Slide 1: Fiscal 2020 Fourth Quarter & Year End Earnings Call
Fiscal 2020 Fourth Quarter & Year End Earnings Call Rick Nadeau Chief Financial Officer November 19, 2020 1 | Maximus: Q4 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 – Fiscal Year 2020
Total Company Results – Fiscal Year 2020 • Revenue growth driven by: ($ in millions, except FY20 FY19 % Change per share data) − Census contract revenue increased $330M over the prior year − New COVID-19 response work such as contact tracing, disease Revenue investigation, test results reporting, CO
Slide 4: U.S. Services Segment
U.S. Services Segment ($ in millions) FY20 FY19 % Change Revenue U.S. Services $ 1,329.3 $ 1,176.5 13.0 % Operating Income U.S. Services $ 227.8 $ 220.8 3.1 % Operating Margin % 17.1 % 18.8 % FY20 Revenue • Revenue for the U.S. Services Segment (previously named U.S. Health & Humans Services) increa
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment ($ in millions) FY20 FY19 % Change Revenue U.S. Federal Services $ 1,633.3 $ 1,111.2 47.0 % Operating Income U.S. Federal Services $ 132.9 $ 115.9 14.6 % Operating Margin % 8.1 % 10.4 % FY20 Revenue • U.S. Federal Services revenue increase driven most significantly by t
Slide 6: Outside the U.S. Segment
Outside the U.S. Segment ($ in millions) FY20 FY19 % Change Revenue Outside the U.S. $ 498.9 $ 599.1 (16.7)% Operating Income Outside the U.S. $ (34.1) $ 16.1 nm Operating Margin % (6.8)% 2.7 % FY20 Revenue, Operating Loss and COVID-19 Impacts • Segment experienced the most pronounced impact from th
Slide 7: Cash Flows, Balance Sheet, and Capital Allocation
Cash Flows, Balance Sheet, and Capital Allocation $ in millions FY20 Cash flows from operations $ 244.6 Purchases of property and equipment and capitalized software costs (40.7) Free cash flow $ 203.9 Cash Flows & Balance Sheet Capital Allocation • FY20 cash from operations negatively impacted due t
Slide 8: Fiscal Year 2021 Guidance
• Wider range reflects significant uncertainty around amount and duration of Fiscal Year 2021 Guidance COVID response work and disruption to core programs • Census contract is winding down and pro-forma FY20 consolidated revenue Fiscal 2021 Guidance is $3.0B net of the approximately $460M reduction
Slide 9: Fiscal 2020 Fourth Quarter & Year End Earnings Call
Fiscal 2020 Fourth Quarter & Year End Earnings Call Bruce Caswell President & Chief Executive Officer November 19, 2020 9 | Maximus: Q3 FY20 Earnings Presentation
Slide 10: U.S. 2020 Presidential and General Election
U.S. 2020 Presidential and General Election Anticipated implications • Projected “blue wave” did not materialize, a likely indicator of a more moderate approach by Congress and the new Administration for at least the next two years • Headwinds and tailwinds as Democrats tend to design and promote mo
Slide 11: Biden Administration
Biden Administration Healthcare • Healthcare policy is a top priority for President-elect Biden who is expected to leverage ACA and address certain aspects through Executive Orders, agency orders, and potential Congressional action • Anticipate a focus by the new Administration on choice, reducing c
Slide 12: Operating in a Global Pandemic
Operating in a Global Pandemic Ongoing safety response • Many of our operations were deemed “essential” by our government clients • Shifted as many employees to a work from home model as possible – Not all government programs allowed for this, particularly those with strict requirements related to t
Slide 13: Growing Array of Clinical BPO Services
Growing Array of Clinical BPO Services Maximus Public Health (MPH) • In support of our growing clinical BPO services, we formed MPH to provide meaningful support to governments as they respond to COVID-19 and other public health threats • Team comprises public health clinicians, researchers, epidemi
Slide 14: Forward Momentum on Digital Transformation
Forward Momentum on Digital Transformation Earlier stages • Our digital transformation and early technology investments enabled us to successfully pivot and effectively serve those most reliant on the public programs we operate during the pandemic • Earlier in our digital transformation journey, we
Slide 15: Growing Core Operations to Address Changing Landscape
Growing Core Operations to Address Changing Landscape FSA Next Gen • Successfully cemented our place on the U.S. Department of Education’s office of Federal Student Aid (FSA) Next Generation Pro cessing and Servicing Environment (Next Gen) contract vehicle • Maximus currently provides customer servi
Slide 16: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) September 30, 2020 Sales Pipeline September 30, 2020 New Work % Signed Contracts $2.670B Total Pipeline $33.0B 69.3% Unsigned Contracts $744M Pipeline Dynamics • It is difficult to predict the impact of the global health pandemic, the uncertainty around the Sen
Slide 17: Conclusion
Conclusion • In fiscal 2020, we demonstrated our ability to respond to the changing needs of our clients by capitalizing on strategic and timely IT investments, using our digital capabilities, and leveraging our experienced teams to quickly ramp up a qualified workforce • We are cautiously optimisti