ICFI - Earnings call transcript Q1 2021

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Operator

Welcome to the First Quarter 2021 ICF 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, this conference is being recorded on Tuesday, May 4, 2021, and cannot be reproduced or rebroadcast without permission from the company. like AdvisIRy the Partners. would Lynn over I of Morgen now, to program turn to And

Lynn Morgen

quarter us Thank thank Wasson, us first you Vanessa. President for performance. you, Good Bettina joining to afternoon, and CEO; review Welsh, are from ICF today everyone, and and XXXX John With CFO. ICF's

James Morgan, is Operations. them of Business Joining Chief

number our And During release for discussions of filings to subject understanding ICF in risks. this assist to you are cause could call, those conference that you XXXX, SEC differ of statements expectations risks we our future about actual statements to results press These will X, our May a I make forward-looking and to performance. management's and events refer materially.

to based We view presented disclaim of quarter views to I In John addition, at on elect John? the made the Please We our our call to may, anticipate obligation cause our ICF's statements future statements to today. developments update now performance. to will over change. that light. will first information discuss consider are as any in forward-looking some Wasson, point, during the turn that but call do this XXXX CEO, today, specifically so.

John Wasson

that the to the to XXXX. our three outperformance thank service it setting from the ranges in for despite There in you to you, the out. takeaways first early discuss expectations Thank and the quarter like led EBITDA of Lynn, XXXX growth key joining us review end us stage a point upper to to considerable full Indeed, first year business ICF year, are all the an APS first revenue, start I'd represented outstanding being performance today's outlook. and our year. for our and results quarter results

vehicles resulted year quarter growth higher increases contract margin on growth which in benefits EBITDA and arenas government commercial service that positioning in high in significantly in specific with utilization, growth. drove First, our and revenue substantial and markets EPS both and revenue, in qualifications, together year outpaced

of resulting third administration, awards times, the recent clarity bill to trailing bids was highest ICF, of contract have to overwhelmingly on And beyond. lastly, priorities, record the XX consecutive for the is are this Biden and is additional funding submitted related a assuming long more and in Second, Biden level which term administration's for the quarter years, potential month office. confident book X.XX to prior we growth about greater the the ICF XXXX we in

our revenues. growth which government revenue XX% together businesses, of quarter for First was and by results from commercial strong accounted energy total led

Looking Services, XX% and our health winds more work by IT as public in closely Department Health Communication also Federal Homeland Security. contract the the of particularly State, ICF in security. at the a agencies, a civilian our of Department the the IT driven in category, modernization, first is cyber and client quarter increase Department by for was Commission, of strong market, business public a and government modernization, Human as federal in federal well clients, quarter from the key results This including transformation, revenues by health led digital government increase

wins $XX than to the the of improve readiness the the strengthen recovery continue and brings these however, expect cumulative to perform which value contract response related onset country's We for we programs, to work, to initiatives awards orders pandemic. More to new the and win COVID disease of future to and surveillance modifications over of related since which task modernization dollars include the million these the future COVID-XX pandemics. work in systems, new positioning reinvention continue face our will of

to new and funding policy priorities. the how are We is and its monitoring define working administration implement

significant modernization see includes complete projects our for new to that has And Administration's been for least at at this looking act addressable agency has Biden billion federal funding Notably trillion market. America $X.X allocated Just Congress, fund passed technology we federal rescue in help modernization $X agencies. plan in IT. opportunities $X the by at been million the

$XXX and infrastructure cyber-security [ph] million security client a specifically is designated to agency, ours. it's Additionally, the new which of

