Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-18492 | |
Entity Registrant Name | DLH HOLDINGS CORP. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1899798 | |
Entity Address, Address Line One | 3565 Piedmont Road, | |
Entity Address, Address Line Two | Building 3, | |
Entity Address, Address Line Three | Suite 700 | |
Entity Address, City or Town | Atlanta, | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30305 | |
City Area Code | 770 | |
Local Phone Number | 554-3545 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | DLHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,544,906 | |
Entity Central Index Key | 0000785557 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-30 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 61,555 | $ 51,459 | $ 180,913 | $ 158,495 |
Contract costs | 48,365 | 39,615 | 143,092 | 123,895 |
General and administrative costs | 6,237 | 6,323 | 18,522 | 18,497 |
Depreciation and amortization | 2,014 | 1,721 | 6,105 | 5,340 |
Total operating costs | 56,616 | 47,659 | 167,719 | 147,732 |
Income from operations | 4,939 | 3,800 | 13,194 | 10,763 |
Interest expense, net | 893 | 813 | 2,977 | 2,659 |
Income before income taxes | 4,046 | 2,987 | 10,217 | 8,104 |
Income tax expense | 1,166 | 863 | 2,956 | 2,352 |
Net income | $ 2,880 | $ 2,124 | $ 7,261 | $ 5,752 |
Net income per share - basic (in dollars per share) | $ 0.23 | $ 0.17 | $ 0.58 | $ 0.47 |
Net income per share - diluted (in dollars per share) | $ 0.21 | $ 0.16 | $ 0.54 | $ 0.44 |
Weighted average common stock outstanding | ||||
Basic (in shares) | 12,545 | 12,354 | 12,529 | 12,246 |
Diluted (in shares) | 13,655 | 13,228 | 13,694 | 13,050 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 739 | $ 1,357 |
Accounts receivable | 36,409 | 32,541 |
Other current assets | 3,632 | 3,499 |
Total current assets | 40,780 | 37,397 |
Equipment and improvements, net | 2,226 | 3,339 |
Operating lease right-of-use assets | 20,481 | 22,427 |
Deferred taxes, net | 0 | 37 |
Goodwill | 65,643 | 67,144 |
Intangible assets, net | 49,115 | 52,612 |
Other long-term assets | 506 | 606 |
Total assets | 178,751 | 183,562 |
Current liabilities: | ||
Debt obligations - current, net of deferred financing costs | 0 | 6,727 |
Operating lease liabilities - current | 2,186 | 2,045 |
Accrued payroll | 10,208 | 10,611 |
Accounts payable, accrued expenses, and other current liabilities | 32,630 | 28,578 |
Total current liabilities | 45,024 | 47,961 |
Debt obligations - long-term, net of deferred financing costs | 51,537 | 60,544 |
Operating lease liabilities - long-term | 19,944 | 21,620 |
Total long-term liabilities | 71,481 | 82,164 |
Total liabilities | 116,505 | 130,125 |
SHAREHOLDERS’ EQUITY | ||
Common stock, $0.001 par value; authorized 40,000 shares; issued and outstanding 12,545 and 12,404 at June 30, 2021 and September 30, 2020, respectively | 13 | 12 |
Additional paid-in capital | 87,415 | 85,868 |
Accumulated deficit | (25,182) | (32,443) |
Total shareholders’ equity | 62,246 | 53,437 |
Total liabilities and shareholders' equity | $ 178,751 | $ 183,562 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 12,545,000 | 12,404,000 |
Common stock, outstanding (in shares) | 12,545,000 | 12,404,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net income | $ 7,261 | $ 5,752 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,105 | 5,340 |
Amortization of deferred financing costs | 610 | 551 |
Stock-based compensation expense | 1,317 | 566 |
Deferred taxes, net | 2,177 | 1,987 |
Gain from lease modification | 0 | (121) |
Changes in operating assets and liabilities | ||
Accounts receivable | (3,868) | (6,409) |
Other current assets | (133) | (1,941) |
Accrued payroll | (403) | 636 |
Accounts payable, accrued expenses, and other current liabilities | 1,912 | 3,620 |
Other long-term assets/liabilities | 410 | 726 |
Net cash provided by operating activities | 15,388 | 10,707 |
Investing activities | ||
Business acquisition adjustment, net of cash acquired | 59 | 0 |
Purchase of equipment and improvements | (53) | (152) |
Net cash provided by (used in) investing activities | 6 | (152) |
Financing activities | ||
Repayment of secured term loan | (16,200) | (11,500) |
Payment of deferred financing costs | (43) | (3) |
Repurchased shares of common stock held as treasury stock | 0 | (211) |
Proceeds from issuance of common stock upon exercise of options | 231 | 27 |
Net cash used in financing activities | (16,012) | (11,687) |
Net change in cash and cash equivalents | (618) | (1,132) |
Cash and cash equivalents at beginning of period | 1,357 | 1,790 |
Cash and cash equivalents at end of period | 739 | 658 |
Supplemental disclosures of cash flow information | ||
Cash paid during the period for interest | 2,321 | 2,207 |
Cash paid during the period for income taxes | 396 | 432 |
Supplemental disclosures of non-cash activity | ||
Non-cash cancellation of common stock | $ 0 | $ 211 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative-effect adjustment for adoption of ASC 842 | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative-effect adjustment for adoption of ASC 842 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Beginning Balance (in shares) at Sep. 30, 2019 | 12,036,000 | 0 | |||||
Beginning Balance at Sep. 30, 2019 | $ 45,571 | $ (2) | $ 12 | $ 0 | $ 85,114 | $ (39,555) | $ (2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Expense related to director restricted stock unit (in shares) | 90,000 | ||||||
Expense related to director restricted stock unit | 260 | 260 | |||||
Expense related to employee stock-based compensation | 306 | 306 | |||||
Repurchases of common stock (in shares) | 28,000 | ||||||
Repurchases of common stock | (113) | $ (113) | |||||
Cancellation of common stock (in shares) | (117,000) | (28,000) | |||||
Cancellation of common stock | (98) | $ 113 | (211) | ||||
Exercise of stock options (in shares) | 345,000 | ||||||
Exercise of stock options | 27 | 27 | |||||
Net income | 5,752 | 5,752 | |||||
Ending Balance (in shares) at Jun. 30, 2020 | 12,354,000 | 0 | |||||
Ending Balance at Jun. 30, 2020 | 51,703 | $ 12 | $ 0 | 85,496 | (33,805) | ||
Beginning Balance (in shares) at Mar. 31, 2020 | 12,354,000 | 0 | |||||
Beginning Balance at Mar. 31, 2020 | 49,397 | $ 12 | $ 0 | 85,314 | (35,929) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Expense related to director restricted stock unit | 87 | 87 | |||||
Expense related to employee stock-based compensation | 95 | 95 | |||||
Net income | 2,124 | 2,124 | |||||
Ending Balance (in shares) at Jun. 30, 2020 | 12,354,000 | 0 | |||||
Ending Balance at Jun. 30, 2020 | $ 51,703 | $ 12 | $ 0 | 85,496 | (33,805) | ||
Beginning Balance (in shares) at Sep. 30, 2020 | 12,404,000 | 12,404,000 | 0 | ||||
Beginning Balance at Sep. 30, 2020 | $ 53,437 | $ 12 | $ 0 | 85,868 | (32,443) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Expense related to director restricted stock unit (in shares) | 78,000 | ||||||
Expense related to director restricted stock unit | 349 | 349 | |||||
Expense related to employee stock-based compensation | $ 968 | 968 | |||||
Exercise of stock options (in shares) | 63,000 | 63,000 | |||||
Exercise of stock options | $ 231 | $ 1 | 230 | ||||
Net income | $ 7,261 | 7,261 | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 12,545,000 | 12,545,000 | 0 | ||||
Ending Balance at Jun. 30, 2021 | $ 62,246 | $ 13 | $ 0 | 87,415 | (25,182) | ||
Beginning Balance (in shares) at Mar. 31, 2021 | 12,545,000 | 0 | |||||
Beginning Balance at Mar. 31, 2021 | 58,893 | $ 13 | $ 0 | 86,942 | (28,062) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Expense related to director restricted stock unit | 117 | 117 | |||||
Expense related to employee stock-based compensation | 356 | 356 | |||||
Exercise of stock options | 0 | ||||||
Net income | $ 2,880 | 2,880 | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 12,545,000 | 12,545,000 | 0 | ||||
Ending Balance at Jun. 30, 2021 | $ 62,246 | $ 13 | $ 0 | $ 87,415 | $ (25,182) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of DLH Holdings Corp. and its subsidiaries (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our"), all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In management's opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending September 30, 2021. Amounts as of and for the periods ended June 30, 2021 and June 30, 2020 are unaudited. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2020 filed with the Securities and Exchange Commission on December 7, 2020. |
Business Overview
Business Overview | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview The Company is a full-service provider of technology-enabled health and human services, providing solutions to three market focus areas: Defense and Veterans' Health Solutions, Human Solutions and Services, and Public Health and Life Sciences. We deliver domain-specific expertise, industry best-practices and innovations to customers across these markets leveraging seven core competencies: secure data analytics, clinical trials and laboratory services, case management, performance evaluation, system modernization, operational logistics and readiness, and strategic digital communications. The Company manages its operations from its principal executive offices in Atlanta, Georgia, and we have a complementary headquarters office in Silver Spring, Maryland. We employ over 2,200 skilled employees workin g in more than 30 locations throughout the United States and one location overseas. At present, the Company derives 99% of its revenue from agencies of the Federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors. A major customer is defined as a customer from whom we derive at least 10% of our revenues. Our three largest customers are the Department of Veteran Affairs ("VA"), the Department of Health and Human Services ("HHS"), and the Department of Defense ("DoD"). The following table summarizes the revenues by customer for the nine months ended June 30, 2021 and 2020, respectively: Nine Months Ended June 30, 2021 2020 (in thousands) Revenue Percent of total revenue Revenue Percent