Latest news with #DLHHoldingsCorp
Yahoo
09-05-2025
- Business
- Yahoo
DLH Holdings Corp (DLHC) Q2 2025 Earnings Call Highlights: Strategic Wins Amid Revenue Challenges
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DLH Holdings Corp (NASDAQ:DLHC) successfully reduced its debt by $15.3 million in the second quarter, ahead of schedule for mandatory payments through March 2026. The company generated strong operating cash flow of $14.5 million, improving its financial position. DLH Holdings Corp (NASDAQ:DLHC) secured a significant contract with the US Army's Medical Research and Development Command, highlighting its capabilities in advanced technology services. The company has a robust pipeline with more than $3.5 billion in opportunities, indicating potential for future growth. DLH Holdings Corp (NASDAQ:DLHC) is well-positioned to benefit from the current administration's focus on efficiency and cost-cutting, aligning with its strategic capabilities. Revenue for the second quarter decreased to $89.2 million from $101 million in the prior year, primarily due to the conversion of certain contracts to small business set-asides. EBITDA decreased to $9.4 million from $10.2 million last year, reflecting lower revenue levels. The company faces uncertainty due to potential impacts from government program terminations and budget cuts. There is ongoing pressure from small business set-asides, which may continue to affect revenue through the third quarter. Administrative delays and oversight from the new administration have slowed down contract awards, impacting the timing of revenue realization. Warning! GuruFocus has detected 4 Warning Signs with DLHC. Q: Can you provide an update on the revenue run rate for the CMOP contracts for the rest of the year? A: We expect the quarterly run rate to be around $23 to $25 million for the remaining locations. The six-month extension provides better assurance for revenue contribution in the third and fourth quarters. - Katherine John Bull, CFO Q: Were you involved in the NIH's long-term women's health study that was recently shut down, and how might NIH business be impacted by such efforts? A: We were not involved in that study. While the administration has taken a tough stance on grant-funded research, we believe the overall budgetary impact will be neutral to slightly positive for us. We continue to see demand for our services, including at NIH. - Zach Parker, CEO Q: How far along are we with the small business set-asides, and when will this stop being a significant factor in quarterly calls? A: We expect the impact of small business set-asides to continue through Q3, with revenue effects trailing into Q4. Some opportunities are still under pressure, but we anticipate stabilization by the end of the fiscal year. - Zach Parker, CEO Q: Can you provide an update on the $76 million Navy contract? A: The contract is progressing well, with continued expansion and phased staffing. We expect to level off with additional resources in the coming months, particularly in Norfolk, Virginia, and potentially in the Pacific region. - Zach Parker, CEO Q: Are you seeing more RFPs being released under large IDIQs, and how does this relate to the billion-dollar awards expected in the second half? A: Yes, we are seeing continued activity, particularly with the Oasis Plus IDIQ. However, the administration's increased oversight has slowed some processes, but we remain optimistic about future opportunities. - Zach Parker, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21-04-2025
- Business
- Yahoo
Despite Recent Gains, DLH Holdings Insiders Are Still Down US$85k
Insiders who bought US$155.3k worth of DLH Holdings Corp. (NASDAQ:DLHC) stock in the last year have seen some of their losses recouped as the stock gained 19% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$85k. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether. We've discovered 3 warning signs about DLH Holdings. View them for free. Over the last year, we can see that the biggest insider purchase was by President Zachary Parker for US$78k worth of shares, at about US$7.77 per share. That means that even when the share price was higher than US$3.52 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. DLH Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! Check out our latest analysis for DLH Holdings There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them). Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of DLH Holdings shares, worth about US$7.6m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing! The fact that there have been no DLH Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think DLH Holdings insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DLH Holdings. To that end, you should learn about the 3 warning signs we've spotted with DLH Holdings (including 2 which are potentially serious). But note: DLH Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
DLH Holdings Corp (DLHC) Q1 2025 Earnings Call Highlights: Navigating Revenue Challenges and ...
