ICF International (ICFI) 31 Oct 242024 Q3 Earnings call transcript

Good day, everyone, and thank you for standing by. Welcome to the Third Quarter 2024 ICF Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

Now it's my pleasure to turn the call to Lynn Morgen with advisory partners.

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

Chief Joining James Operating Officer. them Morgan, is

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

In presented to We quarter statements this anticipate performance. in may, some at will that on so. Please our do based forward-looking ICF's today. CEO, developments to the addition, future obligation today, John change. call to our statements cause I light. will any We call disclaim but views over XXXX are update that Wasson, views point, of John? third information during elect specifically the to as now the turn to made discuss our consider

Lynn, third you, discuss have results thank Thank Halloween Happy business in results. for I'm echo tricks to issues. no our lots to I Lynn's quarter outlook. want and in and QX review our to And you today's call we treats participating pleased and our all say of

I'll trick said, along, you there so this that way. move tonight or a treating out with can are So those timely going in of who get

was another ICF. this strong So for quarter

positioned for metrics existing and forward-looking well that very indicate we executed on are growth. Our contracts well staff continued our

the from key the at quarter. takeaways Looking

year-on-year. First, revenue X% operations from continuing increased

representative done employees. This increased by XX% from revenues less continuing the work Additionally, is of ICF year-on-year. operations pass-throughs

EPS all we by mix reflecting guidance to profitability $X.XX our increase and tax Second, business the for benefits, year. enabling us full across favorable outperformed metrics,

growth third in ratio we quarter of commercial the quarter wins, trailing X.XX. third the had our a contract of -- ended the across new government development $XX.X for record over resulting we years. business Third, lastly, providing ICF And solid and coming pipeline healthy potential substantial with sets quarter a XX-month book-to-bill client billion,

Third by demand multidisciplinary infrastructure market. ICF's led solutions. client was environment, growth, quarter our recovery disaster accelerating for and We're revenue again, energy,

of existing Our a we're implementing of key is clients program growth strong from and in revenue. management and for share our a expertise efficiency be growth energy our industrial analytics increase programs, contributor to commercial of in in performing and also to we're increasing the latest a the and residential reflected higher-margin scope XX.X% clients drove new generation our continue performance. clients. ICF markets. Robust developing the energy addition commercial both work efficiency Year-on-year energy leader in market and the gaining revenues

performance efficiency and consistently significantly our have exceeding record long reaching programs We through track capabilities of have on areas. a adjacent energy invested and acquisitions organically expand in to and our goals tuck-in

beyond grid engineering and for to this efficiency load advising for demand of wildfire pace and our load the unique As from transportation programs grid accelerated third quarter, new very climate, growing continued recovery, we implementation on pilot and undergrounding of a support is ICF centers on a that our our and to on clients include in and resilience. advising rapid have electrification work also of the flexible has. This programs power on have electrification. In of earned capabilities we energy developing growth given services utilities lines disaster management, restoration relevant programs data broad consistent has range bring And and utility resilience. to expertise in a together offerings trust of that timely has set program the and led demand and result, development energy, which

storage solar, reflected habitat conservation growth revenues developers and ICF's wins across market we compliance seen to permitting, energy provide services. have commercial quarter of full where third licensing, the work renewable breadth and Additionally, wind, ongoing recent for

support the We government primarily $XXX work our federal continue where solar many work pipeline IIJA grid more for This to for from to country to management the does opportunities clients, for specific has is and tie won IRA. legislation. RFPs clean $XXX and for not QX RFPs with the related on from and our more state and governments in to climates resilience climate about state IIJA climate are from difficult pollution such home state over being million. energy expected topics. on reduction, and all, for IIJA XXXX. doing see opportunities These all commercial the we're and and and and for To include IRA, engagements existing energy local that provide IRA-related and grant ICF million early and local ICF, in clients related programs released for it's utilities across the building significant innovation rebates work date, and as

in strong wins. Indicative third our with to contract services state Area recovery quarter for governments, with vulnerability disaster of work the breadth we and be climate organization. And set In of in the infrastructure quarter see for and up to our Metropolitan continues high strategies refinery client third demand. Hawaii Capital solid depth work for carbon Planning continue wins of Texas our year-on-year the substantially C-level with assessments, Board California growth for new a the Air demand in climate-related reduction fact, across State our the our revenues rise study, and Resources

