DLH Holdings Corp (DLHC) 2023 Q3 法說會逐字稿

Good morning, and welcome to the DLH Holdings Fiscal 2023 Third Quarter Earnings Conference Call. (Operator Instructions) Please also note that this event is being recorded today.

早安，歡迎參加 DLH Holdings 2023 財年第三季財報電話會議。 （操作員說明）另請注意，今天正在錄製此事件。

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

我現在想將會議交給投資者關係顧問克里斯·威蒂 (Chris Witty)。請繼續，先生。

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

謝謝大家，大家早安。今天與我通話的是總裁兼執行長 Zach Parker；凱瑟琳‧約翰布爾 (Kathryn JohnBull)，財務長。該公司的收益發布和 PowerPoint 簡報可在我們網站的「投資者」頁面下查看。

I would now like to provide a brief safe harbor statement, which is also shown on Slide 3 of the presentation. This call may include forward-looking statements that relate to the company's outlook for fiscal 2023 and beyond. These forward-looking statements are subject to various risks and uncertainties that could cause actual results and events to differ materially from these statements. Please refer to the risk factors contained in the company's annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.

我現在想提供一份簡短的安全港聲明，該聲明也顯示在簡報的幻燈片 3 中。此次電話會議可能包括與本公司 2023 財年及以後的前景相關的前瞻性陳述。這些前瞻性陳述受到各種風險和不確定性的影響，可能導致實際結果和事件與這些陳述有重大差異。請參閱公司 10-K 表格年度報告以及我們向美國證券交易委員會提交的其他文件中包含的風險因素。我們不承擔更新任何前瞻性陳述的責任。

On today's call, we will be referencing both GAAP and non-GAAP financial measures. A reconciliation of our non-GAAP results to our reported GAAP results is included in our earnings release and in the investor presentation on DLH's website.

在今天的電話會議上，我們將參考公認會計原則和非公認會計原則財務指標。我們的非 GAAP 業績與我們報告的 GAAP 業績的對帳包含在我們的收益發布和 DLH 網站上的投資者介紹中。

President and CEO, Zach Parker, will speak next followed by CFO, Kathryn JohnBull, after which we'll open it up for questions. With that, I'd now like to turn the call over to Zach. Please go ahead, Zach.

接下來將由總裁兼執行長 Zach Parker 發言，隨後由財務長 Kathryn JohnBull 發言，之後我們將開始提問。有了這個，我現在想把電話轉給扎克。請繼續，扎克。

Thank you, Chris. And good morning, everyone. Welcome to our 2023 third quarter conference call. We continue to make good progress and remain on track for a strong end to fiscal 2023. These accomplishments are attributed to the great commitment and talent of our accomplished and distinguished employee base. They have weathered the pandemic storm and continue to deliver high-caliber solutions and services to our clients.

謝謝你，克里斯。大家早安。歡迎參加我們的 2023 年第三季電話會議。我們繼續取得良好進展，並繼續朝著 2023 財年的強勁目標邁進。這些成就歸功於我們才華橫溢、傑出的員工群體的巨大奉獻和才華。他們經歷了大流行風暴，並繼續為我們的客戶提供高品質的解決方案和服務。

Let's dive into the financial highlights on Slide 4. I'll first provide a high-level overview of the quarter's financial highlights.

讓我們深入了解幻燈片 4 上的財務亮點。我將首先簡要概述本季的財務亮點。

I'm pleased to announce that the third quarter revenue surpassed the $100 million mark setting a new milestone for our ongoing operations that reflects our success, acquiring and integrating, growing organizations as well as importance of key programs and agencies that we serve. We anticipate being at or better than this run rate going forward, testimony of our new phase of growth -- of our next phase of growth, which is built upon organic strength, a broader array of technology-enabled solutions and reflects strong demand for the company's extensive capabilities by the federal government.

我很高興地宣布，第三季收入突破1 億美元大關，為我們的持續營運樹立了新的里程碑，這反映了我們的成功、收購和整合、不斷發展的組織以及我們所服務的關鍵項目和機構的重要性。我們預計未來將達到或超過這一運行速度，這證明了我們新的成長階段——我們下一階段的成長建立在有機實力、更廣泛的技術支援解決方案的基礎上，並反映了對公司的廣泛能力受到聯邦政府的認可。

During this quarter, our reported operating income was $7.1 million and EBITDA rose to $11.4 million. We also managed to reduce our debt by over $8 million since the end of quarter 2, utilizing our strong cash flow to delever the balance sheet efficiently. Our reported EPS was $0.12 per diluted share and our backlog at quarter end was approximately $817.8 million. We are operating in a very active and attractive bid environment and anticipate winning our fair share of our new contracts in the coming quarters, supporting the accelerated growth going forward.

