DLH Holdings Corp (DLHC) 2022 Q1 法說會逐字稿

Good morning, and welcome to the DLH Holdings Fiscal 2022 First Quarter Earnings Call. (Operator Instructions) Please note, this event is being recorded. I'd now like to turn the conference over to Chris Witty, Investor Relations Adviser. Please go ahead.

早安，歡迎參加 DLH Holdings 2022 財年第一季財報電話會議。 （操作員說明）請注意，正在記錄此事件。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。

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. I would now like to provide a brief safe harbor statement, which is also shown on Slide 2 of the presentation.

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。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 2 中。

This call may include forward-looking statements that relate to the company's outlook for fiscal 2022 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.

此次電話會議可能包括與本公司 2022 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。

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. 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.

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。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 like to now turn the call over to Zach.

接下來，總裁兼執行長 Zach Parker 將發表演說；接下來是財務長 Kathryn JohnBull，之後我們將開放提問。現在，我想將電話轉給扎克。

Please go ahead, Zach.

請繼續，扎克。

Thank you, Chris, and good morning, everyone. Welcome to our fiscal year 2022 first quarter conference call, and Happy New Year. As we hope you will agree, fiscal 2022 is off to a great start in DLH. I want to first give credit to our tremendous, committed leadership team and workforce for keeping focused on the missions of our customers. None of us would have predicted 2 years ago, that we would be discussing great results despite the challenges of the pandemic.

謝謝你，克里斯，大家早安。歡迎參加我們的 2022 財年第一季電話會議，新年快樂。正如我們希望您會同意的那樣，DLH 的 2022 財年有一個良好的開端。我首先要讚揚我們強大而忠誠的領導團隊和員工隊伍，他們始終專注於客戶的使命。兩年前，我們誰也不會預料到，儘管面臨疫情的挑戰，我們仍能討論出偉大的成果。

Beginning with Slide 3, I'll first provide a high-level overview of the quarter, which represented outstanding results for the company. Buoyed by our recent short-term contracts with FEMA, providing pandemic-related assistance in Alaska, revenue rose to $152.8 million in Q1.

從幻燈片 3 開始，我將首先提供本季的高級概述，該季度代表了公司的出色業績。受我們最近與 FEMA 簽訂的短期合約（在阿拉斯加提供與流行病相關的援助）的推動，第一季的收入增至 1.528 億美元。

Even excluding the $91.1 million of FEMA-related work, we saw a revenue growth of 7% year-over-year as our programs remained strong and in strong demand despite an ongoing continuing resolution in Washington. We posted operating income of $11.2 million, which equates to 7.3% of sales, including the impact of our lower margin Alaska contracts.

即使排除 9,110 萬美元的 FEMA 相關工作，我們的收入仍同比增長 7%，因為儘管華盛頓正在持續解決問題，但我們的計劃仍然強勁且需求強勁。我們公佈的營業收入為 1,120 萬美元，相當於銷售額的 7.3%，其中包括利潤率較低的阿拉斯加合約的影響。

First quarter earnings were $0.55 per share or $0.22 without the FEMA work, reflecting the value of our technology offerings and highly credentialed staff. A reconciliation of the numbers is in the back of this presentation. We also paid down an additional $3.9 million of our term debt loan this quarter, further delevering the balance sheet and closed out December with a backlog of $633.6 million.

第一季每股收益為 0.55 美元，如果沒有 FEMA 的工作，每股收益為 0.22 美元，這反映了我們的技術產品和高素質員工的價值。本簡報的後面有數字的核對錶。本季我們也額外償還了 390 萬美元的定期債務貸款，進一步降低了資產負債表的槓桿率，並在 12 月結束時積壓了 6.336 億美元。

Turning to Slide 4. I'd like to give an update on our markets, applications and advanced capabilities. We continue to serve the federal arenas that will define the next decade of public and military health investment, and we've built a strong and growing position across a number of enhanced-emerging-technology offerings. Demand for our services in existing and adjacent markets continues to expand due to an increased emphasis across the board on advanced data analytics and digital transformation.

轉向投影片 4。我想介紹一下我們的市場、應用程式和高級功能的最新情況。我們將繼續為聯邦領域提供服務，這將決定未來十年的公共和軍事衛生投資，並且我們在許多增強型新興技術產品中建立了強大且不斷增長的地位。由於對高階數據分析和數位轉型的全面重視，現有和鄰近市場對我們服務的需求持續擴大。

DLH is an established provider of innovative solutions for medical assistance and diagnostics, including telehealth and pharmaceutical systems and with our scientific and research capabilities, we can help the federal government effectively assess and respond to current and future health challenges across the nation.

