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ICF International Inc. Reports Operating Results (10-Q)

May 06, 2010 | About:
10qk

10qk

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ICF International Inc. (ICFI) filed Quarterly Report for the period ended 2010-03-31.

Icf International Inc. has a market cap of $446.1 million; its shares were traded at around $23.13 with a P/E ratio of 16.3 and P/S ratio of 0.7. ICFI is in the portfolios of RS Investment Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Direct costs. Direct costs for the three months ended March 31, 2010, were $107.6 million, or 61.7% of revenue, compared to $99.2 million, or 62.9% of revenue, for the three months ended March 31, 2009. The increase in direct costs was primarily due to the direct costs associated with the operations of Macro and JASI, acquired in 2009, whose results are included in the operating results for the three months ended March 31, 2010, but are not included in the operating results for the three months ended March 31, 2009, and an increase in direct costs associated with growth in other contracts, primarily offset by the effect of the conclusion of The Road Home contract in June 2009.

Indirect and selling expenses. Indirect and selling expenses for the three months ended March 31, 2010, were $51.0 million, or 29.2% of revenue, compared to $45.3 million, or 28.6% of revenue for the three months ended March 31, 2009. The increase in indirect and selling expenses was due principally to the indirect costs associated with the operations of Macro and JASI, acquired in 2009, whose results are included in the operating results for the three months ended March 31, 2010, but are not included in the operating results for the three months ended March 31, 2009.

Depreciation and amortization. Depreciation and amortization for the three months ended March 31, 2010, was $2.7 million, or 1.5% of revenue, compared to $1.6 million, or 1.0% of revenue for the three months ended March 31, 2009. This 71.1% increase in depreciation and amortization resulted primarily from capital expenditures made after March 31, 2009, and depreciation related to assets from acquired businesses.

Amortization of intangible assets. Amortization of intangible assets for the three months ended March 31, 2010, was $3.1 million, or 1.8% of revenue, compared to $1.7 million, or 1.1% of revenue for the three months ended March 31, 2009. The increase in amortization expense was primarily due to the amortization of intangibles related to the 2009 acquisitions, partially offset by a decrease in amortization expense related to other acquisitions.

Earnings from Operations. For the three months ended March 31, 2010, earnings from operations were $10.1 million, or 5.8% of revenue, compared to $10.0 million, or 6.4% of revenue for the three months ended March 31, 2009. Earnings from operations as a percentage of revenue decreased primarily due to increased depreciation and amortization expense. Earnings from operations for the three months ended March 31, 2010, also reflect unusual severance, resulting in approximately $0.6 million of additional pre-tax expenses.

Interest expense. For the three months ended March 31, 2010, interest expense was $1.0 million, compared to $0.7 million for the three months ended March 31, 2009. The increase was due primarily to a higher average debt balance during the first quarter 2010 as compared to the average debt balance during the first quarter of 2009.

Read the The complete Report

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10qk
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