dlh fy15q2 earningspresentation 050615 100pm · earnings presentation fy 2015 q2 may 7, 2015....
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EARNINGS PRESENTATION
FY 2015 Q2
May 7, 2015
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Forward-Looking Statement
"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. 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, 2014. 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contained in this press release are made as of the date hereof and may become outdated over time.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.
© 2015 | DLH | Proprietary | FY15 Q2 Earnings 2
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Participants
Zachary Parker
President & Chief Executive Officer
Kathryn JohnBull
Chief Financial Officer
Casey Stegman, Stonegate Capital Partners
Investor Relations Advisor
© 2015 | DLH | Proprietary | FY15 Q2 Earnings 3
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Business & Financial Overview
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FY2015 Q2 Executive Summary
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• Strong operating performance; improvement in key metrics
• Continued to add business development resources with deep
federal health experience
• Leveraging our success and differentiators to capture an
increased share of the growing federal health market− Federal health insurance spending
− Telehealth increasing demand
− Prescription drugs spending
− Department of Veterans Affairs health spending
• Solid backlog and robust qualified pipeline − Emphasis on telehealth and pharmacy operations management
© 2015 | DLH | Proprietary | FY15 Q2 Earnings
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FY2015 Q2 Performance Summary
• Generated $15.9M in revenue; increased 7.8% over prior year second quarter
• Realized $2.7M of gross margin; improved 24.1% compared to prior year second quarter
• Earned $0.5M income from operations; increased 129% over prior year second quarter
• Attained $0.6M Adjusted EBITDA; increased 83.3% over prior year second quarter
• Net results impacted by a non-cash, non-operating charge of $0.6 million in settlement of the retroactive payment claim
• Continued to generate cash from operations; ended Q2 with a strong net cash position
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Q2 Revenue & Gross Margin over PY Q2
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+ 7.8%
Revenue$ in Millions
Gross Margin$ in Millions
+ 24.1%
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Q2 Profit Measures over PY Q2
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+128.9% + 83.3%+ 83.3%
Income from Operations$ in Thousands
Adjusted EBITDA$ in Thousands
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YTD Revenue & Gross Margin over Prior YTD
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+ 8.1%
Revenue$ in Millions
Gross Margin$ in Millions
+ 22.1%
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YTD Profit Measures over Prior YTD
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+166.0% + 82.0%+ 82.0%
Income from Operations$ in Thousands
Adjusted EBITDA$ in Thousands
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FY15 Q2 Financial Highlights
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FY15 Q2 Adjusted EBITDA (1)
(1) We present Earnings Before Interest Tax Depreciation and Amortization (“EBITDA”) adjusted for other non-cash charges (“Adjusted
EBITDA”), as a supplemental non-GAAP measure of our performance. We define Adjusted EBITDA as net income 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, 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 income is shown above, in dollars in thousands:
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Income Statement Trends
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Balance Sheet Trends
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Question & Answer Session
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Please contact [email protected] or visit http://www.dlhcorp.com/investor-relations.aspx
with any questions subsequent to the live call.
© 2015 | DLH | Proprietary | FY15 Q2 Earnings 16