New Jersey (State or other jurisdiction of incorporation or organization) | 22-1899798 (I.R.S. Employer Identification No.) | |
3565 Piedmont Road, NE, Building 3, Suite 700 Atlanta, Georgia (Address of principal executive offices) | 30305 (Zip Code) |
Large accelerated filer o | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller Reporting Company x | |
Emerging Growth Company o |
Page No. | |
(unaudited) | (unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue | $ | 34,401 | $ | 29,905 | $ | 64,616 | $ | 56,016 | ||||||||
Direct expenses | 26,953 | 23,504 | 50,636 | 43,804 | ||||||||||||
Gross margin | 7,448 | 6,401 | 13,980 | 12,212 | ||||||||||||
General and administrative expenses | 4,684 | 4,008 | 9,564 | 8,729 | ||||||||||||
Depreciation and amortization | 560 | 554 | 1,066 | 755 | ||||||||||||
Income from operations | 2,204 | 1,839 | 3,350 | 2,728 | ||||||||||||
Interest expense, net | 261 | 255 | 539 | 619 | ||||||||||||
Income before income taxes | 1,943 | 1,584 | 2,811 | 2,109 | ||||||||||||
Income tax expense, net | 627 | 605 | 4,346 | 806 | ||||||||||||
Net income (loss) | $ | 1,316 | $ | 979 | $ | (1,535 | ) | $ | 1,303 | |||||||
Net income (loss) per share - basic | $ | 0.11 | $ | 0.09 | $ | (0.13 | ) | $ | 0.12 | |||||||
Net income (loss) per share-diluted | $ | 0.10 | $ | 0.08 | $ | (0.13 | ) | $ | 0.10 | |||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 11,889 | 11,249 | 11,863 | 11,225 | ||||||||||||
Diluted | 12,886 | 12,745 | 11,863 | 12,713 |
March 31, 2018 | September 30, 2017 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,586 | $ | 4,930 | ||||
Accounts receivable | 12,338 | 11,911 | ||||||
Other current assets | 945 | 598 | ||||||
Total current assets | 16,869 | 17,439 | ||||||
Equipment and improvements, net | 1,795 | 1,391 | ||||||
Deferred taxes, net | 5,473 | 9,639 | ||||||
Goodwill, net | 25,989 | 25,989 | ||||||
Intangible assets, net | 14,246 | 15,127 | ||||||
Other long-term assets | 89 | 139 | ||||||
Total assets | $ | 64,461 | $ | 69,724 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Debt obligations - current | $ | 3,622 | $ | 6,518 | ||||
Derivative financial instruments, at fair value | — | 306 | ||||||
Accrued payroll | 4,645 | 3,723 | ||||||
Accounts payable, accrued expenses, and other current liabilities | 9,936 | 10,895 | ||||||
Total current liabilities | 18,203 | 21,442 | ||||||
Total long term liabilities | 10,658 | 12,427 | ||||||
Total liabilities | 28,861 | 33,869 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Common stock, $.001 par value; authorized 40,000 shares; issued and outstanding 11,899 at March 31, 2018 and 11,767 at September 30, 2017 | 12 | 12 | ||||||
Additional paid-in capital | 83,838 | 82,687 | ||||||
Accumulated deficit | (48,250 | ) | (46,844 | ) | ||||
Total shareholders’ equity | 35,600 | 35,855 | ||||||
Total liabilities and shareholders' equity | $ | 64,461 | $ | 69,724 |
(unaudited) | ||||||||
Six Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Operating activities | ||||||||
Net income (loss) | $ | (1,535 | ) | $ | 1,303 | |||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization expense | 1,066 | 755 | ||||||
Amortization of debt financing costs as interest expense | 132 | 127 | ||||||
Change in fair value of derivative financial instruments | — | 52 | ||||||
Stock based compensation expense | 928 | 549 | ||||||
Deferred taxes, net | 4,166 | 642 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (427 | ) | (2,234 | ) | ||||
Other current assets | (347 | ) | (215 | ) | ||||
Accounts payable, accrued payroll, accrued expenses and other current liabilities | (31 | ) | 1,386 | |||||
Other long term assets/liabilities | 44 | 124 | ||||||
Net cash provided by operating activities | 3,996 | 2,489 | ||||||
Investing activities | ||||||||
Acquisition, net of cash acquired | — | (250 | ) | |||||
Purchase of equipment and improvements | (588 | ) | (674 | ) | ||||
Net cash used in investing activities | (588 | ) | (924 | ) | ||||
Financing activities | ||||||||
Repayments on senior debt | (4,793 | ) | (1,875 | ) | ||||
Repayments of capital lease obligations | (5 | ) | (40 | ) | ||||
Proceeds from issuance of stock upon exercise of options | 46 | 14 | ||||||
Net cash used in financing activities | (4,752 | ) | (1,901 | ) | ||||
Net change in cash and cash equivalents | (1,344 | ) | (336 | ) | ||||
Cash and cash equivalents at beginning of period | 4,930 | 3,427 | ||||||
Cash and cash equivalents at end of period | $ | 3,586 | $ | 3,091 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the period for interest | $ | 427 | $ | 434 | ||||
Cash paid during the period for income taxes | $ | 578 | $ | 300 | ||||
