ICF International Inc. (NASDAQ:ICFI) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 04:30 pm ET


ICF International Inc. (NASDAQ:ICFI) Q3 2019 Earnings Conference Call - Final Transcript


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Welcome to the ICF International Third Quarter 2019 Earnings Conference Call. My name is Vanessa, and I will be your operator for today's call. During the presentation, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. [Operator Instructions]. Please note, that this conference is being recorded on Wednesday, November 6th, 2019, and cannot be reproduced or rebroadcast without permission from the company.

And now, I would like to turn the program over to Lynn Morgan of AdvisIRy Partners.

Lynn Morgan

Thanks, Vanessa. Good afternoon, everyone, and thank you for joining us to review ICF's third quarter 2019 performance.

With us today from ICF are Sudhakar Kesavan, Executive Chairman; John Wasson, President and CEO; 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 November 6th, 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 Executive Chairman, Sudhakar Kesavan, to discuss third quarter 2019 performance. Sudhakar?

Sudhakar Kesavan

Thank you, Lynn, and good afternoon, everyone.

Thank you for joining us to review our third quarter results, and discuss our business outlook. This was another excellent quarter for ICF with strong year-to-date results. Revenue increased 13%, adjusted EBITDA increased 15% and EPS increased 16%. We are particularly pleased that EBITDA, and earnings growth outpaced revenue growth.

Our year-to-date growth has been broad-based, and reflects several of ICF's differentiators, namely, our unique position in government and commercial markets, our deep domain expertise in growing markets such as energy, health, resilience and cybersecurity, and the services that we have built over the last 10 plus years around IT, program management, data analytics, and customer, and citizen engagement that have enabled us to win, and effectively execute on large, multiyear implementation contracts. These same competitive advantages provide significant runway for ICF to continue long-term growth over the next several years.

We also see opportunities to complement that growth with additional organic initiatives by hiring people with deep subject matter expertise and by making acquisitions, which increases the breadth and depth of our expertise, similar to what we have done in the past. For example, in our federal markets, we are working toward gaining further scale in the area of IT modernization, as agencies are facing tremendous pressure to streamline, and replace older legacy systems.

Here, we have succeeded in leveraging ICF's competitive differentiators, which I just described, to win important contracts at existing