Slide 1: Fiscal 2024 First Quarter Earnings Call
Fiscal 2024 First Quarter Earnings Call David Mutryn Chief Financial Officer February 8, 2024 1 | Maximus: Q1 FY24 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 – First Quarter of FY24
Total Company Results – First Quarter of FY24 ($ in millions, except per share data) Q1 FY24 Q1 FY23 % Change • Revenue increased 6.2%, or 6.9% on an organic growth basis, driven by expanded Revenue programs in U.S. Federal Services and both U.S. Federal Services $ 677.1 $ 618.2 9.5 % U.S. Services
Slide 4: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased 9.5%, which was all ($ in millions) Q1 FY24 Q1 FY23 % Change organic and due predominantly to volume growth expanded programs, including the Revenue VA Medical Disability Examination (MDE) U.S. Federal Services $ 677.1 $ 618.2 9.5 % contracts Operati
Slide 5: U.S. Services Segment
U.S. Services Segment • Revenue increased 11.5%, which was all organic ($ in millions) Q1 FY24 Q1 FY23 % Change and driven by both the resumption of Medicaid redetermination activities and expanded Revenue programs in eligibility support U.S. Services $ 489.8 $ 439.5 11.5 % • Q1 FY24 margin of 13.5%
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment • Revenue decreased by 16%; approximately 7% ($ in millions) Q1 FY24 Q1 FY23 % Change of the decline was from divested businesses and the remaining 9% was due to a Revenue Outside the U.S. $ 160.1 $ 191.6 (16.4)% combination of slightly lower employment services volumes and
Slide 7: Debt, Cash Flows, and Capital Allocation
Debt, Cash Flows, and Capital Allocation Cash Flows & DSO $ in millions Q1 FY24 FY24 Guidance Cash provided by operating activities $ 21.6 Purchases of property and equipment and capitalized software costs (22.2) Free cash flow $ (0.6) $300M - $350M • Q1 FY24 cash flows were expected and due to seas
Slide 8: Raising Fiscal Year 2024 Guidance
Raising Fiscal Year 2024 Guidance • Improved outlook results from higher margin expectations driven by Fiscal 2024 Guidance Updated Previous strong volumes on the portfolio of performance-based contracts and Revenue $5.05B - $5.20B (no change) disciplined cost management − Midpoint of FY24 earnings
Slide 9: Fiscal 2024 First Quarter Earnings Call
Fiscal 2024 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 8, 2024 9 | Maximus: Q1 FY24 Earnings Presentation
Slide 10: Well-positioned to Mitigate Macro-environmental Risks
Well-positioned to Mitigate Macro-environmental Risks Established entitlement programs are resilient and Continuing to optimize organization and foundational to our business rethink delivery model • Demonstrated with latest open enrollment for • Maximus Forward driving focus to improved Affordable C
Slide 11: Technology Modernization & Evolution
Technology Modernization & Evolution Chief Digital and Information Officer (CDIO) Advancements in Artificial Intelligence • Position marks our evolution from a • Simulations that will allow employees more traditional CIO role and to learn in a safe space, using real life demonstrates our ongoing exa
Slide 12: New Awards & Pipeline $37.7B
New Awards New Awards (YTD) December 31, 2023 Signed Contracts $422 million & Pipeline Unsigned Contracts $802 million As of December 31, our book-to-bill ratio total pipeline 77% new work was approximately 1.2x $37.7B of sales (TTM basis) opportunities 57% Services Segment U.S. Federal $933M $1.01B
Slide 13: Closing Remarks
Closing Remarks • Pleased with the performance of the business during this past quarter • Progressing toward our established targets of 10-14% total Through an effort we call Maximus Forward, we company adjusted operating income margin and mid-single digit continue to evaluate, benchmark, and, in so
Slide 14: | Maximus: Q1 FY24 Earnings Presentation
14 | Maximus: Q1 FY24 Earnings Presentation