Revenue Performance - Revenue for the three months ended December 31, 2024, was $90.782 million, a decrease of 7.1% from $97.850 million in the same period of 2023[9]. - Total revenue for the three months ended December 31, 2024, was $90,782,000, down from $97,850,000 in the same period of 2023, representing a decrease of approximately 7%[56]. - Revenue from the Department of Health and Human Services for the three months ended December 31, 2024, was $41,948,000, compared to $44,297,000 in 2023, a decline of about 5%[56]. - The Company recognized $49,400,000 in revenue from time and materials contracts for the three months ended December 31, 2024, down from $54,789,000 in 2023, a decrease of approximately 10%[56]. - As of December 31, 2024, the Company reported total revenue of $90,782,000, a decrease of 7.2% compared to $97,850,000 for the same period in 2023[56]. Net Income and Earnings Per Share - Net income for the three months ended December 31, 2024, was $1.115 million, down 48.2% from $2.151 million in the prior year[9]. - The company reported a basic net income per share of $0.08 for the three months ended December 31, 2024, down from $0.15 in the prior year, a decline of 46.7%[9]. - Basic earnings per share for the three months ended December 31, 2024, was $0.08, compared to $0.15 for the same period in 2023[89]. - Net income for the three months ended December 31, 2024, was $1,115,000, compared to $2,151,000 for the same period in 2023, reflecting a decrease of approximately 48%[89]. - Basic earnings per share decreased to $0.08 for Q4 2024 from $0.15 in Q4 2023, indicating a decline of about 47%[89]. Assets and Liabilities - Total current assets increased to $67.574 million as of December 31, 2024, compared to $52.957 million at September 30, 2024, reflecting a growth of 27.7%[12]. - Total liabilities rose to $213.569 million as of December 31, 2024, compared to $204.249 million at September 30, 2024, an increase of 4.4%[12]. - Total current liabilities increased to $64,688 thousand from $53,242 thousand, an increase of 21.5%[12]. - Total shareholders' equity increased to $111.440 million as of December 31, 2024, compared to $110.132 million at September 30, 2024, a rise of 1.2%[12]. - Total assets increased to $325,009 thousand as of December 31, 2024, up from $314,381 thousand on September 30, 2024, representing a growth of 3.1%[12]. Cash Flow and Debt - Operating cash flow for the three months ended December 31, 2024, was negative at $(11.538) million, compared to positive cash flow of $5.071 million in the same period of 2023[15]. - Cash at the end of the period increased to $451,000 from $342,000 at the beginning of the period, representing a growth of 31.9%[15]. - The company had an unused borrowing capacity of $11.8 million as of December 31, 2024, from a secured revolving line of credit with a ceiling of $50.0 million[79]. - The secured revolving line of credit had an outstanding balance of $24.5 million as of December 31, 2024, compared to $12.1 million as of September 30, 2024, indicating an increase of approximately 102.5%[74]. - Net bank debt obligations rose to $162,218,000 as of December 31, 2024, from $149,374,000 as of September 30, 2024[70]. Stock-Based Compensation and Options - Total stock option expense for the three months ended December 31, 2024, was $193,000, a decrease of 68.9% from $620,000 in the same period of 2023[81]. - Unrecognized stock-based compensation expense as of December 31, 2024, was $5.841 million, down from $8.522 million in 2023[85]. - The company had 1,187 stock options outstanding as of December 31, 2024, down from 1,237 options at September 30, 2024, indicating a decrease of about 4%[86]. - The number of vested and exercisable stock options decreased to 1,127 as of December 31, 2024, from 1,177 at September 30, 2024[86]. - The company issued a total of 78,556 restricted stock units as of December 31, 2024, compared to 61,525 units in 2023[84]. Goodwill and Intangible Assets - Goodwill remained unchanged at approximately $138.2 million as of December 31, 2024[63]. - Intangible assets, net, decreased to $104,207,000 as of December 31, 2024, from $108,321,000 as of September 30, 2024[64]. - The Company performed a qualitative assessment of goodwill impairment and concluded no impairment loss was warranted as of December 31, 2024[38]. - As of December 31, 2024, total intangible assets, net amounted to $104.2 million, down from $108.3 million as of September 30, 2024, reflecting a decrease of approximately 3.1%[64]. - The total accumulated amortization increased from $56.2 million to $60.3 million, indicating an increase of approximately 7.1%[64]. Lease Obligations - Operating lease right-of-use assets increased to $7,255,000 as of December 31, 2024, from $6,681,000 as of September 30, 2024[57]. - Total operating lease liabilities as of December 31, 2024, were $16,107,000, up from $15,441,000 as of September 30, 2024[57]. - Future minimum lease payments total $19,314,000, with a present value of $16,107,000 after deducting imputed interest of $3,207,000[59]. - Cash paid for amounts included in the measurement of lease liabilities was $968,000 for the three months ended December 31, 2024, compared to $1,237,000 in 2023[60]. - The non-cash increase in lease liabilities from an operating lease extension was $1.4 million during the current period[57].
DLH(DLHC) - 2025 Q1 - Quarterly Report