Slide 1: Fiscal 2021 Year End Earnings Call
Fiscal 2021 Year End Earnings Call Rick Nadeau Chief Financial Officer David Mutryn Senior Vice President, Finance November 18, 2021 1 | Maximus: Q4 FY21 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: Total Company Results – Fiscal Year 2021
Total Company Results – Fiscal Year 2021 • Revenue growth of 23% driven by: ($ in millions, except % FY21 FY20 − COVID-19 response work which grew approximately $0.9B per share data) Change ($1.1B in FY21 vs. $0.2B in FY20) Revenue − Attain Federal and Veterans Evaluation Services (VES) U.S. Service
Slide 4: U.S. Services Segment
U.S. Services Segment FY21 Revenue • Increase driven by an estimated $618M of ($ in millions) FY21 FY20 % Change COVID-19 response work ($129M in FY20) Revenue FY21 Operating Margin U.S. Services $ 1,662.1 $ 1,329.3 25 % • Delivered 15.3% for the year and 12.2% in Q4 FY21, which fell short of expect
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment FY21 Revenue • Increased due to estimated $466M of COVID-19 ($ in millions) FY21 FY20 % Change response work ($71M in FY20) and contributions from the Attain Federal and VES acquisitions totaling $323M Revenue U.S. Federal Services $ 1,893.3 $ 1,633.3 16 % • Census cont
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment FY21 Revenue • Strong demand for employment services helped this segment rebound in FY21 ($ in millions) FY21 FY20 % Change • Outside the U.S. segment experienced the most Revenue pronounced impacts from the pandemic, negatively Outside the U.S. $ 699.1 $ 498.9 40 % impactin
Slide 7: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance Sheet • At September 30, 2021, $1.52B of gross debt and cash and cash equivalents of $135M • Ratio of debt, net of allowed cash, to pro-forma EBITDA (calculated in accordance with credit agreement) results in 2.3x at September 30, 2021. At June 30, 2021, ratio wa
Slide 8: Fiscal Year 2022 Guidance
Fiscal Year 2022 Guidance FY22 Guidance Revenue $4.40B – $4.60B Diluted EPS $4.00 – $4.30 Cash flows from operations $275M – $325M Free cash flows $225M – $275M • Guidance midpoints implies operating margin of 8.4% − Includes approximately $90M of forecasted intangibles amortization for FY22 − Exclu
Slide 9: Fiscal Year 2022 Guidance Commentary
Fiscal Year 2022 Guidance Commentary FY22 Revenue Commentary • COVID-19 response work expected to contribute ~$250M of revenue $ in millions FY22E FY21 in FY22 (compared to $1.12B in FY21) Revenue $ 4,500 $ 4,254 • Startups in Outside the U.S. segment still forecasted to add ~$150M Total growth % 5.
Slide 10: Fiscal 2021 Year End Earnings Call
Fiscal 2021 Year End Earnings Call Bruce Caswell President & Chief Executive Officer November 18, 2021 10 | Maximus: Q4 FY21 Earnings Presentation
Slide 11: Aidvantage
Aidvantage What is Aidvantage • Contract novation closed on October 6 for student loan program • Maximus does not and will not provide loan origination, consolidation, or collection services Why Maximus • Focus on the end-to-end borrower experience and helping fulfill the mission of the Federal Stud
Slide 12: Acquisition Integration Status
Acquisition Integration Status United States United Kingdom • VES and Attain acquisition integrations going • Connect Assist, market leading provider of citizen as planned, operating as expected, delivering engagement centers and digital services, joined financial results consistent with our analysi
Slide 13: FY21 New Business Success
FY21 New Business Success COVID-19 Response Work • Tireless work of team this past year resulted in several new contracts and opportunities across segments • Generated revenue of approximately $1.1B from COVID-19 response work to help governments respond to the pandemic • Our success in response has
Slide 14: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) September 30, 2021 Sales Pipeline September 30, 2021 New Work % Signed Contracts $5.62B Proposals Pending $8.8B Proposals in Preparation $1.4B Unsigned Contracts $721M Opportunities Tracking $23.7B Total Pipeline $33.9B 69% Award dynamics • Of the $5.6B of sign
Slide 15: Fiscal Year 2022 Expectations
Fiscal Year 2022 Expectations • 20 long months since start of public health emergency (PHE) which we anticipate to expire at end of the first calendar quarter of 2022 • Expect solid second half of FY22 with positive environment and momentum for the business, exiting the year at a strong run rate • D
Slide 16: Labor Market
Labor Market Vaccine Mandate • Planning for implementation of Biden Administration executive order and OSHA requirements which includes extensive employee education and resources, paid time off to receive a vaccination, and frequent reminders regarding timelines and options • Continue to prioritize
Slide 17: Conclusion
Conclusion Strategy Execution • Pleased on execution of three-pronged strategy of expanding clinical business, driving digital transformation, expanding to adjacent markets – Led to balanced organic and inorganic growth and set the table for future organic growth in expanded core and new markets • W
Slide 18: Appendix
Appendix 18 | Maximus: Q4 FY21 Earnings Presentation
Slide 19: Normalized 3 Year Organic Growth
Normalized 3 Year Organic Growth $ in millions FY19 Revenue $ 2,887 Estimated pre-acquisition results from citizen 98 engagement centers business Changes per Form 10K (2020 & 2021) $ 2,985 a Est. 2022 2021 2020 change change change Normalize: growth from Census contract (67) (448) 329 (185) Normaliz
Slide 20: Adjusted EPS
Adjusted EPS Adjusted EPS Analysis FY19 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY22E $4.00 - $4.30 GAAP diluted EPS $ 3.72 $ 0.91 $ 0.43 $ 1.04 $ 1.02 $ 3.39 $ 1.03 $ 1.29 $ 1.51 $ 0.83 $ 4.67 $ 4.15 Amortization of intangibles expense (in millions) $ 33,054 $ 9,08