DLH 是醫療援助和診斷創新解決方案（包括遠距醫療和製藥系統）的知名提供者，憑藉我們的科學研究能力，我們可以幫助聯邦政府有效評估和應對全國當前和未來的健康挑戰。

At the same time, our advanced capabilities in digital transformation include experience in IT infrastructure and modernization, cloud-based solutions and continuous software development, all with a health care focus. And we possess robust capabilities in data analytics and cybersecurity, providing a large-scale management services that leverage technology with highly credentialed subject matter experts.

同時，我們在數位轉型方面的先進能力包括 IT 基礎設施和現代化方面的經驗、基於雲端的解決方案和持續軟體開發，所有這些都以醫療保健為重點。我們在資料分析和網路安全方面擁有強大的能力，提供大規模的管理服務，利用具有高度資格的主題專家的技術。

These focus areas in total are expected to benefit from the high demand going forward. And DLH believes we are -- we have the right people, proper expertise and customer relationships in place to drive growth in the quarters and years to come. In closing, the company is stepping up to the next level in terms of its offerings and the breadth of innovative solutions that we bring to bear.

這些重點領域預計將受益於未來的高需求。 DLH 相信我們擁有合適的人才、適當的專業知識和客戶關係來推動未來幾季和幾年的成長。最後，該公司在其產品和我們提供的創新解決方案的廣度方面正在邁向新的水平。

While the FEMA business will come to a close in quarter 2, DLH is well positioned to have a highly successful year with a strong balance sheet, long-standing partnerships with key agencies and an exciting array of technology applications.

雖然FEMA 業務將在第二季度結束，但DLH 憑藉強大的資產負債表、與主要機構的長期合作夥伴關係以及一系列令人興奮的技術應用，已做好充分準備，度過一個非常成功的一年。

Although we are mindful that the federal budgetary uncertainties need to be resolved in the near future, we are well on our way to another year of solid organic growth and customer expansion and continue looking at possible acquisition opportunities that can further accelerate our top line growth going forward.

儘管我們意識到聯邦預算的不確定性需要在不久的將來得到解決，但我們正穩步邁向又一年的穩健有機增長和客戶擴張，並繼續尋找可能的收購機會，以進一步加速我們的營收增長向前。

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

現在，我想將電話轉給我們的財務長 Kathryn JohnBull。凱瑟琳？

Thank you, Zach, and good morning, everyone. We're pleased to report such a great start to fiscal 2022. Turning to Slide 6. We posted revenue of $152.8 million for the 3 months ended December 31, 2021, versus $57.9 million in the prior year's first quarter. The growth reflects the impact of approximately $91.1 million in revenue tied to the Alaska FEMA contracts, as Zach discussed, along with a 7% revenue increase across the other parts of our business. The majority of the Alaska contracts have been fulfilled, such that we see approximately $30 million of additional revenue during Q2 and none thereafter. If additional revenue was awarded based on pandemic needs in the region, we will let our investors know.

謝謝你，扎克，大家早安。我們很高興地報告2022 財年有一個良好的開端。轉向幻燈片6。我們公佈截至2021 年12 月31 日的三個月的收入為1.528 億美元，而去年第一季的收入為5790 萬美元。正如 Zach 所討論的，這一增長反映了與阿拉斯加 FEMA 合約相關的約 9,110 萬美元收入的影響，以及我們業務其他部分 7% 的收入成長。大部分阿拉斯加合約已經履行，因此我們在第二季度看到大約 3000 萬美元的額外收入，此後就沒有了。如果根據該地區的流行病需求授予額外收入，我們將告知投資者。

Turning to Slide 7. Income from operations was $11.2 million for the fiscal 2022 first quarter versus $3.6 million last year, again reflecting the additional short-term FEMA business.

轉向投影片 7。2022 財年第一季的營運收入為 1,120 萬美元，而去年為 360 萬美元，再次反映了額外的短期 FEMA 業務。

Operating margins improved to 7.3% from 6.3% in fiscal 2021, with the current year results, including the impact from lower-margin Alaska work, but at the same time, reflecting a larger contribution of time and materials programs in the remaining business, which generally yields stronger returns than cost reimbursable contracts.

營業利潤率從 2021 財年的 6.3% 提高至 7.3%，本年度業績包括利潤率較低的阿拉斯加工作的影響，但同時反映出剩餘業務中時間和材料計劃的更大貢獻，這通常比可償還成本的合約產生更高的回報。

Interest expense was $0.7 million in the first fiscal quarter of 2022 versus $1.1 million in the prior year period, reflecting lower debt outstanding. DLH recorded a provision of $2.7 million and $0.7 million for tax expense during the first quarters of fiscal 2022 and fiscal 2021, respectively. We reported net income in the first quarter of approximately $7.8 million or $0.55 per diluted share versus $1.8 million or $0.13 a share last year.

