ICF International (ICFI) Q4 2014 earnings summary

Executive summary

• FY 2014 revenue crossed $1.0B, reaching $1,050.1M; record sales and contract awards totaled $1.3B, and diluted EPS was $2.00.

• Acquisitions of Olson, Mostra and CityTech broadened digital marketing, interactive technology and strategic communications capabilities and expanded commercial and international reach.

Financial highlights

• FY revenue rose 10.6% to $1,050.1M; operating income increased 7.2% to $69.4M, while net income rose 1.8% to $40.0M.

• FY diluted EPS was $2.00 vs. $1.95; adjusted diluted EPS was $2.19 vs. $1.98, excluding acquisition-related costs and other specified charges.

• FY EBITDA was $93.2M and adjusted EBITDA was $98.6M, including adjustments for acquisition costs, severance and office closures.

• Q4 revenue was $276.4M vs. $229.8M YoY; operating income was $16.6M vs. $12.6M, net income $8.8M vs. $7.8M, and diluted EPS $0.44 vs. $0.38.

• FY operating cash flow was $79.2M; investing cash outflow was $360.8M, including $347.9M net cash paid for acquisitions.

Outlook and guidance

• FY 2015 revenue growth was anticipated from commercial and international government clients.

• Long-term demand was expected from clean energy and efficiency, healthcare promotion and cost control, and homeland security; federal discretionary spending constraints through 2021 remained a near-term challenge.

• Strategy emphasizes larger lifecycle engagements, commercial expansion, international growth, technology capabilities and selective acquisitions.