Slide 1: Second Quarter Fiscal 2008 (David N. Walker, CFO)
1 David N. Walker Chief Financial Officer and Treasurer Second Quarter Fiscal 2008 May 8, 2008
Slide 2: Second Quarter Financial Results
2 Second Quarter Financial Results Q2 revenue was $210.6 million an 18% increase over same period last year All growth was organic driven by new or expanding work in Operations segment MAXIMUS incurred charges totaling $5.4 million (approximately $0.17 per share) to include: A $2.2 million charge re
Slide 3: Proceeds & Gains From Divested Businesses & Property Sale
3 Proceeds & Gains From Divested Businesses & Property Sale Two non core divisions successfully divested in early May Security Solutions from our Systems segment sold for cash proceeds of $5 million Unison, a subsidiary from our Consulting segment sold for approximately $6.5 million Entered into con
Slide 4: Operations Segment
4 Operations Segment Revenue increased 33% to $159.8 million compared to the same period last year Growth driven by Health Operations, the Texas project and domestic and international Workforce Services operations Segment revenue benefited from hardware and software purchases of approximately $6.9 m
Slide 5: Consulting Segment
5 Consulting Segment Consulting segment revenue for Q2 totaled $20.2 million Loss of approximately $800,000 reported for the quarter Loss reflects $2.3 million charge related to legacy claiming project which the client is appealing and may be recovered at a future date Transitioning away from legacy
Slide 6: Systems Segment
6 Systems Segment Total revenue for Q2 totaled $30.5 million Loss of approximately $5.9 million reported for quarter Asset Solutions and ERP divisions continue to deliver strong results Losses in Education and Justice divisions stem from software commitments that will ultimately position them well i
Slide 7: Expenses & Margin
7 Expenses & Margin Majority of charges in quarter impacted revenue and gross margins in Consulting and Systems segments An 8% operating margin was achieved in quarter driven by Operations segment which offset charges in Systems and Consulting segments SG&A as a percent of revenue was 17.7% An impro
Slide 8: Balance Sheet and Cash Flow Items
8 Balance Sheet and Cash Flow Items Cash at March 31, 2008 totaled $63.4 million Total Current Accounts Receivable for Q2 was $175.0 million Additional $1.7 million in long term accounts receivable classified within other assets on balance sheet DSO’s totaled 76 days Anticipate DSO’s to run between
Slide 9: Second Quarter Fiscal 2008 (Richard A. Montoni, CEO)
9 Richard A. Montoni President and Chief Executive Officer Second Quarter Fiscal 2008 May 8, 2008
Slide 10: Financial Results: Continuing Strength in Operations Offset Weakness in Systems
10 Financial Results: Continuing Strength in Operations Offset Weakness in Systems Redefining MAXIMUS as a leading pure play in government Health and Human Services’ outsourcing Sharpened focus on core business should provide long term sustained growth and increased shareholder value Results for the
Slide 11: Operations Segment on Course for Long Term Success
11 Operations Segment Operations Segment on Course for Long Term Success Strong Segment leadership promotes focus and diligence Contractual discipline in how we acquire and structure new awards Declined unacceptable rebid opportunities Renegotiated inequitable contracts Developing and pursuing new o
Slide 12: Operations Segment Productization Efforts
12 Operations Segment Productization Efforts Productization is a key element to advancing technology efforts Streamlining of processes Moving away from highly customized solutions to more component based/modular approach Utilize plug and play technology anchored in Services Oriented Architecture (SO
Slide 13: Consulting Segment
13 Consulting Segment Consulting segment incurred a $2.3 million charge related to legacy claiming project Client is appealing Prior to job start, brought in specialized counsel to review and approve claiming methodology which had be utilized before View this as a normal course exercise We no longer
Slide 14: Significant Progress on Divestitures of Non Core Assets
14 Significant Progress on Divestitures of Non Core Assets Subsequent to quarter end, closed the sale of two business UNISON MAXIMUS, which was part of the Consulting segment, was divested through a division management led buyout This is an airport, retail and financial consulting business A profita
Slide 15: Systems Segment
15 Systems Segment Challenges limited to Justice and Education divisions Trying to complete software development and generate business unit improvement, while at the same time meeting contractual obligations Near term emphasis on balancing commitments and changing the way we go to market to emphasiz
Slide 16: Overall Market Outlook
16 Overall Market Outlook Even with State budgets under pressure, the need for our services remains strong. We have not seen a slow down to date. MAXIMUS is well positioned to capitalize on international opportunities that are developing in our core health and human services operations In March, awa
Slide 17: New Awards and Sales Pipeline
17 New Awards and Sales Pipeline May 2, 2007 May 5, 2008 Sales $302 $615 New Signed Awards $1,206 $1,609 Total Pipeline $601 $908 RFP’s Tracking $86 $121 Proposals in Preparation $519 $581 Proposals Pending Pipeline $82 $149 New Awards (unsigned) ($ in millions)
Slide 18: Rebids & Options
18 Rebids & Options Rebids: Notified of award on 3, totaling $36 million, this leaves 8 remaining rebids with a total value estimated at $237 million Option year exercises; to date out of the 27 options with a total value of $223 million up for exercise this year, we have won or been notified of int
Slide 19: Guidance
19 Guidance Revising fiscal 2008 guidance resulting from the sale of businesses and impacts of this quarter While results in Systems have been disappointing we have made critical progress and are in better position to pursue alternatives for non core assets Operations segment continues to record sol