(Mark One) | ||
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended September 30, 2015 | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
New Jersey (State or other jurisdiction of incorporation or organization) | 22-1899798 (I.R.S. Employer Identification No.) | |
3565 Piedmont Road, NE Atlanta, Georgia (Address of principal executive offices) | 30305 (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
COMMON STOCK, PAR VALUE $.001 PER SHARE | THE NASDAQ STOCK MARKET, LLC |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o (do not check if a smaller reporting company) | Smaller reporting company ý |
PAGE | ||
• | high barriers for entry into the selected healthcare and logistics markets in which we serve; |
• | substantial component of our employee base possess specialized credentials and licenses; |
• | over 90% of our revenue is derived from prime contracts with the US Government; |
• | strong past performance record, as evidenced by our DVA customer scoring the highest in overall satisfaction in the J.D. Power National Pharmacy Study; and |
• | targeted expansion is in critical national priority markets (healthcare and health IT) with Federal budget stability. |
Name | Age | Positions | |||
Zachary C. Parker | 58 | President, Chief Executive Officer and Director | |||
Kathryn M. JohnBull | 56 | Chief Financial Officer | |||
John F. Armstrong | 66 | Executive Vice President | |||
Kevin Wilson | 50 | President, DLH Solutions, Inc. |
• | increased competition for acquisitions may increase the costs of our acquisitions; |
• | non-discovery or non-disclosure of material liabilities during the due diligence process, including omissions by prior owners of any acquired businesses or their employees in complying with applicable laws or regulations, or their inability to fulfill their contractual obligations to the federal government or other customers; and |
• | acquisition financing may not be available on reasonable terms or at all. |
• | require certain supermajority votes; and |
• | establish certain advance notice procedures for nomination of candidates for election as directors and for shareholders' proposals to be considered at shareholders' meetings. |
Location | Approximate Square Feet | Expiration Date | ||
Corporate Headquarters | ||||
3565 Piedmont Road, NE, Building 3, Suite 700 | 12,275 | 4/31/2024 | ||
Atlanta, GA 30305 | ||||
Additional Atlanta office location | ||||
1776 Peachtree Street, Suite 300S | 3,925 | 7/31/2017 | ||
Atlanta, GA 30309 |
FISCAL YEAR 2015 | LOW | HIGH | ||||||
1st Quarter | $ | 1.70 | $ | 3.65 | ||||
2nd Quarter | $ | 1.86 | $ | 2.50 | ||||
3rd Quarter | $ | 1.85 | $ | 2.79 | ||||
4th Quarter | $ | 2.25 | $ | 3.50 |
FISCAL YEAR 2014 | LOW | HIGH | ||||||
1st Quarter | $ | 1.02 | $ | 1.74 | ||||
2nd Quarter | $ | 1.44 | $ | 3.50 | ||||
3rd Quarter | $ | 1.28 | $ | 2.48 | ||||
4th Quarter | $ | 1.74 | $ | 2.10 |
Equity Compensation Plan Information(*) | |||||||||||
Plan Category | (a) Number of Securities to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted Average exercise price of outstanding options, warrants and rights (or fair value at date of grant) | (c) Number of securities remaining available for future issuances under equity compensation plans (excluding securities reflected in column (a)) | ||||||||
Equity Compensation Plans Approved by Security Holders: | |||||||||||
2006 Long Term Incentive Plan | 2,324,000 | $ | 1.40 | 864,097 | |||||||
Equity Compensation Plans Not Approved by Stockholders | 20,000 | (1) | $ | 2.28 | — |
(1) | Consists of warrants to purchase common stock issued to a consultant. |
($ in thousands) | |||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Programs | Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program | |||||||||||||||
First Quarter Total | 1,353 | $ | 1.98 | 1,353 | $ | 256 | |||||||||||||
Second Quarter Total | 76,600 | $ | 2.25 | 76,600 | $ | 85 | |||||||||||||
Third Quarter Total | 3,907 | $ | 2.03 | 3,907 | $ | 77 | |||||||||||||
July 2015 | — | $ | — | — | $ | 77 | |||||||||||||
August 2015 | — | $ | — | — | $ | 77 | |||||||||||||
September 2015 | — | $ | — | — | $ | 77 | |||||||||||||
Fourth Quarter Total | — | $ | — | — | $ | 77 |
• | behavioral health; |
• | telehealth services; |
• | medication therapy management; |
• | health IT commodities; |
• | process management; |
• | case management; |
• | clinical systems support; and |
• | healthcare delivery. |
Fiscal Year Ended | Fiscal Year Ended | |||
Revenue Stream | September 30, 2015 | September 30, 2014 | ||
Healthcare Delivery Solutions | 53% | 52% | ||
Logistics & Technical Services | 47% | 48% |
Year Ended | |||||||||||||||||||||
Consolidated Statement of Operations: | September 30, 2015 | September 30, 2014 | Change (lower) | ||||||||||||||||||
Revenue | $ | 65,346 | 100.0 | % | $ | 60,493 | 100.0 | % | $ | 4,853 | — | % | |||||||||
Direct expenses | 53,658 | 82.1 | % | 51,534 | 85.2 | % | 2,124 | (3.1 | )% | ||||||||||||
Gross margin | 11,688 | 17.9 | % | 8,959 | 14.8 | % | 2,729 | 3.1 | % | ||||||||||||
General and administrative expenses | 9,137 | 14.0 | % | 8,089 | 13.4 | % | 1,048 | 0.6 | % | ||||||||||||
Depreciation and amortization | 55 | 0.1 | % | 106 | 0.2 | % | (51 | ) | (0.1 | )% | |||||||||||
Income from operations | 2,496 | 3.8 | % | 764 | 1.3 | % | 1,732 | 2.5 | % | ||||||||||||
Other income (expense), net | 744 | 1.1 | % | (4 | ) | — | % | 748 | 1.1 | % | |||||||||||
Income before income taxes | 3,240 | 5.0 | % | 760 | 1.3 | % | 2,480 | 3.7 | % | ||||||||||||
Income tax expense(benefit) | (5,488 | ) | (8.4 | )% | (4,597 | ) | (7.6 | )% | 891 | (0.8 | )% | ||||||||||
Net income | $ | 8,728 | 13.4 | % | $ | 5,357 | 8.9 | % | $ | 3,371 | 4.5 | % | |||||||||
Income before taxes per share - basic (ref a) | $ | 0.34 | $ | 0.08 | $ | 0.26 | |||||||||||||||
Income before taxes per share - diluted (ref a) | $ | 0.32 | $ | 0.08 | $ | 0.24 | |||||||||||||||
Net income per share - basic | $ | 0.91 | $ | 0.56 | $ | 0.35 | |||||||||||||||
Net income per share - diluted | $ | 0.87 | $ | 0.54 | $ | 0.33 |
Year Ended | ||||||||||||
September 30, | ||||||||||||
($ in thousands except per share amounts) | 2015 | 2014 | Change | |||||||||
Net income | $ | 8,728 | $ | 5,357 | $ | 3,371 | ||||||
(i) Interest and other (income) expenses (net) | (744 | ) | 4 | (748 | ) | |||||||
(ii) Provision for taxes | (5,488 | ) | (4,597 | ) | (891 | ) | ||||||
(iii) Depreciation and amortization | 55 | 106 | (51 | ) | ||||||||
(iv) G&A expenses - equity grants | 479 | 472 | 7 | |||||||||
EBITDA adjusted for other non-cash charges | $ | 3,030 | $ | 1,342 | $ | 1,688 | ||||||
Weighted-average outstanding shares fully diluted | 10,039 | 9,839 | 200 | |||||||||
Fully diluted EPS on GAAP net income | $ | 0.87 | $ | 0.54 | $ | 0.33 | ||||||
Adjustments to derive adjusted EBITDA EPS: | ||||||||||||
(i) Interest and other expenses, net | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | ||||
(ii) Provision for income taxes | $ | (0.56 | ) | $ | (0.46 | ) | $ | (0.10 | ) | |||
(iii) Depreciation and amortization | $ | 0.01 | $ | 0.01 | $ | — | ||||||
(iv) G&A expenses — equity grants | $ | 0.05 | $ | 0.05 | $ | — | ||||||
Diluted EPS on Adjusted EBITDA | $ | 0.30 | $ | 0.14 | $ | 0.16 |
Year Ended | |||
Ref | 09/30/15 | ||
Cash and cash equivalents | (a) | $5.6 | |
Borrowing on line of credit | (b) | $0.0 | |
Line of credit availability | (c) | $2.6 | |
Adjusted EBITDA | (d) | $3.0 | |
Cash flows from operating activities | (e) | $2.0 | |
Cash flows used in investing and financing activities | (f) | $(0.3) | |
Working capital (current assets minus current liabilities) | (g) | $4.6 |
Payments Due By Period | ||||||||||||||||||||
Obligations | Less than | 2-3 | 4-5 | More than 5 | ||||||||||||||||
(Amounts in thousands) | Total | 1 Year | Years | Years | Years | |||||||||||||||
Loan Payable (1) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Operating Leases (2) | 2,298 | 161 | 530 | 550 | 1,057 | |||||||||||||||
Total Obligations | $ | 2,298 | $ | 161 | $ | 530 | $ | 550 | $ | 1,057 |
(in thousands) | |
Reduction of accounts receivable related to retroactive payment claim | ($9,306) |
Reduction of accrued payroll related to retroactive wage and benefit payments | $8,677 |
Net other (expense) | ($629) |
As Filed | Pro forma | |||||||||||
September 30, 2014 | Current Report | September 30, 2014 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 3,908 | $ | 3,908 | ||||||||
Accounts receivable, net | 12,372 | $ | (9,306 | ) | 3,066 | |||||||
Deferred taxes, net | 84 | 84 | ||||||||||
Other current assets | 510 | 510 | ||||||||||
Total current assets | 16,874 | (9,306 | ) | 7,568 | ||||||||
Equipment and improvements, net | 63 | 63 | ||||||||||
Deferred taxes, net | 4,513 | 4,513 | ||||||||||
Goodwill | 8,595 | 8,595 | ||||||||||
Other long-term assets | 27 | 27 | ||||||||||
Total assets | $ | 30,072 | $ | (9,306 | ) | $ | 20,766 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accrued payroll | $ | 11,465 | $ | (8,677 | ) | $ | 2,788 | |||||
Accounts payable, accrued expenses, and other current liabilities | 4,746 | 4,746 | ||||||||||
Total current liabilities | 16,211 | (8,677 | ) | 7,534 | ||||||||
Other long term liabilities | 15 | 15 | ||||||||||
Total liabilities | 16,226 | (8,677 | ) | 7,549 | ||||||||
Commitments and contingencies | ||||||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, $.10 par value; authorized 5,000 shares, none issued and outstanding | — | — | ||||||||||
Common stock, $.001 par value; authorized 40,000 shares; issued 9,568 and outstanding 9,566 at September 30, 2014 | 10 | 10 | ||||||||||
Additional paid-in capital | 76,083 | 76,083 | ||||||||||
Accumulated deficit | (62,244 | ) | (629 | ) | (62,873 | ) | ||||||
Treasury stock, 2 shares at cost at September 30, 2014 | (3 | ) | (3 | ) | ||||||||
Total shareholders’ equity | 13,846 | (629 | ) | 13,217 | ||||||||
Total liabilities and shareholders' equity | $ | 30,072 | $ | (9,306 | ) | $ | 20,766 |
(a) | (1) Financial Statements |
(a) | (2) Financial Statement Schedule |
(a) | (3) Exhibits |
Exhibit No. | Description | ||
3.1 | Amended and Restated Certificate of Incorporation (filed as Exhibit A to Definitive Proxy Statement dated May 1, 2000 as filed with the Securities and Exchange Commission). | ||
3.2 | Amended By-Laws of Registrant adopted as of May 15, 2001 (filed as Exhibit 3.4 to the Registration Statement on Form S-4 File No. 333-61730). | ||
