DLH Holdings Corp. (NASDAQ:DLHC) Q1 2023 Earnings Call Transcript

Zach Parker: Well, they currently have bridge coverage, I think we talked about in our filing that characterizes through the end of this fiscal year. That has to be an indication of the VA’s thinking with regard to having coverage up through the end of this fiscal year to allow them to go through the adjudication of proposals in any potential protest. I can’t tell you that proposals have been submitted for each of those sites thus far. So they have an idea of the competitive landscape and what their load of proposals to review will be. We are a part of them. And the jury’s out as in terms of what the time table is going to take to execute that. But as we had indicated previously, we do feel that we won’t see any disruption during this fiscal year. And every indication is that the VA is tracking with that as well.

Jeff Bronchick: And so a 2024 calendar of some conceptual change would be there or they’re just, they’re just okay. And just to be clear, so the way you frame that? Would it be fair to say that if you look at things on a curve, that winning all seven is sort of on the right side of possible, but maybe not both likely and losing all steps and is also on the other side of the curve is unlikely that you’ll you think normal and customary somewhere in the middle is a reasonable middle of the curve expectation? Would that be a fair statement out?

Zach Parker: No. No Jeff, now, you look, I’m rooting for Patrick Mahomes, but I wouldn’t be betting on Philly. So, it’s one of those sorts of things where we are very optimistic and continue to lean into protecting our business. And so we’re not modeling scenarios that suggest that we will subordinate. Any of these clients and critical mission critical work that we do for this agency. Our leadership team is aligned that way. Our relationship partners are aligned that way. And our history has demonstrated that we’ve been able to deliver, but in any case, obviously, the third parties can take a look at what they think may happen, but we’re really committed and optimistic that we offer or going to offer some solutions that are going to prevail.

Jeff Bronchick: My last question. So it would it be fair to say that there is a, there’s economic advantage to running the whole show ergo, different competitors will have, if you’re only going to go for or win or expect to win, maybe two, that would provide inferior economics. In other words, the attractiveness of a part of your winning a part of this is infinitely less interesting economically than running the whole program as you are now. Is that a fair statement?

Zach Parker: Well we obviously don’t discuss proprietary bidding strategies. But I think your question is a fair question relative to if you’re looking from the outside does it make sense for the government to maybe expect to see some synergies if you are operating across all domains. And I would say there’s, there’s good reason to Yes, that’s a fair question. And there’s good reason to think that might be the case.

Jeff Bronchick: Excellent and intuitive. Don’t ever mention the Eagles in my presence again, thank you.

Operator: The next question comes from Business Consulting. Please go ahead.

Unidentified Analyst: Hey, good morning, Zach. And Kathryn I don’t have any questions. I’m good. Thanks. I just wanted to say a big thank you. You guys keep banging it, knocking it out of the court, quarter-after-quarter-after-quarter. And it’s much appreciated. So thanks again, and hope you all have a great weekend.

Kathryn JohnBull: We appreciate your support. It’s very gratifying to see the strategy that we laid out many years ago come into fruition. And we are excited.

Unidentified Analyst: Just like clockwork.