Revenue: $90.8 million for the first quarter, down from $97.9 million in the prior year period. EBITDA: $9.9 million, representing an EBITDA margin of 11% on revenue. Revenue Impact: $5 million contraction due to small business set aside conversions within the DOD portfolio. Operating Cash Flow: Used approximately $11.5 million during the quarter, compared to cash generation of $5.1 million in the prior year first quarter. Total Debt: Ended the quarter with $167 million, up from $154.6 million at the start of the fiscal year. Debt Reduction Strategy: Plan to utilize approximately 50% to 55% of EBITDA to pay down debt during the remainder of fiscal 2025. Warning! GuruFocus has detected 4 Warning Sign with DLHC. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DLH Holdings Corp (NASDAQ:DLHC) reported first quarter revenue of $90.8 million and EBITDA of $9.9 million, representing an EBITDA margin of 11%. The company secured a significant contract to provide C6 ISR and advanced IT services to the Navy, expanding its information warfare systems engineering portfolio. DLH Holdings Corp (NASDAQ:DLHC) has a strong pipeline of qualified bids, with several opportunities having contract values in excess of $100 million. The company is investing in organic growth, focusing on digital transformation, cybersecurity, research and development, and systems engineering capabilities. DLH Holdings Corp (NASDAQ:DLHC) anticipates strong cash flow in the fiscal second quarter, which will aid in debt reduction and support its key leveraging strategy. First quarter revenue decreased from $97.9 million in the prior year period, primarily due to small business set aside conversions and service delivery timing on key contracts. The company experienced a $5 million revenue contraction due to small business set aside conversions within its Department of Defense (DOD) portfolio. DLH Holdings Corp (NASDAQ:DLHC) used approximately $11.5 million of operating cash during the quarter, compared to cash generation of $5.1 million in the previous year's first quarter. The company faces headwinds from small business set aside conversions, which are likely to impact results in upcoming quarters. Total debt increased to $167 million from $154.6 million at the start of the fiscal year, reflecting short-term borrowings. Q: Can you provide a breakdown of the factors contributing to the revenue decline, particularly regarding small business set-asides? A: Kathryn JohnBull, CFO, explained that the most significant impact was from the unbundling of a DOD program due to small business set-asides. This resulted in a $5 million revenue contraction, primarily from low-margin subcontractor work. Additionally, there was a $1.5 million impact from winding down acquired small business contracts and another $1.5 million from exiting international work. Lastly, about $2 million in services expected in Q1 were delayed to Q2. Q: Are you seeing a steady stream of task orders from the large IDIQ contracts won in previous years? A: Zachary Parker, CEO, noted that some opportunities initially expected on other vehicles are now being bid on the recently awarded OASIS contract. This timing is fortunate as it allows DLH to prime these opportunities rather than subcontract, enhancing their competitive position. Q: Could you provide an update on the By Light cloud product? A: Zachary Parker, CEO, stated that By Light is being enhanced to expand its capabilities, particularly in secure environments for federal projects. The focus is on evolving the platform to meet the changing cybersecurity and public health security needs, leveraging AI and machine learning while maintaining security. Q: What is the impact of the continuing resolution on your business? A: Zachary Parker, CEO, mentioned that while there is noise around budget constraints, most of DLH's programs are already appropriated, ensuring continuity. The company's pipeline remains strong and supported across political lines, minimizing potential impacts from budgetary issues. Q: How are you addressing the increase in SG&A expenses? A: Zachary Parker, CEO, explained that the increase in SG&A is due to investments in organic growth, particularly in differentiating capabilities like cybersecurity and systems engineering. These investments are aimed at enhancing DLH's competitive position and ensuring future growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Associated Press
05-02-2025
- Business
- Associated Press
DLH Reports Fiscal 2025 First Quarter Results