of total revenue Department of Veterans Affairs $ 83,010 46 % $ 74,402 47 % Department of Health and Human Services 66,748 37 % 73,263 46 % Department of Defense 22,103 12 % 943 1 % Customers with less than 10% share of total revenue 9,052 5 % 9,887 6 % Total Revenue $ 180,913 100 % $ 158,495 100 % |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for the application of U.S. GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") and other reference rates expected to be discontinued due to reference rate reform. ASU 2020-04 became effective on March 12, 2020 for all entities meeting certain criteria. The Company may elect to apply the amendments using a prospective approach through December 31, 2022. The Company is currently assessing the impact of electing this standard on its consolidated financial statements and related disclosures and does not expect the impact to be material. In April 2020, the FASB issued a Staff Q&A, Topic 842 and 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic in order to provide clarity regarding the accounting treatment for lease concessions provided as a result of COVID-19. Under existing lease guidance, changes to certain lease terms not specified in the original lease agreement require modification accounting treatment. To provide relief, the FASB Staff Q&A permits alternatives to modification accounting under Topic 842. For concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or our obligations as the lessee, we are not required to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the lease agreement and can elect to apply or not apply the lease modification guidance in Topic 842. In fiscal year 2021, we elected to account for lease concessions received for one of our operating leases as a resolution of a contingency, whereby we remeasured our lease liability and recorded the adjustment against the right-of-use asset, without reassessing lease classification or modifying the original discount rate. As a result of this election, our lease liability and right-of-use-asset decreased by less than $0.1 million. In August 2020, the FASB issued ASU 2020-06, which amends the measurement and disclosure of convertible instruments, contracts in an entity's own equity, and EPS guidance. The guidance can be adopted using a modified retrospective method or a fully retrospective method. The amendments are effective for fiscal years beginning after December 15, 2021 for public entities, excluding those that are smaller reporting companies. The Company does not expect the update to have a material impact on its consolidated financial statements and related disclosures. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill and intangible assets, interest rate swaps, stock-based compensation, right-of-use assets and lease liabilities, valuation allowances established against accounts receivable and deferred tax assets, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, accrued expenses, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximated fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. Long-Lived Assets Our long-lived assets include equipment and improvements, intangible assets, right-of-use assets, and goodwill. The Company continues to review long-lived assets for possible impairment or loss of value at least annually, or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit's carrying amount is greater than its fair value. Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Intangible assets (other than goodwill) are originally recorded at fair value and are amortized on a straight-line basis over their estimated useful lives of 10 years. Right-of-use assets are measured at the present value of future minimum lease payments, including all probable renewals, plus lease payments made to the lessor before or at lease commencement and indirect costs paid, less incentives received. Our right-of-use assets include long-term leases for facilities and equipment and are amortized over their respective lease terms. Goodwill At September 30, 2020, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $67 million. We performed a qualitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2020. For the nine months ended June 30, 2021, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Our assessment incorporated effects of the COVID-19 pandemic, which is not expected to have a meaningful impact on our financial results. Notwithstanding this evaluation, factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. Income Taxes The Company accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either June 30, 2021 or September 30, 2020. We report interest and penalties as a component of income tax expense. During the three and nine months ended June 30, 2021 and June 30, 2020, we recognized no interest and no penalties related to income taxes. Stock-Based Compensation The Company uses the fair value-based method for stock-based compensation. Options issued are designated as either an incentive stock option or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a Monte Carlo binomial and Black Scholes option pricing models, as appropriate to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to common stock. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. Earnings Per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method. Treasury Stock The Company periodically purchases its own common stock that is traded on public markets as part of announced stock repurchase programs. The repurchased common stock is classified as treasury stock on the consolidated balance sheets and held at cost. As of June 30, 2021 and September 30, 2020, the Company did not hold any treasury stock. Preferred Stock Our certificate of incorporation authorizes the issuance of "blank check" preferred stock with designations, rights and preferences as may be determined from time to time by our board of directors up to an aggregate of 5,000,000 shares of preferred stock. As of June 30, 2021 and September 30, 2020, the Company had not issued any preferred stock. Interest Rate Swap The Company uses derivative financial instruments to manage interest rate risk associated with its variable rate debt. The Company's objective in using these interest rate derivatives is to manage its exposure to interest rate movements and reduce volatility of interest expense. The gains and losses due to changes in the fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the underlying debt. Offsetting changes in fair value of both the interest rate swaps and the hedged portion of the underlying debt both are recognized in interest expense in the Consolidated Statements of Operations. The Company does not hold or issue any derivative instruments for trading or speculative purposes. Risks & Uncertainties Management continues to evaluate the impact of the COVID-19 pandemic on the industry, primarily through the introduction of additional regulations and restrictions. Due to the nature of our work, we believe that these impacts are mitigated and concluded that while it is reasonably possible that the virus could have a negative effect on the Company's financial position and the results of its operations, the specific impact is not readily determinable as of the date of these financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue over time when there is a continuous transfer of control to our customer. For our U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. When control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. For services contracts, we satisfy our performance obligations as services are rendered. We use a cost-based input method to measure progress. Contract costs include labor, material and allocable indirect expenses. For time-and-material contracts, we bill the customer per labor hour and per material, and revenue is recognized in the amount invoiced since the amount corresponds directly to the value of our performance to date. We consider control to transfer when we have a present right to payment. Essentially, all of our contracts satisfy their performance obligations over time. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications impact performance obligations when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue and profit cumulatively. Furthermore, a significant change in one or more estimates could affect the profitability of our contracts. We recognize adjustments in estimated profit on contracts in the period identified. For time-and-materials contracts, revenue is recognized to the extent of billable rates times hours delivered plus materials and other reimbursable costs incurred. Revenue for cost-reimbursable contracts is recorded as reimbursable costs are incurred, including an estimated share of the applicable contractual fees earned. Contract costs are expensed as incurred. Estimated losses are recognized when identified. Contract assets - Amounts are invoiced as work progresses in accordance with agreed-upon contractual terms. In part, revenue recognition occurs before we have the right to bill, resulting in contract assets. These contract assets are reported within receivables, net on our consolidated balance sheets and are invoiced in accordance with payment terms defined in each contract. Period end balances will vary from period to period due to agreed-upon contractual terms. Contract liabilities - Amounts are a result of billings in excess of costs incurred. These contract liabilities are reported within accounts payable, accrued expenses, and other current liabilities on our consolidated balance sheets. The following table summarizes the contract balances recognized on the Company's consolidated balance sheets: (in thousands) June 30, September 30, 2021 2020 Contract assets $ 6,084 $ 7,943 Contract liabilities $ 355 $ 200 Disaggregation of revenue from contracts with customers We disaggregate our revenue from contracts with customers by customer, contract type, as well as whether the Company acts as prime contractor or subcontractor. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following tables present our revenue disaggregated by these categories: Revenue by customer (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Department of Veterans Affairs $ 27,496 $ 24,783 $ 83,010 $ 74,402 Department of Health and Human Services 23,245 23,312 66,748 73,263 Department of Defense 7,601 270 22,103 943 Other 3,213 3,094 9,052 9,887 Total Revenue $ 61,555 $ 51,459 $ 180,913 $ 158,495 Revenue by contract type (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Time and Materials $ 46,790 $ 36,315 $ 137,492 $ 110,918 Cost Reimbursable 12,070 13,841 35,796 43,887 Firm Fixed Price 2,695 1,303 7,625 3,690 Total Revenue $ 61,555 $ 51,459 $ 180,913 $ 158,495 Revenue by whether the Company acts as a prime contractor or a subcontractor (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Prime Contractor $ 53,407 $ 47,649 $ 159,059 $ 147,464 Subcontractor 8,148 3,810 21,854 11,031 Total Revenue $ 61,555 $ 51,459 $ 180,913 $ 158,495 |
