ICF has reported results for the third quarter 2020, which ended Sept. 30, the company reported on Thursday. ICF announced that the total revenue for the third quarter was $360.3 million, which is 3.6 percent below the third quarter of 2019, as a result of lower pass-through revenues.
“This was another quarter of strong performance for ICF, demonstrating the resilience of our diversified business model, excellent execution across our client set, and positive impact of our key growth catalysts,“ said John Wasson, president and CEO of ICF and 2020 Wash100 Award recipient.
ICF's service revenue increased 2.9 percent to $264.7 million from $257.2 million. The company's net income decreased nine percent to $17.9 million, compared to $19.6 million in the third quarter 2019.
“Service revenue increased three percent year-on-year, led by programs for federal government clients and energy-related advisory and implementation work for commercial clients,“ Wasson added.
ICF reported diluted earnings per share (EPS) of $0.94, which is 7.8 percent below the prior year’s third quarter. Non-GAAP EPS was $1.10 per diluted share, compared to $1.12 in third quarter 2019.
“Another financial highlight of the third quarter was operating cash flow, which increased by $84 million, bringing year-to-date operating cash flow to $95 million, primarily due to improved collections. We utilized these funds to pay down $79 million of long-term debt associated with the January acquisition of ITG,“ Wasson stated.
ICF's year-on-year net income and EPS comparisons reflected increased interest and amortization expenses related to the ITG acquisition, which was completed on January 31, 2020, as well as a higher income tax rate.
EBITDA was $36.9 million, up 3.6 percent from the $35.6 million reported in the third quarter of 2019. Adjusted EBITDA was $37.8 million, 4.9 percent above the $36.0 million reported in the comparable quarter of 2019. Third quarter 2020 adjusted EBITDA margin on service revenue expanded by 30 basis points year-on-year to 14.3 percent.
Total backlog was $2.9 billion at the end of the third quarter of 2020. Funded backlog was $1.5 billion, or approximately 53 percent of the total backlog. The total value of contracts awarded in the 2020 third quarter was $792 million, resulting in a TTM book-to-bill ratio of 1.2.
“ICF was awarded $792 million in contracts, including strategic wins that align with the growth catalysts we have identified: IT modernization/digital transformation, public health, commercial energy and disaster management,” Wasson concluded.