2013-02-13 15:02:02 -
* Revenue grew 13.0% for the quarter versus the prior year
* Gross profit increased 14.1% for the quarter versus the prior year
* Company achieved positive adjusted EBITDA for the quarter ended December
31, 2012
* Management to conduct conference call/webcast on February 13, 2013 at 11:00
a.m. ET
Atlanta, Georgia - February 13, 2013-DLH Holdings Corp. (NASDAQ: DLHC), a
leading healthcare and logistics services provider to the Federal Government,
including the Departments of Defense and Veterans Affairs, announced today
financial results for its first quarter ended December 31, 2012.
Financial Highlights
For the Three Months Ended
December 31,
----------------------------------
($ in thousands, except per share
amounts) 2012 2011
------------------------------------------ ----------------------------------
Operating revenues $ 12,994 $ 11,495
Gross profit $ 1,788 $ 1,567
Gross profit percentage 13.8% 13.6%
Loss from operations (94) (210)
Net loss (128) (389)
Loss per share - basic and diluted $ (0.01) $ (0.06)
Other Data
Adjusted EBITDA ((1)) $ 29 $ (16)
Commenting on the Company's results, President and Chief Executive Officer of
DLH, Zachary Parker stated: "DLH's first quarter results demonstrate continued
progress in executing our strategy and driving value back into the company.
During the quarter we delivered solid revenue and generated positive cash flow
from operations even as revenue growth drove greater working capital needs . In
addition, our margins have improved as a function of our enhanced program
management and performance excellence initiatives that we implemented towards
the end of Fiscal 2012."
Parker added, "We began our fiscal year 2013 (FY13) with the assumption that the
federal government would continue to operate on a continuing resolution (CR)
rather than an approved budget for our entire fiscal year, which has so far been
the outcome. As such, we have assumed that government customers would have no
new funding for new contract awards. Combined with the uncertainties around
"sequestration" we anticipated continued paralysis with regard to new business
awards within DoD and most federal agencies. However, we remain confident in our
strategy to focus on our country's high priority mission programs and agencies.
We continue to see new business opportunities and maintain a healthy pipeline
for the future growth of the company."
Parker concluded: "Looking ahead, we continue to be sharply focused on Project
LEAN, which drives structural costs out of the business, and enhancing our
competitiveness for the future. These changes to the business are not only
essential at this stage of the company's transformation, but also are well
suited during this period of fiscal uncertainty for our government. With Project
LEAN well underway, we expect that its full effects should be seen in the coming
quarters. This gives us the confidence that we are on the right track towards
reaching our goal of delivering profitability in fiscal 2013 and beyond."
Chief Financial Officer, Kathryn JohnBull commented: "As Zach stated, the
Company always strives to attain the most cost efficient environment both
internally and externally. Although there are numerous risks facing us, as
described below, we believe the Company is on track to achieve our financial
goals and objectives for FY13 and we will remain focused on sustaining our
improvements, including positive adjusted EBITDA, throughout the upcoming
quarters."
Results for Three Months Ended December 31, 2012
Revenue for the three months ended December 31, 2012 increased 13.0% to $13.0
million compared to $11.5 million in the same period in fiscal 2012. The
increase in revenue is due primarily to expansion on current programs, as well
as the full quarter impact of new business awards received during the first
quarter of fiscal 2012.
Gross profit increased 14.1%, from $1.6 million to $1.8 million in fiscal 2012
and 2013, respectively, due largely to improved contract performance.
G&A expenses for the three months ended December 31, 2012 and 2011 were
$1.85 million and $1.76 million, respectively, an increase of 5.4%. This
increase is principally due to the timing of expenses for outside professional
services in the respective periods.
Loss from operations for the three months ended December 31, 2012 was
$0.1 million as compared to loss from operations for the three months ended
December 31, 2011 of $0.2 million.
Adjusted EBITDA for the three months ended December 31, 2012 was $29,000 as
compared to ($16,000) for the three months ended December 31, 2011, due
principally to the increased gross profit described above.
Reconciliation of Adjusted EBITDA (a non-GAAP financial measure) to net loss
from continuing operations
1. We present Adjusted EBITDA as a supplemental non-GAAP measure of our
performance. We define Adjusted EBITDA as net loss from continuing
operations plus (i) interest and other income/expenses, net, (ii) provision
for or benefit from income taxes, if any, (iii) depreciation and
amortization, (iv) G&A expenses - equity grants, and (v) impairment charges.