3.3 | Amended and restated By-Laws of Registrant adopted as of August 29, 2001 (filed as Exhibit 3.5 to the Registrant's Form S-3 filed on December 27, 2001). | ||
3.4 | Amendment to By-Laws of Registrant adopted November 8, 2007 (filed as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on November 13, 2007). | ||
3.5 | Amendment to Amended and Restated Certificate of Incorporation of the Company (filed as Exhibit B to Definitive Proxy Statement dated March 13, 2008 as filed with the Securities and Exchange Commission). | ||
3.6 | Amendment to Amended and Restated Certificate of Incorporation of the Company filed June 25, 2012 (filed as Exhibit 3.1 to Current Report on Form 8-K filed on June 26, 2012). | ||
3.7 | Amendment to Amended and Restated Certificate of Incorporation filed February 12, 2015 (filed as Annex A to the Company’s Proxy Statement dated December 31, 2014). | ||
4.1 | Specimen of the Common Stock Certificate (Exhibit 4.1 to Registration Statement on Form S-18, File No. 33-46246-NY). |
4.2 | Form of Warrant Issued in October 2011 (filed as Exhibit 4.1 to Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2011). | ||
10.1 | # | Form Notice of Restricted Stock Bonus Award and Restricted Stock Agreement (filed as Exhibit 10.2 to the Form 10-Q filed on May 15, 2006). | |
10.2 | # | Employment Agreement between the Company and Zachary C. Parker, dated February 9, 2010 (filed as Exhibit 10.1 to Current Report on Form 8-K filed on February 11, 2010). | |
10.3 | # | Form of Stock Option Award under 2006 Long Term Incentive Plan (filed as Exhibit 10.6 to Quarterly Report on Form 10-Q filed on February 16, 2010). | |
10.4 | † | Loan and Security Agreement, dated as of July 29, 2010, between Teamstaff Government Solutions, Inc. and Presidential Financial Corporation (filed as Exhibit 10.1 to Quarterly Report on Form 10-Q filed on August 16, 2010). | |
10.5 | Secured Promissory Note, dated July 29, 2010, executed by TeamStaff Government Solutions, Inc.(filed as Exhibit 10.2 to Quarterly Report on Form 10-Q filed on August 16, 2010). | ||
10.6 | Corporate Guaranty Agreement, dated July 29, 2010, executed by TeamStaff, Inc. (filed as Exhibit 10.3 to Quarterly Report on Form 10-Q filed on August 16, 2010). | ||
10.7 | Amendment to Secured Promissory Note and Loan and Security Agreement with Presidential Financial Corporation (filed as Exhibit 10.1 to Current Report on Form 8-K, filed on August 27, 2010). | ||
10.8 | Second Amendment to Secured Promissory Note and Loan and Security Agreement with Presidential Financial Corporation (filed as Exhibit 10.1 to Current Report on Form 8-K, filed on November 30, 2010). | ||
10.9 | Third Amendment to Secured Promissory Note and Loan and Security Agreement with Presidential Financial Corporation, dated February 9, 2011 (filed as Exhibit 10.35 to Annual Report on Form 10-K for the fiscal year ended September 30, 2010). | ||
10.10 | # | 2006 Long Term Incentive Plan, as amended (filed as Exhibit A to the Proxy Statement dated July 18, 2011) with respect to the Annual Meeting of Shareholders held on August 18, 2011). | |
10.11 | # | Amendment to Employment Agreement between the Company and Zachary C. Parker (filed as Exhibit 10.2 to Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011). | |
10.12 | Fourth Amendment to Secured Promissory Note and Loan and Security Agreement with Presidential Financial Corporation dated November 30, 2011 (filed as Exhibit 10.44 to Annual Report on Form 10-K for the fiscal year ended September 30, 2011). | ||
10.13 | Amendment to Secured Promissory Note and Loan Agreement dated as of May 18, 2012 (filed as Exhibit 10.1 to Current Report on Form 8-K filed May 24, 2012). | ||
10.14 | # | Employment Agreement with Kathryn M. JohnBull (filed as Exhibit 10.1 to Current Report on Form 8-K filed June 29, 2012). | |
10.15 | # | Amendment to Employment Agreement with Zachary C. Parker (filed as Exhibit 10.1 to Current Report on Form 8-K filed November 12, 2012). | |
10.16 | # | Employment Agreement between the Company and Kevin Wilson (filed as Exhibit 10.1 to Current Report on Form 8-K dated October 3, 2013). | |
10.17 | # | Employment Agreement between the Company and John F. Armstrong (filed as Exhibit 10.1 to Current Report on Form 8-K filed on December 4, 2013). | |
10.18 | # | 2006 Long Term Incentive Plan, as amended (filed as Annex A to the Company’s Proxy Statement dated January 3, 2014). | |
10.19 | Sixth Amendment to Secured Promissory Note and Loan Agreement (filed as Exhibit 10.1 to Current Report on Form 8-K filed April 2, 2014). | ||
10.20 | # | Amendment to Employment Agreement with Kathryn M. JohnBull (filed as Exhibit 10.1 to Current Report on Form 8-K filed September 24, 2014). | |
10.21 | # | Amendment to Employment Agreement with Zachary C. Parker (filed on August 5, 2015 as Exhibit 10.2 to Quarterly Report on Form 10-Q filed on August 5, 2015). | |
10.22 | Lease Agreement dated April 27, 2015 between DLH Holdings Corp. and Piedmont Center, 1-4 LLC (filed as Exhibit 10.1 to Quarterly Report on Form 10-Q filed on August 5, 2015) | ||
10.23 | # | Amendment to Employment Agreement with Kevin Wilson (filed as Exhibit 10.1 to Current Report on Form 8-K filed October 2, 2015). |
10.24 | # | Amendment to Employment Agreement with John F. Armstrong (filed as Exhibit 10.2 to Current Report on Form 8-K filed October 2, 2015). | |
14.00 | Code of Ethics (Exhibit 14.1 to Annual Report on Form 10-K for the fiscal year ended September 30, 2003). | ||
21.00 | * | Subsidiaries of Registrants. | |
23.10 | * | Consent of WithumSmith+Brown, PC | |
31.10 | * | Certification of Chief Executive Officer pursuant to Section 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a). | |
31.20 | * | Certification of Chief Financial Officer pursuant to Section 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a). | |
32.10 | * | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 17 CFR 240.13a-14(b) or 17 CFR 240.15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. | |
101.0 | * | The following financial information from the DLH Holdings Corp. Annual Report on Form 10-K for the fiscal year ended September 30, 2015, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Cash Flows; (iv) the Consolidated Statements Of Shareholders' Equity and, (v) the Notes to the Consolidated Financial Statements. |
† | Portions of this exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
DLH HOLDINGS CORP. | ||||
/s/ ZACHARY C. PARKER | ||||
By: | Zachary C. Parker Chief Executive Officer (Principal Executive Officer) |
Signature | Capacity | Date |
/s/ FREDERICK G. WASSERMAN | Chairman of the Board | December 16, 2015 |
Frederick G. Wasserman | ||
/s/ T. STEPHEN JOHNSON | Director | December 16, 2015 |
T. Stephen Johnson | ||
/s/ MARTIN J. DELANEY | Director | December 16, 2015 |
Martin J. Delaney | ||
/s/ WILLIAM H. ALDERMAN | Director | December 16, 2015 |
William H. Alderman | ||
/s/ AUSTIN J. YERKS III | Director | December 16, 2015 |
Austin J. Yerks III | ||
/s/ ELDER GRANGER | Director | December 16, 2015 |
Elder Granger | ||
/s/ ZACHARY C. PARKER | Chief Executive Officer, President and Director | December 16, 2015 |
Zachary C. Parker | ||
/s/ KATHRYN M. JOHNBULL | Chief Financial Officer and Principal Accounting Officer | December 16, 2015 |
Kathryn M. JohnBull |
Page | ||
Year Ended | ||||||||
September 30, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 65,346 | $ | 60,493 | ||||
Direct expenses | 53,658 | 51,534 | ||||||
Gross margin | 11,688 | 8,959 | ||||||
General and administrative expenses | 9,137 | 8,089 | ||||||
Depreciation and amortization | 55 | 106 | ||||||
Income from operations | 2,496 | 764 | ||||||
Total other income (expense), net | 744 | (4 | ) | |||||
Income before income taxes | 3,240 | 760 | ||||||
Income tax expense(benefit) | (5,488 | ) | (4,597 | ) | ||||
Net income | $ | 8,728 | $ | 5,357 | ||||
Earnings per share - basic | $ | 0.91 | $ | 0.56 | ||||
Earnings per share - diluted | $ | 0.87 | $ | 0.54 | ||||
Weighted average common shares outstanding | ||||||||
Basic | 9,573 | 9,570 | ||||||
Diluted | 10,039 | 9,839 |
September 30, 2015 | September 30, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,558 | $ | 3,908 | ||||
Accounts receivable, net | 3,286 | 12,372 | ||||||
Deferred taxes, net | 982 | 84 | ||||||
Other current assets | 429 | 510 | ||||||
Total current assets | 10,255 | 16,874 | ||||||
Equipment and improvements, net | 336 | 63 | ||||||
Deferred taxes, net | 9,325 | 4,513 | ||||||
Goodwill | 8,595 | 8,595 | ||||||
Other long-term assets | 113 | 27 | ||||||
Total assets | $ | 28,624 | $ | 30,072 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued payroll | $ | 2,795 | $ | 11,465 | ||||
Accounts payable, accrued expenses, and other current liabilities | 2,851 | 4,746 | ||||||
Total current liabilities | 5,646 | 16,211 | ||||||
Other long term liabilities | 109 | 15 | ||||||
Total liabilities | 5,755 | 16,226 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity: | ||||||||
Preferred stock, $.10 par value; authorized 5,000 shares, none issued and outstanding | — | — | ||||||
Common stock, $.001 par value; authorized 40,000 shares; issued 9,551 at September 30, 2015 and 9,568 at September 30, 2014; outstanding 9,551 at September 30, 2015 and 9,566 at September 30, 2014 | 10 | 10 | ||||||
Additional paid-in capital | 76,375 | 76,083 | ||||||
Accumulated deficit | (53,516 | ) | (62,244 | ) | ||||
Treasury stock, 0 shares at cost at September 30, 2015 and 2 shares at cost at September 30, 2014 | — | (3 | ) | |||||
Total shareholders’ equity | 22,869 | 13,846 | ||||||
Total liabilities and shareholders' equity | $ | 28,624 | $ | 30,072 |
Year Ended | ||||||||
September 30, | ||||||||
2015 | 2014 | |||||||
Operating activities | ||||||||
Net income | $ | 8,728 | $ | 5,357 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization including financing costs | 55 | 116 | ||||||
Change in fair value of derivative financial instruments | — | (99 | ) | |||||
Non-cash equity grants | 479 | 472 | ||||||
Deferred taxes, net | (5,710 | ) | (4,597 | ) | ||||
Settlement of retroactive payment claim, net | 629 | — | ||||||
Settlement of legacy payroll tax issue, net | (1,477 | ) | — | |||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (220 | ) | (429 | ) | ||||
Other current assets | 83 | 89 | ||||||
Other assets | — | 1,030 | ||||||
Accounts payable, accrued payroll, accrued expenses and other current liabilities | (506 | ) | (269 | ) | ||||
Other long term assets/liabilities | (78 | ) | (5 | ) | ||||
