ICF Reports 25.6% Q3 Hike in Government Revenue; John Wasson on Completed Deals

ICF (Nasdaq: ICFI) reported $359.9 million in revenue from government clients during the third quarter of fiscal year 2022, reflecting a 25.6 percent increase from the prior-year period.

The Fairfax, Virginia-based company said Thursday Q3 sales from U.S. federal government clients rose 39 percent to $271.3 million and represented 58 percent of total revenue.

Revenue from U.S. state and local government customers hit $65.6 million during the quarter, up 11.6 percent from the same period in 2021, and accounted for 14 percent of total sales.

Third-quarter contract awards hit $865 million and trailing-12-month contract awards reached $2.2 billion, reflecting a book-to-bill ratio of 1.31. 

Parsons said Q3 sales jumped 18.7 percent to $467.8 million and adjusted earnings before interest, taxes, depreciation and amortization was $49.8 million, up 13.6 percent from the prior-year period.

The company ended the quarter with a total backlog of $3.7 billion, of which $1.8 billion was funded.

John Wasson, chairman and CEO of ICF, said the company completed the acquisition of SemanticBits and Blanton & Associates in the third quarter to expand its digital modernization and environmental consulting capabilities, respectively.

Wasson, a two-time Wash100 awardee, told analysts during the earnings call that ICF will focus on integrating the completed deals through the first half of 2023 to pay down debt and manage its cash flow.

In terms of the market, I mean, I would say that there’s still opportunities in the federal government services market. There’s still activity in energy markets. I think there’s still quality companies out there,” Wasson said.

“And so we obviously are out in the market. We have a pipeline, we’ll stay close to the market. … But as I say, I think our focus … to the first half of next year will beyond integrating the deals we’ve done and focus on paying down our debt here through the first half of next year,” he added.

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