Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 30, 2017 | Mar. 31, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | DLH Holdings Corp. | ||
Entity Central Index Key | 785,557 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 11,882,494 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Public Float | $ 29,835,551 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 115,662 | $ 85,602 |
Direct expenses | 89,812 | 67,776 |
Gross margin | 25,850 | 17,826 |
General and administrative expenses | 17,466 | 12,518 |
Depreciation and amortization | 1,754 | 1,244 |
Income from operations | 6,630 | 4,064 |
Interest expense | (1,228) | (823) |
Acquisition cost | 0 | (795) |
Income before income taxes | 5,402 | 2,446 |
Income tax expense (benefit), net | 2,114 | (938) |
Net income | $ 3,288 | $ 3,384 |
Earnings Per Share [Abstract] | ||
Net income (loss) per share - basic (in dollars per share) | $ 0.29 | $ 0.34 |
Net income (loss) per share - diluted (in dollars per share) | $ 0.27 | $ 0.30 |
Weighted average common shares outstanding | ||
Basic (in shares) | 11,345 | 9,966 |
Diluted (in shares) | 12,352 | 11,220 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 4,930 | $ 3,427 | $ 5,558 |
Accounts receivable | 11,911 | 6,637 | |
Other current assets | 598 | 542 | |
Total current assets | 17,439 | 10,606 | |
Equipment and improvements, net | 1,391 | 644 | |
Deferred taxes, net | 9,639 | 11,415 | |
Goodwill and other intangible assets, net | 41,116 | 42,304 | |
Other long-term assets | 139 | 105 | |
Total assets | 69,724 | 65,074 | |
CURRENT LIABILITIES | |||
Debt obligations - current | 3,601 | 3,560 | |
Derivative financial instruments, at fair value | 306 | 204 | |
Accrued payroll | 3,723 | 3,616 | |
Accounts payable, accrued expenses, and other current liabilities | 10,895 | 7,136 | |
Total current liabilities | 18,525 | 14,516 | |
LONG TERM LIABILITIES | |||
Other long term liability | 15,344 | 18,782 | |
Total liabilities | 33,869 | 33,298 | |
Commitments and contingencies | |||
SHAREHOLDERS’ EQUITY | |||
Common stock, $.001 par value; authorized 40,008 shares; issued and outstanding 11,767 at September 30, 2017 and 11,148 at September 30, 2016 | 12 | 11 | |
Additional paid-in capital | 82,687 | 81,897 | |
Accumulated deficit | (46,844) | (50,132) | |
Total shareholders’ equity | 35,855 | 31,776 | $ 22,869 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 69,724 | $ 65,074 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 40,008 | 40,008 |
Common stock, issued shares | 11,767 | 11,148 |
Common stock, outstanding shares | 11,767 | 11,148 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income | $ 3,288 | $ 3,384 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,724 | 1,244 |
Amortization of debt financing costs as interest expense | 268 | 289 |
Change in fair value of derivative financial instruments | 102 | 27 |
Stock based compensation expense | 662 | 465 |
Loss on retirement of equipment | 31 | 3 |
Deferred taxes, net | 1,776 | (1,108) |
Changes in operating assets and liabilities | ||
Accounts receivable | (5,274) | (3,351) |
Other current assets | (56) | (113) |
Accounts payable, accrued payroll, accrued expenses and other current liabilities | 3,945 | 5,106 |
Other long term assets/liabilities | 58 | 94 |
Net cash provided by operating activities | 6,524 | 6,040 |
Investing activities | ||
Acquisition net of cash acquired | (250) | (32,241) |
Purchase of equipment and improvements | (1,064) | (498) |
Net cash used in investing activities | (1,314) | (32,739) |
Financing activities | ||
Net (repayments) borrowings on senior debt | (3,750) | 23,437 |
Repayments of capital lease obligations | (86) | (94) |
Payment of deferred financing costs | 0 | (1,333) |
Proceeds from issuance of stock | 0 | 2,521 |
Proceeds from stock option exercise | 129 | 37 |
Net cash provided by (used in) financing activities | (3,707) | 24,568 |
Net change in cash and cash equivalents | 1,503 | (2,131) |
Cash and cash equivalents at beginning of period | 3,427 | 5,558 |
Cash and cash equivalents at end of period | 4,930 | 3,427 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest | 883 | 454 |
Cash paid during the period for income taxes | 337 | 124 |
Non-cash equity consideration for acquisition | $ 0 | $ 2,500 |
Warrants issued in connection with subordinated debt | 0 | 177 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning Balance (shares) at Sep. 30, 2015 | 9,551 | |||
Beginning Balance at Sep. 30, 2015 | $ 22,869 | $ 10 | $ 76,375 | $ (53,516) |
Director restricted stock grants (shares) | 117 | |||
Directors stock grants | 376 | 376 | ||
Expense related to employee stock | 90 | 90 | ||
Issuance of stock for acquisition (shares) | 670 | |||
Issuance of stock for acquisition | 2,500 | $ 1 | 2,499 | |
Exercise of stock options (shares) | 89 | |||
Exercise of stock options | 37 | 37 | ||
Exercise of warrants (shares) | 11 | |||
Exercise of stock warrants | 0 | |||
Rights offering net of expense offsets (shares) | 710 | |||
Rights offering net of expense offsets | 2,520 | 2,520 | ||
Net income | $ 3,384 | 3,384 | ||
Ending Balance (shares) at Sep. 30, 2016 | 11,148 | 11,148 | ||
Ending Balance at Sep. 30, 2016 | $ 31,776 | $ 11 | 81,897 | (50,132) |
Director restricted stock grants (shares) | 103 | |||
Directors stock grants | 521 | 521 | ||
Expense related to employee stock | 141 | 141 | ||
Exercise of stock options (shares) | 516 | |||
Exercise of stock options | 129 | $ 1 | 128 | |
Net income | $ 3,288 | 3,288 | ||
Ending Balance (shares) at Sep. 30, 2017 | 11,767 | 11,767 | ||
Ending Balance at Sep. 30, 2017 | $ 35,855 | $ 12 | $ 82,687 | $ (46,844) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Sep. 30, 2017 | |
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, Regulation S-X, and Regulation S-K. |
Business Overview
Business Overview | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview DLH is a full-service provider of professional healthcare and social services to government agencies including the Department of Veteran Affairs ("VA"), Department of Health and Human Services ("HHS"), Department of Defense ("DoD"), and other government agencies. 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. We employ over 1,400 skilled employees working in more than 30 locations throughout the United States. Presently, the Company derives 100% of its revenue from agencies of the Federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors. A major customer is defined as a customer from whom the Company derives at least 10% of its revenues. Our largest customer continues to be the VA, which comprised approximately 62% and 72% of revenue for the twelve months ended September 30, 2017 and 2016 , respectively. Additionally, HHS represents a major customer, comprising 34% and 13% of revenue for the twelve months ended September 30, 2017 and 2016 , respectively. Substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of September 30, 2017 and 2016 . We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. See Note 4, Supporting Financial Information-Accounts Receivable. As of September 30, 2017 , awards from VA and HHS 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 VA and HHS under its current contracts, we believe that our strong working relationships 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 relationship with VA or HHS. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued amended guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of 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, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is effective for annual periods (including interim periods therein) beginning after December 15, 2017. The guidance allows either a full retrospective or modified retrospective transition method. The Company is evaluating the effects of this guidance. In June 2014, the FASB issued guidance related to accounting for share-based payments for certain performance stock awards. In March 2016, the FASB issued updated guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The amendments in this update affect all entities that issue share-based payment awards to their employees. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this guidance and concluded that it will not significantly affect the Company. In September 2015, the 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. Refer to Note 4 for the impact of the adoption of this guidance. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 10, the Company currently has approximately $3.7 million of lease obligations that would be evaluated as the implementation of this guidance becomes effective. In January 2017, the FASB issued new accounting guidance related to goodwill. This update provides simplified testing for goodwill impairment which allows a comparison of the fair value of the reporting unit to its carrying amount, removing the prior requirement of determining fair value of all individual assets and liabilities of the reporting unit. This update is effective for the Company as of its fiscal year beginning October 1, 2020, with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company adopted this guidance for its annual goodwill impairment tests performed for the fiscal year ended September 30, 2017. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company is evaluating this guidance. |
