Slide 1: Q4 2009 MAXIMUS Earnings Conference Call Transcript
F I N A L T R A N S C R I P T Nov. 12. 2009 / 2:00PM, MMS - Q4 2009 MAXIMUS, Inc. Earnings Conference Call C O R P O R A T E P A R T I C I P A N T S Lisa Miles MAXIMUS - VP, IR David Walker MAXIMUS - CFO Rich Montoni MAXIMUS - Pres. CEO Bruce Caswell MAXIMUS - Director, Health Operations C O N F E R
Slide 2: Fourth Quarter and Fiscal Year 2009 - David N. Walker, CFO
David N. Walker Chief Financial Officer and Treasurer Fourth Quarter and Fiscal Year 2009
Slide 3: Divestiture of the ERP Division
MUS . Divestiture of the ERP Di ¢ Announced our decision to divest the ERP division and reclassified the division as discontinued operations ¢ Recorded a fourth quarter net loss from discontinued operations of $5.9 million, or $0.32 per diluted share — Includesa provision to cover future costio succ
Slide 4: Q4 & Fiscal 2009 Financial Results – Continuing Operations
Q4 & Fiscal 2009 Financial Results – Continuing Operations Revenue growth of 9.3% in the fourth quarter to $194.0 million and 3.4% for FY 09 to $717.3 million compared to last year On a constant currency basis, revenue grew 10.9% in Q4 ‘09 and 6.5% for FY ‘09 compared to the same periods last year O
Slide 5: Operations Segment
Operations Segment Operations Segment revenue growth compared to the same periods last yearFourth quarter ‘09 revenue grew 11.1% to $181.7 million; 12.8% on a constant currency basis Fiscal 2009 revenue grew 4.8% to $659.2 million; 8.2% on a constant currency basisAcquired growth accounted for appro
Slide 6: Consulting Segment
Consulting Segment Revenue for the fourth quarter of $12.3 million and $58.1 million for the full year Revenue declined year-over-year as the Company exited legacy health care claiming business at March 31st Offset by revenue growth in the Segment’s education business which was ramping up a large pr
Slide 7: Balance Sheet
Balance Sheet Cash totaling $87.8 million at September 30 Fourth quarter DSOs of 71 days Consistent with the third quarter and well within our targeted range of 65 to 80 daysImpacted by increased receivables on a large health services contract, the bulk of which was paid in October An outstanding re
Slide 8: Guidance
Guidance Fiscal 2010 guidance from continuing operations Top-line growth of 10% to 13% with a revenue range of $790 million to $810 million compared to revenue of $717.3 in FY ‘09Diluted earnings per share growth of 5% to 8% with EPS in the range of $3.05 to $3.15 compared to EPS from continuing ope
Slide 9: Richard A. Montoni, President and CEO - Fourth Quarter and Fiscal Year 2009
Richard A. Montoni President and Chief Executive Officer Fourth Quarter and Fiscal Year 2009 November 12, 2009
Slide 10: ERP Divestiture
Our announcement to divest the ERP division is the next step in building a more reliable organization with a sharpened focus on the administration of health and human services and related consulting offerings Booked a provision in the fourth quarter on a large legacy ERP project to cover all future
Slide 11: 2010 Outlook
2010 Outlook Top-line growth in FY 10 between 10% to 13% with approximately 93% of forecasted revenues in the form of backlog and optionsRecord backlog of $1.8 million which sets the platform for accelerating future growth FY 2010 earnings guidance expected to grow between 5% to 8%, which is tempere
Slide 12: Capitalizing on New Opportunities
Capitalizing on New Opportunities Increasing trend towards more business process outsourcingStates looking to control costs while managing an increase in the number and complexity of cases from greater reliance on government assistance Additional opportunities where states are advancing new ways to
Slide 13: California Performance Review Findings
12 November 2009 California Performance Review Findings California reviewed several of its health and human services programs, including an analysis of the efficiency of eligibility processing for these programs Using a consolidated method for eligibility determination through a managed services pro
Slide 14: New Awards & Strategic Wins
New Awards & Strategic Wins Several states looking to streamline enrollment operations in their public health programs Recently notified of a new award on a multi-year Medicaid and CHIP contract for a large state that has traditionally done much of this work in-house Work includes the consolidation,
Slide 15: Health Care Reform
Health Care Reform Substantial synergies between opportunities from health care reform and our demonstrated capabilitiesBoth the house and senate legislation include provisions to expand Medicaid eligibility An eligibility increase to 133% of the FPL represents 10 million new beneficiariesAn eligibi
Slide 16: International Business
International Business Helping governments abroad who face the same social challenges, including increasing caseloads and case complexity in the areas of health and workforce servicesIn Australia, approximately 40 new operational centers are fully ramped; program performing to expectations with a po
Slide 17: New Sales Awards, Pipeline, Backlog & Rebids
*Restated to reflect divested businesses and ERP 16 November 2009 New Sales Awards, Pipeline, Backlog & Rebids Record backlog of $1.8 billion; compared to $1.3 billion last yearFY ’09 won or extended on 91% of the value of our rebids and 100% of option years FY ’10 rebids and options12 rebids worth
Slide 18: Conclusion
Reliable partner with strong balance sheet and no debtOngoing dividend program returns excess capital to our shareholdersContinue to review opportunities for smaller, tuck-in acquisitions that complement our health and human services business portfolio The critical nature of the programs we administ