ICF International (ICFI) 28 Feb 232022 Q4 Earnings call transcript

Welcome to the Fourth Quarter and Full Year 2022 ICF Earnings Conference Call. My name is Michelle, and I will be your operator for today's call. [Operator Instructions].

I will now turn the call over to Lynn Morgen of Advisiry Partners. Lynn, you may begin.

operator. you, Thank and ICF's everyone, for us joining Good quarter thank and review fourth performance. full to afternoon, you year XXXX today John are Barry from and us and Broadus, Wasson, CEO; CFO. With Chair ICF

James is Officer. Chief Joining them Morgan, Operating

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

In addition, any update Please the information some but presented anticipate our We that to on our future We today, specifically point, disclaim in developments elect do that consider based the light. to our statements may, change. this are will at forward-looking as to today. call views made so. of cause obligation statements during views

turn to year XXXX call now full I over John? and John ICF's Wasson, discuss quarter performance. will the to fourth CEO,

to Lynn, today all all ICF's discuss I'd the key outlook quarter XXXX, are key to to XXXX. you, There and outstanding X fourth across which year an our takeaways results like finish for was thank year our for and participating a was and record fourth you XXXX company quarter Thank full review for financial metrics. highlight.

clients. XX% and of the that year-on-year for was markets First, for X quarter X the growth service across which up federal revenues of from -- the organic in our strong impact growth reflected key government benefited acquisitions our increases revenue in XXXX, XX.X% our double-digit aggregate

margin in to for achieved adjusted EBITDA of fourth XX.X% and from the year, expansion posting Second, quarter XXXX. the service margin for we XX.X% XX.X% substantial up the an revenue

capital supports $X.XX, resulted operating had margin non-GAAP a X.XX. flow, expansion for and year, revenue guidance of our which our and strategic to and large we fourth our accomplishments the made fifth, book-to-bill recognized robust in success. Fourth, and priorities both $X.XX growth cash part in Awards and GAAP ratio decisions since allocation XX-month the and at XXXX ICF for respectively, midpoint. we due our Contract that our which double-digit quarter in strategy improved Record are markets we've had in Third, we investments XXXX of and already and anticipated EPS then growth, to client These full which expand outlined in accelerated experience capabilities spending the the

and XX% environment have disaster management, grown revenues combination infrastructure These the of markets, services and technology, namely Since XXXX. capture climate years accounted at and utility end for service modernization, public revenue markets revenue time, over these health, synergies. from consulting the of that IT acquisitions the the through past approximately and of investments of X sizable initial in X of completion a organic considerably people our

As approximately of a increase result, year to revenue and we expect service full for this these XXXX, high-growth exited represented as XX% XXXX. we our markets

reduction cost growth, support for service at we'll have ICF, be is finest approximately margins to ratio debt, anticipates we million we in which In as year-end. repay after the of various service XXXX on growth. a increased down paid fourth XXXX, $XXX margin, the XX.X% driving up, adjusted margin revenue these revenue XX.X% flow to from taken have expanded used with built investments in debt, levered to bringing line substantially our debt. in together strong quarter Adjusted XX% we XXXX, leverage have past, actions. how cash to X.XX in of we've our growth, addition The have with investments guidance our in EBITDA to inclusive and In on XXXX future

results. impact of the our financial we able mitigate Additionally, to interest on were higher expense

facility XXXX lower for and the and to both like year effective tax year-on-year fourth growth. the midpoint guidance report of non-GAAP in offsets quarter costs, EPS full enabled and expected, non-GAAP strategies substantial administration X.X% to efficiencies of growth us As XXXX points EPS our

Looking from in client Revenues there clients of government highlights across plus SemanticBits from several Creative the organic quarter, worth noting. fourth increased XX.X% the are federal growth XX.X% categories, our and comprised year-on-year our contributions acquisitions.

