ICF International Inc. (NASDAQ:ICFI) Q1 2019 Earnings Conference Call - Final Transcript
May 02, 2019 • 04:30 pm ET
Welcome to the ICF International First Quarter 2019 Earnings Conference Call. During the presentation all participants will be in a listen-only mode afterwards you will be invited to participate in the question and answer session. (Operator Instructions) As a reminder, this conference is being recorded on Thursday, May 2, 2019, and cannot be reproduced or rebroadcast without permission from the Company.
I would now like to turn the program over to Lynn Morgen of AdvisIRy Partners.
Thank you, Vanessa. Good afternoon, everyone and thank you all for joining us to review ICF's first quarter 2019 performance. With us today from ICF are Sudhakar Kesavan, Chairman and CEO; John Wasson, President and COO; and James Morgan, CFO.
During this conference call, we will make forward-looking statements to assist you in understanding ICF management's expectations about our future performance. These statements are subject to a number of risks that could cause actual events and results to differ materially, and I refer you to our May 2nd, 2019, press release and our SEC filings for discussions of those risks. In addition, our statements during this call are based on our views as of today. We anticipate that future developments will cause our views to change. Please consider the information presented in that light. We may, at some point, elect to update the forward-looking statements made today, but specifically disclaim any obligation to do so.
I will now turn the call over to ICF's CEO, Sudhakar Kesavan, to discuss first quarter 2019 performance. Sudhakar?
Thank you, Lynn, and thank you all for participating in today's call to discuss our first quarter results and our business outlook. As you saw from our release, we achieved considerable year-on-year growth across all key financial metrics in the first quarter. The double-digit increase in first quarter government revenue was led by state and local clients, where strong year-on-year comparisons reflected work on disaster recovery contracts. As you know, the contracts are to assist with the rebuilding process following the 2017 hurricanes. Revenue from both federal and international government clients was stable year-on-year, after adjusting for the effects of the U.S. government shutdown and the impact of foreign exchange translation.
Revenues from commercial clients increased at a high single-digit rate led by growth in commercial marketing services and supported by the steady performance of energy markets. First quarter revenue growth demonstrated the benefits of our diversified business model, which gives ICF the visibility of a multiyear backlog and the upside associated with higher margins in commercial engagements and certain state and local government projects. The underlying growth catalysts in several of our key markets drove higher year-on-year revenues and a favorable business mix that led to a significant increase in first quarter profitability. As we look ahead, we see these growth catalysts benefiting our full year 2019 performance and setting the stage for continued growth in 2020.
As a reminder, the four catalysts we are referring to are: one, ICF's strong position with federal government clients, where we see growth