Net cash provided by operating activities | 1,983 | 1,665 | ||||||
Investing activities | ||||||||
Purchase of equipment and improvements | (142 | ) | (13 | ) | ||||
Net cash used in investing activities | (142 | ) | (13 | ) | ||||
Financing activities | ||||||||
Net payments on bank loan payable | — | (951 | ) | |||||
Repayments of capital lease obligations | (8 | ) | (22 | ) | ||||
Net repayment on convertible debentures | — | (140 | ) | |||||
Proceeds from stock purchase | — | 52 | ||||||
Repurchased shares of common stock held as treasury stock | — | 21 | ||||||
Repurchased shares of common stock subsequently canceled | (183 | ) | (112 | ) | ||||
Net cash used in financing activities | (191 | ) | (1,152 | ) | ||||
Net decrease in cash and cash equivalents | 1,650 | 500 | ||||||
Cash and cash equivalents at beginning of period | 3,908 | 3,408 | ||||||
Cash and cash equivalents at end of period | $ | 5,558 | $ | 3,908 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the period for interest | $ | 36 | $ | 124 | ||||
Equipment purchases with capital leases | $ | 187 | $ | — | ||||
Cash paid during the period for income taxes | $ | — | $ | — | ||||
Non-cash settlement of warrants | $ | — | $ | 62 | ||||
Reduction of accounts receivable related to retroactive payment claim | $ | (9,306 | ) | $ | — | |||
Reduction of accrued payroll related to retroactive wage and benefit payments | $ | 8,677 | $ | — | ||||
Reduction of accrued payroll taxes related to legacy payroll tax issue | $ | (1,477 | ) | $ | — |
Common Stock | (1) | Treasury Stock | (1) | |||||||||||||||||||||||
Additional Paid-In Capital | Accumulated Deficit | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total Shareholders' Equity | ||||||||||||||||||||||
BALANCE, September 30, 2013 | 9,318 | $ | 9 | $ | 75,400 | $ | (67,601 | ) | 2 | $ | (24 | ) | $ | 7,784 | ||||||||||||
Director restricted stock grants | 80 | 109 | — | — | — | 109 | ||||||||||||||||||||
Expense related to employee stock option grants | — | — | 363 | — | — | — | 363 | |||||||||||||||||||
Exercise of convertible debentures | 168 | — | 209 | — | — | — | 210 | |||||||||||||||||||
Exercise of warrants | 54 | 1 | 114 | — | — | — | 114 | |||||||||||||||||||
Cancellations of shares | (52 | ) | — | (112 | ) | — | (2 | ) | 24 | (88 | ) | |||||||||||||||
Purchase of common stock | (2 | ) | — | — | 2 | (3 | ) | (3 | ) | |||||||||||||||||
Net income | — | — | — | 5,357 | — | — | 5,357 | |||||||||||||||||||
BALANCE, September 30, 2014 | 9,566 | $ | 10 | $ | 76,083 | $ | (62,244 | ) | 2 | $ | (3 | ) | $ | 13,846 | ||||||||||||
Director restricted stock grants | 66 | — | 177 | — | — | — | 177 | |||||||||||||||||||
Expense related to employee stock option grants | — | — | 302 | — | — | — | 302 | |||||||||||||||||||
Repurchased shares of common stock subsequently canceled | (81 | ) | — | (186 | ) | — | (2 | ) | 3 | (183 | ) | |||||||||||||||
Net income | — | — | — | 8,728 | — | — | 8,728 | |||||||||||||||||||
BALANCE, September 30, 2015 | 9,551 | $ | 10 | $ | 76,375 | $ | (53,516 | ) | — | $ | — | $ | 22,869 |
(in thousands) | |||||||||||||||
September 30, | September 30, | ||||||||||||||
Ref | 2015 | 2014 | |||||||||||||
Billed receivables | $ | 2,498 | $ | 2,569 | |||||||||||
Unbilled receivables-retroactive payment claim | (a) | — | 9,306 | ||||||||||||
Unbilled receivables-other | 788 | 497 | |||||||||||||
Total unbilled receivables | 788 | 9,803 | |||||||||||||
Total accounts receivable | 3,286 | 12,372 | |||||||||||||
Less: Allowance for doubtful accounts | (b) | — | — | ||||||||||||
Accounts receivable, net | $ | 3,286 | $ | 12,372 |
(in thousands) | |||||||||||||||
September 30, | September 30, | ||||||||||||||
Ref | 2015 | 2014 | |||||||||||||
Workers’ compensation receivable | (a) | $ | 29 | $ | 199 | ||||||||||
Prepaid insurance expense | 156 | 176 | |||||||||||||
Other prepaid expenses | 244 | 135 | |||||||||||||
Other current assets | $ | 429 | $ | 510 |
(in thousands) | |||||||||||||||
September 30, | September 30, | ||||||||||||||
Ref | 2015 | 2014 | |||||||||||||
Accrued payroll related to billed receivables | $ | 2,259 | $ | 2,440 | |||||||||||
Accrued payroll related to retroactive payment claim | (a) | $ | — | $ | 8,677 | ||||||||||
Accrued payroll related to unbilled accounts receivable | $ | 536 | $ | 348 | |||||||||||
Total accrued payroll related to unbilled accounts receivable | (a) | $ | 536 | $ | 9,025 | ||||||||||
Total accrued payroll | $ | 2,795 | $ | 11,465 |
(in thousands) | |||||||||||||||
September 30, | September 30, | ||||||||||||||
Ref | 2015 | 2014 | |||||||||||||
Furniture and equipment | $ | 197 | $ | 139 | |||||||||||
Computer equipment | 162 | 126 | |||||||||||||
Computer software | 297 | 430 | |||||||||||||
Leasehold improvements | 63 | 24 | |||||||||||||
Total fixed assets | 719 | 719 | |||||||||||||
Less accumulated depreciation and amortization | (383 | ) | (656 | ) | |||||||||||
Equipment and improvements, net | (a) | $ | 336 | $ | 63 |
(in thousands) | |||||||||||||
September 30, | September 30, | ||||||||||||
Ref | 2015 | 2014 | |||||||||||
Accounts payable | $ | 87 | $ | 779 | |||||||||
Accrued benefits | 267 | 720 | |||||||||||
Accrued bonus and incentive compensation | 858 | 693 | |||||||||||
Accrued workers compensation insurance | 945 | 767 | |||||||||||
Other accrued expenses | 694 | 339 | |||||||||||
Payroll tax payable | (a) | — | 1,448 | ||||||||||
Total Accrued expenses and other current liabilities | $ | 2,851 | $ | 4,746 |
(in thousands) | |||||||||
Year Ended | |||||||||
September 30, | |||||||||
Ref | 2015 | 2014 | |||||||
Interest expense, net | $ | (80 | ) | $ | (99 | ) | |||
Amortization of deferred financing costs | — | (10 | ) | ||||||
Change in value of financial instruments | (a) | — | 99 | ||||||
Miscellaneous other income (expense), net | (b) | 824 | 6 | ||||||
Total other income (expense), net | $ | 744 | $ | (4 | ) |
(in thousands) | |||||||||
Year Ended | |||||||||
Ref | September 30, | ||||||||
2015 | 2014 | ||||||||
DLH employees | $ | 302 | $ | 363 | |||||
Non-employee directors | (a) | 177 | 109 | ||||||
Total compensation expense | $ | 479 | $ | 472 |
(in thousands) | |||||||||
Period Ended | |||||||||
September 30, | |||||||||
Ref | 2015 | 2014 | |||||||
Unrecognized expense for DLH employees | (a) | $ | 44 | $ | 346 | ||||
Unrecognized expense for non-employee directors | (b) | 96 | 125 | ||||||
Total unrecognized expense | $ | 140 | $ | 471 |
(in years) | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | (in thousands) | ||||||||||
(in thousands) | Average | Remaining | Aggregate | |||||||||
Number of | Exercise | Contractual | Intrinsic | |||||||||
Ref | Shares | Price | Term | Value | ||||||||
Options outstanding, September 30, 2013 | 1,613 | $1.15 | 7.9 | $ | 388 | |||||||
Granted | (a) | 830 | $1.52 | |||||||||
Canceled | (63 | ) | $1.40 | |||||||||
Options outstanding, September 30, 2014 | 2,380 | $1.40 | 7.8 | $ | 1,589 | |||||||
Canceled | (56 | ) | $1.40 | |||||||||
Options outstanding, September 30, 2015 | 2,324 | $1.40 | 6.8 | $ | 3,649 |
• | average risk free interest rates of 2.55% for 2014; |
• | expected volatility of 65.8% for 2014; |
• | contractual lives and expected lives were 10 years for 2014; and |
• | no dividend yield was contemplated for either period. |
(in thousands) | |||||||
Number of Shares | |||||||
September 30, | |||||||
Ref | 2015 | 2014 | |||||
Vested and exercisable | (a) | 1,093 | 896 | ||||
Unvested | (b) | 1,231 | 1,484 | ||||
Options outstanding | 2,324 | 2,380 |
(in thousands) | |||||||||
Year Ended | |||||||||
September 30, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income | $ | 8,728 | $ | 5,357 | |||||
Denominator: | |||||||||
Denominator for basic net income per share - weighted-average outstanding shares | 9,573 | 9,570 | |||||||
Effect of dilutive securities: | |||||||||
Stock options and restricted stock | 466 | 269 | |||||||
Denominator for diluted net income per share - weighted-average outstanding shares | 10,039 | 9,839 | |||||||
Net income per share - basic | (a) | $ | 0.91 | $ | 0.56 | ||||
Net income per share - diluted | (a) | $ | 0.87 | $ | 0.54 |
Payments Due By Period | ||||||||||||||||||||
Obligations | Less than | 2-3 | 4-5 | More than 5 | ||||||||||||||||
(Amounts in thousands) | Total | 1 Year | Years | Years | Years | |||||||||||||||
Loan Payable (1) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Operating Leases (2) | 2,298 | 161 | 530 | 550 | 1,057 | |||||||||||||||
Total Obligations | $ | 2,298 | $ | 161 | $ | 530 | $ | 550 | $ | 1,057 |
Year Ended | ||||||||
September 30, | ||||||||
(amounts in thousands) | 2015 | 2014 | ||||||
Current deferred income tax asset: | ||||||||
Net operating loss carryforwards and tax credits | $ | 391 | $ | 98 | ||||
Accrued liabilities | 753 | 122 | ||||||
Valuation allowance | (162 | ) | (136 | ) | ||||
Net current deferred tax asset | $ | 982 | $ | 84 |
Year Ended | ||||||||
September 30, | ||||||||
(amounts in thousands) | 2015 | 2014 | ||||||
Deferred income tax asset (liability): | ||||||||
Net operating loss carry forwards and tax credits | $ | 12,524 | $ | 16,556 | ||||
Stock based compensation | 767 | 646 | ||||||
Fixed and intangible assets | (2,379 | ) | (2,176 | ) | ||||
Other items, net | 5 | 488 | ||||||
Valuation allowance | (1,592 | ) | (11,001 | ) | ||||
Net deferred tax asset | $ | 9,325 | $ | 4,513 |
Year Ended | ||||||||
September 30, | ||||||||
(amounts in thousands) | 2015 | 2014 | ||||||
Current expense (benefit) | $ | 220 | $ | 7 | ||||
Deferred expense (benefit) | (5,708 | ) | (4,604 | ) | ||||
Total expense (benefit) | $ | (5,488 | ) | $ | (4,597 | ) |
Year Ended | ||||||||
September 30, | ||||||||
(amounts in thousands) | 2015 | 2014 | ||||||
Federal statutory rate | $ | 1,134 | $ | 258 | ||||
State taxes, net | 155 | 46 | ||||||
Other permanent items | 7 | 6 | ||||||
Change in valuation allowance | (6,784 | ) | (4,907 | ) | ||||
$ | (5,488 | ) | $ | (4,597 | ) |
2015 Quarters | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenue | $ | 15,682 | $ | 15,893 | $ | 16,781 | $ | 16,990 | ||||||||
Gross margin | 2,533 | 2,730 | 3,038 | 3,387 | ||||||||||||
Income from operations (1) | 259 | 515 | 763 | 958 | ||||||||||||
Other income (expense), net (2) | (36 | ) | (651 | ) | (34 | ) | 1,466 | |||||||||
Income (loss) before income taxes | $ | 223 | $ | (136 | ) | $ | 729 | $ | 2,424 | |||||||
Income tax expense(benefit) (2) | $ | 89 | $ | (54 | ) | $ | 292 | (5,814 | ) | |||||||
Net income (loss) | $ | 134 | $ | (82 | ) | $ | 437 | $ | 8,238 | |||||||
