ICF International, Inc. (NASDAQ:ICFI) Q4 2022 Earnings Conference Call February 28, 2023 4:30 PM ET

Company Participants

Lynn Morgen - Advisiry Partners

John Wasson - Chairman and CEO

Barry Broadus - CFO

James Morgan - COO

Conference Call Participants

Tobey Sommer - Truist Securities

Joseph Vafi - Canaccord

Marc Riddick - Sidoti & Co.

Operator

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.

Lynn Morgen

Thank you, operator. Good afternoon, everyone, and thank you for joining us to review ICF's fourth quarter and full year 2022 performance. With us today from ICF are John Wasson, Chair and CEO; and Barry Broadus, CFO. Joining them is James Morgan, Chief Operating Officer. During this conference call, we will make forward-looking statements to assist you in understanding ICF management's expectations about our future performance. These statements are subject to a number of risks that could cause actual events and results to differ materially. And I refer you to our February 28, 2023, press release and our SEC filings for discussions of those risks.

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

I will now turn the call over to ICF's CEO, John Wasson, to discuss fourth quarter and full year 2022 performance. John?

John Wasson

Thank you, Lynn, and thank you all for participating today to review our fourth quarter and full year 2022 results and discuss our outlook for 2023. ICF's fourth quarter was an outstanding finish to 2022, which was a record year for the company across all key financial metrics. There are 5 key takeaways I'd like to highlight. First, our strong year-on-year increases in service revenue up 24% for the quarter and 15.8% for 2022, which reflected double-digit organic growth across our key growth markets in the aggregate was the impact of 2 -- of our 2 acquisitions that benefited revenues from federal government clients. Second, the substantial margin expansion we achieved posting an adjusted EBITDA to service revenue margin of 16.3% for the fourth quarter and 14.9% for the year, up from 14.3% in 2021.