New Jersey
(State or other jurisdiction of
incorporation or organization)
|
|
22-1899798
(I.R.S. Employer
Identification No.)
|
3565 Piedmont Road, NE, Building 3, Suite 700
Atlanta, Georgia
(Address of principal executive offices)
|
|
30305
(Zip Code)
|
Large accelerated filer
o
|
|
Accelerated filer
o
|
|
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller Reporting Company
x
|
|
|
Emerging Growth Company
o
|
|
Page No.
|
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue
|
|
$
|
36,131
|
|
|
$
|
29,256
|
|
|
$
|
100,747
|
|
|
$
|
85,272
|
|
Direct expenses
|
|
27,793
|
|
|
22,871
|
|
|
78,429
|
|
|
66,805
|
|
||||
Gross margin
|
|
8,338
|
|
|
6,385
|
|
|
22,318
|
|
|
18,467
|
|
||||
General and administrative expenses
|
|
5,136
|
|
|
4,122
|
|
|
14,700
|
|
|
12,722
|
|
||||
Depreciation and amortization
|
|
588
|
|
|
510
|
|
|
1,654
|
|
|
1,264
|
|
||||
Income from operations
|
|
2,614
|
|
|
1,753
|
|
|
5,964
|
|
|
4,481
|
|
||||
Interest expense, net
|
|
262
|
|
|
269
|
|
|
801
|
|
|
888
|
|
||||
Income before income taxes
|
|
2,352
|
|
|
1,484
|
|
|
5,163
|
|
|
3,593
|
|
||||
Income tax expense, net
|
|
738
|
|
|
539
|
|
|
5,084
|
|
|
1,345
|
|
||||
Net income
|
|
$
|
1,614
|
|
|
$
|
945
|
|
|
$
|
79
|
|
|
$
|
2,248
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic
|
|
$
|
0.14
|
|
|
$
|
0.08
|
|
|
$
|
0.01
|
|
|
$
|
0.20
|
|
Net income per share - diluted
|
|
$
|
0.13
|
|
|
$
|
0.08
|
|
|
$
|
0.01
|
|
|
$
|
0.18
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
11,899
|
|
|
11,299
|
|
|
11,875
|
|
|
11,250
|
|
||||
Diluted
|
|
12,884
|
|
|
12,445
|
|
|
12,872
|
|
|
12,417
|
|
|
|
June 30,
2018 |
|
September 30,
2017 |
||||
|
|
(unaudited)
|
|
|
|
|||
ASSETS
|
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
6,590
|
|
|
$
|
4,930
|
|
Accounts receivable
|
|
12,420
|
|
|
11,911
|
|
||
Other current assets
|
|
856
|
|
|
598
|
|
||
Total current assets
|
|
19,866
|
|
|
17,439
|
|
||
Equipment and improvements, net
|
|
1,630
|
|
|
1,391
|
|
||
Deferred taxes, net
|
|
4,875
|
|
|
9,639
|
|
||
Goodwill
|
|
25,989
|
|
|
25,989
|
|
||
Intangible assets, net
|
|
13,805
|
|
|
15,127
|
|
||
Other long-term assets
|
|
139
|
|
|
139
|
|
||
Total assets
|
|
$
|
66,304
|
|
|
$
|
69,724
|
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
|
||
Debt obligations - current
|
|
$
|
3,633
|
|
|
$
|
6,518
|
|
Derivative financial instruments, at fair value
|
|
—
|
|
|
306
|
|
||
Accrued payroll
|
|
5,034
|
|
|
3,723
|
|
||
Accounts payable, accrued expenses, and other current liabilities
|
|
10,475
|
|
|
10,895
|
|
||
Total current liabilities
|
|
19,142
|
|
|
21,442
|
|
||
Total long term liabilities
|
|
9,707
|
|
|
12,427
|
|
||
Total liabilities
|
|
28,849
|
|
|
33,869
|
|
||
Commitments and contingencies
|
|
|
|
|
|
|
||
