DLHC - Earnings call transcript Q4 2019

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Operator

Good morning and welcome to the DLH 2019 Fiscal Fourth Quarter Earnings Conference call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Chris Witty, the Investor Relations Adviser. ahead. go Please

Chris Witty

good and Thank morning, you, everyone.

are call Parker, Zach the Officer. page. company's PowerPoint today the website JohnBull, is and Chief The presentation and release me President earnings on Executive Investor Financial our under On Chief with available Officer; Kathryn and

could and is presentation. relate now would XXXX This various are for include to statements that which call factors do the statements with and provide on company's slide fiscal Exchange statements. contained Safe duty these undertake results forward-looking in Harbor a that on may These cause risk I company's the Please shown Securities brief X to subject statements. outlook any the and to risks statement, and actual like filings forward-looking also report beyond. of annual and the differ forward-looking materially not to uncertainties to other We in the Commission. update Form events refer any to XX-K from our

be will is On results open measures. presentation website. questions. by it results CEO, GAAP today's reported the call, we and earnings to Kathryn our in which followed Parker, our President referencing both reconciliation after release DLH's of A Zach we'll investor and in non-GAAP speak the financial included next, on non-GAAP GAAP CFO, and will JohnBull, for up

call Zach. Please to turn go over With the that, to now I'd Zach. like ahead,

Zach Parker

for fourth to some begin and and of conference Chris, the financial by overview Thanks, high-level our Starting around quarter a our with color XXXX. morning Welcome everyone. X, outlook providing to call. slide I'll good fiscal performance

highest $XXX.X from rose quarter million since a with at attractive restructuring almost revenue business income in and our a $XX.X year quarter, the discern million to the values $X.X million. release, press you for delivered results the to the contractor we revenue the reflecting at ago, fourth government operating decade coming both for and for quarter As have can

but our top first By since is contribution strong acquired this enjoyed our for that our recent of strategic full way, did Not X% clearly organic XXXX. quarter organically to newly objectives nine the we provide and government. years remain line our from year-over-year report results Note, now with that demonstrate well. of performance, aligned as These reflecting the well Federal business operations key post growth our in the to growth have differentiating grew agencies mission-critical only acquisition. remainder our continue customers we value consecutive

XXXX. rose to Operating million fiscal quarter the for $X.X income $XX.X for million and

healthcare company high-value been a in to the Our and the continue business growth going scaling technology-enabled, team has provider forward. diverse we'll returns into to growing clients our on and support increase serve phenomenal of solutions, focus better and appropriately

continue We flow. free excellent have to cash

reduction our deploy to deal, have acquisition-related with a of consistent practice. the current debt XX address reduced capital Through plan accelerate down moment. past debt is Our will in further $XX to this million. after the we to the Kathryn September, XX this our weeks

strategic line top seven growth Slide X the faster. We've even this benefit and over snapshot of expanded of performance the which the also shows significantly acquisitions, increasing past a our period, of while years. EBITDA two includes

we our growth our about primary the these flow. the given we accelerate is believe along Accordingly, agencies serve. that our accelerated the for we feel to are outlook among and reduction I rate in forward, better While space, our positive that debt going positioned our strongest are results services results that and focus substantially with future and

X. slide see Please

see services can the you is and growing. stable from overview, As market this government

as had resolutions like, we continuing on procurement we serve. many While can affected negatively historically the policies have that the be by in impact such minimal general agencies and factors

migration including data components of for customers now all are end-to-end board, and our are to of of the Internet more analytics, strong cloud technology-enabled solution, use the greater and offerings. looking of solutions Across Things, seamless which

the and space placed and well within healthcare we life agencies are share serve the public have sciences materially position across arena. the We health and and bolstered market our

award the Control Disease our to Center will for recent Our prospects growth add with IDIQ here.

