Slide 1: Fiscal 2022 Third Quarter Earnings Call
Fiscal 2022 Third Quarter Earnings Call David Mutryn Chief Financial Officer August 4, 2022 1 | Maximus: Q3 FY22 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 – Third Quarter of FY22
Total Company Results – Third Quarter of FY22 Q3 FY22 Q3 FY21 % Change ($ in millions, except per share data) • Revenue decrease of 9%, or $118M, is net of $413M decline in short-term COVID response Revenue U.S. Services $ 399.3 $ 436.3 (8)% • Organic growth and acquired growth offset the U.S. Feder
Slide 4: U.S. Services Segment
U.S. Services Segment • Revenue decreased due to expected reductions in short-term COVID response work in the segment • Adjusting for this work, normalized organic ($ in millions) Q3 FY22 Q3 FY21 % Change growth would be nearly 40% and attributable Revenue to a combination of new, core work and U.S.
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue decreased due to expected reductions in short-term COVID response work in the segment, offset by contributions from VES and Aidvantage acquisitions ($ in millions) Q3 FY22 Q3 FY21 % Change • Adjusting for COVID response work, Revenue normalized organic growth
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment • Revenue increased despite currency headwinds of 9%. Organic growth was 11% and adjusting for COVID response work, normalized organic growth would be approximately 21% driven ($ in millions) Q3 FY22 Q3 FY21 % Change primarily by the U.K. Restart Programme Revenue • Operatin
Slide 7: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance Sheet • At June 30, 2022, $1.49B of debt and cash and cash equivalents of $94M • Ratio of debt, net of allowed cash, to pro-forma EBITDA (calculated in accordance with credit agreement) results in 2.9x at June 30, 2022 Cash Flows & DSO $ in millions Q3 FY22 Cash
Slide 8: Updated Fiscal Year 2022 Earnings Guidance
Updated Fiscal Year 2022 Earnings Guidance • Revenue guidance tightened around $4.6B midpoint which is unchanged from prior guidance Fiscal 2022 Guidance Updated Previous • Earnings guidance updated primarily due to Q3 FY22 results and, in particular, the Revenue $4.55B - $4.65B $4.5B - $4.7B write-
Slide 9: FY23 Early Thoughts
FY23 Early Thoughts • For revenue, current line of sight suggests ability to more than overcome $300M year-over-year reduction in short-term COVID response work, meaning a positive organic growth projection • For earnings, a lift in profitability is expected over FY22. The financial profile tied to
Slide 10: Fiscal 2022 Third Quarter Earnings Call
Fiscal 2022 Third Quarter Earnings Call Bruce Caswell President & Chief Executive Officer August 4, 2022 10 10 | Maximus: Q3 FY22 Earnings Presentation
Slide 11: Investor Day 2022 – Strategic Refresh
Investor Day 2022 – Strategic Refresh Future of Health Advanced Customer Services, Technologies for Positive Proof Points Digitally Enabled Help governments Modernization meet rising demand for health services by (Technology Services) • $60M TCV Army Unified ERP Elevate Customer growing our clinical
Slide 12: Washington Technology Top 100
Washington Technology Top 100 • We have invested in our federal business where we have sought to build scale, develop deep relationships, and deliver complex programs • In Washington Technology’s Top 100 U.S. federal contractors annual ranking by prime contract obligations, we broke into the top 20
Slide 13: Public Health Emergency (PHE)
Public Health Emergency (PHE) • The PHE has been extended to mid-October • The exact timing of the PHE unwinding remains unclear • We are actively working with current and prospective clients to ensure we are well-positioned to restart operations once the PHE is lifted 13 | Maximus: Q3 FY22 Earnings
Slide 14: New Awards & Pipeline
New Awards & Pipeline • Book-to-bill is the ratio of New Awards (YTD) June 30, 2022 our signed contract Signed Contracts $4.02B awards, new business, Unsigned Contracts $476M and rebids divided by our revenue in the same period (TTM) Our total pipeline of sales opportunities is $32.5B, • This number
Slide 15: Racial Equity Audit
Racial Equity Audit Maximus is committed to Racial Equity Audit Diversity, Equity, and Inclusion. • At our annual shareholder’s meeting in March, shareholders voted in favor of a Racial Equity Audit Creating a diverse, equitable, • The law firm WilmerHale has been engaged to assess our and inclusive
Slide 16: Closing Remarks
Closing Remarks • Old and new have successfully joined together to greatly improve our capabilities and potential • Alongside the strategic refresh and new branding, we have established new global core values, uniting us to a common set of values that will guide actions and behaviors • We are seeing
Slide 17: Appendix
APPENDIX 17 | Maximus: Q3 FY22 Earnings Presentation
Slide 18: Normalized Organic Growth for Q3 FY22 Results
Normalized Organic Growth for Q3 FY22 Results U.S. Services U.S. Federal Outside the U.S. Total $ % $ % $ % $ % Revenue Bridge (see Form 10-Q) a FY21 Q3 Revenue 436 618 190 1,244 b Organic Effect (37) -8.5% (235) -38.1% 21 11.1% (251) -20.2% c Acquired Growth - 0.0% 143 23.2% 7 3.7% 150 12.1% d Curr
Slide 19: | Maximus: Q3 FY22 Earnings Presentation
19 | Maximus: Q3 FY22 Earnings Presentation