Shareholders' equity:
|
|
|
|
|
||||
Common stock, $.001 par value; authorized 40,000 shares; issued and outstanding 11,899 at June 30, 2018 and 11,767 at September 30, 2017
|
|
12
|
|
|
12
|
|
||
Additional paid-in capital
|
|
84,079
|
|
|
82,687
|
|
||
Accumulated deficit
|
|
(46,636
|
)
|
|
(46,844
|
)
|
||
Total shareholders’ equity
|
|
37,455
|
|
|
35,855
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
66,304
|
|
|
$
|
69,724
|
|
|
|
(unaudited)
|
||||||
|
|
Nine Months Ended
|
||||||
|
|
June 30,
|
||||||
|
|
2018
|
|
2017
|
||||
Operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
79
|
|
|
$
|
2,248
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization expense
|
|
1,654
|
|
|
1,264
|
|
||
Amortization of debt financing costs as interest expense
|
|
202
|
|
|
194
|
|
||
Change in fair value of derivative financial instruments
|
|
—
|
|
|
49
|
|
||
Stock based compensation expense
|
|
1,169
|
|
|
613
|
|
||
Deferred taxes, net
|
|
4,764
|
|
|
1,004
|
|
||
Changes in operating assets and liabilities
|
|
|
|
|
|
|
||
Accounts receivable
|
|
(508
|
)
|
|
(1,987
|
)
|
||
Other current assets
|
|
(259
|
)
|
|
(78
|
)
|
||
Accounts payable, accrued payroll, accrued expenses and other current liabilities
|
|
897
|
|
|
1,519
|
|
||
Other long term assets/liabilities
|
|
(5
|
)
|
|
145
|
|
||
Net cash provided by operating activities
|
|
7,993
|
|
|
4,971
|
|
||
|
|
|
|
|
||||
Investing activities
|
|
|
|
|
|
|
||
Acquisition, net of cash acquired
|
|
—
|
|
|
(250
|
)
|
||
Purchase of equipment and improvements
|
|
(571
|
)
|
|
(785
|
)
|
||
Net cash used in investing activities
|
|
(571
|
)
|
|
(1,035
|
)
|
||
|
|
|
|
|
||||
Financing activities
|
|
|
|
|
|
|
||
Repayments on senior debt
|
|
(5,730
|
)
|
|
(2,813
|
)
|
||
Deferred debt financing costs
|
|
(70
|
)
|
|
—
|
|
||
Repayments of capital lease obligations
|
|
(8
|
)
|
|
(62
|
)
|
||
Proceeds from issuance of stock upon exercise of options
|
|
46
|
|
|
113
|
|
||
Net cash used in financing activities
|
|
(5,762
|
)
|
|
(2,762
|
)
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
1,660
|
|
|
1,174
|
|
||
Cash and cash equivalents at beginning of period
|
|
4,930
|
|
|
3,427
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
6,590
|
|
|
$
|
4,601
|
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
||
Cash paid during the period for interest
|
|
$
|
619
|
|
|
$
|
662
|
|
Cash paid during the period for income taxes
|
|
$
|
630
|
|
|
$
|
390
|
|
Derivative warrant liability reclassified as equity
|
|
$
|
(306
|
)
|
|
$
|
—
|
|
Noncash issuance of stock upon exercise of options
|
|
$
|
25
|
|
|
$
|
—
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
|
September 30,
|
||||
|
Ref
|
|
2018
|
|
2017
|
||||
Billed receivables
|
|
|
$
|
12,298
|
|
|
$
|
11,862
|