Supporting Financial Informatio
Supporting Financial Information | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supporting Financial Information | Supporting Financial Information Accounts receivable (in thousands) September 30, September 30, Ref 2017 2016 Billed receivables $ 11,862 $ 5,265 Unbilled receivables 49 1,372 Total accounts receivable 11,911 6,637 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 11,911 $ 6,637 Ref (a): Accounts receivable are non-interest bearing, unsecured and 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, 2017 and September 30, 2016 . Our allowance for doubtful accounts is assessed based on Company policy of specific identification for aged items. The Company generally does not have delinquent receivables due to the nature of its business. Other current assets (in thousands) September 30, September 30, Ref 2017 2016 Prepaid insurance and benefits $ 240 $ 168 Other receivables and prepaid expenses 358 374 Other current assets $ 598 $ 542 Equipment and improvements, net (in thousands) September 30, September 30, Ref 2017 2016 Furniture and equipment $ 331 $ 638 Computer equipment 715 202 Computer software (a) 1,108 309 Leasehold improvements 66 38 Total fixed assets 2,220 1,187 Less accumulated depreciation and amortization (829 ) (543 ) Equipment and improvements, net (b) $ 1,391 $ 644 Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning (ERP) system. Capitalized costs include $741 thousand of software licenses and implementation labor related to application development. Since the asset has not been placed in service, no depreciation related to the asset has been recognized. Prior to the asset being placed in service a useful life will be determined. Ref (b): 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 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $287 thousand and $188 thousand for the years ended September 30, 2017 and September 30, 2016 respectively. Goodwill and Intangibles (in thousands) Ref Goodwill Customer Relationships Non Compete Trade Name Total Gross Balance as of September 30, 2016 $ 34,745 $ 7,247 $ 1,370 $ — 43,362 Measurement period adjustment (8,756 ) 9,379 (890 ) 517 250 Adjusted Gross Balance at September 30, 2017 $ 25,989 $ 16,626 $ 480 $ 517 43,612 (in thousands) Ref. Goodwill Customer Relationships (a) Non Compete Agreement (a) Trade Name (a) Total Accumulated amortization at September 30, 2016 $ — $ (993 ) $ (65 ) $ — $ (1,058 ) Prior period amortization adjustment — 300 45 (21 ) 324 Current period amortization — (1,662 ) (48 ) (52 ) (1,762 ) Total accumulated amortization — (2,355 ) (68 ) (73 ) (2,496 ) Net balance at September 30, 2017 $ 25,989 $ 14,271 $ 412 $ 444 $ 41,116 The financial statements at September 30, 2016 reflected a preliminary estimate of purchase accounting, its allocation to acquired intangibles and resulting amortization. As of December 31, 2016 the Company completed its valuation of the May 2016 transaction and finalized the adjustments to the estimated values recognized at September 30, 2016. Therefore the Company recognized a net increase to the fair value of intangibles in the amount of $9.0 million with a corresponding decrease to goodwill. Additionally, the change to the estimated amounts resulted in a decrease in amortization of $0.3 million in the current period. Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense for the year ended September 30, 2017 was $1.4 million . Estimated amortization expense for future years: (in thousands) Year 1 $ 1,762 Year 2 1,762 Year 3 1,762 Year 4 1,762 Year 5 1,762 Thereafter 6,317 $ 15,127 Accounts payable, accrued expenses and other current liabilities (in thousands) September 30, September 30, 2017 2016 Accounts payable $ 5,205 $ 4,324 Accrued benefits 1,831 1,197 Accrued bonus and incentive compensation 1,544 508 Accrued workers compensation insurance 1,598 981 Other accrued expenses 717 126 Accounts payable, accrued expenses, and other current liabilities $ 10,895 $ 7,136 Debt obligations (in thousands) September 30, September 30, Ref 2017 2016 Bank term loan (a) $ 19,688 $ 23,438 Less unamortized debt issuance costs (961 ) (1,222 ) Net bank debt obligation 18,727 22,216 Less current portion of bank debt obligations (3,601 ) (3,560 ) Long term portion of bank debt obligation $ 15,126 $ 18,656 Ref (a): Maturity of the bank debt obligation as follows, in thousands: Year 1 $ 3,750 Year 2 3,750 Year 3 3,750 Year 4 8,438 Total bank debt obligation $ 19,688 Interest expense (in thousands) Twelve Months Ended September 30, Ref 2017 2016 Interest expense (a) $ (883 ) $ (454 ) Amortization of deferred financing costs as interest expense (b) (268 ) (289 ) Change in fair value of derivative financial instruments (102 ) (27 ) Other income (expense), net 25 (53 ) Interest expense, net $ (1,228 ) $ (823 ) Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing |
Cash and Credit Facilities
Cash and Credit Facilities | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Credit Facilities | Cash and Credit Facilities A summary of our loan facilities and subordinated debt financing for the period ended September 30, 2017 is as follows: ($ in Millions) As of September 30, 2017 Lender Arrangement Loan Balance Interest Maturity Date Fifth Third Bank Secured term loan $25 million ceiling (a) $ 19.7 LIBOR* + 3.0% 05/01/21 Fifth Third Bank Secured revolving line of credit $10 million ceiling (b) $ — LIBOR* + 3.0% 05/01/18 * LIBOR rate as of September 30, 2017 was 1.24% (a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021. The Term Loan agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.25 to 1.0 for the period through September 30, 2017 to 2.5 to 1.0 for the period ending September 30, 2018 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, including acquisition expenses, net, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) G&A expenses - equity grants. In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires prepayments of a percentage of excess cash flow, as defined in the loan agreement. Accordingly, a portion of our cash flow from operations will be dedicated to the repayment of our indebtedness. DLH is fully compliant with all covenants under the Loan Agreement with Fifth Third Bank. (b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million . Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. The Company's total remaining borrowing availability, based on eligible accounts receivables at September 30, 2017 , was $9.9 million . This capacity was comprised of $0.6 million in a stand-by letter of credit and unused borrowing capacity of $9.3 million . The revolving line of credit is subject to loan covenants as described above in the Term Loan, and DLH is fully compliant with those covenants. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
