ICFI - Earnings call transcript Q2 2022

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Operator

Welcome to ICF's Second Quarter 2022 Earnings Conference Call. My name is Michelle Foster, and I will be your operator for today's call. Please note that this conference is being recorded on Wednesday, August 3, 2022, and cannot be reproduced or rebroadcast without permission from the company . [Operator Instructions] I will now turn the call over to Lynn Morgen of AdvisIRy Partners. Lynn, you may begin.

Lynn Morgen

Michelle. you, Thank and ICF's everyone, for us joining Good quarter thank XXXX review second performance. to afternoon, you With us today CEO; from ICF are John Broadus, and Wasson, CFO. Barry Chairman and

Operating Joining Morgan, is Chief them James Officer.

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

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

John Wasson

earnings Thank I'm discuss strong you, thank for quarter all in our call ICF. another for Lynn, performance to that second our business you today's outlook. this report pleased review of to participating was and and quarter

revenue. growth now management. service of our by and infrastructure second we environment in continue Together, over First, as account to which digital and build well for XX% high-growth utility markets, our consulting, work quarter disaster climate, public our in the also in services, our led as position transformation, include health markets,

future technology service people year-on-year basis with we profitability our investments support continued while to and revenue by increased XX to growth. points Second, Adjusted improve. continued in to EBITDA

which SemanticBits, least, the full half strengthening year an a our announced strategic Third, certainly year. subsequently we new of awards pipeline, XXXX. for second in Last, in July but acquire margin in ratio, success business year which visibility, a a record XX-month was quarter second ended on trailing increased agreement revenue $X.X expect to considerable in full growth we to contract and transaction is quarter with book-to-bill and this revenue X.XX result billion the not we We exceptional guidance. our and the closed in XX, key factor the definitive ICF this

mid-teens is quarter line client work, increased of by revenue completed by end growth with government and in and the we acquisition the which Second XX.X% Systems reflected platforms was significant well, Creative's synergies expectations again our change and growth our our growth, of The acquisition see SemanticBits at Salesforce for federal performing led and revenue we Creative organic Consulting, The opportunities XXXX. to and in which capabilities. transformation digital in expertise a civilian of Microsoft agency in clients. roster revenue by acquisition represented broad for step substantial bringing

with fast-growing As complements civilian one large platforms source, using in open will us to deep success agencies. capabilities SemanticBit's enable IT support platform this expertise existing approach of agile our together demonstrated technology domain the more industry's leading federal health XX ICF's complex a providers fully digital using market. projects executing service projects, in across across Their larger, and expertise,

derived digital SemanticBits, increases large the lot vast and scale an $XXX addressable opens agency new an Services, open-source a budgets. million. our across We Medicare annual space, up run CMS, transformation of substantial and our With for ICF us, our the growing large majority time, market rate has business Medicaid giving approximately SemanticBits opportunities adding and the win of of with from for at a with civilian are seeing SemanticBits same At revenues Centers rates. potential its

only ICF on X.X can full months this accretive basis, with year, the you is transaction non-GAAP for a guidance strongly ownership. see by as of for Additionally, EPS our revised a

annualized addition public of rate, on revenue increasing IDIQ National for remained Division In growth at for X a of approximately an with robust a Genetics $XXX as win X the of our ICF, track Research. a double-digit Epidemiology digital rate to Of is new awardees of run note Cancer by recent transformation, and health Institute's market million. Cancer,

the other $XXX like be largest provides just future the XX will to operation for and spot, million increase XXXX our the inform received and within of Health budget for we We they competing our years won. provide are studies and part discover prevention. by clinical squarely Department up support of epidemiologic causes client Human to of funds to programs this over as cancer that and activities XX% and IDIQ The Services is sweet substantial far, for research

