Slide 1: Fiscal 2023 Year End Earnings Call
Fiscal 2023 Year End Earnings Call David Mutryn Chief Financial Officer November 16, 2023 1 | Maximus: Q4 FY23 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 2023
Total Company Results – Fiscal Year 2023 ($ in millions, except per share data) FY23 FY22 % Change • Solid finish to FY23: − Q4 FY23 delivered 7.4% organic growth and 10% adjusted OI Revenue margin U.S. Federal Services $ 2,403.6 $ 2,259.7 6.4 % U.S. Services 1,812.1 1,607.6 12.7 % − Another Outside
Slide 4: FY23 Results – Adj. Earnings & Cybersecurity Impact
FY23 Results – Adj. Earnings & Cybersecurity Impact • Cybersecurity incident totaled Prior Definition Revised Definition $29.3M, or $0.35 per share, in Adjusted OI & EPS (non-GAAP) Q4 FY23 FY23 Q4 FY23 FY23 FY23 Guidance FY23. Analysis of affected Operating income (GAAP) $ 99.1 $ 294.8 $ 99.1 $ 294.
Slide 5: U.S. Federal Services Segment
U.S. Federal Services Segment • Revenue increased 6.4%, which was all ($ in millions) FY23 FY22 % Change organic and due predominantly to volume growth on VA MDE contracts Revenue U.S. Federal Services $ 2,403.6 $ 2,259.7 6.4 % • Segment margin of 10.4% for FY23 reflects solid execution at year-end,
Slide 6: U.S. Services Segment
U.S. Services Segment • Revenue increased 12.7%, which was all organic ($ in millions) FY23 FY22 % Change and driven by the combination of new work wins and successful conversion of short-term work Revenue into longer-term contracts U.S. Services $ 1,812.1 $ 1,607.6 12.7 % • Segment delivered a marg
Slide 7: Outside the U.S. Segment
Outside the U.S. Segment • Revenue decreased by 9.8%, net of 4.6% ($ in millions) FY23 FY22 % Change currency headwind; remaining contraction was equal parts lower employment services Revenue Outside the U.S. $ 689.1 $ 763.7 (9.8)% volumes and divested businesses announced in Q2 FY23 Operating Incom
Slide 8: Debt, Cash Flows and Capital Allocation
Debt, Cash Flows and Capital Allocation Debt • At September 30, 2023, the ratio of debt, net of allowed cash, to EBITDA on TTM basis, as calculated in accordance with credit agreement, was 2.2x as compared to 2.5x in the prior quarter; at September 30, 2023, total debt was $1.26 billion Cash Flows &
Slide 9: Fiscal Year 2024 Guidance
Fiscal Year 2024 Guidance • Midpoints of FY24 guidance imply ~5% organic growth vs. FY23 and 9.8% adjusted OI margin Fiscal 2024 Guidance • Major drivers to growth include: Revenue $5.05B - $5.20B − U.S. Federal Services: higher volumes for the VA MDE contracts and new work across multiple categorie
Slide 10: Fiscal 2023 Year End Earnings Call
Fiscal 2023 Year End Earnings Call Bruce Caswell President & Chief Executive Officer November 16, 2023 10 | Maximus: Q4 FY23 Earnings Presentation
Slide 11: FY23 Results Show Success of Strategy
FY23 Results Show Success of Strategy Success within U.S. Federal Services and U.S. Services segments drove our ability to meet our total company margin Early success in FY24 target. Fourth quarter resulted in an adjusted OI margin of 10.0% – successfully delivering on our target of 9% to 12%. Throu
Slide 12: Strategy Aligns with Customer Needs
Strategy Aligns with Customer Needs Customer Services, Technology Modernization Future of Health Digitally Enabled The strong pipeline of Federal agency IT Our government customers are responding Our success in developing and delivering systems procurements reflects legacy to trends such as inequita
Slide 13: FY23 Employee Engagement Survey
FY23 Employee Engagement Survey 76% Engagement Index Score, based on 76% overall response rate. Average % favorable score for the following statements: o I am proud to work at the o I would recommend the Company. company to others as a great o I feel a sense of belonging at place to work. the Compan
Slide 14: Innovation Creates Differentiating Capabilities
Innovation Creates Differentiating Capabilities Maximus Ventures Maximus Spark Tank • Corporate Venture Capital function • Our employees have the greatest awareness spearheaded by our corporate development of our day-to-day operations and are well- team. positioned to identify and successfully • We
Slide 15: New Awards & Pipeline $37.1B
New Awards New Awards (YTD) September 30, 2023 Signed Contracts $6.1 billion & Pipeline Unsigned Contracts $878 million 76% new work As of September 30, our book-to-bill ratio total pipeline was approximately 1.2x $37.1B of sales 60% opportunities U.S. Federal (TTM basis) Services Segment $1.2B $967
Slide 16: Closing Remarks
Closing Remarks With FY24 ahead of us: • For the first time in many quarters, our core business – long an engine of growth itself – is delivering its full scope of services to our Federal and State customers. Through an effort we call Maximus Forward, we • Our reshaping of the Outside of the U.S. po
Slide 17: | Maximus: Q4 FY23 Earnings Presentation
17 | Maximus: Q4 FY23 Earnings Presentation