currently South Florida, to provide generally client solicitations delivering Hurricane XXXX, these efforts, clients their and to we response X to small programs X states XX North profile our in efforts programs assessment contracts Helene And by a know, expanding in XX clients needs, will you evidenced million contract assignments as states initial key raise extension now. ICF territory. Carolina, recovery supporting services As disasters, the won recovery disaster to support $XX disaster disaster Milton. Later supporting have develop we're from its post recovery to new allow mitigation their support in Virginia XX immediate not continue existing involved and we relationships and related client with an is to ICF's than another from are roughly and to longer-term we management hurricane address contract local recovery efforts. and disaster to in and and but currently competitive on territories, respond regulations initial recent mitigation us XX federal existing will and compliance and to and more provide small with Carolina are client in a numerous

operations slightly revenues in revenues to Adjusting the Moving client our and of $XX operations continuing year. from declined year-on-year, but that million in quarter. last revenues health the client from continuing lower market. of approximately a pass-through market Reported reduction ahead for third X.X% programs this were pass-through social includes in revenues,

build where examples technology Advanced opportunities which and for Health of methods a focus. Other to injuries develop a As by genomic and have awarded and communication we we then make AI business new supports continue capacity opportunities in human and XXXX, data we will other we'll alcohol new to contracts technical trafficking. And abuse, U.S. high excellent biomedical apply Projects geospatial in we arena engagement and from third federal which quarter, work were research million about health executed behavior increased combine implement researchers. health-related the and recent for domain the to government that were of data Risk work in of contracts our contracts. Please acquired keep and health to ready. The last scope particularly design, U.S., on DOJ of comparison or included support health grantees. that with an school to anticipated reasons: $XX million within X Currently, and we data drug is be we're the million the falloff data that expertise, the third on programs building, related faced several data by accessible public major example scientific difficult for a fabric management data complex by area ACF, system. we monitoring our include expertise a biomedical delays and client the including in in quarter, public technology also this CDC's small and This including in domain set to system like We Research in and $XXX per campaigns several mind the institutes be territory in and with our discussed social AI to at we're or modernize federal ARPA-H, and won modernization market we are social new government, new includes traction that Agency and surveillance the the seeing for on growth year see contract the combining order public wins task this XXXX expanded largest contract and the of combat this physical the market. Also, contracts $XX USAID activity easily programs a certain of revenues from more unintentional centers the in deliver is EPA. Also and the infrastructure ARPA-H toolbox health-related and assistance across ramp-up among included quarter, behaviors CDC, in in large digital our government NIH, client training students held strategic new in violence. aside survey, firms project IT the NIH international

we're into move As believe of awards will first being the will XXXX, high the that a number we the priority continue market at grow this in year we that rate. increase and a Further, digital efforts and remain see modernization half XXXX. to with of in spending end procurements bipartisan an the federal released to single-digit expected to pleased continue

with indication ended of topic of a XX-month future X.XX, earlier, mentioned the new trailing of a as third which business, healthy is positive the I quarter ratio growth. book-to-bill we On

ICF how New a of spending In are metrics. with of significant for profitability demonstrating capabilities business summary, execution, was of well this client contract wins, priorities. and accounted our our in for quarter terms forward-looking progress XX% aligned year-to-date

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

you and details John, on financial pleased you, quarter performance. XXXX to everyone. our I'm Thank good provide additional afternoon, third with

from continuing client year. These our revenue continued Revenues a driven energy demand growth in X% of was from year-over-year our XX% increase by less commercial yielded adjusting clients. year-over-year. for a energy, market, primarily business after direct representing other from were costs benefited recovery operations subcontractor XX% last quarter increase X.X% $XXX third infrastructure Our divestiture comparisons strong and positive or environmental which million, disaster and an commercial the marketing of the

million amount the our revenue XXX be revenue a our pass-through resulted with direct migration grew While basis growth XX.X%. Indirect of quarter, an reflecting more year-over-year. by costs, in expenses revenue of point mix of impact subcontractor federal clients to direct which along federal T&M improvement were profitable higher generated million a X% and lower represented a revenue excluding development shift down estimated with to third efficiencies. than energy ICF growth, led prior associated impacted operational lower X% business below X% of in calls. Subcontractor price costs Comparisons in XXX utilization programs costs. This with to towards higher growth quarter the our of and favorable $XXX.X delivered margin year-over-year, other other and international XXXX. direct commercial continue in third well total pass-through revenue is selling from costs margin up discussed mix, expenses $XXX.X considerable revenues, XX.X% the in more gross as our subcontractor our in other of in and decline contracts, with of and revenues XX.X% toward fixed and point direct from The basis USAID, labor,

