Dlh Holdings Corp. (NASDAQ:DLHC)

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Second Quarter 2014 Results

• Revenues for the three months ended March 31, 2014 and 2013 were $14.7 million and $13.0 million, respectively, which represents an increase of $1.7 million or 13.4%.
• Net income for the three months ended March 31, 2014 was $197 thousand, or $0.02 per basic and diluted share, as compared to net loss of $(109) thousand or $(0.01) per basic and diluted share for the three months ended March 31, 2013.

Commenting on the Company`s results, President and Chief Executive Officer of DLH, Zach Parker stated:  "We are very pleased with our second quarter fiscal year 2014 results.  We believe that our results validate our strategy for navigating a challenging budgetary environment.  Our strategic focus on a particular segment of the federal market has allowed us to deliver increasing revenue for the sixth consecutive quarter, during a cycle that the general contracting market has experienced erosion in the business base.  Our operations have delivered gross profit increase with the addition of our new business, which is consistent with our strategy to move up the value chain within our healthcare portfolio.  We are committed to continuing our efforts to enhance shareholder value through measured growth and quality financial results.

DLH Executive Vice-President, John Armstrong added:  "During the quarter, the White House released its proposed FY15 budget for the Department of Veterans Affairs (DVA), including a projected 6.5% increase in the budget, to support VA`s goals, including expanded access to health care and other benefits.  This increasing addressable market is good news for DLH against the headwinds of an overall decreasing Federal budget. We believe that our expertise in leveraging technology to effectively and efficiently manage key missions for DVA positions us well to extend our long-term commitment to supporting veterans."

Kathryn JohnBull, DLH CFO, added: "Our second quarter results sustain our trend of delivering increased revenue and gross profit, while continuing to apply strong controls to general and administrative expenses.  Though total G&A expenses increased compared to our prior year second quarter, those increases were largely associated with revenue-driven fees to maintain our GSA contracts, non-cash stock option expense, and increased spending on business development.   As a percent of revenue, G&A expense was favorable over prior year second quarter. 

JohnBull continued:  "During the quarter, we worked with our lender to amend our credit facility, substantially reducing interest rates and other service charges.  We believe this amendment reflects the progress we`ve made to date in establishing a sound business model.  We generated strong operating cash flow during the quarter and we believe we have access to adequate capital to support ongoing growth."

First Quarter Results:

• The Company's revenue for the three months ended December 31, 2010 was $10.6 million as compared to $10.8 million in the comparable quarter last year
• TeamStaff's gross profit from continuing operations for the three months ended December 31, 2010 and 2009 were $1.3 million and $1.4 million
• Loss from continuing operations was $0.3 million or ($0.07) per basic share compared to a loss from continuing operations of $0.7 million or ($0.13) per basic share in the comparable quarter last year

TeamStaff operating revenues have increased for a third sequential quarter. "We believe that our first quarter results indicate that our turnaround is underway, though we continue our efforts to conclude several key initiatives and uncertainties" said Zachary Parker, President and Chief Executive Officer, TeamStaff Inc., who continued "During fiscal 2011, we expect to complete our transition, create financial stability consistent with our strategic plan, and begin to implement our "accelerated" and "long-term" growth strategies targeting adjacent logistics and healthcare market segments. These are important factors toward driving enhanced shareholder value. As we discussed in our recently filed Form 10-K, we have recently taken measures which are expected to enhance our liquidity by approximately $1 million as a result of increasing the maximum availability of our credit facility and receiving commitments for additional equity and/or debt. We believe these measures should give us the necessary financial stability and flexibility to implement our plan."