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 and intangible assets, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and fair value of derivatives. 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. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. Our company's current business base is 95% prime contracts and 5% subcontracts. DLH recognizes and records revenue on government contracts 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. Business Combinations In accordance with Accounting Standards Codifications 805, "Business Combinations" ("ASC 805") the Company records acquisitions under the purchase method of accounting, under which the acquisition purchase price is allocated to the assets acquired and the liabilities assumed based upon the respective fair values. The Company utilizes some estimates and in some instances, may retain the services of an independent third-party valuation firm to assist in determining the fair values of assets acquired, liabilities, assumed, and contingent considerations granted. Such estimates and valuation require the Company to make significant assumptions. These assumptions may include projections of future events and operating performance. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled revenues, accrued expenses, accrued earn outs payable, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. Goodwill and other intangible assets We have used the acquisition method of accounting for the May 2016 transaction, whereby the assets acquired and liabilities assumed are recognized based upon their estimated fair values at the acquisition date. The financial statements at September 30, 2016 reflected a preliminary estimate of purchase accounting, its allocation to acquired intangibles and resulting amortization. As of December 31, 2016 the Company completed its valuation and finalized the adjustments to the estimated values recognized at September 30, 2016. Therefore the Company recognized a net increase to the fair value of intangibles in the amount of $9.0 million with a corresponding decrease to goodwill. Additionally, the change to the estimated amounts resulted in a decrease in amortization of $0.3 million in the current period. DLH continues to review its goodwill and other intangible assets 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, 2017 we performed a goodwill impairment evaluation on the year-end carrying value of approximately million $26 million . We performed a qualitative 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, 2017 . For the twelve months ended September 30, 2017 , the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Notwithstanding this evaluation, 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. Long Lived Assets 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 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Certain costs incurred in the implementation of our Enterprise Resource Planning (ERP) system, including implementation labor, are capitalized as computer software costs. Costs incurred outside of the implementation stage are expensed as incurred. No amortization expense is recorded until the software is placed in service, after which the costs will be amortized on a straight-line basis over the estimated useful life of the software. Intangible assets are estimated at a fair value and amortized on a straight-line basis over their assessed useful lives. The assessed useful lives of the assets are 10 years . 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 be sustained upon examination. We had no uncertain tax positions at either September 30, 2017 and 2016 . We report interest and penalties as a component of income tax expense. In the fiscal quarters ended September 30, 2017 and 2016 , we recognized no interest and no penalties related to income taxes. Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued 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 common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. 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. Earnings per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income 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. |
Stock-based Compensation and Eq
Stock-based Compensation and Equity Grants | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation and Equity Grants | Stock-based compensation and equity grants Stock-based compensation expense Options issued under equity incentive plans were designated as either an incentive stock or a non-statutory stock option. No option was 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. As of September 30, 2017 , there were 0.5 million shares available for grant under the Company's 2016 Omnibus Equity Incentive Plan. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations: (in thousands) Year Ended Ref September 30, 2017 2016 DLH employees $ 166 $ 90 Non-employee directors (a) 496 376 Total stock option expense $ 662 $ 466 Ref (a): Equity grants, in accordance with DLH compensation policy for non-employee directors. Unrecognized stock-based compensation expense (in thousands) Period Ended September 30, Ref 2017 2016 Unrecognized expense for DLH employees (a) $ 299 $ 18 Unrecognized expense for non-employee directors (b) — 24 Total unrecognized expense $ 299 $ 42 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 within the next 27 months. 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. Stock option activity for the year ended September 30, 2017 : 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. (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 6.8 $ 3,649 Granted (a) 25 $2.80 Canceled (123 ) $1.40 Options outstanding, September 30 , 2016 2,226 $1.40 5.8 $ 7,581 Granted (a) 400 $5.94 Exercised (632 ) $1.28 Options outstanding, September 30, 2017 1,994 $3.83 6.4 $ 8,489 Ref (a): Option grants to DLH employees in the fiscal year ended September 30, 2017 were valued using a binomial model, under the following criteria: September 30, 2017 2016 Risk free interest rate 2.46 % 1.01 % Contractual term 10 years 10 years Dividend yield — % — % Expected lives 10 years 10 years Expected volatility 144 % 106 % Fair value per option $0.93 - $1.47 $2.55 Stock options shares outstanding, vested and unvested for the period ended: (in thousands) Number of Shares September 30, Ref 2017 2016 Vested and exercisable (a) 1,327 1,909 Unvested (b) 667 317 Options outstanding 1,994 2,226 Ref (a): Weighted average exercise price of vested and exercisable shares was $1.45 and $1.48 at September 30, 2017 and 2016 , respectively. Aggregate intrinsic value was $6.8 million and $6.4 million at September 30, 2017 and 2016 , respectively. Weighted average contractual term remaining was 5.0 years and 6.0 years at September 30, 2017 and 2016 , respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In partial consideration for the subordinated debt provided by Wynnefield Capital (referred to in Note 5), we issued warrants to purchase 53,619 shares of common stock. As of September 30, 2017 , the warrants are outstanding and their fair value was determined to be $306 thousand . The fair value is estimated using the binomial pricing model. The fair value is subjective and is affected by the changes in inputs to the valuation model including the fair value per share of the underlying stock, the expected term of each warrant, volatility of the Company's stock, and risk free rate based on the U.S. Treasury yield curves. Key assumptions used in the valuation of the warrants at issuance include the following: Risk free interest rate 1.63 % Contractual term 5 years Dividend yield — % Expected lives 5 years Expected volatility 147 % Fair value per warrant $5.71 The Company recorded a change on the revaluation of the warrant liability of $102 thousand for the year ended September 30, 2017 . The change is recorded and classified in other income (expense) in the accompanying consolidated financial statement of operations. Given the provisions that may reduce the exercise price of these warrants in the event that other convertible securities or options have a lower price, these warrants are classified as a liability. The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three level hierarchy. These levels are: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Observable inputs are based on market data obtained from independent sources. Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company has issued warrants to purchase stock as described above. The liability is classified as a Level 3 expense for all periods. Change in Level 3 liabilities for the year ended September 30, 2017 : Beginning Balance Realized/Unrealized Purchases and Ending Balance Change in Unrealized (gains) losses for liabilities held at October 1, 2016 (Gains) Losses Settlements September 30, 2017 September 30, 2017 Warrant issued to acquire common stock $ 204 $ 102 $ — $ 306 $ 102 The Company has other 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, 2017 and September 30, 2016 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings 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 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. (in thousands) Year Ended September 30, 2017 2016 Numerator: Net income $ 3,288 $ 3,384 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 11,345 9,966 Effect of dilutive securities: Stock options and restricted stock 1,007 1,254 Denominator for diluted net income per share - weighted-average outstanding shares 12,352 11,220 Net income per share-basic (a) $ 0.29 $ 0.34 Net income per share-diluted (a) $ 0.27 $ 0.30 Ref (a): For fiscal year ended September 30, 2016 , we realized a $0.9 million tax benefit, net, 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 increase of net income per share basic and diluted of $0.09 and $0.08 , respectively, for the prior year period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations as of September 30, 2017 : Payments Due By Period Contractual obligations Next 12 2-3 4-5 More than 5 (Amounts in thousands) Ref Total Months Years Years Years Debt obligations $ 19,688 $ 3,750 $ 7,500 $ 8,438 $ — Facility leases $ 3,693 $ 929 $ 1,567 $ 652 $ 545 Equipment operating leases 77 38 39 — — Total Contractual Obligations $ 23,458 $ 4,717 $ 9,106 $ 9,090 $ 545 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 September 30, 2017 and September 30, 2016 was $1.6 million and $1.0 million , respectively. Legal Proceedings As a commercial enterprise and employer, the Company is subject to various claims and legal actions in the ordinary course of business. These matters can include professional liability, employment-relations issues, workers’ compensation, tax, payroll and employee-related matters, other commercial disputes arising in the course of its business, and inquiries and investigations by governmental agencies regarding our employment practices or other matters. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has determined that for the period ended September 30, 2017 and through the filing date of this report, there were no significant related party transactions that have occurred which require disclosure through the date that these financial statements were issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
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 $0.9 million benefit for income tax, net, for fiscal year ended September 30, 2016 . The benefit related principally to the release of our valuation allowance, to reflect the amount of our deferred tax asset that we expect to realize in future years. That release was based upon our estimate of future taxable earnings based on results generated. To project taxable income in the future periods, 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 and that amortization of intangibles would continue through their respective lives. Using the taxable income projections, we calculated the amount of net operating loss (NOL) utilization that would be achieved within each loss year’s carryforward period. Our estimate of future taxable income is revised at least annually or more frequently upon the occurrence of an event which warrants a new estimate. At September 30, 2017 the Company had net operating losses of approximately $31.5 million and $1.8 million for U.S. and state tax return purposes, respectively. The NOLs begin to expire in 2021 and continue to expire through 2033. An analysis of DLH's deferred tax asset and liability is as follows: Year Ended September 30, (amounts in thousands) 2017 2016 Deferred income tax asset (liability): Net operating loss carry forwards and tax credits $ 10,786 $ 12,387 AMT credit carryforward 316 231 Stock based compensation 236 172 Fixed and intangible assets (3,243 ) (2,580 ) Accrued expenses 1,303 918 Other items, net 241 287 Net deferred tax asset $ 9,639 $ 11,415 The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows: Year Ended September 30, (amounts in thousands) 2017 2016 Current expense (benefit) $ 338 $ 170 Deferred expense (benefit) 1,776 (1,108 ) Total expense (benefit) 2,114 (938 ) The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations: Year Ended September 30, (amounts in thousands) 2017 2016 Federal statutory rate $ 1,837 $ 831 State taxes, net 260 71 Other permanent items 17 (86 ) Change in valuation allowance — (1,754 ) $ 2,114 $ (938 ) We file income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. We are no longer subject to income tax examinations for years before 2014. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
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) 2017 Quarters First Second Third Fourth Revenue $ 26,111 $ 29,905 $ 29,256 $ 30,390 Gross margin 5,811 6,401 6,385 7,253 Income from operations 889 1,839 1,753 2,149 Other income (expense), net (364 ) (255 ) (269 ) (340 ) Income before income taxes 525 $ 1,584 1,484 1,809 Income tax expense(benefit) 201 $ 605 539 769 Net income $ 324 $ 979 $ 945 $ 1,040 Earnings (loss) per share: Basic $ 0.03 $ 0.09 $ 0.08 $ 0.09 Diluted $ 0.03 $ 0.08 $ 0.08 $ 0.08 2016 Quarters First Second Third (1) Fourth Revenue $ 16,559 $ 16,934 $ 24,989 $ 27,120 Gross margin 2,917 3,224 5,456 6,229 Income from operations 382 689 1,668 1,325 Other expense (575 ) (127 ) (374 ) (542 ) Income (loss) before income taxes (193 ) 562 1,294 783 Income tax expense(benefit) (2) (77 ) 225 518 (1,604 ) Net income (loss) $ (116 ) $ 337 $ 776 $ 2,387 Earnings (loss) per share: Basic $ (0.01 ) $ 0.03 $ 0.08 $ 0.23 Diluted $ (0.01 ) $ 0.03 $ 0.07 $ 0.20 _______________________________________________________________________________ (1) Reflects impact of acquisition completed May 2016. (2) Refer to Note 12, Income Taxes, for detailed explanation of the income tax benefit recorded in fourth quarter 2016. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits Plans | Employee Benefit Plans As of September 30, 2017 , 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 a participant's elective contributions under the 401 (k) Plan. DLH recorded related expense of $154.4 thousand in fiscal 2017 and $142.0 thousand in fiscal year 2016 . A participant is always fully vested in his or her elective contributions and vests in Company matching contributions over a four year period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 10, 2017 , an aggregate of 93,125 shares of common stock of the Company were issued to the non-employee members of the Company's Board of Directors, in accordance with DLH's compensation policy for non-employee directors. The shares vested immediately, and stock expense of approximately $563 thousand was recognized accordingly. This transaction will be reflected in the Company's first quarter results for fiscal year 2018 . On November 29-December 1, 2017, the Company granted 217,500 incentive stock options to certain executive and non-executive employees, pursuant to the Company's 2016 Omnibus Equity Incentive Plan. The options will vest and become exercisable upon the satisfaction of certain conditions. Subsequent to our fiscal year end, both branches of Congress passed major federal tax reform legislation. While the exact terms of the legislation will not be finalized until the reconciliation process is completed, the resulting bill may have a material impact to our business. The tax effects resulting from any changes in tax laws or tax rates are not permitted to be recognized until the period that includes the enactment date, which will occur when a bill is signed into law, and subjected to the full legislative process. The Company is closely monitoring the proposed legislation and is prepared to quantify and recognize any potential impact in the period in which the legislation is enacted. 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 further subsequent events have occurred which require disclosure through the date that these financial statements were issued. |
Significant Accounting Polici22
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
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 and intangible assets, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and fair value of derivatives. 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. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. Our company's current business base is 95% prime contracts and 5% subcontracts. DLH recognizes and records revenue on government contracts 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. |
Business Combinations | Business Combinations In accordance with Accounting Standards Codifications 805, "Business Combinations" ("ASC 805") the Company records acquisitions under the purchase method of accounting, under which the acquisition purchase price is allocated to the assets acquired and the liabilities assumed based upon the respective fair values. The Company utilizes some estimates and in some instances, may retain the services of an independent third-party valuation firm to assist in determining the fair values of assets acquired, liabilities, assumed, and contingent considerations granted. Such estimates and valuation require the Company to make significant assumptions. These assumptions may include projections of future events and operating performance. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled revenues, accrued expenses, accrued earn outs payable, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. |
