New Jersey | 22-1899798 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
3565 Piedmont Road, NE, Bldg. 3, Suite 700 | ||
Atlanta, Georgia | 30305 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer o | |
Non-accelerated filer o | Smaller Reporting Company x | |
(Do not check if a smaller reporting company) |
PAGE | ||
Part I — Financial Information | ||
Item 1. Financial Statements | ||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2015 | 2014 | ||||||||
Revenue | $ | 16,559 | $ | 15,682 | |||||
Direct expenses | 13,642 | 13,149 | |||||||
Gross margin | 2,917 | 2,533 | |||||||
General and administrative expenses | 2,515 | 2,251 | |||||||
Depreciation and amortization | 20 | 23 | |||||||
Income from operations | 382 | 259 | |||||||
Total other income (expense), net | (575 | ) | (36 | ) | |||||
Income (loss) before income taxes | (193 | ) | 223 | ||||||
Income tax (benefit) expense | (77 | ) | 89 | ||||||
Net income (loss) | $ | (116 | ) | $ | 134 | ||||
Earnings (loss) per share - basic & diluted | $(0.01) | $0.01 | |||||||
Weighted average common shares outstanding: | |||||||||
Basic | 9,568 | 9,601 | |||||||
Diluted | 10,082 | 10,048 |
(unaudited) | ||||||||
December 31, 2015 | September 30, 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,995 | $ | 5,558 | ||||
Accounts receivable, net | 3,373 | 3,286 | ||||||
Deferred taxes, net | 982 | 982 | ||||||
Other current assets | 452 | 429 | ||||||
Total current assets | 10,802 | 10,255 | ||||||
Equipment and improvements, net | 336 | 336 | ||||||
Deferred taxes, net | 9,439 | 9,325 | ||||||
Goodwill | 8,595 | 8,595 | ||||||
Other long-term assets | 50 | 113 | ||||||
Total assets | $ | 29,222 | $ | 28,624 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued payroll | $ | 2,386 | $ | 2,795 | ||||
Accounts payable, accrued expenses, and other current liabilities | 3,668 | 2,851 | ||||||
Total current liabilities | 6,054 | 5,646 | ||||||
Other long term liabilities | 83 | 109 | ||||||
Total liabilities | 6,137 | 5,755 | ||||||
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 and outstanding 9,717 at December 31, 2015 and 9,551 at September 30, 2015 | 10 | 10 | ||||||
Additional paid-in capital | 76,707 | 76,375 | ||||||
Accumulated deficit | (53,632 | ) | (53,516 | ) | ||||
Total shareholders’ equity | 23,085 | 22,869 | ||||||
Total liabilities and shareholders' equity | $ | 29,222 | $ | 28,624 |
(unaudited) | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2015 | 2014 | |||||||
Operating activities | ||||||||
Net (loss) income | $ | (116 | ) | $ | 134 | |||
Adjustments to reconcile net (loss)/income to changes in cash from operating activities: | ||||||||
Depreciation and amortization including financing costs | 20 | 23 | ||||||
Non-cash equity grants | 332 | 273 | ||||||
Deferred taxes, net | (114 | ) | 89 | |||||
Changes in operating assets and liabilities | — | |||||||
Accounts receivable | (87 | ) | 95 | |||||
Other current assets | (23 | ) | (100 | ) | ||||
Accounts payable, accrued payroll, accrued expenses, and other current liabilities | 408 | (575 | ) | |||||
Other long term assets/liabilities | 60 | 8 | ||||||
Net cash provided by/(used in) operating activities | 480 | (53 | ) | |||||
Investing activities | ||||||||
Purchase of equipment and improvements | (20 | ) | (94 | ) | ||||
Net cash used in investing activities | (20 | ) | (94 | ) | ||||
Financing activities | ||||||||
Repayments of capital lease obligations | (23 | ) | — | |||||
Net repayment on convertible debentures | — | (3 | ) | |||||
Net cash used in financing activities | (23 | ) | (3 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 437 | (150 | ) | |||||
Cash and cash equivalents at beginning of period | 5,558 | 3,908 | ||||||
Cash and cash equivalents at end of period | $ | 5,995 | $ | 3,758 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the period for interest | $ | — | $ | 10 | ||||
Cash paid during the period for income taxes | $ | 119 | $ | — |
(in thousands) | |||||||||||||
December 31, | September 30, | ||||||||||||
Ref | 2015 | 2015 | |||||||||||
