View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 31, 2018
Document and Entity Information
Entity Registrant Name	DLH Holdings Corp.
Entity Central Index Key	0000785557
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,899,494

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 36,131	$ 29,256	$ 100,747	$ 85,272
Direct expenses	27,793	22,871	78,429	66,805
Gross margin	8,338	6,385	22,318	18,467
General and administrative expenses	5,136	4,122	14,700	12,722
Depreciation and amortization	588	510	1,654	1,264
Income from operations	2,614	1,753	5,964	4,481
Interest expense, net	262	269	801	888
Income before income taxes	2,352	1,484	5,163	3,593
Income tax expense, net	738	539	5,084	1,345
Net income	$ 1,614	$ 945	$ 79	$ 2,248
Net income per share, basic (in dollars per share)	$ 0.14	$ 0.08	$ 0.01	$ 0.20
Net income per share - diluted (in dollars per share)	$ 0.13	$ 0.08	$ 0.01	$ 0.18
Weighted average common shares outstanding
Basic (in shares)	11,899	11,299	11,875	11,250
Diluted (in shares)	12,884	12,445	12,872	12,417

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 6,590	$ 4,930
Accounts receivable	12,420	11,911
Other current assets	856	598
Total current assets	19,866	17,439
Equipment and improvements, net	1,630	1,391
Deferred taxes, net	4,875	9,639
Goodwill	25,989	25,989
Intangible assets, net	13,805	15,127
Other long-term assets	139	139
Total assets	66,304	69,724
CURRENT LIABILITIES
Debt obligations - current	3,633	6,518
Derivative financial instruments, at fair value	0	306
Accrued payroll	5,034	3,723
Accounts payable, accrued expenses, and other current liabilities	10,475	10,895
Total current liabilities	19,142	21,442
Total long term liabilities	9,707	12,427
Total liabilities	28,849	33,869
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Common stock, $.001 par value; authorized 40,000 shares; issued and outstanding 11,899 at June 30, 2018 and 11,767 at September 30, 2017	12	12
Additional paid-in capital	84,079	82,687
Accumulated deficit	(46,636)	(46,844)
Total shareholders’ equity	37,455	35,855
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 66,304	$ 69,724

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	40,000	40,000
Common stock, issued (in shares)	11,899	11,767
Common stock, outstanding (in shares)	11,899	11,767

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net income	$ 79	$ 2,248
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	1,654	1,264
Amortization of debt financing costs as interest expense	202	194
Change in fair value of derivative financial instruments	0	49
Stock based compensation expense	1,169	613
Deferred taxes, net	4,764	1,004
Changes in operating assets and liabilities
Accounts receivable	(508)	(1,987)
Other current assets	(259)	(78)
Accounts payable, accrued payroll, accrued expenses and other current liabilities	897	1,519
Other long term assets/liabilities	(5)	145
Net cash provided by operating activities	7,993	4,971
Investing activities
Acquisition, net of cash acquired	0	(250)
Purchase of equipment and improvements	(571)	(785)
Net cash used in investing activities	(571)	(1,035)
Financing activities
Repayments on senior debt	(5,730)	(2,813)
Deferred debt financing costs	(70)	0
Repayments of capital lease obligations	(8)	(62)
Proceeds from issuance of stock upon exercise of options	46	113
Net cash used in financing activities	(5,762)	(2,762)
Net change in cash and cash equivalents	1,660	1,174
Cash and cash equivalents at beginning of period	4,930	3,427
Cash and cash equivalents at end of period	6,590	4,601
Supplemental disclosures of cash flow information
Cash paid during the period for interest	619	662
Cash paid during the period for income taxes	630	390
Derivative warrant liability reclassified as equity	(306)	0
Noncash issuance of stock upon exercise of options	$ 25	$ 0

Basis of Presentation	9 Months Ended
Basis of Presentation	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of DLH and its subsidiaries, 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 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. generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2018. Amounts as of and for the periods ended June 30, 2018 and June 30, 2017 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, 2017 filed with the Securities and Exchange Commission on December 9, 2017, as well as interim quarterly filings thereafter.

