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DLH Holdings Corp. (DLHC-3.38%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $90,782,000 from $97,850,000 in the same quarter the previous year. The decrease is primarily attributed to the conversion of certain contracts in the Department of Veterans Affairs and Department of Defense portfolios to small business contractors.
Contract costs for the quarter were $72,382,000, representing 79.7% of revenue, compared to 80.8% in the same quarter of the previous year. This decrease in cost ratio is due to a decrease in revenue volume from low margin non-labor costs and a decrease in overhead costs.
The company reported a gross profit of $5,637,000 for the quarter, compared to $6,819,000 in the previous year, with the decline attributed to reduced revenue.
General and administrative expenses increased to $8,456,000 from $7,697,000, primarily due to an increase in business development expenses.
Net income for the quarter was $1,115,000, down from $2,151,000 in the previous year. The decrease was due to lower revenue and increased general and administrative expenses.
Cash used in operating activities was $11,538,000, while cash used in investing activities was $552,000, primarily due to capital expenditures.
Cash provided by financing activities was $12,199,000, which was used to satisfy short-term working capital needs.
DLH had a working capital of $2,886,000 as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a secured term loan and a revolving line of credit with a ceiling of up to $50,000,000.
DLH does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on providing technology-powered health and readiness services and solutions to federal government customers, emphasizing digital transformation, cybersecurity, and systems engineering.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the DLH Holdings Corp. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.