Earnings (loss) per share: (3) | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.01 | ) | $ | 0.05 | $ | 0.86 | |||||||
Diluted | $ | 0.01 | $ | (0.01 | ) | $ | 0.04 | $ | 0.82 |
2014 Quarters | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Revenue | $ | 14,477 | $ | 14,745 | $ | 15,692 | $ | 15,579 | ||||||||
Gross margin | 2,112 | 2,199 | 2,308 | 2,340 | ||||||||||||
Income from operations | 66 | 225 | 268 | 205 | ||||||||||||
Other income (expense), net | 67 | (27 | ) | (17 | ) | (27 | ) | |||||||||
Income before income taxes | $ | 133 | $ | 198 | $ | 251 | $ | 178 | ||||||||
Income tax expense(benefit) (2) | $ | — | $ | — | $ | — | $ | (4,597 | ) | |||||||
Net income | $ | 133 | $ | 198 | $ | 251 | $ | 4,775 | ||||||||
Earnings per share: (3) | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.02 | $ | 0.03 | $ | 0.50 | ||||||||
Diluted | $ | 0.01 | $ | 0.02 | $ | 0.03 | $ | 0.48 |
/s/ WithumSmith+Brown, PC | |
WithumSmith+Brown, PC |
/s/ Zachary C. Parker Zachary C. Parker Chief Executive Officer (Principal Executive Officer) |
/s/ Kathryn M. JohnBull Kathryn M. JohnBull Chief Financial Officer (Principal Accounting Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
/s/ ZACHARY C. PARKER Zachary C. Parker Chief Executive Officer (Principal Executive Officer) | /s/ KATHRYN M. JOHNBULL Kathryn M. JohnBull Chief Financial Officer (Principal Accounting Officer) |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Nov. 30, 2015 |
Mar. 31, 2015 |
|
Document and Entity Information | |||
Entity Registrant Name | DLH Holdings Corp. | ||
Entity Central Index Key | 0000785557 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 9,550,536 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Public Float | $ 8,419,975 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Statement [Abstract] | ||
Revenue | $ 65,346,000 | $ 60,493,000 |
Direct expenses | 53,658,000 | 51,534,000 |
Gross margin | 11,688,000 | 8,959,000 |
General and administrative expenses | 9,137,000 | 8,089,000 |
Depreciation and amortization | 55,000 | 106,000 |
Income from operations | 2,496,000 | 764,000 |
Total other income (expense), net | 744,000 | (4,000) |
Income before income taxes | 3,240,000 | 760,000 |
Income tax expense(benefit) | 5,488,000 | 4,597,000 |
Net income | $ 8,728,000 | $ 5,357,000 |
Earnings Per Share [Abstract] | ||
Net income (loss) per share - basic (dollars per share) | $ 0.91 | $ 0.56 |
Net income (loss) per share - diluted (dollars per share) | $ 0.87 | $ 0.54 |
Weighted average common shares outstanding | ||
Basic (in shares) | 9,573 | 9,570 |
Diluted (in shares) | 10,039 | 9,839 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2015 |
Sep. 30, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued shares | 9,551,000 | 9,568,000 |
Common stock, outstanding shares | 9,551,000 | 9,566,000 |
Treasury stock, shares | 0 | 2,000 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Operating activities | ||
Net income | $ 8,728 | $ 5,357 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization including financing costs | 55 | 116 |
Change in fair value of derivative financial instruments | 0 | (99) |
Non-cash equity grants | 479 | 472 |
Deferred taxes, net | (5,710) | (4,597) |
Settlement of retroactive payment claim, net | 629 | 0 |
Settlement of legacy payroll tax issue, net | (1,477) | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | (220) | (429) |
Other current assets | 83 | 89 |
Other assets | 0 | 1,030 |
Accounts payable, accrued payroll, accrued expenses and other current liabilities | (506) | (269) |
Other long term assets/liabilities | (78) | (5) |
Net cash provided by operating activities | 1,983 | 1,665 |
Investing activities | ||
Purchase of equipment and improvements | (142) | (13) |
Net cash used in investing activities | (142) | (13) |
Financing activities | ||
Net payments on bank loan payable | 0 | (951) |
Repayments of capital lease obligations | (8) | (22) |
Net repayment on convertible debentures | 0 | (140) |
Proceeds from stock purchase | 0 | 52 |
Repurchased shares of common stock held as treasury stock | 0 | 21 |
Repurchased shares of common stock subsequently canceled | (183) | (112) |
Net cash used in financing activities | (191) | (1,152) |
Net decrease in cash and cash equivalents | 1,650 | 500 |
Cash and cash equivalents at beginning of period | 3,908 | 3,408 |
Cash and cash equivalents at end of period | 5,558 | 3,908 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest | 36 | 124 |
Equipment purchases with capital leases | 187 | 0 |
Cash paid during the period for income taxes | 0 | 0 |
Non-cash settlement of warrants | 0 | 62 |
Reduction of accounts receivable related to retroactive payment claim | $ (9,306) | 0 |
Reduction of accrued payroll related to retroactive wage and benefit payments | $ 0 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
|||||
---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance, Shares at Sep. 30, 2013 | 9,318,000 | 2,000 | ||||||||
Beginning Balance at Sep. 30, 2013 | $ 7,784 | [1] | $ 9 | $ 75,400 | [1] | $ (67,601) | $ (24) | |||
Director restricted stock grants (shares) | 80,000 | |||||||||
Director restricted stock grants | [1] | 109 | 109 | |||||||
Expense related to employee stock option grants | [1] | 363 | 363 | |||||||
Exercise of convertible debentures (shares) | 168,000 | |||||||||
Exercise of convertible debentures | [1] | 210 | 209 | |||||||
Exercise of warrants (shares) | 54,000 | |||||||||
Exercise of warrants | 114 | [1] | $ 1 | 114 | [1] | |||||
Cancellations of shares (shares) | (52,000) | (2,000) | ||||||||
Cancellations of shares | (88) | [1] | (112) | [1] | $ 24 | |||||
Purchase of common stock (shares) | (2,000) | (2,000) | ||||||||
Purchase of common stock | (3) | [1] | $ (3) | |||||||
Net income | $ 5,357 | [1] | 5,357 | |||||||
Ending Balance, Shares at Sep. 30, 2014 | 9,566,000 | 9,566,000 | 2,000 | |||||||
Ending Balance at Sep. 30, 2014 | $ 13,846 | [1] | $ 10 | 76,083 | [1] | (62,244) | $ (3) | |||
Director restricted stock grants (shares) | 66,000 | |||||||||
Director restricted stock grants | [1] | 177 | 177 | |||||||
Expense related to employee stock option grants | [1] | 302 | 302 | |||||||
Purchase of common stock (shares) | (81,000) | (2,000) | ||||||||
Purchase of common stock | (183) | [1] | (186) | [1] | $ 3 | |||||
Net income | $ 8,728 | [1] | 8,728 | |||||||
Ending Balance, Shares at Sep. 30, 2015 | 9,551,000 | 9,551,000 | 0 | |||||||
Ending Balance at Sep. 30, 2015 | $ 22,869 | [1] | $ 10 | $ 76,375 | [1] | $ (53,516) | $ 0 | |||
|
Basis of Presentation |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles and with the instructions to Form 10-K and Regulation S-K. |
Business Overview |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview For more than 25 years, DLH Holdings Corp. ("DLH"), has provided professional services to the U.S. Government. Headquartered in Atlanta, Georgia, DLH employs over 1,250 skilled technicians, logisticians, engineers, healthcare and support personnel at more than 30 locations around the United States. DLH’s operating subsidiary, DLH Solutions, Inc., provides services and solutions in two major market areas: Healthcare Delivery Solutions and Logistics & Technical Services. Our government customers, a majority of whom are within the Departments of Veterans Affairs (“DVA”) and Defense (“DoD”), benefit from our proven leadership, processes, technical excellence, industry-leading productivity and affordability enhancement tools, and Lean Six Sigma-based quality improvement processes. The remaining portion of DLH’s business is comprised of customers within other Federal agencies, including the Departments of Interior, Justice, and Agriculture at locations throughout the United States. DLH Holdings Corp. (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our") manages its operations from its principal executive offices at 3565 Piedmont Road NE, Building 3 Suite 700, Atlanta Georgia 30305. Presently, the Company derives all of its revenue from agencies of the federal government. A major customer is defined as a customer from whom the Company derives at least 10% of its revenues. In each of the fiscal years ended September 30, 2015 and 2014, revenue from the U.S. Government accounted, either directly or indirectly, for 100% of the Company’s total revenue. Within the U.S. Government, our largest customer continues to be the Department of Veterans Affairs (DVA), at 95% and 96% of revenue for the twelve months ended September 30, 2015 and 2014. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of September 30, 2015 and 2014. We believe that the credit risk associated with our receivables is limited due to the credit worthiness of these customers. Accordingly, DLH remains dependent upon the continuation of its relationship with the DVA. As of September 30, 2015, contracts with the DVA have anticipated periods of performance ranging from approximately one to up to three years. These agreements are subject to the Federal Acquisition Regulations. While there can be no assurance as to the actual amount of services that the Company will ultimately provide to the DVA under its current contract, we believe that our strong working relationship and our effective service delivery support ongoing performance for the contract term. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationships with the DVA. |