Derivative warrant liability reclassified as equity | $ | (306 | ) | $ | — | |||
Noncash issuance of stock upon exercise of options | $ | 25 | $ | — |
(in thousands) | |||||||||
March 31, | September 30, | ||||||||
Ref | 2018 | 2017 | |||||||
Billed receivables | $ | 11,989 | $ | 11,862 | |||||
Unbilled receivables | 349 | 49 | |||||||
Total accounts receivable | 12,338 | 11,911 | |||||||
Less: Allowance for doubtful accounts | (a) | — | — | ||||||
Accounts receivable, net | $ | 12,338 | $ | 11,911 |
(in thousands) | |||||||||
March 31, | September 30, | ||||||||
Ref | 2018 | 2017 | |||||||
Prepaid insurance and benefits | $ | 605 | $ | 240 | |||||
Other receivables and prepaid expenses | 340 | 358 | |||||||
Other current assets | $ | 945 | $ | 598 |
(in thousands) | |||||||||
March 31, | September 30, | ||||||||
Ref | 2018 | 2017 | |||||||
Furniture and equipment | $ | 326 | $ | 331 | |||||
Computer equipment | 810 | 715 | |||||||
Computer software | (a) | 1,607 | 1,108 | ||||||
Leasehold improvements | 66 | 66 | |||||||
Total fixed assets | 2,809 | 2,220 | |||||||
Less accumulated depreciation and amortization | (1,014 | ) | (829 | ) | |||||
Equipment and improvements, net | (b) | $ | 1,795 | $ | 1,391 |
(in thousands) | |||||||||||||||||||||
as of March 31, 2018 | |||||||||||||||||||||
Ref | Goodwill | Customer Relationships (a) | Non Compete Agreement (a) | Trade Name (a) | Total | ||||||||||||||||
Gross Balance at September 30, 2017 | $ | 25,989 | $ | 16,626 | $ | 480 | $ | 517 | $ | 43,612 | |||||||||||
Accumulated amortization at September 30, 2017 | — | (2,355 | ) | (68 | ) | (73 | ) | (2,496 | ) | ||||||||||||
Current period amortization | — | (831 | ) | (24 | ) | (26 | ) | (881 | ) | ||||||||||||
Total accumulated amortization | — | (3,186 | ) | (92 | ) | (99 | ) | (3,377 | ) | ||||||||||||
Net balance at March 31, 2018 | $ | 25,989 | $ | 13,440 | $ | 388 | $ | 418 | $ | 40,235 |
Estimated amortization expense for future years: | (in thousands) | |||
Year 1 | $ | 1,762 | ||
Year 2 | 1,762 | |||
Year 3 | 1,762 | |||
Year 4 | 1,762 | |||
Year 5 | 1,762 | |||
Thereafter | 5,436 | |||
$ | 14,246 |
(in thousands) | |||||||||
March 31, | September 30, | ||||||||
Ref | 2018 | 2017 | |||||||
Accounts payable | $ | 4,914 | $ | 5,205 | |||||
Accrued benefits | 1,857 | 1,831 | |||||||
Accrued bonus and incentive compensation | 1,029 | 1,544 | |||||||
Accrued workers compensation insurance | 1,626 | 1,598 | |||||||
Other accrued expenses | 510 | 717 | |||||||
Accounts payable, accrued expenses, and other current liabilities | $ | 9,936 | $ | 10,895 |
(in thousands) | |||||||||
March 31, | September 30, | ||||||||
Ref | 2018 | 2017 | |||||||
Bank term loan | (a) | $ | 14,896 | $ | 19,688 | ||||
Less unamortized debt issuance costs | (823 | ) | (961 | ) | |||||
Net bank debt obligation | 14,073 | 18,727 | |||||||
Less current portion of bank debt obligations | (3,622 | ) | (6,518 | ) | |||||
Long term portion of bank debt obligation | $ | 10,451 | $ | 12,209 |
Ref (a): Maturity of the bank debt obligation as follows, in thousands: | ||||
Year 1 | $ | 3,750 | ||
Year 2 | 3,750 | |||
Year 3 | 3,750 | |||
Year 4 | 3,646 | |||
Total bank debt obligation | $ | 14,896 |
(in thousands) | (in thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
Ref | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest expense | (a) | $ | (208 | ) | $ | (215 | ) | $ | (427 | ) | $ | (440 | ) | ||||
Amortization of debt financing costs as interest expense | (b) | (67 | ) | (67 | ) | (132 | ) | (127 | ) | ||||||||
Change in fair value of derivative financial instruments | — | 27 | — | (52 | ) | ||||||||||||
Other income (expense), net | 14 | 20 | — | ||||||||||||||
Interest expense, net | $ | (261 | ) | (255 | ) | $ | (539 | ) | $ | (619 | ) |
($ in Millions) | ||||||||||
As of March 31, 2018 | ||||||||||
Lender | Arrangement | Loan Balance | Interest | Maturity Date | ||||||
Fifth Third Bank | Secured term loan $25 million ceiling (a) | $ | 14.9 | LIBOR* + 3.0% | 05/01/21 | |||||
Fifth Third Bank | Secured revolving line of credit $10 million ceiling (b) | $ | — | LIBOR* + 3.0% | 05/01/18** |
(in thousands) | (in thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
Ref | March 31, | March 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
DLH employees | $ | 67 | $ | 56 | $ | 131 | $ | 63 | |||||||||
Non-employee directors | (a) | 104 | 8 | 797 | 486 | ||||||||||||
Total stock option expense | $ | 171 | $ | 64 | $ | 928 | $ | 549 |
(in thousands) | |||||||||
Six Months Ended | |||||||||
March 31, | |||||||||
Ref | 2018 | 2017 | |||||||
Unrecognized expense for DLH employees | (a) | $ | 1,011 | $ | 404 | ||||
Unrecognized expense for non-employee directors | (b) | $ | — | $ | 8 | ||||