IT health, arena, areas in to our of strong public show focus modernization and growth. key two continue federal of the

order One with Health contract expertise and Cancer experience demonstrates plus the supporting success client. solutions fourth the Institute a of leading-edge million $XXX quarter awards of in notable National the Center combining health most technology our that was new extensive the domain National of deep task

fiscal agency the Both health our is appropriations Prevention, Health, significant from $X Mental public fund. for positioned, and the Further, investments and the IT year and Food for modernization Drug in modernization IT Medicaid well additional work included Control Families in additional client, Department the is and Centers Substance National and the and benefit level Centers increased Medicare Abuse to ICF the where also discretionary technology will largest Services and to the Administration administration, Institutes Services the 'XX and modernization and the as notably Human Children Disease for going Services, Health billion Administration. funding Omnibus Health XXXX of and our funding the appropriations agencies of for

the to provide the our which to IRA, benefit will federal our projects. quarter, and from governments multiyear later in with on disaster revenues growth increased state of services in capitalize the credentials from ICF energy, and long-standing X% the in and growth appropriations, fourth both local XXXX management infrastructure. and environmental IIJA in In clean government Revenues reflecting addition year-on-year infrastructure climate support opportunities

more our in grants were we CDBG funding year, market in $X.X leader disbursed issuing teams billion and the than homeowners. Puerto Rico in to the During FEMA

competitive. won award and continuing positioned household of As I in believe [island] a procurements we we are XXXX, tracking we're quarter, recovery continue a and mentioned ICF last support to the on to million that where well the $XX.X number

demand Texas, closed in We year. active we which in services last Blanton utility efficiency, increased position XX% of clients from from reflecting for services by flexible programs. energy the commercial in energy robust September all very substantial also environmental the management and growth been Revenues in acquisition, clients there enhanced fourth distributed our energy We're load across quarter, and saw electrification, services. has

related come and IRA advisory for Additionally, remains increase the clean energy demand this associated significant later to strong once energy services the guidance incentives renewables our and year. rules will and with out

business completion project in pound. passive and fourth our the early revenues to the were Revenue impacted the by and short-term comparisons British primarily the with in euro international translation of in XXXX the related currency government quarter significant

development expect mid-single-digit growth us have XXXX. in client to to business in pipeline, leading an continued this have We win contracts multiyear and active category

and and categories, renewable Our climate, uniquely all infrastructure have positive environmental transmission, experience electric value The policy innovative across number IIJA electric of projects services, public favorable and fuel our across and to a the environment of created vehicle momentum. IRA and economic that power, which increased client cut country. has continue the

clients factors than of time take record XXXX fruition, completed of the opportunities them amount over for larger and can the to opportunities expect IIJA and related awards, diverse growth The which revenue XX% our to dollar we projects, progresses. $X.X These part and come we higher development X and ended due with pipeline to we a of coming across a associated government opportunities a contract synergy significant increase to large be that business acquisitions fourth ICF provide but includes commercial years. set ago, the quarter modest in to year X IRA-related we XXXX. in as pipeline to billion, only After in expect with a year presents

a led group as and of Also the Technology focused maintaining growth Chief Mark new Lee the technology in IT mid-January, be to Executive. the federal announced arena company's on modernization by momentum increasing formation we in our capabilities

also all As new [Officer] will part Chief organization drive and that ICF's of innovation company-wide technology oversee help of markets. Technology this, across Mark further growth will a

how XXXX aligned of our ICF's domain clients. capabilities implementation and In expertise summary, expanded are priorities spending well demonstrate commercial and the government results

revenue to May our Day, outlined achieve XXXX on are for the and and revenue XXXX, driven And organic increase that offer guidance growth our adjusted double-digit of X end total single-digit XXXX, $XXX EBITDA to long-term to Investor adding the through by by key XXXX synergies. put by financial areas strong fit acquisitions namely, cultural XXXX our growth earnings revenue million. performance us have and we growth in our a in service Additionally, goals a track for high approximately achieve

to like turn for call now I'd Barry Operator, a CFO, to review. our financial Broadus, the Barry? over

of I now XXXX review in will for John, an full overview guidance. strong and and provide that resulted afternoon, year fourth you, our ICF and performance year a quarter our record everyone. good Thank

