Good day, thank you for standing by. Welcome to the Q3 2022 ICF Earnings Conference Call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lynn Morgen, Advisory Partner Please go ahead. Thank you, Kurt. Good afternoon, everyone, and thank you for joining us to review ICF's Q3 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 or results to differ materially, and I refer you to our November 3rd, 2022 press release and 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 forward-looking statements made today, but specifically disclaim any obligation to do so. I will now turn the call over to ICF CEO, John Wasson, to discuss Q3 2022 performance. John? Thank you, Lynn, and thank you all for participating in today's call to review our Q3 results and discuss our business outlook. This was another strong quarter for ICF. Key takeaways include our 22% year-on-year growth in service revenue, comprised of 7% organic growth and the contribution from our recent acquisitions. 15.5% year-on-year growth in revenues from commercial energy clients. 14.8% Adjusted EBITDA as a service revenue margin and record Q3 contract wins totaling $865 million, resulting in a book-to-bill of 1.85x for the quarter. These metrics clearly demonstrate ICF's enhanced growth trajectory, which together with our significantly increased backlog and robust business development pipeline, support our confidence in continued strong growth in 2023 and beyond. Our year-to-date results also underscore our ability to reach the long-term financial goals we laid out in our May 2022 investor day. Namely to achieve high single-digit organic service revenue growth through 2024, driven by our five key growth areas. Drive double-digit total revenue growth by adding acquisitions that are strong cultural fit and offer revenue and earning synergies. By the end of 2024, increase EBITDA by roughly $100 million from the $143 million we reported in 2021, which implies a CAGR of approximately 19%. ICF's Q3 revenue growth was led by our federal and state and local government clients and our commercial energy work, which taken together accounted for over 87% of the company's total revenues for the period. Within those client categories, we continue to see positive year-on-year comparisons in all of our key growth areas, including IT modernization and digital transformation, public health, disaster management, utility consulting, and our climate environment and infrastructure work, which together accounted for over 70% of our year-to-date revenues. The fastest-growing client category by far was the federal government, where revenues increased 39% in the Q3 and are up over 29% year to date. Civilian agency contract spending continues to grow in line with the 8.9% increase in federal civilian agency appropriations for fiscal year 2022. According to Bloomberg data, IT modernization and cloud migration initiatives have been among the fastest-growing spending areas. Our recent organic investments and acquisitions have positioned us well to capitalize on these trends. The integration of the SemanticBits acquisition, which we completed in July of this year, is going very well. They've already contributed to several ICF-led bids, also winning new work and growing existing contracts at CMS. With an annual revenue run rate of approximately $500 million, ICF's IT modernization business, inclusive of SemanticBits, has a leadership position in providing low-code, open source, and cloud-native solutions. We are thus well-positioned to continue to grow our IT modernization revenue at a double-digit rate over the coming years. This is also a strong quarter for our public health business, which is growing at a double-digit rate. We were pleased to have been selected for a $1.2 billion IDIQ by the Substance Abuse and Mental Health Services Administration. ICF is eligible to compete as a prime contractor in four of the five large contractor domains to support the agency's mission of reducing the impact of substance use and mental illness on America's communities. Additionally, SAMHSA recently awarded ICF multiple new and re-compete contracts and subcontracts valued at over $30 million to provide a wide range of services to support suicide prevention, substance use disorder, and other behavioral health programs. We believe there will be additional funding in federal health markets for ICF to deploy its recognized domain expertise and cross-cutting IT skills, specifically in mental health and at the intersection of climate and health. Federal government agencies are also currently very active in developing the detailed formulas and procedures for Implementing the Infrastructure and Jobs Act, or IIJA. ICF has already been tasked under existing federal agency contracts to support these IIJA activities, and this tasking to date is valued at approximately $40 million. We are providing a range of support to agencies, including technical assistance, assisting states, and communications and management support for IIJA programs. In addition, we are seeing initial interest from states and other potential IIJA funding recipients for a range of planning, analytical, and environmental support services. At the end of