ATLANTA, Feb. 05, 2025 (GLOBE NEWSWIRE) -- DLH Holdings Corp. (NASDAQ: DLHC) ('DLH' or the 'Company'), a leading provider of science research and development, systems engineering and integration, and digital transformation and cyber security solutions to federal agencies, today announced financial results for its fiscal first quarter ended December 31, 2024. First Quarter Highlights First quarter revenue was $90.8 million in fiscal 2025 versus $97.9 million in fiscal 2024, primarily reflecting small business conversions and service delivery timing. Earnings were $1.1 million, or $0.08 per diluted share, for the first quarter of fiscal 2025 versus $2.2 million, or $0.15 per diluted share, for the first quarter of fiscal 2024. Earnings before interest, taxes, depreciation and amortization ('EBITDA') were $9.9 million for the first quarter of fiscal 2025 as compared to $11.1 million for the first quarter of fiscal 2024. Total debt was $167.0 million as of December 31, 2024 versus $154.6 million as of September 30, 2024 reflecting the impact of short-term working capital needs. Contract backlog was $665.3 million as of December 31, 2024 versus $690.3 million as of September 30, 2024. Management Discussion 'Several factors impacted the year-over-year comparison of revenue in the Technology-Powered Solutions portion of our business,' said Zach Parker, DLH President and Chief Executive Officer. 'Most significantly, as we previously indicated, the prior administration implemented an Executive Order that compelled agencies to unbundle contracts during the recompete cycle, reserving portions of the scope for small businesses. During our first quarter, one of our recompetes was awarded, in part, to small business primes. It is not yet clear whether the new administration will extend this practice, which has the effect of disrupting the integration of related services and undermining operating efficiency. 'In addition, certain acquired contracts that were previously won as a small business transitioned during the latter quarters of fiscal 2024, impacting the comparability of year-over-year first quarter revenue. In addition, other small, non-strategic projects were winding down or fully completed and not recompeted during the interval since the prior-year's first quarter. Finally, the timing of service delivery on certain projects varied year-over-year. 'Navigating these challenges is a part of our ongoing transformation journey, to drive the business toward differentiated opportunities in advanced engineering, C5ISR, IT, and cyber. We are pleased to see early indications that our strategy is gaining traction. Our recent award to deliver advanced C5ISR services to the US Navy reached a fully staffed level in January 2025, reflecting an effective start-up of that program. More importantly, we expect to use this contract as the anchor point in a roadmap leading toward further expansion with this customer. Also, we recently announced the award of a strategic government-wide ID/IQ contract to deliver complex services and advanced solutions to various federal agencies – OASIS+. This award was a long-standing priority win and demonstrates our ability to provide solutions and services at the nexus of science and technology. Our expanded capabilities and expert workforce were the driving force allowing DLH to pursue and obtain access to this highly sought after vehicle. It is another 'seat at the table' by which we can bid on larger, more advanced programs going forward. There is no ceiling as to the size of task orders under its umbrella, and it is anticipated to be utilized by agencies across the federal marketplace, including many of our key customers within DoD and HHS. Our portfolio of innovative systems and digital transformation services remains in high demand, and we expect to leverage our unique position to drive growth in the quarters to come.' Results for the Three Months Ended December 31, 2024 Revenue for the first quarter of fiscal 2025 was $90.8 million versus $97.9 million in fiscal 2024, reflecting the aforementioned small business transition and the impact of service delivery timing. Income from operations was $5.6 million versus $6.8 million in the fiscal 2024 first quarter and, as a percentage of revenue, the Company reported operating margin of 6.2% in fiscal 2024 versus 7.0% in the prior-year period. Contract costs decreased as a percent of revenue during the quarter primarily due to an improvement in revenue quality as the Company on-boarded additional employees to support a new program with the Navy. The Company also saw general and administrative expenses rise $0.8 million year-over-year, from $7.7 million in fiscal 2024 to $8.5 million in fiscal 2025, reflecting investments in organic growth. Interest expense was $4.1 million in the fiscal first quarter of 2025 versus $4.7 million in the prior-year period, reflecting lower debt outstanding primarily due to the Company's use of cash flow generation to de-lever its balance sheet during the interim period. Income before income taxes was $1.5 million for the first quarter this year versus $2.2 million in