DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the
“Company”), a leading provider of research and
development, systems engineering and integration, and digital
transformation solutions to federal agencies, today announced
financial results for its fiscal second quarter ended
March 31, 2023.
Highlights
- Second quarter revenue was $99.4
million in fiscal 2023 versus $108.7 million in fiscal 2022; the
prior-year period included $39.8 million from the short-term FEMA
task orders in Alaska.
- Operating and net income for the
second quarter were $6.0 million and $0.8 million, respectively, as
compared to $10.3 million and $7.2 million for the prior-year
period. Operating income for the prior year period included $5.5
million from the FEMA task orders.
- Earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $10.5 million for the
second quarter as compared to $12.1 million in fiscal 2022. The
prior-year period included $5.5 million of EBITDA from the FEMA
task orders.
- Total debt at the end of the second
quarter was $204.2 million, compared to debt of $203.4 million as
of December 31, 2022. The Company further reduced its outstanding
debt balance to $196.3 million as of the date of this release.
- Contract backlog was $940.6 million
as of March 31, 2023 versus $942.7 million at the end of the
fiscal first quarter.
Management Discussion"Strong
second quarter results were in line with our expectations, as the
Company completed its first full quarter following the acquisition
of GRSi," said Zach Parker, DLH President and Chief Executive
Officer. "Revenue for the quarter, which essentially reached the
$100 million mark, demonstrates the achievement of a key milestone
in our strategy to grow revenue while diversifying our customer
base. Our improving EBITDA margins reflect our strategy to expand
our business base in highly differentiated capabilities, through
which we expect to earn better returns. As of today, we have paid
down over $10 million of acquisition debt, and we are confident in
our ability to significantly de-lever the balance sheet this
year.
"We announced an important award this quarter,
gaining a seat on a highly coveted contract vehicle to provide
technical solutions and support for the National Cancer Institute’s
Center for Biomedical Informatics and Information Technology. This
successful pursuit will allow DLH to contribute its expertise to
the national imperative of scientific research for cancer causes
and treatments. Such wins — and our significant pipeline of future
opportunities — underscore the strength of our advanced, innovative
offerings and the value that we have built through our growth
strategy.
“In addition, we were pleased to welcome Judy
Bjornaas, former Chief Financial Officer for ManTech, to the
Company's Board of Directors at our annual meeting in March. Given
her business acumen and experience within the industry, she has
already made a positive impact on our organization — and we look
forward to her playing a key role in our continued success. These
recent developments, our solid backlog, and strong demand for our
services position us well for the next chapter of our journey."
Results for the Three Months Ended
March 31, 2023Revenue for the second quarter of
fiscal 2023 was $99.4 million versus $108.7 million in fiscal 2022,
with the prior-year period reflecting a $39.8 million contribution
from the Company's short-term FEMA contracts in Alaska. Comparing
this quarter's revenue performance to the same period in the prior
fiscal year, excluding the impact from the FEMA contracts, revenue
increased $30.5 million, including contribution of $32.6 million
from GRSi.
Income from operations was $6.0 million for the
quarter versus $10.3 million in the prior-year period, which
included $5.5 million from the FEMA task orders. Comparing this
quarter's operating income performance to the same period in the
prior fiscal year, excluding the impact from the FEMA contracts,
operating income increased $1.2 million. As a percentage of
revenue, the Company reported an operating margin of 6.0% in the
fiscal 2023 second quarter versus 9.4% in fiscal 2022, with the
year-over-year decline primarily due to higher amortization expense
as a result of the GRSi acquisition.
Interest expense was $4.8 million in the fiscal second quarter
of 2023 versus $0.6 million in the prior-year period, reflecting
higher debt outstanding due to the acquisition of GRSi and
increased interest rates. Income before income taxes was $1.2
million this year versus $9.7 million in fiscal 2022, representing
1.2% and 8.9% of revenue, respectively, for each period.
