Maximus, Inc. · NYSE:MMS
Maximus — Q1 FY2021 Earnings Presentation
16 slides from Maximus's earnings presentation, Feb 4, 2021
Slide 1: Fiscal 2021 First Quarter Earnings Call
Fiscal 2021 First Quarter Earnings Call Rick Nadeau Chief Financial Officer February 4, 2021 1 | Maximus: Q3 FY20 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 FY21
Total Company Results – First Quarter of FY21 ($ in millions, except • Revenue growth was in-line with our expectations and driven by Q1 FY21 Q1 FY20 % Change per share data) COVID-response work. − Serving an integral role in contact tracing, disease Revenue investigation, vaccination support, unemp
Slide 4: U.S. Services Segment
U.S. Services Segment Q1 FY21 Revenue • Increased 23.3% driven by an estimated $114M of ($ in millions) Q1 FY21 Q1 FY20 % Change COVID-response work Revenue Q1 FY21 Operating Margin U.S. Services $ 384.9 $ 312.3 23.3 % • Continue to experience revenue and profit headwinds resulting from lower volume
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment Q1 FY21 Revenue • Increased 10.6% driven by an estimated $46M of ($ in millions) Q1 FY21 Q1 FY20 % Change COVID-response revenue. Organic growth was 13.5%, excluding the Census contract. The Census contract Revenue delivered approximately $60M for Q1 FY21, or $10M U.S.
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment Q1 FY21 Revenue • Increased 11.5%. Excluding the effects of currency, ($ in millions) Q1 FY21 Q1 FY20 % Change organic growth was 4.8%. Revenue Q1 FY21 Operating Income Outside the U.S. $ 155.4 $ 139.4 11.5 % • Operating income was better than expected primarily due to job p
Slide 7: Outside the U.S. Segment: Rising Volumes and New Work Define FY21
Outside the U.S. Segment: Rising Volumes and New Work Define FY21 Strong Demand • Continue to see strong demand for employment services in all of our international operations. Anticipate that volumes from current programs, most notably in Australia, and supplemented by new work will drive revenue gr
Slide 8: Cash Flows, Balance Sheet, and Capital Allocation
Cash Flows, Balance Sheet, and Capital Allocation $ in millions Q1 FY21 Cash flows from operations $ 98.1 Purchases of property and equipment and capitalized software costs (9.1) Free cash flow $ 89.0 Cash Flows & Balance Sheet • Cash and cash equivalents of $132.6M and no outstanding draws on corpo
Slide 9: Raising Fiscal Year 2021 Guidance
Raising Fiscal Year 2021 Guidance Fiscal 2021 Guidance Revised Previous Revenue $3.400B – $3.525B $3.20B – $3.40B Diluted EPS $3.55 – $3.75 $3.45 – $3.70 Cash from operations $350M – $400M $340M – $390M Free cash flow $310M – $360M $300M – $350M • Raising FY21 full year guidance based on cautious op
Slide 10: Fiscal 2021 First Quarter Earnings Call
Fiscal 2021 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 4, 2021 10 | Maximus: Q1 FY21 Earnings Presentation
Slide 11: U.S. 2021 Presidential Transition
U.S. 2021 Presidential Transition Anticipated implications • While it is still early days in the Biden Administration, we are cautiously optimistic regarding the stated policy initiatives and the potential favorable tailwinds that may be created for companies like Maximus. • We will likely see a mea
Slide 12: COVID-Response Work
COVID-Response Work • A prime example of the demonstrated value of our services and the relationships we have developed with our clients • These contracts are a revenue driver, offsetting unfavorable impacts on operations that are experiencing a pandemic- related temporary pause • Initial COVID work
Slide 13: Increasing Demand and Adaptability
Increasing Demand and Adaptability Rising unemployment and rising caseloads • Increasing demand for employment support services around the globe • The pace at which different countries emerge from the pandemic varies widely with some countries having progressed further in managing the spread of the
Slide 14: Cloud Solutions
Cloud Solutions FedRAMP certifications • Our FedRAMP certifications meet the most stringent security requirements of federal agencies as we aim to deliver innovative and cost-effective cloud-based solutions that support mission objectives and provide the highest quality citizen services, thereby tra
Slide 15: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) December 31, 2020 Sales Pipeline December 31, 2020 New Work % Signed Contracts $594M Total Pipeline $31.6B 71.1% Unsigned Contracts $1.14B Pipeline dynamics • It remains difficult to predict the impact that the global health pandemic may have on our pipeline, t
Slide 16: Conclusion
Conclusion January events in Washington D.C. and elsewhere Maximus engages in the bi-partisan political process in order to better understand our government clients’ long-term goals Our Board’s Nominating and Governance Committee has oversight of the Company’s policies pertaining to political co