ICF Reports Fourth Quarter and Full Year 2019 Results
FAIRFAX, Va., Feb. 27, 2020 /PRNewswire/ --
Fourth Quarter Highlights:
-- Total Revenue Was $397 Million -- Diluted EPS Was $1.01, Inclusive of $0.09 in Special Charges(1) -- Non-GAAP EPS(1) Was $1.18 -- Adjusted EBITDA Margin on Service Revenue(1) Was 14.9 Percent -- Contract Awards of $353 Million
Full Year Highlights:
-- Total Revenue Was $1.48 Billion -- Diluted EPS Was $3.59, Inclusive of $0.24 in Special Charges -- Non-GAAP EPS Was $4.15 -- Adjusted EBITDA Margin on Service Revenue Was 13.4 Percent -- Contract Awards of $1.5 Billion, Representing a Book-to-Bill Ratio of 1.03 -- Operating Cash Flow of $91 Million
Organic and Acquisition Growth Expected to Drive Double-Digit Increases in 2020 Revenue, EBITDA and Operating Cash Flow
Announces New Executive Leadership Roles
ICF (NASDAQ: ICFI), a global consulting and digital services provider, reported results for the fourth quarter and full year ended December 31, 2019.
"Growth catalysts across our client set resulted in a revenue increase of 11 percent for full year 2019, representing positive year-on-year comparisons in each of our client categories," said John Wasson, president and chief executive officer. Revenue from government clients increased at a double-digit rate, led by considerable growth in state and local government and a significant pickup in federal government work in the second half of the year. Revenue from commercial clients, which accounted for approximately 35 percent of 2019 revenue, advanced by 6 percent year-over-year, driven by growth in marketing services and energy markets, which together comprised 93 percent of commercial revenue.
"Our business mix, higher utilization and a lower tax rate led to earnings per share increasing at a faster rate than revenue for full year 2019, and we ended the year with operating cash flow of $91 million, 22 percent ahead of 2018 levels.
"Fourth quarter earnings included special charges, the majority of which represented M&A expenses related to our acquisition of ITG, which closed at the end of January. This transaction has strengthened ICF's position in the federal IT modernization arena, and we see significant revenue synergies on the horizon by combining ICF's domain expertise and contract vehicles with ITG's best-in-class qualifications and leading platform expertise.
"ICF was awarded over $1.5 billion in contract awards in 2019, of which over 70 percent represented new business, and our business development pipeline was a robust $6.5 billion at year end, supporting our expectations for significant growth in 2020," Mr. Wasson noted.
(1) Non-GAAP EPS, Service Revenue, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin on Service Revenue are non-GAAP measurements. A reconciliation of all non-GAAP measurements to the most applicable GAAP number is set forth below. Special charges are items that were included within our statement of operations but are not indicative of ongoing performance and have been presented net of applicable U.S. GAAP taxes. The presentation of non-GAAP measurements may not be comparable to other similarly titled measures used by other companies.
Fourth Quarter 2019 Results
Fourth quarter 2019 total revenue was $396.6 million, representing 5.0 percent growth over the $377.9 million reported in the fourth quarter of 2018. Service revenue(1) increased 5.1 percent year-over-year to $251.9 million, from $239.6 million. Net income amounted to $19.4 million in the 2019 fourth quarter, or $1.01 per diluted share, inclusive of $0.09 of tax-effected special charges primarily tied to M&A costs. In the 2018 fourth quarter, net income was $18.7 million, or $0.97 per diluted share, inclusive of $0.09 of tax-effected special charges.
Non-GAAP EPS was $1.18 per share, up from $1.17 per share in 2018. EBITDA(1) was $34.9 million compared to $36.9 million reported in the fourth quarter of 2018. Adjusted EBITDA(1) was $37.4 million compared to $39.4 million reported in the 2018 fourth quarter. Fourth quarter 2019 adjusted EBITDA margin on service revenue was 14.9 percent compared to 16.5 percent in the 2018 fourth quarter which was an exceptional quarter.
Full Year 2019 Results
For 2019, total revenue amounted to $1.48 billion, representing 10.5 percent growth over the $1.34 billion reported for full year 2018. Service revenue increased 8.3 percent year-over-year to $1.0 billion, from $925.8 million in 2018. Full year 2019 net income amounted to $68.9 million, or $3.59 per diluted share, inclusive of $0.24 of special charges. This compares to net income of $61.4 million, or $3.18 per diluted share for last year, inclusive of $0.17 of special charges.
