DLH Holdings Corp.

Pardon me, ladies and gentlemen. The DLH Holdings Earnings Call will begin in two minutes. Thank you for standing by. Thank you. Thank you. Good morning and welcome to the DLH Holdings Fiscal 2023 Third Quarter Earnings Conference Call. All participants will be in a listen-only mode. And should you need any assistance during the call, 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 your touchtone phone. And to withdraw a question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Chris Witte, the Investor Relations Advisor. Please go ahead, sir.

Thank you, and good morning, everyone. On the call with me today is Zach Parker, President and Chief Executive Officer, and Catherine 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 three of the presentation. This call may include forward-looking statements that relate to the company's outlook for fiscal 2023 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. For 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 Catherine John Bull, 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. Welcome to our 2023 third quarter conference call. We continue to make good progress and remain on track for a strong end to fiscal 2023. These accomplishments are attributed to the great commitment and talent of our accomplished and distinguished employee base. They have weathered the pandemic storm and continue to deliver high caliber solutions and services to our clients. Let's dive into the financial highlights on slide four. I'll first provide a high level overview of the quarter's financial highlights. I'm pleased to announce that third quarter revenue surpassed the 100 million mark, setting a new milestone for our ongoing operations that reflects our success acquiring and integrating growing organizations, as well as importance of key programs and agencies that we serve. We anticipate being at or better than this run rate going forward. testimony of our new phase of growth, of our next phase of growth, which is built upon organic strength, a broad array of technology-enabled solutions, and reflects strong demand for the company's extensive capabilities by the federal government. During this quarter, our reported operating income was $7.1 million, and EBITDA rose to $11.4 million. We also managed to reduce our debt by over $8 million since the end of quarter two, utilizing our strong cash flow to de-lever the balance sheet efficiently. Our reported EPS was 12 cents per diluted share, and our backlog at quarter end was approximately $817.8 million. We're operating in a very active and attractive bid environment and anticipate winning our fair share of our new contracts in the coming quarters, supporting the accelerated growth going forward. Turning to slide five, I want to give an update on some key developments for the company and its outlook. We recently announced that DLH had been awarded a contract to compete for expanded digital transformation, systems engineering, and cybersecurity services for the National Heart Lung and Blood Institute, NHLBI. As part of this program, we will continue to provide advanced solutions and technology services to support this customer as a global leader in heart, lung, and blood research and training and education as well. This multiple award contract, indefinite delivery, indefinite quantity contract, has an award ceiling of $85 million and a five-year contract term. Our integration of GRSI is also on track, and we're continuing to achieve the anticipated enterprise results since the deals announcement. The transition of GRSI to key DLH business systems, such as our enterprise resource planning, ERP, and our human resource information systems is complete. leading to greater operational efficiencies across the board. Our expanded go-to-market strategy is evolving as the teams pull together and demonstrate the full range of the DLH enterprise capabilities to our customers. And lastly, as you may recall, the Fiscal Responsibility Act of 2023 was enacted early in 2023. This increased the debt ceiling and allowed budget negotiations to begin for the next fiscal year. This includes providing initial funding targets for defense and non-defense agencies alike. Of course, there's always the possibility that we'll face another year that begins with a continuing resolution, but in any case, our programs and capabilities remain in high demand with strong bipartisan support. We believe the outlook is positive for fiscal 2024 and numerous opportunities to grow our top line and continue to improve the company's underlying results. As a reminder, DLH has access to many billion-dollar-plus IDIQ contract vehicles that allow us to compete on more value-added agency work than ever before. Also, the White House fiscal 2024 preliminary budget called for historic investments in research, artificial intelligence and machine learning, and digital transformation areas, which would also bolster our growth trajectory and bottom line performance. Our highly differentiated capabilities, broad area, a broad array of contracts, and diversified suite of technology solutions make us a one-stop shop for advancing the government's goals of tomorrow. And we look forward to what fiscal 2024 will bring. With that, I'd like to turn the call over to our Chief Financial Officer, Catherine Charable. Catherine?