Revenue and Income - Revenue for the second quarter of fiscal 2024 was $101.0 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 $1.8 million, or $0.12 per diluted share, compared to $0.8 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 $3,963 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 $198,857 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 $10.2 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 $21,257 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 $5.9 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 $157.0 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 $10,301 million, compared to $6,862 million in the prior year, reflecting a 50.5% increase[23] - The company had a cash balance of $238 million at the end of the year, up from $137 million at the end of the previous year[23] - Total debt decreased to $170.8 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 $7,873 million, compared to $5,714 million in the previous year[23] - Interest expense for the six months ended March 31, 2024, was $8,848 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 $736.2 million as of March 31, 2024, up from $653.5 million at the end of the previous quarter, representing a sequential growth of over $80 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 $466 million in investing activities, significantly lower than $181,174 million in the prior year, indicating a strategic shift in investment approach[23]
DLH(DLHC) - 2024 Q2 - Quarterly Results