For the three months ended March 31, 2023
and 2022, respectively, DLH recorded a $0.4 million and $2.5
million provision for income taxes. The Company reported net income
of approximately $0.8 million, or $0.06 per diluted share, for the
second quarter of fiscal 2023 versus $7.2 million, or $0.50 per
diluted share, for the second quarter of fiscal 2022. As a
percentage of revenue, net income was 0.8% for the second quarter
of fiscal 2023 versus 6.6% for the prior-year period.
On a non-GAAP basis, EBITDA for the three months
ended March 31, 2023 was approximately $10.5 million versus
$12.1 million in the prior-year period, or 10.5% and 11.2% of
revenue, respectively. Adjusted EBITDA1 was $10.5 million versus
$6.6 million for the prior-year period, or 10.5% and 9.6% of
adjusted revenue, respectively.
Key Financial IndicatorsFor
fiscal 2023, DLH has produced $6.9 million in operating cash. As of
March 31, 2023, the Company had cash of $0.1 million and debt
outstanding under its credit facilities of $204.2 million versus
cash of $0.2 million and debt outstanding of $22.0 million as of
September 30, 2022. The Company's debt balance rose slightly during
the second quarter as compared to our outstanding debt balance at
the end of the first quarter reflecting the timing of funding on
certain contracts. The Company's outstanding debt balance was
reduced by $7.9 million after the end of the period and stood at
$196.3 million as of the date of this release. The Company is on
pace to reduce our total debt balance to between $185.0 million and
$190.0 million by the end of this fiscal year.
At March 31, 2023, total backlog was approximately $940.6
million, including funded backlog of approximately $132.0 million,
and unfunded backlog of $808.6 million.
Conference Call and Webcast
DetailsDLH management will discuss second quarter results
and provide a general business update, including current
competitive conditions and strategies, during a conference call
beginning at 10:00 AM Eastern Time tomorrow, May 4, 2023.
Interested parties may listen to the conference call by dialing
888-347-5290 or 412-317-5256. Presentation materials
will also be posted on the Investor Relations section of the DLH
website prior to the commencement of the conference
call.
A digital recording of the conference call will be available for
replay two hours after the completion of the call and can be
accessed on the DLH Investor Relations website or by dialing
877-344-7529 and entering the conference ID 9743329.
About DLHDLH (NASDAQ:DLHC) enhances public
health and national security readiness missions through science,
technology, cyber, and engineering solutions and services. Our
experts solve some of the most complex and critical missions faced
by federal customers, leveraging digital transformation, artificial
intelligence, advanced analytics, cloud-based applications,
telehealth systems, and more. With over 3,200 employees dedicated
to the idea that “Your Mission is Our Passion,” DLH brings a unique
combination of government sector experience, proven methodology,
and unwavering commitment to innovative solutions to improve the
lives of millions. For more information, visit www.DLHcorp.com.
1 Adjusted Operating Income, EBITDA, Adjusted
EBITDA, EBITDA Margin on Revenue, and Adjusted EBITDA Margin on
Adjusted Revenue are non-GAAP financial measures. See “Non-GAAP
Financial Measures” below for additional detail.
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 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: the
impact of the novel coronavirus (“COVID-19”), 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
risk that we will not realize the anticipated benefits of our
acquisition of GRSi or any other acquisitions (including
anticipated future financial performance and results); the
diversion of management’s attention from normal daily operations of
the business and the challenges of managing larger and more
widespread operations resulting from our recent acquisition; 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 ability to successfully integrate
the operations of GRSi or any future acquisitions; 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, 2022, 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.
Such forward-looking statements are made as of
the date hereof and may become outdated over time. The Company does
not assume any responsibility for updating forward-looking
statements, except as may be required by law.