|
Unbilled receivables
|
|
|
122
|
|
|
49
|
|
||
Total accounts receivable
|
|
|
12,420
|
|
|
11,911
|
|
||
Less: Allowance for doubtful accounts
|
(a)
|
|
—
|
|
|
—
|
|
||
Accounts receivable, net
|
|
|
$
|
12,420
|
|
|
$
|
11,911
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
|
September 30,
|
||||
|
Ref
|
|
2018
|
|
2017
|
||||
Prepaid insurance and benefits
|
|
|
$
|
611
|
|
|
$
|
240
|
|
Other receivables and prepaid expenses
|
|
|
245
|
|
|
358
|
|
||
Other current assets
|
|
|
$
|
856
|
|
|
$
|
598
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
|
September 30,
|
||||
|
Ref
|
|
2018
|
|
2017
|
||||
Furniture and equipment
|
|
|
$
|
326
|
|
|
$
|
331
|
|
Computer equipment
|
|
|
759
|
|
|
715
|
|
||
Computer software
|
(a)
|
|
1,640
|
|
|
1,108
|
|
||
Leasehold improvements
|
|
|
66
|
|
|
66
|
|
||
Total fixed assets
|
|
|
2,791
|
|
|
2,220
|
|
||
Less accumulated depreciation and amortization
|
|
|
(1,161
|
)
|
|
(829
|
)
|
||
Equipment and improvements, net
|
(b)
|
|
$
|
1,630
|
|
|
$
|
1,391
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
|
September 30,
|
||||
|
Ref
|
|
2018
|
|
2017
|
||||
Intangible assets
|
(a)
|
|
|
|
|
||||
Customer contracts and related customer relationships
|
|
|
$
|
16,626
|
|
|
$
|
16,626
|
|
Covenants not to compete
|
|
|
480
|
|
|
480
|
|
||
Trade name
|
|
|
517
|
|
|
517
|
|
||
Intangible assets
|
|
|
17,623
|
|
|
17,623
|
|
||
Less accumulated amortization
|
|
|
|
|
|
||||
Customer contracts and related customer relationships
|
|
|
(3,602
|
)
|
|
(2,355
|
)
|
||
Covenants not to compete
|
|
|
(104
|
)
|
|
(68
|
)
|
||
Trade name
|
|
|
(112
|
)
|
|
(73
|
)
|
||
Total accumulated amortization
|
|
|
(3,818
|
)
|
|
(2,496
|
)
|
||
Intangible assets, net
|
|
|
$
|
13,805
|
|
|
$
|
15,127
|
|
Estimated amortization expense for future years:
|
|
(in thousands)
|
||
Remaining Fiscal 2018
|
|
$
|
441
|
|
Fiscal 2019
|
|
1,762
|
|
|
Fiscal 2020
|
|
1,762
|
|
|
Fiscal 2021
|
|
1,762
|
|
|
Fiscal 2022
|
|
1,762
|
|
|
Fiscal 2023
|
|
1,762
|
|
|
Thereafter
|
|
4,554
|
|
|
|
|
$
|
13,805
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
|
September 30,
|
||||
|
Ref
|
|
2018
|
|
2017
|
||||
Accounts payable
|
|
|
$
|
3,890
|
|
|
$
|
5,205
|
|
Accrued benefits
|
|
|
2,263
|
|
|
1,831
|
|
||
Accrued bonus and incentive compensation
|
|
|
1,509
|
|
|
1,544
|
|
||
Accrued workers compensation insurance
|
|
|
2,182
|
|
|
1,598
|
|
||
Other accrued expenses
|
|
|
631
|
|
|
717
|
|
||
Accounts payable, accrued expenses, and other current liabilities
|
|
|
$
|
10,475
|
|
|
$
|
10,895
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
September 30,
|
|||||
|
Ref
|
|
2018
|
|
2017
|
||||
Bank term loan
|
(a)
|
|
$
|
13,958
|
|
|
$
|
19,688
|
|
Less unamortized debt issuance costs
|
|
|
(823
|
)
|
