DLH Holdings Corp.

Good day and welcome to the DLH Holdings Corp Fiscal 2025 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 touchtone phone. To withdraw your question, please press star then two. Please also 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 Catherine Johnball, 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 2025 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 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. Excuse me. Thank you, Curtis. And good morning, everyone. Welcome to our first quarter conference call. As we begin fiscal 2025, I'd like to take a moment to thank our talented employees for being so dedicated to the future of DLH during this transformational time in our country's history. It is your thorough dedication and commitment to excellence that allows us to succeed. Even as industry conditions change, your steadfast passion for our customers' critical missions drives DLH toward a bright future. Now turning to slide four, I'll provide an overview of our financial results. You know, performance excellence and accelerating organic growth remain our highest priorities as a company. And recent developments illustrate the strength of our transformed new business pipeline. Our recent award to provide C6ISR and advanced IT services to the Navy, expands our information warfare systems engineering portfolio, covering from Norfolk, Virginia to San Diego, California. This recent award has been key to our organic growth campaign of opportunities, particularly those that leverage intelligence, surveillance expertise, and mission critical readiness related services to our clients. We remain confident about our long-term vision bearing fruit in this and in near-term fiscal years as our bidding posture with our strategic clients has really been strong. A new administration brings both challenges and opportunities, but we have always based our portfolio of business around enduring programs which obtain broad bipartisan support in Congress. And I'm happy to say This continues to be the case. Our services and solutions are focused on improving technology utilization, enhancing productivity, and efficiency for our clients. That has been at the core of all that we do. These are values directly aligned with this administration's stated priorities. And overall, our initial assessment of this administration's impact on DLH's current book of business and future opportunities it still remains at neutral to slightly positive. And we still have that belief as we look for the long view. To date, we have not had any material impact from the recent executive orders. We reported first quarter revenue of $90.8 million and EBITDA of $9.9 million, representing an EBITDA margin of 11% on revenue. while we use cash during the quarter due to short-term growth in receivables and increase our debt accordingly. We expect strong cash flow in the fiscal second quarter and a continuation of our key leveraging strategy, as Catherine will review in a moment. Slide five provides a snapshot of our go-forward growth strategy as reviewed last quarter. While the company will likely continue to feel the effects of small business set aside unbundling of contracts in the coming quarters, our growth is squarely focused on the opportunities which leverage our digital transformation, cybersecurity, research and development, and systems engineering capabilities. We have a strong pipeline of qualified and well-positioned bids. We anticipate half a dozen or so of those to be awarded This year, our qualified pipeline has several opportunities with contract values in excess of $100 million and more that should substantially offset the eventual small business set aside erosion. As I mentioned, our focus on differentiating technology and innovation is yielding results. By both expanding our footprint for the existing customers as well as opening new channels for growth, such as through new contract vehicles, the multiple award IDIQs, our platform for generating new business has never been stronger. Slide six serves as an illustrative example case study of how we expect to leverage our existing work and broaden capabilities to win new business in the near term and long term. Each step in the process provides a new building block for which we can establish franchise programs across the health and readiness marketplace. This graphic illustrates a growth campaign of selected opportunities that pull together attributes from across our company's capability sets. The opportunities vary by total contract value and customer, but each requires the differentiated capabilities and solution that DLH can offer. We remain well positioned for organic wealth going forward and believe the federal marketplace offers opportunities to expand our technology-powered solutions. We remain focused on accelerating the company's top line, leveraging our credentialed personnel, highly enhanced capabilities, and over time, we'll more than make up for any of the, again, the small business set aside erosions. We continue to believe the best is yet to come and are building a stronger DLH to serve the needs and challenges of our clients. With that, I'd like to turn the call over to Catherine John Bull, our Chief Financial Officer. Catherine.