Tuesday, February 01, 2022
DLH (DLHC)
First Quarter Fiscal 2022 Results
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.
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.
1QFY22 Results. Revenue totaled $152.8 million, up from $57.9 million in 1Q21. The short-term FEMA awards accounted for $91.1 million of the increase. Earnings were $7.8 million, or $0.55 per diluted share, compared to $1.8 million, or $0.13 per diluted share last year. Ex FEMA, DLH still reported excellent results. Revenue rose 7% year-over-year to $61.7 million, while earnings were $3.1 million, or $0.22 per diluted share. We had projected revenue of $158 million and EPS of $0.48.
Debt Paydown Continues. During the quarter, DLH reduced the outstanding term loan to $42.9 million from the $46.8 million outstanding at fiscal year end. Mandatory principal amortization on the loan has now been satisfied until March 31, 2024. 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 …
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.
