Slide 1: Third Quarter Fiscal 2008 – CFO Presentation
Slide: 1 David N. Walker Chief Financial Officer and Treasurer Third Quarter Fiscal 2008 August 7, 2008
Slide 2: Third Quarter Financial Results
Slide: 2 Title: Third Quarter Financial Results Body: Q3 revenue was $206.3 million – a 9% increase over same period last year All growth was organic - driven by new & expanding work in Operations segment Company reported net income of $11.4 million or $0.61 per diluted share Favorable impact of $0.
Slide 3: Infrequent Items
Slide: 3 Title: Infrequent Items Body: One-time items reflect divesting non-core businesses, streamlining administrative office space and better positioning divisions for improved performance or sale Included in the legal and settlement line is $0.7 million related to ongoing arbitration with Accent
Slide 4: Operations Segment
Slide: 4 Title: Operations Segment Body: Revenue increased 13% to $157.9 million compared to Q3 07 Growth fueled by new and expanding work – notably from Workforce Services and Health operations Normalized, Segment revenue grew sequentially relative to Q2 08 by 2.5% Reminder: 2Q 08 revenue was bolst
Slide 5: Consulting Segment
Slide: 5 Title: Consulting Segment Body: Consulting segment revenue for Q3 totaled $19.7 million Operating income for Consulting totaled approximately $0.5 million Segment results were in-line with expectations Continuing to transition this segment away from contingency-based RevMax work while makin
Slide 6: Systems Segment
Slide: 6 Title: Systems Segment Body: Third quarter revenue for segment totaled $28.7 million Loss of approximately $5.6 million reported for quarter Financial performance of both Asset Solutions and ERP offset some losses in Justice and Education Justice settlement in Q3: Resolves all remaining dev
Slide 7: Expenses & Margin
Slide: 7 Title: Expenses & Margin Body: Gross profit and SG&A as a percent of revenue have been running at consistent levels over last several quarters During Q3 total Company operating margin was affected by several non-recurring events Gains from the McLean property sale Divested businesses Legal
Slide 8: Balance Sheet and Cash Flow Items
Slide: 8 Title: Balance Sheet and Cash Flow Items Body: Cash at June 30, 2008 totaled $77.9 million Received a refund of cash of approximately $13.9 million due to completion of ASR Board has approved repurchases up to $75 million, expanding program by approximately $30 million Total Current Account
Slide 9: Third Quarter Fiscal 2008 – CEO Presentation
Slide: 9 Richard A. Montoni President and Chief Executive Officer Third Quarter Fiscal 2008 August 7, 2008
Slide 10: Refining Business to Focus on Core Health & Human Services Business
Slide: 10 Title: Refining Business to Focus on Core Health & Human Services Business Body: With concentrated focus, business will be: More focused, more predictable, well positioned to grow and more profitable Two Key Points Proceeding with our plan to refine our business focus on our core Health an
Slide 11: Divestitures
Slide: 11 Title: Divestitures Body: Two non-core divestures completed in Q3: Unison & Security Solutions Results were a gain in sales – one was deferred Divestitures of other non-core operations being actively pursued while working to improve performance through elimination of recurring losses Effor
Slide 12: Operations Segment
Slide: 12 Title: Operations Segment Body: Operating margin of 15% was at high end of range for segment Benefited from seasonal tax and credit work Continued strength reflects addition of new profitable work - Health & Workforce Services (both domestically and internationally) Transformation of the T
Slide 13: Consulting Segment
Slide: 13 Title: Consulting Segment Body: Major strides in realigning core competencies with key drivers for longer-term market demand De-emphasizing Rev Max practice Focusing resources in favor of integrity-based initiatives Medicare Fraud, Waste & Abuse (FWA), Payment Error Rate Measurement (PERM)
Slide 14: Market Environment
Slide: 14 Title: Market Environment Body: Continued demand for services despite concerns of state and local leaders over expected revenue shortfalls for upcoming budgets Not immune to budgetary constraints, some immaterial isolated instances Better insulated today than in prior years Mix of business
Slide 15: Acquisitions
Slide: 15 Title: Acquisitions Body: Acquisitions abroad complement organic growth initiatives Adds domain expertise & increases geographic footprint Westcountry Training & Consultancy Services (WTCS) Completed August 1 Provides MAXIMUS a foothold into UK employment & training marketplace Operates wi
Slide 16: New Sales Awards, Sales Pipeline & Major Rebids
Slide: 16 Title: New Sales Awards, Sales Pipeline & Major Rebids Body: Major Rebids Expect 2 of 3 current Texas contracts to be extended through Dec. 31, 2009 Beyond that date, TX released two RFP’s for rebid – our team is engaged in preparing responses We have a third contract in Texas that will ru
Slide 17: Capitalization
Slide: 17 Title: Capitalization Body: Accelerated Share Repurchase Plan completed, settled in cash and received $13.9 million in July Reactivated share buyback program & increased authorization to $75 million Now ready to resume board authorized program in light of strong cash flows and demonstrated
Slide 18: Guidance & EPS
Slide: 18 Title: Guidance & EPS Body: Revenue Modifying revenue guidance to exclude revenue from the now-discontinued operations which contributed revenue in FY08 of approximately $13 million We now expect revenue in range of $815 million to $830 million for fiscal 2008 Diluted EPS As a result of th