Billed receivables | $ | 2,336 | $ | 2,498 | |||||||||
Unbilled receivables | 1,037 | 788 | |||||||||||
Total accounts receivable | 3,373 | 3,286 | |||||||||||
Less: Allowance for doubtful accounts | (a) | — | — | ||||||||||
Accounts receivable, net | $ | 3,373 | $ | 3,286 |
(in thousands) | |||||||||||||
December 31, | September 30, | ||||||||||||
Ref | 2015 | 2015 | |||||||||||
Prepaid insurance expense | 97 | 156 | |||||||||||
Prepaid holiday benefits | 211 | — | |||||||||||
Other prepaid expenses | 144 | 273 | |||||||||||
Other current assets | $ | 452 | $ | 429 |
(in thousands) | |||||||||||||
December 31, | September 30, | ||||||||||||
Ref | 2015 | 2015 | |||||||||||
Accrued payroll related to billed receivables | $ | 1,664 | $ | 2,259 | |||||||||
Accrued payroll related to unbilled accounts receivable | $ | 722 | $ | 536 | |||||||||
Total accrued payroll | $ | 2,386 | $ | 2,795 |
(in thousands) | |||||||||||||
December 31, | September 30, | ||||||||||||
Ref | 2015 | 2015 | |||||||||||
Furniture and equipment | $ | 197 | $ | 197 | |||||||||
Computer equipment | 182 | 162 | |||||||||||
Computer software | 297 | 297 | |||||||||||
Leasehold improvements | 63 | 63 | |||||||||||
Total fixed assets | 739 | 719 | |||||||||||
Less accumulated depreciation and amortization | (403 | ) | (383 | ) | |||||||||
Equipment and improvements, net | (a) | $ | 336 | $ | 336 |
(in thousands) | |||||||||||||
December 31, | September 30, | ||||||||||||
Ref | 2015 | 2015 | |||||||||||
Accounts payable | $ | 950 | $ | 87 | |||||||||
Accrued benefits | 966 | 267 | |||||||||||
Accrued bonus and incentive compensation | (a) | 164 | 858 | ||||||||||
Accrued workers compensation insurance | 930 | 945 | |||||||||||
Other accrued expenses | 658 | 694 | |||||||||||
Total Accrued expenses and other current liabilities | $ | 3,668 | $ | 2,851 |
(in thousands) | ||||||||||
Three Months Ended | ||||||||||
December 31, | ||||||||||
Ref | 2015 | 2014 | ||||||||
Interest expense, net | $ | — | $ | (36 | ) | |||||
Other expense, net | (a) | (575 | ) | — | ||||||
Total other expense, net | $ | (575 | ) | $ | (36 | ) |
(in thousands) | |||||||||
Three Months Ended | |||||||||
Ref | December 31, | ||||||||
2015 | 2014 | ||||||||
DLH employees | $ | 8 | $ | 96 | |||||
Non-employee directors | (a) | 324 | 177 | ||||||
Total compensation expense | $ | 332 | $ | 273 |
(in thousands) | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
Ref | 2015 | 2014 | |||||||
Unrecognized expense for DLH employees | (a) | $ | 36 | $ | 249 | ||||
Unrecognized expense for non-employee directors | (b) | 76 | 125 | ||||||
Total unrecognized expense | $ | 112 | $ | 374 |
(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, 2015 | 2,324 | $1.40 | 6.81 | $ | 3,649 | |||||||
Granted | — | — | ||||||||||
Exercised | (a) | (100 | ) | $1.23 | ||||||||
Options outstanding, December 31, 2015 | 2,224 | $1.40 | 6.49 | $ | 6,512 |
(in thousands) | |||||||
Number of Shares | |||||||
December 31, | |||||||
Ref | 2015 | 2014 | |||||
Vested and exercisable | 993 | 968 | |||||
Unvested | (a) | 1,231 | 1,368 | ||||
Options outstanding | 2,224 | 2,336 |
(in thousands) | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | (116 | ) | $ | 134 | ||||
Denominator: | |||||||||
Denominator for basic net income per share - weighted-average outstanding shares | 9,568 | 9,601 | |||||||
Effect of dilutive securities: | |||||||||
Stock options and restricted stock | 514 | 447 | |||||||
Denominator for diluted net income per share - weighted-average outstanding shares | 10,082 | 10,048 | |||||||
Net income (loss) per share - basic | $ | (0.01 | ) | $ | 0.01 | ||||
Net income (loss) per share - diluted | $ | (0.01 | ) | $ | 0.01 |
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) | 2,275 | 208 | 529 | 553 | 985 | |||||||||||||||
Total Obligations | $ | 2,275 | $ | 208 | $ | 529 | $ | 553 | $ | 985 |
• | behavioral health; |
• | telehealth services; |
• | medication therapy management; |
• | health IT commodities; |
• | process management; |
• | case management; |
• | clinical systems support; and |
• | healthcare delivery. |
