Maximus, Inc. · NYSE:MMS
Maximus — Q1 2012 Earnings Presentation
16 slides from Maximus's earnings presentation, Feb 6, 2012
Slide 1: Thomson Reuters StreetEvents
THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us
Slide 2: Fiscal 2012 First Quarter Earnings
David N. Walker Chief Financial Officer and Treasurer February 2, 2012 Fiscal 2012 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 3: Selected Financial Results from Continuing Operations
Selected Financial Results from Continuing Operations 2 *All numbers reflect the two-for-one stock split Q1 revenue grew 12% compared to last year, driven by Health Services and offset by lower revenue in Human Services due to the expected ramp up in the UK Revenue and earnings were impacted by unfa
Slide 4: Health Services Segment
Health Services Segment 3 Q1 revenue increased 22% to 158.0 million driven by the managed care expansion in Texas and other organic growth. – Experiencing a short-term spike in transaction based activities in Texas as state shifts more populations into managed care; expect increased revenue into Q2,
Slide 5: Human Services Segment
Human Services Segment 4 Q1 results include a termination payment related to the former UK FND contract, including $2.7 million related to revenue earned for the achievement of outcomes and $1.5 million for the recovery of costs, net of subcontractor expenses, for the wind down of operations. Q1 rev
Slide 6: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows 5 Solid net income contributed to strong cash flows; strong cash flows due to increased cash from deferred revenue and solid collections with DSOs of 60 days Cash provided by operating activities from continuing operations of $27.6 million in the quarter, with free cash
Slide 7: Reiterating FY 2012 Guidance
Reiterating FY 2012 Guidance Still expect fiscal 2012 top-line growth, driven by Health Services Segment Quarterly outlook remains unchanged – Slight dip in Q2 earnings due to the ramp up of the UK Work Programme where losses are expected to peak in Q2; the contract remains on track to achieve break
Slide 8: Fiscal 2012 First Quarter Earnings
Richard A. Montoni President and Chief Executive Officer February 2, 2012 Fiscal 2012 First Quarter Earnings
Slide 9: Recap of Q1 of FY 12
First quarter year/year revenue growth of 12% Remain confident that we’re still on track to achieve full year guidance for fiscal 2012 Recent investor meetings have provided insightful feedback and progress in the UK has been a common topic Recap of Q1 of FY 12
Slide 10: Update on UK Operations
Update on UK Operations Work Programme operations are going as expected, but seeing a mix shift in caseloads. Experiencing higher volumes in the easier-to-serve streams and lower volumes in the more profitable harder-to-serve streams. Net impact will be neutral to financials National Audit Office re
Slide 11: New contract win for Drug Benefit Program in Ontario
New contract win for Drug Benefit Program in Ontario – Three-year base contract includes several option periods for a total potential value of $43 million (CDN) over 10 years – Will support nearly three million citizens who have drug benefit coverage under two programs – New customer contact center
Slide 12: International Need for Reform
International Need for Reform Substantial underlying drivers for our services Many countries facing fiscal challenges, more complex and rising caseloads, and the need to reform welfare and health systems Some specific near-term opportunities in our sweet spot and expected to ramp up over next couple
Slide 13: Domestic Update: Health Care Reform and Insurance Exchanges
Preparing for health care reform and establishment of health insurance exchanges Some states moving “full steam ahead” while others take “wait and see” approach Majority of states prefer to control their own destinies and are moving ahead with planning and implementation To date, 29 states have been
Slide 14: Shift to Medicaid Managed Care Continues to Be Growth Driver
Shift to Medicaid managed care continues to be growth driver for MAXIMUS Budget proposed by Governor of California includes two cost-savings measures: expansion of Medicaid managed care to all counties and moving Medicare benefits for dual-eligibles into state’s Medicaid program Other states looking
Slide 15: New Awards and Sales Pipeline
New Awards and Sales Pipeline Investors should expect routine fluctuations among the new sales and pipeline categories. Includes $450 million extension in Australia, which takes current contract through June 30, 2015 and is expected to be fully executed by mid-April
Slide 16: Conclusion
Conclusion Well-positioned to achieve objectives in FY12 Management keenly focused on near-term goals: – Successfully ramping up UK operations and achieving breakeven in Q4 – Winning our fair share of health care reform in the US – Searching for qualified acquisition targets Will continue looking fo