Maximus, Inc. · NYSE:MMS
Maximus — Q3 2024 Earnings Presentation
15 slides from Maximus's earnings presentation, Aug 8, 2024
Slide 1: Fiscal 2024 Third Quarter Earnings Call
Fiscal 2024 Third Quarter Earnings Call David Mutryn Chief Financial Officer August 8, 2024 1 | Maximus: Q3 FY24 Earnings Presentation
Slide 2: Forward-looking Statements & Non-GAAP Information
Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with our most recent quarterly earnings press release, along with listening to or reading a transcript of management comments from our most recent quarterly earnings conference call. This document may contai
Slide 3: Total Company Results – Third Quarter of FY24
Total Company Results – Third Quarter of FY24 % ($ in m illions, except per share data) Q3 FY24 Q3 FY23 Change • Revenue increased 10.6%, or 11.2% on an Revenue organic basis U.S. Federal Services $ 683.3 $ 584.0 17.0 % U.S. Services 472.3 449.1 5.2 % Outside the U.S. 159.3 155.7 2.3 % Total Revenue
Slide 4: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased 17.0%, which was all ($ in millions) Q3 FY24 Q3 FY23 % Change organic and driven predominantly by volume growth on expanded clinical programs Revenue U.S. Federal Services $ 683.3 $ 584.0 17.0 % • Q3 FY24 margin of 15.5% reflects our focus Operating
Slide 5: U.S. Services Segment
U.S. Services Segment • Revenue increase of 5.2% was all organic ($ in millions) Q3 FY24 Q3 FY23 % Change and due to strong performance across the Medicaid-related portfolio. A portion were Revenue excess volumes from the now-completed U.S. Services $ 472.3 $ 449.1 5.2 % unwinding exercise Operating
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment • Revenue increased by 2.3% with 6.8% ($ in m illions) Q3 FY24 Q3 FY23 % Change organic growth that was partially offset by reduced revenue from divested businesses Revenue Outside the U.S. $ 159.3 $ 155.7 2.3 % • Segment realized a small operating loss in Q3 FY24 compared t
Slide 7: Debt, Cash Flows, and Capital Allocation
Debt, Cash Flows, and Capital Allocation Cash Flows & DSO $ in millions Q3 FY24 YTD FY24 FY24 Guidance Cash provided by operating activities $ 199.3 $ 351.4 Purchases of property and equipment and capitalized software costs (34.7) (82.2) Free cash flow $ 164.6 $ 269.2 $350M - $380M • Q3 FY24 cash fl
Slide 8: Raising Fiscal Year 2024 Guidance
Raising Fiscal Year 2024 Guidance • Third consecutive raise to FY24 guidance Fiscal 2024 Guidance Updated Previous − Midpoint of FY24 revenue is up $100 million from prior guidance Revenue $5.25B - $5.35B $5.15B - $5.25B and implies ~9% organic growth over FY23 − New FY24 earnings guidance midpoints
Slide 9: Fiscal Year 2025 Early Thoughts
Fiscal Year 2025 Early Thoughts • FY25 revenue may look similar to latest revenue guidance for FY24 − Significant over-performance in FY24 has led to consecutive guidance raises, which is atypical for our business − The business targets mid-single digit organic growth over the longer term; FY23 was
Slide 10: Fiscal 2024 Third Quarter Earnings Call
Fiscal 2024 Third Quarter Earnings Call Bruce Caswell President & Chief Executive Officer August 8, 2024 10 | Maximus: Q3 FY24 Earnings Presentation
Slide 11: Revenue Growth
Revenue Growth $87 million, 5-year POP; Designing and developing Growth Elements for the Future functional and technical enhancements for the agency’s Internal Operations & Accounting program. • The Contact Center as a Service (or CCaaS) capability that our Total Experience Management (TXM) solution
Slide 12: New Awards & Pipeline $44.1B
New Awards New Awards (YTD) June 30, 2024 Signed Contracts $1.3 billion & Pipeline Unsigned Contracts $398 million Book-to-Bill ratio (TTM) 0.6x Book-to-bill reflects, in part, a lower-than-normal period of rebid 55% new work activity. Our rebid win rates remain at historic levels near 90%. total pi
Slide 13: Election Year Impact
Election Year Impact We have a demonstrated history of delivering strong financial results under both parties. Election year may create an environment in which we are navigating many cross-currents, driven by changes in policies and administrations, making for a more dynamic management environment f
Slide 14: Recent Recognition: TIME Magazine
Recent Recognition: The award recognizes companies based on three elements: – employee satisfaction – revenue growth TIME Magazine – transparency of sustainability efforts America’s Best This recognition from TIME underscores Maximus' role as a leader among Companies 2024 America’s midsize companies
Slide 15: | Maximus: Q3 FY24 Earnings Presentation
15 | Maximus: Q3 FY24 Earnings Presentation