ICF an legacy Response, This seeing and next and provide technical CDC and IIJA for this Control of or communication at Strategic response. behind be Preparedness excess to pandemic, contracts planned range are IIJA, calls assist and is the Disease ASPR, emergencies. Also, as to been Centers with both part assistance, and is management existing Infrastructure for the Administration of the Act, a is of Jobs today to a contracts for that past would at as effort including we've federal ICF new accelerated separate we ASPR the the and that response to we assistance under Additionally, both to well-positioned have the valued Day tasked where as the health tasking and this programs. division $XX May, relating charged or preparing support in phase in our discussed create Investor of gain well-positioned on states past million. already nation's post-pandemic will reorganization for the to services, agency

the significant, government end record see half the of of federal contract second pipeline in and was the growth billion government second year. a quarter, backlog of at the awards considerable the at so Our to in expect pending $X.X federal we awards this in is

on Housing clients, Urban led and announced Development the our by management the last $X than disasters CDBG-DR/mitigation government more saw year-on-year for funding work. revenues won Jersey, local than of including billion Department awards in for extensions Iowa, work We XXXX/XX strong from support growth Michigan, also occurring the Kentucky procurements during cycle, competitive X.X% Late our in Colorado, through in quarter, that of the Alaska, recoveries New more cycles. disaster and in Of contracts. existing second the those or grant and half of ICF either state recipients year, to

for as the of to is mitigation states. in see legislative to IIJA we to ICF projects regulatory give all unique spending continued We become clients which projects mitigation and up understanding bring strengths and competitive XX do applications across multiple XX-plus on These such set agencies. funds and have including Additionally, the complexity government working levels advantage, ramping at execution we now efforts in requirements on programs, and through a to state mitigation, meet successfully environmental, more managing orchestrating of fruition. capabilities flow federal to local a then expect important ICF

were with As to significant in revenues from government in international the pass-through this due expected, exceptional revenues client a that lower category growth short-term clients year-on-year drove XXXX. project completion of

impacts. though Excluding that European second not project, has ago revenues work from even were recovered similar fully Union to our pandemic the quarter the for year levels,

other to our In states; win market addition technical two with cost-cutting event public the our existing support in on international a the continued as and modification Commission, promote clients we leverage to expertise, ICF products large EU including work, pipeline comprised to capabilities, to to technical projects market, add-ons throughout in have competencies matter the recompetes outside training provide technical countries agricultural program international European multiyear member one of and this contract for management. framework contracts consulting communications subject to EU. and as both well public and active Also, assistance, of our strong implementation, opportunities sector ICF's areas in sector

first revenue continued commercial category. quarter, marketing exceptional to reflect for lower difficult comparisons client in the which half, made this commercial has and growth year-on-year energy commercial we our services comparisons in the to to last year. Moving in had the first Similar softness year's

continue We commercial pandemic-related on verticals. closely they to marketing to from key services impacts recover work as manage

on a may a business quarter support programs out. increases of that had in be with were the of sequential half less second X% conversations potential recently loyalty preliminary also in about basis, demonstrates bottoming in for their if revenues sector an We've our than of revenues and total indication accounted business the Second early stable improvement some clients year. the couple stable this travel hospitality for a

well, our continues very to Lastly, double-digit growing perform a at consulting aviation rate. business

course, area revenues. accounted the quarter long-term which within energy Of growth major our business markets, second commercial for of is commercial XX%

and first Second to last of quarter. impact environmental a Energy were almost at those energy early that in increased can X% efficiency up revenues. the markets the similar of advisory period same XX.X% in X.X% The it were our the was quarter. after timing work increased was And in year-on-year up work was projects markets in the mid-single-digit year. having rate. about where the decline quarter first Energy revenue trends quarter-to-quarter energy infrastructure identical

expect comparisons We second half in of higher year. year-on-year this the

also ICF As energy electrification, implementation, marketing utility services market energy pipeline services remains quarter, advisory for last and beneficial core strong the discussed efficiency program and consulting.