carefully increasing the Human we funding will play going Agency, Health broad are the bipartisan we Department the forward. federal Affairs and of as monitoring Defense, the Veteran on particularly the Agency So, negotiations the that support enjoy to how continue levels Health believe of budget and hill firmly steady and Defense out, Services Agency,

heritage our Turning review from acquisitions. to competencies the and to heading fiscal these from capabilities reflects six. our business some our core of recent slide capabilities bolstered I'd into new Again, have like XXXX. our

can contracts, that us for priorities management complex prior I'm to to and secure government credentials to skillsets, a corner bring budget expertise slide reviewing bigger covering which experience, solving bid turn well of on our and fiscal across modernization. offer we everything data the problems analytics more clients proud the the system federal align case and board, approach the You complete as the to on see that XXXX. We challenges, our unique helping from XXXX. is we for

excellent and detailed those leadership of customers forward. performance the in objectives operating Our going and growth management plans current with joint for team developing action solid have been

under beyond. pipeline year are business new for and opportunities. a and about growth of have prospects million It optimistic just We $XXX healthy the next wins new is

successful of course, growth the business our progress and to company. continuous Of pipeline growth and monitoring We with for and dashboards, development KPIs and performance wins our careful key utilize require indicators, improvement new business those and into activities. will to execution regard we look substantial forward this business opportunities successful or -- platform, currently turning

task this the at accelerate to communicating ourselves strategic excited, company as part Everyone and them our our help employees, and which our hand. investing that and aligning a strategic training some means constantly is leveraging essential, objectives, with in and those growth. key, plays achieving staff After to critical products we're we needed, are the new are all, are partners by our in are it with us credentials involved, inspired

And so for that closing, are like to I'd future say never the today. we been DLH than better is in prepared

to to opportunities federal diversity, bring Our unique business the has new the breadth, differentiators to and government.

employees are demonstrated with have expertise. great to assurance quality satisfaction drive and highly their sharp, Our the excellent credential, customer ability

I'd Financial Kathryn like turn call to that, Chief JohnBull. now our Officer, Kathryn? With to the over

Kathryn JohnBull

Zach, and everyone. good to great Thank We're pleased XXXX. you, morning fiscal report a to end

$XX As of Zach the -- paid had acquisition operating reduce cash successfully on for two rapidly company Similar to going strengthen end recaps we'll June, acquisition debt. to X debt, we've we continue SX using mentioned term flow Danya slide before, ability of early, Since delevering revolver. at loan are us our our manage million on and down paid the our our where acquisition our million quarter drawn and nothing XXXX to to forward. in our we debt our sheet $XX years the balance off in

already all As a and X, fiscal required our a through rate principle care led credit spreads improved the interest XX reduction chart XXXX. our XXXX of in fiscal basis beginning of on payments portion leverage the we've taken slide to point for right shows of has ratio in

$XX We're sheet as reducing rate rapidly once our as of into shore In to debt, everything and a addition, exposure. balance doing we recently fixed-to-floating rate up again million possible we can. fluctuation our interest interest swap reduce entered expense on

fourth across million X. variance the of the of course for million growth roughly from growth ended as the prior well our versus operations solid to reflects mentioned. year The organic as Turning of as organization with million We the impact year-over-year in across approximately quarter. revenue posted the months $XX.X three our impact September $XX.X a slide revenue $XX.X acquisition We're SX of and sX other as whole. X% XX, pleased XXXX Zach tremendous

expense to operating versus margins respectively. million $X.X for fiscal The of of higher slide acquired intangibles year, margin XXXX including G&A. $X amortization from increased and million reflecting depreciation due from rose operations Turning million principally X.X% Income and transaction X. fourth last the lower in XXXX quarter to and was $X.X SX to X.X% amortization

year, G&A in integration $X.X business rose last of some from expense. the SX, million addition and expense $X.X development reflecting to million XXXX

scale the business to appropriately. expenses We to manage SG&A our integrate the and continue business to