Total unrecognized expense | $ | 1,011 | $ | 412 |
(in years) | ||||||||||||||
Weighted | ||||||||||||||
Weighted | Average | (in thousands) | ||||||||||||
(in thousands) | Average | Remaining | Aggregate | |||||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||||
Ref | Shares | Price | Term | Value | ||||||||||
Options outstanding September 30, 2017 | 1,994 | $ | 3.83 | 6.4 | $ | 8,489 | ||||||||
Granted | 217 | $ | 6.33 | |||||||||||
Exercised | (42 | ) | $ | 1.69 | ||||||||||
Options outstanding, March 31, 2018 | 2,169 | $ | 4.38 | 6.1 | $ | 7,093 |
Volatility | |||||||||||||||
50% | |||||||||||||||
Vesting | Expected | ||||||||||||||
Strike | Stock | Threshold | Risk-Free | Term | Calculated | ||||||||||
Grant Date | Price | Price | Price | Rate | (Years) | Fair Value | |||||||||
11/29/2017 | $ | 6.46 | $ | 6.46 | $ | 12.00 | 2.4 | % | 10 | $ | 3.98 | ||||
12/01/2017 | $ | 6.28 | $ | 6.28 | $ | 8.00 | 2.4 | % | 10 | $ | 3.87 | ||||
12/01/2017 | $ | 6.28 | $ | 6.28 | $ | 10.00 | 2.4 | % | 10 | $ | 3.82 | ||||
Notes: | |||||||||||||||
Results based on 100,000 simulations |
(in thousands) | |||||||
Number of Shares | |||||||
March 31, | September 30, | ||||||
Ref | 2018 | 2017 | |||||
Vested and exercisable | (a) | 1,335 | 1,327 | ||||
Unvested | 834 | 667 | |||||
Options outstanding | 2,169 | 1,994 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 1,316 | $ | 979 | $ | (1,535 | ) | $ | 1,303 | |||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share - weighted-average outstanding shares | 11,889 | 11,249 | 11,863 | 11,225 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock | 997 | 1,496 | — | 1,488 | ||||||||||||
Denominator for diluted net income per share - weighted-average outstanding shares | 12,886 | 12,745 | 11,863 | 12,713 | ||||||||||||
Net income (loss) per share - basic | $ | 0.11 | $ | 0.09 | $ | (0.13 | ) | $ | 0.12 | |||||||
Net income (loss) per share-diluted | $ | 0.10 | $ | 0.08 | $ | (0.13 | ) | $ | 0.10 |
Payments Due By Period | ||||||||||||||||||||
Contractual Obligations | Next 12 | 2-3 | 4-5 | More than 5 | ||||||||||||||||
(Amounts in thousands) | Ref | Total | Months | Years | Years | Years | ||||||||||||||
Debt Obligations | $ | 14,896 | $ | 3,750 | $ | 7,500 | $ | 3,646 | — | |||||||||||
Facility leases | 3,227 | 912 | 1,280 | 660 | 375 | |||||||||||||||
Equipment operating leases | 58 | 26 | 32 | — | — | |||||||||||||||
Total Obligations | $ | 18,181 | $ | 4,688 | $ | 8,812 | $ | 4,306 | $ | 375 |
• | Department of Defense and veteran health solutions, comprising approximately 63% of our current business base; |
• | Human services and solutions, approximately 33% of our current business base; and |
• | Public health and life sciences, approximately 4% of our current business base. |
Three Months Ended | |||||||||||||||||||
March 31, 2018 | March 31, 2017 | Change | |||||||||||||||||
Revenue | $ | 34,401 | 100.0 | % | $ | 29,905 | 100.0 | % | $ | 4,496 | |||||||||
Direct expenses | 26,953 | 78.3 | % | 23,504 | 78.6 | % | 3,449 | ||||||||||||
Gross margin | 7,448 | 21.7 | % | 6,401 | 21.4 | % | 1,047 | ||||||||||||
General and administrative expenses | 4,684 | 13.6 | % | 4,008 | 13.4 | % | 676 | ||||||||||||
Depreciation and amortization | 560 | 1.6 | % | 554 | 1.9 | % | 6 | ||||||||||||
Income from operations | 2,204 | 6.4 | % | 1,839 | 6.1 | % | 365 | ||||||||||||
Interest expense, net | 261 | 0.8 | % | 255 | 0.9 | % | 6 | ||||||||||||
Income before income taxes | 1,943 | 5.6 | % | 1,584 | 5.3 | % | 359 | ||||||||||||
Income tax expense, net | 627 | 1.8 | % | 605 | 2.0 | % | 22 | ||||||||||||
Net income (loss) | $ | 1,316 | 3.8 | % | $ | 979 | 3.3 | % | 337 | ||||||||||
Net income (loss) per share - basic | $ | 0.11 | $ | 0.09 | $ | 0.02 | |||||||||||||
Net income (loss) per share-diluted | $ | 0.10 | $ | 0.08 | $ | 0.02 |
Six Months Ended | Change in | ||||||||||||||||||
Consolidated Statement of Income: | March 31, 2018 | March 31, 2017 | $ | ||||||||||||||||
Revenue | $ | 64,616 | 100.0 | % | $ | 56,016 | 100.0 | % | $ | 8,600 | |||||||||
Direct expenses | 50,636 | 78.4 | % | 43,804 | 78.2 | % | 6,832 | ||||||||||||
Gross margin | 13,980 | 21.6 | % | 12,212 | 21.8 | % | 1,768 | ||||||||||||
General and administrative expenses | 9,564 | 14.8 | % | 8,729 | 15.6 | % | 835 | ||||||||||||
Depreciation and amortization | 1,066 | 1.6 | % | 755 | 1.3 | % | 311 | ||||||||||||
Income from operations | 3,350 | 5.2 | % | 2,728 | 4.9 | % | 622 | ||||||||||||
Interest | 539 | 0.8 | % | 619 | 1.1 | % | 80 | ||||||||||||
Income before income taxes | 2,811 | 4.4 | % | 2,109 | 3.8 | % | 702 | ||||||||||||
Income tax expense, net | 4,346 | 6.7 | % | 806 | 1.4 | % | 3,540 | ||||||||||||
