ICF International, Inc. (ICFI) has reported 17.89 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $12.67 million, or $0.65 a share in the quarter, compared with $10.75 million, or $0.55 a share for the same period last year. On an adjusted basis, earnings per share were at $0.76 for the quarter compared with $0.73 in the same period last year.
Revenue during the quarter grew 3.12 percent to $289.56 million from $280.80 million in the previous year period. Gross margin for the quarter contracted 113 basis points over the previous year period to 36.99 percent. Total expenses were 92.41 percent of quarterly revenues, down from 93.22 percent for the same period last year. This has led to an improvement of 81 basis points in operating margin to 7.59 percent.
Operating income for the quarter was $21.96 million, compared with $19.04 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $29.86 million compared with $28.25 million in the prior year period. At the same time, adjusted EBITDA margin improved 25 basis points in the quarter to 10.31 percent from 10.06 percent in the last year period.
"2016 was a year of solid execution for ICF in which we achieved mid-single-digit organic revenue growth consistent with our expectations. Revenue from commercial clients increased 4.8 percent, driven by the strong performance of energy markets, which includes energy efficiency programs for utilities, and modest year-on-year growth in our marketing services. A similar 4.6 percent growth in our government business reflected a 4.1 percent increase in federal government revenue and double-digit growth in state and local government revenue, which more than offset the anticipated decline in revenue from international government business. Diluted earnings per share growth outpaced revenue growth by a factor of four, demonstrating the strength of our balanced portfolio and the benefit of reduced amortization expense, a lower share count and a lower tax rate," said Sudhakar Kesavan, ICF's chairman and chief executive officer.
For financial year 2017, Icf International projects revenue to be in the range of $1,200 million to $1,240 million. The company forecasts diluted earnings per share to be in the range of $2.50 to $2.75.
Operating cash flow improves marginally
ICF International, Inc. has generated cash of $79.56 million from operating activities during the year, up 4.25 percent or $3.24 million, when compared with the last year.
The company has spent $13.89 million cash to meet investing activities during the year as against cash outgo of $14.50 million in the last year.
The company has spent $66.97 million cash to carry out financing activities during the year as against cash outgo of $64.45 million in the last year period.
Cash and cash equivalents stood at $6.04 million as on Dec. 31, 2016, down 22.01 percent or $1.70 million from $7.75 million on Dec. 31, 2015.
Working capital increases
ICF International, Inc. has recorded an increase in the working capital over the last year. It stood at $102.41 million as at Dec. 31, 2016, up 22.27 percent or $18.65 million from $83.76 million on Dec. 31, 2015. Current ratio was at 1.52 as on Dec. 31, 2016, up from 1.43 on Dec. 31, 2015.
Days sales outstanding went up to 45 days for the quarter compared with 42 days for the same period last year.
At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.
Debt comes down
ICF International, Inc. has recorded a decline in total debt over the last one year. It stood at $259.39 million as on Dec. 31, 2016, down 16.74 percent or $52.14 million from $311.53 million on Dec. 31, 2015. Icf International has recorded a decline in long-term debt over the last one year. It stood at $259.39 million as on Dec. 31, 2016, down 16.74 percent or $52.14 million from $311.53 million on Dec. 31, 2015. Total debt was 23.89 percent of total assets as on Dec. 31, 2016, compared with 28.76 percent on Dec. 31, 2015. Debt to equity ratio was at 0.46 as on Dec. 31, 2016, down from 0.60 as on Dec. 31, 2015. Interest coverage ratio improved to 10.18 for the quarter from 8.12 for the same period last year.
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