Leases
Leases | 9 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases We have leases for facilities and office equipment. Our lease liabilities are recognized as the present value of the future minimum lease payments over the lease term. Our right-of-use assets are recognized as the present value of the future minimum lease payments over the lease term plus lease payments made to the lessor before or at lease commencement less unamortized lease incentives and the balance remaining in deferred rent liability under ASC 840. Our lease payments consist of fixed and in-substance fixed amounts attributable to the use of the underlying asset over the lease term. Variable lease payments that do not depend on an index rate or are not in-substance fixed payments are excluded in the measurement of right-of-use assets and lease liabilities and are expensed in the period incurred. The incremental borrowing rate on our credit facility was used in determining the present value of future minimum lease payments. Some of our lease agreements include options to extend the lease term or terminate the lease. These options are accounted for in our right-of-use assets and lease liabilities when it is reasonably certain that the Company will extend the lease term or terminate the lease. The Company does not have any finance leases. As of June 30, 2021, operating leases for facilities and equipment have remaining lease terms of 1.5 to 9.8 years. The following table summarizes lease balances in our consolidated balance sheets at June 30, 2021 and September 30, 2020 (in thousands): June 30, September 30, 2021 2020 Operating lease right-of-use assets $ 20,481 $ 22,427 Operating lease liabilities, current $ 2,186 $ 2,045 Operating lease liabilities - long-term 19,944 21,620 Total operating lease liabilities $ 22,130 $ 23,665 The Company subleases a portion of one of its leased facilities. The sublease is classified as an operating lease with respect to the underlying asset. The sublease was assumed from the acquisition of Social & Scientific Systems, Inc. ("S3") in fiscal 2019. The sublease term is 5 years with two additional 1-year term extension options. For the three and nine months ended June 30, 2021 and June 30, 2020, total lease costs for our operating leases are as follows (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Operating $ 903 $ 834 $ 2,763 $ 3,399 Short-term 18 30 88 133 Variable 40 28 70 51 Sublease income (46) (70) (233) (198) Total lease costs $ 915 $ 822 $ 2,688 $ 3,385 The Company's future minimum lease payments as of June 30, 2021 are as follows: For the Fiscal Year Ending September 30, (in thousands) 2021 (remaining) $ 823 2022 3,501 2023 3,391 2024 3,251 2025 3,092 Thereafter 14,684 Total future lease payments 28,742 Less: imputed interest (6,612) Present value of future minimum lease payments 22,130 Less: current portion of operating lease liabilities (2,186) Long-term operating lease liabilities $ 19,944 Other information related to our leases are as follows: June 30, 2021 Weighted-average remaining lease term 8.5 years Weighted-average discount rate 6.00 % Three Months Ended Nine Months Ended June 30, June 30, (in thousands) Ref 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 815 $ 336 $ 2,483 $ 2,803 New lease liabilities, net of new right-of-use assets (a) $ — $ — $ — $ 245 Lease liabilities arising from obtaining right-of-use-assets (a) $ — $ — $ — $ 7,179 Ref (a): Changes resulted from an amended and remeasured operating lease |
Supporting Financial Informatio
Supporting Financial Information | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supporting Financial Information | Supporting Financial Information Accounts receivable (in thousands) June 30, September 30, Ref 2021 2020 Billed receivables $ 30,325 $ 24,598 Contract assets 6,084 7,943 Total accounts receivable 36,409 32,541 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 36,409 $ 32,541 Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at either June 30, 2021 or September 30, 2020. Other current assets (in thousands) June 30, September 30, 2021 2020 Prepaid insurance and benefits $ 891 $ 665 Other receivables 1,164 1,363 Other prepaid expenses 1,577 1,471 Other current assets $ 3,632 $ 3,499 Equipment and improvements, net (in thousands) June 30, September 30, Ref 2021 2020 Furniture and equipment $ 958 $ 958 Computer equipment 1,212 1,171 Computer software 4,353 4,341 Leasehold improvements 1,595 1,595 Total equipment and improvements 8,118 8,065 Less accumulated depreciation and amortization (a) (5,892) (4,726) Equipment and improvements, net $ 2,226 $ 3,339 Ref (a): Depreciation expense was $0.4 million and $0.5 million for the three months ended June 30, 2021 and 2020, respectively and $1.2 million and $1.7 million for the nine months ended June 30, 2021 and 2020, respectively. Intangible assets (in thousands) June 30, September 30, Ref 2021 2020 Intangible assets (a) Customer contracts and related customer relationships $ 62,281 $ 45,600 Covenants not to compete 522 480 Trade name 3,051 2,109 Acquired intangibles - IBA acquisition (b) — 16,223 Total intangible assets 65,854 64,412 Less accumulated amortization Customer contracts and related customer relationships (15,821) (11,150) Covenants not to compete (251) (212) Trade name (667) (438) Total accumulated amortization (16,739) (11,800) Intangible assets, net $ 49,115 $ 52,612 Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. The total amount of amortization expense was $1.6 million and $1.2 million for the three months ended June 30, 2021 and 2020, respectively and $4.9 million and $3.6 million for the nine months ended June 30, 2021 and 2020, respectively. Ref (b): Intangible assets reported at September 30, 2020 from the acquisition of IBA were based on an estimate and revised in the first quarter of fiscal 2021. A third party valuation firm valued the acquired intangibles to be the $17.7 million; $16.7 million was attributable to customer contracts and customer relationships, and $0.9 million to trade name, and $0.1 million to covenants not to compete. Estimated amortization expense for future fiscal years: (in thousands) 2021 (remaining) $ 1,646 2022 6,585 2023 6,585 2024 6,585 2025 6,585 Thereafter 21,129 Total amortization expense $ 49,115 Goodwill The changes in the carrying amount of goodwill as of June 30, 2021 are as follows: (in thousands) Ref Total Balance at September 30, 2019 $ 52,758 Preliminary increase from IBA acquisition 14,386 Balance at September 30, 2020 67,144 Preliminary adjustment from IBA acquisition (a) (1,694) Balance at December 31, 2020 65,450 Final adjustment from IBA acquisition (a) 193 Balance at June 30, 2021 $ 65,643 Ref (a): The adjustments were determined based upon the final valuations performed by the third party valuation. Accounts payable, accrued expenses, and other current liabilities (in thousands) June 30, September 30, 2021 2020 Accounts payable $ 15,990 $ 14,645 Accrued benefits 2,711 2,833 Accrued bonus and incentive compensation 1,786 2,340 Accrued workers' compensation insurance 6,519 5,529 Other accrued expenses 5,624 3,231 Accounts payable, accrued expenses, and other current liabilities $ 32,630 $ 28,578 Debt obligations (in thousands) June 30, September 30, 2021 2020 Bank term loan $ 53,800 $ 70,000 Less: unamortized deferred financing costs (2,263) (2,729) Net bank debt obligations 51,537 67,271 Less: current portion of bank debt obligations, net of deferred financing costs — (6,727) Long-term portion of bank debt obligations, net of deferred financing costs $ 51,537 $ 60,544 Interest expense Three Months Ended Nine Months Ended June 30, June 30, (in thousands) Ref 2021 2020 2021 2020 Interest expense (a) $ (696) $ (635) $ (2,367) $ (2,229) Amortization of deferred financing costs (b) (197) (178) (610) (551) Other income (expense), net (c) — — — 121 Interest expense, net $ (893) $ (813) $ (2,977) $ (2,659) Ref (a): Interest expense on borrowing Ref (b): Amortization of expenses related to term loan and revolving line of credit Ref (c): Gain on lease modification due to a lease amendment |
Credit Facilities