Goodwill and other intangible assets | Goodwill and other intangible assets We have used the acquisition method of accounting for the May 2016 transaction, whereby the assets acquired and liabilities assumed are recognized based upon their estimated fair values at the acquisition date. The financial statements at September 30, 2016 reflected a preliminary estimate of purchase accounting, its allocation to acquired intangibles and resulting amortization. |
Long Lived Assets | Long Lived Assets 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 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Certain costs incurred in the implementation of our Enterprise Resource Planning (ERP) system, including implementation labor, are capitalized as computer software costs. Costs incurred outside of the implementation stage are expensed as incurred. No amortization expense is recorded until the software is placed in service, after which the costs will be amortized on a straight-line basis over the estimated useful life of the software. Intangible assets are estimated at a fair value and amortized on a straight-line basis over their assessed useful lives. The assessed useful lives of the assets are 10 years . |
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 be sustained upon examination. |
Share-based Equity Compensation | Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued 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 common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. |
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. |
Earnings 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 stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income 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. |
Fair Value Measurement | The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three level hierarchy. These levels are: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Observable inputs are based on market data obtained from independent sources. Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
Supporting Financial Informat23
Supporting Financial Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable (in thousands) September 30, September 30, Ref 2017 2016 Billed receivables $ 11,862 $ 5,265 Unbilled receivables 49 1,372 Total accounts receivable 11,911 6,637 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 11,911 $ 6,637 Ref (a): Accounts receivable are non-interest bearing, unsecured and 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, 2017 and September 30, 2016 . Our allowance for doubtful accounts is assessed based on Company policy of specific identification for aged items. The Company generally does not have delinquent receivables due to the nature of its business. |
Schedule of Other Current Assets | Other current assets (in thousands) September 30, September 30, Ref 2017 2016 Prepaid insurance and benefits $ 240 $ 168 Other receivables and prepaid expenses 358 374 Other current assets $ 598 $ 542 |
Schedule of Equipment and Improvements, Net | Equipment and improvements, net (in thousands) September 30, September 30, Ref 2017 2016 Furniture and equipment $ 331 $ 638 Computer equipment 715 202 Computer software (a) 1,108 309 Leasehold improvements 66 38 Total fixed assets 2,220 1,187 Less accumulated depreciation and amortization (829 ) (543 ) Equipment and improvements, net (b) $ 1,391 $ 644 Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning (ERP) system. Capitalized costs include $741 thousand of software licenses and implementation labor related to application development. Since the asset has not been placed in service, no depreciation related to the asset has been recognized. Prior to the asset being placed in service a useful life will be determined. Ref (b): 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 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $287 thousand and $188 thousand for the years ended September 30, 2017 and September 30, 2016 respectively. |
Schedule of Goodwill and Intangibles | Goodwill and Intangibles (in thousands) Ref Goodwill Customer Relationships Non Compete Trade Name Total Gross Balance as of September 30, 2016 $ 34,745 $ 7,247 $ 1,370 $ — 43,362 Measurement period adjustment (8,756 ) 9,379 (890 ) 517 250 Adjusted Gross Balance at September 30, 2017 $ 25,989 $ 16,626 $ 480 $ 517 43,612 (in thousands) Ref. Goodwill Customer Relationships (a) Non Compete Agreement (a) Trade Name (a) Total Accumulated amortization at September 30, 2016 $ — $ (993 ) $ (65 ) $ — $ (1,058 ) Prior period amortization adjustment — 300 45 (21 ) 324 Current period amortization — (1,662 ) (48 ) (52 ) (1,762 ) Total accumulated amortization — (2,355 ) (68 ) (73 ) (2,496 ) Net balance at September 30, 2017 $ 25,989 $ 14,271 $ 412 $ 444 $ 41,116 The financial statements at September 30, 2016 reflected a preliminary estimate of purchase accounting, its allocation to acquired intangibles and resulting amortization. As of December 31, 2016 the Company completed its valuation of the May 2016 transaction and finalized the adjustments to the estimated values recognized at September 30, 2016. Therefore the Company recognized a net increase to the fair value of intangibles in the amount of $9.0 million with a corresponding decrease to goodwill. Additionally, the change to the estimated amounts resulted in a decrease in amortization of $0.3 million in the current period. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for future years: (in thousands) Year 1 $ 1,762 Year 2 1,762 Year 3 1,762 Year 4 1,762 Year 5 1,762 Thereafter 6,317 $ 15,127 |
Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities | Accounts payable, accrued expenses and other current liabilities (in thousands) September 30, September 30, 2017 2016 Accounts payable $ 5,205 $ 4,324 Accrued benefits 1,831 1,197 Accrued bonus and incentive compensation 1,544 508 Accrued workers compensation insurance 1,598 981 Other accrued expenses 717 126 Accounts payable, accrued expenses, and other current liabilities $ 10,895 $ 7,136 |
Schedule of Debt Obligations | Debt obligations (in thousands) September 30, September 30, Ref 2017 2016 Bank term loan (a) $ 19,688 $ 23,438 Less unamortized debt issuance costs (961 ) (1,222 ) Net bank debt obligation 18,727 22,216 Less current portion of bank debt obligations (3,601 ) (3,560 ) Long term portion of bank debt obligation $ 15,126 $ 18,656 Ref (a): Maturity of the bank debt obligation as follows, in thousands: Year 1 $ 3,750 Year 2 3,750 Year 3 3,750 Year 4 8,438 Total bank debt obligation $ 19,688 |
Schedule of Other Expense | Interest expense (in thousands) Twelve Months Ended September 30, Ref 2017 2016 Interest expense (a) $ (883 ) $ (454 ) Amortization of deferred financing costs as interest expense (b) (268 ) (289 ) Change in fair value of derivative financial instruments (102 ) (27 ) Other income (expense), net 25 (53 ) Interest expense, net $ (1,228 ) $ (823 ) Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing |
Cash and Credit Facilities (Tab
Cash and Credit Facilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Loan Facilities and Subordinated Debt Financing | A summary of our loan facilities and subordinated debt financing for the period ended September 30, 2017 is as follows: ($ in Millions) As of September 30, 2017 Lender Arrangement Loan Balance Interest Maturity Date Fifth Third Bank Secured term loan $25 million ceiling (a) $ 19.7 LIBOR* + 3.0% 05/01/21 Fifth Third Bank Secured revolving line of credit $10 million ceiling (b) $ — LIBOR* + 3.0% 05/01/18 * LIBOR rate as of September 30, 2017 was 1.24% (a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021. The Term Loan agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.25 to 1.0 for the period through September 30, 2017 to 2.5 to 1.0 for the period ending September 30, 2018 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, including acquisition expenses, net, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) G&A expenses - equity grants. In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires prepayments of a percentage of excess cash flow, as defined in the loan agreement. Accordingly, a portion of our cash flow from operations will be dedicated to the repayment of our indebtedness. DLH is fully compliant with all covenants under the Loan Agreement with Fifth Third Bank. (b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million . Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. |
Stock-based Compensation and 25
Stock-based Compensation and Equity Grants (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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: (in thousands) Year Ended Ref September 30, 2017 2016 DLH employees $ 166 $ 90 Non-employee directors (a) 496 376 Total stock option expense $ 662 $ 466 Ref (a): Equity grants, in accordance with DLH compensation policy for non-employee directors. Unrecognized stock-based compensation expense (in thousands) Period Ended September 30, Ref 2017 2016 Unrecognized expense for DLH employees (a) $ 299 $ 18 Unrecognized expense for non-employee directors (b) — 24 Total unrecognized expense $ 299 $ 42 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 within the next 27 months. 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. |
