DLH(DLHC) - 2025 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended March 31, 2025, was $89.2 million, a decrease of 11.7$101.0 million for the same period in 2024[9] - Revenue for the six months ended March 31, 2025, was $179,994,000, down 9.5$198,857,000 in the prior year[9] - Total revenue for the three months ended March 31, 2025, was $89,212 thousand, a decrease of 11.7$101,007 thousand for the same period in 2024[58] - Revenue from the Department of Health and Human Services for the six months ended March 31, 2025, was $86,745 thousand, down from$91,636 thousand in 2024, a decline of about 5.0%[58] Net Income and Earnings Per Share - Net income for the six months ended March 31, 2025, was $1.99 million, down 49.8$3.96 million for the same period in 2024[9] - The company reported a net income per share of $0.06 for the three months ended March 31, 2025, compared to$0.13 for the same period in 2024[9] - For the three months ended March 31, 2025, net income was $878,000, a decrease of 51.5$1,812,000 for the same period in 2024[9] - Basic net income per share for the six months ended March 31, 2025, was $0.14, compared to$0.28 for the same period in 2024, reflecting a 50% decrease[9] - The net income for the six months ended March 31, 2025, was reported at $878,000, a decrease from$1,992,000 for the same period in the previous year, indicating a decline of about 56%[18] Operating Costs and Expenses - Total operating costs for the three months ended March 31, 2025, were $84.1 million, a decrease of 11.6$95.1 million in the same period of 2024[9] - Total lease costs for the six months ended March 31, 2025, were $1,949 thousand, compared to$1,798 thousand for the same period in 2024, an increase of approximately 8.4%[60] - Stock-based compensation expense for the three months ended March 31, 2025, totaled $533,000, down from$954,000 in the same period of 2024, representing a decline of 44.1%[83] Assets and Liabilities - Total assets as of March 31, 2025, were $306.6 million, a decrease from$314.4 million as of September 30, 2024[12] - The company had total liabilities of $193.8 million as of March 31, 2025, compared to$204.2 million as of September 30, 2024[12] - Current assets increased to $55,038,000 as of March 31, 2025, from$52,957,000 as of September 30, 2024[12] - Total liabilities decreased to $193,758,000 as of March 31, 2025, compared to$204,249,000 as of September 30, 2024[12] Cash Flow and Operating Activities - Cash at the end of the period was $196,000, down from$342,000 at the beginning of the period[14] - The company provided $2.97 million in net cash from operating activities for the six months ended March 31, 2025, down from$10.3 million for the same period in 2024[14] - The company reported a net cash provided by operating activities of $2,965,000 for the six months ended March 31, 2025, compared to$10,301,000 in the prior year[15] Shareholders' Equity - Shareholders' equity increased to $112.8 million as of March 31, 2025, from$110.1 million as of September 30, 2024[12] - As of March 31, 2025, the total shareholders' equity increased to $112,849,000 from$110,132,000 as of September 30, 2024, reflecting a growth of approximately 2.5%[18] - The balance of retained earnings increased to $11,840,000 as of March 31, 2025, compared to$9,848,000 as of September 30, 2024, representing a growth of approximately 20.2%[18] Goodwill and Intangible Assets - The company performed a goodwill impairment evaluation and determined that its fair value exceeded its book value, indicating no impairment[38] - The balance of goodwill remained unchanged at approximately $138.2 million as of March 31, 2025, and September 30, 2024[65] - Total intangible assets, net decreased to$100,093,000 as of March 31, 2025, from $108,321,000 as of September 30, 2024, a decline of approximately 7$137,750,000 as of March 31, 2025, with a fixed interest rate of 4.1%[75] - Interest expense for the three months ended March 31, 2025, was $3,877,000, a decrease of 7.5$4,190,000 for the same period in 2024[73] - Interest expense for the six months ended March 31, 2025, was $8,010,000, a decrease from$8,848,000 in the same period of 2024[9] Compliance and Regulations - The company is in compliance with all loan covenants and restrictions as of March 31, 2025[77] - The company has not identified any significant related party transactions for the six months ended March 31, 2025[96] Stock-Based Compensation - The company granted 312,906 restricted stock units during the six months ended March 31, 2025, compared to 169,544 in the same period of 2024[85] - Unrecognized stock-based compensation expense was $4,876,000 as of March 31, 2025, down from$7,385,000 in 2024, indicating a decrease of 34.1%[89]