Welcome to the ICF International Third Quarter 2014 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded on Thursday, November 6, 2014, and cannot be reproduced or rebroadcast without permission from the company. And now I would like to turn the program over to Douglas Beck, Senior Vice President, Corporate Development. Please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining us to review ICF's third quarter 2014 performance. With us today from ICF International are Sudhakar Kesavan, Chairman and CEO; John Wasson, President and COO; and James Morgan, CFO. 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 November 6, 2014, 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 our CEO, Sudhakar Kesavan, to discuss the third quarter 2014 performance. Sudhakar?

Thank you, Doug, and good afternoon, everyone. We appreciate your participation in today's conference call to discuss our third quarter results and outlook for the rest of 2014, heading into 2015. This was an excellent quarter for ICF across all key metrics. Revenues were solidly ahead of last year, up 8.5%. And on an adjusted basis, operating income and diluted earnings per share increased 13.5% and 10.7%, respectively, significantly outpacing revenue growth. At the same time, we saw strong growth in our 2 major markets, which together accounted for 90% of total third quarter revenue. Revenues from health, social programs and consumer financial increased 13% year-on-year. And energy, environment and infrastructure was up 9%. These growth rates demonstrate ICF's competitive advantages, thanks to our recognized domain expertise, which we continue to build upon by adding to our senior leadership and leveraging our successful outcome. Domain expertise has also been a key differentiator for us in winning business and this was another highlight of our third quarter performance. Record contract awards, which totaled $618 million, were up 29% year-on-year, bringing sales wins for the first 9 months of this year to $1.04 billion, 10% ahead of the comparable period last year. Overall, our third quarter performance was strong, reflective of how much more diversified our revenue base has become over the last several years, even before including the Olson acquisition, which closed yesterday. Importantly, our year-to-date pro forma commercial revenue post the Olson acquisition represents approximately 36% of total revenue, which increases our exposure to a higher-margin commercial business. And U.S. federal, state and local and international government account for 45%, 10% and 9%, respectively, which gives us a considerable visibility and positions us well to benefit from additional government spending in the areas where we have a competitive edge. With…

Thank you, Sudhakar, and good afternoon. We indeed had an excellent sales quarter driven by record federal government contract wins. Our U.S. government third quarter book-to-bill ratio was 3.4x, comprised of a high proportion of new business, which strengthened our backlog in key areas such as public health, environment and information and digital technology. In the area of digital services and strategic communications, we won an important engagement with the National Cancer Institute at the National Institutes of Health to provide comprehensive support for their tobacco cessation efforts, valued up to $100 million over 5 years. This work is a great example of combining our domain expertise, in this case, behavioral health and tobacco cessation specialties, with our communications and digital media capabilities to address highly targeted populations and their social networks, such as teen smokers, pregnant smokers and veterans. By engaging these hard-to-reach populations via social media, we are able to tap into community support structures to reduce smoking based on the latest behavioral research. This sizable contract demonstrates the importance of cutting-edge stakeholder engagement in fulfilling an agency mission. And we expect this approach to become an increasingly important part of federal programs in the future. Another key technology win in the federal space that highlights the important role of our health domain expertise is a $100 million 5-year blanket purchase agreement to continue our work with the National Institutes of Health in providing data collection and analysis and multichannel information dissemination and outreach initiatives to users throughout the federal government and medical community. Under this agreement, NIH depends on ICF for the development of important health-focused digital and IT initiatives in such areas as U.S. HIV/AIDS guidelines and the National Cancer Institute's cancer treatment summaries and to support the dissemination of rare and genetic disease information. In…

Thanks, John, and good afternoon, everyone. As mentioned previously, we reported solid year-on-year comparisons in the third quarter. Total revenue was $264.8 million or 8.5% above last year's third quarter. Organic revenue growth, which is total revenue excluding acquisitions completed within the last 12 months, was up 3.2% year-on-year, the highest organic revenue performance we have had all year. This growth was primarily driven by our work supporting Hurricane Sandy recovery efforts and revenues from commercial digital services in energy business areas. Third quarter 2014 gross profit margin was 37.3% an increase over the 36.9% reported in the third quarter of last year. Indirect and selling expenses for the third quarter were $74.7 million. The $7.1 million increase in indirect and selling expenses was primarily due to the additions of Mostra and CITYTECH, and included approximately $800,000 in acquisition costs related to the Olson transaction. Operating income was $18.5 million for this year's third quarter, up 8% year-over-year. Adjusted to exclude acquisition and severance costs related to staff realignments that were announced last quarter, operating income was $19.6 million, 13.5% above the similar period last year and significantly ahead of our revenue growth rate for the third quarter. Reported EBITDA was $24 million for the quarter, 7.3% higher than the $22.4 million reported in last year's third quarter. Adjusted EBITDA, which excludes severance and acquisition related costs, was $25.1 million for the quarter or 11.6% higher than the $22.5 million of adjusted EBITDA reported in last year's third quarter. Adjusted EBITDA margin increased to 9.5% from 9.2% in the third quarter of 2013. Depreciation and amortization expense was $3.2 million, up from $2.8 million in 2013's third quarter, primarily due to the acquisition of Mostra and CITYTECH earlier this year. Amortization of intangibles was $2.3 million for the third quarter…