the Q3, our federal government business development pipeline was close to $6 billion, representing a diversified set of increasingly larger opportunities, primarily in our key growth areas. Revenues from state and local government clients increased 11.6% in the Q3 and were up 12.2% year-to-date. Disaster management represents approximately one-half of our state and local revenues, and we continue to execute effectively on key recovery contracts in Puerto Rico and Texas. In Puerto Rico, recovery from the 2017 hurricanes, Irma and Maria, has been complicated by the follow-on earthquakes, COVID pandemic, and now Hurricane Fiona. We are proud of our success there, as ICF has been responsible for the rebuilding and repair of more houses on the island than any other service provider, but much more work remains to be done. Our Puerto Rico Department of Housing contract has been expanded by another $10 million, and we expect additional add-ons and other opportunities in the periods ahead. Collections from Puerto Rico have been slow and delayed further by the impact of Hurricane Fiona in September, which caused major blackouts and damage from flooding. Terry will cover this in his remarks, but from a business perspective, we are confident in our ability to manage this situation appropriately. We continue to also see governments at all levels increase spending on mitigation. Currently, ICF is working on mitigation efforts for over 30 clients in 14 states with recent wins in Florida, Texas, New York, Virginia, and Washington State further expanding our footprint. This area is expected to become a more meaningful contributor to revenue growth over the next several years, given how well our capabilities are aligned with significant opportunities stemming from the IIJA to address the consequences of climate change, including extreme weather events and rising sea levels throughout the U.S. The Q3 and year-to-date revenue comparisons in our international government business have been impacted by several factors. First, there was the completion of the large special project, which we called out as a major contributor to 2021 revenue growth in this client category. Second, currency translations, especially related to the euro and British pound, have negatively impacted Q3 revenues. If you normalize for the impact of foreign currency translation and the wind down of the large special project in the U.K., the quarter-over-quarter revenue decline from international clients was roughly 5% compared to 29% reported decline. Growth in this client category has also been hampered by the difficult political and economic situation in Europe and the U.K., which has caused several of our programs to move to the right. The good news is that we continue to win multiyear contracts across a variety of subject matters, including energy, climate, sustainable investment, resilience, and education, and we have a substantial business development pipeline. This is a similar situation to the one that we experienced in 2016 when our activity on awarded contracts was postponed due to the migrant crisis in Europe and Brexit. Thus, we are cautiously optimistic that business trends will improve in 2023. Moving to commercial. We took steps in the Q3 to streamline Commercial Marketing services. Specifically, we exited our traditional advertising and platform technology business lines, which have not seen a material pickup in client demand post-pandemic in which we lack sufficient scale. By focusing on the core services of business transformation, loyalty, and integrated communications across several key verticals, we will be able to better serve clients and leverage the positive momentum that we've experienced with new account wins this year. We continue to see demand as part of our business, which accounted for roughly 5% of our Q3 revenues and 6% of year-to-date revenues. Aviation consulting revenues continue to grow, increasing at a high single-digit rate in the Q3 and up more than 25% year-to-date. Driven in large part by our sustainable aviation offerings, new airline and investor clients are seeking out ICF's unique market insights around the policies, technologies, and finances required to drive meaningful decarbonization in this sector. Energy markets, by far the largest area in our commercial business, performed very well in the Q3 with revenue up 15.5% year-on-year. We saw strong demand across all key parts of this business, including energy efficiency, energy markets advisory, and our environmental and infrastructure services, which rebounded considerably in the period. These metrics reflect the strong demand for our services before any material benefits from recently enacted legislation, which we believe will be substantial in future years. For example, the IIJA provides federal funding to support utilities in developing and implementing flexible load management programs that deploy technologies to enhance grid flexibility. This will boost demand for ICF's expertise in flexible load management, behind the meter storage, managed EV charging and other programs. Also, demand for our energy advisory services is already so strong, will increase with the significant