Three Months Ended | ||||
December 31, | ||||
Revenue Stream | 2015 | 2014 | ||
Healthcare Delivery Solutions % of Revenue | 53% | 52% | ||
Logistics & Technical Services % of Revenue | 47% | 48% |
Three Months Ended | |||||||||||||||||||||
Consolidated Statement of Operations: | December 31, 2015 | December 31, 2014 | Change (lower) | ||||||||||||||||||
Revenue | $ | 16,559 | 100.0 | % | $ | 15,682 | 100.0 | % | $ | 877 | — | % | |||||||||
Direct expenses | 13,642 | 82.4 | % | 13,149 | 83.8 | % | 493 | (1.4 | )% | ||||||||||||
Gross margin | 2,917 | 17.6 | % | 2,533 | 16.2 | % | 384 | 1.4 | % | ||||||||||||
General and administrative expenses | 2,515 | 15.2 | % | 2,251 | 14.4 | % | 264 | 0.8 | % | ||||||||||||
Depreciation and amortization | 20 | 0.1 | % | 23 | 0.1 | % | (3 | ) | — | % | |||||||||||
Income from operations | 382 | 2.3 | % | 259 | 1.7 | % | 123 | 0.6 | % | ||||||||||||
Other expense, net | (575 | ) | (3.5 | )% | (36 | ) | (0.2 | )% | (539 | ) | (3.3 | )% | |||||||||
Income (loss) before income taxes | (193 | ) | (1.2 | )% | 223 | 1.4 | % | (416 | ) | (2.6 | )% | ||||||||||
Income tax (benefit) expense | (77 | ) | (0.5 | )% | 89 | 0.6 | % | (166 | ) | (1.1 | )% | ||||||||||
Net income (loss) | $ | (116 | ) | (0.7 | )% | $ | 134 | 0.9 | % | $ | (250 | ) | (1.6 | )% | |||||||
Net income (loss) per share - basic & diluted | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) |
• | Acquisition expenses are excluded because they do not relate to the ongoing operation of the existing business base and they tend to vary significantly based on the timing of proposed transactions. We believe that excluding this expense allows for improved comparability of results from period to period. |
• | Equity compensation is excluded because it is non-cash in nature. We believe that excluding this expense allows for improved comparability of results from period to period. |
Three Months Ended | ||||||||||||
December 31, | ||||||||||||
($ in thousands except per share amounts) | 2015 | 2014 | Change | |||||||||
Net income (loss) | $ | (116 | ) | $ | 134 | $ | (250 | ) | ||||
(i) Interest and other (income) expense (net): | ||||||||||||
(i)(a) Interest and other expense | — | 37 | (37 | ) | ||||||||
(i)(b) Acquisition expenses | 575 | — | 575 | |||||||||
(ii) Provision for (benefit from) taxes | (77 | ) | 89 | (166 | ) | |||||||
(iii) Depreciation and amortization | 20 | 23 | (3 | ) | ||||||||
(iv) G&A expenses - equity grants | 332 | 274 | 58 | |||||||||
Adjusted EBITDA | $ | 734 | $ | 557 | $ | 177 | ||||||
Weighted-average outstanding shares fully diluted | 10,082 | 10,048 | 34 | |||||||||
Fully diluted EPS on GAAP net income (loss) | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) | ||||
Adjustments to derive adjusted EBITDA EPS: | ||||||||||||
(i) Interest and other expense, net: | ||||||||||||
(i)(a) Interest and other expense | $ | — | $ | — | $ | — | ||||||
(i)(b) Acquisition expenses | $ | 0.06 | $ | — | $ | 0.06 | ||||||
(ii) Provision for income taxes | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) | ||||
(iii) Depreciation and amortization | $ | — | $ | — | $ | — | ||||||
(iv) G&A expenses — equity grants | $ | 0.03 | $ | 0.03 | $ | — | ||||||
Diluted EPS on Adjusted EBITDA | $ | 0.07 | $ | 0.05 | $ | 0.02 |
First Quarter Ended | |||
Ref | 12/31/15 | ||
Cash and cash equivalents | (a) | $6.0 | |
Borrowing on line of credit | (b) | $0.0 | |
Line of credit availability | (c) | $2.6 | |
Adjusted EBITDA | (d) | $0.7 | |
Cash flows from operating activities | (e) | $0.5 | |
Cash flows used in investing and financing activities | (f) | $0.0 | |
Working capital (current assets minus current liabilities) | (g) | $4.7 |
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) | 2,275 | 208 | 529 | 553 | 985 | |||||||||||||||
Total Obligations | $ | 2,275 | $ | 208 | $ | 529 | $ | 553 | $ | 985 |
($ 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 | |||||||||||||||
October 2015 | — | $ | — | — | $ | 77 | |||||||||||||
November 2015 | — | $ | — | — | $ | 77 | |||||||||||||
December 2015 | — | $ | — | — | $ | 77 | |||||||||||||