New Accounting Pronouncements |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. In August 2015, the FASB issued updated guidance deferring the effective date for all entities by one year. Public business entities should apply the guidance to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of this guidance. In June 2014, the FASB issued guidance related to accounting for share-based payments for certain performance stock awards. The effective date of this guidance is for annual periods and interim periods within those periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the impact of this guidance. In August 2014, the Financial Accounting Standards Board (FASB) issued guidance regarding management's going concern evaluations. The guidance requires management to evaluate, at each interim and annual reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued, and provide related disclosures. The guidance is effective for all entities for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not believe the standard will have a material impact on our financial statement disclosures. In June 2015, the Financial Accounting Standards Board (FASB) issued guidance covering a wide range of topics in the codification to make minor corrections or minor improvements. These changes are not expected to have a significant effect on current accounting practice or create a significant administrative cost. The guidance is effective for all entities beginning after December 15, 2015, and for annual and interim periods thereafter, and early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. In August 2015, the Financial Accounting Standards Board (FASB) issued guidance regarding presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, adding SEC paragraphs in conjunction with simplifying the presentation of debt issuance costs. The guidance requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. This standard is not expected to have a material impact on the Company's consolidated financial statements. In September 2015, Financial Accounting Standards Board (FASB) issued guidance regarding business combinations for which the accounting is incomplete by the end of the reporting period in which the combination occurs, and during the measurement period have an adjustment to provisional amounts recognized. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with earlier application permitted for financial statements that have not been issued. This standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Supporting Financial Information Supporting Financial Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supporting Financial Information | Supporting Financial Information Accounts Receivable
Ref (a): As previously reported, during the fiscal year ended September 30, 2008, DLH Holdings Corp. (the “Company”) accrued salaries and benefits of $10.1 million related to the estimated resolution of retroactive payment cases asserted by the Department of Labor (“DOL”). During the same period, the Company recognized revenues of $10.8 million related to expected recovery of these costs, plus estimated indirect costs, under contractual arrangements with the Department of Veterans Affairs (“DVA”). At September 30, 2014, the amount of the remaining accounts receivable with the DVA approximated $9.3 million and accrued liabilities for salaries to employees and related benefits totaled $8.7 million. The $9.3 million in accounts receivable was unbilled to the DVA at September 30, 2014. In September 2014, we submitted a claim to the DVA seeking a final determination and resolution of this matter. During the quarter ended March 31, 2015, we were advised that the DOL would not take further action with respect to the retroactive payment cases and that it would not object to the DVA’s resolution of this matter with the Company. As a result, we had no obligation for the payment of these accrued salaries and benefits. Because no retroactive wage payments were required, we have no contractual recovery of costs from the DVA. Accordingly, in order to resolve this matter, on March 30, 2015, we entered into a mutual release of claims with the DVA, pursuant to which both parties agreed to fully release each other from any and all claims arising pursuant to this matter. As a result of the closure of this issue, as a part of our reporting for the quarter ended March 31, 2015, we removed the accruals of estimated revenue and expense which were recorded in the year ended September 30, 2008. Further, we reported a reduction of $9.3 million in accounts receivable, a reduction of $8.7 million in accrued liabilities for salaries to employees and related benefits, and a net charge to our earnings of approximately $629 thousand for the fiscal quarter ended March 31, 2015 relating to the resolution of this matter. The net expense related to this issue was non-cash and not related to income from current operations. Ref (b): Accounts receivable are unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both September 30, 2015 and 2014. Other Current Assets
Ref (a): As part of the Company’s discontinued PEO operations, DLH had a workers’ compensation program with Zurich American Insurance Company (“Zurich”) which covered the period from March 22, 2002 through November 16, 2003, inclusive. DLH estimates that the remaining workers compensation receivable of approximately $29 thousand will be received within the next twelve months. Accrued Payroll
Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”. Equipment and Improvements, net
Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Accounts Payable, Accrued Expenses, and Other Current Liabilities
Ref (a): In prior periods, DLH had received notices from the IRS claiming taxes, interest and penalties were due related to payroll taxes. These notices were predominantly related to the former PEO operations which were sold in fiscal year 2003. During fiscal year ended September 30, 2015, DLH engaged tax counsel who was able to demonstrate that there were no taxes due related to this legacy issue. In September 2015, DLH received confirmation from the IRS that no taxes, interest, or penalties were due or otherwise payable. Other Income (Expense)
Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures in prior year ended September 30, 2014. Ref (b): Current year miscellaneous other income includes $1.5 million from resolution of the legacy payroll tax issue in fourth quarter 2015, partially offset by the $0.6 million, net, March 2015 non-cash settlement of the retroactive payment issue. |
Liquidity |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Liquidity | Liquidity At September 30, 2015, the Company had cash and cash equivalents of approximately $5.6 million, net working capital of approximately $4.6 million. For the year ended September 30, 2015, the Company realized income before taxes of approximately $3.2 million, as compared to $0.8 million for the year ended September 30, 2014. The Company has a credit facility with a lending institution which provides a maximum amount of $6.0 million and includes a maximum amount available under the unbilled facility of $1.0 million. The current term of the credit facility expires on July 29, 2016 and thereafter shall automatically renew on each anniversary date thereof for subsequent twelve month terms unless terminated by either party. Presently, the maximum availability under this loan facility is $3.0 million, subject to eligible accounts receivable. The interest rate on the acounts receivable portion of the loan was 4.0% at September 30, 2015, and September 30, 2014. The interest rate on the unbilled accounts portion was 4.0% at September 30, 2015, and September 30, 2014. At September 30, 2015, our loan availability was approximately $2.64 million, comprised of a $1.35 million letter of credit reserve and $1.29 million of unused loan capacity. Management believes, at present, that: (a) cash and cash equivalents of approximately $5.6 million as of September 30, 2015; (b) the amount available under its line of credit (which is limited to the amount of eligible assets); (c) planned operating cash flow; and (d) effects of cost reduction programs and initiatives should be sufficient to support the Company's operations for twelve months from the date of these financial statements. |
Significant Accounting Policies |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | . Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill, expected settlement amounts of accounts receivable, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and the valuation of derivative financial instruments associated with debt agreements. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The recognition of revenue from fixed rates is based upon objective criteria that generally do not require significant estimates that may change over time. DLH recognizes and records revenue on government contracts when it is realized, or realizable, and earned. DLH considers these requirements met when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured. Goodwill DLH continues to review its goodwill for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. At September 30, 2015, we performed a goodwill impairment evaluation. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2015. Factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. If an impairment write off of all the goodwill became necessary in future periods, a charge of up to $8.6 million would be expensed in the consolidated statement of operations. All remaining goodwill is attributable to the DLH Solutions operating subsidiary. Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will not be sustained upon examination. We had no uncertain tax positions at either September 30, 2015 and 2014. We report interest and penalties as a component of income tax expense. In the fiscal years ending September 30, 2015 and 2014, we recognized no interest and no penalties related to income taxes. The Company has adequate net operating loss carryforwards to offset against any taxable income in the current period. The Company recorded a valuation allowance against its net deferred tax assets of $1.8 million and $11.1 million at September 30, 2015 and 2014, respectively. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. |
Stock-based Compensatin, Equity Grants, and Warrants |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation, Equity Grants, and Warrants | Stock-based compensation, equity grants, and warrants Stock-based compensation expense All grants of equity are presently made under the 2006 Long Term Incentive Plan. As of September 30, 2015, $0.9 million shares remained available for grant under the Plan. Options issued under the Plan are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:
Ref (a): Equity grants of restricted stock to non-employee directors, in accordance with DLH compensation policy for non-employee directors. The shares vested immediately and stock expense was recognized accordingly. Unrecognized stock-based compensation expense
Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. This expense is expected to be recognized over the next 1.8 years, with a weighted average life of 1.2 years. Ref (b): Unrecognized stock expense related to prior years equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. The shares will vest and expense will be recorded upon future satisfaction of specified performance. Stock option activity for the year ended September 30, 2015: The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.