Business Overview	9 Months Ended
Business Overview	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview DLH is a full-service provider of technology-enabled health and readiness enhancement services to government agencies including the Department of Veteran Affairs ("VA"), Department of Health and Human Services ("HHS"), Department of Defense ("DoD"), and other government agencies. DLH Holdings Corp. (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our") manages its operations from its principal executive offices in Atlanta, Georgia. We have complementary headquarters offices in Silver Spring, Maryland. We employ over 1,500 skilled employees working in more than 30 locations throughout the United States. Presently, the Company derives 100% 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 the Company derives at least 10% of its revenues. Our largest customer continues to be the VA, which comprised approximately 64% and 58% of revenue for the nine months ended June 30, 2018 and 2017, respectively. Additionally, HHS, which comprised approximately 34% and 32% of revenue for the nine months ended June 30, 2018 and 2017, respectively, represents a major customer. Our current contracts are within the following markets: Defense/VA (65%), Human Services and Solutions (32%) and Public Health/Life Sciences (3%); of which 97% of these contracts have been awarded on a Time and Materials basis, 2% are Cost plus Fixed Fee contracts and 1% are Firm Fixed Price contracts. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of June 30, 2018 and September 30, 2017. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The Company's current business base is 99% prime contracts and 1% subcontracts. We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. See Note 4, Supporting Financial Information-Accounts Receivable. As of June 30, 2018, awards from VA and HHS have anticipated periods of performance ranging from approximately four months to up to two years. These agreements are subject to the Federal Acquisition Regulations. While there can be no assurance as to the actual amount of services that the Company will ultimately provide to VA and HHS under its current contracts, we believe that our strong working relationships and our effective service delivery support ongoing performance for the terms of the contracts. The VA comprised approximately 64% and 58% of revenue for the nine months ended June 30, 2018 and 2017, which was derived from 16 separate contracts. Approximately 55% of the Company's current business base with the VA is derived from nine contracts which are currently operating under extensions through October 31, 2018. We expect further extensions until the procurement is completed. A single renewal request for proposal ("RFP") has currently been issued for these contracts that requires the prime contractor be a service-disabled veteran owned small business (SDVOSB), which precludes the Company from bidding on the RFP as a prime contractor. The Company has teamed to respond to this RFP. Should the contract be awarded to an SDVOSB partner of DLH, the Company expects to continue to perform a significant amount of the contract's volume of business. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationship with VA or HHS, or if the amount of services we provide to them was materially reduced. Given the uncertainty regarding both the outcome and the timing of the VA RFP discussed above, the Company has not reflected any current impact to its financial statements from this event.

New Accounting Pronouncements	9 Months Ended
New Accounting Pronouncements	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Beginning in May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is effective for annual periods (including interim periods therein) beginning after December 15, 2017. The guidance allows either a full retrospective or modified retrospective transition method. The Company is evaluating the effects of this guidance. The Company will adopt the new guidance beginning October 1, 2018. Given our current contract mix, where performance obligations are predominantly billed on a time and materials basis as rendered, we do not anticipate any material impact to our revenue recognition methodology or timing as a result of this new guidance. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 9, the Company currently has approximately $3.0 million of lease obligations as of June 30, 2018 that would be evaluated as the implementation of this guidance becomes effective. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company has elected to adopt the provisions of this ASU as of December 31, 2017.

Supporting Financial Information

9 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Accounts receivable



		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Billed receivables		$	12,298	$	11,862
Unbilled receivables		122		49
Total accounts receivable		12,420		11,911
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	12,420	$	11,911

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, 2018 or September 30, 2017.

Other current assets



		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Prepaid insurance and benefits		$	611	$	240
Other receivables and prepaid expenses		245		358
Other current assets		$	856	$	598

Equipment and improvements, net



		(in thousands)
		June 30,			September 30,
	Ref	2018			2017
Furniture and equipment		$	326		$	331
Computer equipment		759			715
Computer software	(a)	1,640			1,108
Leasehold improvements		66			66
Total fixed assets		2,791			2,220
Less accumulated depreciation and amortization		(1,161		)	(829		)
Equipment and improvements, net	(b)	$	1,630		$	1,391

Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.2 million and $0.7 million as of June 30, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service as of January 1, 2018 with an estimated useful life of 5 years.

Ref (b): 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. Depreciation of equipment was $147 thousand and $69 thousand for the three months ended June 30, 2018 and 2017, respectively, and $332 thousand and $239 thousand for the nine months ended June 30, 2018 and 2017, respectively.

Intangible Assets



		(in thousands)
		June 30,			September 30,
	Ref	2018			2017
Intangible assets	(a)
Customer contracts and related customer relationships		$	16,626		$	16,626
Covenants not to compete		480			480
Trade name		517			517
Intangible assets		17,623			17,623
Less accumulated amortization
Customer contracts and related customer relationships		(3,602		)	(2,355		)
Covenants not to compete		(104		)	(68		)
Trade name		(112		)	(73		)
Total accumulated amortization		(3,818		)	(2,496		)
Intangible assets, net		$	13,805		$	15,127

Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense was $0.4 million and $0.4 million for the three months ended June 30, 2018 and 2017, respectively, and $1.3 million and $1.0 million for the nine months ended June 30, 2018 and 2017, respectively.



Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2018	$	441
Fiscal 2019	1,762
Fiscal 2020	1,762
Fiscal 2021	1,762
Fiscal 2022	1,762
Fiscal 2023	1,762
Thereafter	4,554
	$	13,805

Accounts payable, accrued expenses and other current liabilities



		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Accounts payable		$	3,890	$	5,205
Accrued benefits		2,263		1,831
Accrued bonus and incentive compensation		1,509		1,544
Accrued workers compensation insurance		2,182		1,598
Other accrued expenses		631		717
Accounts payable, accrued expenses, and other current liabilities		$	10,475	$	10,895

Debt obligations



		(in thousands)
		June 30,			September 30,
	Ref	2018				2017
Bank term loan	(a)	$	13,958			$	19,688
Less unamortized debt issuance costs		(823		)		(961		)
Net bank debt obligation		13,135				18,727
Less current portion of bank debt obligations		(3,633		)		(6,518		)
Long term portion of bank debt obligation		$	9,502			$	12,209



Ref (a): Maturity of the bank debt obligation as follows, in thousands:
Year 1	$	3,750
Year 2	3,750
Year 3	6,458
Total bank debt obligation	$	13,958

Interest expense



		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2018			2017			2018			2017
Interest expense	(a)	$	(192	)	$	(219	)	$	(619	)	$	(662	)
Amortization of debt financing costs as interest expense	(b)	(70		)	(70		)	(202		)	(194		)
Change in fair value of derivative financial instruments		—			3			—			(49		)
Other income (expense), net		—			17			20			17
Interest expense, net		$	(262	)	$	(269	)	$	(801	)	$	(888	)

Ref (a): Interest expense on borrowing

Ref (b): Amortizations of expenses related to securing financing

Credit Facilities

9 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Credit Facilities

A summary of our loan facilities and subordinated debt financing as of June 30, 2018 is as follows:



	($ in Millions)
	As of June 30, 2018
Lender	Arrangement	Loan Balance		Interest	Maturity Date
Fifth Third Bank	Secured term loan $25 million ceiling (a)	$	14.0	LIBOR* + 3.0%	05/01/21
Fifth Third Bank	Secured revolving line of credit $10 million ceiling (b)	$	—	LIBOR* + 3.0%	05/01/21

*LIBOR rate as of June 30 , 2018 was 1.98%

(a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank was funded at closing and is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021.

The Term Loan agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. We are in compliance with all loan covenants and restrictions.

Among other matters, we must comply with limitations on: 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 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and

(ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.0 to 1.0 for the period through June 30, 2018 to 2.5 to 1.0 for the period ending September 30, 2018 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, including acquisition expenses, net, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) G&A expenses - equity grants.

In addition to monthly 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 each year in which the Funded Indebtedness to Adjusted EBITDA ratio is greater than or equal to 2.50:1.0, or (b) 50% of the Excess Cash Flow for each fiscal year in which the funded indebtedness to Adjusted EBITDA Ratio is less than 2.50:1.0 but greater than or equal to 2.0:1.0. DLH made an excess cash flow payment of $2.9 million on January 16, 2018. DLH does not expect to make any future excess cash flow payments.

(b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million. Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company.

The Company's total borrowing availability, based on eligible accounts receivables at June 30, 2018, was $10.0 million. This capacity was comprised of $1.3 million in a stand-by letter of credit and unused borrowing capacity of $8.7 million.

The revolving line of credit has a maturity date of May 1, 2021 and is subject to loan covenants as described above in the Term Loan. DLH is fully compliant with those covenants.

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Jun. 30, 2018
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, valuation allowances established against accounts receivable and deferred tax assets, excess cash flow payments on our term debt, 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. Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. DLH recognizes and records revenue on government contracts when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled receivables, 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 approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. Goodwill and other intangible assets DLH continues to review its goodwill and other intangible 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. At September 30, 2017, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $26 million. We performed both a qualitative and quantitative 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, 2017. For the nine months ended June 30, 2018, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. 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. Long Lived Assets 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. Income Taxes DLH 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, 2018 or September 30, 2017. We report interest and penalties as a component of income tax expense. In the three and nine months ended June 30, 2018 and June 30, 2017, we recognized no interest and no penalties related to income taxes. Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock 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 simulation option pricing model 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 capital 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.

Stock-based Compensation, Equity Grants, and Warrants

9 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation, Equity Grants, and Warrants

Stock-based compensation expense

Options issued under equity incentive plans were designated as either an incentive stock or a non-statutory stock option. No option was 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, 2018, there were 1.7 million shares available for grant.

Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:



		(in thousands)				(in thousands)
		Three Months Ended				Nine Months Ended
	Ref	June 30,				June 30,
		2018		2017		2018		2017
DLH employees		$	68	$	55	$	199	$	117
Non-employee directors	(a)	173		8		970		496
Total stock option expense		$	241	$	63	$	1,169	$	613

Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors.

Unrecognized stock-based compensation expense



		(in thousands)
		June 30,
	Ref	2018		2017
Unrecognized expense for DLH employees	(a)	$	980	$	398
Unrecognized expense for non-employee directors	(b)	$	—	$	—
Total unrecognized expense		$	980	$	398

Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered 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 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. The remaining term for the weighted average expense of these shares will be 53 months.

Ref (b): Unrecognized stock expense related to prior year's equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors.

