Slide 1: Fiscal 2013 Second Quarter Earnings
Slide: 1 Title: David N. Walker Chief Financial Officer and Treasurer May 9, 2013 Fiscal 2013 Second 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 risk
Slide 2: Total Company Financial Results
Slide: 2 Title: Total Company Financial Results Q2 FY13 results in line with expectationsQ2 FY13 results included $16m of non-recurring revenue, pre-tax income of $10.9m (after tax $6.5m), or $0.19 per diluted share, in the Human Services Segment due to a terminated contractExcluding the $16m, Q2 FY
Slide 3: Health Services Segment
Slide: 3 Title Health Services Segment Revenue Q2 revenue increased 23% to $197.9 million, driven by the PSI acquisition, expansion on existing programs, and new work that is starting to ramp nicely. Still experiencing healthy volumes in federal Medicare appeals businessOperating Income & MarginsQ2
Slide 4: Human Services Segment
Slide: 4 Title: Human Services Segment RevenueQ2 revenue increased to $128.4m. Excluding the $16.0m from the terminated contract, revenue grew 37% to $112.4m compared to last year, driven by the PSI acquisition, the ramp in the UK, and growth from Canada and Saudi ArabiaOperating Income & MarginsQ2
Slide 5: Balance Sheet and Cash Flows
Slide: 5 Title: Balance Sheet and Cash Flows Cash Flows & DSOsQ2 cash flow consistent with expectationsAs expected, we continue to experience administrative payment delays on two programs DSOs were sequentially lower at 66 days at March 31 (excluding revenue from the terminated contract)Cash and Use
Slide 6: FY Guidance: Reiterating Revenue & Adjusted EPS
Slide: 6 Title: FY 13 Guidance: Reiterating Revenue & Adjusted EPS Reiterating Revenue and Earnings Guidance; Maintaining Cash Flow GuidanceWe are reiterating our FY 13 revenue, adjusted EPS guidance and cash flow guidanceFrom a modeling perspective:Many new programs coming on board have revenue and
Slide 7: Richard A. Montoni, President and Chief Executive Officer
Slide: 7 Title: Richard A. Montoni President and Chief Executive Officer May 9, 2013 Fiscal 2013 Second Quarter Earnings
Slide 8: On Track for Continued Growth in Fiscal 2013
Slide: 8 Title: 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 plannedOn track for exceptional top- and bottom-line g
Slide 9: Health Services: Renewal of MassHealth Contract
Slide: 9 Title: Health Services: Renewal of MassHealth Contract Received award notification for a five-year renewal of MassHealth Medicaid contractScope of work is largely unchanged; MAXIMUS:Provides general eligibility and program participation customer service to Medicaid members and providers Enr
Slide 10: Health Care Reform Update: Federal Market
Slide: 10 Title: Health Care Reform Update: Federal Market Seeing the expected pick-up in procurements on the federally facilitated exchange, also known as the Health Insurance MarketplacePart of the team selected by CMS for the contact center operations contract:MAXIMUS is a subcontractor to Genera
Slide 11: Health Care Reform Update: State Market
Slide: 11 Title: Health Care Reform Update: State Market Signed two new contracts to support state HIXVermont: Contract amendment for customer support center for the state’s health benefits exchangeBuilds upon a 17-year partnership with the Department of Vermont Health Access and expands our custome
Slide 12: Health Services: Future Growth Opportunities
Slide: 12 Title: 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 opportunityHealth care reform will be a long-term, multi-year growth driver, as health insu
Slide 13: Human Services: Growth in the U.S. Markets
Slide: 13 Title: Human Services: Growth in the U.S. Markets Launched a new contract with the New York City Human Resources AdministrationEmployment services centers in the Bronx and Staten IslandProvide assessment, work readiness, job placement and retention, and support services to participants in
Slide 14: Human Services: International Update
Slide: 14 Title: Human Services: International Update U.K. Work Programme contract meeting expectationsDepartment of Work and Pensions will release next performance statistics on June 27, 2013Expect the government will start planning for work reallocation, but expect shift of work to happen in 2014
Slide 15: Contract Rebids
Slide: 15 Title: Contract Rebids Started fiscal year 2013 with 14 contracts with a total value of approximately $475 million up for rebidTexas 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
Slide 16: New Awards and Sales Pipeline
Slide: 16 Title: 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” contractsTotal sales pipeline of opportunities was $2.3 billion, slightly lower than last quarter, drive
Slide 17: Use of Cash
Slide: 17 Title: Use of Cash Cash in the quarter continues to be strong, with the majority held overseasActive M&A program with a very strategic approach towards opportunities that complement our growth strategySubsequent to quarter end, announced a two-for-one stock split, which will take place at
Slide 18: Conclusion
Slide: 18 Title: Conclusion Focus on delivering high-quality, value-added services to government clientsStrong performance keeps us on a solid path for achieving our long-term goals of:Securing our fair share of health care reform work in the U.S.Growing our federal operationsExpanding our global op
Slide 19: Non-GAAP Measures
Slide: 19 Title: 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 ex