2022 年第一財季的利息支出為 70 萬美元，去年同期為 110 萬美元，反映出未償債務減少。 DLH 在 2022 財年第一季和 2021 財年第一季分別提列了 270 萬美元和 70 萬美元的稅務費用撥備。我們報告第一季淨利潤約為 780 萬美元，即稀釋後每股 0.55 美元，而去年為 180 萬美元，即每股 0.13 美元。

Excluding the Alaska business, non-GAAP earnings for the first fiscal quarter of 2022 were $3.1 million or $0.22 per diluted share. A reconciliation of all these results is included in the back of this presentation.

不包括阿拉斯加業務，2022 年第一財季的非 GAAP 收益為 310 萬美元，或攤薄後每股收益 0.22 美元。所有這些結果的核對包含在本簡報的後面。

Turning to Slide 8. EBITDA for the first quarter of fiscal 2022 was $13.2 million versus $5.7 million in the prior year period due to the reasons I discussed above. As a percent of sales, revenue -- EBITDA rose to 8.6% this quarter versus 9.8% last year. But excluding $6.3 million related to our Alaska business, EBITDA for our ongoing contract portfolio was approximately $6.8 million or 11.1% as a percent of revenue in the fiscal of 2022 first quarter. A reconciliation of GAAP net income to EBITDA is provided in our earnings statement and at the back of this presentation.

轉向投影片 8。由於我上面討論的原因，2022 財年第一季的 EBITDA 為 1,320 萬美元，而去年同期為 570 萬美元。本季 EBITDA 佔銷售額、營收的百分比升至 8.6%，而去年為 9.8%。但不包括與阿拉斯加業務相關的 630 萬美元，我們正在進行的合約組合的 EBITDA 約為 680 萬美元，佔 2022 年第一季財年收入的 11.1%。我們的收益表和本簡報後面提供了 GAAP 淨利潤與 EBITDA 的調整表。

Slide 9 gives an updated snapshot of our debt position at the end of the first quarter. As of December 31, we had approximately $42.9 million of debt outstanding under our credit facilities versus $46.8 million at the end of fiscal 2021. We now have satisfied all mandatory principal payments on the loan facility through March 31 of 2024, but we will continue to reduce debt when feasible to strengthen the balance sheet going forward. This concludes my discussion of the financial statements.

第 9 張投影片提供了我們第一季末債務狀況的最新概況。截至12 月31 日，我們的信貸安排下的未償債務約為4,290 萬美元，而2021 財年末為4,680 萬美元。我們現已支付截至2024 年3 月31 日的貸款安排的所有強制性本金付款，但我們將繼續在可行的情況下減少債務，以加強未來的資產負債表。我對財務報表的討論到此結束。

With that, I would now like to turn the call over to our operator for questions.

現在，我想將電話轉給我們的接線生詢問問題。

(Operator Instructions)

（操作員說明）

Our first question today comes from Brian Kinstlinger with Alliance Global Partners.

我們今天的第一個問題來自 Alliance Global Partners 的 Brian Kinstlinger。

Great -- great first quarter here. Did I hear right, excluding the FEMA contracts that your EBITDA margin was 11% versus 8% a year ago? And if that's right, can you just describe the factors that drove that? I take it some of it's mix, but I also figure you're paying your people more in this market. So just maybe go through the dynamics if that was -- if I did hear that right.

太棒了——第一季很棒。我沒聽錯吧，不包括 FEMA 合同，你們的 EBITDA 利潤率為 11%，而一年前為 8%？如果這是正確的，您能描述一下推動這一趨勢的因素嗎？我認為其中有一些因素，但我也認為在這個市場上你給員工的薪水更高。所以，如果我沒聽錯的話，也許可以回顧動態。

Yes. You did hear that right, Brian. Thanks for joining us. So EBITDA as a percent of revenue for the 3 months last year was 9.8% from 11.1% this 3 months, excluding Alaska. And the improvement comes from a couple of things, as you suggested, it's the contract mix where we had a healthier proportion of the revenue delivered from time and materials largely and a little bit of fixed fee-for-service contracts by last year where a stronger portion of the mix was from cost reimbursable work.

是的。你沒聽錯，布萊恩。感謝您加入我們。因此，去年 3 個月的 EBITDA 佔收入的百分比從今年 3 個月的 11.1% 增加到 9.8%（不包括阿拉斯加）。正如您所建議的，這種改進來自於幾件事，那就是合約組合，其中我們在很大程度上來自時間和材料的收入中所佔的比例更健康，並且到去年有一點固定的按服務收費合同，其中較大的一部分來自可償還費用的工作。

But secondarily, the operating leverage we've got on our indirect expenses improved as the revenue base grew as well. And so the 2 of those together yielded that strong EBITDA performance for the quarter.