a and and new of new as goals. excess set see and in of and Oregon, utility the Connecticut, states, regulators programs Columbia Our has District service pipeline we billion, expansion Colorado practice aggressive in $X including opportunities legislators

past we Air the five more to as In electrification, in services services. now purchase for of area, value Research, and and EARTH multiple we beneficial billion selected U.S. and we're the XX and strongest scale, X of federal, domain pipeline our the otherwise expertise is is our in new an opportunities July each substantial with XXXX blanket trailing Hybrid in seeing XX-monthbook-to-bill client award than with and our support end pipeline a with commercial The a approaching energy the of at business to significant much This all in of the office as our growing. to front consulting provide for billion deep $X.X appears Congress agreement passing large demand Protection in climate And combined expectation record awardee $X are us and For experience XXXX, of at ceiling pipeline course, we or have Support awardees, will Act, under Similarly, year and been professional have capabilities range legislation to categories ICF our identified, as the continued allocated of part our XXXX, to To set. years. serve is Analytical, half environmental opportunities a we up, provide of known first triple award broad government which of markets and pleased the across growth five build Reduction of services. closer this sum in we're the has pipeline to and the recently ICF climate-related executing advisory key and across local many increased Agency QX, over This, that the on and as $XXX these complex in the projects. of increased government of for Inflation and our state of Environmental, growth clients, the Environmental Technical Services client X.XX BPA with hear Radiation. million our beyond. it's commercial

the Now review. call CFO, I'll for financial a Barry turn Broadus, over to our

Barry Broadus

Thank of everyone. good our you, financial second to quarter's and details afternoon, the pleased provide John, I'm performance.

metrics the full guidance impact XXXX that our In updated addition, I of will the reflects SemanticBits share acquisitions. year for

revenue quarter service and $XXX up million. $XXX.X total increased million, X.X% revenue X.X% Second to to was

government on revenue XX.X% benefited was energy and reflected of year's of compared our in and local several These by XX.X%, second fixed-price as margin efficiency revenue figures many drivers XX.X%, service this revenue led growth quarter the same of from in revenue XX.X%. quarter increases to last state which margin the second was business respectively, from timing gross clients. the our double-digit quarter, and was and total contracts. federal, year, strong Gross first Our on

expenses as support Our continue in were to people invest of $XXX.X X.X% growth. indirect and and we million to technology up selling future

these basis, from same a of basis expenses revenues period positive as to points adjusted XXX for service an XX.X% down last XX.X%, declined on reflecting the leverage. However, percentage year,

to the our infrastructure integration acquisitions. XXXX in certain focus on of we recent Additionally, investments to delayed

as period to million the to last Creative second compared balance well million, related an and expense increase acquisitions our in year, $X.X was rates. reflecting increase as debt Our the an $X.X of quarter ESAC, higher as interest interest same of

reflects now million the the approximately increase we to XXXX, year at $XX from gave to $XX and the year anticipated an in this the we full the increases the SemanticBits as $XX million, additional higher increase year. is of expense range of rate interest half second interest of rates. million which from of beginning well as The expect guidance the includes impact acquisition, For

initiatives. additional through a gains and cost offset impact this to portion of expect back-office We large containment efficiency

stable was XXXX. EBITDA at $XX.X quarter in million second the $XX.X million Second of as to compared quarter

points largely our Reston, to rent EBITDA revenue, Adjusted revenue and is second pace to M&A faster of Excluding at activity year. the Virginia previously scale with increasing grew special million million, expanded noncash related in $XX.X second compares consolidation to than benefited as approximately mix, associated $XX real energy million. benefit I as last a million, compares which initiatives. the adjusted increased $X EBITDA $X.X expense high margin Operating charges a This of $X.X This quarter totaling to headquarters, XX.X% service $XX.X million. basis our of to the new XX.X% contracts income our from last utilization from we million $XX estate levels, XX we included at fixed-price was million well as to year's reported quarter, noted. which favorable

charges second last income share in was which tax-affected charges, were $X.XX XX.X% the includes per to last rate our tax the quarter, net of in $X.XX increased the which and quarter of M&A the This second quarter which share. or $XX.X per $X.XX On facility second or totaled compared related. special amortization impact diluted and excludes and year's non-GAAP million of in EPS to Net intangibles, income XX.X% year. of $XX.X basis, compares XX.X% $X.XX $X.XX a per Our special EPS was share. of million

our to flow. cash shifting Now

operating in half was flow seasonal Our $X.X cash first historic last million, year's line was which with trends.

last were second $XX were quarter. headquarters. days, the Days outstanding was in year's included expenditures for second our the same capital which as which quarter Our sales new investment the million, XX

