Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — FY2018 Earnings Presentation
15 slides from Dlh's earnings presentation, Dec 13, 2018
Slide 1: FY2018 Fourth Quarter and Year-End Earnings Presentation
FY2018 Fourth Quarter and Year-End Earnings Presentation Three Months Ended September 30, 2018 Zach Parker, President and Chief Executive Officer Kathryn JohnBull, Chief Financial Officer December 13, 2018
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: Fourth Quarter (Q4) Highlights and Summary
Fourth Quarter (Q4) Highlights and Summary Q4 revenue $32.5 million, up 6.9 percent year-over-year Gross margin of 24.3 percent Operating cash flow $6.1 million for quarter; $14.1 million for fiscal year Senior debt reduced to $7.7 million; cash balance of $6.4 million 3 DLHC FY18Q4 Results 05/16/20
Slide 4: Current Outlook
Current Outlook Selected Targeted Expansion Agencies New Business Pipeline Overview More than $900M in pursuit phase with nearly $500M1 qualified to date Nearly all are “Best Value” awards Most are recurring work with an existing incumbent workforce Budget Characteristics and Stability Aerospace/Def
Slide 5: Another Year of Achievement
Another Year of Achievement Historical Revenue ($ in millions) Historical EBITDA* ($ in millions) $140 $12 $120 $10 $100 $8 $80 $133.2 $6 $60 $11.0 $115.7 $4 $8.4 $40 $85.6 $60.5 $65.3 $53.5 $2 $4.5 $20 $2.6 $0.4 $0.9 $0 $0 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 *A reconciliatio
Slide 6: Q4 Results: Revenue
FY2018 Q4 Results: Revenue $ Millions $30 $32.5 $30.4 $20 $10 $0 FY17Q4 FY18Q4 • 6.9-percent growth year-over-year • Reflects strong demand and general business expansion across core agencies 6 DLHC FY18Q4 Results 05/16/2018 2018 Confidential and Proprietary
Slide 7: Q4 Results: Gross Margin
FY2018 Q4 Results: Gross Margin $ Millions $8 $7.9 $7.3 $6 $4 $2 $0 FY17Q4 FY18Q4 • Third quarter gross margin of 24.3 percent • Increase of 8.7 percent in gross margin driven by higher revenue and margins 7 DLHC FY18Q4 Results 05/16/2018 2018 Confidential and Proprietary
Slide 8: Q4 Results: Operating Income
FY2018 Q4 Results: Operating Income $ Millions $3.0 $2.8 $2.5 $2.0 $2.1 $1.5 $1.0 $0.5 $0.0 FY17Q4 FY18Q4 • 31.2-percent growth year-over-year • Reflects impact of higher gross margin 8 DLHC FY18Q4 Results 05/16/2018 2018 Confidential and Proprietary
Slide 9: Q4 Results: EBITDA
FY2018 Q4 Results: EBITDA $ Millions $4.0 $3.0 $3.4 $2.0 $2.6 $1.0 $0.0 FY17Q4 FY18Q4 • EBITDA up 29.2 percent year-over-year • EBITDA as a percent of revenue was 10.5 percent in FY2018 Q4 versus 8.7 percent in FY2017 Q4 A reconciliation of net income to EBITDA is provided in the back of this presen
Slide 10: Balance Sheet: $15.7M Debt Reduction in 2 Years
Balance Sheet: $15.7M Debt Reduction in 2 Years 9/30/2016 9/30/2017 9/30/2018 Term loan balance* $23.4 M $19.7 M $7.7 M Revolver balance** -0- -0- -0- Less cash on hand 3.4 4.9 6.4 Net Debt $20.0 $14.8 $1.3 LTM EBITDA $4.5 $8.4 $11.0 Net Debt/LTM EBITDA 4.44 1.76 <1 *$25M originally **$10M ceiling;
Slide 11: Forward Indicators
Forward Indicators Strengths Learning Management System and Applicant Tracking System Upgrades and Implementation Positioned well against possible Government shutdown Key customers maintain mission-critical status Well postured for M&A success (debt reduced) Performance and Competitive Enhancements
Slide 12: Question and Answer Session
Question and Answer Session 12
Slide 13: 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 14: Q4 EBITDA Reconciliation
FY2018 Q4 EBITDA Reconciliation Three Months Ended Year Ended September 30, September 30, 2018 2017 Change 2018 2017 Change Net income $ 1,757 $ 1,040 $ 717 $ 1,836 $ 3,288 $ (1,452) (i) Interest expense 315 340 (25) 1,116 1,228 (112) (ii) Provision for taxes 747 769 (22) 5,830 2,114 3,716 (iii) Dep
Slide 15: Trending EBITDA Reconciliation
Trending EBITDA Reconciliation Twelve Months Ended September 30, 2013 2014 2015 2016 2017 2018 Net (loss)/income $ (159) $ 5,357 $ 8,728 $ 3,384 $ 3,288 $ 1,836 (i) Interest expense/other (income) 407 4 (744) 823 1,228 1,116 (ii) (Benefit)/provision for taxes — (4,597) (5,488) (938) 2,114 5,830 (iii