Net income (loss) | $ | (1,535 | ) | (2.4 | )% | $ | 1,303 | 2.3 | % | (2,838 | ) | ||||||||
Net income (loss) per share - basic | $ | (0.13 | ) | $ | 0.12 | $ | (0.25 | ) | |||||||||||
Net income (loss) per share-diluted | $ | (0.13 | ) | $ | 0.10 | $ | (0.23 | ) | |||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||
Net income (loss) | $ | 1,316 | $ | 979 | $ | 337 | $ | (1,535 | ) | $ | 1,303 | $ | (2,838 | ) | ||||||||||
(i) Interest expense | 261 | 255 | 6 | 539 | 619 | (80 | ) | |||||||||||||||||
(ii) Provision for taxes | 627 | 605 | 22 | 4,346 | 806 | 3,540 | ||||||||||||||||||
(iii) Depreciation, amortization | 560 | 554 | 6 | 1,066 | 755 | 311 | ||||||||||||||||||
EBITDA | $ | 2,764 | $ | 2,393 | $ | 371 | $ | 4,416 | $ | 3,483 | $ | 933 |
Six Months Ended | ||||||||||||
March 31, | ||||||||||||
2018 | 2017 | Change | ||||||||||
Net income (loss) | $ | (1,535 | ) | $ | 1,303 | $ | (2,838 | ) | ||||
Write-down of deferred tax assets | 3,365 | — | 3,365 | |||||||||
Net income, excluding effect of write-down of deferred tax assets | $ | 1,830 | $ | 1,303 | $ | 527 | ||||||
Net income (loss) per fully-diluted share | $ | (0.13 | ) | $ | 0.10 | $ | (0.03 | ) | ||||
Write-down of deferred tax assets | $ | 0.27 | — | $ | 0.23 | |||||||
Net income (loss) per fully-diluted share, excluding effect of write-down of deferred tax assets | $ | 0.14 | $ | 0.10 | $ | 0.04 |
($ in Millions) | ||||||||||
Lender | Arrangement | Loan Balance | Interest* | Maturity Date | ||||||
Fifth Third Bank | Secured term loan $25 million ceiling (a) | $ | 14.9 | LIBOR + 3.0% | 05/01/21 | |||||
Fifth Third Bank | Secured revolving line of credit $10 million ceiling (b) | $ | — | LIBOR + 3.0% | 5/1/2018** |
Payments Due by Period | ||||||||||||||||||||
Contractual obligations | Next 12 | 2-3 | 4-5 | More than 5 | ||||||||||||||||
(Amounts in thousands) | Ref | Total | Months | Years | Years | Years | ||||||||||||||
Debt Obligations | $ | 14,896 | $ | 3,750 | $ | 7,500 | $ | 3,646 | — | |||||||||||
Facility Leases | 3,227 | 912 | 1,280 | 660 | 375 | |||||||||||||||
Equipment operating leases | 58 | 26 | 32 | — | — | |||||||||||||||
Total Obligations | $ | 18,181 | $ | 4,688 | $ | 8,812 | $ | 4,306 | $ | 375 |
($ in thousands) | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Programs | Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program | ||||||||||
January 2018 | — | $ | — | — | $ | 77 | ||||||||
February 2018 | — | — | — | 77 | ||||||||||
March 2018 | — | — | — | 77 | ||||||||||
Second Quarter Total | — | $ | — | — | $ | 77 |
Exhibit | Incorporated by Reference | Filed | ||||||||
Number | Exhibit Description | Form | Dated | Exhibit | Herewith | |||||
8-K | 05/14/18 | 10.1 | ||||||||
X | ||||||||||
X | ||||||||||
X | ||||||||||
101 | The following financial information from the DLH Holdings Corp. Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Cash Flows; and, (iv) the Notes to the Consolidated Financial Statements. | X | ||||||||
DLH HOLDINGS CORP. | |||
By: | /s/ Zachary C. Parker | ||
Zachary C. Parker | |||
Chief Executive Officer | |||
(Principal Executive Officer) | |||
By: | /s/ Kathryn M. JohnBull | ||
Kathryn M. JohnBull | |||
Chief Financial Officer | |||
(Principal Accounting Officer) | |||
Date: May 15, 2018 |
/s/ Zachary C. Parker Zachary C. Parker Chief Executive Officer (Principal Executive Officer) |
/s/ Kathryn M. JohnBull Kathryn M. JohnBull Chief Financial Officer (Principal Accounting Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
/s/ ZACHARY C. PARKER Zachary C. Parker Chief Executive Officer (Principal Executive Officer) | /s/ KATHRYN M. JOHNBULL Kathryn M. JohnBull Chief Financial Officer (Principal Accounting Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 30, 2018 |
|
Document and Entity Information | ||
Entity Registrant Name | DLH Holdings Corp. | |
Entity Central Index Key | 0000785557 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 11,899,494 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Income Statement [Abstract] | ||||
Revenue | $ 34,401 | $ 29,905 | $ 64,616 | $ 56,016 |
Direct expenses | 26,953 | 23,504 | 50,636 | 43,804 |
Gross margin | 7,448 | 6,401 | 13,980 | 12,212 |
General and administrative expenses | 4,684 | 4,008 | 9,564 | 8,729 |
Depreciation and amortization | 560 | 554 | 1,066 | 755 |
Income from operations | 2,204 | 1,839 | 3,350 | 2,728 |
Interest expense, net | 261 | 255 | 539 | 619 |
Income before income taxes | 1,943 | 1,584 | 2,811 | 2,109 |
Income tax expense, net | 627 | 605 | 4,346 | 806 |
Net income (loss) | $ 1,316 | $ 979 | $ (1,535) | $ 1,303 |
Net income per share, basic (in dollars per share) | $ 0.11 | $ 0.09 | $ (0.13) | $ 0.12 |