Credit Facilities | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities A summary of this loan facility as of June 30, 2021, is as follows: ($ in Millions) As of June 30, 2021 Lender Arrangement Loan Balance Interest Maturity Date First National Bank of Pennsylvania ("FNB") Secured term loan (a) $ 53.8 LIBOR* + 3.5% 09/30/2025 First National Bank of Pennsylvania ("FNB") Secured revolving line of credit (b) $ — LIBOR* + 3.5% 09/30/2025 *LIBOR rate as of June 30, 2021 was 0.09%. As of June 30, 2021, our LIBOR rate is subject to a minimum floor of 0.5%. (a) Represents the principal amounts payable on our term loan, which is secured by liens on substantially all of the assets of the Company. The principal of the term loan is payable in quarterly installments with the remaining balance due on September 30, 2025. The Credit Agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. Among other matters, we must comply with limitations on the following: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain quarterly financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.25 to 1.00, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 3.75:1.0 to 2.75:1.0 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) non-recurring charges, losses or expenses to include transaction and non-cash equity expense. The term loan has an interest rate spread range from 2.5% to 4.5% depending on the funded indebtedness to adjusted EBITDA ratio. We are in compliance with all loan covenants and restrictions. We are required to pay quarterly amortization payments, which commenced in December 2020 through September 2025. The annual amortization amounts are $7.0 million for fiscal years 2021 and 2022 and $8.75 million each for fiscal years 2023 - 2025. The quarterly payments are equal installments. The Company made voluntary prepayments of term debt of approximately $9.0 million during the quarter ended June 30, 2021 bringing the total amount paid on the secured term loan to $16.2 million. We have satisfied mandatory principal amortization until March 31, 2023. In addition to quarterly payments of the outstanding indebtedness, the loan agreement also requires annual payments of a percentage of excess cash flow, as defined in the loan agreement. The loan agreement states that an excess cash flow recapture payment must be made equal to (a) 75% of the excess cash flow for the immediately preceding fiscal year in which indebtedness to consolidated EBITDA ratio is greater than or equal to 2.50:1.0; (b) 50% of the excess cash flow for the immediately preceding fiscal year in which the funded indebtedness to consolidated EBITDA Ratio is less than 2.50:1.0 but greater than or equal to 1.5:1.0; or (c) 0% of the excess cash flow for the immediately preceding fiscal year in which the funded indebtedness to consolidated EBITDA Ratio is less than 1.5:1.0. In addition, the Company must make additional mandatory prepayment of amounts outstanding based on proceeds received from asset sales and sales of certain equity securities or other indebtedness. For additional information regarding the schedule of future payment obligations, please refer to Note 11, Commitments and Contingencies . On September 30, 2019, we executed a floating-to-fixed interest rate swap with First National Bank ("FNB") as counter party. The notional amount in the floating-to-fixed interest rate swap for the current fiscal year is $28.8 million and matures in 2024. The notional amount was $36 million in the prior fiscal year. The remaining outstanding balance of our term loan is subject to interest rate fluctuations. On the notional amount, the Company pays a base fixed rate of 1.61%, plus applicable credit spread. As a result, for the nine months ended June 30, 2021, interest expense has been increased by approximately $0.3 million. (b) The secured revolving line of credit has a ceiling of up to $25.0 million; as of June 30, 2021 we had unused borrowing capacity of $23.0 million, which is net of outstanding letters of credit. Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. The Company has no outstanding balance at June 30, 2021. The Company's total borrowing availability, based on eligible accounts receivables at June 30, 2021, was $25.0 million. As part of the revolving credit facility, the lenders agreed to a sublimit of $5 million for letters of credit for the account of the Company, subject to applicable procedures. |
Stock-based Compensation and Eq
Stock-based Compensation and Equity Grants | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation and Equity Grants | Stock-Based Compensation and Equity Grants Stock-based compensation expense Options issued under equity incentive plans were designated as either incentive stock or non-statutory stock options. No option is granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. As of June 30, 2021, there were 1.9 million shares available for grant. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our Consolidated Statements of Operations: Three Months Ended Nine Months Ended Ref June 30, June 30, (in thousands) 2021 2020 2021 2020 DLH employees (a) $ 356 $ 95 $ 968 $ 306 Non-employee directors (b) 117 87 349 260 Total stock option expense $ 473 $ 182 $ 1,317 $ 566 Ref (a): Included in this amount are equity grants of restricted stock units to Named Executive Officers ("NEO"), which were issued in accordance with the DLH long-term incentive compensation policy in this fiscal year, and stock option grants to NEO and non-NEO company employees. The restricted stock units totaled 147,431 restricted stock units issued and outstanding at June 30, 2021. Ref (b): Equity grants of restricted stock units were made in accordance with DLH compensation policy for non-employee directors and totaled 63,177 restricted stock units issued and outstanding at June 30, 2021. Unrecognized stock-based compensation expense (in thousands) June 30, Ref 2021 Unrecognized expense for DLH employees (a) $ 3,565 Unrecognized expense for non-employee directors 117 Total unrecognized expense $ 3,682 Ref (a): The remaining compensation expense is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company's common stock achieving and maintaining defined market prices, the Company values the awards with a Monte Carlo binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. On a weighted average basis, this expense is expected to be recognized within the next 4.39 years. Stock option activity for the nine months ended June 30, 2021 The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock. (in years) Weighted Weighted Average (in thousands) (in thousands) Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Options outstanding, September 30, 2020 2,129 $ 6.14 7.4 $ 6,593 Exercised (63) $ 3.62 — — Granted 245 $ 10.04 — — Cancelled (35) $ 7.36 — — Options outstanding, June 30, 2021 2,276 $ — 7.4 $ 15,385 Stock options shares outstanding, vested, and unvested for the periods ended (in thousands) June 30, September 30, Ref 2021 2020 Vested and exercisable (a) 1,674 1,213 Unvested (b) 602 916 Options outstanding 2,276 2,129 Ref (a): Weighted average exercise price of vested and exercisable shares was $3.52 and $2.25 at June 30, 2021 and September 30, 2020, respectively. Aggregate intrinsic value was approximately $13.7 and $6.1 million at June 30, 2021 and September 30, 2020, respectively. Weighted average contractual term remaining was 5.6 and 4.6 years at June 30, 2021 and September 30, 2020, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common shares outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method. (In thousands, except for per share amounts) Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income $ 2,880 $ 2,124 $ 7,261 $ 5,752 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 12,545 12,354 12,529 12,246 Effect of dilutive securities: Stock options and restricted stock 1,110 874 1,165 804 Denominator for diluted net income per share - weighted-average outstanding shares 13,655 13,228 13,694 13,050 Net income per share - basic $ 0.23 $ 0.17 $ 0.58 $ 0.47 Net income per share - diluted $ 0.21 $ 0.16 $ 0.54 $ 0.44 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual obligations as of June 30, 2021 Payments Due Per Fiscal Year (Remaining) (in thousands) Total 2021 2022 2023 2024 2025 Thereafter Debt obligations $ 53,800 $ — $ — $ 6,550 $ 8,750 $ 38,500 $ — Facility leases 28,503 802 3,418 3,308 3,199 3,092 14,684 Equipment operating leases 239 21 83 83 52 — — Total Contractual Obligations $ 82,542 $ 823 $ 3,501 $ 9,941 $ 12,001 $ 41,592 $ 14,684 Worker's Compensation We accrue worker's compensation expense based on claims submitted, applying actuarial loss development factors to estimate the costs incurred but not yet recorded. Our accrued liability for claims development as of June 30, 2021 and September 30, 2020 was $6.5 million and $5.5 million, respectively. Legal Proceedings As a commercial enterprise and employer, the Company is subject to various claims and legal actions in the ordinary course of business. These matters can include professional liability, employment-relations issues, workers’ compensation, tax, payroll and employee-related matters, other commercial disputes arising in the course of its business, and inquiries and investigations by governmental agencies regarding our employment practices or other matters. The Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position, or cash flows. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company has determined that for the three and nine months ended June 30, 2021 there were no significant related party transactions that have occurred which require disclosure through the date that these financial statements were issued. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for the application of U.S. GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") and other reference rates expected to be discontinued due to reference rate reform. ASU 2020-04 became effective on March 12, 2020 for all entities meeting certain criteria. The Company may elect to apply the amendments using a prospective approach through December 31, 2022. The Company is currently assessing the impact of electing this standard on its consolidated financial statements and related disclosures and does not expect the impact to be material. In April 2020, the FASB issued a Staff Q&A, Topic 842 and 840: Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic in order to provide clarity regarding the accounting treatment for lease concessions provided as a result of COVID-19. Under existing lease guidance, changes to certain lease terms not specified in the original lease agreement require modification accounting treatment. To provide relief, the FASB Staff Q&A permits alternatives to modification accounting under Topic 842. For concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or our obligations as the lessee, we are not required to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the lease agreement and can elect to apply or not apply the lease modification guidance in Topic 842. In fiscal year 2021, we elected to account for lease concessions received for one of our operating leases as a resolution of a contingency, whereby we remeasured our lease liability and recorded the adjustment against the right-of-use asset, without reassessing lease classification or modifying the original discount rate. As a result of this election, our lease liability and right-of-use-asset decreased by less than $0.1 million. In August 2020, the FASB issued ASU 2020-06, which amends the measurement and disclosure of convertible instruments, contracts in an entity's own equity, and EPS guidance. The guidance can be adopted using a modified retrospective method or a fully retrospective method. The amendments are effective for fiscal years beginning after December 15, 2021 for public entities, excluding those that are smaller reporting companies. The Company does not expect the update to have a material impact on its consolidated financial statements and related disclosures. |