First Quarter Total | — | $ | — | — | $ | 77 |
Exhibit | Incorporated by Reference | Filed | ||||||||
Number | Exhibit Description | Form | Dated | Exhibit | Herewith | |||||
31.1 | Certification of Chief Executive Officer pursuant to Section 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a) | X | ||||||||
31.2 | Certification of Chief Financial Officer pursuant to Section 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a) | X | ||||||||
32.1 | 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 | X | ||||||||
101 | The following financial information from the DLH Holdings Corp. Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 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; and, (iv) the Notes to the Consolidated Financial Statements. | X |
DLH HOLDINGS CORP. | |||
By: | /s/ Zachary C. Parker | ||
Zachary C. Parker | |||
Chief Executive Officer | |||
(Principal Executive Officer) | |||
By: | /s/ Kathryn M. JohnBull | ||
Kathryn M. JohnBull | |||
Chief Financial Officer | |||
(Principal Accounting Officer) | |||
Dated: February 9, 2016 |
/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 - shares |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jan. 31, 2016 |
|
Document and Entity Information | ||
Entity Registrant Name | DLH Holdings Corp. | |
Entity Central Index Key | 0000785557 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,716,929 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | ||
Revenue | $ 16,559 | $ 15,682 |
Direct expenses | 13,642 | 13,149 |
Gross margin | 2,917 | 2,533 |
General and administrative expenses | 2,515 | 2,251 |
Depreciation and amortization including financing costs | 20 | 23 |
Income from operations | 382 | 259 |
Total other income (expense), net | (575) | (36) |
Income (loss) before income taxes | (193) | 223 |
Income tax (benefit) expense | 77 | (89) |
Net income (loss) | $ (116) | $ 134 |
Earnings Per Share [Abstract] | ||
Net income (loss) per share - basic (dollars per share) | $ (0.01) | $ 0.01 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 9,568 | 9,601 |
Diluted (in shares) | 10,082 | 10,048 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2015 |
Sep. 30, 2015 |
---|---|---|
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 | 9,717,000 | 9,551,000 |
Common stock, outstanding shares | 9,717,000 | 9,551,000 |
Treasury stock, shares | 0 | 2,000 |
Basis of Presentation |
3 Months Ended |
---|---|
Dec. 31, 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 for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the quarter ended December 31, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2015 filed on December 16, 2015. |
Business Overview |
3 Months Ended |
---|---|
Dec. 31, 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 healthcare and support personnel, technicians, logisticians, and engineers 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 December 31, 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 97% of revenue for the three months ended December 31, 2015 and 2014, respectively. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of December 31, 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 December 31, 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 |
3 Months Ended |
---|---|
Dec. 31, 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. In November 2015, Financial Accounting Standards Board (FASB) issued guidance to simplify the presentation of deferred income taxes, and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. Current guidance requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is evaluating the timing and method of applying this update. |
Supporting Financial Information Supporting Financial Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supporting Financial Information | Supporting Financial Information Accounts Receivable
Ref (a): 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 December 31, 2015 and September 30, 2015. Other Current Assets
Accrued Payroll
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): Incentive compensation related to fiscal year ended September 30, 2015 was paid in December 2015. Other Expense, net