Net income (loss) per share - diluted (in dollars per share) | $ 0.10 | $ 0.08 | $ (0.13) | $ 0.10 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 11,889 | 11,249 | 11,863 | 11,225 |
Diluted (in shares) | 12,886 | 12,745 | 11,863 | 12,713 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2018 |
Sep. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 40,000 | 40,000 |
Common stock, issued (in shares) | 11,899 | 11,767 |
Common stock, outstanding (in shares) | 11,899 | 11,767 |
Basis of Presentation |
6 Months Ended |
---|---|
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2018. Amounts as of and for the periods ended March 31, 2018 and March 31, 2017 are unaudited. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual report on Form 10-K for the year ended September 30, 2017 filed with the Securities and Exchange Commission on December 9, 2017, as well as interim quarterly filing thereafter. |
Business Overview |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview DLH is a full-service provider of technology-enabled health and readiness enhancement services to government agencies including the Department of Veteran Affairs ("VA"), Department of Health and Human Services ("HHS"), Department of Defense ("DoD"), and other government agencies. DLH Holdings Corp. (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our") manages its operations from its principal executive offices in Atlanta, Georgia. We have complimentary headquarters offices in Silver Spring, Maryland. We employ over 1,400 skilled employees working in more than 30 locations throughout the United States. Presently, the Company derives 100% of its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors. A major customer is defined as a customer from whom the Company derives at least 10% of its revenues. Our largest customer continues to be the VA, which comprised approximately 63% and 58% of revenue for the six months ended March 31, 2018 and 2017, respectively. Additionally, HHS, which comprised approximately 33% and 30% of revenue for the six months ended March 31, 2018 and 2017, respectively, represents a major customer. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of March 31, 2018 and September 30, 2017. We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. See Note 4, Supporting Financial Information-Accounts Receivable. As of March 31, 2018, awards from VA and HHS have anticipated periods of performance ranging from approximately six months to up to two years. These agreements are subject to the Federal Acquisition Regulations. While there can be no assurance as to the actual amount of services that the Company will ultimately provide to VA and HHS under its current contracts, we believe that our strong working relationships and our effective service delivery support ongoing performance for the contract term. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationship with VA or HHS. |
New Accounting Pronouncements |
6 Months Ended |
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Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Beginning in May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is effective for annual periods (including interim periods therein) beginning after December 15, 2017. The guidance allows either a full retrospective or modified retrospective transition method. The Company is evaluating the effects of this guidance. The Company will adopt the new guidance beginning October 1, 2018. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 9, the Company currently has approximately $3.3 million of lease obligations as of March 31, 2018 that would be evaluated as the implementation of this guidance becomes effective. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company has elected to adopt the provisions of this ASU as of December 31, 2017. |
Supporting Financial Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supporting Financial Information | Supporting Financial Information Accounts receivable
Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at both March 31, 2018 and September 30, 2017. Other current assets
Equipment and improvements, net
Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.2 million and $0.7 million as of March 31, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service effective as of January 1, 2018 with an estimated useful life of 5 years. Ref (b): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $119 thousand and $85 thousand for the three months ended March 31, 2018 and 2017 respectively and $185 thousand and $170 thousand for the six months ended March 31, 2018 and 2017 respectively. Goodwill and Intangibles
Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense was $0.4 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.