Stock Option Activity | This amount will change based on the fair market value of the Company’s stock. (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 6.8 $ 3,649 Granted (a) 25 $2.80 Canceled (123 ) $1.40 Options outstanding, September 30 , 2016 2,226 $1.40 5.8 $ 7,581 Granted (a) 400 $5.94 Exercised (632 ) $1.28 Options outstanding, September 30, 2017 1,994 $3.83 6.4 $ 8,489 Ref (a): Option grants to DLH employees in the fiscal year ended September 30, 2017 were valued using a binomial model, under the following criteria: September 30, 2017 2016 Risk free interest rate 2.46 % 1.01 % Contractual term 10 years 10 years Dividend yield — % — % Expected lives 10 years 10 years Expected volatility 144 % 106 % Fair value per option $0.93 - $1.47 $2.55 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Ref (a): Option grants to DLH employees in the fiscal year ended September 30, 2017 were valued using a binomial model, under the following criteria: September 30, 2017 2016 Risk free interest rate 2.46 % 1.01 % Contractual term 10 years 10 years Dividend yield — % — % Expected lives 10 years 10 years Expected volatility 144 % 106 % Fair value per option $0.93 - $1.47 $2.55 |
Stock Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested and unvested for the period ended: (in thousands) Number of Shares September 30, Ref 2017 2016 Vested and exercisable (a) 1,327 1,909 Unvested (b) 667 317 Options outstanding 1,994 2,226 Ref (a): Weighted average exercise price of vested and exercisable shares was $1.45 and $1.48 at September 30, 2017 and 2016 , respectively. Aggregate intrinsic value was $6.8 million and $6.4 million at September 30, 2017 and 2016 , respectively. Weighted average contractual term remaining was 5.0 years and 6.0 years at September 30, 2017 and 2016 , respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria. |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Key Assumptions Used in Valuation of Warrants | Key assumptions used in the valuation of the warrants at issuance include the following: Risk free interest rate 1.63 % Contractual term 5 years Dividend yield — % Expected lives 5 years Expected volatility 147 % Fair value per warrant $5.71 |
Change in Level 3 Liabilities | Change in Level 3 liabilities for the year ended September 30, 2017 : Beginning Balance Realized/Unrealized Purchases and Ending Balance Change in Unrealized (gains) losses for liabilities held at October 1, 2016 (Gains) Losses Settlements September 30, 2017 September 30, 2017 Warrant issued to acquire common stock $ 204 $ 102 $ — $ 306 $ 102 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Diluted earnings per share | Diluted earnings per share is calculated using the treasury stock method. (in thousands) Year Ended September 30, 2017 2016 Numerator: Net income $ 3,288 $ 3,384 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 11,345 9,966 Effect of dilutive securities: Stock options and restricted stock 1,007 1,254 Denominator for diluted net income per share - weighted-average outstanding shares 12,352 11,220 Net income per share-basic (a) $ 0.29 $ 0.34 Net income per share-diluted (a) $ 0.27 $ 0.30 Ref (a): For fiscal year ended September 30, 2016 , we realized a $0.9 million tax benefit, net, 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 increase of net income per share basic and diluted of $0.09 and $0.08 , respectively, for the prior year period. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligations | Contractual Obligations as of September 30, 2017 : Payments Due By Period Contractual obligations Next 12 2-3 4-5 More than 5 (Amounts in thousands) Ref Total Months Years Years Years Debt obligations $ 19,688 $ 3,750 $ 7,500 $ 8,438 $ — Facility leases $ 3,693 $ 929 $ 1,567 $ 652 $ 545 Equipment operating leases 77 38 39 — — Total Contractual Obligations $ 23,458 $ 4,717 $ 9,106 $ 9,090 $ 545 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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: Year Ended September 30, (amounts in thousands) 2017 2016 Deferred income tax asset (liability): Net operating loss carry forwards and tax credits $ 10,786 $ 12,387 AMT credit carryforward 316 231 Stock based compensation 236 172 Fixed and intangible assets (3,243 ) (2,580 ) Accrued expenses 1,303 918 Other items, net 241 287 Net deferred tax asset $ 9,639 $ 11,415 |
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: Year Ended September 30, (amounts in thousands) 2017 2016 Current expense (benefit) $ 338 $ 170 Deferred expense (benefit) 1,776 (1,108 ) Total expense (benefit) 2,114 (938 ) |
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: Year Ended September 30, (amounts in thousands) 2017 2016 Federal statutory rate $ 1,837 $ 831 State taxes, net 260 71 Other permanent items 17 (86 ) Change in valuation allowance — (1,754 ) $ 2,114 $ (938 ) |
Quarterly Financial Data (Una30
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of quarterly information is as follows (in thousands, except per share data) 2017 Quarters First Second Third Fourth Revenue $ 26,111 $ 29,905 $ 29,256 $ 30,390 Gross margin 5,811 6,401 6,385 7,253 Income from operations 889 1,839 1,753 2,149 Other income (expense), net (364 ) (255 ) (269 ) (340 ) Income before income taxes 525 $ 1,584 1,484 1,809 Income tax expense(benefit) 201 $ 605 539 769 Net income $ 324 $ 979 $ 945 $ 1,040 Earnings (loss) per share: Basic $ 0.03 $ 0.09 $ 0.08 $ 0.09 Diluted $ 0.03 $ 0.08 $ 0.08 $ 0.08 2016 Quarters First Second Third (1) Fourth Revenue $ 16,559 $ 16,934 $ 24,989 $ 27,120 Gross margin 2,917 3,224 5,456 6,229 Income from operations 382 689 1,668 1,325 Other expense (575 ) (127 ) (374 ) (542 ) Income (loss) before income taxes (193 ) 562 1,294 783 Income tax expense(benefit) (2) (77 ) 225 518 (1,604 ) Net income (loss) $ (116 ) $ 337 $ 776 $ 2,387 Earnings (loss) per share: Basic $ (0.01 ) $ 0.03 $ 0.08 $ 0.23 Diluted $ (0.01 ) $ 0.03 $ 0.07 $ 0.20 _______________________________________________________________________________ (1) Reflects impact of acquisition completed May 2016. (2) Refer to Note 12, Income Taxes, for detailed explanation of the income tax benefit recorded in fourth quarter 2016. |
Business Overview (Details)
Business Overview (Details) | 12 Months Ended | |
Sep. 30, 2017employeelocation | Sep. 30, 2016 | |
Concentration Risk [Line Items] | ||
Number of employees (more than 1,400) | employee | 1,400 | |
Minimum number of locations in which entity operates | location | 30 | |
VA and HHS | Minimum | ||
Concentration Risk [Line Items] | ||
Term of government contract | 1 year | |
VA and HHS | Maximum | ||
Concentration Risk [Line Items] | ||
Term of government contract | 3 years | |
Revenue concentration | Customer concentration | VA | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 62.00% | 72.00% |
Revenue concentration | Customer concentration | HHS | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 34.00% | 13.00% |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) $ in Millions | Sep. 30, 2017USD ($) |
Accounting Changes and Error Corrections [Abstract] | |
Operating lease obligations | $ 3.7 |
Supporting Financial Informat33
Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 11,911 | $ 6,637 |
Less: Allowance for doubtful accounts | 0 | 0 |
Accounts receivable, net | 11,911 | 6,637 |
Billed Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 11,862 | 5,265 |
Unbilled Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 49 | $ 1,372 |
Supporting Financial Informat34
Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid insurance and benefits | $ 240 | $ 168 |
Other receivables and prepaid expenses | 358 | 374 |
Other current assets | $ 598 | $ 542 |
Supporting Financial Informat35
Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Furniture and equipment | $ 331,000 | $ 638,000 |
Computer equipment | 715,000 | 202,000 |
Computer software | 1,108,000 | 309,000 |
Leasehold improvements | 66,000 | 38,000 |
Total fixed assets | 2,220,000 | 1,187,000 |
Less accumulated depreciation and amortization | (829,000) | (543,000) |
Equipment and improvements, net | 1,391,000 | 644,000 |
Amortization of capitalized computer software | 0 | |
New Enterprise Resource Planning (ERP) System | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized computer software | 741,000 | |
