Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Investor Presentation (July 2020)
23 slides from Dlh's investor presentation, Jul 21, 2020
Slide 1: Your Mission Is Our Passion Investor Presentation
Your Mission Is Our Passion Investor Presentation ZACH PARKER | PRESIDENT & CEO KATHRYN JOHNBULL | CFO JULY 21, 2020 © Copyright 2020 DLH Holdings Corp. All Rights Reserved. © Copyright 2020 DLH Holdings Corp. All Rights Reserved.
Slide 2: Forward-looking Statements
Forward-looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future
Slide 3: Agenda
Agenda OVERVIEW 2 FINANCIAL HIGHLIGHTS Zach Parker Kathryn M. JohnBull QUESTIONS AND President & CEO Chief Financial Officer, ANSWERS DLH Holdings Corp. DLH Holdings Corp. © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 3
Slide 4: DLH's Transformation Journey
DLH’s Transformation Journey Made key acquisition Made key acquisition Became Pure-Play Government Services Company Commercial & Government Services 2010 2010-2012 2013-2015 2016 2017 2018 2019 2020 Roots date Publicly traded back to1969 Since 1986 Changed out LRSP Leadership Developed Team Eight co
Slide 5: Business Overview
Business Overview Overview Technology Enabled Services and Solutions Program Monitoring & Founded 1969 Healthcare Research Disease Prevention Patient Care Services Evaluation Headquarters: Atlanta, GA Complementary Offices: Silver Spring, MD Durham, NC Kampala, UG 3 Market Focus Areas Benefits Conso
Slide 6: Strong Portfolio of Services
Strong Portfolio of Services Key Federal Customers DOD & Veteran Health Services Market Human Services & Pro Forma Annual Solutions Market Revenue: ~$90M Pro Forma Annual Revenue: ~$40M 20% 45% ~$200M Pro Forma Annual Revenue 35% Public Health & Life Sciences Market MRDC Pro Forma Annual Revenue: ~$
Slide 7: Unique Value Proposition
Unique Value Proposition Evidence-based Decision-making Defense and Services Veterans Solutions Cloud Migration and Computing Secure Human Services Data & Solutions Analytics Business and Health Systems Cybersecurity Public Health & Life Sciences Infrastructure DLH InfiniByte Cloud © Copyright 2020
Slide 8: Organic Growth Drivers
Organic Growth Drivers Clinical Trials Secure Data & Laboratory Case Analytics Services Management Performance Strategic Digital Evaluation Communications Operational System Logistics & Modernization Readiness © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 8
Slide 9: Healthy Growth Profile
Healthy Growth Profile Key Target Agencies As of March 31, 2020, the DLH pipeline Opportunities of qualified new business opportunities was over $1 billion An estimated $600-$700 million of those Timing opportunities are expected to be decided in late FY20 or throughout FY21 New opportunities are we
Slide 10: COVID-19 Impact / Opportunities
COVID-19 Impact / Opportunities Defense & Veterans Human Services and Public Health and Life Health Solutions Solutions Sciences DLH TACKLING COVID-19 FOR THE VA, DOD, CDC, NIH, AND OTHERS • Care and treatment of military • Specialized communications • Clinical trials for therapeutics • Rx expansion
Slide 11: New COVID-19 Public Health & Life Sciences Work
New COVID-19 Public Health & Life Sciences Work CLINICAL RESEARCH TRIALS & LABORATORY SERVICES • Over $15 million of new awards thus far in calendar 2020 • Conducting trials of the safety and efficacy of investigational therapeutics for the treatment of COVID-19 • Observational studies of outpatient
Slide 12: DLH Achieves FedRAMP Ready Status
DLH Achieves FedRAMP Ready Status Opens Door to Federal Business Opportunities for Cloud-Based Platform-As-A-Service (PaaS) DLH Infinibyte® Cloud • Our new DLH Infinibyte® Cloud solution has achieved Federal Risk and Authorization Management Program (“FedRAMP”) “Ready” status. • This achievement – a
Slide 13: Financial Highlights
Financial Highlights Kathryn JohnBull | CFO © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 13
Slide 14: A History of Growth…
A History of Growth… Historical Revenue $200 June 2019 acquired $180 Social & Scientific $160 Systems $140 $120 May 2016 acquired $100 Danya $199.9 International $ millions $ $80 $160.4 $133.2 $60 $115.7 $40 $85.6 $60.5 $65.3 $53.5 $20 $0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 TTM* Growth driven by perf
Slide 15: And Expanding Value
And Expanding Value Historical EBITDA $20 $18 June 2019 $16 acquired Social & $14 Scientific Systems $12 May 2016 $10 acquired Danya $18.5 $ millions $ $8 International $13.9 $6 $11.0 $4 $8.4 $2 $4.5 $0.4 $2.6 $0.9 $0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 TTM An experienced team leading thoughtful inte
Slide 16: Fiscal Q2 Results (Three Months Ended 3/31/2020)
Fiscal Q2 Results (Three Months Ended 3/31/2020) Revenue Operating Income $4.0 $40 $54.8 $3.5 $3.8 $3.0 $30 $33.8 $2.5 $20 $2.0 $2.3 $1.5 $10 $1.0 $0.5 $0 $0.0 FY19Q2 FY20Q2 FY19Q2 FY20Q2 © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 16
Slide 17: Debt Paydown Strategy in Place
Debt Paydown Strategy in Place 6/7/2019 9/30/2019 3/31/2020 Debt Balance* $70 M $56 M $55 M Less cash on hand $1.9 $1.8 $1.1 Net Debt $68.1 M $54.2 M $53.9 M** *$70M originally, after acquisition of S3 **3/31/20 balances reflect delays from financial system integration Increased operating cash flow
Slide 18: Our Four Levers of Value Creation
Our Four Levers of Value Creation Revenue Stream Stability Sustainable Margin Expansion • Focus on Federal agencies with • Concentrate capture effort on projects critical missions and sustained that align with core competencies and bipartisan support 1 2 expand operating income margins • Optimize wo
Slide 19: Q&A Session
Q&A Session Zach Parker | President and CEO Kathryn JohnBull | CFO © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 19 19
Slide 20: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations: This document contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our
Slide 21: Fiscal 2020 Results ($000s)
Fiscal 2020 Results ($000s) Three Months Ended Six Months Ended March 31, March 31, 2020 2019 2020 2019 Revenue $ 54,798 $ 33,756 $ 107,036 $ 67,508 Cost of Operations: Contract costs 42,941 26,250 84,281 52,706 General and administrative costs 6,260 4,477 12,174 8,653 Acquisition costs — 143 — 143
Slide 22: Trending EBITDA Reconciliation
Trending EBITDA Reconciliation Twelve Months Ended September 30, Amounts in $000s 2013 2014 2015 2016 2017 2018 2019 TTM* Net (loss)/income $ (159) $ 5,357 $ 8,728 $ 3,384 $ 3,288 $ 1,836 $ 5,324 $ 5,995 (i) Interest expense/other (income) 407 4 (744) 823 1,228 1,116 2,473 3,599 (ii) (Benefit)/provi
Slide 23: Corporate and Regional Office Locations
RESEARCH TRIANGLE CORPORATE HEADQUARTERS NATIONAL CAPITAL DURHAM, NORTH CAROLINA ATLANTA HQ REGION HQ OFFICES 3565 Piedmont Road, NE 8757 Georgia Avenue 4505 Emperor Boulevard Building 3 | Suite 700 Suite 1200 Suite 400 Atlanta, GA 30305 Silver Spring, MD 20910 Durham, NC 27703 Your Mission Is Our P