DLH Holdings Corp.

Good day, and welcome to the DLH Holding Corps Fiscal 2024 Third Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please take the lead 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. 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 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 Katherine 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 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 for our reported GAAP results is included in the earnings release and in the investor presentation on DLH's website. President and CEO Zach Parker will speak next, followed by CFO Catherine Johnville, after which we'll open it up for questions. With that, I now turn the call over to Zach. Please go ahead, Zach.

Thank you, Chris, and good morning, everyone. Welcome to our third quarter conference call. as we remained on track for a solid year as we enter the last three months of fiscal 2024. First, let me take a moment to thank our incredible workforce for their dedication and commitment to our ongoing success. Our sophisticated, highly credentialed staff continue to offer a broad array of high technology services and solutions on behalf of our customers' vital missions. We would not be where we are today as a company if it weren't for these outstanding employees, and we appreciate what you do and what you stand for each and every day. Now, turning to slide four, I will provide an overview of our financial results. We reported third quarter revenue of $100.7 million, an EBITDA of $10.0 million, while generating operating cash flow cash of 4.6 million during the period. That translated to 14.9 million of cash flow year to date. This once again illustrates the company's ability to generate cash and to pay down debt, which now stands at 166.5 million. Catherine will review this further in a moment. Overall, it was a solid quarter with no major surprises as we continue to position the company for the future, deleveraging our balance sheet, and investing in new business development activities for the future. Turning to slide five, I'd like to give an update on our near-term outlook as we approach the end of fiscal 24. We're quite upbeat about the current award environment. We have several new business opportunities that we anticipate from across our core markets under government evaluation and or anticipated requests for proposals that hopefully should translate into award decisions in the near term and potentially early in 2025. We believe the potential for new program wins in the future is high. which should bolster our top-line growth trajectory in the quarter to come. While third quarter revenue was negatively affected by the transition of some small business set-aside work, we see continued strong demand for our services in several of our core markets. The small business transition impact on Q3 sales offset the fact that we had many of our new key markets, such as public health, enterprise IT management programs grew nicely year over year. We're optimistic that such trends will continue, given the overwhelming bipartisan support for the majority of our programs, combined with our strong agency relationships and the company's wider range of advanced solutions and digital transformation capabilities. As in the past, we expect our solutions and services will continue to hold partisan support in the quarters to come, regardless of the changes in Congress or the White House. While one CMOP site already awarded is now set to transition soon, the other seven have been reset in terms of the bidding process. with funding on the current contract expected to be extended through at least October 31st. The award timing of the other seven contracts remains uncertain, but we do anticipate the award value process to be lengthy due to the complex nature of the critical services represented by these awards. In short, essentially, during the last quarter, the government restarted a new solicitation that allows new bidders to enter the competitive environment. These solicitations, however, still remain small disadvantaged veteran-owned businesses and will again, we will consider our participation given the changes to these procurements. Enhancing our highly credentialed workforce's presence and contributions as thought leaders is a significant element of our growth strategy. DLH expects to continue to hold leadership roles across the communities of practice, raising the company's profiles in the markets in which we bid for new work. In the past quarter alone, our experts and thought leaders have published and presented leading research in the fields of public health, readiness, and other technical services, demonstrating our company's innovative approaches to tackling some of the globe's most pressing challenges. Overall, we remain upbeat about the opportunities at our doorstep and the contract activity as the government's year-end comes to a close. We are proud of the breadth and depth of our offerings. Our expanded capabilities are now more advanced than ever. and the highly credentialed nature of the company's workforce. Together, our people, our combined capabilities, our new and expanded processes and past performance bring unmatched systems and solutions to the agencies we serve. With that, I'd now like to turn the call over to our Chief Financial Officer, Catherine Johnville. Catherine?