DLH Reports Mixed Q4 Results, Clocks 29% Revenue Growth

DLH Holdings Corp DLHC reported fourth-quarter revenue growth of 28.6% year-over-year to $65.18 million, beating the consensus of $63 million. EPS improved to $0.21 from $0.10 in 4Q20, missing the consensus of $0.22.

• The operating income increased by 49.4% Y/Y to $4.03 million, and the margin expanded by 90 bps to 6.2%.
• EBITDA was $6.04 million, compared to $4.36 million in 4Q20, and the margin expanded by 70 bps to 9.3%.
• The company reduced debt to $46.8 million, with solid cash flow anticipated to fund additional de-levering in FY22 with a target debt of $29 million - $27 million.
• The total backlog was ~$651.5 million as of September 30, 2021.
• DLH Holdings had cash and equivalents of $24.1 million. It generated cash from operating activities for the year of $45.66 million, compared to $19.45 million a year ago.
• Price Action: DLHC shares are trading higher by 0.23% at $13.12 on the last check Monday.