ICF has reported results for the first quarter, noting that the total revenue rose by 5 percent, diluted EPS was $0.55 inclusive of $0.16 in special charges and non-GAAP EPS was $0.83, the company announced on Wednesday.
"First quarter results and awards were aligned with ICF's strong positioning in key growth areas within our government and commercial markets," said John Wasson, president and chief executive officer and 2020 Wash100 Award recipient. “This positive performance more than offset the lower-than-expected revenue performance of our commercial marketing services group, which is more sensitive to changes in economic conditions.”
Wasson noted that the COVID-19 health crisis did not have a significant impact on ICF's first quarter financial performance. Has has projected that the COVID-19 impact on revenue was approximately $4 million, primarily representing program cancellations in the company’s commercial marketing services group and postponed events for international government clients.
In efforts to support COVID-19 relief efforts, the ICF has expanded support to the U.S. Centers for Disease Control and Prevention (CDC) on syndromic surveillance activities under CDC's BioSense program, including tracking the spread of COVID-19, to better coordinate responses to the disease.
ICF reported that the first quarter 2020 total revenue was $358.2 million, representing 5.0 percent growth over the $341.3 million reported in the first quarter of 2019. Service revenue increased 5.8 percent year-over-year to $255.4 million, from $241.4 million.
The company’s non-cash amortization of intangibles was $2.9 million in the first quarter 2020, up 33.6 percent due to the acquisition of ITG, which was completed at the end of January 2020. ICF’s net income amounted to $10.6 million in the 2020 first quarter.
ICF’s diluted EPS was $0.55, inclusive of $0.16 of tax-effected special charges primarily related to M&A and severance costs. In the 2019 first quarter, net income was $15.3 million, or $0.80 per diluted share, inclusive of $0.05 per share impact related to the federal government shutdown.
Non-GAAP EPS was $0.83 per share compared to $0.87 per share in the year ago quarter. EBITDA was $24.4 million compared to $28.8 million reported in the first quarter of 2019. Adjusted EBITDA was $28.0 million, compared to $28.5 million reported in the comparable quarter of 2019.
ICF reported a total backlog of $2.7 billion at the end of the first quarter of 2020 and funded backlog of $1.3 billion, approximately 48 percent of the total backlog. The total value of contracts awarded in the 2020 first quarter was $356.9 million, up 23.4 percent.
"Contract awards increased 23% in the first quarter, reflecting new wins in the areas of IT modernization, public health and energy efficiency, as well as small but strategically important disaster mitigation project work,” added Wasson.
Within the company’s IT modernization division, ICF secured a task order with the U.S. Securities and Exchange Commission (SEC) with a potential value of up to $68.0 million to deliver enterprise-wide database administration services.
The company also announced a program management recompete contract with a value of up to $9.6 million with the NIH Office of the Chief Information Officer to provide program management support services.
Within the environment and planning division, the company was awarded a new contract with a value of up to $11.0 million with a Western U.S. state transportation agency to provide biological support services in connection with a transportation project.
ICF also secured two midsized recompete contracts with a European Commission directorate to provide research and evaluation services related to migration and security in the company’s research and evaluation sector.
The company’s public health and communications division won a recompete contract with a value of up to $5.0 million with an institute of NIH to provide publications and exhibit support and the disaster management sector secured a contract with a ceiling of $3.1 million with a municipality in Florida to provide disaster recovery financial services.
"In summary, ICF is navigating these unprecedented times with a substantial backlog, a recession-resistant revenue mix, a strong balance sheet and a record business development pipeline. We expect these attributes to enable us to weather this storm and emerge as an even stronger company in an environment where our civilian domain expertise becomes ever more relevant," Wasson concluded.
ICF (NASDAQ:ICFI) is a global consulting services company with over 7,000 full-time and part-time employees, but we are not your typical consultants. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future.