Maximus, Inc. · NYSE:MMS
Maximus — Q1 FY2015 Earnings Presentation
19 slides from Maximus's earnings presentation, Feb 9, 2015
Slide 1: Fiscal 2015 First Quarter Earnings
Fiscal 2015 First Quarter Earnings Richard J. Nadeau Chief Financial Officer and Treasurer February 5, 2015
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 the Company’s most recent quarterly earnings confer
Slide 3: Total Company Results – First Quarter
Revenue Health Services 351.7 $ 299.2 $ 18% Human Services 115.4 107.4 7%Total 467.0 $ 406.6 $ 15% Operating Income Health Services 50.4 $ 41.6 $ 21% Human Services15.511.8 31%Other(0.6)(0.1) Total 65.2 $ 53.3 $ 22% Operating Margin %14.0%13.1%Net Income attributable to MAXIMUS 41.9 $ 33.9 $ 24% EPS
Slide 4: Health Services Segment
Health Services Segment Revenue Revenue grew 18%, fueled by organic growth resulting from new work and expansion on existing contracts Affordable Care Act (ACA) Seasonality Q1 FY15 benefits from seasonality tied to ACA open enrollment period (November 1, 2014 - February 15, 2015) Call volumes have l
Slide 5: Human Services Segment
Human Services Segment Revenue Adversely impacted by changes in currency, most notably weakening of Australian dollar Q1 FY15 impact was approximately $5.0M unfavorable to revenue, on constant currency basis Canadian dollar and British pound continued to significantly weaken throughout January, 2015
Slide 6: Cash Flows and Reconciliation to Free Cash Flow
Cash Flows Reconciliation to Free Cash Flow Cash Flows Strong Q1 cash flow driven by increased earnings and good receivables collections DSOs improved on a sequential basis to 58 days in the quarter. We expect DSOs may increase to more normalized levels during the year due to some new contracts; mos
Slide 7: Share Repurchases & Uses of Cash
Share Repurchases & Uses of Cash At December 31, 2014, $104.6M available for future purchases Buyback program is opportunistic in nature Cash and Cash Equivalents At December 31, 2014, had cash and cash equivalents of $149.2M (approximately 30% held outside the U.S.) Strength of balance sheet provid
Slide 8: Reiterating FY15 Guidance
Reiterating FY15 Guidance Canadian dollar and British pound continued to significantly weaken throughout January 2015 Looking at our guidance, the January 31 currency exchange rates would indicate a tempering of revenue of approximately $45M and operating income of approximately $4.5M or $0.05 per d
Slide 9: Fiscal 2015 First Quarter Earnings – Richard A. Montoni, CEO
Richard A. Montoni Chief Executive Officer February 5, 2015 Fiscal 2015 First Quarter Earnings
Slide 10: Affordable Care Act – Second Open Enrollment
Affordable Care Act – Second Open Enrollment Affordable Care Act teams are wrapping up the activities tied to the second open enrollment period, which runs through February 15, 2015 As expected, overall open enrollment period was much smoother this year, with fewer technology challenges and the bene
Slide 11: ACA Anecdotal Observations
ACA Anecdotal Observations Overall increase in consumer awareness related to eligibility and enrollment Just starting to receive calls related to new tax forms Public health insurance exchanges and covered individuals are required to submit ACA-related tax information and forms So far, about half of
Slide 12: ACA Customer Contact Centers
ACA Customer Contact Centers MAXIMUS operates five state-based exchanges & the District of Columbia Also operate two customer contact centers for Federal Marketplace as a subcontractor – As reported in the media, we’ve started the process of ramping down one of our federal customer contact centers –
Slide 13: Transitions to State-Based Exchanges
Transitions to State-Based Exchanges Continue to work closely with states that may be considering a potential move off the Federal Marketplace to their own state-based exchange Realistically, won’t see a lot of movement until Supreme Court renders a decision on the King vs. Burwell case, expected la
Slide 14: 2017 State Innovation Waivers
2017 State Innovation Waivers States continue to be interested in how to better manage the continuum of programs for the uninsured We believe 2017 State Innovation Waivers provided under Section 1332 of the Act may prompt more states to consider new ways to manage their uninsured populations Innovat
Slide 15: Live Event: Opportunities for State Innovation
Live Event: Opportunities for State Innovation MAXIMUS will be hosting a live event tomorrow at noon to discuss new approaches that states can take for the design and operation of their health insurance programs Event features some of the country’s leading policy experts, all of whom have broad expe
Slide 16: U.K. Health Operations – Two New Contracts
U.K. Health Operations – Two New Contracts Fit for Work Program is well underway; launched phase one in December 2014 and now working on phase two Health Assessment Advisory Service (formally known as the Health and Disability Assessment Service) Under contract, MAXIMUS is conducting assessments for
Slide 17: Positive News for Human Services
Positive News for Human Services U.S. Welfare-to-Work Operations Successful on rebid for the Families First program where we’ve been a provider since 2007 in Tennessee; secured additional scope and are expanding into seven additional counties Will now be providing employment and case management serv
Slide 18: New Awards and Sales Pipeline
New Awards and Sales Pipeline At December 31, 2014: Year-to date signed contracts includes U.K. Health Assessment Advisory Service contract Overall composition of pipeline is fairly broad with opportunities across multiple geographies and both segments; includes both rebids and new work Strength of
Slide 19: Conclusion
Conclusion With another solid quarter under our belt, we are positive about our progress in fiscal 2015 Our collective efforts to secure new work, expand existing contracts and stand up new programs demonstrate our ability to deliver and meet commitments to our clients and the citizens they serve We