Maximus, Inc. · NYSE:MMS
Maximus — Q1 FY2009 Earnings Presentation
15 slides from Maximus's earnings presentation, Feb 9, 2009
Slide 1: First Quarter Fiscal Year 2009 - David N. Walker, CFO
David N. Walker Chief Financial Officer and Treasurer First Quarter Fiscal Year 2009 February 5, 2009
Slide 2: First Quarter Fiscal 2009 Financial Results
First Quarter Fiscal 2009 Financial Results Q1 09 EPS of $0.67 Revenue of $180.1 million Top line grew 5% on a constant currency basis – Operations Segment revenue grew 11% on a constant currency basis Compared to same period last year, net income grew 13% to $12.0 million Current economic environme
Slide 3: Operations Segment
Operations Segment Operations Segment is now 87% of total Company revenue Revenue increased 6% to $156.3 million in Q1 compared to the same period last year and 11% on a constant currency basis Top-line growth fueled by Health and Federal business lines Growth in the domestic business helped balance
Slide 4: Consulting Segment
Consulting Segment Consulting represented 13% of total Company revenue Revenue totaled $23.8 million in Q1 09 The Segment had a first quarter loss of $1.5 million due to a $2.5 million project charge due to cost increase on a legacy fixed price contract Beginning in Q2, expect improvement driven fro
Slide 5: Total Company Margins
Total Company Margins Q1 09 operating margin of 11% Driven by solid margins in the Operations Segment of 14%, which was tempered by the loss in the Consulting Segment Expect fluctuations quarter to quarter but management still maintains that the business can continue to run at or above a 10% operati
Slide 6: Balance Sheet
Balance Sheet In December, MAXIMUS paid approximately $40 million in cash to settle its outstanding arbitration As part of the settlement, MAXIMUS will receive an insurance reimbursement of $13.0 million in the second quarter In Q1 09, MAXIMUS used cash from operating activities related to continuin
Slide 7: Guidance
Guidance We remain on track to meet expectations MAXIMUS is reasonably insulated given the economic environment Experienced some work delays given states consternation in dealing with fiscal challenges Some revenue pushed to the right Anticipate that fiscal challenges may be offset by some modest be
Slide 8: First Quarter Fiscal Year 2009 - Richard A. Montoni, CEO
Richard A. Montoni President and Chief Executive Officer First Quarter Fiscal Year 2009 February 5, 2009
Slide 9: Well-Positioned in Current Economic and Political Climate
MAXIMUS delivered a solid quarter with steady performance and is prepared to handle the opportunities ahead We are well-positioned to benefit from greater demand for our services due to the economic slowdown and new legislation Both the American Recovery Act and the reauthorization of SCHIP encompas
Slide 10: Opportunities from SCHIP Reauthorization
Legislation includes $32.8 billion in new spending over the next four and a half years Georgetown University Health Policy Institute expects total SCHIP spending of $69 billion Expands eligibility to include families with income up to 300% of the Federal Poverty Level Opportunities from SCHIP Reauth
Slide 11: Leading Pure-Play Provider in Medicaid Managed Care
Leading Pure-Play Provider in Medicaid Managed Care Twenty-eight states and the District of Columbia presently outsource Medicaid Managed Care of which MAXIMUS runs enrollment in thirteen states with a 67% market share. 11 February 2009 Source: CMS 2007
Slide 12: Leading Pure-Provider in SCHIP Enrollment
Leading Pure-Provider in SCHIP Enrollment Twelve states presently outsource SCHIP enrollment of which MAXIMUS runs enrollment in five states with a 69% market share. Approximately 2,000,000 additional children receive SCHIP services through a Medicaid expansion program. 12 February 2009 Source: CMS
Slide 13: Poised to Meet Changing Demand
Poised to Meet Changing Demand Positioned as market & thought leader in Medicaid & SCHIP managed services Opportunity to further penetrate these markets has never been greater Well-equipped to assist clients in increasing caseloads and improving processing efficiencies to ensure long-term positive o
Slide 14: New Sales Awards and Pipeline
New Sales Awards and Pipeline Sales Q1 2008* Q1 2009 Signed Contracts $311M $208M Awarded Unsigned Contracts $264M $135M Pipeline Proposals Pending $160M $582M 14 Proposals Pending Proposals in Preparation $99M $327M RFPs Tracking $717M $761M Total Pipeline $976M $1,670M February 2009 *Restated to r
Slide 15: Healthy Capital Position
MAXIMUS holds a competitive advantage with healthy cash position, available credit line, and no debt $61.5 million in cash at December 31, 2008 Increased quarterly cash dividend by $0.02 to $0.12 per share Healthy Capital Position Remain active under our Board-authorized share repurchase program We