for in strong a revenue state revenue commercial and fourth energy Our led fourth to year-over-year $XXX.X fourth than our million, to from Pass-through $XXX.X XX.X% million, was performance was of and quarter our the and service and total slightly line the XX% with lower XXXX. which by for increased quarter expectations quarter total revenue the XX.X% our client in revenue of accounted local up federal, revenue, XX.X% categories. which

year-over-year a margin the on XXX year-over-year points and Gross scale growth indirect expanded facility-related expense adjusted expenses XX.X%. expenses by to down improvement revenue service our percentage from basis total XX period basis. This service to on of improved XX.X% revenue, reduce decreased reflects at year-on-year a revenue the increased selling as XX.X% from XX.X%, in pace slower to which XX%. service basis, basis was a points XX basis and than on an benefit XX.X% year to Indirect our last on same of increased work revenue points and as our

expense higher reflecting our our above quarter balances million was and higher rates. interest $X.X debt recent million, $X.X level, related last fourth interest Our to year's both acquisitions

portion facility successfully expenses we our I billable various including our executing interest prior efficiency cost on offset our higher tax other of costs, last continue strategies. reduction a nondirect its initiatives, As lower mentioned significant through and expense utilization, call, managing to on

of was for XX.X% an from million, fourth of increase fourth quarter $XX.X EBITDA XXXX. quarter the the

reasons Our adjusted the adjusted million XXX mentioned, basis the revenue above a XX.X%, delivered fourth on comparable EBITDA just quarter XXXX's was for Primarily fourth is ahead same period I of margin of service last we $XX.X XX.X% points quarter. year. EBITDA which

space Our year's diluted XXXX inclusive $X.XX share associated of income in or increased special XXXX. $X.XX fourth we reported million of year's per up will the decision $XX.X commercial share, this quarter, share services EPS to review full was basis. in million office effective $X.XX number mainly of year $X.XX the strategic million or in reflecting XXXX tax-effected $X.XX, includes charges. fourth or with net marketing quarter share net per reduce per $XX.X per last now briefly to business. In income our from I $X.X non-GAAP our Conversely, fourth quarter $X.XX results. XX.X% a quarter This fourth on charges, our tax diluted

$X.XX XXXX. up GAAP representing primarily an to Adjusted consisted The XX.X% increased and points EBITDA in billion, and currency XX.X% million revenue of total facility, was $XXX.X was XXXX X%. adjusted $XX the severance in and million to increased million, revenue compared million basis, would additional $XX.X total M&A-related diluted in $X.XX XX a billion. constant $X.XX EBITDA totaled revenue up to per approximately costs. On tax-affected included per to special Service share on a basis increase higher been the share or XX.X% service $XXX margin over which XX.X% revenue $X.XX XXXX. EPS XX.X% charges, nearly have or

EPS GAAP $X.XX of share, diluted And per charges. tax-affected XXXX special including was $X.XX

enhancing pleased with increased very XXXX, to share. profitability. our non-GAAP our For XX.X% EPS our year $X.XX full in We're success per

addition actions to tax tax mentioned maintain In will we an we're of earlier, us anticipate rate to allow that XX.X%. annual multiyear strategies approximately implementing the I

timing from disbursements. collections $XX $XXX.X benefited operating we year of as related cash flow full the million to approximately and Our was million

our estimate $XXX we operating million. will approximately XXXX, For be flow cash

ratio our to reflects improved utilize capital the to to Our robust and software. better We expenditures X able XX $XXX.X as million quarter. from the million quarter to represents X.XX ended since of last of $XXX.X in for full Day line in We're [indiscernible] with debt $XXX.X million, at year This debt reduction in year-end. sales fourth previously to that quarter. our This expectations facilities, our compared brought of days our in in improvement leverage mentioned. quarter, debt, timing reduction our investments million. I XX reduction totaled flow year balance days turn fourth third outstanding the cash $XX.X technology make is our and balance year's last a quarter of adjusted from significant an approximately down with the

allocation our additional Additionally, strategy ICF's this remains hedges fixed year-end given to the since and of the balance. capital floating debt debt debt XX% the of we've in put reduction approximately year, end the ratio place equates versus our same.

