DLH Holdings Corp. (NASDAQ:DLHC) Q3 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET


DLH Holdings Corp. (NASDAQ:DLHC) Q3 2020 Earnings Conference Call - Final Transcript


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Good day and welcome to the DLH Holdings Fiscal 2020 Third Quarter Earnings Call. [Operator Instructions]

I would like to turn the conference over to Chris Witty, Investor Relations Advisor. Please, go ahead.

Chris Witty

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 2 of the presentation. This call may include forward-looking statements that relate to the company's outlook for fiscal 2020 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 statement.

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.

Zachary Parker

Thanks, Chris, and good morning to everyone and welcome to our fiscal 2020 third quarter conference call. I'd like to begin with wishing all of you and your families well during these difficult days of the pandemic. Please note that you are in our thoughts and prayers. We will modify our standard format a little bit, so that we can provide you an update on how we are doing as a company as we deal with the unusual challenges associated with COVID-19 -- the COVID-19 virus and the awakening of social and diversity issues attributed to the murder of George Floyd, which occurred during the middle of the quarter.

Starting with Slide 3, let me begin by providing a high-level overview of our financial performance and some color on the outlook for the remainder of fiscal 2020. I'm pleased to report, that we have continued solid results even in the midst of a global pandemic and social unrest. The company posted revenue of $51.5 million for the quarter, reflecting another period of excellence in client delivery. We attribute all of that to just a tremendous attitude and credentials and capabilities of our workforce. Operating income rose to $3.8 million in Q3 and we posted EBITDA of $5.5 million both consistent with the results -- of the second-quarter results. We generated $10 million of operating cash in the quarter and paid down $10.5 million of debt. Our strong performance from a cash flow perspective was aided by the collection of receivables this quarter as