|
(961
|
)
|
||
Net bank debt obligation
|
|
|
13,135
|
|
|
18,727
|
|
||
Less current portion of bank debt obligations
|
|
|
(3,633
|
)
|
|
(6,518
|
)
|
||
Long term portion of bank debt obligation
|
|
|
$
|
9,502
|
|
|
$
|
12,209
|
|
|
|
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
Ref
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest expense
|
(a)
|
|
$
|
(192
|
)
|
|
$
|
(219
|
)
|
|
$
|
(619
|
)
|
|
$
|
(662
|
)
|
Amortization of debt financing costs as interest expense
|
(b)
|
|
(70
|
)
|
|
(70
|
)
|
|
(202
|
)
|
|
(194
|
)
|
||||
Change in fair value of derivative financial instruments
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(49
|
)
|
||||
Other income (expense), net
|
|
|
—
|
|
|
17
|
|
|
20
|
|
|
17
|
|
||||
Interest expense, net
|
|
|
$
|
(262
|
)
|
|
$
|
(269
|
)
|
|
$
|
(801
|
)
|
|
$
|
(888
|
)
|
|
|
($ in Millions)
|
||||||||
|
|
As of June 30, 2018
|
||||||||
Lender
|
|
Arrangement
|
|
Loan Balance
|
|
Interest
|
|
Maturity Date
|
||
Fifth Third Bank
|
|
Secured term loan $25 million ceiling (a)
|
|
$
|
14.0
|
|
|
LIBOR* + 3.0%
|
|
05/01/21
|
Fifth Third Bank
|
|
Secured revolving line of credit $10 million ceiling (b)
|
|
$
|
—
|
|
|
LIBOR* + 3.0%
|
|
05/01/21
|
|
|
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
Ref
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
DLH employees
|
|
|
$
|
68
|
|
|
$
|
55
|
|
|
$
|
199
|
|
|
$
|
117
|
|
Non-employee directors
|
(a)
|
|
173
|
|
|
8
|
|
|
970
|
|
|
496
|
|
||||
Total stock option expense
|
|
|
$
|
241
|
|
|
$
|
63
|
|
|
$
|
1,169
|
|
|
$
|
613
|
|
|
|
|
(in thousands)
|
||||||
|
|
|
June 30,
|
||||||
|
Ref
|
|
2018
|
|
2017
|
||||
Unrecognized expense for DLH employees
|
(a)
|
|
$
|
980
|
|
|
$
|
398
|
|
Unrecognized expense for non-employee directors
|
(b)
|
|
$
|
—
|
|
|
$
|
—
|
|
Total unrecognized expense
|
|
|
$
|
980
|
|
|
$
|
398
|
|
|
|
|
|
|
|
|
(in years)
|
|
|
|||||
|
|
|
|
|
|
|
Weighted
|
|
|
|||||
|
|
|
|
|
Weighted
|
|
Average
|
|
(in thousands)
|
|||||
|
|
|
(in thousands)
|
|
Average
|
|
Remaining
|
|
Aggregate
|
|||||
|
|
|
Number of
|
|
Exercise
|
|
Contractual
|
|
Intrinsic
|
|||||
|
Ref
|
|
Shares
|
|
Price
|
|
Term
|
|
Value
|
|||||
Options outstanding September 30, 2017
|
|
|
1,994
|
|
|
$
|
3.83
|
|
|
6.4
|
|
$
|
8,489
|
|
Granted
|
|
|
217
|
|
|
$
|
6.33
|
|
|
|
|
|
||
Exercised
|
|
|
(42
|
)
|
|
$
|
1.69
|
|
|
|
|
|
||
Options outstanding, June 30, 2018
|
|
|
2,169
|
|
|
$
|
4.38
|
|
|
5.9
|
|
$
|
6,514
|
|
|
|
|
(in thousands)
|
||||
|
|
|
Number of Shares
|
||||
|
|
|
June 30,
|
|
September 30,
|
||
|
Ref
|
|
2018
|
|
2017
|
||
Vested and exercisable
|
(a)
|
|
1,335
|
|
|
1,327
|
|
Unvested
|
|
|
834
|
|
|
667
|
|
Options outstanding
|
|
|
2,169
|
|
|
1,994
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
