Slide 1: Fiscal 2020 First Quarter Earnings Call
Fiscal 2020 First Quarter Earnings Call Rick Nadeau Chief Financial Officer February 6, 2020 1 | MAXIMUS: Q1 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 FY20
Total Company Results – First Quarter of FY20 ($ in millions, except Q1 FY20 Q1 FY19 % Change • Top-line growth driven by: per share data) Revenue − Full quarter contribution from U.S. Health & Human Services $ 312.3 $ 294.2 6% acquisition of the citizen U.S. Federal Services 366.6 217.0 69% engagem
Slide 4: U.S. Health & Human Services Segment
U.S. Health & Human Services Segment ($ in millions) Q1 FY20 Q1 FY19 % Change Revenue U.S. Health & Human Services $ 312.3 $ 294.2 6% Operating Income U.S. Health & Human Services $ 58.2 $ 55.9 4% Operating Margin % 18.6% 19.0% Q1 FY20 Revenue • All growth was organic and attributable to new contrac
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment ($ in millions) Q1 FY20 Q1 FY19 % Change Revenue U.S. Federal Services $ 366.6 $ 217.0 69% Operating Income U.S. Federal Services $ 31.6 $ 21.4 48% Operating Margin % 8.6% 9.8% Q1 FY20 Revenue • This segment exceeded Company expectations, mostly due to the acceleration
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment ($ in millions) Q1 FY20 Q1 FY19 % Change Revenue Outside the U.S. $ 139.4 $ 153.4 (9%) Operating Income Outside the U.S. $ (1.0) $ 4.4 (123%) Operating Margin % (0.7%) 2.9% Q1 FY20 Revenue • Organic declines primarily in employment services where volumes and caseloads contin
Slide 7: Cash Flows, Balance Sheet and Capital Allocation
Cash Flows, Balance Sheet and Capital Allocation $ in millions Q1 FY20 Cash flows from operations $ 87.3 Purchases of property and equipment and capitalized software costs (10.5) Free cash flow $ 76.8 Days Sales Outstanding (DSO) • 71 days at December 31, 2019 Balance Sheet & Share Purchases • Cash
Slide 8: Reiterating Fiscal Year 2020 Guidance
Reiterating Fiscal Year 2020 Guidance Fiscal 2020 Guidance Revenue $3.15B – $3.30B Diluted EPS $3.95 – $4.15 Cash flow from operations $300M – $350M Free cash flow $275M – $325M Quarterly Commentary • On the top-line, still expect slightly higher revenue in the first half of the year compared to the
Slide 9: Fiscal 2020 First Quarter Earnings Call
Fiscal 2020 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 6, 2020
Slide 10: 2019 Open Enrollment
2019 Open Enrollment • Our CCO program over-delivered in the quarter with open enrollment for Medicare and the Marketplace ending in December • Both programs achieved favorable statistics during OE 2019 • Under the Medicare program, we: − Received more than 4.5M IVR calls with more than 3M answered
Slide 11: State Health Insurance Landscape
State Health Insurance Landscape • States addressing their unique demographic needs with new Medicaid expansion initiatives and efforts to establish state-based marketplaces • MAXIMUS recently awarded the GetCovered NJ contract by the New Jersey Department of Banking and Insurance to help transition
Slide 12: Forward Growth
Forward Growth Census 2020 • February 1, marked the launch of Phase 2 for the 2020 Decennial Census which runs through July 31, 2020 • Our operational scope includes 10 contact centers across 8 states and 8,500 CSRs during peak operations who will help support the Census’ goal of surveying 146M hous
Slide 13: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) December 31, 2019 Sales Pipeline December 31, 2019 New Work % Signed Contracts $176.6M Total Pipeline $30.6B 69% Unsigned Contracts $439.5M 13 | MAXIMUS: Q1 FY20 EARNINGS PRESENTATION
Slide 14: M&A Strategy
M&A Strategy Transformational Scale in priority markets • Citizen Engagement Centers Capability • Ascend • Acentia Tuck-in • Remploy Our M&A objective is to find targets that enable us to build enduring, sustainable organic growth by continuing to build scale, enhance our clinical and digital capabi
Slide 15: Conclusion
Conclusion • We believe that continued growth relies upon strong governance • Over the past year, MAXIMUS has met with many of our shareholders to understand your priorities related to Environmental, Social and Governance (ESG) matters, as well as our material ESG interests such as human capital, da