Use of Estimates | Use of Estimates |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, accrued expenses, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximated fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. |
Long-Lived Assets | Long-Lived Assets Our long-lived assets include equipment and improvements, intangible assets, right-of-use assets, and goodwill. The Company continues to review long-lived assets for possible impairment or loss of value at least annually, or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit's carrying amount is greater than its fair value. |
Leases | Right-of-use assets are measured at the present value of future minimum lease payments, including all probable renewals, plus lease payments made to the lessor before or at lease commencement and indirect costs paid, less incentives received. Our right-of-use assets include long-term leases for facilities and equipment and are amortized over their respective lease terms. We have leases for facilities and office equipment. Our lease liabilities are recognized as the present value of the future minimum lease payments |
Goodwill | GoodwillAt September 30, 2020, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $67 million. We performed a qualitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2020. For the nine months ended June 30, 2021, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Our assessment incorporated effects of the COVID-19 pandemic, which is not expected to have a meaningful impact on our financial results. Notwithstanding this evaluation, factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that |
Stock-Based Compensation | Stock-Based Compensation The Company uses the fair value-based method for stock-based compensation. Options issued are designated as either an incentive stock option or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a Monte Carlo binomial and Black Scholes option pricing models, as appropriate to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to common stock. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. |
Earnings per Share | Earnings Per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury |
Treasury Stock and Preferred Stock | Treasury StockThe Company periodically purchases its own common stock that is traded on public markets as part of announced stock repurchase programs. The repurchased common stock is classified as treasury stock on the consolidated balance sheets and held at cost.Preferred StockOur certificate of incorporation authorizes the issuance of "blank check" preferred stock with designations, rights and preferences as may be determined from time to time by our board of directors up to an aggregate of 5,000,000 shares of preferred stock. |
Interest Rate Swap | Interest Rate Swap The Company uses derivative financial instruments to manage interest rate risk associated with its variable rate debt. The Company's objective in using these interest rate derivatives is to manage its exposure to interest rate movements and reduce volatility of interest expense. The gains and losses due to changes in the fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the underlying debt. Offsetting changes in fair value of both the interest rate swaps and the hedged portion of the underlying debt both are recognized in interest expense in the Consolidated Statements of Operations. The Company does not hold or issue any derivative instruments for trading or speculative purposes. |
Revenue Recognition | Revenue Recognition We recognize revenue over time when there is a continuous transfer of control to our customer. For our U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. When control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. For services contracts, we satisfy our performance obligations as services are rendered. We use a cost-based input method to measure progress. Contract costs include labor, material and allocable indirect expenses. For time-and-material contracts, we bill the customer per labor hour and per material, and revenue is recognized in the amount invoiced since the amount corresponds directly to the value of our performance to date. We consider control to transfer when we have a present right to payment. Essentially, all of our contracts satisfy their performance obligations over time. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications impact performance obligations when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue and profit cumulatively. Furthermore, a significant change in one or more estimates could affect the profitability of our contracts. We recognize adjustments in estimated profit on contracts in the period identified. For time-and-materials contracts, revenue is recognized to the extent of billable rates times hours delivered plus materials and other reimbursable costs incurred. Revenue for cost-reimbursable contracts is recorded as reimbursable costs are incurred, including an estimated share of the applicable contractual fees earned. Contract costs are expensed as incurred. Estimated losses are recognized when identified. Contract assets - Amounts are invoiced as work progresses in accordance with agreed-upon contractual terms. In part, revenue recognition occurs before we have the right to bill, resulting in contract assets. These contract assets are reported within receivables, net on our consolidated balance sheets and are invoiced in accordance with payment terms defined in each contract. Period end balances will vary from period to period due to agreed-upon contractual terms. Contract liabilities - Amounts are a result of billings in excess of costs incurred. These contract liabilities are reported within accounts payable, accrued expenses, and other current liabilities on our consolidated balance sheets. Disaggregation of revenue from contracts with customers |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedules of Revenues by Customer | The following table summarizes the revenues by customer for the nine months ended June 30, 2021 and 2020, respectively: Nine Months Ended June 30, 2021 2020 (in thousands) Revenue Percent of total revenue Revenue Percent of total revenue Department of Veterans Affairs $ 83,010 46 % $ 74,402 47 % Department of Health and Human Services 66,748 37 % 73,263 46 % Department of Defense 22,103 12 % 943 1 % Customers with less than 10% share of total revenue 9,052 5 % 9,887 6 % Total Revenue $ 180,913 100 % $ 158,495 100 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances Recognized on the Company's Consolidated Balance Sheets | The following table summarizes the contract balances recognized on the Company's consolidated balance sheets: (in thousands) June 30, September 30, 2021 2020 Contract assets $ 6,084 $ 7,943 Contract liabilities $ 355 $ 200 |
Schedule of Disaggregation of Revenue From Contracts with Customers | The following tables present our revenue disaggregated by these categories: Revenue by customer (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Department of Veterans Affairs $ 27,496 $ 24,783 $ 83,010 $ 74,402 Department of Health and Human Services 23,245 23,312 66,748 73,263 Department of Defense 7,601 270 22,103 943 Other 3,213 3,094 9,052 9,887 Total Revenue $ 61,555 $ 51,459 $ 180,913 $ 158,495 Revenue by contract type (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Time and Materials $ 46,790 $ 36,315 $ 137,492 $ 110,918 Cost Reimbursable 12,070 13,841 35,796 43,887 Firm Fixed Price 2,695 1,303 7,625 3,690 Total Revenue $ 61,555 $ 51,459 $ 180,913 $ 158,495 Revenue by whether the Company acts as a prime contractor or a subcontractor (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Prime Contractor $ 53,407 $ 47,649 $ 159,059 $ 147,464 Subcontractor 8,148 3,810 21,854 11,031 Total Revenue $ 61,555 $ 51,459 $ 180,913 $ 158,495 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Summarized Lease Balances in Consolidated Balance Sheet | The following table summarizes lease balances in our consolidated balance sheets at June 30, 2021 and September 30, 2020 (in thousands): June 30, September 30, 2021 2020 Operating lease right-of-use assets $ 20,481 $ 22,427 Operating lease liabilities, current $ 2,186 $ 2,045 Operating lease liabilities - long-term 19,944 21,620 Total operating lease liabilities $ 22,130 $ 23,665 |
Schedule of Lease Costs and Other Information Related to Leases | For the three and nine months ended June 30, 2021 and June 30, 2020, total lease costs for our operating leases are as follows (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Operating $ 903 $ 834 $ 2,763 $ 3,399 Short-term 18 30 88 133 Variable 40 28 70 51 Sublease income (46) (70) (233) (198) Total lease costs $ 915 $ 822 $ 2,688 $ 3,385 Other information related to our leases are as follows: June 30, 2021 Weighted-average remaining lease term 8.5 years Weighted-average discount rate 6.00 % Three Months Ended Nine Months Ended June 30, June 30, (in thousands) Ref 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 815 $ 336 $ 2,483 $ 2,803 New lease liabilities, net of new right-of-use assets (a) $ — $ — $ — $ 245 Lease liabilities arising from obtaining right-of-use-assets (a) $ — $ — $ — $ 7,179 Ref (a): Changes resulted from an amended and remeasured operating lease |
