ICF International (ICFI) Q4 2010 earnings summary

Executive summary

• FY10 revenue rose 13.4% to $764.7M and operating income increased 20% to $46.9M, reflecting contract growth and commercial energy-efficiency demand.

• Net income was $27.2M, or $1.38 diluted EPS; year-end backlog totaled $1.367B, including $649M funded.

Financial highlights

• Revenue was $764.7M vs. $674.4M in FY09; growth included $89.2M from contract growth, contributions from Macro and JASI, partly offset by $60.4M less Road Home revenue.

• Operating income rose 20% to $46.9M; net income increased 21.5% to $27.2M, while diluted EPS was $1.38 vs. $1.40.

• EBITDA was $70.0M vs. $59.6M in FY09; cash from operations increased to $68.2M from $48.6M.

• Direct costs rose 15.8% to $476.2M; indirect and selling expenses increased 7.4% to $218.5M, declining to 28.6% of revenue from 30.2%.

Outlook and guidance

• No formal numeric forecast was stated; expectations centered on continued demand for advisory, implementation, evaluation and efficiency services as clients seek to do more with fewer resources.

• Backlog at Dec. 31, 2010 was $1.367B, with $649M funded; management cited a robust opportunity pipeline entering 2011.

• Priorities include expanding commercial and international business, pursuing larger contracts, deeper agency penetration, higher-margin work and selected acquisitions.