drive As across cost expenses utilization that are XX to the of due rates, higher adequately XX.X% to scale, continued percentage same markets. declined basis ensuring disciplined time, while selling growth we controls initiatives and in to our various a our revenue, emphasis and our indirect leveraging on investing maintaining driving points at long-term

balance year's basis third at cost. Interest was million. third EBITDA in The indirect above $XXX $XX.X $X.X our of XX.X% last gross to prior was million, manage by approximately our while XX.X% X.X% was year-over-year the million grew to grew quarter Adjusted margins compared reflecting lower year-over-year year's I quarter, the as expense Our actions points for adjusted mentioned our driven $XX.X million million. to XX at interest in previously improved $XX.X quarter debt as EBITDA EBITDA to well average expense of decrease margin quarter.

in versus X.X% associated rate by was which business onetime a XX.X% divestitures tax tax was impacted last benefit Our year, with XXXX.

Our quarter ongoing year's tax optimization third tax this rate strategies. in various reflects

the Net course we over income of totaled several is the expectation $XX.X was tax a As EPS result income of per have efforts, with roughly which share, XX% per compares or net This $X.X these year-over-year. share of an $X.XX and to included of it XX.X% rate per our diluted of last increased or share diluted will of per next that million $XX.X the years. million $X.XX tax-affected EPS estimated $X.XX continue $X.XX charges. Non-GAAP million year's in third special quarter. share

in for forecast of noted strong Shifting the our tax the we XXXX release, benefit flows our As increased by lower reflect sheet. midpoint. The in our and the rate. at estimates performance EPS EPS $X.XX and our balance we our to cash increase operational

year's timing end from million Our year-to-date in the our last quarter, million quarter of year working management, was to ahead down XX $XXX.X our the outstanding prior declined $XX.X XXXX, is sales cash flow debt well commercial third primarily a debt projects and capital yielding days divestiture certain improved $XX.X end business. At debt. position. rate. to year. of the million of last fixed at of reflecting the totaled more Days compared reported a XX% the capital Year-to-date down million, at cash pay to cash of set in favorable flows the to of use $XX.X our were the operating Approximately $XX.X favorable million, of expenditures from reflecting quarter, million due the net XX the marketing $XXX.X

net was third end end adjusted quarter to Our quarter. of last leverage X.XXx at X.Xx compared the at ratio year's

allocation. Turning to capital

and announced on $X.XX growth targeted These capital opportunities, X, payable offset of We investments, December cash few employee the we deploy January plans. Today, of dividends reduction, our quarterly XXXX. record continue incentive shareholders dividend include a share repurchases debt to quarterly a to from XXXX, key expect share M&A to strategic across organic dilution on areas. per XX,

you following to XXXX. note please full Now help expectations your for with financial our the year models,

We Amortization expense intangibles million million. range interest $XX million. Capital amortization from expected is be expenditures $XX to is $XX to to million of be $XX million to million. and to anticipate Our $XX million. $XX expense and million to expected to depreciation range now $XX $XX expected are from between

Our full XX.X% down guided year XX.X%, to. tax rate now the previously expectation from is we

continue operating fully to the we of of his for million to shares, continue expect approximately closing and weighted to count XX year John with share I'll a flow call turn We diluted remarks. $XXX a cash that, over expect average million. And full back

Barry. you, Thank

approximately full and with for increase metrics our favorable to Continued tax midpoint have $X.XX led business guidance year XXXX share utilization per $X.XX. together of the us mix earnings estimated an share by benefit of per full year

$X.XX, non-GAAP Our revised to range guidance excluding range to expected is of the is for special $X.XX midpoint. growth charges, representing at year-on-year and XX.X% EPS GAAP $X.XX, EPS to $X.XX from

recently ramp-up few million guidance and $XX We on have revenue year reflect XXXX to our work of reduction full range pass-throughs in award adjusted an decisions. estimated the slower-than-anticipated reflect a in awarded that delays contracts key

begin upcoming programs comparisons no to months. Reduction and business on new will programs our affects ramp-up confident revenue client the these awards term in in that impact will accelerate gross health these with in primarily are forthcoming social margins. and market We the on near meaningful be the

to now billion gross to are guidance We $X.X $X.XX previous revenues billion expecting $X.XX our billion $X of to of billion. compared