Department federal the idea has the Education, gives increase opportunities for qualifications monitoring families to increase include $XX years our jobs civilian $X earmarked in several These and need where next for across of increase resilience, the for headstart monetization to spending the to play, HUD. childcare project data into HHS, $X agencies, a XX% serve for analytics, some of and where and not Another billion the a over native currently and plan, come $XX for This ICF and strong programs funding support infrastructure a million headstart central District that at billion magnitude in CDC permitting XX% providers projects, for and of agencies proposed increase and nor XX% our billion EPA states provides even the areas the includes safety six including XX% largest expertise a increase the XX% XXXX net and the nutrition contract of ICF Other you headstart programs, tech in grantees XX support and and relevant Columbia. American at clean childcare, example, budget did services proposal tribal of includes to vehicles. food communities. proposed mitigation, at of client is regions $XXX federal but trillion in that to our fiscal XX

these term work first project management. pass Last the a from in to well, markets. support in FEMA is announced our quarter, growth ICF elements portion to we and local provide for XXXX. services private growth recovery Irma and entertainment meet disasters. expected quarter revenues to we extend. high lower mitigation our real our formulation of partnership of As term we hurricanes expand track of week, includes and from probably contract X% award an people or by technologies year, XX and future million two and This four continues additional capabilities first gained declined last to to in due that quarter, to of optimization the $XX footprint reduce funded mentioned hazard digit through previous long conference travel includes savings authority estate June plus Maria, government utilizing Rico's disaster year disaster expenses, month call in to this and to public against Puerto invest Business of protect double our have are we the expectations in revenues, to to In initial from options one efforts a the

up power mitigation contracts, we new added ramped in And during the and related XXXX wildfires in Oregon XXXX. related clients work in to quarter, Additionally, existing outages. winter expanded the the Louisiana to first and

down As we term million recent manage in the at $XX increased the line a the ICF the ICF from expect revenues high has government to of activities, European award contract sizable project, provides our first climate this quarter, profile to and with plaque noted Union. a year. clients role in heart substantially release, EU reflecting The Commission's which action within climate stimulating placed international in or short earnings throughout the maybe

at from non expect a in first saw growth in not the the government US magnitude XXXX, see but to quarter. We to we revenue in clients return

year's for of under just to first revenues in review this Moving services XX% commercial of marketing quarter. our accounted business, total commercial

decline the this of portion a pandemic the business. With on impact to year the year on tied of

managed We have in closely expenses area. this

that expect the to to we quarter. report marketing the in XXXX product work I to representing continuing revenues. and new which in to for related with do clients of of pleased first be year-on-year, for last large the consumer While at clients, health, Commercial markets for quarter end a am revenues great commercial completion from across for great down financial the slightly clients the in XX.X% several XX% total we of media contract Adjusting and the quarter year. energy XXXX, awards of first recognized had sectors. were buying multiple we first campaigns added compared

related utility rate, revenues startup last increase expansion contracts, the reflecting which programs high contracts our business, new the flexible we advisory a resources programs of renewable service efficiency, the saw and and which demand energy include due of diligence timing of single incentive includes at Specifically awarded performance extensions energy at time, and contracts. end and digit for on energy load activities, several year, significant the At ensuring financial management under services, development from existing fees electrification, Deployment same the of storage. and of Rapid

energy advisors term provide renewable additional we analysis design Department of broadly state and winter Coast in Energy, electric programs. the this the surrounding first environmental contracts utilities Additionally, do in time an and year. contract study utility recognized project. at US an the in including February business as expertise markets an issues commercial of programs supports East and the both quarter, environmental states called energy energy situation vehicle real with run levels in and government were the leadership federal related also to cost and at Texas of ICF and detailed blackout time offshore developers, won services and and wind long is for new is we EV ICF the several a in our the to to vortex,

the $XXX financial XX% pipeline growth significant year-on-year yet, XXXX. business at $X and supporting quarter. over infrastructure and end both CFO and administration's Bettina? the We Our of and decarbonisation, for price we the our quarter expectations of with a in multitude commercial in that aligns strong billion efficiency, last issues, year it well the government climate turn expertise to an energy contract going the momentum business of for renewable transmission Bettina, of for I’m and energy creates Summarize science, million energy areas. the client to With extra first in Biden continuing adaptation climate growth resilience positive record was priorities this’s achieve experience a over our and ICF sales review, term opportunity of end our call development long