Inflation Reduction Act incentives for renewables and clean energy. Our environmental services are positioned to benefit from the increased need for project-related services tied to new infrastructure development. We further strengthened our capabilities in this area with the acquisition of Blanton & Associates in the Q3. We have worked with Blanton & Associates' highly specialized and experienced staff on several projects and have been impressed by their domain expertise in environmental regulatory compliance and permitting in the transportation, renewable energy, water, and resource management sectors. Also, as one of the most trusted partners to Texas state and local agencies, Blanton & Associates strengthens our presence in the state that is set to receive significant federal investment dollars under the IIJA. Our commercial energy business development pipeline was certainly $1.3 billion at the end of the Q3, a strong indication of the substantial opportunities on the horizon. Lastly, we are seeing continued growth in our climate services, an area in which we are a market leader with the ability to leverage the knowledge and experience of over 2,000 in-house climate, energy, and environment experts. The IIJA and the Inflation Reduction Act will both drive significant demand for our climate-related services across our federal and state and local government clients, as well as from utilities, developers, banks, and other market participants in 2023 and beyond. As we noted at our Investor Day this past May, we believe that the IIJA has expanded ICF addressable market by approximately $1 billion-$2 billion a year beginning in 2023. While it's still early to assess the potential of the IRA, it will certainly be a boost for us, as about 25% of our business is in climate and clean energy-related areas that will gain considerable funding from this legislation. In summary, our year-to-date results demonstrate how well aligned ICF domain expertise and expanded implementation capabilities are with market trends. After a record quarter of contract wins, our business development pipeline stood at $9 billion, comprised of increasingly larger opportunities in keeping with our greater scale. Now I'll turn the call over to Barry Broadus, our CFO, for a financial review. Barry? Thank you, John, and good afternoon, everyone. Our Q3 total revenue increased 18.7% to $467.8 million. Service revenue was up 21.7% to $335.4 million, inclusive of foreign currency exchange impacts, which reduced our gross revenues by approximately $4.2 million. These positive comparisons were led by double-digit growth in our government and commercial energy client categories. Pass-through revenues for the Q3 accounted for 28.3% of total revenue, which is within the range we expect for the full year of 2022. Gross margin on total revenue was 34.3% as compared to 35.5% in the Q3 of last year. Gross margin on our service revenue was up 47.8% compared to 50.8 in the Q3 of last year. Both metrics primarily reflect the impact of acquisitions that have lower gross margin but higher EBITDA margins, and the timing of award fees and revenue recognition on fixed-price contracts. We expect our gross margins to increase to about 50% in this year's Q4. As we have discussed on previous calls, we are seeing the benefit of our increased scale. We achieved a 190 basis point improvement in indirect expenses as a percentage of service revenue, which, on an adjusted basis, were 33%, which is down from 34.9 in the same period last year. In absolute dollars, indirect and selling expenses increased 18.4% year-over-year to $118.3 million. Our Q3 interest expense was $7.5 million, an increase of $4.9 million as compared to the same period last year, reflecting higher debt balances related to our recent acquisitions and higher interest rates. Approximately 30% of our debt is hedged against higher rates. As I mentioned in our last call, we were able to offset a significant portion of our higher interest expense through various cost efficiency initiatives. Q3 EBITDA was $42.2 million, 5.6% above $39.9 million in the Q3 of 2021. Excluding special charges, Adjusted EBITDA was $49.8 million, $13.6 million above the comparable quarter last year. Adjusted EBITDA margin on service revenue was 14.8%, in line with our expectations for full year 2022, and reflects continued high utilization, a favorable business mix, and the benefit of our increased scale. This compares to 15.9% reported in the Q3 of 2021. Net income totals $19.1 million, and diluted EPS was $1 per share, inclusive of $0.28 in tax-affected staff realignment, facility-related and M&A special charges. Q3 2022 net income and diluted EPS included a one-time tax benefit of approximately $3.8 million, or $0.20 per share. Net income in last year's Q3 was $20.4 million, and EPS was $1.07 per share. Non-GAAP EPS of $1.61 per share reflects a 22% increase from $1.32 per share in the Q3 of 2021, and is inclusive of the one-time $0.20 per share tax benefit. Now turning to cash flow. Our year-to-date operating cash flow is $6.6 million and reflects the impact of various timing factors which occurred during the Q3. More specifically, our Q3 cash