Our point to to XXXX. for as metrics grow we forward-looking ICF continue enter

record of We have backlog, a wins. solid a business business a multiyear record and new development track strong pipeline

environment and implementation expertise technology robust consistent for and capabilities. demand and experiencing from clients energy are commercial We related

support, management, large fully our our future particularly governments future And have in planning. as for resilience importantly, as after missions credentials area potential. With federal with of mitigation open bipartisan engaged spending. like well excellent and resilience modernization, in to achieving assist flooding state work disaster I'd and that operator, people to in have majority We recovery ICF's storms, with our of and which areas are local objectives in call The of is priority clients, our remains confidence the underpins wildfires questions. an which work IT that, the growth their

question Joseph first Our the Vafi Canaccord [Operator line Instructions] Genuity. is with of from

see your we'll energy of on, out favorable strong Maybe think, going Clearly, margins. margins. and I ask especially utility mix question Nice the you've got practice. a shift probably to some on

Just other a of may much in the as quarters? bit, from wondering see practice don't And to that do play few you favorable a we that see how accelerate perhaps shift continues think think you quick out some Or growth do little areas then moving have here? of next forward quarters, mix still you think you next I'll perhaps few and a the mix follow-up. shift a the

think, we that the pick quite growth XXXX. But has into And business as experiencing expect I also of up given look growth I components and we the to is strong Mean Joe, Group expect highest the energy continue that business we highest the will growth. also certainly certainly commercial other strong will Energy think their margin. to a

there's some for increase their also more improvement parts margin other think business I growth. room as even of the

So would constitute I should you year. expect we into think next that -- to

EBITDA I results, can our see I margin, mean, up our think to adjusted is from the XX. revenue as you

to We bps. year. XX We've expect to XX generally for points guiding at been be the XX it basis

so think of and can see margins. I business the our commercial you And power energy the

of year years? of to John. great month on That's last should storms, anything I that read in notable we set of then there October. might anything coming here guess, disaster different the Is out hear, be recovery Sure. this than And through these previous

remain Helene Texas as still We've I recent hurricanes, clients Rico, think those in important us. clients significant and said Puerto long-term the had do I we continue Milton. I and remarks, in and to my think Well, and work for

allowing in the of potential and picked the to months as expect to opportunities I opportunities damage quick RFP bell about be do small ground. in XX to we've said, I have numerous relationships for people up, up is areas. It opportunities and those usually as develop analysis do us the there takes We get past, will get to assessment, the to talked stage. significant on disaster

see the the say, would expect second to recovery. related in see in opportunities of to disaster So would it, half Carolinas and I Florida year, we next

of for the line our comes Mulrooney One moment question William Tim next from that with Blair.

how Tim Sam particularly questions to receiving the your being is this first, clients. I believe respect Climate just been clients This a business federal has and digits. think investors some been is to state growing more for around services, your more versus guess coming understand I done, like federal growth commercial your work just Mulrooney. in with clients. from double I the of Kusswurm on of And better, that bit would we've regarding much

say would climate been business the that robust total in certainly growing sees demand. has I and digit double here

there client As business you our local set government government a spans , know, set. international our our we our do set, commercial client state federal client and that have clients and

have into our we portfolio in that leader a So truly market diversified market.

would I state in, primarily -- in federal the XX% is business, that XX% all say, remainder look think I commercial component in and at to you if local. is, of business. the The and

but And so it's federal an important XX%. component, is

growth, commercial in we are have and and that strong area. we and in local seeing state so markets in And scale

diversified expect regardless clients. And grow prior governments see a state we'll I our climate business administrations, local commercial think direct continue honestly, on I would that business. And is happens to on I'll local But in focus and extent it's forward. what and question in federal back can to strong think market, have federal the that growth of robustly would we the that so kind And election state opportunities if that with step grow shifted not and we and of confidence here. -- international I we the and presidential to that I'm of the trying say your sure

look possibility if And for would we focus forward I and look we think that as on needed. would so we

million understand these a kind a IT angle of federal on of strategy if of approaching with. few IT a project occurring here of look how Very helpful like your and share IT average Can federal bit I side. maybe increase you there's your announced historical a more to And your you some little that size? million We is the appreciate I shift then noticed pivoting piece color of contract project, to to let's compared mix of your help And side. say. years might the now? that. Maybe mix large in us to really I from was $XX another you know the a larger contract $XX contracts think average the

certainly the $XX our IT bidding say we're focused to we're to expand of contracts. terms spot in $XX think trying size I would our up couple million range. historically I on years of in Well, average last the million the contracts and in of of sweet on move the size modernization

winning are of contracts We north million. $XX

I north think contracts we're million. certainly $XXX bidding of

of you're absolutely part right, And that our strategy. so is

I think focused. we're

I government, to them. IT I when in you XX, it modernization happen in doesn't them overnight. contracts these you months to sure, think that and win mean, you capture as large the have spend I'm positioning XX bid know, get federal