Schedule of Company's Future Lease Payments | The Company's future minimum lease payments as of June 30, 2021 are as follows: For the Fiscal Year Ending September 30, (in thousands) 2021 (remaining) $ 823 2022 3,501 2023 3,391 2024 3,251 2025 3,092 Thereafter 14,684 Total future lease payments 28,742 Less: imputed interest (6,612) Present value of future minimum lease payments 22,130 Less: current portion of operating lease liabilities (2,186) Long-term operating lease liabilities $ 19,944 |
Supporting Financial Informat_2
Supporting Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable (in thousands) June 30, September 30, Ref 2021 2020 Billed receivables $ 30,325 $ 24,598 Contract assets 6,084 7,943 Total accounts receivable 36,409 32,541 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 36,409 $ 32,541 Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at either June 30, 2021 or September 30, 2020. |
Schedule of Other Current Assets | Other current assets (in thousands) June 30, September 30, 2021 2020 Prepaid insurance and benefits $ 891 $ 665 Other receivables 1,164 1,363 Other prepaid expenses 1,577 1,471 Other current assets $ 3,632 $ 3,499 |
Schedule of Equipment and Improvements, Net | Equipment and improvements, net (in thousands) June 30, September 30, Ref 2021 2020 Furniture and equipment $ 958 $ 958 Computer equipment 1,212 1,171 Computer software 4,353 4,341 Leasehold improvements 1,595 1,595 Total equipment and improvements 8,118 8,065 Less accumulated depreciation and amortization (a) (5,892) (4,726) Equipment and improvements, net $ 2,226 $ 3,339 Ref (a): Depreciation expense was $0.4 million and $0.5 million for the three months ended June 30, 2021 and 2020, respectively and $1.2 million and $1.7 million for the nine months ended June 30, 2021 and 2020, respectively. |
Schedule of Intangible Assets | Intangible assets (in thousands) June 30, September 30, Ref 2021 2020 Intangible assets (a) Customer contracts and related customer relationships $ 62,281 $ 45,600 Covenants not to compete 522 480 Trade name 3,051 2,109 Acquired intangibles - IBA acquisition (b) — 16,223 Total intangible assets 65,854 64,412 Less accumulated amortization Customer contracts and related customer relationships (15,821) (11,150) Covenants not to compete (251) (212) Trade name (667) (438) Total accumulated amortization (16,739) (11,800) Intangible assets, net $ 49,115 $ 52,612 Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. The total amount of amortization expense was $1.6 million and $1.2 million for the three months ended June 30, 2021 and 2020, respectively and $4.9 million and $3.6 million for the nine months ended June 30, 2021 and 2020, respectively. Ref (b): Intangible assets reported at September 30, 2020 from the acquisition of IBA were based on an estimate and revised in the first quarter of fiscal 2021. A third party valuation firm valued the acquired intangibles to be the $17.7 million; $16.7 million was attributable to customer contracts and customer relationships, and $0.9 million to trade name, and $0.1 million to covenants not to compete. |
Schedule of Estimated Amortization of Intangible Assets | Estimated amortization expense for future fiscal years: (in thousands) 2021 (remaining) $ 1,646 2022 6,585 2023 6,585 2024 6,585 2025 6,585 Thereafter 21,129 Total amortization expense $ 49,115 |
Schedule of Changes in Carrying Amount of Goodwill | Goodwill The changes in the carrying amount of goodwill as of June 30, 2021 are as follows: (in thousands) Ref Total Balance at September 30, 2019 $ 52,758 Preliminary increase from IBA acquisition 14,386 Balance at September 30, 2020 67,144 Preliminary adjustment from IBA acquisition (a) (1,694) Balance at December 31, 2020 65,450 Final adjustment from IBA acquisition (a) 193 Balance at June 30, 2021 $ 65,643 |
Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities | Accounts payable, accrued expenses, and other current liabilities (in thousands) June 30, September 30, 2021 2020 Accounts payable $ 15,990 $ 14,645 Accrued benefits 2,711 2,833 Accrued bonus and incentive compensation 1,786 2,340 Accrued workers' compensation insurance 6,519 5,529 Other accrued expenses 5,624 3,231 Accounts payable, accrued expenses, and other current liabilities $ 32,630 $ 28,578 |
Schedule of Debt Obligations | Debt obligations (in thousands) June 30, September 30, 2021 2020 Bank term loan $ 53,800 $ 70,000 Less: unamortized deferred financing costs (2,263) (2,729) Net bank debt obligations 51,537 67,271 Less: current portion of bank debt obligations, net of deferred financing costs — (6,727) Long-term portion of bank debt obligations, net of deferred financing costs $ 51,537 $ 60,544 |
Schedule of Interest Expense | Interest expense Three Months Ended Nine Months Ended June 30, June 30, (in thousands) Ref 2021 2020 2021 2020 Interest expense (a) $ (696) $ (635) $ (2,367) $ (2,229) Amortization of deferred financing costs (b) (197) (178) (610) (551) Other income (expense), net (c) — — — 121 Interest expense, net $ (893) $ (813) $ (2,977) $ (2,659) Ref (a): Interest expense on borrowing Ref (b): Amortization of expenses related to term loan and revolving line of credit Ref (c): Gain on lease modification due to a lease amendment |
Credit Facilities (Tables)
Credit Facilities (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Loan Facility | A summary of this loan facility as of June 30, 2021, is as follows: ($ in Millions) As of June 30, 2021 Lender Arrangement Loan Balance Interest Maturity Date First National Bank of Pennsylvania ("FNB") Secured term loan (a) $ 53.8 LIBOR* + 3.5% 09/30/2025 First National Bank of Pennsylvania ("FNB") Secured revolving line of credit (b) $ — LIBOR* + 3.5% 09/30/2025 |
Stock-based Compensation and _2
Stock-based Compensation and Equity Grants (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our Consolidated Statements of Operations: Three Months Ended Nine Months Ended Ref June 30, June 30, (in thousands) 2021 2020 2021 2020 DLH employees (a) $ 356 $ 95 $ 968 $ 306 Non-employee directors (b) 117 87 349 260 Total stock option expense $ 473 $ 182 $ 1,317 $ 566 Ref (a): Included in this amount are equity grants of restricted stock units to Named Executive Officers ("NEO"), which were issued in accordance with the DLH long-term incentive compensation policy in this fiscal year, and stock option grants to NEO and non-NEO company employees. The restricted stock units totaled 147,431 restricted stock units issued and outstanding at June 30, 2021. Ref (b): Equity grants of restricted stock units were made in accordance with DLH compensation policy for non-employee directors and totaled 63,177 restricted stock units issued and outstanding at June 30, 2021. Unrecognized stock-based compensation expense (in thousands) June 30, Ref 2021 Unrecognized expense for DLH employees (a) $ 3,565 Unrecognized expense for non-employee directors 117 Total unrecognized expense $ 3,682 Ref (a): The remaining compensation expense is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company's common stock achieving and maintaining defined market prices, the Company values the awards with a Monte Carlo binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. On a weighted average basis, this expense is expected to be recognized within the next 4.39 years. |
Schedule of Stock Option Activity | The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock. (in years) Weighted Weighted Average (in thousands) (in thousands) Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Options outstanding, September 30, 2020 2,129 $ 6.14 7.4 $ 6,593 Exercised (63) $ 3.62 — — Granted 245 $ 10.04 — — Cancelled (35) $ 7.36 — — Options outstanding, June 30, 2021 2,276 $ — 7.4 $ 15,385 |
Schedule of Option Shares Outstanding, Vested and Expected to Vest | Stock options shares outstanding, vested, and unvested for the periods ended (in thousands) June 30, September 30, Ref 2021 2020 Vested and exercisable (a) 1,674 1,213 Unvested (b) 602 916 Options outstanding 2,276 2,129 Ref (a): Weighted average exercise price of vested and exercisable shares was $3.52 and $2.25 at June 30, 2021 and September 30, 2020, respectively. Aggregate intrinsic value was approximately $13.7 and $6.1 million at June 30, 2021 and September 30, 2020, respectively. Weighted average contractual term remaining was 5.6 and 4.6 years at June 30, 2021 and September 30, 2020, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Diluted Earnings per Share | (In thousands, except for per share amounts) Three Months Ended Nine Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income $ 2,880 $ 2,124 $ 7,261 $ 5,752 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 12,545 12,354 12,529 12,246 Effect of dilutive securities: Stock options and restricted stock 1,110 874 1,165 804 Denominator for diluted net income per share - weighted-average outstanding shares 13,655 13,228 13,694 13,050 Net income per share - basic $ 0.23 $ 0.17 $ 0.58 $ 0.47 Net income per share - diluted $ 0.21 $ 0.16 $ 0.54 $ 0.44 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations | Contractual obligations as of June 30, 2021 Payments Due Per Fiscal Year (Remaining) (in thousands) Total 2021 2022 2023 2024 2025 Thereafter Debt obligations $ 53,800 $ — $ — $ 6,550 $ 8,750 $ 38,500 $ — Facility leases 28,503 802 3,418 3,308 3,199 3,092 14,684 Equipment operating leases 239 21 83 83 52 — — Total Contractual Obligations $ 82,542 $ 823 $ 3,501 $ 9,941 $ 12,001 $ 41,592 $ 14,684 |
Business Overview - Narrative (
Business Overview - Narrative (Details) | 9 Months Ended | |
Jun. 30, 2021employeelocationcustomermarketbusiness_area | Jun. 30, 2020 | |
Concentration Risk [Line Items] | ||
Number of market focus areas | business_area | 3 | |
Number of market leveraging core competencies | market | 7 | |
Number of largest customers | customer | 3 | |
Revenue from Contract with Customer | Customer concentration | ||
Concentration Risk [Line Items] | ||
Percent of total revenue | 100.00% | 100.00% |
Revenue from Contract with Customer | Customer concentration | Federal Government | ||
