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DLH Holdings Corp. : DLH REPORTS THIRD QUARTER FISCAL 2013 RESULTS

      DLH Holdings Corp. : DLH REPORTS THIRD QUARTER FISCAL 2013 RESULTS

1.Quarterly revenues increased 6.7% year over year

2.Gross profit grew 24.2% versus the prior year 

3.Company delivered positive net income for the quarter ended June30,  2013 
    

4.Company reported third consecutive quarter of revenue growth

5.Management to conduct conference call/webcast  today, August 14, 2013,  at 
    11:00 a.m. EST

Atlanta, Georgia  - August,  14,  2013-DLH Holdings  Corp. (NASDAQ:  DLHC),  a 
technical services  provider to  Federal government  agencies specializing  in 
healthcare, logistics,  and  contingency response  announced  today  financial 
results for  its third  quarter  ended June30,  2013. The  company  reported 
quarterly revenue at $13.5 million and achieved positive net income.

Table 1 - Financial Highlights

                       For the Three Months Ended  For the Nine Months Ended
                                June 30,                    June 30,
 ($ in thousands,          2013          2012          2013          2012
 except per share
 amounts)
 Operating revenues    $  13,460     $  12,618     $  39,462     $  36,732
 Gross profit          $   1,975     $   1,590     $   5,535     $   4,455
 Gross profit %             14.7  %       12.6  %       14.0  %       12.1  %
 Income (loss) from    $     158     $    (625  )  $      74     $  (1,399  )
 operations
 Net income (loss)     $      68     $    (568  )  $    (169  )  $  (1,672  )
 Income (loss) per     $    0.01     $   (0.09  )  $   (0.02  )  $   (0.27  )
 share - basic and
 diluted
 Other Data
 Adjusted EBITDA (1)   $     228     $    (498  )  $     337     $  (1,003  )

Management Discussion

Commenting on the Company's results, President and Chief Executive Officer  of 
DLH, Zach  Parker  stated: "Our  third  quarter  met our  overall  goals  and 
expectations, and  we  are pleased  to  report  that the  Company  has  posted 
positive net income for the quarter  in addition to continued revenue  growth. 
We believe that our third consecutive  quarter of positive adjusted EBITDA  is 
indicative of a  sustainable trend. We  further believe that  the markets  we 
have targeted will enhance our ability to weather the government sequestration
issues. As  always,  we  remain  focused on  long-term  growth  and  improving 
shareholder value."

The Company's FY13 Q3 results  reflect that quarterly revenues increased  6.7% 
over the third quarter of FY12.

Kathryn JohnBull,  DLH CFO,  added:  "Our third  quarter results  reflect  our 
successful efforts to  control costs while  delivering world-class support  to 
our customers and partners. While there are many risk factors that we continue
to manage through, we  believe we have refined  our business model to  support 
our ability to  consistently deliver positive  adjusted EBITDA. This  quarter 
notably marks three consecutive quarters of revenue growth. Additionally, the
Company's gross profit has  increased 24.2% over the  previous year, based  on 
improved contract performance and cost management."

Results for Three Months Ended June30, 2013


Revenues for the three months ended June30, 2013 and 2012 were $13.5million
and $12.6million, respectively, which represents an increase of $0.9million
or 6.7%, despite extended government delays in major awards. The increase in
revenue is due primarily to expansion on current programs.

Gross profit for the three months ended June30, 2013 and 2012 was
$2.0million and $1.6million, respectively, which represents an increase of
$0.4million or 24.2%. As a percentage of revenue, gross profit was 14.7% and
12.6%, for the three months ended June30, 2013 and 2012, respectively.The
gross profit rate benefited from improved contract performance and cost
management.

Total G&A expenses for the three months ended June30, 2013 and 2012 were
$1.8million and $2.2million, respectively, a decrease of $0.4 million or
18.0%. As a percent of revenue, G&A expenses were 13.5% and 17.6% for the
three months ended June30, 2013 and 2012, respectively. This improvement was
due principally to CFO transition costs of $0.2 million in the prior year
period.  Additionally, cost reduction initiatives helped to improve operating
margins as revenue grew.

Income from operations for the three months ended June30, 2013 was
approximately $158,000 as compared to loss from operations for the three
months ended June30, 2012 of approximately $625,000. The improvement in
income from operations results from improved gross margin and decreased
general and administrative expenses described above.

Net income for the three months ended June30, 2013 was $68,000, or $0.01 per
basic and diluted share, as compared to loss from continuing operations of
($568,000) or ($0.09) per basic and diluted share for the three months ended
June30, 2012. This improvement is due to increased gross profit and
constraints on spending as described in the preceding paragraphs.

