Wednesday, August 03, 2022
DLH Holdings (DLHC)
Another Solid Quarter
DLH 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 2,300 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 www.DLHcorp.com.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3QFY22 Results. Revenue totaled $66.4 million, up from $61.6 million in 3Q21. The short-term FEMA business has been completed, with the increase in the quarter’s revenues due to expanded work across the Company’s existing contracts. Earnings were $4.9 million, or $0.34 per diluted share, compared to $2.9 million, or $0.21 per diluted share last year. EBITDA was $9.0 million, or 13.5% of revenue, compared to $7.0 million and 11.3% last year. We had projected revenue of $67 million, EBITDA of $7.0 million, and EPS of $0.23.
Debt Paydown Continues. During the quarter, DLH reduced the outstanding term loan to $28.5 million from the $37.5 million at the end of March. Mandatory principal amortization on the loan has now been satisfied. We expect debt reduction to continue to be a focus of management, all else being equal. With the rapid paydown, additional M&A, which remains a key aspect of the Company’s growth strategy, may move to the forefront….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