shares while and employee We $XX.XX the to average of shares programs. repurchased prioritize XXX,XXX impact our per offset XXXX, an policy to continue maintaining we debt In share. incentive our will repayment of dividend repurchasing price at

$XXX share As our remaining of under program. million we had year-end, repurchase authorization

we cash per $X.XX on also Today, a XXXX. XXXX, March quarterly of to share XX, dividend record of shareholders April declared XX, on

with remarks my XXXX to assist your conclude will additional providing modeling. metrics I guidance you with for

Our depreciation $XX Interest million. amortization range million of is $XX approximately million. expected from million. Amortization $XX and million range be $XX expense to should $XX to from to intangibles will

I mentioned, first tax our XX%. full approximately rate half As XX.X%, being approximately the of be year XXXX will with

over John expect remarks. be And $XX average XX.X approximately share to that, weighted will a diluted capital back his and are fully million. with million, anticipated the $XX to of closing We expenditures for our count I call and turn between million

Barry. you, thank Well,

we be $X.X backlog a in billion year pipeline. of our performance for release, development supported to an XXXX of robust record and noted by ICF earnings a As business expect

to approximately at XXXX numbers in $X.XX in said to XXXX, of in billion, of continue year-on-year These marketing We business expect and the we growth account growth associated increase expect anticipated revenue as of range representing are to billion. exited revenue. percentage key earlier, $X.XXX And the full-year of revenue implying $X a our to service the million we commercial into revenue revenue quarter. be midpoint. $XX revenues I the total XX% service billion as Pass-through XX.X% of the markets third with take at total $X.XXX of billion

XXXX EPS million to from and midpoints. X.X%, range revenue on increases approximately range be XX%. $XXX expected service GAAP adjusted to the and at exclusive million, and projected of special from EPS $XXX to non-GAAP to estimated to over is $X.XX is margin of $X.XX XX% is EBITDA EBITDA to is respectively, expected $X.XX, $X.XX charges, at representing

Management several in Best helped important noted need America's Diversity, talent XXXX, America's received on culture and attract Women, America's list execute ICF's in strategy. for Employees for to earnings has our we're which recognitions Consulting growth our Forbes' very of we being As effectively Best in release, to proud, ICF the of included Employers Best we Firms, reinforces us

we and the diversified importance growth a culture workforce, maintaining have highly to recognize engaged development We across leadership and business our opportunities provide of offering a programs collegial disciplines.

the And like call questions. with that, open to I'd operator, to

comes question Sommer with Instructions] Truist. from [Operator Our Tobey first

of to local your current climate-related hoping the thoughts you I was current spending us activity awards maybe what contract could and give and and infrastructure federal related financial timing expectations for bill, impact the the customers? to your are at related

Sure.

discussed I So as there. opportunities the on we're think infrastructure bill, IIJA, see we've to previously, beginning

we've $XX about on think of activities. IIJA-related million reported in sales I XXXX

have to in we our opportunities $XXX -- of pipeline. pipeline of think million of I million north a $XXX

ICF year think second we material I to those 'XX. the up expect the present in of opportunities half and growth for ramp 'XX certainly and in

there there. will set IIJA think I we've as that's previously, of IRA significant activities. be the so say would And front, on discussed the I opportunity

flow. going a for little that's take to think that money longer to I

when business, some that those attention begun double-digit it's resilience resilience I see that will drivers. being really and cuts opportunities, the growth are And material XX%. in appropriated clients business also we're obviously and paying and that but in aggregate been on more see been robust local, front, what markets, with -- IIJA and all to -- utilities over broadly, And say of commercial tailwinds but expect that will to look beyond. growth both that I X obviously, drivers there, years north watching of our and our I the fully one our with to expect spending next as we have given couple would would state But climate of federal, and as X the carefully it. is next international be across so XXXX work growth robust we've IRA More our key climate -- over It from and close we down said, road what's years. several the and growing growth of we the

closest customers, to their commercial analogy would the look sort kinds far of measure this of With largest or could how systems you their help of to the in in is say when in you your terms a of systems they where are migrating IT you to baseball either transition, at in as terms respect that some modernization, progress regard?