fiscal 2024, representing 1.7% and 2.2% of revenue, respectively, for each period. For the three months ended December 31, 2024 and 2023, DLH recorded a $0.4 million and $0.01 million provision for income tax expense, respectively. The tax provision from the prior year's period was positively impacted from the exercise of non-qualifying stock options. The Company reported net income of approximately $1.1 million, or $0.08 per diluted share, for the first quarter of fiscal 2025 versus $2.2 million, or $0.15 per diluted share, for the first quarter of fiscal 2024. As a percentage of revenue for fiscal 2025 and 2024, net income was 1.2% and 2.2%, respectively. On a non-GAAP basis, EBITDA for the three months ended December 31, 2024 was approximately $9.9 million versus $11.1 million in the prior-year period, or 11.0% and 11.3% of revenue, respectively. Key Financial Indicators As of December 31, 2024 the Company had cash of $0.5 million and debt outstanding under its credit facilities of $167.0 million versus cash of $0.3 million and debt outstanding of $154.6 million as of September 30, 2024. The Company saw a sequential increase in debt due to delays in collection of accounts receivable that are not unusual in the beginning of the government's fiscal year. DLH expects to resolve that backlog within the second quarter of fiscal 2025 and return receivables back to a customary level. The Company anticipates that it will continue a trend of converting 50-55% of EBITDA to debt reduction over the course of the fiscal year. DLH has satisfied all mandatory term amortization payments through September 30, 2025. As of December 31, 2024 total backlog was approximately $665.3 million including funded backlog of approximately $135.2 million and unfunded backlog of $530.1 million. Conference Call and Webcast Details DLH management will discuss first quarter results and provide a general business update, including current competitive conditions and strategies, during a conference call beginning at 10:00 AM Eastern Time tomorrow, February 6, 2025. Interested parties may listen to the conference call by dialing 888-347-5290 or 412-317-5256. Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call. A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID 8450202. About DLH DLH (NASDAQ: DLHC), a Russell 2000 company, enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by federal customers, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,800 employees dedicated to the idea that 'Your Mission is Our Passion,' DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to innovative solutions to improve the lives of millions. For more information, visit Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management 'believes', 'expects', 'anticipates', 'plans', 'intends' and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or DLH's actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding estimates of future revenues, operating income, earnings and cash flow. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: the risk that we will not realize the anticipated benefits of acquisitions (including anticipated future financial performance and results); the diversion of management's attention from normal daily operations of the business and the challenges of managing larger and more widespread operations; the inability to retain employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; our ability to manage our debt obligations; compliance with bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see 'Risk Factors' in the Company's periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 as well as subsequent reports filed thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business. Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company does not assume any responsibility for updating forward-looking statements, except as may be required by law. INVESTOR RELATIONS Contact: Chris Witty Phone: 646-438-9385 TABLES TO FOLLOW DLH HOLDINGS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands except per share amounts) Three Months Ended December 31, 2024 2023 Revenue $ 90,782 $ 97,850 Cost of operations: Contract costs 72,382 79,081 General and administrative costs 8,456 7,697 Depreciation and amortization 4,307 4,253 Total operating costs 85,145 91,031 Income from operations 5,637 6,819 Interest expense 4,133 4,658 Income before provision for income taxes 1,504 2,161 Provision for income tax expense 389 10 Net income $ 1,115 $ 2,151 Net income per share – basic $ 0.08 $ 0.15 Net income per share – diluted $ 0.08 $ 0.15 Weighted average common stock outstanding Basic 14,386 14,032 Diluted 14,563 14,796 DLH HOLDINGS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands except par value of shares) December 31, 2024 September 30, 2024 (unaudited) ASSETS Current