Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Q4 2016 Earnings Presentation
19 slides from Dlh's earnings presentation, Dec 8, 2016
Slide 1: Earnings Presentation: FY 2016 Q4 Results
EARNINGS PRESENTATION FY 2016 Q4 Results December 8, 2016
Slide 2: Forward-Looking Statement
Introduction Forward-Looking Statement "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
Slide 3: Q4 2016 Earnings Call Speakers
Introduction Q4 2016 Earnings Call • Speakers – Chris Witty, Investor Relations – Zachary Parker, President & CEO – Kathryn JohnBull, Chief Financial Officer 3
Slide 4: FY2016 Fourth Quarter Executive Summary
FY2016 Fourth Quarter Executive Summary • Revenue of $27 million, up 60% year-over-year – Strong positive impact from Danya transaction CEO Overview – Plus 4.4% organic growth * • Gross margin rose 310 basis points • EPS of $0.20 • Debt reduction ahead of plan • Contract backlog: $233 million • New
Slide 5: Key Transaction Update
Key Transaction Update • Danya acquisition achieving strategic plan objectives – Portfolio diversification into new and key targeted agencies CEO Overview – Higher level of complexity including strong health IT qualifications – Business mix yielding higher margins; enhances growth outlook • Integrat
Slide 6: Market Overview (GovCon)
Market Overview (GovCon) • Congress and new administration – Fully expect to see a “continuing resolution” from Congress CEO Overview – Department of Veteran Affairs already has FY17 appropriations – FY17 NDAA passed House; now awaiting Senate – Net effect could slow new contract growth within the i
Slide 7: Revenue up 60% Year-over-Year
Revenue up 60% Year-over-Year $ Millions $30 $27.1 $20 Key Financials $17.0 $10 $0 FY15 Q4 FY16 Q4 7
Slide 8: Gross Profit up 84%
Gross Profit up 84% $ Millions $9 $6 $6.2 Key Financials $3 $3.4 $0 FY15 Q4 FY16 Q4 Fourth quarter gross margin of 23.0% increased 310 basis points over fiscal 2015 8
Slide 9: Operating Income up 38%
Operating Income up 38% $ Millions $2.0 $1.3 Key Financials $1.0 $1.0 $0.0 FY15 Q4 FY16 Q4 Higher gross margin partially offset by $1.7 million of increased expense and $0.7 million non-cash amortization of Danya intangibles 9
Slide 10: Adjusted EBITDA up 114%
Adjusted EBITDA* up 114% $ Millions $3.0 $2.0 $2.2 Key Financials $1.0 $1.0 $0.0 FY15 Q4 FY16 Q4 Adjusted EBITDA return on revenue was 8.1% compared to 6.1% for the prior year fourth quarter *A reconciliation of Net Income to Adjusted EBITDA is provided in the back of this presentation. 10
Slide 11: Fiscal 2016 Cash Flow
Fiscal 2016 Cash Flow FY16 Beginning Cash (10/1/15) $5,558 Cash generated from operating activities $6,040 Cash used in investing activities (32,739) Key Financials Cash from financing activities 24,568 FY16 Ending Cash (9/30/16) $3,427 Senior debt reduced to $23.4 million from $30.0 million on clos
Slide 12: Upcoming Events
Upcoming Events • Jan 30: Noble Growth Conference CEO Overview • Feb 8: FY2017 Q1 Earnings Call • Feb 9: Annual Shareholders’ Meeting 12
Slide 13: Summary
Summary • Strong operational and financial CEO Overview performance continues • Strategic transaction enhances portfolio and expands DLH growth opportunities • Well positioned to deliver value to clients and shareholders 13
Slide 14: Question & Answer Session
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Slide 15: Backup Information
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Slide 16: FY2016 Q4 & CY Financials
FY2016 Q4 & CY Financials Three Months Ended Year Ended September 30, September 30, 2016 2015 2016 2015 Revenue $ 27,120 $ 16,989 $ 85,602 $ 65,346 Direct expenses 20,891 13,603 67,776 53,658 Gross margin 6,229 3,386 17,826 11,688 General and administrative expenses 4,116 2,418 12,518 9,137 Deprecia
Slide 17: Income from Operations per Share
Income from Operations per Share Key Financials The Company believes that providing Income from Operations per share will be useful to investors in comparing year over year operating results for 2016 compared to 2015. Income from Operations per share excludes the impact of other income (expense) and
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended September 30, September 30, 2016 2015 Change 2016 2015 Change Net income $ 2,387 $ 8,239 $ (5,852) $ 3,384 $ 8,728 $ (5,344) (i) Interest and other (income) expense (net): (i)(a) Interest and other expense 542 (1,467) 2,009 823 (7
Slide 19: Contact investor relations
Please contact investorrelations@dlhcorp.com or visit http://www.dlhcorp.com/investor-relations.aspx with any questions subsequent to the live call. 19