DLH Reports Key Metrics for Fiscal 2023 Year End
24 Octobre 2023 - 2:30PM
DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the
“Company”), a leading provider of digital transformation,
science, research and development, and systems engineering and
integration, today announced selected key metrics for the fiscal
year ended September 30, 2023.
Debt ReductionTotal debt at fiscal year end was
$179.4 million compared to $207.6 million following the acquisition
of Grove Resource Solutions, Inc. (“GRSi”) in December 2022,
outperforming management expectations of $186.4 million. The
Company reduced its debt by $28.2 million in total for the
post-acquisition period, composed of $14.3 million in mandatory
payments and $13.9 million in prepayments.
“DLH has a history of effectively deploying free cashflow to
aggressively pay down debt,” said DLH President & CEO Zach
Parker. “This track record provides the capacity to make
transformative acquisitions, invest in our people, and grow the
Company’s footprint within key markets. I am proud that we are once
again making tremendous progress towards de-levering the balance
sheet and providing additional value to our shareholders.”
Fourth Quarter RevenueThe preliminary estimate
of revenue for the fiscal 2023 fourth quarter is approximately $100
million versus $67.2 million in the prior-year period. The increase
was primarily driven by contributions from GRSi. The Company’s
legacy contract portfolio grew moderately to offset the completion
of short-term contracts associated with the COVID-19 pandemic
response in fiscal 2022.
Facility RationalizationDuring the fourth
quarter of fiscal 2023, DLH reduced its leased office space
requirement by consolidating underutilized premises as part of an
ongoing facility rationalization effort, to accurately reflect the
operational needs of the business. As a result, the Company has
determined that its Right of Use Assets experienced a reduction in
fair value below its associated carrying value. While DLH continues
to quantify this reduction, the Company anticipates that its year
end audited financial statements will include an impairment in the
amount of approximately $8 million. This non-cash charge will
decrease operating income for the fourth quarter, but the Company
expects to benefit from lower lease expenses by approximately $1
million annually going forward. DLH expects to primarily utilize
such savings in strategic initiatives related to organic
growth.
As the Company has not completed its year end annual close
procedures and the audit of its 2023 financial statements is not
complete, the financial information presented in this press release
is preliminary, subject to final year end closing adjustments and
may change materially. The information presented above has not been
audited by the Company’s independent accountants, should not be
considered a substitute for audited financial statements, and
should not be regarded as a representation by DLH as to the actual
financial results for the fiscal year ended September 30, 2023. DLH
expects to release full audited financial results for its fiscal
fourth quarter and year ended September 30, 2023, on December 6,
2023.
About DLHDLH (NASDAQ: DLHC) delivers improved
health and readiness solutions for federal programs through
research, development, and innovative care processes. The Company’s
experts in public health, performance evaluation, and health
operations solve the complex problems faced by civilian and
military customers alike, leveraging digital transformation,
artificial intelligence, advanced analytics, cloud-based
applications, telehealth systems, and more. With over 3,200
employees dedicated to the idea that “Your Mission is Our Passion,”
DLH brings a unique combination of government sector experience,
proven methodology, and unwavering commitment to public health to
improve the lives of millions. For more information, visit
http://www.DLHcorp.com.
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 future financial performance. Any
statements that refer to expectations, projections or other
characterizations of future events or circumstances or that are not
statements of historical fact (including without limitation
statements to the effect that the Company or its management
“believes”, “expects”, “anticipates”, “plans”, “intends” and
similar expressions) should be considered forward looking
statements that involve risks and uncertainties which could cause
actual events or DLH’s actual results to differ materially from
those indicated by the forward-looking statements. Forward-looking
statements in this release include, among others, statements
regarding estimates of future revenues, operating income, earnings
and cash flow. Forward-looking statements are based only on our
current beliefs, expectations and assumptions that may not prove to
be accurate and are subject to numerous risks and uncertainties,
including the completion of the audit of the Company’s consolidated
financial statements for the fiscal year ended September 30, 2023,
as well as other risks relating to our business or general economic
and market factors. Our actual results may differ materially from
such forward-looking statements made in this release due to a
variety of factors, including: the risk that we will not realize
the anticipated benefits of our acquisition of GRSi or any other
acquisitions (including anticipated future financial performance
and results); the diversion of management’s attention from normal
daily operations of the business and the challenges of managing
larger and more widespread operations resulting from our recent
acquisition; the inability to retain employees and customers;
contract awards in connection with re-competes for present business
and/or competition for new business; our ability to manage our
increased debt obligations; compliance with bank financial and
other covenants; changes in client budgetary priorities; government
contract procurement (such as bid and award protests, small
business set asides, loss of work due to organizational conflicts
of interest, etc.) and termination risks; the ability to
successfully integrate the operations of GRSi or any future
acquisitions; the impact of inflation and higher interest rates;
and other risks described in our SEC filings. For a discussion of
such risks and uncertainties which could cause actual results to
differ from those contained in the forward-looking statements, see
“Risk Factors” in the Company’s periodic reports filed with the
SEC, including our Annual Report on Form 10-K for the fiscal year
ended September 30, 2022, as well as subsequent reports filed
thereafter. The forward-looking statements contained herein are not
historical facts, but rather are based on current expectations,
estimates, assumptions and projections about our industry and
business.
Such forward-looking statements are made as of the date hereof
and may become outdated over time. The Company does not assume any
responsibility for updating forward-looking statements, except as
may be required by law.
INVESTOR RELATIONSContact:
Chris WittyPhone: 646-438-9385Email: cwitty@darrowir.com
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