Earnings (Loss) Before Interest Tax Depreciation and Amortization ("EBITDA")
adjusted for other non-cash charges ("Adjusted EBITDA"(1)) for the three
months ended June30, 2013 was $228,000 as compared to ($498,000) for the
three months ended June30, 2012, due principally to the increased gross
profit and reduced expenses described above.

Results for Nine Months Ended June30, 2013

Revenues for the nine months ended June30, 2013 and 2012 were $39.5 million
and $36.7 million respectively, which represents an increase of $2.8 million
or 7.4% over the prior fiscal period. The increase in revenue is due
primarily to expansion on current programs as well as having the full nine
month impact of new business awards received during the prior year period.

Gross profit for the nine months ended June30, 2013 and 2012 was $5.5 million
and $4.5 million, respectively, which represents an increase of $1.0 million
or 24.2% over the prior fiscal year period. As a percentage of revenue, gross
profit was 14.0% and 12.1% for the nine months ended June30, 2013 and 2012,
respectively. The gross profit rate benefited from improved contract
performance and cost management.

Total G&A expenses for the nine months ended June30, 2013 and 2012 were $5.5
million and $5.9 million respectively, a decrease of $0.4 million or 6.7%. As
a percent of revenue, G&A expenses were 13.8% and 15.9% for the nine months
ended June30, 2013 and 2012, respectively. The year-over-year reduction in
G&A expenses is due to CFO transition expenses of $0.2 million in the prior
year period. Additionally, cost reduction initiatives helped to improve
operating margins as revenue grew.

Income from operations for nine months ended June30, 2013 was approximately
$74,000 as compared to loss from operations for the nine months ended June30,
2012 of approximately $1,399,000. The improvement in income from operations
results from the same factors as discussed for the three-month period ended
June30, 2013.

Net loss for the nine months ended June30, 2013 was ($0.17million), or
($0.02) per basic and diluted share, as compared to net loss of
($1.67million), or ($0.27) per basic and diluted share for the nine months
ended June30, 2012. This improvement is due to increased gross profit,
constraints on spending, and reduced other expenses as described in the
preceding paragraphs.

Earnings (Loss) Before Interest Tax Depreciation and Amortization ("EBITDA")
adjusted for other non-cash charges ("Adjusted EBITDA"(1)) for the nine months
ended June30, 2013 was $337,000 as compared to ($1,003,000) for the nine
months ended June30, 2012, due principally to the increased gross profit and
reduced expenses 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 plus (i)interest  and 
    other expenses, net, (ii)provision for  or benefit from income taxes,  if 
    any, (iii)depreciation and amortization,  and (iv)G&A expenses -  equity 
    grants. 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,  USGAAP 
    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
    is as follows:

                        Forthethreemonths ended  Fortheninemonths ended
                                 June 30,                   June 30,
                           2013          2012          2013          2012
 Net income (loss)      $       68   $    (568  )   $   (169  )  $  (1,672  )
 (i)Interest and               90         (57  )        243           273
 other expenses (net)
 (ii)Provision for              -           -             -             -
 taxes
 (iii)Amortization             30          37            95            87
 and depreciation
 (iv)G&A expenses              40          90           168           309
 -equity grants
 EBITDA adjusted for    $      228   $    (498  )   $    337     $  (1,003  )
 other non-cash
 charges

Conference Call and Webcast Details

Interested parties may participate in the conference call on Wednesday, August
14, 2013 at 11:00 AM EST by dialing 1-888-953-6857; international callers dial
1-617-399-3481 (passcode 28728748) approximately five  to 10 minutes prior  to 
the call. The  conference call will  also be available  on replay starting  at 
1:00 PM EST on August 14, 2013 and ending on August 21, 2013. For the  replay, 
please  dial  1-888-286-8010   (passcode  66971789)   or  1-617-801-6888   for 
international callers.

About DLH

DLH Holdings Corp. (Nasdaq: DLHC) serves clients throughout the United States
as a technical services provider to Federal government agencies specializing
in healthcare, logistics, and contingency response services. Headquartered in
Atlanta, GA the company was named as a Top 100 Public Company by Georgia
Trend, and is a member of the National Defense Industrial Association. DLH
has over 1,000 employees working in over 20 states throughout the country.
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 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 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.  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.  In light  of  the 
significant risks and uncertainties inherent in the forward-looking statements
included herein, the inclusion of such statements should not be regarded as  a 
representation by the  Company or  any other  person that  the objectives  and 
plans  of  the  Company  will  be  achieved.  The  forward-looking  statements 
contained in this press release are made as of the date hereof and may  become 
outdated over  time.  The  Company  does not  assume  any  responsibility  for 
updating any forward-looking statements.