Thank you, James. We expect our fourth quarter comparisons to benefit from similar trends to those of the third quarter and the fact that last year's fourth quarter had the impact of the federal government shutdown. Also, we will have a roughly 2-month contribution from our Olson acquisition, which should add between $20 million and $25 million in revenue. For the year, we are reaffirming our diluted EPS guidance range of $2.12 to $2.20, exclusive of additional acquisition-related charges. On an adjusted basis, excluding acquisition -- Olson acquisition expenses and year to date severance costs, adjusted earnings per share for 2014 are anticipated to be between $2.19 and $2.27 on revenues of between $1.04 billion and $1.06 billion. As you know, we believe we are entering 2015 with positive momentum in terms of revenue and earnings growth. Higher-margin commercial business will account for a significantly greater percentage of our total revenues. And the Olson acquisition alone is expected to add from 80 to 100 basis points to our EBITDA margins beginning in the first quarter of 2015. We will be more precise in providing full year 2015 revenue and earnings per share guidance when we release our full year 2014 figures by early next year. At this point, operator, I would like to open the call to questions.

[Operator Instructions] And our first question comes from Bill Loomis with Stifel. William R. Loomis - Stifel, Nicolaus & Company, Incorporated, Research Division: Just on the Olson acquisition, any -- what other costs besides the $12 million in amortization and the higher expense should we be factoring into '15, when we try and figure out accretion? Is there going to be any -- what's the retention, for example, cost going to be for 2015?

I think the way to think about it, I mentioned that we have roughly $15 million, Bill, in total retention costs. And those will be amortized or expensed over a 4-year period. So you can, for estimate purposes, I think you can kind of straight-line that for the most part. William R. Loomis - Stifel, Nicolaus & Company, Incorporated, Research Division: Okay. And then on an earlier comment, you mentioned the focus is going to be -- Sudhakar said the focus is going to be on improving profitability on international. Can you talk a little more about that, what you're going to do and how quickly that could come about?

Sure, Bill. This is John Wasson. I think it's I'd say 2 things. I think we're expecting it to make improvement for 2015. And I think it will occur in 2 ways. One is we expect to improve utilization in the Europe and Asian business as we continue to grow. And as you know, we've had quite robust organic growth there. So part of it is raising the utilization as we go into next year with the larger longer-term contracts we've won. I think we've also closed down several offices that were unprofitable or in challenging environments, Russia and other locations. And so part of the strategy is to shut down small offices where we don't have scale. And the third thing I note is that we've had several expats over in Europe for the last 2 or 3 years under expat agreements that we'll be bringing back at some point in 2015. And so we won't be incurring those costs. We have -- we do believe we hired and trained a strong executive team in Europe. So we don't -- we can bring those expats back. And so I think those are the 3 things we're doing to raise profitability for 2015.

Our next question comes from Tim McHugh with William Blair. Timothy McHugh - William Blair & Company L.L.C., Research Division: Just on the federal government side, given the size of the contract awards, I guess -- I know you made the statement you're confident it won't decline next year. But just anecdotally, how different do you feel today versus -- it was just a quarter or 2 ago that the revenue was really coming in much lower than you thought. And so did the environment really change that much? Is it the difference between contracting activity versus your ability to recognize revenue on your contracts? I guess can you just bridge the message or I guess overall view of the federal government today versus 3 to 6 months ago?

Yes, Tim. I think that over this past year, we basically have certainly won a lot of work in our main areas. And over this past year, we had -- where we had certain marginal contracts, especially at DHS, where we didn't have scale, we didn't have major positioning in certain offices, we either got small business set-aside contracts, which therefore we lost some -- half the revenue, or we basically just lost the contract based on LPTA. So I think that we believe that our marginal contracts have declined significantly. And therefore, going forward, a lot of our work is in areas where we have scale and where we have domain expertise and where we have knowledge. And the backlog we built up now in these areas is fairly substantial. So the reason we think that we can maintain our revenues going forward is that it depends a lot on, obviously, government spending next year. Looking at the backlog, though, you would think that you would increase your federal government revenue, which could potentially happen. But given the uncertainty in spending patterns, we believe that we have enough backlog that we can maintain, at least, the revenue going forward for federal government in [indiscernible]. Timothy McHugh - William Blair & Company L.L.C., Research Division: Okay. And then just secondly, the -- can you give some comments on the reaction, as you've heard from Olson, I guess now -- the Olson employees beyond the kind of -- I'm sure -- your reaction would be from the senior people that you've been involved with along the way. But I guess maybe the good and the bad that you've heard as people have heard the news of being acquired by ICF in the last couple of weeks here?