And pipeline, We contract. progress. so the I did think, showing nice is very a win good

We with our about in commentary talked the just territory. U.S.

markets. do at so positive differentiate strategy. can can the civilian that's can And developments, ourselves, capabilities, where domain modernization We that we and exactly in larger we we technology signs, least we're positive a but and size where IT our expertise certainly have reached also a combine scale with we contracts believe bid seeing

good it. some I good, We've had And progress. wins, and we're we feel so is making looking good pretty early the think pipeline and about

for moment of Securities. next Sommer our with question, and from the Truist line Tobey it's One

to have well of on maybe as rate that of demand In you What the utilities as growth? of business that length that the of with a kind now talk of good commercial to growth elevated of and for to reasons. of energy the do the expect sort be comments space, growth ICF your impact respect release forecasting time about the the and are expect period press host you the

our different no broad that AI down seeing there's latest as certainly increased are clients look And that. think they the are data or I are X seeing load these potential the growth including Well, trends, utilities centers. with significantly certainly question road, Yes. X the -- given

utilities. multiple And of programs help our mean impacts to demand we help work we manage do electrification. ways. how they like We portfolio it their lower assets load their I forecast, in for efficiency that advisory growth. about on think so generation meet front-end growth, energy their them that and with can business And them

we it help resilience. So and side with the business, them into can moves program of the

think And growth, long-term significant long-term will our future to clients. that for load growth, so I us create opportunity help

with it's advisory side, Energy state state up strategies or federal that are manage their to not that growth. And growth agencies. this -- part Department other at support it's the governments' On that and approaches and agencies just that of come their growth PUCs meet or utilities, but also it's of energy and

And I a This like seeing before work. And it's it's said advisory energy long-term solutions. trend. on that I I and so focus work a in and work once we're our up mean, implementation a our come think decades through trend. is to take a both with XXX-year going and think lift I've to

in energy, part us, here. long-term Tobey. I you I So I can to and grew some up of just I look commercial growing And our just -- in that's in growth a can for We're of think the 'XX. ramp most XXXX opportunity we mean XX% of due at it's 'XX. think opportunity in XX%

I on so growth market. significant long-term this think And very there's attends

this it's It's parts it -- for hard significant of many opportunity here. you I Now as -- I But I -- working a kind mean of large law across think XX%, market forever XX% at there's there's there mean, it's We're growth numbers. to get of scale. is us also larger.

it. And so we're I about think excited

a couple future tax This down in for then helped this of quarter and episodic lap uplift cost or sustainable? the balance XX%, for annual A And profitability next closer is of the percentage. Or rates? in we the things year. proxy the rate Is direct to will good that year?

is this tax Barry. rate. I'll touch Tobey, the on

of in said I something the in XXXX year we maybe that remarks, be able and certainly, to tax is I rate believe think, that we'll XXXX. next achieve in approximately XX% my As

will an that stick the of from optimization So doing for fourth the we're is the right that in comfortable quarter, years. perspective now we're next things right couple

Direct labor...

certainly you to margins. direct especially directed of the improved that in in more And revenues, from that going market. energy the a And as if think expand, kind perspective, advisory towards services labor we business about client the the shift ICF to our pushing continue continue labor think sector that, in that's is

So a perspective that that labor. that. we with We're growth pleased revenue think from is with our pleased the obviously, derived we're from

that that, certainly think is positive. I So

everything I Yes, think agree see us I ratio Perfect. high. I business. more the with I the our is not mean very energy as It's said. profitable business, Barry in of generally a business. pass-through doing

have in pass-through It in quarters. profit. more I a area think program we're period do health last our couple drives where the down of rates been the social and

expect health more I You we focused handful the up year year can think of it's look for and at think see to that and pass-throughs company, our do basis this that as in But down I pass-through ramp we're year international last we ratio businesses. pass-through to the XXX points. It's next contracts on. our health federal

rapid for will to But years. XX growth been that be improved business. EBITDA XX expect the of our with -- mean guiding energy bps many improvement margin And that's longer-term still there I that, profit we've with to I in

power I growing. the you think, obviously, would business when again, right higher the We're is I see commercial really now. XX, bps say XX

of they? business government What how business, declining? are specifically are parts large And the the

seeing decline. we're think Well, -- the I I mean

on on You social we the revenue quarter. higher think I out total be the would and that the market market decline On X.X% programs by area, in can ICF. then see work revenues, in area down was service it health and

in -- market the that ICF. the work think and I I by so on we're digit, generally low to single done flat think,

now, right pass-throughs reasons, business year. I our certainly, down expect business USAID USAID I up. seeing back think the been think to seeing ramp for we that of those a this has we're the -- variety But we're not

else biggest that's anything is think the James, you'd add? there driver. I or Barry

