Wednesday, February 03, 2021
DLH Holdings Corp. (DLHC)
Solid 1Q21 Results, But COVID Still Impacting
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q21 Results. DLH reported 1Q21 revenue of $57.9 million, EBITDA of $5.7 million, and EPS of $0.13. The comparable numbers for last year were $52.2 million, $5.0 million, and $0.12 respectively. We were at $57.5 million, $5.5 million, and $0.14, respectively. IBA contributed nearly $7 million of revenue in the quarter, but the absence of pass-through travel revenue hit organic growth. Such revenue generates approximately $2.5 million per quarter in a normal environment.
Improving Operating Metrics. DLH posted improving operating metrics, even with COVID impacted revenue. For example, EBITDA margin improved to 9.8% from 9.5% in the year ago period. Operating margin rose to 6.3% versus 6.0% in 1Q20. Net margin was 3.1% in the first quarter of fiscal 2021, up from 3.0% in the first quarter of fiscal 2020. G&A costs, as a percent of revenue, declined to 10.6% from …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.