Slide 1: Fiscal 2013 Fourth Quarter & Full Year Earnings
Slide: 1 SubTitle: David N. WalkerChief Financial Officer and TreasurerNovember 15, 2013 Title: Fiscal 2013 Fourth Quarter & Full Year Earnings
Slide 2: Forward-looking Statements & Non-GAAP Information
Slide: 2 Title: 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
Slide 3: Total Company Financial Results
3 Total Company Financial Results • Q4 revenue increased 28%; Organic revenue growth of 23% − Revenue better-than-expected due to several change orders in Q4, that were expected to occur in FY14 • Q4 operating margin of 15%; GAAP income from continuing operations, net of taxes, totaled $35.6M ($0.51
Slide 4: The Health Segment had a Record Year of Profitable Growth
4 The Health Segment had a Record Year of Profitable Growth Health Services Segment Fourth Quarter Results Compared to Last Year • Revenue increased 49% driven by new work, expansion on existing contracts, and the Health Management acquisition • Operating income increased 130% to $45.9M • Operating
Slide 5: Human Services Segment
5 Human Services Segment Fourth Quarter Results Compared to Last Year • Revenue decreased 5% to $113.3M • Operating income totaled $11.9M; operating margin of 10.5% • Both operating income and margin are lower compared to Q4 FY12 − Q4 of FY12 results included short-term work in U.S. operations that
Slide 6: Balance Sheet and Cash Flows
6 Balance Sheet and Cash Flows Cash Flows & DSOs • Q4 DSOs of 69 days • Cash provided by operating activities for Q4 and FY 13 were impacted by timing of payments at year end − Large weighting of billable revenue occurred at the end of the quarter (change orders and timing on large transactions) − R
Slide 7: Total Company Guidance
Slide: 7 Title: Total Company Guidance Confirming Fiscal 2014 Revenue and Earnings GuidanceRevenue range of $1.555B to $1.650B, driven principally by growth in the Health SegmentIn excess of 95% of our forecasted FY14 revenue in the form of backlog or contract optionsEntering fiscal 2014 with record
Slide 8: Segment Guidance
Slide: 8 Title: Segment Guidance Other Placeholder: Health Services SegmentFY14 quarterly revenue expected to be more level-loaded throughout the year due to:An initial surge of work tied to the ACA launch and open enrollment in Q1 and partially in Q2; This revenue will be seasonally lower in 2H of
Slide 9: Fiscal 2013 Fourth Quarter & Full Year Earnings
Slide: 9 SubTitle: Richard A. MontoniPresident and Chief Executive Officer November 15, 2013 Title: Fiscal 2013 Fourth Quarter & Full Year Earnings
Slide 10: Progress on Long-Term Growth Objectives in FY13
Slide: 10 Title: Progress on Long-Term Growth Objectives in FY13 Continued solid top- and bottom-line growthTremendous efforts in making FY13 successful from our 12,000 employeesOperational expansion and future growth trajectory are a direct result of employee contributions Significant progress was
Slide 11: Established Leader for HIX Customer Contact Centers
Slide: 11 Title: Established Leader for HIX Customer Contact Centers Helped Minnesota build and launch exchangeSupported California with short-term work to help train customer service staffCemented position as the leading partner for providing high-quality customer service for the exchangesLaunched
Slide 12: Eligibility Appeals Services for the Federal Exchange
Slide: 12 Title: Eligibility Appeals Services for the Federal Exchange New contract to provide the overall management of the eligibility appeals process:Operate a resolution process for appealsReview appeal requests and supporting documentsCoordinate data collections with appellantsProvide general c
Slide 13: Health Care Reform - Looking Ahead
Slide: 13 Title: Health Care Reform - Looking Ahead Other Placeholder: Continue to view health insurance exchanges and other work related to the Affordable Care Act as a multi-year growth driverOver the next several years, expect some states will consider transitioning to state-based exchangesDemogr
Slide 14: Federal Operations Expansion
Slide: 14 Title: Federal Operations Expansion Success in expanding the federal book of business in our traditional service lines supporting CMSOver the past two years, we have:Enhanced our current offeringsInvested heavily in business development and delivery resourcesIdentified opportunities to app
Slide 15: Expanding Our International Operations
Slide: 15 Importing core competencies into both existing and new markets, as well as increasing the scope of current operationsContinue to assess new geographies where governments seek assistance for important reform effortsPrimary efforts are focused on delivering new services into existing markets
Slide 16: Update on United Kingdom Operations
Slide: 16 Title: Update on United Kingdom Operations Health ManagementAcquisition provided strategic platform for introducing core health offerings in UKDelivery team well-positioned for future opportunities that may lead to proposal activity during FY14Growth plans upon reputation and demonstrated
Slide 17: Other Areas of International Growth
Slide: 17 Title: Other Areas of International Growth Formal memorandum of understanding with the Kingdom of Saudi Arabia that extends the pilot program for three years; expect signed contract by the end of this quarterInternational growth strategy continue to be based on our “land and expand” approa
Slide 18: Rebids and Option Periods
Slide: 18 Title: Rebids and Option Periods FY13 successful year for rebids & options14 contracts with a total contract value ~$475MSecured 95% of this total contract value through contract wins and extensionsWon 100% of our option periods by September 30 FY14 expected to be a light year for rebids &
Slide 19: Fiscal 2013 New Awards and Sales Pipeline
Slide: 19 Title: Fiscal 2013 New Awards and Sales Pipeline $1.9B signed awards reached record levelSubstantial portion is new workHeavily weighted to the Health Segment$362M in new contracts pendingContracts where we’ve received notification of award and are in negotiations, but not yet signed$2.4B
Slide 20: Continued Growth through Fiscal 2014 and Beyond
Slide: 20 Title: Continued Growth through Fiscal 2014 and Beyond Remain keenly focused on our top three strategic growth priorities, including:Additional work related to phase two of the Affordable Care Act over the next several yearsContinued growth for our federal book of businessFurther expansion