Ref (a): Option grants to DLH employees were valued using a binomial model, under the following criteria:
The resulting average fair values were $0.76 for 2014. No grants new grants issued for 2015. Stock options shares outstanding, vested and unvested for the period ended:
Ref (a): Weighted average exercise price of vested and exercisable shares was $1.40 and $1.41 at September 30, 2015 and 2014, respectively. Aggregate intrinsic value was $1.6 million and $0.6 million at September 30, 2015 and 2014, respectively. Weighted average contractual term was 7.3 years and 8.0 years at September 30, 2015 and 2014, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria. |
Fair Value of Financial Instruments Fair Value of Financial Instruments |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has financial instruments, including accounts receivable, accounts payable, loan payable, notes payable, and accrued expense. Due to the short term nature of these instruments, DLH estimates that the fair value of all financial instruments at September 30, 2015 and September 30, 2014 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets. |
Earnings (Loss) Per Share |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings Per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common shares outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method.
Ref (a): For fiscal years ended September 30, 2015 and September 30, 2014, we realized a $5.5 million and $4.6 million tax benefit, respectively, related to the release of a portion of our valuation allowance to reflect the amount of our deferred tax asset that we expect to realize in future years. This resulted in an improvement of net income per share basic and diluted for both fiscal years. |
Commitment and Contingencies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations
(1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement. (2) On April 27, 2015, as part of its facilities consolidation effort, the Company entered into a lease agreement (the “Lease”) with Piedmont Center, 1-4 LLC (the “Landlord”) for the premises known as Suite 700 at Three Piedmont Center, 3565 Piedmont Road, N.E. Atlanta, Georgia 30305. The rentable floor area of the demised premises is 12,275 square feet. The Lease expires 8.7 years following the “Rental Commencement Date”. The Rental Commencement Date will occur when the Landlord has substantially completed the build-out of the demised premises, including any tenant improvements. The Rental Commencement Date began on September 1, 2015. The Company will pay base rental payments for the demised premises in the amount of $20,970 per month during the first year of the lease. The base rent due under the Lease shall increase yearly based on an agreed-upon annual rate of increase and in the final year of the Lease, the base rental payment will be $25,552 per month. The Landlord will excuse a total of $120 thousand in rent due during the initial eight (8) months of the Lease term. Additionally, approximately 4,000 square feet of the leased premises will not be occupied, and rent will not be due, during the initial two years of the Lease term. The monthly rent payments under the Lease include budgeted operating expenses and real estate taxes, as such terms are defined in the Lease. However, the Company will make an additional payment each year if actual operating expenses exceed the budget. The Company has a right, at its option and subject to the terms of the Lease, to extend the term of the Lease for one (1) five year period at a market rate. In addition, the Landlord has agreed to provide the Company with a right of first refusal to lease additional space if the Landlord desires to lease a portion of certain adjacent premises. Workers Compensation We accrue workers compensation expense based on claims submitted, applying actuarial loss development factors to estimate the costs incurred but not yet recorded. Our accrued liability for claims development for the years ended September 30, 2015 and 2014 was $945 thousand and $767 thousand, respectively. Legal Proceedings The Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows. |
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes DLH accounts for income taxes in accordance with the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. DLH recorded a $5.5 million and $4.6 million benefit for income tax for fiscal year ended September 30, 2015 and 2014, respectively.The benefit related principally to the release of a portion of our valuation allowance, to reflect the amount of our deferred tax asset that we expect to realize in future years. For each fiscal year, that release was based upon our estimate of future taxable earnings based on results generated. To project taxable income in the carryforward period, we first estimated revenue for the carryforward period based on the expected performance under current contracts, plus expected changes in the contract base. Using these estimates of revenue, we assumed a proportional level of book income as was generated from the revenues recorded in each fiscal year. We further assumed that tax goodwill amortization would continue through its 15 year life. Using the taxable income projection, we calculated the amount of NOL utilization that would be achieved within each loss year’s carryforward period. Our estimate of future taxable income will be revised at least annually or more frequently upon the occurrence of an event which warrants a new estimate. At September 30, 2015 the Company had net operating losses of approximately $36.8 million and $2.4 million for U.S. and state tax return purposes, respectively. The NOLs begin to expire in 2021 and continue to expire through 2033. As a result of our analysis of state net operating losses, we determined that a substantial portion of those losses related to jurisdictions for which a future benefit is not anticipated. Further, we analyzed our unutilized tax credits and determined that it is not likely that we will realize a future benefit from those credits. Accordingly, we reduced our deferred tax assets in the fiscal year ended September 30, 2015 to reflect the expected realization of benefit from these tax attributes. An analysis of DLH's deferred tax asset and liability is as follows:
The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows:
The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations:
We file income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. We are no longer subject to federal income tax examinations for years before 2013 and to state and local income tax examinations by tax authorities for years before 2011. |
Quarterly Financial Data (Unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) A summary of quarterly information is as follows (in thousands, except per share data)
_______________________________________________________________________________ (1) Sum of the quarterly amounts may not equal the full fiscal year due to the effect of rounding. (2) Refer to Note 4, Supporting Financial Information, for detailed explanation of the settlement of the retroactive payment claim in second quarter 2015, favorable closure of the legacy payroll tax payable in fourth quarter 2015, and income tax benefit recorded in fourth quarter 2015 and fourth quarter 2014. (3) Sum of the quarterly net income (loss) per share amounts may not equal the full fiscal year net income per share amount due to the effect of changes during the year in the number of shares outstanding. |
Employee Benefit Plans |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits Plans | Employee Benefit Plans As of September 30, 2015, DLH and its subsidiaries maintain the DLH 401(k) Plan (the "401(k) Plan") , a defined contribution and supplemental pension plan for the benefit of its eligible employees. DLH may provide a discretionary matching contribution of of a participant's elective contributions under the 401 (k) Plan. DLH recorded related expense of $24.0 thousand in fiscal 2015 and $5.0 thousand in fiscal year 2014. A participant is always fully vested in his or her elective contributions and vests in Company matching contributions over a 4 year period. |
Subsequent Events |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events: Management has evaluated subsequent events through the date that the Company's financial statements were issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure through the date that these financial statements were issued. |
Significant Accounting Policies (Policies) |
12 Months Ended |
---|---|
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill, expected settlement amounts of accounts receivable, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and the valuation of derivative financial instruments associated with debt agreements. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. |
Revenue Recognition | Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The recognition of revenue from fixed rates is based upon objective criteria that generally do not require significant estimates that may change over time. DLH recognizes and records revenue on government contracts when it is realized, or realizable, and earned. DLH considers these requirements met when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured. |
Goodwill | Goodwill DLH continues to review its goodwill for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. At September 30, 2015, we performed a goodwill impairment evaluation. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2015. Factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. If an impairment write off of all the goodwill became necessary in future periods, a charge of up to $8.6 million would be expensed in the consolidated statement of operations. All remaining goodwill is attributable to the DLH Solutions operating subsidiary. |
Income Taxes | Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will not be sustained upon examination |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. |
Supporting Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable |
Ref (a): As previously reported, during the fiscal year ended September 30, 2008, DLH Holdings Corp. (the “Company”) accrued salaries and benefits of $10.1 million related to the estimated resolution of retroactive payment cases asserted by the Department of Labor (“DOL”). During the same period, the Company recognized revenues of $10.8 million related to expected recovery of these costs, plus estimated indirect costs, under contractual arrangements with the Department of Veterans Affairs (“DVA”). At September 30, 2014, the amount of the remaining accounts receivable with the DVA approximated $9.3 million and accrued liabilities for salaries to employees and related benefits totaled $8.7 million. The $9.3 million in accounts receivable was unbilled to the DVA at September 30, 2014. In September 2014, we submitted a claim to the DVA seeking a final determination and resolution of this matter. During the quarter ended March 31, 2015, we were advised that the DOL would not take further action with respect to the retroactive payment cases and that it would not object to the DVA’s resolution of this matter with the Company. As a result, we had no obligation for the payment of these accrued salaries and benefits. Because no retroactive wage payments were required, we have no contractual recovery of costs from the DVA. Accordingly, in order to resolve this matter, on March 30, 2015, we entered into a mutual release of claims with the DVA, pursuant to which both parties agreed to fully release each other from any and all claims arising pursuant to this matter. As a result of the closure of this issue, as a part of our reporting for the quarter ended March 31, 2015, we removed the accruals of estimated revenue and expense which were recorded in the year ended September 30, 2008. Further, we reported a reduction of $9.3 million in accounts receivable, a reduction of $8.7 million in accrued liabilities for salaries to employees and related benefits, and a net charge to our earnings of approximately $629 thousand for the fiscal quarter ended March 31, 2015 relating to the resolution of this matter. The net expense related to this issue was non-cash and not related to income from current operations. Ref (b): Accounts receivable are unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both September 30, 2015 and 2014. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets |
Ref (a): As part of the Company’s discontinued PEO operations, DLH had a workers’ compensation program with Zurich American Insurance Company (“Zurich”) which covered the period from March 22, 2002 through November 16, 2003, inclusive. DLH estimates that the remaining workers compensation receivable of approximately $29 thousand will be received within the next twelve months. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Payroll |
Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment and Improvemnts, Net |
Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable, Accrued Expenses, and Other Current Liabilities | Accounts Payable, Accrued Expenses, and Other Current Liabilities
Ref (a): In prior periods, DLH had received notices from the IRS claiming taxes, interest and penalties were due related to payroll taxes. These notices were predominantly related to the former PEO operations which were sold in fiscal year 2003. During fiscal year ended September 30, 2015, DLH engaged tax counsel who was able to demonstrate that there were no taxes due related to this legacy issue. In September 2015, DLH received confirmation from the IRS that no taxes, interest, or penalties were due or otherwise payable. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense) | Other Income (Expense)
Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures in prior year ended September 30, 2014. Ref (b): Current year miscellaneous other income includes $1.5 million from resolution of the legacy payroll tax issue in fourth quarter 2015, partially offset by the $0.6 million, net, March 2015 non-cash settlement of the retroactive payment issue. |
Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of basic and diluted net income (loss) per share | Diluted earnings per share is calculated using the treasury stock method.
Ref (a): For fiscal years ended September 30, 2015 and September 30, 2014, we realized a $5.5 million and $4.6 million tax benefit, respectively, related to the release of a portion of our valuation allowance to reflect the amount of our deferred tax asset that we expect to realize in future years. This resulted in an improvement of net income per share basic and diluted for both fiscal years. |
Stock-based Compensation, Equity Grants, and Warrants (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Expense | Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:
Ref (a): Equity grants of restricted stock to non-employee directors, in accordance with DLH compensation policy for non-employee directors. The shares vested immediately and stock expense was recognized accordingly. Unrecognized stock-based compensation expense
Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. This expense is expected to be recognized over the next 1.8 years, with a weighted average life of 1.2 years. Ref (b): Unrecognized stock expense related to prior years equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. The shares will vest and expense will be recorded upon future satisfaction of specified performance. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | This amount will change based on the fair market value of the Company’s stock.