CONTACTS:
INVESTOR RELATIONS |
Contact: Chris Witty |
Phone: 646-438-9385 |
Email: cwitty@darrowir.com |
TABLES TO FOLLOW
DLH HOLDINGS CORP. |
CONSOLIDATED STATEMENTS OF INCOME |
(Amounts in thousands except per share amounts) |
|
|
|
(unaudited) |
|
(unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Revenue |
|
$ |
99,417 |
|
$ |
108,699 |
|
$ |
172,155 |
|
$ |
261,500 |
Cost of Operations: |
|
|
|
|
|
|
|
|
Contract costs |
|
|
78,238 |
|
|
88,831 |
|
|
135,494 |
|
|
221,517 |
General and administrative costs |
|
|
10,693 |
|
|
7,733 |
|
|
18,117 |
|
|
14,644 |
Corporate development costs |
|
|
— |
|
|
— |
|
|
1,735 |
|
|
— |
Depreciation and amortization |
|
|
4,535 |
|
|
1,881 |
|
|
6,937 |
|
|
3,866 |
Total operating costs |
|
|
93,466 |
|
|
98,445 |
|
|
162,283 |
|
|
240,027 |
Income from operations |
|
|
5,951 |
|
|
10,254 |
|
|
9,872 |
|
|
21,473 |
Interest expense |
|
|
4,765 |
|
|
554 |
|
|
6,595 |
|
|
1,226 |
Income before provision for income taxes |
|
|
1,186 |
|
|
9,700 |
|
|
3,277 |
|
|
20,247 |
Provision for income
taxes |
|
|
381 |
|
|
2,522 |
|
|
925 |
|
|
5,265 |
Net income |
|
$ |
805 |
|
$ |
7,178 |
|
$ |
2,352 |
|
$ |
14,982 |
|
|
|
|
|
|
|
|
|
Net income per share -
basic |
|
$ |
0.06 |
|
$ |
0.56 |
|
$ |
0.17 |
|
$ |
1.17 |
Net income per share -
diluted |
|
$ |
0.06 |
|
$ |
0.50 |
|
$ |
0.16 |
|
$ |
1.04 |
Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
13,759 |
|
|
12,778 |
|
|
13,530 |
|
|
12,763 |
Diluted |
|
|
14,600 |
|
|
14,442 |
|
|
14,447 |
|
|
14,368 |
DLH HOLDINGS CORP. |
CONSOLIDATED BALANCE SHEETS |
(Amounts in thousands except par value of shares) |
|
|
|
March 31,2023 |
|
September 30,2022 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash |
|
$ |
137 |
|
$ |
228 |
Accounts receivable |
|
|
67,021 |
|
|
40,496 |
Other current assets |
|
|
3,513 |
|
|
2,878 |
Total current assets |
|
|
70,671 |
|
|
43,602 |
Equipment and improvements,
net |
|
|
1,558 |
|
|
1,704 |
Operating lease right-of-use
assets |
|
|
18,754 |
|
|
16,851 |
Goodwill |
|
|
138,301 |
|
|
65,643 |
Intangible assets, net |
|
|
133,109 |
|
|
40,884 |
Other long-term assets |
|
|
183 |
|
|
328 |
Total
assets |
|
$ |
362,576 |
|
$ |
169,012 |
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Operating lease liabilities - current |
|
$ |
3,452 |
|
$ |
2,235 |
Accrued payroll |
|
|
17,279 |
|
|
9,444 |
Debt obligations - current, net of deferred financing costs |
|
|
33,267 |
|
|
— |
Accounts payable and accrued liabilities |
|
|
25,066 |
|
|
26,862 |
Total current liabilities |
|
|
79,064 |
|
|
38,541 |
Long-term liabilities: |
|
|
|
|
Deferred taxes, net |
|
|
1,203 |
|
|
1,534 |
Operating lease liabilities - long-term |
|
|
17,337 |
|
|
16,461 |
Debt obligations - long-term, net of deferred financing costs |
|
|
162,636 |
|
|
20,416 |
Other long-term liabilities |
|
|
396 |
|
|
— |
Total long-term
liabilities |
|
|
181,572 |
|
|
38,411 |
Total liabilities |
|
|
260,636 |
|
|
76,952 |
Shareholders' equity: |
|
|
|
|
Common stock, $0.001 par
value; authorized 40,000 shares; issued and outstanding 13,793 and