Non-GAAP EPS increased 11.3 percent year-over-year to $4.15 per share from $3.73 per share. EBITDA was $129.6 million, up 8.5 percent from $119.5 million reported in 2018. Adjusted EBITDA was $134.8 million, an 8.9 percent increase over $123.7 million in 2018. The 2019 adjusted EBITDA margin on service revenue was 13.4 percent.
Backlog and New Business Awards
Total backlog was $2.4 billion at the end of the fourth quarter of 2019. Funded backlog was $1.3 billion, or approximately 53 percent of the total backlog. The total value of contracts awarded in the 2019 fourth quarter was $353.3 million. For full year 2019, contract awards were $1.52 billion, representing a book-to-bill ratio of 1.03.
Government Revenue Fourth Quarter 2019 Highlights
Revenue from government clients was $244.3 million, up 7.6 percent year-over-year.
-- U.S. federal government revenue was $139.7 million, representing a 5.5 percent year-over-year increase. Federal government revenue accounted for 35 percent of total revenue in both 2019 and 2018 fourth quarters. -- U.S. state and local government revenue increased by 10.9 percent year-on-year to $69.0 million. State and local accounted for 18 percent of total revenue, compared to 16 percent of total revenue in the 2018 fourth quarter. -- International government revenue increased 10.0 percent year-on-year to $35.6 million and accounted for 9 percent of total revenue in both the 2019 and 2018 fourth quarters.
Key Government Contracts Awarded in the Fourth Quarter
ICF was awarded more than 75 U.S. federal contracts and task orders and more than 200 additional contracts from U.S. state and local and international governments with an aggregate value of $155.2 million. Notable awards won in the fourth quarter included:
Disaster management:
-- A contract to support the North Carolina Office of Recovery and Resiliency to provide implementation, program management and strategic communications services for the state's Community Development Block Grant (CDBG)-funded disaster recovery buyout program. -- A contract with a midwestern U.S. state to provide support for its disaster management CDBG mitigation planning. Subsequent to the end of the quarter, we were awarded a small contract with the city of Columbia, SC, to develop its CDBG Mitigation Action Plan.
IT modernization and digital engagement:
-- A subcontract to support the U.S. Department of Education by providing software and system testing, requirements gathering and statistical analysis for the Free Application for Federal Student Aid (FAFSA) Application and Eligibility Determination System. -- A recompete contract with the U.S. Department of Health and Human Services (HHS) Substance Abuse and Mental Health Services Administration (SAMHSA) to provide enterprise-wide content and technical web support related to the enhancement and maintenance of the SAMHSA.gov website and other SAMHSA-related microsites, subsites and subdomains. -- A recompete contract with the HHS National Institutes of Health to provide agile software development support services for the Office of Extramural Research enterprise grant management systems.
Public health and survey research:
-- A follow-on agreement with U.S. Agency for International Development and the President's Malaria Initiative to strengthen country systems across sub-Saharan Africa to generate high quality health information used to support actions that address malaria. -- Two sub-agreements to support questionnaire design, programming of mobile devices for data collectors and data analysis for national level HIV surveys in Zambia and Botswana funded by the Centers for Disease Control and Prevention (CDC). -- Two recompete contracts with the Maryland Department of Health and a southwestern U.S. state department of health services to administer the Behavioral Risk Factor Surveillance System (BRFSS) survey that collects data from state residents about their health-related behaviors, chronic health conditions and use of preventive services.
Communications and outreach:
-- A new contract with the CDC National Diabetes Prevention Program (DPP) to provide marketing and communication training, technical assistance, materials and evaluation support to 1815/1817 grantees to increase enrollment and retention in the National DPP lifestyle change program and Diabetes Self-Management Education.
Environmental planning:
-- A master services agreement with a western U.S. water authority to provide environmental planning and implementation support.
Commercial Revenue Fourth Quarter 2019 Highlights
-- Commercial revenue was $152.4 million, up 1.0 percent from the $150.9 million reported in last year's fourth quarter. Commercial revenue accounted for 38 percent of total revenue compared to 40 percent of total revenue in the 2018 fourth quarter. -- Energy markets, which include energy efficiency programs, represented 39 percent of commercial revenue. Marketing services accounted for 54 percent of commercial revenue.