I've heard from a lot of the employees. I mean, they all are quite excited, I think, generally about it. I haven't -- I don't, if any are concerned, but they don't tell me any bad news, but I haven't heard anything negative from anyone. I even heard from an Olson client, who basically uses one of their Loyalty Programs, who was quite impressed with the way they implement it, because it turns out that I know someone he knows and when he read the press release, he decided to call me. So I think we -- my general sense has been very positive and they are all very excited. If you looked at the Olson press release, when we issued it about 2 weeks ago, the head of Olson, John Partilla, used the word thrilled, which you will never see me use, so -- in any press release. So he is really thrilled about being part of us. So I think that's been infectious across the whole company. So I think that generally we are feeling quite good about the acquisition. And I think we've had some situations where even as we speak, we are bidding jointly for a utility for some digital agency work. And we are also working on some projects in California for a client in the transportation arena. So I think that there's a lot of enthusiasm and it's been really quite, quite good. All the -- all hands meetings which we had, where we visited all the offices, are very positive. I was in Minneapolis, John was in Chicago and Isabel was in Toronto and David Speiser, our head of strategy, went to Austin. And they're all very enthusiastic. We had this multi-video link to all the offices. It was all very technologically sophisticated and exciting. So I think generally, it was very positive.

[Operator Instructions] And our next question is from Tobey Sommer with SunTrust.

This is actually Frank in for Tobey. I wanted to ask a little bit about energy efficiency opportunities in California, kind of what you're seeing there, the progression of what may develop and any timeline or framework you could give?

Sure.

Go ahead.

Okay. This is John Wasson. I think we're still expecting a wave of energy efficiency RFPs in California. I think it's going to be second half towards the late -- latter part of 2015. We have north of $120 million of opportunities in California in our pipeline for energy efficiency. And so I think we're still quite opportunistic -- optimistic. I think there's significant opportunity there. It is going to be more of a second half of 2015 going into 2016 play in California.

Okay, that's helpful. And then also wanted to ask, there are nice bookings in the quarter and it was great to get the breakout of commercial. Can you talk a little bit about the seasonality of kind of commercial versus government and bookings going into Q4, and maybe a little bit longer term, in terms of what seasonality, you think there's any changes there?

Let me just -- these -- I don't know that I can address the seasonality of bookings. And I can tell you the seasonality of the business. Our seasonality of the business traditionally has been Q1 is low, Q2 is higher, Q3 is the highest and Q4 is like Q2. And we found that Olson also has a very similar seasonality. So I think that the seasonality for Olson is going to be similar to what [indiscernible] where Q1 is traditionally slower, Q2 up, 3 and then down. So -- and as you know, the third quarter with the government is always the highest, because the government fiscal year ends September 30. So I think that in terms of just the overall seasonality, it doesn't change very much with the acquisition.

Okay, that's helpful. And then lastly, I apologize, could you just repeat what you said about amortization and depreciation in 2015?

Yes. What I was referring specifically to Olson or referring to the entire company as a whole?

Olson and the entire company as a whole.

Okay. So what I had said is that for the remaining part of 2014, depreciation and amortization expense of $13.3 million to $13.8 million and then having amortization of intangibles of $10.3 million to $10.8 million. That's for the remaining part of 2014, inclusive of Olson. And then the comment I made regarding Olson in 2015 is that we expect to have roughly $12 million of amortization expense associated just with Olson in 2015.

We have no further questions at this time. I will now turn the call over to management for closing remarks.

Well, thank you. I just -- before closing, I just wanted to answer a question, which I don't -- someone asked at the last call, on the Olson call, which was, in the top 10 Olson clients, how many are agency of record clients, et cetera. So I just wanted to clarify that. In the top 10 clients of Olson, 4 we have general agency of record for 4 of the top 10 clients, and 2, an additional 2 clients with the agency of record for loyalty and CRM. So we have 6 agency of record relationships in the top 10 clients. I just want to clarify that. And thank you for participating in today's call. We look forward to keeping you up-to-date on our progress and we will talk to you early next year. Thank you.