DLH Holdings Corp.

Good day, and welcome to the DLH Holdings Fiscal 2024 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 your telephone keypad. To withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to 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 Catherine John Bull, Chief Financial Officer. The company's earning 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 2024 and beyond. These statements are subject to various risks and uncertainties, which could cause actual results and events to differ materially from such 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, A reconciliation of our non-GAAP results to our reported GAAP results is included in our earnings release and in the investment presentation on DLH's website. President and CEO, Zach Parker, will speak next, followed by CFO, Katherine Johnpole, 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 2024 First Quarter Conference Call. Once again, Thanks to the dedication, collaboration, and innovation of our talented DLH workforce, we're on track for another year of solid performance here at DLH. Their dedication to our customers' vital missions, combined with the organization's overriding commitment to performance excellence and improved results, continues to drive value for our DLH shareholders. We rely on our people to set very high standards of excellence each year as we continue to build a world-class provider of emerging technology-enabled solutions and services. They continue to rise to the challenge, and we're very proud of their accomplishments. Now, turning to slide four, I'll provide an overview of the quarter's financial results. We reported first quarter revenue of $97.9 million and EBITDA of $11.1 million, while generating operating cash of $5.1 million during the period. We also continued to deliver the company, as Catherine will review momentarily, by paying off another $5 million of debt, ending the quarter with only $174.4 million of total debt outstanding. With our organic growth, which has endured federal budget CR headwinds due to the timing of new budget decisions, we continue to see some delays in business development opportunities. However, we remain confident in our ability to generate new business through our robust growth channels, both existing and new award contracts. Turn to slide five. Let me summarize a few key industry and environmental factors currently influencing our position in the market. First, as I just noted, the federal government is still operating under a continuing resolution, which typically slows down decision-making, both on current IDIQ contracts and potential new business opportunities. The most recent resolutions keep the government running through March 1st, with some departments funded through March 8th. As a reminder, this is the third set of stopgap measures that Congress has passed since September. And as a result, our clients have limited budget certainty, which is restricting their ability to make new awards. That said, remaining cautiously optimistic that both the recent and near-term progress could result in funding flow for our major agencies through the remainder of fiscal 24 paving the way for efficient contract implementation and awards. We continue to build upon a strong pipeline of high value opportunities across our broad customer base, as well as key large multi-award IDIQ platforms, opening additional channels for the company. Our enhanced technical capabilities, highly credentialed workforce, and science and technology platforms are ready to meet the evolving demands of our customers and to provide innovative value propositions. Our ability to attract and retain industry-leading talent is critical to providing uninterrupted support for our clients' missions. DLH employees solve challenging, complex problems, and their program execution results are unmatched in delivering customer satisfaction. So it was truly an honor to receive a Great Place to Work certification, an award entirely based on what current employees say about their workforce. This achievement is assigned to customers, partners, and prospective new hires alike that DLH creates an outstanding employee environment. Now turning to slide six, We have provided an overview of our business base to illustrate the diverse set of customers we support. This broad customer base, which spans agencies within the federal military and civilian markets, offers many opportunities to deliver our differentiated services to an array of new and existing customers. Building a portfolio of work that supports mission critical programs that have traditionally received broad bipartisan support is a longstanding strategic goal of our corporate and business development organizations. 45% of our current business portfolio lies within the Department of Health and Human Services. Key clients under this umbrella include the Agency for Children and Families, Center for Disease Control and Prevention, and of course, the National Institute for Health. Our capabilities in research and development, systems integration, and big data analytics have allowed DLH to provide unmatched value to our HHS clients and penetrate new programs across the board. The VA comprises approximately 35% of our revenue via the Veterans Health Agents Administration. This includes our longstanding CMOP operations, and we have a long history of supporting the VA, and we currently are looking forward to expanding our services inside the agency to deliver for those who so deserve our nation's excellence. And thirdly, today, defense agencies comprise roughly 17% of DLH revenue, including the work across a broad array of programs in the Defense Health Agency and the military services. This book of business is poised to see substantial growth over the coming years as DOD looks to invest in health IT, digital transformation, data analytics, cybersecurity, AI-enabled research, and numerous health-related platforms. Given that our client relationships span decades, we can leverage this intimacy to shape customized solution and expand our contract portfolio through new business development opportunities, as well as growth on existing programs. As government agencies continue to expand their commitment to cybersecurity, data analytics, IT modernization, artificial intelligence, and the like, all directly aligned with our strengths, our company's addressable markets continue to grow. Our innovative offerings remain in the sweet spot of agency technology upgrade initiatives, as evidenced by White House and federal agency strategic plans. By integrating our highly differentiated digital transformation capabilities with research domain expertise, this serves as a relatively unique platform to address broader range of solutions than ever before, helping our clients reach higher and perform even better every day. These will include exacting objectives of precision medicine, all of us studies and evaluations, STRIDES initiatives for cloud security, and many more. With that, I'd now like to turn the call over to our Chief Financial Officer, Catherine Johnville. Catherine.