Ref (a): Option grants to DLH employees were valued using a binomial model, under the following criteria:
The resulting average fair values were $0.76 for 2014. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the period ended:
Ref (a): Weighted average exercise price of vested and exercisable shares was $1.40 and $1.41 at September 30, 2015 and 2014, respectively. Aggregate intrinsic value was $1.6 million and $0.6 million at September 30, 2015 and 2014, respectively. Weighted average contractual term was 7.3 years and 8.0 years at September 30, 2015 and 2014, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria. |
Earnings (Loss) Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share is calculated using the treasury stock method.
Ref (a): For fiscal years ended September 30, 2015 and September 30, 2014, we realized a $5.5 million and $4.6 million tax benefit, respectively, related to the release of a portion of our valuation allowance to reflect the amount of our deferred tax asset that we expect to realize in future years. This resulted in an improvement of net income per share basic and diluted for both fiscal years. |
Commitment and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations] | Contractual Obligations
(1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement. (2) On April 27, 2015, as part of its facilities consolidation effort, the Company entered into a lease agreement (the “Lease”) with Piedmont Center, 1-4 LLC (the “Landlord”) for the premises known as Suite 700 at Three Piedmont Center, 3565 Piedmont Road, N.E. Atlanta, Georgia 30305. The rentable floor area of the demised premises is 12,275 square feet. The Lease expires 8.7 years following the “Rental Commencement Date”. The Rental Commencement Date will occur when the Landlord has substantially completed the build-out of the demised premises, including any tenant improvements. The Rental Commencement Date began on September 1, 2015. The Company will pay base rental payments for the demised premises in the amount of $20,970 per month during the first year of the lease. The base rent due under the Lease shall increase yearly based on an agreed-upon annual rate of increase and in the final year of the Lease, the base rental payment will be $25,552 per month. The Landlord will excuse a total of $120 thousand in rent due during the initial eight (8) months of the Lease term. Additionally, approximately 4,000 square feet of the leased premises will not be occupied, and rent will not be due, during the initial two years of the Lease term. The monthly rent payments under the Lease include budgeted operating expenses and real estate taxes, as such terms are defined in the Lease. However, the Company will make an additional payment each year if actual operating expenses exceed the budget. The Company has a right, at its option and subject to the terms of the Lease, to extend the term of the Lease for one (1) five year period at a market rate. In addition, the Landlord has agreed to provide the Company with a right of first refusal to lease additional space if the Landlord desires to lease a portion of certain adjacent premises. |
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of analysis of deferred tax asset and liability | An analysis of DLH's deferred tax asset and liability is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of significant components of the expense (benefit) for income taxes from continuing operations | The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of significant differences between the Federal statutory rate and the entity's effective tax rate for continuing operations | The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations:
|
Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | A summary of quarterly information is as follows (in thousands, except per share data)
_______________________________________________________________________________ (1) Sum of the quarterly amounts may not equal the full fiscal year due to the effect of rounding. (2) Refer to Note 4, Supporting Financial Information, for detailed explanation of the settlement of the retroactive payment claim in second quarter 2015, favorable closure of the legacy payroll tax payable in fourth quarter 2015, and income tax benefit recorded in fourth quarter 2015 and fourth quarter 2014. (3) Sum of the quarterly net income (loss) per share amounts may not equal the full fiscal year net income per share amount due to the effect of changes during the year in the number of shares outstanding. |
Business Overview (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Jun. 30, 2013 |
Jun. 30, 2013 |
Sep. 30, 2015
employee
location
business_area
|
Sep. 30, 2014 |
|
Concentration Risk [Line Items] | ||||
Minimum period for which entity has provided professional services to the U.S. Government (years) | 25 years | |||
Number of employees (employee) | employee | 1,250 | |||
Minimum number of locations in which entity operates (location) | location | 30 | |||
Number of broad integrated revenue streams | business_area | 2 | |||
US Government [Member] | Revenue concentration | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage (percent) | 100.00% | |||
DVA | Revenue concentration | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage (percent) | 96.00% | 97.00% | 95.00% | 96.00% |
DVA | Minimum | ||||
Concentration Risk [Line Items] | ||||
Term of government contract | 1 year | |||
DVA | Maximum | ||||
Concentration Risk [Line Items] | ||||
Term of government contract | 3 years |
Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2015 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2008 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total accounts receivable | $ 3,286 | $ 12,372 | ||
Less: Allowance for doubtful accounts | 0 | 0 | ||
Accounts Receivable, Net | 3,286 | 12,372 | ||
Retroactive billing | $ 9,300 | |||
Accrued liabilites for salaries to employees and related benefits | 0 | |||
Accrued interest and penalties | $ (629) | |||
Billed Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total accounts receivable | 2,498 | 2,569 | ||
Unbilled Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total accounts receivable | 788 | 9,803 | ||
DVA | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contract revenue nonrecurring | $ 10,800 | |||
Unfavorable Regulatory Action | Department of Labor | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accrued salaries and benefits | $ 10,100 | |||
Accrued liabilites for salaries to employees and related benefits | (8,677) | |||
Unfavorable Regulatory Action | Department of Labor | Unbilled Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total accounts receivable | 0 | 9,306 | ||
Accrued Income Receivable [Member] | Unbilled Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total accounts receivable | $ 788 | $ 497 |
Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2015 |
Sep. 30, 2014 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Workers’ compensation receivable | $ 29 | $ 199 |
Prepaid insurance expense | 156 | 176 |
Other prepaid expenses | 244 | 135 |
Other current assets | $ 429 | $ 510 |
Supporting Financial Information - Accrued Payroll (Details) - USD ($) $ in Thousands |
Sep. 30, 2015 |
Sep. 30, 2014 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued payroll related to billed receivables | $ 2,259 | $ 2,440 |
Accrued payroll related to unbilled accounts receivable | 536 | 348 |
Total accrued payroll related to unbilled accounts receivable | 536 | 9,025 |
Accrued payroll | 2,795 | 11,465 |
Unfavorable Regulatory Action | Department of Labor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued payroll related to retroactive payment claim | $ 0 | $ 8,677 |
Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Property, Plant and Equipment [Line Items] | ||
Furniture and equipment | $ 197 | $ 139 |
Computer equipment | 162 | 126 |
Computer software | 297 | 430 |
Leasehold improvements | 63 | 24 |
Property, Plant and Equipment, Gross | 719 | 719 |
Less accumulated depreciation and amortization | (383) | (656) |
Equipment and improvements, net | $ 336 | $ 63 |
Leasehold Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years |
Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2015 |
Sep. 30, 2014 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 87 | $ 779 |
Accrued benefits | 267 | 720 |
Accrued bonus and incentive compensation | 858 | 693 |
Accrued workers compensation insurance | 945 | 767 |
Other accrued expenses | 694 | 339 |
Payroll tax payable | 0 | 1,448 |
Total accrued expenses and other current liabilities | $ 2,851 | $ 4,746 |
Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Interest expense, net | $ (80) | $ (99) | ||||||||
Amortization of deferred financing costs | 0 | (10) | ||||||||
Change in value of financial instruments | 0 | 99 | ||||||||
Miscellaneous other income (expense), net | 824 | 6 | ||||||||
Other income (expense) net | $ 1,466 | $ (34) | $ (651) | $ (36) | $ (27) | $ (17) | $ (27) | $ 67 | 744 | (4) |
Settlement of legacy payroll tax issue, net | $ (1,477) | $ 0 | ||||||||
Accrued interest and penalties | $ (629) |
Liquidity (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
|
Line of Credit Facility [Line Items] | |||||||||||
Cash and cash equivalents | $ 5,558,000 | $ 3,908,000 | $ 5,558,000 | $ 3,908,000 | $ 3,408,000 | ||||||
Net working capital | 4,600,000 | 4,600,000 | |||||||||
Income before taxes | 2,424,000 | $ 729,000 | $ (136,000) | $ 223,000 | $ 178,000 | $ 251,000 | $ 198,000 | $ 133,000 | 3,240,000 | $ 760,000 | |
Amount of unused availability under the line | 2,640,000 | 2,640,000 | |||||||||
Line of Credit [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum availability | 6,000,000 | 6,000,000 | |||||||||
Amount of unused availability under the line | 1,290,000 | 1,290,000 | |||||||||
Unbilled receivables | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum availability | $ 1,000,000 | $ 1,000,000 | |||||||||
Interest rate (percent) | 4.00% | 4.00% | 4.00% | 4.00% | |||||||
Accounts receivables | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum availability | $ 3,000,000 | $ 3,000,000 | |||||||||
Interest rate (percent) | 4.00% | 4.00% | |||||||||
Letter of Credit [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount of unused availability under the line | $ 1,350,000 | $ 1,350,000 |
