Maximus, Inc. · NYSE:MMS
Maximus — Q1 FY2013 Earnings Presentation
17 slides from Maximus's earnings presentation, Feb 8, 2013
Slide 1: Fiscal 2013 First Quarter Earnings
David N. Walker Chief Financial Officer and Treasurer February 7, 2013 Fiscal 2013 First Quarter Earnings 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 results in line with expectationsRevenue grew 19%, driven by solid growth in both domestic and international operations and across both SegmentsRevenue grew 5% organicallyBetter-than-expected earnings driven principally by accretive, tran
Slide 3: Health Services Segment
Health Services Segment Revenue Q1 revenue increased 11% to $176.0 million, driven by the PSI acquisition, as well as organic growth resulting from new work and expansion of existing contractsOperating Income & MarginsQ1 operating income increased 23% to $20.6 million, with an operating margin of 11
Slide 4: Human Services Segment
Human Services Segment Revenue Q1 revenue increased 35% to $110.3 million, driven by the PSI acquisition, as well as organic growth principally from international operations, including the expected ramp of the UK Work Programme and new programs in Canada and Saudi ArabiaOperating Income & MarginsQ1
Slide 5: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows *The Company defines free cash flow as cash provided by operating activities from continuing operations less cash paid for property, equipment and capitalized software Cash Flows Q1 cash flow was consistent with seasonal expectationsAs expected, cash flow was dampened as
Slide 6: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows *The Company defines free cash flow as cash provided by operating activities from continuing operations less cash paid for property, equipment and capitalized software Cash Flows Q1 cash flow was consistent with seasonal expectationsAs expected, cash flow was dampened as
Slide 7: Fiscal 2013 First Quarter Earnings
Richard A. Montoni President and Chief Executive Officer February 7, 2013 Fiscal 2013 First Quarter Earnings
Slide 8: Solid Start to Fiscal 2013
Solid Start to Fiscal 2013 Kicked off fiscal 2013 with strong performances from both SegmentsStarting to benefit from secular trends that are driving increasing demand for our servicesAn unprecedented number of start-up programs are going largely as plannedAll-in-all, these tailwinds position us for
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 workAs a reminder, management continues to believe that a reasonable target for HIX market share in the e
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 programsThe Enrollment Center will serve as the foundation for customer service and back
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 regulate in
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 companiesWe see an increasing presence in certain states from unions representing government employees; California is likely to use a combination of county and s
Slide 13: International Operations Meeting Expectations
International Operations Meeting Expectations Pilot program in Saudi Arabia is fully operational and meeting our expectationsWork 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 Work an
Slide 14: International Growth Strategy
International Growth Strategy Longer-term international growth strategy focuses on tracking reform efforts where we see emerging opportunities for MAXIMUSNext 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-workFut
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 millionOn January 7, the TX Health and Human Services Commission
Slide 16: New Awards and Sales Pipeline
New Awards and Sales Pipeline At December 31, 2012:MAXIMUS signed $178 million in new contract awardsWe also had approximately $460 million of “awarded but unsigned” contracts where we’ve received notification of award and are in contract negotiations, but have not yet signed At February 1, 2013: To
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 governme