Commercial business boosts ICF earnings

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Fairfax-based ICF International Inc. reported that its second-quarter revenue and net income rose by double digits because of its increasing commercial business.

But uncertainty about its federal government business caused the consulting services and technology solutions company to lower its revenue and earnings outlook for the year.

“Our double-digit revenue and earnings performance resulted from strong year-over-year increases in our commercial business,” Chairman and CEO Sudhakar Kesavan said in a statement. “The continued strength of our commercial business and the solid performance of our state and local government work offset the headwinds in our U.S. federal government business.”

For the second quarter, revenue totaled $239.6 million, a 12.3 percent increase over $213.4 million reported in the same quarter last year. Operating income increased 16.3 percent from $15.5 million to $18.1 million.

Second-quarter net income was $10.3 million, or 52 cents per diluted share, a 15.4 percent increase over $9 million, or 45 cents per diluted share, earned in the same quarter in 2011.

For the first six months of 2012, revenue totaled $467.3 million, up 14.5 percent from $408.1 million in first half of 2011. Operating income increased 18.5 percent to $34.3 million, net income was up 15.5 percent to $19.3 million, and earnings per diluted share were 96 cents compared with 84 cents.

Commercial business revenues increased 34.5 percent in the second quarter of 2012 to $64.1 million and represented 26.7 percent of total revenue, up from 22.3 percent in last year’s second quarter. The growth within the commercial business was driven by the acquisition of Ironworks Consulting LLC and the energy efficiency business, which increased 23 percent over the prior year and accounted for 32 percent of total commercial revenues.

By contrast, U.S. federal government revenues were virtually flat,  increasing only 0.60 percent in the 2012 second quarter to $142.3 million.

“Given the uncertainty in the federal market, we are lowering our outlook for full year 2012 revenues and earnings,” Kesavan said. “We expect full year 2012 revenues to range from $930 million to $960 million, which represents year-on-year growth of 12.4 percent at the midpoint, and diluted earnings per share to range from $1.90 to $2, or 11.4 percent growth at the midpoint.”

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