3,446
Issuance of shares pursuant to vesting of restricted stock units		2			—		—		—			—		—			—			—
Payments for share repurchases		—			—		—		—			—		(12	)		—			(12	)
Dividends declared		—			—		—		(2,636	)		—		—			—			(2,636	)
Balance at September 30, 2023		18,817		$	24	$	414,633	$	755,572			5,131	$	(266,530	)	$	(10,369	)	$	893,330

The accompanying notes are an integral part of these consolidated financial statements.

ICF International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Nine Months Ended
	September 30,
(in thousands)	2024			2023
Cash Flows from Operating Activities
Net income	$	85,607		$	60,450
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		3,176			691
Deferred income taxes and unrecognized income tax benefits		(16,957	)		(3,533	)
Non-cash equity compensation		12,494			10,134
Depreciation and amortization		40,177			46,207
Gain on divestiture of a business		(2,009	)		(4,302	)
Other operating adjustments, net		2,206			2,563
Changes in operating assets and liabilities, net of the effects of acquisitions:
Net contract assets and liabilities		(40,155	)		(52,010	)
Contract receivables		(9,634	)		12,087
Prepaid expenses and other assets		(434	)		11,893
Operating lease assets and liabilities, net		(3,065	)		3,897
Accounts payable		(13,402	)		(13,333	)
Accrued salaries and benefits		2,889			(8,521	)
Accrued subcontractors and other direct costs		9,660			(3,353	)
Accrued expenses and other current liabilities

ICF International, Inc. [ICFI] Filings
10-Q	[2024-11-01]
10-Q	[2024-08-02]
10-Q	[2024-05-02]
10-K	[2024-02-28]
10-Q	[2023-11-03]
10-Q	[2023-08-04]
10-Q	[2023-05-10]
10-K	[2023-03-01]
10-Q	[2022-11-04]
10-Q	[2022-08-04]
10-Q	[2022-05-05]
10-K	[2022-02-25]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-02-26]
10-Q	[2020-11-06]
10-Q	[2020-08-05]
10-Q	[2020-05-06]
10-K	[2020-02-28]
10-Q	[2019-11-07]
10-Q	[2019-08-02]
10-Q	[2019-05-03]
10-K	[2019-02-27]
10-Q	[2018-11-02]
10-Q	[2018-08-03]
10-Q	[2018-05-03]
10-K	[2018-02-28]
10-Q	[2017-11-03]
10-Q	[2017-08-03]
10-Q	[2017-05-04]
10-K	[2017-02-28]
10-Q	[2016-11-02]
10-Q	[2016-08-03]
10-Q	[2016-05-06]
10-K	[2016-03-08]
10-Q	[2015-10-30]
10-Q	[2015-07-31]
10-Q	[2015-05-08]
10-K	[2015-02-27]
10-Q	[2014-11-07]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-02-28]
10-Q	[2013-11-06]
10-Q	[2013-08-02]
10-Q	[2013-05-06]
10-K	[2013-03-01]
10-Q	[2012-11-05]
10-Q	[2012-08-06]
10-Q	[2012-05-04]
10-K	[2012-03-02]