sure. Yes,

those the So growth of as drivers. you X IT growth first to is, that of our modernization know, X would say equal again, it's business X I drivers. our among

We have million high can as been that, think maintain has have look And forward. I growth confidence a year a for the $XXX we of XX% as growing double-digit we couple you business last years. Tobey, we know,

primarily civilian mean, our client, opportunity in HHS as those to clients, our say And order significant Obviously, IT We're of XX% a given task within we won total I largest my north portfolio. of we HHS NCI And focused million would $XXX is sets. our see opportunities. new mentioned on remarks, undertake opening client modernization within I across revenues. I

certainly seeing particularly lot a within we're SemanticBits acquisition. opportunity of So the CMS, of there, a opportunity given lot

drive is so it fourth X-plus effort, a from and I of modernization -- these baseball the significant And ICF multiyear or -- years. over going say is in next This inning will standpoint, efforts with think clients. third this drive a analogy growth to we're would I take for continue here to the

and for of maybe into that new grid. of time? are you sources company the Seen to broad some of over plants kind climate means speak terms Could I queues in of one and trouble in push what of having energy. the the green wanted sort reports media drill to accumulating that to of aspect connecting towards that generation energy

Sure.

trying to and significant is a a approvals renewable interconnection studies the connect So has the do to steps address around task interconnections. and that Energy grid think plan is issue. you're Commission are the addressing this. better and Federal backlog taken of government of in projects. ability There's backlog There know developers impacting developers on the interagency the variety to Regulatory the of power force process a to I certainly correct. I streamline

these certainly energy of it's impacting projects. developers so clean And of types

our for are related on not projects significant we to a have doing of work amount say advisory in issues. interconnection a seen will and renewable slowdown I ICF, business

experiencing, can here it's those think we're for with the I number the players. be and -- these capabilities, provide of queue and that limited fortune are more to players so even and only us, developers a that challenges limited there's on

projects And these I so very time some a resolved as significant we pipeline. quite are this will think opposed but remain do even developers of at an impact these we as are issues. of types get busy busy it's more of delayed, over as the to, still for on And quite I say,

at And you XX%, I from Do XX% the adjustments sneak If I number of will were the about, year ops flow from may XX% to year significant thoughts numbers an before. that be a more question. will conversion than conversely, have improved EBITDA in ago. think, a 'XX? that 'XX? two continue Do trend you as have EBITDA what this in Cash year percentage total the for then from any whether nicely, in up expectation for

Barry. is this Tobey,

mostly closures, market to We I the think number question and that first. answer business. did of the unusual second commercial onetime have facility related related services charges was a to were that I that will the

So I repeat, to that though. don't expect

our to charge. footprint for in say expenses. But facility onetime ways improve that lower looking We -- that a those I certainly are would was always

to see as headwind don't conversion the would far a in that As fashion XXXX a I be had the would it anything in I as expect we on be that. cash, similar on XXXX.

look Barry. down expect I mean, stock charts, in we additional come agree XXXX the mean, here put with that road. certainly I charges to -- to Just I we've facility expect down taken obviously the XXXX, to beyond and get of end on I as completely but we those materially

Joseph question from with comes Vafi Canaccord. next Our

questions execution Very some nice in could down here the of modernization. on Tobey's IT great we if Congrats on XXXX. following was wondering results, nice all outlook. drill I

here large of opportunity a a was can guess RFP their IT I expertise with before kind exists question could do and an subject an that, win the joint a your own before to was you a help thinking little opportunity the RFPs help perhaps client extent issued. you with I bit base to the through follow-ups. is, to to the couple If consultative issued. your And client there the was do then to are walk of this component. type transformations I sell line us across the extent component that of have matter And of even

I would modernization IT in say, general, on Joe, the front.

ourselves the client and they're best questions I and and modernize of types And differentiate our issues with engaged top-notch a leveraging our skills. kind expertise. of domain-oriented they think at to when we can bring both addressing, then we're are technology the efforts their look domain can they're also, our really answering of understand on as kind system their