Ref (a): Current quarter other expense includes approximately $(0.6) million non-operational expenses related to potential business acquisition activities. |
Liquidity |
3 Months Ended |
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Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Liquidity | Liquidity At December 31, 2015, the Company had cash and cash equivalents of approximately $6.0 million, net working capital of approximately $4.7 million. 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 accounts receivable portion of the loan was 4.0% at December 31, 2015, and December 31, 2014. The interest rate on the unbilled accounts portion was 4.0% at December 31, 2015, and December 31, 2014. At December 31, 2015, our loan availability was approximately $2.6 million, comprised of a $1.4 million letter of credit reserve and $1.2 million of unused loan capacity. Management believes, at present, that: (a) cash and cash equivalents of approximately $6.0 million as of December 31, 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 |
3 Months Ended |
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Dec. 31, 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, 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 could 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 that work performed, the Company has concluded that no impairment loss was warranted at September 30, 2015. For the three months ended December 31, 2015, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. 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 could 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 December 31, 2015 or 2014. We report interest and penalties as a component of income tax expense. In fiscal quarters ended December 31, 2015 and 2014, we recognized no interest and no penalties related to income taxes. The Company has adequate net operating loss carryforwards to substantially offset any taxable income in the current period. There are current taxes payable of $37 thousand, related to Federal alternative minimum tax and to state taxes in jurisdictions for which no net operating loss carryforwards are available. The Company has deferred tax assets before valuation allowance of $12.2 million and $12.1 million at December 31, 2015 and September 30, 2015, respectively. The Company recorded a valuation allowance against its net deferred tax assets of $1.8 million and $1.8 million at December 31, 2015, and September 30, 2015, 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 |
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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 December 31, 2015, approximately 0.8 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. Exercisability of 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 income:
Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares granted in first quarter 2016 vested immediately, and stock expense of approximately $304 thousand was recognized accordingly. For the three months ended December 31, 2015, non-employee directors stock expense includes approximately $20 thousand related to prior year equity grants for which performance criteria was achieved in October 2015. 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. 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 three months ended December 31, 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): Shares exercised by an executive officer in December 2015. Stock options shares outstanding, vested and unvested for the period ended
Ref (a): Certain awards vest upon satisfaction of certain performance criteria. |
Fair Value of Financial Instruments Fair Value of Financial Instruments |
3 Months Ended |
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Dec. 31, 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 December 31, 2015 and September 30, 2015 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets. |
Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) 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.