13,047 at March 31, 2023 and September 30, 2022,
respectively |
|
|
14 |
|
|
13 |
Additional paid-in capital |
|
|
98,584 |
|
|
91,057 |
Retained earnings |
|
|
3,342 |
|
|
990 |
Total shareholders’
equity |
|
|
101,940 |
|
|
92,060 |
Total liabilities and
shareholders' equity |
|
$ |
362,576 |
|
$ |
169,012 |
DLH HOLDINGS CORP. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Amounts in thousands) |
|
|
(unaudited) |
|
|
Six Months Ended |
|
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Operating
activities |
|
|
|
|
Net income |
|
$ |
2,352 |
|
|
$ |
14,982 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
6,937 |
|
|
|
3,866 |
|
Amortization of deferred financing costs charged to interest
expense |
|
|
904 |
|
|
|
319 |
|
Stock-based compensation expense |
|
|
1,352 |
|
|
|
1,309 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
(1,057 |
) |
|
|
(28,705 |
) |
Other current assets |
|
|
719 |
|
|
|
666 |
|
Accrued payroll |
|
|
8 |
|
|
|
3,339 |
|
Deferred revenue |
|
|
— |
|
|
|
(22,273 |
) |
Accounts payable and accrued liabilities |
|
|
(4,757 |
) |
|
|
11,600 |
|
Other long-term assets and liabilities |
|
|
404 |
|
|
|
82 |
|
Net cash provided by (used in) operating
activities |
|
|
6,862 |
|
|
|
(14,815 |
) |
Investing
activities |
|
|
|
|
Business acquisition, net of cash acquired |
|
|
(180,711 |
) |
|
|
— |
|
Purchase of equipment and improvements |
|
|
(463 |
) |
|
|
(89 |
) |
Net cash used in investing activities |
|
|
(181,174 |
) |
|
|
(89 |
) |
Financing
activities |
|
|
|
|
Proceeds from revolving line of credit |
|
|
32,594 |
|
|
|
13,500 |
|
Repayment of revolving line of credit |
|
|
(11,264 |
) |
|
|
(13,500 |
) |
Proceeds from debt obligations |
|
|
168,000 |
|
|
|
— |
|
Repayments of debt obligations |
|
|
(7,125 |
) |
|
|
(9,250 |
) |
Payments of deferred financing costs |
|
|
(7,622 |
) |
|
|
— |
|
Proceeds from issuance of common stock upon exercise of options and
warrants |
|
|
287 |
|
|
|
462 |
|
Payment of tax obligations resulting from net exercise of stock
options |
|
|
(649 |
) |
|
|
— |
|
Net cash provided by (used in) financing
activities |
|
|
174,221 |
|
|
|
(8,788 |
) |
|
|
|
|
|
Net change in cash |
|
|
(91 |
) |
|
|
(23,692 |
) |
Cash - beginning of
period |
|
|
228 |
|
|
|
24,051 |
|
Cash - end of
period |
|
$ |
137 |
|
|
$ |
359 |
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
Cash paid during the period for interest |
|
$ |
5,714 |
|
|
$ |
896 |
|
Cash paid during the period for income taxes |
|
$ |
3,202 |
|
|
$ |
3,482 |
|
|
|
|
|
|
Supplemental
disclosure of non-cash activity |
|
|
|
|
Common stock surrendered for the exercise of stock options |
|
$ |
238 |
|
|
$ |
— |
|
Non-GAAP Financial MeasuresThe
Company uses EBITDA and EBITDA Margin on Revenue as supplemental
non-GAAP measures of performance. We define EBITDA as net income
excluding (i) interest expense, (ii) provision for or benefit from
income taxes and (iii) depreciation and amortization. EBITDA Margin
on Revenue is EBITDA for the measurement period divided by revenue
for the same period.