                               TABLES TO FOLLOW

                     DLH HOLDINGS CORP. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS

               (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                                         (unaudited)
                                                  For the Three Months Ended
                                                    June30,      June30,
                                                      2013          2012
 REVENUES                                         $  13,460     $  12,618
 DIRECT EXPENSES                                     11,485        11,028
 GROSS PROFIT                                         1,975         1,590
 GENERAL AND ADMINISTRATIVE EXPENSES                  1,787         1,942
 SEVERANCE                                                -           236
 DEPRECIATION AND AMORTIZATION                           30            37
 Income (loss) from operations                          158          (625  )
 OTHER INCOME (EXPENSE)
 Interest expense, net                                  (38  )        (71  )
 Amortization of financing costs                        (38  )        (57  )
 Change in value of financial instruments                 7           186
 Other income (expense), net                            (21  )         (1  )
                                                        (90  )         57
 Income (loss) before income taxes                       68          (568  )
 INCOME TAX EXPENSE                                       -             -
 NET INCOME (LOSS)                                $      68     $    (568  )
 NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED
 Net income (loss) per share                      $    0.01     $   (0.09  )
 WEIGHTED AVERAGE BASIC SHARES OUTSTANDING            9,318         6,621
 WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING          9,336         6,621

                     DLH HOLDINGS CORP. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS

               (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                                          (unaudited)
                                                   For the Nine Months Ended
                                                     June30,      June30,
                                                       2013          2012
 REVENUES                                          $  39,462     $  36,732
 DIRECT EXPENSES                                      33,927        32,277
 GROSS PROFIT                                          5,535         4,455
 GENERAL AND ADMINISTRATIVE EXPENSES                   5,366         5,531
 SEVERANCE                                                 -           236
 DEPRECIATION AND AMORTIZATION                            95            87
 Income (loss) from operations                            74        (1,399  )
 OTHER INCOME (EXPENSE)
 Interest expense, net                                  (131  )       (233  )
 Amortization of financing costs                        (144  )       (143  )
 Change in value of financial instruments                 48           102
 Other income (expense), net                             (16  )          1
                                                        (243  )       (273  )
 Loss before income taxes                               (169  )     (1,672  )
 INCOME TAX EXPENSE                                        -             -
 NET LOSS                                          $    (169  )  $  (1,672  )
 NET LOSS PER SHARE - BASIC AND DILUTED
 Net loss per share                                $   (0.02  )  $   (0.27  )
 WEIGHTED AVERAGE BASIC AND DILUTED SHARES             9,307         6,254
 OUTSTANDING

                     DLH HOLDINGS CORP. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

                            (AMOUNTS IN THOUSANDS)

                                                  (unaudited)
                                                    June 30,    September 30,
                                                      2013          2012
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents                        $   3,310          3,089
 Accounts receivable, net of allowance for           12,510         13,028
 doubtful accounts of $0 as of June 30, 2013 and
 September30, 2012 (including unbilled
 receivables of $9.3 million)
 Prepaid workers' compensation                          338            516
 Other current assets                                   316            133
 Total current assets                                16,474         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        (524  )        (429  )
 Equipment and improvements, net                        182            268
 GOODWILL                                             8,595          8,595
 OTHER ASSETS
 Deposit for workers compensation insurance           1,030            730
 Other assets                                            25             63
 Total other assets                                   1,055            793
 TOTAL ASSETS                                     $  26,306     $   26,422

                     DLH HOLDINGS CORP. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

              (AMOUNTS IN THOUSANDS EXCEPT PAR VALUE OF SHARES)

                                                  (unaudited)
                                                    June 30,    September 30,
                                                      2013          2012
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Bank loan payable                                $   2,313     $    2,363
 Current portion of capital lease obligations            36             51
 Convertible debenture, net                             310              -
 Derivative financial instruments, at fair value         71              -
 Accrued payroll                                     10,791         10,855
 Accounts payable                                       508            655
 Accrued expenses and other current liabilities       4,372          4,158
 Liabilities from discontinued operation                150            185
 Total current liabilities                           18,551         18,267
 LONG TERM LIABILITIES
 Convertible debenture, net                               -            202
 Derivative financial instruments, at fair value          -            119
 Capital lease obligations                                -             22
 Other long term liability                               20             62
 Total long term liabilities                             20            405
 Total liabilities                                   18,571         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                9              9
 40,000 shares; issued 9,320 at June 30, 2013
 and 9,268 at September30, 2012, outstanding
 9,318 at June 30, 2013 and 9,266 at
 September30, 2012
 Additional paid-in capital                          75,361         75,207
 Accumulated deficit                                (67,611  )     (67,442  )
 Treasury stock, 2 shares at cost at June 30,           (24  )         (24  )
 2013 and September30, 2012
 Total shareholders' equity                           7,735          7,750
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $  26,306     $   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

www.investorrelations@dlhcorp.com

                                     ###

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Source: DLH Holdings Corp. via Thomson Reuters ONE
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