Slide 1: Second Quarter Fiscal Year 2009
David N. Walker Chief Financial Officer and Treasurer Second Quarter Fiscal Year 2009 May 7, 2009
Slide 2: Second Quarter Fiscal 2009 Financial Results
Second Quarter Fiscal 2009 Financial Results Revenue of $184.2 million, up 1% on a constant currency basis compared to same period last year Net income from continuing operations of $11.4 million Q2 09 diluted EPS of $0.64 from continuing operations – Pro Forma diluted EPS of $0.66, which excludes l
Slide 3: Operations Segment
Operations Segment Revenue increased 5.6% to $155.6 million – Q2 08 benefitted from $6.9 million in non-recurring revenue – and on a constant Normalized for this infrequent revenue, currency basis, revenue grew 5.6% Q2 operating income of $19.9 million with a 12.8% operating margin – Expected lower
Slide 4: Consulting Segment
Segment Consulting Revenue totaled $28.6 million in Q2 09 – Performance driven by revenue and profit from the NYC Department of Education project – Included approximately $4.8 million in non-recurring pass through revenue The segment improved approximately 1 0 sequentially by $1.0 million in operati
Slide 5: Balance Sheet
Balance Sheet MAXIMUS maintains strong liquidity and flexibility in this demanding market In 09, generated cash from operating activities related to continuing operations of $40.0 million and free cash flow1 from continuing operations of $34.5 million – Included a $12.5 million insurance reimburseme
Slide 6: Guidance
Guidance Updating fiscal 2009 guidance – Revenue to be in the range of $745 million to $755 million – Earnings per share in the range of $2.75 to $2.85 – Currently expect Q3 09 to be consistent with Q2 09, depending on the timing of start-up expenditures. Q4 09 is expected to be strong, driven by ne
Slide 7: Richard A. Montoni, President and Chief Executive Officer
Richard A. Montoni President and Chief Executive Officer Second Quarter Fiscal Year 2009
Slide 8: Setting the Table for Meaningful Growth in 2010 and Beyond
Second quarter results in line – Reflective of the repositioned Setting the Table for Meaningful Growth in 2010 and Beyond resilient nature of our business – Aside from start-up investments from new work and tempered outlook in consulting, progressing as expected Major rebid and expansion of the Job
Slide 9: CHIP Reauthorization
CHIP legislation seeks to expand enrollment from 7 million to 11 million CHIP Reauthorization children over the next five years Could be a significant catalyst for growth in the long term As the leading provider of CHIP administration services, is best equipped to help states meet challenges from ne
Slide 10: Leading Pure-Provider in CHIP Enrollment
Leading Pure-Provider in CHIP Enrollment Twelve states presently outsource CHIP enrollment of which MAXIMUS runs enrollment in share 2,000,000 additional Source for number of CHIP enrollees: CMS 2007 five states with a 69% market share. Approximately 2,000,000 children receive CHIP services through
Slide 11: FY 2009 Guidance and FY 2010 Top-Line Commentary
FY Guidance and FY 2010 Top-2009 Line Commentary Fiscal 2009 earnings – Adjusted primarily to account for ramp-up investments in new work – Tempered outlook in Consulting but executing plan to improve portfolio, focus on fundamentals, manage costs and bring it to consistent profitability New start-u
Slide 12: Capitalizing on New Opportunities
Capitalizing on New Opportunities Closely monitoring Federal health care reform efforts – Administration has three main goals for reform: improve quality, contain costs and cover the uninsured MAXIMUS brings valuable experience to the table – Ability to contain administrative costs and increase acce
Slide 13: New Sales Awards and Pipeline
New Sales Awards and Pipeline S l Q2 2008* Sales Q2 2009 Signed Contracts $604M $447M Awarded Unsigned Contracts $125M $338M Pipeline Proposals Pending $479M $651M $115M $110M Proposals in Preparation RFPs Tracking $782M $646M Total Pipeline $1,376M $1,406M *Restated to reflect divested businesses
Slide 14: Conclusion
MAXIMUS maintains a healthy cash balance Conclusion We will invest in ramping up our new contracts in the coming quarters We are actively considering ways to deploy cash in a strategic fashion– Stock repurchase and dividend programs – Evaluation and pursuit of tuck-in acquisitions as appropriate We