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ICF International (ICFI) Beats on Q1 Earnings and Revenues

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ICF International, Inc. (ICFI - Free Report) reported strong first-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate.

Non-GAAP EPS of 87 cents beat the consensus mark by 11 cents and improved 13% on a year-over-year basis. Revenues came in at $341.3 million, which outpaced the consensus mark by $8 million and increased 12.7% year over year.

Shares of the company have gained 11.3% over the past three months, outperforming the 8.6% rally of the industry it belongs to.

Let’s delve deeper into the numbers:

Revenues in Detail

Revenues from government clients of $224.5 million improved 15.6% year over year. U.S. federal government revenues of $131.8 million decreased 1.8% year over year and contributed 39% to total revenues. U.S. state and local government revenues of $65.5 million surged 109.2% year over year and contributed 19% to total revenues. International government revenues of $27.2 million, down 5.6% year over year on a reported basis but up 0.5% on a constant-currency basis, contributed 8% to total revenues.

Commercial revenues totaled $116.8 million, up 7.6% from the year-ago quarter’s figure and contributed 34% to total revenues. Energy markets contributed 45% to commercial revenues and Marketing services contributed 47% to the same.

Backlog and Value of Contracts

Total backlog and funded backlog amounted to $2.3 billion and $1.1 billion at the end of the first quarter, respectively. The total value of contracts awarded was $289.1 million, representing a trailing 12 month book-to-bill ratio of 1.4.

Operational Results

Adjusted EBITDA was $28.5 million, up 13.8% from the year-ago quarter’s figure. Adjusted EBITDA margin was 8.3% of service revenues, flat year over year. The increase in adjusted EBITDA margin was driven by revenue growth and favorable business mix.

Balance Sheet

At the end of the first quarter, cash and cash equivalent balance was $5.7 million compared with $11.7 million at the end of the previous quarter. The company had a long-term debt of $232.3 million compared with $200.4 million at the end of the fourth quarter.

ICF International gained $12.7 million of cash from operating activities and capex was $7.5 million. The company purchased 122,000 shares for $8.6 million and paid dividends of $2.6 million in the quarter. It declared a quarterly cash dividend of 14 cents per share, payable on Jul 16, 2019 to shareholders of record as of Jun 14, 2019.

2019 Outlook

Management expects total revenues between $1.45 billion and $1.50 billion, the midpoint ($1.48 million) of which is above the Zacks Consensus Estimate of $1.47 billion.

Non-GAAP EPS is expected in the range of $4.05-$4.25, the mid-point ($4.15) of which is below the Zacks Consensus Estimate of $4.16.

Zacks Rank & Upcoming Releases

Currently, ICF International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Zacks Business Services sector are awaiting reports of key players like MAXIMUS (MMS - Free Report) , Green Dot (GDOT - Free Report) and Equifax (EFX - Free Report) . While MAXIMUS is slated to report second-quarter fiscal 2019 on May 9, Green Dot and Equifax are scheduled to release first-quarter 2019 results on May 8 and May 10, respectively.

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