ICF International (ICFI) Chairman and CEO Sudhakar Keshavan presented Wednesday morning at the Cowen & Co. 35th Annual Aerospace/Defense & Transportation Conference at the InterContinental New York Barclay in New York City.
Kesavan began with a prepared statement explaining the activities of ICF International. He emphasized that the company is a leading provider of advisory and program management services.
The company is involved in three major sectors. The health, social programs and consumer/financial sector accounts for approximately 48% of the business. The other two areas are energy, environment and infrastructure, and public safety and defense. The portfolio is highly diversified, with no single contract accounting for more than just under 4% of total revenue.
For growth strategy, the company is focused on leveraging advisory work into full lifecycle solutions. It is also looking to expand the commercial business, replicate the business in wider geographies and pursue strategic acquisitions. Areas where ICF believes it can expand its commercial business include energy efficiency programs, aviation, energy infrastructure, digital interactive and commercial health care.
The company has experienced steady growth over the last several years. It had 8% CAGR in revenue over the last three years and 13% CAGR in EPS.
According to 2013 guidance, ICF had $65 million in operating cash flow, $95.5 million in working capital and long term debt of $64.1 million. It expects full year revenue of $945 million to $960 million and diluted earnings per share of between $1.95 and $2.00.
Kesavan noted that the company has a diverse portfolio compared to competitors, with little reliance on a single industry, customer or project.
According to Kesavan, ICF is currently getting $1 of advice for $3 to $3 of implementation. He believes they can raise that to $1 advice for $10 of implementation.
ICF plans to continue to deploy capital to buy back stock. Kesavan said the company is not looking at changing that philosophy.
The company is happy with the verticals it is currently operating, and is not looking for new verticals. It is looking at expanding those verticals geographically, but not looking to get into new areas.
The win rate for ICF, according to Kesavan, is about 90%.
To hear a replay of the presentation, click here.
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