Maximus, Inc. · NYSE:MMS
Maximus — Q2 2007 Earnings Presentation
11 slides from Maximus's earnings presentation, May 10, 2007
Slide 1: 2nd Quarter Fiscal 2007 - David N. Walker, CFO
David N. Walker Chief Financial Officer and Treasurer 2nd Quarter Fiscal 2007 May 9, 2007
Slide 2: Second Quarter FY2007 Results
2 Second Quarter FY2007 Results ? Revenue totaling $179.1 million and net income of $2.4 million, EPS of $0.11 ? Financial results are comprised of three components ? Losses on the Texas contract ? Legal provisions ? Base operations ? Texas: revenue of $11.2 million, pre-tax loss of $6.5 million, EP
Slide 3: Results by Business Segment
3 Results by Business Segment ? Consulting Segment revenue was $23.2 million, operating income totaled $1.0 million with an operating margin of 4.4% ? Year-to-date operating income margin of 8.0% ? Systems Segment revenue was $35.4 million compared to $32.2 million for FY06 Q2; FY07 Q1 was $34.5 mil
Slide 4: Balance Sheet and Cash Flow Items
4 Balance Sheet and Cash Flow Items ? Cash, Cash equivalents, and marketable securities of $177.3 million ? Accounts Receivables totaled $165.8 million; $2.1 million in long-term accounts receivables ? DSOs improved to 85 days; reduction of 11 days over FY07 Q1 ? Improved 5 days from temporary benef
Slide 5: In Summary
5 In Summary ? Continued improvements in balance sheet ? Actively focusing on optimizing contract management and performance ? Expect to see margins return to more normalized levels over the coming quarters ? Excluding the impact from TX, operating margin for the consolidated Company would have been
Slide 6: 2nd Quarter Fiscal 2007 - Richard A. Montoni, President and CEO
Richard A. Montoni President and Chief Executive Officer 2nd Quarter Fiscal 2007 May 9, 2007
Slide 7: Second Quarter Results - $0.11 GAAP EPS
7 Second Quarter Results - $0.11 GAAP EPS ? Provision for legal expense of $6.1 million pre-tax or EPS of $0.16 ? Pre-tax operating loss on the Texas project of $6.5 million or EPS of $0.18 ? Base operations delivered pre-tax income of $16.5 million or EPS of $0.45 ? Legal settlement in Ontario Cana
Slide 8: Texas Update
8 Texas Update ? Large operating loss turned into a collection of profitable contracts ? Four new interim contracts signed directly with the Texas Health and Human Services Commission expected to contribute approximately $10 million in monthly revenue March 15, 2007 60 Days Enrollment Broker May 1,
Slide 9: New Sales Awards and Pipeline
9 New Sales Awards and Pipeline ? Over $300 million new awards signed ? More than half between $3 and $30 million in size ? $82 million awarded but unsigned ? $1.2 billion in overall sales pipeline ? $519 million in proposals submitted ? $86 million in proposals in preparation
Slide 10: New Work Across all Segments
10 New Work Across all Segments ? Deficit Reduction Act influenced demand in Workforce services ? Expanded current project in Arizona tripling the size ? Secured 5-year $44 million workforce services job in Tennessee ? Health business awarded new $30 million 5-year Enrollment Broker job for the Stat
Slide 11: Conclusion and Guidance
11 Conclusion and Guidance ? Demonstrating traction resolving legacy issues ? Building a stronger book of profitable business ? Pending resolution of pending overhang, will address excess capitalization ? Focus on returning to a total Company operating margin of 10% ? Consulting target margin: 15%+