Bettina Welsh

which afternoon, Good John. initial look XXXX everyone. at you, our more will quarter first detailed provide exceeded projections. results Thank I our a

X.X% $XXX.X and commercial XX% strong XXXX XX% energy our increased and quarter businesses, was total revenue of up driven First by respectively. to million government which performance

XXX increased to growth margin We which XX.X% the indicator points represents XX.X%. Profit in compared Gross revenue revenue service as grew and in work pleased to and total business, quarter. on from Gross XXX see is service are it year's by fringe costs. strong Gross we XX.X% margin on done XX.X% lower service especially year-on-year, ICF of growth better to X.X% Pass-through with to gross $XXX.X benefited employees. expanded XX.X% year-on-year of total first revenue our points basis Margin basis for to million. our last by revenue accounted of revenue revenue trends a

which on certain $XXX a recently primarily costs quarters incurred million awarded specific was upcoming significant price there on expenses timing will million efficiency to efficiency in quarter be benefit program several the the and Additionally, selling fees contracts. of compared and timing $XXX.X of fixed several contracts, were ago in quarter. year energy the the incentive energy Indirect from

to service costs. year's last However, in XX.X% $X.X as year's of in selling a last first quarter. XX.X% million $XX.X XXX revenues, million expenses facility XX.X% million, percentage closure inclusive above compared to declined $XX.X was of severance basis indirect points EBITDA in

quarter EBITDA to $XX million XX.X% year's incentives revenue, higher first points XX.X% adjusted was of favorable revenue from earlier. quarter. thanks Operating expanded million of awards on and contract of in charges first $XX.X special timing Excluding the income increased margin though mentioned I million XXXX. last million XXX mix Adjusted in reported $XX.X to compared basis service EBITDA $XX.X and to the fees

XX.X% GAAP diluted diluted $X.XX of line was On quarter per from the to the the and inclusive of in million in charges. impact taxes excluding share last expectations, the $X.XX $X.XX with XXXX. EPS charges; amortization, year's quarter $XX.X quarter of up non per to record share compared or this $X.XX, basis, income XXXX or this were of of XX.X% of special Net first special XX% was our rate $X.XX charges in $XX.X $X.XX. of a tax special tax effective million inclusive for Our first compares

are first of operating of use we typical the operating quarter comparable cash Moving compared statement to our The period XXXX, $X.X a flow of in quarter million in and the upside flow sheet, more to flow of the million seasonality. to $XX.X Capital the compared with the last sales pleased $X first our outstanding of and were positive days the accounts cash was which million higher similar period balance cash Day year. March is net payable. compared of prior function income timing days $X.X XX in year. XX expenditures in to million the were for

improved March X.XX end Our of end the times at times to leverage ratio compare at of net X.XX the XXXX. to

allocation, and growth, continue our funding As will reduction organic we and offset acquisitions buybacks dividend dilution. well to share for as to debt doing as prioritize capital moving forward,

first XXX,XXX Also, July Speaking of employee we dividends XXXX. of of of $X.XX the repurchases million in per of dilution to cash XX share the $XX.X repurchased on we and offset quarter, today, dividends shares incentive June to declared our for shareholders program. share XXXX, XX record payable quarterly

performance more and seasonality, expecting earnings and we strong we distributed the past. are less very the Given than revenue in had this evenly year in QX,

modeling will million rate to purposes, metrics million expected be $XX.X million greater range $XX.X million. Depreciation to million. should XXXX. year interest XXXX. the in than should For in for of expectations year $XX range the remain XX%. is expense no Full million full year Full $XX.X range intangible tax the from $XX our the to Amortization to amortization be following of for be expense and $XX.X of

fully XXXX. expenditures $XX.X anticipated $XX and be expect count to average $XX million capital diluted million between weighted And We approximately of share million. are for

We John his for cash also reaffirm closing our remarks. will expectations million. flow With I that, approximately back turn $XXX call the of to operating

