ICF International, Inc. ( ICFI Quick Quote ICFI - Free Report) delivered impressive fourth-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.
However, better-than-expected results failed to impress the market as there has not been any major price change since the earnings release on Feb 25.
In the past year, ICF’s shares have increased 7.5% compared to 12.6% growth of the
industry it belongs to.
Non-GAAP earnings (excluding 69 cents from non-recurring items) of $1.36 per share surpassed the Zacks Consensus Estimate by 19.3% and increased 15.3% on a year-over-year basis. Moreover, revenues of $434.3 million surpassed the consensus mark by 9% and increased 9.5% year over year owing to increase in service revenues.
Revenues in Detail
Revenues from government clients came in at $251.5 million, up 3% on a year-over-year basis. The U.S. federal government revenues of $165.5 million increased 18.9% year over year and contributed 38% to total revenues. The U.S. state and local government revenues of $51.7 million declined 25.6% year over year and contributed 12% to total revenues. International government revenues of $34.4 million were down 2.8% year over year, contributing 8% to total revenues.
Commercial revenues totaled $182.8 million, up 20% from the year-ago quarter’s figure and contributed 42% to total revenues. Energy markets and marketing services contributed 36% and 59%, respectively, to commercial revenues.
Backlog and Value of Contracts
Total backlog and funded backlog amounted to $2.9 billion and $1.5 billion at the end of the fourth quarter, respectively. The total value of contracts awarded in the quarter came in at $525 million.
Adjusted EBITDA of $44.9 million, increased 20.1% from the year-ago quarter’s figure. Adjusted EBITDA margin on revenues of 10.3% increased 90 basis points (bps) year over year. Adjusted EBITDA margin on service revenues was 17.1%, up 220 bps year over year.
ICF exited the fourth quarter with cash and cash equivalent balance of $13.8 million compared with the $8.2 million recorded at the end of the previous quarter. The company had a long-term debt of $303.2 million compared with $362.3 million at the end of the prior quarter.
The company generated $78 million of cash from operating activities and capex was $4.7 million. ICF paid out dividends of $2.6 million in the reported quarter.
ICF announced a quarterly cash dividend of 14 cents per share, payable to its shareholders on Apr 13, 2021 as of record date Mar 26.
ICF reported non-GAAP diluted earnings per share (EPS) guidance to $4.35-$4.65. The midpoint ($4.50) of the guidance is above the Zacks Consensus Estimate of $4.38.
Revenues are projected in the range of $1.52-$1.57 billion, while the Zacks Consensus Estimate is pegged at $1.58 billion.
EBITDA is expected to be in the range of $145 million and $155 million. Operating cash flow is anticipated to be approximately $100 million.
ICF currently carries a Zacks Rank #4 (Sell). You can see
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