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DLH Holdings revenue rises 11%

December 11, 2014

DLH Holdings Corp. (NASD: DLHC) reported revenue rose 10.9 percent to $15.6 million in its fiscal fourth quarter ended Sept. 30. The increase in revenue resulted primarily from new business awarded in 2013 and 2014, as well as expansion on current programs, according to the company.

Gross margin improved to 15.0 percent from 14.0 percent in the same quarter of the prior fiscal year. The gross margin rate benefited from improved contract performance, offset in part by increased workers compensation costs.

DLH posted net income of $4.8 million in the quarter — including $4.6 million related to realization of tax benefits — compared to $9,000 in the comparable quarter of the previous year.

The Atlanta-based firm provides healthcare, logistics and emergency response staffing to federal government operations.

Quote

“Our operating performance for both the fourth quarter and the fiscal year as a whole improved across the board compared to 2013, with increases in revenue, gross margin, operating income and adjusted EBITDA,” said President and CEO Zach Parker. “We continue to leverage our strong position in the healthcare and pharmaceutical services business with organic growth, while our new business is delivering higher margins consistent with our long-range strategy. We will continue to apply excellent program performance and our much improved balance sheet to deliver growth and greater value for our shareholders.”

Revenue

  Q4 2014 (000s) Q4 2013 (000s) % growth
Revenue $15,579 $14,045 10.9%

Gross margin

  Q4 2014  Q4 2013 
Gross margin 15.0% 14.0%

Net income

  Q4 2014 (000s) Q4 2013 (000s)
Net income $4,775 $9

Fiscal year 2014

  FY 2014 FY 2013 % growth
Revenue $60,493 $53,506 13.1%
Net income/loss $5,357 -$159 na

Share price and market cap

Shares in DLH fell 1.28 percent to $2.32 in early afternoon trading; DLH has a market cap of approximately $22.81 million, according to Yahoo!