Maximus, Inc. · NYSE:MMS
Maximus — Q1 FY2013 Earnings Presentation
17 slides from Maximus's earnings presentation, Feb 7, 2013
Slide 1: Fiscal 2013 First Quarter Earnings
Fiscal 2013 First Quarter Earnings David N. Walker Chief Financial Officer and Treasurer February 7, 2013 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 risks we face, i
Slide 2: Selected Financial Results from Continuing Operations
Selected Financial Results from Continuing Operations Q1 FY13 Q1 FY12 % Q1 FY13 results in line with expectations ($mm, except per share data) Actual Actual Change Revenue • Revenue grew 19%, driven by solid growth in both domestic and international operations Health Services $ 176.0 $ 158.0 11% and
Slide 3: Health Services Segment
Health Services Segment Q1 FY13 Q1 FY12 % ($ in millions) Actual Actual Change Revenue Health Services $ 176.0 $ 158.0 11% Operating Income Health Services $ 20.6 $ 16.8 23% Operating Margin % 11.7% 10.6% Revenue • Q1 revenue increased 11% to $176.0 million, driven by the PSI acquisition, as well as
Slide 4: Human Services Segment
Human Services Segment Q1 FY13 Q1 FY12 % ($ in millions) Actual Actual Change Revenue Human Services $ 110.3 $ 81.6 35% Operating Income Human Services $ 13.7 $ 10.3 33% Operating Margin % 12.4% 12.6% Revenue • Q1 revenue increased 35% to $110.3 million, driven by the PSI acquisition, as well as org
Slide 5: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Cash Flows • Q1 cash flow was consistent with seasonal expectations • As expected, cash flow was dampened as a result of normal government payment slowdowns during the holidays and resulted in DSOs of 67 days; we do expect DSOs to continue at a similar level next quarter
Slide 6: FY13 Guidance: Increased Revenue & Adjusted EPS
FY 13 Guidance: Increased Revenue & Adjusted EPS Consolidated Guidance FY13 E Revenue $1.25B - $1.30B Adjusted Diluted EPS $3.00 - $3.15 Cash from Continuing Ops $115M - $135M Free Cash Flow from Cont Ops $70M - $90M Increasing Revenue and Earnings Guidance; Maintaining Cash Flow Guidance 1. New gui
Slide 7: Fiscal 2013 First Quarter Earnings
Fiscal 2013 First Quarter Earnings Richard A. Montoni President and Chief Executive Officer February 7, 2013 7
Slide 8: Solid Start to Fiscal 2013
Solid Start to Fiscal 2013 • Kicked off fiscal 2013 with strong performances from both Segments • Starting to benefit from secular trends that are driving increasing demand for our services • An unprecedented number of start-up programs are going largely as planned • All-in-all, these tailwinds posi
Slide 9: Health Care Reform as Primary Growth Driver
Health Care Reform as Primary Growth Driver • Health care reform continues to serve as our primary domestic growth driver in the U.S.; making steady progress towards securing our fair share of the work • As a reminder, management continues to believe that a reasonable target for HIX market share in
Slide 10: Supporting the NY Health Insurance Exchange
Supporting the NY Health Insurance Exchange • New York State is leveraging and transforming the existing centralized Enrollment Center operated by MAXIMUS into a single entry point for all public health insurance programs • The Enrollment Center will serve as the foundation for customer service and
Slide 11: States Declare Initial HIX Models
States Declare Initial HIX Models • States remain at various stages of preparation to meet October’s open enrollment deadline • Last month, the U.S. Department of Health and Human Services announced that it will waive or extend deadlines for states that want to operate their own exchanges or regulat
Slide 12: The HIX Landscape in 2013 and Beyond
The HIX Landscape in 2013 and Beyond • As expected, new entrants coming into the state-based exchange market, such as commercial call center companies • We see an increasing presence in certain states from unions representing government employees; California is likely to use a combination of county
Slide 13: International Operations Meeting Expectations
International Operations Meeting Expectations • Pilot program in Saudi Arabia is fully operational and meeting our expectations • Work Programme contract in the UK remains fundamentally on track; continue to optimize our operations to meet caseload demands • During the quarter, the UK Department of
Slide 14: International Growth Strategy
International Growth Strategy • Longer-term international growth strategy focuses on tracking reform efforts where we see emerging opportunities for MAXIMUS • Next 12 to 24 months may be the right time to expand core health services offerings to markets where our past focus has been on welfare-to-wo
Slide 15: Contract Rebids and Option Years
Contract Rebids and Option Years • For fiscal 2013, we have 14 contracts up for rebid with a total value of approximately $475 million − Includes Texas Enrollment Broker and MassHealth contracts, which have a combined value of approx. $320 million − On January 7, the TX Health and Human Services Com
Slide 16: New Awards and Sales Pipeline
New Awards and Sales Pipeline New Sales Dec. 31, 2012 YTD signed awards $178 million New contracts pending $459 million Sales Opportunities Feb. 1, 2013 Total pipeline $2.7 billion At December 31, 2012: • MAXIMUS signed $178 million in new contract awards • We also had approximately $460 million of
Slide 17: Conclusion
Conclusion • Governments are dealing with growing case volumes, aging populations and the increasingly complex benefits programs • Companies like MAXIMUS can provide much-needed support as governments strive to address these issues • MAXIMUS is gaining additional traction in the Health Segment as go