Accounts payable, accrued expenses and other current liabilities
Debt obligations
Interest expense
Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing |
Credit Facilities |
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Facilities | Credit Facilities A summary of our loan facilities and subordinated debt financing as of March 31, 2018 is as follows:
*LIBOR rate as of March 31, 2018 was 1.66% **Extension of credit line obtained May 10, 2018 (see note 12) (a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank was funded at closing and is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021. The Term Loan agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. We are in compliance with all loan covenants and restrictions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain quarterly financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.0 to 1.0 for the period through March 31, 2018 to 2.5 to 1.0 for the period ending September 30, 2018 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, including acquisition expenses, net, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) G&A expenses - equity grants. In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires annual payments of a percentage of excess cash flow, as defined in the loan agreement. The loan agreement states that an excess cash flow recapture payment must be made equal to (a) 75% of the excess cash flow for each year in which the Funded Indebtedness to Adjusted EBITDA ratio is greater than or equal to 2.50:1.0, or (b) 50% of the Excess Cash Flow for each fiscal year in which the funded indebtedness to Adjusted EBITDA Ratio is less than 2.50:1.0 but greater than or equal to 2.0:1.0. DLH made an excess cash flow payment of $2.9 million on January 16, 2018. DLH does not expect to make any future excess cash flow payments. (b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million. Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. The Company's total borrowing availability, based on eligible accounts receivables at March 31, 2018, was $10.0 million. This capacity was comprised of $0.6 million in a stand-by letter of credit and unused borrowing capacity of $9.4 million. The revolving line of credit is subject to loan covenants as described above in the Term Loan, and DLH is fully compliant with those covenants. |
Significant Accounting Policies |
6 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill and intangible assets, valuation allowances established against accounts receivable and deferred tax assets, excess cash flow payments on our term debt, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The Company's current business base is 95% prime contracts and 5% subcontracts. DLH recognizes and records revenue on government contracts when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled receivables, accrued expenses, accrued earn outs payable, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. Goodwill and other intangible assets DLH continues to review its goodwill and other intangible assets for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. At September 30, 2017, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $26 million. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2017. For the six months ended March 31, 2018, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Notwithstanding this evaluation, factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. Long Lived Assets Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either March 31, 2018 or September 30, 2017. We report interest and penalties as a component of income tax expense. In the three and six months ended March 31, 2018 and March 31, 2017, we recognized no interest and no penalties related to income taxes. Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a Monte Carlo simulation option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. Earnings (Loss) per Share Basic earnings per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method. |
Stock-based Compensation, Equity Grants, and Warrants |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation, Equity Grants, and Warrants | Stock-based Compensation, Equity Grants, and Warrants Stock-based compensation expense Options issued under equity incentive plans were designated as either an incentive stock or a non-statutory stock option. No option was granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. As of March 31, 2018, there were 1.7 million shares available for grant. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:
Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. Unrecognized stock-based compensation expense
Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. The remaining term for the weighted average expense of these shares will be 56 months. Ref (b): Unrecognized stock expense related to prior year's equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. Stock option activity for the six months ended March 31, 2018 The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.
Indication of Value Summary Utilizing a volatility range of 50% along with assumptions of a 10 year term and the aforementioned 10-day stock price threshold results in an indicated range of value of the Options as follows using the Monte Carlo Method.
Stock options shares outstanding, vested and unvested for the period ended
Ref (a): Certain awards vest upon satisfaction of certain performance criteria. |
Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income(loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings (loss) per share is calculated using the treasury stock method.