1,614
|
|
|
$
|
945
|
|
|
$
|
79
|
|
|
$
|
2,248
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Denominator for basic net income per share - weighted-average outstanding shares
|
|
11,899
|
|
|
11,299
|
|
|
11,875
|
|
|
11,250
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock
|
|
985
|
|
|
1,146
|
|
|
997
|
|
|
1,167
|
|
||||
Denominator for diluted net income per share - weighted-average outstanding shares
|
|
12,884
|
|
|
12,445
|
|
|
12,872
|
|
|
12,417
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic
|
|
$
|
0.14
|
|
|
$
|
0.08
|
|
|
$
|
0.01
|
|
|
$
|
0.20
|
|
Net income per share - diluted
|
|
$
|
0.13
|
|
|
$
|
0.08
|
|
|
$
|
0.01
|
|
|
$
|
0.18
|
|
|
|
|
|
Payments Due By Period
|
||||||||||||||||
Contractual Obligations
|
|
|
|
Next 12
|
|
2-3
|
|
4-5
|
|
More than 5
|
||||||||||
(Amounts in thousands)
|
Ref
|
Total
|
|
Months
|
|
Years
|
|
Years
|
|
Years
|
||||||||||
Debt Obligations
|
|
$
|
13,958
|
|
|
$
|
3,750
|
|
|
$
|
10,208
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Facility leases
|
|
2,998
|
|
|
906
|
|
|
1,135
|
|
|
668
|
|
|
289
|
|
|||||
Equipment operating leases
|
|
48
|
|
|
27
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||||
Total Obligations
|
|
$
|
17,004
|
|
|
$
|
4,683
|
|
|
$
|
11,364
|
|
|
$
|
668
|
|
|
$
|
289
|
|
•
|
Department of Defense and veteran health solutions, comprising approximately
62%
of our current business base;
|
•
|
Human services and solutions, approximately
34%
of our current business base; and
|
•
|
Public health and life sciences, approximately
4%
of our current business base.
|
|
|
Three Months Ended
|
|
|
|
||||||||||||||
|
|
June 30, 2018
|
|
June 30, 2017
|
|
Change
|
|
||||||||||||
Revenue
|
|
$
|
36,131
|
|
|
100.0
|
%
|
|
$
|
29,256
|
|
|
100.0
|
%
|
|
$
|
6,875
|
|
|
Direct expenses
|
|
27,793
|
|
|
76.9
|
%
|
|
22,871
|
|
|
78.2
|
%
|
|
4,922
|
|
|
|||
Gross margin
|
|
8,338
|
|
|
23.1
|
%
|
|
6,385
|
|
|
21.8
|
%
|
|
1,953
|
|
|
|||
General and administrative expenses
|
|
5,136
|
|
|
14.2
|
%
|
|
4,122
|
|
|
14.1
|
%
|
|
1,014
|
|
|
|||
Depreciation and amortization
|
|
588
|
|
|
1.6
|
%
|
|
510
|
|
|
1.7
|
%
|
|
78
|
|
|
|||
Income from operations
|
|
2,614
|
|
|
7.2
|
%
|
|
1,753
|
|
|
6.0
|
%
|
|
861
|
|
|
|||
Interest expense, net
|
|
262
|
|
|
0.7
|
%
|
|
269
|
|
|
0.9
|
%
|
|
(7
|
)
|
|
|||
Income before income taxes
|
|
2,352
|
|
|
6.5
|
%
|
|
1,484
|
|
|
5.1
|
%
|
|
868
|
|
|
|||
Income tax expense, net
|
|
738
|
|
|
2.0
|
%
|
|
539
|
|
|
1.8
|
%
|
|
199
|
|
|
|||
Net income
|
|
$
|
1,614
|
|
|
4.5
|
%
|
|
$
|
945
|
|
|
3.2
|
%
|
|
669
|
|
|
|
Net income per share - basic
|
|
$
|
0.14
|
|
|
|
|
$
|
0.08
|
|
|
|
|
$
|
0.06
|
|
|
||
Net income per share - diluted
|
|
$
|
0.13
|
|
|
|
|
$
|
0.08
|
|
|
|
|
$
|
0.05
|
|
|
|
|
