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DLH Reports Fiscal 2025 Second Quarter Results
DLHCDLH(DLHC) GlobeNewswire·2025-05-07 20:30

Core Insights - DLH Holdings Corp. reported a revenue of 89.2millionforthesecondquarteroffiscal2025,downfrom89.2 million for the second quarter of fiscal 2025, down from 101.0 million in the same period of fiscal 2024, primarily due to the impact of small business set-aside transitions [6][7] - The company reduced its debt by approximately 15.3millionduringthequarter,bringingtotaldebtto15.3 million during the quarter, bringing total debt to 151.7 million, supported by 14.5millioninoperatingcashgenerated[4][12]−AsignificantincreaseinbidactivitywasnotedfollowingtheenactmentofaContinuingResolutioninMarch,withover14.5 million in operating cash generated [4][12] - A significant increase in bid activity was noted following the enactment of a Continuing Resolution in March, with over 1.0 billion in new business proposals currently under evaluation [5] Financial Performance - Revenue for the second quarter of fiscal 2025 was 89.2million,adecreaseof89.2 million, a decrease of 11.8 million compared to 101.0millioninfiscal2024[6][30]−Operatingincomewasreportedat101.0 million in fiscal 2024 [6][30] - Operating income was reported at 5.1 million, with an operating margin of 5.7%, slightly down from 5.9% in the prior year [7][30] - Net income for the quarter was approximately 0.9million,or0.9 million, or 0.06 per diluted share, compared to 1.8million,or1.8 million, or 0.12 per diluted share, in the same quarter of fiscal 2024 [10][30] Debt Management - The company utilized 14.5millionofoperatingcashtoreducedebt,achievingatotaldebtreductionof14.5 million of operating cash to reduce debt, achieving a total debt reduction of 15.3 million during the quarter [4][12] - As of March 31, 2025, DLH's total debt stood at 151.7million,downfrom151.7 million, down from 167.0 million at the end of December 2024 [12][6] - The company anticipates converting 50-55% of EBITDA to debt reduction throughout the fiscal year [12] Business Outlook - The company expects a higher volume of decision-making in the third and fourth quarters, which could lead to growth opportunities into fiscal 2026 [5] - DLH is well-positioned to benefit from the President's fiscal year 2026 discretionary funding request, particularly in advanced engineering, digital transformation, data analytics, and cybersecurity [5] - The contract backlog as of March 31, 2025, was approximately 646.9million,downfrom646.9 million, down from 690.3 million as of September 30, 2024 [6][13]