Maximus, Inc. · NYSE:MMS
Maximus — FY2012 Earnings Presentation
17 slides from Maximus's earnings presentation, Nov 15, 2012
Slide 1: Fiscal 2012 Fourth Quarter & Full Year Earnings
Fiscal 2012 Fourth Quarter & Full Year Earnings David N. Walker Chief Financial Officer and Treasurer November 15, 2012 A number of statements being made today will be forward-looking in nature. Such statements are only predictions and actual events or results may differ materially as a result of ri
Slide 2: Fiscal 2012 Highlights
Fiscal 2012 Highlights • Another solid year of financial results, reflecting the Company’s healthy portfolio of projects. Highlights include: • Strong growth in core markets, • The acquisition and integration of PSI, • And the successful ramp up on the Work Programme contract in the UK, which achiev
Slide 3: Selected Financial Results from Continuing Operations
Selected Financial Results from Continuing Operations Q4 FY12 Q4 FY11 • Q4 revenue grew 20% and FY12 % FY 12 FY11 % ($mm, except per share data) revenue grew 13% driven by new work, Actual Actual Change Actual Actual Change Revenue* contract expansions, and the PSI Health Services $ 181.6 $ 156.3 16
Slide 4: Health Services Segment
Health Services Segment Q4 FY12 Q4 FY11 % FY 12 FY11 % ($ in millions) Actual Actual Change Actual Actual Change Revenue Health Services $ 181.6 $ 156.3 16% $ 671.2 $ 565.9 19% Operating Income Health Services $ 20.0 $ 20.6 (3%) $ 80.6 $ 74.7 8% Operating Margin % 11.0% 13.2% 12.0% 13.2% Revenue • Q
Slide 5: Human Services Segment
Human Services Segment Q4 FY12 Q4 FY11 % FY 12 FY11 % ($ in millions) Actual Actual Change Actual Actual Change Revenue Human Services $ 119.2 $ 93.8 27% $ 379.0 $ 363.7 4% Operating Income Human Services $ 21.8 $ 13.3 64% $ 49.9 $ 46.8 7% Operating Margin % 18.3% 14.2% 13.2% 12.9% Revenue • Q4 reve
Slide 6: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Another quarter of solid net income contributed to strong cash flows for the year & DSOs of 56 days for Q4 Cash Flows: • Q4 cash provided by operating activities from continuing operations totaled $30.1 million, with free cash flow* of $21.7 million • FY12 cash provided
Slide 7: Introducing FY 2013 Guidance
Introducing FY 2013 Guidance Dynamics that play into fiscal 2013 guidance: • Margins fluctuations due to normal contract life cycle, as well as the mix of life cycle and contract type in any given year • An unprecedented amount of new programs in start up or in the early states of contract cycles; o
Slide 8: Fiscal 2012 Fourth Quarter & Full Year Earnings
Fiscal 2012 Fourth Quarter & Full Year Earnings Richard A. Montoni President and Chief Executive Officer November 15, 2012 8
Slide 9: Solid Performance in Fiscal 2012
Solid Performance in Fiscal 2012 • Proud of our achievements in fiscal 2012 as we continue to grow the business and maximize shareholder value: − Completed the acquisition of PSI, expanding our domestic footprint − Achieved breakeven on our UK Work Programme contract, setting the table for growth in
Slide 10: Health Care Reform Update
Health Care Reform Update • Following last week’s elections, ACA will likely continue as planned and states can focus on meeting future implementation deadlines • States continue to weigh their options and timelines for Medicaid expansion • Three possible paths that states can take in setting up exc
Slide 11: HIX Procurement Update
HIX Procurement Update • Active HIX procurements among two groups of states: − States seeking customer contact services for state-based HIX − States planning ahead for their transition from the federal exchange following the completion of the one year requirement • Federal government is in the proce
Slide 12: Expanded Domestic Health Services Portfolio
Expanded Domestic Health Services Portfolio • Illinois Enhanced Eligibility Verification − Providing assistance to state caseworkers who verify the continued eligibility of individuals for medical assistance programs − Two-year, $77 million contract began in September and contains two additional one
Slide 13: Extending Core Federal Services to New Markets
Extending Core Federal Services to New Markets California Workers Compensation Reviews • Part of a comprehensive workers compensation reform effort that the state expects to bring hundreds of millions of dollars in cost savings • Providing independent medical reviews of denied authorization requests
Slide 14: International Operations Update
International Operations Update United Kingdom • Work Programme contract achieved breakeven in Q4 of FY12 • MAXIMUS also won a small but strategic new contract for the Day One Support for Young People Trailblazer one-year pilot program to secure work experience for youth • This is another example of
Slide 15: Contract Rebids and Option Years
Contract Rebids and Option Years • Fiscal 2012 was a relatively light, but successful year for rebids and option periods − Won or received extensions on 99% of the approximately $400 million total value of the 14 contracts up for rebid − Successfully secured all of our option years for FY 12 for a t
Slide 16: New Awards and Sales Pipeline
New Awards and Sales Pipeline At September 30, 2012: • Another strong year of contract awards with YTD signed awards of $1.44 billion compared to $1.61 billion at the end of FY11 • Awarded but unsigned contracts totaling approximately $128 million At November 7, 2012: • Total sales pipeline of oppor
Slide 17: Conclusion
Conclusion • Thank you to our more than 8,000 employees for their hard work, dedication to customer service, and diligent focus on adding value played an important part in helping us achieve our objectives in fiscal 2012 • We established a solid foundation in winning our fair share of health care re