Slide 1: First Quarter Fiscal 2008 – David N. Walker, CFO
1 David N. Walker Chief Financial Officer and Treasurer First Quarter Fiscal 2008 February 6, 2008
Slide 2: First Quarter Results in Line with Expectations
2 First Quarter Results in Line with Expectations Q1 revenue was $202.0m a 25% increase over the same quarter last year Excluding a Q107 revenue adjustment related to receivables, growth for 1Q08 was still strong at 12.5% - driven by Operations Segment Net income for Q1 was $10.6m - or $0.51 per dil
Slide 3: Results by Business Segment: Operations Segment
3 Results by Business Segment Operations Segment Operations Segment delivered strong revenue growth Q1 revenue increased 43% to $145.8m compared to last year Normalized growth was 24%, which excludes $15.7m revenue impact of two legacy projects Strong top-line growth from new work in Health, Texas o
Slide 4: Results by Business Segment: Consulting & Systems
4 Results by Business Segment Consulting & Systems Consulting Segment Revenue of $22.2m in Q1 with operating income of $1.2m and a 5% margin Reflects an increase of 300 basis points compared to previous quarter Performance reflects transition away from contingent fee federal healthcare claiming and
Slide 5: Expense Items
5 Expense Items SG&A as a percent of revenue was 18% for 1Q08 The Company took a $2.2m non-cash charge related to stock-based compensation from previous years as a result of the forfeiture calculation Despite this charge SG&A as a percentage of revenue is consistent with FY07 results MAXIMUS achieve
Slide 6: Balance Sheet and Cash Flow Items
6 Balance Sheet and Cash Flow Items Cash at December 31, 2007 totaled $63.2m Completed $50m credit facility, available for general corporate purposes Accounts Receivable at December 31, 2007 totaled $169.0m Another $1.8m in long-term accounts receivable classified as other assets is on balance sheet
Slide 7: First Quarter Fiscal 2008 – Richard A. Montoni, CEO
7 Richard A. Montoni President and Chief Executive Officer First Quarter Fiscal 2008 February 6, 2008
Slide 8: First Quarter Results in Line with Expectations
8 First Quarter Results in Line with Expectations Financial results driven by Operations Segment performance Reflects changes in pursuing new business, structuring awards and servicing existing accounts Demonstrates progress in improving and expanding profitability by optimizing our current book of
Slide 9: Top Priorities: Optimize and Focus on Core Business
9 Top Priorities: Optimize and Focus on Core Business Optimize Each segment has had meaningful successes, but we have not achieved performance improvements goals in the Systems Segment Softness related to legacy contracts where we are actively working to execute a plan to resolve outstanding matters
Slide 10: Economic and Industry Environment
10 Economic and Industry Environment Economic mood is cautious but the state environment remains mixed National Association of State Budget Officers still projecting FY08 growth just under 5% Not a major factor to MAXIMUS During weak economic times, demand for our services has remained stable partic
Slide 11: Health Care Reform
11 Health Care Reform Topic of interest at the state level which is embraced by both ends of the political spectrum States seeking to increase availability of health care options to constituents 47 million uninsured people continues to be a drag on state budgets Massachusetts and Indiana already hav
Slide 12: New Awards and Sales Pipeline
12 New Awards and Sales Pipeline $663m $990m RFP’s Tracking $1,320m $1,505m Total Pipeline FY07 FY08 $80m $324m New signed awards $363m $153m Proposals in Prep $294m $362m Proposals pending $142m $282m Awarded but unsigned Rebids: Received 2 extensions totaling $34m; 11 remain with value of $245m Op
Slide 13: Capitalization and Guidance
13 Capitalization and Guidance Capitalization Completed a $50m credit facility with possible syndication up to $75m During the quarter bought back $150m of MMS stock through our ASR and retired approximately 3.8 million shares Considering additional opportunities for generating immediate returns to