但其次，隨著收入基礎的成長，我們間接費用的營運槓桿也有所改善。因此，這兩者共同帶來了本季強勁的 EBITDA 表現。

Okay. And then can you talk about your pipeline? Are there any other short or long-term contracts that are COVID related? Of course, not including the existing Alaska or CDC contracts you have where you're doing research on the long-term impacts.

好的。然後你能談談你的管道嗎？是否還有其他與新冠疫情相關的短期或長期合約？當然，不包括您正在研究長期影響的現有阿拉斯加或疾病預防控制中心合約。

I'm just wondering, is there a pipeline of similar contracts? Or are those slowly subsiding as Omicron seems to be getting a little bit better?

我只是想知道，是否有類似合約的管道？或者隨著 Omicron 似乎有所好轉，這些問題正在慢慢平息嗎？

Great question, Brian. And again, thank you for your participation. The answer is yes to both. There are -- we are in discussions on short-term -- short-term impact. Certainly, as Omicron starts to cede a bit. There is a look at potential additional variants and what sort of therapeutics, we believe might be more germane as COVID continues to morph.

好問題，布萊恩。再次感謝您的參與。兩者的答案都是肯定的。我們正在討論短期影響。當然，隨著 Omicron 開始做出一些讓步。我們正在研究潛在的其他變異體以及什麼樣的治療方法，我們認為隨著新冠病毒的繼續發展，可能會更有意義。

While at the same time, we are seeing that the government is starting to think about longer-term research projects associated with it as well. So there's a little bit of both. The biggest challenge has been -- for all of us in GovCon is the government acquisition folks being able to get those contracts out in a -- as you might imagine, in a CR environment, it's very difficult to get new contracts out.

同時，我們看到政府也開始考慮與之相關的長期研究計畫。所以兩者都有一點。對於 GovCon 中的所有人來說，最大的挑戰是政府採購人員能夠在 CR 環境中獲得這些合同，正如您可能想像的那樣，很難獲得新合約。

Sometimes you're using more novel contracts, certainly for large [bias] things like OTAs. But we're hopeful that the discussions that we're hearing and the customers' interest will turn into solicitations.

有時，您會使用更新穎的合約，尤其是針對 OTA 之類的大[偏差]事物。但我們希望我們聽到的討論和客戶的興趣能夠轉化為招標。

Great. I guess 2 more. The first one is as it relates to challenges in recruiting talent, has that challenge subsided at all? And secondarily, has it caused any lost revenue? Meaning, have you been able to fill in or fully staff all your contracts?

偉大的。我猜還有2個。第一個是與招募人才的挑戰有關，這個挑戰是否已經平息了？其次，它是否造成了任何收入損失？意思是，您是否能夠填寫或充分配備所有合約？

We have seen some erosion as the rest of the nation has. As you know, The Great Resignation has placed a real challenge for the labor market across the field. And we are seeing some of that. We're experiencing some of that on some of our contracts, not only for a smaller labor-based but also from time to time, COVID-induced absences. So we're continuing to manage that. As you know, we have stepped up our investment in human capital management within the business that involves both retention and attracting of new talent.

與全國其他地區一樣，我們也看到了一些侵蝕。如您所知，「大辭職」給整個領域的勞動市場帶來了真正的挑戰。我們正在看到其中的一些。我們在一些合約中遇到了一些這樣的情況，不僅是針對較小的勞動力，而且時不時地還存在因新冠肺炎而導致的缺勤。因此，我們將繼續對此進行管理。如您所知，我們加大了對業務內人力資本管理的投資，涉及保留和吸引新人才。

But yes, we have seen a small impact thus far through Q1 of the -- what we're seeing across the nation.

但是，是的，到目前為止，我們在第一季已經看到了全國範圍內所看到的輕微影響。

Great. Lastly, if you can just talk about your M&A pipeline. And as you look, what are management's priorities in terms of what you hope a target will bring DLHC?

偉大的。最後，您能談談您的併購管道嗎？正如您所看到的，就您希望目標對 DLHC 帶來的影響而言，管理層的優先事項是什麼？

Yes, let me just kick off that. We have -- we are opening our aperture in that regard. Strategically, Kathryn and I have really felt that as you may be reading that the conclusion of this last fiscal year really represents the -- having satisfied our strategic plan, in particular phase -- the first phase of our strategic acquisitions plan. And we're looking at expanding our opportunities in the M&A arena. And Kathryn has led some activity over the recent month or so. And can talk about the pipeline more, Kathryn?