本季度，我們報告的營業收入為 710 萬美元，EBITDA 升至 1,140 萬美元。自第二季末以來，我們也成功地減少了超過 800 萬美元的債務，利用我們強勁的現金流有效地去槓桿化了資產負債表。我們報告的每股攤薄每股收益為 0.12 美元，季度末的積壓訂單約為 8.178 億美元。我們正在一個非常活躍和有吸引力的投標環境中運營，並預計在未來幾個季度贏得我們的新合約的公平份額，支持未來的加速成長。

Turning to Slide 5. I want to give an update on some key developments for the company and its outlook. We recently announced that DLH had been awarded a contract to compete for Expanded Digital Transformation, Systems Engineering and Cybersecurity Services for the National Heart, Lung and Blood Institute, NHLBI. As part of this program, we will continue to provide advanced solutions and technology services to support this customer as a global leader in heart, lung and blood research and training and education as well. This multiple-award contract, indefinite delivery and definite quantity contract has an award ceiling of $85 million in a 5-year contract term.

轉向投影片 5。我想介紹一下公司的一些關鍵進展及其前景的最新情況。我們最近宣布 DLH 已獲得一份合同，為國家心肺血液研究所 (NHLBI) 競爭擴展數位轉型、系統工程和網路安全服務。作為該計劃的一部分，我們將繼續提供先進的解決方案和技術服務，以支持該客戶成為心臟、肺部和血液研究、培訓和教育的全球領導者。這份多重授予合約、無限期交付和確定數量合約的授予上限為 8500 萬美元，合約期限為 5 年。

Our integration of GRSis also on track, and we are continuing to achieve, anticipate the anticipated enterprise results since the deal's announcement. The transition of GRSi to key DLH business systems, such as our Enterprise Resource Planning, ERP and our Human Resource Information Systems -- Human Resource Information Systems is complete leading to greater operational efficiencies across the board. Our expanded go-to-market strategy is evolving as the teams pull together and demonstrate the full range of the DLH enterprise capabilities to our customers.

我們對 GRSi 的整合也已步入正軌，自交易宣布以來，我們將繼續實現、預期預期的企業業績。 GRSi 已完成向 DLH 關鍵業務系統（例如我們的企業資源規劃、ERP 和人力資源資訊系統）的過渡，從而全面提高營運效率。隨著團隊齊心協力並向客戶展示 DLH 企業的全方位能力，我們擴大的市場進入策略也在不斷發展。

And lastly, as you may recall, the Fiscal Responsibility Act of 2023 was enacted early in 2023. This increased the debt ceiling and allowed budget negotiations to begin for the next fiscal year. This includes providing initial funding targets for defense and nondefense agencies alike. Of course, there's always a possibility that we'll face another year that begin with a continuing resolution. But in any case, our programs and capabilities remain in high demand with strong bipartisan support.

最後，您可能還記得，《2023 年財政責任法案》於 2023 年初頒布。這提高了債務上限，並允許開始下一財政年度的預算談判。這包括為國防和非國防機構等提供初始資金目標。當然，我們總有可能面臨新的一年，並以持續的解決方案開始。但無論如何，在兩黨的大力支持下，我們的計畫和能力仍然受到很高的需求。

We believe the outlook is positive for fiscal 2024 and numerous opportunities to grow our top line and continue to improve the company's underlying results. As a reminder, DLH has access to many billion-dollar plus IDIQ contract vehicles that allow us to compete on more value-added agency work than ever before. Also, the White House fiscal '24 -- 2024 preliminary budget called for historic investments in research, artificial intelligence and machine learning and digital transformation areas which would also boost our growth trajectory and bottom line performance. Our highly differentiated capabilities, broad area -- a broad array of contracts and diversified suite of technology solutions make us a one-stop shop for advancing the government's goals of tomorrow, and we look forward to what fiscal 2024 will bring.