versus million provision was approximately due quarter tax versus increase this million company fiscal per of me The versus fiscal pardon income interest was fourth million diluted -- $X.XX XXXX higher expense first in net year-over-year reported $X.XX year. $X.X to or or and last million for last We year. And expense, debt $X.X expense $X.X recorded in XXXX SX $X.X million largely million balances in acquisition. interest year-over-year the a outstanding the obviously share from $X.X share $X.X

given release taken for and what XXXX We've expect just that prospective to the interest in for in actions reduce expense in debt press the trends the interest the laid expense. at proactive for looking help out we we've reduce year your

period. the transaction. reconciliation due at months ended three $X.X Turning EBITDA was presentation. was EBITDA statement Year-over-year to million largely EBITDA growth back earnings in our A GAAP XX, XX. the the to year versus SX the of million and $X.X for income is slide in September net XXXX the prior of to

over concludes open statements. I would for operator now financial that, it And like of with the our turn This discussion to my the questions. to call to

Operator

come We will Herbert Please now begin of from And go Instructions] Canaccord. first [Operator Ken ahead. question our session. will the question-and-answer

Ken Herbert

good Hi, Kathryn. morning and Zach

Kathryn JohnBull

Good morning, Ken.

Zach Parker

Good morning, Ken.

Ken Herbert

assume a revenues wanted identified Is I for from XXXX fiscal just first would XXXX rate any in contributed the about or that with influence that there contribution I you’ve we start question a quarter. it run nice good either quarter. to specific negatively should in mean, or million positively SX. that on SX? Hey, off are $XX expected contracts the

Zach Parker

for your but and the by that factors are pretty run news. There have throttling good And Good bit good again for I We rate. quarter, a a potential thank even question, for think that rate maybe think pretty it's large run a and Ken. SX you will that's support. increasing the

to think And the of upside, XXXX. there's degree awards, small contribution. that color and to a But -- decisions got to the continue some a on any their course, we've that's manage we've you task recompete pending some by estimate some to of well. as will determine good going I customers. that on do add And of want large those On risk orders got FY applicability to it? from there Kathryn, some timing we’re

Kathryn JohnBull

year-end that's materially I think typical but lift in government the There's not little of fiscal quarter, right. so. a bit

Ken Herbert

out it the on I you. gross margins? amortization, higher heading Thank million fiscal looks like costs you onetime year. Okay. comment had in see And Can a like into $X higher for you some some few and and -- called the got you at it you've higher sounds mean, charges look in D&A SG&A quarter. -- around XXXX I as you where the

-- fiscal think about they're we longer-term going of as should opportunities? run target SX this maybe margin. MX the the a you your to obviously up to costs -- You How nice XXXX through year had -- that longer-term went really in going some to through ramp associated of margin and model they're gross incremental terms with frame relative

Kathryn JohnBull

Yeah.

we indicative where the run. I me for short a recently margin think line. I'm is shred be a everybody our -- completely indirect costs in fairly to costs we is below the as we hasn't some disclosed chance pretty expect of bit just a it, previously to had of QX re-classing sure since and but And did remind have gross of filed, of do that the let XX-K

indirect of they To contract up are those indirect, specific costs. be a essentially though facing re-classed the that as costs and those have relate contracts really extent we above to client portfolio

of related what's and the for left operation a so, now to growth. those And that are SG&A the company whole general preparing really is costs company the in as

costs think represent I really company operational takes differences resultant models way for operating consistent your the the in a gross away basis. contract margin in and units the modeling the so, on different pretty a that purposes the And of

And so say with in that, left that's what's I would SG&A.

are and at we our we on integration. just think course, I Of looked status working

can as update things have declare under prepared just interim be play expect some the we will relationships all to before implement yesterday, and implemented. had out of -- are integration change on at December, victory an fully end Just take those that and contractual they of really the changes to and really accomplished,

of to quarters. continue prove the kinds SG&A and going we're our to I expect but near-term you ability to QX represents our to a should the in structure, on good business the think pretty the So, indicator work integrate business margins leverage of

Ken Herbert

or just I question we looks if you're status. contract Great. extensions Thank on this year -- VA one change XXXX, to playing of And you out you the could much fiscal maybe you. and risk an like on the and not but opportunities just final the half back and into these stand in going Zach the mean, in see XXXX? with that the it I likely where how update from shouldn't maybe see Thank the with XXXX you.

