ICF Reports $1.5B Revenue for 2020, Posts Q4 Results; John Wasson Quoted

ICF Reports $1.5B Revenue for 2020, Posts Q4 Results; John Wasson Quoted
John Wasson Chairman

ICF reported fourth quarter and full year results, which ended Dec. 31, 2020, on Thursday.

The company's total revenue for 2020 amounted to $1.51 billion, increasing 1.9 percent over the $1.48 billion reported for full year 2019. Service revenue increased 4.1 percent year-over-year to $1.04 billion.

ICF's full year 2020 net income was $55 million, or $2.87 per diluted share, inclusive of $0.79 of tax-effected special charges, of which $0.53 represented one-time executive retirement and lease-related charges as referenced above. Net income in 2019 was $68.9 million reported, or $3.59 per diluted share, inclusive of $0.24 of special charges.

"In 2020, one of the most challenging business periods in recent history, ICF reported 4 percent year-on-year growth in service revenue, and won a record $2 billion in contract awards, laying the foundation for strong future growth,“ said John Wasson, chairman and CEO of ICF and a 2021 Wash100 Award recipient. 

Non-GAAP EPS was $4.17 per share, up from $4.15 per share. EBITDA was $122.9 million compared to $129.6 million reported in 2019. Adjusted EBITDA was $143.2 million, a 6.2 percent increase over $134.8 million in 2019. The 2020 adjusted EBITDA margin on service revenue was 13.7 percent compared to 13.4 percent in 2019.

Operating cash flow reached $173 million in 2020. The significant increase above our 2020 guidance of $120 million was primarily due to $50 million of unexpected commercial client prepayments related to media placements to be paid in early 2021.

“This performance demonstrates the resilience of our company and first-rate execution by ICF's employees, who have worked closely with clients throughout the pandemic to seamlessly execute programs and win new business, while working remotely," Wasson added.

ICF reported that its fourth quarter 2020 total revenue was $434.3 million, representing 9.5 percent growth over the $396.6 million reported in the fourth quarter of 2019. 

"The fourth quarter represented a strong finish to 2020, with total revenues that exceeded the high end of our guidance range and positive service revenue trends that are reflective of ICF's positioning in high growth markets,“ said Wasson. 

ICF's service revenue increased 4.1 percent year-over-year to $262.2 million, from $251.9 million. The company reported that its net income was $12.8 million in the 2020 fourth quarter. In the 2019 fourth quarter, net income was $19.4 million, or $1.01 per diluted share, inclusive of $0.09 of tax-effected special charges primarily tied to M&A costs related to the ITG acquisition.

"Revenues from federal government and commercial energy clients increased 19% and 9%, respectively, led by our work in IT modernization, public health and energy efficiency and utility consulting, while the exceptional fourth quarter increase in commercial marketing revenue was one-time in nature, tied to the completion of a large contract that primarily involved pass-through revenue,“ said Wasson. 

The company's non-GAAP EPS was $1.36 per share, up from $1.18 per share in 2019 in the fourth quarter. ICF noted that its EBITDA was $30.3 million compared to $34.9 million reported in the fourth quarter of 2019. 

Its adjusted EBITDA was $44.9 million, compared to $37.4 million in the 2019 fourth quarter. Fourth quarter 2020 adjusted EBITDA margin on service revenue was 17.1 percent compared to 14.9 percent in the 2019 fourth quarter.

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