我們相信 2024 財年的前景是積極的，並且有大量機會來增加我們的收入並繼續改善公司的基本業績。謹此提醒，DLH 可以獲得許多價值超過 10 億美元的 IDIQ 合約工具，使我們能夠在比以往更多的增值代理工作上展開競爭。此外，白宮 24-2024 財年初步預算呼籲對研究、人工智慧、機器學習和數位轉型領域進行歷史性投資，這也將促進我們的成長軌跡和底線績效。我們高度差異化的能力、廣闊的領域——廣泛的合約和多樣化的技術解決方案套件使我們成為推進政府未來目標的一站式服務中心，我們期待 2024 財年將帶來什麼。

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

我想將電話轉給我們的財務長凱瑟琳約翰布爾 (Kathryn JohnBull)。凱瑟琳？

Thank you, Zach, and good morning, everyone. We're pleased to report our third quarter results for fiscal 2023.

謝謝你，扎克，大家早安。我們很高興報告 2023 財年第三季業績。

Turning to Slide 7. I wanted to once again begin by showing the adjusted results I'll be speaking about today. While current year metrics require no adjustments, we are providing financial data for fiscal 2022 with and without the short-term FEMA contracts in Alaska that we've discussed in the past. A full reconciliation of this information is also included in the back of the presentation as well as in our press release and associated filings.

轉向幻燈片 7。我想再次開始展示我今天要討論的調整後的結果。雖然本年度的指標不需要調整，但我們提供了 2022 財年的財務數據，無論是否簽訂了我們過去討論過的阿拉斯加短期 FEMA 合約。這些資訊的完整核對也包含在簡報的後面以及我們的新聞稿和相關文件中。

Slide 8 shows the details in graphic form. Adjusted revenue rose 43% to just over $102 million this quarter from $71.5 million last year. We're obviously very pleased to have officially crossed the $100 million quarterly revenue threshold for the first time, excluding our prior FEMA-related work. Adjusted income from operations was $7.1 million for the quarter versus $6.5 million in the prior year period, an increase of 9%. As a percent of revenue, the company reported an operating margin of 7% in fiscal '23 versus 10.7% in fiscal '22, reflecting higher noncash depreciation and amortization expense as a result of the GRSi acquisition.

投影片 8 以圖形顯示了詳細資訊。本季調整後營收成長 43%，從去年的 7,150 萬美元增至略高於 1.02 億美元。我們顯然非常高興首次正式突破 1 億美元的季度收入門檻（不包括我們先前與 FEMA 相關的工作）。本季調整後的營運收入為 710 萬美元，而去年同期為 650 萬美元，成長 9%。以佔收入的百分比計算，該公司報告 23 財年的營業利潤率為 7%，而 22 財年為 10.7%，反映出收購 GRSi 導致非現金折舊和攤銷費用增加。

Interest expense was $4.9 million in the fiscal third quarter of 2023 versus $0.5 million in the prior year period, reflecting higher debt outstanding due to the transaction -- acquisition of GRSi. The effective interest rate for cash interest paid in the third quarter of 2023 was 8.64%. DLH recorded a provision of $0.5 million and $1.7 million, respectively, for tax expense during the third quarters of fiscal '23 and '22.

2023 財年第三季的利息支出為 490 萬美元，而去年同期為 50 萬美元，反映出因收購 GRSi 交易而導致的未償債務增加。 2023年第三季支付的現金利息實際利率為8.64%。 DLH 在 2023 財年和 22 財年第三季分別撥備了 50 萬美元和 170 萬美元的稅務費用。

We reported net income in the third quarter of approximately $1.7 million or $0.12 per diluted share versus $4.9 million or $0.34 a share last year. Adjusted EBITDA for the 3 months ended June 30, 2023, was approximately $11.4 million versus $8.4 million in the prior year period, an increase of 36%. As a percentage of sales, adjusted EBITDA margin was 11.1% versus 11.7% in the prior year period reflecting the contribution of more broadly differentiated capabilities through which we expect to earn better returns over time.

我們公佈的第三季淨利潤約為 170 萬美元，即稀釋後每股收益 0.12 美元，而去年為 490 萬美元，即每股收益 0.34 美元。截至 2023 年 6 月 30 日的三個月調整後 EBITDA 約為 1,140 萬美元，而去年同期為 840 萬美元，成長 36%。調整後EBITDA 利潤率佔銷售額的百分比為11.1%，而去年同期為11.7%，反映出更廣泛的差異化能力的貢獻，我們預計隨著時間的推移，我們將透過這些能力獲得更好的回報。

The company generated $15 million in operating cash year-to-date versus $8.3 million on an adjusted basis in the prior year period. As we will discuss on Slide 10, we believe our ability to produce strong cash flow from operations will allow the company to reduce our debt, thereby reducing interest expense and providing meaningful earnings growth to our shareholders.