Concentration Risk [Line Items] | ||
Percent of total revenue | 99.00% | |
U.S. | ||
Concentration Risk [Line Items] | ||
Number of employees | employee | 2,200 | |
Number of locations in which entity operates | 30 | |
Overseas | ||
Concentration Risk [Line Items] | ||
Number of locations in which entity operates | 1 |
Business Overview - Revenues by
Business Overview - Revenues by Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 61,555 | $ 51,459 | $ 180,913 | $ 158,495 |
Revenue from Contract with Customer | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Percent of total revenue | 100.00% | 100.00% | ||
Department of Veterans Affairs | ||||
Concentration Risk [Line Items] | ||||
Revenue | 27,496 | 24,783 | $ 83,010 | $ 74,402 |
Department of Veterans Affairs | Revenue from Contract with Customer | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Percent of total revenue | 46.00% | 47.00% | ||
Department of Health and Human Services | ||||
Concentration Risk [Line Items] | ||||
Revenue | 23,245 | 23,312 | $ 66,748 | $ 73,263 |
Department of Health and Human Services | Revenue from Contract with Customer | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Percent of total revenue | 37.00% | 46.00% | ||
Department of Defense | ||||
Concentration Risk [Line Items] | ||||
Revenue | 7,601 | 270 | $ 22,103 | $ 943 |
Department of Defense | Revenue from Contract with Customer | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Percent of total revenue | 12.00% | 1.00% | ||
Customers with less than 10% share of total revenue | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 3,213 | $ 3,094 | $ 9,052 | $ 9,887 |
Customers with less than 10% share of total revenue | Revenue from Contract with Customer | Customer concentration | ||||
Concentration Risk [Line Items] | ||||
Percent of total revenue | 5.00% | 6.00% |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - COVID-19 $ in Millions | 9 Months Ended |
Jun. 30, 2021USD ($)lease_concesion | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Number of operating leases accounted for as lease concessions | lease_concesion | 1 |
Decrease in operating lease liabilities due to lease concessions | $ 0.1 |
Decrease in operating right-of-use assets due to lease concessions | $ 0.1 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2019 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||||
Estimated useful live of intangible assets | 10 years | ||||||
Goodwill | $ 67,144,000 | $ 65,643,000 | $ 65,643,000 | $ 65,450,000 | $ 52,758,000 | ||
Goodwill impairment | 0 | ||||||
Uncertain tax positions | $ 0 | 0 | 0 | ||||
Income tax interest expense | 0 | $ 0 | 0 | $ 0 | |||
Income tax penalties expense | 0 | $ 0 | 0 | $ 0 | |||
Cash, FDIC insured amount | $ 250,000 | $ 250,000 | |||||
Treasury stock (in shares) | 0 | 0 | 0 | ||||
Preferred shares authorized (in shares) | 5,000,000 | 5,000,000 | |||||
Preferred stock issued (in shares) | 0 | 0 | 0 | ||||
Employee Stock Option | |||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||||
Number of awards authorized for issuance (in shares) | 0 | 0 | |||||
Expiration term of share-based compensation plan | 10 years | ||||||
Minimum | |||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||||
Estimated useful of long-lived assets | 3 years | ||||||
Maximum | |||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||||
Estimated useful of long-lived assets | 7 years |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 6,084 | $ 7,943 |
Contract liabilities | $ 355 | $ 200 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 61,555 | $ 51,459 | $ 180,913 | $ 158,495 |
Prime Contractor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 53,407 | 47,649 | 159,059 | 147,464 |
Subcontractor | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 8,148 | 3,810 | 21,854 | 11,031 |
Time and Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 46,790 | 36,315 | 137,492 | 110,918 |
Cost Reimbursable | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 12,070 | 13,841 | 35,796 | 43,887 |
Firm Fixed Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 2,695 | 1,303 | 7,625 | 3,690 |
Department of Veterans Affairs | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 27,496 | 24,783 | 83,010 | 74,402 |
Department of Health and Human Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 23,245 | 23,312 | 66,748 | 73,263 |
Department of Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 7,601 | 270 | 22,103 | 943 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 3,213 | $ 3,094 | $ 9,052 | $ 9,887 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Jun. 30, 2021subleasesublease_option | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of facilities subleased | sublease | 1 |
Sublease term | 5 years |
Sublease number of additional extension options | sublease_option | 2 |
Sublease extension option period | 1 year |
Facilities and Equipment | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Remaining lease term | 1 year 6 months |
Facilities and Equipment | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Remaining lease term | 9 years 9 months 18 days |
Leases - Summary of Lease Balan
Leases - Summary of Lease Balances in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 20,481 | $ 22,427 |
Operating lease liabilities - current | 2,186 | 2,045 |
Operating lease liabilities - long-term | 19,944 | 21,620 |
Total operating lease liabilities | $ 22,130 | $ 23,665 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating | $ 903 | $ 834 | $ 2,763 | $ 3,399 |
Short-term | 18 | 30 | 88 | 133 |
Variable | 40 | 28 | 70 | 51 |
Sublease income | (46) | (70) | (233) | (198) |
Total lease costs | $ 915 | $ 822 | $ 2,688 | $ 3,385 |
Leases - Company's Future Minim
Leases - Company's Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
2021 (remaining) | $ 823 | |
2022 | 3,501 | |
2023 | 3,391 | |
2024 | 3,251 | |
2025 | 3,092 | |
Thereafter | 14,684 | |
Total future lease payments | 28,742 | |
Less: imputed interest | (6,612) | |
Total operating lease liabilities | 22,130 | $ 23,665 |
Less: current portion of operating lease liabilities | (2,186) | (2,045) |
Long-term operating lease liabilities | $ 19,944 | $ 21,620 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Weighted-average remaining lease term | 8 years 6 months | 8 years 6 months | ||
Weighted-average discount rate | 6.00% | 6.00% | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 815 | $ 336 | $ 2,483 | $ 2,803 |
New lease liabilities, net of new right-of-use assets | 0 | 0 | 0 | 245 |
Lease liabilities arising from obtaining right-of-use-assets | $ 0 | $ 0 | $ 0 | $ 7,179 |
Supporting Financial Informat_3
Supporting Financial Information - Accounts Receivable (Details) - USD ($) | Jun. 30, 2021 | Sep. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Billed receivables | $ 30,325,000 | $ 24,598,000 |
Contract assets | 6,084,000 | 7,943,000 |
Total accounts receivable | 36,409,000 | 32,541,000 |
Less: Allowance for doubtful accounts | 0 | 0 |
Accounts receivable, net | $ 36,409,000 | $ 32,541,000 |
Supporting Financial Informat_4
Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid insurance and benefits | $ 891 | $ 665 |
Other receivables | 1,164 | 1,363 |
Other prepaid expenses | 1,577 | 1,471 |
Other current assets | $ 3,632 | $ 3,499 |
Supporting Financial Informat_5
Supporting Financial Information - Equipment and Improvements, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Furniture and equipment | $ 958 | $ 958 | $ 958 | ||
Computer equipment | 1,212 | 1,212 | 1,171 | ||
Computer software | 4,353 | 4,353 | 4,341 | ||
Leasehold improvements | 1,595 | 1,595 | 1,595 | ||
Total equipment and improvements | 8,118 | 8,118 | 8,065 | ||
Less accumulated depreciation and amortization | (5,892) | (5,892) | (4,726) | ||
Equipment and improvements, net | 2,226 | 2,226 | $ 3,339 | ||
Depreciation expense | $ 400 | $ 500 | $ 1,200 | $ 1,700 |
Supporting Financial Informat_6
Supporting Financial Information - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | $ 65,854 | $ 65,854 | $ 64,412 | |||
Total accumulated amortization | (16,739) | (16,739) | (11,800) | |||
Intangible assets, net | 49,115 | $ 49,115 | 52,612 | |||
Estimated useful live of intangible assets | 10 years | |||||
Amortization expense of intangible assets | 1,600 | $ 1,200 | $ 4,900 | $ 3,600 | ||
IBA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | 0 | 0 | $ 17,700 | 16,223 | ||
Customer contracts and related customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | 62,281 | 62,281 | 45,600 | |||
Total accumulated amortization | (15,821) | (15,821) | (11,150) | |||
Customer contracts and related customer relationships | IBA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | 16,700 | |||||
Covenants not to compete | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | 522 | 522 | 480 | |||
Total accumulated amortization | (251) | (251) | (212) | |||
Covenants not to compete | IBA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | 100 | |||||
Trade name | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | 3,051 | 3,051 | 2,109 | |||
Total accumulated amortization | $ (667) | $ (667) | $ (438) | |||
Trade name | IBA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, gross | $ 900 |
Supporting Financial Informat_7
Supporting Financial Information - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2021 (remaining) | $ 1,646 | |
2022 | 6,585 | |
2023 | 6,585 | |
2024 | 6,585 | |
2025 | 6,585 | |
Thereafter | 21,129 | |
Intangible assets, net | $ 49,115 | $ 52,612 |
Supporting Financial Informat_8
Supporting Financial Information - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | |||
Beginning Balance | $ 67,144 | $ 65,450 | $ 52,758 |
Preliminary increase from IBA acquisition | 14,386 | ||
Adjustment from IBA acquisition | (1,694) | 193 | |
Ending Balance | $ 65,450 | $ 65,643 | $ 67,144 |
Supporting Financial Informat_9
Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 15,990 | $ 14,645 |
Accrued benefits | 2,711 | 2,833 |
Accrued bonus and incentive compensation | 1,786 | 2,340 |