I client's So of we think both both modernization. sides we're the clients sides around the engaged IT found is when and house on supporting

them make who [indiscernible] efforts address of ago side, the can those to between CIO also to domain help answer questions today really modernization and house to they those space were what can white trying years mission, the driving connect as to XX And really on XX sides and top-notch focused dots sure the or the differentiate that and we technology the the they're that the technology. in address So ourselves we work opposed trying the that bringing bring typically expertise. shop, the are

our and our from that leading-edge domain technology. really bringing can certainly, where deals our competition the we're we can is we're terms opportunities of how ourselves in where So the extent differentiate, separate -- approach really we bringing the we to

the both National house agency. in know we're the Institute, of that terms Cancer I on working of specific In sides

for those certainly both we can of unique variety it sure that a sets is very I synergistic kind driving and And skills helped bring opportunities this in and sales that civilian it can us, in wins even the proposition of client of arenas. that is think pipeline I'm very So of us. synergistic value bring market, significant

on little business. If you I'd than kind And us Sure. follow-up perhaps is little faster And your key higher IT look I that suspect probably there perhaps some that other trying then potentially for a your business service it's of 'XX. get there suspect growing margins revenue of just bit to as sense a just a another well, focus as into there, give of the areas. the be a the may that we trajectory could feel

think -- our I end I past, I those markets. margins mean across I certainly think at we've those the on said in drivers, tend mean, of be in growth businesses the to the higher X each

our And for very profile. the at good to federal so can IT fixed often modernization which certainly, us. higher of tends is be be work in end the price, That arena, margin

that management also some so our do contract as that we And intensely in don't we growth in infrastructure true modernization we the IT also case. many are certainly the of -- is have which in disaster -- it's and as And don't the use work, subcontractors driver.

So what of pass-throughs. -- and And the certainly revenue our of I the with at nature the is end the of margin. lower it's higher growth you service said, certainly, helping given agree drive it level the

cetera, infrastructure, That's you offsets headwind expense mentioned know great. focused kind I to offset in -- the I interest then Sure. And those know of tax, et you're that the we have. Barry, on that

little we're whole will interest that here a high that probably we on being how see if more So be? which sustainable year, in a and drill environment much I down rate was how for -- you bit the just to wanted

that Yes. Thanks I for on the do of a couple the think question. interest things rate.

help some on hedges expense manage interest to in company. impact put the have We place the additional us

where end we the with new XXXX XX% So at hedges, you of hedged. at about look we're the at if were

help that. will are that we So are manage There some that doing. of things

For on offset can mentioned a the portion of that. the that certainly strategies tax good example, work I help

lot visibility based on -- sustainable the work got think that of And that XXXX, that that's we've I in think I XXXX. that, we've a and and And which costs. do for we of able to is rate that, some will this help done feel very at confident offset higher that be tax rate year, interest year the us that remain through certainly we'll next that

then That's here. one, subject a And Sure. great. one of kind maybe similar just on final

here, back You turn costs maybe a larger And probably maybe to debt by making and But here hunting trade-off acquisition relative you're bring again, given the a just be a go wondering how in scale. position did you'd down to nice you're also a further expect is that? on interest -- versus on bring well. interest M&A. paydown on all I'd how that year. debt on target again as of prices Congrats probably down color perhaps that the rate balancing environment helping Any nice

of -- on debt. SemanticBits a Joe. deals create to the we've to the down Great, on to long-term you had. the Okay. think focused we've on relatively pay aspect been mentioned, to acquisitions acquisition I'll for I ask integrate XXXX, the Blanton, as load that obviously, in certainly -- key the high and I X Barry mean, few guess, be been think and working in higher continuing to of given interest XXXX debt rates, make going I half we're have our the I'll comments. And I a front, first strategy. I our say growth would

And in lot. out from gate. And I deals right terms but started where mean, go see wouldn't high. the you a down for valuations rates there, of bit, we of think We accretive we our might know, want a be interest they've say down come to I us, I come to are as

Barry, we're in repayment know but that. market, right out remain debt now with on think flow don't if I focused we think you... and I I the So cash primarily But focusing on

I would agree.

