(State or Other Jurisdiction of Incorporation | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Capital Market | |||||||||||
CHECK THE APPROPRIATE BOX BELOW IF THE FORM 8-K FILING IS INTENDED TO SIMULTANEOUSLY SATISFY THE FILING OBLIGATION OF THE REGISTRANT UNDER ANY OF THE FOLLOWING PROVISIONS: |
Item 2.02 | Results of Operations and Financial Condition | ||||||||||
On January 31, 2024, DLH Holdings Corp. announced by press release its financial results for its fiscal quarter ended December 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1. | |||||||||||
The information furnished pursuant to Item 2.02 of this Current Report, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. | |||||||||||
Item 9.01 | Financial Statements and Exhibits | ||||||||||
(d) Exhibits | |||||||||||
The following exhibit is attached to this Current Report on Form 8-K: | |||||||||||
Exhibit Number | Exhibit Title or Description | ||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
DLH Holdings Corp. | ||||||||
By: /s/ Kathryn M. JohnBull | ||||||||
Name: Kathryn M. JohnBull | ||||||||
Title: Chief Financial Officer | ||||||||
Date: January 31, 2024 |
INVESTOR RELATIONS | ||
Contact: Chris Witty | ||
Phone: 646-438-9385 | ||
Email: cwitty@darrowir.com |
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue | $ | 97,850 | $ | 72,738 | ||||||||||
Cost of operations: | ||||||||||||||
Contract costs | 79,081 | 57,256 | ||||||||||||
General and administrative costs | 7,697 | 7,424 | ||||||||||||
Corporate development costs | — | 1,735 | ||||||||||||
Depreciation and amortization | 4,253 | 2,402 | ||||||||||||
Total operating costs | 91,031 | 68,817 | ||||||||||||
Income from operations | 6,819 | 3,921 | ||||||||||||
Interest expense | 4,658 | 1,830 | ||||||||||||
Income before provision for income taxes | 2,161 | 2,091 | ||||||||||||
Provision for income tax expense | 10 | 544 | ||||||||||||
Net income | $ | 2,151 | $ | 1,547 | ||||||||||
Net income per share - basic | $ | 0.15 | $ | 0.12 | ||||||||||
Net income per share - diluted | $ | 0.15 | $ | 0.11 | ||||||||||
Weighted average common stock outstanding | ||||||||||||||
Basic | 14,032 | 13,306 | ||||||||||||
Diluted | 14,796 | 14,276 | ||||||||||||
December 31, 2023 | September 30, 2023 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash | $ | 131 | $ | 215 | ||||||||||
Accounts receivable | 55,577 | 59,119 | ||||||||||||
Other current assets | 2,916 | 3,067 | ||||||||||||
Total current assets | 58,624 | 62,401 | ||||||||||||
Goodwill | 138,161 | 138,161 | ||||||||||||
Intangible assets, net | 120,663 | 124,777 | ||||||||||||
Operating lease right-of-use assets | 8,996 | 9,656 | ||||||||||||
Deferred taxes, net | 3,076 | 3,070 | ||||||||||||
Equipment and improvements, net | 1,625 | 1,590 | ||||||||||||
Other long-term assets | 185 | 186 | ||||||||||||
Total assets | $ | 331,330 | $ | 339,841 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | 22,307 | $ | 29,704 | ||||||||||
Debt obligations - current, net of deferred financing costs | 16,130 | 17,188 | ||||||||||||
Accrued payroll | 15,703 | 13,794 | ||||||||||||
Operating lease liabilities - current | 3,353 | 3,463 | ||||||||||||
Other current liabilities | 564 | 638 | ||||||||||||
Total current liabilities | 58,057 | 64,787 | ||||||||||||
Long-term liabilities: | ||||||||||||||
Debt obligations - long-term, net of deferred financing costs | 151,870 | 155,147 | ||||||||||||
Operating lease liabilities - long-term | 15,042 | 15,908 | ||||||||||||
Other long-term liabilities | 1,559 | 1,560 | ||||||||||||
Total long-term liabilities | 168,471 | 172,615 | ||||||||||||
Total liabilities | 226,528 | 237,402 | ||||||||||||
Shareholders' equity: | ||||||||||||||
Common stock, $0.001 par value; 40,000 shares authorized; 14,105 and 13,950 shares issued and outstanding at December 31, 2023 and September 30, 2023, respectively | 14 | 14 | ||||||||||||
