Financial Data and Key Metrics Changes - The company reported revenue of 101 million in the prior year, primarily due to the conversion of certain VA and DoD programs to small business set-aside contracts [15][16] - EBITDA for Q2 2025 was 10.2 million in the previous year, reflecting lower overall revenue levels [17][18] - Operating cash generation was strong at 3 million year-to-date [18][19] - The company reduced its debt by 151.7 million outstanding [19] Business Line Data and Key Metrics Changes - The technology services revenue grew over Q1 results, despite a decrease in overall revenue due to small business set-aside conversions [15][16] - The company is under contract to manage five CMOP locations through October 2025, with revenue run rates expected to be around 25 million for the remaining locations [26][27] Market Data and Key Metrics Changes - The company has over 3.5 billion across various market areas [13] Company Strategy and Development Direction - The company aims to leverage its advanced capabilities and new business pipeline to align with the current administration's goals, focusing on efficiency and cost reduction [9][12] - The strategy includes moving up the margin scale in a large market by providing unique, comprehensive solutions [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the alignment of the company's capabilities with the administration's priorities, despite uncertainties in government programs and budget cuts [9][10] - The company anticipates a neutral to slightly positive budgetary impact from the new administration, with ongoing demand for its technology-enabled applications [29][30] Other Important Information - The company has made all mandatory debt payments through March 2026, a year ahead of schedule, and continues to benefit from financial flexibility due to an amended credit facility [7][19] - Management is closely monitoring changes in contract administration resources at customer agencies to protect cash flow generation [19] Q&A Session Summary Question: What is the revenue run rate for CMOP contracts for the rest of the year? - The company expects the quarterly run rate to be around 25 million for the remaining locations [26] Question: How is the company impacted by NIH's shutdown of the long-term women's health study? - The company was not involved in that study and expects the overall budgetary impact from the new administration to be neutral to slightly positive [28][29] Question: What is the status of the 1 billion awards related to IDIQs? - Yes, the company is seeing continued activity related to IDIQs, with more RFPs expected to be released [43][44]
DLH(DLHC) - 2025 Q2 - Earnings Call Transcript