Stock option activity for the nine months ended June 30, 2018

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
	Ref	Shares		Price		Term	Value
Options outstanding September 30, 2017		1,994		$	3.83	6.4	$	8,489
Granted		217		$	6.33
Exercised		(42	)	$	1.69
Options outstanding, June 30, 2018		2,169		$	4.38	5.9	$	6,514

Indication of Value Summary

Utilizing a volatility range of 50% along with assumptions of a 10 year term and the aforementioned 10-day stock price threshold results in an indicated range of value of the Options granted during the current fiscal year as follows using the Monte Carlo Method.



										Volatility
										50%
					Vesting				Expected
	Strike		Stock		Threshold		Risk-Free		Term	Calculated
Grant Date	Price		Price		Price		Rate		(Years)	Fair Value
11/29/2017	$	6.46	$	6.46	$	12.00	2.4	%	10	$	3.98
12/01/2017	$	6.28	$	6.28	$	8.00	2.4	%	10	$	3.87
12/01/2017	$	6.28	$	6.28	$	10.00	2.4	%	10	$	3.82

Notes:
Results based on 100,000 simulations

Stock options shares outstanding, vested and unvested for the period ended



		(in thousands)
		Number of Shares
		June 30,	September 30,
	Ref	2018	2017
Vested and exercisable	(a)	1,335	1,327
Unvested		834	667
Options outstanding		2,169	1,994

Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

Earnings Per Share

9 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

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.



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net income	$	1,614	$	945	$	79	$	2,248
Denominator:
Denominator for basic net income per share - weighted-average outstanding shares	11,899		11,299		11,875		11,250
Effect of dilutive securities:
Stock options and restricted stock	985		1,146		997		1,167
Denominator for diluted net income per share - weighted-average outstanding shares	12,884		12,445		12,872		12,417

Net income per share - basic	$	0.14	$	0.08	$	0.01	$	0.20
Net income per share - diluted	$	0.13	$	0.08	$	0.01	$	0.18

Commitment and Contingencies

9 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Contractual Obligations as of June 30, 2018



				Payments Due By Period
Contractual Obligations				Next 12		2-3		4-5		More than 5
(Amounts in thousands)	Ref	Total		Months		Years		Years		Years
Debt Obligations		$	13,958	$	3,750	$	10,208	$	—	$	—
Facility leases		2,998		906		1,135		668		289
Equipment operating leases		48		27		21		—		—
Total Obligations		$	17,004	$	4,683	$	11,364	$	668	$	289

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, 2018 and September 30, 2017 was $2.18 million and $1.60 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	9 Months Ended
Related Party Transactions	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions. The Company has determined that for the three and nine months ended June 30, 2018 and 2017 there were no significant related party transactions that have occurred which require disclosure through the date that these financial statements were issued.

Income Taxes	9 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes DLH accounts for income taxes in accordance with the liability method. Under this method, 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 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted. The 2017 Tax Act significantly reduces U.S. federal tax rates, modifies rules regarding deductibility of executive compensation, limits deductions of interest expense, and revises rules regarding usability of net operating losses. Net income for the nine months ended June 30, 2018 includes an aggregate net discrete tax provision of $3.4 million as a result of the 2017 Tax Act, principally associated with revaluing the benefits of our net operating loss carryforwards from the previously recognized 34% federal rate to the 21% rate enacted. As of June 30, 2018, the Company is reporting a $4.9 million deferred tax asset, which is presented on the balance sheet as deferred taxes in the long-term assets section.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2018
Accounting Policies [Abstract]
New Accounting Pronouncements and Adoption of New Accounting Standards	New Accounting Pronouncements Beginning in May 2014, the Financial Accounting Standards Board ("FASB") issued guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is effective for annual periods (including interim periods therein) beginning after December 15, 2017. The guidance allows either a full retrospective or modified retrospective transition method. The Company is evaluating the effects of this guidance. The Company will adopt the new guidance beginning October 1, 2018. Given our current contract mix, where performance obligations are predominantly billed on a time and materials basis as rendered, we do not anticipate any material impact to our revenue recognition methodology or timing as a result of this new guidance. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 9, the Company currently has approximately $3.0 million of lease obligations as of June 30, 2018 that would be evaluated as the implementation of this guidance becomes effective. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company has elected to adopt the provisions of this ASU as of December 31, 2017.
Use of Estimates	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, valuation allowances established against accounts receivable and deferred tax assets, excess cash flow payments on our term debt, 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.
Revenue Recognition	Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. DLH recognizes and records revenue on government contracts when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled receivables, 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 approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates.
Goodwill and Other Intangible Assets	Goodwill and other intangible assets DLH continues to review its goodwill and other intangible 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.
Long-lived Assets	Long Lived Assets 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.
Income Taxes	Income Taxes DLH 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, 2018 or September 30, 2017. We report interest and penalties as a component of income tax expense. In the three and nine months ended June 30, 2018 and June 30, 2017, we recognized no interest and no penalties related to income taxes.
Stock-based Equity Compensation	Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock 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 simulation option pricing model 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 capital 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 (Loss) 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 stock method.

