Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Merger or Acquisition (October 2020)
14 slides from Dlh's merger presentation, Oct 7, 2020
Slide 1: DLH Holdings Corp. Acquisition of Irving Burton Associates
DLH Holdings Corp. Acquisition of Irving Burton Associates OCTOBER 7, 2020 Your Mission Is Our Passion © Copyright 2020 DLH Holdings Corp. All Rights Reserved. © Copyright 2020 DLH Holdings Corporation. All Rights Reserved.
Slide 2: Forward Looking Statement
Forward Looking Statement 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 statements that refer to expectations, projections or oth
Slide 3: DLH Continues to Build a Healthcare IT Enterprise
DLH Continues to Build a Healthcare IT Enterprise Strengthens DLH in What We Are DoD Healthcare Key Financial Terms Valuation Rationale Presenting Today Technology Enhances technology-enabled DLH Holdings has acquired $32 million purchase price Purchase price represents a healthcare applications acr
Slide 4: Strategic Rationale
Strategic Rationale Highly complementary business with common core capabilities for complex, nationally dispersed programs, operational synergies, and new business opportunities Accelerates long-term strategy of growing DLH presence in core military healthcare market with high revenue visibility and
Slide 5: Additional Capabilities and Customers
Additional Capabilities and Customers Premier professional and technology services Long-standing customer relationships, strong consulting firm reputation and deep domain expertise in military healthcare and NextGen technology Joint Program Committee Military Agile Program Advanced Health IT Transfo
Slide 6: IBA Expands Defense Health Presence
IBA Expands Defense Health Presence 15% Human Services & Solutions Market DOD & Veteran Health Services Market IBA broadens enterprise capabilities 55% ~$235M for military health customers Pro Forma Annual Revenue • Telehealth • Agile/DevOps • Health Informatics • Machine Learning 30% • Cybersecurit
Slide 7: IBA Increases Addressable Military Healthcare Market for DLH
IBA Increases Addressable Military Healthcare Market for DLH • Strategically positioned to address $2.5B Military Healthcare market currently growing at ~9% annually • Leading provider of mission critical advice and technology solutions for military health clients • Defense Health Agency • U.S. Army
Slide 8: Proforma Considerations
Proforma Considerations • DLH uses EBITDA as a supplemental non-GAAP measure of our performance. DLH defines EBITDA as net income excluding (i) interest expense, (ii) provision for or benefit from income taxes and (iii) depreciation and amortization. • Due to changes in contract type and structure d
Slide 9: Transaction Model – Twelve Months ended June 30, 2020
Transaction Model – Twelve Months ended June 30, 2020 (in millions) DLH IBA Adj. Proforma Revenue $ 212.7 $ 24.5 - $ 237.2 • Transaction accretive to net income and diluted earnings per share (EPS) Operating Income 14.2 3.1 (1.5) 15.8 % Margin 6.7% 12.7% 6.7% Interest (Expense)/Income (3.9) - (1.5)
Slide 10: Use of Existing Credit Facilities
Use of Existing Credit Facilities • The acquisition was fully funded with senior debt by reloading the Company’s existing secured credit facility −Term loan and cash reserves were used for the transaction; no revolver borrowings were needed to complete the transaction • Availability driven by cash g
Slide 11: Financial Benefits of the Acquisition
Financial Benefits of the Acquisition • Acquired company has approximately $143 million of total backlog Highly visible revenue • Contracts with key customers early in lifecycle with potential for service expansion Expected strong free • Free cash flow is further supported by tax-deductible purchase
Slide 12: 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 13: Reconciliation of net income to EBITDA
Reconciliation of net income to EBITDA Reconciliation of proforma net income to proforma EBITDA for the twelve months end June 30, 2020 (in millions) DLH IBA Adj. Proforma Net Income $ 7.3 $ 2.2 $ (2.1) $ 7.4 Interest expense (income) 3.9 - 1.5 5.4 Provision for taxes 3.0 0.9 (0.9) 3.0 Depreciation
Slide 14: Corporate Headquarters and Offices
CORPORATE HEADQUARTERS NATIONAL CAPITAL DURHAM, NORTH CAROLINA KAMPALA, UGANDA ATLANTA HQ REGION HQ OFFICE OFFICE 3565 Piedmont Road, NE 8757 Georgia Avenue | Suite 1200 4505 Emperor Boulevard 2730 Church Road, Kansanga Building 3 | Suite 700 Silver Spring, MD 20910 Suite 400 Kampala, Uganda Atlanta