是的，讓我開始吧。我們已經——我們正在這方面打開我們的大門。從戰略上講，凱瑟琳和我確實感覺到，正如您可能正在讀到的那樣，上一財年的結束確實代表了我們戰略收購計劃的第一階段——已經滿足了我們的戰略計劃，特別是階段。我們正在考慮擴大我們在併購領域的機會。凱瑟琳在最近一個月左右領導了一些活動。凱瑟琳，可以多談談管道嗎？

The pipeline, we expect to continue to be quite healthy. There is quite a bit of activity out there. And our focus, as we've indicated. From our perspective, we closed our first phase of our acquisition strategy, which was principally focused on market presence in our target markets and has the beneficial effect of having some improvement and enhancing of our technology capabilities as well.

我們預計該管道將繼續保持健康狀態。那裡有相當多的活動。正如我們所指出的，我們的重點。從我們的角度來看，我們完成了收購策略的第一階段，該策略主要專注於我們目標市場的市場佔有率，並且還對我們的技術能力進行了一些改進和增強。

But from a perspective of our Phase 2 acquisition strategy, we're going to flip around those priorities. We think we've got good coverage in the relevant markets. Although, as Zach indicated, there are some definite adjacent markets that we continue to be keeping an eye on, but our primary emphasis from an acquisition strategy perspective of adding capabilities and really extending our reach in those relevant technologies that benefit our current customers and any potential future ones.

但從我們第二階段收購策略的角度來看，我們將改變這些優先事項。我們認為我們在相關市場有很好的覆蓋範圍。正如扎克所指出的，儘管我們繼續關註一些明確的相鄰市場，但從收購策略的角度來看，我們的主要重點是增加能力並真正擴大我們在那些有利於我們當前客戶和任何相關技術的領域的影響力。未來潛在的。

So digital transformation, AI/ML, the things that are really relevant modeling simulation, those things are applicable across the set of markets that we currently play in, and those that are near adjacent. So that's really going to be the primary lens through which we evaluate acquisitions, competitive acquisition opportunities.

因此，數位轉型、人工智慧/機器學習、那些真正相關的建模模擬的東西，這些東西適用於我們目前所處的市場以及鄰近的市場。因此，這確實將成為我們評估收購、競爭收購機會的主要視角。

(Operator Instructions)

（操作員說明）

Our next question comes from Joe Gomes with NOBLE Capital.

我們的下一個問題來自 NOBLE Capital 的 Joe Gomes。

Congratulations on a great quarter.

恭喜您度過了一個美好的季度。

Thank you, Joe.

謝謝你，喬。

So if we could just take a step back for a second on FEMA. I just want to kind of drill down on that just for a second here. So you got the 2 initial contracts. They were $107 million valued up to. They need the $35 million extension. So that's $142 million. You did $91 million in the quarter.

因此，我們是否可以在聯邦緊急事務管理局 (FEMA) 問題上退後一步。我只是想在這裡深入探討一下。所以你得到了兩份最初的合約。它們的估值高達 1.07 億美元。他們需要 3500 萬美元的延期。也就是 1.42 億美元。本季您的收入為 9,100 萬美元。

So that leaves, let's call it, $50-ish million from the headline, and you're saying that in the second quarter, you're thinking $30 million and then that's it. What happened to the other $20 million? Is that just not being filled? Or is there something else there?

因此，標題中剩下 5000 萬美元左右，而你說在第二季度，你想到的是 3000 萬美元，然後就這樣了。另外2000萬美元怎麼了？難道只是沒填滿嗎？或是還有其他東西嗎？

Yes. I think the awarded values are really function as a -- an estimate at a point in time. And as we all know, COVID is a fast-moving environment. And so from our perspective, our current visibility on the program and the needs from the customer in terms of the support we're providing, we expect to deliver an additional $30 million. Though they have funded or they have earmarked more than that in the event that they have additional surges or other variants or other things that could happen.

是的。我認為授予的值實際上是對某個時間點的估計值。眾所周知，新冠疫情是一個瞬息萬變的環境。因此，從我們的角度來看，我們目前對該計劃的了解以及客戶對我們提供的支援的需求，我們預計將額外提供 3000 萬美元。儘管他們已經提供了資金或指定了更多資金，以防出現額外的激增或其他變體或其他可能發生的事情。

We can only share with you the visibility based on the trend levels as we see it today. And that varies, we'll have to provide a further update.

我們只能根據我們今天看到的趨勢程度與您分享可見性。這會有所不同，我們必須提供進一步的更新。

And it's probably worth noting also, Joe, that the way this program is working through FEMA, it's the states actually drawing upon federal money that has been obligated for this effort, and it's contingent. So the states are actually working off of, as Kathryn indicated, predictions and contingencies as well.

