DLH Holdings Corp.

Good day and welcome to the DLH Holdings Corporation Fiscal 2020 First Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Chris Witte, Investor Relations Advisor. 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 Investors 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 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 10K 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.

Thanks, Chris, and good morning, everyone. Thank you for joining us to discuss our fiscal 20 first quarter performance. Last night, we released our results for the quarter, which indicates continued strong performance on almost all indicators. Turning to slide three, we have delivered significant financial improvement in both revenues and profitability. Our revenue of $52.2 million for the quarter reflects organic and acquired growth as our operating teams continue to earn the confidence of our customers, resulting in on-contract growth. This growth Offset, our typical seasonal soft Q1, as well as some erosion attributed to expiring legacy work that was set aside for small businesses. Operating income rose to $3.1 million in quarter one, and we posted EBITDA of $5 million down slightly sequentially from the fourth quarter's record results. As I'll review further in a moment, we're actively bidding on an array of RFPs in an attractive market environment, are optimistic about the outlook going forward. At the same time, we paid the outstanding revolver balance of $1.8 million and an additional $3 million of senior debt in January. We plan to further reduce debt and improve the company's balance sheet this fiscal year, as Kathryn will discuss momentarily. Turning to slide four, we previously stated that we expected the full integration to be complete near the end of Calendar 2019, I'm happy to report that we have accomplished this goal. Our ERP implementation was finalized in early January, and our business units are now operating together seamlessly, allowing for certain synergies as well as business development opportunities. All key decisions have been implemented, but some synergies, such as our planned facilities consolidation effort, will be realized later in the fiscal year. We will maintain our discipline in surgically reducing costs and streamlining our operations this fiscal year with an eye towards producing solid results and improved top-line growth. In addition, given our quarterly results may fluctuate due to project timing and government procurement policies, I wanted to say that generally speaking, the past six months in aggregate provide a pretty good benchmark for our performance going forward. We posted over $106 million of revenue during this time, $6.5 million of operating income, and roughly $10 million of EBITDA, while we remain relentless in reducing our debt level with our designs on reinvesting in growth. Today, we have reduced our senior debt by some $17 million since last June's acquisition, and we believe this is smart use of operating cash flow going forward. Particularly as we invest in new business development and strengthening our solutions offerings in secure data analytics for our current and future customers that are concerned about cybersecurity. As noted in our 10-K, our VA CMOP recompetes remain unchanged, and at this stage we see no material impact to our financial performance this fiscal year. And we will address this in greater detail at our annual shareholders meeting next month along with greater visibility into our new business pipeline. With that, I'd now like to turn the call over to our Chief Financial Officer, Kathryn JohnBull. Kathryn?