John Wasson

XX% performance key call, all quarter As ranges APS new operating time reaffirming I areas, service mentioned the year represented provided of disaster are aligned XXXX first the outset we the consulting, of our cash move namely initial expectations has guidance modernization, Approximately of we growth are end full total revenue earnings in the with upper led of with IT us and our to revenue management for of And along fourth quarter and which administration. programs, growth health, EBITDA environment utility work for our infrastructure XXXX to climate, ICF public the at our release. outstanding and the our priorities flow. closely revenue service this of

or in areas be rate together, to growth Taken we over expect these next years. the the XX% more several

for on XXXX. achieving to way objective this well We our are

We are horizon. capture the making growth organic on the the opportunities requisite investments to

we Additionally, passion neutral likeminded for and social and who've pay. carbon a last the time, years, remaining much namely citizen, access market. were responsibilities. total To And like enabled we'd in a environmental energy infrastructure, diversity, have has At areas to can acquisitions our that embracing for commitment its call report. more ICF issues XX% of which corporate about and service over prioritized two social fact, positive us corporate to of have addresses in create pursue derived society. revenues you same that XXXX, to good people our environment our the ICF in and a XX from questions. addressable financial to being our programs, their With social and ESG open citizenship the areas equal justice is This and and recent markets, attracted work. shared to health resources expand further our benefit has business how that largest impacts. shown At now ICF, operator to most the Encourage learn

Operator

Please first have Tobey ahead. Truist Sommer question [Operator Instructions] Securities. with go from we And our

Tobey Sommer

give get the XX%, growth Thank number was of the to we about back on business, digits cyclically a years. well. us that grow maybe going hoping to were and say there? Could impacted can you How your sort the color? in some is you. of the complement I growth of as should double those you know, perspective You cyclically, bounce for businesses the non of think some

John Wasson

the administration the opportunities. And I excited you more XX% look Biden see continue out, as I are look key XX% we and we our we think beyond growth as growth know forward, think that generally, get priorities, as to given about there. Toby, we, assumption, know, this markets, you the we in certainly

of You over of single I time, business, look think a kind we're flat we generally rest think know, the to businesses. with I get of the low growth as digit the those XX% forward thinking

term. over And so generally at I we're the those looking think that's how longer

Tobey Sommer

administration well and of the of say those influence income let's day, and the company? the In infrastructure bill, the related those contracts, if the statement to then when you. Thank would are eventually Biden Okay. that today, proposed, flow the most the happened appropriations budget likely it in passed, through pick a as as start let's into

John Wasson

generally, mean, you the thing is think say I Bill I I read October summer, on a X. read mean, you I've I what going infrastructure same I the, passed towards passed, the end would the the the think six you've realistically, of be to and I three on the summer, later passed, sure budget, know, I'm is these would budget obviously, once months. read start know, to don't is bill infrastructure until your you

I you to think move time. But the government to six have know, the for a I it's infrastructure months, three those I right if money falls place, think unusual in place, very a potentially quickly. it's think budget into on could more

way think I you significant bill us year, that's guidance is beyond, for out this the assume and that's in about obviously very if the doesn't know, any infrastructure plays XXXX. upside our the so positively, should And impacts budget really think materially you think for there. I And

You But, last opportunity us Biden the significant had know, are very bill bill, growth. over very Biden already I which passed think up well, administration sales some to very do few that quarters, for has for stimulus set strong predated the us. strong we've the obviously, that provides

we look forward. As

Tobey Sommer

interest? M&A Can pipeline you appetite in what of looks talk like? Your the the about areas in

John Wasson

Yeah, sure.