喬，也許還值得注意的是，該計劃通過聯邦應急管理局實施的方式，實際上是各州利用聯邦資金來完成這項工作，而且這是有條件的。因此，正如凱瑟琳指出的那樣，各州實際上也在根據預測和突發事件開展工作。

And so -- and this could operate in either direction, like Kathryn indicated, right now, we're seeing with the cessation of Omicron that there's no indication, in particularly in Alaska, that it will be accelerating, but we'll all stay tuned. We certainly hope that remains the case.

因此，這可能會向任何一個方向運作，就像凱瑟琳指出的那樣，現在，隨著 Omicron 的停止，我們看到沒有跡象表明，特別是在阿拉斯加，它會加速，但我們都會留下來調整。我們當然希望情況仍然如此。

Okay. Great. And on that continued resolution since this seems to be dragging on a little longer than normal year. What -- from your perspective or from your looking at the potential programs that you were hoping to be awarded. What ones are most at risk of continuing to be pushed to the right? And does this have as this continues to go on, an impact on your 2 big VA contracts, which are currently operating under bridges?

好的。偉大的。關於持續的決議，因為這似乎比正常年份拖得更長一些。什麼——從您的角度或從您對您希望獲得的潛在項目的看法來看。哪些人最有可能繼續被推向右翼？隨著這種情況的繼續下去，這是否會對您目前正在橋樑中運營的兩份大型 VA 合約產生影響？

I would think that if the continued resolution is extended that maybe then for you guys that you will see just those 2 contracts also extended out another year. I wonder if you might just give a little comment on that.

我認為，如果繼續解決方案延長，也許對你們來說，你們會看到這兩份合約又延長了一年。我想知道你是否可以對此發表一點評論。

Sure. With regard to the CR, first of all, we're -- we have rated it as from a company standpoint, neutral to slightly positive, largely because the agencies that we serve are very, very strong with their mission and our budget stability is very strong accordingly. Both sides of the aisle are committed to the type of programs that we have in place supporting veterans, military and the underserved community.

當然。關於 CR，首先，我們從公司的角度對其進行了中立到略微積極的評級，這主要是因為我們服務的機構非常非常有使命感，而且我們的預算穩定因此非常強。兩黨都致力於支持我們現有的支持退伍軍人、軍隊和服務不足的社區的計劃。

Having said that, we're 12 of the last 13 budgets we've had to deal with CRs. And we're seeing frustration largely on the civilian side of the house. The DoD community and our DHA business is really pretty good -- has been pretty good at spending against the budget, while in the recent years, the civilian agencies have had challenges in executing and getting the full budgetary spend. So we've had -- we've seen some of that impact.

話雖如此，我們是過去 13 個必須處理 CR 的預算中的 12 個。我們看到的挫敗感主要集中在民用方面。國防部社區和我們的 DHA 業務確實相當不錯——在預算支出方面非常擅長，而近年來，民事機構在執行和獲得全額預算支出方面遇到了挑戰。所以我們已經看到了一些影響。

And COVID, of course, accelerates that because the CR -- during the CR period, the acquisition community had to do more on COVID than the steady-state business. We have continued to see 2 or 3 major programs slip to the right, new business opportunities for us.

當然，新冠疫情加速了這一進程，因為在 CR 期間，收購界必須在新冠疫情方面比穩態業務做更多的事情。我們繼續看到 2 或 3 個主要項目滑向右側，這為我們帶來了新的商機。

We usually find that when there's a case where there's some evolving scope in the work and it could be perceived as new. And again, we can only be hopeful that a couple of those request for proposals will come up in the near term. We are getting good body language, a good vibes from those customers that we should see something this fiscal year for a couple of our major programs, but we're on our third year and in a couple of cases for things slipping to the right.

我們通常會發現，當工作中存在一些不斷變化的範圍時，它可能會被視為新的。再次強調，我們只能希望其中一些徵求建議書能夠在短期內出現。我們得到了良好的肢體語言，來自那些客戶的良好共鳴，我們應該在本財年看到我們的幾個主要項目的一些東西，但我們已經進入了第三年，在一些情況下，事情滑向了正確的方向。

Of course, our CMOP contracts, as you referred to, with the VA, they're on their fifth year of sole-source bridges. Our first one expired in November of 2016. And so we're optimistic that we're going to continue on that business with the CR. We've -- these are missions that we have to address every day and every week to ensure that we get the appropriate services and products to our veterans and our clients remain just as vigorous. So we remain very optimistic that we'll continue with the VA support. And we're hopeful that we'll see some of our larger programs has slipped to the right start to come back this fiscal year.