Our $XXX.X end our of in June, historic compares debt expenditures. at the million end of million debt at of our the XXXX. to which The was the increase $XXX.X reflects collections seasonality and

end the June at ratio of X.XX. leverage net was Our

of SemanticBits leverage capital markets have XX net in last build additional ratio to approximately acquisition, the continue end basis and no assuming John acquisitions. several the active and quarters, respect this by spoke Following the allocations, growth scale and points we to expand year, de-lever was X.X, over by been to an significant With we our the acquirer we a expect about.

substantial to reduce our Our continue the strategic ability repurchase we M&A strong debt to pay organic consider offset dilution flow, our and growth initiatives incentive our us further resulting dividends, including provides shares support financial and position, while our with cash programs. from to employee quarterly

XXX,XXX $XX shares ended million. XX, XXXX, months June six we the During repurchased for

dividend on declared XXXX, In addition, today, on $X.XX XX, XXXX. September of X, of record payable we a to cash quarterly per October share shareholders

For revised modeling which our are XXXX purposes, year the here expected expectations, acquisition. incorporate to full revise -- are SemanticBits which

we annual announced small several expected As acquisition, revenue given we is be that margin XXXX, when recurring in $XXX business that expected to in XXXX be a the noted the million. Approximately to its of $XXX million reminder, teens. EBITDA for this revenue contracts, their be is of completion and high would

and range should $XX of full million our amortization and of expected be approximately in Additionally, to Amortization tax the rate million. will $XX approximately our intangibles depreciation expense is $XX XX.X%. be be to now million year

are expenses onetime share $XX weighted approximately million. to million, XX.X We count headquarters. Capital approximately leasehold with including million to Reston fully expenditures the $XX of related between new be and anticipated expect diluted improvements million $XX a of associated average

closing turn remarks. have increased with the I'll John previously flow cash operating And guided that, we over for million to We million back our to call his estimate from the $XXX $XXX to.

John Wasson

Barry. you, Thank

enabled to Also, society. us interest revenues This the EBITDA XX% are in tied margin inclusive impact from prior Of above midpoint rates margin basis from contribute and expected financial We XX point SemanticBits areas in to across that has also XX.X%, on metrics. XX.X%. and to would range ICF of the our is are acquisition. our $X.XX year Most approximately XXXX. of our EPS year-on-year the growth represents attract to in pleased of an revenue like-minded a million guidance I come increase of retain non-GAAP out X/X now to The million have just midpoint, $X.XX positively expecting almost release. is increased are point of work our of to we all full higher at of guidance, at people. revenue which service our adjusted the increase the details that service

prefer We operator, enhancing And firms questions. with to our are profiles open passionate to with about while let's to cultures. the call work that, their similar acquire

Operator

with comes [Operator Joseph Instructions] The first Vafi question Canaccord. from

is line open. now Your

Joseph Vafi

Hey of a a high pipeline that guys. the know, start Or Infrastructure on into is Good this that I pretty of before afternoon. just of Maybe a James. there, is big. kind know And a yet? the John, here; all I IIJA level But heard a I new think bit James. built is Act pipeline title mentioned congratulations pipeline at congrats to that, I you that at that. point? so and

John Wasson

the we're into identified I I But still Joe. specific are think mean, still those pipeline, I more. the opportunities built date think opportunities are we've to and forming identifying

we're I out is certainly note, of opportunities, in still in pickup the here, seen think in federal our quarter. stages opportunities I'll certainly midyear, significant the in of the second I the pipeline five the being passage So quarter in by certainly our say federal the this IIJA. growth for think as driven in second you the sector Certainly, growth the pipeline in And building quite proposal a early that. with budget markets, we've

Joseph Vafi

right -- Medicare I that by Medicaid like, footprint the getting do does sense camp from of where and with your of And questions obviously Or but a then opportunity into of there kind in of is critical secondly, now, then do I to guess your two M&A and the you're in and now different the is, you on strategy sit you out know the big this more IT it And pretty make lot here, kind big a I point, expanding those see adding across more in Got and how clearly just now, more mass, I'd plenty given lot -- into IT a considered have now right? the say, have you now? are? agencies. lot of where in at budgets to markets it. side different DOD of And footprint A now? lot pretty is capability much technologies are you