該公司今年迄今產生了 1,500 萬美元的營運現金，而去年同期調整後的營運現金為 830 萬美元。正如我們將在幻燈片 10 中討論的那樣，我們相信，我們從營運中產生強勁現金流的能力將使公司能夠減少債務，從而減少利息支出，並為我們的股東帶來有意義的獲利成長。

Slide 9 gives an overview of key metrics for the company in terms of year-over-year improvement. The acquisition of GRSi has bolstered our top line and EBITDA performance, although the impact of noncash depreciation and amortization largely related to acquired intangibles, offset some of that progress from a GAAP earnings perspective. Importantly, the company showed progress sequentially from the second quarter, and we remain on track for additional underlying improvement going forward. While noncash depreciation and amortization expense will continue to be high, we are working hard to delever the balance sheet and reduce interest expense in tandem.

幻燈片 9 概述了公司同比改進的關鍵指標。收購 GRSi 提振了我們的營收和 EBITDA 業績，儘管非現金折舊和攤銷的影響主要與收購的無形資產有關，從 GAAP 收益的角度來看，抵消了部分進展。重要的是，該公司從第二季開始連續取得進展，我們仍有望在未來取得更多的根本改善。雖然非現金折舊和攤提費用將繼續居高不下，但我們正在努力減少資產負債表並同時減少利息費用。

Interest will be reduced through both mandatory and voluntary repayments, and we are actively managing our paydown strategy. With approximately 60% of debt carrying a fixed interest rate -- a fixed interest rates, near-term payments are all applied to our higher interest floating rate debt. Note that approximately $0.6 million of quarterly interest expense is noncash being the amortization of the financing arrangement figures.

利息將透過強制和自願還款來減少，我們正在積極管理我們的還款策略。由於大約 60% 的債務採用固定利率——固定利率，近期付款全部適用於我們利率較高的浮動利率債務。請注意，大約 60 萬美元的季度利息支出是非現金，是融資安排資料的攤提。

Slide 10 provides an update regarding our deployment of the company's ongoing cash flow generation to pay down debt and strengthen the balance sheet, reducing interest expense, as I mentioned. We paid off approximately $8.5 million of floating rate debt in fiscal quarter 3, ending the period with $195.8 million outstanding. This puts us squarely on track to meet our quarterly paydown targets and reduced debt by approximately $22 million this fiscal year from the level of almost $208 million following the acquisition of GRSi. We are actively managing our working capital needs and utilizing the favorable tax attributes of our acquisitions, along with stock comp plans to minimize income tax payments.

正如我所提到的，投影片 10 提供了有關我們部署公司持續現金流量產生以償還債務、強化資產負債表、減少利息支出的最新資訊。我們在第三財季償還了約 850 萬美元的浮動利率債務，期末未償債務為 1.958 億美元。這使我們有望實現季度還款目標，並將本財年的債務從收購 GRSi 後的近 2.08 億美元減少約 2,200 萬美元。我們正在積極管理我們的營運資金需求，並利用收購的有利稅收屬性以及股票補償計劃來最大限度地減少所得稅支付。

We continue to anticipate that our delevering strategy will leave us with between $185 million and $187 million of debt at fiscal year-end, and we expect to pay down even greater amounts in fiscal '24.

我們仍然預計，我們的去槓桿化策略將在財年結束時給我們留下 1.85 億至 1.87 億美元的債務，並且我們預計將在 24 財年償還更多金額。

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

我對財務報表的討論到此結束。現在，我想將電話轉給我們的接線生詢問問題。

(Operator Instructions) At this time, we will take our first question, which will come from Joe Gomes with NOBLE Capital.

（操作員說明）此時，我們將提出第一個問題，該問題將由 NOBLE Capital 的 Joe Gomes 提出。

Congrats on the earnings. So I wanted to just start off, Zach, you mentioned about the IDIQs as you guys have won recently and it looks -- in some of your prepared remarks in the earnings release, you talked about some of the difficult environment. Just trying to get a better idea of how you see some of those bigger IDIQs? When are they really going to start putting out opportunities for you to bid on new awards?