Additional paid-in capital | 100,186 | 99,974 | ||||||||||||
Retained earnings | 4,602 | 2,451 | ||||||||||||
Total shareholders’ equity | 104,802 | 102,439 | ||||||||||||
Total liabilities and shareholders' equity | $ | 331,330 | $ | 339,841 |
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 2,151 | $ | 1,547 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 4,253 | 2,402 | ||||||||||||
Amortization of deferred financing costs charged to interest expense | 642 | 276 | ||||||||||||
Stock-based compensation expense | 620 | 552 | ||||||||||||
Deferred taxes, net | (6) | (13) | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Accounts receivable | 3,542 | 780 | ||||||||||||
Other assets | 510 | 994 | ||||||||||||
Accounts payable and accrued liabilities | (7,397) | 1,075 | ||||||||||||
Accrued payroll | 1,909 | 347 | ||||||||||||
Other liabilities | (1,153) | 13 | ||||||||||||
Net cash provided by operating activities | 5,071 | 7,973 | ||||||||||||
Investing activities | ||||||||||||||
Business acquisition, net of cash acquired | — | (179,958) | ||||||||||||
Purchase of equipment and improvements | (174) | (384) | ||||||||||||
Net cash used in investing activities | (174) | (180,342) | ||||||||||||
Financing activities | ||||||||||||||
Proceeds from revolving line of credit | 69,831 | — | ||||||||||||
Repayment of revolving line of credit | (64,026) | — | ||||||||||||
Proceeds from debt obligations | — | 200,703 | ||||||||||||
Repayments of debt obligations | (10,378) | (19,327) | ||||||||||||
Payments of deferred financing costs | — | (7,221) | ||||||||||||
Proceeds from issuance of common stock upon exercise of options and warrants | 261 | — | ||||||||||||
Payment of tax obligations resulting from net exercise of stock options | (669) | (650) | ||||||||||||
Net cash (used in) provided by financing activities | (4,981) | 173,505 | ||||||||||||
Net change in cash | (84) | 1,136 | ||||||||||||
Cash - beginning of year | 215 | 228 | ||||||||||||
Cash - end of year | $ | 131 | $ | 1,364 | ||||||||||
Supplemental disclosures of cash flow information | ||||||||||||||
Cash paid during the year for interest | $ | 3,972 | $ | 339 | ||||||||||
Cash paid during the year for income taxes | $ | — | $ | 5 | ||||||||||
Supplemental disclosures of non-cash activity | ||||||||||||||
Common stock surrendered for the exercise of stock options | $ | 244 | $ | 238 | ||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
(in thousands) | 2023 | 2022 | Change | |||||||||||||||||
Net income | $ | 2,151 | $ | 1,547 | $ | 604 | ||||||||||||||
(i) Interest expense, net | 4,658 | 1,830 | 2,828 | |||||||||||||||||
(ii) Provision for income tax expense | 10 | 544 | (534) | |||||||||||||||||
(iii) Depreciation and amortization | 4,253 | 2,402 | 1,851 | |||||||||||||||||
EBITDA | $ | 11,072 | $ | 6,323 | $ | 4,749 | ||||||||||||||
Net income as a % of revenue | 2.2 | % | 2.1 | % | 0.1 | % | ||||||||||||||
EBITDA as a % of revenue | 11.3 | % | 8.7 | % | 2.6 | % | ||||||||||||||
Revenue | $ | 97,850 | $ | 72,738 | $ | 25,112 | ||||||||||||||
Cover |
Jan. 31, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jan. 31, 2024 |
Entity Registrant Name | DLH Holdings Corp. |
Entity Incorporation, State or Country Code | NJ |
Entity File Number | 0-18492 |
Entity Tax Identification Number | 22-1899798 |
Entity Address, Address Line One | 3565 Piedmont Road, NE |
Entity Address, Address Line Two | Building 3 |
Entity Address, Address Line Three | Suite 700 |
Entity Address, City or Town | Atlanta |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30305 |
City Area Code | 770 |
Local Phone Number | 554-3545 |
Title of 12(b) Security | Common Stock |
Trading Symbol | DLHC |
Security Exchange Name | NASDAQ |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000785557 |
Amendment Flag | false |
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