Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Q2 FY2018 Earnings Presentation
15 slides from Dlh's earnings presentation, May 16, 2018
Slide 1: FY2018 Second Quarter Earnings Presentation
FY2018 Second Quarter Earnings Presentation Ended March 31, 2018 Zach Parker, President and Chief Executive Officer Kathryn JohnBull, Chief Financial Officer May 16, 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: Second Quarter Highlights & Summary
Second Quarter Highlights & Summary Q2 revenue $34.4 million, up 15.0 percent year-over-year Gross margin of 21.7 percent Operating cash flow $4.4 million Senior debt reduced to $14.9 million from $18.8 million as of December 31, 2017 Solid growth outlook 3 DLHC FY18Q2 Results 05/16/2018 2018 Confid
Slide 4: Strong EBITDA Trend Continues
Strong EBITDA Trend Continues Historical EBITDA* ($ in millions) $10 $8 $6 $9.3 $4 $8.4 $2 $4.5 $2.6 $0.4 $0.9 $0 FY13 FY14 FY15 FY16 FY17 LTM 3-31-18 -$2 *A reconciliation of EBITDA is provided in the back of this presentation 4 DLHC FY18Q2 Results 05/16/2018 2018 Confidential and Proprietary
Slide 5: Budget Agreement / Appropriations Act
Budget Agreement / Appropriations Act Bipartisan budget fully supports key agencies & programs HHS – total of $78 billion in budget authority, $10 billion above FY17 enacted VA – total of $81.5 billion in budget authority, $7.1 billion above FY17 enacted Similar trends expected for FY2019 Gives clar
Slide 6: Key Forward Indicators
Key Forward Indicators Well-funded programs IT/professional services spending continues to grow F2018 budget raised funding for DoD, VA & HHS, including NIH, ACF, SAMHSA Healthy new business pipeline Bidding on more complex, margin-expansion opportunities Over $400 million of qualified leads
Slide 7: Q2 Results: Revenue
FY2018 Q2 Results: Revenue $ Millions $34.4 $30 $29.9 $20 $10 $0 FY17Q2 FY18Q2 • 15.0% growth year-over-year • Represents continued expansion and program timing 7 DLHC FY18Q2 Results 05/16/2018 2018 Confidential and Proprietary
Slide 8: Q2 Results: Gross Profit
FY2018 Q2 Results: Gross Profit $ Millions $8 $7.4 $6 $6.4 $4 $2 $0 FY17Q2 FY18Q2 • Second quarter gross margin of 21.7% • 16.4% higher gross profit driven by increased revenue & margin 8 DLHC FY18Q2 Results 05/16/2018 2018 Confidential and Proprietary
Slide 9: Q2 Results: Operating Income
FY2018 Q2 Results: Operating Income $ Millions $2.5 $2.0 $2.2 $1.8 $1.5 $1.0 $0.5 $0.0 FY17Q2 FY18Q2 • 19.8% growth year-over-year • Higher gross profit was partially offset by increased G&A 9 DLHC FY18Q2 Results 05/16/2018 2018 Confidential and Proprietary
Slide 10: Q2 Results: EBITDA
FY2018 Q2 Results: EBITDA $ Millions $3.0 $2.8 $2.0 $2.4 $1.0 $0.0 FY17Q2 FY18Q2 • EBITDA up 15.5% year-over-year • EBITDA as a percent of revenue was 8.0% in both FY2018 Q2 and FY2017 Q2 A reconciliation of net income to EBITDA is provided in the back of this presentation 10 DLHC FY18Q2 Results 05/
Slide 11: Balance Sheet: Deleveraging Continues
Balance Sheet: Deleveraging Continues 9/30/2016 9/30/2017 3/31/2018 Term loan balance* $23.4 M $19.7 M $14.9 M Revolver balance** -0- -0- -0- Less Cash on Hand 3.4 4.9 3.6 Net Debt $20.0 $14.8 $11.3 LTM EBITDA $4.5 $8.4 $9.3 Net Debt/LTM EBITDA 4.44 1.76 1.21 *$25M originally **$10M ceiling; availab
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 that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in
Slide 14: Q2 EBITDA Reconciliation
FY2018 Q2 EBITDA Reconciliation 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) Depreciati
Slide 15: Trending EBITDA Reconciliation
Trending EBITDA Reconciliation Twelve Months Ended 9/30/2013 9/30/2014 9/30/2015 9/30/2016 9/30/2017 3/31/2018 Net Income (Loss) $ (159) $ 5,357 $ 8,728 $ 3,384 $ 3,288 $ 450 Interest and other (income) expense (net): Interest and other expense 407 4 (744) 823 1,228 1,148 Provision for taxes (4,597)