Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Investor Presentation (August 2016)
24 slides from Dlh's investor presentation, Aug 10, 2016
Slide 1: Investor Presentation August 2016
Integrity & Trust | Performance Excellence | Inclusion & Diversity | Agility Investor Presentation August, 2016 Zachary Parker | President & Chief Executive Officer Kathryn JohnBull | Chief Financial Officer
Slide 2: Forward Looking Statement
2 Forward Looking Statement © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 "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
Slide 3: Investor Highlights
3 Investor Highlights © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 • “Pure Play” government services provider • Leading position in growing healthcare markets, with long-term contracts at attractive federal agencies – VA, DoD, HHS, CDC • Completed transformational acquisition of
Slide 4: Who We Are & What We Do
4© 2016 | DLH Proprietary | Investor Presentation August 10, 2016 Who We Are & What We Do Primary DLH Markets and Offerings Health Services for Active Duty Military and Veterans • Clinical device research and development • Medication Therapy Management (pharma) • Access to care (Behavioral and Medic
Slide 5: DLH Has Dramatically Changed in Six Years
5© 2016 | DLH Proprietary | Investor Presentation August 10, 2016 (1) A reconciliation of third quarter fiscal 2016 Adjusted EBITDA, a non-GAAP measure, can be found at the end of this presentation. Historical information can be found in the quarterly and annual reports filed with the Securities and
Slide 6: Transformative Acquisition: Danya – May 2016
6 Transformative Acquisition: Danya – May 2016 © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 Highly complementary businesses with common core capabilities for complex, nationally dispersed programs, operational synergies, and new business opportunities Portfolio Diversification •
Slide 7: LTM Trading Performance Relative to Industry
7 LTM Trading Performance Relative to Industry (1) © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 Government Services: SAIC, BAH, LDOS, CACI, MANT, KEYW, ICFI, EGL, VSEC, NCIT, VEC, CSRA Defense Primes: LMT, GD, RTN, BA., NOC, LLL (1) As of August 4, 2016 per S&P Capital IQ 50 70 9
Slide 8: Danya's Markets & Capabilities
8 Danya’s Markets & Capabilities © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 • Danya’s flagship prime contract with HHS’ Office of Head Start (“OHS”) aligns with DLH’s capabilities and solutions that impact diverse communities and populations • DLH expects to integrate component
Slide 9: DLH Broad Healthcare Delivery Solutions
9 DLH Broad Healthcare Delivery Solutions © 2016 | DLH Proprietary | Investor Presentation August 10, 2016
Slide 10: Breadth and Depth in Pharmacy
10 Breadth and Depth in Pharmacy © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 Coverage ranging from single clinic to operating in high-volume automated prescription production and distribution system environments. • Virtual / Tele-pharmacy services • Pharmacy systems automation (
Slide 11: Differentiation in Process & Technology
11 Differentiation in Process & Technology © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 DLH delivers high-value performance in partnership with and in support of customers, teams, and end-users as measured by…. DLH’s ePRAT provides a web-based, open-architecture, secure system to
Slide 12: Federal Health Markets Attractive for Growth
12 Federal Health Markets Attractive for Growth © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 National health spending expected to reach $5.63 trillion and comprise 20.1% of GDP by 2025 Federal portion expected to grow at a 4.9% CAGR, reaching $1.75 trillion by 2025
Slide 13: Buying Behavior: FY2015 HHS Spending
13 Buying Behavior: FY2015 HHS Spending © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 Source: Federal Procurement Data System, GovWin IQ
Slide 14: Buying Behavior: FY2015 Contract Vehicle
14© 2016 | DLH Proprietary | Investor Presentation August 10, 2016 Buying Behavior: FY2015 Contract Vehicle Source: Federal Procurement Data System, GovWin IQ
Slide 15: Strategic Model Positioning: DLH Playbook
15© 2016 | DLH Proprietary | Investor Presentation August 10, 2016 S T RA T E G IC MODE L P O S IT IO NING K E Y S DRIVE PRFORMANCE EXCELLENCE BUILD UPON CURRENT DIFFERENTIATORS BUILD POWERHOUSE MARKETING POSITION DEPLOY CAPITAL FOR GROWTH NAVIGATE POLITICAL ENVIRONMENT ISSUES DLH P L A Y B O O K Or
Slide 16: Recent Results – Quarter Ended 6/30/16
16 Recent Results – QTR Ended 6/30/16 © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 $0 $9 $18 $27 FY 15 Q3 FY16 Q3 $16.8 $25.0 Revenue + 49% $0 $2 $4 $6 FY15 Q3 FY16 Q3 $3.0 $5.5 Gross Margin + 80% $0.0 $0.8 $1.6 $2.4 FY15 Q3 FY16 Q3 $0.8 $1.7 Operating Income + 119% $0.0 $0.8 $1.
Slide 17: Liquidity – 6/30/2016
17 Liquidity – 6/30/2016 © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 $25.0M$2.8M $10.0M Gaining Strength Post Acquisition Cash on Hand Term LoanRevolving Credit Facility Paid off $5.0M Acq. Loan $0.8M loan balance tied to operational cash flow $24.7M Balance Plan to accelerate p
Slide 18: Investor Highlights
18 Investor Highlights © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 • “Pure Play” government services provider • Leading position in growing healthcare markets, with long-term contracts at attractive federal agencies – VA, DoD, HHS, CDC • Completed transformational acquisition of
Slide 19: Backup Slides
Integrity & Trust | Performance Excellence | Inclusion & Diversity | Agility Backup Slides 45
Slide 20: FY16 YTD Year over Year
20 FY16 YTD Year over Year ― 9 months ended 6/30/16 © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 $0 $20 $40 $60 FY15-9mo. FY16-9mo. $48.4 $58.5 Revenue + 21% $0 $4 $8 $12 FY15-9mo. FY16-9mo. $8.3 $11.6 Gross Margin $ + 40% $0.0 $1.5 $3.0 $4.5 FY15-9mo. FY16-9mo. $1.5 $2.7 Operati
Slide 21: Cash Flows for Nine Months Ended 6/30/16
21 Cash Flows for Nine Months Ended 6/30/16 © 2016 | DLH | Confidential & Proprietary | FY16 Q3 Board of Directors Meeting | 11 August 2016 FY16 Beginning Cash $5,558 Cash generated from operating activities $3,380 Cash used in investing activities (32,278) Cash from financing activities 26,610 FY16
Slide 22: F3Q16 Financials
22 F3Q16 Financials © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 (unaudited) (unaudited) Three Months Ended Nine Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue $ 24,989 $ 16,781 $ 58,482 $ 48,357 Direct expenses 19,533 13,743 46,885 40,055 Gross margin 5,456 3,038 11,
Slide 23: F3Q16 Adjusted EBITDA Reconciliation
23 F3Q16 Adjusted EBITDA Reconciliation(1) © 2016 | DLH Proprietary | Investor Presentation August 10, 2016 (1) For a further explanation of Adjusted EBITDA, a non-GAAP measure, please refer to the Company’s most recent quarterly and annual reports filed with the Securities and Exchange Commission,
Slide 24: © 2016 | DLH | Proprietary24 Corporate Headquarters: 3565 Piedmont Rd NE Building 3,
© 2016 | DLH | Proprietary24 Corporate Headquarters: 3565 Piedmont Rd NE Building 3, Suite 700 Atlanta, GA 30305 National Capital Region Office: 8737 Colesville Road Suite 1100 Silver Spring, MD 20910