Maximus, Inc. · NYSE:MMS
Maximus — Q4 FY2013 Earnings Presentation
20 slides from Maximus's earnings presentation, Nov 15, 2013
Slide 1: Fiscal 2013 Fourth Quarter & Full Year Earnings
Fiscal 2013 Fourth Quarter & Full Year Earnings David N. Walker Chief Financial Officer and Treasurer November 15, 2013 1
Slide 2: Forward-looking Statements & Non-GAAP Information
Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with the Company’s most recent quarterly earnings press release, along with listening to or reading a transcript of the comments of Company management from the Company’s most recent quarterly earnings confer
Slide 3: Total Company Financial Results
Total Company Financial Results • Q4 revenue increased 28%; Organic revenue growth of 23% ($mm, except per share data) Q4 FY13 Q4 FY12 % FY13 FY12 % − Revenue better-than-expected due to Actual Actual Change Actual Actual Change several change orders in Q4, that were expected to occur in FY14 Total
Slide 4: Health Services Segment
Health Services Segment Q4 FY13 Q4 FY12 % FY13 FY12 % ($ in millions) Actual Actual Change Actual Actual Change Revenue Health Services $ 271.0 $ 181.6 49% $ 862.9 $ 671.2 29% Operating Income Health Services $ 45.9 $ 20.0 130% $ 129.8 $ 80.6 61% Operating Margin % 16.9% 11.0% 15.0% 12.0% Fourth Qua
Slide 5: Human Services Segment
Human Services Segment Q4 FY13 Q4 FY12 % FY13 FY12 % ($ in millions) Actual Actual Change Actual Actual Change Revenue Human Services $ 113.3 $ 119.2 (5%) $ 468.4 $ 379.0 24% Revenue from terminated contract - - (16.0) - Segment Revenue, (excluding terminated contract) $ 113.3 $ 119.2 (5%) $ 452.4 $
Slide 6: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Reconciliation to Free Cash Flow Note: numbers may not add due to rounding Cash Flows & DSOs • Q4 DSOs of 69 days • Cash provided by operating activities for Q4 and FY 13 were impacted by timing of payments at year end − Large weighting of billable revenue occurred at th
Slide 7: Total Company Guidance
Total Company Guidance Confirming Fiscal 2014 Revenue and Earnings Guidance • Revenue range of $1.555B to $1.650B, driven principally by growth in the Health Segment ‒ In excess of 95% of our forecasted FY14 revenue in the form of backlog or contract options ‒ Entering fiscal 2014 with record backlo
Slide 8: Segment Guidance
Segment Guidance Health Services Segment • FY14 quarterly revenue expected to be more level-loaded throughout the year due to: − An initial surge of work tied to the ACA launch and open enrollment in Q1 and partially in Q2; This revenue will be seasonally lower in 2H of FY 14 and will be backfilled
Slide 9: Fiscal 2013 Fourth Quarter & Full Year Earnings
Fiscal 2013 Fourth Quarter & Full Year Earnings Richard A. Montoni President and Chief Executive Officer November 15, 2013 9
Slide 10: Progress on Long-Term Growth Objectives in FY13
Progress on Long-Term Growth Objectives in FY13 • Continued solid top- and bottom-line growth − Tremendous efforts in making FY13 successful from our 12,000 employees − Operational expansion and future growth trajectory are a direct result of employee contributions • Significant progress was made in
Slide 11: Established Leader for HIX Customer Contact Centers
Established Leader for HIX Customer Contact Centers • Helped Minnesota build and launch exchange • Supported California with short-term work to help train customer service staff • Cemented position as the leading partner for providing high-quality customer service for the exchanges ‒ Launched operat
Slide 12: Eligibility Appeals Services for the Federal Exchange
Eligibility Appeals Services for the Federal Exchange • New contract to provide the overall management of the eligibility appeals process: − Operate a resolution process for appeals − Review appeal requests and supporting documents − Coordinate data collections with appellants − Provide general case
Slide 13: Health Care Reform - Looking Ahead
Health Care Reform - Looking Ahead • Continue to view health insurance exchanges and other work related to the Affordable Care Act as a multi-year growth driver • Over the next several years, expect some states will consider transitioning to state- based exchanges • Demographic trends likely to push
Slide 14: Federal Operations Expansion
Federal Operations Expansion • Success in expanding the federal book of business in our traditional service lines supporting CMS • Over the past two years, we have: − Enhanced our current offerings − Invested heavily in business development and delivery resources − Identified opportunities to apply
Slide 15: Expanding Our International Operations
Expanding Our International Operations • Importing core competencies into both existing and new markets, as well as increasing the scope of current operations • Continue to assess new geographies where governments seek assistance for important reform efforts • Primary efforts are focused on deliveri
Slide 16: Update on United Kingdom Operations
Update on United Kingdom Operations Health Management • Acquisition provided strategic platform for introducing core health offerings in UK • Delivery team well-positioned for future opportunities that may lead to proposal activity during FY14 • Growth plans upon reputation and demonstrated performa
Slide 17: Other Areas of International Growth
Other Areas of International Growth • Formal memorandum of understanding with the Kingdom of Saudi Arabia that extends the pilot program for three years; expect signed contract by the end of this quarter • International growth strategy continue to be based on our “land and expand” approach, driven b
Slide 18: Rebids and Option Periods
Rebids and Option Periods • FY13 successful year for rebids & options ‒ 14 contracts with a total contract value ~$475M ‒ Secured 95% of this total contract value through contract wins and extensions ‒ Won 100% of our option periods by September 30 • FY14 expected to be a light year for rebids & opt
Slide 19: Fiscal 2013 New Awards and Sales Pipeline
Fiscal 2013 New Awards and Sales Pipeline • $1.9B signed awards reached record level ‒ Substantial portion is new work ‒ Heavily weighted to the Health Segment • $362M in new contracts pending − Contracts where we’ve received notification of award and are in negotiations, but not yet signed • $2.4B
Slide 20: Continued Growth through Fiscal 2014 and Beyond
Continued Growth through Fiscal 2014 and Beyond • Remain keenly focused on our top three strategic growth priorities, including: ‾ Additional work related to phase two of the Affordable Care Act over the next several years ‾ Continued growth for our federal book of business ‾ Further expansion of ou