ICF International Inc. (NASDAQ:ICFI) Q2 2018 Earnings Conference Call - Final Transcript
Aug 02, 2018 • 04:30 pm ET
Welcome to the ICF International Second Quarter 2018 Results Conference Call. My name is Vanessa, and I will be your operator for today's call. (Operator Instructions). As a reminder, this conference is being recorded on Thursday, August 2, 2018, and cannot be reproduced or rebroadcast without permission from the company.
And now I would like to turn the program over to Lynn Morgen of AdvisIRy Partners.
Thank you, Vanessa. Good afternoon, everyone, and thank you for joining us to review ICF's second quarter 2018 performance. With us today from ICF are Sudhakar Kesavan, Chairman and CEO; John Wasson, President and COO; and James Morgan, CFO. (Forward-Looking Cautionary Statements).
I will now turn the call over to ICF's CEO, Sudhakar Kesavan, to discuss second quarter 2018 performance. Sudhakar?
Thank you, Lynn, and thank you all for participating in today's call. This was a strong quarter for ICF from several perspectives. Results for the period reflected balanced revenue growth rates from both our government and commercial clients. We experienced a substantial increase in international government work, combined with stable revenue performance from federal and state and local government clients. And in our commercial work, both energy markets and marketing services posted strong positive year-on-year comparisons.
Additionally, we had a record-setting second quarter of contract wins and exceptional growth in our business development pipeline, enabling us to increase our full year 2018 revenue and earnings guidance, and positioning the company for continued growth.
As we noted last quarter, we increased our investments in capture and proposal activity related to disaster recovery opportunities, which represent one of our key growth drivers. This led to both the large contract we were awarded in June by the government of Puerto Rico to assist with hurricane recovery efforts there, and to the significant growth in our business development pipeline, which stood at $5.7 billion at the end of the second quarter. John Wasson will speak about this in greater detail in a few minutes, but we thought it was important to provide context around the additional spending.
Simultaneous with today's earnings, we issued a news release announcing the acquisition of DMS Disaster Consultants, a 50-person disaster planning and recovery advisory firm that deepens our disaster response and resiliency planning capabilities. DMS assists public sector clients in developing comprehensive insurance, risk management and risk mitigation strategies. Its industry-leading project management software has been used in hundreds of disaster situations. We are working together with DMS on our recently awarded Puerto Rico contract, which has given us a first-hand appreciation of their outstanding capability. This acquisition enhances and augments our disaster response, recovery, and preparedness offerings, and expands our reach into the state and local government market.
While disaster recovery represented a significant portion of the growth in our business development pipeline, the additional growth catalysts in both the government and commercial markets that we discussed last quarter remain in place. First, we are well-positioned for additional contract awards in the federal government market due to the increased fiscal 2018