assets: Cash $ 451 $ 342 Accounts receivable 64,270 49,849 Other current assets 2,853 2,766 Total current assets 67,574 52,957 Goodwill 138,161 138,161 Intangible assets, net 104,207 108,321 Operating lease right-of-use assets 7,255 6,681 Deferred taxes, net 5,465 6,245 Equipment and improvements, net 2,189 1,830 Other long-term assets 158 186 Total assets $ 325,009 $ 314,381 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 18,723 $ 25,290 Debt obligations – current, net of deferred financing costs 27,595 12,058 Accrued payroll 15,123 12,848 Operating lease liabilities – current 2,753 2,652 Other current liabilities 494 394 Total current liabilities 64,688 53,242 Long-term liabilities: Debt obligations – long-term, net of deferred financing costs 134,623 137,316 Operating lease liabilities – long-term 13,354 12,789 Other long-term liabilities 904 902 Total long-term liabilities 148,881 151,007 Total liabilities 213,569 204,249 Shareholders' equity: Common stock, $0.001 par value; 40,000 shares authorized; 14,386 and 14,386 shares issued and outstanding at December 31, 2024 and September 30, 2024, respectively 14 14 Additional paid-in capital 100,463 100,270 Retained earnings 10,963 9,848 Total shareholders' equity 111,440 110,132 Total liabilities and shareholders' equity $ 325,009 $ 314,381 DLH HOLDINGS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) Three Months Ended December 31, 2024 2023 Operating activities Net income $ 1,115 $ 2,151 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 4,307 4,253 Amortization of deferred financing costs charged to interest expense 457 642 Stock-based compensation expense 193 620 Deferred taxes, net 780 (6) Changes in operating assets and liabilities Accounts receivable (14,421) 3,542 Other assets (661) 510 Accounts payable and accrued liabilities (6,567) (7,397) Accrued payroll 2,275 1,909 Other liabilities 984 (1,153) Net cash (used in) provided by operating activities (11,538) 5,071 Investing activities Purchase of equipment and improvements (552) (174) Net cash used in investing activities (552) (174) Financing activities Proceeds from revolving line of credit 59,910 69,831 Repayment of revolving line of credit (47,509) (64,026) Repayments of debt obligations — (10,378) Payments of deferred financing costs (202) — Proceeds from issuance of common stock upon exercise of options and warrants — 261 Payment of tax obligations resulting from net exercise of stock options — (669) Net cash provided by (used in) financing activities 12,199 (4,981) Net change in cash 109 (84) Cash – beginning of year 342 215 Cash – end of year $ 451 $ 131 Supplemental disclosures of cash flow information Cash paid during the period for interest $ 3,594 $ 3,972 Cash paid during the period for income taxes $ 32 $ — Supplemental disclosures of non-cash activity Common stock surrendered for the exercise of stock options $ — $ 244 Lease liability recognized to acquire a right of use asset $ 1,377 $ — Non-GAAP Financial Measures The Company uses EBITDA and EBITDA as a percent of revenue as supplemental non-GAAP measures of performance. We define EBITDA as net income excluding (i) depreciation and amortization, (ii) interest expense, net and (iii) provision for income tax expense. EBITDA as a percent of revenue is EBITDA for the measurement period divided by revenue for the same period. These non-GAAP measures of performance are used by management to conduct and evaluate its business during its review of operating results for the periods presented. Management and the Company's Board utilize these non-GAAP measures to make decisions about the use of the Company's resources, analyze performance between periods, develop internal projections and measure management performance. We believe that these non-GAAP measures are useful to investors in evaluating the Company's ongoing operating and financial results and understanding how such results compare with the Company's historical performance. EBITDA is not a recognized measurement under accounting principles generally accepted in the United States, or GAAP, and when analyzing our performance investors should (i) evaluate adjustments in our reconciliation to the nearest GAAP financial measures and (ii) use non-GAAP measures in addition to, and not as an alternative to, measures of our operating results as defined under GAAP. Reconciliation of GAAP net income to EBITDA, a non-GAAP measure (in thousands): Three Months Ended December 31, 2024 2023 Change Net income $ 1,115 $ 2,151 $ (1,036) (i) Depreciation and amortization 4,307 4,253 54 (ii) Interest expense, net 4,133 4,658 (525) (iii) Provision for income tax expense 389 10 379 EBITDA $ 9,944 $ 11,072 $ (1,128) Net income as a % of revenue 1.2 % 2.2 % (1.0)% EBITDA as a % of revenue 11.0 % 11.3 % (0.3)% Revenue $ 90,782 $ 97,850 $ (7,068)
