Slide 1: Fiscal 2023 First Quarter Earnings Call
Fiscal 2023 First Quarter Earnings Call David Mutryn Chief Financial Officer February 9, 2023 1 | Maximus: Q1 FY23 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 FY23
Total Company Results – First Quarter of FY23 ($ in millions, except per share data) Q1 FY23 Q1 FY22 % Change • Revenue increased 8.5%, or 10.3% on an organic growth basis, driven by new or Revenue expanded programs in all three segments; U.S. Federal Services $ 618.2 $ 581.9 6% U.S. Services 439.5
Slide 4: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased 6.2% due to strong ($ in millions) Q1 FY23 Q1 FY22 % Change demand in the segment’s clinical service Revenue business and anticipated higher revenue on U.S. Federal Services $ 618.2 $ 581.9 6% a large, cost-plus contract. Operating Income U.S. Federa
Slide 5: U.S. Services Segment
U.S. Services Segment • Revenue increased 13.7% driven by ($ in millions) Q1 FY23 Q1 FY22 % Change contributions from previously-disclosed new Revenue work wins in core areas such as eligibility U.S. Services $ 439.5 $ 386.4 14 % support and clinical services. Operating Income U.S. Services $ 37.8 $
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment • Revenue increase of 5% is net of currency ($ in millions) Q1 FY23 Q1 FY22 % Change headwinds which reduced revenue by Revenue approximately 12%. Outside the U.S. $ 191.6 $ 182.6 5% • Organic growth was approximately 16%, driven Operating Income/(Loss) primarily by the U.K.
Slide 7: Cash Flows, Debt & Capital Allocation
Cash Flows, Debt & Capital Allocation Cash Flows & DSO $ in millions Q1 FY23 Cash used in operating activities $ (134.7) Purchases of property and equipment and capitalized software costs (15.7) Free cash flow $ (150.4) • While Q1 FY23 cash flows were anticipated to be lower, collections were lighte
Slide 8: Raising Fiscal Year 2023 Guidance
Raising Fiscal Year 2023 Guidance • Raising FY23 revenue and earnings guidance to Fiscal 2023 Guidance Updated Previous account for Medicaid redeterminations scheduled to Revenue $4.85B - $5.0B $4.75B - $4.90B restart later this year. − Volumes from redetermination activities forecasted to Adjusted
Slide 9: Fiscal 2023 First Quarter Earnings Call
Fiscal 2023 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 9, 2023 99 | Maximus: Q1 FY23 Earnings Presentation
Slide 10: Restarting of Medicaid Redeterminations
Restarting of Medicaid Redeterminations States are prepping for major undertaking Redetermination Timeline • Since the pandemic began, Maximus’ core programs • Initiation of process could begin on February in the U.S. Services Segment have been operating 1 and must be started by April 2023. “Initiat
Slide 11: New Wins Deliver on Strategy
New Wins Deliver on Strategy Future • New win in Q1 FY23 in U.S. Services for clinical work with long-standing state customer. of Health • Our clinicians will be performing variety of complex health assessments, including level of care and Preadmission Screening and Resident Review (PASRR) assessmen
Slide 12: Diversification and Growth Drivers
Diversification and Growth Drivers Expanding • In Outside the U.S. Segment, Maximus was recently awarded new contract in the Gulf Our Services region to perform annual surveys for ~500K social welfare beneficiary households to ensure new eligibility rules are consistently applied. • Contract is for
Slide 13: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) December 31, 2022 Signed Contracts $480.9 million • As of December 31, our Unsigned Contracts $661.1 million book-to-bill ratio was approximately 2.2x (TTM basis). Our total pipeline of sales opportunities is $30.5 billion, 74% of which represents new work or,
Slide 14: Closing Remarks
Closing Remarks • We entered FY23 with momentum, including record backlog, healthy pipeline, strong core business delivery, minimal near-term rebid risk, and solid progress de-levering the business in a tough interest rate environment. • Building on that, we see improved visibility that previously p
Slide 15: | Maximus: Q1 FY23 Earnings Presentation
15 | Maximus: Q1 FY23 Earnings Presentation