1QFY22 Results. Revenue totaled $152.8 million, up from $57.9 million in 1Q21. The short-term FEMA awards accounted for $91.1 million of the increase. Earnings were $7.8 million, or $0.55 per diluted share, compared to $1.8 million, or $0.13 per diluted share last year. Ex FEMA, DLH still reported excellent results. Revenue rose 7% year-over-year to $61.7 million, while earnings were $3.1 million, or $0.22 per diluted share. We had projected revenue of $158 million and EPS of $0.48.Debt Paydown Continues. During the quarter, DLH reduced the outstanding term loan to $42.9 million from the $46.8 million outstanding at fiscal year end. Mandatory principal amortization on the loan has now been satisfied until March 31, 2024. We expect debt reduction to continue to be a focus of management, all else being equal. With the rapid paydown, additional M&A, which remains a key aspect of the Company's growth strategy, may move to the forefront.Backlog. Contract backlog totaled $633.6 million at quarter's end, of which approximately $30 million is related to the FEMA task order, which is expected to be completed in the second quarter. Backlog at fiscal year-end was approximately $651.5 million.Go Forward. FEMA will continue to contribute in 2Q22 but at a much reduced level, in our view. The still unsettled Federal budget could begin to push business opportunities to the right, although we remain confident in DLH's ability for additional contract awards given the expanded array of offerings.Conference Call. Management will hold a call for investors to discuss the quarterly results this morning at 10am ET. Dial-in is 888-347-5290. We will provide additional commentary and update our models following the call. Read More >>