Q1 2024 ICF International Inc Earnings Call Transcript
Key Points
- ICF International Inc (ICFI) reported a strong revenue growth of 8.7% year-on-year, excluding divestitures, driven by robust growth from commercial energy clients and solid growth from government customers.
- The company's backlog increased to $3.6 billion, with a trailing 12-month book-to-bill ratio of 1.23, indicating continued growth and strong demand for ICFI's services.
- ICFI's gross margins expanded by 190 basis points to 37.2% of total revenue, benefiting from the timing of several recently awarded energy efficiency contracts.
- The company has a strong pipeline valued at approximately $9.7 billion, demonstrating alignment with current spending priorities of government and commercial clients.
- ICFI's work in Energy, Environment, Infrastructure, and Disaster Recovery markets contributed significantly to growth, with revenues in this segment increasing by 20% year-on-year.
- Revenues from federal government clients increased only by 2.4%, which was in line with expectations but relatively modest compared to other segments.
- The company noted a $5 million reduction in pass-through revenues associated with large international public health contracts.
- First quarter operating cash flow was negative, with $10 million used for working capital needs, although this was an improvement from the previous year.
- The company's debt increased sequentially to $474.7 million at the end of March, primarily due to seasonal use of cash for share repurchases and year-end bonuses.
- While the company is actively monitoring opportunities related to IRA and IIJA funds, the complexity and scale of these programs pose challenges in execution and timing.
Welcome to the First Quarter 2024 ICF Earnings Conference Call. My name is Liz, and I will be your operator for today's call.
(Operator Instructions) I will now turn the call over to Lynn Morgen of AdvisIRy Partners. Lynn, you may begin.
Thank you, operator. Good morning, everyone, and thank you for joining us to review ICF's First Quarter 2024 performance. With us today from ICF are John Wasson, Chair and CEO; and Barry Broadus, CFO. Joining them is James Morgan, Chief Operating Officer. During this conference call, we will make forward-looking statements to assist you in understanding ICF management's expectations about our future performance.
These statements are subject to a number of risks that could cause actual events and results to differ materially, and I refer you to our May 2, 2024 press release and our SEC filings for discussions of those risks.
In addition, our statements during this call are based on our views as of today. We anticipate that future developments will cause our views to
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