ICF International (ICFI) Q4 2009 earnings summary

Executive summary

• Core business revenue increased 42% to $614.0 million; organic core revenue growth, excluding acquisitions, was 14.7%.

• Total revenue declined 3.3% to $674.4 million, primarily due to the scheduled wind-down of The Road Home contract; acquisitions and growth in other contracts partly offset the decline.

• Adjusted EBITDA, excluding acquisition-related costs, was $61.0 million, or 9% of revenue; net income was $22.4 million and diluted EPS was $1.40.

Financial highlights

• FY 2009 revenue was $674.4 million versus $697.4 million in 2008; operating income was $39.1 million versus $53.0 million.

• Net income was $22.4 million versus $28.7 million; diluted EPS was $1.40 versus $1.88.

• Operating cash flow rose to $48.6 million from $24.6 million; cash and equivalents ended the year at $2.4 million.

• Total backlog reached $1,361.5 million at year-end, up from $817.3 million; funded backlog was $536.0 million.

Outlook and guidance

• Entered 2010 with $1.4 billion of backlog and a strong opportunity pipeline.

• Growth priorities include larger implementation and evaluation contracts, deeper agency and commercial relationships, international expansion, higher-margin work, and selective acquisitions.

• Longer-term liquidity needs, including acquisitions, are expected to be funded through operating cash flow, credit-facility borrowings, other debt, or common or preferred stock.