Maximus, Inc. · NYSE:MMS
Maximus — Q2 2020 Earnings Presentation
18 slides from Maximus's earnings presentation, May 8, 2020
Slide 1: Fiscal 2020 Second Quarter Earnings Call
Fiscal 2020 Second Quarter Earnings Call Rick Nadeau Chief Financial Officer May 7, 2020 1 | MAXIMUS: Q2 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: Rapid Response to COVID-19
Rapid Response to COVID-19 Thank you to our employees – We are extremely proud to lead an organization with such heart, dedication, ingenuity and collaboration. We operate essential programs • Underscoring the critical nature of our work, many of our core programs have been deemed essential • The en
Slide 4: Revised Fiscal Year 2020 Guidance
Revised Fiscal Year 2020 Guidance Revised Fiscal 2020 Guidance Revenue $3.15B – $3.25B Diluted EPS $2.95 – $3.15 Cash flow from $250M – $300M operations Free cash flow $200M – $250M Revised Guidance Completed our normal bottom’s up quarterly review and are reinstating guidance because we think it is
Slide 5: Total Company Results – Second Quarter of FY20
Total Company Results – Second Quarter of FY20 ($ in millions, except per share data) Q2 FY20 Q2 FY19 % Change • Revenue includes the full ramp-up of the Census contract in the U.S. Federal Revenue Services Segment U.S. Health & Human Services $ 308.7 $ 290.7 6% U.S. Federal Services 393.4 289.7 36%
Slide 6: U.S. Health & Human Services Segment
U.S. Health & Human Services Segment ($ in millions) Q2 FY20 Q2 FY19 % Change Revenue U.S. Health & Human Services $ 308.7 $ 290.7 6% Operating Income U.S. Health & Human Services $ 46.2 $ 56.9 (19%) Operating Margin % 15.0% 19.6% Q2 FY20 Revenue & Operating Margin • All revenue growth was organic a
Slide 7: U.S. Federal Services Segment
U.S. Federal Services Segment ($ in millions) Q2 FY20 Q2 FY19 % Change Revenue U.S. Federal Services $ 393.4 $ 289.7 36% Operating Income U.S. Federal Services $ 30.2 $ 29.6 2% Operating Margin % 7.7% 10.2% Q2 FY20 Revenue & Operating Margin • All revenue growth was organic. Excluding acquired citiz
Slide 8: Outside the U.S. Segment
Outside the U.S. Segment ($ in millions) Q2 FY20 Q2 FY19 % Change Revenue Outside the U.S. $ 116.0 $ 156.0 (26%) Operating Income Outside the U.S. $ (26.7) $ 4.5 nm Operating Margin % (23.0%) 2.9% Q2 FY20 Revenue & Operating Margin • The pandemic has had the most pronounced effect on this segment, i
Slide 9: Cash Flows, Balance Sheet, and Capital Allocation
Cash Flows, Balance Sheet, and Capital Allocation $ in millions Q2 FY20 Cash provided by operations $ 22.0 Purchases of property and equipment and capitalized software costs (8.6) Free cash flow $ 13.4 Q2 Cash Flows & Balance Sheet • Cash provided by operations and free cash were tempered by lower i
Slide 10: Fiscal 2020 Second Quarter Earnings Call
Fiscal 2020 Second Quarter Earnings Call Bruce Caswell President & Chief Executive Officer May 7, 2020 10 | MAXIMUS: Q2 FY20 EARNINGS PRESENTATION
Slide 11: MAXIMUS COVID-19 Commitment
MAXIMUS COVID-19 COMMITMENT COVID-19 doesn’t follow a plan or rule book. This means our policies, guidance, and resources are continually being updated. The resources listed below are what MAXIMUS has arranged for employees since the start of the health pandemic. Income Protection for Employees Empl
Slide 12: Systematic Transition to Work from Home
Systematic Transition to Work from Home • Heroic effort to procure new equipment, increase network capacity, and deploy new services all while keeping operations running to meet program needs • Significant challenges in a work from home (WFH) model ranging from information security and privacy requi
Slide 13: MAXIMUS is Pioneering a New Model
MAXIMUS is Pioneering a New Model New Remote Work Modeling • Our ability to deploy HIPAA-compliant WFH capabilities enables us to maintain operational continuity and assist citizens with more complex services, including clinical and social assessments required to access important government services
Slide 14: Trusted When It Matters Most: COVID-19 Work
Trusted When It Matters Most: COVID-19 Work We rapidly designed solutions for government clients to address some of their most pressing needs. Our ability to quickly pivot has underscored the resilience of our business model and our position as a trusted partner. U.S. Federal CDC-INFO • Increased bi
Slide 15: Trusted When It Matters Most: COVID-19 Work
Trusted When It Matters Most: COVID-19 Work State Level California Department of Public Health • Answer inbound calls from state residents, providing basic, general, non- medical information about COVID-19; entirely WFH model New York • Dedicated pandemic support including ramping up the state’s COV
Slide 16: Rising Unemployment
Rising Unemployment • Skyrocketing unemployment benefit claims forewarn more downstream implications to governments at all levels: − Safety-net programs like Medicaid, SNAP, and others are expected to face similar surges in applications − Government programs face staffing, process, and system challe
Slide 17: New Awards & Pipeline
New Awards & Pipeline New Awards (YTD) March 31, 2020 Sales Pipeline March 31, 2020 New Work % Signed Contracts $729.8M Total Pipeline $29.2B 65.7% Unsigned Contracts $215.8M Pipeline Dynamics • Cannot accurately predict the pattern this pandemic may follow nor the timing and form of the recovery −
Slide 18: Conclusion
Conclusion • The safety and wellbeing of our employees will continue to remain our top priority • Inspired by the dedication, selflessness, and resilience seen across our business • One of the most inspiring stories comes from our colleagues in the United Kingdom where we are in the process of deplo