The Company is presenting additional non-GAAP
measures regarding its financial performance for the three and six
months ended March 31, 2023. The measures presented are Adjusted
Revenue, Adjusted Operating Income, Adjusted EBITDA, and Adjusted
EBITDA Margin on Adjusted Revenue. In calculating these measures,
we have added the corporate development costs associated with
completing the GRSi acquisition to our results for fiscal year 2023
and we have removed the contribution from the FEMA task orders from
the results for fiscal year 2022. These resulting measures present
the quarterly financial performance compared to results delivered
in the prior year period. Definitions of these additional non-GAAP
measures are set forth below.
We have prepared these additional non-GAAP
measures to eliminate the impact of items that we do not consider
indicative of ongoing operating performance due to their inherent
unusual or extraordinary nature. These non-GAAP measures of
performance are used by management to conduct and evaluate its
business during its review of operating results for the periods
presented. Management and the Company's Board utilize these
non-GAAP measures 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
these non-GAAP measures are 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.
These supplemental performance measurements may vary from and
may not be comparable to similarly titled measures by other
companies in our industry. Further, the additional non-GAAP
financial measures we presented for the first quarter of fiscal
2023 excluded the contribution from GRSi due to the truncated
consolidation period. Since GRSi was part of the consolidated
financial performance for the full second quarter, we have included
their results in both the three and six month periods ended March
31, 2023. Adjusted Revenue, Adjusted Operating Income, EBITDA,
Adjusted EBITDA, EBITDA Margin on Revenue, and Adjusted EBITDA
Margin on Adjusted Revenue are not recognized measurements under
accounting principles generally accepted in the United States, or
GAAP, and when analyzing our performance investors should (i)
evaluate each adjustment in our reconciliation to the nearest GAAP
financial measures and (ii) use the aforementioned non-GAAP
measures in addition to, and not as an alternative to, revenue,
operating income, net income or diluted EPS, as measures of
operating results, each as defined under GAAP. We have defined
these non-GAAP measures as follows:
“Adjusted Revenue” represents revenue less the
contribution to revenue from the short-term FEMA task orders
“Adjusted Operating Income” represents operating
income plus the corporate development costs associated with
completing the GRSi acquisition incurred in fiscal 2023 less the
contribution from the FEMA task orders, which occurred in fiscal
2022.
“Adjusted EBITDA” represents net income before
income taxes, interest, depreciation and amortization and the
corporate costs associated with completing the acquisition, less
the contribution from FEMA task orders. “Adjusted EBITDA Margin on
Adjusted Revenue” is calculated as Adjusted EBITDA divided by
Adjusted Revenue.
Below is a reconciliation of Adjusted
Revenue, Adjusted Operating Income, EBITDA, Adjusted EBITDA, EBITDA
Margin on Revenue and Adjusted EBITDA Margin on Adjusted Revenue
reported for the three and six months ended
March 31, 2023 and
2022 compared to the most directly
comparable financial measure calculated and presented in accordance
with GAAP (in thousands except for per share amounts):
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
Adjusted
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
99,417 |
|
|
$ |
108,699 |
|