Zach Parker

absolutely requiring Veteran exhibit majority standard question contracts. of to our we of solid. of a order pharmacy on and business there you're to us the as -- refer We strategy the primarily currently going VA disclosed, given current Ken CMOP, have approach They they mail with extensions our Good are to work continue for we've fiscal additional year To that to the the still customer confidence go-forward next Yes. that time of the the recompetes the through of point. on is referring of we and extensions the that feel degree high to Affairs. date, have this as the seen we're navigate hold

remain duration for that of XXXX. to missed, and be that And I we beyond negligible hopeful of that XXXX. do course, that in business space the part there VA we Was a of we'll second of of Ken? yes, that question continue your So optimistic impact see

Ken Herbert

was your sentiment It really months of see No. and customer handicapping where today be XXXX, the out, six three and from around know just may it's and ways contracts relative to you a sort these sort thoughts but Zach I it ago? or of

Zach Parker

Sure. optimistic their and actually No, regard Yes, impact. strong with very, to that. are I appreciate very we

regard thinnest might What strategic company long-haul forecasting imagine, far to about most of -- a you happens look business. the objectives as and the multiple have, as part We our our would what scenarios that the that encouraged our margin-generating be with is to standpoint of modeled growth of from as health health as I'm like.

organic see a very, some to we deliver and strong where in period. So, the we value throughout the of the that some may forward those going still sheet of potentials, profiles to scenarios very with show have we balance drive haircut growth that continue

financially about to either we're a scenarios given that that really of of the that strong all strong we're excited first business. But wanting -- So feel we retain clearly, occur. may operation

Ken Herbert

job much. Really Great. very you leverage the on thank nice and

Zach Parker

bet. You

Kathryn JohnBull

Ken. you, Thank

Zach Parker

Thank you.

Operator

from next Our Please question go NOBLE Joe comes ahead. Capital. Gomes of

Kathryn JohnBull

Joe. morning, Good

Joe Gomes

the CMOP Good head Good morning and major the questions. taking We my quickly contracts talked you're contracts, other about other contract two start morning. what the for thanks VA on that and just Head those contracts? having at looking VA on on a and you If the give update this us some potentially RFP Start? awards little other the year potentially on could an

Zach Parker

Yes. sir. Yes,

one. been same one but I solution been course, that's historical on until as the pharmaceutical. win extensions both that they've carrying Always first complement Every been and VA other. subject it the medical position position the action as a not the stated primary piece other one that's pharmaceutical see take even described approach pharmaceutical of position, for change heavy one, the will logistics on refer So that our for logistics to the the their indication us we gotten stronger the we forward medical on the government by as earlier their to than is in really substantiated a it's degree

clearly contract and XXXX for do their any that to through we strategy on one and so FY acquisition see beyond subject change VA. the coverage And

So just as strong there.

is Start for Head it in -- recompete the XXXX. slated FY On in calendar program, currently

very, recent As have you very over six in the about really recompete. hard favorably Fisher imagine, in team for recompete. months we're been might on ability feel and positioning nine [ph] actions We very, Rowe working our confident to we that their and that the implementing our feel and Helene very, that good compete to very

Joe Gomes

continuing the a -- nice that What of you Thanks was there. Or a behind Great. in for organic organic see net could quarter that it what that? little that. talk level? a that? growth near-term And was type you X% was do driving of And bit Okay. maybe growth