John Wasson

Sure.

we I the modernization those in and the mean tackle agree, the I certainly I'll to kind market, tremendous order of out that capabilities think So do questions that of portions I need you in arena. source we've in low-code/no-code, open like asked we're we seeing built that answer core opportunity them. of the IT feel market. across the both

is how opportunity to And work need. going XX% domain some expertise and differentiate the exceptional so where would we we're space white client But focus. IT on say acquisition the would between out -- I I -- seeing work can anything our of IT it see federal ourselves really is really in I in the but given have to that we markets, given Joe, think we growth may of drive relationships just that And of more we the between I think the our a and such is we for market in new expertise. need potential what be I capabilities. the into do know, say, and But DOD, in really looking mean, if not you significant It's were to capabilities here -- tuck-in civilian markets on civilian specific focused small on modernization, always working M&A for really domain domain I we portfolio much as expertise white in the And think our we think opportunities. where deep I do IT DOD, we very our client core domain base. space have of our we we're have technology

doesn't we're but primarily quite think remain mean, we focused the there, -- base. think I on on I look I might DOD focused down civilian civilian. That we that I'm sorry, not on client our road mean

Joseph Vafi

sneak I'll just in Barry or maybe then one for And here. two Right.

gross a there. know And Just on lot -- little services operating rate had going at you're revenue, sounds versus then margin expansion might is out And how lot investing wondering margin I I like expansion of growth it which a organic if on federal you the in good. on bidding bit services. balancing, looking There's proposal more a margin have that I'm we've got proposal, engine guys. on Thanks level. in missed bidding

Barry Broadus

for question. Thanks the

that balance think expanding the I BD proposal we've about. with to expansion able we capabilities our engine our are achieving and gross talked margin

we of we won, clients just with a the a a those understanding from bids think pricing, execute I on reflected contracts. and perform have we work that that's bidding have feel good and and very that our we've for how and we good in the particular that perspective,

our we've executing about. good that the growth, I So a to investing those sufficiently margin and includes which engine the think got talked we've contracts expansion between balance proposal on BD in that have activity,

Joseph Vafi

organic And Great. then quarter? federal, Barry? In the

Barry Broadus

Yes.

you -- don't organic were the I the the have with follow double-digit necessary. number if mean think -- up We'll in we I growth federal. I to have in

Joseph Vafi

That’s appreciate good. guys. Much

Operator

comes next Steinke Kevin Research. with Barrington Our question from

Your open. now line is

Kevin Steinke

afternoon Good everyone.

mentioned you contract coming new business. of XX% So wins from year-to-date

what's as it Just that new mix? high we mostly is really level of a that work? business? Should Or modernization think balanced wondering more IT maybe about driving

John Wasson

IT And a robustly, business, now we is business -- think more areas, the that's $XXX a driving scale role growth again, modernization, million areas. going we've growth in quite by IT five those then significant ICF obviously the would driven Public certainly within Certainly, playing there that's of pipeline, million Health areas of revenue. the additional And XX%. the $XXX about that's pipeline. terms and you have areas. the talked than back, think is point I there. in I the each again, Kevin, generally But mean I Well, X modernization to I those

– it's growth growth five -- really the but by five So drivers being drivers. driven

Kevin Steinke

to you the government to move mentioned efforts planning by the accelerated on for the responding Okay, next great. And pandemic. federal to

And of reinvention opportunities beyond you see sizable phases? perhaps moved phase that so, of coming some of and moving recovery the those efforts? kind we've contract out if into think you more do response do So and here

John Wasson

say the ground I proven But CDC would pandemic's Yes. I hesitate I seeing that I think quickly. response. I to mentioned, very the per taken discussion and improve think on some of focus, pandemic. opportunities the about of that will as future steps past, the ICF. as to we're say And matures, we guess beginning be we've to out beginning be the responses for are sizable shift do immediate mean, there longer-term a can could in this. that as of I this, I the potentially clients the talked

And focus to clients that of carefully see so following -- it it pleased really we're can some think that and front. and very on are we help