of constantly years M&A public, been about many the our would XX of as think growth say key has implementation over our grow robust, has a element that been capabilities, you I and last could been either been market it's you looking on I half to the I an organic, side over or help that know, us the years, think out of we've So, business. know, half since strategy side skills our domain in the organic, been its add certainly, we're

think market particularly the say IT deal federal we're quite the the in federal pricing side arena, deal, energy quite modernization potential at around I now we've opportunities the is I lot a of in the and on like certainly looking that energy arena, talked fact the flow, about active seeing transformation right the commercial strong on would public arena, is frothy. we're in federal focused digital become active, health,

before capital the concerns know, You Like think, year. low. there obviously the interest here are I rates end about rate gains of are the

the picked so, flow up. And deal is certainly of

certainly lot opportunity there. there's so out of a And

know, for you were those obviously we companies, valuations attractive in I really get just very, very As that good strong fit even good long revenue, good cultural that, go the quality on you if have mentioned, see think And make was want great last a we markets high if deals, term I can strategic synergistic we acquisition I revenue, really focused year with a growth. it know, us. very in we for synergistic example can found companies can funding think companies find that ITG And and we the a on the you are where fit. and the

we're out We're up. market. we the levered did And ago, a so know, have looking year as ITG, you we

X.X. to net our X.X Now is leverage about ratio down or

deal. end, don't I It'll think do under by year we a two. be

forward. capacity front, the the have certainly looking we so here And acquisition on

Tobey Sommer

you weren't Thank Last would normalized that me items some on the been question is basis if called out? gross there have you. margins for what of a

John Wasson

look at to going Bettina for question. the I'm that

Bettina Welsh

this the the award. the efficiency gross contracts with awards that the the the and pleased related of upside our question. price basis No, approximately there's energy would is several quarter, on points fixed timing timing we're for margin But Absolutely. incentive I of Good to of those energy gross sure. margin XXX real probably say

a good there. sense hopefully, you gives So that

Tobey Sommer

Thank you.

Operator

Thank you.

from our go with have Sam England ahead. next Berenberg. We question Please

Unidentified Analyst

[ph] is. it's guys, Sam, Hi, my for question first Alex

pandemic You exceed on you commented on and work work, with your did confirm this? previously, HIV response on still that but your agencies health could you AIDS,

John Wasson

information think, the NIH, we've that front, on we've talked about, for You clearinghouse that. and potential as And for I there's focused of a HIV run on know, I the think sort a announced AIDS website we begun that COVID and had similar options in and the several sharing providers, ago website, think a we've latest treatment quarters physicians, healthcare to the on efforts providing on I front.

we the be the look the do sizable And quite as there recovery look so immediate to to the road down think past term, longer once opportunities we response, us. down road, get response for from and could we I COVID,

following those we're think I carefully.

the that's I but and potential out quite half year opportunities those of be sizable. then second I opportunities, a more and into this there's type think beyond XXXX of to for think

Unidentified Analyst

great. Okay, the thinking year? strong in rest QX, the of guys the you performance hiring for given are about how And

John Wasson

know, matter I all a we're obviously, You years employees. between about know, two people gray in business; our of think you the the the it's

be staff revenue we're so, growing, with the adding in aggressively adding service X.X% need quarter, And you staff. know, and first obviously to

we're of we're for the recruiting the on place, So front. out forward leaning market

be think I to it's going critical.

but think, always our I've to I be out we're utilization and people recruiting, to we're X% need said, and for on hard raise time, as business, quite grows, as revenue to our revenue X.X% working over additional need there staff, that be in we sure. adding a we past, trying the to grows XX%, it's the leverage

Unidentified Analyst

great. Okay, guys. Thanks,

Operator

thank And you.

Joseph comes ahead, next Our from with Canaccord. Please sir. Vafi go question

line open. is Your

Joseph Vafi

afternoon. Good guys. Hi,

I've past kind the of then, the some perhaps deal know, relative modernization what especially And your on federal back Thanks. give in Just business you're some now, you're on there. strength of number wanted on larger on bookings, IT size specifically with the circle side perhaps, the you commentary to getting one, in kind pipeline, to contracts. proposal kind quarter to and and saying and and average what questions bid asked of in seeing

John Wasson

Sure.