當然，正如您所提到的，我們與 VA 的 CMOP 合約已經是第五年的獨家來源橋樑了。我們的第一份合約已於 2016 年 11 月到期。因此，我們樂觀地認為我們將繼續與 CR 開展這項業務。我們每天、每週都必須完成這些任務，以確保我們為退伍軍人提供適當的服務和產品，而我們的客戶仍然充滿活力。因此，我們對繼續獲得退伍軍人管理局的支持仍然非常樂觀。我們希望我們的一些大型專案能夠在本財年順利回歸。

Okay. And then maybe you can give us a little more detail on what drove the 7% ex-Alaska revenue increase? I noticed your revenues with health and human services were up almost 15% year-over-year to $23.1 million. What are the -- kind of color of those contracts that are driving that type of revenue increase?

好的。然後，也許您可以向我們提供更多細節，說明是什麼推動了阿拉斯加以外地區收入成長 7%？我注意到你們的健康和公共服務收入年增了近 15%，達到 2,310 萬美元。推動此類收入成長的合約的顏色是什麼？

Yes. It is, in general, expansion on current contracts as well as some of the awards we had late in fiscal 2021, like the CDC DDAP program that we announced last August as well as a bit of starting to return to, I hesitate to call it normal, but maybe "around the word normal" return to activities in our Head Start program. So those kind of things that are both expanding on current programs as well as starting to return to some of the more normal operating patterns as well as the awards that we had late in fiscal '21.

是的。總的來說，這是對當前合約以及我們在 2021 財年末獲得的一些獎項的擴展，例如我們去年 8 月宣布的 CDC DDAP 計劃，以及開始回歸的部分，我猶豫是否稱其為正常，但也許「圍繞正常這個詞」回到我們的啟蒙計劃中的活動。因此，這些事情既擴大了當前計劃，又開始恢復到一些更正常的營運模式以及我們在 21 財年末獲得的獎項。

Okay. Great. And anything new on that you can share with us on Infinibyte, that program? It's something you've talked about a lot in the past. And how is that rolling out here? Are you hitting plans that you -- internal plans that you have for that? And maybe just give us a little more detail on that product.

好的。偉大的。您可以在 Infinibyte 這個程式上與我們分享什麼新內容嗎？這是你過去經常談論的事情。在這裡進展如何？您是否正在執行您的內部計劃？也許只是給我們更多有關該產品的詳細資訊。

Yes. No, I appreciate that. Yes, it's still a very exciting part of our toolkit for us as we may have shared earlier. Just relatively recently, we just added some resources to really focus on the go-to-market for that program. On the government side, there has been some slippage from some of the secure data analytics contracts and the cloud-based hosting contracts.

是的。不，我很欣賞這一點。是的，正如我們之前分享的那樣，它仍然是我們工具包中非常令人興奮的一部分。就在最近，我們剛剛添加了一些資源，以真正專注於該計劃的上市。在政府方面，一些安全資料分析合約和基於雲端的託管合約出現了一些下滑。

The things such as CMMC et cetera, that were to be incorporated in the contracts, the government is redefining some of those cybersecurity requirements. And -- but in the meantime, we're looking to try to take Infinibyte for a spin and not wait passively for that. So we have started to build a pretty good pipeline there.

CMMC 等內容將納入合同，政府正在重新定義其中一些網路安全要求。但同時，我們希望嘗試 Infinibyte，而不是被動等待。所以我們已經開始在那裡建立一個相當好的管道。

Our current customers, of course, that we've been hosting for quite some time are really getting some tremendous benefits. And we're also looking at very soon completing an audit that should hit the government fully -- our system is fully certified externally. Kathryn, you want to add anything to that?

當然，我們已經託管了相當長一段時間的現有客戶確實獲得了一些巨大的好處。我們也考慮很快完成對政府的全面審計——我們的系統得到了外部的全面認證。凱瑟琳，你想補充什麼嗎？

I think that's exactly right. We're in that final phase of going from being on the market to being fully federally certified through GFA.

我認為這是完全正確的。我們正處於從上市到通過建築面積獲得全面聯邦認證的最後階段。

Okay. Great. And one last one for me, if I may. Kathryn this is more for you. I know this has been a bugaboo the last 2 years on the accounts receivables. This time of the year, they were always running a little behind and you had to use some of your magic. It all eventually come in. But just trying to -- where are we standing today on the accounts receivable? Are you comfortable where they are? Are you seeing some extension on payments in this type of environment? Anything there would be great.