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Commitment and Contingencies |
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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” which occurred 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 periods ended December 31, 2015 and September 30, 2015 was approximately $0.9 million. 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. |
Subsequent Events |
3 Months Ended |
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Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events: As of January 6, 2016, approximately 547,000 additional stock options became vested and exercisable based upon satisfaction of certain performance criteria. 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 other subsequent events have occurred which require disclosure through the date that these financial statements were issued. |
Significant Accounting Policies (Policies) |
3 Months Ended |
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Dec. 31, 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, 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 could 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 that work performed, the Company has concluded that no impairment loss was warranted at September 30, 2015. For the three months ended December 31, 2015, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. 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 could 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) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable |
Ref (a): 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 December 31, 2015 and September 30, 2015. |
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Schedule of Other Current Assets |
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Schedule of Accrued Payroll |
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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. |
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Accounts Payable, Accrued Expenses, and Other Current Liabilities | Accounts Payable, Accrued Expenses, and Other Current Liabilities
Ref (a): Incentive compensation related to fiscal year ended September 30, 2015 was paid in December 2015. |
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Other Income (Expense) | Other Expense, net
Ref (a): Current quarter other expense includes approximately $(0.6) million non-operational expenses related to potential business acquisition activities. |
Stock-based Compensation, Equity Grants, and Warrants (Tables) |
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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 income:
Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares granted in first quarter 2016 vested immediately, and stock expense of approximately $304 thousand was recognized accordingly. For the three months ended December 31, 2015, non-employee directors stock expense includes approximately $20 thousand related to prior year equity grants for which performance criteria was achieved in October 2015. 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. 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. |
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Stock Option Activity |
Ref (a): Shares exercised by an executive officer in December 2015. |
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Stock Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the period ended
Ref (a): Certain awards vest upon satisfaction of certain performance criteria. |
Earnings (Loss) Per Share (Tables) |
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Diluted earnings per share | Diluted earnings per share is calculated using the treasury stock method.
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Commitment and Contingencies (Tables) |
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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” which occurred 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. |
Business Overview (Details) |
3 Months Ended | |
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Dec. 31, 2015
employee
business_area
location
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Dec. 31, 2014 |
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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 | |
Document Period End Date | Dec. 31, 2015 | |
US Government [Member] | Revenue concentration | Customer concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (percent) | 100.00% | |
DVA | Minimum | ||
Concentration Risk [Line Items] | ||
Term of government contract | 1 year | |
DVA | Maximum | ||
Concentration Risk [Line Items] | ||
Term of government contract | 3 years | |
DVA | Revenue concentration | Customer concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (percent) | 95.00% | 97.00% |
Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 3,373 | $ 3,286 |
Less: Allowance for doubtful accounts | 0 | 0 |
Accounts Receivable, Net | 3,373 | 3,286 |
Billed Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 2,336 | 2,498 |
Unbilled Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 1,037 | $ 788 |
Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid insurance expense | $ 97 | $ 156 |
Prepaid Holiday Benefits | 211 | 0 |
Other prepaid expenses | 144 | 273 |
Other current assets | $ 452 | $ 429 |
Supporting Financial Information - Accrued Payroll (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll related to billed receivables | $ 1,664 | $ 2,259 |
