DLH Holdings Corp. (NASDAQ:DLHC) Q2 2019 Earnings Conference Call Transcript
May 08, 2019 • 11:00 am ET
Good day, and welcome to the DLH 2019 Fiscal Q2 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.
I would like to now turn the conference over to Chris Witty, Investor Relations Adviser. Please go ahead.
Thank you, and good morning, everyone.
On the call with me today is Zach Parker, President and Chief Executive Officer; and Kathryn JohnBull, Chief Financial Officer. The company's earnings release and PowerPoint presentation are available on our website under the Investor page. I would now like to provide a brief safe harbor statement, which is also shown on slide two of the presentation.
This call may include forward-looking statements that relate to the company's outlook for fiscal 2019 and beyond. These forward-looking statements are subject to various risks and uncertainties that could cause actual results and events to differ materially from these statements. Please refer to the risk factors contained in the company's Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.
On today's call, we will be referencing both GAAP and non-GAAP financial measures. A reconciliation of our non-GAAP results to our reported GAAP results is included in our earnings release and in the investor presentation on DLH's website. President and CEO, Zach Parker, will speak next followed by CFO, Kathryn JohnBull, after which we'll open it up for questions.
With that, I'd now like to turn the call over to Zach. Please go ahead, Zach.
Thank you, Chris, and good morning, everyone. Thank you for joining us to discuss our fiscal year 2019 second quarter results, driven by our talented DLH employees and partners as well. It is through their unwavering commitment to performance excellence and the highest standards of integrity that we were able to deliver these results. Last night, we posted our Q2 earnings report, reflecting strong profitability, robust cash flow, along with an enhanced balance sheet.
Starting with slide three, let me begin by providing a high-level overview of our financial performance and some color on the outlook for fiscal 2019. Revenue for the second quarter was $33.8 million, down slightly from $34.4 million in 2018, largely reflecting variations in seasonality and work demands in some of our key programs.
Our gross margin was 23.9% for the fiscal 2019 second quarter versus 21.7% last year, as gross profit rose to $8.1 million from $7.4 million in 2018. We posted net income of $0.10 per diluted share, the same as last year, and generated $8.5 million of operating cash during the period, a significant achievement that speaks to the underlying nature of our business. With such strong cash flow, we were able to completely payoff our senior debt in the quarter, leaving us with a very strong balance sheet, bolstering our position to deploy capital for strategic growth.