Supporting Financial Information (Tables)

9 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable

Accounts receivable



		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Billed receivables		$	12,298	$	11,862
Unbilled receivables		122		49
Total accounts receivable		12,420		11,911
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	12,420	$	11,911

Schedule of Other Current Assets

Other current assets



		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Prepaid insurance and benefits		$	611	$	240
Other receivables and prepaid expenses		245		358
Other current assets		$	856	$	598

Schedule of Equipment and Improvements, Net

Equipment and improvements, net



		(in thousands)
		June 30,			September 30,
	Ref	2018			2017
Furniture and equipment		$	326		$	331
Computer equipment		759			715
Computer software	(a)	1,640			1,108
Leasehold improvements		66			66
Total fixed assets		2,791			2,220
Less accumulated depreciation and amortization		(1,161		)	(829		)
Equipment and improvements, net	(b)	$	1,630		$	1,391

Schedule of Intangible Assets

Intangible Assets



		(in thousands)
		June 30,			September 30,
	Ref	2018			2017
Intangible assets	(a)
Customer contracts and related customer relationships		$	16,626		$	16,626
Covenants not to compete		480			480
Trade name		517			517
Intangible assets		17,623			17,623
Less accumulated amortization
Customer contracts and related customer relationships		(3,602		)	(2,355		)
Covenants not to compete		(104		)	(68		)
Trade name		(112		)	(73		)
Total accumulated amortization		(3,818		)	(2,496		)
Intangible assets, net		$	13,805		$	15,127

Schedule of Estimated Amortization of Intangible Assets



Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2018	$	441
Fiscal 2019	1,762
Fiscal 2020	1,762
Fiscal 2021	1,762
Fiscal 2022	1,762
Fiscal 2023	1,762
Thereafter	4,554
	$	13,805

Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities

Accounts payable, accrued expenses and other current liabilities



		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Accounts payable		$	3,890	$	5,205
Accrued benefits		2,263		1,831
Accrued bonus and incentive compensation		1,509		1,544
Accrued workers compensation insurance		2,182		1,598
Other accrued expenses		631		717
Accounts payable, accrued expenses, and other current liabilities		$	10,475	$	10,895

Schedule of Debt Obligations

Debt obligations



		(in thousands)
		June 30,			September 30,
	Ref	2018				2017
Bank term loan	(a)	$	13,958			$	19,688
Less unamortized debt issuance costs		(823		)		(961		)
Net bank debt obligation		13,135				18,727
Less current portion of bank debt obligations		(3,633		)		(6,518		)
Long term portion of bank debt obligation		$	9,502			$	12,209



Ref (a): Maturity of the bank debt obligation as follows, in thousands:
Year 1	$	3,750
Year 2	3,750
Year 3	6,458
Total bank debt obligation	$	13,958

Schedule of Expense

Interest expense



		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2018			2017			2018			2017
Interest expense	(a)	$	(192	)	$	(219	)	$	(619	)	$	(662	)
Amortization of debt financing costs as interest expense	(b)	(70		)	(70		)	(202		)	(194		)
Change in fair value of derivative financial instruments		—			3			—			(49		)
Other income (expense), net		—			17			20			17
Interest expense, net		$	(262	)	$	(269	)	$	(801	)	$	(888	)

Ref (a): Interest expense on borrowing

Ref (b): Amortizations of expenses related to securing financing

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Credit Facilities (Tables)

9 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Credit Facilities

A summary of our loan facilities and subordinated debt financing as of June 30, 2018 is as follows:



	($ in Millions)
	As of June 30, 2018
Lender	Arrangement	Loan Balance		Interest	Maturity Date
Fifth Third Bank	Secured term loan $25 million ceiling (a)	$	14.0	LIBOR* + 3.0%	05/01/21
Fifth Third Bank	Secured revolving line of credit $10 million ceiling (b)	$	—	LIBOR* + 3.0%	05/01/21

*LIBOR rate as of June 30 , 2018 was 1.98%

Stock-based Compensation, Equity Grants, and Warrants (Tables)

9 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation Expense

Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:



		(in thousands)				(in thousands)
		Three Months Ended				Nine Months Ended
	Ref	June 30,				June 30,
		2018		2017		2018		2017
DLH employees		$	68	$	55	$	199	$	117
Non-employee directors	(a)	173		8		970		496
Total stock option expense		$	241	$	63	$	1,169	$	613

Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors.

