Slide 1: Fiscal 2014 Second Quarter Earnings
Fiscal 2014 Second Quarter Earnings David N. Walker Chief Financial Officer and Treasurer May 8, 2014
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 the Company’s most recent quarterly earnings confer
Slide 3: Total Company Results
Total Company Results Q2 FY14 revenue of $439.0m Q2 FY13 included one-time revenue benefit of $16.0m and $10.9m pre-tax income related to a terminated contract Excluding the terminated contract, Q2 14 revenue grew 41% and organic growth was 36% Currency headwinds: Q2 revenue grew on a constant curre
Slide 4: Health Services Segment
Health Services Segment Revenue Health Services delivered another solid quarter. Top-line increases fueled by: 1. Organic growth resulting from new work and expansion of existing contracts, including those related to the implementation and support of the Affordable Care Act (ACA) 2. Increased transa
Slide 5: Human Services Segment
Human Services Segment Revenue Excluding last year’s $16.0 million benefit, Q2 FY14 revenue increased 2.3% and was up 7.3% on a constant currency basis Operating Income & Margins Q2 FY14 operating income totaled $16.8 million; delivering an operating margin of 14.6% Q2 FY14 operating margin bolstere
Slide 6: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Cash Flows were solid in Q2 DSOs were 68 days in the quarter, in target range of 65-80 days Share Buybacks In Q2 FY14, purchased 301,400 shares of MMS common stock for $13.0 million At March 31, 2014, $62.1 million was available for future purchases Subsequent to quarter
Slide 7: Increasing FY Guidance
Increasing FY 14 Guidance Guidance Raise Raising guidance based on strong delivery in Q2 FY14 and increased visibility into new work related to ACA and state Medicaid programs materializing in back half of FY14. In addition, ramping up certain HIX contact centers earlier than anticipated for 2015 op
Slide 8: Fiscal 2014 Second Quarter Earnings
Fiscal 2014 Second Quarter Earnings Richard A. Montoni President and Chief Executive Officer May 8, 2014
Slide 9: Responding to the Needs of Our Clients
Responding to the Needs of Our Clients Solid results in second quarter reflect our success during first year of the Affordable Care Act (ACA) Continued success is based on seeking innovative, flexible and scalable ways to reform social programs Takes years for new programs to move from concept to la
Slide 10: U.S. Operations and ACA Update
U.S. Operations and ACA Update Supporting our clients’ efforts to meet the requirements under ACA and to respond to technology challenges during the first open enrollment period − Provided enhanced consumer assistance through our contact centers – in many cases, helped consumers complete application
Slide 11: Medicaid Expansion and Other Support Services
Medicaid Expansion and Other Support Services Medicaid expansion and other Medicaid support services are also part of our long-term growth strategy under ACA Some states already using ACA-related funding to expand Medicaid programs Expansions include new service areas and additional populations like
Slide 12: International: Australia Update
International: Australia Update Expanding our footprint in Australia through service area reallocations Disability Management Services (DMS) – Provide case management services to individuals with injuries, disabilities or other major health issues DMS reallocation shifted service areas from under-pe
Slide 13: International: United Kingdom Update
International: United Kingdom Update The Department for Work and Pensions (DWP) recently published quarterly Work Programme statistics that cover the performance period up to December 31, 2013. As a prime provider, MAXIMUS: − Helped approximately 11,000 individuals into a job that they have held for
Slide 14: Expanding Federal Book of Business
Expanding Federal Book of Business Good progress on introducing our core capabilities to new programs and agencies U.S. Department of Education (DOE) − Successful resolution on protest − Help administer a portfolio of defaulted student loans − Ramping up operations and remain on track to launch in A
Slide 15: Rebids
Rebids Fiscal 2014 will be a light year for rebids and overall total awards Of the 15 contracts worth a total of $225 million up for bid, won or received extensions on 6 with a total contract value of $85 million During the quarter, lost a small child support contract with a total contract value of
Slide 16: New Awards and Sales Pipeline
New Awards and Sales Pipeline At March 31, 2014: Signed $969 million in year-to-date contract awards Additional $76 million in year-to-date contracts pending (notified of award and in contract negotiations) Sales pipeline was at $2.2 billion with opportunities across multiple geographies and both se
Slide 17: Opportunities Ahead Shape Fiscal 2015
Opportunities Ahead Shape Fiscal 2015 At the start of our annual planning process and plan to give: − Additional insights on next quarterly call − Formal guidance on end-of year call in November Underpinnings of growth driven by long-term demand trends tied to operating large government social progr
Slide 18: What Does This Mean for FY15?
What Does This Mean for FY15? Meaningful new business opportunities that will ultimately drive our guidance for FY15 − Expect good growth year with its own headwinds and tailwinds Additional ACA- and Medicaid-related work that helped bolster fiscal 2014 − Some additional work will continue and some
Slide 19: Conclusion
Conclusion Year-to-date performance and expectations for the remainder of FY14 as additional confirmation of long-term growth opportunities in FY15 and beyond Look forward to reporting specific growth expectations for FY15 as we progress through our planning process and as the pending new opportunit