This non-GAAP measure of our performance is used by management to conduct
and evaluate its business during its regular review of operating results for
the periods presented. Management and the Company's Board utilize this non-
GAAP measure to make decisions about the use of the Company's resources,
analyze performance between periods, develop internal projections and
measure management performance. We believe that this non-GAAP measure is
useful to investors in evaluating the Company's ongoing operating and
financial results and understanding how such results compare with the
Company's historical performance. By providing this non-GAAP measure, as a
supplement to GAAP information, we believe we are enhancing investors'
understanding of our business and our results of operations. This non-GAAP
financial measure is limited in its usefulness and should be considered in
addition to, and not in lieu of, US GAAP financial measures. Further, this
non-GAAP measure may be unique to the Company, as it may be different from
the definition of non-GAAP measures used by other companies. A
reconciliation of Adjusted EBITDA with net loss from continuing operations
is as follows:
For the Three Months Ended
December 31,
-----------------------------------
2012 2011
-----------------------------------
Net loss $ (128) $ (389)
(i) interest and other expenses (net)
34 179
(ii) provision for taxes - -
(iii) amortization and depreciation
33 23
(iv) G&A expenses - equity grants
90 171
-----------------------------------
Adjusted EBITDA $ 29 $ (16)
-----------------------------------
Conference Call and Webcast Details
Interested parties may participate in the conference call on Wednesday, February
13, 2013 at 11:00 AM EST by dialing into the conference call line at
1-888-396-2298; international callers dial 1-617-847-8708 (passcode 52360375)
approximately five to ten minutes prior to 11:00 AM EST. The conference call
will also be available on replay starting at 1:00 PM EST on February 13, 2013
and ending on February 20, 2013. For the replay, please dial
1-888-286-8010(passcode 73675690) or 1-617-801-6888 for international callers.
About DLH
DLH Holdings Corp. (NASDAQ: DLHC) serves clients throughout the United States as
a full-service provider of healthcare, logistics, and technical support services
to DoD and Federal agencies. For more information, visit the corporate web site
at www.dlhcorp.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
This press release may contain forward-looking statements. These statements
relate to future events or DLH`s future financial performance. Any statements
that are not statements of historical fact (including without limitation
statements to the effect that the Company or its management "believes",
"expects", "anticipates", "plans" (and similar expressions)
should be considered
forward looking statements. There are a number of important factors that could
cause DLH`s actual results to differ materially from those indicated by the
forward looking statements. Such risks and uncertainties include, among other
things our ability to secure contract awards, including the ability to secure
renewals of contracts under which we currently provide services; our ability to
enter into contracts with United States Government facilities and agencies on
terms attractive to us and to secure orders related to those contracts; changes
in the timing of orders for and our placement of professionals and
administrative staff; the overall level of demand for the services we provide;
the variation in pricing of the contracts under which we place professionals;
government contract procurement (such as bid protest, small business set asides,
loss of work due to organizational conflicts of interest, etc.) and termination
risks; the results of government audits and reviews; our ability to manage
growth effectively; the performance of our management information and
communication systems; the effect of existing or future government legislation
and regulation; changes in government and customer priorities and requirements
(including changes to respond to the priorities of Congress and the
Administration, budgetary constraints, and cost-cutting initiatives); economic,
business and political conditions domestically (including the impact of
uncertainty regarding U.S. debt limits and actions taken related thereto); the
impact of medical malpractice and other claims asserted against us; the
disruption or adverse impact to our business as a result of a terrorist attack;
the loss of key officers, and management personnel; the competitive environment
for our services; the effect of recognition by us of an impairment to goodwill
and intangible assets; other tax and regulatory issues and developments; the
effect of adjustments by us to accruals for self-insured retentions; our ability
to obtain any needed financing; and the effect of other events and important
factors disclosed previously and from time-to-time in our filings with the U.S.
Securities Exchange Commission. 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, 2012. Given these risks and uncertainties, you are cautioned not
to place undue reliance on forward-looking statements. DLH undertakes no
obligation to publicly update or revise any forward-looking statement as a
result of new information, future events, changes in expectation or otherwise,
except as required by law.