We're on getting I would U.S. I the if the year-to-date agencies. government new variety area that. energy, infrastructure basis and with of the contracts agree is say would at a recovery Yes. federal with you nicely. growing a look disaster for market quite environmental segments, client

the grow. some talked social there so contracts market waiting that and we up thought. that where quickly that ramping for forthcoming. is that in We're about some programs the with I continuing as think key that awards the I to we've we haven't is programs, been are would say, we've seen as think And health of the just issue

going as growing is that And we commercial is around. security the think well. that other that, you civilian look And if areas, business at turn and to business

that. And so pleased with we're

government I the standing, think arena. lot all So there's a federal potential of on

some awards we of in we're that other with in the the market that turnaround pushed that. you'll client solid I market once space through these some pleased there's federal growth and one client the there, ramp-up that the But of market, think area. get see and real

[Operator the We line Sidoti. a question with of Riddick Instructions] Marc have from

of then the shift levels on wanted well to So as next efforts at the where there. I amount you little to And it years to touch for there kind and sort of activity. you're of for I as on gears couple -- far potential bit debt were would current looking the reduction. of as there's And though as to thank far that wanted want to you and any position as a that comfort a sort -- bring the levels. of seems significant on tax touch been maybe acquisition that I at in for did you period commentary the to rate the looking

could you the of would maybe pipeline, us quality if be on be on that company. to wondering assets that the your was availability, current out bring fit for might a good I speed there up views So

Thanks for the question.

year had see I is can that our cash of leverage I contributing that year. that. the reduction reduction. certainly in far the throughout to flow have ratios this -- end our are as remarks, continue As we've do debt to concerned, -- And to continue We'll as think, reduced my debt the said be net turn leverage favorable this we I

of -- are look we at to different plenty M&A We capacity opportunities. have

a that take ability are And flexibility now, present meet our and of have, as a pursue think attributes of as things. come to perspective, I from us looking for acquisition to themselves. we're capabilities various sets, different considering right sure, they perspective, a comfortable they we'll delever, are they for We we're and contracts gives the good look that those at a certainly that X culture plenty where that. But the customer number we through

headroom debt, self capacity down to pay out acquire from perspective plenty give to and continue companies. of us we'll go a So

go So we'll to continue on that route.

I everything agree obviously, with -- would a I strategy. it's of would our key from focused on just perspective, said. think, a been Barry just market say I part we're

drivers, I health there been think last was I an assets debt paying around them. couple IT, or our at think of I over sort years, we obviously we've energy think growth down here federal of in interesting but within the would look

have clear market, And but and we criteria, disciplined. so we're we're looking, in out very we're the

are And so focused the areas out strategic. -- And market. those I but we'll where stay we're think of the from a

that they year -- we Great. the point? were reasonable though you And feel a more are of was bit then squishy But valuations folks same the a feel -- ago? I you in a or as How maybe wondering a and so about question, be I about do as -- at do that they are apologize this spread advance. little might this

I lofty. generally lofty mean have been valuations or I the think

kinds types markets. there's different they've there's opportunity, do, entrants some market. movement now lot we and mean mean, work of really and mean and tremendous that new back the made area think coming depends I some in of energy these looking on been interest. the we're seeing into I of a progress all at I right alignment. it I in the there's look,

to And focus depends on of In really the so what the valuations I there. is. the business think it challenging federal, be are going

down valuations the for but they're to at the I the on And think asset. the think justify revenue the still do for can value, the value-added rich, it really, see areas, workable high I the right are in opportunity. synergies, interest, comes to, find us synergistic you high side least you

And call with session over that, I Q&A will final Wasson remarks. to today close for for the turn and John the

Thank participating in call. We upcoming we look your for you and events, thank today's certainly appreciate Well, conferences you. at connecting forward Great. Okay. interest. to and

Thank in participating conference. you today's all for

disconnect. now may You