ICF International (ICFI) Q4 2013 earnings summary

Executive summary

• FY2013 revenue grew 1.3% to $949.3M and net income rose 3.3% to $39.3M; October’s federal shutdown weighed on government revenue and operating income.

• Record contract wins reached $1.2B, backlog rose 10% to $1.7B, and operating cash flow was $81.0M.

• Strategy emphasized a more balanced government-commercial portfolio, expanded implementation services, and selective acquisitions.

Financial highlights

• Revenue was $949.3M, up 1.3% YoY; commercial revenue grew 6.9%, while government revenue declined 0.7%.

• Net income increased 3.3% to $39.3M; operating income fell 2.3% to $64.7M, primarily due to shutdown-related lost revenue.

• Direct costs rose 1.4% to $591.5M; indirect and selling expenses increased 3.2% to $272.4M.

Outlook and guidance

• Expected commercial revenue growth to exceed government growth; anticipated net income growth at a higher rate than revenue growth.

• Growth priorities included energy efficiency and infrastructure, digital interactive, commercial healthcare, aviation, and European markets.

• Federal discretionary spending constraints through 2021 remained an industry overhang; public health, energy, and education were viewed as priority opportunities.