Slide 1: Second Quarter – Fiscal Year 2011
David N. Walker Chief Financial Officer and Treasurer Second Quarter – Fiscal Year 2011May 5, 2011 A number of statements being made today will be forward-looking in nature. Such statements are only predictions and actual events or results may differ materially as a result of risks we face, includin
Slide 2: Selected Financial Results from Continuing Operations
Selected Financial Results from Continuing Operations Record FY 11 Q2 RevenueQ2 revenue grew 11% to $227.1 million, driven by solid delivery in both segments and across geographiesStrong performance resulted in operating margin of 13.0%Income & EarningsIncome from continuing operations, net of taxes
Slide 3: Health Services Segment
Health Services Segment FY 11 Q2 Health Services Segment revenue grew 8% to $137.8 million, driven primarily by organic growth and higher-than-normal volumes in the federal health appeals businessOperating income grew to $19.4 millionStrong performance, the surge in appeals volumes and favorable tim
Slide 4: Human Services Segment
Human Services Segment FY 11 Q2 Human Services Segment revenue grew 16% (10% on a constant currency basis) to $89.3 million, driven by growth in our international welfare-to-work programsOperating income grew 12% to $10.1 million Operating margin was 11.3%, consistent with the prior year period and
Slide 5: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Q2 FY 11 cash provided by operating activities from continuing operations totaled $6.0 million, with free cash flow* from continuing operations of $0.4 millionDSOs were 61 daysShare repurchases were not material in the quarter and $122.2 million remains under the repurcha
Slide 6: Updated FY Guidance
Updated FY 11 Guidance February 2010 Increasing our FY 11 revenue guidance to $910 -$920 million and earnings to $4.10-$4.25Revenue and profit will be back-end loaded into Q4 due to seasonality, new work coming on-line and the expansion of existing contracts; Q3 revenue will be consistent with Q2; Q
Slide 7: Financial Impacts from the new U.K. Contracts
May 5, 2011 Financial Impacts from the new U.K. Contracts Revised fiscal 2011 total Company guidance includes contributions from new U.K. contracts; U.K. revenue estimates for FY 11 remain unchanged at $35-40 millionRevenue and profit benefits from the wind down of FND will offset start-up costs for
Slide 8: Richard A. Montoni, President and Chief Executive Officer
Richard A. Montoni President and Chief Executive Officer Second Quarter – Fiscal Year 2011May 5, 2011
Slide 9: Another Solid Quarter for MAXIMUS
Another solid quarter of financial resultsRemain keenly focused on further expansion of global operations and continued development and positioning of domestic operationsToo early to provide specific 2012 guidance – still have elements to solidify including final signatures on the U.K. contracts. Bu
Slide 10: United Kingdom's Work Programme Update
United Kingdom’s Work Programme Update Awarded three contracts under the U.K.’s Work ProgrammeWhile many vendors heavily discounted prices, MAXIMUS offered a price structure that reflects commitment to prudent, balanced, profitable growth; the awards are the right balance of awarded territories and
Slide 11: A Proven "Land and Expand" Model
U.K. work part of larger “land and expand” strategy that provides more meaningful platform for balanced, profitable growthExperience in Australia demonstrates our successfully execution of this strategy; since the acquisition in 2002, revenue has grown 800%Recently gained five location sites as a re
Slide 12: Gartner Names MAXIMUS BPM Program of the Year
Gartner Names MAXIMUS BPM Program of the Year Gartner awarded MAXIMUS the 2011 Business Process Management Program of the Year and top honors for Delivering Innovative BPM SolutionsDriving innovation, quality and efficiencies into government programs by optimizing people, process and technologyThe a
Slide 13: States Shift to Medicaid Managed Care
States Shift to Medicaid Managed Care Many states actively shifting Medicaid populations from fee-for-service to managed care as a way to rein in costsIn California, we are enrolling seniors and persons with disabilities (SPD populations) into Medicaid managed care plansIn Texas, mandatory Medicaid
Slide 14: Health Care Reform Update
May 5, 2011 Health Care Reform Update We continue to see forward movement on health care reformSix states have enacted health insurance exchange laws and several states appear to be making progress on similar legislationIncrease in activity from the recipients of the “Early Innovator” grantsPolitica
Slide 15: New Awards and Sales Pipeline
New Awards and Sales Pipeline May 5, 2011 (Gp:) Signed two significant contracts (CA & TX) We will routinely experience fluctuations between the pipeline and new sales categories. The shifts are driven by the procurement process and the timing of when contracts are awarded and signed. (Gp:) Work mov
Slide 16: Conclusion
Conclusion Portfolio of longer-term contracts provides a more predictable stream of recurring revenueWith several multi-year programs at different stages of maturity and profitability, we can absorb the dilutive impacts of the first year of the new U.K. program and still growThe overall dynamics in