ICF Investor Presentation Q4 2023 slide image

ICF Investor Presentation Q4 2023

Appendix1 (in thousands, except per share amounts) Reconciliation of EBITDA Net income Interest, net Provision for income taxes Depreciation and amortization EBITDA Three months ended - December 31 2023 $22,162 2022 29 Twelve months ended - December 31 2023 2022 $ 8,878 $ 82,612 $ 64,243 9,535 9,186 39,681 23,281 7,631 3,046 13,935 19,737 14,532 15,778 60,738 49,917 $ 53,860 36,888 $ 196,966 157,178 Reconciliation of Non-GAAP Diluted EPS U.S. GAAP Diluted EPS Impairment of long-lived assets (1) Acquisition and divestiture-related expenditures (2) Severance and other costs related to staff realignment (3) Expenses related to facility consolidations and office closures (4) Expenses related to the transfer to our new corporate headquarters (5) Expenses related to our agreement for the sale of receivables (6) Pre-tax gain from divestiture of a business (7) Amortization of intangibles Income tax effects of the adjustments (8) Non-GAAP Diluted EPS $ 1.16 0.20 EA 0.47 4.35 EA 3.38 0.44 0.40 0.44 0.05 0.25 0.34 0.10 0.06 0.33 0.33 0.10 0.26 0.24 0.26 0.14 0.44 0.01 0.01 (0.17) | (0.30) 0.44 0.50 1.87 1.49 (0.15) (0.37) (0.64) (0.92) $ 1.68 1.56 $ 6.50 $ 5.77 (1) Represents impairment of operating lease right-of-use and leasehold improvement assets associated with exit from certain facilities, and an intangible asset associated with exit of a business. (2) These are primarily third-party costs related to acquisitions and potential acquisitions, integration of acquisitions, and separation of discontinued businesses or divestitures. (3) These costs are mainly due to involuntary employee termination benefits for our officers, and employees who have been notified that they will be terminated as part of a business reorganization or exit. (4) These are exit costs associated with terminated leases or full office closures that we either (i) will continue to pay until the contractual obligations are satisfied but with no economic benefit to us, or (ii) paid upon termination and cease-use of the leased facilities. (5) These costs represent incremental non-cash lease expense associated with a straight-line rent accrual during the "free rent" period in the lease for our new corporate headquarters in Reston, Virginia. We took possession of the new facility during the fourth quarter of 2021, while also maintaining and incurring lease costs for the former headquarters in Fairfax, Virginia. The transition to the new corporate headquarters was completed in the fourth quarter of 2022. (6) These costs include legal and structuring fees related to our 2022 Master Receivables Purchase Agreement with MUFG Bank, Ltd. put in place for the sale of our receivables. (7) Includes pre-tax gain of $2.5 million and of $3.2 million from the divestitures of our U.S. commercial marketing and Canadian mobile text aggregation businesses. VICE (8) Income tax effects were calculated using the effective tax rate, adjusted for discrete items, if any, of 21.1% and 25.5% for the three months ended December 31, 2023 and 2022, respectively, and 22.8% and 28.0% for the twelve months ended December 31, 2023 and 2022, respectively.
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