Slide 1: Fiscal 2021 Third Quarter Earnings Call
Fiscal 2021 Third Quarter Earnings Call Rick Nadeau Chief Financial Officer David Mutryn Senior VP of Finance August 5, 2021 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: Total Company Results – Third Quarter of FY21
Total Company Results – Third Quarter of FY21 ($ in millions, except % per share data) Q3 FY21 Q3 FY20 • Revenue and earnings results were better than expected and Change driven by over performance of COVID-19 response work as we Revenue work diligently to help governments respond to the worldwide U
Slide 4: Cash Flows and Balance Sheet
Cash Flows and Balance Sheet $ in millions Q3 FY21 Cash flows used in operations $ (33.0) Purchases of property and equipment and capitalized software costs (8.6) Free cash flow used in operations $ (41.6) Balance Sheet • At June 30, 2021, $1.71B of gross debt and cash and cash equivalents of $96.1M
Slide 5: Pro Forma Analysis
Pro Forma Analysis Unaudited Pro Forma Results Trailing Twelve Months • This pro forma analysis assumes VES and Attain in thousands, except per share amounts Ended June 30, 2021 Federal had been acquired on July 1, 2020 Revenue $ 4,645,540 Cost of revenue 3,503,074 • It includes the amortization of
Slide 6: Raising Fiscal Year 2021 Guidance
Raising Fiscal Year 2021 Guidance $ in millions Organic Revenue Projection FY21E FY20A Revenue $ 4,225 $ 3,462 Fiscal 2021 Guidance Revised Previous Total growth % 22.1% Acquisitions - Attain Federal & VES (325) - Revenue $4.2B – $4.25B $4.0B – $4.2B Organic Revenue $ 3,900 $ 3,462 Organic growth %
Slide 7: Adjusted EPS and Short-term Work
Adjusted EPS and Short-term Work Adjusted EPS Analysis FY19 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4E FY21E GAAP diluted EPS $ 3.72 $ 0.91 $ 0.43 $ 1.04 $ 1.02 $ 3.39 $ 1.03 $ 1.29 $ 1.51 $ 0.87 $ 4.70 Amortization of intangibles expense (in millions) $ 33,054 $ 9,088 $ 8
Slide 8: U.S. Services Segment
U.S. Services Segment Q3 FY21 Revenue and Operating Margin ($ in millions) Q3 FY21 Q3 FY20 % Change • Increase driven by an estimated $164M of COVID-19 response work Revenue • Operating margin reflects the negative impacts to U.S. Services $ 436.3 $ 337.0 29 % some core programs, including those imp
Slide 9: U.S. Federal Services Segment
U.S. Federal Services Segment Q3 FY21 Revenue & Operating Margin ($ in millions) Q3 FY21 Q3 FY20 % Change • Increased due to $280M of COVID-19 response work and contributions from the Attain Federal and VES Revenue acquisitions, offset by lower revenue from the completed Census contract U.S. Federal
Slide 10: Outside the U.S. Segment
Outside the U.S. Segment Q3 FY21 Revenue & Operating Income ($ in millions) Q3 FY21 Q3 FY20 % Change • Good performance in Australia drove better than expected operating results in the segment Revenue Outside the U.S. $ 189.6 $ 114.2 66 % FY21 Outlook with Startups • This segment contains multiple s
Slide 11: Capital Allocation
Capital Allocation Capital Allocation • For the twelve months ended June 30, 2021, the ratio of debt (net of allowed cash) to pro forma EBITDA, calculated in accordance with our credit agreement, is 2.4 to 1 • Free cash flow will be used to pay down debt and we expect to push this ratio closer to 2
Slide 12: Fiscal Year 2022
Fiscal Year 2022 FY22 Early Thoughts • Acquisitions of Attain Federal and VES expected to contribute $750M of revenue, as compared to $320M - $330M forecasted in FY21 • COVID-19 response work expected to contribute revenue of $150M - $200M, as compared to approximately $1B in FY21. COVID-19 response
Slide 13: Fiscal 2021 Third Quarter Earnings Call
Fiscal 2021 Third Quarter Earnings Call Bruce Caswell President & Chief Executive Officer August 5, 2021 13 | Maximus: Q3 FY21 Earnings Presentation
Slide 14: Executing on our Strategy
Executing on our Strategy Solid position to execute on our long-term organic growth goals and evolve ongoing corporate strategy across all three segments, bolstered by: • Benefits and new capabilities of the two recent acquisitions • Our team’s unprecedented efforts throughout the past year which
Slide 15: Digital Services Position
Digital Services Position • • • • • • • 15 | Maximus: Q3 FY21 Earnings Presentation
Slide 16: Enacting upon our Clinical Strategy
Enacting upon our Clinical Strategy VES • Immediate focus remains in support of VES, the VA, and the veterans we serve • Identifying opportunities to streamline processes and new digital solutions • Likely supported, in part, by software development capabilities gained through Maximus Attain, an add
Slide 17: New Awards & Pipeline
New Awards & Pipeline Sales Pipeline June 30, 2021 New Work % New Awards (YTD) June 30, 2021 Proposals Pending $4.2B Signed Contracts $3.24B Proposals in Preparation $6.8B Unsigned Contracts $1.38B Opportunities Tracking $22.6B Total Pipeline $33.6B 63.6% Pipeline dynamics • Approximately $1B of the
Slide 18: Responding to Changing Client Needs
Responding to Changing Client Needs • Primarily beat our revenue expectations as a result of higher than anticipated volumes on COVID-19 response work in the U.S. Federal Segment • Ramped up approximately 13,000 agents on one contract alone, which required initially hiring nearly 20,000 prospective
Slide 19: Conclusion
Conclusion • Strategy execution is maturing as Attain Federal and VES become more fully integrated, and we leverage the platforms and capabilities they bring – Complements foundation we built across clinical services & digital technologies and our existing organic efforts • COVID-19 work is tapering