Kevin Steinke

don't Okay, bit good. if a margin of the And you more? increase missed the elaborate EBITDA mentioned representing push corporate I the that part you it, could in but I out on of planned investments. adjusted guidance know

Barry Broadus

Thanks Yes. Sure. question. the for

smoothly the decided One and acquisitions we integrated run to sure integrations those are very on that of was acquisitions do into the of things made the focus really and that company. the in that we've make

of and we with back those So of that but just the at some actually the push activity some we systems processes and and from are we're new investments in focus off slowing of that, a perspective, wanted engaging activities really the on, looking office down still on kind the that initiatives. spend to that on

of but these is important to so integration the company, So acquisitions. they're

but we're working So planned. rate at not the initially that same on we still just had them,

the in year into up and And more of half this so pick later those continue so to XXXX. we'll

Kevin Steinke

services the just marketing wanted business. And ask about you. lastly, to I commercial thank Okay,

hospitality green still XXXX that return and growth it's business pre-pandemic about long one of shoots in you the a it's you below the operating lastly do And also half As and your longer levels. exceed mentioned perhaps You can pre-pandemic be term? But levels clients. of some eventually with think for term, some think to you that second coming over just business

John Wasson

Sure.

take And view, in it, platform underlies But said, industry-leading there. that it going shoots obviously, think I have sector, business given in I system seen we think think think sector, hospitality require, proprietary and long-term loyalty some product. can the it's I we've and certainly growth, the to rebound to you particularly remains commercial marketing, we -- that green trial. we that the a an the around if certainly the hospitality return as

work, -- to shoots. talked those be we're I business, I want talked as businesses. in verticals. of material with have had so And growth We resided signs. continue as into opportunities are leverage green us that early, allowed market just emphasize, in those we managed commercial government it for I view, grow there. carefully, capabilities we've also not think I And energy do capabilities improvement about, the those pleased marketing we've and Kevin, commercial to assumed have that do those said, skills our we've a on And into challenges guidance in our federal previously, will think to -- positive some service think to work. that And has see but And there as a and longer-term this we've but commercial the pretty year, I

So of benefit other capabilities our in some and a there synergistic of having skills is those markets.

Kevin Steinke

you Thank for Okay, great, that’s very the helpful. taking questions.

Operator

comes Tobey question from Truist. Sommer next with Our

open. now is line Your

Unidentified Analyst

Thanks taking Jasper our for Hey, on Tobey. for good questions. Bibb, afternoon. This is

So ask energy to revenues. wanted about I just

moving And right about to the expecting projects you restart projects talked the those for the maybe more You the to expectations energy some you Are second year. balance in to there. could broadly, your speak of half? over maybe

John Wasson

Yes.

the about in the in mean, half ongoing I remarks, of well, improvement I all, see second in year. as we first talked energy of my I -- I we I an think certainly think think

growth talked least think I mid-single-digit at about, have we there.

think tough I grew had of XX%, comps. some year. we've XX% We in the last first half

given half we see we've improve. second I Energy the sales will And pickup And of business in think the in certainly a pipeline the so the comps and the had. our year

that's there. certainly So outlook the

the the revenue terms guidance I to of we of same. I'm our SemanticBits talking right in our think not right, did a remains I -- but prior projects the And acquisition. movement moving QX, guidance bit revenue. In on service we -- That of mean, is about the a service revenue our guidance to have have changed

up layered obviously, we moves from we growth do then guidance the service SemanticBits growth to the So end XX% service for think XX% pick and to year. expect our we'll And of revenue right on top, we've that anything revenue by taken the year. that's

Unidentified Analyst

The Excellent. lighter was in book-to-bill a the quarter. bit

bottlenecks the of delays the getting something expecting the peers year? months two orders I last talked more, that in improvement cleared. have you're you of in task Is business? And defense-focused fiscal there about federal any in seeing Some or the are guess,

John Wasson

sense our the passage in the remarks, we federal new budget, proposals gave We've and level -- federal out saw it coming the sense I really the of up seen we've -- the activity, new certainly post of bids certainly budget front, my spring, proposal on said as of a that slowed of that in is the And the come given kind what's officers kind award increases out. are out, all those on on us side. contracting new bids, it's civilian contracts the decisions the focused budget and as getting new new the proposals the done the clients, is,

