Slide 1: Fiscal 2020 Third Quarter Earnings Call
Fiscal 2020 Third Quarter Earnings Call Rick Nadeau Chief Financial Officer August 6, 2020 1 | Maximus: Q3 FY20 Earnings Presentation
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 our most recent quarterly earnings conference call.
Slide 3: Increase to Fiscal Year 2020 Revenue & Earnings Guidance
Increase to Fiscal Year 2020 Revenue & Earnings Guidance Working under a hybrid operational model, delivering services through a mix of safe, on-site working arrangements and work from home enabling continuity of service and uninterrupted assistance for citizens FY20 Guidance Segment Impacts from CO
Slide 4: Total Company Results – Third Quarter of FY20
Total Company Results – Third Quarter of FY20 ($ in millions, except Q3 FY20 Q3 FY19 % Change per share data) • Q3 FY20 revenue increased due to: Revenue − Census contract expansion (acquired with the citizen U.S. Health & Human Services $ 337.0 $ 291.1 16% engagement centers business in November 20
Slide 5: U.S. Health & Human Services Segment
U.S. Health & Human Services Segment ($ in millions) Q3 FY20 Q3 FY19 % Change Revenue U.S. Health & Human Services $ 337.0 $ 291.1 16% Operating Income U.S. Health & Human Services $ 61.0 $ 54.3 13% Operating Margin % 18.1% 18.6% Q3 FY20 Revenue & Operating Margin • All growth was organic and attrib
Slide 6: U.S. Federal Services Segment
U.S. Federal Services Segment ($ in millions) Q3 FY20 Q3 FY19 % Change Revenue U.S. Federal Services $ 450.1 $ 292.3 54% Operating Income U.S. Federal Services $ 39.2 $ 33.9 16% Operating Margin % 8.7% 11.6% Q3 FY20 Revenue, Operating Margin & COVID-19 Impacts • All growth was organic. Excluding the
Slide 7: Outside the U.S. Segment
Outside the U.S. Segment ($ in millions) Q3 FY20 Q3 FY19 % Change Revenue Outside the U.S. $ 114.2 $ 147.3 (22%) Operating Income Outside the U.S. $ (5.8) $ 5.0 NM Operating Margin % (5.1%) 3.4% Q3 FY20 Revenue & Operating Margin • COVID-19 pandemic continues to have the most pronounced effect on Se
Slide 8: Cash Flows, Balance Sheet, and Capital Allocation
Cash Flows, Balance Sheet, and Capital Allocation $ in millions Q3 FY20 YTD FY20 Cash from operations (13.2) 96.1 Purchases of property and equipment and capitalized software costs (9.3) (28.4) Free cash flow (22.5) 67.7 Cash Flows & Balance Sheet Capital Allocation • YTD cash from operations negati
Slide 9: FY 21 Preliminary Thoughts
FY 21 Preliminary Thoughts Segments Anticipated Event Impact All Ongoing benefit from COVID-19 response work is expected in FY21. Tailwind Improvements in segment operations are anticipated. Favorable tailwinds are OUS expected in our employment services business as the need for support into Tailwin
Slide 10: Fiscal 2020 Third Quarter Earnings Call
Fiscal 2020 Third Quarter Earnings Call Bruce Caswell President & Chief Executive Officer August 6, 2020 10 | Maximus: Q3 FY20 Earnings Presentation
Slide 11: Impact of COVID-19
Impact of COVID-19 Improved Outlook • Despite the great uncertainty and significant economic disruption in the global economy, as a result of COVID-19, we are pleased today to be raising revenue and diluted earnings per share guidance as a result of our demonstrated ability to: − Modify and scale op
Slide 12: Responding to Increased Demand as a Result of COVID-19
Responding to Increased Demand as a Result of COVID-19 Quick Response and Implementation • Responded to increased demand for services by quickly standing up and operating turnkey citizen engagement centers with both on-site but predominantly home-based service agents • Believe we have accomplished o
Slide 13: Digital Transformation
Digital Transformation • Transitioned operational infrastructure to the cloud to help agencies benefit from the security, scalability, and flexibility through a singular platform solution. • Provides the ability to dynamically scale and allocate capacity in response to demand, but also provides a tr
Slide 14: Vital Work Continues Amidst the Health Crisis
Vital Work Continues Amidst the Health Crisis Outside the U.S. Government of Alberta, Canada • Won the Enabling New Models of Care (ENMOC) program to replace old mainframe with a new flexible and configurable solution to better support new models of healthcare • Estimated TCV of $75M over an 81-mont
Slide 15: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) June 30, 2020 Sales Pipeline June 30, 2020 New Work % Signed Contracts $1.466B Total Pipeline $28.9B 67.7% Unsigned Contracts $672M Pipeline Dynamics • Amid this global health pandemic, we are cautiously optimistic • However, difficulty in predicting the impact
Slide 16: Responsibility to be a Leader in Employee Engagement
Responsibility to be a Leader in Employee Engagement • Our people are our business, providing essential services, serving in the front lines of support and working hand in hand with government customers • Their diverse backgrounds, experience, and insight enable us to represent the citizens and comm
Slide 17: Conclusion
Conclusion • Governments are facing hard choices in an increasingly challenging environment, due to the global and uncontained health pandemic • At the same time, people are looking to government to lead the way to recovery as we emerge from this crisis • Maximus is well-positioned during these unpr