Slide 1: Fiscal 2023 Second Quarter Earnings Call
Fiscal 2023 Second Quarter Earnings Call David Mutryn Chief Financial Officer May 4, 2023 1 | Maximus: Q2 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 – Second Quarter of FY23
Total Company Results – Second Quarter of FY23 ($ in millions, except per share data) Q2 FY23 Q2 FY22 % Change • Executing on financial and strategic priorities: − Significant debt reduction (half-turn, to 2.5x) Revenue U.S. Federal Services $ 584.1 $ 573.3 2% enabled by record cash flows U.S. Servi
Slide 4: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased 1.9% due to volume growth in the VA Medical Disability Exam (MDE) ($ in millions) Q2 FY23 Q2 FY22 % Change contracts which comprise our Veterans Evaluation Services (VES) business Revenue U.S. Federal Services $ 584.1 $ 573.3 2% • Segment margin of 8
Slide 5: U.S. Services Segment
U.S. Services Segment • Revenue increased 13% driven by contributions from previously-disclosed new work wins in core ($ in millions) Q2 FY23 Q2 FY22 % Change areas such as eligibility support and clinical services Revenue U.S. Services $ 449.7 $ 398.1 13 % • Segment margin of 9.5% for Q2 FY23 refle
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment • Revenue decrease of 16% is comprised of organic contraction totaling 8% primarily from last year’s ($ in millions) Q2 FY23 Q2 FY22 % Change Australia rebid outcome and currency impacts of 7% Revenue Outside the U.S. $ 173.1 $ 206.0 (16)% • Segment loss of $3.7 million for
Slide 7: Cash Flows & Debt
Cash Flows & Debt Cash Flows & DSO $ in millions Q2 FY23 YTD FY23 Cash provided by operating activities $ 309.7 $ 175.0 Purchases of property and equipment and capitalized software costs (18.1) (33.8) Free cash flow $ 291.6 $ 141.3 • Record cash flows in Q2 FY23 made up for temporarily low cash flow
Slide 8: Reaffirming Fiscal Year 2023 Guidance
Reaffirming Fiscal Year 2023 Guidance • Reaffirming FY23 revenue and earnings guidance. Revenue Fiscal 2023 Guidance projection is 5% – 8% year-over-year growth, overcoming the $300 million reduction of short-term work Revenue $4.85B - $5.0B • Earnings expected to grow sequentially with good line of
Slide 9: Fiscal 2023 Second Quarter Earnings Call
Fiscal 2023 Second Quarter Earnings Call Bruce Caswell President & Chief Executive Officer May 4, 2023 9 | Maximus: Q2 FY23 Earnings Presentation
Slide 10: FY23 Priorities
FY23 Priorities Supporting Medicaid redeterminations Processing PACT Act-related claims • Key assumptions from last quarter remain well in-tact, • We are seeing an increase in volumes with VES, including redetermination work spread over the both related to the current inventory and new PACT Act allo
Slide 11: Optimizing the Business
Optimizing the Business • During the second • Both businesses • We routinely • Together, the • The financial quarter, we divested were non-core to evaluate our portfolio annual revenue effect, especially two small businesses our three-to-five- of businesses in this run rate for both given the partia
Slide 12: Executing on Our Strategy
Executing on Our Strategy Technology Modernization • Secured our place on the IRS Enterprise Development, Operations Services (EDOS) procurement following resolution of protest • The Blanket Purchase Agreement is worth up to $2.6 billion over 7 years for the resulting task orders which are expected
Slide 13: New Awards & Pipeline
New Awards & Pipeline • As of March 31, our book-to- New Awards (YTD) March 31, 2023 bill ratio was approximately Signed Contracts $1.22 billion 2.1x (TTM basis) Unsigned Contracts $1.27 billion − Includes the large CCO award in Q4 of FY22 • IRS EDOS and USDS do total pipeline 78% new work not contr
Slide 14: Closing Remarks
Closing Remarks • Our priorities for remainder of FY23 are clear: − Successful execution on ramping volumes in our core Medicaid eligibility and Veterans’ assessments markets − Focus on underperforming businesses − Disciplined capital allocation • Combination of recompete and new-work awards continu
Slide 15: | Maximus: Q2 FY23 Earnings Presentation
15 | Maximus: Q2 FY23 Earnings Presentation