Nine Months Ended
|
|
Change in
|
|||||||||||||||
Consolidated Statement of Income:
|
|
June 30, 2018
|
|
June 30, 2017
|
|
$
|
|
||||||||||||
Revenue
|
|
$
|
100,747
|
|
|
100.0
|
%
|
|
$
|
85,272
|
|
|
100.0
|
%
|
|
$
|
15,475
|
|
|
Direct expenses
|
|
78,429
|
|
|
77.8
|
%
|
|
66,805
|
|
|
78.3
|
%
|
|
11,624
|
|
|
|||
Gross margin
|
|
22,318
|
|
|
22.2
|
%
|
|
18,467
|
|
|
21.7
|
%
|
|
3,851
|
|
|
|||
General and administrative expenses
|
|
14,700
|
|
|
14.6
|
%
|
|
12,722
|
|
|
14.9
|
%
|
|
1,978
|
|
|
|||
Depreciation and amortization
|
|
1,654
|
|
|
1.6
|
%
|
|
1,264
|
|
|
1.5
|
%
|
|
390
|
|
|
|||
Income from operations
|
|
5,964
|
|
|
5.9
|
%
|
|
4,481
|
|
|
5.3
|
%
|
|
1,483
|
|
|
|||
Interest
|
|
801
|
|
|
0.8
|
%
|
|
888
|
|
|
1.0
|
%
|
|
(87
|
)
|
|
|||
Income before income taxes
|
|
5,163
|
|
|
5.1
|
%
|
|
3,593
|
|
|
4.2
|
%
|
|
1,570
|
|
|
|||
Income tax expense, net
|
|
5,084
|
|
|
5.0
|
%
|
|
1,345
|
|
|
1.6
|
%
|
|
3,739
|
|
|
|||
Net income
|
|
$
|
79
|
|
|
0.1
|
%
|
|
$
|
2,248
|
|
|
2.6
|
%
|
|
$
|
(2,169
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - basic
|
|
$
|
0.01
|
|
|
|
|
$
|
0.20
|
|
|
|
|
$
|
(0.19
|
)
|
|
||
Net income per share - diluted
|
|
$
|
0.01
|
|
|
|
|
$
|
0.18
|
|
|
|
|
$
|
(0.17
|
)
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Net income
|
|
$
|
1,614
|
|
|
$
|
945
|
|
|
$
|
669
|
|
|
$
|
79
|
|
|
$
|
2,248
|
|
|
$
|
(2,169
|
)
|
(i) Interest expense
|
|
262
|
|
|
269
|
|
|
(7
|
)
|
|
801
|
|
|
888
|
|
|
(87
|
)
|
||||||
(ii) Provision for taxes
|
|
738
|
|
|
539
|
|
|
199
|
|
|
5,084
|
|
|
1,345
|
|
|
3,739
|
|
||||||
(iii) Depreciation and amortization
|
|
588
|
|
|
510
|
|
|
78
|
|
|
1,654
|
|
|
1,265
|
|
|
389
|
|
||||||
EBITDA
|
|
$
|
3,202
|
|
|
$
|
2,263
|
|
|
$
|
939
|
|
|
$
|
7,618
|
|
|
$
|
5,746
|
|
|
$
|
1,872
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
Net income
|
|
$
|
1,614
|
|
|
$
|
945
|
|
|
$
|
669
|
|
|
$
|
79
|
|
|
$
|
2,248
|
|
|
$
|
(2,169
|
)
|
Write-down of deferred tax assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,365
|
|
|
$
|
—
|
|
|
$
|
3,365
|
|
Pro-forma impact of tax rate change
|
|
$
|
—
|
|
|
$
|
145
|
|
|
$
|
(145
|
)
|
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
(350
|
)
|
Net income, excluding effect of the 2017 Tax Act
|
|
$
|
1,614
|
|
|
$
|
1,090
|
|
|
$
|
524
|
|
|
$
|
3,444
|
|
|
$
|
2,598
|
|
|
$
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income per fully-diluted share
|
|
$
|
0.13
|
|
|
$
|
0.08
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
$
|
0.18
|
|
|
$
|
(0.17
|
)
|
Impact of write-down of deferred tax asset
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.26
|
|
|
$
|
—
|
|
|
$
|
0.26
|
|
Pro-forma impact of tax rate change
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
(0.03