Zach Parker

IDIQ around as of and course some contracts from focused groups are. our incentivized of our number year think on-contract well. well. of been wins around to growth in order We We a the We're as line the a have really put our contributing that that. And folks small the really we've We that some lot into last of growth X.X over had existing years we've that. work task of operating

benefit So that. we're we getting feel some of

had to due the consolidations. government offset course, some contract Of erosion to we've or decisions

had small Some of set to been that conclusions. aside work business our coming

those despite of offset pressures couple last have we've over X% still that the a so growth. been And years, and

Those the some of that government have teams, of for behaviors and for wins. some also across muscle allows hopefully we've occur. decisions our these to memory continue And to created setting organic that we to contract expect the the major larger making us

to base which leverage business. that continue So, we to contract real have us place in right comfortable expand we our will allow -- that the feel now the to current

Joe Gomes

you quarters Okay, of couple cross-selling go-to-market about And SX. the the some of talked strategy in the great. with and your last opportunities -- the

update there to any is Just the able successes be that give opportunities? wondering any us you on of a might if little cross-selling Are how progressing. yet on examples

Zach Parker

Yes, we've quick in environment. had We're sharpen continuing A of credentials real, time gain center position real of about that wins establish side. small FedRAMP the in to on analytics a we've able those only that last our the part secure not data certified We some the the talked regard. to key some been are research the to acquisition. but with

part some in that's -- regard. on We're convince been customers month some year. to We've able value making to every orders calendar current some we'll of task early we that that of impact on the see progress the positive that have and think

as way be out task several hunting we XX the would over the prepared six IDIQ to in have been SX in had recently six next well coming license for we near nine qualifications an the of as the awarded a months. to next in anywhere major anticipated to the not which pursue not that is We've RFQs months also to orders compete

So, added our how we're these increase through real likelihood about some to excited qualifications drive the IDIQs. success

Joe Gomes

the operations? your resolutions? here months? -- it impact does assuming just couple I it of last the has that this And to does really it prepared on start of in some continuing guess mean you if mentioned government impacted I your have when guys remarks Okay. how to you drag -- And anything if in you continues out,

Zach Parker

The hesitant have they Right. until contract strategies acquisition impact been biggest Well to government government longer with awards the to new our is and on budgets. material has in the always can ability it is have our new getting throttled new its the place. -- work take -- to term issue awards

In seen we've some we're progress folks caps to overcome able where approval. those have BCA cases, allow some there some have focused able to been and and those to funding particularly some multiyear agencies be where

So, despite that's for partners more been real a some us industry our that than challenges positive are fact little peers of us. facing the and

as And couple budget of business. lift that agriculture real interior recall million you be going some been we took legacy a potential also annual years to some we lost have could if there return in a some haircut ago of forward the department exists two and out We've and of the may we our budget -- the some -- get if get from $X.X about with that we reductions like certainty business. of

the in ways But banked our not those on into prospects some we've affect for happens our that So, what growth. pipeline. hill does --

Joe Gomes

Great. you. Thank

Zach Parker

Thank you.

Operator

Riley Instructions] FBR. Please of our ahead And from question Crawford go come B. Mike [Operator next will

Mike Crawford

Thanks.

Kathryn JohnBull

Mike. morning Good

Mike Crawford

morning. Good

you SX in $XXX you've was business further Can million of there acquired when regarding what given this -- a it? pipeline. doing development about organization you business that -- further that you're development talk more research-oriented So, efforts

Zach Parker

that. Yes absolutely. excited We're about really

business some in tomorrow more as we low-hanging and research shot really session our I'll fact, that on have long-term In analysis fruit come as the today the around a research. that -- capabilities -- plane arm be importantly morning. pipeline around just more opportunities have major the in with but and some added new support hopping a placed to we

secure achieving that healthcare to refer been to -- conduct seat the We a in we a the milestone environment data particular has us which in -- projects. for in SX analysis as of for driver's having FedRAMP center in

decision. customers. and component sustainable able many we've SX, very where depends have if group But through that those pipeline for sustainable longitudinal analytics was We've long-term -- not you a on satisfactorily do a the to in cohort critical some research did our previously government's been research, will already opportunities that