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Commitment and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations as of March 31, 2018
Worker's Compensation We accrue worker's compensation expense based on claims submitted, applying actuarial loss development factors to estimate the costs incurred but not yet recorded. Our accrued liability for claims development as of March 31, 2018 and September 30, 2017 was $1.63 million and $1.60 million, respectively. Legal Proceedings As a commercial enterprise and employer, the Company is subject to various claims and legal actions in the ordinary course of business. These matters can include professional liability, employment-relations issues, workers’ compensation, tax, payroll and employee-related matters, other commercial disputes arising in the course of its business, and inquiries and investigations by governmental agencies regarding our employment practices or other matters. The Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows. |
Related Party Transactions |
6 Months Ended |
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Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions. The Company has determined that for the three and six months ended March 31, 2018 and 2017 there were no significant related party transactions that have occurred which require disclosure through the date that these financial statements were issued. |
Income Taxes |
6 Months Ended |
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Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes DLH accounts for income taxes in accordance with the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted. The 2017 Tax Act significantly reduces U.S. federal tax rates, modifies rules regarding deductibility of executive compensation, limits deductions of interest expense, and revises rules regarding usability of net operating losses. Net loss for the six months ended March 31, 2018 includes an aggregate net discrete tax provision of $3.4 million as a result of the 2017 Tax Act, principally associated with revaluing the benefits of our net operating loss carryforwards from the previously recognized 34% federal rate to the 21% rate enacted. As of March 31, 2018, the Company is reporting a $5.5 million deferred tax asset, which is presented on the balance sheet as tax long-term in the long-term assets section. |
Subsequent Events |
6 Months Ended |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events. On May 10, 2018, the Company, together with its wholly-owned subsidiaries, DLH Solutions, Inc. and Danya International LLC (collectively, the “Borrowers”) and Fifth Third Bank (the “Lender”) entered into an amendment to that certain Loan Agreement dated as of May 2, 2016 (the “Loan Agreement”) among the Borrowers and the Lender. The amendment to the Loan Agreement provides for a three-year extension of the maturity date of the $10.0 million revolving credit facility to May 1, 2021, so that it is coterminous with the existing secured term loan established under the Loan Agreement. In addition, the amendment provides for an increase of the aggregate face value of letters of credit which may be drawn under the revolving credit facility from $1.0 million to $2.0 million and for certain other technical modifications. The credit available to the Borrowers under the revolving credit facility is subject to certain limitations, including a borrowing base, and may be used for general working capital purposes. |
Significant Accounting Policies (Policies) |
6 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Adoption of New Accounting Standards | New Accounting Pronouncements Beginning in May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is effective for annual periods (including interim periods therein) beginning after December 15, 2017. The guidance allows either a full retrospective or modified retrospective transition method. The Company is evaluating the effects of this guidance. The Company will adopt the new guidance beginning October 1, 2018. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 9, the Company currently has approximately $3.3 million of lease obligations as of March 31, 2018 that would be evaluated as the implementation of this guidance becomes effective. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company has elected to adopt the provisions of this ASU as of December 31, 2017. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill and intangible assets, valuation allowances established against accounts receivable and deferred tax assets, excess cash flow payments on our term debt, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. |
Revenue Recognition | Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The Company's current business base is 95% prime contracts and 5% subcontracts. DLH recognizes and records revenue on government contracts when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled receivables, accrued expenses, accrued earn outs payable, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets DLH continues to review its goodwill and other intangible assets for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. |
Long-lived Assets | Long Lived Assets Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. |
Income Taxes | Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either March 31, 2018 or September 30, 2017. We report interest and penalties as a component of income tax expense. In the three and six months ended March 31, 2018 and March 31, 2017, we recognized no interest and no penalties related to income taxes. |
Stock-based Equity Compensation | Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a Monte Carlo simulation option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. |
Earnings (Loss) Per Share | Earnings (Loss) per Share Basic earnings per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method. |
Supporting Financial Information (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable
Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at both March 31, 2018 and September 30, 2017. |
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Schedule of Other Current Assets | Other current assets
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Schedule of Equipment and Improvements, Net | Equipment and improvements, net
Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.2 million and $0.7 million as of March 31, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service effective as of January 1, 2018 with an estimated useful life of 5 years. Ref (b): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $119 thousand and $85 thousand for the three months ended March 31, 2018 and 2017 respectively and $185 thousand and $170 thousand for the six months ended March 31, 2018 and 2017 respectively. |
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Schedule of Goodwill and Intangibles | Goodwill and Intangibles
Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense was $0.4 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively. |
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense |
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Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities | Accounts payable, accrued expenses and other current liabilities
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Schedule of Debt Obligations | Debt obligations
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Schedule of Interest Income (Expense) | Interest expense
Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing |
Credit Facilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Credit Facilities | A summary of our loan facilities and subordinated debt financing as of March 31, 2018 is as follows:
*LIBOR rate as of March 31, 2018 was 1.66% **Extension of credit line obtained May 10, 2018 (see note 12) (a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank was funded at closing and is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021. |
Stock-based Compensation, Equity Grants, and Warrants (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Expense | Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:
Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. Unrecognized stock-based compensation expense
Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. The remaining term for the weighted average expense of these shares will be 56 months. Ref (b): Unrecognized stock expense related to prior year's equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. |
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Stock Option Activity | The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.
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Stock Options Fair Value Assumptions | Utilizing a volatility range of 50% along with assumptions of a 10 year term and the aforementioned 10-day stock price threshold results in an indicated range of value of the Options as follows using the Monte Carlo Method.
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Stock Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the period ended
Ref (a): Certain awards vest upon satisfaction of certain performance criteria. |
Earnings (Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings (loss) per share is calculated using the treasury stock method.