|
)
|
Net income per fully-diluted share, excluding effect of the 2017 Tax Act
|
|
$
|
0.13
|
|
|
$
|
0.09
|
|
|
$
|
0.04
|
|
|
$
|
0.27
|
|
|
$
|
0.21
|
|
|
$
|
0.06
|
|
|
|
|
|
Payments Due by Period
|
||||||||||||||||
Contractual obligations
|
|
|
|
Next 12
|
|
2-3
|
|
4-5
|
|
More than 5
|
||||||||||
(Amounts in thousands)
|
Ref
|
Total
|
|
Months
|
|
Years
|
|
Years
|
|
Years
|
||||||||||
Debt Obligations
|
|
$
|
13,958
|
|
|
$
|
3,750
|
|
|
$
|
10,208
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Facility Leases
|
|
2,998
|
|
|
906
|
|
|
1,135
|
|
|
668
|
|
|
289
|
|
|||||
Equipment operating leases
|
|
48
|
|
|
27
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||||
Total Obligations
|
|
$
|
17,004
|
|
|
$
|
4,683
|
|
|
$
|
11,364
|
|
|
$
|
668
|
|
|
$
|
289
|
|
Exhibit
|
|
|
|
Incorporated by Reference
|
|
Filed
|
||||
Number
|
|
Exhibit Description
|
|
Form
|
|
Dated
|
|
Exhibit
|
|
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
05/14/18
|
|
10.1
|
|
|
||
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
101
|
|
The following financial information from the DLH Holdings Corp. Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2018, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Cash Flows; and, (iv) the Notes to the Consolidated Financial Statements.
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DLH HOLDINGS CORP.
|
|
|
|
|
|
|
|
By:
|
/s/ Zachary C. Parker
|
|
|
|
Zachary C. Parker
|
|
|
|
Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
By:
|
/s/ Kathryn M. JohnBull
|
|
|
|
Kathryn M. JohnBull
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
Date: August 6, 2018
|
|
|
|
b.
|
Change in Control
. “
Change in Control
” means the occurrence of any of the following events:
|
d.
|
Code.
“
Code
” means the Internal Revenue Code of 1986, as amended.
|
DLH Holdings Corp.
|
||
|
|
|
|
|
|
By:
|
|
/s/ Zachary C. Parker
|
|
|
Zachary C. Parker
|
|
|
Chief Executive Officer and President
|
Employee
|
||
|
|
|
|
|
|
By:
|
|
/s/ Helene Fisher
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Helene Fisher
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/s/ Zachary C. Parker
Zachary C. Parker
Chief Executive Officer
(Principal Executive Officer)
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/s/ Kathryn M. JohnBull
Kathryn M. JohnBull
Chief Financial Officer
(Principal Accounting Officer)
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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/s/ ZACHARY C. PARKER
Zachary C. Parker
Chief Executive Officer
(Principal Executive Officer)
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/s/ KATHRYN M. JOHNBULL
Kathryn M. JohnBull
Chief Financial Officer
(Principal Accounting Officer)
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