which We We're to on to to we've added the two hopeful are position -- of going continue how opportunities evaluating material those got company. We're drive going government now we're session those basis. our tomorrow a have with business. the projects the combined. competitive three or We've weekly capabilities is added to those. evaluating. going that indication types government try to again to on is every these at very a four that we're that leverage of look that's And that the differentiators in particular that grow We've

is is best approach government SX. entertaining got having opportunity the the crosshairs an solution that to to The XX% which prospects looking the do scenario find for in be us the were a within for we to of about is challenge. acquisition, us for government's business the craft clearly to do we've what Prior an in and to outside of the to partners able we of

our in-house we elevated that that acquisition. have twofold we've think Now win probability and we with capability

we're optimistic. So

year. alignment, RFP the of sometime awarded that during and fiscal to And this be if revenue deals the shortly business have there contributing are are mode expect year by in fiscal we moons in to that These the even get the we the afterwards. end could

pipeline we tell that's for to we're as you, can I diligence our So three, in during was anticipate it plus we about the speak. -- and what find one one excited to we're can and pipeline. space equals process I with leveraging the new the Kathryn where on that of business done intentional

pipeline by quality $XXX our that deals. level now the -- recompetes businesses four strong, further positioning count these new of million those have just all pretty million are have rate to run and our when and a times business say roughly we at $XXX validated new on that's is that is revenue under a our To and doesn't our

during and diligence having anticipating optimistic captured we So, the value excited that we're were that phase. really about

pulling So, thank to you she together. for team and assembled Kathryn the that

Mike Crawford

then company Would gears. just switching again actively And to M&A? be Great. soon for too Okay. a fiscal considering be XXXX

Kathryn JohnBull

No.

we course, continue and we will the delever. I we through as -- mentioned, to Of are well integration are activities

understood SX We growth put are really acquisition. through We strategy. a our that the together consciously group bank

door not acquisition. So, further we a close on the would

We think grow not property, an And intend organically it's We move or strategy. both right prepared we're the for to forward. to acquisitively. and

Zach Parker

we'll continue we looks indicated Kathryn to open And do to basis, and monthly -- on continue get a the opportunities for deal. as at to keep our eyes

We decision We're just have any to -- we're scale. think not we going to to need looking that for gaps make a we not fill. add

going Our accelerate that current the upon debt we to based is now, the exposed debt. -- growth our the priority same at have think of that's we growth And on had that right been company the organic have acquired kind us you today place to get capabilities to time partners that organic all we to delever there.

before has history on of going far in Kathryn of -- how what clean it to balance opportunity going to and forward, both -- we'll you her play to we're think so the deal it I out. all Board itself, that the aspect sheet presents not but right at and demonstrated this see will if that the take the and see it continue And up expense

Kathryn JohnBull

didn't really markets. filling not with gap a have a acquisitions of substantial we We're Yeah. our Right. our as footprint in where target prior and couple we we two had were a market, articulated

gap. that sense really the acquisition an So, close to did in we

collection well-rounded mentioned, we've on but that focus right? That's covered we But the now, got we've really priority. competencies and grow a as -- think of capabilities waterfront set of right a got and our the however, organically we've Zach to

generate we've of to some So, very tax some tax structured amortization we've there. NOLs shields tremendous to left. also got both got ability and meaningful We still strong acquisitions deductions substantial out generate And prior flow. we've got cash our

for tremendous right acquisitions, So, and those really door on the things close all give opportunity. managing capacity never we would us the

Mike Crawford

Great. you Right. much. very Well, thank

Zach Parker

you. Thank

Operator

Zimmerman ahead. Please from go question of comes Capital. Abigail Lowell next Our

Abigail Zimmerman

Good morning.

