ATLANTA, March 07, 2024 (GLOBE NEWSWIRE) -- DLH Holdings Corp. (NASDAQ:DLHC) ("DLH" or the "Company"), a leading Health IT provider of digital transformation and cybersecurity, science research and development, and systems engineering and integration, today announced that it has been awarded a contract to continue and expand its user-experience, technology refresh and IT services for the National Institutes of Health's ("NIH") National Cancer Institute ("NCI"). NCI, the largest institute under NIH, is the f ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are ...

It’s time to position for a penny stock surge!The DOW Jones Industrial Average is up by approximately 16% year-on-year, illustrating the momentum embedded in the stock market. However, the question now becomes: How can investors enhance their returns even further?An ideal way to proliferate returns is to cash out on some of the blue-chip names and allocate capital to penny stocks. Although risky in isolation, penny stocks can lower investment risk if added to a diversified portfolio while producing life-cha ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of a ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the st ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $97.9 million, an increase from $72.7 million in the prior year period, reflecting the addition of a strategic acquisition [13] - EBITDA for the first quarter was $11.1 million, up from $8.1 million last year, adjusted for corporate development costs [33] - Operating cash generated during the period was $5.1 million, compared to $8 million in fiscal 2023, primarily due to vendor payment timing [33] - Total debt at the end of the quarter was $174.4 million, with a plan to reduce it to between $153 million and $157 million by the end of the fiscal year [14][34] Business Line Data and Key Metrics Changes - Defense agencies accounted for approximately 17% of revenue, with expectations for substantial growth as the Department of Defense invests in health IT and digital transformation [11] - The Department of Health and Human Services (HHS) comprises 45% of the current business portfolio, while the Veterans Administration (VA) represents about 35% of revenue [29][30] Market Data and Key Metrics Changes - The federal government is operating under a continuing resolution, which has slowed decision-making on current contracts and new business opportunities [7] - The company is building a strong pipeline of high-value opportunities across its customer base, particularly in the federal military and civilian markets [8][9] Company Strategy and Development Direction - The company aims to support mission-critical programs that receive bipartisan support, focusing on areas like cybersecurity, data analytics, and IT modernization [31] - The integration of digital transformation capabilities with research expertise is seen as a unique platform to address a broader range of solutions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding funding flow for major agencies through the remainder of fiscal 2024, despite current budget uncertainties [27] - The company is focused on attracting and retaining talent to support client missions and has received a Great Place to Work certification [28] Other Important Information - The company continues to reduce debt and strengthen its balance sheet, with a focus on minimizing cash and income tax payments through favorable tax attributes [34] - The company is participating in an Emerging Technology Investor conference on February 7 [85] Q&A Session Summary Question: Revenue expectations for the quarter - Management acknowledged that revenue was lighter than expected due to continuing resolution headwinds but remains optimistic about the rest of the year [37][52] Question: Performance of VA contracts - Management noted that VA contracts have been extended into February, indicating a return to a normal operating cadence [39][40] Question: Bookings and proposal submission trends - Management indicated that while there have been delays, they are actively developing value propositions and expanding their pipeline [46][48] Question: Impact of budget uncertainty on growth - Management confirmed that budget uncertainty has affected large contracts, but they expect to see progress in the acquisition chain [54][62] Question: GRSi transaction and revenue contribution - Management stated that the GRSi acquisition has met expectations in enhancing capabilities, although market delays have impacted growth [72][78]

