Dlh Holdings Corp. · NASDAQ:DLHC

Dlh — Q1 2023 Earnings Presentation

19 slides from Dlh's earnings presentation, Feb 9, 2023

  1. Slide 1: FY2023 First Quarter Earnings Presentation

    FY2023 First Quarter Earnings Presentation: Three Months Ended 12.31.2022 FEBRUARY 9, 2023 © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 1

  2. Slide 2: Call Participants

    CALL PARTICIPANTS Zach Parker President and CEO Kathryn JohnBull Chief Financial Officer © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 2

  3. Slide 3: Forward-Looking Statements

    Forward-Looking Statements “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This press release 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 futur

  4. Slide 4: Financial Highlights

    Financial Highlights REVENUE OPERATING INCOME EBITDA1 $72.7M $3.9M $6.3M TERM LOAN BACKLOG DILUTED EPS $203.4M $942.7M $0.11 Reflects acquisition of GRSi As of December 31, 2022 1A reconciliation of EBITDA is available on slide16. © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 4

  5. Slide 5: GRSi Acquisition Illustrates Strength of Strategic Vision

    GRSi Acquisition Illustrates Strength of Strategic Vision Expands digital solution set, with capabilities in data analytics, AI/ML, COMBINED ENTERPRISE EXPECTED system modernization, engineering, TO YIELD A NEW BUSINESS SUBSTANTIALLY EXPANDS OUR cyber, cloud computer PIPELINE THAT PROVIDES DIGITAL T

  6. Slide 6: Financials

    FINANCIALS © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 6

  7. Slide 7: Key Financial Results

    Key Financial Results FY23Q1 FY22Q1 Revenue $72.7 million $152.8 million Adjusted Revenue1 $65.9 million $61.7 million EBITDA $6.3 million $13.2 million Adjusted EBITDA1 $7.2 million $6.9 million Operating Income $3.9 million $11.2 million Adjusted Operating Income1 $5.3 million $4.9 million Diluted

  8. Slide 8: Key Adjusted Financial Metrics

    Key Adjusted Financial Metrics $ millions $ millions $70.0 ADJ. REVENUE1 $7.5 ADJ. EBITDA1 $65.0 $7.0 $60.0 $6.5 $55.0 $65.9 $6.0 $7.2 $61.7 $6.9 $50.0 $5.5 $45.0 $40.0 $5.0 FY22Q1 FY23Q1 FY22Q1 FY23Q1 $ millions $ millions ADJ. OPERATING INCOME1 $0.3 ADJ. DILUTED EPS1 $5.3 $0.2 $0.2 $4.9 $0.2 $4.5

  9. Slide 9: Track Record of Deploying Cash Flow to Pay Down Debt

    Track Record of Deploying Cash Flow to Pay Down Debt $ millions $80 3.5x $70 3.0x $60 2.5x $50 2.0x $40 $77.5 $70.0 $70.0 1.5x $30 $62.8 $56.0 $57.8 $55.0 $53.8 $44.5 $46.8 1.0x $20 $42.9 $37.5 $28.5 $22.0 0.5x $10 $0 0.0x 6/7/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2

  10. Slide 10: Debt/Leverage Model for Recent Acquisition

    Debt/Leverage Model for Recent Acquisition FY2023 - 2027 $ millions 5.0x $200 4.0x $150 3.0x $207.6 $100 $186.4 $160.6 2.0x $131.3 $50 $99.9 1.0x $66.4 $0 0.0x At GRSi closing 9/30/2023 9/30/2024 9/30/2025 9/30/2026 9/30/2027 Total Debt Leverage Ratio Strategic Acquisition Assumes mandatory payments

  11. Slide 11: © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 11

    © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 11

  12. Slide 12: Appendix

    APPENDIX © Copyright 2023 DLH Holdings Corp. All Rights Reserved ► 12

  13. Slide 13: Non-GAAP Reconciliations

    Non-GAAP Reconciliations This document contains non-GAAP financial information including Adjusted Revenue, Adjusted Operating Income, Adjusted Net Income, Adjusted Diluted Earnings Per Share, EBITDA, Adjusted EBITDA, EBITDA Margin on Revenue, and Adjusted EBITDA Margin on Adjusted Revenue are not re

  14. Slide 14: Historical Revenue

    Historical Revenue $ millions $450 12.0% $400 10.30% 10.40% 9.80% 10.0% $350 8.70% 8.30% $125.8 $300 8.0% 7.20% $250 $1.7 5.30% 6.0% $200 3.90% $150 4.0% $269.4 $244.4 $100 $209.2 1.40% $160.4 0.70% 2.0% $133.2 $50 $115.7 $85.6 $60.5 $65.3 $53.5 $0 0.0% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 F

  15. Slide 15: Trending EBITDA Reconciliation

    Trending EBITDA Reconciliation Twelve Months Ended September 30, (amount in thousands) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net (loss)/income $ (159) $ 5,357 $ 8,728 $ 3,384 $ 3,288 $ 1,836 $ 5,324 $ 7,114 $ 10,145 $23,288 (i) Interest expense/other (income) 407 4 (744) 823 1,228 1,116

  16. Slide 16: Reconciliation of Non-GAAP Financial Results

    Reconciliation of Non-GAAP Financial Results Three Months Ended December 31, 2022 2021 (a): Represents the operating results for GRSi following the closing of the acquisition Adjusted Revenue on December 8, 2022 to December 31, 2022 Operating income for GRSi is derived by Revenue $ 72,738 $ 152,801

  17. Slide 17: Reconciliation of Leverage Ratio

    Reconciliation of Leverage Ratio $ millions 6/7/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/30/2021 3/31/2022 6/30/2022 9/30/2022 Term Loan1 $ 70.0 $ 56.0 $ 56.0 $ 53.0 $ 44.5 $ 70.01 $ 68.3 $ 62.8 $ 53.8 $ 46.8 $ 42.9 $ 37.5 $ 28.5 $ 22.0 Revo

  18. Slide 18: Reconciliation of Projected Leverage Ratio

    Reconciliation of Projected Leverage Ratio $ millions At GRSi closing 9/30/23 9/30/24 9/30/25 9/30/26 9/30/27 Total Debt $210.0 $186.4 $160.6 $131.3 $99.9 $66.4 Consolidated EBITDA1 57.6 50.0 53.2 55.9 58.6 61.3 Less: FEMA Task Orders (12.5) - - - - - Adjusted Consolidated EBITDA2 45.1 50 53.2 55.9

  19. Slide 19: About DLH

    About DLH DLH enhances public health and national security readiness missions through science, technology, cyber, and engineering solutions and services. The Company’s experts solve some of most complex and critical missions faced by the federal government, leveraging digital transformation, artific

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