Kathryn JohnBull

Abigail. morning, Good

Zach Parker

Good morning, you? Abby. How are

Abigail Zimmerman

I do on How cash Good. debt call. based free much you you're first down performance your Thanks current doing? the for can along guess rate you generation the whatever get to I Good. taking with are what that is able over question flow run guys you the think how year? my have, next say? And your

Kathryn JohnBull

quarter short-term we Well, what our we're upcoming FY combined certainly quarter. results expect as of fourth in representative view the we company from in – – pretty

So, what that I you to continue for in good that's do aggressively the pretty expect think we fiscal And expect we modeling basis in a – delever. XXXX. – to

not to but I sure I myself, going like payoff Danya, two always in years So, I'm beat early to did the outdo aim I'm right?

Abigail Zimmerman

Okay.

another And Okay. question, are? you CapEx what do think maintenance your

Kathryn JohnBull

Yeah.

are maintenance CapEx very company. We a light

So with a as mentioned SX little we're the we really Zach more and slightly – acquisition intensive where more our that's CapEx now most of technology capability resides.

for $X.X a between my million a size. company million light pretty our CapEx, plan year, $X I maintenance So to

Abigail Zimmerman

Okay.

final then And one question. Okay.

but I You or are quarters? seasonality in strongest reiterate. have so profitability any just Is may cash this the addressed flow there apologize, And generation? to what your

Zach Parker

little some indication last impact it's what it But representative, two contract right give bit. of variance pretty you business a that a I'd with now has if had year say, we've so of throttled cycles XXXX the have more history from that of I'd Kathryn? Start of with portion Head is a substantial the to XXXX usually do school use the history, program. say Each enough And you may those year. heritage There entering and our A bit to with legacy associated year and got little this is. has action

Kathryn JohnBull

Yes. Yes, quite right.

can they of things our go and and programs around picked up they some you've as move large So some – that quarter-to-quarter. programs we anchor have

for QX paying still But But us month a that, they aligned flow what the they terms. view. very XX-year quarterly or a on look And so appreciate annual can customer typical by expect the depending particular in numbers the it in you within on well a could we second if you to XX-day cash cash think it's slide best of XXst past they're very meaningfully to Though, the with cutoff of the month, that we number. saw rate example, of have pay basis. if who – move much run our flow

to So – seasonality for quarter if question do the end not the to But about out cash our pay quarters that is and before QX at from of holidays our break are the our of front side. up of government tends bills there any for they them a us to simply year. to little best them. people about is their answer or your in run-off those do flow because the We them, can to so they to next which get be they be there a distracted soft choose holidays tends whether

so And that historical but the our in to course year. been the it balances has little soft be to QX, over just be of tend things experience tend a by out they

Abigail Zimmerman

Thanks.

Zach Parker

we to really, also industry standards by Abby good I'd that you as know probably – really DSO. add really already seem have from

relative think relationships cetera. our a and been you our great I and to DSO, We're have to et blessed had to some we with paying in peer relatively offices to if companies really measures they're of industry-leading customers ask some me. lot create put have where able really a

Kathryn JohnBull

days. XX below Yeah. Yeah. Well,

Abigail Zimmerman

thank Great. the That's Thank helpful. you. And for time. your strong congrats on results. you Well, guys

Zach Parker

Abby. you, Thank

Kathryn JohnBull

Take care.

Operator

turn At this queue. no like further closing the questions to are any I Zach conference remarks. back Mr. over would for in there time, to the Parker

Zach Parker

Annual quarter shareholders to to shareholder for to chat within many participating community have also – up York. along New our we this we'll participation once opening that – with has been have look I'd of we an continued with we're you us The forward as opportunity like during your in Meeting very, DLH. thank to strong just the But going in done. everything very with Well, everyone next journey again, having have

again for blessed. So look participation be forward today, everyone. seeing we and fantastic thank Have your holiday a for you to and now. Bye

Operator

conference The Thank concluded. now for attending has today's you presentation.

disconnect. You now may

DLH (DLHC) 12 Dec 192019 Q4 Earnings call transcript