Amortization of capitalized computer software | $ 0 | |
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 | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 287,000 | $ 188,000 |
Supporting Financial Informat36
Supporting Financial Information - Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill | |||
Gross Balance | $ 34,745 | ||
Measurement period adjustment | $ 9,000 | $ 8,756 | |
Adjusted Gross Balance | 25,989 | ||
Intangible Assets | |||
Measurement period adjustment | 9,000 | ||
Movement in Accumulated Amortization, Finite-Lived Intangible Assets [Roll Forward] | |||
Accumulated amortization | (2,496) | (1,058) | |
Prior period amortization adjustment | $ 300 | 324 | |
Current period amortization | (1,762) | ||
Net balance | 15,127 | ||
Goodwill and Intangible Assets, Net | |||
Gross Balance | 43,362 | ||
Measurement period adjustment | 250 | ||
Adjusted Net Balance | 43,612 | ||
Net Balance | 41,116 | 42,304 | |
Amortization of intangibles, including prior prior amortization adjustment | $ (1,400) | ||
Finite-lived intangibles estimated useful lives | 10 years | ||
Estimated amortization expense for future years | |||
Year 1 | $ 1,762 | ||
Year 2 | 1,762 | ||
Year 3 | 1,762 | ||
Year 4 | 1,762 | ||
Year 5 | 1,762 | ||
Thereafter | 6,317 | ||
Net balance | 15,127 | ||
Customer Relationships | |||
Intangible Assets | |||
Gross Balance | 7,247 | ||
Measurement period adjustment | 9,379 | ||
Adjusted Gross Balance | 16,626 | ||
Movement in Accumulated Amortization, Finite-Lived Intangible Assets [Roll Forward] | |||
Accumulated amortization | (2,355) | (993) | |
Prior period amortization adjustment | 300 | ||
Current period amortization | (1,662) | ||
Net balance | 14,271 | ||
Estimated amortization expense for future years | |||
Net balance | 14,271 | ||
Non Compete | |||
Intangible Assets | |||
Gross Balance | 1,370 | ||
Measurement period adjustment | (890) | ||
Adjusted Gross Balance | 480 | ||
Movement in Accumulated Amortization, Finite-Lived Intangible Assets [Roll Forward] | |||
Accumulated amortization | (68) | (65) | |
Prior period amortization adjustment | 45 | ||
Current period amortization | (48) | ||
Net balance | 412 | ||
Estimated amortization expense for future years | |||
Net balance | 412 | ||
Trade Name | |||
Intangible Assets | |||
Gross Balance | 0 | ||
Measurement period adjustment | 517 | ||
Adjusted Gross Balance | 517 | ||
Movement in Accumulated Amortization, Finite-Lived Intangible Assets [Roll Forward] | |||
Accumulated amortization | (73) | $ 0 | |
Prior period amortization adjustment | (21) | ||
Current period amortization | (52) | ||
Net balance | 444 | ||
Estimated amortization expense for future years | |||
Net balance | $ 444 |
Supporting Financial Informat37
Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 5,205 | $ 4,324 |
Accrued benefits | 1,831 | 1,197 |
Accrued bonus and incentive compensation | 1,544 | 508 |
Accrued workers compensation insurance | 1,598 | 981 |
Other accrued expenses | 717 | 126 |
Accounts payable, accrued expenses, and other current liabilities | $ 10,895 | $ 7,136 |
Supporting Financial Informat38
Supporting Financial Information - Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Net bank debt obligation | $ 19,688 | |
Maturity of Debt Obligations | ||
Year 1 | 3,750 | |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Bank term loan | 19,688 | |
Less unamortized debt issuance costs | (961) | $ (1,222) |
Net bank debt obligation | 18,727 | 22,216 |
Less current portion of bank debt obligations | (3,601) | (3,560) |
Long term portion of bank debt obligation | 15,126 | 18,656 |
Maturity of Debt Obligations | ||
Year 1 | 3,750 | |
Year 2 | 3,750 | |
Year 3 | 3,750 | |
Year 4 | 8,438 | |
Total bank debt obligation | 19,688 | |
Notes Payable to Banks | Bank term loan | ||
Debt Instrument [Line Items] | ||
Bank term loan | 19,688 | 23,438 |
Maturity of Debt Obligations | ||
Total bank debt obligation | $ 19,688 | $ 23,438 |
Supporting Financial Informat39
Supporting Financial Information - Other Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Interest expense | $ (883) | $ (454) | ||||||||
Amortization of deferred financing costs as interest expense | (268) | (289) | ||||||||
Change in fair value of derivative financial instruments | (102) | (27) | ||||||||
Other income (expense), net | 25 | (53) | ||||||||
Interest expense, net | $ (340) | $ (269) | $ (255) | $ (364) | $ (542) | $ (374) | $ (127) | $ (575) | $ (1,228) | $ (823) |
Cash and Credit Facilities - Su
Cash and Credit Facilities - Summary of Loan Facilities and Subordinated Debt Financing (Details) | 12 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 1.24% | |
Fixed charge coverage ratio | 0.0135 | |
Ratio of debt to EBITDA, period one | 0.0299 | |
Ratio of debt to EBITDA, period two | 3.25 | |
Ratio of debt to EBITDA, period three | 0.025 | |
Bank term loan | ||
Debt Instrument [Line Items] | ||
Maximum availability | $ 25,000,000 | |
Bank term loan | Term Loan with Fifth Third Bank | ||
Debt Instrument [Line Items] | ||
Maximum availability | $ 25,000,000 | |
Debt instrument, payment term for consecutive monthly installments | 59 months | |
Line of credit facility, periodic payment, principal | $ 312,500,000 | |
Bank term loan | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 3.00% | |
Bank revolving line of credit | ||
Debt Instrument [Line Items] | ||
Maximum availability | $ 10,000,000 | |
Bank revolving line of credit | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 3.00% | |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Bank term loan | $ 19,688,000 | |
Notes Payable to Banks | Bank term loan | ||
Debt Instrument [Line Items] | ||
Bank term loan | 19,688,000 | $ 23,438,000 |
Notes Payable to Banks | Bank revolving line of credit | ||
Debt Instrument [Line Items] | ||
Bank term loan | $ 0 |
Cash and Credit Facilities - Na
Cash and Credit Facilities - Narrative (Details) $ in Millions | Sep. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 9.9 |
Standby Letters of Credit | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | 0.6 |
Bank revolving line of credit | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 9.3 |
Significant Accounting Polici42
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Line Items] | |||
Business base percentage, prime contracts | 95.00% | ||
Business base percentage, subcontracts | 5.00% | ||
Increase in fair value of intangibles resulting from purchase accounting adjustment | $ 9,000,000 | ||
Decrease in amortization of intangible assets | 300,000 | $ 324,000 | |
Goodwill, impairment evaluation value | $ 26,000,000 | ||
Goodwill impairment loss | 0 | ||
Decrease in goodwill resulting from purchase accounting adjustment | $ (9,000,000) | $ (8,756,000) | |
Finite-lived intangibles estimated useful lives | 10 years | ||
Uncertain tax positions | $ 0 | 0 | |
Tax interest | 0 | 0 | |
Tax penalties | 0 | 0 | |
Amortization of capitalized computer software | $ 0 | ||
Cash, FDIC insured amount | $ 250,000 | ||
2006 Long Term Incentive Plan | Employee Stock Option | |||
Goodwill [Line Items] | |||
Number of options that may be granted with a term of more than 10 years from date of grant (in shares) | 0 | ||
Expiration term of options | 10 years | ||
New Enterprise Resource Planning (ERP) System | |||
Goodwill [Line Items] | |||
Amortization of capitalized computer software | $ 0 | ||
Leasehold Improvements | Minimum | |||
Goodwill [Line Items] | |||
Estimated useful lives | 3 years | ||
Leasehold Improvements | Maximum | |||
Goodwill [Line Items] | |||
Estimated useful lives | 7 years |
Stock-based Compensation and 43
Stock-based Compensation and Equity Grants - Narrative (Details) - 2016 Omnibus Equity Incentive Plan - Employee Stock Option | 12 Months Ended |
Sep. 30, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options that may be granted with a term of more than 10 years from date of grant (in shares) | 0 |
Expiration term of options | 10 years |
Number of shares available for grant (in shares) | 500,000 |
Stock-based Compensation and 44
Stock-based Compensation and Equity Grants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total compensation expense | $ 662 | $ 466 |
Total unrecognized expense | $ 299 | 42 |
Period for recognition of related compensation expense | 27 months | |
DLH employees | Selling, General and Administrative Expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total compensation expense | $ 166 | 90 |
Total unrecognized expense | 299 | 18 |
Non-employee directors | Selling, General and Administrative Expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total compensation expense | 496 | 376 |
Total unrecognized expense | $ 0 | $ 24 |
