DLH : Second Quarter FY2025 Earnings Presentation

Published: 2025-05-08 09:51:12 ET DLHC

Published on 05/08/2025 at 09:51

Three Months Ended 3.31.25

May 8, 2025

Zach Parker

President and Chief Executive Officer

Kathryn JohnBull

Chief Financial Officer

"Safe Harbor" Statement under the Private Securities Litigation

Reform Act of 1GG5:

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. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: including the measures to reduce its spread, and its impact on the economy and demand for our services, are uncertain, cannot be predicted, and may precipitate or exacerbate other risks and uncertainties; the diversion of management's attention from normal daily operations of the business and the challenges of managing larger and more widespread; 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 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, 2024, 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.

Fiscal 2025 Q2

Robust cash generation remains key tool to reduce debt and strengthen the balance sheet

$151.7 million total debt, a reduction of $15.3 million from Q1

As of earnings call, mandatory term debt paid through March 31, 2026, a year ahead of schedule

Amended credit facility announced in Nov. 2024 continues to offer flexibility as Company navigates small business "unbundling"

President's fiscal 2026 discretionary budget request indicates future initiatives and priorities; essentially offsets growth in defense

Expectation that technology-enabled mission support will be relatively stable in FY26 funding

Recent win to continue providing services that enhance military health technologies and capabilities highlights our ability to deliver

Increased bidding activity exiting Q2 illustrates the continued demand for infusing technology to improve outcomes and readiness

With more than $1.0 billion in contract value under review, we expect award decisions as the second half of the fiscal year develops, providing early indicators of organic growth

President's proposed budget calls for robust funding for previously articulated areas of emphasis

Increasing Cybersecurity

Embedding AI/ML

Modernizing IT systems

Researching chronic diseases

Prioritizing cost efficiency

Reducing regulatory burden

Promoting healthy lifestyles

President's budget request recommends strong funding levels for priority areas and DLH customer agencies

Demand Channels:

Military Health

Defense C Cybersecurity

Veterans

Public Health Infrastructure

DLH maintains healthy new business pipeline, bolstered by capabilities aligned with Admin priorities

$3.5B in opportunities of varied scope and size, across each of our market areas

Disclaimer

DLH Holdings Corp. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 13:50 UTC.