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DLH(DLHC) - 2024 Q2 - Quarterly Results
DLHCDLH(DLHC)2024-05-01 20:36

Revenue and Income - Revenue for the second quarter of fiscal 2024 was 101.0million,aslightincreasefrom101.0 million, a slight increase from 99.4 million in fiscal 2023, reflecting growth in public health and IT services[5] - Net income for the second quarter was approximately 1.8million,or1.8 million, or 0.12 per diluted share, compared to 0.8million,or0.8 million, or 0.06 per diluted share, in the same period last year, indicating a net income margin increase from 0.8% to 1.8%[9] - Net income for the six months ended March 31, 2024, was 3,963million,anincreaseof68.53,963 million, an increase of 68.5% compared to 2,352 million for the same period in 2023[23] - Revenue for the six months ended March 31, 2024, reached 198,857million,representinga15.5198,857 million, representing a 15.5% increase from 172,155 million in the same period of 2023[27] EBITDA and Operating Performance - Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter were 10.2million,slightlydownfrom10.2 million, slightly down from 10.5 million in the prior-year period, representing 10.1% of revenue[10] - EBITDA for the six months ended March 31, 2024, was 21,257million,up26.521,257 million, up 26.5% from 16,809 million in the prior year[27] - EBITDA as a percentage of revenue for the six months ended March 31, 2024, was 10.7%, an increase from 9.8% in the prior year[27] - Income from operations was 5.9million,withanoperatingmarginof5.95.9 million, with an operating margin of 5.9%, slightly down from 6.0% in the prior-year period[7] Cash Flow and Debt Management - The company generated 5.2 million in operating cash during the second quarter, with expectations to reduce total debt to between 157.0millionand157.0 million and 153.0 million by the end of fiscal 2024[11] - Net cash provided by operating activities for the six months ended March 31, 2024, was 10,301million,comparedto10,301 million, compared to 6,862 million in the prior year, reflecting a 50.5% increase[23] - The company had a cash balance of 238millionattheendoftheyear,upfrom238 million at the end of the year, up from 137 million at the end of the previous year[23] - Total debt decreased to 170.8millionasofMarch31,2024,from170.8 million as of March 31, 2024, from 174.4 million as of December 31, 2023, reflecting the company's ongoing debt reduction strategy[5] - Cash paid for interest during the year was 7,873million,comparedto7,873 million, compared to 5,714 million in the previous year[23] - Interest expense for the six months ended March 31, 2024, was 8,848million,anincreaseof34.28,848 million, an increase of 34.2% from 6,595 million in the same period of 2023[27] Contracts and Business Development - Contract backlog increased to 736.2millionasofMarch31,2024,upfrom736.2 million as of March 31, 2024, up from 653.5 million at the end of the previous quarter, representing a sequential growth of over 80million[4]TheVACMOPprogramcontracthasaceilingvalueof80 million[4] - The VA CMOP program contract has a ceiling value of 200 million, with initial tasking through July 31, 2024, following the issuance of new contracts for services[5] - The company announced renewal contract awards with the National Cancer Institute and the National Institute on Drug Abuse, potentially increasing its presence through significant contract provisions for optional IT services[4] Costs and Expenses - General and administrative costs increased as a percentage of revenue to 11.6% from 10.8%, primarily due to higher legal costs associated with customer procurements[7] - The company utilized 466millionininvestingactivities,significantlylowerthan466 million in investing activities, significantly lower than 181,174 million in the prior year, indicating a strategic shift in investment approach[23]