好的。偉大的。如果可以的話，還有最後一張給我。凱瑟琳，這更適合你。我知道這一直是過去兩年應收帳款的難題。每年的這個時候，他們總是落後一點，你必須使用一些魔法。這一切最終都會到來。但只是想——我們今天在應收帳款方面處於什麼位置？他們在的地方你舒服嗎？您是否看到在這種環境下付款有所延長？任何事情都會很棒。

Okay. Sure. Yes. No, we continue the pattern that we've seen in the last couple of years of the first -- our first quarter, which happens to end right around the year-end holidays and particularly this year with the way the calendar fell, I think people even exited a little bit earlier than they normally do for their Christmas and New Year holidays.

好的。當然。是的。不，我們延續了過去幾年第一季的模式——我們的第一季恰好在年底假期結束，尤其是今年，我認為隨著日曆的下降人們甚至比平常聖誕節和新年假期提前離開。

So as per that trend, we did have a peak in Q1. But as per our usual trend, that's already clearing and the congestions cleared that we've had a very healthy January and looks like a good start to February based on this morning in collection. So I expect our full year trend to be very much in line with our normal cash generation, strong cash generation that we generally deliver.

因此，根據這一趨勢，我們確實在第一季達到了高峰。但按照我們通常的趨勢，情況已經清除，擁堵也已消除，我們度過了一個非常健康的一月，並且根據今天早上的收集情況，看起來像是二月的良好開端。因此，我預計我們的全年趨勢將與我們正常的現金產生、我們通常提供的強勁現金產生非常一致。

The only variable for us this year is that we've moved from being able to shield our earnings with our NOLs. We fully consumed those during fiscal '21. So we will be taxpaying in fiscal '22. But you know that old saying, you got to be making money to pay taxes. So we are among the taxpaying population now, but we still nonetheless expect our net return, free cash flow to be very strong.

今年對我們來說唯一的變數是我們不再能夠透過 NOL 來保護我們的收入。我們在 21 財年完全消耗了這些。所以我們將在 22 財年繳稅。但你知道那句老話，你必須賺錢才能繳稅。因此，我們現在屬於納稅人群，但我們仍然預計我們的淨回報和自由現金流將非常強勁。

Kind of strange to be excited about having to pay taxes.

對納稅感到興奮有點奇怪。

(Operator Instructions)

（操作員說明）

Our next question today comes from [Victor Hernandez with Hernandez Capital].

今天我們的下一個問題來自[Victor Hernandez with Hernandez Capital]。

Congratulations on a great quarter. I had, I think, a simple question. On the statement of cash flows that you released, you had a line for deferred revenue. I wanted to see if you can give any details of what that line represents and what the impact would be on the full year?

恭喜您度過了一個美好的季度。我想，我有一個簡單的問題。在您發布的現金流量表上，您有一條遞延收入線。我想知道您能否詳細說明該線代表什麼以及對全年有何影響？

Sure. And so the deferred revenue and the use of cash for performance of deferred revenue really reflects the fact that right before the end of last fiscal year, we collected a very large, advanced payment from the State of Alaska for these FEMA contracts that we've talked about so much on this call. And so Q1's results just reflect the fact that we had to perform the obligations that we got the advanced payment for. And so we consumed that advance payment in the quarter, and we'll fully deliver against that by the time the program executes in Q2.

當然。因此，遞延收入和用於履行遞延收入的現金確實反映了這樣一個事實：就在上一財年結束之前，我們從阿拉斯加州收到了一筆非常大的預付款，用於我們已經簽訂的這些FEMA 合約。這次通話談了很多。因此，第一季的結果只是反映了這樣一個事實：我們必須履行我們收到預付款的義務。因此，我們在本季度消耗了預付款，並且在第二季度執行該計劃時，我們將完全交付預付款。

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

此時，問題隊列中已經沒有其他問題了。現在我想請帕克先生發表閉幕詞。

Well, thank you. I'd like to express my appreciation for those of you that are engaged both live and via the website. And also for those of you who will be checking it out off-line.

嗯，謝謝。我想對現場和透過網站參與的人們表示感謝。也適用於那些將離線查看的人。

We are looking forward to sharing additional information with you at our Annual Meeting of the Shareholders, which is scheduled for March 10. We're scheduled to be in New York provided that the pandemic allows us. We will look forward to meeting with not only you all, but with our Board of Directors at this session, and we'll give you additional color around the strategy in the business. Thank you all for joining us today. Have a blessed day.

我們期待在定於 3 月 10 日舉行的股東年會上與您分享更多資訊。如果疫情允許，我們計劃前往紐約。我們期待在本次會議上不僅與大家會面，而且還與我們的董事會會面，我們將為您提供有關業務策略的更多資訊。感謝大家今天加入我們。祝你有美好的一天。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。