Significant Accounting Policies - Goodwill And Income Taxes (Details) - USD ($) $ in Thousands |
Sep. 30, 2015 |
Sep. 30, 2014 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 8,595 | $ 8,595 |
Valuation allowance against net deferred tax assets | $ (1,800) | $ 11,100 |
Stock-based Compensation, Equity Grants, and Warrants - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration term of options | 10 years | |
Risk free interest rate (percent) | 2.55% | |
Expected volatility rate (percent) | 65.80% | |
Fair value per option (in dollars per share) | $ 0.76 | |
Weighted average exercise price of vested and exercisable shares (dollars per share) | $ 1.40 | $ 1.41 |
Aggregate intrinsic value of vested and exercisable shares | $ 1.6 | $ 0.6 |
Weighted average contractual term | 7 years 3 months 11 days | 8 years |
Compensation expense recognition period | 1 year 9 months 18 days | |
Compensation expense weighted average life | 1 year 2 months 12 days | |
2006 Long Term Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 0.9 | |
Expiration term of options | 10 years |
Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total compensation expense | $ 479 | $ 472 |
Total unrecognized expense | 140 | 471 |
DLH Employees | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total unrecognized expense | 44 | 346 |
Non-employee Directors | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total unrecognized expense | 96 | 125 |
Selling, General and Administrative Expenses | DLH Employees | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total compensation expense | 302 | 363 |
Selling, General and Administrative Expenses | Non-employee Directors | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total compensation expense | $ 177 | $ 109 |
Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
|
Number of Shares | |||
Outstanding at beginning of period (in shares) | 2,380 | 1,613 | |
Granted (in shares) | 830 | ||
Cancelled (in shares) | (56) | (63) | |
Outstanding at end of period (in shares) | 2,324 | 2,380 | 1,613 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 1.40 | $ 1.15 | |
Granted (in dollars per share) | 1.52 | ||
Cancelled (in dollars per share) | 1.40 | 1.40 | |
Outstanding at end of period (in dollars per share) | $ 1.40 | $ 1.40 | $ 1.15 |
Share Based Compensation Arrangement by Share Based Payment, Award, Options Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding | 6 years 9 months 22 days | 7 years 9 months 22 days | 7 years 10 months 24 days |
Share Based Compensation Arrangement by Share Based Payment, Award, Options Aggregate Intrinsic Value [Abstract] | |||
Outstanding at the beginning of period (in dollars) | $ 1,589 | $ 388 | |
Outstanding at the end of period (in dollars) | $ 3,649 | $ 1,589 | $ 388 |
Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
---|---|---|---|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Vested and exercisable | 1,093 | 896 | |
Unvested | 1,231 | 1,484 | |
Option outstanding | 2,324 | 2,380 | 1,613 |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Numerator: | ||||||||||
Net income | $ 8,238,000 | $ 437,000 | $ (82,000) | $ 134,000 | $ 4,775,000 | $ 251,000 | $ 198,000 | $ 133,000 | $ 8,728,000 | $ 5,357,000 |
Denominator: | ||||||||||
Denominator for basic net income per share - weighted-average outstanding shares | 9,573 | 9,570 | ||||||||
Effect of dilutive securities: | ||||||||||
Stock options and restricted stock | 466 | 269 | ||||||||
Denominator for diluted net income per share - weighted-average outstanding shares | 10,039 | 9,839 | ||||||||
Net income (loss) per share - basic (dollars per share) | $ 0.86 | $ 0.05 | $ (0.01) | $ 0.01 | $ 0.50 | $ 0.03 | $ 0.02 | $ 0.01 | $ 0.91 | $ 0.56 |
Net income (loss) per share - diluted (dollars per share) | $ 0.82 | $ 0.04 | $ (0.01) | $ 0.01 | $ 0.48 | $ 0.03 | $ 0.02 | $ 0.01 | $ 0.87 | $ 0.54 |
Income tax expense(benefit) | $ 5,814,000 | $ (292,000) | $ 54,000 | $ (89,000) | $ 4,597,000 | $ (0.00) | $ (0.00) | $ (0.00) | $ 5,488,000 | $ 4,597,000 |
Commitment and Contingencies - Contractual Obligations (Details) $ in Thousands |
Sep. 30, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Loan Payable, Less than 1 Year | $ 0 |
Loan Payable, 1-3 Years | 0 |
Loan Payable, 4-5 Years | 0 |
Loan Payable, More than 5 years | 0 |
Total | 0 |
Operating Leases, Less than 1 Year | 161 |
Operating Leases, 1-3 Years | 530 |
Operating Leases, 4-5 Years | 550 |
Operating Leases,More than 5 Years | 1,057 |
Total | 2,298 |
Less than 1 Year | 161 |
Total Obligations, 1-3 Years | 530 |
Total Obligations, 4-5 Years | 550 |
Total Obligations, More than 5 Years | 1,057 |
Total | $ 2,298 |
Commitment and Contingencies (Details) |
Dec. 31, 2024
USD ($)
|
Apr. 27, 2015
USD ($)
ft²
loan_extension
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2014
USD ($)
|
---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Area of Real Estate Property | ft² | 12,275 | |||
Accrued workers compensation insurance | $ 945,000 | $ 767,000 | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 8 years 8 months 12 days | |||
Operating Leases, Rent Expenses Per Month, Net | $ 20,970 | |||
Operating Lease, Rent Expense Excused | $ 120,000 | |||
Leesee Leasing Arrangement, Operating Leases, Term of Excused Rent | 8 months | |||
Unoccupied Area of Real Estate | ft² | 4,000 | |||
Lessee Leasing Arrangements, Operating Leases, Initial Term of Contract | 2 years | |||
Lessee Leasing Arrangements, Operating Leases, Number of Extensions | loan_extension | 1 | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||
Forecast | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Operating Leases, Rent Expenses Per Month, Net | $ 25,552 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Tax Examination [Line Items] | ||||||||||
Income Tax Expense (Benefit) | $ (5,814,000) | $ 292,000 | $ (54,000) | $ 89,000 | $ (4,597,000) | $ 0.00 | $ 0.00 | $ 0.00 | $ (5,488,000) | $ (4,597,000) |
Document Period End Date | Sep. 30, 2015 | |||||||||
U.S. | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Net operating losses | 36,800,000 | $ 36,800,000 | ||||||||
State | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Net operating losses | $ 2,400,000 | $ 2,400,000 |
Income Taxes (Details 1) - USD ($) $ in Thousands |
Sep. 30, 2015 |
Sep. 30, 2014 |
---|---|---|
Current deferred income tax asset: | ||
Net operating loss carryforwards and tax credits | $ 391 | $ 98 |
Accrued liabilities | 753 | 122 |
Valuation allowance | (162) | (136) |
Net current deferred tax asset | 982 | 84 |
Deferred income tax asset (liability): | ||
Net operating loss carry forwards and tax credits | 12,524 | 16,556 |
Stock based compensation | 767 | 646 |
Fixed and intangible assets | (2,379) | (2,176) |
Other items, net | 5 | 488 |
Valuation allowance | (1,592) | (11,001) |
Net deferred tax asset | $ 9,325 | $ 4,513 |
Income Taxes (Details 2) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Tax Disclosure [Abstract] | ||||||||||
Current expense (benefit) | $ 220,000 | $ 7,000 | ||||||||
Deferred expense (benefit) | (5,708,000) | (4,604,000) | ||||||||
Total expense (benefit) | $ (5,814,000) | $ 292,000 | $ (54,000) | $ 89,000 | $ (4,597,000) | $ 0.00 | $ 0.00 | $ 0.00 | $ (5,488,000) | $ (4,597,000) |
Income Taxes (Details 3) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Tax Disclosure [Abstract] | ||||||||||
Federal statutory rate | $ 1,134,000 | $ 258,000 | ||||||||
State taxes, net | 155,000 | 46,000 | ||||||||
Other permanent items | 7,000 | 6,000 | ||||||||
Change in valuation allowance | (6,784,000) | (4,907,000) | ||||||||
Total expense (benefit) | $ (5,814,000) | $ 292,000 | $ (54,000) | $ 89,000 | $ (4,597,000) | $ 0.00 | $ 0.00 | $ 0.00 | $ (5,488,000) | $ (4,597,000) |
Quarterly Financial Data (Unaudited) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 16,990,000 | $ 16,781,000 | $ 15,893,000 | $ 15,682,000 | $ 15,579,000 | $ 15,692,000 | $ 14,745,000 | $ 14,477,000 | $ 65,346,000 | $ 60,493,000 |
Gross Profit | 3,387,000 | 3,038,000 | 2,730,000 | 2,533,000 | 2,340,000 | 2,308,000 | 2,199,000 | 2,112,000 | 11,688,000 | 8,959,000 |
Operating income | 958,000 | 763,000 | 515,000 | 259,000 | 205,000 | 268,000 | 225,000 | 66,000 | 2,496,000 | 764,000 |
Other income (expense), net (2) | 1,466,000 | (34,000) | (651,000) | (36,000) | (27,000) | (17,000) | (27,000) | 67,000 | 744,000 | (4,000) |
Income before income taxes | 2,424,000 | 729,000 | (136,000) | 223,000 | 178,000 | 251,000 | 198,000 | 133,000 | 3,240,000 | 760,000 |
Income Tax Expense (Benefit) | 5,814,000 | (292,000) | 54,000 | (89,000) | 4,597,000 | (0.00) | (0.00) | (0.00) | 5,488,000 | 4,597,000 |
Net income | $ 8,238,000 | $ 437,000 | $ (82,000) | $ 134,000 | $ 4,775,000 | $ 251,000 | $ 198,000 | $ 133,000 | $ 8,728,000 | $ 5,357,000 |
Net income (loss) per share - basic (dollars per share) | $ 0.86 | $ 0.05 | $ (0.01) | $ 0.01 | $ 0.50 | $ 0.03 | $ 0.02 | $ 0.01 | $ 0.91 | $ 0.56 |
Net income (loss) per share - diluted (dollars per share) | $ 0.82 | $ 0.04 | $ (0.01) | $ 0.01 | $ 0.48 | $ 0.03 | $ 0.02 | $ 0.01 | $ 0.87 | $ 0.54 |
Employee Benefit Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Cost Recognized | $ 24 | $ 5 |
Defined Contribution Plan Employers Matching, Contribution Vesting Period | 4 years |
(*59?@E1".Q4K"%[&KM7@+S8,67[GL9J)/]>M #S@9GH^=^<55
M_@-02P,$% @ <8"01]SD#4X, P +PP !@ !X;"]W;W)K 9Y#KO:)EG)ZT._P=HX6W&I6KD-H%V];^+.^YW+
MI^LIF2RPZRLR66/7NW0GFR[E/^]TC+L[_=:B^Z TFY[S _\[KP^GJG$^1=N*
MLM_0VPO1\BY1[UO7@"//=_>3@N];> )!N(I,0?)7X2)=Y$(=XH\6H7A)$7*K90
M&OF@TQJ""<0/><'J[@[TPGY2>6E[%9R%-I^!N\BU$)H9J^C%>#7F.5L&G-7:
M=K^8OIR^\&F@Q7!_KY9',_\'4$L#!!0 ( '& D$?ZWWY!AP, .8/ 9
M >&PO=V]R:W-H965T("?L[^^R40->UTHB_*Y73WZ>[0!S*]BOI7<^2\=7Z71=5\C(YM
M>YZX;K,]\C)OOHDSK[H[>U&7>=N=U@>W.=<\W_5&9>%2SXO<,C]5H]FTO_:]
MGDW%I2U.%?]>.\VE+//ZOSDOQ/5C1$:W"S].AV,K+[BSJ7NWVYU*7C4G43DU
MWW^,_B*3C#()Z1$_3_S::,>.)/\IQ"]YDNT^1I[DP N^;:6+O/O[XBDO"NFI
MB_RO2#9<+^SEHNS^ ]02P,$%
M @ <8"01VIY0Q+D 0 J@4 !D !X;"]W;W)K8]N,W_ L[4@%OXFHFE:B,U>Z
MI6U3EIPKT$&$3_J?4>O!.1\HE,ILMWHOQEDR'A3OKI-Q'L_9?U!+ P04
M" !Q@)!'14@'VZ4! "Q P &0 'AL+W=O
Q24HR[5"!NHC?DH/IRP@(N 7
MA\'>S%'(?M;Z+2Q^5$>+4="_]@>J#^(DKDLUD$(PPU,C2'04PDS?=A45Q::FV$8$"I2F&(8AL@T)%,YJBLW;
M*)K3%-F[26KHB0S*4M_$QF9RI+C<9$UD\R9*9O7$9CRD."\)='(W(V@
"':Z #($