flow was reduced by an additional payroll cycle, equating to approximately $25 million that occurred in the Q3 of 2022, which will benefit us in the Q4, as well as temporary delays in billing and collections associated with recent acquisitions due to the timing of integration activities, which equated to approximately $28 million in additional unbilled AR, which has since been billed and collected in Q4. We revised our full year cash flow guidance from a point estimate of $140 million to a range of $120 million-$140 million due to temporary billing and collection items, which include potential payment delays from a Puerto Rico customer and the impact of contracts with milestone billing terms associated with our recent acquisitions. Day sales outstanding for the Q3 were 87 days compared to 76 days in last year's Q3. We expect our DSOs to return to the mid to high 70s by year-end. Our year-to-date capital expenditures total $17.3 million, which includes capital expenses associated with our recent acquisition activities. Our net debt was $701.7 million at the end of September, which reflects our recent acquisitions and the temporary impacts to Q3 operating cash flow that I previously mentioned. Our net leverage ratio at the end of September was 3.81 on a pro forma basis. Based on our revised cash flow guidance, we expect to delever approximately 70 basis points by the end of 2022. As for our capital allocation priorities, we will pay down debt by returning value to shareholders by repurchasing shares and issuing quarterly dividends. During the nine months ended September 30th, 2022, we've repurchased 176,375 shares at an average price of $96.18 per share. As of September 30th, 2022, $111.9 million remained available for share repurchases under our approved share plan. In addition, today we declared a quarterly cash dividend of $0.14 per share, payable on January 12, 2023 to shareholders on record on December 9th, 2022. For modeling purposes, here are our full year 2022 expectations. Our depreciation and amortization expense is now expected to be in the range of $20 million-$21 million. Amortization of intangibles should be approximately $28 million. For the full year 2022, we expect interest expense to now range from $22 million-$23 million. Our full year tax rate will be approximately 24%. We expect a fully diluted weighted average share count of approximately 19.1 million. Our capital expenditures are now expected to be between $24 million-$26 million, $10 million below the midpoint of our previous guidance. With that, I'll turn the call back over to John for his closing remarks. Thank you, Barry. As you have noted from our earnings release, we have made revisions to our full year guidance to reflect our current expectations as well as the special charges we have incurred year-to-date. We narrowed our service revenue guidance and brought down the midpoint by $12.5 million to reflect year-to-date currency impact and the postponement of several projects in our international government business, as well as the exiting of certain Commercial Marketing service lines of business in Q3. We've reaffirmed our guidance for 2022 Adjusted EBITDA to service revenue margin of 14.8%, trued up the GAAP EPS range to include the severance, M&A, and facility-related charges incurred to date and the impact of this quarter's tax benefit and increased the midpoint of our non-GAAP EPS guidance. Based on these midpoints, we're now expecting 2022 service revenue growth of 16%, Adjusted EBITDA growth of 19.4%, and non-GAAP EPS growth of 20.3%. Metrics that we believe are at the top end of sector performance. With a backlog of $3.7 billion, that's approximately 50% funded, expectations for significant new awards in the Q4, and with a robust business development pipeline, we are confident that 2023 will be another year of strong performance for ICF. As we noted in our earnings release, ICF was ranked by Forbes in 2022 as one of the best management consulting firms, one of the best employers for diversity, and one of the best employers for women. We appreciate this recognition as ICF, like most companies, is facing challenges in attracting the talent we need to effectively execute on our growth strategy. I'm pleased to report that our headcount increased over 8% in the Q3, with about 40% of new hires added organically and the remainder coming through acquisitions. We are experiencing a record-setting hiring pace, and the results of our recent employee survey indicate a deep connection to ICF's strong values-based culture and flexibility. On our part, we continue to make sure that communication is flowing through the organization at all levels, that our benefits are aligned with important priorities, and that our leadership development programs provide growth opportunities across our diversified business disciplines. Operating with that, I'll now open the call for questions. Thank you. At this time, we will conduct our question-and-answer session. As a reminder, to ask a question, you will need to press star one one. That is star plus two one one. That'd be star one one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A. Our first question comes from