Part I — Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) For the three months ended December 31, 2023, DLH Holdings Corp. reported revenue of $97.9 million, a 34.5% increase year-over-year, primarily driven by a recent acquisition, with net income rising to $2.2 million and diluted EPS increasing to $0.15 [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Revenue for the three months ended December 31, 2023, increased by 34.5% to $97.9 million, leading to a net income of $2.2 million and diluted earnings per share of $0.15, despite higher operating costs and increased interest expense due to acquisition-related financing Consolidated Statements of Operations (Unaudited, in thousands) | Metric | Three months ended Dec 31, 2023 | Three months ended Dec 31, 2022 | | :--- | :--- | :--- | | **Revenue** | **$97,850** | **$72,738** | | Income from operations | $6,819 | $3,921 | | Interest expense | $4,658 | $1,830 | | **Net income** | **$2,151** | **$1,547** | | Net income per share - basic | $0.15 | $0.12 | | **Net income per share - diluted** | **$0.15** | **$0.11** | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets were $331.3 million, slightly decreasing from September 30, 2023, with total liabilities decreasing to $226.5 million primarily due to debt reduction, and shareholders' equity increasing to $104.8 million Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 (Unaudited) | Sep 30, 2023 | | :--- | :--- | :--- | | **Total current assets** | **$58,624** | **$62,401** | | Goodwill | $138,161 | $138,161 | | Intangible assets, net | $120,663 | $124,777 | | **Total assets** | **$331,330** | **$339,841** | | **Total current liabilities** | **$58,057** | **$64,787** | | Debt obligations - long-term | $151,870 | $155,147 | | **Total liabilities** | **$226,528** | **$237,402** | | **Total shareholders' equity** | **$104,802** | **$102,439** | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities for the three months ended December 31, 2023, was $5.1 million, a decrease from the prior year, while net cash used in financing activities was $5.0 million, primarily for debt repayment, resulting in a period-end cash balance of $0.1 million Cash Flow Summary (Unaudited, in thousands) | Cash Flow Activity | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,071 | $7,973 | | Net cash used in investing activities | $(174) | $(180,342) | | Net cash (used in) provided by financing activities | $(4,981) | $173,505 | | **Net change in cash** | **$(84)** | **$1,136** | | Cash - end of period | $131 | $1,364 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue concentration from U.S. government contracts, including 45.3% from HHS and 35.4% from VA, and confirm the company holds $168.0 million in net bank debt obligations while remaining in compliance with all loan covenants Revenue by Customer (in thousands) | Customer | Q1 FY2024 Revenue | Q1 FY2023 Revenue | | :--- | :--- | :--- | | Department of Health and Human Services | $44,297 | $27,305 | | Department of Veterans Affairs | $34,680 | $33,708 | | Department of Defense | $16,871 | $10,263 | | Other | $2,002 | $1,462 | | **Total** | **$97,850** | **$72,738** | - As of December 31, 2023, the company had total debt obligations of **$174.4 million**, consisting of a **$159.0 million** secured term loan and a **$15.4 million** balance on its secured revolving line of credit[65](index=65&type=chunk) - The company is in compliance with all loan covenants as of December 31, 2023, which include a minimum fixed charge coverage ratio and a maximum total leverage ratio[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 34.5% year-over-year revenue growth primarily to a December 2022 acquisition, with backlog at $653.5 million, key customers being HHS and VA, and EBITDA increasing to $11.1 million - The company delivers health and cyber readiness solutions for federal government customers, focusing on digital transformation, science research and development, and systems engineering[90](index=90&type=chunk) Backlog Summary (in millions) | Date | Total Backlog | Funded Backlog | | :--- | :--- | :--- | | December 31, 2023 | $653.5 | $132.3 | | September 30, 2023 | $704.8 | $169.9 | - Revenue for Q1 2024 increased by **$25.1 million** over the prior year, principally due to the December 2022 acquisition[119](index=119&type=chunk) Reconciliation of GAAP Net Income to EBITDA (Non-GAAP, in thousands) | Metric | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net income | $2,151 | $1,547 | | Interest expense, net | $4,658 | $1,830 | | Provision for income tax expense | $10 | $544 | | Depreciation and amortization | $4,253 | $2,402 | | **EBITDA** | **$11,072** | **$6,323** | [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk from its variable-rate debt through $105 million in floating-to-fixed interest rate swaps, estimating a 1.0% SOFR increase would raise annual interest expense by approximately $0.7 million on unhedged debt - The company utilizes floating-to-fixed interest rate swaps to manage interest rate risk, with a total notional amount of **$105 million** at December 31, 2023[150](index=150&type=chunk) - A hypothetical **1.0%** increase in the SOFR interest rate would increase the company's annual interest expense by approximately **$0.7 million**[151](index=151&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) As of December 31, 2023, the CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO evaluated disclosure controls and procedures as of the end of the period and found them to be effective at a reasonable assurance level[152](index=152&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter ended December 31, 2023, that materially affected, or are reasonably likely to materially affect, internal controls[154](index=154&type=chunk) Part II — Other Information [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any pending or threatened litigation that is reasonably likely to have a material adverse effect on its financial results or position - The Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows[155](index=155&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023 - The company states that there have been no material changes from the risk factors described in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company did not issue any unregistered securities, but 27,821 shares were surrendered by holders to cover the exercise price and tax obligations in connection with employee stock option exercises - In connection with the exercise of employee stock options during the quarter, holders surrendered a total of **27,821 shares** of common stock to the company to pay for the exercise price and related taxes[158](index=158&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications required by the Sarbanes-Oxley Act, and the financial statements formatted in iXBRL - Exhibits filed with the report include CEO and CFO certifications pursuant to SEC rules (**31.1, 31.2, 32**) and financial data in iXBRL format (**101.0**)[165](index=165&type=chunk)

DLH Holdings Corp. (NASDAQ:DLHC) Q4 2023 Results Conference Call December 7, 2023 10:00 AM ET Company Participants Chris Witty - Investor Relations Zach Parker - President and Chief Executive Officer Kathryn JohnBull - Chief Financial Officer Operator Good morning, and welcome to the DLH Holdings Corp. Fiscal 2023 Fourth Quarter Earnings Conference Call. All participants are in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 0-18492 DLH HOLDINGS CORP. (Exact name of registrant as specified in its charter) | New Jersey | 22-1899798 | | --- | --- | | (State or other ...