DLH FY15Q2 EarningsPresentation 050615 100pm · EARNINGS PRESENTATION FY 2015 Q2 May 7, 2015....

EARNINGS PRESENTATION

FY 2015 Q2

May 7, 2015

Intr

od

uctio

n

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contained in this press release are made as of the date hereof and may become outdated over time.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

Intr

od

uctio

n

Participants

Zachary Parker

President & Chief Executive Officer

Kathryn JohnBull

Chief Financial Officer

Casey Stegman, Stonegate Capital Partners

Investor Relations Advisor


Business & Financial Overview


CE

O O

verv

iew

FY2015 Q2 Executive Summary

5

• 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

CE

O O

verv

iew

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


Ke

y F

ina

ncia

ls

Q2 Revenue & Gross Margin over PY Q2


+ 7.8%

Revenue$ in Millions

Gross Margin$ in Millions

+ 24.1%

Ke

y F

ina

ncia

ls

Q2 Profit Measures over PY Q2


+128.9% + 83.3%+ 83.3%

Income from Operations$ in Thousands

Adjusted EBITDA$ in Thousands

Ke

y F

ina

ncia

ls

YTD Revenue & Gross Margin over Prior YTD


+ 8.1%

Revenue$ in Millions

Gross Margin$ in Millions

+ 22.1%

Ke

y F

ina

ncia

ls

YTD Profit Measures over Prior YTD


+166.0% + 82.0%+ 82.0%

Income from Operations$ in Thousands

Adjusted EBITDA$ in Thousands

Ke

y F

ina

ncia

ls

FY15 Q2 Financial Highlights


Ke

y F

ina

ncia

ls

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:


Ke

y F

ina

ncia

ls

Income Statement Trends


Ke

y F

ina

ncia

ls

Balance Sheet Trends


Question & Answer Session


Please contact [email protected] or visit http://www.dlhcorp.com/investor-relations.aspx

with any questions subsequent to the live call.


DLH FY15Q2 EarningsPresentation 050615 100pm · EARNINGS PRESENTATION FY 2015 Q2 May 7, 2015....

Documents

Transcript of DLH FY15Q2 EarningsPresentation 050615 100pm · EARNINGS PRESENTATION FY 2015 Q2 May 7, 2015....