Key Commercial Contracts Awarded in the Fourth Quarter 2019
Commercial contract awards were $198.1 million in the fourth quarter of 2019. ICF was awarded more than 700 commercial projects globally during the third quarter including:
In Energy Markets:
-- A contract with a midwestern U.S. utility to provide program implementation services for its residential energy efficiency programs. -- Multiple task orders with a south-central U.S. utility to provide program implementation and energy IT services for its portfolio of energy efficiency programs. -- A contract extension with a northwestern U.S. state energy organization to provide energy efficiency implementation services for its existing buildings program. -- Four task orders with a southwestern U.S. utility to support turnkey customer programs related to energy efficiency and electric vehicles as part of the utility's long-term sustainability plan. -- Two subcontract amendments with a midwestern U.S. utility to supports its residential energy efficiency programs. -- Multiple task orders with a renewable energy company to provide environment and planning services. -- A master services agreement and task order with a North American energy efficiency program to provide commercial and industrial retrofit services.
In Marketing Services:
-- Multiple task orders with a U.S. health insurer to provide a variety of marketing services for its programs. -- Extensions of our retainer with a U.S. rail transportation system to continue providing loyalty services. -- A retainer with a hospitality website to provide public relations and social media services. -- A task order with a global hospitality company to continue providing loyalty services. -- Multiple task orders with a financial services provider to deliver end-to-end communications programs across both employee and customer audiences.
Recent Corporate Developments
On January 31, 2020, ICF announced that it had closed its acquisition of ITG, one of the leading and fastest growing providers of IT modernization and cloud-based platform services to the U.S. federal government. This transaction significantly expands ICF's IT modernization services and adds best-in-class IT platform expertise and partnerships.
In a separate release today, ICF announced new executive leadership roles designed to ensure and support ICF's continued growth. Notably, James Morgan, chief financial officer (CFO), will assume the newly created role of executive vice president and chief of business operations. Bettina Welsh, senior vice president for finance, will become CFO. These changes are effective February 29(th).
Dividend Declaration
On February 27, 2020, ICF declared a quarterly cash dividend of $0.14 per share, payable on April 13, 2020 to shareholders of record on March 27, 2020.
2019 Recognitions
ICF received several important recognitions in 2019:
-- For the fourth and second straight years, respectively, Forbes included ICF on two of its coveted annual lists: "America's Best Management Consulting Firms" and "America's Best Midsize Employers." -- ICF was named a "Fast Moving" brand by the Government Business Council in its 2019 Leading Brands in Government study. -- CDP (formerly the Climate Disclosure Project) recognized ICF for climate leadership by scoring our 2019 annual climate report as A-. -- ICF Next was named a "Strong Performer" among loyalty service providers by Forrester Research in The Forrester Wave(TM): Loyalty Service Providers, Q3 2019 and was recognized as a "Leader" in another loyalty report focused on technology platforms, The Forrester Wave(TM): Loyalty Technology Platforms, Q2 2019. -- ICF Next was named the Holmes Report's 2019 Digital Agency of the Year.
Summary and Outlook
"2019 was a record year for ICF, and we look forward to continued growth ahead in 2020. In government markets, our federal government business development pipeline was at record levels at 2019 year-end, and our acquisition of ITG, which closed in late January 2020, provides further visibility and additional growth opportunities. We are pleased with recent wins to provide disaster management services in new geographies and we continue to expect this area to be a long-term growth driver for ICF. In commercial markets, we have a robust energy efficiency pipeline and are engaged in several pilot programs that position ICF at the leading edge of distributed energy consulting work for utilities. Also, we continue to leverage our commercial marketing services, loyalty platforms and engagement capabilities across our client set.
"Our guidance for 2020 is based on our current backlog and portfolio of business and does not include any additional material contract wins or expansions in the disaster recovery arena, nor any material benefit from new disaster recovery-related mitigation contract awards or energy efficiency contract wins in California, all areas that represent long-term growth opportunities for ICF," Mr. Wasson noted.