Tobey Sommer with Truist Securities. Your line is open. Thank you. What do you think the impact on growth over the next three or four years will be of the climate bill, also known as the IRA? Thanks. Sure. I guess I'll start off by, you know, saying, Tobey, that as you know, as part of our Investor Day in May, we did lay out our long-term, you know, financial goals based on the five key growth drivers in front of us. As I noted in my remarks, that would, those were included high single-digit organic growth, you know, the expectation of double-digit total revenue growth with acquisitions and higher EBITDA growth than the level of our revenue growth. I think that with this background, I think as you also know, the Inflation Reduction Act passed after our Investor Day, I think does provide, as I said in my remarks, you know, potential significant opportunity for us on the clean energy and climate fronts. You know, I think those opportunities will develop, you know, in 2023 and should become material in 2024 beyond. It's, you know, it's hard to fully characterize those opportunities, but I think that has certainly can provide upside on top of the high single-digit growth we indicated at our Investor Day. You know, it has the potential to, you know, potentially take us to double-digit organic revenue growth. We'll have to see how it plays out over time. As I also know, you know, it does impact directly about 25% of our business, the Inflation Reduction Act and the funding within it. It's, you know, certainly a material opportunity for ICF. Thanks. How much of the contract awards in the quarter represented new work to the company, and do you have an expectation or any color on what you expect for ramps of that business? Yeah. I don't have the breakdown of new versus recompete wins in front of me. I would expect the majority, significant majority would be new contract wins. You know, obviously, the growth in the pipeline and the growth in our pipeline is being driven by, you know, the opportunities in our five growth areas. I think that's certainly the majority. I would expect about 65%-70% of the contract wins are new business. Thanks. What's the outlook for the low growth parts of the company, including Commercial Marketing, International Aerospace, and could you also, in the context of that answer, once you talk about the outlook, talk about what changed to cause you to lower and narrow the top line guidance range? Thanks. Yeah. I think what caused us to lower and narrow the guidance range for the remainder of this year was, you know, as I said in my remarks, I mean, it was the impact on the European business, both the currency issues and related to the right kind of projects given what's going on in Europe with the war in Ukraine and the overall economy. We reduced our guidance by about $12.5. I mean, I think about $10 of that was related to reductions in our European business and about $2.5 was related to revenues associated with shutting down, you know, the specific service lines and in Commercial Marketing services. That, I think, that's what drove the specific reductions. You know, I think in terms of your, you know, your question on the remainder of the business, you know, generally, I think we've discussed the remainder of the business we see as, you know, low single digit growth. Obviously, we haven't been achieving that in Commercial Marketing Services. It has not rebounded from pre-pandemic levels. Setting that aside, I think the rest of the business we generally see as, you know, low single digit growth opportunities as we look forward. Okay. I'll ask one more in, if I could. How are you thinking about interest expense as a headwind into 2023, and are there steps that you can take to mitigate that kind of expense growth beyond simply paying down debt? Yeah. Thanks for the question. Well, there's a number of things that, you know, we'd like to look at. One would be, you know, hedging more of the debt, and when, you know, the timing is best for the company, then we'll execute on that, you know? You know, I think paying down the debt is a critical component of that. We'll look to continue to, you know, improve our cash flows and, you know, use those cash flows to, you know, de-lever and, you know, reduce that debt amount. Yeah. I'll just add, Tobey, that I think as we've talked about, I mean, we've been using, you know, leaning forward and managing our facilities footprint and reducing our spending there, given that we'll be operating in a hybrid environment rather than working full-time in the office. That has. In doing so, we've reduced the investment and spend there, and we've been using those savings both to invest back in the business and to offset some of the, you know, interest related increases we've seen. I expect we'll continue to do that, to be able to do that going forward. I just would also, as Barry said, I mean, we do hedge, I think about 30%. As Barry said in his remarks, it's hedged, and it's hedged at less than 4% interest rate. We've also been leaned in on the hedging front too. Thank you. Thank you for your questions. Our next question comes from Mr. Marc Riddick of Sidoti, and your line is open. Go