TABLES TO FOLLOW
DLH HOLDINGS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Three Months Ended
December 31, December 31,
2012 2011
------------------------- -----------------------
REVENUES $ 12,994 $ 11,495
DIRECT EXPENSES 11,206 9,928
------------------------- -----------------------
GROSS PROFIT 1,788
1,567
GENERAL AND ADMINISTRATIVE
EXPENSES 1,849 1,754
DEPRECIATION AND AMORTIZATION 33 23
------------------------- -----------------------
Loss from operations (94) (210)
------------------------- -----------------------
OTHER INCOME (EXPENSE)
Interest expense (46) (77)
Amortization of deferred
financing costs (52) (46)
Change in fair value of
financial instruments 61 (56)
Other income, net 3 -
------------------------- -----------------------
(34) (179)
------------------------- -----------------------
Loss from continuing
operations before income
taxes (128) (389)
INCOME TAX EXPENSE - -
------------------------- -----------------------
NET LOSS $ (128) $
(389)
------------------------- -----------------------
NET GAIN (LOSS) PER SHARE -
BASIC AND DILUTED
$
Net loss per share $ (0.01) (0.06)
------------------------- -----------------------
WEIGHTED AVERAGE BASIC AND
DILUTED SHARES
OUTSTANDING 9,286 6,070
------------------------- -----------------------
DLH HOLDINGS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
December 31, September 30
ASSETS 2012 2012
----------------------- -----------------------
CURRENT ASSETS:
$ $
Cash and cash equivalents 3,239 3,089
Accounts receivable, net of
allowance for doubtful
accounts
of $0 as of December
31, 2012 and September 30,
2012 12,097 13,028
Prepaid workers'
compensation 516 516
Other current assets 357 133
Total current assets 16,209 16,766
----------------------- -----------------------
EQUIPMENT AND IMPROVEMENTS:
Furniture and equipment 139 139
Computer equipment 126 126
Computer software 417 408
Leasehold improvements 24 24
----------------------- -----------------------
706 697
Less accumulated
depreciation and
amortization (462) (429)
----------------------- -----------------------
Equipment and
improvements, net 244 268
----------------------- -----------------------
GOODWILL 8,595 8,595
OTHER ASSETS
Deferred financing costs,
net 5 9
Other assets 775 784
----------------------- -----------------------
Total other assets 780 793
----------------------- -----------------------
$ $
TOTAL ASSETS 25,828 26,422
----------------------- -----------------------
DLH HOLDINGS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS EXCEPT PAR VALUE OF SHARES)
December 31, September 30,
LIABILITIES AND
SHAREHOLDERS' EQUITY 2012 2012
------------------------ -----------------------
CURRENT LIABILITIES:
$ $
Bank loan payable 1,816 2,363
Current portion of capital
lease obligations 52 51
Convertible debenture, net 241
Derivative financial
instruments, at fair value 58
Accrued payroll 10,633 10,555
Accounts payable 2,468 2,296
Accrued expenses and other
current liabilities 2,646 2,817
Liabilities from
discontinued operation 178 185
------------------------ -----------------------
Total current
liabilities 18,092 18,267
------------------------ -----------------------
LONG TERM LIABILITIES
Convertible debenture, net - 202
Derivative financial
instruments, at fair value - 119
Capital Lease Obligations 9 22
Other long term liability 21 62
------------------------ -----------------------
Total long term
liabilities 30 405
------------------------ -----------------------
Total liabilities 18,122 18,672
------------------------ -----------------------
COMMITMENTS AND
CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $.10 par
value; authorized 5,000
shares;
none issued and
outstanding - -
Common stock, $.001 par
value; authorized 40,000
shares;
issued 9,320 at December
31, 2012 and 9,268 at
September 30, 2012,
outstanding 9,318 at
December 31, 2012 and
9,266 at September
30, 2012 9 9
Additional paid-in capital 75,291 75,207
Accumulated deficit (67,570) (67,442)
Treasury stock, 2 shares
at cost at December
31, 2012 and
September 30, 2012 (24) (24)
------------------------ -----------------------
Total shareholders'
equity 7,706 7,750
------------------------ -----------------------
TOTAL LIABILITIES AND $ $
SHAREHOLDERS' EQUITY 25,828 26,422
------------------------ -----------------------
CONTACTS:
Zachary C. Parker, President and Chief Executive Officer
Kathryn M. JohnBull, Chief Financial Officer
DLH
1776 Peachtree Street, NW
Atlanta, GA 30309
866-952-1647
Christy N. Buechler, Marketing & Communications Manager (Media)
DLH
678-935-1531
christy.buechler@dlhcorp.com
(Investor Relations)
Donald C. Weinberger/Adam Lowensteiner
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
don@wolfeaxelrod.com
adam@wolfeaxelrod.com
###
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: DLH Holdings Corp. via Thomson Reuters ONE
[HUG#1677183]
