Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Investor Presentation (August 2018)
18 slides from Dlh's investor presentation, Aug 8, 2018
Slide 1: DLH Investor Presentation
Your Mission is Our Passion DLH Investor Presentation Zach Parker, President and Chief Executive Officer Kathryn JohnBull, Chief Financial Officer August 8, 2018
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
"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 financial performance. Any
Slide 3: Overview, Financial Highlights, Questions and Answers
Overview Zach Parker President, CEO, and Board Director, DLH Corporation Financial Highlights Questions and Answers Kathryn M. JohnBull Chief Financial Officer, DLH Corporation
Slide 4: Prime Contractor Offerings, Financial Strength, Positioned for Growth
Prime Contractor Offerings Financial Strength Established mid-tier Government services Excellent cash flow, consistent margins, business with an excellent service and solid balance sheet reputation and long-term customer Long-term contracts, high re-compete win relationships rates, and healthy pipel
Slide 5: Offering the best of innovation and trusted mission-critical, long-term relationships
Offering the best of innovation and trusted mission-critical, long-term relationships Program Management Health IT Monitoring and evaluation Architecture and legacy migration (M&E) Web and mobile platforms Medical/clinical solutions Interoperability and integration Population health Reporting design
Slide 6: FY2017 Spending for Health Services, IT, and Professional Services
Civilian Agencies Defense and Veterans Affairs Agencies FY2017 Spending for Health Services, IT, and FY2017 Spending for Health Services, IT, and Professional Services over $116B Professional Services over $15B Source: Deltek GovWin
Slide 7: Strategies Driving Focus, Healthy and Growing, High-priority Mission Programs
“Strategies Driving Focus” “Healthy and Growing” “High-priority Mission Programs” Niche (targeted) vs broad IT/professional services Programs we manage solutions continue to gain spending continues to grow continue to move forward traction Federal spend on IT and despite other priorities and "Agile"
Slide 8: Historical Revenue and Historical EBITDA
Historical Revenue ($ in millions) Historical EBITDA* ($ in millions) $10 $8 $6 $115.7 $4 $8.4 $85.6 $60.5 $65.3 $4.5 $53.5 $2 $2.6 $0.4 $0.9 $0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 *A reconciliation of Net Income to EBITDA is provided at the back of this presentation.
Slide 9: Strong Cash Flow and Disciplined Capital Management
Strong Cash Flow and 1 2 3 Disciplined Capital Management ▪ Scale technology-enabled and ▪ Optimize workforce and service ▪ Expand EBITDA and reduce health analytics offerings delivery leverage, strengthening balance sheet ▪ Focus on Federal agencies with ▪ Leverage expertise in IT system high growt
Slide 10: Driving Operational Excellence, Winning New Business, Deploying Capital
“Driving Operational “Winning New Business” “Deploying Capital to Excellence” Support Growth” Ensuring excellence, Optimizing business Adding capability and efficiency and effectiveness development customers to accelerate in program delivery Bidding selectively and growth Investing in continuous bui
Slide 11: Uniquely positioned mid-tier company
Uniquely positioned mid-tier company Broad Experience Established Innovator — Deliver efficiently with — National recognition for qualitative standardized processes and innovative change Deep CRM Profile Proven Methodology — Decades-long relationships — Processes yielding measurable with key Federal
Slide 12: Q3 Revenue, Gross Profit, Operating Income, EBITDA
$M Revenue Gross Profit Gross Profit $36.1 $10 $30 $29.3 $8 $8.3 $20 $6 $6.4 24% $4 31% $10 $2 $0 $0 FY17Q3 FY18Q3 FY17Q3 FY18Q3 Operating Income EBITDA $3.0 $2.5 $2.6 $3.0 $3.2 $2.0 $1.8 $2.0 $2.3 $1.5 $1.0 49% 42% $1.0 $0.5 $0.0 $0.0 FY17Q3 FY18Q3 FY17Q3 FY18Q3 A reconciliation of Net Income to EB
Slide 13: Term loan balance and Net Debt/LTM EBITDA
9/30/2016 9/30/2017 6/30/2018 Term loan balance* $23.4 M $19.7 M $14.0 M Revolver balance** -0- -0- -0- Less Cash on Hand 3.4 4.9 6.6 Net Debt $20.0 $14.8 $7.4 LTM EBITDA $4.5 $8.4 $10.3 Net Debt/LTM EBITDA 4.44 1.76 0.72 *$25M originally **$10M ceiling; availability $10M; no borrowing as of 6/30/18
Slide 14: Non-GAAP financial information
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 our results, and providing meaning
Slide 15: Non-GAAP financial information
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 our results, and providing meaning
Slide 16: EBITDA reconciliation, three and nine months ended June 30
Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 Change 2018 2017 Change Net income (loss) $ 1,614 $ 945 $ 669 $ 79 $ 2,248 $ (2,169) (i) Interest expense 262 269 (7) 801 888 (87) (ii) Provision for taxes 738 539 199 5,084 1,345 3,739 (iii) Depreciation, amortization 588 510 78 1,654
Slide 17: LTM EBITDA reconciliation
Last Twelve Months Ended 9/30/2013 9/30/2014 9/30/2015 9/30/2016 9/30/2017 6/30/2018 Net Income (Loss) $ (159) $ 5,357 $ 8,728 $ 3,384 $ 3,288 $ 1,119 Interest and other (income) expense (net): Interest and other expense $ 407 $ 4 $ (744) 823 1,228 1,141 Provision for taxes — $ (4,597) $ (5,488) (93
Slide 18: Revenue, Gross Profit, Operating Income, EBITDA
$M Revenue Gross Profit Gross Profit $120 $30 $115.7 $90 $25.9 $85.6 $20 $60 $17.8 35% 45% $10 $30 $0 $0 Operating Income EBITDA $7.0 $10.0 $6.6 $6.0 $8.0 $8.4 $5.0 $4.0 $4.1 $6.0 $3.0 $4.0 $2.0 63% $4.5 86% $2.0 $1.0 $0.0 $0.0 A reconciliation of Net Income to EBITDA is provided at the back of this