APG of the basis the it attractions So, the I the in doing I think, about think on the us not and you areas. think in Joe, past, for market, key I of generally, to front, modernization company, ICF as and $X.X mean, billion talked I quite double and a billion we've get our I see And some grows, is hit for the going the think company acquisition one modernization become in significant we've talked we're the contract road, we IT a you $X program. down we're about larger market where need as can opportunities. be to as deals, winning size certainly a as that

You million, you modernization. million in your around client can find know, deals our $XXX $XXX sets, IT

down, I similarly, of part to trying modernization, some to identify kind and part that of our have and next say, is the Health, win of areas down larger that, put Public hiring quite to and of would in we capture and strategy deals of focused IT investing taking our Education, level capability terms in around significantly kinds and journey. in go are who the people in on certainly you and and deals of upping Services. larger this So, as us larger program Human Again, opportunities capture help on take deals. And these been we've taking and HHS experience down know,

is that we part progress I our so that in strategy. certainly of pipeline. And think, And continue make building to

the of mean, as some won mitigation that to see be time over sizable. in in been you the we we've programs, continue in Now, I that the sizable resources also I know, disaster think, deal the Rico, space, put Puerto on two and efficiency particularly we've energy time, capture arena, I for sizable recovery. will contracts opportunities, certainly opportunities those into and capture in say both obviously there, also then commercial quite quite energy I'm significant federal around, could some

a writing proposals. have I us, spot. sweet to more amount now, and business key for strategy. we these marketing, of growth everything it's fit right is are we mean, unique a part And our so significant I our time proposals, capture of development have saying And a view think just long drivers. that's bid my And a in way it's we investing winded to

To so And opportunities to you resources. can't of pass let you do invest this, kind the we these have by.

Joseph Vafi

That's helpful, John.

in the So growing, more, top like at does get perhaps of know sound mean, [indiscernible]. up there's on company I bit that like obviously, company's and I activity this maybe a step margin, the more bit maybe sounds you're grows. little of you'll it a it to year proposal going But

John Wasson

down capture. have put be can We much you advance, in working if these deals, to those start they're know, deals can't to deals, to Joe, And we you take find a larger in those couple three up. are going mean, you I working of or kind as years you're cash in hard before months those

Joseph Vafi

some you're lot companies, Thinking of I mentioned, that of about work. looking some Would materials emerging say those combination? those are and it the larger the or Or on? within work things of new Are those kind mitigation of a that a that know, areas? is newer, repeats you you brand leading

John Wasson

It's new a add scale. five more pipeline looking There's that's tend contracts our and to in length. to a, opportunities talent. we I both. the invest I obviously bring of we're at mean, combination been always to mean, And as be focus certainly the new four to years in

take think more markets capture, we're, in to year, in. again, and the we’re of as and got the too. it those I more pursue you should seriously know, opportunities newer we we're as repeats, invest set you've investing you think that do you've every I got growth you of know, think a So, more, But, to

Joseph Vafi

some business kind of perhaps other out of the going that is how what missed faring, great it, question, other with part clients. and of the ICF especially there. of part one scenario I then And you to if on in you're lot quarter. Thanks have might reopening it. back the Got particularly a expecting business called next, And

John Wasson

Yeah, thank you.

know, marketing say You the front, services. services marketing would on commercial I

be it year. the flat generally think, I to expect for we

marketing we year of the in given quarter we think business through obviously in first commercial quarter, the ago, I first but rebound forward, challenging are look still is the assuming this know, comp the a You pandemic, a as mostly this significant year. pre

verticals the quarter several welcome, We're and been late that third think those rebound. travel tourism. will generally improvement, quarter assumed I a improvement, impacted, hospitality, fourth have

the and of You economy with the pandemic the know, end improving.

so we I We note that also year contract but assumed this for commercial total a take we're will large have you European media when a a did that when a Commission. look at in buying the year, with in so marketing the the way that out, in revenue last that's services you haven't I growth expecting a think, similar the that client and business, ended we do flat commercial Europe marketing, generally marketing

business meetings. will there and that seeing of generally growth know, year, open we this expect You generally being but in when we of marketing in Europe face Europe, face to a in up are terms conservative we're terms rebound