look and on repayment delevering and that laser XXXX. debt through think I we are focused do to that

focus upon the -- along, would I acquisition an good if now. deal there's that's look it. from So at and But we that that right depending a certainly think comes perspective,

[Operator Instructions].

with Our comes Marc next Sidoti. Riddick from question

wondering a was I were So already lot of answered. questions my --

So I couple want of to jump into a other areas.

of now. on One a plate and sort about, on lot you certainly of a have quite was your right I curious things going bit the

talent to or whether in areas? there about a historical of like kind where are? maybe like? So should I And kind that why we sort that availability that are that. expect to of in to you few would you couldn't relative after folks a add see And bit you there have And are follow-ups of some not or certain then and little where utilization the you talk what

business. would that, say obviously, we're services professional I a

to So I be to it's we're our going example, if of And be bit. And need years. X We're XX%, all adding to meet think going before, to looking we're about for focus if between we're X%, little grow, needing X.X% reduce a continue the to the gray to people. organically matter headcount growing people's to that. growth. I've always And on quality we utilization that add said

think have a track we doing of I that. record

we to think on job a for need absolutely that. meet to been us in I been our good And adding the We've growth objectives. talent be But recruiting. we've investing significantly doing

We culture. pay trends things strong to a that obviously attention and nature. of have market and We the the compensation

and on compensation that. still very it's able to to certainly recruiting of we're -- do little but growth. the say the talent, to generally -- the in talent the able gotten say have have I would and and capital, been in make better the doing the in has And have and so front, terms find generally to And do add the terms we've wage to keep we of talent, and challenging. being you a to I investment you human the identify would and onboard in what deliver current market you

attract talent, a opportunity, news good offering too. helps us we of work, As have growing. do and interesting lot culture. We're to which I a said, the people really lot We're the a of strong is we

So so working it. certainly on -- and hard we're

beginning or seeing? was I talk where -- And little if about -- that about face-to-face mean, Excellent. of are modeling are take as And activity last more beginning go-to-market maybe travel Or to as things in up and bit you could wondering a are few with... you far of expenses level you you talk could are nature? needs? we more entertainment a you to kind hitting it's you see are of I over but see this months, the

we'll picked things. is a of certainly up. tell post-pandemic, couple travel think I One -- we're has Well, certainly

pre-pandemic. for below XX%, spend shifted still travel week. the work think worked -- we're relative think pre-pandemic. ICF in it's we're days or office probably previously environment those folks to I to a And I'd who office but certainly, I on a we've were the the in what say hybrid to two we -- were spending XX% one in

are to spending don't entertainment return travel clients to don't I think and I clients pre-pandemic going we're the fine I spend. of but to to more, -- we're how ever we're maintain mean environment going ever and going face-to-face, certainly continue to pace. seeing our think level culture, return company to here be competitive on in the maintain think a best really I work we're we forward to lean and looking to as optimize environment. the that grow hybrid And in edge, look forward. we're Our our

behavior about like pockets sort much whether or current doesn't of you or any then as of I wondering your mean, apply of others, much not way client much or I or you granted, in there in some like or areas that any peers this talk -- as activity recessionary the the seeing to are as based work know may if you as not And project-based off changes were Great. the of you're [call-outs]. just environment. -- the see of but some client

see terms markets I the -- proof. XX% assessments. Obviously, think generally as a also funded commercial I typically think of energy funds recession of in I where across large I business, mean, that it past, think mean, cuts end across -- whether recession of highly our energy I government businesses. portion revenues is we've electricity, of cuts talked our through or significant that actually our uncertain XX%, a of ICF, programs. a think in I on from on think our that impact are we XX% impacts don't economy, we're efficiency are in delivery tax

expect generally recession -- proof been at pretty us, And their to That's business as in least really or on And recession say, so spend. or -- seen terms front. us of of across an the any so clients far. issue really would I on hesitation material on I be -- so more haven't showing I for a slowdown we any not pretty that impacts

turn conference no show like questions John I I at the for back to this would now further time. to remarks. closing

in forward participation. to We upcoming Thank touch staying of all and calls look sort for Okay. meetings, through you and conferences. your

participating. thanks for So

conference call. This today's concludes participating. for Thank you

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