恭喜發財了。所以我想首先，扎克，你提到了 IDIQ，因為你們最近贏得了勝利，看起來 - 在你在財報發布中準備的一些言論中，你談到了一些困難的環境。只是想更了解您如何看待一些較大的 IDIQ？他們什麼時候真正開始為您提供競標新獎項的機會？

Great question, Joe. Those are always very material to our ability to drive that organic growth, as you will know. I'm actually pretty encouraged by the most -- in particular, our most recent lines, the NHLBI contractors, one in which -- it's bringing new opportunities for new workforce, but we're in a position of really leveraging a real strong track record that we've had with that particular customer. Particularly within the competitive environment. While it is a multiple award contract, we have over the last 4, 5 years, exhibited a real, real strong ability to have a higher win rate in this community. So we're hoping that with our valued enterprise capabilities that, that will continue.

好問題，喬。如您所知，這些對於我們推動有機成長的能力始終非常重要。事實上，我對最令人鼓舞的——特別是我們最近的生產線，NHLBI 承包商，其中之一——它為新勞動力帶來了新的機會，但我們處於真正利用真正強大的軌道的位置記錄我們與該特定客戶的關係。尤其是在競爭激烈的環境下。雖然這是一份多重獎勵合同，但我們在過去的 4、5 年裡，展現出了真正強大的能力，能夠在這個社區獲得更高的勝率。因此，我們希望憑藉我們寶貴的企業能力，這種情況能夠持續下去。

We have been disappointed as you all know, with the government's slowdown up until relatively recently as it relates to issuing new work on our previous IDIQs. I think I mentioned to you before, last time that our Defense Health Agency, Omnibus 4 IDIQ still has yet to issue the first request for a proposal. And we have been on standby with a real strong team for quite some time. That still continues to be the case, but we are starting to hear some -- we've been very proactive on that, and we're starting to hear that they are prepared, they're getting closer and closer to prepared to issue a few of those.

眾所周知，我們對政府的放慢速度感到失望，直到最近才開始，因為這與我們之前的 IDIQ 發布新工作有關。我想我之前曾向您提到過，上次我們的國防衛生局 Omnibus 4 IDIQ 仍未發出第一個提案請求。我們已經與一支真正強大的團隊待命相當長一段時間了。情況仍然如此，但我們開始聽到一些消息——我們在這方面一直非常積極主動，我們開始聽到他們已經做好準備，他們越來越接近準備發布其中很少。

Similarly, we've had just slower than anticipated than government announced work on our -- some of our other ones within NIH.

同樣，我們在 NIH 內的一些其他工作的進展速度比政府宣布的要慢。

And then lastly, as you know, many of us across the industry, we're anxiously looking for the government to resolve their process on the largest would be IDIQs, the CIO-SP4, it is where the biomedical research technology work is for largely health and human services agency is to be conducted, one that has been very strategic for DLH. We're fortunate that in the heritage contract, the -- our GRSi has some presence and some opportunities to pursue, but those will expand once CIO-SP4 before gets resolved. It has been delayed by I think, over 100 protests, largely by some of the small business partners. And that has slipped any opportunities for us to prime any of the unrestricted work that we've had our eyes on for a better part of the year.

最後，如您所知，我們整個行業的許多人都在焦急地尋求政府解決最大的 IDIQ（CIO-SP4）流程，這是生物醫學研究技術工作主要進行的地方。衛生與公眾服務機構將成立，這對DLH 來說非常具有戰略意義。我們很幸運，在遺產合約中，我們的 GRSi 有一些存在和一些追求的機會，但一旦 CIO-SP4 得到解決，這些機會就會擴大。我想，它已經被 100 多次抗議活動推遲了，其中大部分是由一些小企業夥伴發起的。這讓我們失去了任何機會來啟動今年大部分時間我們關注的不受限制的工作。

But the upside of that is we do think that, like I said, with the approval, getting beyond the Budget Control Act that should give some of our agency's greater clarity and budget and the ability to issue some of the recurring work.

但這樣做的好處是，正如我所說，我們確實認為，隨著批准，超越《預算控制法案》，這應該使我們的一些機構的預算更加清晰，並有能力發布一些經常性工作。

Okay. Great. Thanks for that, that update. And then on the VA, obviously, we've talked about this in the past. You're on continuing work there, I think, through October on 1 of the contracts, in November on the other on the bridge contracts. Just wondering kind of an update, if any, on the VA process there?