I our is will that, backlog in think view clear QX. that

strongest know, lot there's awaiting proposals QX award. sales As quarter, a usually pent-up and you is of our

into QX. QX, expect to improvement And continue and see expect I significant in would so I think a we that certainly would sales for

the in So second certainly expecting the of we're pickup a half year. here

Unidentified Analyst

some me. passed? was just come Thanks out bill of for climate could you might for was I you that. a hoping on color latest that opportunities this bit provide more Last the recently question of think

John Wasson

Sure.

spans hasn't a and the mean I yet, chickens XX $XXX type security wind, climate want think passed energy-type incentives -- it geothermal, variety billion next that out battery government renewable bill my and spending anyway, energy over -- it energy of tax and programs been week to before clean years. other that programs solar, we I bill of so this has I and think outlines activities. about I and efforts in count in So a And and -- don't for the

And of as I so we distributed efficiency, mitigation, energy, we've broad mean, the a -- think I talked a have about capabilities vehicles, energy electric bit, across adaptation. and quite way

to to of, opportunity kind leveraging there climate we for it's that. provide, resilience. and think I so here, for material specificity me be But will And across us potentially and too far have expertise the energy more early a

more I'm quite return front our that on think -- future. follow we're we sure -- see in and were quite the we'll I And that closely. say pleased to the obviously bill to have

Unidentified Analyst

make That for questions taking guys. sense. the Thanks Yes.

John Wasson

you. Thank

Operator

Instructions] [Operator comes next from question Riddick Marc Sidoti. Our with

is line now open. Your

Marc Riddick

everyone. Hi, good evening

and want what have but a you've Certainly, my bit acquisition the far a maybe you're to active organically. little I been questions what So maybe seeing could been side and maybe key as a about that like for did are, of your to of answered, talent adding touch the you'd areas you remainder well Maybe of on year as touch things. bit on to? as expecting lot you're add the some what of as opportunities, little availability for if expectations

John Wasson

Sure.

level, mean mean the I about year. think organic high I as we need headcount organic expectations I our talked the So high single-digit to it consulting firm, we've And growth services growth. obviously, to for I as have professional support remain growth it's think a that --

range, will X% digit add go try in from we're headcount little We I leverage to And high that to single would existing the a get staff. so our think to up to always we're X.X%. have going have our -- generally, if

And so X.X% it's X%, X.X% X%. to the for our first up in headcount -- the -- I half about year, think of is

And I add headcount. we to so continue think

of As on past, most the -- we've we've terms again, everything The certainly think the that's investing, revenues in front staff. can in high is XX% is our as talked growth significantly and markets. growth we're retain about our about, in we the our the recruiting of I are where recruiting focus markets, doing of talked in to

Marc Riddick

availability account little into as currently are and shipping at the that expectations by particular or there to a the couple of then compared maybe the would than difficult that so, of does were into imagine -- But And Or were? be far your maybe a what the you about of areas that of the expecting account takes I maybe talent. beginning plans also -- where year? commentary what take might of has as quarters some much changed your more any some for Right. pricing it

John Wasson

don't and business mean there. I particularly parts our as market, the where last the think for quarters. change growth of in we've market in I I need. IT generally, in add -- a we and talent been generally modernization to and again, But talent we've expectations say It's the it of has there's that any strong cyber. think plus demand I energy for would areas, able mean, a headcount challenging several No, high climate seen and been types remains I the those

some now. but investing it right is in the -- of environment And highly are challenging recruiting. We competitive and

Marc Riddick

Thank very Great. much. you Okay.

John Wasson

marc. you Thank

Operator

this would at have conference management time. I like turn further closing no to for now back questions We to the remarks.

John Wasson

forward participating and investor for you seeing We today's you. to Thank you look upcoming events. Thank your at appreciate in call. participation,

Operator

gentlemen. Thank you, the ladies and for participating. Thank and ladies concludes This you conference.

You now disconnect. may

ICF International (ICFI) 6 Aug 222022 Q2 Earnings call transcript