Unrecognized stock-based compensation expense



		(in thousands)
		June 30,
	Ref	2018		2017
Unrecognized expense for DLH employees	(a)	$	980	$	398
Unrecognized expense for non-employee directors	(b)	$	—	$	—
Total unrecognized expense		$	980	$	398

Stock Option Activity



						(in years)
						Weighted
				Weighted		Average	(in thousands)
		(in thousands)		Average		Remaining	Aggregate
		Number of		Exercise		Contractual	Intrinsic
	Ref	Shares		Price		Term	Value
Options outstanding September 30, 2017		1,994		$	3.83	6.4	$	8,489
Granted		217		$	6.33
Exercised		(42	)	$	1.69
Options outstanding, June 30, 2018		2,169		$	4.38	5.9	$	6,514

Stock Options Fair Value Assumptions



										Volatility
										50%
					Vesting				Expected
	Strike		Stock		Threshold		Risk-Free		Term	Calculated
Grant Date	Price		Price		Price		Rate		(Years)	Fair Value
11/29/2017	$	6.46	$	6.46	$	12.00	2.4	%	10	$	3.98
12/01/2017	$	6.28	$	6.28	$	8.00	2.4	%	10	$	3.87
12/01/2017	$	6.28	$	6.28	$	10.00	2.4	%	10	$	3.82

Notes:
Results based on 100,000 simulations

Stock Option Shares Outstanding, Vested and Expected to Vest

Stock options shares outstanding, vested and unvested for the period ended



		(in thousands)
		Number of Shares
		June 30,	September 30,
	Ref	2018	2017
Vested and exercisable	(a)	1,335	1,327
Unvested		834	667
Options outstanding		2,169	1,994

Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Diluted earnings per share

Diluted earnings per share is calculated using the treasury stock method.



	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net income	$	1,614	$	945	$	79	$	2,248
Denominator:
Denominator for basic net income per share - weighted-average outstanding shares	11,899		11,299		11,875		11,250
Effect of dilutive securities:
Stock options and restricted stock	985		1,146		997		1,167
Denominator for diluted net income per share - weighted-average outstanding shares	12,884		12,445		12,872		12,417

Net income per share - basic	$	0.14	$	0.08	$	0.01	$	0.20
Net income per share - diluted	$	0.13	$	0.08	$	0.01	$	0.18

Commitment and Contingencies (Tables)

9 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule

Contractual Obligations as of June 30, 2018



				Payments Due By Period
Contractual Obligations				Next 12		2-3		4-5		More than 5
(Amounts in thousands)	Ref	Total		Months		Years		Years		Years
Debt Obligations		$	13,958	$	3,750	$	10,208	$	—	$	—
Facility leases		2,998		906		1,135		668		289
Equipment operating leases		48		27		21		—		—
Total Obligations		$	17,004	$	4,683	$	11,364	$	668	$	289

Business Overview (Details)	9 Months Ended
Business Overview (Details)	Jun. 30, 2018 employee location	Jun. 30, 2017
Concentration Risk [Line Items]
Business base percentage, prime contracts	99.00%
Business base percentage, subcontracts	1.00%
VA and HSS \| Minimum
Concentration Risk [Line Items]
Government contract, term of award	4 months
VA and HSS \| Maximum
Concentration Risk [Line Items]
Government contract, term of award	2 years
Customer concentration \| HSS
Concentration Risk [Line Items]
Concentration risk percentage	32.00%
Customer concentration \| Defense/VA
Concentration Risk [Line Items]
Concentration risk percentage	65.00%
Customer concentration \| Public Health/Life Sciences
Concentration Risk [Line Items]
Concentration risk percentage	3.00%
Customer concentration \| Public Health/Life Sciences \| Time and Materials
Concentration Risk [Line Items]
Concentration risk percentage	97.00%
Customer concentration \| Public Health/Life Sciences \| Cost Plus Fixed Fee
Concentration Risk [Line Items]
Concentration risk percentage	2.00%
Customer concentration \| Public Health/Life Sciences \| Firm Fixed Price
Concentration Risk [Line Items]
Concentration risk percentage	1.00%
Customer concentration \| Revenue concentration \| US Federal Government
Concentration Risk [Line Items]
Concentration risk percentage	100.00%
Customer concentration \| Revenue concentration \| VA
Concentration Risk [Line Items]
Concentration risk percentage	64.00%	58.00%
Customer concentration \| Revenue concentration \| HSS
Concentration Risk [Line Items]
Concentration risk percentage	34.00%	32.00%
UNITED STATES
Concentration Risk [Line Items]
Number of employees \| employee	1,500
Number of locations in which entity operates \| location	30

New Accounting Pronouncements (Details) $ in Millions	Jun. 30, 2018 USD ($)
Accounting Changes and Error Corrections [Abstract]
Lease obligations, future minimum payments due	$ 3.0

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 12,420	$ 11,911
Less: Allowance for doubtful accounts	0	0
Accounts receivable, net	12,420	11,911
Billed Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	12,298	11,862
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 122	$ 49

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid insurance and benefits	$ 611	$ 240
Other receivables and prepaid expenses	245	358
Other current assets	$ 856	$ 598