|
$ |
(9,282 |
) |
|
$ |
172,155 |
|
|
$ |
261,500 |
|
|
$ |
(89,345 |
) |
Less: FEMA task orders to
support Alaska (a) |
|
|
— |
|
|
|
39,764 |
|
|
|
(39,764 |
) |
|
|
— |
|
|
|
130,889 |
|
|
|
(130,889 |
) |
Adjusted Revenue |
|
$ |
99,417 |
|
|
$ |
68,935 |
|
|
$ |
30,482 |
|
|
$ |
172,155 |
|
|
$ |
130,611 |
|
|
$ |
41,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
5,951 |
|
|
$ |
10,254 |
|
|
$ |
(4,303 |
) |
|
$ |
9,872 |
|
|
$ |
21,473 |
|
|
$ |
(11,601 |
) |
Corporate development costs
(b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,735 |
|
|
|
— |
|
|
|
1,735 |
|
Less: FEMA task orders to
support Alaska (c) |
|
|
— |
|
|
|
5,525 |
|
|
|
(5,525 |
) |
|
|
— |
|
|
|
11,871 |
|
|
|
(11,871 |
) |
Adjusted Operating Income |
|
$ |
5,951 |
|
|
$ |
4,729 |
|
|
$ |
1,222 |
|
|
$ |
11,607 |
|
|
$ |
9,602 |
|
|
$ |
2,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, Adjusted
EBITDA, EBITDA Margin on Revenue & Adjusted EBITDA Margin on
Adjusted Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
805 |
|
|
$ |
7,178 |
|
|
$ |
(6,373 |
) |
|
$ |
2,352 |
|
|
$ |
14,982 |
|
|
$ |
(12,630 |
) |
Depreciation and
amortization |
|
|
4,535 |
|
|
|
1,881 |
|
|
|
2,654 |
|
|
|
6,937 |
|
|
|
3,866 |
|
|
|
3,071 |
|
Interest expense |
|
|
4,765 |
|
|
|
554 |
|
|
|
4,211 |
|
|
|
6,595 |
|
|
|
1,226 |
|
|
|
5,369 |
|
Provision for income
taxes |
|
|
381 |
|
|
|
2,522 |
|
|
|
(2,141 |
) |
|
|
925 |
|
|
|
5,265 |
|
|
|
(4,340 |
) |
EBITDA |
|
$ |
10,486 |
|
|
$ |
12,135 |
|
|
$ |
(1,649 |
) |
|
$ |
16,808 |
|
|
$ |
25,339 |
|
|
$ |
(8,531 |
) |
Corporate development costs
(b) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,735 |
|
|
$ |
— |
|
|
$ |
1,735 |
|
Less: acquired EBITDA |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: FEMA task order to
support Alaska (c) |
|
|
— |
|
|
|
5,525 |
|
|
|
(5,525 |
) |
|
|
— |
|
|
|
11,871 |
|
|
|
(11,871 |
) |
Adjusted EBITDA |
|
$ |
10,486 |
|
|
$ |
6,610 |
|
|
$ |
3,876 |
|
|
$ |
18,543 |
|
|
$ |
13,468 |
|
|
$ |
5,075 |
|
Net income margin on
Revenue |
|
|
0.8 |
% |
|
|
6.6 |
% |
|
|
|
|
1.4 |
% |
|
|
5.7 |
% |
|
|
EBITDA Margin on Revenue |
|
|
10.5 |
% |
|
|
11.2 |
% |
|
|
|
|
9.8 |
% |
|
|
9.7 |
% |
|
|
Adjusted EBITDA Margin on
Adjusted Revenue |
|
|
10.5 |
% |
|
|
9.6 |
% |
|
|
|
|
10.8 |
% |
|
|
10.3 |
% |
|
|
(a): Represents revenue adjusted to exclude
revenue from the short-term FEMA task orders during the three and
six months ended March 31, 2022.
(b): Represents corporate development costs we
incurred to complete the GRSi transaction. These costs primarily
include legal counsel, financial due diligence, customer market
analysis and representation and warranty insurance premiums.
(c): Adjusted operating income represents the
Company’s consolidated operating income, determined in accordance
with GAAP, adjusted to add the corporate development costs
associated with the GRSi acquisition for fiscal year 2023 and
adjusted to exclude the operating income derived from the FEMA task
orders. Operating income for the FEMA task orders is derived by
subtracting from the revenue attributable to such task orders
during the three months ended March 31, 2022 of $39.8 million the
following amounts associated with such task orders: contract costs
of $33.7 million and general & administrative costs of $0.6
million. Similarly, for the six months ended March 31, 2022
operating income for the FEMA task orders is derived by subtracting
from the revenue attributable to the tasks orders of $130.9 million
the following amounts associated with such task orders: contract
costs $117.9 million and general & administrative costs of $1.1
million.
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