As you as rates countries. other not been have high know, their as vaccination

So that's it. we're generally about how thinking

Joseph Vafi

very much. Thanks

Operator

And thank you.

with Blair. question Our William go ahead. Please next Andrew is from Nicholas

open. is line Your

Trevor Romeo

you everyone, Andrew, afternoon, this for Trevor questions. good taking our Hi, is actually thank in Romeo for

a related just on you energy up marketing? more you of an increased Would reflection ranges? you the like continued areas more Is do of guidance question for hitting the of of of first high guidance was kind more that strong outperforming the balance the just accelerating the some of softer kind to for, full areas performance or year the quarter? end that expectation And a that expect end like and strength to from IT kind in rebound in if year? modernization or for your in come an of kind of the of know, your First expectation of the

John Wasson

we're to said assuming to of have growth as run, but first do is upper if guidance, the front, year, the the that, I that for were still in we I range, or the think, think it's exceed think strong early year, were a think obviously, the not to there that, performance. largely I gotten the reach. I the Yeah, of we quarter that we've I Having momentum. I we it end we If going think I certainly, to we areas. in said mean, would guidance of the if, services significant fact long but reflective of And significant, think improvement just rest our are assuming into for come not on kind the I year. marketing I mean, were exceed very

quarter, the to year. call I that takes markets, still the to It's so, hopeful very end growth the a and strong we've the that as early And execute think them had go we're But these year. continue range. first we robust upper throughout of we'll are in

Trevor Romeo

kind then, guess, you any awarded for you I in the Puerto the potential contract going award on curious just there forward? decisions timing just Rico. appreciate some That's of market. We're detail of Thanks. recovery Okay, in provided that And if opportunities see then great. the additional know, you you're of whether disaster helpful. new so, And

John Wasson

Sure.

to So quarter, contract, in on in housing work, the you won infrastructure Rico, first award FEMA we're awaiting support Puerto we know, public addition front. the in to the on there's several funded proposals

HUD plan, that we the on we've award at of number first those from Puerto to I've funding. that that two from a forthcoming mitigation we're I calls, their mitigation discussed, may the aware mentioned think here, be of RFPs. upside. as the year, approval are That billion awaiting there to received expect I'm in or Rico, for contract provide RFP contracts on half they these have $XX under of funding, times under least

and I certainly our fees those. So build be think forthcoming, there will we'll

going still to come. to I so think run. in And opportunity Puerto for we're long amount the Rico And there's there be fair for us a of

we storms programs state the Well, I generally I you won under know, about increasing. be leader a funded Biden we've by mitigation contracts disaster to obviously, which think I certainly the think the programs. of four level dependent year, and the I there? will that year. on funding, market a are But mean, bucket, for I talked mitigation FEMA talked more were there's frequency continue we've and think in last administration, by partially each both we've and new it's the about or and think And five severity the HUD on data with shows also recovery.

know, we And see driver to of driver this think here. double for be certainly growth a have Said growth seen it's as confidence growth long us And term business. recovery long we've digit a I the term year. I a, that going disaster so, in there's again, you think we

Trevor Romeo

you, great. it. Appreciate Alright, Thank John.

Operator

Riddick have with next question our We Sidoti. from Marc

Marc Riddick

afternoon. Good

conviction more what So new recent sort competency about talk talk you're and that throughout support confidence the your about come? of cadence around I greater wondering things developed timeframe and given the the if seeing from could was level should little maybe quarter of into of be to the you how bit things some the a and have administration what of that