Stock-based Compensation and 45
Stock-based Compensation and Equity Grants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Shares | |||
Outstanding at beginning of period (in shares) | 2,226 | 2,324 | |
Granted (in shares) | 400 | 25 | |
Cancelled (in shares) | (632) | (123) | |
Outstanding at end of period (in shares) | 1,994 | 2,226 | 2,324 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 1.40 | $ 1.40 | |
Granted (in dollars per share) | 5.94 | 2.80 | |
Cancelled (in dollars per share) | 1.28 | 1.40 | |
Outstanding at end of period (in dollars per share) | $ 3.83 | $ 1.40 | $ 1.40 |
Share Based Compensation Arrangement by Share Based Payment, Award, Options Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding | 6 years 4 months 24 days | 5 years 10 months 2 days | 6 years 9 months 18 days |
Share Based Compensation Arrangement by Share Based Payment, Award, Options Aggregate Intrinsic Value [Abstract] | |||
Outstanding at the end of period (in dollars) | $ 8,489 | $ 7,581 | $ 3,649 |
Stock-based Compensation and 46
Stock-based Compensation and Equity Grants - Fair Value Assumptions (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Lower Range Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per option | $ 0.93 | ||
Upper Range Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per option | $ 1.47 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.46% | 1.01% | |
Contractual term | 10 years | 10 years | |
Dividend yield | 0.00% | 0.00% | |
Expected lives | 10 years | 10 years | |
Expected volatility | 144.00% | 106.00% | |
Fair value per option | $ 2.55 |
Stock-based Compensation and 47
Stock-based Compensation and Equity Grants - Stock Options Outstanding, Vested and Unvested (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Vested and exercisable | 1,327 | 1,909 | |
Unvested | 667 | 317 | |
Options outstanding | 1,994 | 2,226 | 2,324 |
Weighted average exercise price (in dollars per share) | $ 1.45 | $ 1.48 | |
Aggregate intrinsic value | $ 6.8 | $ 6.4 | |
Weighted average contractual term remaining | 5 years | 6 years |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants issued in connection with subordinated debt | 0 | 177,000 |
Derivative financial instruments, at fair value | $ 306 | $ 204 |
Fair value adjustment of warrants | $ 102 | |
Wynnefiled Capital, Bank Term Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants issued in connection with subordinated debt | 53,619 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments - Key Assumptions (Details) - Warrants | 12 Months Ended |
Sep. 30, 2017$ / shares | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Risk free interest rate | 1.63% |
Contractual term | 5 years |
Dividend yield | 0.00% |
Expected lives | 5 years |
Expected volatility | 147.00% |
Fair value per warrant | $ 5.71 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments - Change in Level 3 Liabilities (Details) - Warrants $ in Thousands | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 204 |
Realized/Unrealized (Gains) Losses | 102 |
Purchases and Settlements | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 306 |
Change in Unrealized (gains) losses for liabilities held at | $ 102 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | |||||||||||
Net income | $ 1,040 | $ 945 | $ 979 | $ 324 | $ 2,387 | $ 776 | $ 337 | $ (116) | $ 3,288 | $ 3,384 | |
Denominator: | |||||||||||
Denominator for basic net income per share - weighted-average outstanding shares (in shares) | 11,345 | 9,966 | |||||||||
Effect of dilutive securities: | |||||||||||
Stock options and restricted stock (in shares) | 1,007 | 1,254 | |||||||||
Denominator for diluted net income per share - weighted-average outstanding shares (in shares) | 12,352 | 11,220 | |||||||||
Net income (loss) per share - basic (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.09 | $ 0.03 | $ 0.23 | $ 0.08 | $ 0.03 | $ (0.01) | $ 0.29 | $ 0.34 | |
Net income (loss) per share - diluted (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.03 | $ 0.20 | $ 0.07 | $ 0.03 | $ (0.01) | $ 0.27 | $ 0.30 | |
Income tax benefit | $ (769) | $ (539) | $ (605) | $ (201) | $ 1,604 | $ (518) | $ (225) | $ 77 | $ (2,114) | $ 938 | |
Increase in earnings per share due to change in deferred tax asset valuation allowance, basic (in dollars per share) | $ 0.09 | ||||||||||
Increase in earnings per share due to change in deferred tax asset valuation allowance, diluted (in dollars per share | $ 0.08 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Maturity of Debt Obligations | |
Net bank debt obligation | $ 19,688 |
Next 12 Months | 3,750 |
2-3 Years | 7,500 |
4-5 Years | 8,438 |
More than 5 Years | 0 |
Maturity Operating Leases | |
Total Lease Obligations | 3,700 |
Maturity Total Contractual Obligations | |
Total Contractual Obligations | 23,458 |
Next 12 Months | 4,717 |
2-3 Years | 9,106 |
4-5 Years | 9,090 |
More than 5 Years | 545 |
Facility leases | |
Maturity Operating Leases | |
Total Lease Obligations | 3,693 |
Next 12 Months | 929 |
2-3 Years | 1,567 |
4-5 Years | 652 |
More than 5 Years | 545 |
Equipment capital leases | |
Maturity Operating Leases | |
Total Lease Obligations | 77 |
Next 12 Months | 38 |
2-3 Years | 39 |
4-5 Years | 0 |
More than 5 Years | $ 0 |
Commitments and Contingencies53
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Workers' compensation liability | $ 1.6 | $ 1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Examination [Line Items] | ||||||||||
Income tax benefit | $ (769) | $ (539) | $ (605) | $ (201) | $ 1,604 | $ (518) | $ (225) | $ 77 | $ (2,114) | $ 938 |
U.S. | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Net operating losses | 31,500 | 31,500 | ||||||||
State | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Net operating losses | $ 1,800 | $ 1,800 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred income tax asset (liability): | ||
Net operating loss carry forwards and tax credits | $ 10,786 | $ 12,387 |
AMT credit carryforward | 316 | 231 |
Stock based compensation | 236 | 172 |
Fixed and intangible assets | (3,243) | (2,580) |
Accrued expenses | 1,303 | 918 |
Other items, net | 241 | 287 |
Net deferred tax asset | $ 9,639 | $ 11,415 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||||
Current expense (benefit) | $ 338 | $ 170 | ||||||||
Deferred expense (benefit) | 1,776 | (1,108) | ||||||||
Total expense (benefit) | $ 769 | $ 539 | $ 605 | $ 201 | $ (1,604) | $ 518 | $ 225 | $ (77) | $ 2,114 | $ (938) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||||||||
Federal statutory rate | $ 1,837 | $ 831 | ||||||||
State taxes, net | 260 | 71 | ||||||||
Other permanent items | 17 | (86) | ||||||||
Change in valuation allowance | 0 | (1,754) | ||||||||
Total expense (benefit) | $ 769 | $ 539 | $ 605 | $ 201 | $ (1,604) | $ 518 | $ 225 | $ (77) | $ 2,114 | $ (938) |
Quarterly Financial Data (Una58
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 30,390 | $ 29,256 | $ 29,905 | $ 26,111 | $ 27,120 | $ 24,989 | $ 16,934 | $ 16,559 | $ 115,662 | $ 85,602 |
Gross margin | 7,253 | 6,385 | 6,401 | 5,811 | 6,229 | 5,456 | 3,224 | 2,917 | 25,850 | 17,826 |
Income from operations | 2,149 | 1,753 | 1,839 | 889 | 1,325 | 1,668 | 689 | 382 | 6,630 | 4,064 |
Other income (expense), net | (340) | (269) | (255) | (364) | (542) | (374) | (127) | (575) | (1,228) | (823) |
Income before income taxes | 1,809 | 1,484 | 1,584 | 525 | 783 | 1,294 | 562 | (193) | 5,402 | 2,446 |
Income tax expense (benefit), net | 769 | 539 | 605 | 201 | (1,604) | 518 | 225 | (77) | 2,114 | (938) |
Net income | $ 1,040 | $ 945 | $ 979 | $ 324 | $ 2,387 | $ 776 | $ 337 | $ (116) | $ 3,288 | $ 3,384 |
Net income (loss) per share - basic (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.09 | $ 0.03 | $ 0.23 | $ 0.08 | $ 0.03 | $ (0.01) | $ 0.29 | $ 0.34 |
Net income (loss) per share - diluted (in dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.03 | $ 0.20 | $ 0.07 | $ 0.03 | $ (0.01) | $ 0.27 | $ 0.30 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined contribution plan, recorded expense | $ 154,400 | $ 142,000 |
Defined contribution plan, matching contributions period | 4 years |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Nov. 10, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||||
Number of incentive stocks granted (in shares) | 400,000 | 25,000 | |||
Subsequent Event | 2016 Omnibus Equity Incentive Plan | |||||
Subsequent Event [Line Items] | |||||
Number of incentive stocks granted (in shares) | 217,500 | ||||
Subsequent Event | Non-employee directors | |||||
Subsequent Event [Line Items] | |||||
Shares issued (in shares) | 93,125 | ||||
Share-based compensation expense recognized | $ 563 |