For full year 2020, ICF expects revenue of $1.60 billion to $1.65 billion and EBITDA of $145.0 million to $155.0 million, representing year-on-year growth of 10 percent and 16 percent, respectively, at the midpoints. GAAP earnings per diluted share is expected to range from $3.45 to $3.75, exclusive of special charges. Non-GAAP diluted EPS is expected to range from $4.00 to $4.30. EPS guidance includes more than $0.30 per share in additional interest expense related to the ITG acquisition, as well as a higher tax rate. Per share guidance is based on a weighted average number of shares outstanding of 19.2 million. Operating cash flow is expected to be approximately $120 million, substantially ahead of 2019 levels.
Concluding, Mr. Wasson said, "The new executive leadership roles we announced today will ensure that ICF remains at the leading edge in our client work, while utilizing best practices across the company. Our growth profile and substantial bench strength enable us to leverage their leadership skills to strengthen areas that are critical to our continued success."
About ICF
ICF (NASDAQ:ICFI) is a global consulting services company with over 7,000 full- and part-time employees, but we are not your typical consultants. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more at icf.com.
Caution Concerning Forward-looking Statements
Statements that are not historical facts and involve known and unknown risks and uncertainties are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts with U.S. federal government agencies; and our ability to acquire and successfully integrate businesses. These and other factors that could cause our actual results to differ from those indicated in forward-looking statements are included in the "Risk Factors" section of our securities filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and we specifically disclaim any obligation to update these statements in the future.
ICF International, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Twelve months ended December 31, December 31, (in thousands, except per share amounts) 2019 2018 2019 2018 Revenue $396,636 $377,910 $1,478,525 $1,337,973 Direct costs 264,027 249,057 953,187 857,508 Operating costs and expenses: Indirect and selling expenses 97,664 91,958 395,763 360,987 Depreciation and amortization 4,707 4,439 20,099 17,163 Amortization of intangible assets 1,940 3,013 8,083 10,043 Total operating costs and expenses 104,311 99,410 423,945 388,193 Operating income 28,298 29,443 101,393 92,272 Interest expense (2,508) (2,637) (10,719) (8,710) Other expense (134) (170) (501) (735) Income before income taxes 25,656 26,636 90,173 82,827 Provision for income taxes 6,277 7,941 21,235 21,427 Net income $19,379 $18,695 $68,938 $61,400 Earnings per Share: Basic $1.03 $0.99 $3.66 $3.27 Diluted $1.01 $0.97 $3.59 $3.18 Weighted-average Shares: Basic 18,835 18,838 18,816 18,797 Diluted 19,234 19,333 19,224 19,335 Cash dividends declared per common share $0.14 $0.14 $0.56 $0.56 Other comprehensive income (loss), net of tax 6,258 (4,407) 407 (6,683) Comprehensive income, net of tax $25,637 $14,288 $69,345 $54,717
ICF International, Inc. and Subsidiaries Reconciliation of Non-GAAP financial measures(2) (Unaudited) Three Months Ended Twelve months ended December 31, December 31, (in thousands, except per share amounts) 2019 2018 2019 2018 Reconciliation of Service Revenue --- Revenue $396,636 $377,910 $1,478,525 $1,337,973 Subcontractor and other direct costs (3) (144,728) (138,296) (475,717) (412,216) Service revenue $251,908 $239,614 $1,002,808 $925,757 Reconciliation of EBITDA and Adjusted EBITDA --- Net income $19,379 $18,695 $68,938 $61,400 Other expense 134 170 501 735 Interest expense 2,508 2,637 10,719 8,710 Provision for income taxes 6,277 7,941 21,235 21,427 Depreciation and amortization 6,647 7,452 28,182 27,206 EBITDA 34,945 36,895 129,575 119,478 Adjustment related to impairment of intangible assets (4) 1,728 Special charges related to acquisitions (5) 1,574 748 1,771 1,361 Special charges related to severance for staff realignment (6) 453 559 1,774 1,554 Special charges related to facilities consolidations, office closures, and our future corporate headquarters (7) 454 717 115 Adjustment related to bad debt reserve (8) 1,240 (782) 1,240 Total special charges 2,481 2,547 5,208 4,270 Adjusted EBITDA $37,426 $39,442 $134,783 $123,748 EBITDA Margin Percent on Revenue (9) 8.8% 9.8% 8.8% 8.9% EBITDA Margin Percent on Service Revenue (9) 13.9% 15.4% 12.9% 12.9% Adjusted EBITDA Margin Percent on Revenue (9) 9.4% 10.4% 9.1% 9.2% Adjusted EBITDA Margin