ahead, please. Good evening. Hello? Yeah. Oh, okay. I wanted to just sort of touch on the state and local spend and sort of the activity that we're seeing there and maybe some of the levers involved, as I wonder if you could talk a little bit about, you know, given the strength that we're seeing in federal and certainly there's infrastructure spend to be done on the state and local level eventually. I was wondering if you could talk a little bit about the timeframe that you're looking at for some of those projects, if you're getting sort of any sort of feedback from state and local customers to, you know, the timing of putting projects to work and moving forward there, as well as maybe if you give us a bit of an update on maybe some of the disaster work that you're doing. Thank you. Sure. You know, I think, as you know, our state and local business has essentially two major components split down the middle of our environmental monitoring and permitting work around large infrastructure projects and then our disaster management work. You know, I think that as we noted in our remarks, that state and local business, I think it's been growing double-digit. We achieved double-digit growth in that Q3. You know, I think the IIJA funding, as we said, kind of provides a $1 billion-$2 billion addressable market per year for ICF. I think a lot of that opportunity will be at state and local level, and will be around traditional infrastructure projects from bridges and roads and rail to energy, and water related infrastructure. I think that is a you know an important source of future opportunity for us. I think as we've discussed we really see that ramping up and that opportunity coming to begin to come to fruition in the second half of 2023. Then you know help to drive our growth in 2024 and beyond. That money will be spent over assuming 5+ years. That's certainly an important opportunity. I would look to it to really become material and you know for the company in the second half of 2023. We do have a robust pipeline on the IIJA front. Our overall state and local pipeline is at $1.1 billion. On the disaster recovery front, you know, again, I think we have very strong book of business and are executing well in both Puerto Rico and Texas. I think there will be additional opportunities for us over time from Hurricane Fiona and Puerto Rico. As I said in my remarks, we've already received a $10 million plus job to support Puerto Rico and some of the immediate response activities underway down there. I expect there will be opportunities from the Hurricane Ian that will play out here in the next six to nine months that we'll be tracking very carefully and, you know, could potentially be material in the second half of 2023 and beyond. You know, we remain quite bullish on both of those markets. They're part of our key growth drivers, and we certainly expect to have strong growth in state and local markets as we move forward. Great. If I could just add one more question. I just wanted to touch, maybe you could bring us up to speed on your thoughts on views on acquisition pipeline and following SemanticBits, your acquisition appetite seems to be quite healthy still, but I was wondering if you could sort of talk a little bit about maybe what the pipeline might look like now and maybe if it's changed over the last six months, given the recessionary concerns that are out there. Thanks. Yeah. Well, I think our focus, you know, right now is on integration and integrating the acquisitions we've completed here in the Q3. You know, SemanticBits was a significant acquisition for us and certainly helped greatly improve our positioning in the IT modernization front. Blanton & Associates was a small tuck in on the environmental front. You know, my expectation is we're gonna be laser focused on integration of those acquisitions here through the first half of next year. Associated with that, we're gonna be laser focused on, you know, paying down debt and carefully managing our cash flow. I don't see us leaning in or making any significant investments on the M&A front, at least through the end of this year and in the first half of next year. I think we'll be quite focused on successfully integrating the deals we've done and paying down our debt. In terms of the market, I would say that there's still opportunities in the federal government services market. There's still activity in energy markets. I think there's still quality companies out there. We obviously are out in the market. We have a pipeline. We'll stay close to the market. You know, honestly, we haven't seen a significant change in valuations in the market. As I say, I think our focus, Peter, for the next through the first half of next year will be on integrating the deals we've done and you know, focused on paying down our debt here, through the first half of next year. Very helpful. Thank you very much. Thank you, Mr. Riddick with Sidoti. That was our last call. I would now like to turn it back to John Wasson for closing remarks. Well, thanks for all of your participation today. We certainly look forward to meeting you at upcoming events. Thank you. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.