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Commitment and Contingencies (Tables) |
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Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule | Contractual Obligations as of March 31, 2018
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New Accounting Pronouncements (Details) $ in Millions |
Mar. 31, 2018
USD ($)
|
---|---|
Accounting Changes and Error Corrections [Abstract] | |
Lease obligations, future minimum payments due | $ 3.3 |
Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 12,338 | $ 11,911 |
Less: Allowance for doubtful accounts | 0 | 0 |
Accounts receivable, net | 12,338 | 11,911 |
Billed Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 11,989 | 11,862 |
Unbilled Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 349 | $ 49 |
Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid insurance and benefits | $ 605 | $ 240 |
Other receivables and prepaid expenses | 340 | 358 |
Other current assets | $ 945 | $ 598 |
Supporting Financial Information - Intangible Assets Estimated Future Amortization Expense (Details) $ in Thousands |
Mar. 31, 2018
USD ($)
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Year 1 | $ 1,762 |
Year 2 | 1,762 |
Year 3 | 1,762 |
Year 4 | 1,762 |
Year 5 | 1,762 |
Thereafter | 5,436 |
Finite-Lived Intangible Assets, Net | $ 14,246 |
Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 4,914 | $ 5,205 |
Accrued benefits | 1,857 | 1,831 |
Accrued bonus and incentive compensation | 1,029 | 1,544 |
Accrued workers compensation insurance | 1,626 | 1,598 |
Other accrued expenses | 510 | 717 |
Total accrued expenses and other current liabilities | $ 9,936 | $ 10,895 |
Supporting Financial Information - Debt Obligations (Details) - Notes Payable to Banks [Member] - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Bank term loan | $ 14,896 | $ 19,688 |
Less unamortized debt issuance costs | (823) | (961) |
Net bank debt obligation | 14,073 | 18,727 |
Less current portion of bank debt obligations | (3,622) | (6,518) |
Long term portion of bank debt obligation | $ 10,451 | $ 12,209 |
Supporting Financial Information - Maturities of Debt Obligations (Details) - Notes Payable to Banks [Member] - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
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Debt Instrument [Line Items] | ||
Year 1 | $ 3,750 | |
Year 2 | 3,750 | |
Year 3 | 3,750 | |
Year 4 | 3,646 | |
Total bank debt obligation | $ 14,896 | $ 19,688 |
Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest expense | $ (208) | $ (215) | $ (427) | $ (440) |
Amortization of debt financing costs as interest expense | (67) | (67) | (132) | (127) |
Change in fair value of derivative financial instruments | 0 | 27 | 0 | (52) |
Other income (expense), net | 14 | 20 | 0 | |
Other income (expense) net | $ (261) | $ (255) | $ (539) | $ (619) |
Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018 |
Sep. 30, 2017 |
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Number of Shares | ||
Outstanding at the beginning of the period (in shares) | 1,994 | |
Granted (in shares) | 217 | |
Exercised (in shares) | (42) | |
Outstanding at the end of the period (in shares) | 2,169 | 1,994 |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 3.83 | |
Granted (in dollars per share) | 6.33 | |
Exercised (in dollars per share) | 1.69 | |
Outstanding at the end of the period (in dollars per share) | $ 4.38 | $ 3.83 |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term | 6 years 22 days | 6 years 4 months 24 days |
Aggregate Intrinsic Value | ||
Outstanding at the beginning of the period (in dollars) | $ 8,489 | |
Outstanding at the end of the period (in dollars) | $ 7,093 | $ 8,489 |
Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Vested and exercisable (in shares) | 1,335 | 1,327 | |
Unvested (in shares) | 834 | 667 | |
Option outstanding (in shares) | 2,169 | 1,994 |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
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Numerator [Abstract] | ||||
Net income (loss) | $ 1,316 | $ 979 | $ (1,535) | $ 1,303 |
Denominator [Abstract] | ||||
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares) | 11,889 | 11,249 | 11,863 | 11,225 |
Effect of dilutive securities: | ||||
Stock options and restricted stock (shares) | 997 | 1,496 | 0 | 1,488 |
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares) | 12,886 | 12,745 | 11,863 | 12,713 |
Net income (loss) per share - basic (dollars per share) | $ 0.11 | $ 0.09 | $ (0.13) | $ 0.12 |
Net income (loss) per share - diluted (in dollars per share) | $ 0.10 | $ 0.08 | $ (0.13) | $ 0.10 |
Commitment and Contingencies (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
---|---|---|
Operating Leases | ||
Total operating leases | $ 3,300 | |
Long Term Debt and Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Total Obligations | 18,181 | |
Next 12 Months | 4,688 | |
2-3 Years | 8,812 | |
4-5 Years | 4,306 | |
More than 5 Years | 375 | |
Facility Leases [Member] | ||
Operating Leases | ||
Total operating leases | 3,227 | |
Next 12 Months | 912 | |
2-3 Years | 1,280 | |
4-5 Years | 660 | |
More than 5 Years | 375 | |
Equipment Leases [Member] | ||
Operating Leases | ||
Total operating leases | 58 | |
Next 12 Months | 26 | |
2-3 Years | 32 | |
4-5 Years | 0 | |
More than 5 Years | 0 | |
Notes Payable to Banks [Member] | ||
Debt Obligations | ||
Total bank debt obligation | 14,896 | $ 19,688 |
Next 12 Months | 3,750 | |
2-3 Years | 7,500 | |
4-5 Years | 3,646 | |
More than 5 Years | $ 0 |
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Sep. 30, 2017 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued workers compensation insurance | $ 1,626 | $ 1,598 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Net discrete tax provision as result of 2017 Tax Act | $ 3,400 | |
Deferred tax asset, net, long-term | $ 5,473 | $ 9,639 |
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