John Wasson

of in on think well, those good mean, but touched question. Yeah, I it's I a remarks, I the many

and countries initial strong priorities, week the of terms will in in day think Administration. in administration, his the remain of ago. executive they They've climate what see, recommitted I just think mean, I change [indiscernible] White IT proposals. last policy accords, those last and and put years, had XX for they're or we I that climate change, drivers the Disaster us. jobs about couple know, some and in have years. the of for we've ICF. his his House Public a world. that the to That any think, to very an resilience obviously, is clean practices And they four budgets kind and think He definitions meeting and infrastructure talked as area rail, so And I plan the largest be The if climate infrastructure for office. then Trump drivers on some Health also focus has for I beneficial are we about of steps broader infrastructure, out proposed question I be embraced. my that obviously, end that going infrastructure, and certainly obviously, bridges, the very you consulting will on address take the those up reality, the American roads, traditional civilian be bill, for environmental a remarks, given budgets, budgets, on change Biden And of that of for good and growth based I talked in a in Recovery the to of first are focus several think at but utilities. his two administration, portion Biden only there's we've I of several agencies obviously, were modernization, key technology growth of proposed change of significantly And the budget proposed if on will climate drivers place the front do just with in addition, the work for seen then would move orders. becomes XXXX, Biden growth on

of I the terms a so Biden that's lot giving in administration. what's think confidence of me And

Marc Riddick

what I Maybe date with wondering to up effort specifically on outsourcing you year. gave you the of you're an then on there. update seeing that this us with California if could end was And update the at an around bring and

we Just after last as that? wondering as if and there's a one and timing little what there have far further And might work then follow as being far I up see done there. actual information as

John Wasson

Sure.

energy quite efficiency, think California. So remain I on we opportunity focused

fourth accomplished a we I won, think the last this quarter energy contracts have numbers we'd in million the kinds of think year. win. could I call, said think those $XX on be pipeline, robust efficiency we'd hope perhaps XX, we of A similar, I north the I of would again year,

think kinds of opportunities there. those out are I there

California And so market. we're quite focused on the

You The will know, and significant more in expected. quarter, first of one than the number we energy week say new efficiency world did our I we contracts on contracts plus ups a existing win quickly came competes.

aspect efficiency change say, you it energy margin QX, I would again, I'm grey star a spoke to I addressing think going how know, not some I think be to think a trend. gross and forward. But those climate with contracts will willing central of call Bettina definitive I of

or steps grow the additional provide it to so business. to impetus undertake address successful, energy administration And will efficiency is Biden our that issue,

quite market up remain the And optimistic general. about offer focused remain energy we on to efficiency up so anyway, quite California and are

Marc Riddick

for as of as to wanted just year Thanks. see where cash. comfort me, you go as I far then far we what of Okay, course over, think, level, leverage is great. the Then throughout things and one I as to last the levels, see use thing might

John Wasson

acquisitions I of I'll mean, think details few leverage Bettina we answered words. I say Toby's have years, think, we've that the you generally levered I history or strategy. I three let into a pay know, part use And our of all I'll cash up, question, down. as mean, a get a ratio. are Every we historically, I strong a of key to two flow

down You which the up know, certainly we then comfortable when I think over next quite with and done we've it the X.X, leverage do ratio X.XX several range, generally, paying years, into ITG. it, we're leveraging

here. very cash flow we've had strong I think

think of [indiscernible]. I part our so, a that Do to And just talk strategy. about you remains want

Bettina Welsh

Absolutely. Sure.

maintaining project know, if described we that to levered we certainly you the the in that recall, half down our is to and company we'll M&A. by just our over down the to primary We and to up the script X.XX. not end the get year, we you So, but know, as of X.XX our when in we times ratio. debt, to we're about meantime of continue that's fodder debt. ITG we down end with for objective, three a brought by the pay buy you a Clearly down year And down was And the continue X.XX. should purchase to in

Marc Riddick

Much appreciated. Thank much. you very

Operator

you. thank And

no have in for remarks. I turn will the now call We John Wasson questions further queue. over to closing

John Wasson

today's meeting look events. Okay. with you. you We in Thank you call. forward upcoming for Well, to at participating thank

Operator

And for you, We and ladies participating. This concludes thank you thank conference. our gentlemen.

disconnect. now may You

ICF International (ICFI) 10 May 212021 Q1 Earnings call transcript