好的。偉大的。謝謝你的更新。然後在 VA 上，顯然我們過去已經討論過這個問題。我認為，你將繼續在那裡工作，直到 10 月，其中一份合同，11 月，另一份過渡合約。只是想知道 VA 流程是否有更新（如果有）？

Yes. Still no definitive actions as you know, and for the benefit of the audience, we have been on -- will effectively bridge contracts since November of 2016 for the -- they have applied 2 strategies relative to the acquisition approach to date since 2016. And they have -- based upon market conditions and other factors, they have continued to reevaluate that acquisition strategy.

是的。如您所知，仍然沒有明確的行動，為了觀眾的利益，我們自 2016 年 11 月以來一直在有效地彌合合同，自 2016 年以來，他們已經應用了 2 種與收購方法相關的策略。他們根據市場狀況和其他因素，繼續重新評估收購策略。

Proposals have been in since the beginning of the year, largely through services able, veteran and small businesses. We are continuing to participate there in a very meaningful way as well as we're on standby should they elect to once again revisit that acquisition strategy and to reissue those in a unrestricted environment. So we are very committed to continuing to support our veterans in a distinguished way, delivering a high degree of customer satisfaction as we have for over a decade now represented by, of course, the J.D. Power Awards and other indicators of a high degree of customer satisfaction.

自今年年初以來，提案就已提出，主要是透過有能力提供服務、經驗豐富的企業和小型企業提出的。我們將繼續以非常有意義的方式參與其中，並且我們隨時待命，以防他們選擇再次重新審視該收購策略並在不受限制的環境中重新發行這些策略。因此，我們非常致力於繼續以傑出的方式支持我們的退伍軍人，提供高度的客戶滿意度，就像我們十多年來所做的那樣，當然，J.D. Power 獎和其他高客戶滿意度指標代表了這一點滿意。

So no new news there yet, Joe, and -- but we were being optimistic that we're going to have an opportunity to continue to impress the agency as we go forward.

所以還沒有新消息，喬，但我們樂觀地認為，隨著我們的前進，我們將有機會繼續給該機構留下深刻的印象。

(Operator Instructions) Our next question will come from Brian Kinstlinger with Alliance Global Partners.

（操作員說明）我們的下一個問題將由 Alliance Global Partners 的 Brian Kinstlinger 提出。

Only 1 question. With the challenges, at least in the short term, you talked about in the government with awards and I don't know if you call them delays. Can you talk on the other side of the bid-and-proposal equation, are big commissions as many as last year? Are you bidding on a lot more work? Just maybe talk about the proposal activity and from a quantitative perspective or qualitative perspective?

只有 1 個問題。面對挑戰，至少在短期內，您在政府中談到了獎勵，我不知道您是否稱其為延誤。您能否談談投標和建議等式的另一面，大額佣金與去年一樣多嗎？您是否正在競標更多工作？也許只是從定量的角度或定性的角度談談提案活動？

Yes. Great question, Brian. Yes, outside of the IDIQs, we have really targeted, as we've described before, a pretty healthy bid-and-proposal backlog. A number of those have started to come forward. Of course, earlier in the year, as you heard us describe the end of December time frame and January, quite a bit on the re-compete activity associated with the VA work. But subsequent to that, we've seen in the last several months really pick up with regard to some -- a couple of our major bids. So we will be finding -- you will be seeing that our BMP activity, which really will start G&A we'll be pretty heavy during Q3. And certainly, as we move into the final stages of the fiscal year.

是的。好問題，布萊恩。是的，在 IDIQ 之外，正如我們之前所描述的，我們確實瞄準了相當健康的投標和建議積壓。其中一些人已經開始挺身而出。當然，今年早些時候，正如您聽到我們描述 12 月底的時間範圍和 1 月時，有很多關於與 VA 工作相關的重新競爭活動。但在此之後，我們在過去幾個月中看到一些主要出價確實有所回升。所以我們會發現——你會看到我們的 BMP 活動，這確實會啟動 G&A，我們在第三季度會非常繁忙。當然，當我們進入本財年的最後階段。

So yes, we're starting to see some of that pickup in the non-IDIQ arena which we're hopeful is going to be more of a trend over the course of the rest of this fiscal year. It would not be uncommon for a number of these agencies to feel the pressure at the end of this fiscal year. They have been very restrained and particularly in our areas within health and human services. Very restrained in many cases, issuing contracts where they do have funding, right? A lot of that again was due to the uncertainty prior to the Fiscal Act being deployed.