Percent on Service Revenue (9) 14.9% 16.5% 13.4% 13.4% Reconciliation of Non-GAAP Diluted EPS --- Diluted EPS $1.01 $0.97 $3.59 $3.18 Adjustment related to impairment of intangible assets 0.09 Special charges related to acquisitions 0.08 0.04 0.10 0.07 Special charges related to severance for staff realignment 0.02 0.03 0.09 0.08 Special charges related to facility consolidations, office closures, and our future corporate headquarters 0.02 0.08 0.01 Adjustment related to bad debt reserve 0.06 (0.04) 0.06 Amortization of intangibles 0.10 0.16 0.42 0.52 Income tax effects on amortization, special charges, and adjustments (10) (0.05) (0.09) (0.18) (0.19) Non-GAAP EPS $1.18 $1.17 $4.15 $3.73 (2) These tables provide reconciliations of non-GAAP financial measures to the most applicable GAAP numbers. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Other companies may define similarly titled non-GAAP measures differently and, accordingly, care should be exercised in understanding how we define these measures. (3) Subcontractor and Other Direct Costs is Direct Costs excluding Direct Labor and Fringe Costs. (4) Adjustment related to impairment of intangible assets: We recognized impairment expense of $1.7 million in the second quarter of 2019 related to intangible assets associated with a historical business acquisition. (5) Special charges related to acquisitions, consisting primarily of consultants and other outside party costs, and an increase in the contingent consideration liability from a previous acquisition. (6) Special charges related to severance for staff realignment: These costs are mainly due to involuntary employee termination benefits for our officers and groups of employees who have been notified that they will be terminated as part of a consolidation or reorganization. (7) Special charges related to facility consolidations, office closures, and our future corporate headquarters: These costs are exit costs associated with terminated leases or full office closures. The exit costs include charges incurred under a contractual obligation that existed as of the date of the accrual and for which we will continue to pay until the contractual obligation is satisfied but with no economic benefit to us. Additionally, we incurred one-time charges with respect to the execution of a new lease agreement for our corporate headquarters. (8) Adjustment related to bad debt reserve: During 2018, we established a bad debt reserve for amounts due from a utility client that had filed for bankruptcy and included the reserve as an adjustment due to its relative size. The adjustment in 2019 reflects a favorable revision of our prior estimate of collectability based on a third party acquiring the receivables. (9) EBITDA Margin Percent and Adjusted EBITDA Margin Percent were calculated by dividing the non-GAAP measure by the corresponding revenue. (10) Income tax effects were calculated using an effective U.S. GAAP tax rate of 24.5% and 29.8% for the three months ended December 31, 2019 and 2018, respectively, and 23.6% and 25.9% for the years ended December 31, 2019 and 2018, respectively.
ICF International, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts) December 31, 2019 December 31, 2018 ASSETS Current Assets: Cash and cash equivalents $6,482 $11,694 Contract receivables, net 261,176 230,966 Contract assets 142,337 126,688 Prepaid expenses and other assets 17,402 16,253 Income tax receivable 7,320 6,505 Total Current Assets 434,717 392,106 Property and Equipment, net 58,237 48,105 Other Assets: Restricted cash - non-current 1,292 Goodwill 719,934 715,644 Other intangible assets, net 25,829 35,494 Operating lease - right-of-use assets 133,965 Other assets 24,535 21,221 Total Assets $1,397,217 $1,213,862 LIABILITIES and STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $134,578 $102,599 Contract liabilities 37,413 33,494 Operating lease liabilities - current 32,500 Accrued salaries and benefits 52,130 44,103 Accrued subcontractors and other direct costs 45,619 58,791 Accrued expenses and other current liabilities 35,742 39,072 Total Current Liabilities 337,982 278,059 Long-term Liabilities: Long-term debt 165,444 200,424 Operating lease liabilities - non-current 119,250 Deferred rent 13,938 Deferred income taxes 37,621 40,165 Other long-term liabilities 22,369 20,859 Total Liabilities 682,666 553,445 Contingencies Stockholders' Equity: Preferred stock, par value $.001; 5,000,000 shares authorized; none issued Common stock, $.001 par value; 70,000,000 shares authorized; 22,846,374 and 22,445,576 shares issued; and 18,867,555 and 18,817,495 shares outstanding at December 31, 2019 and December 31, 2018, respectively 23 22 Additional paid-in capital 346,795 326,208 Retained earnings 544,840 486,442 Treasury stock, 3,978,819 and 3,628,081 shares at December 31, 2019 and 2018, respectively (164,963) (139,704) Accumulated other comprehensive loss (12,144) (12,551) Total Stockholders' Equity 714,551 660,417 Total Liabilities and Stockholders' Equity $1,397,217 $1,213,862
