Maximus, Inc. · NYSE:MMS
Maximus — Q2 FY2017 Earnings Presentation
16 slides from Maximus's earnings presentation, May 8, 2017
Slide 1: Rick Nadeau, Chief Financial Officer, May 4, 2017
1 Rick Nadeau Chief Financial Officer May 4, 2017 Helping Government Serve the People®
Slide 2: Forward-looking Statements & Non-GAAP Information
2 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 earnings conf
Slide 3: Total Company Results – Second Quarter of FY 2017
3 Total Company Results – Second Quarter of FY 2017 • Revenue increased 3% • Most growth was organic, partially offset by unfavorable foreign currency translation (most notably from British Pound); on a constant currency basis, revenue would have increased 4% • GAAP diluted EPS were $0.80 – better t
Slide 4: Health Services Segment
4 Health Services Segment Q2 FY17 Revenue • Most of the growth was organic, but unfavorably impacted 3% from foreign currency translation; on a constant currency basis, growth would have been 9% compared to Q2 FY16 • Excluding aforementioned out-of-period revenue and income benefits from the same pe
Slide 5: U.S. Federal Services Segment
5 U.S. Federal Services Segment Q2 FY17 Revenue • As expected, revenue decreased 3% compared to Q2 FY16 • Disclosed last quarter, largest driver for revenue decline was ramp down of work for U.S. Department of Veterans Affairs that ended in April Q2 FY17 Operating Margin • Better than our expectatio
Slide 6: Human Services Segment
6 Human Services Segment Q2 FY17 Revenue • Nearly all growth was organic; partially offset by expected decreases in U.K. operations U.K. Work Programme Wind Down • Work Programme contract is winding down and unfavorably impacted revenue and operating income in Q2 FY17 • New referrals to program ende
Slide 7: Cash Flows and DSOs
7 Cash Flows and DSOs $ in millions Q2 FY17 Cash flows from operations $65.7 Cash paid for property, equipment & capitalized software ($5.2) Free cash flow $60.5 Days Sales Outstanding (DSOs) • DSOs in-line with expectations and totaled 69 days at March 31, 2017 Delivered strong cash flows in Q2 FY1
Slide 8: Cash, Uses of Cash and Capital Allocation
8 Cash, Uses of Cash and Capital Allocation Long-Term Debt Payments • During three months ended March 31, 2017, used net cash of ~$34.8M to pay down long-term debt • Ended Q2 with $115M drawn on U.S. credit facility and <$1M of other cash borrowing obligations Q2 FY17 Share Repurchases • Immaterial
Slide 9: Guidance
9 Guidance Fiscal 2017 Guidance New Old Notes Revenue $2.425B - $2.475B $2.425B - $2.475B No change GAAP Diluted EPS $3.00-$3.10 $2.90-$3.10 Raising lower end due to solid performance & expected incremental tax benefits Cash flows from operations $230M - $280M $230M - $280M No change, but bias towar
Slide 10: Richard Montoni, Chief Executive Officer, May 4, 2017
10 Richard Montoni Chief Executive Officer May 4, 2017 Helping Government Serve the People®
Slide 11: Solid Results & On Track to Achieve FY17 Objectives
11 Solid Results & On Track to Achieve FY17 Objectives • Solid results in Q2 confirm that we remain on track to achieve our financial and operational objectives for FY17 • Land and expand remains an important element of our long-term growth strategy • Today, we will provide some additional color on
Slide 12: New York Enrollment Center Three-Year Extension
12 New York Enrollment Center Three-Year Extension The Contract New York Enrollment Center (NYEC) contract is a vehicle to gain program efficiencies by streamlining eligibility and enrollment for multiple health insurance benefit programs Extension demonstrates solid partnership since contract start
Slide 13: New Work in Scotland
13 New Work in Scotland As part of ongoing trend to devolve programs to local authorities, Scottish Government established transitional employment services programs Two New Contracts • Remploy won two small, but strategic transition contracts: 1. Work First Scotland is the replacement for larger U.K
Slide 14: HAAS Highlights from Contract Year Two (CY2)
14 HAAS Highlights from Contract Year Two (CY2) 1. New Operating Structure Implemented a new operating structure that put better management information in the hands of the operators Resulted in a single line of accountability with better data & reporting; staff have greater clarity on delivery o
Slide 15: New Awards & Sales Pipeline
15 New Awards March 31, 2017 YTD Signed Contracts $1.5B Additional Unsigned Contracts $155M Sales Opportunities March 31, 2017 Total Pipeline* $3.3B * Reported pipeline only reflects short-term opportunities where we believe request for proposals will be released within next six months New Awards &
Slide 16: Conclusion
16 Conclusion Short-Term Environment • Dynamic and industry is experiencing a pause; using this time to best position the Company for growth: Refining our processes Reinvesting in new platforms Bringing in key people Examining potential new markets Other strategic initiatives • Years when