Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Q3 FY2020 Earnings Presentation
18 slides from Dlh's earnings presentation, Aug 6, 2020
Slide 1: FY2020 Third Quarter Earnings Presentation
FY2020 Third Quarter Earnings Presentation Three Months Ended 6.30.2020 ZACH PARKER | PRESIDENT & CEO KATHRYN JOHNBULL | CFO AUGUST 6, 2020 Your Mission Is Our Passion © Copyright 2020 DLH Holdings Corp. All Rights Reserved. © Copyright 2020 DLH Holdings Corp. All Rights Reserved.
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: Fiscal 2020 Third Quarter Highlights & Summary
Fiscal 2020 Third Quarter Highlights & Summary* • Posted Q3 revenue of $51.5 million versus $38.7 million in FY19 • Operating income of $3.8 million, up from $1.7 million last year • EBITDA of $5.5 million, compared to $2.6 million in FY19 • Paid down $10.5 million of debt during the quarter • Recen
Slide 4: DLH Leadership Appointments
DLH Leadership Appointments Jackie Everett Jeanine Christian Chief Growth Officer President, Social & Scientific Systems © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 4
Slide 5: COVID-19 Impact and Activities
COVID-19 Impact and Activities Resilient Workforce – Braving the challenges and delivering productivity Demonstrating strong business continuity Work-from-Home directive extended through remainder of calendar year CARES Act and Furloughs – Coordinating with government clients as required DLH In-
Slide 6: New COVID-19 Public Health & Life Sciences Work
New COVID-19 Public Health & Life Sciences Work CLINICAL RESEARCH TRIALS & LABORATORY SERVICES • Over $15 million of new awards thus far in calendar 2020 • Conducting trials of the safety and efficacy of investigational therapeutics for the treatment of COVID-19 • Observational studies of outpatient
Slide 7: DLH Addressing National Focus on Diversity & Inclusion and Social Injustice
DLH Addressing National Focus on Diversity & Inclusion and Social Injustice ● Enterprise-wide and “grass root” communications to focus on what employees are experiencing ● Fostering change through corporate philanthropy and harnessing our capabilities ● Following through with specific actions to be
Slide 8: FY2020 Q3 Results: Revenue
FY2020 Q3 Results: Revenue $ Millions $60.0 $45.0 $51.5 $38.7 $30.0 $15.0 $0.0 FY19Q3 FY20Q3 FY20 Q3 reflects a full quarter’s revenue contribution from S3 © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 8
Slide 9: FY2020 Q3 Results: Operating Income
FY2020 Q3 Results: Operating Income $ Millions $4.0 $3.8 $3.0 $2.0 $1.7 $1.0 $0.0 FY19Q3 FY20Q3 Reflects impact from increased revenue year-over-year and improved margins © Copyright 2020 DLH Holdings Corp. All Rights Reserved. 9
Slide 10: FY2020 Q3 Results: EBITDA
FY2020 Q3 Results: EBITDA $ Millions $6.0 $5.0 $5.5 $4.0 $3.0 $2.0 $2.6 $1.0 $0.0 FY19Q3 FY20Q3 Performance reflects revenue growth and improved margins; EBITDA as a percentage of revenue rose to 10.7% in Q3 of F2020 from 6.7% in Q3 of FY2019 A reconciliation of net income to EBITDA and EBITDA as a
Slide 11: Debt Position and Outlook
Debt Position and Outlook 6/7/2019 9/30/2019 3/31/2020 6/30/2020 Debt Balance* $70 M $56 M $55 M $44.5 M Less cash on hand $1.9 $1.8 $1.1 $0.7 Net Debt $68.1 M $54.2 M $53.9 M $43.8 M *$70M originally Continued strong operating cash flow anticipated in fourth quarter leading to a projected year-end
Slide 12: Q&A
Q&A © Copyright 2020 DLH Holdings Corp. All Rights Reserved.
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 this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our
Slide 14: FY2020 Q3 EBITDA Reconciliation
FY2020 Q3 EBITDA Reconciliation Three Months Ended Nine Months Ended June 30, June 30, Amounts in $000s 2020 2019 Change 2020 2019 Change Net (loss)/income $ 2,124 $ 803 $ 1,321 $ 5,752 $ 3,758 $ 1,994 (i) Interest expense/other (income) 813 562 251 2,659 1,284 1,375 (ii) (Benefit)/provision for tax
Slide 15: A History of Solid Growth
A History of Solid Growth Historical Revenue $200 June 2019 acquired $180 Social & Scientific $160 Systems $140 $120 May 2016 $ millions acquired $212.7 $100 Danya International $80 $160.4 $133.2 $60 $115.7 $40 $85.6 $60.5 $65.3 $53.5 $20 $0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 TTM* *TTM is the traili
Slide 16: And Increasing Value
And Increasing Value Historical EBITDA $24 $22 $20 June 2019 acquired $18 Social & Scientific $16 Systems $14 $ millions May 2016 $12 acquired Danya $21.4 $10 International $8 $13.9 $6 $11.0 $4 $8.4 $2 $4.5 $0.4 $2.6 $0.9 $0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 TTM *TTM is the trailing twelve months e
Slide 17: Trending EBITDA Reconciliation
Trending EBITDA Reconciliation Twelve Months Ended September 30, Amounts in $000s 2013 2014 2015 2016 2017 2018 2019 TTM* Net (loss)/income $ (159) $ 5,357 $ 8,728 $ 3,384 $ 3,288 $ 1,836 $ 5,324 $ 7,316 (i) Interest expense/other (income) 407 4 (744) 823 1,228 1,116 2,473 3,850 (ii) (Benefit)/provi
Slide 18: Corporate Headquarters and Offices
CORPORATE HEADQUARTERS NATIONAL CAPITAL DURHAM, NORTH CAROLINA ATLANTA HQ REGION HQ OFFICES 3565 Piedmont Road, NE 8757 Georgia Avenue 4505 Emperor Boulevard Building 3 | Suite 700 Suite 1200 Suite 400 Atlanta, GA 30305 Silver Spring, MD 20910 Durham, NC 27703 Your Mission Is Our Passion © Copyright