Maximus, Inc. · NYSE:MMS
Maximus — Q2 FY2013 Earnings Presentation
19 slides from Maximus's earnings presentation, May 9, 2013
Slide 1: Fiscal 2013 Second Quarter Earnings
Fiscal 2013 Second Quarter Earnings David N. Walker Chief Financial Officer and Treasurer May 9, 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, inclu
Slide 2: Total Company Financial Results
Total Company Financial Results Q2 FY13 results in line with expectations ($ in millions) Q2 FY13 Q2 FY12 % Change Revenue • Q2 FY13 results included $16m of non-recurring Total Company $ 326.4 $ 243.5 revenue, pre-tax income of $10.9m (after tax Terminated Contract Revenue (16.0) - $6.5m), or $0.19
Slide 3: Health Services Segment
Health Services Segment ($ in millions) Q2 FY13 Q2 FY12 % Change Revenue Health Services $ 197.9 $ 161.2 23% Operating Income Health Services $ 28.9 $ 18.2 59% Operating Margin % 14.6% 11.3% Revenue • Q2 revenue increased 23% to $197.9 million, driven by the PSI acquisition, expansion on existing pr
Slide 4: Human Services Segment
Human Services Segment ($ in millions) Q2 FY13 Q2 FY12 % Change Revenue Human Services $ 128.4 $ 82.3 Terminated Contract Revenue (16.0) - Adjusted Revenue $ 112.4 $ 82.3 37% Operating Income Human Services $ 21.5 $ 8.6 Terminated Contract OI (10.9) - Adjusted Operating Income $ 10.6 $ 8.6 23% Adjus
Slide 5: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Cash Flows & DSOs • Q2 cash flow consistent with expectations • As expected, we continue to experience administrative payment delays on two programs Reconciliation to Free Cash Flow • DSOs were sequentially lower at 66 days at March 31 (excluding revenue from the termina
Slide 6: FY13 Guidance: Reiterating Revenue & Adjusted EPS
FY 13 Guidance: Reiterating 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 Reiterating Revenue and Earnings Guidance; Maintaining Cash Flow Guidance • We ar
Slide 7: Fiscal 2013 Second Quarter Earnings
Fiscal 2013 Second Quarter Earnings Richard A. Montoni President and Chief Executive Officer May 9, 2013 7
Slide 8: On Track for Continued Growth in Fiscal 2013
On Track for Continued Growth in Fiscal 2013 • Solid Q2 financial results support growth trajectory for the remainder of fiscal year 2013 and beyond • Several new awards to share today and start-up programs are progressing largely as planned • On track for exceptional top- and bottom-line growth in
Slide 9: Health Services: Renewal of MassHealth Contract
Health Services: Renewal of MassHealth Contract • Received award notification for a five-year renewal of MassHealth Medicaid contract • Scope of work is largely unchanged; MAXIMUS: − Provides general eligibility and program participation customer service to Medicaid members and providers − Enrolls M
Slide 10: Health Care Reform Update: Federal Market
Health Care Reform Update: Federal Market • Seeing the expected pick-up in procurements on the federally facilitated exchange, also known as the Health Insurance Marketplace • Part of the team selected by CMS for the contact center operations contract: − MAXIMUS is a subcontractor to General Dynamic
Slide 11: Health Care Reform Update: State Market
Health Care Reform Update: State Market • Signed two new contracts to support state HIX • Vermont: Contract amendment for customer support center for the state’s health benefits exchange − Builds upon a 17-year partnership with the Department of Vermont Health Access and expands our customer support
Slide 12: Health Services: Future Growth Opportunities
Health Services: Future Growth Opportunities • Domestically, states that initially elect a federal or partnership exchange may transition to state-based exchanges down the road; presents future opportunity • Health care reform will be a long-term, multi- year growth driver, as health insurance marke
Slide 13: Human Services: Growth in the U.S. Markets
Human Services: Growth in the U.S. Markets • Launched a new contract with the New York City Human Resources Administration − Employment services centers in the Bronx and Staten Island − Provide assessment, work readiness, job placement and retention, and support services to participants in public pr
Slide 14: Human Services: International Update
Human Services: International Update • U.K. Work Programme contract meeting expectations − Department of Work and Pensions will release next performance statistics on June 27, 2013 − Expect the government will start planning for work reallocation, but expect shift of work to happen in 2014 • Saudi A
Slide 15: Contract Rebids
Contract Rebids • Started fiscal year 2013 with 14 contracts with a total value of approximately $475 million up for rebid − Texas Medicaid Enrollment and MassHealth contracts make up the lion’s share with a combined value of approximately $320 million − With award notification on both of these cont
Slide 16: New Awards and Sales Pipeline
New Awards and Sales Pipeline At March 31, 2013: • MAXIMUS signed $886 million in new contract awards ($700 million signed in Q2) • Approximately $425 million of “awarded but unsigned” contracts • Total sales pipeline of opportunities was $2.3 billion, slightly lower than last quarter, driven mostly
Slide 17: Use of Cash
Use of Cash • Cash in the quarter continues to be strong, with the majority held overseas • Active M&A program with a very strategic approach towards opportunities that complement our growth strategy • Subsequent to quarter end, announced a two-for-one stock split, which will take place at the end o
Slide 18: Conclusion
Conclusion • Focus on delivering high-quality, value-added services to government clients • Strong performance keeps us on a solid path for achieving our long-term goals of: 1. Securing our fair share of health care reform work in the U.S. 2. Growing our federal operations 3. Expanding our global op
Slide 19: Non-GAAP Measures
Non-GAAP Measures This presentation refers to non-GAAP financial measures, including free cash flows from operating activities, adjusted diluted earnings per share from continuing operations, organic growth, as well as revenues, operating income, net income and earnings per share excluding a termina