所以，是的，我們開始看到非 IDIQ 領域的一些回升，我們希望這將在本財年剩餘時間內成為一種趨勢。許多此類機構在本財年結束時感受到壓力並不罕見。他們一直非常克制，特別是在我們的衛生和公共服務領域。在很多情況下非常克制，在有資金的情況下簽訂合同，對吧？其中很大一部分原因又是由於財政法案實施前的不確定性。

Kathryn, anything to add there?

凱瑟琳，有什麼要補充的嗎？

No, I think that's right. Yes, slow start to the fiscal year, but encouraging recent trends.

不，我認為這是對的。是的，本財年開局緩慢，但近期趨勢令人鼓舞。

And our next question will be a follow-up from Joe Gomes of NOBLE Capital.

我們的下一個問題將由 NOBLE Capital 的 Joe Gomes 提出。

Just on the HSS or HHS Head Start program. You had a great start to the year when you look year-over-year. And it looks -- if I'm running the numbers correctly in the last couple of quarters, you've been below what you did the prior year. Is there anything specific going on with that program? Or is it just normal ebb and flow?

就在 HSS 或 HHS Head Start 計畫中。從年復一年的情況來看，你今年有一個好的開始。看起來——如果我在過去幾個季度正確地計算了數字，那麼你的表現已經低於前一年的水平。該計劃有什麼具體的進展嗎？還是只是正常的潮起潮落？

I would think of this year as the more indicative. If the program from a good news perspective has returned to its normal cadence of being pretty front-loaded in our fiscal year Q1 and Q2 because that aligns to many of the grantees who are, if not sponsored by us inside of school are certainly affiliated and trying to align around the school system cycle. So '22 definitely was extremely backloaded because remember, we were all still working our way through Omicron in Q1 and Q2 of our fiscal '22. And so things got pretty backloaded. That's what makes the comparison of organic revenue year-on-year for Q3 this year look a little lumpy because of some of the back end lift we got from head start this year as opposed to this year -- last year, pardon me, as opposed to this year returning to the normal layout of the contract performance.

我認為今年更具指示性。如果從好消息的角度來看，該計劃在我們的第一財年和第二季度恢復到了正常的節奏，因為這與許多受資助者的情況一致，如果不是由我們在學校內部贊助的話，他們肯定是附屬的，並且嘗試圍繞學校系統週期進行調整。因此，22 年肯定是極度落後的，因為請記住，我們在 22 財年的第一季和第二季仍在透過 Omicron 努力。所以事情變得相當嚴重。這就是為什麼今年第三季的有機收入年比看起來有點不穩定，因為今年我們從領先地位中獲得了一些後端提升，而不是去年——請原諒我，因為反對今年恢復合約履約的正常佈局。

At this time, there are no further questions in the queue. So I'll hand it back over to Mr. Zach Parker for any closing remarks.

此時，隊列中沒有其他問題。因此，我將把它交還給扎克·帕克先生進行總結發言。

Well, thank you all for your continued interest and support in DLH. As you probably have heard, we're really pretty excited about the company that we have become. As we -- I can assure you that so have our human capital assets and we really, really are looking forward to closing strong and really entering FY '24 with the type of trends and expectations that we shared before.

好的，感謝大家對 DLH 的持續關注與支持。正如您可能已經聽說的那樣，我們對我們所成為的公司感到非常興奮。我可以向您保證，我們的人力資本資產也是如此，我們真的非常期待以我們之前分享的趨勢和期望類型強勁地結束並真正進入 24 財年。

I might add that we are also going to be attending, if you look at our investor website attending a couple of investor conferences and I can provide some additional color around the business over the coming months.

我可能會補充一點，如果您查看我們的投資者網站，參加一些投資者會議，我們也將參加，我可以在未來幾個月內提供有關業務的一些額外資訊。

We look forward to engaging with you more in the near term and certainly look forward to closing out with you as we enter in the latter part of the year. Thank you all for your time. Have a blessed and productive day. Bye for now.

我們期待在短期內與您進行更多接觸，當然也期待在進入今年下半年時與您結束合作。感謝大家抽出寶貴的時間。祝你度過幸福而富有成效的一天。暫時再見。

Thank you.

謝謝。

The conference has now concluded. Thank you very much for attending today's presentation. You may now disconnect your lines.

會議現已結束。非常感謝您參加今天的演講。現在您可以斷開線路。