Supporting Financial Information - Equipment and Improvements, Net (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Furniture and equipment	$ 326,000		$ 326,000		$ 331,000
Computer equipment	759,000		759,000		715,000
Computer software	1,640,000		1,640,000		1,108,000
Leasehold improvements	66,000		66,000		66,000
Total fixed assets	2,791,000		2,791,000		2,220,000
Less accumulated depreciation and amortization	(1,161,000)		(1,161,000)		(829,000)
Equipment and improvements, net	1,630,000		$ 1,630,000		1,391,000
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets			3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets			7 years
New Enterprise Resource Planning (ERP) System
Property, Plant and Equipment [Line Items]
Capitalized costs of license and implementation related to application development			$ 1,200,000		$ 700,000
Estimated useful life of capitalized computer software			5 years
Leasehold Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets			3 years
Leasehold Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets			7 years
Equipment
Property, Plant and Equipment [Line Items]
Depreciation of equipment	$ 147,000	$ 69,000	$ 332,000	$ 239,000

Supporting Financial Information - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 17,623		$ 17,623		$ 17,623
Total accumulated amortization	(3,818)		(3,818)		(2,496)
Intangible assets, net	13,805		$ 13,805		15,127
Estimated useful live of intangible assets			10 years
Amortization expense of intangible assets	400	$ 400	$ 1,300	$ 1,000
Customer contracts and related customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	16,626		16,626		16,626
Total accumulated amortization	(3,602)		(3,602)		(2,355)
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	480		480		480
Total accumulated amortization	(104)		(104)		(68)
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	517		517		517
Total accumulated amortization	$ (112)		$ (112)		$ (73)

Supporting Financial Information - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining Fiscal 2018	$ 441
Fiscal 2019	1,762
Fiscal 2020	1,762
Fiscal 2021	1,762
Fiscal 2022	1,762
Fiscal 2023	1,762
Thereafter	4,554
Intangible assets, net	$ 13,805	$ 15,127

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 3,890	$ 5,205
Accrued benefits	2,263	1,831
Accrued bonus and incentive compensation	1,509	1,544
Accrued workers compensation insurance	2,182	1,598
Other accrued expenses	631	717
Total accrued expenses and other current liabilities	$ 10,475	$ 10,895

Supporting Financial Information - Debt Obligations (Details) - Debt Obligations - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Bank term loan	$ 13,958	$ 19,688
Less unamortized debt issuance costs	(823)	(961)
Net bank debt obligation	13,135	18,727
Less current portion of bank debt obligations	(3,633)	(6,518)
Long term portion of bank debt obligation	$ 9,502	$ 12,209

Supporting Financial Information - Maturities of Debt Obligations (Details) - Debt Obligations - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Year 1	$ 3,750
Year 2	3,750
Year 3	6,458
Total bank debt obligation	$ 13,958	$ 19,688

Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest expense	$ (192)	$ (219)	$ (619)	$ (662)
Amortization of debt financing costs as interest expense	(70)	(70)	(202)	(194)
Change in fair value of derivative financial instruments	0	3	0	(49)
Other income (expense), net	0	17	20	17
Other income (expense) net	$ (262)	$ (269)	$ (801)	$ (888)

Credit Facilities - Loan Facilities and Subordinated Debt (Details) - USD ($)	9 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Interest rate (percent)	1.98%
Term Loans \| Term Loan with Fifth Third Bank
Line of Credit Facility [Line Items]
Maximum availability	$ 25,000,000.0
Number of equal installment payments	59 months
Periodic principal payment	$ 312,500
Line of Credit
Line of Credit Facility [Line Items]
Maximum availability	10,000,000
Debt Obligations
Line of Credit Facility [Line Items]
Loan balance	13,958,000	$ 19,688,000
Debt Obligations \| Term Loans
Line of Credit Facility [Line Items]
Maximum availability	25,000,000
Loan balance	$ 14,000,000
Debt Obligations \| Term Loans \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on loan	1.98%
Debt Obligations \| Line of Credit
Line of Credit Facility [Line Items]
Maximum availability	$ 10,000,000
Loan balance	$ 0
Debt Obligations \| Line of Credit \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on loan	1.98%

Credit Facilities - Narrative (Details) $ in Millions		9 Months Ended
Credit Facilities - Narrative (Details) $ in Millions	Jan. 16, 2018 USD ($)	Jun. 30, 2018 USD ($)
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%
Excess Cash Flows Less Than 2.50 Greater Than 2.00
Line of Credit Facility [Line Items]
Percentage of excess cash flow for each year of funded indebtedness to EBDTA		50.00%
Term Loans
Line of Credit Facility [Line Items]
Fixed charge coverage ratio		0.0135
Ratio of debt to EBITDA at closing at thereafter		0.0299
Ratio of debt to EBDTA for the period through December 31, 2017		3.0
Ratio of debt to EBDTA for the period ending September 30, 2018 through maturity		0.025
Term Loans \| Excess Cash Flows Greater Than Or Equal to 2.50
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual		2.50
Line of Credit
Line of Credit Facility [Line Items]
Unused borrowing capacity		$ 8.7
Line of credit, maximum borrowing capacity		10.0
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		$ 1.3
Term Loan with Fifth Third Bank \| Term Loans
Line of Credit Facility [Line Items]
Excess cash flow payment of loan agreement	$ 2.9
Maximum \| Term Loans \| Excess Cash Flows Less Than 2.50 Greater Than 2.00
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual		2.50
Minimum \| Term Loans \| Excess Cash Flows Less Than 2.50 Greater Than 2.00
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual		2.0

Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 25,989,000		$ 25,989,000		$ 25,989,000
Goodwill impairment					0
Uncertain tax positions	0		0		$ 0
Income tax interest expense	0	$ 0
Income tax penalties expense			0	$ 0
Cash, FDIC insured amount	$ 250,000,000		$ 250,000,000
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
Employee Stock Option \| Long Term Incentive Plan 2006 [Member]
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

Stock-based Compensation, Equity Grants, and Warrants - Narrative (Details) - Employee Stock Option	9 Months Ended
	Jun. 30, 2018 shares
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)	1,700,000

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	$ 241	$ 63	$ 1,169	$ 613
Total unrecognized expense	980		$ 980		$ 398
Weighted average share based compensation expense recognition period			53 months
DLH Employees \| Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	68	55	$ 199	117
Total unrecognized expense	980		980		398
Non-employee Directors \| Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	173	$ 8	970	$ 496
Total unrecognized expense	$ 0		$ 0		$ 0

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Number of Shares
Outstanding at the beginning of the period (in shares)	1,994
Granted (in shares)	217
Exercised (in shares)	(42)
Outstanding at the end of the period (in shares)	2,169	1,994
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 3.83
Granted (in dollars per share)	6.33
Exercised (in dollars per share)	1.69
Outstanding at the end of the period (in dollars per share)	$ 4.38	$ 3.83
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term	5 years 10 months 15 days	6 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 8,489
Outstanding at the end of the period (in dollars)		$ 8,489

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Fair Value Assumptions (Details) - $ / shares			9 Months Ended
	Dec. 01, 2017	Nov. 29, 2017	Jun. 30, 2018
11/29/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)		$ 6.46
Stock price (in dollars per share)		6.46
Threshold vesting price (in dollars per share)		12
Calculated fair value (in dollars per share)		$ 3.98
12/1/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	$ 6.28
Stock price (in dollars per share)	6.28
Threshold vesting price (in dollars per share)	8
Calculated fair value (in dollars per share)	3.87
12/1/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	6.28
Stock price (in dollars per share)	6.28
Threshold vesting price (in dollars per share)	10
Calculated fair value (in dollars per share)	$ 3.82
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility rate			50.00%
Expected term (years)			10 years
Stock price threshold term			10 days
Employee Stock Option \| 11/29/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		10 years
Risk free interest rate		2.40%
Employee Stock Option \| 12/1/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	10 years
Risk free interest rate	2.40%
Employee Stock Option \| 12/1/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	10 years
Risk free interest rate	2.40%

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands	Jun. 30, 2018	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested and exercisable (in shares)	1,335	1,327
Unvested (in shares)	834	667
Option outstanding (in shares)	2,169	1,994

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator [Abstract]
Net income	$ 1,614	$ 945	$ 79	$ 2,248
Denominator [Abstract]
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares)	11,899	11,299	11,875	11,250
Effect of dilutive securities:
Stock options and restricted stock (shares)	985	1,146	997	1,167
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares)	12,884	12,445	12,872	12,417
Net income per share, basic (in dollars per share)	$ 0.14	$ 0.08	$ 0.01	$ 0.20
Net income per share - diluted (in dollars per share)	$ 0.13	$ 0.08	$ 0.01	$ 0.18

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109223946&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591552-111686

+ Details

Commitment and Contingencies (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Operating Leases
Total operating leases	$ 3,000
Long Term Debt and Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Total Obligations	17,004
Next 12 Months	4,683
2-3 Years	11,364
4-5 Years	668
More than 5 Years	289
Facility leases
Operating Leases
Total operating leases	2,998
Next 12 Months	906
2-3 Years	1,135
4-5 Years	668
More than 5 Years	289
Equipment operating leases
Operating Leases
Total operating leases	48
Next 12 Months	27
2-3 Years	21
4-5 Years	0
More than 5 Years	0
Debt Obligations
Debt Obligations
Total bank debt obligation	13,958	$ 19,688
Next 12 Months	3,750
2-3 Years	10,208
4-5 Years	0
More than 5 Years	$ 0

Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Accrued workers compensation insurance	$ 2,182	$ 1,598

Income Taxes (Details) - USD ($) $ in Thousands	9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Net discrete tax provision as result of 2017 Tax Act	$ 3,400
Deferred tax asset, net, long-term	$ 4,875	$ 9,639