ICF International, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Years ended December 31, (in thousands) 2019 2018 Cash Flows from Operating Activities Net income $68,938 $61,400 Adjustments to reconcile net income to net cash provided by operating activities: Bad debt expense 624 2,480 Deferred income taxes (123) 5,100 Non-cash equity compensation 15,818 11,506 Depreciation and amortization 28,182 27,206 Deferred rent (1,247) 523 Facilities consolidation reserve (274) (260) Remeasurement of contingent acquisition liability 505 Amortization of debt issuance costs 507 510 Impairment of long-lived assets 1,728 Other adjustments, net 181 449 Changes in operating assets and liabilities, net of the effect of acquisitions: Net contract assets and liabilities (11,963) (14,148) Contract receivables (31,300) (60,096) Prepaid expenses and other assets 1,997 (6,650) Accounts payable 31,949 28,309 Accrued salaries and benefits 8,012 (2,159) Accrued subcontractors and other direct costs (12,293) 10,762 Accrued expenses and other current liabilities (4,951) 11,120 Income tax receivable and payable (4,489) (2,063) Other liabilities 144 176 Net Cash Provided by Operating Activities 91,440 74,670 Cash Flows from Investing Activities Capital expenditures for property and equipment and capitalized software (26,901) (21,812) Payments for business acquisitions, net of cash received (3,569) (34,575) Net Cash Used in Investing Activities (30,470) (56,387) Cash Flows from Financing Activities Advances from working capital facilities 686,830 573,991 Payments on working capital facilities (721,809) (579,817) Payments on capital expenditure obligations (1,621) (3,726) Debt issue costs (21) Proceeds from exercise of options 2,914 5,842 Dividends paid (10,540) (7,915) Net payments for stockholder issuances and buybacks (23,414) (17,125) Net Cash Used in Financing Activities (67,640) (28,771) Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 166 (792) Decrease in Cash, Cash Equivalents, and Restricted Cash (6,504) (11,280) Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 12,986 24,266 Cash, Cash Equivalents, and Restricted Cash, End of Period $6,482 $12,986 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $10,424 $9,893 Income taxes $26,595 $14,870 Non-cash investing and financing transactions: Deferred and contingent consideration arising from businesses acquired $ - $8,391 Capital expenditure obligations $ - $6,121
ICF International, Inc. and Subsidiaries Supplemental Schedule(11)(12) Revenue by client markets Three Months Ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Energy, environment, and infrastructure 44% 42% 45% 42% Health, education, and social programs 40% 41% 37% 40% Safety and security 8% 8% 8% 8% Consumer and financial services 8% 9% 10% 10% Total 100% 100% 100% 100% Revenue by client type Three Months Ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 U.S. federal government 35% 35% 38% 41% U.S. state and local government 18% 16% 19% 14% International government 9% 9% 8% 9% Government 62% 60% 65% 64% Commercial 38% 40% 35% 36% Total 100% 100% 100% 100% Revenue by contract mix Three Months Ended Twelve months ended December 31, December 31, 2019 2018 2019 2018 Time-and-materials 49% 48% 48% 44% Fixed-price 37% 38% 38% 39% Cost-based 14% 14% 14% 17% Total 100% 100% 100% 100% (11) As is shown in the supplemental schedule, we track revenue by key metrics that provide useful information about the nature of our operations. Client markets provide insight into the breadth of our expertise. Client type is an indicator of the diversity of our client base. Revenue by contract mix provides insight in terms of the degree of performance risk that we have assumed. (12) Certain immaterial revenue percentages in the prior year have been reclassified due to minor adjustments and reclassification within contract mix.
Investor Contacts:
Lynn Morgen, ADVISIRY PARTNERS, lynn.morgen@advisiry.com +1.212.750.5800
David Gold, ADVISIRY PARTNERS, david.gold@advisiry.com +1.212.750.5800
Company Information Contact:
Lauren Dyke, ICF, lauren.dyke@ICF.com +1.571.373.5577
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