In This Article:
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Fourth Quarter Revenue: $96.4 million.
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Full Year Revenue: Nearly $396 million, a 5.3% increase.
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Fourth Quarter Adjusted EBITDA: $10.7 million, down from $12.1 million in the prior year.
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Full Year Adjusted EBITDA: $42 million, roughly flat year over year.
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Fourth Quarter Operating Cash Flow: $12.5 million.
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Full Year Operating Cash Flow: $27.4 million, down from $31 million in 2023.
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Total Debt Outstanding: $154.6 million, with $11.9 million paid down in the fourth quarter.
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New Contract Award: $76 million contract with the United States Navy.
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Day Sales Outstanding: Decreased to 45 days.
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EBITDA Margin: 10.6% for the fiscal year.
Release Date: December 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DLH Holdings Corp (NASDAQ:DLHC) reported a strong fourth quarter revenue of $96.4 million, contributing to a full-year revenue increase to nearly $396 million, surpassing previous records.
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The company successfully generated operating cash of $12.5 million during the fourth quarter, leading to a total of $27.4 million for the fiscal year.
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DLH Holdings Corp (NASDAQ:DLHC) announced a significant $76 million contract award with the United States Navy, showcasing its competitive edge and ability to unseat long-term incumbents.
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The company has a robust pipeline of qualified opportunities estimated to be worth over $4 billion, positioning it for future expansion and improved operating performance.
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DLH Holdings Corp (NASDAQ:DLHC) has successfully paid down $11.9 million of its higher interest floating rate debt, ending the fiscal year with $154.6 million in total debt outstanding, and has satisfied all mandatory amortization payments through fiscal 2025.
Negative Points
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The company experienced a decline in adjusted EBITDA for the fourth quarter, down to $10.7 million from $12.1 million in the previous year, due to a higher proportion of revenue derived from non-labor costs.
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DLH Holdings Corp (NASDAQ:DLHC) faces headwinds from small business set-aside programs, impacting its revenue and requiring strategic adjustments.
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The ongoing government procurement landscape changes, including continuing resolutions and a new administration, present uncertainties that could affect DLH Holdings Corp (NASDAQ:DLHC)'s addressable market and growth forecasts.
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The company anticipates potential erosion in revenue due to small business transitions and the impact of executive orders encouraging more work to be set aside for small businesses.
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DLH Holdings Corp (NASDAQ:DLHC) expects its EBITDA margin to temporarily decrease to around 9% as it invests in strategic solutioning and business development initiatives to drive organic growth.