Accrued workers' compensation insurance | 6,519 | 5,529 |
Other accrued expenses | 5,624 | 3,231 |
Accounts payable, accrued expenses, and other current liabilities | $ 32,630 | $ 28,578 |
Supporting Financial Informa_10
Supporting Financial Information - Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 53,800 | |
Less: current portion of bank debt obligations, net of deferred financing costs | 0 | $ (6,727) |
Long-term portion of bank debt obligations, net of deferred financing costs | 51,537 | 60,544 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs | (2,263) | (2,729) |
Net bank debt obligations | 51,537 | 67,271 |
Less: current portion of bank debt obligations, net of deferred financing costs | 0 | (6,727) |
Long-term portion of bank debt obligations, net of deferred financing costs | 51,537 | 60,544 |
Secured Debt | Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 53,800 | $ 70,000 |
Supporting Financial Informa_11
Supporting Financial Information - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest expense | $ (696) | $ (635) | $ (2,367) | $ (2,229) |
Amortization of deferred financing costs | (197) | (178) | (610) | (551) |
Other income (expense), net | 0 | 0 | 0 | 121 |
Interest expense, net | $ (893) | $ (813) | $ (2,977) | $ (2,659) |
Credit Facilities - Summary of
Credit Facilities - Summary of Loan Facility (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021 | Sep. 30, 2020 | |
Line of Credit Facility [Line Items] | ||
Total bank debt obligation | $ 53,800 | |
Secured Debt | Term Loans | ||
Line of Credit Facility [Line Items] | ||
Total bank debt obligation | $ 53,800 | $ 70,000 |
Secured Debt | Term Loans | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate percentage | 0.035% | |
Interest rate spread | 0.09% | |
Interest rate floor | 0.50% | |
Secured Debt | Revolving Line of Credit | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate percentage | 0.035% | |
Interest rate spread | 0.09% | |
Interest rate floor | 0.50% |
Credit Facilities - Narrative (
Credit Facilities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||
Debt amortization fiscal year 2021 | $ 0 | $ 0 | |
Debt amortization fiscal year 2022 | 0 | 0 | |
Debt amortization fiscal 2023 | 6,550,000 | 6,550,000 | |
Debt amortization fiscal 2024 | 8,750,000 | 8,750,000 | |
Debt amortization fiscal 2025 | 38,500,000 | 38,500,000 | |
Interest Rate Swap | |||
Line of Credit Facility [Line Items] | |||
Derivative notional amount | $ 28,800,000 | $ 28,800,000 | $ 36,000,000 |
Derivative fixed interest rate | 1.61% | 1.61% | |
Interest expense increase (less than) | $ 300,000 | ||
Secured Debt | Term Loans | |||
Line of Credit Facility [Line Items] | |||
Fixed charge coverage ratio | 1.25 | ||
Ratio of funded indebtedness to EBITDA through maturity | 2.75 | ||
Debt amortization fiscal year 2021 | $ 7,000,000 | $ 7,000,000 | |
Debt amortization fiscal year 2022 | 7,000,000 | 7,000,000 | |
Debt amortization fiscal 2023 | 8,750,000 | 8,750,000 | |
Debt amortization fiscal 2024 | 8,750,000 | 8,750,000 | |
Debt amortization fiscal 2025 | 8,750,000 | 8,750,000 | |
Voluntary principal amortization of term debt | $ 9,000,000 | $ 16,200,000 | |
Secured Debt | Term Loans | Excess Cash Flows Greater Than Or Equal to 2.50 | |||
Line of Credit Facility [Line Items] | |||
Percentage of excess cash flow for each year of funded indebtedness to EBDTA | 75.00% | ||
Ratio of funded indebtedness to adjusted EBDTA, actual | 2.50 | ||
Secured Debt | Term Loans | Excess Cash Flows Less Than 2.50 | |||
Line of Credit Facility [Line Items] | |||
Percentage of excess cash flow for each year of funded indebtedness to EBDTA | 50.00% | ||
Secured Debt | Term Loans | Excess Cash Flows Equal to 1.50 | |||
Line of Credit Facility [Line Items] | |||
Ratio of funded indebtedness to adjusted EBDTA, actual | 1.5 | ||
Secured Debt | Term Loans | Excess Cash Flows Less Than 1.50 | |||
Line of Credit Facility [Line Items] | |||
Percentage of excess cash flow for each year of funded indebtedness to EBDTA | 0.00% | ||
Ratio of funded indebtedness to adjusted EBDTA, actual | 1.5 | ||
Secured Debt | Term Loans | Maximum | |||
Line of Credit Facility [Line Items] | |||
Ratio of funded indebtedness to EBITDA through maturity | 3.75 | ||
Interest rate spread | 4.50% | 4.50% | |
Secured Debt | Term Loans | Maximum | Excess Cash Flows Less Than 2.50 | |||
Line of Credit Facility [Line Items] | |||
Ratio of funded indebtedness to adjusted EBDTA, actual | 2.50 | ||
Secured Debt | Term Loans | Minimum | |||
Line of Credit Facility [Line Items] | |||
Interest rate spread | 2.50% | 2.50% | |
Secured Debt | Term Loans | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest rate spread | 0.09% | 0.09% | |
Secured Debt | Revolving Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 25,000,000 | $ 25,000,000 | |
Line of credit, unused borrowing capacity | 23,000,000 | 23,000,000 | |
Line of credit outstanding balance | 0 | 0 | |
Line of credit, current borrowing capacity | $ 25,000,000 | $ 25,000,000 | |
Secured Debt | Revolving Line of Credit | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Interest rate spread | 0.09% | 0.09% | |
Secured Debt | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of credit, current borrowing capacity | $ 5,000,000 | $ 5,000,000 |
Stock-based Compensation and _3
Stock-based Compensation and Equity Grants - Narrative (Details) - Employee Stock Option | 9 Months Ended |
Jun. 30, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards authorized for issuance (in shares) | 0 |
Expiration term of share-based compensation plan | 10 years |
Number of shares available for grant (in shares) | 1,900,000 |
Stock-based Compensation and _4
Stock-based Compensation and Equity Grants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total unrecognized expense | $ 3,682 | $ 3,682 | ||
Selling, General and Administrative Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock option expense | 473 | $ 182 | 1,317 | $ 566 |
DLH employees | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total unrecognized expense | 3,565 | $ 3,565 | ||
Weighted average share based compensation expense recognition period | 4 years 4 months 20 days | |||
DLH employees | Restricted Stock Units | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of restricted stock units granted (in shares) | 147,431 | |||
DLH employees | Selling, General and Administrative Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock option expense | 356 | 95 | $ 968 | 306 |
Non-employee directors | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total unrecognized expense | 117 | $ 117 | ||
Non-employee directors | Restricted Stock Units | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of restricted stock units granted (in shares) | 63,177 | |||
Non-employee directors | Selling, General and Administrative Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock option expense | $ 117 | $ 87 | $ 349 | $ 260 |
Stock-based Compensation and _5
Stock-based Compensation and Equity Grants - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Sep. 30, 2020 | |
Number of Shares | ||
Options outstanding, September 30, 2020 (in shares) | 2,129,000 | |
Exercised (in shares) | (63,000) | |
Granted (in shares) | 245,000 | |
Cancelled (in shares) | (35,000) | |
Options outstanding, June 30, 2021 (in shares) | 2,276,000 | 2,129,000 |
Weighted Average Exercise Price | ||
Options outstanding, September 30, 2020 (in dollars per share) | $ 6.14 | |
Exercised (in dollars per share) | 3.62 | |
Granted (in dollars per share) | 10.04 | |
Cancelled (in dollars per share) | 7.36 | |
Options outstanding, June 30, 2021 (in dollars per share) | $ 0 | $ 6.14 |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term | 7 years 4 months 24 days | 7 years 4 months 24 days |
Aggregate Intrinsic Value | ||
Options outstanding at September 30, 2020 | $ 6,593 | |
Options outstanding at June 30, 2021 | $ 15,385 | $ 6,593 |
Stock-based Compensation and _6
Stock-based Compensation and Equity Grants - Stock Options Outstanding, Vested and Unvested (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Vested and exercisable (in shares) | 1,674 | 1,213 |
Unvested (in shares) | 602 | 916 |
Option outstanding (in shares) | 2,276 | 2,129 |
Weighted average exercise price (in dollars per share) | $ 3.52 | $ 2.25 |
Aggregate intrinsic value | $ 13.7 | $ 6.1 |
Weighted average remaining term | 5 years 7 months 6 days | 4 years 7 months 6 days |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net income | $ 2,880 | $ 2,124 | $ 7,261 | $ 5,752 |
Denominator: | ||||
Denominator for basic net income (loss) per share - weighted-average outstanding shares (in shares) | 12,545 | 12,354 | 12,529 | 12,246 |
Effect of dilutive securities: | ||||
Stock options and restricted stock (in shares) | 1,110 | 874 | 1,165 | 804 |
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (in shares) | 13,655 | 13,228 | 13,694 | 13,050 |
Net income per share - basic (in dollars per share) | $ 0.23 | $ 0.17 | $ 0.58 | $ 0.47 |
Net income per share - diluted (in dollars per share) | $ 0.21 | $ 0.16 | $ 0.54 | $ 0.44 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Debt obligations | |
Debt obligations | $ 53,800 |
2021 (remaining) | 0 |
2022 | 0 |
2023 | 6,550 |
2024 | 8,750 |
2025 | 38,500 |
Thereafter | 0 |
Operating Leases | |
Total future lease payments | 28,742 |
2021 (remaining) | 823 |
2022 | 3,501 |
2023 | 3,391 |
2024 | 3,251 |
2025 | 3,092 |
Thereafter | 14,684 |
Total Contractual Obligations | |
Total Obligations | 82,542 |
2021 (remaining) | 823 |
2022 | 3,501 |
2023 | 9,941 |
2024 | 12,001 |
2025 | 41,592 |
Thereafter | 14,684 |
Facility leases | |
Operating Leases | |
Total future lease payments | 28,503 |
2021 (remaining) | 802 |
2022 | 3,418 |
2023 | 3,308 |
2024 | 3,199 |
2025 | 3,092 |
Thereafter | 14,684 |
Equipment operating leases | |
Operating Leases | |
Total future lease payments | 239 |
2021 (remaining) | 21 |
2022 | 83 |
2023 | 83 |
2024 | 52 |
2025 | 0 |
Thereafter | $ 0 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued workers' compensation insurance | $ 6,519 | $ 5,529 |