Accrued payroll related to unbilled accounts receivable | 722 | 536 |
Accrued payroll | $ 2,386 | $ 2,795 |
Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2015 |
Sep. 30, 2015 |
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Property, Plant and Equipment [Line Items] | ||
Furniture and equipment | $ 197 | $ 197 |
Computer equipment | 182 | 162 |
Computer software | 297 | 297 |
Leasehold improvements | 63 | 63 |
Property, Plant and Equipment, Gross | 739 | 719 |
Less accumulated depreciation and amortization | (403) | (383) |
Equipment and improvements, net | $ 336 | $ 336 |
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 |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 950 | $ 87 |
Accrued benefits | 966 | 267 |
Accrued bonus and incentive compensation | 164 | 858 |
Accrued workers compensation insurance | 930 | 945 |
Other accrued expenses | 658 | 694 |
Total accrued expenses and other current liabilities | $ 3,668 | $ 2,851 |
Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2015 |
Dec. 31, 2014 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest expense, net | $ 0 | $ (36) |
Other expense, net | (575) | 0 |
Other income (expense) net | (575) | $ (36) |
Potential business acquisition expense | $ (600) |
Liquidity (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
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Line of Credit Facility [Line Items] | ||||
Cash and cash equivalents | $ 5,995 | $ 5,558 | $ 3,758 | $ 3,908 |
Net working capital | 4,700 | |||
Amount of unused availability under the line | 2,600 | |||
Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum availability | 6,000 | |||
Amount of unused availability under the line | 1,200 | |||
Unbilled receivables | ||||
Line of Credit Facility [Line Items] | ||||
Maximum availability | $ 1,000 | |||
Interest rate (percent) | 4.00% | 4.00% | ||
Accounts receivables | ||||
Line of Credit Facility [Line Items] | ||||
Maximum availability | $ 3,000 | |||
Interest rate (percent) | 4.00% | |||
Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount of unused availability under the line | $ 1,400 |
Significant Accounting Policies - Goodwill And Income Taxes (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
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Accounting Policies [Abstract] | ||
Goodwill | $ 8,595 | $ 8,595 |
Current taxes payable | 37 | |
Deferred tax assets | 12,200 | 12,100 |
Valuation allowance against net deferred tax assets | $ 1,800 | $ 1,800 |
Stock-based Compensation, Equity Grants, and Warrants - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions |
3 Months Ended | |
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Dec. 31, 2015 |
Dec. 31, 2014 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based expense | $ 112 | $ 374 |
2006 Long Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 0.8 | |
Expiration term of options | 10 years | |
2006 Long Term Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based expense | $ 304 | |
Prior Long Term Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based expense | $ 20 |
Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Optionds vested and exercisable | 993 | 968 | |
Unvested | 1,231 | 1,368 | |
Option outstanding | 2,224 | 2,324 | 2,336 |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
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Numerator: | ||
Net (loss) income | $ (116) | $ 134 |
Denominator: | ||
Denominator for basic net income per share - weighted-average outstanding shares | 9,568 | 9,601 |
Effect of dilutive securities: | ||
Stock options and restricted stock | 514 | 447 |
Denominator for diluted net income per share - weighted-average outstanding shares | 10,082 | 10,048 |
Net income (loss) per share - basic (dollars per share) | $ (0.01) | $ 0.01 |
Net income (loss) per share - diluted (dollars per share) | $ (0.01) | $ 0.01 |
Commitment and Contingencies - Contractual Obligations (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
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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 | 208 |
Operating Leases, 1-3 Years | 529 |
Operating Leases, 4-5 Years | 553 |
Operating Leases,More than 5 Years | 985 |
Total | 2,275 |
Less than 1 Year | 208 |
Total Obligations, 1-3 Years | 529 |
Total Obligations, 4-5 Years | 553 |
Total Obligations, More than 5 Years | 985 |
Total | $ 2,275 |
Commitment and Contingencies (Details) |
Dec. 31, 2024
USD ($)
|
Apr. 27, 2015
USD ($)
ft²
loan_extension
|
Dec. 31, 2015
USD ($)
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Sep. 30, 2015
USD ($)
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Rentable floor area | ft² | 12,275 | |||
Operating leases, term of contract | 8 years 8 months 12 days | |||
Rent expense per month | $ 20,970 | |||
Excused rent expense | $ 120,000 | |||
Term of excused rent | 8 months | |||
Unoccupied real estate | ft² | 4,000 | |||
Initial term of contract | 2 years | |||
Number of extensions | loan_extension | 1 | |||
Renewal term | 5 years | |||
Accrued workers compensation insurance | $ 930,000 | $ 945,000 | ||
Forecast | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Rent expense per month | $ 25,552 |
Subsequent Events (Details) - shares |
Jan. 06, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Subsequent Event [Line Items] | |||
Optionds vested and exercisable | 993,000 | 968,000 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Optionds vested and exercisable | 547,000 |
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