DLH Holdings Corp (NASDAQ:DLHC) stock rose 0.91% (As on Dec 7, 11:31:46 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 21. The operating income increased by 49.4% Y/Y to $4.03 million, and the margin expanded by 90 bps to 6.2%. EBITDA was $6.04 million, compared to $4.36 million in 4Q20, and the margin expanded by 70 bps to 9.3%. The company reduced debt to $46.8 million, with solid cash flow anticipated to fund additional de-levering in FY22 with a target debt of $29 million – $27 million. The total backlog was ~$651.5 million as of September 30, 2021. DLH Holdings had cash and equivalents of $24.1 million. It generated cash from operating activities for the year of $45.66 million, compared to $19.45 million a year ago. During the fiscal fourth quarter, DLH announced several awards with an aggregate value of over $120 million to support the Center for Disease Control and Prevention (“CDC”) and FEMA. The Company reported net income of approximately $2.9 million, for the fourth quarter of fiscal 2021 versus $1.4 million, for the fourth quarter of fiscal 2020. As a percent of revenue, net income was 4.4% for the fourth quarter of fiscal 2021 versus 2.7% for the prior year period. Income from operations was $4.0 million for the quarter versus $2.7 million in the prior-year period and, as a percent of revenue, the Company reported an operating margin of 6.2% in fiscal 2021 versus 5.3% in fiscal 2020. As of September 30, 2021, the Company had cash and cash equivalents of $24.1 million and debt outstanding under its credit facility of $46.8 million, versus cash of $1.4 million and debt outstanding of $70.0 million as of September 30, 2020. The increase in cash was primarily due to an advance payment to fund deployment of emergency medical resources under the FEMA contract awarded in late September.

DLHC in the fourth quarter of FY 21 has reported the adjusted earnings per share of 21 cents, missing the analysts’ estimates for the adjusted earnings per share of 22 cents. The company had reported the adjusted revenue growth of 28.6 percent to $65.18 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $63 million. This is due to the acquisition of Irving Burton Associates (“IBA”), new contract awards, and increased volume on existing contracts