Revenue Performance - Second quarter revenue was $89.2 million in fiscal 2025, down from $101.0 million in fiscal 2024, reflecting a decrease of approximately 11.8% due to small business conversions[6] - Revenue for the six months ended March 31, 2025, was $179,994 million, down from $198,857 million in the same period of 2024, a decrease of 9.5%[29] Earnings and Profitability - Earnings for the second quarter were $0.9 million, or $0.06 per diluted share, compared to $1.8 million, or $0.12 per diluted share in the same quarter of fiscal 2024, representing a decline of 50%[10] - EBITDA for the second quarter was $9.4 million, down from $10.2 million in the prior-year period, reflecting a decrease of approximately 7.8%[11] - EBITDA for the six months ended March 31, 2025, was $19,324 million, compared to $21,257 million for the same period in 2024, a decline of 9.1%[29] - The company reported an operating margin of 5.7% for the second quarter of fiscal 2025, slightly down from 5.9% in the prior-year period[8] - EBITDA as a percentage of revenue remained stable at 10.7% for the six months ended March 31, 2025, compared to 10.7% for the same period in 2024[29] Cash Flow and Liquidity - The company generated $14.5 million of operating cash during the quarter, driven by strong accounts receivable collections[4] - Cash at the end of the period decreased to $196 million from $238 million, reflecting a decline of 17.6%[24] - Net cash provided by operating activities for the six months ended March 31, 2025, was $2,965 million, down from $10,301 million in the same period of 2024, a decrease of 71.2%[24] - The company reported a net change in cash of $(146) million for the six months ended March 31, 2025, compared to an increase of $23 million in the same period of 2024[24] Debt and Liabilities - Total debt was reduced by $15.3 million during the quarter, bringing it to $151.7 million as of March 31, 2025, compared to $167.0 million at the end of December 2024[4] - Total current liabilities decreased from $53,242 million on September 30, 2024, to $49,917 million on March 31, 2025, a reduction of approximately 6.2%[22] Assets and Equity - Total assets decreased from $314,381 million on September 30, 2024, to $306,607 million on March 31, 2025, a decline of approximately 2.5%[22] - Total shareholders' equity increased from $110,132 million on September 30, 2024, to $112,849 million on March 31, 2025, an increase of 2.5%[22] Contract and Business Outlook - Contract backlog as of March 31, 2025, was approximately $646.9 million, down from $690.3 million as of September 30, 2024[6] - The company has a robust pipeline with over $1.0 billion in new business proposals currently being evaluated[5] - The company anticipates converting 50-55% of EBITDA to debt reduction over the fiscal year[12] General and Administrative Expenses - General and administrative expenses decreased by $3.1 million year-over-year, from $11.7 million in fiscal 2024 to $8.6 million in fiscal 2025[8]
DLH(DLHC) - 2025 Q2 - Quarterly Results