DLH(US:DLHC)2020-12-07 22:29Financial Performance and Key Metrics - The company reported revenue of $50.7 million for Q4 2020 and $209.2 million for the fiscal year, representing a year-over-year increase of over 30% [10][11] - Operating income for the year was $13.5 million, with earnings of $0.54 per share, and EBITDA rose to $20.5 million from $13.9 million the previous year [11] - Cash generated from operations was $19.5 million, which was used to pay down $19 million of debt prior to the acquisition of Irving Burton Associates [12][31] Business Line Performance - Revenue for the Health and Human Services segment was down approximately 14% year-over-year, while the VA logistics segment experienced significant growth [28][40] - The company anticipates organic revenue growth in fiscal 2021 due to new COVID-19 contracts and task order timing [27] Market Data and Key Metrics - The company has a record backlog of nearly $700 million, which is expected to provide a strong foundation for future growth [13][30] - The backlog grew over 66% in fiscal 2020, driven by recent acquisitions and organic growth from recompete contracts [30] Company Strategy and Industry Competition - The company is focused on expanding its capabilities in data analytics, artificial intelligence, and secure systems, positioning itself as a leader in healthcare-related technology solutions [25][26] - The management believes that healthcare-related spending will be prioritized under the new administration, leading to greater opportunities for growth [16][17] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ongoing pandemic and its impact on business, noting that the company is well-positioned to assist the government in addressing COVID-19 challenges [18][19] - The company expects to see a rebound in business as restrictions are lifted, although it anticipates some delays in new work due to the continuing resolution [42][44] Other Important Information - The company completed the acquisition of Irving Burton Associates for $32 million, enhancing its health IT solutions and credentials [11] - The integration of IBA is progressing well, with no major issues reported [52] Q&A Session Summary Question: What was the impact of pass-through revenues and delays on the top line? - The impact was estimated at $7 million to $8 million for the quarter and full year [34][35] Question: Can you break out the revenue growth in VA and Health and Human Services? - Revenue in the VA segment grew significantly, while Health and Human Services was down about 14% [38][40] Question: How is the integration of Irving Burton going? - The integration is going well, with no major issues and excitement about new business opportunities [49][52] Question: What is the status of accounts receivable? - Accounts receivable increased due to the acquisition and a transition in the dispersing office, but day sales outstanding remains below 60 [46][47] Question: What is the outlook for the Infinibyte Cloud product? - The product is in the implementation phase with existing customers, and there are significant opportunities anticipated in the near future [55][56]