DLH Holdings Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>DLH Holdings Corp. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and operational status.</b>

AI Summary

DLH Holdings Corp. (DLHC) filed a Quarterly Report (10-Q) with the SEC on January 31, 2024. DLH Holdings Corp. filed a 10-Q for the quarter ending December 31, 2023. The filing covers the period from October 1, 2023, to December 31, 2023. The company's fiscal year ends on September 30. DLH Holdings Corp. was formerly known as TEAMSTAFF INC and DIGITAL SOLUTIONS INC. The company is incorporated in New Jersey and headquartered in Atlanta, GA.

Why It Matters

For investors and stakeholders tracking DLH Holdings Corp., this filing contains several important signals. This filing provides investors with an update on DLH Holdings Corp.'s financial health and operational progress during the specified quarter. Understanding the details within this 10-Q is crucial for assessing the company's performance against its previous periods and its overall market position.

Risk Assessment

Risk Level: low — DLH Holdings Corp. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Monitor future filings for revenue growth and net income trends, particularly in relation to government contracts.

Key Numbers

• 2023-12-31 — Report Period End Date (Quarterly report filing)
• 2024-01-31 — Filing Date (10-Q filing date)
• 0930 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• DLH Holdings Corp. (company) — Filer and subject of the report
• TEAMSTAFF INC (company) — Former company name
• DIGITAL SOLUTIONS INC (company) — Former company name
• Department of Health and Human Services (company) — Major customer segment
• Department of Veterans Affairs (company) — Major customer segment
• Department of Defense (company) — Major customer segment

Forward-Looking Statements

• DLH Holdings Corp. will continue to have high revenue concentration from government contracts, particularly with the Department of Health and Human Services, in the near future. (DLH Holdings Corp.) — high confidence, target: 2024-09-30

FAQ

Industry Context

DLH Holdings Corp. operates in the services sector, specifically within help supply services (SIC 7363), often serving government clients.

Regulatory Implications

The company's operations are subject to regulations governing government contracting and service provision, particularly within defense and health sectors.

What Investors Should Do

1. Analyze revenue breakdown by customer segment (HHS, VA, DoD, Other) in future filings.
2. Track any changes in contract types (e.g., Time and Materials) and their impact on revenue.
3. Monitor the company's financial health indicators in subsequent reports.

Key Dates

• 2023-12-31: Quarterly Period End — Financial data reported in the 10-Q pertains to this date.
• 2024-01-31: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. No prior period comparison data is available from this specific document.

Key Financial Figures

• $250,000 — ral Deposit Insurance Corporation up to $250,000. Deposits held with financial instituti

Filing Documents

• dlhc-20231231.htm (10-Q) — 910KB
• exhibit311.htm (EX-31.1) — 4KB
• exhibit312.htm (EX-31.2) — 4KB
• exhibit32a.htm (EX-32) — 2KB
• exhibit311001.jpg (GRAPHIC) — 199KB
• exhibit312001.jpg (GRAPHIC) — 197KB
• exhibit32a001.jpg (GRAPHIC) — 102KB
• 0000785557-24-000015.txt (&nbsp;) — 6626KB
• dlhc-20231231.xsd (EX-101.SCH) — 42KB
• dlhc-20231231_cal.xml (EX-101.CAL) — 94KB
• dlhc-20231231_def.xml (EX-101.DEF) — 157KB
• dlhc-20231231_lab.xml (EX-101.LAB) — 612KB
• dlhc-20231231_pre.xml (EX-101.PRE) — 393KB
• dlhc-20231231_htm.xml (XML) — 811KB

— Financial Information

Part I — Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Statements of Operations for the three months ended December 31, 2023 and 2022 (Unaudited) 3 Consolidated Balance Sheets as of December 31, 2023 (Unaudited) and September 30, 2023 4 Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022 (Unaudited) 5 Consolidated Statements of Shareholders' Equity for the three months ended December 31, 2023 and 2022 (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 29

— Other Information

Part II — Other Information 29

Legal Proceedings

Item 1. Legal Proceedings 29

Risk Factors

Item 1A. Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 31 Signature 32 2 ITEM I: FINANCIAL STATEMENTS DLH HOLDINGS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts) Three months ended December 31, 2023 2022 Revenue $ 97,850 $ 72,738 Cost of operations: Contract costs 79,081 57,256 General and administrative costs 7,697 7,424 Corporate development costs — 1,735 Depreciation and amortization 4,253 2,402 Total operating costs 91,031 68,817 Income from operations 6,819 3,921 Interest expense 4,658 1,830 Income before provision for income tax 2,161 2,091 Provision for income tax expense 10 544 Net income $ 2,151 $ 1,547 Net income per share - basic $ 0.15 $ 0.12 Net income per share - diluted $ 0.15 $ 0.11 Weighted average common stock outstanding Basic 14,032 13,306 Diluted 14,796 14,276 The accompanying notes are an integral part of these consolidated financial statements. 3 DLH HOLDINGS CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except par value of shares) December 31, 2023 September 30, 2023 (unaudited) ASSETS Current assets: Cash $ 131 $ 215 Accounts receivable 55,577 59,119 Other current assets 2,916 3,067 Total current assets 58,624 62,401 Goodwill 138,161 138,161 Intangible assets, net 120,663 124,777 Operating lease right-of-use assets 8,996 9,656 Deferred taxes, net 3,076 3,070 Equipment and improvements, net 1,625 1,590 Other long-term assets 185 186 Total assets $ 331,330 $ 339,841 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 22,307 $ 29,704 Debt obligations - current, net of deferred financing costs 16,130 17,188 Accrued payroll 15,703 13,794 Operating lease liabilities - current 3,353 3,463 Other current liabilities 564 638 Total current liabilities 58,057 64,787 Long-term liabilities: Debt obligations - long-term, net of deferred financing costs 151,870 155,147 Operating lease liabilities - long-term 15,042 15,908 O

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) December 31, 2023 1. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of DLH Holdings Corp. and its wholly-owned subsidiaries (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our"). All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. Operating results for the three months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2024 or any future period. Amounts as of December 31, 2023 and for the three months ended December 31, 2023 and 2022 are unaudited. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2023 filed with the Securities and Exchange Commission on December 6, 2023. 2. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The most significant of these estimates and assumptions relate to estimating costs including overhead and its allocation, valuing and determining the amortization periods for long-lived intangible assets, inter

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